Hainan Pearl River Holdings
Company Limited
Semi-annual Financial Report 2017
Legal representative: Wang Chunli
Principal in charge of accounting: Guan Ying
Head of the accounting department:Wu Xiukun
August 2017
||||||
|-|-|-|-|-|
|Hainan Pearl River Holding Company Limited|||||
|Consolidated Balance Sheet|||||
|||||Unit：RMB|
|ASSETS|Note(VII)|30 June 2017|31 December 2016||
|Current assets|||——||
|Currency Funds||167,840,121.26|246,504,351.39||
|Provision of settlement fund|||||
|Funds lent|||||
|Financial assets at fair value through profit or loss|||||
|Derivative financial assets|||||
|Notes receivable|||||
|Accounts receivable||20,229,593.44|16,084,139.32||
|Advances to suppliers||85,382,747.88|67,598,789.02||
|Interest receivable||2,710,880.79|2,710,880.79||
|Dividends receivable||260,015.00|260,015.00||
|Other receivables||300,245,043.39|350,870,047.05||
|Buying back the sale of financial assets|||||
|Inventories||158,016,371.89|297,867,807.05||
|Reclassified to assets held for sale|||||
|Current portion of non-current assets|||||
|||14,411,010.80|8,714,139.07||
|Other current assets|||||
|||749,095,784.45|990,610,168.69||
|Total current assets|||||
||||——||
|Non-current assets|||||
|Available-for-sale financial assets||30,824,994.90|30,824,994.90||
|Held-to-maturity investments|||||
|Long-term receivables|||||
|Long-term equity investments||32,771,272.56|33,866,644.98||
|Investment property||15,801,889.83|19,244,780.80||
|Fixed assets||213,188,579.04|220,409,931.29||
|Construction in progress||78,501,913.02|78,169,695.02||
|Construction materials|||||
|Fixed assets pending for disposal|||||
|Productive biological assets|||||
|Oil and gas assets|||||
|Intangible assets||3,619,565.30|3,692,130.10||
|Development disbursements|||||
|Goodwill|||||
|Long-term prepaid expenses||1,113,550.80|2,083,962.89||
|Deferred tax assets||-|4,985,486.50||
|Other non-current assets||1,581,840.00|1,581,840.00||
|Total non-current assets||377,403,605.45|394,859,466.48||
|Total assets||1,126,499,389.90|1,385,469,635.17||
|The accompanying notes form an integral part of the financial statements.|||||

Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun
|||||
|-|-|-|-|
|Hainan Pearl River Holding Company Limited||||
|Consolidated Balance Sheet (Continued)||||
||||Unit：RMB|
|||30 June 2017||
|ASSETS|Note(VII)||31 December 2016|
|Current liabilities|||——|
|Short-term borrowings||||
|Financial liabilities at fair value through profit or loss||||
|Derivative financial assets||||
|Notes payable||||
|Accounts payable||66,826,515.71|77,627,005.61|
|Advances from customers||230,886,723.58|365,746,868.16|
|Employee benefits payable||13,303,711.44|12,392,816.29|
|Taxes payable||43,455,350.36|84,404,890.27|
|Interest payable||84,670,716.84|86,294,850.36|
|Dividends payable||3,213,302.88|3,213,302.88|
|Other payables||606,193,379.59|541,823,806.30|
|Current portion of non-current liabilities|||78,710,181.59|
|Other current liabilities||||
|Total current liabilities||1,048,549,700.40|1,250,213,721.46|
|Non-current liabilities|||——|
|Long-term borrowings||5,000,000.00|73,666,666.66|
|Bonds payable||||
|Long-term payable||||
|Grants payable||||
|Provisions||||
|Deferred income||||
|Deferred tax liabilities||597,896.93|597,896.93|
|Other non-current liabilities||||
|Total non-current liabilities||5,597,896.93|74,264,563.59|
|Total liabilities||1,054,147,597.33|1,324,478,285.05|
|Equity|||——|
|Share capital||426,745,404.00|426,745,404.00|
|Capital reserve||543,615,438.94|543,615,438.94|
|Less:Treasury Share||||
|Other comprehensive income||||
|Surplus reserve||109,487,064.39|109,487,064.39|
|Provision for general risks||||
|Retained earnings||-997,533,457.93|-1,014,759,604.45|
|Equity attributable to parent company||82,314,449.40|65,088,302.88|
|Minority interests||-9,962,656.83|-4,096,952.76|
|Total owner's equity||72,351,792.57|60,991,350.12|
|Total liabilities and owner's equity||1,126,499,389.90|1,385,469,635.17|
|The accompanying notes form an integral part of the financial statements.||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun||||

|||||
|-|-|-|-|
|Hainan Pearl River Holding Company Limited||||
|Consolidated Income Statement||||
||||Unit：RMB|
|ITEM|Note(VII)|2017（January -- June )|2016|
|I. Revenue||393,836,785.57|149,032,528.40|
|Including：Operating income||393,836,785.57|149,032,528.40|
|II.Total cost||364,005,163.14|237,320,083.66|
|Including：Operating cost||288,602,024.02|122,029,925.99|
|Interest expenses||||
|Handling charges and commissions expenses||||
|Business taxes and surcharges||16,524,745.23|10,405,923.57|
|Selling expenses||6,598,207.36|8,871,001.02|
|Administrative expenses||49,041,651.89|45,226,141.70|
|Including:research and development expenses||||
|Finance expenses||7,378,082.80|48,791,814.72|
|Including: Interest expenses||||
|Interest income||||
|Net loss on foreign exchange||||
|Impairment losses of assets||-4,139,548.16|1,995,276.66|
|Others||||
|Add：Gain on fair-value changes（“-”for loss）||||
|Investment income（“-”for loss）||-1,095,372.42|37,928,898.30|
|Including：investment income from associates and joint ventures||-1,095,372.42|-234,924.26|
|Gain or loss on foreign exchange ( "-"for loss)||||
|III.Operating profits（“－”for loss）||28,736,250.01|-50,358,656.96|
|Add：Non-operating income||623,290.84|2,651,492.34|
|Including：Gains on disposal of non-current assets||168,799.75|2,555,707.19|
|Gains from exchange of non-monetary assets||||
|Government grants||||
|Gains from debt restructuring||||
|Less：Non-operating expenses||1,617,428.07|3,278,378.77|
|Including：Losses on disposal of non-current assets||19,264.12|131,916.10|
|Losses from exchange of non-monetary assets||||
|Losses from debt restructuring||||
|IV.Profit before tax（“－”for loss）||27,742,112.78|-50,985,543.39|
|Less：Income tax expenses||7,201,670.33|183,697.96|
|V.Net profit（“－”for loss）||20,540,442.45|-51,169,241.35|
|Net profit attributable to owners of the Company||17,226,146.52|-47,370,594.88|
|*Profit/loss attributable to minority shareholders||3,314,295.93|-3,798,646.47|
|VI.Post-tax net value of other comprehensive income|||-|
|Post-tax net value of other comprehensive income attributable to owners of the Company||||
|(I) Other comprehensive income that will be reclassified subsequently to profit or loss||-||
|i.Gain or loss from fair-value changes on available for sale financial assets||||
|Post-tax net value of other comprehensive income attributable to minority shareholders||||
|VII.Total comprehensive income attributable to:||20,540,442.45|-51,169,241.35|
|Owners of the Company||17,226,146.52|-47,370,594.88|
|*Minority shareholders||3,314,295.93|-3,798,646.47|

||||
|-|-|-|
|VIII.Earnings per share|||
|i.Basic earnings per share|0.0|4 -0.11|
|ii.Diluted earnings per share|0.0|4 -0.11|
|The accompanying notes form an integral part of the financial statements.|||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun|||

|||||
|-|-|-|-|
|Hainan Pearl River Holding Company Limited||||
|Consolidated Cash Flow Statement||||
||||Unit：RMB|
|ITEM|Note(VII)|2017（January -- June )|2016|
|Ⅰ.Cash flows from operating activities：|||——|
|Cash received from sales and services||261,403,951.89|479,504,679.10|
|Tax refunds||||
|Net cash from other operating activities||28,064,358.46|40,079,903.61|
|Sub-total of cash inflows from operating activities||289,468,310.35|519,584,582.71|
|Cash paid for goods and services||78,618,001.87|187,434,195.91|
|Cash paid to and on behalf of employees||111,663,682.62|101,699,085.20|
|Payment of taxes and surcharges||84,700,876.79|45,957,728.39|
|Other cash payments relating to operating activities||84,215,959.09|23,148,007.67|
|Sub-total of cash outflows from operating activities||359,198,520.37|358,239,017.17|
|Net cash flows from operating activities||-69,730,210.02|161,345,565.54|
|Ⅱ.Cash flows frow investing activities：|||——|
|Cash receipts from withdraw of investments||10,000,000.00|12,000,000.00|
|Cash received from investment income|||8,271.82|
|Net cash from disposal of fixed assets, intangible assets and other long-term assets||43,616,812.51|4,849,613.03|
|Net cash received from disposal of subsidiaries and other business units||||
|Other cash receipts relating to investing activities||49,136.10||
|Sub-total of cash inflows from investing activities||53,665,948.61|16,857,884.85|
|Cash paid for fixed assets, intangible assets and other long-term assets||354,834.72|3,287,207.48|
|Cash payments for investments|||8,000,000.00|
|Net cash paid for acquiring subsidiaries and other business units||||
|Net cash used in other investing activities|||123,352.41|
|Sub-total of cash outflows from investing activities||354,834.72|11,410,559.89|
|Net cash flows from investing activities||-62,245,134.00|5,447,324.96|
|Ⅲ.Cash flows from financing activities：|||——|
|Cash proceeds from investments by others||||
|Including：cash received by subsidiaries from minority shareholders' investment||||
|Cash received from borrowings||208,957,725.27|43,968,657.29|
|Cash received from issuance of bonds||||
|Cash receipts related to other financing activities||||
|Sub-total of cash inflows from financing activities||208,957,725.27|43,968,657.29|
|Cash repayments for debts||256,353,451.20|254,610,856.00|
|Cash payments for distribution of dividends, profit and interest expenses||13,129,408.07|14,499,908.50|
|Including: dividends or profit paid by subsidiaries to minority shareholders||||
|Other cash payments relating to financing activities||1,720,000.00|4,302,704.04|
|Sub-total of cash outflows from financing activities||271,202,859.27|273,413,468.54|

||||
|-|-|-|
|Net cash flows from financing activities|-62,245,134.00|-229,444,811.25|
|Ⅳ.Effect of foreign exchange rate changes on cash and cash equivalents||-|
|Ⅴ.Net increase in cash and cash equivalents|-78,664,230.13|-62,651,920.75|
|Add: beginning balance of cash and cash equivalents|246,504,351.39|205,762,131.54|
|Ⅵ. Ending balance of cash and cash equivalents|167,840,121.26|143,110,210.79|
|The accompanying notes form an integral part of the financial statements.|||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun|||

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Hainan Pearl River Holding Company Limited|||||||||||||||
|Consolidated Statement of Changes in Owners’ Equity|||||||||||||||
|Unit：RMB|||||||||||||||
|||2017（January -- June )|||||||||||||
|||Attributable to the parent company|||||||||||||
||Note||Other|||Other|||Provision forgeneral risks||||Minorityinterests|Total owner'sequity|
|ITEM|||||Less:treasury||Specialized||||||||
||(VII)|Paid-in capital|equity|Capital reserve||comprehensive||Surplus reserve||Retained earnings|Others|Sub-total|||
||||||shares||reserve||||||||
||||instruments|||income|||||||||
|||1|2|3|4|5|6|7|8|9|10|11|12|13|
|I.Closing balance of the preceding year||426,745,404.00|-|543,615,438.94|-||-|109,487,064.39||-1,014,759,604.45|||-4,096,952.76|60,991,350.12|
|Add:Changes in accounting policies||—|—|—|—|—|—|—|—|—|—|—|—|—|
|Corrections of errors in Prior Period||—|—|—|—|—|—|—|—|—|—|—|—|—|
|Others||-|-|-|-|-|-|-|-|-|-|-|-|-|
|II.Opening balance of the current year||426,745,404.00|-|543,615,438.94|-|-|-|109,487,064.39|-|-1,014,759,604.45|-|65,088,302.88|-4,096,952.76|60,991,350.12|
|III.Changes for the year||-|-||-||-|-|-|17,226,146.52|-|17,226,146.52|-5,865,704.07|11,360,442.45|
|(I) Total comprehensive income||-|-|-|-||-|-||17,226,146.52|-|17,226,146.52|3,314,295.93|20,540,442.45|
|(II) Capital contribution and|||||||||||||||
|||-|-||-|-|-|-|-|-|-|-|-|-|
|withdrawals by owners|||||||||||||||
|i.Capital contributions from owners||-|-|-|-|-|-|-|-|-|-|-||-|
|ii.Capital contribute from otherequity instrument holders|||||||||||||||
|||-|-|-|-|-|-|-|-|-|-|-|-|-|
|iii.Share-based payment recorded|||||||||||||||
|||-|-|-|-|-|-|-|-|-|-|-|-|-|
|in owner's equity|||||||||||||||
|iv.Others||-|-||-|-|-|-|-|-|-|-||-|
|( III).Profits distribution||-|-|-|-|-|-|-|-|-|-|-|9,180,000.00|9,180,000.00|
|i.Appropriation to surplus reserve||-|-|-|-|-|-|-|-|-|-|-||-|
|Including:Statutory surplus reserve||-|-|-|-|-|-||-||-|-|9,180,000.00|9,180,000.00|
|Optional surplus reserve||-|-|-|-|-|-|-|-|-|-|-|-|-|
|ii.Appropriation of provision for|||||||||||||||
|||-|-|-|-|-|-|-|-|-|-||-|-|
|general risks|||||||||||||||
|iii.Profit distribution to equity owners||-|-|-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-|-|-|-|-|-|-|-|-|-|7,780,950.31|7,780,950.31|
|(V).Transfer within owner's equity||-|-|-|-|-|-|-|-|-|-|-|-|-|
|i.Capital reserve transferred topaid-in capital|||||||||||||||
||||-||-|-|-|-|-|-|-|-|-|-|
|ii.Surplus reserve transferred topaid-in capital|||||||||||||||
|||-|-|-|-|-|-|-|-|-|-|-|-|-|
|iii.Recover of loss by surplus reserve||-|-|-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-||-|-|-||-||-|-|-|-|
|IV. Closing balance of the year||426,745,404.00|-|543,615,438.94|-|-|-|109,487,064.39|-|-997,533,457.93|-|82,314,449.40|-9,962,656.83|72,351,792.57|
|The accompanying notes form an integral part of the financial statements.|||||||||||||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department:Wu Xiukun|||||||||||||||

||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Hainan Pearl River Holding Company Limited|||||||||||||||
|Consolidated Statement of Changes in Owners’ Equity|||||||||||||||
|Unit：RMB|||||||||||||||
|||2016|||||||||||||
|||Attributable to the parent company|||||||||||||
||Note||Other|||Other|||Provision forgeneral risks||||||
|ITEM|||||Less:treasu||Specialized||||||Minority|Total owner's|
||(VII)|Paid-in capital|equity|Capital reserve||comprehensive||Surplus reserve||Retained earnings|Others|Sub-total|||
||||||ry shares||reserve||||||interests|equity|
||||instruments|||income|||||||||
|||1|2|3|4|5|6|7|8|9|10|11|12|13|
|I.Closing balance of the preceding year||426,745,404.00||334,690,837.45||||109,487,064.39||-1,088,060,174.99|||-16,057,057.25|-233,193,926.40|
|Add:Changes in accounting policies||-|-||||-|||—|||—|—|
|Corrections of errors in Prior Period||-|-|-|-|-|-|||—|||—|—|
|Others||-|-|-|-|-|-|-|-|-|-|-|-|-|
|II.Opening balance of the current year||426,745,404.00|-|334,690,837.45|-|-|-|109,487,064.39|-|-1,088,060,174.99|-||-16,057,057.25|-233,193,926.40|
|||||||||||||-217,136,869.15|||
|III.Changes for the year||||||||||-47,370,594.88||282,225,172.03|3,982,303.84|-43,388,291.04|
|(I) Total comprehensive income||||||||||-47,370,594.88||73,300,570.54|-3,798,646.47|-51,169,241.35|
|(II) Capital contribution and|||||||||||||||
|||||||||||||208,924,601.49|7,780,950.31|7,780,950.31|
|withdrawals by owners|||||||||||||||
|i.Capital contributionsfrom owners|||||||||||||||
|||||||||||||-||-|
|ii.Capital contribute fromother equity instrument holders|||||||||||||||
|||||||||||||-|-|-|
|iii.Share-based payment|||||||||||||||
|||||||||||||-|-|-|
|recorded in owner's equity|||||||||||||||
|iv.Others||||||||||||208,924,601.49|7,780,950.31|7,780,950.31|
|( III).Profits distribution||||||||||||||-233,193,926.40|
||||||||||-233,193,926.40|||-233,193,926.40|||
|i.Appropriation to surplus reserve|||||||||||||-|-|
|Including:Statutory surplus reserve|||||||||||||-|-|
|Optional surplus reserve|||||||||||||-|-|
|ii.Appropriation of provision|||||||||||||||
||||||||||||||-|-|
|for general risks|||||||||||||||
|iii.Profit distribution to equity owners|||||||||||||-|-|
|iv.Others||||||||||||||-|
|(V).Transfer within owner's equity|||||||||||||-|-|
|i.Capital reserve transferred topaid-in capital|||||||||||||||
||||||||||||||-|-|
|ii.Surplus reserve transferred topaid-in capital|||||||||||||||
||||||||||||||-|-|
|iii.Recover of loss by surplus reserve|||||||||||||-|-|
|iv.Others|||||||||||||-|-|
|IV. Closing balance of the year||426,745,404.00|-|334,690,837.45|-|-|-|109,487,064.39|-|-1,135,430,769.87|-||-12,074,753.41|-276,582,217.44|
|||||||||||||-168,105,623.52|||
|The accompanying notes form an integral part of the financial statements.|||||||||||||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department:Wu Xiukun|||||||||||||||

|||||
|-|-|-|-|
|Hainan Pearl River Holding Company Limited||||
|Balance Sheet of the Company||||
||||Unit：RMB|
|ASSETS|Note(XV)|30 June 2017|31 December 2016|
|Current assets：|||——|
|||6,748,196.36|33,952,786.37|
|Cash and cash equivalent||||
|Provision of settlement fund||||
|Funds lent||||
|Financial assets at fair value through profit or loss||||
|Derivative financial assets||||
|Notes receivable||||
|||1,016,974.23|1,032,085.83|
|Accounts receivable|1|||
|||50,000,000.00|50,000,000.00|
|Advances to suppliers||||
|Interest receivable||||
|||260,015.00|260,015.00|
|Dividends receivable||||
|||539,854,746.94|591,785,222.60|
|Other receivables|2|||
|Buying back the sale of financial assets||||
|||4,824,035.45|4,824,035.45|
|Inventories||||
|Reclassified to assets held for sale||||
|Current portion of non-current assets||||
|Other current assets||||
|||602,703,967.98|681,854,145.25|
|Total current assets||||
|Non-current assets：|||——|
|||30,824,994.90|30,824,994.90|
|Available-for-sale financial assets||||
|Held-to-maturity investments||||
|Long-term receivables||||
|||100,784,906.50|101,713,800.55|
|Long-term equity investments||||
|||6,232,449.23|6,383,667.53|
|Investment property||||
|||3,792,790.35|4,019,513.64|
|Fixed assets||||
|Construction in progress||||
|Construction materials||||
|Fixed assets pending for disposal||||
|Productive biological assets||||
|Oil and gas assets||||
|Intangible assets||||
|Development disbursements||||
|Goodwill||||
|||185,859.30|278,707.32|
|Long-term prepaid expenses||||
|Deferred tax assets||||
|Other non-current assets||||
|||141,821,000.28|143,220,683.94|
|Total non-current assets||||
|||744,524,968.26|825,074,829.19|
|Total assets||||
|The accompanying notes form an integral part of the financial statements.||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun||||

|||||
|-|-|-|-|
|Hainan Pearl River Holding Company Limited||||
|Balance Sheet of the Company(Continued)||||
||||Unit：RMB|
|ASSETS|Note(XV)|30 June 2017|31 December 2016|
|Current liabilities：|||——|
|Short-term borrowings||||
|Financial liabilities at fair value through profit or loss||||
|Derivative financial assets||||
|Notes payable||||
|Accounts payable||2,482,949.70|2,482,949.70|
|Advances from customers||38,896.41|38,896.41|
|Financial assets sold for repurchase||||
|Employee benefits payable||1,446,129.33|1,224,801.48|
|Including:Accrued payroll|||1,224,801.48|
|Welfare benefits payable||||
|Including:Staff and workers' bonus and selfare||||
|Taxes and surcharges payable||1,048,322.24|27,537,449.60|
|Including:Taxes payable|||27,537,449.60|
|Interest payable||82,468,756.03|82,468,756.03|
|Dividends payable||3,213,302.88|3,213,302.88|
|Other payables||526,544,809.35|650,471,361.88|
|Cession insurance premiums payable||||
|Provision for insurance contracts||||
|Funds received as agent of stock exchange||||
|Funds received as stock underwrite sale||||
|Reclassified to liabilities held for sale||||
|Current portion of non-current liabilities||||
|Other current liabilities||||
|Total current liabilities||617,243,165.94|767,437,517.98|
|Non-current liabilities：|||——|
|Long-term borrowings||||
|Bonds payable||||
|Long-term payable||||
|Grants payable||||
|Provisions||||
|Deferred tax liabilities||||
|Other non-current liabilities||||
|Total non-current liabilities||-|-|
|Total liabilities||617,243,165.94|767,437,517.98|
|Equity：|||——|
|Share capital||426,745,404.00|426,745,404.00|
|Capital reserve||546,201,098.01|546,201,098.01|
|Less:Treasury Share||||
|Other comprehensive income||||
|Surplus reserve||109,487,064.39|109,487,064.39|
|Provision for general risks||||
|Retained earnings||-955,151,764.08|-1,024,796,255.19|
|Total owner's equity||127,281,802.32|57,637,311.21|
|Total liabilities and owner's equity||744,524,968.26|825,074,829.19|
|The accompanying notes form an integral part of the financial statements.||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun||||

||||||
|-|-|-|-|-|
|Hainan Pearl River Holding Company Limited|||||
|Income Statement of the Company|||||
|||Unit：RMB|||
|ITEM|Note(XV)||2017（January -- June )|2016|
|I. Revenue|||2,857.14|620,935.59|
|Including：Operating income|||2,857.14|620,935.59|
|II.Total cost|||4,438,420.05|51,302,567.04|
|Including：Operating cost|||151,218.30|173,367.05|
|Business taxes and surcharges|||67,528.32|4,203,229.46|
|Selling expenses|||||
|Administrative expenses|||7,823,134.52|8,249,999.98|
|Including:research and development expenses|||||
|Finance expenses|||2,014,415.03|38,649,091.37|
|Including: Interest expenses|||||
|Interest income|||||
|Net loss on foreign exchange|||||
|Impairment losses of assets|||-5,617,876.12|26,879.18|
|Others|||||
|Add：Gain on fair-value changes（“-”for loss）|||||
|Investment income（“-”for loss）|||74,891,105.95|-159,255.52|
|Including：Investment income from associates and joint ventures|||-928,894.05|-159,255.52|
|Gain or loss on foreign exchange ( "-"for loss)|||||
|III.Operating profits（“－”for loss）|||70,455,543.04|-50,840,886.97|
|Add：Non-operating income|||920.00|2,456,114.61|
|Including：Gains on disposal of non-current assets||||2,456,114.61|
|Gains from exchange of non-monetary assets|||||
|Government grants|||||
|Gains from debt restructuring|||||
|Less：Non-operating expenses|||811,971.93|1,802,042.70|
|Including：Losses on disposal of non-current assets||||1,802,042.70|
|Losses from exchange of non-monetary assets|||||
|Losses from debt restructuring|||||
|IV.Profit before tax（“－”for loss）|||69,644,491.11|-50,186,815.06|
|Less：Income tax expenses|||||
|V.Net profit（“－”for loss）|||69,644,491.11|-50,186,815.06|
|VI.Post-tax net value of other comprehensive income|||-|-|
|(I) Other comprehensive income that will not be reclassified subsequently to profit or loss|||||
|(II) Other comprehensive income that will be reclassified subsequently to profit or loss||||-|
|i.Other comprehensive incomes that be able to reclassify as profit under equity method.|||||
|ii.Gain or loss from fair-value changes on available for sale financial assets|||||
|iii.Reclassify held-to-maturity investment to hold-to-sale financial assets gain or loss|||||
|iv. The effective cash flow hedgeing gain or loss|||||
|v. Translation differences arising on translation of financial statements denominated in foreign currencies|||||
|VII.Total comprehensive income|||69,644,491.11|-50,186,815.06|
|The accompanying notes form an integral part of the financial statements.|||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun|||||

|||||
|-|-|-|-|
|Hainan Pearl River Holding Company Limited||||
|Cash Flow Statement of the Company||||
||Unit：RM|||
|ITEM|Note(XV)|2017（January -- June )|2016|
|Ⅰ.Cash flows from operating activities：|||——|
|Cash received from sales and services||-|12,455,200.00|
|Tax refunds||||
|Net cash from other operating activities||15,082,818.77|136,609,030.88|
|Sub-total of cash inflows from operating activities||15,082,818.77|149,064,230.88|
|Cash paid for goods and services|||76,485,200.00|
|Cash paid to and on behalf of employees||2,803,476.91|3,292,324.17|
|Payment of taxes and surcharges||26,529,602.12|2,107,925.47|
|Other cash payments relating to operating activities||5,574,741.83|6,410,947.28|
|Sub-total of cash outflows from operating activities||34,907,820.86|88,296,396.92|
|Net cash flows from operating activities||-19,825,002.09|60,767,833.96|
|Ⅱ.Cash flows frow investing activities：|||——|
|Cash receipts from withdraw of investments||10,000,000.00|8,000,000.00|
|Cash received from investment income||||
|Net cash from disposal of fixed assets, intangible assets and other long-term assets||35,000,000.00|3,060,360.00|
|Net cash received from disposal of subsidiaries and other business units||||
|Other cash receipts relating to investing activities||49,136.10||
|Sub-total of cash inflows from investing activities||45,049,136.10|11,060,360.00|
|Cash paid for fixed assets, intangible assets and other long-term assets|||26,549.00|
|Cash payments for investments|||13,330,000.00|
|Net increase of pledged loans||||
|Net cash paid for acquiring subsidiaries and other business units||||
|Net cash used in other investing activities||||
|Sub-total of cash outflows from investing activities||-|13,356,549.00|
|Net cash flows from investing activities||45,049,136.10|-2,296,189.00|
|Ⅲ.Cash flows from financing activities：|||——|
|Cash proceeds from investments by others||||
|Including：cash received by subsidiaries from minority shareholders' investment||||
|Cash received from borrowings||29,000,000.00|27,585,780.73|
|Cash received from issuance of bonds||||
|Cash receipts related to other financing activities||||
|Sub-total of cash inflows from financing activities||29,000,000.00|27,585,780.73|
|Cash repayments for debts||78,049,598.52|78,870,856.00|
|Cash payments for distribution of dividends, profit and interest expenses||1,659,125.50|6,875,492.05|
|Including: dividends or profit paid by subsidiaries to minority shareholders||||
|Other cash payments relating to financing activities||1,720,000.00|176,704.04|
|Sub-total of cash outflows from financing activities||81,428,724.02|85,923,052.09|
|Net cash flows from financing activities||-52,428,724.02|-58,337,271.36|
|Ⅳ.Effect of foreign exchange rate changes on cash and cash equivalents|||-|
|Ⅴ.Net increase in cash and cash equivalents||-27,204,590.01|134,373.60|
|Add: beginning balance of cash and cash equivalents||33,952,786.37|479,720.71|
|Ⅵ. Ending balance of cash and cash equivalents||6,748,196.36|614,094.31|
|The accompanying notes form an integral part of the financial statements.||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun||||

