Short Form of the Stock: Donghai-A, Donghai-B Stock Code: 000613, 200613海南大东海旅游中心股份有限公司
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Annual Report 2015
(Full Text)
Disclosure Date: 26 March 2016
Section I. Important Notice, Contents and Paraphrase
Important Notice:
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
All directors are attending the Board Meeting for Report deliberation.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Li Yuanbin, Principal of the Company, Fu Zongren, person in charger of accounting works and Liu Xianghai, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2015 Annual Report is authentic, accurate and complete.
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise caution of investment risks.
Content
Annual Report 2015.............................................................................................................................1 Section I Important Notice, Contents and Paraphrase ........................................................................2 Section II Company Profile and Main Finnaical Indexes ..................................................................4 Section III Summary of Company Business ......................................................................................8 Section IV Discussion and Analysis by the Management Team ........................................................9 Section V Important Events ..............................................................................................................20 Section VI Changes in shares and particular about shareholders......................................................27 Section VII PreferredStock………………………………………………………………………..34 Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees................35 Section IX Corporate Governance.....................................................................................................42 Section X Financial Report................................................................................................................50 Section XI Documents available for reference................................................................................121
Paraphrase
||||
|-|-|-|
|Items|Refers to|Contents|
|CSRC|Refers to|China Securities Regulation Commission|
|SSE|Refers to|Shenzhen Stock Exchange|
|Company Law|Refers to|Company Law of The People’s Republic of China|
|Securities Law|Refers to|Securities Law of The People’s Republic of China|
|Rules of Listing|Refers to|Rules of Shenzhen Stock Exchange for the Listing of Stocks|
|Company/the Company|Refers to|Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.|
|||Article of Association of Hainan Dadonghai Tourism Centre (Holdings)|
|Article of Association|Refers to||
|||Co., Ltd.|
|||Shareholders’ General Meeting of Hainan Dadonghai Tourism Centre|
|Shareholders’ General Meeting|Refers to||
|||(Holdings) Co., Ltd.|
|Board|Refers to|Board of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.|
|||Supervisory Committee of Hainan Dadonghai Tourism Centre|
|Supervisory Committee|Refers to||
|||(Holdings) Co., Ltd.|
|Yuan|Refers to|RMB|
|In the reporting period, the reporting period|Refers to|2015-1 -1 to 2015 -12 -31|

Major Risk Warning
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise caution of investment risks.
Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) are the media for information disclosure appointed by the Company for year of 2016, all information under the name of the Company disclosed on the above said media shall prevail.
The report is prepared in bilingual versions of Chinese and English respectively, in the event of any discrepancy in understanding the two aforementioned versions, the Chinese version shall prevail. Investors are advised to exercise caution of investment risks.
Section II Company Profile and Main Finnaical Indexes
I. Company information
|||||
|-|-|-|-|
|Short form of the stock|Donghai-A , Donghai-B|Stock code|000613、200613|
|Short form of the Stock after||||
||N/A|||
|changed||||
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name of the Company (in|海南大东海旅游中心股份有限公司|||
|Chinese)||||
|Short form of the Company||||
||大东海|||
|(in Chinese)||||
|Foreign name of the Company|Hainan Dadonghai Tourism Centre (Holdings) Co.,Ltd.|||
|Foreign name of short form of||||
||DADONGHAI|||
|the Company||||
|Legal representative|Li Yuanbin|||
|Registrations add.|Dadonghai Sanya|||
|Code for registrations add|572021|||
|Offices add.|Dadonghai Sanya|||
|Codes for office add.|572021|||
|Company website|http://www.cninfo.com.cn|||
|Email|hnddhhn@21cn.com|||

II. Person/Way to contact
||||
|-|-|-|
||Secretary of the Board|Rep. of security affairs|
|Name|Wang Hongjuan||
|Contact add.|Dadonghai Sanya||
|Tel.|0898-88219921||
|Fax.|0898-88214998||
|E-mail|hnddhhn@21cn.com||

III. Information disclosure and preparation place
|||
|-|-|
|Newspaper appointed for information disclosure|Securities Times, Hong Kong Commercial Daily|
|Website for annual report publish appointed by CSRC|http://www.cninfo.com.cn|

|||
|-|-|
|Preparation place for annual report|Security department of the Company|

IV. Registration changes of the Company
|||
|-|-|
|Organization code|Unified social credit code 91460000201357188U|
|Changes of main business since listing|No changes|
||1. The Company listed A-stock in January 1997, and 96.327 million A-stock shares are|
||held by Hainan Dadonghai Tourism Centre Group Co., ltd., a 26.46% in total share capital|
||of the Company and is the first majority shareholder of the Company also.|
||2. On 25 December 1998, the shares held by Hainan Dadonghai Tourism Centre Group|
||Co., ltd were transfer to Sanya ABC through the courts of justice, and after obtained the|
||shares in December 1998, Sanya ABC entrust wholly-owned subordinate enterprise Sanya|
||Bank-Agriculture Industrial Development Corp. to hold the aforesaid shares, than the first|
||majority shareholder of the Company comes to Sanya Bank-Agriculture Industrial|
||Development Corp.|
||3. On 12 December 2000, the aforesaid equity was stripped to name of China Greatwall|
|Previous changes for controlling||
||Assets Management Corporation, the first majority shareholder of the Company.|
|shareholders||
||4. On 19 September 2001, China Greatwall Assets Management Corporation entered into|
||“Equity Transfer Agreement” with Haikou Food Co., Ltd for 60 million shares transfer; and|
||gained approval of [2002] No.: 430 from Ministry of Finance dated 18 October 2002, than|
||the first majority shareholder of the Company comes to Haikou Food Co., Ltd.|
||5. On 24 April 2008, Haikou Agriculture & Industry & Trade Luoniushan Co., Ltd. entered|
||into the “Statement”, confirmed that the 60 million shares held by Haikou Food Co., Ltd.|
||were under the name of Haikou Agriculture & Industry & Trade Luoniushan Co., Ltd., the|
||shares’ ownership have been transfer dated 29 January 2010. Therefore, Haikou|
||Agriculture & Industry & Trade Luoniushan Co., Ltd. comes to the first majority|
||shareholder of the Company.|

V. Other relevant information
CPA engaged by the Company
|||
|-|-|
|Name of CPA|BDO CHINA Shu Lun Pan Certified Public Accountants LLP|
|Offices add. for CPA|4# Building, No. 61, Nanjing Rd.(E), Shanghai|
|Signing Accountants|Liu Zebo, Zhu Meirong|

Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable√ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable√ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□ Yes√ No
||||||
|-|-|-|-|-|
||2015|2014|Changes over last year|2013|
|Operating income (RMB)|15,885,922.90|20,202,134.10|-21.37%|23,660,779.80|
|Net profit attributable to shareholders|-7,477,866.40|2,503,486.47|||
||||-398.70%|-2,199,319.96|
|of the listed company(RMB)|||||
|Net profit attributable to shareholders|||||
|of the listed company after deducting|-9,474,005.29|-2,709,988.03|-249.60%|-2,283,020.26|
|non-recurring gains and losses(RMB)|||||
|Net cash flow arising from operating|-1,745,526.28|2,432,068.08|||
||||-171.77%|2,615,368.77|
|activities(RMB)|||||
|Basic earnings per share (RMB/Share)|-0.0205|0.0069|-397.10%|-0.0060|
|Diluted earnings per share|-0.0205|0.0069|||
||||-397.10%|-0.0060|
|(RMB/Share)|||||
|Return on Equity|-9.27%|3.01%|-12.28%|-2.65%|
||||Changes over end of||
||End of 2015|End of 2014||End of 2013|
||||last year||
|Total assets (RMB)|104,887,596.60|114,080,998.28|-8.06%|113,960,862.69|
|Net assets attributable to shareholder|76,937,467.93|84,415,334.33|||
||||-8.86%|81,911,847.86|
|of listed company (RMB)|||||

VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable√ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
|||||
|-|-|-|-|
|First quarter|Second quarter|Third quarter|Fourth quarter|

||||||
|-|-|-|-|-|
|Operating income|6,260,948.00|2,160,348.50|2,839,915.00|4,624,711.40|
|Net profit attributable to|||||
||-112,934.03|-3,279,032.61|-3,054,236.00|-1,031,663.76|
|shareholders of the listed company|||||
|Net profit attributable to|||||
|shareholders of the listed company|||||
||-1,347,584.53|-3,449,529.47|-3,085,920.00|-1,590,971.29|
|after deducting non-recurring gains|||||
|and losses|||||
|Net cash flow arising from|||||
||953,736.43|-122,826.02|-1,036,666.14|-1,539,770.55|
|operating activities|||||

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in thecompany’s quarterly report and semi-annual report
□Yes√ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Item|2015|2014|2013|Note|
|Gains/losses from the disposal of non-current asset (including the|-90,560.75||||
|||5,119,583.45|-39,699.50||
|write-off that accrued for impairment of assets)|||||
|Capital occupation fees charged by non financial enterprises|422,000.00||||
|recorded in the current profits and losses|||||
|Other non-operating income and expenditure except for the|1,664,699.64||||
|||93,891.05|123,399.80||
|aforementioned items|||||
|Total|1,996,138.89|5,213,474.50|83,700.30|--|

 Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
The company's main business is hotel accommodation and catering services. Procurement of goods is mainly the goods and materials necessary for hotel and catering operations by taking the principle of low price and fine quality, some goods are purchased by directly signing purchase contracts with suppliers, and some good are purchased by procurement agents. The selling is mainly based on internet marketing and supplemented by the individual travelers of non-internet marketing and business and the tourists from travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in Sanya City, Hainan Province, and it has become a member of the nationwide famous hotels because of the convenient transportation, beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- and low-grade hotels or guesthouses numerously emerge, resulting in the supply much larger than the market demand, the industry competition is rather fierce, and the pressure of decline in business remains.
II. Major changes in main assets
1. Major changes in main assets
□ Applicable√ Not applicable
2. Main overseas assets
□ Applicable√ Not applicable
III. Core Competitiveness Analysis
The company takes hotel accommodation and catering services as the principle works, locates at Dadonghai bay which is one of the China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has the maximum passenger flow volume in Sanya City, and is about a 5-minute drive from downtown of Sanya City and about a 30-munite drive from Sanya Phoenix Airport. The hotel is only tens of meters distant from the sea level, possesses beautiful landscaping full of blooming flowers all the year round, and enjoys exceptional geography, natural environmental advantages. The hotel has opened for more than two decades which is one of the oldest hotels in Sanya and has received many domestic and foreign heads of state and national leaders. In the recent years, the company has comprehensively upgraded and rebuilt thehotel’s software and hardware facilities, further improved the hotel's internal and external business environment, and effectively enhanced the business competitiveness. Currently, the management of thecompany’s hotel is still in the front rank among hotels in the same area, with the same scale, and at the same level.
In the future work, the company will keep trying to improve thehotel’s internal and external business environment, strengthen the sales efforts and the staff construction, and further improve the operational capability. During the reporting period, the company's core competence had no significant change.
Section IV Discussion and Analysis by the Management Team 1. Introduction
During the reporting period, the company realized main business income of 15,885,900 yuan, reduced by 4,316, 200 yuan compared with the same period last year, a decrease of21.37%; investment income of 422,000 yuan, reduced by 3,598,000 yuan compared with the same period last year, a decrease of89.50%; operating profit loss of 9,052,000 yuan, increased by 8,342,000 yuan compared with the same period last year, an increase of1,174.93%; net non-operating income of 1,574,100 yuan, reduced by 1,639,100 yuan compared with the same period last year, a decrease of51.02%; net profit loss of 7,477,900 yuan, increased by 9,981,400 yuan compared with the same period last year, an increase of398.70%.
During the reporting period, the global economy has been weak, domestic economic development has had a slowdown, tourism market has been sluggish, domestic and foreign tourist customer market has reduced, and the company's hotel has adjusted the internal operating management and decorated some rooms, which have made thehotel’s management downturn pressure intensify. In face of the severe management situation, the company has taken the market as a guide, positively adjusted the marketing strategy, expanded the marketing channels, increased the hardware and software facilities, enhanced the product quality, improved the internal control system, reduced the risks and consumption, and has basically completed the business objectives the company made at the beginning of the year. The main work is as follows:
1. Take the market as a guide, positively adjust the marketing strategy, and expand the marketing channels During the reporting period, the company has taken the market as a guide, made a flexible management for product prices and sales, and actively expanded the sales of network individual travelers. The selling has been mainly based on network individual travelers and supplemented by the individual travelers of business and the tourists from travel agencies, strengthened the cooperation with the domestic leading network companies related to travel such as Ctrip and Qunar, and made full use of network channels and e-commerce platforms to expand the sales network; further consolidated the existing customers, expanded the direct selling travel agencies in the first- and second-tier cities in the east, southwest and south regional markets, and increased the sales channels for travel agency teams and individual travelers. During the reporting period, the market share of thecompany’s individual travelers and network sales revenue have significantly improved, achieved the main business income of 15,885,900 yuan, reduce by 4,316,200 yuan compared with the same period last year, a decrease of21.37%, and curbed the sharp drop in business.
2. Increase investment into the hotel software and hardware facilities, improve the product quality, and enhance the competitiveness
Due to long years of aging, some guest rooms were damaged and could not meet the market demands. During the reporting period, the company has taken advantage of off-season business, decorated and rebuilt all guest rooms and Chinese and western restaurants in Building of the hotel, and upgraded the corresponding equipments and facilities. At the same time, based on the employment concept of "people first", the company has engaged and introduced talents at various levels for services, management and marketing; based on the business philosophy of "customer highest, service first", the company has continued to strengthen the cultural construction and staff construction of the hotel, strengthened the hotel management and the professional skill and knowledge training to the staff, further improved the service quality and management level of hotel, and enhanced the quality and
competitiveness of thehotel’s products.
3. Improve the internal control system, strengthen the management, reduce risks and consumption, increase revenue and reduce expenditures, realize safety production, and maximize the interests of enterprise
During the reporting period, the company has continued to strengthen and standardization the implementation of internal controls, and ensured the rational and effective internal controls; actively adjusted the compression mechanism, established posts as needed, reduced management positions, enriched the front-line team, taken "fixed posts, fixed responsibilities, fixed staff" as the main content, rationally adjusted the human resources, improved, adjusted and optimized the personnel management system and the human resource allocation; in addition, strictly and reasonably controlled all expenses, resolutely and completely eradicated extravagance and waste, improved procurement management system, increased efforts to control procurement costs, increased investment in energy-saving and cost-reducing, clearly defined the management responsibilities of safety production, effectively improved the operational efficiency, and ensured the company's safety operations.
In 2016, the company will continue to consolidate and expand sales channels, improve thehotel’s product quality and service quality, and enhance the comprehensive competitive ability and sustainable operation ability of the company so as to lay a solid foundation for the company's sustainable and stable operation and development. II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis by the Management Team”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
|||||||
|-|-|-|-|-|-|
||2015||2014|||
||||||Increase/decrease|
|||Ratio in operation||Ratio in operation||
||Amount||Amount||y-o-y|
|||revenue||revenue||
|Total of operation|15,885,922.90||20,202,134.10|||
|||100%||100%|-21.37%|
|revenue||||||
|According to industries||||||
|Tourism & catering|15,885,922.90|100.00%|20,202,134.10|100.00%|-21.37%|
|According to products||||||
|Room revenue|12,264,036.40|77.20%|16,901,455.60|83.66%|-27.44%|
|Catering||||||
|entertainment|1,307,608.50|8.23%|734,678.50|3.64%|77.98%|
|revenue||||||
|Rental revenue|2,314,278.00|14.57%|2,566,000.00|12.70%|-9.81%|
|According to region||||||
|Hainan area|15,885,922.90|100.00%|20,202,134.10|100.00%|-21.37%|

(2) About the industries, products, or regions accounting for over10% of thecompany’s operating income or operating profit
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
||Operating||||||
|||Operating cost|Gross profit ratio|of operating|of operating cost|of gross profit|
||revenue||||||
|||||revenue y-o-y|y-o-y|ratio y-o-y|
|According to industries|||||||
|Tourism &|||||||
||15,885,922.90|626,661.16|96.06%|-21.37%|85.52%|-2.27%|
|catering|||||||
|According to products|||||||
|Room revenue|12,264,036.40||100.00%|-27.44%|-100.00%|0.00%|
|Catering|||||||
|entertainment|1,307,608.50|626,661.16|52.08%|77.98%|90.29%|-1.94%|
|revenue|||||||
|Rental revenue|2,314,278.00||100.00%|-9.81%||0.00%|
|According to region|||||||
|Hainan area|15,885,922.90|626,661.16|96.06%|-21.37%|85.52%|-2.27%|

 Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest oneyear’s scope of period-end
□ Applicable√ Not applicable
(3) Income from physical sales larger than income from labors
□ Yes√ No
(4) Fulfillment of thecompany’s signed significant sales contracts up to this reporting period
□ Applicable√ Not applicable
(5) Constitute of operation cost
Industry classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2015||2014|||
|||||||Increase/decrease|
|Industries|Item||Ratio in operation||Ratio in operation||
|||Amount||Amount||y-o-y|
||||cost||cost||
|Tourism &|Cost of tourism &||||||
|||626,661.16|100.00%|337,785.89|100.00%|85.52%|
|catering|catering||||||

Explanation: Nil
(6) Whether the changes in the scope of consolidation in Reporting Period
□ Yes√ No
(7)Major changes or adjustment in business, product or service of the Company in Reporting Period□ Applicable√ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
|||
|-|-|
|Total top five clients in sales (RMB)|4,759,672.87|
|Proportion in total annual sales volume for top five clients|29.96%|

 Information of top five clients of the Company
|||||
|-|-|-|-|
|Serial|Name|Sales (RMB)|Proportion in total annual sales|
||Sanya branch of Guangzhou South Holiday|||
|1||1,291,446.00|8.13%|
||International Travel Service Co., Ltd.|||
||Qunar (Tianjin) International Travel Service Co.,|||
|2||1,151,280.00|7.25%|
||Ltd.|||
||Beijing Jiaxin Haoyuan Information Technology|||
|3||1,057,687.22|6.66%|
||Co. Ltd.|||
||Shanghai Ctrip International Travel Service Co.,|||
|4||928,651.65|5.85%|
||Ltd.|||
||Shenzhen Xinghai Holiday International Travel|||
|5||330,608.00|2.08%|
||Service Co., Ltd.|||
|Total|--|4,759,672.87|29.96%|

 Other situation of main clients
□ Applicable√ Not applicable
Main suppliers of the Company
|||
|-|-|
|Total purchase amount from top five suppliers (RMB)|3,839,518.39|
|Proportion in total annual purchase amount for top five||
||85.44%|
|suppliers||

Information of top five suppliers of the Company
|||||
|-|-|-|-|
|Serial|Name|Sales (RMB)|Proportion in total annual sales|
||Sanya Power Supply Bureau of Hainan|||
|1||1,321,143.95|29.40%|
||Power Grid|||
|2|Liu Wunan|845,130.00|18.81%|
||Sanya Dafeng Agricultural Comprehensive|||
|3||603,274.41|13.42%|
||Development Co. Ltd.|||
|4|Sanya Jierun Washing Co., Ltd.|579,404.52|12.89%|

|||||
|-|-|-|-|
|5|Sanya Sinofrench Water Supply Co., Ltd.|490,563.51|10.92%|
|Total|--|3,839,518.39|85.44%|

 Other notes of main suppliers of the Company
□ Applicable√ Not applicable
3. Expenses
In RMB
||||||
|-|-|-|-|-|
||||Increase/decreas||
||2015|2014||Note of major changes|
||||e y-o-y||
|Sales expense|12,968,461.37|11,783,411.89|10.06%||
|Management expense|10,272,262.86|11,423,202.87|-10.08%||
||-109,213.80|39,516.35||Because handing charge decreased than last year,|
|Financial expense|||-376.38%||
|||||deposit interest income increased.|

4.R&D expenses
□ Applicable√ Not applicable
5. Cash flow
In RMB
|||||
|-|-|-|-|
|Item|2015|2014|Y-o-y changes|
|Subtotal of cash in-flow from|20,454,444.34|23,049,988.56||
||||-11.26%|
|operation activity||||
|Subtotal of cash out-flow from|22,199,970.62|20,617,920.48||
||||7.67%|
|operation activity||||
|Net cash flow from operation|-1,745,526.28|2,432,068.08||
||||-171.77%|
|activity||||
|Subtotal of cash in-flow from|9,429,510.00|14,024,200.00||
||||-32.76%|
|investment activity||||
|Subtotal of cash out-flow from|10,451,881.00|741,664.00||
||||1,309.25%|
|investment activity||||
|Net cash flow from investment|-1,022,371.00|13,282,536.00||
||||-107.70%|
|activity||||
|Net increased amount of cash and|-2,767,897.28|15,714,604.08||
||||-117.61%|
|cash equivalent||||

Main reasons for y-o-y major changes in aspect of relevant data
√Applicable□ Not applicable
1. The net cash flow from operating activities decreased mainly due to a decrease in the operating income in this year;
2. The cash inflow of investing activities decreased mainly due to the amount of transfer of shares is larger in the previous year; 3. The cash outflow of investing activities increased mainly due to the short-term investments during the year;
4. The net cash flow from investing activities decreased mainly because the transfer of shares not only took back the investment but also received dividends in the previous year;
5. The net increase in cash and cash equivalents decreased mainly because the operating income reduced in this year and the transfer of shares not only took back the investment but also received dividends in the previous year.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable√ Not applicable
III. Analysis of the non-main business
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|||Ratio in total|||
||Amount||Note|Whether be sustainable|
|||profit|||
|Investment|||||
||422,000.00|5.64%|Short term investment in this year|Yes|
|income|||||
||||Mainly due to the accrual reduced-value allowance for||
|Asset|||||
||684,275.50|9.15%|the company to build illegal seafood rooms, boxes and|No|
|impairment|||||
||||multifunctional conference hall||
||||Mainly because Pan Guoping, the company’s||
||||second-largest shareholder, illegally operated the||
||||company’ shares and confiscated income of||
|Non-operatin|||||
||1,664,926.64|22.26%|1,194,445.50 yuan, and Sun Hongjie, the former general|No|
|g income|||||
||||manager of South China Hotel, handed in he hotel’s||
||||target profit of 342,738.77yuan in accordance with the||
||||management responsibility.||
|Non-operatin|||||
||90,787.75|1.21%|Mainly due to disposal loss of fixed assets|No|
|g expense|||||

IV. Assets and liability
1. Major changes of assets composition
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2015||End of 2014||||
||||||Ratio||
|||Ratio in total||Ratio in total||Notes of major changes|
||Amount||Amount||changes||
|||assets||assets|||
|Monetary fund|19,782,392.26|18.86%|22,550,289.54|19.77%|-0.91%|-|
|Account|460,197.28|0.44%|2,632,379.02|2.31%|-1.87%|-|

||||||||
|-|-|-|-|-|-|-|
|receivable|||||||
|Inventory|218,075.43|0.21%|307,057.29|0.27%|-0.06%|-|
|Fix assets|51,279,986.58|48.89%|56,301,360.07|49.35%|-0.46%|-|

