Short Form of the Stock: ST Donghai-A, ST 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.
Semi-Annual Report 2014
(Full Text)
Disclosure Date: 28 August 2014
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 attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
Li Yuanbin, principal of the Company, Chen Liurong, person in charger of accounting works and Liu Xianghai, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of Semi-Annual Report 2014 is authentic, accurate and complete. Concerning the forward-looking statements with future planning involved in the Semi-Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise caution of investment risks.
Content
Semi-Annual Report 2014...................................................................................................................1 Section I Important Notice, Contents and Paraphrase.........................................................................2 Section II Company Profile..................................................................................................................5 Section III Accounting data and summary of finnaical indexes..........................................................7 Section IV Report of the Board of Directors.......................................................................................9 Section V Important Events...............................................................................................................15
Section VI Changes in shares and particular about shareholders......................................................20 Section VII PreferredStock………………………………………………………………………..24 Section VIII Directors, Supervisors and Senior Executives .............................................................25 Section IX Financial Report...............................................................................................................26 Section X Documents Available for Reference ................................................................................91
Paraphrase
||||
|-|-|-|
|Items|Refers to|Definition|
|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|
|Company/the Company|Refers to|Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.|
|||Article of Association of Hainan Dadonghai Tourism|
|Article of Association|Refers to||
|||Centre (Holdings) Co., Ltd.|
|||Shareholders’ General Meeting of Hainan Dadonghai|
|Shareholders’ General Meeting|Refers to||
|||Tourism Centre (Holdings) Co., Ltd.|
|||Board of Directors of Hainan Dadonghai Tourism Centre|
|Board of Directors|Refers to||
|||(Holdings) Co., Ltd.|
|||Supervisory Committee of Hainan Dadonghai Tourism|
|Supervisory Committee|Refers to||
|||Centre (Holdings) Co., Ltd.|
|Yuan|Refers to|RMB/CNY|

Risk Warning
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 2014, 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
I. Company Profile
|||||
|-|-|-|-|
|Short form for share|ST Donghai-A , ST Donghai-B|Code for share|000613, 200613|
|Short form for share after||||
||N/A|||
|the change||||
|Listing stock exchange|Shenzhen Stock Exchange|||
|Chinese name of the|海南大东海旅游中心股份有限公司|||
|Company||||
|Abbr. of Chinese name of||||
||大东海|||
|the Company||||
|English name of the||||
||Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.|||
|Company||||
|Abbr. of English name of||||
||DADONGHAI|||
|the Company||||
|Legal Representative|Li Yuanbin|||

II. Contact person and ways
||||
|-|-|-|
||Secretary of the Board|Rep. of securities affairs|
|Name|Wang Hongjuan||
|Contact adds.|Dadonghai Sanya||
|Tel.|0898-88219921||
|Fax.|0898-88214998||
|E-mail|hnddhhn@21cn.com||

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable√ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable√ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and organization code have no change in reporting period, found more details in Annual Report 2013.
Section III. Accounting data and summary of financial indexes I. 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
|||||
|-|-|-|-|
|||Same period of|Increase/decrease in this report|
||Current period|||
|||last year|y-o-y|
|Operating revenue (RMB)|11,686,452.00|14,778,787.50|-20.92%|
|Net profit attributable to shareholders of the listed|-848,458.96|-481,971.51||
||||76.04%|
|company(RMB)||||
|Net profit attributable to shareholders of the listed company||||
||-907,687.13|-556,917.86|62.98%|
|after deducting non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating activities(RMB)|14,916.68|2,947,494.11|-99.49%|
|Basic earnings per share (RMB/Share)|-0.0023|-0.0013|76.92%|
|Diluted earnings per share (RMB/Share)|-0.0023|-0.0013|76.92%|
|Weighted average ROE (%)|-1.04%|-0.57%|82.46%|
||||Increase/decrease in this|
||End of current|||
|||End of last period|report-end over that of last|
||period|||
||||period-end|
|Total assets (RMB)|111,010,305.89|113,960,862.69|-2.59%|
|Net assets attributable to shareholder of listed|81,063,388.90|81,911,847.86||
||||-1.04%|
|company(RMB)||||

II. 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
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
|||||Amount at|
||Amount in this period|Amount in last period|Amount at period-end||
|||||period-begin|
|Chinese GAAP|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|

||||||
|-|-|-|-|-|
|Items and amount adjusted by IAS|||||
|By IAS|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|

 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
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
|||||Amount at|
||Amount in this period|Amount in last period|Amount at period-end||
|||||period-begin|
|Chinese GAAP|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|
|Items and amount adjusted by foreign accounting rules|||||
|By foreign accounting rules|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|

 3. Reasons for the differences of accounting data under accounting rules in and out of China
No differences.
III. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|-1,339.59|--|
|write-off that accrued for impairment of assets)|||
|Other gains/losses satisfied definition of extraordinary profit|60,567.76|--|
|(gains)/loss|||
|Total|59,228.17|--|

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 IV. Report of the Board of Directors
I. Introduction
In reporting period, due to the slowing down domestic economy growth and deepening and lasting macro adjustment, Sanya had been still fatigue in tourism market. Especially the number of Russian tourists decreased obviously. Facing this severe situation, operational team of the Company positively responded, tried to be market-oriented, be in principle of reducing costs and increasing efficiency and fully adjusted operational strategy. We changed our focus on from overseas market to domestic market, from sightseeing to vacation tourism, from group to individual self-driving. Our operation has begun to focus on massification. At the same time, we largely implemented fine and detailed management, specialized operation and fully made use of various online platforms to promote online marketing. Hence, we overcame various unfavorable factors in order to keep stable development of the Company.
II. Main business analysis
Y-o-y changes of main financial data
In RMB
||||||
|-|-|-|-|-|
||||Y-o-y||
|||Same period of|||
||Current period||increase/dec|Reasons for changes|
|||last year|||
||||rease||
||11,686,452.00|14,778,787.50||The increasingly horizontal competition is the result of|
|Operation revenue|||-20.92%||
|||||declined in revenue|
|Operation cost|5,336.51|5,091.20|4.82%|The rising prices led to the slightly growth in cost|
|Sales expenses|5,924,967.97|5,866,274.92|1.00%|Increased slightly normality|
||5,961,388.09|8,568,614.42||Entertainment expenses declined due to the strictly|
|Administrative expenses|||-30.43%|management and practice strict economy; withdrawal|
|||||for the bonus on over-quota of the hotel decreased|
||48,005.23|68,112.72||The revenue declined, and settlement handling charge|
|Financial cost|||-29.52%||
|||||expenses decreased|
|Net cash flow arising from|14,916.68|2,947,494.11||The revenue decreased due to the market depressed,|
||||-99.49%||
|operation activities||||and the soaring cost|
|Net cash flow arising from|-159,200.00|-573,234.00|||
||||-72.23%|The investment in fixed assets decreased|
|investment activities|||||
||-144,283.32|2,374,260.11||Together affected by the y-o-y growth of net cash flow|
|Net increase of cash and cash||||arising from operation activities and the y-o-y|
||||-106.08%||
|equivalent||||decrease of net cash flow arising from investment|
|||||activities.|

Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
During the report period, under the leadership of the board of directors, the Company conforms to the national regulation situation, actively responds to the complex and changeable market circumstances, persists in taking the market demands as the guidance and the economic benefit as the core, positively adjusts the operating strategy, not only consolidates the regular customers and stabilizes the existing markets, but also strengthens the development efforts for new markets, the Company effectively overcomes the downturn in the tourism market and other unfavorable factors, and basically completes the business objectives established at the beginning of the year. III. Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||Operating|Operating cost|Gross profit ratio|operating revenue|operating cost|profit ratio over|
||revenue||||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
|Tourism &|||||||
||11,686,452.00|5,336.51|99.95%|-20.92%|4.82%|-0.01%|
|catering|||||||
|According to products|||||||
|Guest room|11,686,452.00|5,336.51|99.95%|-20.92%|4.82%|-0.01%|
|According to region|||||||
|Hainan Province|11,686,452.00|5,336.51|99.95%|-20.92%|4.82%|-0.01%|

 IV. Core competitive-ness analysis
In the reporting period, theCompany’s core competitive-ness had no major changes, and more details can be found in Annual Report 2013.
V. Investment analysis
1. Equity investment outside
(1) Investment outside
□ Applicable√ Not applicable
The Company has no investment outside in the Period
(2) Holding the equity of financial enterprise
√Applicable □Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Proportion|||||||
||||Shares||Shares|Proportion||Gains/loss|||
|||Initial||of shares|||Book value at||||
||||held at||held at|of shares||es in report|Accounti|Resour|
|Name|Type|investment||held at|||period-end||||
||||period-beg||period-end|held at||period|ng items|ces|
|||capital (RMB)||period-beg|||(RMB)||||
||||in (Share)||(Share)|period-end||(RMB)|||
|||||in|||||||
|Haikou|||||||||||
||||||||||Long-ter||
|Luoniusha|||||||||||
||||||||||m equity|Purcha|
|n|Other|10,000,000.00|10,000,000|9.09%|10,000,000|9.09%|10,000,000.00|0.00|||
||||||||||investme|se|
|Petty-Loan|||||||||||
||||||||||nt||
|Co., Ltd|||||||||||
|Total||10,000,000.00|10,000,000|--|10,000,000|--|10,000,000.00|0.00|--|--|