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Hainan Pearl River Holding Company Limited|||||||||||||
|Statement of Changes in Owners’ Equity of the Company|||||||||||||
|Unit：RMB|||||||||||||
|||2017 （January -- June )|||||||||||
||Note||||||||Provisionforgeneralrisks||||
|ITEM||||||Other|||||||
||(XV)||Other equity||Less:treasury||Specialized|Surplus||Retained||Total owner's|
|||Paid-in capital||Capital reserve||comprehensive|||||Others||
||||instruments||shares||reserve|reserve||earnings||equity|
|||||||income|||||||
|||1|2|3|4|5|6|7|8|9|10|11|
|I.Closing balance of the preceding year||426,745,404.00||546,201,098.01||||109,487,064.39||||57,637,311.21|
|||||||||||-1,024,796,255.19|||
|Add:Changes in accounting policies|||||||||||||
|Corrections of errors in Prior Period|||||||||||||
|Others||||||||||||-|
|II.Opening balance of the current year||426,745,404.00||546,201,098.01||||109,487,064.39||||57,637,311.21|
|||||||||||-1,024,796,255.19|||
|III.Changes for the year||-|-|-|-|-|-|-|-|69,644,491.11|-|69,644,491.11|
|(I) Total comprehensive income||-|-|-|-||-|-||69,644,491.11|-|69,644,491.11|
|(II) Capital contribution and withdrawals by owners||-|-|-|-|-|-|-|-||-|-|
|i.Capital contributions from owners|||-|-|-|-|-|-|-|-|-|-|
|ii.Capital contribute from other equity instrument holders||-|-|-|-|-|-|-|-|-|-|-|
|iii.Share-based payment recorded in owner's equity||-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-||-|-|-|-|-|-|-|-|
|( III).Profits distribution||-|-|-|-|-|-|-|-||-|-|
|i.Appropriation to surplus reserve||-|-|-|-|-|-|-|-||-|-|
|Including:Statutory surplus reserve||-|-|-|-|-|-||-||-|-|
|Optional surplus reserve||-|-|-|-|-|-|-|-|-|-|-|
|ii.Appropriation of provision for general risks||-|-|-|-|-|-|-|-|-|-|-|
|iii.Profit distribution to equity owners||-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-|-|-|-|-|-|-|-|-|-|
|(V).Transfer within owner's equity||-|-|-|-|-|-|-|-|-|-|-|
|i.Capital reserve transferred to paid-in capital||-|-|-|-|-|-|-|-|-|-|-|
|ii.Surplus reserve transferred to paid-in capital||-|-|-|-|-|-|-|-|-|-|-|
|iii.Recover of loss by surplus reserve||-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-|-|-|-|-||-||-|-|
|IV. Closing balance of the year||426,745,404.00|-|546,201,098.01|-|-|-|109,487,064.39|-|-955,151,764.08|-|127,281,802.32|
|The accompanying notes form an integral part of the financial statements.|||||||||||||
|Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun|||||||||||||

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Hainan Pearl River Holding Company Limited|||||||||||||
|Statement of Changes in Owners’ Equity of the Company|||||||||||||
|Unit：RMB|||||||||||||
|||2016|||||||||||
||Note||||||||Provisionforgeneralrisks||||
|ITEM||||||Other|||||||
||(XV)||Other equity||Less:treasury||Specialized|Surplus||Retained||Total owner's|
|||Paid-in capital||Capital reserve||comprehensive|||||Others||
||||instruments||shares||reserve|reserve||earnings||equity|
|||||||income|||||||
|||1|2|3|4|5|6|7|8|9|10|11|
|I.Closing balance of the preceding year||426,745,404.00||337,276,496.52||||109,487,064.39||-648,479,829.56||225,029,135.35|
|Add:Changes in accounting policies||-|-||-||-|-|-|-|-|-|
|Corrections of errors in Prior Period||-|-|-|-|-|-|-|-|-|-|-|
|Others||-|-|-|-|-|-|-|-|-|-|-|
|II.Opening balance of the current year||426,745,404.00|-|337,276,496.52|-|-|-|109,487,064.39|-|-648,479,829.56|-|225,029,135.35|
|III.Changes for the year||-|-||-|-|-|-|-|-50,186,815.06|-|-50,186,815.06|
|(I) Total comprehensive income||-|-||-|0.00|-|||-50,186,815.06|-|-50,186,815.06|
|(II) Capital contribution and withdrawals by owners||-|-||-|-|-|-|-|-|-|-|
|i.Capital contributions from owners||-|-|-|-|-|-|-|-|-|-|-|
|ii.Capital contribute from other equity instrument holders||-|-|-|-|-|-|-|-|-|-|-|
|iii.Share-based payment recorded in owner's equity||-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-||-|-|-|-|-|-|-|-|
|( III).Profits distribution||-|-|-|-|-|-|-|-|-|-|-|
|i.Appropriation to surplus reserve||-|-|-|-|-|-|-|-|-|-|-|
|Including:Statutory surplus reserve||-|-|-|-|-|-||-||-|-|
|Optional surplus reserve||-|-|-|-|-|-|-|-|-|-|-|
|ii.Appropriation of provision for general risks||-|-|-|-|-|-|-|-|-|-|-|
|iii.Profit distribution to equity owners||-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-|-|-|-|-|-|-|-|-|-|
|(V).Transfer within owner's equity||-|-|-|-|-|-|-|-|-|-|-|
|i.Capital reserve transferred to paid-in capital||-|-|-|-|-|-|-|-|-|-|-|
|ii.Surplus reserve transferred to paid-in capital||-|-|-|-|-|-|-|-|-|-|-|
|iii.Recover of loss by surplus reserve||-|-|-|-|-|-|-|-|-|-|-|
|iv.Others||-|-|-|-|-|-|-|-|-|-|-|
|IV. Closing balance of the year||426,745,404.00|-|337,276,496.52|-|-|-|109,487,064.39|-|-698,666,644.62|-|174,842,320.29|
|The accompanying notes form an integral part of the financial statements.|||||||||||||

Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department: Wu Xiukun
Hainan Pearl River Holding Company Limited
Notes on the Financial Statements for the end of June 2017
I． General information
Hainan Pearl River Holding Company Limited, referred to as‘theCompany’ or‘Pearl RiverHolding’, grew out of the lawful re-registration by the original Hainan Pearl River Industry Company Limited on January 11 1992. The re-registration was based on the document of Qiong Fu Ban[1992] No.1 issued by the General Office of HainanPeople’s Government and City Management Office Qiong Yin[1992] No. 6 issued by thePeople’s Bank of Hainan province. By the time when the re-registration took place, the Company issued a total amount of 81,880,000 shares, among which 60,793,600 shares were folded from thepredecessor’s net assets while the rest amount, 21,086,400 shares, were newly issued and were listed on Shenzhen Stock Exchange according to the document of securities administration office[1992] No. 83 issued by the People's Bank of China in December 1992. The parent company of the Pearl River Holding, the Guangjiang Industrial Company held the amount of 36,393,600 shares in 1992, equivalent to a shareholding ratio of44.45%. The business license registration number is 20128455-6 and the company is defined as belonging to the real estate industry.
On
25th
March 1993, approved by the Hainan joint-stock system pilot leading group office with the supporting document of Qiong joint-stock office[1993] No.028 and the Shenzhen special economic zone branch of thePeople’s Bank of China with the corresponding document of ShenPeople’s Bank Fu[1993] No.099, the company increased its share capital by stock-for stock: five new shares for every ten shares held plus two freely delivered new shares. As a result, the share capital increased to 139,196,000 shares, of which the shareholder, Guangzhou Pearl River Industrial Company occupied 48,969,120 shares, holding an equity stake of35.18%.
In 1994, the equity capital was raised to the amount of 278,392,000 shares through delivering 10 new free shares for every 10 shares held. Guangzhou Pearl River Industrial Company occupied 97,938,240 shares, holding an equity stake of35.18%.
In 1995, based on the approval stated at the document of Shenzhen BanFu[1995] No. 45 and Shenzhen BanFu[1995] No.12, the company issued 50 million B shares. An incremental share capital was thus followed based on the fact that every 1.5 new shares were generated for every ten B shares, resulting in the amount of 377,650,800 shares outstanding in total. Guangzhou Pearl River Industrial Company occupied 112,628,876 shares, holding an equity stake of29.82%.
In 1999, 112,628,976 shares that were held by the Guangzhou Pearl River Industrial Group Co., Company were transferred to Beijing Wanfa Real Estate Development Company. Consequently, Beijing Wanfa Real Estate Development Company became the first majority shareholder, holding the amount of 112,628,976 shares, which accounts for29.82% of the total outstanding shares of the company.
On
10th
January 2000, with the Business License for Legal Person issued by the Hainan Administrative Bureau for Industry and Commerce and the registration number 4600001006830 obtained, the name of the company was formally changed to Hainan Pearl River Holding Company Limited.
August 17, 2006, with the implementation of equity division reform, an incremental of share capital to the total amount of 49.094604 million shares took place since additional shares were delivered to all shareholders based on a10：1.3（1.3 free new shares for every 10held） distribution regime. The total amount of shares outstanding was thus increased to 426,745,404
shares with the Wanfa Real Estate Development Company occupying 107,993,698 shares, taking up the ownership percentage of25.31%. In 2007 and 2009, non-circulation stock shareholders paid back consideration for reform of the shareholder structure; the corresponding value was respectively 3,289,780 and 1,196,000 shares of stock. Beijing Wanfa Real Estate Development Company held an amount of 112,479,478 shares at the end of 2009, which was equivalent to an equity stake of26.36%. In 2010, the controlling shareholder Beijing Wanfa Real Estate Development Stock Limited Company changed its name to Beijing Wanfa Real Estate Development Limited Liability Company. At the end of 2011, this dominant shareholder held an amount of 112,479,478 shares, equivalent to an ownership percentage of26.36%.
September 2, 2016, the original controlling shareholder of Beijing Wanfa Real Estate Development Co., Ltd will be held by 112,479,478 shares all transferred to the Beijing Grain Group Co., Ltd., 2016 September after the transfer of equity is completed, the Beijing Grain Group Co., Ltd. held 112,479,478 shares, accounting for26.36% of the total number of shares. In November 2016, based on the confidence in the reorganization of the major assets and the future development of the Company, Beijing Grain Group Co., Ltd. decided to adopt the centralized bidding method to increase its holdings through the secondary market, holding 123,561,963 shares, Accounting for28.95% of the total number of shares, becoming the largest shareholder of the Company.
Registered capital: RMB 426,745,400 Yuan
Unified social credit code: 914600002012845568
Legal representative: Wang Chunli
Registered address: 29/F., Dihao Building, Pearl River Plaza, Binhai Avenue, Haikou, Hainan, the PRC.
Office adress: 29/F., Dihao Building, Pearl River Plaza, Binhai Avenue, Haikou, Hainan, the PRC.
The parent company of Beijing grain group co., LTD
The operation scope: Industrial investment, tropical farming, aquaculture, real estate development and management, hotel investment and management, material supply, construction equipment purchasing, leasing, hardware, chemical, trade of household items, decoration, vehicle parking, and high-tech investment projects, investment in environmental protection projects, investment advice.
The company's business nature and the main business activities: The company mainly engaged in real estate development and property management, which belong to real estate aspect.
The Company's basic organizational structure: General meeting of shareholders is the highest organ of power. Board of directors is the executing agency. Supervisory board is the Company's internal auditing agency. General Manager is responsible for the Company's daily operational management.There are General Manager Office, Securities Department, and Tourism Real Estate Department, Financial Department, Management Department, Auditing Department and others in the Company.
Hainan Peapl River Holding Company Limited Beijing Investment Consulting Branch was established on May 6, 2010, and the unified social credit code is 91110107554875351W. The address is: Room 5078, Building 3, No. 3, Xijing Road, High-tech Park, Badachu, Shijing Mountain District, Beijing City. The business scope includes investment consulting, hotel investment and management; construction equipment purchasing and leasing; the sales of construction materials, hardware and electrical equipment, furniture, plastics, daily necessities, leather
products, rubber cavity products, feed, the packed seed that will not be sub-packed again, the grain, beans, potatoes, flowers, grass and other decorative plants, chemical fertilizer, non-metallic ore, metal products, metal ore, metal materials, and the import and export of goods; the salary point system and development application of high-tech products. (“1. Without the approval of the relevant department, it is prohibited from using public mode to raise funds; 2. It is prohibited from publically carrying out security products and financial derivative instrument transaction activities; 3. It is prohibited from issuing loans; 4. It is prohibited from providing guarantee for other enterprises, except the invested enterprise; 5. It is prohibited from making commitment to the investor about no damage of investment principal or the minimum income”; for the projects that shall be legally approved, the business activities can be carried out as per the approved contents after being approved by the relevant department.)
Hainan Peapl River Holding Company Limited Heilongjiang Branch was established on October 22, 2012, and the unified social credit code is 91230110598492651P. The address is: No. 34, Nongxiao Street, Xiangfang District, Harbin City. The business scope includes: industrial investment, hotel investment and management, construction equipment purchasing, leasing, indoor and outdoor decoration, high-tech project investment, computer network investment, communication project investment, high-tech product development and application as well as environmental protection project investment. (For projects that require the administrative licensing, they shall be operated with the license) (For projects that shall be legally approved, the business activities can be carried out after being approved by the relevant department.)The approval of the financial statements reported: the financial statements by the company all the directors are submitted on August 23, 2017.
II． The scope of consolidated financial statements
This period into the body of the scope of consolidated financial statements, a total of 15 units, specific include:
Shareholding Proportion of Company name Abbreviation Unit type Level
ratio（%） votingrights（%） Hainan Pearl River Property
2
Hotel Management Co., Ltd Pearl River Property Holdings 98.00 98.00 Hainan Pearl River
3
Landscaping Co., Ltd Landscaping Company Wholly 100.00 100.00 Hainan Pearl River Property
3
Cleaning Co., Ltd Cleaning Company Wholly 100.00 100.00 Hainan Pearl River Property
Electrical and 3
Electrical and Mechanical Wholly 100.00 100.00 Mechanical Company
Engineering Company
Hubei Pearl River Real
2
Estate Development Co., Hubei Pearl River Holdings 89.20 89.20 Ltd
Wuhan Zhujiang Meilin
3
Hotel Management Co., Ltd Meilin Hotel Wholly 100.00 100.00 Shanghai Rongxin Real 2
Shanghai Realty Wholly 100.00 100.00 Estate Co., Ltd
Shareholding Proportion of Company name Abbreviation Unit type Level
ratio（%） votingrights（%） Beijing Jiubo Culture 2
Jiubo Culture Wholly 100.00 100.00 Development Co., Ltd
Mudanjiang City Pearl River
Wanjia Tourism Investment Mudanjiang 2
Wholly 100.00 100.00 Development Group Co., TourismGroup
Ltd
Hailin City Wanjia Xuexiang 3
Xuexiang Resort Wholly 100.00 100.00 Resort Hotel
Mudanjiang City Jingpo
3
Lake Zhujiang Wanjia Hotel Jingpo Lake Hotel Wholly 100.00 100.00 Co., Ltd
Mudanjiang City Wanjia 3
Mudanjiang Hotel Wholly 100.00 100.00 Star Hotel Co., Ltd
Harbin Wanjia Travel 3
Travel Service Wholly 100.00 100.00 Service Co., Ltd
Hebei Zhengshi Qinghui
2
Real Estate Development Hebei Realty Holdings 51.00 51.00 Co., Ltd
Shanghai Pearl Property 3
Pearl Property Holdings 50.00 50.00 Management Co., Ltd
At the end of this period, the subsidiary corporation Hainan Pearl River Industrial Co., Ltd. Shanghai real estate company, approved by the Shanghai Administration for Industry& Commerce, changes his name into Shanghai Rongxin Real Estate Co., Ltd. The shareholding ratio and voting rights remain the same. The scope of consolidation financial statements remains the same, either.
III． The basis for the formulation of financial statement
1. The basis for the formulation of financial statement
On the basis of continuous operation, the company has conducted confirmation and measurement as per the actually occurred transaction and affairs, the Enterprise AccountingCriterion—Basic Criterion and the specific enterprise accounting criterion, the enterprise accounting criterion application guide, the enterprise accounting criterion explanation and other relevant regulations (hereinafter collectively referred to as “the enterprise accounting criterion”), and then on this basis, it has also compiled the financial statement in combination with No. 15 Information Disclosure Formulation and Report Regulations of Companies with Public Issue ofSecurities—General Regulations for Financial Report (Revised in 2014).
2. Going concern
The company since the final 12 months there is no ability to continue as a going concern our company serious doubts about the items or situations.
IV． Accounting policies, accounting estimates and error correction of previous years
1. Announcement about compliance with Accounting Standards for Business Enterprises
TheCompany’s financial statements are prepared in accordance with the requirements of the Accounting Standards for Business Enterprises, and they fairly and completely present the financial position, operation results, cash flow and other relevant information of the Company.
2. Accounting year
Accounting year of the Group is the calendar year from January 1 to December 31.This report covers the period from January 1, 2017 to June 30, 2017.
3. Reporting currency
TheCompany’s reporting and presentation currency is Renminbi (“RMB”).
4. Business combinations
4.1. Where a business combination achieved in stages, such multiple transactions accounted as a package deal if one or more following conditions are satisfied:
i. such transactions made simultaneously or after consider each other's effect;
ii. only such transactions made in whole,a complete commercial result achieved;
iii. one transactions made depend upon at least one other transaction;
iv. one transactions is not commercial invidually,but when consider with other transactions,it is commercial.
4.2. Business combinations involving enterprises under common control
（1）separate financial statement
The consideration is the cash given, non-montary assets transferred,liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree.The initial cost of the long-term equity investment is the share of the consolidated financial statements, at the acquisition date, of ultimate controllingparties’s net assets.The difference between the initial cost of the long-term equity investment obtained and the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. If there is contingent consideration and need to recognize contingent assets or liabilities, the difference between amounts of the contingent assets or liabilities and the subsequent settlement price is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Where a business combination involving enterprises under common control is achieved in stages that involve multiple transactions, if such transaction is a package deal,the all transactions are accounted as a package deal to obtain control power. If not, at the acquisition date, the difference between the initial cost of the long-term equity investment and the aggregate of the carrying amount of the long-term equity investment held before acquisition date and the new consideration paied in order to achieve futher equity is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. As for the other comprehensive income relating to the equity held in the acquiree before the acquisition date are not accounted untill dispose such investment.when disposed, adopt the basis,which is same to investee dispose related assets or liabilities,to accounted. The other comprehensive income recognized on the changes of otherowner’s equity except for net profit, other comprehensive income and dividend declared are not
accounted untill transferred to investment income when dispose such investment.
Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity for the business combination are adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be successively adjusted against surplus reserve and retained earnings.
Transaction costs associated with the issue of debt securities for the business combination are included in the initially recognized amounts of the debt securities.
If the combined parties praparied consolidated financial statements, the initial cost of the long-term equity investment is determined on the basis ofowner’s equity attributed to parent company.
（2）consolidated financial statements
The assets and liabilities obtained by the absorbing party in a business combination are measured at the carrying amount.
Where a business combination involving enterprises under common control is achieved in stages that involve multiple transactions, if such transaction is a package deal,the all transactions are accounted as one tansaction to obtain control power.
If not, the long-term equity investment held by absorbing party before acquisition date and the profit or loss, other comprehensive income and other equity changes recognized from the later of the acquisition date and the date on which absorbing party or combined party ultimately controlled by same party to combining date offset beginning retained earnings of comparative financial statements and current P/L respectively.
Where the accounting policy adopted by the combined party is different from that adopted by the combining party, the combining party shall, according to accounting policy it adopts, adjust the relevant items in the financial statements of the absorbing party, and shall, pursuant to the present Standard, recognize them on the basis of such adjustment.
4.3. Business combinations not involving enterprises under common control
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. In the merger agreement on a future event that is likely to affect the combination costs make a contract, if estimated future matters are likely to occur and the influence of the amount on the combination costs can be reliably measured, are also included in the combination costs.
The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment, the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
In case that the merger of enterprises under different controls that is realized by steps through several times of exchange transaction belongs to a package deal, each transaction shall be subject to accounting treatment as the transaction that has obtained the control right; in case that itdoesn’t belong to a package deal, the individual financial statements and the consolidated financial statements shall be distinguished and subject to the relevant accounting treatment respectively:
（1）In the individual financial statements, in case that the equity investment held before the date of merger is checked as per the equity method, the sum of the book value of theacquiree’s equity investment held before the date of purchasing and the newly increased investment cost on the date of purchasing shall be regarded as the initial investment cost of such investment; other comprehensive incomes checked and confirmed through adopting the equity method for the equity investment held before the date of purchasing shall be subject to accounting treatment when disposing the investment through adopting the basis for the direct disposal of relevant assets or debts of the invested unit.
In case that the equity investment held before the date of merger isconfirmed by financial instrument and checked as per the measurement standard, the sum of the fair value of the equity investment on the date of merger and the newly increased investment cost shall be regarded as the initial investment cost on the date of merger. The balance between the fair value and book value of original equity held and accumulativefair value changesincluded in other comprehensive incomes shall be transferred into the investment income of the current period on the date of merger.
（2）In the consolidated financial statements, to hold the equity of the acquiree before on the acquisition date. The equity held in the acquiree before the acquisition date is remeasured at its fair value at the acquisition date, with any difference between its fair value and its carrying amount being recognized as investment income, and the other comprehensive income relating to the equity held in the acquiree before the acquisition date being transferred to investment income.
5. Methods for the formulation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. All subsidiaries(including separate entities controled parent company) should be included in the consolidated financial statements.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company.
The consolidated financial statements are prepared on the basis of the financial statements of the Company and all of its subsidiaries.
All significant intra-group balances and transactions are eliminated on consolidation.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is still allocated against minority interests.
For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party.
Their operating results and cash flows from the beginning of the current reporting period are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative figures in the consolidated financial statements.
For a subsidiary disposed of by the Company, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
When the company loses control over a subsidiary due to disposal of equity investment or other reason, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interests is recognized as investment income in the period in which control is lost. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
6. Jointly operated arrangement classification and joint management accounting processing method
1. Jointly operated arrangement classification
According to the structure and legal form of jointly operated arrangement and the terms, other relevant facts and situations agreed injointly operated arrangement, the company will divide jointly operated arrangement into joint management and joint venture.
The jointly operated arrangement not reached by separate subject is divided into joint management; the jointly operated arrangement reached by separate subject is usually divided into joint venture; but the concrete evidence shows that the jointly operated arrangement that meets the any one of the following conditions and the relevant laws and regulations is divided into joint management:
(1) The legal form of jointly operated arrangement shows that the joint venture shall enjoy the right and under the obligation for the relevant assets and liabilitiesin arrangementrespectively.
(2) The contract terms of jointly operated arrangement agree that the joint venture shall enjoy the right and under the obligation for the relevant assets and liabilitiesin arrangementrespectively.
(3) The other relevant facts and situations show that the joint venture shall enjoy the right and under the obligation for the relevant assets and liabilitiesin arrangementrespectively, and for instance, the joint venture enjoys almost all outputs related to jointly operated arrangement, and
the liquidation of the liabilitiesin arrangement depends on the support from the joint venture continuously.
2. Joint management accounting processing method
The company confirms the following items related to quantum of interest in joint management, and conducts accounting processing according to the regulations of Accounting Standards for Business Enterprises:
(1) Confirm the asset held solely and the asset held jointly as per share;
(2) Confirm the liability borne solely and the liability borne jointly as per share;
(3) Confirm the income from selling the enjoyed joint management output share;
(4) Confirm the income from selling the joint management output as per share;
(5) Confirm the expense incurred solely and the expense incurred by joint management as per share.
The company outputs or sells the asset to joint management (except the asset constitutes the business), and before the joint management sells the asset to the third party, the part belonging to other participants in the profit and lossincurred by the deal is only confirmed. In case that the asset output or sold conforms to the asset impairment loss specified in Accounting Standards for Business Enterprises No.8 -- Asset Impairment, the company shall confirm the full loss.
Before the company purchases the asset from joint management (except the asset constitutes the business) and sells the asset to the third party, the part belonging to other participants in the profit and lossincurred by the deal is only confirmed. In case that the asset purchased conforms to the asset impairment loss specified in Accounting Standards for Business Enterprises No.8 -- Asset Impairment, the company shall confirm the part loss as per share.
The company shall not enjoy the joint control for joint management, and if the company enjoys the relevant assets of joint management and undertake the relevant liabilities of joint management, the accounting processing shall still be conducted according to the above principle; otherwise, the accounting processing shall be conducted according to the regulations of Accounting Standards for Business Enterprises.
7. Cash and Cash equivalents
Cash refers to cash on hand and demand deposits. “Cash equivalents” refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk on change in value.
8. Foreign currency transactions
8.1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognised in profit or loss for the period, except the exchange differences related to a specific-purpose borrowing denominated in foreign
currency that qualify for capitalisation are capitalised as part of the cost of the qualifying asset during the capitalisation period.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions; the amounts in functional currency remain unchanged.
Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value including changes of exchange rate and is recognized in profit and loss or as other comprehensive income included in capital reserve.The difference arising on available for sale non-monetary items is recognized in other comprehensive income.
8.2. Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are translated from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items except for retained earnings are translated at the spot exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting the distribution of profits are translated at the spot exchange rates on the dates of the transactions;The difference between the translated assets and the aggregate of liabilities and shareholders' equity items is separately presented as the exchange differences arising on translation of financial statements denominated in foreign currencies under the shareholders' equity in the balance sheet.
On disposal of the Company's entire interest in a foreign operation , the Company transfers the accumulated translation differences that relating to translation of the financial statements of that foreign operation, presented in comprehensive income, to profit or loss in the period in which the disposal occurs. As for part disposal ,the Company transfers the accumulated translation differences that relating to translation of the financial statements to profit or loss in the period in proportion to the weight of part disposal interest in a foreign operation.
9. Financial Instruments
Financial Instruments comprises financial assets,financial liabilities and equity instruments.
9.1. Classification of financial assets and financial liabilities
Financial instruments are classified into the following categories at initial recognition: financial assets(or liabilities) at fair value through profit or loss, entrusted loans, receivables, available-for-sale financial assets and held-to-maturity investments, other financial liabilities. The classification of financial assets depends on not only commercial substance in contract but also theCompany’s intention and ability to hold the financial assets.
9.2. Recognition and measurement
（1）Financial assets(or liabilities) at fair value through profit or loss ("FVTPL")
Financial assets or financial liabilities at FVTPL include financial assets or financial liabilities held for trading and those designated as at fair value through profit or loss.
A financial asset or financial liabilities is classified as held for trading if one of the following conditions is satisfied:
(i) It has been acquired principally for the purpose of selling in the near term; or
(ii) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Company has a recent actual pattern of short-term profit-taking; or
(iii) It is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial asset or financial liabilities may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied:
(i) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets (or liabilities)or recognizing the gains or losses on them on different bases; or
(ii) The financial asset(or liabilities) forms part of a group of financial assets (or liabilities)or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis;
(iii) Hybrid instruments associated with embedded derivatives,except for embedded derivatives have not significant impact on cash flow of hybrid instrument ,or obviously embedded derivatives should not be spilt from hybrid instrument.
(iv) Hybrid instruments associated with embedded derivatives,which are needed to split but not measurend separately at initial acquisition date or at subsequent balance sheet date.
For financial assets and financial liabilities at FVTPL are initially measured at fair value, and transaction costs are immediately recognized in profit or loss. Financial assets or financial liabilities at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognized in profit or loss.
When dispose,the difference between fair value and initial cost are rcognized in investment income; besides,adjust gain or loss from fair-value changes.
（2）Receivables
Accounts receivable arising from sale of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyers or service recipients.
Receivables are classified into the following categories: receivable, other receivables, notes receivable,advances to suppliers and long-term receivables.
When the Comapny recover or dispose the accounts receivable, the difference between the proceeds received from the transaction and their carrying amounts is recognised in profit or loss for the current period.
（3）Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Company's management has the positive intention and ability to hold to maturity.Held-to-maturity investments are initially measured at fair value,
and transaction costs are included in their initial recognized amounts.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. effective interest determined at acquisition date and keep remain unchanged in estimated period or appropriate shorter period.Gain or loss arising from DE recognition, impairment or amortization is recognized in profit or loss. When dispose,the difference between proceeds received from the transaction and their carrying amounts are rcognized in investment income.
（4）Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition as available for sale, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
Available-for-sale financial assets are initially measured at fair value, and transaction costs are included in their initial recognized amounts. Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognized in investment gains.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss.
（5）Othere financial liabilities
According to its fair value and the associated transaction cost the sum as the amount of initial recognition. Is follow-up measurement with the amortized cost.
9.3. Transfer of financial assets
The Company derecognizes a financial asset if the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; If not,continue to recognize as a financial asset.
When determine whether the transfer of financial assets satisfies DE recognition criteria or not,the substance over form should be taken into consideration
For a transfer of a financial asset in its entirety that satisfies the DE recognition criteria, the difference between (1) the carrying amounts of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized in other comprehensive income is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss.
If a transfer of a financial asset are not satisfies the DE recognition criteria, such financial asset continuing involved in the transferred financial asset and recognizes consideration as an financial liability.
9.4. Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Company (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. When the Company derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
If the Company buy back part of financial liability,the carrying amounts of financial liability should be allocated between the derecognized parts and continuing recognized parts in proportion to ratio of its fair value.The difference between the carrying amount of part of the financial liability derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) is recognized in profit or loss.
9.5. Basis for fair values of the financial assets and financial liabilities
The fair value of financial assets and financial liabilities traded on active markets are determined with reference to quoted market bid prices; The fair value of other financial assets and financial liabilities (excluding derivative instruments) are determined in accordance with generally accepted pricing models based on
discounted cash flow analysis or using prices from observable current market transactions; The fair value of initial acquired or derivative instruments are determined with reference to quoted market prices.
9.6. Impairment of financial assets(except for receivables)
The Company assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Company determines the amount of any impairment loss.
Objective evidence that a financial asset is impaired includes the following observable events:
（1） Significant financial difficulty of the issuer or obligor;
（2） A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
（3） The Comapny, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
（4） It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
（5） The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes: -Adverse changes in the payment status of borrower in the group of assets; Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
（6） Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
（7） A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
The method for impairment loss of financial assets are set out below:
（1） Impairment of available-for-sale financialassets：
The Company assesses the available-for-sale equity instruments individually for impairment at balance sheet date. If the fair value of the equity instruments are reduced to50%(or over50%) of the cost or less than its cost and lasts more than one year, the impairment is recognized. If the the fair value of the equity instruments at the balance sheet date are less than20% but more than50% of the cost, the Company determines the impairment loss taking into account other related factors such as price fluctuation.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
But for the impairment loss incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the impairment loss on such financial asset is not reversed once it is recognized.
（2） Impairment of held-to-maturityinvestments：
If there is objective evidence that a held-to-maturity investments is impaired, the difference between carrying amounts and present value of estimated future cash flows is recognized as an impairment loss in profit or loss. If there is objective evidence of a recovery in value of a held-to-maturity investments which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. However, the reversal is made to the extent that the carrying amount of the held-to-maturity investments at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.
9.7. Offsetting financial assets and financial liabilities
Where the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the
above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
10. Receivables
(1) Receivables with major single amount and provision for bad debts withdrawn
1. The confirmation standard of receivables with major single amount and provision for bad debts: the specific standard of major single amount: the ending balance is up to more than RMB 1,000,000 (including RMB 1,000,000).
2. The withdrawing method of provision for bad debts for receivables with major single amount: separately conduct the impairment test, and include the provision for bad debts into the current profit and loss according to the balance between the present value and book value of the expected future cash flow. The receivables without impairment in separate test shall be included into the corresponding combination of provision for bad debts.
(2) Receivables with provision for bad debts withdrawn as per combination
(1) Determination basis of the credit risk feature combination
In principle, there is no provision for bad debts for receivables of the related parties between enterprises within the consolidation scope of the Pearl River holdings, and if the concrete evidence shows that receivables can not be withdrawn or receivables are less likely to be withdrawn, then the provision for bad debts shall be withdrawn as per uncollectible amount.
For receivables without major ending amount and consolidated financial statement of Pearl River holdings, similar to receivables without impairmentafter separate test, the provision for bad debts shall be withdrawn by aging analysis method.
(2) The withdrawing method confirmed according to credit risk feature combination: the provision for bad debts is withdrawn by aging analysis method.
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|Percentage of AccountsReceivable (%)|
|2|
|5|
|10|
|20|
|30|
|50|