2. Assets and liability measured by fair value
□ Applicable√ Not applicable
V. Investment
1. Overall situation
√Applicable□ Not applicable
||||
|-|-|-|
||Investment in the same period of last year||
|Investment in the reporting (RMB)||Changes|
||( RMB)||
|9,000,000.00|4,500,000.00|100.00%|

 2. The major equity investment obtained in the reporting period
□ Applicable√ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable√ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable√ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable√ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable√ Not applicable
The Company has no application of raised proceeds in the Period
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable√ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable√ Not applicable
VII. Analysis of main holding company and stock-jointly companies
□ Applicable√ Not applicable
The Company had no information of main holding company and stock-jointly companies disclosed in the reporting period.
VIII. Structured vehicle controlled by the Company
□ Applicable√ Not applicable
IX. Future Development Prospects
1. Industrial development trend and competition facing the Company
With the improvement of people's living quality and living standards, the enhancement of tourist consumption awareness, as well as the aggravation of atrocious weather and haze air environment outside the island, Hainan tourism market has a good development prospect due to the internationalization and unique natural environment in Hainan Island and the preferential policy like tax-free offshore island. However, during the report period, the global economy has been weak, the tourism market has continued to sluggish, the high-, middle- and low-grade hotels or guesthouses in the island have been numerously emerging resulting in the supply much larger than the market demand, the industry competition has become increasingly fierce, the operating costs such as the staff salary have been increasing, the market operating profits have been reducing, and the overall operation downturn pressure in hotel industry has been increasing.
In the future work, the company will continue to strengthen the updating and transformation of thehotel’s equipment and facilities, improve and upgrade the hardware and software equipments and facilities and the quality of internal and external business environment, enhance the construction of enterprise culture and staff teams, actively expand the sales channels, make full use of the internet platform, expand the sales network, increase the market share, and further improve the management level and core competitiveness.
2. TheCompany’s future development planning and 2016 annual business plan
(1) Further to strengthen the quality control for hard and soft equipments and facilities, promote the brand image of the hotel, centered on enterprise benefit, take the innovation as the driving force and make the brand of major business bigger and stronger.
(2) Continue to expand the financing channels, combine the actual situation of the Company and look for the projects and opportunities in favor of theCompany’s development, enrich the industrial structure and enlarge the enterprise scale.
(3) Continue to strengthen the standard management of internal control, perfect the corporate governance structure, standardize the management and operation, and effectively control the risks.
3. Fund demands and use plan required for the future development of the Company
The Company utilizes owned funds or financing methods to raise the funds demanded for development, and completes the development planning of the Company.
4. The risks may cause adverse effects on the future development strategy and realization of operation target of the Company
(1) Marco Policy risks
In order to normalize and optimize tourism market or further to promote clear-party construction, related departments may further issue some relative policies. While these polices may cause restrain and effect on regional tourism development. Main business income may be affected since we are engaged in tourism service. Countermeasures: The Company will further to improve the hard and soft equipments and facilities of the hotel while expanding the business scope, and win more market shares via high-class service and comfortable environment so as to ensure the main business income level.
(2) Natural disaster risks
In recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, where has high incidence of disastrous weather in summer. If Sanya becomes the landing place of typhoon, it may cause great damages to the facilities of the Company and affect theCompany’s normal operation.
Countermeasures: The Company will strengthen the construction and maintenance for infrastructure, continue to buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting natural disasters.
(3) Human resource risks
The ceaseless rising and rapid development of the same industry make the demands for marketing and management talents of the hotel industry grow with each passing day, and the talent flow of the hotel is rather strong, so the human resource strategy of the Company appears to be very important. Though the Company has rather perfect human resources mechanism construction, the Company will still confronting the risks of development restriction caused by the brain drain.
Countermeasures: The Company will keep consummating the talent introduction, training and motivation system, and improving the employee's remuneration, welfare and insurance benefits, and strive to attract the talents, foster the talents and retain the talents. At the same time, the Company will strengthen the training to the quality, skill and management ability of existing staff. Furthermore, the Company will further enhance the enterprise culture construction, strengthen the cohesive force, and ensure the stability of core management staff and technical staff. (4) Operational risks of main business
With the ceaseless development of global tourist industry constantly and ceaseless rising of high-class, middle-class and low-class hotels, the tourist sources keep shunting, and the competition of tourism service industry in Sanya becomes increasingly fierce. While the main business of the Company is just a small-scale hotel, as the main business is single and the business scope is limited, the tourist market conditions and tourist quantity directly make significant affects on the company performance.
Countermeasures: The Company will keep striving to be better, devote to macroscopic project, carry out scientific management and scientific decision-making, strengthen the risk consciousness, and establish and consummate the corresponding systems so as to avoid the risks. Expand the business scope based on the original selling network,
take the advantage of superior geographical environment, constantly develop the high-end tourist markets at home and abroad, and improve the occupancy rate. Besides, the Company will positively look for the projects and opportunities in favor of theCompany’s development, expand the operating items, and enlarge the enterprise scale.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable□ Not applicable
|||||
|-|-|-|-|
|Time|Way|Type|Basic situation index of investigation|
||||Investor surnamed Lin in Shenyang inquired about how to reimburse and|
||Telephone|||
|2015-01-08|communica|Individual|advance for the company’s stock reform and lift a ban, no material has been|
||tion||provided yet|
||Telephone||Investor surnamed Zhang in Hainan inquired about 2014 annual performance of|
|2015-01-20|communica|Individual||
||||the company, no material has been provided yet|
||tion|||
||Telephone||Investor surnamed Lu in Jilin inquired about the company’s business condition,|
|2015-02-06|communica|Individual||
||||no material has been provided yet|
||tion|||
||||Investor surnamed Huang in Shenzhen inquired about the business condition of|
||Telephone|||
|2015-02-25|communica|Individual|the company’s hotel during the Spring Festival, no material has been provided|
||tion||yet|
||Telephone||Investor surnamed Wang in Shanghai inquired about the company’s business|
|2015-03-20|communica|Individual||
||||condition, no material has been provided yet|
||tion|||
||Telephone||Investor surnamed Han in Shanghai inquired about the company’s business|
|2015-04-08|communica|Individual||
||||condition in the first quarter, no material has been provided yet|
||tion|||
||Telephone||Investor surnamed Wang in Guangdong inquired about how to reimburse and|
|2015-05-15|communica|Individual||
||||advance for the stock reform and lift a ban, no material has been provided yet|
||tion|||
||||Investor surnamed Zhou in Shenzhen inquired whether the company has|
||Telephone|||
|2015-06-26|communica|Individual|undisclosed information that should be disclosed, no material has been provided|
||tion||yet|
||Telephone||Investor surnamed Lin in Beijing inquired about the company’s semi-annual|
|2015-07-06|communica|Individual||
||||business condition, no material has been provided yet|
||tion|||
||||Investor surnamed Wang in Shenzhen inquired whether the company has|
||Telephone|||
|2015-08-18|communica|Individual|undisclosed information that should be disclosed, no material has been provided|
||tion||yet|
||Telephone||Investor surnamed Zhou in Shanghai inquired about the company’s development|
|2015-09-24|communica|Individual||
||||prospect, no material has been provided yet|
||tion|||
||||Investor surnamed Wu in Beijing inquired about the company’s business|
||Telephone|||
|2015-10-16|communica|Individual|condition in the third quarter and the disclosure time of the third quarterly report,|
||tion||no material has been provided yet|
||Telephone||Investor surnamed Liu in Jilin inquired about the company’s business condition|
|2015-10-26|communica|Individual||
||||in the third quarter, no material has been provided yet|
||tion|||
|2015-11-20|Telephone|Individual|Investor surnamed Zhang in Hainan inquired about the listing condition of the|
||communica|||

||||||
|-|-|-|-|-|
||tion|||company’s former internal employee stock, no material has been provided yet|
||Telephone|||Investor surnamed Lan in Beijing inquired about the company’s business|
|2015-12-08|communica|Individual|||
|||||condition in the third quarter, no material has been provided yet|
||tion||||
||Telephone|||Investor surnamed Yu in Shanghai inquired about the disclosure time of the|
|2015-12-28|communica|Individual|||
|||||company’s 2015 annual report, no material has been provided yet|
||tion||||
|Reception (times)|||17||
|Number of hospitality|||0||
|Number of individual reception|||17||
|Number of other reception|||0||
|Disclosed, released or let out majorundisclosed information|||||
||||No||

2. From the end of reporting period to the disclosure date, reception of research, communication and interview
√Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Time|Way|Type||Basic situation index of investigation|
|||||Investor surnamed Lin in Guangzhou inquired about the implementation of|
||Telephone||||
|2016-01-12|communica|Individual||commitments on reorganization made by the company’s strong shareholder, no|
||tion|||material has been provided yet|
||Telephone|||Investor surnamed Wang in Shenzhen inquired about 2015 annual business|
|2016-01-15|communica|Individual|||
|||||performance of the company, no material has been provided yet|
||tion||||
||Telephone|||Investor surnamed Chen in Heilongjiang inquired about 2015 annual business|
|2016-02-25|communica|Individual|||
|||||performance of the company, no material has been provided yet|
||tion||||
||Telephone|||Investor surnamed Li in Hubei inquired about 2015 annual business performance|
|2016-03-04|communica|Individual|||
|||||of the company, no material has been provided yet|
||tion||||
|Reception (times)|||4||
|Number of hospitality|||0||
|Number of individual reception|||4||
|Number of other reception|||0||
|Disclosed, released or let out major|||No||
|undisclosed information|||||

Section V. Iimportant Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during the Reporting Period
√Applicable□ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years (including the reporting period)
According to the auditing reports issued by certified public accountants, the net income realized in nearly three years (including the reporting period) was used to make up the losses in the previous year; the undistributed profit during this reporting remained a minus. The Company did not take profit allocation nor capitalization of capital reserve during the reporting period.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
|||||||
|-|-|-|-|-|-|
|||Net profit attributable to|Ratio in net profit attributable to|||
|Year for||||Amount for|Proportion for|
||Amount for cash bonus|common stock shareholders of|common stock shareholders of|||
|bonus||||cash bonus by|cash bonus by|
||(tax included)|listed company in consolidation|listed company contained in|||
|shares||||other ways|other ways|
|||statement for bonus year|consolidation statement|||
|2015|0.00|-7,477,866.40|0.00%|0.00|0.00%|
|2014|0.00|2,503,486.47|0.00%|0.00|0.00%|
|2013|0.00|-2,199,319.96|0.00%|0.00|0.00%|

 The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is positive but no plan of cash dividend proposed of common stock
□ Applicable√ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the year.
III. Implementation of commitment
1. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
√Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Com|Com||
|||Type|||||
||Prom|||mitm|mit||
|Commitments|||Content of commitments|||Implementation|
||ise|of||ent|ment||
|||||date|term||

||||||||
|-|-|-|-|-|-|-|
|||com|||||
|||mitm|||||
|||ents|||||
||||On May 30, 2007, Luoniushan Co.,||||
||||Ltd. made commitments in the||||
||||Company’s "Instructions for reform of||||
|||||||Since the Company's|
||||non-tradable shares" (Revision) and||||
|||||||implementation of reform|
||||"Instructions for reform of||||
|||||||of non-tradable shares, the|
||||non-tradable shares" (Abstract of||||
|||||||Company has avoided the|
||||revision) that in view of Dadonghai||||
||Luon|other||||risk of delisting and|
||||Company’s losses in successive years||With||
||iusha|co||||improved the financial|
|Commitments for|||and on the verge of delisting, in order|2014-|in 3||
||n|mm||||situation accordingly with|
|Share Merger Reform|||to reverse the company's business|06-27|year||
||Co.,|itm||||efforts of all parties. Up to|
||||difficulties, improve profitability and||s||
||Ltd|ents||||now, Luoniushan Co.,|
||||recover the continuous business||||
|||||||Ltd. has not found the|
||||capacity, Luoniushan Co., Ltd., the||||
|||||||appropriate restructuring|
||||controlling shareholder of Dadonghai||||
|||||||parties for the company’s|
||||Company made commitments to||||
|||||||reorganization.|
||||actively seek restructuring parties to||||
||||reorganize the assets of Dadonghai||||
||||Company at the appropriate time.||||
|Commitments in report of acquisition or|||||||
|equity change|||||||
|Commitments in assets reorganization|||||||
|Commitments make in initial public offering|||||||
|or re-financing|||||||
|Equity incentive commitment|||||||
||||Based on the confidence in the future||||
||||sustainable development of||||
||||Dadonghai, as well as the long-term||||
|||com|||||
||||investment value of domestic capital||||
|||mitm|||||
||||market, Luoniushan Co., Ltd. shall||||
|||ents|||||
||||take practical action and participate in||||
||Luon|of|||||
||||maintaining the capital market||With||
||iusha|incre|||||
||||stability. In accordance with the|2015-|6||
|Other commitments for medium and small|||||||
||n|asing||||Completed|
|shareholders|||relevant provisions of China Securities|07-10|mon||
||Co.,|or|||||
||||Regulatory Commission and Shenzhen||ths||
||Ltd|decre|||||
||||Stock Exchange, Luoniushan Co., Ltd.||||
|||asing|||||
||||plans to take chances to increase||||
|||share|||||
||||holding of shares in Dadonghai||||
|||s|||||
||||through Shenzhen Stock Exchange||||
||||within six months from the date of this||||
||||announcement, the amount of||||

||||
|-|-|-|
|||increased holding of shares should be|
|||no less than RMB 5 million yuan, and|
|||does not automatically reduce holding|
|||of shares in Dadonghai during the|
|||increased holding period, within six|
|||months after the increased holding of|
|||shares and within the legal time limit.|
|Completed on time(Y/N)|Yes||
|If the commitments is not fulfilled on time,|||
|shall explain the specify reason and the next|N/A||
|work plan|||

2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in forecasting period, explain reasons of reaching the original profit forecast
□ Applicable√ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party□ Applicable√ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable√ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the financial report of last year
□ Applicable√ Not applicable
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.
VII. Major accounting errors within reporting period that needs retrospective restatement□ Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
√Applicable□ Not applicable
New established subsidiary: Sinopharm Holding Guangzhou Medical Management Co., Ltd.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
|||
|-|-|
|Name of domestic accounting firm|BDO CHINA Shu Lun Pan Certified Public Accountants LLP|
|Remuneration for domestic accounting firm (in 10||
||31|
|thousand Yuan)||
|Continuous life of auditing service for domestic||
||5|
|accounting firm||
|Name of domestic CPA|Liu Zebo, Zhu Meirong|

Re-appointed accounting firms in this period
□Yes√No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable□ Not applicable
On 29 January 2015, the Company holding the
4th
meeting of
8th
session of the Board, and decided to appointed BDO CHINA Shu Lun Pan Certified Public Accountants LLP as the auditing institute of the internal control for year of 2015 and the decision has been deliberated and approved in general meeting of 2014. During the period, auditing fee 80,000 Yuan in total has been paid to the institute for internal control auditing.
X. Particular about suspended and delisting after annual report disclosed
□ Applicable√ Not applicable
XI. Bankruptcy reorganization
□ Applicable√ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period
XIII. Penalty and rectification
□ Applicable√ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable√ Not applicable
XV. Implementation of thecompany’s stock incentive plan, employee stock ownership plan or other employee incentives
□ Applicable√ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.
XVI. Major related transaction
1. Related transaction with routine operation concerned
√Applicable□Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Whethe|||||
|||||||||Trading|r over|||||
|||||||Related||||||||
|||||||||limit|the|Clearin|Availabl||Index|
|||Type of|Content|||transacti|Proporti|||g form||Date of||
||||of|Pricing|Related|on|on in|approve|approve||e similar||of|
|Related|Relation|related|related|principl|transacti|amount|similar|||for||disclosu||
|party|ship|transacti||||||d (in 10|d|related|market||disclos|
|||on|transacti|e|on price|(in 10|transacti|||transacti||re||
||||on|||thousan|ons|thousan|limited||price||ure|
|||||||d Yuan)||||on||||
|||||||||d Yuan)|or not|||||
||||||||||(Y/N)|||||
|||||||||||Same as||||
||||||||||||Same as|||
|||||||||||the||||
||First|||||||||||||
||||||||||||the|||
|Luoniush|||Accom|||||||transacti||||
||majority|Consum||Market|Market||||||transacti|||
|an Co.,|||modatio|||2.9|0.18%|0|Yes|on with||||
||sharehol|ption||price|price||||||on with|||
|Ltd.|||n|||||||non-rela||||
||der||||||||||non-rela|||
|||||||||||ted||||
||||||||||||ted party|||
|||||||||||party||||
|Total||||--|--|2.9|--|0|--|--|--|--|--|
|Detail of sales return with major||||||||||||||
|||||N/A||||||||||
|amount involved||||||||||||||
|Report the actual implementation of||||||||||||||
|the daily related transactions which||||||||||||||
|were projected about their total||||N/A||||||||||
|amount by types during the reporting||||||||||||||
|period||||||||||||||
|Reasons for major differences||||||||||||||
|between trading price and market||||Not applicable||||||||||
|reference price||||||||||||||

2. Related transactions by assets acquisition and sold
□ Applicable√ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable√ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
□ Applicable√ Not applicable
The Company had no contact of related credit and debt in the reporting period.
5. Other related transactions
□ Applicable√ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable√ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable√ Not applicable
No contract for the Company in reporting period
(3) Leasing
√Applicable□ Not applicable
Note of leasing
||||
|-|-|-|
|Item (storefront)|Tenantry|Lease term|
|Dilute room|Zhong Liping|2011-9-1 to 2016-8-31|
|Physical therapycenter|Li Fumin|2011-11-20 to 2015-11-19 (terminated on 25 May 2015)|
|Western foodbar|Li Fumin|2013-11-15 to 2016-4-14 (terminated on 25 May 2015)|
|Chineserestaurant|Sanya Dadonghai Dragon PalaceDelicacy|2012-7-1 to 2016-4-30|
|Seasideshopping mall|Fu Yumei|2010-10-1 to 2016-4-30 (terminated on 31 August 2015)|
|5S MarketingCenter|Sanya Haiyuan aodar TourismDevelopment Co., Ltd.|2014-11-1 to 2015-10-31|

Gains/losses to the Company from projects that reached over10% in total profit of the Company in reporting period
√Applicable□ Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Leasing||||||||
|||||||||The|||
||||assets|||Leasing|Basis for||||
|||||||||impact of|Whether||
||Name of||involved||Lease|income|determinin||||
|Name of||Leasing||Lease start||||leasing|be related|Associatio|
||the leasing||in the||terminatio|(in 10|g the||||
|lessor||assets||date||||income on|transaction|n relation|
||party||amount (in||n date|thousand|leasing||||
|||||||||the|s||
||||10|||yuan)|income||||
|||||||||company|||
||||thousand||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||yuan)||||||||
||Sanya||||||||||
||Dadonghai|||||||Accounted|||
|The||Chinese||2012-07-0|2016-04-3||||||
||Dragon||1,500|||180|Contract|for 11.33%|No|N/A|
|Company||restaurant||1|0||||||
||Palace|||||||of revenue|||
||Delicacy||||||||||

2. Major Guarantee
□Applicable√ Not applicable
The Company had no guarantee in the reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable√ Not applicable
The Company had no trust financing in the reporting period.
(2) Entrusted loans
□ Applicable√ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable√ Not applicable
No other material contracts for the Company in reporting period
XVIII. Explanation on other significant events
□ Applicable√ Not applicable
The Company had no explanation on other significant event in the reporting period.
XIX. Significant event of subsidiary of the Company
□ Applicable√ Not applicable
XX. Social responsibility
□ Applicable√ Not applicable
XXI. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but
not fully cashed on the approval date of annual report
No
Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Share Capital
1. Changes in Share Capital
In Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||New||Capitalizatio|||||
|||Proportio||Bonus||||||
||Amount||shares||n of public|Others|Subtotal|Amount|Proportion|
|||n||shares||||||
||||issued||reserve|||||
|I. Restricted shares|15,535,200|4.27%||||-462,000|-462,000|15,073,200|4.14%|
|1. State-owned shares||||||||||
|2. State-owned corporate||||||||||
||3,029,400|0.83%||||-660,000|-660,000|2,369,400|0.65%|
|shares||||||||||
|3. Other domestic shares|12,505,800|3.44%||||198,000|198,000|12,703,800|3.49%|
|Including: Domestic||||||||||
||12,373,800|3.40%||||198,000|198,000|12,571,800|3.45%|
|legal person shares||||||||||
|Domestic natural person||||||||||
||132,000|0.04%||||0|0|132,000|0.04%|
|shares||||||||||
|II. Unrestricted shares|348,564,800|95.73%||||462,000|462,000|349,026,800|95.86%|
|1. RMB common shares|260,564,800|71.56%||||462,000|462,000|261,026,800|71.69%|
|2.Domestically listed||||||||||
||88,000,000|24.17%||||0|0|88,000,000|24.17%|
|foreign shares||||||||||
|III. Total shares|364,100,000|100.00%||||||364,100,000|100.00%|