 (3) Securities investment
□ Applicable√ Not applicable
The Company has no securities investment in the Period
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
□ Applicable√ Not applicable
The Company has no trust financing in the Period
(2) Investment of derivatives
□ Applicable√ Not applicable
The Company has no derivatives investment in the Period
(3) Entrustment loan
□ Applicable√ Not applicable
The Company has no entrustment loan in the Period
3. Application of raised proceeds
(1)Overall application of raised proceeds
□ Applicable√ Not applicable
(2) Situation of committed project of raised proceeds
□ Applicable√ Not applicable
(3)The changed project of raised proceeds
□ Applicable√ Not applicable
The Company has no project of raised proceeds changed in the Period
(4) Project of raised proceeds
In reporting period, the Company has no raised proceeds or utilization of raised proceeds in previous that carry over into the Period 4. Main subsidiaries and joint-stock companies analysis
□ Applicable√ Not applicable
No main subsidiaries or joint-stock companies in Period.
5. Major project invested by non-raised funds
□ Applicable√ Not applicable
No major project invested by non-raised funds in Period.
VI. Prediction of business performance from January– September 2014
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the CPA of thisyear’s
□ Applicable√ Not applicable
VIII. Explanation on “Qualified Opinion” of previous year from the Board
□ Applicable√ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital reserve in particular
□ Applicable√ Not applicable
Previousyear’s profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Profit distribution and capitalization of capital reserves in 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 semi-annual year
XI. In the report period, reception of research, communication and interview
√Applicable □Not applicable
|||||||
|-|-|-|-|-|-|
|Time|Place|Way|Type|Reception|Contents discussed and material provided|
||Company|Telephone||Investor in||
||||||Operation situation of the Company, no|
|2014-01-08|headquarter|communicat|Individual|Shanghai||
||||||material provided|
||s|ion||(Surname Chen)||
||Company|Telephone||Investor in||
||||||Restriction lifted of share reforming, no|
|2014-01-16|headquarter|communicat|Individual|Beijing||
||||||material provided|
||s|ion||(Surname Wang)||
||Company|Telephone||||
|||||Investor in Hefei|Operation situation of the Company, no|
|2014-02-10|headquarter|communicat|Individual|||
|||||(Surname Lv)|material provided|
||s|ion||||
||Company|Telephone||||
|||||Investor in Hebei|Operation situation of the Company, no|
|2014-02-18|headquarter|communicat|Individual|||
|||||(Surname Liu)|material provided|
||s|ion||||
||Company|Telephone||Investor in||
||||||Operation situation of the hotels, no material|
|2014-03-19|headquarter|communicat|Individual|Hangzhou||
||||||provided|
||s|ion||(Surname Zhang)||
||Company|Telephone||Investor in||
||||||Operation situation of the Company in the|
|2014-03-25|headquarter|communicat|Individual|Beijing||
||||||year, no material provided|
||s|ion||(Surname Chen)||
||Company|Telephone||Investor in||
||||||Development of the Company, no material|
|2014-04-10|headquarter|communicat|Individual|Shenzhen||
||||||provided|
||s|ion||(Surname Zheng)||
||Company|Telephone||Investor in||
||||||Disclosure date of Annual Report 2013 of the|
|2014-04-18|headquarter|communicat|Individual|Wuhan||
||||||Company, no material provided|
||s|ion||(Surname Cheng)||
||Company|Telephone||Investor in||
||||||Operation situation of the Company in 2013,|
|2014-04-25|headquarter|communicat|Individual|Shenzhen||
||||||no material provided|
||s|ion||(Surname Yang)||
||Company|Telephone||Investor in||
||||||Commitment of the largest shareholders of the|
|2014-05-21|headquarter|communicat|Individual|Beijing||
||||||Company, no material provided|
||s|ion||(Surname Huang)||
||Company|Telephone||Investor in|Development of the Company, no material|
|2014-05-30|||Individual|||
||headquarter|communicat||Zhengzhou|provided|

|||||||
|-|-|-|-|-|-|
||s|ion||(Surname Jiang)||
||Company|Telephone||Investor in||
||||||Commitment of the largest shareholders of the|
|2014-06-12|headquarter|communicat|Individual|Haikou||
||||||Company, no material provided|
||s|ion||(Surname Lin)||
||Company|Telephone||Investor in||
||||||Operation situation of the Company in the half|
|2014-06-27|headquarter|communicat|Individual|Shanghai||
||||||year of 2014, no material provided|
||s|ion||(Surname Zhou)||

Section V. Important Events
I. Corporate governance
During the report period, the Company strictly follows the requirements of “Corporation Law”, "Securities Law", "Listing Rules of Shenzhen Stock Exchange Stock ", and other relevant laws and regulations, establishes and improves the corporate governance system, improves the corporate governance structure, and promotes thecompany’s standard operation, there is no difference between the actual state of corporate governance and the requirements of relevant provisions of China Securities Regulatory Commission.
In reporting period, the Board of Directors and Board of Supervisors started the personnel change. In accordance with relevant rules of the Guidance to Supervise Listed Companies, No. 3- Cash Dividend of Listed Companies, issued by China Securities Supervision Committee, and combining the actual situation, the Company revised part of terms about profit distribution policy referred in the Article of Association.Shareholders’ General Meeting, Board of Directors and Board of Supervisors respectively reinforced their decision rights, execution rights and supervision rights. Rights and responsibilities were divided clearly, restrained mutually, operated normally and effectively. Meeting procedures were totally in accordance with relevant rules. The Board of Directors strictly followed requirements of the Rules of Listed Companies, being honest and diligent, being loyal to shareholders and the Company, protecting medium and smallshareholders’ rights and interests. The Board of Supervisors effectively inspected and checked the personnel and finance of directors and senior administrative staff.
The Company will continue to improve the corporate governance, seriously fulfill the obligation of information disclosure, strengthen the management to information disclosure, maintain the principle of fairness about the information disclosure, strengthen the investor relations management, and protect the legitimate rights and interests of all investors.
II. Significant lawsuits and arbitrations of the Company
□Applicable√Not applicable
The Company has no significant lawsuits and arbitrations in reporting period
III. Question from media
□ Applicable √ Not applicable
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
□ Applicable√ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
1. Assets acquisition
□ Applicable√ Not applicable
The Company did not purchased assets in the Period
2. Sales of assets
□ Applicable√ Not applicable
The Company did not sell assets in the Period
3. Business combination
□ Applicable√ Not applicable
The Company has no business combined in the Period
VI. Implementation of thecompany’s equity incentive and the effects
□ Applicable√ Not applicable
No equity incentive in reporting period
VII. Insignificant related transactions
1. Related transaction with daily operation concerned
√Applicable □Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Available|||
||||||||Proportio|Settlemen||||
|||||||Amount||||||
|||||Pricing|||n to||market|||
|||Type of|Content||Price of|of related||t method||||
|||||principles|||amount of||prices of|Disclosur|Index of|
||Related|related|of related||related|transactio||||||
|Related party||||of related|||transactio|of related||||
||relationship|transactio|transactio||transactio|n (10|||similar|e date|disclosure|
|||||transactio|||n or the|transactio||||
|||n|n||n|thousand||||||
|||||n|||same type||transactio|||
|||||||Yuan)||n||||
||||||||(%)||ns|||
|||||||||Same as||||
||||Accomm|||||||||
||First|||||||the||||
|Luoniushan||Consumpt|odations|Market|Market|||transactio||||
||majority|||||5.19|0.44%||--|--|--|
|Co., Ltd.||ion|and|price|price|||n with||||
||shareholder|||||||||||
||||catering|||||non-relate||||
|||||||||d party||||
|Total||||--|--|5.19|--|--|--|--|--|
|Details of returned large sales||||N/A||||||||
|Predict on total amount of daily related trade on||||||||||||
|the way in this period according to classification,||||N/A||||||||
|as well as actual implementation in reporting||||||||||||

|||
|-|-|
|period||
|Reason of the greater difference between trade||
||N/A|
|price and market reference price||

2. Related transaction incurred by purchase or sales of assets
□ Applicable√ Not applicable
No related transaction incurred by purchase or sales of assets in Period
3. Related transaction from jointly investment outside
□ Applicable√ Not applicable
No related transaction from jointly investment outside occurred in Period
4. Credits and liability of related party
√Applicable □Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes□No
|||||||||
|-|-|-|-|-|-|-|-|
||||||Balance of|Amount of the||
|||||Whether exist|||Balance at|
||||||period-begin|period||
||Related|Type of credit and|Resulted|non-operation|||period-end (in|
|Related party|||||(in 10|occurrence (in||
||relationship|debt|reason|al capital|||10 thousand|
||||||thousand|10 thousand||
|||||occupying|||Yuan)|
||||||Yuan)|Yuan)||
||First|||||||
|||Debt payable to|Correspondin|||||
|Luoniushan Co., Ltd|majority|||Yes|80|0|80|
|||related party|g payment|||||
||shareholder|||||||
|Influence on operation result and||||||||
|financial statue of the Company from||No influence||||||
|related credit and debts||||||||

5. Other significant related transactions
□ Applicable√ Not applicable
The Company had no other significant related transactions in the reporting period
VIII. Non-business capital occupying by controlling shareholders and its related parties□ Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
IX. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable√ Not applicable
The Company had no trusteeship in the reporting period.
(2) Contract
□ Applicable√ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□ Applicable√ Not applicable
The Company had no leasing in the reporting period.
2. Guarantee
□ Applicable√ Not applicable
The Company had no guarantee in the reporting period.
(1) Guarantee outside against the regulation
□ Applicable√ Not applicable
No guarantee outside against the regulation in Period
3. Other material contracts
□ Applicable√ Not applicable
The Company had no other material contracts in the reporting period.
4. Other material transactions
□ Applicable√ Not applicable
The Company had no other material transactions in the reporting period.
X. Commitments made by the Company or shareholders holding above5% shares of the Company in reporting period or occurred in the previous reporting period but continued to reporting period
√Applicable □Not applicable
|||||||
|-|-|-|-|-|-|
||||Commitment|Commitment||
||||||Implementation|
|Commitments|Accepter|Contents||||
||||time|period||
|||Seeking||||
||||||No appropriate|
|||restructuring||||
|Commitments for|Luoniushan Co.,||||restructuring|
|||side actively for|2014-06-27|In 3 years||
|Share Merger Reform||||||
||Ltd.||||side has been|
|||assets||||
||||||found so far.|
|||reorganization||||

|||
|-|-|
|Commitments in report of acquisition or||
|equity change||
|Commitments in assets reorganization||
|Commitments make in Initial public offering||
|or re-financing||
|Other commitments for minority shareholders||
|Implemented commitments on time(Y/N)|N|
|Detail reasons for un-complement and further|N/A|
|plan||

XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
XII. Penalty and rectification
□ Applicable√ Not applicable
The Company had no penalty or rectification in the reporting period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable√ Not applicable
The Company has no delisting risks with laws and rules violated in Period
XIV. Explanation on other significant events
□ Applicable√ Not applicable
The Company had no explanation on other significant events in the reporting period.
Section VI. Changes in Shares and Particulars about Shareholders I. Changes in shares
In share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before change||Increase/decrease in this time (+ , - )|||||After change||
||||||Capitali|||||
||||||zation|||||
||||New|Bonus||||||
||Amount|Ratio|||of|Other|Subtotal|Amount|Ratio|
||||issue|share||||||
||||||public|||||
||||||reserve|||||
|I. Restricted shares|16,529,200|4.54%||||-994,000|-994,000|15,535,200|4.27%|
|1. State-owned shares||||||||||
|2. State-owned corporate||||||||||
||3,953,400|1.09%||||-924,000|-924,000|3,029,400|0.83%|
|shares||||||||||
|3. Other domestic shares|12,575,800|3.45%||||-70,000|-70,000|12,505,800|3.43%|
|Including: Domestic legal||||||||||
||12,373,800|3.40%||||0|0|12,373,800|3.40%|
|person shares||||||||||
|Domestic natural person||||||||||
||202,000|0.06%||||-70,000|-70,000|132,000|0.04%|
|shares||||||||||
|II. Unrestricted shares|347,570,800|95.46%||||994,000|994,000|348,564,800|95.73%|
|1. RMB common shares|259,570,800|71.29%||||994,000|994,000|260,564,800|71.56%|
|2.Domestically listed||||||||||
||88,000,000|24.17%||||||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 changed
□ 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 for the Company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Total preference shareholders with voting|||||||
|Total common shareholders at period-end||26,075|||||||0|||
||||||rights recovered at end of reporting period|||||||
|Particulars about shares held above 5% by shareholders or top ten shareholders||||||||||||
|||||||||||Number of||
|||||||||||share||
|||||Number of||Changes||||pledged/froz||
||||||||Amount of|Amount of||||
||Nature of||Proportion of|shares held||in||||en||
|Shareholders|||||||restricted|unrestricted||||
||shareholder||shares held|at||reporting||||State||
||||||||shares held|shares held||||
|||||period-end||period||||of|Amou|
|||||||||||shar|nt|
|||||||||||e||
|Luoniushan Co., Ltd.|Domesticnon-state-ownedlegal person||16.81%|61,190,270||0|0|61,190,270||||
|Pan Guoping|Domestic natureperson||8.07%|29,396,791||-3632792|0|29,396,791||||
|China Everbright Securities (HK)Limited|Overseaslegal person||6.63%|24,135,012||5927328|0|24,135,012||||
|Yangpu Tongrong InvestmentManagement Consultation Co.,Ltd.|Domesticnon-state-ownedlegal person||2.79%|10,150,082||0|4,420,800|5,729,282||||
|Sanya Yongli Investment Co., ltd.|Domesticnon-state-ownedlegal person||1.77%|6,446,000||-484000|0|6,446,000||||
|Construction Investment CITICAssets Management Co., Ltd.|Domesticnon-state-ownedlegal person||1.27%|4,620,000||0|0|4,620,000||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|CITRINE CAPITAL LIMITED|Overseaslegal person|0.90%||3,265,200|0|0||3,265,200||
|Sanya Zhongxing DevelopmentCo., Ltd.|Domesticnon-state-ownedlegal person|0.70%||2,541,000|0|2,541,000||0||
|Sanya Rural Credit Cooperative|Domesticnon-state-ownedlegal person|0.63%||2,310,000|0|0||2,310,000||
|Haikou Jinmao Branch ofAgricultural Bank of China Co.,Ltd.|State-ownedcorporation|0.63%||2,310,000|0|0||2,310,000||
|Strategy investors or general corporate becomes top||||||||||
|||N/A||||||||
|10 shareholders due to rights issued||||||||||
|||The Company is unknown whether there exists associated relationship or belongs||||||||
|Explanation on associated relationship among the||to the consistent actor regulated by the Management Measure of Information||||||||
|aforesaid shareholders||Disclosure on Change of Shareholding for Listed Company among the other||||||||
|||shareholders.||||||||
|Particular about top ten shareholders with un-restrict shares held||||||||||
||||Amount of unrestricted shares held at||||Type of shares|||
|Shareholders||||||||||
||||period-end||||Type||Amount|
|Luoniushan Co., Ltd.|||61,190,270||||RMB common share||61,190,270|
|Pan Guoping|||29,396,791||||Domestically listed|||
||||||||||29,396,791|
||||||||foreign share|||
|China Everbright Securities (HK) Limited|||24,135,012||||Domestically listed|||
||||||||||24,135,012|
||||||||foreign share|||
|Sanya Yongli Investment Co., ltd.|||6,446,000||||RMB common share||6,446,000|
|Yangpu Tongrong Investment Management ConsultationCo., Ltd.|||5,729,282|||||||
||||||||RMB common share||5,729,282|
|Construction Investment CITIC Assets Management Co.,Ltd.|||4,620,000|||||||
||||||||RMB common share||4,620,000|
|CITRINE CAPITAL LIMITED|||3,265,200||||Domestically listed|||
||||||||||3,265,200|
||||||||foreign share|||
|Sanya Rural Credit Cooperative|||2,310,000||||RMB common share||2,310,000|
|Haikou Jinmao Branch of Agricultural Bank of China Co.,Ltd.|||2,310,000|||||||
||||||||RMB common share||2,310,000|
|Cao Huili|||2,303,939||||RMB common share||2,303,939|
|Expiation on associated relationship or consistent actors||||||||||
||||The Company is unknown whether there exists associated relationship or|||||||
|within the top 10 un-restrict shareholders and between top|||belongs to the consistent actor regulated by the Management Measure of|||||||
|10 un-restrict shareholders and top 10 shareholders|||Information Disclosure on Change of Shareholding for Listed Company|||||||

|||
|-|-|
||among the other shareholders.|
|Explanation on top ten shareholders involving margin||
||N/A|
|business||

Whether has a buy-back agreement dealing in reporting period
□Yes√No
The shareholders o f the Company had no buy-back agreement dealing in reporting period.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
□ Applicable√Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the Company and its concerted action person
Section VII. Preferred Stock
I. Issuance and listing of preferred stock in Period
□ Applicable√ Not applicable
II. Number of shareholders with preferred stock held and shareholdings
□ Applicable√ Not applicable
III. Repurchase and conversion of preferred stock
1. Preferred stock repurchased
□ Applicable√ Not applicable
2. Preferred stock converted
□ Applicable√ Not applicable
IV. Preferred stock with voting rights recovered and executed
□ Applicable√ Not applicable
V. Accounting policy taken for preferred stock and reasons
□ Applicable√ Not applicable
Section VIII. Directors, Supervisors and Senior Executives I. Changes of shares held by directors, supervisors and senior executives
□ Applicable√ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2013.
II. Resignation and dismissal of directors, supervisors and senior executives
√Applicable □Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reason|
|||Leave the post while|||
|Chen Rijin|Independent director||2014-05-21|Terms of office expired|
|||office terms expired|||
|||Leave the post while|||
|Feng Daan|Independent director||2014-05-21|Terms of office expired|
|||office terms expired|||
|||Leave the post while|||
|Li Guangzhong|Independent director||2014-05-21|Terms of office expired|
|||office terms expired|||
|Zhao Man|Independent director|Be elected|2014-05-22|Be elected|
|Tang Guoping|Independent director|Be elected|2014-05-22|Be elected|
|Leng Mingquan|Independent director|Be elected|2014-05-22|Be elected|
|||Leave the post while|||
|Li Zhi|Employee supervisor||2014-05-21|Terms of office expired|
|||office terms expired|||
|Liu Xianghai|Employee supervisor|Be elected|2014-05-22|Be elected|

Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Balance sheet
Prepared by: Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|6,691,402.14|6,835,685.46|
|Settlement funds|||
|Lending funds|||
|Tradable financial assets|||
|Notes receivable|||
||3,479,148.05|3,509,377.76|
|Accounts receivable|||
||134,694.62|201,053.21|
|Prepayments|||
|Premium receivable|||
|Reinsurance accounts receivable|||
|Reinsurance contract reserve|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|3,097,020.35|3,299,051.36|
|Buying back the sale of financial|||
|assets|||
|Inventory|314,781.58|317,334.23|
|Non-current assets due within one year|||

||||
|-|-|-|
|Other current assets|||
|Total current assets|13,717,046.74|14,162,502.02|
|Non-current assets:|||
|Issuance of loans and advances|||
|Financial assets available for Sale|||
|Held-to-maturity investment|||
|Long-term receivables|||
|Long term equity investment|10,000,000.00|10,000,000.00|
|Investment real estate|||
|Fixed asset|58,768,538.51|60,628,905.47|
|Project in progress|||
|Project materials|||
|Liquidation of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible asset|28,139,437.91|28,586,908.43|
|Development expenditure|||
|Goodwill|||
|Long-term deferred expenditure|385,282.73|582,546.77|
|Deferred income tax asset|||
|Other non-current asset|||
|Total non-current asset|97,293,259.15|99,798,360.67|
|Total Assets|111,010,305.89|113,960,862.69|
|Current Liabilities:|||
|Short-term borrowing|||
|Borrowing from the central bank|||
|Deposits and interbank deposit|||
|Borrowed capital|||
|Transaction financial liabilities|||
|Notes payable|||
||2,209,188.28|2,171,955.96|
|Accounts payable|||
|Account received in advance|1,216,013.54|1,599,994.81|
|Financial assets sold for repurchase|||
|Fees and commissions payable|||

||||
|-|-|-|
|Salary payable|3,043,725.36|3,549,851.04|
|Taxes payable|-1,209,571.11|-1,164,999.99|
|Interest payable|||
|Dividend payable|||
|Other payables|24,687,560.92|25,892,213.01|
|Reinsurance payables|||
|Reserves for insurance contracts|||
|Agency securities trading|||
|Agency securities underwriting|||
|Non-current liabilities due within one|||
|year|||
|Other current liabilities|||
||29,946,916.99|32,049,014.83|
|Total current liabilities|||
|Non-current liabilities|||
|Long-term loans|||
|Bonds payable|||
|Long-term payables|||
|Special payables|||
|Accrued liabilities|||
|Deferred income tax liability|||
|Other non-current liability|||
|Total non-current liability|||
|Total liability|29,946,916.99|32,049,014.83|
|Owners’ equity (or Shareholder’s equity):|||
|Paid-in capital(share capital)|364,100,000.00|364,100,000.00|
|Capital surplus|54,142,850.01|54,142,850.01|
|Less: treasury stock|||
|Special reserve|||
|Surplus reserve|||
|Reserve for general risks|||
|Retained profit|-337,179,461.11|-336,331,002.15|
|Converted difference in foreign|||
|currency Statements|||
|Total owner’s equity attributable to parent|||
||81,063,388.90|81,911,847.86|
|company|||

||||
|-|-|-|
|Interest of minority shareholders|||
|Total owners’ equity (or shareholders|||
||81,063,388.90|81,911,847.86|
|equity)|||
|Total liabilities and owners’ equity (or|||
||111,010,305.89|113,960,862.69|
|shareholders equity)|||

Legal Representative: Li Yuanbin Person in Charge of Accounting: Chen Liurong Person in Charge of Accounting Department: Liu Xianghai
2. Income Statements
Prepared by: Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Item|Current Amount|Amount of the Previous Period|
|I. Total operation revenue|11,686,452.00|14,778,787.50|
|Including: Operating revenue|11,686,452.00|14,778,787.50|
|Interest income|||
|Earned premium|||
|Fee and commission income|||
|II Total Operating cost|12,594,139.13|15,335,705.36|
|Including: Operating costs|5,336.51|5,091.20|
|Interest costs|||
|Fee and commission costs|||
|Cash surrender|||
|Net compensation expenses|||
|Net extraction reserves for insurance|||
|contracts|||
|Policy dividend payout|||
|Reinsurance expense|||
|Business tax and surcharge|654,441.33|827,612.10|
|Sales expenses|5,924,967.97|5,866,274.92|
|Administrative expenses|5,961,388.09|8,568,614.42|
|Financial expenses|48,005.23|68,112.72|
|Asset impairment losses|||
|Add: gains from changes of fair value (Loss|||
|is listed with “-”)|||
|Investment gain (Loss is listed with “-”)|||

||||
|-|-|-|
|Including: Investment gains on affiliated|||
|Company and joint venture|||
|Exchange gains (Loss is listed with “-”)|||
|III. Operating profits (Loss is listed with “-”)|-907,687.13|-556,917.86|
|Add: Non-operating income|60,567.76|76,146.35|
|Less: Non-operating expenditure|1,339.59|1,200.00|
|Including: Disposal loss on non-current liability|1,339.59|200.00|
|IV Total profits (Total loss is listed with “-”)|-848,458.96|-481,971.51|
|Less: Income tax expenses|||
|V. Net profit (Net loss is listed with “-”)|-848,458.96|-481,971.51|
|Including: Net profit generated by combined party|||
|before merged|||
|Net profit attribute to owners of parent company|-848,458.96|-481,971.51|
|Minority interest|||
|VI. Earnings per share(EPS)|--|--|
|(i) Basic Earnings per share(EPS)|-0.0023|-0.0013|
|(ii) Diluted Earnings per share(EPS)|-0.0023|-0.0013|
|VII. Other consolidated income|||
|VIII. Total consolidated income|-848,458.96|-481,971.51|
|Total consolidated income attributable to owners of|||
||-848,458.96|-481,971.51|
|parent company|||
|Total consolidated income attributable to minority|||
|shareholders|||