(3) Receivables with not major single amount but provision for bad debts withdrawn
The reason for withdrawing provision for bad debts: the objective evidence shows that the company can not withdraw money according to the original terms of receivables.
The withdrawing method of provision for bad debts: withdrawing according to the balance between the present value and book value of the expected future cash flow of receivables.
11. Inventories
(1) Inventories include: development cost (constructing development product), development
product, finished goods, low-value consumable supplies and etc.
The real estate development products include real estate under construction development product, completiondevelopment product and the land to be developed, etc.. The actual cost of real estate development products includes landtransfer fee, auxiliary facilitiesexpenditure, building installation engineeringexpenditure, loan expense incurred by project development before completion and other related expenses in development.
The development cost refers to the real estate that has not been built for the purpose of sales; the land to be developed refers to the purchased land that is developed into the completiondevelopment product; thedevelopment product refers to the real estate that has been built for sale. When the integrated development is carried out, the land to be developed is transferred into the development cost; when the phased developmentis carried out, the part land developed by stage is transferred into the development cost, and the undeveloped land still remains in the land to be developed.
(2) Inventory valuationmethod：Real estate development product inventory when individual recognition method is used to determine its actual cost, other inventory issued by weighted average method.
(3)The determination of net realisable value basis and inventory write-down provision method: The ending inventory shall be measured according to the lower of cost and net realizable value. The inventory falling price reserves shall be withdrawn according to the balance between the inventory cost and net realizable value. The net realizable value shall be confirmed according to the estimated sale priceminus the estimated cost, selling expenses and related taxes after completion.
In case that the influence factors of the previous write-downinventory value have disappeared, the write-down amount is recovered and returned back within the originally withdrawn inventory falling price reserves, and the returned amount is included into the current profit and loss.
(4) Stock inventory system: Uses the perpetual inventory system.
(5) The amortization method of low-value consumables and packaging: the low-value consumables adopt one-time reselling method.
(6) The accounting method of land development: for the integrated developmentproject, in case that the expense bearing object can be distinguished, generally, the commercial housing cost is calculated according to the actual area.
(7) The accounting method of public supporting facilities expense
The public supporting facilities that can not be transferred with compensation: included into the commercial housing cost according to the benefit ratio;
The public supporting facilities that can be transferred with compensation: taking the supporting facilities as the cost accounting object, to collect the cost.
(8) The accounting method of maintenance funds
According to the local relevant regulations, when the development product is sold (presold), the development cost charged from the purchaser or withdrawn and included by the company is paid to the maintenance fund management department.
(9) The accounting method of quality deposit
The quality deposit is reserved from the project funds of construction unit according to the
construction contract. The maintenance cost incurred during the warranty period of development product writes off the quality deposit; after the warranty period expires, the quality deposit balance will be returned to the construction unit.
12. Long-term equity investment
12.1. Determination of investment cost
（1） For a long-term equity investment acquired through a business combination, please refer to Notes“ IV-4” in detail.
（2） Long-term equity investment acquired through other ways
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually paid. The initial cost consists of the expenses directly relevant to the obtainment of the long term equity investment, taxes and other necessary expenses.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the equity securities issued. Transaction cost of issuing or obtaining equity directly attributed to euity transaction can subtract from equity.
If the transaction is commercial in nature and fair values of both the assets received and surrendered can be reliably measured, the fair value of the assets surrendered shall be the basis for the determination of the cost of the assets received, unless there is any exact evidence showing that the fair value of the assets received is more reliable.Where any non-monetary assets transaction does not meet the conditions as prescribed in above, the carrying value and relevant payable taxes of the assets surrendered shall be the initial cost of a long-term investment obtained.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the basis of fair value.
12.2. Subsequent measurement and recognition of profit or loss
（1） A long-term equity investment accounted for using the cost method
For long-term equity investments over which the Company can exercise control, the Company accounts for such long-term equity investments using the cost method. Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
（2） A long-term equity investment accounted for using the equity method
TheCompany accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is an entity over which the Group exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Comany's share of the fair value of the investee's identifiable net assets at
the time of acquisition, the difference is recognized in profit or loss for the period, and the cost of
the longterm equity investment is adjusted accordingly.
For long-term equity investments accounted for using the equity method, the Company recognises the investment income and other comprehensive income according to its share of net profit or loss and other comprehensive income of the investee, and the cost of the longterm equity investment is adjusted accordingly.The Company discontinues recognising its share of net losses of an investee after the carrying amount of the long-term equity investment together with any long-term interests that, in substance, form part of theinvestor’s net investment in the investee are reduced to zero. However, if the Company has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Company continues recognising the investment losses and the provisions. For changes inowners’ equity of the investee other than those arising from its net profit or loss, other comprehensive income, and profit distribution, the Company adjusts the book value of the investment and records capital surplus accordingly. The carrying amount of the investment is reduced by theCompany’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the intra-company transactions amongst the Company and its investees are eliminated in proportion to theCompany’s equity interest in the investees, and then based on which the investment gains or losses are recognised. For the loss on the intra-company transaction amongst the Company and its investees attributable to asset impairment,any unrealised loss is not eliminated.
12.3. The transfer of accounting methods
(1) Fair value measurement to equity method accounting
As for the equity investment held by the company without control, joint control or significance on the invested unit and conducting accounting treatment according to financial instrument confirmation and measurement regulations, if it may exert significance or joint control (without control) on the invested unit due to increased investment, the fair value of original equity investment (established in accordance with Accounting Standards for Business Enterprises No. 22– Confirmation and Measurement of Financial Instruments) and added investment cost will be regarded as initial investment cost accounted based on equity method.
If the original equity investment is classified as available-for-sale financial assets, the balance between fair value and book value as well as the accumulative fair value changes included into other comprehensive incomes will be transferred to current profits and losses measured based on equity method.
The balance between the initial investment cost accounted with equity method and the fair value of recognizable net assets on additional investment date (invested unit) determined and calculated based on the new shareholding ratio after additional investment will be used to adjust the book value of long-term equity investment and included into current non-operating income.
（2） Fair value measurement or equity method accounting is converted to cost method accounting
As for the equity investment held by the company without control, joint control or significant influence on the invested unit and conducting accounting treatment according to financial instrument confirmation and measurement regulations, or as for the long-term equity investment of associated enterprise and joint venture held by the company, if it can control the invested unit not under the same control due to increased investment, the book value of original equity investment plus additional investment will be regarded as initial investment cost accounted with cost method while preparing individual financial statement.
The equity investment held before purchase date is included into other comprehensive incomes
upon accounting with equity method will be disposed with the same method as disposing the relevant assets or liabilities.
If the equity investment held before purchase date is disposed according to Accounting Standards for Business Enterprises No. 22– Confirmation and Measurement of Financial Instruments, the changes in accumulative fair value included into other comprehensive incomes will be transferred into current profits and losses upon measurement with cost method.
（3） Equity method accounting is converted to fair value measurement
If the company loses joint control or significant influence on the invested unit due to disposing part of equity investment, the remaining equity will be measured according to Accounting Standards for Business Enterprises No. 22--Recognition and Measurement of Financial Instruments. The balance between fair value and book value will be included into current profits and losses on the date losing joint control or significant influence.
The original equity investment is included into other comprehensive incomes upon end up terminating accounting with equity method will be disposed with the same method as disposing the relevant assets or liabilities.
（4） Cost method is converted to equity method.
If the company loses control to the invested unit due to disposing equity part of investment, and the remaining equity may exert joint control or significant influence on the invested unit while preparing individual financial statement, it will be measured and adjusted with equity method.
（5） Cost method is converted to fair value measurement
If the company loses control to the invested unit due to disposing part of equity investment, and the remaining equity may not exert joint control or significance on the invested unit while preparing individual financial statement, the accounting treatment will be conducted in accordance with Accounting Standards for Business Enterprises No. 22– Confirmation and Measurement of Financial Instruments. The balance between fair value and book value will be included into current profits and losses on the date losing control.
12.4. Disposal of long-term equity investments
On disposal of a long term equity investment, the difference between the proceeds actually received and receivable and the carrying amount is recognized in profit or loss for the period. For a long-term equity investment accounted for using the equity method, the amount included in the shareholders' equity attributable to the percentage interest disposed is transferred to profit or loss for the period.
When the clause, condition and the economic impact of making equity investment in subsidiaries is subject to one or more of the following conditions, conduct accounting treatment by taking the multiple transactions as a package deal:
(1) These transactions are considered to be made at the same time or in the case of considering mutual influence;
(2) These transactions only as a whole can achieve a complete business result;
(3) The occurrence of a transaction depends on the occurrence of at least other one transaction;
(4) One transaction alone is not economic, but when being considered together with other
transactions, it is economic.
When the company loses its control rights over the original subsidiary because of the disposal of part equity investment or other reasons other than package deal, a distinction shall be made between individual financial statement and the consolidated financial statement to conduct the accounting treatment:
(1) As for the disposed equity in individual financial statement, the balance between book value and actual value will be included into current profits and losses. In case of disposed residual equity with joint control and significant impact on the invested unit, calculate with equity method, and adjust the residual equity with equity method since the time of obtaining; In case of the disposed residual equity being not able to jointly control or have a significant influence on the invested unit, conduct accounting treatment according to relevant regulations in Accounting Standard for Business Enterprises No.22—Recognition and Measurement of Financial Instruments, and account the balance between the fair value on the date losing control and book value into current profits and losses.
(2) In consolidated financial statement, for the balance between each transaction, disposal price and disposed long-term equity investment before losing control rights to subsidiary and the corresponding net asset share calculated since the date of purchasing or merging the subsidiary, adjust capital reserve (capital stock premium), and adjust retained earnings for those capital reserves insufficient for offset; In case of losing control rights to subsidiary, re-calculate residual equity according to fair value on the date of losing control rights. The difference of sum of the acquired consideration from equity disposal and fair value of residual equities deducting the shares of net assets continuously calculated from the purchase date of original subsidiary enjoyed upon calculation as per original shareholding proportion shall be included into the current investment incomes of losing the control rights with goodwill offset. For other comprehensive income associated with the equity investment of the original subsidiary, it should be converted into investment income when losing the control rights.
If the transaction disposing subsidiary equity investment until losing control rights belongs to package deal, the transaction will conduct accounting treatment as a transaction disposing subsidiary equity investment and losing control rights. Accounting treatment will be conducted separately on individual financial statement and consolidated financial statement;
(1) In individual financial statement, the balance of long-term equity investment book value when disposing price and stock will be confirmed as other comprehensive income before loss of control rights, and when the control rights lose, the other comprehensive income concurrently transferred to current profits and losses.
(2) In consolidated financial statement, the balance of net asset shares of subsidiaries when disposing price and investment will be confirmed as other comprehensive income before loss of control rights, and when the control rights lose, the other comprehensive income concurrently transferred to current profits and losses.
12.5. Judgment standard of joint control and significant influence
If the company controls certain arrangement together with other participators as agreed and makes decision on activities with significant influence, the decision may exist upon consent of participators sharing control rights. It will be deemed as the company controlling the arrangement with other participators. The arrangement refers to joint-operation arrangement.
If joint- operation arrangement is reached by independent entity and the company is entitled to the net assets of the independent entity as agreed, the independent entity will be regarded as joint venture and be accounted with equity method. If the company is not entitled to the net
assets of the independent entity, the independent entity will be regarded as joint operation. The company confirms the items related to joint operation share and conduct accounting treatment in accordance with Accounting Standards for Business Enterprises.
The term "significant influence" means investors having the power to participate in the decision of financial and operating policies to invested unit, but not to control or jointly control the formulation of these policies together with other parties. The company judges to have significant influence on the invested unit by means of one or several circumstances as follows and upon considering all facts and conditions. (1) Representatives have been appointed in the board of directors or equivalent authorities of the investees; (2) Participate in making financial and operation policy of the invested unit; (3) Conduct important deals with the invested unit; (4) Send administrative staff to the invested units; (5) Provide key technical data for the invested units.
13. Investment property
The term "investment property" refers to the real estates held for generating rent and/or capital appreciation, including: the right to use any land which has already been rented; the right to use any land which is held and prepared for transfer after appreciation; and the right to use any building which has already been rented. The initial measurement of the investment property shall be made at its cost. An enterprise shall make a follow-up measurement to the investment real estate through the cost pattern. For buildings which have already been rented, the Company calculates depreciation as the same method of fixed assets. For the right to use any land, it is amortized with straight-line method according to the serviceable life. At the balance sheet date, where any evidence shows that there is possible assets impairment, the impairment provision is made.
Listed as follows:
rate of Estimated Rate of expected
Category depreciation
usefullives（Year） net salvage value
(amortization)
Building
25 5.00% 3.80%
In case that the purpose of investment property is changed as self-use, the investment property shall be converted into fixed assets or intangible assets since the date of changing. In case that the purpose of the self-use real estates is changed as earning rent or capital gain, fixed assets or intangible assets shall be converted into investment property since the date of changing. In case of conversion, the book value before conversion should be recognized as the entry value after conversion.
If an investment property is disposed, or if it withdraws permanently from use and it is predicted that no economic benefit will be obtained from the disposal, this investment real estate should be derecognized. The amount as the book value and relevant taxes are deducted from the disposal income obtained from the sale investment real estate, transfer, discard or damage of the investment property shall be included in the current profit and loss.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in production or supply of goods or services, for rental to others, or for administrative purpose, and have useful lives more than one accounting year.
The expected discard expenses should be taken into consideration in the ascertainment of the cost of a fixed asset. (1) the economic benefits associated with the fixed assets are likely to flow into the enterprise; (2) the cost of the fixed asset can be measured reliably.
(2) Initial measurement of fixed assets
The fixed assets of the company shall be measured initially in accordance with its cost. Where the costs of outsourcing fixed assets include the purchasing price, import tariff and other relevant taxes as well as other expenditures incurred before letting fixed asset reach the expected serviceable conditions which can directly belong to this asset. The cost of self-built fixed assets is constituted by the necessary expenditures spent before that property reaches the predetermined serviceable status. As for fixed assets invested by investors, the entry value thereof equals to the value agreed in investment contracts or agreements. But, should the agreed value in contracts or agreements is not fair, fair value should be used as the entry value. If the fixed asset is purchased at a price beyond normal credit conditions and delay in payment, and substantially has financing nature, the cost of the fixed asset shall be confirmed based on the current value of the acquisition price. The balances between the cost actually paid and the present value of the purchase price will be included in current profit and loss during the credit period except the part that should be capitalized.
(3)The category and depreciation method of fixed assets
（1）Depreciation of fixed assets
The depreciation of fixed assets is calculated and withdrawn within in the predicted service life according to its entry value less the predicted net residual value. For fixed assets withdrawing impairment reserve, depreciation amount is determined according to book value deducted impairment reserves and durable years in future.
The company shall determine the fixed asset service life and anticipated net residual value according to the nature and use condition of the fixed assets.At the end of the year, the company shall recheck the service life, anticipated net residual value and depreciation method of the fixed assets. In case of difference from the original estimation, the corresponding adjustment shall be made.
Depreciable life and yearly depreciation rate of various fixed assets, are listed as follow:
|||
|-|-|
|Estimated useful lives(years)|Expected residual value(%)|
|25|5|
|5|5|
|10|5|
|5|5|