 Reasons for share changed
√ Applicable□ Not applicable
In the process of subsequent work of share-trading reform of the Company, according to relevant regulations the release procedures were in process and part of the shareholders handling the payment of account paid in advance. Thus, the share structure changes in the report period but retained the same in total share capital.
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer of share changes
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
2. Changes of restricted shares
√ Applicable□ Not applicable
In Share
||||||||
|-|-|-|-|-|-|-|
||Number of||||||
|||Number|||||
||shares||Number of|Number of|||
|||of shares|||||
||restricted||new shares|shares|Restriction||
|Shareholders’ name||released||||Released date|
||at||restricted|restricted at|reasons||
|||in the|||||
||Period-begi||in the Year|Period-end|||
|||Year|||||
||n||||||
||||||Legal|After remove|
|Yangpu Tongrong Investment|4,420,800|0|198,000|4,618,800|commitment in|restricted procedures|
|Management Consultation Co., Ltd.|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Sanya Zhongxing Development Co.,|2,541,000|0|0|2,541,000|commitment in|restricted procedures|
|Ltd.|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Sanya Real Estate Valuation Agent|924,000|0|0|924,000|commitment in|restricted procedures|
||||||share reform|complete|
||||||Legal|After remove|
|Hainan Hong Kong-Macao|||||||
|International Trade Development Co.,|924,000|0|0|924,000|commitment in|restricted procedures|
|Ltd.|||||share reform|complete|
||||||Legal|After remove|
|Haikou Dongfang Urban credit|924,000|0|0|924,000|commitment in|restricted procedures|
|Cooperative|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Hainan Branch of Bank of|924,000|0|0|924,000|commitment in|restricted procedures|
|Communications Co., Ltd.|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Guangzhou Dongzhan Industrial Co.|924,000|0|0|924,000|commitment in|restricted procedures|
|LTD|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Shenyang Jin’an Industrial|831,600|0|0|831,600|commitment in|restricted procedures|
|Corporation|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Hainan Dadonghai Tourism Co.|739,200|0|0|739,200|commitment in|restricted procedures|
||||||share reform|complete|
||||||Legal|After remove|
|Guangzhou Company of Hainan|660,000|0|0|660,000|commitment in|restricted procedures|
|International Investment Co., Ltd.|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Southern Industrial and Trading|660,000|0|0|660,000|||
|Corporation|||||commitment in|restricted procedures|

||||||||
|-|-|-|-|-|-|-|
||||||share reform|complete|
||||||Legal|After remove|
|Beijing Xueli Clothing Accessories|132,000|0|0|132,000|commitment in|restricted procedures|
|Co., Lt.d|||||||
||||||share reform|complete|
||||||Legal|After remove|
|Xiao Tiefeng|132,000|0|0|132,000|commitment in|restricted procedures|
||||||share reform|complete|
||||||Legal|After remove|
|Sanya Wangli Building Materials Sales|92,400|0|0|92,400|commitment in|restricted procedures|
||||||share reform|complete|
||||||Legal|After remove|
|Hainan Nongkeng Sanya Timber Mill|46,200|0|0|46,200|commitment in|restricted procedures|
||||||share reform|complete|
||||||Legal|After remove|
|Hainan Dongda Ocean Transport|660,000|462,000|0|0|commitment in|restricted procedures|
|Company|||||||
||||||share reform|complete|
|Total|15,535,200|462,000|198,000|15,073,200|--|--|

II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable√ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and liability structure
□ Applicable√ Not applicable
3. Existing internal staff shares
□ Applicable√ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Total preference||
|Total common||||Total preference||shareholders with||
|stock||Total common stock shareholders at||shareholders with||voting rights||
|shareholders in|20,633|end of last month before annual report|19,865|voting rights recovered|0|recovered at end of|0|
|reporting||disclosed||at end of reporting||last month before||
|period-end||||period||annual report||
|||||||disclosed||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Particulars about shares held above 5% by shareholders or top ten shareholders|||||||||
||||Total||Amount||Number of share||
|||||||Amount of|||
|||Proportio|shareholders|Changes in|of||pledged/frozen||
|||||||un-restricte|||
|Full name of Shareholders|Nature of|n of|at the end|report|restricted||||
||shareholder|shares||||d shares|State of||
|||held|of report|period|shares|||Amount|
|||||||held|share||
||||period||held||||
|Luoniushan Co., Ltd.|Domestic nonstate-ownedcorporate|16.81%|61,190,270|0|0|61,190,270|||
|Pan Guoping|Domestic natureperson|8.48%|30,879,791|0|0|30,879,791|||
||||||||Pledged|30,000,000|
|Guangdong New ValueInvestment Co., Ltd. -Securities Investment Fund|Other|5.02%|18,293,924|18,293,924|0|18,293,924|||
|Guangdong Yuecai Trust Co.,Ltd. - securities investmentcapital trust scheme|Other|3.13%|11,410,000|11,410,000|0|11,410,000|||
|First Shanghai SecuritiesLimited|Foreign corporate|2.68%|9,760,998|9,760,998|0|9,760,998|||
|Changxin Fund- ShanghaiPudong Development Bank -Gold Investment Asset No.2Management Plan|Other|1.68%|6,106,235|6,106,235|0|6,106,235|||
|Yangpu Tongrong InvestmentManagement Consultation Co.,Ltd.|Domestic nonstate-ownedcorporate|1.27%|4,618,800|198,000|4,618,800|0|||
|Huarong International TrustCo., Ltd – Huarong·Yunhuisecurities investment capitaltrust scheme|Other|1.24%|4,500,000|4,500,000|0|4,500,000|||
|CITRINE CAPITAL LIMITED|Foreign corporate|0.90%|3,265,200|0|0|3,265,200|||
|Sun Huiming|Domestic natureperson|0.79%|2,888,690|2,888,690|0|2,888,690|||
|Strategy investors or general legal person|||||||||
|||N/A|||||||
|becomes top 10 shareholders due to rights issued|||||||||
|||The Company is unknown whether there exists associated relationship or belongs to the|||||||
|Explanation on associated relationship or|||||||||
|||consistent actor regulated by the Management Measure of Information Disclosure on|||||||
|accordant action among the aforesaid shareholders|||||||||
|||Change of Shareholding for Listed Company among the other shareholders.|||||||
|Particular about top ten shareholders with un-restrict shares held|||||||||

|||||
|-|-|-|-|
|||Type of shares||
|Shareholders’ name|Amount of un-restrict shares held at Period-end|||
|||Type|Amount|
|Luoniushan Co., Ltd.|61,190,270|RMB common||
||||61,190,270|
|||share||
|Pan Guoping|30,879,791|Domestically listed||
||||30,879,791|
|||foreign share||
|Guangdong New Value Investment Co., Ltd. -Securities Investment Fund|18,293,924|RMB common||
||||18,293,924|
|||share||
|Guangdong Yuecai Trust Co., Ltd. - securitiesinvestment capital trust scheme|11,410,000|RMB common||
||||11,410,000|
|||share||
|First Shanghai Securities Limited|9,760,998|Domestically listed||
||||9,760,998|
|||foreign share||
|Changxin Fund- Shanghai Pudong DevelopmentBank - Gold Investment Asset No.2 ManagementPlan|6,106,235|||
|||RMB common||
||||6,106,235|
|||share||
|Huarong International Trust Co., Ltd –Huarong·Yunhui securities investment capital trustscheme|4,500,000|||
|||RMB common||
||||4,500,000|
|||share||
|CITRINE CAPITAL LIMITED|3,265,200|Domestically listed||
||||3,265,200|
|||foreign share||
|Sun Huiming|2,888,690|Domestically listed||
||||2,888,690|
|||foreign share||
|Sanya Rural Credit Cooperative|2,310,000|RMB common||
||||2,310,000|
|||share||
|Expiation on associated relationship or consistent||||
||The Company is unknown whether there exists associated relationship or belongs to the|||
|actors within the top 10 un-restrict shareholders||||
||consistent actor regulated by the Management Measure of Information Disclosure on|||
|and between top 10 un-restrict shareholders and||||
||Change of Shareholding for Listed Company among the other shareholders.|||
|top 10 shareholders||||
|Explanation on shareholders involving margin||||
|business about top ten common stock shareholders|N/A|||
|with un-restrict shares held||||

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: community collective holding
Type of controlling shareholders: legal person
||||||
|-|-|-|-|-|
||Legal||||
||person/perso|Date of|||
|Controlling shareholders|||Organization code|Main operation business|
||n in charge|foundation|||
||of the unit||||
|||||Business scope: planting and breeding industry;|
|||||initiating industry; real estate development and|
|||||management; building decoration works; sales|
|||||of agricultural and animal by-products, aquatic|
|||||products and feed processing; machinery and|
|||||automobile and motorcycle parts, electronic|
||||Unified social credit|products, metal materials (except for the|
|Luoniushan Co., Ltd.|Xu Zili|1987-12-19|code|monopoly), chemical products (except for the|
||||9146000284089747P|monopoly)), household appliances, modern|
|||||office supplies, stationery, daily necessities,|
|||||building materials, sales of agricultural and|
|||||native products; the development and|
|||||construction of trading market; leasing services;|
|||||warehousing services; collecting and remitting|
|||||water and electricity costs.|
|Equity of other domestic/oversea|||||
|listed company control by|||||
||Found more details in full text of Annual Report 2015 of Luoniushan Co., Ltd.(Short form of the||||
|controlling shareholder as well as|stock: Luoniushan, Stock code: 000735)||||
|stock-joint in report period|||||

Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
The Company had no changes of controlling shareholders in reporting period
3. Actual controller of the Company
Nature of actual controller: domestic natural person
Type of actual controller: natural person
||||
|-|-|-|
|||Whether obtained right of residence of other countries or|
|Name of actual controller|Nationality||
|||regions or not|
|Xu Zili|P.R.C|No|
||Xu Zili, male, was born in 1966, is a senior engineer with a master degree. He||
||successively served as Vice President of Hubei Huangshi Mine Bureau Machinery;||
||General Manager of Haikou Animal Husbandry Machinery Engineering Co., Ltd.;||
||Chairman of Tianjin Baodi Agricultural Technology Co., Ltd.; Vice Chairman and||
|Profession and title in latest five years|General Manager of the Company from August 2006 to November 2011; serves as||
||Chairman of the Company since November 2011; he took as the 6th CPPCC member of||
||Hainan Province, the 13th session of the standing committee of CPPCC of Haikou City,||
||the deputy chairman of national federation of industry and agriculture industry chamber||
||of commerce and the deputy chairman of Hainan Entrepreneur Society.||
|Listed company in and out of China|N/A||

||
|-|
|controlled in past decades|

Changes of actual controller in reporting period
□ Applicable√ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
Actual controller controlling the Company by entrust or other assets management
□ Applicable√ Not applicable
4. Particulars about other legal person shareholders with over10% shares held
□ Applicable√ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers, restructuring side and other commitment subjects
□ Applicable√ Not applicable
Section VII. Preferred Stock
□ Applicable√ Not applicable
The Company had no preferred stock in the Period.
Section VIII. Particulars about Directors, Supervisors, Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Amount|Amount|||
||||||||Shares||||Shares|
|||Wor||||||of shares|of shares|||
||||||||held at|||Other|held at|
|||king||||||increased|decreased|||
||||||Start dated of office|End date of office||||||
||Title||Sex|Age|||period-b|||changes|period-e|
|Name||statu|||term|term||in this|in this|||
||||||||egin|||(share)|nd|
|||s||||||period|period|||
||||||||(Share)||||(Share)|
|||||||||(Share)|(Share)|||
|||Curr||||||||||
|Li||ently||||||||||
|Yuanbi|Chairman,|in|M|65|2001-10-25|2017-05-22|0|0|0|0|0|
||General Manager|||||||||||
|n||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|||ently||||||||||
|Zhao||||||||||||
||Independent|in|F|63|2014-05-22|2017-05-22|0|0|0|0|0|
|Man|Director|||||||||||
|||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|Tang||ently||||||||||
|Guopin|Independent|in|M|51|2014-05-22|2017-05-22|0|0|0|0|0|
||Director|||||||||||
|g||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|Leng||ently||||||||||
|Mingqu|Independent|in|M|60|2014-05-22|2017-05-22|0|0|0|0|0|
||Director|||||||||||
|an||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|||ently||||||||||
|Li Wei|Director|in|M|54|2002-06-16|2017-05-22|0|0|0|0|0|
|||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|Liu||ently||||||||||
||Director||M|47|2002-06-16|2017-05-22|0|0|0|0|0|
|Juntao||in||||||||||
|||offic||||||||||

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||e||||||||||
|||Curr||||||||||
||Chairman of|ently||||||||||
|Huang||||||||||||
||supervisory|in|M|46|2002-06-16|2017-05-22|0|0|0|0|0|
|Wencai||||||||||||
||committee|offic||||||||||
|||e||||||||||
|||Curr||||||||||
|||ently||||||||||
|Wang||||||||||||
||Supervisor|in|F|49|2011-06-16|2017-05-22|0|0|0|0|0|
|Jialing||||||||||||
|||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|Liu||ently||||||||||
|Xiangh|Supervisor|in|M|39|2014-05-22|2017-05-22|0|0|0|0|0|
|ai||offic||||||||||
|||e||||||||||
|||Curr||||||||||
|Fu||ently||||||||||
||Person in charge|||||||||||
|Zongre||in|M|48|2015-04-15|2017-05-22|0|0|0|0|0|
||of finance|||||||||||
|n||offic||||||||||
|||e||||||||||
|||Curr||||||||||
||Vice president &|ently||||||||||
|Wang||||||||||||
|Hongju|secretary of the|in|F|39|2008-04-27|2017-05-22|0|0|0|0|0|
|an|Board|offic||||||||||
|||e||||||||||
|||Leav||||||||||
|Chen||e the||||||||||
||CFO||F|51|2014-10-18|2015-04-01|0|0|0|0|0|
|Zhen||offic||||||||||
|||e||||||||||
|Total|--|--|--|--|--|--|0|0|0|0|0|

 II. Changes of directors, supervisors and senior executives
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reasons|
|Chen Zhen|CFO|Leave the post|2015-04- 01|Leaving for personal reason|

III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive
Major working experience of directors, supervisors and senior executive at the present in latest five years
Directors
Mr. Li Yuanbin: born in June 1950, Han nationality, Master degree, MBA degree, senior engineer. He once held the position of Chairman of Board of Haikou Haiyuan Co. Ltd and Yangpu Tiandi Sunshine Industry Co., Ltd, director and general manager of the Company, now he is chairman of the Board and general manager, vice chairman of HainanEntrepreneurs’ Association, and permanent member of Hainan Federation of Industry Chamber of Industry& Commerce and Vice-president of Hainan Provincial Association for Beverages Hotels and Food, and Vice-president of Hubei Commerce Association in Hainan Province.
Mr. Liu Juntao: born in Oct. 1968, Han nationality, undergraduate degree, economist. Mr. Liu once held the position of deputy director of Construction Bank branch, secretary of the Board of Director of Luoniushan Co. Ltd., Deputy General Manager of the Company and Deputy General Manager of Softto Co., Ltd., Secretary of the Board of Tianmao Industry Group Co., Ltd., currently hold the post of Assistant of GM and secretary of the Board of Tianping Auto Insurance Co., Ltd. Serve as the director of the Company since 2002.
Mr. Li Wei: born in Sep. 1961, Master Degree, CPA, Party member. Mr. Li once held the position of finance director of Yingshan County Silk Making Plant, director and vice director of Yingshan county auditing office, bailiff of Yingshan county Chengguan county, supervisor of Hainan Province Internal Auditing Institute, he held the position of deputy general manager and finance officer. Now, he serves as GM of Sanya Haiya Toutism Co., Ltd. right now; he held the position of director of the Company since 2002.
Independent Directors
Ms. Zhao Man, born in Feburary 1952, member of the CPC, Doctor of Economic, a professor and doctorial tutor. Professional affiliations so far: member of social sciences commission of the Ministry of Education, committee of experts member of the MHRSS, committee of experts member of the Ministry of Civil Affairs, director of academic council of the Center for Social Security Study of Wuhan University, the key research center for social sciences by CECC, standing director of The China Association for Labor Studies, standing director of China Social Insurance Association, member of Advisory Committee of Hubei Provincial Peoples Government, decision-support expert of CPC Hubei Provincial Committee, consultant expert of budget expert group for the WuhanPeople’s Congress Standarding Committee and member of Expert Consultation Committee of CPC Hubei Provincial Committee Organization Department. Now she serves as independent director of Hubei Kaile Technology Co., Ltd. and she took post as independent director of the Company since May 2014.
Mr. Leng Mingquan, born in April 1955, on-job graduate and Master of Administration. He was secretary and section chief of CPC Suizhou Municipal propaganda Department and director of Haikou Office of the Suizhou Government. Now he serves as executive vice president, secretary and legal representative of the Confederation of Hainan Enterprise and Hainan Association of Enterpreneurs; executive chairman of Hainan labor relations tripartie meeting; inspector of Hainan Procuratorate; police-style inspector of Hainan Provincial Public Security Department; specially-invited inspector of Hainan Provincial Supervision Department; member of Hainan Provincial Literature Dederation; member of Hainan Federation of Social Science; member of Hainan Provincial Arbitration Committee; director of Hainan Enterprise Credit Evaluation Administration; Chairman of Hainan Dashun Movie& TV Cultrual Communication Co., Ltd.; independent director of Hainan Yedao Group and
independent director of Haima Automobile Gourp Co., Ltd. He serves as independent directors of the Company
since May 2014.
Mr. Tang Guoping, born in August 1964, graduated from Zhongnan University of Economics and Law. Hold Doctor Degree, a professor, Chinese CPA and member of CPC. He was awarded the second-class award of the Ministry of Education issued the second session of the humanities and social scientific research award of the national ordinary high school, the third-class award of theHubei Province People's Government issued the outstanding teaching achievement award, the Ministry of Finance cross century academic leaders, the Ministry of education "for outstanding young teachers Subsidy Scheme" selected persons, Hubei Province has outstanding contribution expert of the youth, Hubei famous teacher (high education teacher) and other awards and honors, served as independent director of Wuhan Boiler Co., Ltd. He participated in (2012) the China Securities Regulatory Commission independent director training, and obtained the post qualification. He serves as independent directors of the Company since May 2014.
Supervisors
Mr. Huang Wencai: was born in Jan. 1969, undergraduate degree, Mr. Huang once held the position of vice director of Haikou meat association factory, director of Haikou food Co. Ltd. and assistant of general manager of Haikou food Co. Ltd., deputy GM of Haikou Luoniushan Food Processing Co., Ltd. and currently held the post of deputy GM of Hainan Luoniushan Meat Co., Ltd.; he held the position of Chairman of Supervisory Committee of the Company since 2002.
Ms. Wang Jialing: was born in Feb. 1966, once served as accountant of financial dept of the Company; she serves as staff supervisor of the Company since 2011.
Mr. Liu Xianghai, born in April 1976, member of CPC, a senior accountant and senior economist; he was the manager of finance department ( finance manager) of Shandong Highway& Bridge Construction Co., Ltd., and CFO of the Haikou Xinxi Trading Co., Ltd. He serves as employee supervisor of the Company since May 2014. Ms. Wang Hongjuan, was born in Feb. 1976, Undergraduate Degree, an attorney; she serves as supervisor of the Company and Office Director, now she serves as vice president and secretary of the Board of the Company. Mr. Fu Zongren, born in February 1967, intermediate accountant, served as financial manager of the Company, financial controller of Sanya Yalong Bay Universal Resort, and general manager of Financial Management Center of Hainan Sunup Group, and serves as the financial administrator of the Company since April 2015.
Post-holding inshareholder’s unit
□ Applicable√ Not applicable
Post-holding in other unit
□ Applicable√ Not applicable
Punishment of securities regulatory authority in recent three years to thecompany’s current and outgoing directors, supervisors and senior management during the reporting period
□ Applicable√ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Pursuant to the Company's Articles of Association, the pay of directors, supervisor personnel are approved by general meeting after the review of the board of directors and board of supervisors respectively; the pay of senior management is approved by the board. Directors, supervisors and senior managers get their payment corresponding to their post provided by the general meeting and the board meeting.
2. In line with performance of their duties, directors, independent directors and supervisors should receive the reimbursement from the Company on travel expense and Articles of Association implementation expense. Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Total|Whether|
||||||remuneration|remuneration|
|||||Post-holding|||
|Name|Title|Sex|Age||obtained from the|obtained from|
|||||status|||
||||||Company (before|related party of|
||||||taxes)|the Company|
|||||Currently in|||
|Li Yuanbin|Chairman,|M|65||45.99|No|
||General Manager|||office|||
|||||Currently in|||
|Zhao Man|Independent|F|63||3.6|No|
||Director|||office|||
|||||Currently in|||
|Tang Guoping|Independent|M|51||3.6|No|
||Director|||office|||
|||||Currently in|||
|Leng Mingquan|Independent|M|60||3.6|No|
||Director|||office|||
|||||Currently in|||
|Liu Juntao|Director|M|47||3.6|No|
|||||office|||
|||||Currently in|||
|Li Wei|Director|M|54||3.6|No|
|||||office|||
|||||Currently in|||
|Huang Wencai|Supervisor|M|46||1.8|No|
|||||office|||
|||||Currently in|||
|Liu Xianghai|Supervisor|M|39||12.04|No|
|||||office|||
|||||Currently in|||
|Wang Jialing|Supervisor|F|49||10.35|No|
|||||office|||
||Vice president||||||
|||||Currently in|||
|Wang Hongjuan|and Secretary of|F|39||28.02|No|
|||||office|||
||the Board||||||
||Person in charge||||||
|Chen Zhen||F|51|Leave the post|4.28|No|
||of finance||||||

||||||||
|-|-|-|-|-|-|-|
||Person in charge|||Currently in|||
|Fu Zongren||M|49||18.36|No|
||of finance|||office|||
|Total|--|--|--|--|138.84|--|

 Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable√ Not applicable
V. Particulars of workforce
1. Number of staff, professional composition and education background
|||
|-|-|
|The number of current employees of parent company (people)|152|
|The number of current employees of main subsidiaries (people)|0|
|Total number of current employees (people)|152|
|The total number of current employees to receive pay (people)|152|
|The total number of retired staff and workers that the parent||
||0|
|company and main subsidiaries need to bear the costs (people)||
|Professional composition||
|Category of professional composition|Number of professional composition（people）|
|Production staff|80|
|Salesman|6|
|Technical staff|23|
|Financial staff|15|
|Administrative staff|28|
|Total|152|
|Education background||
|Category of education|Number（people）|
|Junior college above|28|
|High shool and below|124|
|Total|152|