Legal Representative: Li Yuanbin Person in Charge of Accounting: Chen Liurong Person in Charge of Accounting Department: Liu Xianghai
3. Cash Flow Statement
Prepared by: Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
In RMB
||||
|-|-|-|
|Items|Current Amount|Amount of the Previous Period|
|I. Cash flows arising from operating activities:|||
|Cash received from selling commodities and providing labor|||
||12,145,114.03|13,820,522.00|
|services|||
|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|||
|Net increase of insured savings and investment|||
|Net increase of disposal of transaction financial asset|||
|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|147,264.33|2,401,962.57|
|Subtotal of cash inflow arising from operating activities|12,292,378.36|16,222,484.57|
|Cash paid for purchasing commodities and receiving labor|||
||2,563,586.97|3,921,328.49|
|service|||
|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|5,246,096.51|5,028,559.08|
|Taxes paid|1,465,661.88|1,610,258.17|
|Other cash paid concerning operating activities|3,002,116.32|2,714,844.72|
|Subtotal of cash outflow arising from operating activities|12,277,461.68|13,274,990.46|
|Net cash flows arising from operating activities|14,916.68|2,947,494.11|
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|||
|Cash received from investment income|||
|Net cash received from disposal of fixed, intangible and|||
||4,200.00|200.00|
|other long-term assets|||
|Net cash received from disposal of subsidiaries and other|||
|units|||
|Other cash received concerning investing activities|||
|Subtotal of cash inflow from investing activities|4,200.00|200.00|
|Cash paid for purchasing fixed, intangible and other|163,400.00|573,434.00|

||||
|-|-|-|
|long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash paid for obtaining subsidiaries and other units|||
|Other cash paid concerning investing activities|||
|Subtotal of cash outflow from investing activities|163,400.00|573,434.00|
|Net cash flows arising from investing activities|-159,200.00|-573,234.00|
|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 and cash equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash equivalents|-144,283.32|2,374,260.11|
|Add: Balance of cash and cash equivalents at the period|||
||6,835,685.46|15,194,668.69|
|-begin|||
|VI. Balance of cash and cash equivalents at the period -end|6,691,402.14|17,568,928.80|

 Legal Representative: Li Yuanbin Person in Charge of Accounting: Chen Liurong Person in Charge of Accounting Department: Liu Xianghai
4. Statement on Changes of Owners' Equity
Prepared by: Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Current Amount
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Current Amount||||||||||
||Owners' equity attributable to the parent company||||||||Inter||
||||||||||est||
||||||||||of||
||||Less:|Spec|Surpl|Reserv||O|||
|Item|Paid-in||||||||mino|Total owners’|
||||treasur|ial|us|e for||t|||
||capital(share|Capital surplus|||||Retained profit||rity|equity|
||||y|reser|reser|general||h|||
||capital)||||||||shar||
||||stock|ve|ve|risks||er|||
||||||||||ehol||
||||||||||ders||
|I. Balance at the end of 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|||||||||||
|previous period|||||||||||
|Others|||||||||||
|II. Balance at the beginning of|||||||||||
||364,100,000.00|54,142,850.01|||||-336,331,002.15|||81,911,847.86|
|this year|||||||||||
|III. Increase/ Decrease in this|||||||||||
||||||||-848,458.96|||-848,458.96|
|year (Decrease is listed with'"-")|||||||||||
|(i) Net profit|||||||-848,458.96|||-848,458.96|
|(ii) Other consolidated income|||||||||||
|Subtotal of (i)and (ii)|||||||-848,458.96|||-848,458.96|
|(III) Owners' devoted and|||||||||||
|decreased capital|||||||||||
|1. Owners' devoted capital|||||||||||
|2. Amount calculated into|||||||||||
|owners' equity paid in shares|||||||||||
|3. Others|||||||||||
|(IV)Profit distribution|||||||||||
|1. Withdrawal of surplus|||||||||||
|reserves|||||||||||
|2. Withdrawal of general risk|||||||||||
|provisions|||||||||||
|3. Distribution for owners|||||||||||
|(shareholders)|||||||||||
|4. Others|||||||||||
|(V) 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. Others|||||
|(VI) Special reserve|||||
|1. Withdrawal in this period|||||
|2. Usage in this period|||||
|(VII) Other|||||
|IV. Balance at the end of the||||81,063,388.90|
||364,100,000.00|54,142,850.01|-337,179,461.11||
|report period|||||

Amount in last year
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in last year||||||||||
||Owners’ equity attributable to the parent company||||||||Inter||
||||||||||est||
|||||||||O|of||
||||Less:|Spec|Surp|Reserv|||||
|Items|Paid-in|||||||t|mino|Total owners’|
||||treasu|ial|lus|e for|||||
||capital(share|Capital surplus|||||Retained profit|h|rity|equity|
||||ry|reser|reser|general|||||
||capital)|||||||e|share||
||||stock|ve|ve|risks|||||
|||||||||r|hold||
||||||||||ers||
|I. Balance at the end of last year|364,100,000.00|54,142,850.01|||||-334,131,682.19|||84,111,167.82|
|Add: retroactive adjustment|||||||||||
|arising from enterprise|||||||||||
|consolidation under the same|||||||||||
|control|||||||||||
|Add: Changes of|||||||||||
|accounting policy|||||||||||
|Error correction of|||||||||||
|previous period|||||||||||
|Other|||||||||||
|II. Balance at the beginning of|||||||||||
||364,100,000.00|54,142,850.01|||||-334,131,682.19|||84,111,167.82|
|this year|||||||||||
|III. Increase/ Decrease in this|||||||||||
||||||||-2,199,319.96|||-2,199,319.96|
|year (Decrease is listed with’”-”)|||||||||||

||||||
|-|-|-|-|-|
|(i) Net profit|||-2,199,319.96|-2,199,319.96|
|(II) Other consolidated income|||||
|Subtotal of (i)and (ii)|||-2,199,319.96|-2,199,319.96|
|(III) Owners’ devoted and|||||
|decreased capital|||||
|1. Owners’ devoted capital|||||
|2. Amount calculated into|||||
|owners’ equity paid in shares|||||
|3. Others|||||
|(IV)Profit distribution|||||
|1. Withdrawal of surplus|||||
|reserves|||||
|2. Withdrawal of general risk|||||
|provisions|||||
|3. Distribution for owners|||||
|(shareholders)|||||
|4. Others|||||
|(V) 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. Others|||||
|( VI) Special reserve|||||
|1. Withdrawal in this period|||||
|2. Usage in this period|||||
|(VII) Other|||||
|IV. Balance at the end of the|||||
||364,100,000.00|54,142,850.01|-336,331,002.15|81,911,847.86|
|report period|||||

Legal Representative: Li Yuanbin Person in Charge of Accounting: Chen Liurong Person in Charge of Accounting Department: Liu Xianghai
III. Company profile
Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (hereinafter referred to as “Company” or “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. After the above consideration of stock ration were implemented, the Company maintained an unchanged total shares with a corresponding equity structural change.
As of June 30, 2014, theCompany’s total capital stock is 364,100,000 shares, in which the restricted tradable stock is 15,535,200 shares, accounting for4.72% of the total, and the unrestricted tradable stock is 348,564,800 shares, accounting for 95.73% of the total. 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 (Copy) is 4600001003983. And the legal registerred residence is Dadonghai, Hedong District, Sanya.
The Company belongs to the industry of tourism and catering services. 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). IV. Principal accounting policies, estimates and errors of previous period
1. Basis of preparation for financial statements
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 38 concrete accounting standards issued on February 15, 2006 by the Finance Ministry, the subsequently issued Accounting Standards for Business Enterprises– Application Guidelines, and the 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 2010) by the China Securities Regulatory Commission.
2. 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 and cash
flows, etc. for the reporting period.
3. Accounting period
The accounting year is from January 1 to December 31 in calendar year.
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
(1)Business combination under the same control
Nil
(2)Business combination not under the same control
Nil
6. Relevant specific accounting policy for equity disposal on step-by-step basis to lose control
(1) A principle of judgment of “Package Deal”
Nil
(2) Accounting method for “Package Deal”
Nil
(3) Accounting method for Non “Package Deal”
Nil
7. Methods for preparation of consolidated financial statements
(1) Methods for preparation of consolidated financial statements
Nil
(2) Accounting treatment method that should be disclosed for the equity of same subsidiary, which sold after sales or sales after sold in two accounting period in a row
Nil
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. And 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 statement translation
(1) 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.
(2) Foreign currency statement translation
Balances of foreign currency monetary items are measured at the spot exchange rate on the balance sheet date. The exchange difference arising wherefrom 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 wherefrom 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 through 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), accounts receivable, and other financial liabilities, etc. (2) Recognition basis and measurement method of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through 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) 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.
(3) 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 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 assets and financial liabilities measured at fair value by the Company, their fair values are determined with direct reference to the quoted prices in the active market.
(6) Method of impairment testing and impairment provision for financial assets (account receivables excluded)
Nil
Judging standards for vary impairment of financial assets available for sale
Nil
(7) For the financial assets available for sales which was re-classified from held-to-maturity investment undue, explain changes of holding purpose or ability basis
Nil
11. Standards of recognition and accrual method for bad debt provision of receivables
(1) Provision for bad debts of accounts receivable those are individually significant:
|||
|-|-|
|Assessment basis or standard of amount|Top five accounts receivable and other receivables in terms of individual amount at the|
|individually significant|end of the year.|
||After separate impairment test, provision for bad debts shall be made at the difference of|
|Accrual method for amount individually|present value of estimated future cash flows in short of their book values, and shall be|
||include in current profit and loss. For accounts receivable with no impairment found|
|significant and withdrawal bad debt|after separate tests, they shall be included in corresponding portfolios for provisions for|
|provision single|bad debts. For accounts receivable with confirmed 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
||||
|-|-|-|
||Method of making provision for bad debts||
|Portfolio||Basis of determining portfolio|
||on the basis of portfolio||
|Aging portfolio|Aging analysis method|Length of the aging|

Proportions of provision for bad debts on the basis of aging analysis in portfolios are as follows
√Applicable □Not applicable
||||
|-|-|-|
||Proportion of provision for account||
|Aging||Proportion of provision for other receivables|
||receivable||
|1 to 2 years|5.00%|5.00%|
|2 to 3 years|15.00%|15.00%|

||||
|-|-|-|
|3 to 4 years|25.00%|25.00%|
|4 to 5 years|50.00%|50.00%|
|Over 5 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|
|Method of provision for bad|separate from relevant portfolios and separately tested for impairment to recognize the impairment|
|debt|losses. Other remarks: provision for impairment of accounts receivable, excluding debts receivable|
||and other receivables, shall be made at the specific identification method|