(2) Fixed assets subsequent expenses
In case that the subsequent expenditure related to fixed assets conforms to recognition conditions of fixed assets, they shall be accounted into fixed assets cost; If the fixed assets do not conform to the confirmation criteria, it shall be reckoned into the current profits and losses.
(3) Disposal of fixed assets
When the fixed assets are disposed or cannot be expected to produce economic interests through use or disposal, the asset shall be derecognized. The amount as the book value and relevant taxes are deducted from the disposal income obtained from the sale of fixed assets, transfer, discard or damage of the investment property shall be included in the current profit and loss.
15. Construction in progress
Construction in progress (“CIP”) includes all costs incurred during the preparation period before commencement of construction and until the asset is ready for its intended use. These costs include direct materials, direct labour, equipment for installation, construction and installation charges, management fees, gain or loss on trial run production and borrowing costs which are qualified for capitalization.
CIP is transferred to fixed assets when the asset is ready for its intended use.
At the balance sheet date, where any evidence shows that there is possible CIP impairment, the impairment provision is made according to Notes II.17.
16. Borrowing Costs
Borrowing costs are interest and other related costs incurred by the Company in connection with the borrowing of funds, and include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of that asset. The amounts of other borrowing costs incurred shall be recognized as an expense in the period in which they are incurred.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period of time for acquisition, construction or production to get ready for their intended use or sale. The capitalization of borrowing costs can commence only when all of the following conditions are satisfied: (1) expenditures for the asset are being incurred; (2) borrowing costs are being incurred; (3) activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of the borrowing costs shall be ceased; then the borrowing costs incurred shall be recorded into the profits and losses of the current period. Borrowing costs due to loans from real estate development are recorded into development cost before the completion of the project and recorded into current profit and loss after the completion of the project. Borrowing costs are recorded into development cost and amortized quarterly.
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows:
(1) for a specific-purpose borrowing, the amount of interest to be capitalized shall be the actual interest expense incurred for the period less temporarydeposit’s interest or investment income;
(2) Where funds are borrowed under general-purpose borrowings, the Company shall determine the amount of interest to be capitalized by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts of specific-purpose borrowings. The capitalization rate shall be the weighted average of the interest rates applicable to the general-purpose borrowings.
17. Intangible assets
The term "intangible assets" refers to the identifiable non-monetary assets possessed or controlled by enterprises which have no physical shape. If it is unable to forecast the period when the intangible asset can bring economic benefits to the enterprise, it shall be regarded as an intangible asset with uncertain service life. The intangible assets shall be initially measured according to its cost. If it is unable to determine the expected realization pattern reliably, intangible assets shall be amortized by the straight-line method. An enterprise shall, at least at the end of each year, check the service life and the amortization method of intangible assets with limited service life, and adjust them when necessary. Intangible assets with uncertain service life may not be amortized. An enterprise shall check the service life of intangible assets with uncertain service life during each accounting period. Where any evidence shows that there is possible assets impairment, the impairment provision is made.
18. Long-term prepaid expenses
Long-term prepaid expenses mainly include spending paid with the benefit period of more than one year (excluding the year period) such as car parking fees, housing renovation fees, etc. Long-term prepaid expenses shall be amortized the costs over the duration of the project beneficiary.
19. Contingencies liabilities
The obligation pertinent to a Contingencies shall be recognized as accrued liabilities when the following conditions are satisfied simultaneously: (1) That obligation is a current obligation of the enterprise; (2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation; (3) The amount of the obligation can be measured in a reliable way. The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of the current obligation.
20. Revenue recognition
Revenue from sale of goods
Revenue from sale of goods is recognised when (1) the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; (2) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (3) the amount of revenue can be measured reliably; (4) it is probable that the associated economic benefits will flow to the Group; and (5) the associated costs incurred or to be incurred can be measured reliably.
Where the receivable is delayed beyond the normal credit conditions, which is of financing intention, the revenue shall be determined on the basis of the fair value of the contract or agreement price.
Real estate sales revenue: the Company can recognize real estate sales revenue after the completion and acceptance of the property, signing sale contract, acquiring payment proof from buyer and delivery. When the buyer receives written delivery notice and has no warrant to refuse to accept it, the sales revenue is realized after delivery limit closed of delivery notice. For the development project consigned by other, as well as in accordance with “Accounting Standards for Business Enterprises -Construction Contract", the revenue shall be recognized in light of the percentage-of- completion method. The percentage-of- completion is determined by the proportion of finished workload.
Revenue from rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference the stage of completion of the transaction at the reporting date. The stage of completion of the transaction is recognized according to the proportion of the cost having taken place occupied the estimated total cost.
The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the associated economic benefits will flow to the enterprise;
the stage of completion of the transaction can be measured reliably;
the costs incurred and to be incurred for the transaction can be measured reliably
When the outcome of a transaction involving the rendering of services cannot be estimated reliably at the balance sheet date: when the costs incurred are expected to be recoverable, revenue shall be recognized to the extent of costs incurred and an equivalent amount shall be charged to profit or loss as service costs; when the costs incurred are not expected to be recoverable, the costs incurred shall be recognized in profit or loss for the current period and no service revenue shall be recognized.
The revenue of property management service is recognized when following conditions are satisfied: the property management service has been offered; the associated economic benefits will flow to the enterprise; the associated costs can be measured reliably.
Transfer of asset with buy-back condition
The company determined whether sale of goods or transfer of assets with buy-back condition in contract is satisfy criterias of revenue recognition or not according to clauses of agreement. If it is a financing transaction, revenue are not be recorded. The amount of buy-back price after sales price is recognized in financial cost during the term of buy-back.
Government grants
Government grants shall be recognized at fair value on the conditions that the Company can receive the grant and comply with the conditions attaching to the grant. For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred by the Company in subsequent period, the grant shall be recognized as deferred income, and recognized in profit or loss over the periods in which the related costs are recognized. A government grant related to an asset shall be recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
Recognition of deferred income tax assets and liabilities
(1) The Company shall recognize the deferred income tax assets arising from a deductible temporary difference to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary difference. However, the deferred income tax assets, which are arising from the initial recognition of assets or liabilities during a transaction which is simultaneously featured by the following, shall not be recognized:
(i) This transaction is not business combination; and
(ii) At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the deductible loss) be affected.
(2) Where the deductible temporary difference related to the investments of the subsidiary companies, associated enterprises and joint enterprises can meet the following requirements simultaneously, the enterprise shall recognize the corresponding deferred income tax assets:
(i) The temporary differences are likely to be reversed in the expected future; and
(ii) It is likely to acquire any amount of taxable income tax that may be used for making up the deductible temporary differences.
(iii) As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred income tax assets shall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax deduction to be likely obtained.
(3) Recognition of deferred income tax liabilities
Except for the deferred income tax liabilities arising from the following transactions, an enterprise shall recognize the deferred income tax liabilities arising from all taxable temporary differences:
(i) The initial recognition of business reputation;
(ii) The initial recognition of assets or liabilities arising from the following transactions which are simultaneously featured by the following:
(a) The transaction is not business combination;
(b) At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the deductible loss) be affected.
(4) The income taxes of the current period and deferred income tax of an enterprise shall be treated as income tax expenses or incomes, and shall be recorded into the current profits and losses, excluding the income taxes incurred under the following circumstances:
(i) The business combination; and
(ii) The transactions or events directly recognized as the owner's rights and interests.
(5) Impairment on the deferred income tax assets
On the balance sheet date, the carry amounts of the deferred income tax assets shall be reviewed.
Maintenance fund
TheCompany’s property management company receives and manages public maintenance fund consigned by owners, and charges to “agency fund”. The fund is used in the maintenance and update of the common apparatus and common position of the house and communal facilities of property management region.
Quality assurance reserve funds
Construction party should remain quality assurance reserve funds according to the amount in the construction contract, and list in "accounts payable". The funds should be paid according to the actual conditions and contract after guarantee period.
Changes of accounting policies and accounting estimates and error correction
V． Changes of significant accounting policies and accounting estimates and prior error correction
1. Changes of accounting policies
No alteration of accounting policies occurred in the report period.
2. Changes in accounting estiminations
No alteration of accounting estiminations occurred in the report period.
3. Corrections of previous period critical errors
No corrections of previous period critical errors occurred in the report period.
V.Taxation
The main taxes include: business tax, city construction and maintenance tax, education fee, income tax and etc. The tax rates are as following:
||
|-|
|Rate|
|3%、5%、6%、11%、13%、17%|
|5%、7%|
|3%|
|1.5%、2%|
|10%、25%|
|1.2%、8%、12%|
|1.5%|

Different taxable income tax rate Description:
The three-tier subsidiary Shanghai Pearl Property Management Co., Ltd. and Wuhan Zhujiang
Meilin Hotel Management Co., Ltd. belong to the small profit-making enterprise, the applicable enterprise income tax rate is10%, the Company and other subsidiaries applicable corporate income tax rate of25%.
VI. Notes to significant items of the consolidated financial statements
（All amounts are stated in RMB Yuan unless otherwisestated）
Note 1 Currency Funds
Items Closing Balance Opening Balance
Cash in treasury 786,233.90 1,305,777.52 Bank deposit 162,045,485.08 240,190,186.44 Other monetary funds 5,008,402.28 5,008,387.43 Total 167,840,121.26 246,504,351.39 The restricted monetary fund details are as follows:
Project Closing Balance Opening Balance
CDS used for hypothecation
5,000,000.00 5,000,000.00 deposit and notice deposit
Total 5,000,000.00 5,000,000.00 Note: as of June 31, 2017, this company limited monetary fund is a subsidiary of Hubei of pledge of property to Shanghai pudong development bank loan margin. See note 44.
Note 2 Accounts receivable
1) Disclosure of category details of accounts receivable:
||||||||
|-|-|-|-|-|-|-|
|||Closing Balance|||||
|Categories||Book Balance||Provision for Bad Account|||
||||Ratio||Rate Chargeable（%）|Book Value|
|||Amounts|(%)|Amounts|||
||Accounts receivable with||||||
||significant single amount||||||
|||8,856,207.60|26.72%|8,856,207.60|100.00%||
||and individual provision||||||
||for bad debts||||||
||Accounts receivable with||||||
||combinational||||||
||withdrawal of the bad|22,259,256.35|67.17%|2,029,662.91|9.12%|20,229,593.44|
||debt provision by credit||||||
||risks characteristics||||||
||Accounts receivable with||||||
||non-significant single||||||
|||2,022,991.02|6.10%|2,022,991.02|100.00%||
||amount and individual||||||
||provision for bad debts||||||
||Total|33,138,454.97|100.00%|12,908,861.53|-----|20,229,593.44|

Continued：
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Opening Balance|||||||
|Categories||Book Balance||Provision for Bad Account|||||
||||Ratio|||Rate Chargeable|Book Value|Book Value|
|||Amounts|(%)|Amounts||（%）|||
|Accounts receivable with|t||||||||
|||8,856,207.60|31.23%|8,856,207.6|0|100.00%|||
|significant single amoun|||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|||Opening Balance||||||
|Categories|||Book Balance||Provision for Bad Account|||
|||||Ratio||Rate Chargeable|Book Value|
||||Amounts|(%)|Amounts|（%）||
||and individual provision for|||||||
||bad debts|||||||
||Accounts receivable with|||||||
||combinational withdrawal|||||||
||of the bad debt provision||17,480,913.67|61.64%|1,396,774.35|7.99%|16,084,139.32|
||by credit risks|||||||
||characteristics|||||||
||Accounts receivable with|||||||
||non-significant single|||||||
||||2,022,991.02|7.13%|2,022,991.02|100.00%||
||amount and individual|||||||
||provision for bad debts|||||||
||Total||28,360,112.29|100.00%|12,275,972.97||16,084,139.32|

 Description of categories of accountsreceivable：
(1) Accounts receivable with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name
Rate
Accounts Provision for Reasons of
Chargeable
Receivable Bad Account Withdrawal
（%）
Hainan racing entertainment
1,046,985.40 1,046,985.40 100.00% Irrecoverable
Co., LTD
Hainan Baoping company 2,218,494.43 2,218,494.43 100.00% Irrecoverable
Hainan Zhongyuan tenement Irrecoverable
agency company 2,406,158.00 2,406,158.00 100.00%
Singapore China holding co., Irrecoverable
LTD 2,090,069.77 2,090,069.77 100.00%
Irrecoverable
Hainan dragon film studio
1,094,500.00 1,094,500.00 100.00%
Total 8,856,207.60 8,856,207.60 -----
(2) Accounts receivable in the combination which adopts aging analysis method to determine provision for bad debt:
|||||||||
|-|-|-|-|-|-|-|-|
|Aging||Closing Balance||||||
|||Accounts Receivable||Provision for Bad Account||Rate Chargeable（%）||
|Within 1 year|||11,361,453.65||227,229.07||2.00%|
|1－2 years||5,135,048.9||256,752.44||5.00%||
|2－3 years|||2,084,911.46||208,491.14||10.00%|
||3－4 years||824,727.71||164,945.54||20.00%|
||4－5 years||1,271,562.90||381,468.87||30.00%|
|Over 5 years|||1,581,551.67||790,775.84||50.00%|
|Total|||22,259,256.35||2,029,662.91||-----|

Continued：
||||||||
|-|-|-|-|-|-|-|
|Aging||Opening Balance|||||
|||Accounts Receivable||Provision for Bad Account||Rate Chargeable（%）|
|Within 1 year|||7,946,820.54||158,936.42|2.00%|
|1－2 years|||5,856,250.85||292,812.55|5.00%|
|2－3 years|||824,727.71||82,472.78|10.00%|
|3－4 years|||1,271,562.90||254,312.58|20.00%|
|4－5 years|||912,679.10||273,803.73|30.00%|
|Over 5 years|||668,872.57||334,436.29|50.00%|
||Total||17,480,913.67||1,396,774.35|-----|

(3) Accounts receivable with non-significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name
Accounts Provision for Bad Rate Reasons of
Receivable Account Chargeable（%） Withdrawal
Haikou Peijie clothing
497,520.00 497,520.00 100.00% Irrecoverable
company
Hainan International silver city
451,712.00 451,712.00 100.00% Irrecoverable
Real estate company
Haikou Jingye trading
250,000.00 250,000.00 100.00%
Irrecoverable
development company
Hainan Jinhe Real estate
119,446.00 119,446.00 100.00%
Irrecoverable
company
Hainan Qiongshan Tianxin
112,116.50 112,116.50 100.00%
Irrecoverable
Pawn Investment company
Amount below RMB100000 592,196.52 592,196.52 100.00% Irrecoverable
Total 2,022,991.02 2,022,991.02 -----
2) Situation of the current bad debt provision withdrawn, recovered or reversed:
The amount of current bad debt provision withdrawn was RMB632,888.56yuan.
3) There is no money owed by the shareholders who hold more than5%(5% is included) of voting shares of the Company in the closing accounts receivable.
4) Top 5 units of accounts receivable of the closing balance gathered on the basis of parties which owe the money:
Ratio in Closing
Bad Account Name Closing Balance Amount of Accounts
Provisions Withdrawn Receivable(%)
Hunan Railway Lianchuang
5,052,919.43 15.25% 101,058.39 Technology Development Co., Ltd.
Sino (Zhengzhou) Real Estate Co.,
3,525,276.00 10.64% 155,866.08 Ltd.
Hainan racing entertainment Co., LTD 2,406,158.00 7.26% 2,406,158.00 Dahailin forestry bureau 2,547,615.17 7.69% 140,406.64 Nanning wiing asset management co.
2,499,750.00 7.54% 49,995.00 LTD
Total 16,031,718.60 48.38% 2,853,484.11
Note 3 Advance payment
1) Advance payment is listed as per the aging.
||||||
|-|-|-|-|-|
|||Closing Balance|||
||Aging|Accounts Paid in||Provision for Bad|
||||Ratio （%）||
|||Advance||Account|
|Within 1 year||20,659,366.89|22.35||
|1－2 years||8,492,355.99|9.19||
||2－3 years||||
|Over 3 years||63,281,186.00|68.46|7,050,161.00|
|Total||92,432,908.88|100.00|7,050,161.00|

Continued：
||||||
|-|-|-|-|-|
|||Opening Balance|||
||Aging|Accounts Paid in||Provision for Bad|
||||Ratio （%）||
|||Advance||Account|
|Within 1 year||3,196,725.55|4.28%||
|1－2 years||8,121,038.47|10.88%||
|2－3 years||570,000.00|0.76%||
|Over 3 years||62,761,186.00|84.08%|7,050,161.00|
||Total|74,648,950.02|100.00%|7,050,161.00|

 2) Description on the reasons why the advance payment whose aging is more than one year and amount is significant fails to be timely settled accounts
Reasons why to fail to be settled
Name Closing Balance Aging
timely
Not check and accept the Haikou Hongzhou Real Estate
50,000,000.00 over 3years
Development Unrelated Client house
Advance payment for the Heilongjiang province mudanjiang
8,068,538.47 1-2years
forest engineering company construction cost
Advance payment for the Dahailin Forestry Bureau 4,596,469.00 over 3 years
construction cost
over 3 years
Hebei in implementing investment Project shutdown
4,000,000.00
co., LTD
over 3 years
Hebei mountain building materials Project shutdown
2,800,000.00
co., LTD
Total 69,465,007.47
3) Top 5 units of advance payments of the closing balance gathered on the basis of parties for
which the Company prepaid:
Ratio in
the total
Advance Reasons why to be Name Closing Balance advance
Payment Time outstanding
payment
(%)
The house under the advance payment is Haikou Hongzhou Coastal
50,000,000.00 54.09 over 5 years not checked and Construction Co., Ltd.
accepted
temporarily
Advance payment Jiangsu nantong erjian group co.
Within 1 yea for the construction LTD
9,002,522.00 9.74% cost
Advance payment Heilongjiang Mudanjiang Forestry Within 1yea、
8,489,855.99 9.18 for the construction Engineering Company 1-2years
cost
Advance payment Dahailin Forestry Bureau 4,596,469.00 4.97 4-5years for the construction cost
Advance payment Wuhan changyou construction
4,100,745.70 4.44% Within 1 yea for the construction materials co. LTD
cost
Total 76,189,592.6982.43%
4) Other descriptions on advance payment
According to the Arrangement agreed upon “Supplementary Agreement of Execution of Longzhu Phase-III Project” made by between the Company and Haikou Real Estate Development Co., Ltd. (hereinafter referred to as “Hongzhou Property”), the Company prepaid with RMB50 million yuan for purchasing Longzhu Phase-III Project----Office Building covering 15000 square meters with the qualified acceptance. On August 22, 2013, the Company and Hongzhou Property, Haikou HongZhou Coastal Construction Co., Ltd. (hereinafter referred to as “HongZhou Construction”), Haikou HongZhou Real Estate Group Co.,Ltd. (hereinafter referred to as “HongZhou Group”) signed "Supplementary Agreement on the Implementation of Original Six Agreements in Haikou Hongzhou Center Project ". The rights, obligations and legal responsibilities owned by HongZhou Real Estate in the original contract are inherited by HongZhou Construction. The original guarantee contract signed by between the Company and HongZhou Group shall continue to keep effective. HongZhou Group handed over the land and housing ownership certificate of basement of Times Mansion of Sanya HongZhou Aiderui Hotel located in Yuya Road, Hedong District, Sanya City to the Company for being held in trust. As of June 30, 2017, the second planning of the project has been approved. As of the date of issue of this financial reporting, the design of the construction plan is under way and the cleaning of the site has been completed.
5) There is no money owed by the shareholders who hold more than5%(5% is included) of voting shares of the Company in the closing accounts paid in advance.
Note 4 Interest receivable
Item Closing Balance Opening Balance
Enterprise loan interest 2,710,880.79
2,710,880.79 Total 2,710,880.79
Note 5 Dividends receivable
Investee Closing Balance Opening Balance
Hainan PEARL RIVER Tube-pile
260,015.00 260,015.00 Co., Ltd.
Total 260,015.00 260,015.00 Note 6 Other receivables
1) Disclosure of category details of other receivables
|||||||
|-|-|-|-|-|-|
||Closing Balance|||||
|Categories|Book Balance||Provision for Bad Account|||
|||Ratio(%)||Rate Chargeable|Book Value|
||Amounts||Amounts|（%）||
|Other receivables with||||||
|significant single amount and||||||
||53,159,496.14|11.80%|53,159,496.14|100.00||
|individual provision for bad||||||
|debts||||||
|Other receivables with|390,597,483.22||92,603,389.79||297,994,093.43|
|combinational withdrawal of||||||
|||86.71%||23.71||
|the bad debt provision by||||||
|credit risks characteristics||||||
|Other receivables with|6,681,254.55||4,430,304.59||2,250,949.96|
|non-significant single amount||||||
|||1.48%||66.31||
|and individual provision for||||||
|bad debts||||||
|Total|450,438,233.91|100.00%|150,193,190.52||300,245,043.39|

Continued：
||||||||
|-|-|-|-|-|-|-|
|||Opening Balance|||||
|||Book Balance||Provision for Bad Account|||
|Categories|||Ratio(%)||Rate|Book Value|
|||Amounts||Amounts|Chargeable||
||||||（%）||
||Other receivables with||||||
||significant single amount and||||||
|||53,159,496.14|10.51%|53,159,496.14|100.00%||
||individual provision for bad||||||
||debts||||||
||Other receivables with||||||
||combinational withdrawal of||||||
|||448,284,617.33|88.62%|97,418,770.28|21.73%|350,865,847.05|
||the bad debt provision by||||||
||credit risks characteristics||||||
||Other receivables with||||||
||non-significant single amount||||||
|||4,391,560.82|0.87%|4,387,360.82|99.90%|4,200.00|
||and individual provision for||||||
||bad debts||||||
||Total|505,835,674.29|100.00%|154,965,627.24||350,870,047.05|

Description of categories of otherreceivables：
（1） Other receivables with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name
Provision for Rate Reasons of
Other Receivables
Bad Account Chargeable（%） Withdrawal
Singapore China holding co., LTD 16,981,016.24 16,981,016.24 100.00 Irrecoverable
Shenzhen Yinxiang Computers
6,482,625.00 6,482,625.00 100.00 Irrecoverable
Co., Ltd.
Hainan macun port harbor
6,000,000.00 6,000,000.00 100.00
Irrecoverable
company
Beijing kun of consulting
3,200,000.00 3,200,000.00 100.00
Irrecoverable
services co., LTD
Dingjia International Co., Ltd. 2,725,702.71 2,725,702.71 100.00 Irrecoverable
Hainan Enxin Industry Co., Ltd. 2,314,592.00 2,314,592.00 100.00 Irrecoverable
Hainan Zhongda Real Estate
2,210,779.10 2,210,779.10 100.00 Irrecoverable
Company
Dabao Cement Factory 1,901,383.56 1,901,383.56 100.00 Irrecoverable
Jinguang Real Estate Company 1,752,100.00 1,752,100.00 100.00 Irrecoverable
Shenzhen Zhuce Real Estate
1,550,278.23 1,550,278.23 100.00 Irrecoverable
Company
Shenzhen State-Investment
1,409,934.28 1,409,934.28 100.00 Irrecoverable
Securities Co., Ltd.
Haikou Industrial Development
1,392,430.00 1,392,430.00 100.00 Irrecoverable
Import and Export Co., Ltd.
Xinhua Liming Aviation
1,208,804.70 1,208,804.70 100.00 Irrecoverable
Decoration Company
Hainan Shenhai Real Estate Co.,
1,029,850.32 1,029,850.32 100.00 Irrecoverable
Ltd.
Hainan Yangtze River Travel 1,000,000.00 1,000,000.00 100.00 Irrecoverable
Sanya Land and Housing
1,000,000.00 1,000,000.00 100.00 Irrecoverable
Administration
Beijing jardine spring catering
1,000,000.00 1,000,000.00 100.00 Irrecoverable
co., LTD
Total 53,159,496.14 53,159,496.14 -----
（2） Other receivables in the combination which adopts aging analysis method to determine provision for bad debt:
||||||
|-|-|-|-|-|
|||Closing Balance|||
||Aging||Provision for Bad||
|||Other Receivables||Rate Chargeable（%）|
||||Account||
|Within 1 year||124,293,186.00|2,499,833.59|2.01|
||1－2 years|39,366,728.18|1,968,336.43|5.00|
||2－3 years|1,120,940.33|112,094.03|10.00|
||3－4 years|30,485,856.54|6,097,171.31|20.00|
||4－5 years|78,711,060.84|23,613,318.25|30.00|
|Over 5 years||116,619,711.33|58,312,636.17|50.00|
|Total||390,597,483.22|92,603,389.78|-----|