 2. Remuneration policy
The compensation ofcompany’s employees includes wages, bonuses, and benefits, which take the principle of distributing according to the work, giving priority to efficiency and taking count of equity simultaneously, wage increase adapting to thecompany’s business development and benefits improvement, optimizing the labor allocation, pay level agreeing with the local average in the same industry. Set or adjust the wage standards in accordance with the job valuation result, the local pay level in the same industry, thecompany’s annual operation target and operational budget, and the individual performance.
3. Training programs
Strengthen the training of senior executives by combining the voluntary organization of training and the external
training, widen the thought, and enhance the decision-making ability and modern operation and management
ability. Strengthen the training of middle management, improve the overall quality of managers, improve the knowledge structure, and enhance the comprehensive management capability, innovation capability and implementation capability. Strengthen the training of professional and technical personnel, improve the theoretical level of technology and professional skills, and enhance the technological innovation, technical transformation capability. Strengthen the technical training of hotel service staff, constantly improve the professional skills and service skills of service staff, and enhance the ability to strictly fulfill their responsibilities. Strengthen the cultural training, improve the cultural level of personnel at all levels, and enhance the overall cultural quality of the staff team.
4. Labor outsourcing
□ Applicable√ Not applicable
Section IX. Corporate Governance
I. Corporate governance of the Company
During reporting period, the Company further completed governance structure and system, perfected internal control mechanism and system construction and normalized corporate operation, strictly in accordance with relative rules and regulations of the Company Law, Securities Law and Listing Rules. Till end of reporting period, governance structure of the Company is basically in line with requirement of the Governance Rules of Listed Company.
1. During the reporting period, theCompany’s general meeting, board meeting and supervisors meeting exercised the decision rights, execution rights and supervision rights respectively with clear responsibilities, mutual restrict, operation specification and effective operation. The procedures of meeting holding, proposal review, and decision-making in these three meetings were in compliance with relevant provisions. The board meeting comprises strategy and development committee, audit committee, nomination committee, remuneration and appraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing a strong support for the boardmeeting’s major scientific management decision.
2. In strict accordance with the requirements of Rules Governing the Listing of Stock, directors performed its duties with honest, trust, diligence and independence, protected the legitimate rights and interests of minority shareholders with loyalty to their interests; Supervisors effectively supervised and checked independent directors, senior management and their financial situations.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for listed company from CSRC?
□Yes√ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance for listed company from CSRC.
II. Independency of the Company relative to controllingshareholders’ in aspect of businesses, personnel, assets, organization and finance
Statement of Five Independences between the Company and the Controlling Shareholders
1. Business Independence: the Company business operates independently with integrated structure, and is free from horizontal competition with controlling shareholders. The controlling shareholders do not intervene theCompany’s operation either directly or indirectly.
2. Personnel Independence, the Company is independent on controlling shareholders in the aspects of labor, personnel and Remuneration management.
3. Assets Independence: the Company has proprietary rights and control rights on its assets. Controlling shareholders occupy no assets or funds of the listed company.
4. Institution Independence: the company's board of directors and board of supervisors, managers and other internal institutions operate independently and manage independently with integrated structures.
5. Financial Independence: the Company has an independent financial sector, and sets up independent accounting system and financial management system. The Company opens independent bank accounts and pay independent taxes to laws without controllingshareholders’ intervention.
III. Horizontal competition
□ Applicable√ Not applicable
IV. In the report period, the Company held annualshareholders’ general meeting and extraordinaryshareholders’ general meeting
1. AnnualShareholders’ General Meeting in the report period
|||||||
|-|-|-|-|-|-|
|Session of||Ratio of investor||Date of||
||Type||Date||Index of disclosure|
|meeting||participation||disclosure||
|Annual||||||
||||||The “Resolution Notice of Annual Shareholders’|
||Annual|||||
|general|||||General Meeting of 2014” (No.: 2015-008) published|
||general|0.07%|2015-03-10|2015-03-11|on Securities Times, Hong Kong Commercial Daily|
|meeting||||||
||meeting||||and Juchao website (http://www.cninfo.com.cn) dated|
|2014|||||11March 2015 respectively|

Institutional investor
Nil
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore□ Applicable√ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
||||||||
|-|-|-|-|-|-|-|
|The attending of independent directors to Board Meeting|||||||
||Times of Board||||||
||||Times of||||
||meeting|||Times of|||
|Name of||Times of|attending by||Times of|Absent the Meeting for the|
||supposed to|||entrusted|||
|independent director||Presence|communicati||Absence|second time in a row (Y/N)|
||attend in the|||presence|||
||||on||||
||report period||||||
|Zhao Man|5|1|4|0|0|No|
|Tang Guoping|5|1|4|0|0|No|
|Leng Mingquan|5|1|4|0|0|No|
|Times for attending general meeting|||||||
|||1|||||
|from independent directors|||||||

Explanation of absent the Board Meeting for the second time in a row: Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection aboutCompany’s relevant matters
□Yes√No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes□ No
Explanation on advice that accepted/not accepted from independent directors
Suggestion of re-enforce foreign capital introduction and good assets while operated currently main business with purpose of change the single operation in main business; The Company has been working on it and no results come at present.
VI. Duty performance of the special committees under the board during the reporting period The board meeting comprises four special committees, who carry out smoothly their duties accordingly to their working conditions, providing a strong support for the boardmeeting’s major scientific management decision. Each special committee performed their duties as follows:
1. Audit Committee
During the reporting period, the audit committee audited the first quarter and the three quarter financial report of 2015, and the 2015 semi-annual financial report. In the process of annual financial report auditing 2015 process, audit committee members worked in accordance with the relevant requirements by faithfully performing auditcommittee’s responsibilities:
Before the entrance of annual examination certified public accountants, the audit committee members listened to the management statements of the Company's operating condition in 2015 and the financial status as well as the report on annual financial report audit work arrangement of 2014, communicated with annual examination certified public accountants about issues such as personnel structure of the working group, audit plan, risk judgment, annual audit focus and so on; In early January 2016, in annual report audit process, audit committee members listened to the work report by annual examination certified public accountants and the company management; At the middle of March 2016, audit committee members reviewed submitted financial and accounting reports. The financial and accounting reports audited was formatted strictly to Accounting Standards for Business Enterprises and Accounting System for Business Enterprises, and this report fairly reflected theCompany’s assets, liabilities, rights and interests and operating situation without significant errors and omissions. The annual audit report of 2015 by audit institutions was agreed to be submitted to the board.
The Company's board of directors regarded that the external auditors Lixin Certified Public Accountants (special ordinary partnership) faithfully performed the audit responsibility, and suggested to renew as theCompany’s annual financial audit of 2016.
2. Remuneration committee
During the reporting period, the remuneration committee members of the Company board carried out their duties strictly to relevant regulations, inspected remuneration policies and programs for directors, supervisors and senior managers, led the company to perfect the remuneration system, and appraised the performance of directors, supervisors and senior management according to senior manager remuneration appraisal. By the end of the reporting period, the Company has not implemented option scheme.
3. Strategy committee
During the reporting period, the board strategy committee put forward valuable opinions on decision-making such as development planning and investment decisions, thus enhanced the scientific decision-making and core competitiveness of the Company, improved theCompany’s efficiency of major investment decisions and decision quality.
4. Nomination committee
During the reporting period, on April 13, 2015, Ms. Chen Zhen, the former CFO of the Company, requested to
resign the CFO position since April 1, 2015 for personal reasons. On April 14, 2015, the fifth interim meeting of the eighth board of directors of the company decided to engage Mr. Fu Zongren as thecompany’s financial administrator, and his tenure is the same as the eighth board of directors of the company.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes√ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
1. Pursuant to People-oriented Principle, the Company employs outstanding persons in long-term, and admits the best candidates on the premise of openness, fairness, justice. Those who pass trial comprehensive appraisal and be nominated by general managers and approved by the board meeting can be employed as senior management of the Company.
2. The Company adopts a clear appraisal system in which assessment methods are made to the performance and duty fulfillment of senior management. Assessments are carried out monthly and annually by the same level and higher level and the results are taken as factors for post lift and rewards and punishment of senior management. 3. The company sets up effective incentive mechanism, including material incentives and spiritual incentives. The clear rewards and punishments, balance between remuneration and work performance, survival of fittest encourage senior management to make constantly progress and improve their own comprehensive ability which in turn help the Company develop rapidly.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
√ Yes□ No
||
|-|
|Details of major defects in appraisal report of internal control that found in reporting period|
|The company’s board of directors has made self-evaluation to the validity of design and operation of the company’s internal|
|controls up to December 31, 2015 in accordance with the requirements of "Basic Norms of Enterprise Internal Control",|
|"Evaluation Guidelines of Enterprise Internal Control" and other laws and regulations, and issued "2015 annual evaluation report of|
|internal control" of the company, and made following conclusions: during the reporting period, the company has no significant|
|internal control deficiencies.|

2. Appraisal Report of Internal Control
|||
|-|-|
|Disclosure date of full internal control||
||2016-03-26|
|evaluation report||
|Disclosure index of full internal control|Relevant information found in Self-evaluation Report of Internal Control for 2015 published|
|evaluation report|on Juchao Website dated 26 March 2016.|
|The ratio of the total assets of units included in||
|the scope of evaluation accounting for the total||
||100.00%|
|assets on the company's consolidated financial||
|statements||

|||||
|-|-|-|-|
|The ratio of the operating income of units||||
|included in the scope of evaluation accounting||||
|||100.00%||
|for the operating income on the company's||||
|consolidated financial statements||||
|Defects Evaluation Standards||||
|Category|Financial Reports||Non-financial Reports|
||||Major deficiencies: the company is lack of democratic|
||||decision-making process; the company’s|
||Major deficiencies: fraud of directors, supervisors|||
||||decision-making process leads to major mistakes; the|
||and senior management; material misstatements are|||
||||company violates the state laws and regulations and is|
||found in current financial statements by the|||
||||severely punished; serious brain drain of the|
||certified public accountant but are not found in the|||
||||company’s senior management personnel and senior|
||process of internal control; major deficiencies of|||
||||technical staff; frequent negative news on media|
||internal controls found and reported to the|||
||||covering a wide range and the negative effects are not|
||management are not corrected within the required|||
||||eliminated; the company’s significant business is lack|
||time; the supervision of the audit committee to the|||
||||of system control or systematicness is invalid; the|
||company’s external financial reports and internal|||
||||major deficiencies and significant deficiencies of the|
||control of financial reports is invalid.|||
||||company’s internal controls have not been rectified|
||Significant deficiencies: the selection and|||
||||and reformed; the company is punished by CSRC or|
||application of accounting policies are not in|||
||||warned by stock exchange.|
|Qualitative criteria|accordance with the GAAP; anti-fraud program|||
||||Significant deficiencies: the company has democratic|
||and control measures have not been established; the|||
||||decision-making process which is not complete; the|
||accounting treatment of unusual or special|||
||||company’s decision-making process leads to general|
||transactions has no appropriate control mechanisms|||
||||mistakes; the company violates the enterprise internal|
||or have not implemented the control mechanisms|||
||||regulations which causes losses; serious brain drain of|
||and has no appropriate compensatory controls; the|||
||||the company’s business personnel in key positions;|
||control to period-end financial reporting process|||
||||negative news on media affecting local areas; the|
||has one or more deficiencies and cannot reasonably|||
||||company’s significant business system has|
||ensure that the organizational financial statements|||
||||deficiencies; the significant deficiencies and general|
||are true and accurate.|||
||||deficiencies of the company’s internal controls have|
||General deficiencies: other internal control|||
||||not been rectified and reformed;|
||deficiencies do not constitute major or significant|||
||||General deficiencies: other internal control|
||deficiencies.|||
||||deficiencies do not constitute major or significant|
||||deficiencies.|
||||Major deficiencies: misstatements ≥ direct property|
||Major deficiencies: misstatements ≥ 10% of total|||
||||loss of 100,000 yuan; Significant deficiencies: direct|
||profits; Significant deficiencies: 5% of total profits|||
|Quantitative standard|||property loss of 10,000 yuan ≤ misstatements < direct|
||≤ misstatements <10% of total profits; General|||
||||property loss of 100,000 yuan; General deficiencies:|
||deficiencies: misstatements <5% of total profits.|||
||||misstatements < direct property loss of 10,000 yuan.|
|Amount of significant defects in||||
||0|||
|financial reports||||
|Amount of significant defects in|0|||

|||
|-|-|
|non-financial reports||
|Amount of important defects in||
||0|
|financial reports||
|Amount of important defects in||
||0|
|non-financial reports||

X. Auditing report of internal control
√Applicable□ Not applicable
|||
|-|-|
|Deliberations in Internal Control Audit Report||
|To All Shareholders of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.:||
|In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing||
|standards of Chinese Certified Public Accountant, we audited the effective-ness of the financial report’s internal control||
|for Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (the Company) dated 31 December 2015.||
|I. As for responsibility of internal control, the Company established and improved and implemented internal control||
|effectively pursuit to Basic Norms of Enterprises Internal Control, Supporting Guidelines for Enterprise Internal Control||
|and Evaluation Guild lines for Enterprises Internal Control, and board of the director is responsible for evaluating its||
|effectiveness.||
|II. Auditor’s responsibilities: Our responsibility is to express an opinion on the effectiveness of internal control for the||
|financial statements based on our audit. And disclosed major deficits of noted internal control without financial||
|statement concerned.||
|III. Inherent feature of internal control: the internal control has an inherent limitation, and exist mistakes that can not||
|prevent and being discovered. Moreover, the internal control might be inappropriate due to the changes of conditions, or||
|fails to follow the controlling policies and procedures, to speculate future effectiveness of the internal control in line||
|with the auditing result has a certain risks.||
|IV. Auditing opinion: in our opinion, the Company, in line with Basic Norms of Enterprises Internal Control and||
|relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December||
|2015.||
|BDO CHINA Shu Lun Pan Certified Public Accountant of China:Liu Zebo||
|Certified Public Accountants LLP||
|Certified Public Accountant of China:Zhu Meirong||
|Shanghai, China 24 March 2016||
|Disclosure details of audit report of||
||Disclosed|
|internal control||
|Disclosure date of audit report of||
||2016-03-26|
|internal control (full-text)||
|Index of audit report of internal|Relevant information found in Self-evaluation Report of Internal Control for 2015 published on Juchao|
|control (full-text)|Website dated 26 March 2016.|
|Opinion type of auditing report of||
||Standard unqualified|
|IC||
|whether the non-financial report|No|

||
|-|
|had major defects|

Carried out modified opinion for internal control audit report from CPA
□Yes√ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes□ No
Section X. Financial Report
I. Audit report
|||
|-|-|
|Type of audit opinion|Standard unqualified opinion|
|Signing date of audit report|2016-03-24|
|Name of audit institute|BDO CHINA Shu Lun Pan Certified Public Accountants LLP|
|Document serial of audit report|PCPAR [2016] No.110934|
|Name of the CPA|Liu Zebo, Zhu Meirong|

Auditor’s Report
To All Shareholders of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.:
We have audited the accompanying financial statements of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (hereinafter referred to as “the Company”), which comprise the balance sheet as at December 31, 2015, and the income statement, statement of cash flows and statement of changes inowners’ equity for the year then ended, and notes to the financial statements.
I.Management’s Responsibilities for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation; (2) designing, implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements, whether due to frauds or errors.
II.Auditor’s Responsibilities
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Auditing Standards for Certified Public Accountants in China. Those standards require that we comply with professional and ethical requirements of Chinese certified public accountants, and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgments, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, we consider the internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Opinion
In our opinion, the financial statements of the Company are prepared, in all material respects, in accordance with Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at December 31, 2015 and its operating results and cash flows for the year then ended.
BDO CHINA Shu Lun Pan Certified Public Accountant of China:Liu Zebo
Certified Public Accountants LLP
Certified Public Accountant of China:Zhu Meirong
Shanghai, China 24 March 2016
II. Financial Statement
Expressed in Renminbi unless otherwise stated
1. BALANCE SHEET
Prepared by HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.
2015-12-31
In RMB
||||
|-|-|-|
|Item|Closing Balance|Opening Balance|
|Current assets:|||
|Monetary funds|19,782,392.26|22,550,289.54|
|Settlement funds|||
|Lending funds|||
|Financial liability measured by fair value and with|||
|variation reckoned into current gains/losses|||
|Derivative financial liability|||
|Notes receivable|||
|Accounts receivable|460,197.28|2,632,379.02|
|Prepayments|42,358.16|40,778.52|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance receivable|||
|Interest receivable|||
|Dividends receivable|||
|Other receivables|211,946.37|332,661.26|
|Purchase restituted finance asset|||
|Inventories|218,075.43|307,057.29|
|Divided into assets held for sale|||
|Non-current assets maturing within one year|532,500.00|196,354.90|
|Other current assets|||
|Total current assets|21,247,469.50|26,059,520.53|
|Non-current assets:|||
|Loans and payments on behalf|||
|Available-for-sale financial assets|4,500,000.00|4,500,000.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|||
|Investment real estate|||
|Fixed assets|51,279,986.58|56,301,360.07|
|Construction in progress|||
|Project materials|||

||||
|-|-|-|
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|26,351,390.52|27,220,117.68|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|1,508,750.00||
|Deferred tax assets|||
|Other non-current assets|||
|Total non-current assets|83,640,127.10|88,021,477.75|
|Total assets|104,887,596.60|114,080,998.28|
|Current liabilities|||
|Short-term borrowings|||
|Loan from central bank|||
|Absorbing deposit and interbank deposit|||
|Capital borrowed|||
|Financial liability measured by fair value and with|||
|variation reckoned into current gains/losses|||
|Derivative financial liability|||
|Notes payable|||
|Accounts payable|2,415,602.37|2,390,345.19|
|Accounts received in advance|1,153,854.95|1,360,245.91|
|Selling financial asset of repurchase|||
|Commission charge and commission payable|||
|Wage payable|2,150,364.40|3,451,674.05|
|Taxes payable|-1,422,221.33|-1,155,972.31|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|23,652,528.28|23,619,371.11|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||

||||
|-|-|-|
|Total current liabilities|27,950,128.67|29,665,663.95|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|||
|Special accounts payable|||
|Projected liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|27,950,128.67|29,665,663.95|
|Owners’ equity:|||
|Share capita|364,100,000.00|364,100,000.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|54,142,850.01|54,142,850.01|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|||
|Provision of general risk|||
|Retained profit|-341,305,382.08|-333,827,515.68|
|Total owner’s equity attributable to parent Company|76,937,467.93|84,415,334.33|
|Minority interests|||
|Total owner’s equity|76,937,467.93|84,415,334.33|
|Total liabilities and owner’s equity|104,887,596.60|114,080,998.28|

 Legal Representative: Li Yuanbin
Accounting Principal: Fu Zongren
AccountingFirm’s Principal: Liu Xianghai
2. Profit statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|15,885,922.90|20,202,134.10|
|Including: Operating income|15,885,922.90|20,202,134.10|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|25,359,928.19|24,932,122.13|
|Including: Operating cost|626,661.16|337,785.89|
|Interest expense|||
|Commission charge and commission expense|||
|Cash surrender value|||
|Net amount of expense of compensation|||
|Net amount of withdrawal of insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|917,481.10|1,135,598.54|
|Sales expenses|12,968,461.37|11,783,411.89|
|Administration expenses|10,272,262.86|11,423,202.87|
|Financial expenses|-109,213.80|39,516.35|
|Losses of devaluation of asset|684,275.50|212,606.59|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|422,000.00|4,020,000.00|
|Including: Investment income on affiliated Company and joint venture|||
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|-9,052,005.29|-709,988.03|
|Add: Non-operating income|1,664,926.64|3,220,345.27|
|Including: Disposal earnings of non-current asset||3,126,454.22|
|Less: Non-operating expense|90,787.75|6,870.77|
|Including: Disposal loss of non-current asset|90,560.75|6,870.77|
|IV. Total Profit (Loss is listed with “-”)|-7,477,866.40|2,503,486.47|
|Less: Income tax|||
|V. Net profit (Net loss is listed with “-”)|-7,477,866.40|2,503,486.47|
|Net profit attributable to owner’s equity of parent Company|-7,477,866.40|2,503,486.47|
|Minority shareholders’ gains and losses|||

||||
|-|-|-|
|VI. Net after-tax of other comprehensive income|||
|Net after-tax of other comprehensive income attributable to owners of parent company|||
|(I) Other comprehensive income items which will not be reclassified subsequently to|||
|profit of loss|||
|1. Changes as a result of re-measurement of net defined benefit plan liability or|||
|asset|||
|2. Share of the other comprehensive income of the investee accounted for using|||
|equity method which will not be reclassified subsequently to profit and loss|||
|(II) Other comprehensive income items which will be reclassified subsequently to profit|||
|or loss|||
|1. Share of the other comprehensive income of the investee accounted for using|||
|equity method which will be reclassified subsequently to profit or loss|||
|2. Gains or losses arising from changes in fair value of available-for-sale financial|||
|assets|||
|3. Gains or losses arising from reclassification of held-to-maturity investment as|||
|available-for-sale financial assets|||
|4. The effect hedging portion of gains or losses arising from cash flow hedging|||
|instruments|||
|5. Translation differences arising on translation of foreign currency financial|||
|statements|||
|6. Other|||
|Net after-tax of other comprehensive income attributable to minority shareholders|||
|VII. Total comprehensive income|-7,477,866.40|2,503,486.47|
|Total comprehensive income attributable to owners of parent Company|-7,477,866.40|2,503,486.47|
|Total comprehensive income attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.0205|0.0069|
|(ii) Diluted earnings per share|-0.0205|0.0069|

 Legal Representative: Li Yuanbin
Accounting Principal: Fu Zongren
AccountingFirm’s Principal: Liu Xianghai
3. Cash flow statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

||||
|-|-|-|
|I. Cash flows arising from operating activities:|||
|Cash received from selling commodities and providing labor services|18,373,063.44|19,224,101.23|
|Net increase of customer deposit and interbank deposit|||
|Net increase of loan from central bank|||
|Net increase of capital borrowed from other financial institution|||
|Cash received from original insurance contract fee|||
|Net cash received from reinsurance business|||
|Insured savings and net increase of investment|||
|Net increase of amount from disposal financial assets that measured by fair|||
|value and with variation reckoned into current gains/losses|||
|Cash received from interest, commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business capital|||
|Write-back of tax received|||
|Other cash received concerning operating activities|2,081,380.90|3,825,887.33|
|Subtotal of cash inflow arising from operating activities|20,454,444.34|23,049,988.56|
|Cash paid for purchasing commodities and receiving labor service|5,408,681.93|4,327,919.22|
|Net increase of customer loans and advances|||
|Net increase of deposits in central bank and interbank|||
|Cash paid for original insurance contract compensation|||
|Cash paid for interest, commission charge and commission|||
|Cash paid for bonus of guarantee slip|||
|Cash paid to/for staff and workers|8,669,137.40|8,787,810.43|
|Taxes paid|2,666,423.71|2,575,932.59|
|Other cash paid concerning operating activities|5,455,727.58|4,926,258.24|
|Subtotal of cash outflow arising from operating activities|22,199,970.62|20,617,920.48|
|Net cash flows arising from operating activities|-1,745,526.28|2,432,068.08|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|9,000,000.00|10,000,000.00|
|Cash received from investment income|422,000.00|4,020,000.00|
|Net cash received from disposal of fixed, intangible and other long-term assets|7,510.00|4,200.00|
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|||
|Subtotal of cash inflow from investing activities|9,429,510.00|14,024,200.00|
|Cash paid for purchasing fixed, intangible and other long-term assets|1,451,881.00|167,410.00|
|Cash paid for investment|9,000,000.00|574,254.00|

||||
|-|-|-|
|Net increase of mortgaged loans|||
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|||
|Subtotal of cash outflow from investing activities|10,451,881.00|741,664.00|
|Net cash flows arising from investing activities|-1,022,371.00|13,282,536.00|
|III. Cash flows arising from financing activities:|||
|Cash received from absorbing investment|||
|Including: Cash received from absorbing minority shareholders’ investment|||
|by subsidiaries|||
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
|Subtotal of cash inflow from financing activities|||
|Cash paid for settling debts|||
|Cash paid for dividend and profit distributing or interest paying|||
|Including: Dividend and profit of minority shareholder paid by subsidiaries|||
|Other cash paid concerning financing activities|||
|Subtotal of cash outflow from financing activities|||
|Net cash flows arising from financing activities|||
|IV. Influence on cash due to fluctuation in exchange rate|||
|V. Net increase of cash and cash equivalents|-2,767,897.28|15,714,604.08|
|Add: Balance of cash and cash equivalents at the period -begin|22,550,289.54|6,835,685.46|
|VI. Balance of cash and cash equivalents at the period -end|19,782,392.26|22,550,289.54|