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
Measurement method: other
Measurement method: 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
Inventory system: Perpetual inventory system
Inventory system: Perpetual inventory system
(5) Amortization method of low-cost consumables and packaging materials
Low-cost consumables
Amortization method: one-off method
Low-cost consumables are amortized at one-off amortization method.
Packaging materials
Amortization method: one-off method
Packaging materials are amortized at one-off amortization method.
13. Long-term equity investment
(1) Determination of investment cost
(1) Long-term equity investment acquired from business combination
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 theowners’ equity of the combinee obtained is recognized as the initial cost of the long-term equity investment on the combination date. The stock premium in the capital reserve is adjusted according to the difference between the initial cost of long-term equity investment and the consideration for the combination paid; if there is no sufficient premium in the capital reserve for write-downs, the retained earnings are adjusted. Relevant direct costs arising from the business combination, including audit fee, appraisal fee and legal service fee paid for the business combination, are included in the current profit and loss when incurred. 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. The combination cost is the fair value of assets paid, liabilities incurred or born and the equity securities issued to obtain the
control of the acquiree. Intermediary costs such as audit fee, legal service fee, appraisal and consultancy fee paid for the business combination by the acquirer and other relevant administrative expenses are included in the current profit and loss when incurred; the transaction costs for theacquirer’s issuance of equity securities or the debt securities as the consideration for the business combination are included in the initially recognition amounts of the equity or debt securities. For business combination not under common control through multiple transactions and by stage, the total of the book values of equity investment held by the acquirer before the combination date and the newly increased investment on the combination date are recognized as the initial cost of such investment. The Company regards the contingent consideration agreed in the combination agreement as part of the consideration transferred for the combination, and includes it in the combination cost at its fair value on the combination date.
(2) Long-term equity investment 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. For long-term equity investments of investors, the initial cost is the value stipulated in the investment contract or agreement (deducting the cash dividend or profit that has been declared but not distributed) unless the value stipulated in the contract or agreement is unfair. 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 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 and surcharges payable 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.
(2) Subsequent measurement and recognition of profit or loss
(1) Long-term equity investments of the Company in its subsidiaries are accounted for at cost method and adjusted at equity method when preparing the consolidated financial statements. For long-term equity investment which has no joint control or significant influence over the investee and no quotation available on the active market and whose fair value cannot be reliably measured, the cost method is adopted for accounting. For long-term equity investment which has joint control or significant influence over the investee, the equity method is adopted for accounting. 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. Treatment for other changes in owners' equity other than the net profit or loss of the investee: for other changes in owners' equity other
than the net profit or loss of the investee accounted for at equity method, when the shareholding ratio is unchanged, the Company calculates the proportion it shall enjoy or undertake according to such ratio, adjusts the book value of long-term equity investment and increases or decreases capital reserves (other capital reserves) at the same time. (2) Under the 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 its investment income. Under the equity method, based on the net book profit of investee, the Company shall consider: when the accounting policy and period adopted by the investee and the Company are not the same, the financial statements of the investee shall be adjusted in accordance with the accounting policy and period of the Company; the influence of the depreciation amount, amortization amount and relevant asset impairment provision accrued based on the fair value of fixed assets and intangible assets of the investee on acquisition of investment on the net profit of the investee; after making proper adjustments, including the cancellation of unrealized internal transitions between the Company and the associates or joint ventures, the Company shall recognize its shared or undertaken net profit or loss in the investee. 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 (note: mainly limited to those long-term equity with no clear recovery plan and that are not prepared to be collected in the foreseeable future period) 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, accrued 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 accrued 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. 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 and other changes in equity recorded in the consolidated financial statements.
(3) Determination basis of joint control or significant influence over the investee
Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control. Where an investing enterprise and other parties do joint control over an investee, the investee shall be their 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. Where an investing enterprise is able to have significant influences on an investee, the investee shall be its associate.
(4) Testing and provision method of impairment
For long-term equity investment measured at cost, with no quoted price in active market and whose fair value can be reliably measured, its impairment loss is determined at the difference between its book value and its present value. For long-term equity investment which is measured at cost and has no quoted price in the active market, and whose fair value cannot be reliably measured, the difference between its book value and the present value of the future cash flows discounted at the prevailing market rate of return for a similar financial asset is recognized as impairment loss. For long-term equity investment measured at cost other than that mentioned above, if its book value is higher than the net assets it shares in the investee, the Company shall consider the impairment in value. And the provision for such impairment shall be made at the difference of the recoverable amount in short of the book value of the long-term equity investment. For other long-term equity investments, if the measurement result shows that the recoverable amount of the long-term equity investment is lower than its book value; such difference shall be recognized as impairment loss. Once recognized, the impairment loss of long-term equity investment shall not be reversed.
14. Investment real estate
Nil
15. Fixed assets
(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; and (2) The costs of the fixed assets can be measured reliably.
(2) Recognition criteria and valuation method for fixed assets under financing lease
Nil
(3) Method of provision for impairment of fixed assets
The fixed assets are depreciated at straight-line-method, and the depreciation rates are determined as follows based on the category, estimated economic useful lives and estimated residual values(5% of original values):
|||||
|-|-|-|-|
|Category|Estimated useful life (Year)|Estimated residual rate|Annual depreciation rate|
|Buildings and constructions|20-40|5.00%|4.75-2.37|
|Machinery equipment|8-20|5.00%|11.87-4.75|
|Electronic equipment|5-16|5.00%|19-5.93|
|Transportation equipment|7-12|5.00%|13.57-7.91|
|Other equipment|8|5.00%|11.87|
|Improvement|5||19|

(4) Testing and provision methods of impairment of fixed assets
The Company assesses whether there is any indication that fixed assets may be impaired at the end of each
period.
If there is any indication that fixed assets may be impaired, the Company estimates the recoverable amounts of the assets. The recoverable amounts of fixed assets are the higher of their fair values less costs to disposal and the present values of the estimated future cash flows of the assets.
If the recoverable amounts of fixed assets are lower than their book values, the book values of the assets are written down to their recoverable amounts. The write-downs are recognized as impairment losses and included to the current profit and loss. Provisions for impairment of the assets are made accordingly.
After impairment losses are recognized, the depreciation charges for the impaired fixed assets are adjusted in future periods to amortize their revised book values (less their estimated net residual values) over their remaining useful lives on a systematic basis.
The impairment loss on fixed assets will not be reversed in subsequent accounting period once it is recognized.
If any indication suggests that a fixed asset may be impaired, the Company estimates the recoverable amount of the individual asset. 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.
(5) Other explanation
Nil
16. Construction in progress
(1) Category of construction in progress
Construction in progress is measured on an individual basis.
(2) Criteria and timing for conversion of construction in progress into fixed assets
The initial book values of the fixed assets are stated at total expenditures incurred before construction in progress reaching 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.
(3) Testing and provision methods of impairment of construction in progress
The Company assesses whether there is any indication that construction in progress may be impaired at the end of each period.
If there is any indication that construction in progress may be impaired, the Company estimates its recoverable amounts. If any indication suggests that one construction in progress may be impaired, the Company estimates the recoverable amount of the individual construction in progress. If it is difficult to estimate the recoverable amount of the individual construction in progress, the Company estimates the recoverable amount of the asset group that the individual construction in progress belongs to.
The recoverable amount of construction in progress is the higher of its fair value less costs to disposal and the present value of the estimated future cash flows of the construction in progress.
If the recoverable amount of construction in progress is lower than its book values, the book value of the construction in progress is written down to its recoverable amount. The write-down is recognized as impairment loss and included in current profit and loss. Provision for impairment of the construction in progress is made accordingly.
The impairment loss on construction in progress will not be reversed in subsequent accounting period once it is recognized.
17. 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.
18. Biological assets
Nil
19. Oil-and-gas assets
Nil
20. Intangible assets
(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
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.
||||
|-|-|-|
|Item|Estimated useful life|Basis|
|Land use right|50 years|Validity term of land use certificate|

(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.
(4) Provision for impairment of intangible assets
If the intangible asset with definite useful life has any obvious impairment sign, impairment test should be conducted at the end of the period.
As to the intangible asset with indefinite useful life, impairment test should be conducted at the end of each period.
Impairment test is conducted for intangible assets to estimate their recoverable amounts. If any indication suggests that an intangible asset may be impaired, the Company estimates the recoverable amount of such individual asset. 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 recoverable amounts of intangible assets are the higher of their fair values less costs to disposal and the present values of the estimated future cash flows of the intangible assets.
If the recoverable amounts of intangible assets are lower than their book values, the book values of the assets are written down to their recoverable amounts. The write-downs are recognized as impairment losses and included in the current profit and loss. Provisions for impairment of the intangible assets are made accordingly.
After impairment losses are recognized, the depletion or amortization charges for the intangible assets are adjusted in future periods to depreciate their revised book values (less their estimated net residual values) over their remaining useful lives on a systematic basis.
The impairment loss on intangible assets will not be reversed in subsequent accounting period once it is recognized.
(5) Detail criteria on classification of research stage and development stage for internalR&D projects of the
Company
Nil
(6) Calculation of expenditure for internalR&D projects
Nil
21. 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|
|Roof waterproofing|
|Exterior wall coatings|