Continued：
|||||||||
|-|-|-|-|-|-|-|-|
||||Opening Balance|||||
||Aging|||Provision for BadAccount||||
||||Other Receivables||||Rate Chargeable（%）|
||Within 1 year||190,264,261.72||3,805,285.26||2.00%|
|1－2 years|||22,129,825.90||1,106,491.30||5.00%|
|2－3 years||497,956.54||49,795.66||10.00%||
|3－4 years||31,339,904.84||6,267,980.97||20.00%||
|4－5 years||79,185,585.34||23,755,675.60||30.00%||
|Over 5 years||124,867,082.99||62,433,541.49||50.00%||
||Total|448,284,617.33||97,418,770.28||-----||

（3） Other receivables with non-significant single amount and individual provision for bad debts at the end of period
Closing Balance
Name
Other Provision for Rate Chargeable
Reasons of Withdrawal Receivables Bad Account （%）
Sell Dabao cement on a
560,610.00 560,610.00 100.00 Irrecoverable
commission basis
Hainan Development Bank 440,000.00 440,000.00 100.00 Irrecoverable
Hainan Sanli Industry and
283,478.62 283,478.62 100.00 Irrecoverable
Trade Company
Chamber of Commerce of
270,000.00 270,000.00 100.00 Irrecoverable
Hainan Province
Telephone rate of customers
268,542.54 268,542.54 100.00 Irrecoverable
of PEARL RIVER Square
China Construction Sixth
Engineering Division Group, 260,335.00 260,335.00 100.00 Irrecoverable
Ltd
Huazhou Jianan Company 200,000.00 200,000.00 100.00 Irrecoverable
PEARL RIVER Advertisement
184,911.62 184,911.62 100.00 Irrecoverable
Company
Initial installation charge of
156,271.60 156,271.60 100.00 Irrecoverable
telephone
Withdrawal of Amount below RMB150000 4,057,105.17 1,806,155.21 non-recoverable
44.52%
（49units） amount according to the estimate
Total -----
6,681,254.55 4,430,304.59
2) Situation of the current bad debt provision withdrawn, recovered or reversed:
The amount of current bad debt provision withdrawn was RMB4,772,436.72 yuan.
3) There is no money owed by the shareholders who hold more than5%(5% is included) of voting shares of the Company in the closing other receivables.
Ratio in
Closing Closing
Nature of Amount of Balance of Name Closing Balance Aging
Money Other Bad Debt Receivables Provisions(%)
Payment for the
4-5years、
Beijing Kangtai Xingye Investment project and
102,500,000.00 over 5 22.76 43,050,000.00 Co.,Ltd intercourse
years
funds
Beijing runshun technology Intercourse
97,720,000.00 1-2years 21.70 1,954,400.00 development co. LTD funds
Payment for the
4-5years、
project and
Public Investment Co., Ltd 90,400,000.00 over 5 20.07 37,800,000.00 intercourse
years
funds
Lion king international investment Payment for the 1-2years、
50,000,000.00 11.10 7,000,000.00 co., LTD project 3-4years
1-5years、
Singapore Great Land Holdings Intercourse
16,981,016.24 over 3.77 16,981,016.24 Co.,Ltd funds
5year
Total 382,601,016.24 79.39 106,785,416.24 In 2016, the company and Beijing Runshun Science and Technology Development Co., Ltd. (hereinafter referred to as “Runshun Science and Technology”) signed the grain trade purchase agreement and paid the prepayment of 112,720 Ten thousand yuan, and later the eighth board of directors of the company held the 8th meeting in order to solve the competition between controlling shareholders and company and cancel the grain trade business. The above mentioned payments will be returned by September 30, 2017, and the amount of the above mentioned amount will be 15 million yuan as of the date of this report. In 2011, “Agreement on Special Railway Sidings for Mulin Town as well as Coal Wholesale Market Construction Cooperation Project” and supplementary agreement of project were signed by between the Company and Zhonghe Investment Co., Ltd. (hereinafter referred to as “Zhonghe Investment”), which stipulate the joint investment of both parties in the special railway sidings for Mulin town as well as coal wholesale market construction project. Under the agreement, the staged financing is required from both parties, of which covers the upper limit investment amount for the PEARL RIVER Holding is RMB140 million. The Beijing Branch of Investment& Consultation Firm which belongs to the Company will supervise the use of license and official seal of Zhonghe Investment. Both parties signed the supplementary agreement of investment in 2012, which stipulates an additional increase of RMB37 million yuan contributed by the Company. As the project is not approved and initiated and production line is not carried out really, the Company recovered the investment of RMB40 million yuan in 2013 and RMB36.6 million in 2014. Zhonghe Investment mortgaged the project land and real estate to the Company in 2014, but no registration of mortgage was carried out. On December 31, 2016, the two sides signed agreement, the termination of the project cooperation and recovery of the investment fund. As of this report, is according to the agreement to recover the first instalment of 10 million yuan.
The main intercourse funds between the Company and Beijing Kangtai Xingye Investment Co., Ltd. (hereinafter referred to as “Kangtai Xingye”) consist of the money for cooperation of project. In 2011, the Company has signed a Cooperation Agreement together with Beijing Kangtai Xingye Investment Co., Ltd. and the natural person, GU Lijun. Under this agreement, a project company will be co-founded by the capital contribution of RMB70 million from the natural person and the capped capital contribution of RMB64 million from the Company, with responsibility for the development and sales of the iron and ore resources at Dujiawan Magnetite Iron Ore and Zhaojiayuan Iron Ore located at Shiyan City, Hubei Province. Kangtai Xingye used its own70% of equities holding in Yuxi Shengying Mining, Zhongjia Sun Energy Technology (Group) Co., Ltd. used its own10% of equities holding in Yuxi Shengying Mining and Natural Person, GU Lijun used his own70% of equities holding in Yuxi Shengying Mining as the pledged collateral to the Company, but no registration of pledge was carried out. In 2012, according to the progress of investment in the project, three parties signed a Supplementary Agreement which stipulated an additional increase of investment of RMB36 million from the Company, those investments would be used for the upgrading of production lines in above-mentioned two mining areas and building more production lines.
In September 2016, the parties jointly signed the Supplementary Agreement III of Cooperation Agreement, which specified that original agreement shall be continued to perform if administrative examination and approval permissions (mining permit) of Dujiawan Iron Mine or Zhaojiayuan Iron Mine were obtained as of December 31, 2017, otherwise the company would withdraw from the project as stipulated in original cooperation agreement, and fulfill the obligation of the payment of investment amount and fees for the possession of funds as of June 30, 2018. As of the date of financial statement, Kangtai Industrial Co., Ltd. was entrusting relevant agencies with the application for mining permit.In May 2013 and August 2013, the Company has signed a Cooperation Agreement together with Singapore Great Land Holdings Ltd. (hereinafter referred to as “Singapore Great Land”), According to this Agreement, the Company planned to develop the Land No. 20 owned by Sanya PEARL RIVER Tube-pipe Co., Ltd. and located in Lizhigou Industrial Park, Hairun Road, Sanya City. The Company has paid with RMB50 million for planning to become the assignee of80% equities in the project company owned by Singapore Great Land. In June 2015, the use certificate of this land was issued. At present, all parties are discussing for the procedures of transferring ownership. At present, Singapore to hold the equity of the project company has transferred to lion king international investment co., LTD., shall be borne by the lion king on international investment co., LTD. Of the equity transfer of obligations and has begun the equity transfer procedures.
Note 7 inventories
Closing Balance Opening Balance
Items Book Balance Provision for Book Value Book Balance Provision for Book Value Fall in Price Fall in Price
Raw
550,085.67 550,085.67 2,780,859.54 2,780,859.54 materials -
Low-value
consumption 354,012.90 354,012.90 355,982.90 355,982.90 -
goods:
Finished
333,330.38 333,330.38 347,003.84 347,003.84 goods -
Constructing
development 42,701,132.90 17,439,325.19 25,261,807.71 42,701,132.90 17,439,325.19 25,261,807.71 product
Development
153,210,397.31 21,726,889.27 131,483,508.04 290,815,415.14 21,726,889.27 269,088,525.87 products
Consumptive
biological 33,627.19 33,627.19 33,627.19 33,627.19 -
assets
Total 197,182,586.35 39,166,214.46 158,016,371.89 337,034,021.51 39,166,214.46 297,867,807.05 The closing book value of inventories used for the guarantee was RMB 4,824,035.45 yuan, the details are set forth in Note 44
2) Provision for fall in price of inventories
Current Increase Current Decrease
Opening Closing Categories Amount
Balance Amount Amount Balance Other Written Other
Withdrawn Reversed
Off
Products
21,726,889.27 21,726,889.27 Developed
Constructing
development 17,439,325.19 17,439,325.19 product
Total 39,166,214.46 39,166,214.46 3) Description on capitalization of borrowing cost included in the closing balance of inventories Current Decrease
Capitalization rate of capitalized Name of Opening Current Closing
amount Inventory Balance Increase
Decrease of Other
Balance
confirmed in this Sales Decrease
period(%) Meilin Qingcheng
（PhaseIII） 15,212,376.71 - 11,314,634.08 636,000.00 3,261,742.63
Total
15,212,376.71 - 11,314,634.08 636,000.00 3,261,742.63
4) Development Cost
Estimated
Total Investment
Name of Project Starting Time Completion Closing Balance Opening Balance Estimated
Time
Wuhan Meilin April 2013 June 2016 640,000,000.00 25,261,807.71 25,261,807.71
Estimated
Total Investment
Name of Project Starting Time Completion Closing Balance Opening Balance Estimated
Time
Qingcheng
Hebei New
17,439,325.19 17,439,325.19 Residential Project
Total 640,000,000.00 42,701,132.90 42,701,132.90 Phase III of the subsidiary Meilin Qingcheng of Hubei Pearl River covers 18138 square meters of land area and 73363 square meters of construction area. On December 5, 2016, Phase III of Meilin Qingcheng has obtained a certificate of completion inspection and acceptance for the record and start making a room formalities on December 7.
New Residential Project of the subsidiary Hebei Real Estate is located in Luoling Community, located in Luquan City, Shijiazhuang City, covers 1000 acres of land area and about 1600000 square meters of construction area, it is planned to cover 400,000 square meters of construction area in Phase I with a building period of 3-5 years. No any progress was carried out because the relocation plan is not completed.
5) Products Developed
Completion Opening Current Current Closing
Name of Project
Time Balance Increase Decrease Balance
Wuhan Meilin
August 2006 497,649.84 388,204.44 109,445.40 Qingcheng, Phase I
Wuhan Meilin September
7,117,653.91 7,117,653.91 Qingcheng, Phase II 2009
Haikou Dijing Building, 6
In 1995 5,315,696.54 5,315,696.54 floors
Haikou Longzhu Building,
1,598,659.60 1,598,659.60 21 floors
Garage of Haikou PEARL
6,919,373.98 6,919,373.98 RIVER Square
Garage of Haikou
2,664,000.00 2,664,000.00 Longzhu Building
Rear Cubicle of 954,436.94 954,436.94 Underground Garage of
35,265,199.35 35,265,199.35 Shanghai Rose Garden
Wuhan Meilin December
230,482,744.98 137,216,813.39 93,265,931.59 Qingcheng, Phase III 2016
Total 65,330,786.48 137,605,017.83 153,210,397.31 6) Consumptive Biological Assets
Item Closing Balance Opening Balance
Meat Animals 33,627.19 33,627.19 Total 33,627.19 33,627.19 Note 8 Other current assets
Category and content Closing Balance Opening Balance
Prepaid Taxes 14,411,010.8 8,714,139.07
Category and content Closing Balance Opening Balance
Total 14,411,010.8 8,714,139.07 Note: other current assets prepay taxes for subsidiary of HuBei house opens to booking the relevant taxes involved in the pearl river real estate company.
Note 9 Available-for-sale financial assets
1) Information of available-for-sale financial assets
Closing Balance Opening Balance
Item
Book Balance Impairment Book Value Book Balance Impairment Book Value Provision Provision
Available-fo
r-sale
equity
instruments
：
Measured
at fair value
Measured
49,263,555.29 18,438,560.39 30,824,994.90 49,263,555.29 18,438,560.39 30,824,994.90 at the cost
Total 49,263,555.29 18,438,560.39 30,824,994.90 49,263,555.29 18,438,560.39 30,824,994.90 2) Available-for-sale financial assets measured at the fair value at the end of report period
There is no available-for-sale financial assets measured at the fair value at the end of reportperiod. 3) Equity instruments measured at the cost at the end of report period
Ratio of shares
Book Balance
held in the
Investee
investee
Opening Current Current Closing
(%)
Balance Increase Decrease Balance
Hainan pearl river pipe pile co.,
426,315.00 426,315.00 LTD
1.33
Hainan province chamber of
500,000.00 500,000.00 commerce
6.67
China to promote science and
10,000,000.00 10,000,000.00 technology investment co., LTD
10.00
Hainan China pearl river basic
160,000.00 160,000.00 engineering co., LTD
1.07
Guangzhou pearl river
18,177,240.29 18,177,240.29 investment management co., LTD
9.48
HuaQing emerging construction
engineering management 20.00
(Beijing) co., LTD
Chongqing long jinbao network
13.559
technology co., LTD 20,000,000.00 20,000,000.00 Shenzhen fortis loan financial
20.00
services co., LTD
Total
Impairment Provision
Current Cash Investee
Opening Current Current Closing
Bonus
Balance Increase Decrease Balance
Hainan pearl river pipe pile co., LTD 426,315.00 426,315.00
Hainan province chamber of
500,000.00 500,000.00
commerce
China to promote science and
10,000,000.00 10,000,000.00
technology investment co., LTD
Hainan China pearl river basic
engineering co., LTD 160,000.00 160,000.00
Guangzhou pearl river investment
7,352,245.39 7,352,245.39
management co., LTD
Hainan macun port harbor
company
HuaQing emerging construction
engineering management (Beijing)
co., LTD
Chongqing long jinbao network
technology co., LTD
Shenzhen fortis loan financial
services co., LTD
Total
18,438,560.39 18,438,560.39
Note: the company to HuaQing emerging construction engineering management (Beijing) co., LTD.20% stake, and the shenzhen co., LTD.20% stake in fortis credit financial services are subscribed stage, not actual investment.
Note 10 Long-term Equity Investment
Current Increase or Decrease
Opening
Investment Adjustment of Investee
Balance
Additional Contribution Results Other Contribution Reduced Recognized by Comprehensive Equity Method Income 1. Associated Enterprises
Sanya Wanjia Industry Co.,
Ltd. 32,393,800.55 - - -928,894.05
Beijing Viewpoint Discovery
Media Co., Ltd. 1,472,844.43 - - -166,478.37
Sub-total
33,866,644.98 - - -1,095,372.42
Total
33,866,644.98 - - -1,095,372.42
Continued：
Current Increase or Decrease
Closing Balance Declared to
Investee
Change of Impairment
Closing Balance of Impairment grant cash
Other Provision Other
Reserve dividends or
Equities Withdrawn
profits
1. Associated Enterprises
Sanya Wanjia Industry Co.,
31,464,906.50
Ltd.
Current Increase or Decrease
Closing Balance Declared to
Investee
Change of Impairment
Closing Balance of Impairment grant cash
Other Provision Other
Reserve dividends or
Equities Withdrawn
profits
Beijing Viewpoint Discovery
1,306,366.06
Media Co., Ltd.
Sub-total 32,771,272.56
Total 32,771,272.56
TheCompany’s long-term equity investment does not the situation that the capacity of remitting funds to the other companies is restricted.
Note 11 Investment-based real estate
1) Information of investment-based real estate
Houses and Construction in
Item Land Use Right Total
buildings Progress
1. Book Value
1.1 Opening Balance 31,531,031.71 31,531,031.71 - -
1.2 Current Increase
1.3 Current Decrease 4,830,941.70 4,830,941.70 - -
（1）Disposal 4,830,941.70 4,830,941.70 - -
1.4 Closing Balance 26,700,090.01 26,700,090.01 - -
2. Accumulative
Depreciation
(Amortization)
2.1 Opening Balance 9,205,051.50 9,205,051.50 - -
2.2 Current Increase 488,873.68 488,873.68 - -
（ 1） Amount
Withdrawn or 488,873.68 488,873.68 - -
Amortized
2.3 Current Decrease 1,876,924.41 1,876,924.41 - -
（1）Disposal 1,876,924.41 1,876,924.41 - -
2.4 Closing Balance
7,817,000.77 - - 7,817,000.77 3. Impairment
Provision
3.1 Opening Balance 3,081,199.41 3,081,199.41 3.2 Current Increase
3.3 Current Decrease
（1）Disposal
Houses and Construction in
Item Land Use Right Total
buildings Progress
3.4 Closing Balance 3,081,199.41 3,081,199.41 4. Book Value
4.1 Closing Book Value 15,801,889.83 15,801,889.83 - -
4.2 Opening Book
19,244,780.80 19,244,780.80 Value - -
2) Description on investment-based real estate
The closing book value of assets mortgaged was RMB6,232,449.23yuan, the details are set forth in Note 44.
Note 12 Original value and depreciation of fixed assets
1) Information of fixed assets
Houses and Common Other
Item Transportation Total
buildings Equipments Equipments
1. Totality of
Original Book Value
1.1 Opening
252,105,519.76 21,500,871.50 30,069,143.44 28,573,990.22 332,249,524.92 Balance
1.2 Current
185,535.90 165,498.82 351,034.72 Increase - -
（1）Purchase 185,535.90 165,498.82 351,034.72 - -
（2）Transferred in
from Construction
in Progress
（ 3） Other
Transfer-in
1.3 Current
172,569.84 258,979.00 431,548.84 Decrease - -
（1）Disposal or
172,569.84 258,979.00 431,548.84 Scrap - -
（ 2） Other
Transfer-out
1.4 Closing Balance 252,105,519.76 21,500,871.50 30,082,109.50 28,480,510.04 332,169,010.80 2. Accumulative
Depreciation
2.1 Opening
46,105,138.09 8,358,326.69 24,978,246.81 24,898,586.12 104,340,297.71 Balance
2.2 Current
Increase 4,663,993.85 997,730.58 1,102,734.96 780,670.21 7,545,129.60（ 1） Amount
Withdrawn 4,663,993.85 997,730.58 1,102,734.96 780,670.21 7,545,129.60 2.3 Current
Decrease - - 155,492.63 248,798.84 404,291.47（1）Disposal or
Scrap - - 155,492.63 248,798.84 404,291.47（ 2） Other
Transfer-out - - - - - 2.4 Closing Balance 50,769,131.94 9,356,057.27 25,925,489.14 25,430,457.49 111,481,135.84 3. Impairment
Reserve -
Houses and Common Other
Item Transportation Total
buildings Equipments Equipments
3.1 Opening
7,499,295.92 7,499,295.92 Balance
3.2 Current
Increase - - - - - 3.3 Current
Decrease - - - - - 3.4 Closing Balance 7,499,295.92 7,499,295.92 - - -
4. Totality of Book
Value
4.1 Closing Book
193,837,091.90 12,144,814.23 4,156,620.36 3,050,052.55 213,188,579.04 Value
4.2 Opening Book
198,501,085.75 13,142,544.81 5,090,896.63 3,675,404.10 220,409,931.29 Value
2) Other descriptions on fixed assets
（1） The closing book value of assets used for the guarantee was RMB3,076,944.63yuan, the details are set forth in Note 44.
(2) The closing original value of fixed assets that continued to work after being depreciated fully was RMB51,642,081.97yuan.
Note 13 Construction in progress
1) Information of construction in progress
Closing Balance Opening Balance
Item
Book Impairmen Book Book Impairmen Book
Balance t Reserve Value Balance t Reserve Value
Snow Town
5,648,964.09 3,000,000.00 2,648,964.09 5,648,964.09 3,000,000.00 2,648,964.09 Train 550
Snow Town
4,180,000.00 2,000,000.00 2,180,000.00 4,180,000.00 2,000,000.00 2,180,000.00 Train 400
Early Stage of
360,000.00 360,000.00 360,000.00 360,000.00
Snow Town - - Snow Town
Integrated 73,672,948.93 73,672,948.93 73,340,730.93 73,340,730.93 - -
Service Center
Total 83,861,913.02 5,360,000.00 78,501,913.02 83,529,695.02 5,360,000.00 78,169,695.02 2) Current change of important constructions in progress
Current
amount
Opening Current
Item transferred Other Decrease Closing Balance Balance Increase
into fixed
assets
Snow Town
Integrated Service 73,340,730.93 332,218.00 73,672,948.93 - -
Center
Total 73,340,730.93 332,218.00 73,672,948.93 - -
Continued：
Ratio of
Budget investment Including： Current
Progress of Accumulative
(10 in the Current Capitalization Sources of Item Constructio Interest
thousan constructio Interest Rate of Funds
n(%) Capitalized
d yuan) n in the Capitalized Interest(%)
budget(%)
Snow Town
Integrated 10,605.84 69.46 13,567,288.74
Service Center
Total 10,605.84 69.46 —— 13,567,288.74
Note 14Intangible Assets
1) Information of intangible assets
Trademark
Item Software Land Use Right Other Total
Right
1. Totality of
Original Book Value
1.1 Opening
1,448,739.53 3,827,129.21 93,900.00 911,400.00 6,281,168.74 Balance
1.2 Current
8,800.00 8,800.00 Increase - - -
（1）Purchase 8,800.00 8,800.00 - - -
1.3 Current
Decrease - - - - - 1.4 Other Decrease 1,457,539.53 3,827,129.21 93,900.00 911,400.00 6,289,968.74 1.5Closing Balance
- 2. Accumulative
Depreciation
2.1 Opening
1,163,972.34 489,408.80 24,257.50 1,677,638.64 Balance -
2.2 Current
36,564.90 40,104.90 4,695.00 81,364.80 Increase -
（ 1） Amount
36,564.90 40,104.90 4,695.00 81,364.80 Withdrawn -
2.3 Current
Decrease - - - - - 2.4 Other Decrease
- 2.5 Closing Balance 1,200,537.24 529,513.70 28,952.50 1,759,003.44 -
3. Impairment
Reserve - - - - - 3.1 Opening
Balance - - - 911,400.00 911,400.00 3.2 Current
Increase - - -
3.3 Current
Decrease - 3.4 Other Decrease
3.5 Closing Balance 911,400.00 911,400.00 4. Totality of Book
Value
Trademark
Item Software Land Use Right Other Total
Right
4.1 Closing Book
Value 257,002.29 3,297,615.51 64,947.50 - 3,619,565.30 4.2 Opening Book
Value 284,767.19 3,337,720.41 69,642.50 - 3,692,130.10 Note 15Long-term deferred expenses
Opening Current Current Other Closing
Item
Balance Increase Amortization Decrease Balance
Decoration and Reform 733,485.03 216,255.60 517,229.43 - -
Lease of Snow Park 300,000.00 300,000.00
- - - Snow publicity expenses
5,133.53 5,133.53
- - 0.00 Snow fish pond royalties
266,059.02 139,413.00 126,646.02 - -
Snow ski resort fee
429,285.31 189,609.96 239,675.35 - -
L. chinensis mountain facilities
fee 230,000.00 60,000.00 170,000.00 - -
Erlong studio amusement
facilities fee 120,000.00 60,000.00 60,000.00 - -
Total 2,083,962.89 970,412.09 1,113,550.80 - -
Note 16 Deferred tax assets/deferred tax liabilities
1) Deferred tax assets not offset
Closing Balance Opening Balance
Item
Taxable Temporary Taxable Temporary
Deferred Tax assets Deferred Tax assets Differences Differences
Real estate enterprises in
accordance with the pre - sale
19,941,945.99 4,985,486.50 income is expected to pay gross
income tax