 4. Statement on Changes ofOwners’ Equity
Current Period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Current Period|||||||||||||
||Owners’ equity attributable to the parent Company||||||||||||Total owners’equity|
|||Other|||||Othercomprehensiveinco|R||||||
|||||||||||Pr||M||
|||equity||||||e||||||
|||||||Le||||ov||in||
|||instrum||||||as|S|||||
|||||||ss:||||isi||or||
|||ent||||||o|ur|||||
|||||||In||||on||it||
|Item||P|P|||||n|pl|||||
|||||||ve||||of||y||
|||re|e||Capital|||a|us|||||
||Share capital|||||nto||||ge|Retained profit|in||
|||fe|r||reserve|||bl|re|||||
|||||O||ry||||ne||te||
|||rr|p|||||e|se|||||
|||||th||sh||||ra||re||
|||e|et|||||re|rv|||||
|||||er||are||||l||st||
|||d|u|||||se|e|||||
|||||||s||||ris||s||
|||st|al|||||rv||||||
|||||||||||k||||
|||o|c|||||e||||||

|||||||||
|-|-|-|-|-|-|-|-|
|||c|a||m|||
|||k|p||e|||
||||it|||||
||||al|||||
||||s|||||
||||e|||||
||||c|||||
||||u|||||
||||ri|||||
||||ti|||||
||||e|||||
||||s|||||
|I. Balance at the end of the last year|364,100,000.00|||54,142,850.01||-333,827,515.68|84,415,334.33|
|Add: Changes of accounting||||||||
|policy||||||||
|Error correction of the last||||||||
|period||||||||
|Enterprise combine under||||||||
|the same control||||||||
|Other||||||||
|II. Balance at the beginning of this||||||||
||364,100,000.00|||54,142,850.01||-333,827,515.68|84,415,334.33|
|year||||||||
|III. Increase/ Decrease in this year||||||||
|||||||-7,477,866.40|-7,477,866.40|
|(Decrease is listed with “-”)||||||||
|(i) Total comprehensive income||||||-7,477,866.40|-7,477,866.40|
|(ii) Owners’ devoted and decreased||||||||
|capital||||||||
|1.Common shares invested by||||||||
|shareholders||||||||
|2. Capital invested by holders of other||||||||
|equity instruments||||||||
|3. Amount reckoned into owners||||||||
|equity with share-based payment||||||||
|4. Other||||||||
|(III) Profit distribution||||||||
|1. Withdrawal of surplus reserves||||||||
|2. Withdrawal of general risk||||||||
|provisions||||||||
|3. Distribution for owners (or||||||||
|shareholders)||||||||
|4. Other||||||||
|(IV) Carrying forward internal||||||||
|owners’ equity||||||||
|1. Capital reserves conversed to||||||||
|capital (share capital)||||||||
|2. Surplus reserves conversed to||||||||
|capital (share capital)||||||||
|3. Remedying loss with surplus||||||||
|reserve||||||||
|4. Other||||||||
|(V) Reasonable reserve||||||||

||||||
|-|-|-|-|-|
|1. Withdrawal in the report period|||||
|2. Usage in the report period|||||
|(VI)Others|||||
|IV. Balance at the end of the report||||76,937,467.93|
||364,100,000.00|54,142,850.01|-341,305,382.08||
|period|||||

Last Period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Last Period|||||||||||||
||Owners’ equity attributable to the parent Company|||||||||||||
|||Other||||||||||||
|||equity||||||||||||
|||instrum||||||||||||
|||ent|||||Ot|||||||
||||P||||he|R||||||
|||||||||||||M||
||||er|||Le|r|e||Pr||||
|||||||||||||in||
||||p|||ss:|co|as|S|ov||||
|||||||||||||or||
|||P|et|||In|m|o|ur|isi||||
|||||||||||||it||
|Item||re|u|||ve|pr|n|pl|on||||
|||||||||||||y|Total owners’|
|||fe|al||Capital|nt|eh|a|us|of||||
||Share capital||||||||||Retained profit|in|equity|
|||rr|c||reserve|or|en|bl|re|ge||||
|||||O||||||||te||
|||e|a|||y|si|e|se|ne||||
|||||th||||||||re||
|||d|pi|||sh|ve|re|rv|ral||||
|||||er||||||||st||
|||st|ta|||are|in|se|e|ris||||
|||||||||||||s||
|||o|l|||s|co|rv||k||||
|||c|se||||m|e||||||
|||k|c||||e|||||||
||||ur|||||||||||
||||iti|||||||||||
||||es|||||||||||
|I. Balance at the end of the last year|364,100,000.00||||54,142,850.01||||||-336,331,002.15||81,911,847.86|
|Add: Changes of accounting||||||||||||||
|policy||||||||||||||
|Error correction of the last||||||||||||||
|period||||||||||||||
|Enterprise combine under||||||||||||||
|the same control||||||||||||||
|Other||||||||||||||
|II. Balance at the beginning of this||||||||||||||
||364,100,000.00||||54,142,850.01||||||-336,331,002.15||81,911,847.86|
|year||||||||||||||
|III. Increase/ Decrease in this year||||||||||||||
||||||||||||2,503,486.47||2,503,486.47|
|(Decrease is listed with “-”)||||||||||||||
|(i) Total comprehensive income|||||||||||2,503,486.47||2,503,486.47|
|(ii) Owners’ devoted and decreased||||||||||||||
|capital||||||||||||||
|1.Common shares invested by||||||||||||||
|shareholders||||||||||||||
|2. Capital invested by holders of other||||||||||||||
|equity instruments||||||||||||||
|3. Amount reckoned into owners||||||||||||||
|equity with share-based payment||||||||||||||

||||||
|-|-|-|-|-|
|4 Other|||||
|(III) Profit distribution|||||
|1. Withdrawal of surplus reserves|||||
|2. Withdrawal of general risk|||||
|provisions|||||
|3. Distribution for owners (or|||||
|shareholders)|||||
|4. Other|||||
|(IV) Carrying forward internal|||||
|owners’ equity|||||
|1. Capital reserves conversed to|||||
|capital (share capital)|||||
|2. Surplus reserves conversed to|||||
|capital (share capital)|||||
|3. Remedying loss with surplus|||||
|reserve|||||
|4. Other|||||
|(V) Reasonable reserve|||||
|1. Withdrawal in the report period|||||
|2. Usage in the report period|||||
|(VI)Others|||||
|IV. Balance at the end of the report|||||
||364,100,000.00|54,142,850.01|-333,827,515.68|84,415,334.33|
|period|||||

III. Company profile
Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (hereinafter referred to as “the Company”), was founded as a standardized LLC on April 26, 1993, reorganized and incorporated on the basis of the former Hainan Sanya Dadonghai Tourism Center Development Ltd. and approved by the Hainan Provincial Stock System Experimentation Leading Team Office with a document of Qiong Gu Ban Zi[1993] No. 11. On May 6, 1996, the Company underwent a restructuring and a corresponding division under the approval of the Hainan Provincial Securities Administration Office with a document of Qiong Zheng Ban[1996] No. 58. On October 8, 1996 and January 28, 1997, the Company, with duly approval, went public by issuing 80 million shares of B stock and 14 million shares of A stock respectively on Shenzhen Security Exchange. On June 20, 2007, the Company experienced a reform of non-tradable shares, through which non-tradable share holders of the Company got circulating right of their shares by paying shares to tradable share holders, and tradable share holders got paid three shares for every ten of their shares. The Company operates business in the industry of tourism and catering services.
As of December 31, 2014, theCompany’s total capital stock is 364,100,000 shares. TheCompany’s registered capital is RMB 364.1 million. The legal representative is Li Yuanbin. The registeration number of its Business
License for Enterprise Legal Person (Duplicate) is 4600001003983. The legal registerred residence is Dadonghai,
Hedong District, Sanya. Its scope of business includes: accomodation and catering industry (limited to those
operated by branches); photography; operation of ornamental plant bonsai, knitwear and textiles, general merchandise, hardware and electrical equipment, chemical products (excluding those require specialized licenses), daily necessities, industrial means of production (excluding those require specialized licenses), metal materials and machinery equipment; commission sale of plane, bus, train and ship tickets (items in require of administrative permission shall be operated under license).
These financial statements have been approved by all directors of the Company on March 24, 2016 for disclosure. The scope of consolidated financial statements include the Company headquarter and South China Grand Hotel with Independent accountability.
The scope of consolidated financial statements of the Company had no change in the year.
IV. Basis of preparation for financial statements
1. Basis of preparation
Based on going concern, according to actually occurred transactions and events, the Company prepares its financial statements in accordance with the Accounting Standards for Business Enterprises– Basic Standards and concrete accounting standards, Accounting Standards for Business Enterprises– Application Guidelines, Accounting Standards for Business Enterprises– Interpretations and other relevant provisions (collectively known as “Accounting Standards for Business Enterprises”), as well as the disclosure requirements of Regulation on the Preparation of Information Disclosure of Companies Issuing Public Shares No.15 - General Requirements for Financial Reports (as revised in 2014) by the China Securities Regulatory Commission.
2. Going concern
The Company currently has sufficient operating capital and no debt service pressure, the business circumstance has been improved after the new general manager of theCompany’s subsidiary South China Hotel worked in the year of 2015. So far, the Company is operating nomal and expected to continue operate as going cocern in the next twelve months.
V. Principal accounting policies and estimates
Tips of accounting policies and estimates: Nil
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business Enterprises and truly and completely reflect theCompany’s financial position, operating results, cash flows and other information.
2. Accounting period
The accounting year is from January 1 to December 31 in calendar year.
3. Operating cycle
The operating cycle of the Company is twelve months.
4. Functional currency
RMB is adopted as the functional currency.
5. Accounting treatment for business combinations under the same control and those not under the same control
6. Methods for preparation of consolidated financial statements
7. Accounting treatment for joint venture and joint operation
8. Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the unrestricted deposit. The term “cash equivalents” refers to short-term (maturing within three months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
9. Foreign business and foreign currency transactions
Foreign currency transactions are converted into RMB for recording purpose at the spot exchange rate on the date when the transaction occurs.
Balances of foreign currency monetary items are measured at the spot exchange rate on the balance sheet date. The exchange difference arising therefrom shall be included in the current profit and loss, except that those exchange differences arising from the special borrowings of foreign currency related to the acquired and constructed assets qualified for capitalization shall be dealt with according to the principle of borrowing cost capitalization. Foreign currency non-monetary items measured at historical costs shall still be converted at the spot exchange rates on the date when the transactions occur, and the amount in functional currency shall remain unchanged. Foreign currency non-monetary items measured at fair value shall be translated at the spot exchange rates on the date when the fair value is determined. The exchange difference arising therefrom shall be included in the current profit and loss or capital reserves.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Financial assets and liabilities are classified into the following categories according to the purpose of acquisition: financial assets or financial liabilities measured at fair value and whose variation is included in the current profit
and loss, including financial assets or financial liabilities held for trading and financial assets or financial liabilities directly designated to be measured at fair value through current profit and loss, held-to-maturity investments, accounts receivables, available-for-sale financial assets and other financial liabilities, etc.
2. Recognition basis and measurement method of financial instruments
(1) Financial assets (financial liabilities) measured at fair value and whose variation is included in the current profit and loss
Financial assets (financial liabilities) are initially recorded at fair values when acquired (deducting cash dividends that have been declared but not distributed and bond interests that have matured but not been drawn). Relevant transaction expenses are included in the current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income. Change in fair values is included in the current profit and loss at the end of the period.
Difference between the fair value and initial book-entry value is recognized as investment income upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recorded at fair values plus the related trade expenses when acquired (deducting bond interests that have matured but not been drawn). The interest revenue calculated at amortization cost and effective interest rate (nominal interest rate is adopted when the difference between the actual interest rate and the nominal interest rate is minor) during the holding period is recognized as investment income. Effective interest is recognized when obtained, and remains unchanged in the predictable holding period or applicable shorter period.
The difference between the amount received and the book value of the investment is included in the investment profit and loss upon disposal.
(3) Accounts receivable
Forcreditor’s rights receivable arising from external sales of goods or rendering of service by the Company and other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the Company, including accounts receivable, other receivables, notes receivable and prepayments, etc., the initial recognition amount shall be the contract price or agreement price receivable from purchasing party. Accounts receivable with financing nature are initially recognized at their present values.
The difference between the amount received and the book value of the accounts receivable is included in the current profit and loss upon recovery or disposal.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at fair values plus the related trade expenses when acquired (deducting cash dividends that have been declared but not been paid or bond interests that have matured but not been drawn).
The interests or cash dividends to be received during the holding period are recognized as investment income. It is
measured in fair value at the end of the period and change in fair values is included in other comprehensive income at the end of the period. However, the equity instrument investments unquoted in an active market and whose fair value cannot be measured reliably, and the derivative financial assets which are connected with the said equity instrument and must be settled by delivering the said equity instrument shall be measured on the costs basis.
The difference between the amount received and the book value of the financial asset is included in the investment profit and loss upon disposal. Meanwhile, the corresponding part of fair value accumulated change accounted as other comprehensive income is transferred into investment profit or loss.
(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses and subsequently measured at amortized costs.
3. Recognition basis and measurement method of transfer of financial assets
When transfer of financial assets occurs, if nearly all of the risks and rewards of ownership of the financial assets have been transferred to the transferee, the Company derecognizes the financial assets; if nearly all of the risks and rewards of ownership of the financial assets are retained, the Company shall not derecognize the financial assets.
The principle of substance over form is adopted to determine whether the transfer of a financial asset satisfies the criteria as described above for derecognition of a financial asset. The Company shall classify the transfer of a financial asset into the entire transfer and the partial transfer of financial asset. If the entire transfer of financial asset satisfies the criteria for derecognition, the difference between the amounts of the following two items shall be included in the current profit and loss:
(1) The book value of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair value originally and directly included inowners’ equity (the situation where the financial asset transferred is an available-for-sale financial asset is involved in)
If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of the transferred financial asset shall be split into the derecognized and recognized part according to their respective fair value and the difference between the amounts of the following two items shall be included in the current profit and loss:
(1) The book value of derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of derecognition corresponding to the accumulated amount of the changes in fair value originally and directly included inowners’ equity (the situation where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of financial assets does not meet the derecognition criteria, the financial assets shall continue to be
recognized, and the consideration received will be recognized as a financial liability.
4. Derecognition criteria of financial liabilities
A financial liability shall be totally or partly derecognized if its present obligations are totally or partly dissolved. Where the Company enters into an agreement with a creditor so as to substitute the existing financial liabilities with any new financial liability, and the new financial liability is substantially different from the contractual stipulations regarding the existing financial liability, it shall derecognize the existing financial liability, and shall at the same time recognize a new financial liability.
Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability, the Company shall derecognize the existing financial liability totally or partly, and at the same time recognize the financial liability with revised contractual stipulations as a new financial liability.
Upon total or partial derecognition of financial liabilities, the difference between the book value of the financial liabilities derecognized and the consideration paid (including non-cash assets surrendered or new financial liabilities assumed) shall be included in the current profit and loss.
Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate the entire book value of whole financial liabilities according to the comparative fair value of the part that continues to be recognized and the de-recognized part. The difference between the book value allocated to the derecognized part and the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shall be included in the current profit and loss.
5. Method of determining the fair value of financial assets and financial liabilities
For financial instruments with active market, their fair values are determined with quoted market price. For financial instruments without active market, their fair values are determined by using valuation technique. During the valuation, the company use valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to measure fair value, select inputs that are consistent with the characteristics of the asset or liability that market participants would take into account in a transaction for the asset or liability, and give priority to the use of relevant ovservable inputs. Unobservable inputs are only adopted when relevant observable inputs cannot be obtained or are impracticable to obtain.
6. Providing of impairment provision on financial assets (exclude receivable accounts)
The Company performs inspection on the book value of financial assets apart from those financial assets measured at fair value through current profit and loss on the balance sheet date. Impairment provision is required if objective evidences of impairment occurs to the financial assets.
(1) Impairment provision of available-for-sale financial assets:
If there is a serious decline in fair value of the available-for-sale financial assets at the end of the period, or such decline is not temporary after considering various factors, the impairment shall be confirmed, the accumulated
losses due to decreases in fair value previously included inowner’s equity shall be reversed, the impairment loss shall be recognized.
If, in a subsequent period, the carrying amount of available-for-sale debt instruments investments increases and the increase can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment losses are reversed, included in current profit or loss.
The impairment losses of available-for-sale equity instruments cannot be reversed through profit or loss.
(2) Impairment provision of held-to-maturity investment:
Measurement of held-to-maturity investment impairment loss is governed by measurement of account receivables impairment loss.
11. Accounts receivable
(1) Provision for bad debts of account receivables that are individually significant
|||
|-|-|
|Assessment basis or||
|standard of amount|Top five accounts receivable and other receivables in terms of individual amount at the end of the year.|
|individually significant||
||After separate impairment test, provision for bad debts shall be made at the difference of present value|
||of estimated future cash flows in short of their book values, and shall be include in current profit and|
|Method of provision for||
||loss. For accounts receivable with no impairment found after separate tests, they shall be included in|
|bad debts of accounts||
|receivable that are|corresponding portfolios for provisions for bad debts. For accounts receivable with confirmed|
|individually significant||
||impairment losses after separate tests, they shall not be included in portfolios of accounts receivable|
||with similar credit risk features for impairment tests.|

(2) Provision for bad debts of accounts receivable made on the basis of portfolio
|||
|-|-|
|Portfolio|Provision for bad debts|
|Aging portfolio|Aging analysis method|

Proportions of provision for bad debts on the basis of aging analysis in portfolios:
√Applicable□Not applicable
||||
|-|-|-|
||Proportion of provision for account|Proportion of provision for other|
|Aging|||
||receivable|receivables|
|1－2 years|5.00%|5.00%|
|2－3 years|15.00%|15.00%|
|3－4 years|25.00%|25.00%|
|4－5 years|50.00%|50.00%|

||||
|-|-|-|
|More than five years|100.00%|100.00%|

 In portfolio, adopting balance percentage method for bad debt provision
□ Applicable√Not applicable
In portfolio, adopting other method for bad debt provision
□ Applicable√Not applicable
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an individual basis
|||
|-|-|
||For account receivable with an individual balance lower than the top five at the end of the year and|
|Reason for bad debt||
||with objective evidence showing it may be impaired, and for uncollectible accounts receivable|
|provision provided on an||
||arising from repeal and liquidation of debtor after taking legal clearance procedures, their provision|
|individual basis||
||for bad debts shall be provided on an individual basis.|
||For accounts receivable with objective evidence showing they may be impaired, they shall be|
||separate from relevant portfolios and separately tested for impairment to recognize the impairment|
||losses. Other remarks: provision for impairment of accounts receivable, excluding debts receivable|
||and other receivables, shall be made at the specific identification method. If there is evidence|
|Method of provision for bad||
||showing that the value of the account receivable has been recovered, and that the recovery is|
|debt||
||objectively related to events after recognition of the loss, the originally recognized impairment loss|
||should be reversed and included in current profit and loss. However, the book values after such|
||reversal shall not exceed the amortized costs of the account receivable on the reversal date, assuming|
||there is no provision for impairment.|