22. Assets transfer with buy-back conditions attached
Nil
22. Accrued 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, accrued liabilities are recognized.
(1) Recognition criteria of accrued liabilities
The Company recognizes the accrued liabilities when obligations related to contingencies satisfy all the following conditions:
(1) This obligation is a present obligation of the Company;
(2) The performance of such 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 accrued liabilities
The accrued 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 circumstance:
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.
24. Share-based payment and equity instruments
(1) Type of share-based payment
Nil
(2) Recognition method for fair-value of equity instrument
Nil
(3) Basis of best estimation for vesting equity instrument
Nil
(4) Relevant accounting treatment for implementation, amendment and termination of shares payment plan
Nil
25. Shares of the Company buy-back
Nil
26. Revenue
(1) Detail recognition criteria for 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) Detail recognition criteria for the Company after the customer order is received and the manger of sales department confirms and verifies the terms of payment, the manager places advanced orders and records them in the Qianliama Sales Management System; most customers will pay advance payment or the sales department provides guarantees; the receptionists, according to the advanced orders of the sales department, review relevant data recorded in the computer system,
and handle check-in formalities after the customers arrive, collect deposit and record relevant information into the computer system. Each consumption department, after checking with the receptionists, deals with the consumption sign bills and make pre-settlements in the reception desk. The evening reviewer of reception desk reviews the consumption bills every night and makes verifications in the computer system, and prepares daily business report containing each items of income and detailed report of accounts receivable, and submits the reports to the finance department, which recognizes the revenue after examining the daily reports.
(2) 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.
(3) Specific recognition criteria of revenue from rendering of service
When the outcome of a service transaction can be estimated reliably on the balance sheet date, revenue from rendering of service shall be recognized at the percentage-of-completion method. The percentage of completion of rendering of service is determined based on the proportion of services that is already rendered in the total amount of service that is supposed to be rendered.
The total amount of revenue from rendering of service is determined at the contract or agreement price received or receivable, unless such price received or receivable is unfair. The revenue from rendering of service for the current period shall be recognized at the total amount of revenue from rendering of service, multiplying the progress of completion and deducting the revenue from rendering of service accumulated and recognized in the previous accounting period. Meanwhile, the costs of rendering of service for the current period shall be carried forward at the total estimated costs of rendering of service, multiplying the progress of completion and deducting the costs of rendering of service accumulated and recognized in the previous accounting period.
When the outcome of a service transaction cannot be estimated reliably on the balance sheet date, revenue shall be treated as follows:
(1) If the service costs incurred are expected to be fully compensated, revenues from rendering of service are recognized at the service costs incurred, and the service costs should be carried forward by the same amount. (2) If the service costs incurred are not expected to be compensated, revenues from rendering of service are not recognized and the service costs incurred are included in the current profit and loss.
(4) While income from labor service provided and income of construction contract recognized by percentage-of-completion method, basis and methods for recognize the completion progress of contract Nil
27. Government subsidies
(1) Types
Government subsidies are monetary assets and non-monetary assets acquired free of charge by the Company from the government. Government subsidies are classified into government subsidies related to assets and government subsidies related to income.
(2) Accounting policy
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;
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.
28. Deferred income tax assets and deferred income tax liabilities
(1) Basis of recognition of deferred income tax assets
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.
(2) Basis of recognition of deferred income tax liability
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.
29. Operating lease, financing lease
(1) Accounting of operating lease
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.
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 of financing lease
Nil
(3) Accounting of leaseback
Nil
30. Assets held for sales
(1) Recognition of assets held for sales
Nil
(2) Accounting treatment of assets held for sales
Nil
31. Assets securitization
Nil
32. Hedge accounting
Nil
33. Adjustments for changes in principal accounting policies and estimates
Whether the principal accounting policies and estimates have changed in reporting period or not
□ Yes√ No
Nil
(1) Adjustments for changes in accounting policies
Whether have changes in accounting policies or not
□ Yes√ No
Nil
(2) Adjustments for changes in accounting estimates
Whether have changes in accounting estimates or not
□ Yes√ No
Nil
33. Correction of accounting errors in previous period
Whether correction of accounting errors in previous period occurred in reporting period or not
□ Yes√ No
Nil
(1) Retrospective restatement method
Whether has accounting errors of previous period with retrospective restatement method in reporting period or not□ Yes√ No
Nil
(2) Prospective application method
Whether has accounting errors of previous period with prospective application method in reporting period or not□ Yes√ No
Nil
35. Other principal accounting policies and estimates as well as formulation method of financial statement Nil
V. Taxation
1. Major tax types and tax rates applicable to the Company
||||
|-|-|-|
|Taxation|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%|
|Education surcharge|Turnover tax|3%|
|Local education surcharge|Turnover tax|2%|
||Remaining value after deducting 30% of the||
|Property tax||1.2%|
||original value of houses (including land price)||
|Land use tax|Land area|18 Yuan/㎡|
|Enterprise income tax|Income tax payable|25%|

Income tax rates implemented by vary companies and branch plants
Nil
2. Tax preference and approvals
Nil
3. Other explanation
Nil
VI. Business combination and consolidated financial statements
1. Subsidiary
Nil
2. Operational entity with controlling rights form through entrust operation or accepting leases from special purpose entity
Nil
3. Explanation on changes of consolidation scope
Explanation on changes of consolidation scope
Nil
□ Applicable√ Not applicable
4. Subject newly in consolidation scope and subject excluding the consolidation scope in reporting period Nil
5. Enterprise consolidation under the same control in reporting period
Nil
6. Enterprise consolidation not under the same control in reporting period
Nil
7. Subsidiary reduced due to the equity with control losses sold in reporting period
Nil
8. Counter purchase occurred in reporting period
Nil
9. Consolidation by merger in reporting period
Nil
10. Discount rate on main statement items of overseas operational entity
Nil
VII. Notes to the main items of financial statements
1. Monetary funds
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item|Foreign currency|Conversion||Foreign currency|Conversion||
||||RMB amount|||RMB amount|
||amount|rate||amount|rate||
||--|--|542,076.87|--|--|613,560.04|
|Cash|||||||
||--|--|542,076.87|--|--|613,560.04|
|RMB|||||||
||--|--|6,149,325.27|--|--|6,209,144.39|
|Bank deposit|||||||
||--|--|6,149,325.27|--|--|6,209,144.39|
|RMB|||||||
||--|--||--|--|12,981.03|
|Other monetary funds|||||||
||--|--||--|--|12,981.03|
|RMB|||||||
|Total|--|--|6,691,402.14|--|--|6,835,685.46|

 Explanation separately on accounts with use restriction, account save overseas and accounts has potential collected risk that due to pledge, mortgage or frozen
Nil
2. Transactional financial assets
Nil
3. Notes receivables
Nil
4. Dividend receivables
Nil
5. Interests receivables
Nil
6. Accounts receivable
(1) Accounts receivable by type
In RMB
||||||
|-|-|-|-|-|
|Type|Closing amount||Opening amount||
||Book balance|Bad debt reserve|Book balance|Bad debt reserve|

||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Proportio|||||
||Amount|Proportion|Amount||Amount|Proportion|Amount|Proportion|
|||||n|||||
|Accounts receivable with|||||||||
|large single amount and|||||||||
||1,339,625.51|24.28%|1,339,625.51|100.00%|1,339,625.51|24.14%|1,339,625.51|100.00%|
|accrued for provision of bad|||||||||
|debt on a single basis|||||||||
|Accounts receivable accrued for provision of bad debt by portfolio|||||||||
|Accounts receivable accrued|||||||||
|for provision of bad debt by|4,178,579.57|75.72%|699,431.52|16.74%|4,208,809.28|75.86%|699,431.52|16.52%|
|portfolio|||||||||
|Portfolio subtotal|4,178,579.57|75.72%|699,431.52|16.74%|4,208,809.28|75.86%|699,431.52|16.52%|
|Accounts receivable with|||||||||
|insignificant single amount|||||||||
||||||0.00|0.00%|0.00|0.00%|
|but accrued for provision of|||||||||
|bad debt on a single basis|||||||||
|Total|5,518,205.08|--|2,039,057.03|--|5,548,434.79|--|2,039,057.03|--|

 Explanation on type of account receivable
Nil
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
||||||
|-|-|-|-|-|
|Accounts receivable|Book balance|Bad debt reserve|Accrual proportion|Reason for accrual|
|||||Unable to recover for|
|Sanya Power Supply Company|773,409.98|773,409.98|100.00%||
|||||the long aging|
|Hainan Hong Kong & Macao||||Unable to recover for|
||464,563.21|464,563.21|100.00%||
|International Tourism Ltd.||||the long aging|
|||||Unable to recover for|
|Reception of Sanya Municipal|101,652.32|101,652.32|100.00%||
|||||the long aging|
|Total|1,339,625.51|1,339,625.51|--|--|

Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio
√Applicable □Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Age|Book balance|||Book balance|||
||||Bad debt reserve|||Bad debt reserve|
||Amount|Proportion||Amount|Proportion||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|

||||||||
|-|-|-|-|-|-|-|
|1 month to 12|||||||
||2,530,143.08|60.55%||2,560,372.79|60.83%||
|months|||||||
|Subtotal of within|||||||
||2,530,143.08|60.55%||2,560,372.79|60.83%||
|1 year|||||||
||857,441.57|20.52%|42,872.08|857,441.57|20.37%|42,872.08|
|1-2 years|||||||
||22,659.00|0.54%|3,398.85|22,659.00|0.54%|3,398.85|
|2-3 years|||||||
|Over 3 years|768,335.92|18.39%|653,160.59|768,335.92|18.26%|653,160.59|
||108,094.91|2.59%|27,023.73|108,094.91|2.57%|27,023.73|
|3-4 years|||||||
||68,208.29|1.63%|34,104.14|68,208.29|1.62%|34,104.14|
|4-5 years|||||||
|Over 5 years|592,032.72|14.17%|592,032.72|592,032.72|14.07%|592,032.72|
|Total|4,178,579.57|--|699,431.52|4,208,809.28|--|699,431.52|

 Account receivables accrued for provision of bad debt by balance percentage method in portfolio
□ Applicable√ Not applicable
Account receivables accrued for provision of bad debt by other method in portfolio
□ Applicable√ Not applicable
Accounts receivable with insignificant single amount but accrued for provision of bad debt on a single basis at period-end
□ Applicable√ Not applicable
(2) Accounts receivable switch-back or collected in reporting period
Nil
(3) Accounts receivable actually verified in reporting period
Nil
(4) Amount due from shareholder holding more than5% (inclusive) voting shares of the Company among ending balances
In RMB
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Company name||Provision for bad||Provision for bad|
||Book balance||Book balance||
|||debts||debts|
|Luoniushan Co., Ltd.|16,615.70|0.00|19,977.00|0.00|
|Total|16,615.70|0.00|19,977.00|0.00|

(5) Top five accounts receivable
In RMB
||||||
|-|-|-|-|-|
||Relationship with|||Proportion in total|
|Company name||Amount|Term||
||the Company|||accounts receivable (%)|
|Sanya Haiyuan Hotel Management Ltd.|Non-related party|2,986,487.99|Within 1 year|54.12%|
|Sanya Power Supply Company|Non-related party|775,304.98|Within 5 years|14.05%|
|Hainan Hong Kong & Macao International|||||
||Non-related party|464,563.21|Within 5 years|8.42%|
|Tourism Ltd.|||||
|Hainan Haiyuan Aoda Travel Agency Co.,|||||
||Non-related party|150,065.00|Within 1 year|2.72%|
|Ltd. Chengdu Branch|||||
|Hainan Chenda International Tourism Ltd.|Non-related party|107,640.00|Within 1 year|1.95%|
|Total|--|4,484,061.18|--|81.26%|

 (6) Account receivable from related parties
In RMB
|||||
|-|-|-|-|
||||Proportion in total accounts|
|Company name|Relationship with the Company|Amount||
||||receivable|
|Luoniushan Co., Ltd.|First majority shareholder|16,615.70|0.30%|
|Total|--|16,615.70|0.30%|

 (7) De-recognition of account receivable
Nil
(8) Securitization with object of account receivables, listed the amount of assets and liability that continues to involved
Nil
7. Other receivables
(1) Other receivables by type
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing amount||||Opening amount||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Type|||||||||
|||Proportio||Proportio||Proporti||Proportio|
||Amount||Amount||Amount||Amount||
|||n||n||on||n|
|Other receivables with large|||||||||
|single amount and accrued|77,363,143.31|95.16%|77,363,143.31|100.00%|77,363,143.31|94.93%|77,363,143.31|100.00%|
|for provision of bad debt on|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|a single basis|||||||||
|Other receivables accrued for provision of bad debt by portfolio|||||||||
|Other receivables accrued|||||||||
|for provision of bad debt by|3,932,648.27|4.84%|835,627.92|21.25%|4,134,679.28|5.07%|835,627.92|20.21%|
|portfolio|||||||||
|Portfolio subtotal|3,932,648.27|4.84%|835,627.92|21.25%|4,134,679.28|5.07%|835,627.92|20.21%|
|Total|81,295,791.58|--|78,198,771.23|--|81,497,822.59|--|78,198,771.23|--|