Total 19,941,945.99 4,985,486.50 2) Deferred tax liabilities not offset
Closing Balance Opening Balance
Item
Taxable Temporary Deferred Tax Taxable Temporary Deferred Tax
Differences Liabilities Differences Liabilities
Changes in fair value of available
- for - sale financial assets
The difference between the fair
value of the acquiree's
identifiable net assets and its 2,391,587.72 597,896.93 2,391,587.72 597,896.93 carrying amount of the net
assets recognized by the
Closing Balance Opening Balance
Item
Taxable Temporary Deferred Tax Taxable Temporary Deferred Tax
Differences Liabilities Differences Liabilities
business combination
Total 2,391,587.72 597,896.93 2,391,587.72 597,896.93 3) Deferred income tax assets or liabilities as set out in the net amount after offsetting.
The final amount Offset the ending Deferred tax assets Offset the balance at set-off deferred balance of deferred and liabilities at the the beginning of
Item
income tax assets income tax assets or beginning of the deferred income tax and liabilities liabilities amount of set-off assets and liabilities Deferred Tax Assets 4,985,486.50 Deferred Tax Liabilities 597,896.93 597,896.93 4) Unconfirmed deferred income tax assets detail the deductible temporary differences
Item Closing Balance Opening Balance
Asset impairment loss 244,608,883.23 248,748,431.39 Deductible losses 192,055,060.47 212,595,502.92 Total 436,663,943.70 461,343,934.31 The deferred income tax assets related to deductible temporary differences and deductible losses are not recognized as a result of the availability of sufficient taxable income in the future.
5) The deductible loss of unrecognized deferred income tax assets will expire in the following years
Item Closing Balance Opening Balance Remark
2017 21,814,360.45 42,354,802.90
2018 52,373,550.83 52,373,550.83
2019 45,704,368.46 45,704,368.46
2020 45,826,297.05 45,826,297.05
2021 26,336,483.68 26,336,483.68
合 计 192,055,060.47 212,595,502.92
Note 17Other Non-current Assets
Category and Item Closing Balance Opening Balance
villa 1,581,840.00 1,581,840.00 Total 1,581,840.00 1,581,840.00 Note: On September 20, 2014, an Agreement on Debt Offset was signed by between Mudanjiang Mingzhen Real Estate Development Co., Ltd. (hereinafter referred to as “Mingzhen Company”), Mudanjiang Jingbo Lake Scenery Environmental Production Property Management Co., Ltd. (hereinafter referred to as “Environmental Protection Property Company”) and our subsidiary Mudanjiang Wanjia Star Hotel Co., Ltd.. Because the above-mentioned three parties have the debt relation with each other, three parties reach an Agreement as follows: Mingzhen Company used its Shangjing ChuanshuoD12# brick-concrete villa (located in Jingbo Lake Town) with a value of RMB1,581,840.00 (131.82 square meters x RMB12 thousand) offsetting the compensation for the
lease of RMB1,019,340.00 that Environmental Protection Property Company owed the Company, of which covered a difference of RMB562,500.00 that had been recognized in the income for the year 2014, but no procedure of ownership transfer was carried out as June 30, 2017.
Note 18Provision of asset impairment
Closing
Current Increase Current Decrease
Balance
Opening
Item Current
Balance Current Current Current
Transfer-ou
Withdrawal Transfer-in Reverse
t
Bad debt provision
174,291,761.21 1,516,307.63 - 5 ,6 5 5,855.79 - 1 7 0 ,152,213.05 Provision for decline in value of
inventories
39,166,214.46 - - - - 3 9 ,166,214.46 Provision for impairment of
available-for-sale financial assets 18,438,560.39 - - - - 1 8 ,438,560.39 Provision for impairment of
investment-based real estate
3,081,199.41 - - - - 3 ,081,199.41 Provision for impairment of
fixed assets
7,499,295.92 - - - - 7 ,499,295.92 Provision for impairment of
construction in progress
5,360,000.00 - - - - 5 ,360,000.00 Provision for impairment of
intangible assets
911,400.00 - - - - 911,400.00 Total
248,748,431.39 1,516,307.63 - 5 ,6 5 5,855.79 - 2 4 4 ,608,883.23 Note 19Accounts Payable
Item Closing Balance Opening Balance
Accounts Payable for the
54,020,418.10 64,695,314.44 Construction
Accounts Payable for the Materials 6,593,171.80 6,403,644.98 Investment not paying
5,000,000.00 5,000,000.00 The deposit
1,205,232.30 1,528,008.58 Other
7,693.51 37.61 Total 66,826,515.71 77,627,005.61 Significant accounts payable with aging of more than one year
Name Closing Balance Reasons of Outstanding Accounts
Snow deiss hotel buy the balance Lin Deying, guan-wen Chen 5,000,000.00
payment
Hainan pearl river industrial
engineering construction 3,572,235.33 Money is tight
supervision company
Mudanjiang Long Yang boiler
1,425,651.00 Money is tight
installation co., LTD
Total 9,997,886.33
Note 20Accounts Received in Advance
1) Information of accounts received in advance
Item Closing Balance Opening Balance
Lease of Garage 27,288,955.50 26,697,103.84 Heating - 1,673,048.13 Cooperative Operation 35,382.03 2,487,649.01 Pre-deposit for Consumption 659,368.63 1,317,010.23 Property Management 19,318,276.01 16,857,732.88 Supporting of Heating Facilities 174,789.00 174,789.00 Houses in Pre-sell 183,368,166.00 316,499,198.66 Other 41,786.41 40,336.41 Total 230,886,723.58 365,746,868.16 2) Significant accounts received in advance with aging of more than one year
Name Closing Balance Reasons of Outstanding Accounts
Accounts received in advance with pending to The taxi such 27,288,955.50 be transferred in（Hubei PEARL RIVER received the rent inadvance）
Total 27,288,955.50
Note 21 Remunerations payable for employees
1) List of remunerations payable for employees
Opening Current Other Closing
Item Current Increase
Balance Decrease reductions Balance
Short-term Wage 12,237,780.42 110,348,589.72 109,387,183.53 13,199,186.61
Post-employment
Benefit - Defined
Contribution Plans - 6,936,500.47 6,936,500.47 -
Payable
Dismiss Welfare 155,035.87 121,870.30 172,381.34 104,524.83
Total 12,392,816.29 117,406,960.49 116,496,065.34 13,303,711.44
2) List of Short-term Wage
Opening Current Current Other Closing
Item
Balance Increase Decrease reductions Balance
Salary, Reward,
2,624,422.78 99,490,263.03 99,226,008.85 2,888,676.96 Allowance and Subsidy
Employee Services and
4,373,409.14 4,373,409.14
Benefits - Social Insurance Charges 3,491,656.04 3,491,656.04
- -Including：Basic Medical
3,049,618.58 3,049,618.58
Insurance - - Employment Injury
195,705.66 195,705.66
Insurance - - Maternity Insurance 2 3 2 ,5 1 8 . 5 2 2 3 2 ,518.52
Opening Current Current Other Closing
Item
Balance Increase Decrease reductions Balance
- - Other 13,813.28 13,813.28
- - Housing Fund 26,300.40 1,003,496.10 1,029,796.50
- Union Funds and Staff
9,587,057.24 1,989,765.41 1,266,313.00 10,310,509.65 Training Expense
Total 12,237,780.42 110,348,589.72 109,387,183.53 13,199,186.61 3) List of Defined Contribution Plans
Item Opening Balance Current Increase Current Decrease Closing Balance Basic Endowment Insurance 6,720,336.16 6,720,336.16
- - Unemployment Insurance 216,164.31 216,164.31
- - Total 6,936,500.47 6,936,500.47
- - Note 22 axes Payable
Item Closing Balance Opening Balance
VAT
696,501.06 601,975.02 Business tax
1,037,501.70 1,037,501.70 Urban maintenance and
193,848.31 222,121.34 construction tax
corporate income tax
166,941.28 51,998,909.07 property tax
620,853.31 586,772.39 land holding tax
5,349.84 65,717.04 Land value - added tax
40,291,508.75 29,383,815.46 Personal Income Tax
139,316.63 380,075.07 Education surcharge
53,627.67 60,702.24 other
249,901.81 67,300.94 Total 43,455,350.36 84,404,890.27 Note: the balance of land value added tax is mainly the land value added tax of the subsidiary of the subsidiary of hubei real estate merrill lynch.
Note 23Interest Payable
Item Closing Balance Opening Balance
Enterprise loan interest 74,044,695.35 75,668,828.87 Entrust loan interest 10,449,888.49 10,449,888.49 Other interest 176,133.00 176,133.00 Total 84,670,716.84 86,294,850.36
Note 24 Dividends Payable
Reasons why not to be Item Closing Balance Opening Balance
paid over one year
Dividends payable for the legal person 3,213,302.88 3,213,302.88 Suspend payment
Total 3,213,302.88 3,213,302.88
Note 25 Other Payables
1) Other payables presented as per the nature of accounts
Nature of Account Closing Balance Opening Balance
Borrowing 491,987,919.32 353,508,342.24 Payment for land transfer 43,000,000.00 -
Collection for property management 22,404,362.60 46,986,947.42 Money owned by the suppliers 43,499,279.07 47,024,723.13 Accrued Expenses 7,218,926.06 7,394,338.41 Deposit for Quality of Decoration 10,317,063.21 7,773,945.21 Maintenance Fund 5,084,849.49 9,566,749.16 Funds Raised for Houses 2,270,000.00 150,000.00 Risk Funds of Employees 1,233,332.51 1,057,677.88 Working Fund of Water and Electricity 7,204,250.70 6,781,072.84 Deferred compensation 1,140,466.00 Others 14,973,396.63 17,439,544.01 Total 606,193,379.59 541,823,806.30 2) Significant other payables with aging of more than one year
Reasons of Outstanding
Name Closing Balance
Accounts
Beijing Xinxing Real Estate Development Loan is not due
84,778,095.18
Corporation
Xinhe (zhengzhou) real estate co. LTD 18,740,795.93
Electricity and collection
Shanghai frost Xiong Investment Loan is not due
Management Center (limited 17,998,000.00
partnership)
Sanya wanjia hotel management co. LTD 11,404,670.60
No settlement
Mudanjiang construction engineering Financial tension
7,000,000.00
group co. LTD
Dahailin forestry bureau 6,842,000.00
Financial tension
Haikou drainage collection 4,646,827.79
Handling of sewage charges
Total 151,410,389.50
Note 26 Non-current liabilities matured within one year
Item Closing Balance Opening Balance
Long-term Borrowing Matured Within
78,710,181.59 One Year
Including：Pledged Loan
Item Closing Balance Opening Balance
Mortgage Loan 15,000,000.00 Guaranteed Loan 63,710,181.59 Total 78,710,181.59 Note 27 Long-term Borrowing
1) Classification of long-term borrowing
Category Closing Balance Opening Balance
Pledged Loan 5,000,000.00 5,000,000.00 Mortgage Loan 24,000,000.00 -
Guaranteed Loan 123,376,848.25 -
Sub-total 5,000,000.00 152,376,848.25Less：Long-term Borrowing Matured
78,710,181.59 Within One Year -
Total 5,000,000.00 73,666,666.66 2) Long-term borrowings with large amount
Starting Ending
Closing Opening
Lender Date of Date of Currency Interest Rate
Balance Balance
Borrowing Borrowing
The benchmark
Harbin Branch of China CITIC
2014-10-30 2019-3-30 RMB interest rate has a 24,000,000.00 Bank
float by10%
Mudanjian Taiping Road The benchmark
Branch of Industrial& 2014-3-28 2020-3-20 RMB interest rate has a
81,456,595.19 Commercial Bank of China float by10%
The benchmark
Mudanjiang Branch of China
2012-1-12 2019-1-11 RMB interest rate has a 41,920,253.06 Construction Bank
float by10%
The benchmark
Wuhan Branch of Shanghai
2015-6-24 2018-6-23 RMB interest rate has a 5,000,000.00 5,000,000.00 Pudong Development Bank
float by20%
Total 5,000,000.00 1 52,376,848.25 3) PledgedLoan：
Lender Balance of Loan Pledge
Shanghai Pudong Development The 5 million deposit are subsidiary of Hubei Pearl River 5,000,000.00
Bank Co., Ltd. Wuhan Branch Real Estate Development Co., Ltd
Total 5,000,000.00
e Company, the collateral is cash deposit of RMB 5 million of the Hubei Real Estate Company.
4) Other descriptions on long-term borrowing
The long-term borrowing rate was5.39% to5.9%. As of the financial reporting date, the loans of the Harbin branch of citic bank, the bank of China industrial and commercial bank of China and the bank of mudanjiang branch of construction bank have been paid off.
Note 28 Capital stock
CurrentIncrease（+）orDecrease（－）
Issuance Bonus
Opening Closing
Item
Capitalization
Balance Balance
of New Share of Public Other Sub-total
Reserve Fund
Shares s
1．Shares with conditions
limited to sell
(1) Shares held by the state
(2) Shares held by the
state-owned artificial
persons
(3) Shares held by other
1,325,131.00 - - - -25,631.00 - 25,631.00 1,299,500.00 domestic enterprises
Including：
Shares held by the domestic
1,299,500.00 1,299,500.00 legal persons
Shares held by the domestic
25,631.00 -25,631.00 - 25,631.00
natural persons
(4). Shares held by the
foreign companies
Including：
Shares held by the foreign
legal persons
Shares held by the foreign
natural persons
Total shares with conditions
1,325,131.00 - - - -25,631.00 - 25,631.00 1,299,500.00 limited to sell
2． Outstanding shares
without conditions limited
to sell
(1) Common Share in RMB 360,445,273.00 25,631.00 25,631.00 3 60,470,904.00 (2) Foreign Shares Listed at
64,975,000.00 64,975,000.00 Home
(3) Foreign Shares Listed at
Oversea
(4) Others
Total shares without
425,420,273.00 - -- - 25,631.00 25,631.00 4 25,445,904.00 conditions limited to sell
Total 426,745,404.00 - - - - - 426,745,404.00 Note 29 Capital reserve
Current Current
Item Opening Balance Closing Balance Increase Decrease
Capital premium 225,390,819.63 225,390,819.63 The original system of capital
109,300,017.82 109,300,017.82 reserves transferred
Others capital reserve 208,924,601.49 208,924,601.49
Current Current
Item Opening Balance Closing Balance Increase Decrease
Total 543,615,438.94 543,615,438.94 Note 30 Surplus Reserve
Item Opening Balance Current Increase Current Decrease Closing Balance
Statutory surplus
71,852,236.46 71,852,236.46 reserve
General surplus
37,634,827.93 37,634,827.93 reserve
Total 109,487,064.39 109,487,064.39 Note 31 Undistributed profits
Ratio of Withdrawal or
Item Amount
Undistributed Amount(%) Undistributed Profits at the End of Previous Period
—
Before Adjustment -1,014,759,604.45
Total Amount of Undistributed Profits at the
—
Beginning of Adjustment Period(+/-)
Undistributed Profits at the Beginning of Period
—
After Adjustment -1,014,759,604.45
Plus: Current Net Profits Attributive to the Owners
—
of the Parent Company 17,226,146.52
Less: Appropriation of Statutory Surplus Reserve
Withdrawn
Appropriation of Discretionary Surplus Reserve
Plus：Surplus Reserve Made up for Losses
Other Internal Carry-over ofOwner’s Equity
Closing Undistributed Profit
-997,533,457.93
Note 32Operating income and operating cost
1) Operating income and operating cost
Item Current Amount Previous Amount
Income Cost Income Cost
Main Business 380,199,673.96 283,157,510.17 139,890,677.66 119,343,421.77 Other Business 13,637,111.61 5,444,513.85 9,141,850.74 2,686,504.22 Total 393,836,785.57 288,602,024.02 149,032,528.40 122,029,925.99 2) MainBusiness（Accounted as perIndustries）
Current Amount Previous Amount
Industry
Operating Income Operating Cost Operating Income Operating Cost
Real Estate
Development 225,675,181.93 137,605,017.83 - - Property
Management 147,212,684.42 142,317,526.88 118,897,725.42 108,945,720.20
Current Amount Previous Amount
Industry
Operating Income Operating Cost Operating Income Operating Cost
Tourist Hotel
7,311,807.61 3,234,965.46 20,992,952.24 10,397,701.57 Total
380,199,673.96 283,157,510.17 139,890,677.66 119,343,421.77 3) MainBusiness（Accounted as perRegions）
Current Amount Previous Amount
Region
Operating Income Operating Cost Operating Income Operating Cost
Hainan
145,542,234.96 141,134,119.14 129,263,957.43 114,904,019.82 Heilongjiang
6,949,447.43 2,995,608.34 8,258,678.00 3,126,864.51 Hubei
226,037,542.11 137,844,374.95 570,446.04 385,963.46 Shanghai
1,670,449.46 1,183,407.74 1,797,596.19 926,573.98 Total
380,199,673.96 283,157,510.17 139,890,677.66 119,343,421.77 Note 33 Business tax and surcharges
Item Current Amount Previous Amount
Business Tax - 5,376,975.72 Urban
Maintenance &
Construction Tax
1,286,031.12 442,857.90 Education
Surcharges
869,796.78 253,712.29 Increment Tax on
Land Value
14,045,896.99 4,205,515.05 Other Taxes 323,020.34 126,862.61 Total 16,524,745.23 10,405,923.57 In accordance with CK (2016) No. 22 Document published by the Ministry of Finance in Dec. 2016, the "Business Taxes and Surcharges" item name is adjusted as "Taxes and Surcharges" item after fully trying out the change from business tax to value-added tax, the item accountings the relevant taxes and fees of enterprise activities, such as consumption tax, urban maintenance and construction tax, resource tax, extra charges of education funds and property tax, land use tax, vehicle and vessel tax, stamp tax, in accordance with Article 12 of ASBE, it conducts the adjustment on relevant items of 2016 annual income statement according to new requirements specified. This company's other taxes and fees mainly include stamp tax, property tax, land use tax and vehicle and vessel tax, etc.
Note 34 Selling expenses
Item Current Amount Previous Amount
Employees’ Wages
651,115.08 405,220.67 Advertisement 562,182.00 1,392,667.57 Repair 49,000.00 140,530.00 Selling Service 4,910,000.00 6,690,000.00 Others 425,910.28 242,582.78 Total 6,598,207.36 8,871,001.02 Note 35 Administrative expenses
Item Current Amount Previous Amount
Employees’ Wages
19,764,096.35 13,206,958.52 Depreciation
7,073,122.82 14,189,830.37 Business Entertainment
1,410,828.86 2,728,763.69 Business Travel
1,165,859.09 1,526,947.44 Tax
1,793,692.10 Amortization of Intangible Assets
1,051,776.89 2,602,040.00 Repair
440,517.23 328,378.88 Insurance
706,117.18 817,666.46 Consultation fee, service charge, audit fee
11,222,874.99 2,343,637.99 Traffic
536,146.30 2,153,757.83 Office
211,066.64 413,401.22 Property management, utilities, heating fee
1,523,212.00 1,820,962.03 Lease
2,843,565.44
Other
1,092,468.10 1,300,105.17 Total
49,041,651.89 45,226,141.70 Note 36Financial expenses
Category Current Amount Previous Amount
Interest Expense
7,671,493.40 45,230,435.59 Less: Interest Income
1,330,070.14 3,616,128.15 Financial Consultant 773,584.91
Financing Expenses 6,800,478.63 -
Others 263,074.63 377,028.65
Category Current Amount Previous Amount
Total 7,378,082.80 48,791,814.72 Note 37 Loss on assets impairment
Item Current Amount Previous Amount
Loss on Bad Debts -4,139,548.16 7,219,276.66 Loss of Impairment of Construction in Progress
- 776,000.00 Loss on available - for - sale financial assets -6,000,000.00 -
Total -4,139,548.16 1,995,276.66 Note 38 Investment income
1) Details of investment income
Item Current Amount Previous Amount
Long - term equity investment income from equity
-1,095,372.42 -234,924.26 method
Disposal of long-term equity investment generated
38,155,550.74 investment income -
other
- 8,271.82 Total -1,095,372.42 37,928,898.30 Note 39 Non-operating income
Amount Recorded in Item Current Amount Previous Amount Current Extraordinary Gain and Loss
Total Gain on the Disposal of
Non-current Assets 168,799.75 2,555,707.19 168,799.75 Including: Gain on the Disposal of
Fixed Assets 168,799.75 2,462,319.87 168,799.75 Gain on the Disposal of Intangible
Assets - 93,387.32 - Others
454,491.09 95,785.15 454,491.09 Total
623,290.84 2,651,492.34 623,290.84 Note 40 Non-operating cost
Amount Recorded in Item Current Amount Previous Amount Current Extraordinary Gain and Loss
Loss on disposal of non - current
assets 19,264.12 131,916.10 19,264.12 Among them: loss of fixed assets
disposal 19,264.12 131,916.10 19,264.12
Amount Recorded in Item Current Amount Previous Amount Current Extraordinary Gain and Loss
Asset scrapped, loss of damage
- 2,456,199.23 - Compensation, liquidated damages
Donations 852,793.17 569,746.62 852,793.17 othes
745,370.78 120,516.82 745,370.78 Total
1,617,428.07 3,278,378.77 1,617,428.07 Note 41 Income tax expenses
1) List of income tax expenses
Item Current Amount Previous Amount
Current Income Tax Expenses
2,216,183.83 199,363.38
Deferred Income Tax Expenses
4,985,486.50 -15,665.42
Total 7,201,670.33 183,697.96
2) Accounting profits and adjustment process of the income tax expenses
Item Current Amount
Total Profits
27,742,112.78 Income Tax Expenses Calculated at the Statutory/Applicable Tax Rate
6,935,528.20 Influence of Adjustment of Previous Income Tax
Influence of the Non-deducible Cost, Expense and Loss
2,419,787.22 Influence of the Deducible Loss of the Previous Deferred Income Tax Assets
Not Recognized
Current Influence of the Deducible Temporary Difference or the Deducible
Loss of the Current Deferred Income Tax Assets Not Recognized
-7,329,732.09 Recognition of Deferred Tax Assets of Previous Deducible Loss
Other 5,176,087.00 Income Tax Expenses 7,201,670.33 Note 42 Notes to cash flow statement
1) Other cash received relating to operating activities
Item Current Amount Previous Amount
Received payment from Beijing runshun
technology development co., LTD 15,000,000.00
Received from Beijing yuanrongtong asset
management co., LTD 12,300,000.00 I received the payment from li peng
11,500,000.00 Received from Beijing emerging real estate
development corporation 7,160,000.00
I received the money from the yayxuyi stack
Item Current Amount Previous Amount
scenic spot in the changting town of hailin 1,237,761.89 Received cheng shuxian exchange
300,000.00 Received from Chen jilin
100,000.00 Other exchanges
441,203.98 3,400,000.00 To collect and renovate the rent, maintenance
fund and customer's fees and tax 3,035,457.52 3,500,000.00 Collect water and electricity, garbage disposal,
heating gas, TV viewing fee, etc 1,472,647.25 5,502,810.13 Other
955,049.71 2,239,331.59 Total
28,064,358.46 40,079,903.61 2) Other cash paid relating to operating activities
Item Current Amount Previous Amount
To return the land transfer intention gold of
wuhan middle China century real estate
development co., LTD 43,000,000.00
Pay Beijing yuanrongtong asset management
co., LTD 11,948,840.00 Beijing emerging real estate development
corporation 6,800,000.00
Other related parties
962,345.10
Payment of huiyu payment in shandong
3,000,000.00 Pay Ms. Cheng shuxian
300,000.00 Pay for water and electricity renovation and
rent deposit, maintenance fund and customer
handling fees and tax payment 7,216,742.86
Payment of deferred housing penalty and area
difference 2,149,096.00
We will pay for water and electricity, garbage
disposal, heating gas and TV viewing fee 348,816.16
Overhead expenses
20,346,084.13 4,533,549.75 Other daily expenses and spare cash
2,665,652.99 2,739,887.76 other
727,221.85 625,730.16 Total
84,215,959.09 23,148,007.67 3) Other cash received relating to investment activities
Item Current Amount Previous Amount
Received funds for occupation 49,136.10
Total 49,136.10
4) Payment of other cash related to financing activities
||
|-|
|Current Amount|