12. Inventories
1. Classification of inventories
Inventories are classified into raw materials, stock commodities, low-cost consumables, food materials, fuels, etc. 2. Measurement method of dispatched inventories
Stock commodities are measured at selling price and their purchase and sale price differential are amortized over every month at the method of comprehensive differential. The purchasing and storage of stock materials are measured at actual cost, and at the first-in-first-out method when fetched for use. Low-cost consumables are amortized in full when fetched for use.
3. Determination basis of net realizable values of inventories and provision method of inventory depreciation reserve
After the comprehensive inventory count at the end of the period, provisions for inventory depreciation reserve are
made or adjusted at the lower of their costs or net realizable values.
In normal operation process, for merchandise inventories for direct sale, including stock commodities and materials for sale, their net realizable values are determined at the estimated selling prices minus the estimated selling expenses and relevant taxes and surcharges; for inventories held to execute sales contract or service contract, their net realizable values are calculated on the basis of contract price. If the quantities of inventories specified in sales contracts are less than the quantities held by the Company, the net realizable value of the excess portion of inventories shall be based on general selling prices.
At the end of the period, provisions for inventory depreciation reserve are made on an individual basis. For inventories with large quantity and low unit price, the provisions for inventory depreciation reserve are made on a category basis. For inventories related to the product portfolios manufactured and sold in the same area, and of which the final usage or purpose is identical or similar thereto, and which is difficult to separate from other items for measurement purposes, the provisions for inventory depreciation reserve shall be made on a portfolio basis. If any factor rendering write-downs of the inventories has been eliminated, the amounts written down are recovered and reversed from the inventory depreciation reserve, which has been provided for. The reversed amounts are included into the current profit and loss.
4. Inventory system
Perpetual inventory system is adopted.
5. Amortization method of low-cost consumables and packaging materials
(1) Low-cost consumables are amortized at lump-sum method;
(2) Packaging materials are amortized at lump-sum method.
13. Divided into assets held for sale
14. Long-term equity investments
1. Determination basis of joint control or significant influence over the investee
Joint control is the relevant agreed sharing of control over an arrangement, and the arranged relevant activity must be decided under unanimous consent of the parties sharing control. When the company and other joint parties do joint control and have rights to the net assets over an investee, the investee shall be thecompany’s joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those polices. When an investing enterprise is able to have significant influences on an investee, the investee shall be its associate.
2. Determination of initial investment cost
(1) Long-term equity investments acquired from business combinations
For business combination under common control: if the company makes payment in cash, transfer non-cash assets or bear debts and issues equity securities as the consideration for the business combination, the book value of the
owners’ equity of the combinee obtained is recognized as the initial cost of the long-term equity investment on the combination date. The difference between the initial investment cost and the carrying amount of cash paid, non-cash assets transferred, liabilities assumed and par value of share issued shall be adjusted to the stock premium in the capital reserved; if there is no sufficient premium in the capital reserve for write-downs, the retained earnings are adjusted.
When exercising control was over an investee under common control due to additional investment or other reasons, the initial investment cost of the long-term equity investment shall be determined by the absorbingparty’s share of the net assets of the party being absorbed in the consolidated financial statements of the ultimate controlling party at combination date. The difference between the initial investment cost of the long-term equity investment at combination date and the sum of the total of the carrying amount of equity investment held by the acquirer before the combination date and the newly increased investment on the combination date shall be adjusted to share premium. If the balance of share premium is not sufficient, any excess shall be adjusted to retained earnings.
For business combination not under common control, the Company recognizes the combination cost determined on the combination date as the initial cost of long-term equity investment.
When exercising control over an investee not under common control due to additional investment or other reasons, in stand-alone financial statements, the investor shall change to the cost method and use the carrying amount of the previously-held equity investment, together with the additional investment cost, as the initial investment cost under the cost method. The audit, legal, valuation and consulting fees, other intermediary fees, and related administrative fees paid by the absorbing party or acquirer for the business combination, shall be recognized in profit or loss as invurred; the cost of issuing equity securities or debt securities as the combination consideration shall be included in the initial cost of the equity securities or debt securities.
(2) Long-term equity investments acquired by other means
For long-term equity investments acquired from making payments in cash, the initial cost is the actually paid purchase cost.
For long-term equity investments acquired from issuance of equity securities, the initial cost is the fair value of the issued equity securities.
If the exchange of non-monetary assets has commercial substance, and the fair values of assets traded out and traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary assets are determined based on the fair values of the assets traded out together with relevant taxes unless there is any conclusive evidence that the fair values of the assets traded in are more reliable. If the exchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and relevant taxes are recognized as the initial cost of long-term equity investment traded in.
For long-term equity investment acquired from debt restructuring, the initial cost is determined based on the fair
value.
3. Subsequent measurement and recognition of profit or loss
(1) Long-term equity investment adopting cost method
Long-term equity investments of the Company in its subsidiaries are accounted for at cost method, except for the actual price paid for acquisition of investment or the cash dividends or profits contained in the consideration which have been declared but not yet distributed, the Company recognizes the proportion it shall enjoy in the cash dividends or profits declared by the investee as current investment income.
(2) Long-term equity investment adopting equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using the equity method. If the cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee when the investment is made, the difference will not be adjusted to the initial cost of long-term equity investment; if the cost of initial investment is in short of the proportion of the fair value of the net identifiable assets in the investee when the investment is made, the difference will be included in the current profit and loss. The Company recognizes the share of theinvestee’s net profits or losses, as well as its share of theinvestee’s other comprehensive income, as investment income or losses and other comprehensive income, and adjusts the carrying amount of the investment accordingly. The carrying amount of the investment shall be reduced by the portion of any profit distributions or cash dividends declared by the investee that is attributable to the investor. Theinvestor’s share of theinvestee’sowners’ equity changes, other than those arising from theinvestee’s net profit or loss, other comprehensive income or profit distribution, would be recognized in theinvestor’s equity, and the carrying amount of the long-term equity investment shall be adjusted accordingly.
The Company recognizes its share of theinvestee’s net profits or losses after making appropriate adjustments based on the fair values of theinvestee’s identifiable net assets at the acquisition date according to theCompany’s accounting policies and accounting period. When holding the investment, if the investee is capable of providing consolidated financial statements, the profit or loss shall be measured based on the net profit , other comprehensive income and other changes inowners’ equity attributed to the company recorded in the consolidated financial statements.
The unrealized profits or losses resulting from transactions between the company and its associate or joint venture are eliminated in proportion to thecompany’s equity interest in the investee, based on which investment income or losses shall be recognized. Any losses resulting from transactions between the investor and the investee, which are attributable to asset impairment shall be recognized in full. The transactions of investing or selling assets between the company and its associate or joint venture are accounted for under relevant accounting policies when the asset constitutes a business.
When the Company confirms that it should share losses of the investee, treatment shall be done in following
sequence: firstly, the book value of the long-term equity investment shall be reduced; secondly, where the book value is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of long-term equity which form net investment in the investee in substance and the book value of long-term equity shall be reduced; finally, after all the above treatments, if the Company is still responsible for any additional liabilities in accordance with the provisions stipulated in the investment contracts or agreements, estimated liabilities are recognized and included into current investment loss according to the obligations estimated to undertake. If the investee achieves profit in subsequent periods, the treatment is in the reversed sequence described above, i.e. after deduct any unrecognized investment losses, reduce book value of estimated liabilities recognized, restore book values of other long-term equity which form net investment in the investee in substance, and of long-term equity investment, and recognize investment income at the same time.
(3) Disposal of long-term equity investment
On disposal of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shall be recognized in profit or loss for the current period.
For a long-term equity investment accounted for using the equity method, any other comprehensive income previously recognized shall be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities on a por-rata basis upon the disposal of the equity investment. Theowners’ equity recognized due to theinvestor’s share of theinvestee’sowners’ equity changes, other than those arising from theinvestee’s net profit or loss, other comprehensive income or profit distribution, is included in current profit or loss on a pro-rata basis.
When the Company can no longer exercise joint control of or significant influence over an investee due to partial disposal of equity investment or other reasons, the remaining equity investment shall be accounted for in accordance with “Accounting Standard for Business Enterprises No.22-Financial Instruments: Recognition and Measurement”. The difference between the fair value and the carrying amount at the date of the loss of joint control or significant influence shall be charged to profit or loss for the current period. When the previously-held equity investment is accounted for under the equity method, any other comprehensive income previously recognized shall be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities for the current period upon dis-countinuation of the equity method. Theowners’ equity recognized due to theinvestor’s share of theinvestee’sowners’ equity changes, other than those arising from theinvestee’s net profit or loss, other comprehensive income or profit distribution, is transferred to current profit or loss upon discontinuation of the equity method.
When no longer exercise control over an investee due to partial disposal of equity investment or other reasons, and with the retained interest, still has joint control of, or significant influence over, the investee, when preparing the individual financial statements, the Company shall change to the equity method and adjust the remaining equity investment as if the equity method had been applied from the date of the first acquisition. If the Company
can not exercise joint control of or significant influence over the investee after partial disposal of equity investment, the remaining equity investment shall be accounted for in accordance with “Accounting Standard for Business Enterprises No.22-Financial Instruments: Recognition and Measurement”, and the difference between the fair value and carrying amount at the date of the loss of control shall be chared to profit or loss for the current period.
The equity investment disposed was obtained over additional investment or other reasons through business combination, when preparing the individual financial statements, and the remaining equity investment accounted on cost method or equity method, the other comprehensive income and otherowner’s equity recognized due to the equity investment held before acquisition date was accounted for under the equity method are carried forward on a pro-rata basis; when the remaining equity investment is accounted for in accordance with “Accounting Standard for Business Enterprises No. 22– Financial Instruments: Recognition and Measurement”, the other comprehensive income and otherowner’s equity are totally carried forward.
15. Investment real estate
Measurement model of investment real estate
Not applicable
16. Fixed assets
(1) Recognition criteria
1. Recognition criteria of fixed assets Fixed assets refer to the tangible assets held for the purpose of producing commodities, rendering services, renting or business management with useful lives exceeding one year. Fixed assets will only be recognized when all the following criteria are satisfied: (1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; (2) The costs of the fixed assets can be measured reliably. 2 Classification of fixed assets Fixed assets are classified into buildings and constructions, machinery equipment, transportation equipment, electronic entertainment equipment, other equipment and Improvement. 3. Initial measurement of fixed assets Fixed assets are initially measured at their actual cost when acquired. The costs of a purchased fixed asset are determined at the purchase price, the relevant taxes, and the traffic expenses, loading and unloading fees, installation fees and professional service fees arising from preparing the fixed asset for its intended use. If the payment for a fixed asset is delayed beyond the normal credit conditions and it is of financing nature in effect, the costs of the fixed asset shall be determined based on the present value of the purchase price. The cost of a self-constructed fixed asset shall be formed by the necessary expenses incurred for preparing the asset for its intended use. The fixed assets which the debtor uses to pay back the debt in debt restructuring should be recognized at the fair value of the fixed assets. The difference between the book value of restructured debts and the fair value of fixed assets used to pay back the debt should be recorded into current profit and loss; On the premise that non-monetary asset trade is of commercial nature and the fair value of the asset traded in or out can be measured reliably, the fixed asset traded in with non-monetary asset should be recognized at the fair value of the asset traded out, unless any unambiguous evidence indicates that the fair value of the asset traded in is more reliable; as to the non-monetary asset trade not meeting the aforesaid premise, the book value of the asset traded out and related taxes and surcharges payable should be recognized as the cost of the fixed asset, with gains or losses not recognized. As for the book-entry value, the fixed assets acquired from the absorption and merger of an enterprise under common control are recognized at the book value of the merged enterprise; the fixed
assets acquired from the absorption and merger of an enterprise not under common control are recognized at the fair value. The
book-entry value of a fixed asset acquired under financing lease is measured at theasset’s fair value on the commencement date of the lease or the present value of the minimum lease payment, whichever is lower.
(2) Method of provision for impairment of fixed assets
||||||
|-|-|-|-|-|
|||Estimated useful life|Estimated net residual||
|Category|Depreciated|||Annual depreciation rate|
|||(Year)|rate||
|Buildings and|||||
||straight-line-method|20-40|5|4.75-2.37|
|constructions|||||
|Machinery equipment|straight-line-method|8-20|5|11.87-4.75|
|Electronic entertainment|||||
||straight-line-method|5-16|5|19-5.93|
|equipment|||||
|Transportation|||||
||straight-line-method|7-12|5|13.57-7.91|
|equipment|||||
|Other equipment|straight-line-method|8|5|11.87|
|Improvement|straight-line-method|5||19|

(3) Recognition basis, pricing and depreciation method for fixed assets under financing lease
17. Construction in progress
The initial book values of the fixed assets are stated at total expenditures incurred before construction in progress reaches the working condition for their intended use. For construction in progress that has reached working conditions for its intended use but for which the completion of settlement has not been handled, it shall be transferred into fixed assets at the estimated value according to the project budget, construction price or actual cost, etc. from the date when it reaches the working conditions for its intended use. And the fixed assets shall be depreciated in accordance with theCompany’s policy on fixed asset depreciation. Adjustment shall be made to the originally and provisionally estimated value based on the actual cost after the completion of settlement is handled, but depreciation already provided will not be adjusted.
18. Borrowing costs
1. Recognition principles of capitalization of borrowing costs
Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses, exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing
costs should be recognized as costs according to the amount incurred and be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may reach their intended use or sale status only after long-time acquisition and construction or production activities. Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization, have already been incurred;
(2) Borrowing costs have already been incurred;
(3) The acquisition and construction or production activities which are necessary to prepare the assets for their intended use or sale have already been started.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of capitalization, excluding the period of capitalization suspension of borrowing costs.
Capitalization of borrowing costs should be ceased when the acquired and constructed or produced assets eligible for capitalization have reached their intended use or sale condition.
When some projects among the acquired and constructed or produced assets eligible for capitalization are completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased. If all parts of the acquired and constructed or produced assets are completed but the assets cannot be used or sold externally until overall completion, the capitalization of borrowing costs should be ceased at the time of overall completion of the said assets.
3. Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are interrupted abnormally and this condition lasts for more than three months, the capitalization of borrowing costs should be suspended; if the interruption is necessary for the acquisition and construction or production to prepare the assets for their intended use or sale, the capitalization of borrowing costs should continue. The borrowing costs incurred during interruption are recognized in the current profit and loss, and the capitalization of borrowing costs continues after the restart of the acquisition and construction or production activities of the assets.
4. Calculation method of capitalization amount of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization, borrowing costs of special borrowing actually incurred in the current period less the interest income of the loans unused and deposited in bank or return on temporary investment should be recognized as the capitalization
amount of borrowing costs.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings at the end of every month by the capitalization rate of used general borrowings. The capitalization rate is calculated by weighted average interest rate of general loans.
As for borrowings with discount or premium, the to-be-amortized discount or premium in each accounting period should be recognized by effective interest rate method, and the interest for each period should be adjusted. 19. Biological assets
20. Oil-and-gas assets
21. Intangible assets
(1) Measurement, service life and impairment test
1. Measurement method of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges and any other directly attributable expenditure of preparing the asset for its intended use. If the deferred payment of purchase price of intangible assets exceeding normal credit terms is substantially of financial nature, the cost of intangible assets should be recognized at the present value of the purchase price.
The intangible assets which the debtor uses to pay back the debt in debt restructuring should be recognized at the fair value of the intangible assets. The difference between the book value of restructured debts and the fair value of intangible assets used to pay back the debt should be recorded into the current profit and loss;
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in or out can be measured reliably, the intangible assets traded in by the trade of non-monetary assets should be recognized at the fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assets traded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the book value of the assets traded out and related taxes payable should be recognized as the cost of the intangible assets traded in, with gains or losses not recognized.
The intangible assets obtained by the absorption and merger of an enterprise under common control are recognized at the book value of the merged enterprise; the intangible assets obtained by the absorption and merger of an enterprise not under common control are recognized at the fair value.
Costs of intangible assets developed internally and independently include: the costs of materials and labor services
used to develop the intangible assets, the registration fee, the amortization of other patents and franchise used in the process of development, the interest of capitalization, and other direct expenses for preparing the intangible assets for their intended use.
(2) Subsequent measurement
The useful life of intangible asset is analyzed on acquisition.
As for intangible assets with limited useful lives, straight-line amortization method is adopted in the period when the intangible assets generate economic benefit for enterprise; if the period when the intangible assets generate economic benefit for enterprise cannot be forecasted, the intangible assets should be deemed as those with indefinite useful lives and should not be amortized.
2. Estimation of useful life of intangible assets with limited useful life
|||
|-|-|
|Item|Estimated useful life|
|Land use right|50 years|

The useful lives and amortization method of intangible assets with limited useful lives are reviewed at the end of each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year are not different from those estimated before.
3. Determination basis of intangible assets with indefinite useful lives
As at the balance sheet date, the Company has no intangible assets with indefinite useful lives.
(2) Accounting policy for internal research and development spending
22. Impairment of long-term assets
If there is any indication that the long-term assets such as long-term equity investment, investment properties accounted through cost pattern, fixed assets, construction in progress, intangible assets etc. may be impaired at the balance sheet date, an impairment test would be implemented. If the result of impairment test indicates the recoverable amounts of the long-term assets are lower than their book values, the difference between the recoverable amounts and book values is recognized as impairment loss, provisions for impairment of the long-term assets are made. The recoverable amounts of the long-term assets are the higher of their fair values less costs to disposal and the present values of the estimated future cash flows of the long-term assets. The provision for impairment is recognized and calculated on the individual basis. If it is difficult to estimate the recoverable amount of the individual asset, the Company estimates the recoverable amount of the asset group that the individual asset belongs to. The asset group is the minimum asset group which can generate cash flows
independently.
The mentioned impairment loss will not be reversed in subsequent accounting period once it had been recognized.
23. Long-term deferred expenses
Long-term deferred expenses are various expenses already incurred, which shall be amortized over current and subsequent periods with the amortization period exceeding one year.
1. Amortization method
Long-term deferred expenses are evenly amortized over the beneficial period.
2. Amortization period
||
|-|
|Item|
|Hotel exterior wall decoration|

24. Employee compensation
(1) Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, actually occurred short-term employee benefits as a liability, with a corresponding charge to current profit or loss or relevant cost of assets.
Payments made by the Company of social security contributions for employees, and union running costs and employee education costs provided in accordance with relevant requirements, in the accounting period in which employees provide services, is calculated according to prescribed bases and percentages of provision in determining the amount of employee benefits.
Employee benefits which are non-monetary benefits are measured at fair value.
(2) Post-employment benefits
Payments made by the Company of basic endowment insurance and unemployment insurance in accordance with relevant requirements of local government, in the accounting period in which employees provide services, is calculated according to prescribed bases and percentages of provision of local requirements in determining the amount payable, is recognized as a liability, with a corresponding charge to current profit or loss or relevant cost of assets.
(3) Termination benefits
When the Company cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal, or when the Company recognizes costs or expenses related to a
restructuring that involves the payment of termination benefits (the earlier is adopted), the employee benefits
liabilities caused by termination benefits are recognized and included in current profit or loss.
(4) Accounting method for other long-term employee benefits
25. Estimated liabilities
When the Company is involved in proceedings, debt guarantees, onerous contracts and reorganization events, if such events may require delivery of assets or rendering of services in the future and the amounts of such events can be reliably measured, estimated liabilities are recognized.
1. Recognition criteria of estimated liabilities
The Company recognizes the estimated liabilities when obligations related to contingencies satisfy all the following conditions:
(1) The obligation is a present obligation of the Company;
(2) The performance of the obligation is likely to result in outflow of economic benefits from the Company; and (3) The amount of the obligation can be measured reliably.
2. Measurement method of estimated liabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for the performance of relevant present obligations.
The Company, when determining the best estimate, has had a comprehensive consideration of risks with respect to contingencies, uncertainties and the time value of money. If the time value of money is significant, the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the outcomes within this range are unequal despite such a range exists, the outcomes within this range are unequally likely to occur, in case that the contingency involves a single item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more items, the best estimate should be determined according to all the possible outcomes with their relevant probabilities.
When all or part of the expenses necessary for the settlement of an estimated liability of the Company is expected to be compensated by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that the compensation will be received. The amount recognized for the compensation should not exceed the book value of the estimated liability.
26. Share-based payment
27. Other financial instrument as preferred stock and perpetual capital securities
28. Revenue
1. Recognition and measurement principles of revenue from sales of goods
(1) Overall recognition and measurement principles of revenue from sales of goods
When the Company has transferred significant risks and rewards of ownership of the goods to the buyer; the Company retains neither continuous management rights associated with ownership of the goods sold nor effective control over the goods sold; the relevant amount of revenue can be measured reliably; it is highly likely that the economic benefits associated with the transaction will flow into the enterprise; and the relevant amount of cost incurred or to be incurred can be measured reliably, revenue from sales of goods shall be recognized.
(2) Recognition criteria of revenue from selling goods and specific recognition timing criteria of revenue of the Company
The Company provides hotel accommodation service as well as goods. After the recognition of both housekeeping department and hotel reception desk, the daily business report is established. The accounting department makes sure the significant risks and rewards of ownership of the goods have been transferred to the client, the selling revenue is recognized.
2. Recognition and measurement principles of revenue from providing labor services
(1) The hotel room service, catering (breakfast) service etc. of the Company, after the hotel room service, catering (breakfast) service etc. had provided, and each consumption department had checked with the receptionist, the daily business report and detailed report of account receivables are established, and the reports are submitted to accounting department, which recognizes the revenue after examining the daily reports.
(2) Revenue from outsourced restaurant and site rental is recognized according to contract or agreement time period and time of collecting.
3. Recognition basis of revenue from transferring the use right of assets
The economic benefits related to the transaction may flow into entities and the amount of revenue can be reliably measured. The amount of revenue from transferring use right of assets is recognized as follows in different circumstances:
(1) The amount of interest income is determined by the time and effective interest rate for others to use the monetary funds of the Company.
(2) The amount of revenue from usage is determined according to the charging time and method as agreed in relevant contract or agreement.
29. Government subsidies
(1) Recognition basis and accounting treatment for government subsidies related to assets
Government subsidies related to acquisition and construction of fixed assets, intangible assets and other long-term assets are recognized as deferred income, and included in non-operating income by stages within the useful life of the assets acquired and constructed
(2) Recognition basis and accounting treatment for government subsidies related to income
If government subsidies related to income are used to compensate theenterprise’s relevant expenses or losses in future periods, such government subsidies should be recognized as deferred income on acquisition and be included into the current non-operating income in the period of recognizing relevant expenses; if government subsidies related to income are used to compensate theenterprise’s relevant expenses or losses incurred, such government subsidies are directly included into the current non-operating income on acquisition.
30. Deferred income tax assets and deferred income tax liabilities
Deductible temporary differences are recognized as deferred income tax assets to the extent that it shall not exceed future taxable income possibly available to be against the deductible temporary difference.
Deductible temporary differences are recognized as deferred income tax liabilities except in special circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be recognized include: the initial recognition of goodwill; other transactions or matters excluding business combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when occurred.
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge liabilities simultaneously, the income tax assets and income tax liabilities of the Company for the current period shall be presented based on the net amount after offset.
When the Company has the legal rights to balance income tax assets and income tax liabilities in current period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the income tax which imposed on the same taxpaying subject by the same tax collection authority or to different tax paying subjects, but, in each important future period in connection with the reverse of deferred income tax assets and liabilities, the involved tax paying subject intends to balance income tax assets and liabilities in current period with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax assets and deferred income tax liabilities of the Company shall be presented based on the net amount after offset.
31. Leasing
(1) Accounting of operating lease
1. Accounting of leased assets
Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the whole lease period (including rent-free period) and shall be included in the current expenses. Initial direct costs related to lease transactions paid by the Company shall be included in the current expenses.
If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the asset, such expenses shall be deducted from total lease fees, and residual lease fees shall be amortized over the lease period and included in the current expenses.
2. Accounting of leasing assets
Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the whole lease period (including rent-free period), and shall be recognized as lease income. Initial direct costs related to lease transactions paid by the Company shall be included in the current expenses; if the amount is large, it shall be capitalized, and shall be included in the current income by stages within the whole lease period on same basis for recognition of lease income.
If the expenses related to the lease which shall be paid by the lessee are borne by the Company, such expenses shall be deducted from total lease income by the Company, and residual lease fees shall be amortized over the lease period.
(2) Accounting treatment of finance lease
32. Other significant accounting policies and estimate
33. Significant accounting policies and changes of accounting estimate
(1) Changes of major accounting policies
□Applicable√ Not applicable
(2) Changes of major accounting estimate
□Applicable√ Not applicable
34. Other
VI. Taxation
1. Major tax types and tax rates
||||
|-|-|-|
|Taxation type|Basis of tax assessment|Tax rate|

||||
|-|-|-|
|Value added tax (VAT)|Revenue from sale of goods|3%|
|Business tax|Operating income|5%|
|Urban maintenance and construction tax|Turnover tax|7%|
|Enterprise income tax|Income tax payable|25%|
|Education surcharge|Turnover tax|3%|
|Local education surcharge|Turnover tax|2%|
||Remaining value after deducting 30% of||
|Property tax|the original value of houses (including land|1.2%|
||price)||
|Land use tax|Land area|RMB 18/m2|

As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations: Nil
2. Tax preference
3. Other
VII. Notes to the main items of financial statements
1. Monetary funds
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Cash|596,940.75|346,943.61|
|Bank deposit|19,185,451.51|22,203,345.93|
|Total|19,782,392.26|22,550,289.54|