 Explanation on type of other receivables
Nil
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
||||||
|-|-|-|-|-|
|Other receivables|Book balance|Bad debt amount|Accrual proportion|Reasons|
|Hainan Dadonghai Tourism|||||
||54,767,945.15|54,767,945.15|100.00%|Unable to recover|
|Co., Ltd.|||||
|Cash dividends distributed in|||||
||16,899,000.00|16,899,000.00|100.00%|Unable to recover|
|1994-1996|||||
|Hainan Hong Kong & Macao|||||
||4,145,704.16|4,145,704.16|100.00%|Unable to recover|
|International Tourism Ltd.|||||
|Guangdong Jinma Tourism|||||
||1,200,494.00|1,200,494.00|100.00%|Unable to recover|
|Ltd.|||||
|Shareholder custody fee|350,000.00|350,000.00|100.00%|Unable to recover|
|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
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance||Bad debt reserve|Book balance|||
|Age|||||||
|||||||Bad debt reserve|
|||Proporti|||Proportion||
||Amount|||Amount|||
|||on|||||
|Within 1 year|||||||
|Including:|||||||
|1-12 months|1,094,245.61|27.82%||1,296,276.62|31.35%||
|Subtotal of within 1 year|1,094,245.61|27.82%||1,296,276.62|31.35%||
||2,107,235.61|53.58%||2,107,235.61|50.96%|105,361.77|
|1-2 years|||||||
||288.70|0.01%||288.70|0.01%|43.31|
|2-3 years|||||||
|Over 3 years|730,878.35|18.58%||730,878.35|17.68%||

||||||||
|-|-|-|-|-|-|-|
||707.36|0.02%|176.85|707.36|0.02%|176.85|
|3-4 years|||||||
||250.00|0.01%|125.00|250.00|0.01%|125.00|
|4-5 years|||||||
|Over 5 years|729,920.99|18.56%|729,920.99|729,920.99|17.65%|729,920.99|
|Total|3,932,648.27|--||4,134,679.28|--|835,627.92|

 Other account receivables accrued for provision of bad debt by balance percentage method in portfolio
□ Applicable√ Not applicable
Other account receivables accrued for provision of bad debt by other method in portfolio
□ Applicable√ Not applicable
Other receivables with insignificant single amount but accrued for provision of bad debt on a single basis at period-end
□ Applicable√ Not applicable
(2) Other accounts receivable switch-back or collected in reporting period
Nil
(3) Other accounts receivable actually verified in reporting period
Nil
(4) Amount due from shareholders holding more than5% (inclusive) voting shares of the Company among other receivables as at December 31, 2012.
Nil
(5) Nature or content of other receivables with significant amount
Nil
(6) Top five other receivables
In RMB
||||||
|-|-|-|-|-|
||Relationship with|||Proportion in total other|
|Company name||Amount|Term||
||the Company|||receivables|
|Hainan Dadonghai Tourism Co.,|||||
||Non-related party|54,767,945.15|Over 5 years|67.37%|
|Ltd.|||||
|Cash dividends distributed in|||||
||Non-related party|16,899,000.00|Over 5 years|20.79%|
|1994-1996|||||
|Hainan Hong Kong & Macao|||||
||Non-related party|4,145,704.16|Over 5 years|5.10%|
|International Tourism Ltd.|||||
|Sanya Haiyuan Hotel Management|Non-related party|2,808,368.63|Over 1 year|3.45%|

||||||
|-|-|-|-|-|
|Ltd.|||||
|Guangdong Jinma Tourism Ltd.|Non-related party|1,200,494.00|Over 5 years|1.48%|
|Total|--|79,821,511.94|--|98.19%|

 (7) Other account receivable from related parties
Nil
(8) De-recognition other account receivable
Nil
(9) Securitization with object of other account receivables, listed the amount of assets and liability that continues to involved
Nil
(10) Government subsidy recognized based on account receivable at period-end
Nil
8. Prepayments
(1) Prepayments by aging
In RMB
|||||
|-|-|-|-|
||Closing amount|||
|Age||||
||Amount|Proportion|Amount|
|Within 1 year|134,694.62|100.00%|201,053.21|
|Total|134,694.62|--|201,053.21|

 Explanation on prepayment
Nil
(2) Top five prepayments
In RMB
||||||
|-|-|-|-|-|
||Relationship||||
|Company name|with the|Amount|Time|Reason for unsettlement|
||Company||||
|||||Without render an|
|Sanya Yangfan Hardware Firms|Non-related|48,597.00|1-2 years||
|||||account|

||||||
|-|-|-|-|-|
|Haina Branch of Sunshine Property &||||Without render an|
||Non-related|24,602.62|Within 1 year||
|Casualty Insurance Company||||account|
|||||Without render an|
|Sanya Zhiyuan Furnishings Store|Non-related|14,250.00|1-2 years||
|||||account|
|Hainan Jian Automatic Fire Engineering Co.,||||Without render an|
||Non-related|12,000.00|Within 1 year||
|Ltd.||||account|
|||||Without render an|
|Sanya Morning Post|Non-related|10,800.00|Within 1 year||
|||||account|
|Total|--|110,249.62|--|--|

Explanation for major unit prepayment
Nil
(3) Amount due from shareholder holding more than5% (inclusive) voting shares of the Company among ending balances of prepayment from related parties
Nil
(4) Explanation on prepayment
Nil
9. Inventories
(1) Classification of inventories
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
|Item||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||depreciation|||depreciation||
|Raw materials|1,019,413.50|747,043.57|272,369.93|1,028,333.60|748,096.33|280,237.27|
|Stock commodities|22,771.38|11,102.41|11,668.97|22,771.38|11,102.41|11,668.97|
|Food and drinks|15,142.68||15,142.68|11,486.19||11,486.19|
|Fuel|15,600.00||15,600.00|13,941.80||13,941.80|
|Total|1,072,927.56|758,145.98|314,781.58|1,076,532.97|759,198.74|317,334.23|

 (2) Inventory depreciation reserve
In RMB
|||||||
|-|-|-|-|-|-|
|Category of|Book balance atperiod-begin||Decreased in the Period||Book balance at|
|||Accrual in the Period||||
|inventories|||Reversal|Write-off|period-end|

|||||
|-|-|-|-|
|Raw materials|748,096.33|1,052.76|747,043.57|
|Stock commodities|11,102.41||11,102.41|
|Total|759,198.74|1,052.76|758,145.98|

 3) Particular about inventory depreciation reserve
Nil
10. Other current assets
Nil
11. Financial assets available for sale
Nil
12. Held-to-maturity investment
Nil
13. Long-term account receivable
Nil
14. Investment for affiliated enterprise and joint ventures
Nil
15. Long-term equity investment
(1) Details of long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanation||||
||||||||Proport|||Impai||
|||||Inc||||on the||||
||||||||ion of|||rment||
|||||rea||||incongruity||||
|||||||Proportio|voting|||provi|Cash|
|||||se/||||in share||||
||Calculati|||||n of share|rights|||sion|bonu|
|||Investment|Balance at|de|Balance at|||holding|Impairment|||
|Invested company|on|||||holding in|in|||of|s this|
|||cost|period-begin|cre|period-end|||proportion|provision|||
||method|||||invested|investe|||accrui|perio|
|||||ase||||and voting||||
|||||||company|d|||ng|d|
|||||(+,||||proportion||||
||||||||compan|||this||
|||||-)||||in invested||||
||||||||y|||year||
|||||||||company||||
|Shenzhen Difu||||||||||||
|Investment &|Cost|5,000,000.00|5,000,000.00||5,000,000.00|14.28%|||5,000,000.00|||
|Development Ltd.||||||||||||
|Hubei Jingsha||||||||||||
|Dadonghai Club|Cost|4,566,207.42|4,566,207.42||4,566,207.42|91.00%|||4,566,207.42|||
|Ltd.||||||||||||
|Sanya Shun’an||||||||||||
||Cost|5,150,166.84|5,150,166.84||5,150,166.84|70.00%|||5,150,166.84|||
|Casino||||||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Haikou|||||||||
|Luoniushan||10,000,000.0|10,000,000.0|10,000,000.0|||||
||Cost||||9.09%||||
|Petty-Loan Co.,||0|0|0|||||
|Ltd|||||||||
|||24,716,374.2|24,716,374.2|24,716,374.2||||14,716,374.2|
|Total|--||||--|--|--||
|||6|6|6||||6|

 (2) Relevant particular about restriction of the ability of capital transfer to investment enterprises
Nil
16. Investment real estate
Nil
17. Fixed assets
(1) Particular about fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
||Book balance at|||Decreased in the|Book balance at|
|Item||Increase in this period||||
||period-begin|||Period|period-end|
|I. Total original book value:|187,432,381.94|559,488.00||69,480.00|187,922,389.94|
|Including: Buildings and||||||
||156,679,569.41||||156,679,569.41|
|constructions||||||
|Machinery||||||
||13,858,617.00||||13,858,617.00|
|equipment||||||
|Transportation||||||
||1,635,734.77|455,588.00||65,280.00|2,091,322.77|
|facility||||||
|Electronic equipment|2,895,261.78|103,900.00||4,200.00|2,933,881.78|
|Other equipment|2,248,275.09||||2,244,075.09|
|Improvement|10,114,923.89||||10,114,923.89|
||Book balance at|Increase during|Accrual in this|Decreased in the|Balance at|
|--||||||
||period-begin|this period|period|Period|period-end|
|II. Total accumulated||||||
||91,604,335.78||2,414,315.37|63,940.41|93,954,710.74|
|depreciation:||||||
|Including: Buildings and||||||
||68,907,346.70||1,815,399.63||70,722,746.33|
|constructions||||||
|Machinery||||||
||8,832,534.14||178,082.46||9,010,616.60|
|equipment||||||
|Transportation||||||
||762,866.36||77,824.58||840,690.94|
|facility||||||
|Electronic equipment|1,979,777.20||172,677.51|60,947.91|2,091,506.80|

|||||||
|-|-|-|-|-|-|
|Other equipment|1,361,038.06||96,898.81|2,992.50|1,454,944.37|
|Improvement|9,760,773.32||73,432.38||9,834,205.70|
||Book balance at||||Balance at|
|--||--||||
||period-begin||||period-end|
|III. Total net book value of||||||
||95,828,046.16|--|||93,967,679.20|
|fixed assets||||||
|Including: Buildings and||||||
||87,772,222.71|--|||85,956,823.08|
|constructions||||||
|Machinery||||||
||5,026,082.86|--|||4,848,000.40|
|equipment||||||
|Transportation||||||
||872,868.41|--|||1,250,631.83|
|facility||||||
|Electronic equipment|915,484.58|--|||842,374.98|
|Other equipment|887,237.03|--|||789,130.72|
|Improvement|354,150.57|--|||280,718.19|
|IV. Total provision for||||||
||35,199,140.69|--|||35,199,140.69|
|impairment||||||
|Including: Buildings and||||||
||32,449,653.81|--|||32,449,653.81|
|constructions||||||
|Machinery||||||
||2,527,851.26|--|||2,527,851.26|
|equipment||||||
|Electronic equipment|21,643.05|--|||21,643.05|
|Other equipment|199,992.57|--|||199,992.57|
|Improvement||--||||
|V. Total book value of fixed|60,628,905.47||||58,768,538.51|
|||--||||
|assets||||||
|Including: Buildings and||||||
||55,322,568.90|--|||53,507,169.27|
|constructions||||||
|Machinery||||||
||2,498,231.60|--|||2,320,149.14|
|equipment||||||
|Transportation||||||
||872,868.41|--|||1,250,631.83|
|facility||||||
|Electronic equipment|893,841.53|--|||820,731.93|
|Other equipment|687,244.46|--|||589,138.15|
|Improvement|354,150.57|--|||280,718.19|