5、Payment of other cash related to financing activities
||
|-|
|Current Amount|
|1,720,000.00|
|1,720,000.00|

 Note 43 Supplementary information of cash flow statement
1) Supplementary information of cash flow statement
Item Current Amount Previous Amount
1. Cash Flow to Adjust the Net Profit into the Operating
Activities
Net Profit
20,540,442.45 -51,169,241.35 Plus: Provision for Asset Impairment
-4,139,548.16 1,995,276.66 Depreciation of Fixed Assets, Consumption of Oil and Gas
Assets and Depreciation of Productive Biological Assets 8,034,003.28 15,164,316.52 Amortization of Intangible Assets
81,364.80 559,669.98 Amortization of Long-term Deferred Expenses
970,412.09 2,142,700.22 Loss on the Disposal of Fixed Assets, Intangible Assets and
Other Long-term Assets (Income is Marked as “-”) -5,636,646.05 -3,224,684.28 Loss on the Discarding of Fixed Assets (Income is
Marked as “-”) 1,108.20 2,500,181.85 Loss on the Variation of Fair Value (Income is Marked as
“-”) - - Financial Expenses (Income is Marked as “-”)
6,150,568.35 48,936,433.19 Investment Loss (Income is Marked as “-”)
1,095,372.42 -37,928,898.30 Decrease in Deferred Income Tax Assets (Increase is
Marked as “-”) 4,985,486.50 - Increase in Deferred Income Tax Liabilities (Decrease is
Marked as “-”) - -15,665.42 Decrease in Inventory (Increase is Marked as “-”)
139,851,435.16 -102,163,618.46
Decrease in Operating Items Receivable (Increase is
Marked as “-”) 7,014,675.01 -114,889,161.41
Increase in Operating Items Payable (Decrease is Marked
as “-”) -248,678,884.07 399,438,256.34
Item Current Amount Previous Amount
Other
- - Net Cash Flow from Operating Activities
-69,730,210.02 161,345,565.54 2. Significant Investment and Financing Activities without
Cash Receipts and Payments
Conversion of Debt Into Capital
Convertible Bonds Maturing Within One Year
Fixed Assets Acquired Under Financial Lease
3. Change in Cash and Cash Equivalent
Closing Balance of the Cash
167,840,121.26 143,110,210.79 Less: Opening Balance of the Cash
246,504,351.39 205,762,131.54 Plus: Closing Balance of the Cash Equivalent
- - Less: Opening Balance of the Cash Equivalent
- - Net Increase of Cash and Cash Equivalent
-78,664,230.13 -62,651,920.75 2) Composition of cash and cash equivalent
Item Closing Balance Opening Balance
1. Cash
162,840,121.26 241,504,351.39 1.1 Cash in Stock
786,233.90 1,305,777.52 Bank Deposit Available for Immediate Payment
162,045,485.08 240,190,186.44 Other Currency Available for Immediate Payment
8,402.28 8,387.43 2. Cash Equivalent
Including: Bond Investment Maturing Within Three
Months
3. Balance of Closing Cash and Cash Equivalent
162,840,121.26 241,504,351.39 Including: Restricted Cash and Cash Equivalent Used by
the Subsidiaries of the Parent Company or the Group
Note 44Assets with restriction on ownership or use right
Item Balance Reason of Restriction
Currency Funds 5,000,000.00
Borrowing on Mortgage
Inventories 4,824,035.45
Borrowing on Mortgage
Investment-based Borrowing on Mortgage
6,232,449.23
Real Estate
Fixed Assets 3,076,944.63
Borrowing on Mortgage
Total 19,133,429.31
VII. Merge scope change
The merger scope has not changed during this reporting period
VIII. Equities in other entities
1) Equities in the subsidiary
(1) Composition of the Company
Equity interest
Place of Place of Nature of held(%) Accounting Company name
operation registration business Indirec method
Direct
t
Hainan Pearl River
Property
Property Hotel Hainan,
set-up Hainan Haikou managemen 98.00
Management Co., Ltd
Zhengzhou
t
Hainan Pearl River
Property
Greening Engineering 100.0 set-up Hainan Haikou Hainan Haikou managemen
Co., Ltd 0
t
Hainan Pearl River
Property
Property Cleaning Co., 100.0 set-up Hainan Haikou Hainan Haikou managemen
Ltd 0
t
Hainan Pearl River
Property
Property Electrical and
set-up Hainan Haikou Hainan Haikou managemen 100.00
Mechanical Engineering
Company t
Hubei Pearl River Real
set-up Estate Development Co., Wuhan, Hubei Wuhan, Hubei estate 89.20
Ltd
Wuhan Zhujiang Meilin
set-up Hotel Management Co., Wuhan, Hubei Wuhan, Hubei Hotel 100.00
Ltd
Hainan Pearl River
Industrial Co., Ltd. set-up Shanghai Shanghai estate 100.00
Shanghai real estate
company
Beijing Jiubo Culture
Beijing Beijing culture 100.00 set-up
Development Co., Ltd
Mudanjiang City Zhujiang
Wanjia Tourism
Mudanjiang Mudanjiang Hotel, travel 100.00 set-up
Investment Development
Group Co., Ltd
Hailin Wanjia Xuexiang
Mudanjiang Mudanjiang Hotel 100.00 set-up
Resort Hotel
Mudanjiang Jingpo Lake
Zhujiang Wanjia Hotel Mudanjiang Mudanjiang Hotel 100.00 set-up
Co., Ltd
Business
Mudanjiang Wanjia Star
combination Mudanjiang Mudanjiang Hotel 100.00
Hotel Co., Ltd
s involving enterprises
Equity interest
Place of Place of Nature of held(%) Accounting Company name
operation registration business Indirec method
Direct
t
not under
common
control
Harbin Wanjia Travel
Harbin Harbin tourism 100.00 set-up
Service Co., Ltd
Hebei Zhengshi Qinghui
Real Estate Development Shijiazhuang Shijiazhuang estate 51.00 set-up
Co., Ltd
Property
Shanghai Pearl Property
Shanghai Shanghai managemen 50.00 set-up
Management Co., Ltd
t
(2)ant non-wholly-owned subsidiaries
Current P/L Current Closing
Proportion
attributable to dividend balance of
Company name of Note minority payements to minority
minority(%)
shareholders minority interest
Hainan Pearl River Properties and
Hotels 2
-29,941.85 118,777.80
Management Co., Ltd.
Hubei Pearl River Real Estate
10.8
Development Co., Ltd. 4,468,420.17 9,180,000.00 14,343,892.07
Hebei Zhengshi Qinghui Real
49
Estate Development Co., Ltd. -1,132,972.17 -24,751,387.76
Shanghai Sea Pearl Property
50
Management Co., Ltd. 8,789.78 326,061.06
Total -----
3,314,295.93 9,180,000.00 -9,962,656.83
(3)Main Financial Information of the Significant Non-wholly-owned Subsidiaries Closing balance
Company
name
Non-current Current Non-current Total Current assets Total assets
assets liabilities liabilities liabilities Hainan Pearl
River
Properties
102,078,910.95 3,009,653.45 105,088,564.40 99,149,674.50 99,149,674.50 and Hotels
Managemen
t Co., Ltd.
Hubei Pearl
River Real
Estate 422,470,230.16 10,487,341.26 432,957,571.42 295,147,842.52 5,000,000.00 300,147,842.52 Developmen
t Co., Ltd.
Hebei
Zhengshi
Qinghui Real
4,376.10 103,106.04 107,482.14 50,620,518.39 50,620,518.39 Estate
Developmen
t Co., Ltd.
Shanghai 2,804,641.19 10,454.52 2,815,095.71 2,162,973.60 2,162,973.60
Closing balance
Company
name
Non-current Current Non-current Total Current assets Total assets
assets liabilities liabilities liabilities Sea Pearl
Property
Managem
ent Co.,
Ltd.
Continued：
Opening balance
Company
name
Non-current Current Non-current Total
Current assets Total assets
assets liabilities liabilities liabilities Hainan Pearl
River
Properties
100,602,853.49 3,206,886.08 103,809,739.57 96,373,756.84 96,373,756.84 and Hotels
Managemen
t Co., Ltd.
Hubei Pearl
River Real
Estate 936,796,523.40 15,943,287.84 952,739,811.24 771,305,685.50 5,000,000.00 776,305,685.50 Developmen
t Co., Ltd.
Hebei
Zhengshi
Qinghui Real
5,439.60 107,189.63 112,629.23 48,313,477.37 48,313,477.37 Estate
Developmen
t Co., Ltd.
Shanghai Sea
Pearl
Property 2,956,358.12 13,012.80 2,969,370.92 2,334,828.37 2,334,828.37 Managemen
t Co., Ltd.
Continued：
Closing balance
Company name Total
Net cash flows from Operating income Net profit comprehensive
investing activities
income
Hainan Pearl River Properties and
Hotels
145,542,234.96 -1,497,092.83 -1,497,092.83 552,082.24 Management Co., Ltd.
Hubei Pearl River Real Estate
Development Co., Ltd. 226,838,984.15 41,375,603.16 41,375,603.16 -39,220,031.55 Hebei Zhengshi Qinghui Real Estate
Development Co., Ltd. -2,312,188.11 -2,312,188.11 -1,063.50 Shanghai Sea Pearl Property
Management Co., Ltd. 1,670,449.46 17,579.56 17,579.56 -151,716.93Continued：
Opening balance
Company name
Total Net cash flows
Operating
Net profit comprehensive from investing
income
income activities
Opening balance
Company name
Total Net cash flows
Operating
Net profit comprehensive from investing
income
income activities
Hainan Pearl River Properties and
Hotels
Management Co., Ltd. 117,100,129.23 -304,098.01 -304,098.01 -16,640,735.33 Hubei Pearl River Real Estate
Development Co., Ltd. 957,519.04 -12,948,342.22 -12,948,342.22 118,558,721.37 Hebei Zhengshi Qinghui Real Estate
Development Co., Ltd. -2,590,547.57 -2,590,547.57 -70,898.18 Shanghai Sea Pearl Property
Management Co., Ltd. 1,797,596.19 471,514.49 471,514.49 661,708.32 2) Transactions that the shares of theowners’ equities in the subsidiary changed but still control such subsidiary
(1) Description on the change of shares ofowners’ equities in the subsidiary
There is no the change of shares of theowners’ equities in the Company at the end of report period.
(2) Influence of such transaction on the minorityshareholders’ equities andowners’ equities attributive to the parent company
There is no transaction with influence on the minorityshareholders’ equities andowners’ equities attributive to the parent company at the end of report period.
3) Equities in the cooperative enterprises or associated enterprises
(1) Significant cooperative enterprises or associated enterprises
Equity interest
Place of
Nature
Plac of held(%)
re
Accounti Name e of bu
gistrati
ng method
operation siness
Dir Dir
on
ect ect
Real
Sanya Wanjia Industrial
equity
estate
Sanya Sanya 40
Co. Ltd develop method
ment
(2) Main financial information of significant cooperative enterprises
Closing balance Opening balance
Item
Sanya Wanjia Industrial Sanya Wanjia Industrial
Co. Ltd Co. Ltd
Current asset 4,354,532.36 4,215,581.28 Non-current asset 76,699,398.26 78,410,198.72 Total asset 81,053,930.62 82,625,780.00
Closing balance Opening balance
Item
Sanya Wanjia Industrial Sanya Wanjia Industrial
Co. Ltd Co. Ltd
Current liability 2,391,664.36 1,641,278.62 Non-current liability
Total liability 2,391,664.36 1,641,278.62 Minority interests
Equity attributable to parent company 78,662,266.26 80,984,501.38 Net assets share calculated according to proportion
31,464,906.50 32,393,800.55 of shareholding
Net book value of the equity investment in
31,464,906.50 32,393,800.55 associates
Continued：
Year 2017 Year 2016
Item
Sanya Wanjia Industrial Sanya Wanjia Industrial
Co. Ltd Co. Ltd
Operating income 19,796.10 17766.67 Net profit -2,322,235.12 -398,138.81 Other comprehensive income
Total comprehensive income -2,322,235.12 -398,138.81 (3) Summary of financial information of insignificant cooperative enterprises or associated enterprises
Item 31 December 2014/ Year 2014 31 December 2013/ Year 2013 Net book value of the equity investment
1,306,366.06 1,472,844.43 in associates
calculated according to proportion of
— shareholding:
Net profit -166,478.37 -75,668.74 Other comprehensive income
Total comprehensive income -166,478.37 -75,668.74 (4) Unrecognized commitment relating to cooperative enterprises or associated enterprises
There is no commitment needing to be disclosed in the Company.
(5) Contingent liabilities relating to cooperative enterprises or associated enterprises
There is no contingency needing to be disclosed in the Company.
IX. Disclosure of risks related to the financial instruments
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (primarily interest rate risk),. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance.
1) Credit risk
TheCompany’s credit risk mainly arises from the monetary funds, accounts receivable,
available-for-sale financial assets, etc. The management has formulated the appropriate credit policy and will continuously monitor the exposure of those credit risks.
TheCompany’s monetary funds are mainly deposited in the financial institutions such as commercial bank, etc., theCompany’s management believe that those commercial banks have bigger credit and conditions of assets with lower risk of credit. The Company adopts the policy of quota for avoiding the credit risk of any financial institution.
The Company expects that there is no significant credit risk associated with cash at bank since they are deposited at state-owned banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from non-performance by these counterparties.
In regard with the accounts receivable and other receivables, the Company has policies to control the credit exposure on those accounts receivable and other receivables. The Company assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from the third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Company. In respect of customers with a poor credit history, the Company will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Company is limited to a controllable extent.
The biggest credit exposure faced by the Company is the book value of each asset in the balance sheet. Except for theCompany’s guarantee stated in Notes, the Company does not provide any guarantee possible to make the Company face the credit risk.
2) Liquidity risk
Liquidity risk refers to the risk that the Company fails to obtain the sufficient capital to meet operational needs or pay for the due debts and other obligations.
TheCompany’s finance department monitors rolling forecasts of the Company's short-term and long-term liquidity requirements to ensure it has sufficient cash and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institution so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
As at 30June 2017, the financial assets and liabilities of the Company are analyzed by their maturity date below at their undiscounted contractual cash flows :
30 Juner 2017
Item Net book Carrying Over
Within 1year 1 to 2 years 2 to 5 years
value amount 5years
Currency Funds 167,840,121.26 167,840,121.26 167,840,121.26
Accounts
receivable 20,229,593.44 33,138,454.97 33,138,454.97
Other receivables 300,245,043.39 450,438,233.91 450,438,233.91
30 Juner 2017
Item Net book Carrying Over
Within 1year 1 to 2 years 2 to 5 years
value amount 5years
Available-for-sale
financial assets 30,824,994.90 49,263,555.29 49,263,555.29
Subtotal 519,139,752.99 700,680,365.43 700,680,365.43
Accounts payable 66,826,515.71 66,826,515.71 66,826,515.71
Other payables 606,193,379.59 606,193,379.59 606,193,379.59
Long-term
borrowings 5,000,000.00 5,000,000.00 5,000,000.00
Subtotal 678,019,895.30 678,019,895.30 678,019,895.30
Continued：
31 December 2016
Over Item Carrying
Net book value Within 1year 1 to 2 years 2 to 5 years 5
amount
years Currency
Funds
246,504,351.39 246,504,351.39 246,504,351.39
Accounts
receivable
16,084,139.32 28,360,112.29 28,360,112.29
Other
receivables
350,870,047.05 505,835,674.29 505,835,674.29
Available-fo
r-sale
financial
assets
30,824,994.90 49,263,555.29 49,263,555.29
Subtotal
644,283,532.66 829,963,693.26 829,963,693.26
Accounts
payable
77,627,005.61 77,627,005.61 77,627,005.61
Other
payables
541,823,806.30 541,823,806.30 541,823,806.30
Long-term
borrowings
152,376,848.25 152,376,848.25 78,710,181.59 37,666,666.64 36,000,000.02
Subtotal
771,827,660.16 771,827,660.16 698,160,993.50 37,666,666.64 36,000,000.02
3) Market risk
(1) Risk from exchange rate
None.
(2) Interest rate risk
The Company's interest rate risk arises from the borrowings from bank. Financial liabilities issued at floating rates expose the Company to cash flow interest rate risk. The Company determines the
relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions.
For the year ended 30 June2017, the amount of interest rates contract on the floating rate for long-term borrowings amounted to RMB184,000,000.00, the amount of interest rates contract on the fixed rate for long-term borrowings amounted to RMB245,590,202.29.
X. Fair Value
1) Financial instruments measured at fair value
There is no financial instrument measured at fair value in the Company
2) Financial instruments measured at fair value at the end of report period
There is no financial instrument measured at fair value at the end of report period
3) Basis of determination of market price for the items measured at fair value
There is no financial instrument measured at fair value in the Company.
4) Information of fair value of financial assets and liabilities not measured at fair value
The financial assets and liabilities not measured at fair value include: the accounts receivable, short-term borrowing, accounts payable, non-current liabilities and long-term borrowings matured within one year, investment in equities that are not quoted in active market and whose fair value cannot be measured reliably.
TheCompany’s management gives a view that the difference between the book value of above-mentioned financial assets and liabilities not measured at fair value and the fair value is very small.
XI. Related party relationship and transactions
1) Information of parent company of the Company
Real estate Holding Voting
Registered Registered
Name development and proportio rights
address capital
operation n proportion Investment
Beijing Grain Group Co., Ltd Beijing 90,000.00 28.95 28.95
management
The company's ultimate control is Beijing grain group co., LTD.
2) The information of theCompany’s subsidiaries is set forth in Note 8-1 “Equities in the Subsidiaries”.
3) The information of theCompany’s cooperative enterprises and associated enterprises is set forth in Note 8-3 “Equities in the cooperative enterprises and associated enterprises”
4) Information of Other Related Parties
Relationship between other related party and the Name of Other Related Party
Company
Beijing Zhongjia Yangguang energy technology (Company)
With same controller
Co., Ltd.
Beijing Xinxing Real Estate Development Corporation
The parent company of the original controlling shareholder
Relationship between other related party and the Name of Other Related Party
Company
Beijing Wanfa Real Estate Development Co., Ltd
The original controlling shareholder
Mudanjiang City Development and Construction Co., Ltd With same controller
Sanya Wanjia Industrial Co., Ltd Associates
Sanya Wanjia Hotel Management Co., Ltd
With same controller
5) Transactions with related parties
(1) In regard with any subsidiary that has the control relationship with the Company and has been included in theCompany’s consolidated financial statements, its intercourse transaction and the transaction with the parent company has been offset.
(2) Relation of sales of goods and rendering of service
Nature of related
Related party Year 2017 Year 2016
transaction
Sanya Wanjia Hotel Management Hotel services
2,754,012.00
Co., Ltd
Provide asset
Beijing Xinxing Real Estate
management 1,200,000.00
Development Corporation
services
Total 3,954,012.00
(3) Related party assets transfer, debt restructuring
Nature of related
Related party Year 2017 Year 2016
transaction
Beijing wanfa real estate Equity transfer
development co. LTD 277,332,301.49 Beijing wanfa real estate Transfer of fixed
development co. LTD 35,000,000.00 assets
Total
312,332,301.49 (4) Information of related guarantee
When the Company is the guarantor:
Maturity date
Beginning date
Guarantee of
Guarantor Amount of guarantee
obligation guarantee
contract expired
contract
Beijing Zhongjia Sunny Energy Technology
9,400,000.00 2013/9/12 2016/9/12 No
(Company) Co., Ltd.
Total 9,400,000.00
(5) Fund calling between related parties
As at 30 June 2017, the total amount of loan principal that Beijing Xinxing Real Estate Development corporation has been made to the Pearl River Holding has a balance of RMB54,680,395.18with interest payable of RMB33,801,954.73.
As at 30 June 2017,the total amount of loan principal that the controlling shareholder Beijing Wanfa Real Estate Development Corporation has been made to the Pearl River Holding has a balance of RMB 0.00 with interest payable of RMB38,227,058.49.
As of June 30, 2017, the principal balance of the company's borrowings to Beijing grain group co., ltd. is RMB179,000,000.00, with the interest balance of RMB4,182,283.33
(6) Remuneration of key management personnel (10 thousand yuan)
Item Current Amount Previous Amount
Key management personnel salary 61.43 59.62 (7) Accounts payable for related parties
（1）Accounts payable for related parties by the Company
Items Company Name 31 December 2017 31 December 2014 Other Beijing Xinxing Real Estate Development
payables General Company 54,680,395.18 84,778,095.18 Other Beijing Zhongjia Yangguang Energy
payables Technology ( Group) Co., Ltd. 3,586,021.00 3,586,021.00 Other Mudanjiang City Development &
payables Construction Co., Ltd 70,000.00 70,000.00 Other Sanya Wanjia Industrial Co., Ltd
payables 1,133,732.83 1,133,732.83 Other Sanya Wan Jia Hotel Management Co., Ltd
payables 9,635,737.42 10,187,745.63 Other Beijing Grain Group Co., Ltd
payables 183,182,283.33 150,746,266.66 Other Heilongjiang Longshi Culture Communication
payables Co., Ltd 2,225,224.84 Total
252,288,169.76 252,727,086.14 Other Beijing Wangfa Real Estate Development
receivables Holdings Co., Ltd 35,000,000.00 Total
35,000,000.00 Interest Beijing Xinxing Real Estate Development
payable General company 33,801,954.73 33,615,676.05 Interest Beijing Wangfa Real Estate Development Co.,
payable Ltd. 38,227,058.49 38,227,058.49 Total
72,029,013.22 71,842,734.54 Interest Heilongjiang Long as Culture Communication
receivable Co., Ltd 2,710,880.79 Total
- 2,710,880.79 XII. Commitments and Contingency
Not
2) Contingency incurred after the balance sheet
b)On Apr. 2, 2015, this company borrowed RMB 20,280,000 from the individual Zhanghua through Hainan Zhuye Investment Management Co., Ltd. and handled the collateral registration formalities. On Apr. 24, 2015, Hainan Zhuye Investment Management Co., Ltd. transferred the RMB 60,000 of debt in the borrowing of this company and Zhang Hua to Lin Xiaolian through signing Credit and Debt Transfer Agreement, and Hainan Zhuye Investment Management Co., Ltd. issued Letter of Guarantee at the same time and agreed to bear the joint and several guarantee responsibility. When the borrowing term has expired, because Hainan Zhuye Investment Management Co., Ltd. is suspected of being involved in illegally absorbing public deposit an has been registered by the public security organs for an investigation, then it temporarily fails to continuously perform the repayment obligations. Now Lin Xiaolianpersonnaly brings a borrowing contract dispute lawsuit to Hualong District People's Court of Longkou, Hainan. As of the date of audit report, the case's first-instance judgment has been dismissed, and will be tried again after the criminal case of Hainan Zhuye Investment Management Co., Ltd. is tried.
XIII. Events after the balance sheet
1) Information of profit distribution
According to the company's 18th board resolution, no profit distribution is made during this
period.
2)Information of other events after the balance sheet date
a）On November 3, 2014, Hainan Fangyuan Law Firm lodged a lawsuit on the dispute over the
property rights of thecompany’s Parking Space 57, 61, 62, 63, 64 (formerly Parking Space
101-105) of the Pearl Square Underground Parking Lot to the court, requiring to obtain the
ownership certificates of the parking spaces. As of the issuance date of the financial statement, the first trial of the case was handed down, requiring the company to transfer the ownerships of above five parking spaces to Hainan Fangyuan Law Firm, but the company refused to accept the verdict
and is now preparing materials to appeal to the Hainan Province Haikou City Intermediate
People's Court.
b) In September 2013, the company borrowed 27 million Yuan from Lv Gengying via Hainan
Zhuyei Investment Management Co., Ltd., and went through registration procedures of mortgaged property. On November 20, 2015, the company signed Agreement on the Transfer of Creditor's
Rights and Debts with Shi Xuyun, Pu Ding, Lv Gengying and Hainan Zhuyei Investment
Management Co., Ltd., to transfer 9.4 million Yuan of debts that it borrowed from Lv Gengying to Shi Xuyun (4.7 million Yuan) and Pu Ding (4.7 million Yuan). The term of the loan has expired, as Hainan Zhuyei Investment Management Co., Ltd. was suspected of illegal pooling of public
deposits and was investigated by the public security bureau and therefore temporarily could not
continue to fulfill its repayment obligation, Shi Xuyun and Pu Ding filed a lawsuit to the Hainan
Province Haikou City People's Court on the dispute over loan contract, and was dismissed in the
first trial. However, Shi Xuyun and Pu Ding refused to accept the verdict and lodged a lawsuit to
the Hainan Province Haikou City Intermediate People's Court. As of the issuance date of the
financial statement, the second trial maintained the verdict made during the first trial, i.e., to
rejected their claim and hear the case after the completion of the trial of criminal case of Hainan
Zhuyei Investment Management Co., Ltd.
XIV. Other significant events
1）Guaranty events
There is no external guarantee of this report period
2）Other events
a)The company is planning on major asset reorganization, which was approved by the
State-owned Assets Supervision and Administration Commission of the Beijing Municipal
People's Government on July 21, 2016. The reorganization programme involves three transactions, such as major asset replacement, issuance of shares, purchase of assets and supporting financing.
The subject of the transactions is100% shares of Beijing Grain Stock Co. Ltd held by BGG and
other related parties. As of the issuance date of the financial statement, the company received On
the Approval of Hainanzhujiangkonggu Co., Ltd to Issue Shares and Purchase and Raise
Supporting Funds to BGG and other related parties issued by China Securities Regulatory
Commission (CSRC License No.[2017]1391).
b)This company's subsidiary Hubei Pearl River Real Estate Development Co., Ltd. Signed an
agreement with Hubei Supply and Marketing XudongMinsheng Plaza Real Estate Co., Ltd. on
Dec. 4, 2016 to transfer the legally-owned land plot located in No. 20, Fangji Road, Hongshan
District, Wuhan City to Hubei Supply and Marketing XudongMinsheng Plaza Real Estate Co., Ltd. The transfer area is about13560㎡ with a transfer price of 135million RMB. The payment has
been received. In case of the complex transfer processes dealing with Land Use Certificate, the
Planning and Design, Asset Evaluation and Government approveal, the handover formalities have not been handled.
XV. Notes to significant items of the parentcompany’s financial statements
Note 1 Accounts receivable
1) Disclosure of category details of accounts receivable:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Closing Balance|||||||||
||Book Balance|||Provision for Bad Account||||||
|Categories|||Ratio(%)|||C|Rate|l|Book Value|
|||Amounts|||Amounts||hargeab|||
||||||||e（%）|||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing Balance||||||||||
|||Book Balance||||Provision for Bad Account||||||
|Categories||||Ratio(%)||||C|Rate|l|Book Value|
||||Amounts||||Amounts||hargeab|||
||||||||||e（%）|||
||Accounts receivable with|||||||||||
||significant single amount|||||||||||
||||8,856,207.60||74.25%||8,856,207.60||100.00%|||
||and individual provision for||||||||||-|
||bad debts|||||||||||
||Accounts receivable with|||||||||||
||combinational withdrawal|||||||||||
||of the bad debt provision||1,172,461.81||9.83%||155,487.58||13.26%|||
||||||||||||1,016,974.23|
||by credit risks|||||||||||
||characteristics|||||||||||
||Accounts receivable with|||||||||||
||non-significant single|||||||||||
||||1,898,690.60||15.92%||1,898,690.60||100.00%|||
||amount and individual||||||||||-|
||provision for bad debts|||||||||||
||Total||11,927,360.01||||10,910,385.78||||1,016,974.23|