 Other explanation
No accounts were mortgaged, frozen or restricted for their realization by other means, deposited overseas or with potential risk in recovery among ending balance.
2. Financial assets measured by fair value and with variations reckoned into current gains/losses
Nil
3. Derivative financial assets
□Applicable√Not applicable
4. Notes receivables
Nil
5. Accounts receivable
(1) Accounts receivable by type
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Ending balance|||||Beginning balance|||||
||Book balance||Provision for bad debts|||Book balance||Provision for bad debts|||
|Type|||||||||||
|||Proporti||Provisio|Book value||Proporti||Provision|Book value|
||Amount||Amount|||Amount||Amount|||
|||on||n ratio|||on||ratio||
|Accounts|||||||||||
|receivable|||||||||||
|with large|||||||||||
|single amount|||||||||||
||1,466,400.49|54.20%|1,466,400.49|100.00%||1,464,505.49|29.36%|1,464,505.49|100.00%||
|and accrued|||||||||||
|for provision|||||||||||
|of bad debt on|||||||||||
|a single basis|||||||||||
|Accounts|||||||||||
|receivable|||||||||||
|accrued for|||||||||||
||1,239,009.97|45.80%|778,812.69|62.86%|460,197.28|3,523,141.14|70.64%|890,762.12|25.28%|2,632,379.02|
|provision of|||||||||||
|bad debt by|||||||||||
|portfolio|||||||||||
|||100.00|||460,197.28||100.00|||2,632,379.02|
|Total|2,705,410.46||2,245,213.18|||4,987,646.63||2,355,267.61|||
|||%|||||%||||

Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at period-end:
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||Ending balance||||
|Content of accounts receivable|||||
||Accounts receivable|Provision for bad debts|Provision ratio|Reason for provision|
|||||Expected unrecoverable due to aging|
|Sanya Power Supply Company|775,304.98|775,304.98|100.00%||
|||||more than five years|
|Hainan Hong Kong & Macao||||Expected unrecoverable due to aging|
||464,563.21|464,563.21|100.00%||
|International Tourism Ltd.||||more than five years|
|Sanya City Council reception|101,652.32|101,652.32|100.00%|Expected unrecoverable due to aging|

||||||
|-|-|-|-|-|
|||||more than five years|
|LLC SOUTH CROSSTRAVELINN|||||
||124,879.98|124,879.98|100.00%||
|||||Had declared bankruptcy|
|Total|1,466,400.49|1,466,400.49|--|--|

Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
√Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Ending balance|||
|Aging||||
||Accounts receivable|Provision for bad debts|Provision ratio|
|Within 1 year||||
|Within one year|381,125.85|||
|Subtotal within one year|381,125.85|||
|1-2 years|44,442.72|2,222.14|5.00%|
|2-3 years|12,696.88|1,904.53|15.00%|
|3-4 years|21,084.00|5,271.00|25.00%|
|4-5 years|20,491.00|10,245.50|50.00%|
|More than five years|759,169.52|759,169.52|100.00%|
|Total|1,239,009.97|778,812.69||

Portfolio recognized:
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
(2) Provision for bad debts accrued, regain or switch back in the Period
In the Period, 0 Yuan accrued for provision of bad debts; RMB 110,054.43 provision for bad debts regains or switch back in the Period.
Including the followed significant amount: Nil
(3) Account receivables actually cancel after verification in Period
Nil
(4) Top five account receivables collected by arrears party at ending balance
Top five accounts receivable
|||||
|-|-|-|-|
|Name|Relationshipwith theCompany|Book balance|Aging|
|Sanya Power Supply Company|Non-relatedparty|775,304.98|More thanfive years|
|Hainan Hong Kong & MacaoInternational Tourism Ltd.|Non-relatedparty|464,563.21|More thanfive years|
|Sanya Haiyuan Aoda tourismdevelopment co., Ltd.|Non-relatedparty|265,274.00|1-3 years|
|LLC SOUTH CROSS TRAVELINN|Non-relatedparty|124,879.98|1-2 years|
|Hainan Seascape Paradise InternationalCo Ltd Sanya Wuzhizhou IslandTourist Area|Non-relatedparty|122,729.22|1-2 years|
|Total||1,752,751.39||

(5) Account receivables recognition terminated due to transfer of financial assets
(6) Account receivables transferred and assets& liability formed by its continuous involvement
Other notes: Nil
6. Prepayments
(1) Aging analysis of repayment
In RMB
||||||
|-|-|-|-|-|
||Ending balance||Beginning balance||
|Aging|||||
||Amount|Proportion|Amount|Proportion|
|Within 1 year|42,358.16|100.00%|40,778.52|100.00%|
|Total|42,358.16|--|40,778.52|--|

Reasons for significant repayment with over one year age without settle: Nil
(2) Top five prepayment collected by objects at ending balance
Other explanation:
7. Interest receivables
Nil
8. Dividend receivables
Nil
9. Other receivables
(1) Other receivables by type:
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Ending balance|||||Beginning balance|||||
||||Provision for bad||||||||
||Book balance|||||Book balance||Provision for bad debts|||
|Type|||debts|||||||Book|
||||||Book value||||||
|||Proporti|||||Proportio||||
|||||Provision|||||Provision|value|
||Amount||Amount|||Amount||Amount|||
|||on||ratio|||n||ratio||
|Other|||||||||||
|receivables|||||||||||
|with large|||||||||||
|single|||||||||||
|amount and|||77,363,143.||||||||
||77,363,143.31|98.79%||100.00%||77,363,143.31|98.64%|77,363,143.31|100.00%||
|accrued for|||31||||||||
|provision of|||||||||||
|bad debt on|||||||||||
|a single|||||||||||
|basis|||||||||||
|Other|||||||||||
|receivables|||||||||||
|accrued for||||||||||332,661.|
||946,271.35|1.21%|734,324.98|77.60%|211,946.37|1,064,685.19|1.36%|732,023.93|68.75%||
|provision of||||||||||26|
|bad debt by|||||||||||
|portfolio|||||||||||
||||78,097,468.||211,946.37|||||332,661.26|
|Total|78,309,414.66|100.00%||||78,427,828.50|100.00%|78,095,167.24|||
||||29||||||||

Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
√Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
||Ending balance||||
|Content of other receivables|||||
||Other receivables|Provision for bad debts|Provision ratio|Reason for provision|
|Hainan Dadonghai Hotel Co.,|||||
||54,767,945.15|54,767,945.15|100.00%|Unrecoverable|
|Ltd.|||||
|Cash dividends distributed in|||||
||16,899,000.00|16,899,000.00|100.00%|Unrecoverable|
|1994-1996|||||
|Hainan Hong Kong & Macao|||||
||4,145,704.16|4,145,704.16|100.00%|Unrecoverable|
|International Tourism Ltd.|||||
|Guangdong Jinma Tourism|||||
||1,200,494.00|1,200,494.00|100.00%|Unrecoverable|
|Ltd.|||||
|Shareholder custody fee|350,000.00|350,000.00|100.00%|Unrecoverable|
|Total|77,363,143.31|77,363,143.31|--|--|

 Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
√Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
||Ending balance|||
|Aging||||
||Other receivables|Provision for bad debts|Provision ratio|
|Within 1 year||||
|Within 1 year|120,020.36|||
|Subtotal within one year|120,020.36|||
|1-2 years|94,080.00|4,704.00|5.00%|
|2-3 years|3,000.00|450.00|15.00%|
|More than five years|729,170.99|729,170.99|100.00%|
|Total|946,271.35|734,324.98||

Portfolio recognized:
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
□Applicable√ Not applicable
(2) Provision for bad debts accrued, regain or switch back in the Period
RMB 2,301.05 provision for bad debts accrued in the Period; and no regains or switch back in the Period.
Including the followed significant amount: Nil
(3) Other account receivables actually cancel after verification in Period
Nil
(4) Other account receivables category by nature of money
In RMB
||||
|-|-|-|
|Nature of money|||
||Ending book balance|Beginning book balance|
|Original relevant companies fund accounts|54,767,945.15|54,767,945.15|
|Contracting profit receivable|4,145,704.16|4,145,704.16|
|Distributing dividends receivable|18,099,494.00|18,099,494.00|
|Guarantee deposit|561,818.99|568,672.32|
|Advance money for custody fee|350,000.00|350,000.00|
|Other fund accounts|153,764.20|98,126.20|
|Petty money|86,446.24|158,687.15|
|Utilities|70,789.50|140,519.65|
|Money from invested items|30,500.00|30,500.00|
|Personal social security、Accumulation|||
||37,952.42|63,179.87|
|fund|||
|Project funds|3,700.00|3,700.00|
|Cash deposit for invoices|1,300.00|1,300.00|
|Total|78,309,414.66|78,427,828.50|

 (5) Top five other account receivables collected by arrears party at ending balance
In RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion in totalother receivables|Ending balance of bad|
|Company name|Nature of money|Ending balance|Aging|||
||||||debt provision|
|Hainan Dadonghai Hotel Co.,|Contacts of original||More than fiv|e69.94%||
|||54,767,945.15|||54,767,945.15|
|Ltd.|related units||years|||
|Cash dividends distributed in|Dividends paid||More than fiv|e21.58%||
|||16,899,000.00|||16,899,000.00|
|1994-1996|receivable||years|||
|Hainan Hong Kong & Macao|Contract profit||More than fiv|e5.29%||
|||4,145,704.16|||4,145,704.16|
|International Tourism Ltd.|receivable||years|||

|||||||
|-|-|-|-|-|-|
|Guangdong Jinma Tourism|Dividends paid||Within five|||
|||1,200,494.00||1.53%|1,200,494.00|
|Ltd.|receivable||years|||
||Replacement of||More than five|||
|Shareholder custody fee||350,000.00||0.45%|350,000.00|
||trustee fee||years|||
|Total|--|77,363,143.31|--|98.79%|77,363,143.31|

 (6) Account receivables with government subsidies involved
Nil
(7) Other account receivables recognition terminated due to transfer of financial assets
Nil
(8) Other account receivables transferred and assets& liability formed by its continuous involvement Nil
10. Inventories
(1) Classification of inventories
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Beginning balance|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserve|||reserve||
|Stock materials|885,380.88|745,479.33|139,901.55|967,441.05|747,043.57|220,397.48|
|Stock|||||||
||22,771.38|11,102.41|11,668.97|22,771.38|11,102.41|11,668.97|
|commodities|||||||
|Food and|||||||
||39,578.03||39,578.03|56,723.64||56,723.64|
|beverages|||||||
|Fuels|26,926.88||26,926.88|18,267.20||18,267.20|
|Total|974,657.17|756,581.74|218,075.43|1,065,203.27|758,145.98|307,057.29|

 (2) Inventory depreciation reserve
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increased in 2015||Decreased in 2015|||
||Beginning||||||
|Item||||Reversing or||Ending balance|
||balance|Accrual|Other||Other||
|||||write-off|||

|||||
|-|-|-|-|
|Stock materials|747,043.57|1,564.24|745,479.33|
|Stock|11,102.41||11,102.41|
|commodities||||
|Total|758,145.98|1,564.24|756,581.74|

 (3) Explanation on inventories with capitalization of borrowing costs included at ending balance
Nil
(4) Assets unsettled formed by construction contract which has completed at period-end
Nil
11. Divided into assets held for sale
Nil
12. Non-current assets maturing within one year
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Long-term differed expenses needed to be|||
||532,500.00|196,354.90|
|amortized within one year|||
|Total|532,500.00|196,354.90|

 Other note: amortization of the hotel's external wall decoration
13. Other non-current assets
Nil
14. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||Ending balance|||Beginning balance|||
|Item||Provision for||Book balance|Provision for||
||Book balance||Book value|||Book value|
|||impairment|||impairment||
|Available-for-sale equity||||9,500,000.00|||
||9,500,000.00|5,000,000.00|4,500,000.00||5,000,000.00|4,500,000.00|
|instruments:|||||||
|Measured at cost|9,500,000.00|5,000,000.00|4,500,000.00|9,500,000.00|5,000,000.00|4,500,000.00|

||||||||
|-|-|-|-|-|-|-|
|Total|9,500,000.00|5,000,000.00|4,500,000.00|9,500,000.00|5,000,000.00|4,500,000.00|

 (2) Available-for-sale financial assets measured at fair value at period-end
Nil
(3) Available-for-sale financial assets measured at cost at the end of the period
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Book balance||||Provision for impairment||||Shareholdin|Cash|
|Item|Beginning|Increase|Decrease|Ending|Beginning|Increase in|Decrease|Ending|g ratio in|dividends|
||balance|in 2015|in 2015|balance|balance|2015|in 2015|balance|investee|in 2015|
|Shenzhen|||||||||||
|Difu|||||||||||
|Investment|||||||||||
||5,000,000.00|||5,000,000.00|5,000,000.00|||5,000,000.00|14.28%||
|&|||||||||||
|Developm|||||||||||
|ent Ltd|||||||||||
|Sanya|||||||||||
|Xiangyu|||||||||||
||4,500,000.00|||4,500,000.00|||||18.00%||
|E-business|||||||||||
|Ltd.|||||||||||
|Total|9,500,000.00|||9,500,000.00|5,000,000.00|||5,000,000.00|--||

(4) Changes of impairment of available-for-sale financial assets in Period
Nil
(5) Fair value of the available-for-sale equity instrument drops significantly or not contemporarily without depreciation reserves accrued
Nil
15. Held-to-maturity investment
(1) Held-to-maturity investment
Nil
(2) Important held-to-maturity investment at period-end
Nil
(3) Reclassify of held-to-maturity investment in the period
Nil
16. Long-term account receivables
Nil
17. Long-term equity investments
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Changes in 2014||||||||||
|||||Investme||||||||
|||||nt|Adjustme|||||||
||||||||Cash|Provisio|||Impairment|
|||Additiona|Capita|gains/loss|nt of|Other||||||
||Beginning||||||dividend|n for|O|Ending|provision at|
|Investee||||||||||||
|||l|l|es|other|equity||||||
||balance||||||or profit|impairm|th|balance|ending|
|||investmen|reduct|recognize|comprehe|change||||||
||||||||declare to|ent|er||balance|
|||t|ion|d by|nsive|s||||||
||||||||issue|losses||||
|||||equity|income|||||||
|||||method||||||||
|I. Joint venture||||||||||||
|II. Associated enterprise||||||||||||
|Hubei Jingsha||||||||||||
|Dadonghai Club|4,566,207.42|||||||||4,566,207.42|4,566,207.42|
|Ltd.||||||||||||
|Sanya Shun’an||||||||||||
||5,150,166.84|||||||||5,150,166.84|5,150,166.84|
|Casino||||||||||||
|Subtotal|9,716,374.26|||||||||9,716,374.26|9,716,374.26|
|Total|9,716,374.26|||||||||9,716,374.26|9,716,374.26|

 Other note: Nil
18. Investment real estate
(1) Investment real estate by cost measurement
□ Applicable√ Not applicable
(2) Investment real estate by fair value
□ Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Nil
19. Fixed assets
(1) Fixed assets
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Buildings and|||Electronic||Decoration and||
|Item||Machines|Vehicles||Others||Total|
||Constructions|||Equipments||improvement||
|I. Original book value:||||||||
|1.Beginning balance|155,421,287.59|13,858,617.00|2,091,322.77|2,915,951.78|2,244,075.09|10,114,923.89|186,646,178.12|
|2. Increase in 2015||2,900.00||95,403.00|99,028.00||197,331.00|
|(1) Purchase||2,900.00||95,403.00|99,028.00||197,331.00|
|(2) transfer in of||||||||
|the construction project||||||||
|(3) the increase in||||||||
|business combination||||||||
|3. Decrease in 2015||720,046.00||447,140.82|283,650.80|9,656,191.50|11,107,029.12|
|(1) Disposal or||||||||
|||720,046.00||447,140.82|283,650.80|9,656,191.50|11,107,029.12|
|scrap||||||||
|4.Ending balance|155,421,287.59|13,141,471.00|2,091,322.77|2,564,213.96|2,059,452.29|458,732.39|175,736,480.00|
|II. Accumulated||||||||
|depreciation||||||||
|1.Beginning balance|72,118,907.64|9,172,279.82|929,608.42|2,230,875.59|1,550,861.86|9,907,638.08|95,910,171.41|
|2. Increase in 2015|3,285,224.22|303,287.35|172,182.48|276,348.49|165,240.93|102,871.39|4,305,154.86|
|(1) Disposal or||||||||
||3,285,224.22|303,287.35|172,182.48|276,348.49|165,240.93|102,871.39|4,305,154.86|
|scrap||||||||
|3. Decrease in 2015||661,019.82||408,989.16|239,536.84|9,656,191.50|10,965,737.32|
|(1) Disposal or||||||||
|||661,019.82||408,989.16|239,536.84|9,656,191.50|10,965,737.32|
|scrap||||||||
|4.Ending balance|75,404,131.86|8,814,547.35|1,101,790.90|2,098,234.92|1,476,565.95|354,317.97|89,249,588.95|
|III．Depreciation reserve||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|1.Beginning balance|31,685,159.76|2,527,851.26||21,643.05|199,992.57||34,434,646.64|
|2. Increase in 2015|792,028.88||||||792,028.88|
|(1) Withdraw|792,028.88||||||792,028.88|
|3. Decrease in 2015||||19,771.05|||19,771.05|
|(1) Disposal or||||||||
|||||19,771.05|||19,771.05|
|scrap||||||||
|4.Ending balance|32,477,188.64|2,527,851.26||1,872.00|199,992.57||35,206,904.47|
|IV．Book value of fixed||||||||
|assets||||||||
|(1) Book value at the end||||||||
||47,539,967.09|1,799,072.39|989,531.87|464,107.04|382,893.77|104,414.42|51,279,986.58|
|of the period||||||||
|(2) Book value at the||||||||
||51,617,220.19|2,158,485.92|1,161,714.35|663,433.14|493,220.66|207,285.81|56,301,360.07|
|beginning of the period||||||||

(2) Fixed assets temporarily idled
In RMB
|||||||
|-|-|-|-|-|-|
|||Accumulated|Provision for|Book value||
|Item|Original book value||||Remark|
|||depreciation|impairment|||
|24 inches Shanrui cup|153,919.64|5,433.83|140,788.83|7,696.98||
|Furniture cleaning||||||
||20,322.04|5,434.94|13,871.00|1,016.10||
|machine||||||
|Four heads coffee||||||
||7,758.14|2,070.23|5,300.00|387.91||
|machine||||||
|Thermal cabinet|26,202.02|6,917.92|17,974.00|1,310.10||
|Milk shaker|9,221.94|184.00|9,037.94|||
|VIP card stamping and||||||
||13,286.80|266.00|13,020.80|||
|coloring machine||||||

(3) Fixed assets rented by finance leases
Nil
(4) Fixed assets leased in the operating leases
Nil
(5) Fixed assets without certificate of title completed
Nil
20. Construction in process
Nil
21. Engineering materials
Nil
22. Disposal of fixed assets
Nil
23. Productive biological assets
(1) Measured by cost
□Applicable√ Not applicable
(2) Measured by fair value
□Applicable√ Not applicable
24. Oil-and-gas assets
□Applicable√ Not applicable
25. Intangible assets
(1) Intangible assets
In RMB
||||||
|-|-|-|-|-|
||||Non-patent||
|Item|Land use right|Patent right||Total|
||||technology||
|I. Original book value|||||
|1. Beginning balance|87,315,277.74|||87,315,277.74|
|2. Increase in the period|||||
|(1) Purchase|||||
|(2) Internal R&D|||||

||||
|-|-|-|
|(3) Increase in|||
|enterprise merger|||
|3. Decrease in the|||
|period|||
|(1) Disposal|||
|4. Ending balance|87,315,277.74|87,315,277.74|
|II. Accumulated|||
|amortization|||
|1. Beginning balance|30,751,269.08|30,751,269.08|
|2. Increase in the period|868,727.16|868,727.16|
|(1) Withdraw|868,727.16|868,727.16|
|3. Decrease in the|||
|period|||
|(1) Disposal|||
|4. Ending balance|31,619,996.24|31,619,996.24|
|III. Depreciation reserve|||
|1. Beginning balance|29,343,890.98|29,343,890.98|
|2. Increase in the period|||
|(1) Withdraw|||
|3. Decrease in the|||
|period|||
|(1) Disposal|||
|4. Ending balance|29,343,890.98|29,343,890.98|
|IV. Booking value|||
|1. Ending book value|26,351,390.52|26,351,390.52|
|2. Beginning book|||
||27,220,117.68|27,220,117.68|
|value|||

The proportion of intangible assets balance accounted for by the company's internal R& D by the end
(2) Land use right without certificate of title completed
Nil
26. Development expenditure
Nil
27. Goodwill
Nil
28. Long-term deferred expenses
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase in the|Amortization in the|||
|Item|Beginning balance|||Other decreases|Ending balance|
|||period|period|||
|B building coating||||||
|||1,508,750.00|||1,508,750.00|
|project||||||
|Total||1,508,750.00|||1,508,750.00|

 Other note
29. Deferred income tax assets / deferred income tax liabilities
Nil
30 .Other non-current assets
Nil
31 .Short-term loans
Nil
32. Financial liabilities measured at fair value through current profit and loss
Nil
33. Derivative financial liabilities
□Applicable√ Not applicable
34. Note payable
Nil
35. Accounts payable
(1) Details of accounts payable are as follows
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Within 1 year (including 1 year)|923,373.39|798,580.05|
|1-2 years (including 2 years)|205,220.78|562,577.83|
|2-3 years (including 3 years)|334,316.59|145,272.00|
|Over 3 years|952,691.61|883,915.31|
|Total|2,415,602.37|2,390,345.19|

 (2) Accounts payable with major amount and aging of over one year
Nil
36. Accounts received in advance
(1)Accounts received in advance
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Within 1 year (including 1 year)|601,642.54|861,565.30|
|1-2 years (including 2 years)|133,860.80|48,544.76|
|2-3 years (including 3 years)|23,959.76|77,206.88|
|Over 3 years|394,391.85|372,928.97|
|Total|1,153,854.95|1,360,245.91|

 (2) Accounts received in advance with major amount and aging of over one year
Nil
(3) Assets settled formed by construction contract which has un-completed at period-end
Nil
37. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
||||||
|-|-|-|-|-|
|Item|Beginning balance I|ncrease in the period|Decrease in the period|Ending balance|
|I. Short-term employee benefits|3,451,674.05|9,046,693.47|10,348,003.12|2,150,364.40|
|II. Post-employment benefits -|||||
|||790,155.98|790,155.98||
|defined contribution plans|||||
|Total|3,451,674.05|9,836,849.45|11,138,159.10|2,150,364.40|

 (2) Short-term employee benefits
In RMB
||||||
|-|-|-|-|-|
|Item|Beginning balance|Increase in the period|Decrease in the period|Ending balance|
|1.Salary, bonus, allowance and|||||
||2,639,312.64|7,093,820.53|8,437,278.53|1,295,854.64|
|subsidy|||||
|2.Employee welfare||1,213,510.51|1,213,510.51||
|3.Social insurance premium||391,912.68|391,912.68||
|Of which：including: medical|||||
|||343,997.15|343,997.15||
|insurance expenses|||||
|Work injury insurance|||||
|||20,128.15|20,128.15||
|expenses|||||
|Maternity insurance||27,787.38|27,787.38||
|4.Housing provident funds||103,600.88|103,600.88||
|5.Labor union expenditures|||||
|and employee education|812,361.41|243,848.87|201,700.52|854,509.76|
|expenses|||||
|Total|3,451,674.05|9,046,693.47|10,348,003.12|2,150,364.40|