Continued：
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Opening Balance|||||||||
|||Book Balance|||Provision for Bad Account|||||
|Categories||||||||||
||||Ratio(%)|||C|Rate|l|Book Value|
|||Amounts|||Amounts||hargeab|||
||||||||e（%）|||
|Accounts receivable with||||||||||
|significant single amount||||||||||
|||8,856,207.60||74.16%|8,856,207.60||100.00%|||
|and individual provision for|||||||||-|
|bad debts||||||||||
|Accounts receivable with||||||||||
|combinational withdrawal||||||||||
|of the bad debt provision||1,187,881.81||9.95%|155,795.98||13.12%|||
||||||||||1,032,085.83|
|by credit risks||||||||||
|characteristics||||||||||
|Accounts receivable with||||||||||
|non-significant single||||||||||
|||1,898,690.60||15.90%|1,898,690.60||100.00%|||
|amount and individual|||||||||-|
|provision for bad debts||||||||||
|Total||11,942,780.01|||10,910,694.18||||1,032,085.83|

 Description of categories of accountsreceivable：
(1) Accounts receivable with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name
Rate
Accounts Provision for
Chargeabl Reasons of Withdrawal Receivable Bad Account
e（%）
Estimates cannot Hainan dragon film studio 1 0 0 .0 0%
1,046,985.40 1,046,985.40
be brought back
Estimates cannot
Hainan Baoping company 1 0 0 .0 0%
2,218,494.43 2,218,494.43
be brought back
Hainan racing entertainment 1 0 0 .0 0% E s t im ates cannot
Closing Balance
Name
Rate
Accounts Provision for
Chargeabl Reasons of Withdrawal Receivable Bad Account
e（%）
Co., LTD 2,406,158.00 2,406,158.00 be brought back
Hainan centaline property
Estimates cannot 1 0 0 .0 0%
agency
2,090,069.77 2,090,069.77
be brought back
Singapore China holding co., Estimates cannot 1 0 0 .0 0%
LTD 1,094,500.00 1,094,500.00
be brought back
—
Total
8,856,207.60 8,856,207.60
(2) Accounts receivable with non-significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name
Rate
Accounts Provision for Bad
Chargea Reasons of Withdrawal Receivable Account
ble（%）
Management
Haikou Peijie clothing company 497,520.00 497,520.00100.00%
identification
Hainan International silver city 100.00% Management
451,712.00 451,712.00
Real estate company identification
Haikou Jingye trading 100.00% Management
250,000.00 250,000.00
development company identification
Hainan Jinhe Real estate 100.00% Management
119,446.00 119,446.00
company identification
Hainan Qiongshan Tianxin 100.00% Management
112,116.50 112,116.50
Pawn Investment company identification
Amount less than one hundred 100.00% Management
467,896.10 467,896.10
thousand yuan identification
Total 1,898,690.60 1,898,690.60 —
(3) Accounts receivable in the combination which adopts aging analysis method to determine provision for bad debt:
|||||
|-|-|-|-|
||Closing Balance|||
|Aging||Provision for Bad||
||Accounts Receivable||Rate Chargeable（%）|
|||Account||
|Within 1 year|||2.00%|
||36,000.00|720.00||
|1－2 years|||5.00%|
||918,807.39|45,940.37||
|2－3 years|||10.00%|
||-|-||
|3－4 years|||20.00%|
||-|-||
|4－5 years|||30.00%|
||-|-||
|Over 5 years|||5 0 .0 0 %|

|||||
|-|-|-|-|
||Closing Balance|||
|Aging||Provision for BadAccount||
||Accounts Receivable||Rate Chargeable（%）|
||217,654.42|108,827.21||
|||155,487.58||
|Total|||-----|
||1,172,461.81|||

Continued：
||||||
|-|-|-|-|-|
|||Opening Balance|||
||Aging||Provision for BadAccount||
|||Accounts Receivable||Rate Chargeable（%）|
|Within 1 year||51,420.00|1,028.40|2.00%|
||1－2 years|918,807.39|45,940.37|5.00%|
||2－3 years|||10.00%|
||3－4 years|||20.00%|
||4－5 years|||30.00%|
|Over 5 years||217,654.42|108,827.21|50.00%|
|Total||1,187,881.81|155,795.98|—|

2) Situation of the current bad debt provision withdrawn, recovered or reversed:
The amount of current bad debt provision reversed was RMB308.4 .
3) There is no money owed by the shareholders who hold more than5%(5% is included) of voting shares of the Company in the closing accounts receivable.
4) Top 5 units of accounts receivable of the closing balance gathered on the basis of parties which owe the money:
Ratio in Closing
Amount of Bad Account Provisions Name Closing Balance
Accounts Withdrawn
Receivable(%)
Hainan racing entertainment Co., LTD 2,406,158.00 20.17% 2,406,158.00 Hainan Baoping company 2,218,494.43 18.60% 2,218,494.43 Hainan Zhongyuan tenement agency
2,090,069.77 17.52% 2,090,069.77 company
Singapore China holding co., LTD 1,094,500.00 9.18% 1,094,500.00 Hainan Longzhu Cinema City 1,046,985.40 8.78% 1,046,985.40 Total 8,856,207.60 8,856,207.605） There is no account receivable from the related party at the end of report period.
Note 2 Other Receivables
1) Disclosure of category details of other receivables
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Closing Balance|||||||||
||Book Balance|||Provision for Bad Account||||||
|Categories|||Ratio(%)|||C|Rate|l|Book Value|
|||Amounts|||Amounts||hargeab|||
||||||||e（%）|||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing Balance||||||||||
|||Book Balance||||Provision for Bad Account||||||
|Categories||||Ratio(%)||||C|Rate|l|Book Value|
||||Amounts||||Amounts||hargeab|||
||||||||||e（%）|||
||Other receivables with|||||||||||
||significant single amount and|||||||||||
||||||53.18%||139,476,136.40||33.93%|||
||individual provision for bad||411,091,072.35||||||||271,614,935.95|
||debts|||||||||||
||Other receivables with|||||||||||
||combinational withdrawal of|||||||||||
||the bad debt provision by||||||||||-|
||credit risks characteristics|||||||||||
||Combination 1：Aging|||||||||||
||Combination||357,846,097.75||||89,749,525.58||||268,096,572.17|
||Combination 2 ：|||||||||||
||Receivables in the|||||||||||
||inter-companies in range of||143,238.82||||-||||143,238.82|
||consolidation|||||||||||
||Totality of Combination||||46.31%||||25.07%|||
||||357,989,336.57||||89,749,525.58||||268,239,810.99|
||Other receivables with|||||||||||
||non-significant single amount|||||||||||
||||||0.51%||||100.00%|||
||and individual provision for||3,963,362.46||||3,963,362.46||||-|
||bad debts|||||||||||
||Total||||100.00%||233,189,024.44|||||
||||773,043,771.38||||||||539,854,746.94|

Continued：
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Opening Balance||||||||||
|||Book Balance||||Provision for Bad Account||||||
|Categories||||Ratio(%)||||C|Rate|l|Book Value|
||||Amounts||||Amounts||hargeab|||
||||||||||e（%）|||
||Other receivables with|||||||||||
||significant single amount and|||||||||||
||||408,838,943.39||49.22%||139,476,136.40||34.12%||269,362,806.99|
||individual provision for bad|||||||||||
||debts|||||||||||
||Other receivables with|||||||||||
||combinational withdrawal of|||||||||||
||the bad debt provision by|||||||||||
||credit risks characteristics|||||||||||
||Combination 1：Aging|||||||||||
||||417,682,205.01||||95,367,093.30||||322,315,111.71|
||Combination|||||||||||
||Combination 2 ：|||||||||||
||Receivables in the|||||||||||
||||107,303.90||||||||107,303.90|
||inter-companies in range of|||||||||||
||consolidation|||||||||||
||Totality of Combination||417,789,508.91||50.30%||95,367,093.30||22.83%||322,422,415.61|
||Other receivables with|||||||||||
||non-significant single amount|||||||||||
||||3,963,362.46||0.48%||3,963,362.46||100.00%|||
||and individual provision for|||||||||||
||bad debts|||||||||||
||Total||830,591,814.76||100.00%||238,806,592.16||||591,785,222.60|

Description of categories of otherreceivables：
(1) Other receivables with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name
Rate
Provision for Bad Reasons of
Other Receivables Chargeable
Account Withdrawal
（%）
Mudanjiang city pearl
According to the river wanjia tourism
expected amount investment
development group provision shall not co. LTD
246,195,408.23 70,855,952.42 28.78% withdraw
Shanghai rongxin real
According to the estate co. LTD
expected amount provision shall not 68,810,525.99 1,882,525.99 2.74% withdraw
Hebei zhengshi
According to the qinghui real estate
expected amount development co. LTD
provision shall not 49,928,266.99 22,732,273.67 45.53% withdraw
Singapore CHINA
Irrecoverable
GREAT LAND HOLD 16,981,016.24 16,981,016.24 100.00%
Hainan marcun port
Irrecoverable
company 6,000,000.00 6,000,000.00 100.00%
Ding jia international
Irrecoverable
co. LTD 2,725,702.71 2,725,702.71 100.00%
Hainan entrust
Irrecoverable
industry co. LTD 2,314,592.00 2,314,592.00 100.00%
Hainan zhongda
Irrecoverable
industrial corporation 2,210,779.10 2,210,779.10 100.00%
Great treasure cement
Irrecoverable
factory 1,901,383.56 1,901,383.56 100.00%
Jinguang industrial
Irrecoverable
company 1,752,100.00 1,752,100.00 100.00%
Beijing jiubo
According to the cultural development
expected amount co. LTD
provision shall not 3,680,000.00 1,528,513.18 41.54% withdraw
Shenzhen pearl real
Irrecoverable
estate company 1,550,278.23 1,550,278.23 100.00%
Shenzhen guoan
Irrecoverable
securities co. LTD 1,409,934.28 1,409,934.28 100.00%
Haikou industrial
development import
Irrecoverable
and export trade co.
LTD 1,392,430.00 1,392,430.00 100.00%
Xinhua dawn aviation
Irrecoverable
decoration company 1,208,804.70 1,208,804.70 100.00%
Hainan deep-sea
Irrecoverable
property co. LTD 1,029,850.32 1,029,850.32 100.00%
Hainan Yangtze river
Irrecoverable
travel industry 1,000,000.00 1,000,000.00 100.00%
Closing Balance
Name
Rate
Provision for Bad Reasons of
Other Receivables Chargeable
Account Withdrawal
（%）
Land property
administration of I rr e c overable
sanya city 1,000,000.00 1,000,000.00 100.00%
Total —
411,091,072.35 139,476,136.40
(2) Other receivables with non-significant single amount and individual provision for bad debts at the end of period
Closing Balance
Name
Rate
Other Provision for
Chargea Reasons of Withdrawal
Receivables Bad Account
ble（%）
Sell Dabao cement on a
560,610.00 560,610.00 100.00 Irrecoverable
commission basis
Hainan Development Bank 440,000.00 440,000.00 100.00 Irrecoverable
Hainan Sanli Industry and
283,478.62 283,478.62 100.00 Irrecoverable
Trade Company
Chamber of Commerce of
270,000.00 270,000.00 100.00 Irrecoverable
Hainan Province
Telephone rate of customers of
268,542.54 268,542.54 100.00 Irrecoverable
PEARL RIVER Square
China Construction Sixth
260,335.00 260,335.00 100.00 Irrecoverable
Engineering Division Group, Ltd
Huazhou Jianan Company 200,000.00 200,000.00 100.00 Irrecoverable
PEARL RIVER Advertisement
184,911.62 184,911.62 100.00 Irrecoverable
Company
Initial installation charge of
156,271.60 156,271.60 100.00 Irrecoverable
telephone
Amount belowRMB150000（23
1,339,213.08 1,339,213.08 100.00 Irrecoverable
units）
Total 3,963,362.46 3,963,362.46 —
(3) Other receivables in the combination which adopts aging analysis method to determine provision for bad debt:
|||||
|-|-|-|-|
||Closing Balance|||
|Aging||Provision for Bad||
||Other Receivables||Rate Chargeable（%）|
|||Account||
|Within 1 year|||2.00%|
||104,409,283.75|2,087,520.28||
|1－2 years|||5.00%|
||32,373,620.00|1,618,681.00||
|2－3 years||||
||-|-||
|3－4 years|||20.00%|
||30,000,000.00|6,000,000.00||
|4－5 years|||30.00%|
||77,455,266.00|23,236,579.80||
|Over 5 years|||50.00%|
||113,607,928.00|56,806,744.50||
|Total|||- -- - -|

|||||
|-|-|-|-|
||Closing Balance|||
|Aging||Provision for Bad||
||Other Receivables||Rate Chargeable（%）|
|||Account||
||357,846,097.75|89,749,525.58||

Continued：
||||||
|-|-|-|-|-|
|||Opening Balance|||
||Aging||Provision for Bad||
|||Other Receivables||Rate Chargeable（%）|
||||Account||
|Within 1 year||166,613,450.01|3,332,269.00|2.00%|
||1－2 years|20,000,000.00|1,000,000.00|5.00%|
||2－3 years||||
||3－4 years|30,085,000.00|6,017,000.00|20.00%|
||4－5 years|77,370,266.00|23,211,079.80|30.00%|
|Over 5 years||123,613,489.00|61,806,744.50|50.00%|
|Total||417,682,205.01|95,367,093.30|-----|

In the company portfolio, except that the subsidiaries, such as Mudanjiang River Group Company, Jiubo Company and HebeiZhengshiQinghui Company within the scope of company merger conduct calculation and withdrawal of the bad-debt reserves, the accounts receivable among the companies within other merger scope do not conduct the calculation and withdrawal of bad-debt reserves.
2) Situation of the current bad debt provision withdrawn, recovered or reversed
The amount of current bad debt provision withdrawn was RMB5,617,567.72
3) Category of other receivables under the natures of accounts
Item Closing Balance Opening Balance
Investment 240,400,000.00 250,400,000.00 Recievable Related Parties 368,683,164.43 403,157,641.37 Borrowing and Interest 16,981,016.24 16,981,016.24 Other Recievable 103,720,000.00 118,720,000.00 Deposit 7,334,364.05 7,334,364.05 Mortgage Guarantee 5,917,801.10 5,917,801.10 Dividends Receivable 1,849,934.28 1,849,934.28 Other 28,157,491.28 26,231,057.72 Total 773,043,771.38 830,591,814.76 4) There is no money owed by the shareholders who hold more than5%(5% is included) of voting shares of the Company in the closing other receivables.
5) Top 5 units of other receivables of the closing balance gathered on the basis of parties which
owe the money:
Ratio in
Closing Closing
Nature of Amount of Balance of Bad Name Closing Balance Aging
Money Other Debt
Receivables Provisions
(%)
Mudanjiang Pearl
River Wanjia Tourism 1-5years、over 5
Borrowing 246,195,408.23 31.85% 70,855,952.42 Investment years
Development Group
Money for
Beijing Kangtai
Project 4 -5 y e a r s、 o v er 5
Xingye Investment 12.94% 42,000,000.00 Combinatio 100,000,000.00 years
Co.,Ltd
n
Beijing runshun
Intercourse
technology 1-2years 12.64% 1,954,400.00 Funds 97,720,000.00
development co. LTD
Money for
Zhonghe investment
Cooperatio 4 -5 y e a r s、 o v e r 5
11.69% 37,800,000.00 co. LTD n with 90,400,000.00 years
Project
Shanghai rongxin real
Intercourse 1 -5 y e ar s、 o v e r 5
estate co. LTD 8.90% 1,882,525.99 Funds 68,810,525.99 years
Total 78.02% 154,492,878.41 603,125,934.22
Note 3 Long-term Equity Investment
Closing Balance Opening Balance
Nature of
Impairment Impairment
Money Book Balance Book Value Book Balance Book Value Provision Provision
Investment in
subsidiaries 179,420,000.00 110,100,000.00 69,320,000.00 179,420,000.00 110,100,000.00 69,320,000.00 Investment in
associated
31,464,906.50 - 3 1,464,906.50 32,393,800.55 - 3 2,393,800.55 companies
Total
210,884,906.50 110,100,000.00 100,784,906.50 211,813,800.55 110,100,000.00 101,713,800.55 1) Investment in subsidiaries
Current The
Current Impairmen Impairment Initial Opening Current Closing
Investee Increas t Provision Prepares the Investment Cost Balance Decrease Balance
e Withdrawn Ending
Balance
Shanghai rongxin
real estate co. LTD
40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 Hainan pearl river
property hotel
management co. 4,900,000.00 4,900,000.00 4,900,000.00
LTD
Current The
Current Impairmen Impairment Initial Opening Current Closing
Investee Increas t Provision Prepares the Investment Cost Balance Decrease Balance
e Withdrawn Ending
Balance
Hubei zhujiang real
estate development
64,420,000.00 64,420,000.00 64,420,000.00
co. LTD
Mudanjiang wanjia
tourism investment
development group 60,000,000.00 60,000,000.00 60,000,000.00 60,000,000.00 co. LTD
Beijing jiubo cultural
development co.
5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 LTD
Hebei zhengshi
qinghui real estate
development co. 5,100,000.00 5,100,000.00 5,100,000.00 5,100,000.00 LTD
Total
179,420,000.00 179,420,000.00 179,420,000.00 110,100,000.00 2) Investment in cooperative enterprises and associated enterprises
Current Increase or Decrease
Opening
Investment Adjustment of Investee
Balance
Additional Contribution Results Other
Contribution Reduced Recognized by Comprehensiv Equity Method e Income
1. Associated Enterprises
2. Sanya Wanjia Industry Co.,
Ltd. 32,393,800.55 -928,894.05
Total
32,393,800.55 - - -928,894.05
Continued：
Current Increase or Decrease
Closing Declared to
Balance of Investee
Change of Impairment
Closing Balance
grant cash
Impairme Other Provision Other
dividends or
nt Reserve Equities Withdrawn
profits
3. Associated Enterprises
Sanya Wanjia Industry Co.,
Ltd. 31,464,906.50
Total
31,464,906.50 - Note 4 Operating income and operating cost
Current Amount Previous Amount
Item
Income Cost Income Cost
Other Business 620,935.59 173,367.05 2,857.14 151,218.30
Total
2,857.14 151,218.30 620,935.59 173,367.05 Note 5 Investment income
Item Current Amount Previous Amount
Investment Income from the Long-term Equity Measured Under
Equity Method -928,894.05 -159,255.52 Other
75,820,000.00 - Total
74,891,105.95 -159,255.52 XVI. Supplementary information
1) Breakdown of non-recurring profit or loss
Items Amount Description Profit and loss on disposal of non-current assets 149,535.63
Fund occupation fee from non-financial enterprises included in the
1,031,643.09
current profit and loss
In addition to the normal operation of the same business related
effective hedging business, holding the fair value of financial assets
transaction, transaction financial liabilities generated by the movement
of the profit and loss, and the disposal of trading financial assets,
financial liabilities held for trading and available for sale financial assets
to obtain investment income
Others non-operating income and expenses excluded as above -1,143,672.86
Enterprise restructuring charges -1,367,924.53
Other satisfies the definition of non-recurring gains and losses and losses
of the project
Income tax influence the forehead
41,265.54
Rights and interests of minority shareholders influence the forehead
(after tax) 6,065.97
Total -1,377,750.18
2) Return on equity (ROE) and earnings per share ("EPS")
Earnings per share
Weighted average return on
Profit During Report Period
net assets(%)
Basic earnings per Diluted earnings per share share
Net profit attributable to ordinary
23.37% 0.04 0.04
shareholders of the Company
Net profit after deduction of
non-recurring profits or losses attributable 25.24% 0.04 0.04
to ordinary shareholders of the Company
(1) Consolidated balance sheet of consolidated financial statements
December 31, Ratio of
Item June 30, 2017 Reason of Change
2016 Change
Monetary fund The principal is to repay the loan of this period an d t o return the advanced payment of
-31.91%
167,840,121.26 246,504,351.39 Zhongsenhua by the subsidiary Hubei Pearl
River.
inventory The principal is to carry forward cost of the
-46.95% unsold inventory of homes by the subsidiary
158,016,371.89 297,867,807.05
Hubei Pearl River.
Other current assets T h e p r in c i p al is the prepaid related taxes and
65.38%
14,411,010.80 8,714,139.07 fees of the subsidiary Hubei Pearl River.
Long-term deferred T h e p r in c i p al is caused by the amortization of
expenses
1,113,550.80 2,083,962.89
-46.57%
this period.
Deferred tax assets The principal is to transfer back to deferred
-100.00% income tax assets by the subsidiary Hubei Pearl - 4,985,486.50
River.
Advance payment T h e p r incipal is from the income from the sales-36.87%
230,886,723.58 365,746,868.16 of the subsidiary Hubei Pearl River.
Payable taxes The principal is to pay enterprise income tax
-48.52% and to pay the related taxes and fees of Hubei
43,455,350.36 84,404,890.27
Pearl River.
Non-current
T h e p r i n c ip a l i s to return the loan from the
liabilities due within -100.00%
- 7 8,710,181.59 subsidiary Mudanjiang Tourism Group.
one year
Long-term T h e p r in c ipal is to return the loan from the
borrowing
5,000,000.00 73,666,666.66
-93.21%
subsidiary Mudanjiang Tourism Group.
Minority interests T h e p r in c i pal is to make dividends by the
-143.17%
-9,962,656.83 -4,096,952.76 subsidiary Hubei Pearl River.
(2) Consolidated Profit Statement and Cash Flow Statement
January to June January to June Ratio of
Item Reason of Change
2017 2016 Change
The principal is to gain the income of the Operating
393,836,785.57 149,032,528.40 164.26% housing sales by the subsidiary Hubei Pearl income
River.
The principal is to gain the income of the Operating
288,602,024.02 122,029,925.99 136.50% housing sales by the subsidiary Hubei Pearl cost
River.
The principal is to provision related taxes and Taxes and
16,524,745.23 10,405,923.57 58.80% frees of the housing sales by the subsidiary surcharges
Hubei Pearl River.
Financial The principal is to repay the loan and to reduce 7,378,082.80 48,791,814.72 -84.88%
expenses the financial cost in this period
Impairment The principal is to withdraw the partial -4,139,548.16 1,995,276.66-307.47%
of assets receivables depreciated.
The principal is to transfer the shareholders of the subsidiary Heilongjiang Hongshi owed by Investment -1,095,372.42 37,928,898.30-102.89%
Mudanjiang Tourism Group in the previous period.
Non-operati The principal is to deal with fixed assets to 623,290.84 2,651,492.34 -76.49%
ng income generate income in the previous period Operating The principal is to apply for scrap part of fixed 1,617,428.07 3,278,378.77 -50.66%
expenses assets in the previous period.
The principal is to provision income taxes by the Income tax
7,201,670.33 183,697.963820.39% subsidiaries Hubei Pearl River and Zhujiang expense
Property.
Minority
The principal is to make a profit by the gains and 3,314,295.93 -3,798,646.47 187.25%
subsidiary Hubei Pearl River.
losses
Net cash
flow
generated The principal is that prepaid housing funds of -69,730,210.02 161,345,565.54-143.22%
by Hubei Pearl River reduces in this period. operating
activities
Net cash
flow
The principal is to withdraw the partial generated
53,311,113.89 5,447,324.96 878.67% investment and sell some fixed assets to receive by
cash
investment
activities
Net cash
The principal is to receive the payback of the flows from
-62,245,134.00 -229,444,811.25 72.87% loan for the increase in borrowing in this period. financing
activities
Legal representative: Wang Chunli
Principal in charge of accounting: Guan Ying
Head of the accounting department: Wu Xiukun
Hainan Pearl River Holding Company Limited 23 August 2017