 (3) Details of defined contribution plans
In RMB
||||||
|-|-|-|-|-|
|Item|Beginning balance|Increase in the period|Decrease in the period|Ending balance|
|1.Basic endowment|||||
|||744,715.22|744,715.22||
|insurance expenses|||||
|2.Unemployment|||||
|||45,440.76|45,440.76||
|insurance expenses|||||
|Total||790,155.98|790,155.98||

Other note: Nil
38 .Taxes and surcharges payable
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|VAT|135,982.62|135,982.62|
|Business tax|127,228.90|86,744.38|
|Enterprise income tax|-1,702,702.80|-1,702,702.80|
|Individual income tax|6,804.20|16.52|
|Urban maintenance and construction tax|6,105.02|6,072.11|
|Educational surtax|4,360.73|4,337.22|
|Property tax||204,986.70|
|Land use tax||108,590.94|
|Total|-1,422,221.33|-1,155,972.31|

 Other note: Nil
39. Interest payable
Nil
40. Dividend payable
Nil
41 .Other payables
(1) Other payables by items
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Fine for rule-breaking operation on the|||
||19,810,000.00|19,810,000.00|
|stock of the Company|||
|Audit fee|285,003.21|285,003.21|
|Project funds|1,246,613.78|287,277.05|
|Agency fund|453,720.42|403,164.88|

||||
|-|-|-|
|Quality retention money（Cash deposit）|248,196.75|248,196.75|
|Guarantee deposit|430,809.90|1,175,809.90|
|membership of Board director、 the board|||
||148,506.98|148,506.98|
|of supervisors|||
|Personal fund accounts|91,041.38|363,635.61|
|Other fund accounts|938,635.86|897,776.73|
|Total|23,652,528.28|23,619,371.11|

 (2) Other payables with large amount and aging of over one year
In RMB
||||
|-|-|-|
|Company name|Ending balance|Reason for non-repayment or carryover|
|China Securities Regulatory Commission|19,810,000.00|Financial difficulty|
|Hong Kong Deloitte & Touche LLP|285,003.21|No settlement|
|Sanya Shuxin Building Waterproofing Co.|||
||170,000.00|No settlement|
|Ltd|||
|China Building Decoration Company|||
||161,111.03|No settlement|
|Hannan Branch|||
|Total|20,426,114.24|--|

Other notes: Nil
42. Divided into liability held for sale
Nil
43. Non-current liability due within one year Nil
44. Other current liability
Nil
45. Long-term loans
Nil
46. Bond payable
Nil
47. Long-term payable
Nil
48. Long-term employee salary payable
Nil
49. Specific payable
Nil
50. Estimates liabilities
Nil
51. Deferred income
Nil
52. Other non-current liability
Nil
53 .Share capital
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase or decrease (+, －)||||||
|||||Share capital||||
||Beginning|||||||
||||||||Ending balance|
||balance|New issue|Shares granted|converted from|Others|Sub-total||
|||||reserve fund||||
|Total shares|364,100,000.00||||||364,100,000.00|

 Other note: Nil
54. Other equity instruments
Nil
55 .Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Item|Beginning balance|Increase in the period|Decrease in the period|Ending balance|
|Capital (share capital)|||||
||33,336,215.58|||33,336,215.58|
|premium|||||
|Other capital reserves|20,806,634.43|||20,806,634.43|
|Total|54,142,850.01|||54,142,850.01|

 Other instructions, including changes in the current period, reasons for the change: Nil
56. Treasury stock
Nil
57. Other comprehensive income
Nil
58. Reasonable reserves
Nil
59. Surplus reserves
Nil
60 .Undistributed profits
In RMB
||||
|-|-|-|
|Item|The period|Last period|
|Undistributed profit of period-begin afteradjustment|-333,827,515.68||
|||-336,331,002.15|
|Plus: net profit attributable to owner of parentcompany in the period|||
||-7,477,866.40|2,503,486.47|
|Undistributed profits of period-end|-341,305,382.08|-333,827,515.68|

 Adjustment of undistributed profit at period-begin:
1) For the retroactive adjustment based on Accounting Standards for Business Enterprises and other relevant regulations, affected
undistributed profit at period-begin of 0 Yuan
2) For changes of accounting policies, affected undistributed profit at period-begin of 0 Yuan
3) For correction on major accounting errors, affected undistributed profit at period-begin of 0 Yuan
4) For changes of consolidation scope from same controlling, affected undistributed profit at period-begin of 0 Yuan
5) Other adjustment totally affected undistributed profit at period-begin of 0 Yuan
61 .Operating income and operating cost
In RMB
||||||
|-|-|-|-|-|
||Amount as the period||Amount as last period||
|Item|||||
||Income|Cost|Income|Cost|
|Main business|15,885,922.90|626,661.16|20,202,134.10|337,785.89|
|Total|15,885,922.90|626,661.16|20,202,134.10|337,785.89|

 62 .Business tax and surcharges
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Business tax|819,179.54|1,013,927.25|
|Urban maintenance and construction tax|57,342.58|70,974.91|
|Educational surtax|40,958.98|50,696.38|
|Total|917,481.10|1,135,598.54|

 Other note: Nil
63 .Selling expenses
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Salary|4,398,716.49|3,148,970.88|
|Depreciation|3,998,200.62|4,219,719.22|
|Water and electricity fee|1,298,494.95|1,323,395.39|
|Repair charges|831,104.60|615,830.33|
|Other expenses|2,441,944.71|2,475,496.07|
|Total|12,968,461.37|11,783,411.89|

 Other note: Nil
64 .Administrative expenses
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Staff salary and welfare|3,176,631.18|4,088,037.72|
|Taxes|1,253,059.06|1,265,633.31|
|Business entertainment|1,496,691.06|941,322.90|
|Labor insurance expenses|503,883.72|1,116,266.44|
|Amortization of site use right|868,727.16|868,727.16|
|Other expenses|2,973,270.68|3,143,215.34|
|Total|10,272,262.86|11,423,202.87|

 Other note: Nil
65 .Financial expenses
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Less: interest income|-172,796.40|-71,232.46|
|Handling charges|63,582.60|110,748.81|
|Total|-109,213.80|39,516.35|

 Other note: Nil
66. Losses on assets impairment
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|I. Losses on bad debt|-107,753.38|212,606.59|
|VII. Loss on fixed asset impairment|792,028.88||
|Total|684,275.50|212,606.59|

 Other note:
Losses on assets impairment of the current period increased by RMB 471,668.91 on a year-on-year basis, or an increase of221.85%, mainly due to withdraw bad debt provision on the construction of seafood mill, box engineering and multi-functional conference hall which set up illegally, according to No.B082、B083[2015] literature of Sanya Jiyan district City Administration Bureau (the appearance of Sanya city for Dadonghai).
67. Gains from changes of fair value
Nil
68. Gains on investment
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Investment income of available-for-sale|||
|||2,020,000.00|
|financial assets in holding period|||
|Investment income obtained from disposal of|||
|||2,000,000.00|
|available-for-sale financial assets|||
|Other creditor’s right income from investment|422,000.00||
|Total|422,000.00|4,020,000.00|

 Other note: Nil
69 .Non-operating incomes
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Item|Amount as the period|Amount as last period||
||||non-recurring profits or losses|
|Total gains on disposal of||3,126,454.22||
|non-current assets||||
|Including: gain on disposal of||||
|||3,126,454.22||
|fixed assets||||
|Income from compensation|105,919.00|91,123.01|105,919.00|
|Confiscated income|1,194,445.50||1,194,445.50|
|Others|342,738.77|2,768.04|342,738.77|
|Total|1,664,926.64|3,220,345.27|1,664,926.64|

 Government subsidy reckoned into currentgains/losses：Nil
Other note:
Confiscated income of non-operating income is RMB 1,194,445.50 due to previous second largest stockholder PanGuoping’s corporate stock earning in rule-breaking operations; Others income of non-operating income is RMB 342,738.77 due to previous general manager Sun Hongjie of South China Grand Hotel hands in the profit target because of the target management responsibility literature.
70. Non-operating expenses
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Item|Amount as the period|Amount as last period||
||||non-recurring profits or losses|

|||||
|-|-|-|-|
|Total losses on disposal of|90,560.75|6,870.77||
||||90,560.75|
|non-current assets||||
|Including: loss on disposal of||||
||90,560.75|6,870.77||
|fixed assets||||
|Amercement outlay|200.00||200.00|
|Overdue fine|27.00||27.00|
|Total|90,787.75|6,870.77|90,787.75|

 Other note: Nil
71 .Income tax expenses
Nil
72 .Other comprehensive income
More details can be seen in Note.
73. Notes to statement of cash flows
(1) Other cash receipts related to operating activities
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Confiscated income|1,194,445.50||
|Interest income|172,796.40|71,232.46|
|Handling charges for price adjustment fund|346,472.00|343,404.00|
|Current account from Maming|240,000.00||
|Compensation for articles in the guest|||
||105,919.00|91,123.01|
|rooms|||
|Others|21,748.00|163,950.73|
|Individual social insurance||307,260.55|
|Electricity fee||40,547.95|
|Receive current account of Sanya Haiyuan|||
|||2,808,368.63|
|Hotel Management Ltd.|||

||||
|-|-|-|
|Total|2,081,380.90|3,825,887.33|

 Note of other cash receipts related to operating activities: Nil
(2) Cash paid for other operating activities
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Business entertainment expenses|1,476,274.02|1,017,733.30|
|Traveling expenses|643,482.95|906,196.32|
|Office expenses|38,972.69|11,557.60|
|Listing fee|80,000.00|80,000.00|
|Repair charge|109,586.10|19,824.50|
|Postage|47,493.71|38,624.99|
|Fuel fee, electricity fee and gas fee|114,360.00|114,961.00|
|Audit fee|402,000.00|352,000.00|
|Announcement fee|240,202.00|280,000.00|
|Directors and supervisors membership|||
||282,644.70|278,437.35|
|dues|||
|Price adjustment fund|338,670.00|342,036.00|
|Individual workers insurance fee and|||
||519,817.96|307,260.55|
|housing fund|||
|Financial costs|63,582.60|110,748.81|
|Guarantee deposit from Sun Hongjie|657,261.23||
|Current account of Luoniushan Co., Ltd.||800,000.00|
|Other expenses|441,379.62|266,877.82|
|Total|5,455,727.58|4,926,258.24|

 Note of cash paid for other operating activities: Nil
(3) Cash received with other investment activities concerned
Nil
(4) Cash paid for other investment activities
Nil
(5) Cash received with other financing activities concerned
Nil
(6) Cash paid for other financing activities
Nil
74 .Supplementary information to statement of cash flows
(1) Supplementary information to statement of cash flows
In RMB
||||
|-|-|-|
|Supplementary information|Amount as the period|Amount as last period|
|(1) Net profit adjusted to cash flows from operating activities:|--|--|
|Net profit|-7,477,866.40|2,503,486.47|
|Plus: provision for asset impairment|684,275.50|212,606.59|
|Depreciation of fixed assets, gas and oil assets and productive biological|||
||4,305,154.86|4,552,530.56|
|assets|||
|Amortization of intangible assets|868,727.16|894,941.04|
|Amortization of long-term deferred expenses|285,104.90|386,191.87|
|Loss on disposals of fixed assets, intangible assets and other long-term|||
||90,560.75|-3,119,583.45|
|assets ("-" for gains)|||
|Investments loss ("-" for gains)|-422,000.00|-4,020,000.00|
|Decrease in inventories ("-" for increases)|90,546.10|11,329.70|
|Decrease in operating receivables ("-" for increases)|2,399,070.37|3,415,356.20|
|Increase in operating payables ("-" for decreases)|-2,569,099.52|-2,404,790.90|
|Net cash flows from operating activities|-1,745,526.28|2,432,068.08|
|2. Significant investing and financing activities not involving cash|||
||--|--|
|receipts and payments:|||
|3. Net changes in cash and cash equivalents:|--|--|
|Ending balance of cash|19,782,392.26|22,550,289.54|

||||
|-|-|-|
|Less: Beginning balance of cash|22,550,289.54|6,835,685.46|
|Net increase in cash and cash equivalents|-2,767,897.28|15,714,604.08|

 (2) Net cash paid for subsidiary obtained in Period
Nil
(3) Net cash received from disposal of subsidiary in Period
Nil
(4) Breakdowns of cash and cash equivalents
In RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|I. Cash|19,782,392.26|22,550,289.54|
|Including: cash on hand|596,940.75|346,943.61|
|Bank deposit available for payment at any|||
||19,185,451.51|22,203,345.93|
|time|||
|III. Ending balance of cash and cash|19,782,392.26|22,550,289.54|
|equivalents|||

Other note: Nil
75. Notes on items of changes ofowner’s equity
Name and adjusted amount on “Other” at balance of year-end of last year: Nil
76. Assets with ownership or right-to-use restricted
Nil
77. Foreign currency monetary items
(1) Foreign currency monetary items
Nil
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreign main operation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency changed
□Applicable√ Not applicable
78. Hedging
Disclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative information for arbitrage project: Nil
79. Other
Nil
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
(1) Enterprise consolidation not under the same control in reporting period
Nil
(2) Consolidation cost and goodwill
Nil
(3) Identifiable assets, liability of the acquiree on purchasing date
Nil
(4) Gains or losses of the equity held before purchasing date, arising from re-measured by fair value Realized enterprise combine step by step through multi-trading and dealing obtained controlling rights in Period
□Yes√No
(5) On purchasing date or current combine period, fails to determine the combination consideration oracquiree’s fair value of identifiable assets and liabilities rationally
Nil
(6) Other notes
Nil
2. Enterprise consolidation under the same control
(1) Business combination under the same control during this period
Nil
(2) Combined cost
Nil
(3) Book value of the consolidated assets and liabilities on the consolidated date
Nil
3. Counter purchase
Basic information of transactions, basis of transactions constituting counter purchase, whether assets and liabilities reserved by listed companies constituting business and their basis, confirmation of combined cost, the amount occurred when adjusting rights and interests in accordance with equity transaction and its calculation: Nil
4. Disposal of subsidiaries
Losing controlling rights while dispose subsidiary on one-time
□Yes√No
Dispose subsidiary step by step through multi-dealings and losing controlling rights in the Period
□Yes√No
5. Changes of combination scope
Other reasons contributed the changes for combination scope (e.g. new subsidiary established, liquidate subsidiary etc.): Nil 6. Other
The scope of consolidation (aggregation) of financial statements covers the headquarter of the Company and the subsidiary South China Grand Hotel of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd., which is subject to independent accounting.
There is no change in scope of consolidation (aggregation) of the financial statements of the Company in 2015. IX. Equity in other entity
1. Equity in the subsidiary
Nil
2. Changes in the owner's equity share of the subsidiary and the transaction is still controlled subsidiary Nil
3. Equity in arrangement of joint venture or associated enterprises
Nil
4. Important common management
Nil
5. Equity in structured entities not included in the consolidated financial statements
Note of structured entities not included in the consolidated financial statements: Nil
6. Other
Nil
X. The risk associated with financial instruments
The Company faces a variety of financial risks in business process: credit risk, market risk and liquidity risk. TheCompany’s Board of Directors is overall responsible for risk management objectives and determining policies, and bears the ultimate responsibility for risk management objectives and policies, but the board has authorized theCompany’s enterprise management department to design and executive the procedure which could guarantee the effective implementation of risk management objectives and policies. TheCompany’s internal auditors will audit the policies and procedures of risk management as well, and will report the discovery to Audit Committee. The overall objective of theCompany’s risk management is to set the risk management policies to reduce risks as possible without giving excessive influence to competitiveness and strain capacity of the Company.
(I) Credit risk
Credit risk is the risk of financial loss on one party of a financial instrument due to the failure of another party to meet its obligations. The Company mainly faces credit risk generated from customers through credit sales. The Company will understand and assess the credit risk of the new customer before signing the new contract. The Company makes credit rating for existing customers and aging analysis of accounts receivable to ensure theCompany’s overall credit risk falls within a controllable range.
(II) Market risk
Market risk is the risk of financialinstruments’ fair value and future cash flow fluctuating due to change of market price, including currency risk, interest risk and other pricing risk.
(III) Liquidity risk
Liquidity risk is the risk that an enterprise may encounter deficiency of funds in fulfilling the obligations when paying cash or settle in way of other financial assets. The policy of the Company is to ensure there are enough
cash to pay back mature debts. The liquidity risk is centralized controlled by theCompany’s accounting department. The accounting department ensure the Company to possess enough cash to pay back the debts in all reasonable foreseeable circumstances through monitor the balance of cash, monitor the securities that can be converted into cash at any time and rolling forecasts of future cash flows in twelve months.
XI. Disclosure of fair value
Nil
XII. Related parties and related party transactions
1. Parent company of the company
Nil
2. Subsidiary of the Company
More detail of subsidiary of the Company can be seen in Note.
3. Joint-venture and affiliated enterprise of the Company
Nil
4. Other related parties
|||
|-|-|
|Name|Relationship with the Company|
|Luoniushan Co., Ltd.|The largest shareholder|

Other notes
As of December 31, 2015, Luoniushan Co., Ltd., as the largest shareholder, held 61,190,300 shares(16.81% of the total share capital of the Company).
5. Related party transactions
(1) Sale of goods/rendering of labor services/labor service offering
Sale of goods/rendering of labor services
Nil
Goods sold and labor service offering
In RMB
|||||
|-|-|-|-|
||Contents of related party|||
|Related party||Amount as the period|Amount as last period|
||transactions|||
|Luoniushan Co., Ltd.||28,981.89|76,626.70|
||Accommodation|||

Note of sale of goods/rendering of labor services/labor service offering: Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Nil
(3) Related leasing
Nil
(4) Related guarantee
Nil
(5) Borrowed funds of related party
Nil
(6) Relatedparty’s assets transfer and debt reorganization
Nil
(7) Remuneration of key management
In RMB
||||
|-|-|-|
|Item|Amount as the period|Amount as last period|
|Key management compensation|1,147,100|914,600|

 (8) Other related transactions
6. Receivables and payables of related parties
(1) Receivable
In RMB
|||||||
|-|-|-|-|-|-|
|||Ending balance||Beginning balance||
|Name|Related party||Provision for bad||Provision for bad|
|||Book balance||Book balance||
||||debt||debt|
|Accounts receivable|Luoniushan Co., Ltd.|8,413.23||4,749.00||

(2) Payables
Nil
7. Related party commitment
Nil
8. Other
Nil
XIII. Share-base payment
1. Overall performance of share-base payment
□Applicable√ Not applicable
2. Share-base payment settled by equity
□Applicable√ Not applicable
3. Share-base payment settled by cost
□Applicable√ Not applicable
4. Modification and termination of share-base payment
Nil
5. Other
Nil
XIV. Commitments and contingencies
1. Material commitments
Major commitments on balance sheet date
No commitments should be disclosed
2. Contingencies
(1) Major contingencies on balance sheet date
No contingencies should be disclosed
(2) For no major contingencies disclosed, explain reasons
The Company has no major contingencies should be disclosed
3. Other
XV. Event after balance sheet date
1. Major non-adjustment events
Nil
2. Profit distribution
Nil
3. Sales return
Nil
4. Explanation on other events after balance sheet date
On 24 March 2016, being decision from
8th
meeting of
8th
session of the Board, the Company plans no profit distribution and capitalizing of common serves either.
XVI. Other significant events
1 .Correction of accounting errors in previous period
(1) Retrospective restatement method
Nil
In RMB (2) Prospective application method
Nil
2. Debt reorganization
Nil
3. Assets replacement
(1) Non-monetary assets replacement: Nil
(2) Others assets replacement: Nil
4. Annuity plan
5. Termination of operation
Nil
6. Segment information
Nil
7. Major trading and items shows influence oninvestors’ decision-making
Nil
8. Other
The target management responsibility literature signed between the Company and Mr. Sun Hongjie concerning South China Grand Hotel has been terminated in May of 2015.
XVII. Note on financial statement of parent company
1. Accounts receivable
(1) Accounts receivable by type
Nil
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at period-end:
□Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
□Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio: Nil
□Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio: Nil
(2) Provision for bad debts accrued, regain or switch back in the Period
Nil
(3) Account receivables actually cancel after verification in Period
Nil
(4) Top five account receivables collected by arrears party at ending balance
(5) Account receivables recognition terminated due to transfer of financial assets
(6) Account receivables transferred and assets& liability formed by its continuous involvement
Other note: Nil
2. Other receivables
(1) Other receivables by type
Nil
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
□Applicable√ Not applicable
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
□Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
□Applicable√ Not applicable
(2) Provision for bad debts accrued, regain or switch back in the Period
Nil
(3) Other receivables actually written off in the reporting period
Nil
(4) Other account receivables category by nature of money
Nil
(5) Top five other account receivables collected by arrears party at ending balance
Nil
(6) Account receivables with government subsidies involved
Nil
(7) Other account receivables recognition terminated due to transfer of financial assets
Nil
(8) Other account receivables transferred and assets& liability formed by its continuous involvement Nil
3. Long-term equity investment
Nil
4. Operation income and operation cost
Nil
5. Investment income
Nil
6. Other
Nil
XVIII. Supplementary information
1. Details of current non-recurring profits and losses
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Remark|
|Profits or losses from disposal of non-current assets|-90,560.75||
|Fund occupancy expenses collected from|||
|non-financial enterprises and accounted into current|422,000.00||
|profit and loss|||
|Other non-operating income and expense other than|||
||1,664,699.64||
|the abovementioned ones|||
|Total|1,996,138.89|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□Applicable√ Not applicable
2. REO and earnings per share
|||||
|-|-|-|-|
|||Earnings per share||
|Profits during report period|Weighted average ROE||Diluted EPS|
|||Basic EPS (Yuan/share)||
||||(Yuan/share)|
|Net profits belong to common stock stockholders||-0.0205|-0.0205|
||-9.27%|||
|of the Company||||
|Net profits belong to common stock stockholders||||
|of the Company after deducting nonrecurring gains|-11.74%|-0.0260|-0.0260|
|and losses||||

3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable√ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable√ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the differences adjustment audited by foreign auditing institute, listed name of the institute
Nil
4. Other
Nil
Section XI. Documents available for references
I. Financial statement with signature and seal of legal person, person in charge of accounting works and person in charge of accounting organ(accountant in charge);
II. Original audit report seal with accounting firms and signature and seal from CPA;
III. The original manuscripts of all documents and announcements of the Company publicly disclosed on Securities Times and Hong Kong Commercial Daily during the report period
The above said documents are prepared in the security department of the Company
Board of Directors of
HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD. Chairman: Li Yuanbin
24 March 2016