RMB 2,414,315.37 depreciated in this period; original price transfer as fixed assets from construction in process was RMB0.00
(2) Temporary idle fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Accumulative||||
|Item|Original book value||Impairment reserves|Net book value|Note|
|||depreciation||||
|Other equipment|230,710.58|20,306.92|199,992.57|10,411.09||

(3) Fixed assets leasing-in by financing lease
Nil
(4) Fixed assets leasing-out by operational lease
Nil
(5) Fixed assets held for sale in period-end
Nil
(6) Fixed assets without property certificates
Nil
18. Construction in process
Nil
19. Construction materials
Nil
20. Disposal of fixed assets
Nil
21. Productive biological assets
Nil
23. Intangible assets
(1) Particular about intangible assets
In RMB
||||||
|-|-|-|-|-|
||Book balance at|||Book balance at|
|Item||Increase in this period|Decreased in the Period||
||period-begin|||period-end|
|I. Total original book value|87,833,001.74|||87,833,001.74|
|Land use right|87,833,001.74|||87,833,001.74|
|II. Total accumulated|||||
||29,902,202.33|447,470.52||30,349,672.85|
|amortization|||||
|Land use right|29,902,202.33|447,470.52||30,349,672.85|
|III. Total net book value of|||||
||57,930,799.41|-447,470.52||57,483,328.89|
|intangible assets|||||
|Land use right|57,930,799.41|-447,470.52||57,483,328.89|

|||||
|-|-|-|-|
|IV. Total impairmentprovisions||||
||29,343,890.98||29,343,890.98|
|Land use right|29,343,890.98||29,343,890.98|
|Total book value ofintangible asset|28,586,908.43||28,139,437.91|
|||-447,470.52||
|Land use right|28,586,908.43|-447,470.52|28,139,437.91|

 The amount amortized in this period accounting as 447,470.52 Yuan
(2) Expenditure of project development
Nil
24. Goodwill
Nil
25. Long-term deferred expense
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase in this|Amortization|||Reasons for other|
|Item|Opening amount|||Other decrease|Closing amount||
|||period|during this period|||decrease|
|Painting of Hotel’s|||||||
||490,880.02||147,264.06||343,615.96||
|external wall|||||||
|Roof waterproof|91,666.75||49,999.98||41,666.77||
|Total|582,546.77||197,264.04||385,282.73|--|

 Explanation on long-term deferred expenses
Nil
26. Deferred income tax assets and deferred income tax liabilities
Nil
27. Provision for assets impairment
In RMB
|||||||
|-|-|-|-|-|-|
||Book balance atperiod-begin|Increase in this|Decreased in the Period||Book balance at|
|Item||||||
|||period|Reversal|Write-off|period-end|
|I. Bad debt reserve|80,237,828.26||||80,237,828.26|
|II. Inventory depreciation|759,198.74|||1,052.76|758,145.98|
|reserve||||||
|V. Long-term equity|||||14,716,374.26|
|investment impairment|14,716,374.26|||||
|provision||||||
|VII. Provision for impairment|35,199,140.69||||35,199,140.69|
|of fixed assets||||||

||||||
|-|-|-|-|-|
|IX. Provision for construction|0.00|0.00||0.00|
|in progress|||||
|XII. Provision for impairment|29,343,890.98|||29,343,890.98|
|of intangible assets|||||
|XIII. Provision for||||0.00|
|impairment of goodwill|||||
|Total|160,256,432.93||1,052.76|160,255,380.17|

 Explanation on provision for assets impairment
Nil
28. Other non-current assets
Nil
29. Short-term loans
Nil
30. Transactional financial liabilities
Nil
31. Note payable
Nil
32. Accounts payable
(1) Accounts payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Within 1 year(including 1 year)|1,180,001.27|1,142,768.95|
||145,272.00|145,272.00|
|1-2 years (including 2 years)|||
||376,032.08|376,032.08|
|2-3 years (including 3 years)|||
|Over 3 years|507,882.93|507,882.93|
|Total|2,209,188.28|2,171,955.96|

 (2) Amount payable from shareholders holding more than5% (inclusive) voting shares of the Company among ending balances.
Nil
(3) Accounts payable with large amount and aging of over one year
Nil
33. Accounts received in advance
(1) Accounts received in advance
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
||626,190.89|1,010,172.16|
|Within 1 year (including 1 year)|||
||185,737.68|185,737.68|
|1-2 years (including 2 years)|||
||232,497.38|232,497.38|
|2-3 years (including 3 years)|||
|Over 3 years|171,587.59|171,587.59|
|Total|1,216,013.54|1,599,994.81|

 (2) Amount received in advance from shareholders holding more than5% (inclusive) voting shares of the Company among ending balances
Nil
(3) Accounts received in advance with large amount and aging of over one year
||||
|-|-|-|
|Company name|Closing balance|Reasons for notcarry forward|
|Hainan Sea-view Paradise International Co., Ltd, SanyaWuzhizhou Island Resort|104,170.40|Accountunsettled|

34. Wages payable
In RMB
||||||
|-|-|-|-|-|
||Book balance at|||Book balance at|
|Item||Increase in this period|Decreased in the Period||
||period-begin|||period-end|
|I. Salary, bonus,|||||
|allowance and|2,852,036.47|3,459,459.37|4,021,747.43|2,289,748.41|
|subsidy|||||
|||551,792.17|551,792.17||
|II. Employee welfare|||||
|III. Social insurance|||||
|||546,548.68|546,548.68||
|expense|||||
|Including : medical|||||
|||155,108.34|155,108.34||
|insurance expenses|||||

||||||
|-|-|-|-|-|
|Basic|||||
|||350,723.20|350,723.20||
|endowment|||||
|insurance expenses|||||
|Annuity|||||
|||19,389.85|19,389.85||
|Unemployment|||||
|insurance expenses|||||
|Work injury|||||
|||9,692.31|9,692.31||
|insurance expenses|||||
|Maternity insurance|||||
|||11,634.98|11,634.98||
|expenses|||||
|IV. Housing|||||
|||54,303.80|54,303.80||
|provident funds|||||
|VI. Others|697,814.57|116,980.21|60,817.83|753,976.95|
|Total|3,549,851.04|4,729,084.23|5,235,209.91|3,043,725.36|

 Default amount in employee compensation payable was 0.00
Labor union expenditure and employee education funds was 0.00 Yuan, non-monetary welfare was 0.00 Yuan and compensation for labor service terminated was 0.00 Yuan
Arrangement of pay date and amount for employee compensation payable
Nil
35. Tax payable
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
||135,982.62|135,982.62|
|Value added tax|||
||38,903.08|111,018.40|
|Business tax|||
|Enterprise income tax|-1,702,702.80|-1,702,702.80|
|Urban maintenance and construction tax|2,723.22|7,771.29|
|Educational surtax|1,945.15|5,550.92|
||204,986.70|204,986.58|
|Property tax|||
||108,590.92|72,393.00|
|Land use tax|||
|Total|-1,209,571.11|-1,164,999.99|

 For the mutual adjustment on taxable amount between vary companies and plants, authorized by local taxation bureau, explain the taxation procedures
Nil
36. Interest payable
Nil
37. Dividend payable
Nil
38. Other payables
(1) Other payables
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
||1,253,398.43|2,458,050.52|
|Within 1 year (including 1 year)|||
||308,551.68|308,551.68|
|1-2 years (including 2 years)|||
||122,605.47|122,605.47|
|2-3 years (including 3 years)|||
|Over 3 years|23,003,005.34|23,003,005.34|
|Total|24,687,560.92|25,892,213.01|

 (2) Amount due to shareholders holding more than5% (inclusive) voting shares of the Company among ending balances
In RMB
||||
|-|-|-|
|Company name|Closing amount|Opening amount|
|Luoniushan Co., Ltd.|800,000.00|800,000.00|
|Total|800,000.00|800,000.00|

 (3) Other payables with large amount and aging of over one year
||||
|-|-|-|
|Company name|Closing balance|Reasons of un-repay|
|China Securities Regulatory Commission|19,810,000.00|Financial difficulty|
|Sun Hongjie|1,000,000.00|Guarantee deposit|
|Luoniushan Co., Ltd.|800,000.00|Related debt|
|Hong Kong Deloitte Touche Tohmatsu|285,003.21|Audit fees|
|Total|21,895,003.21||

(4) Other payables with large amount
||||
|-|-|-|
|Company name|Closing balance|Nature or content|
|China Securities Regulatory Commission|19,810,000.00|Fine for rule-breakingoperation on the stock of the|

||||
|-|-|-|
|||Company|
|Sun Hongjie|1,000,000.00|Guarantee deposit|
|Luoniushan Co., Ltd.|800,000.00|Corresponding payment|
|Sanya Dadonghai Donghai Dragon Palace FoodCity|593,372.66|Consumption and depositcollected|
|Hong Kong Deloitte Touche Tohmatsu|285,003.21|Auditing charge|
||22,488,375.87||

39. Accrual liability
Nil
40. Non-current liability due within one year
Nil
41. Other current liability
Nil
42. Long-term loan
Nil
43. Bond payable
Nil
44. Long-term account payable
Nil
45. Specific payable
Nil
46. Other non-current liability
Nil
47. Share capital
In RMB
||||||||
|-|-|-|-|-|-|-|
||Increased /decreased(+,-)||||||
|Opening||||||Closing|
|amount|New shares|Shares granted|Share capital|Others|Sub-total|amount|
||issued||converted from||||

|||||
|-|-|-|-|
|||reserve fund||
|Total shares|364,100,000.00||364,100,000.00|

 Explanation on changes of share capital: For the capital increased/decreased in reporting period, disclosed accounting firms that exercise verification and document serial of Verification Report; for company limited by shares established less in three years, explain the net assets of the year before established; for company limited by shares changed from limited liability company, explain the verification condition while established
Nil
48. Treasury stock
Explanation on treasury stock
Nil
49. Reasonable reserves
Explanation on reasonable reserves
Nil
50. Capital reserves
In RMB
||||||
|-|-|-|-|-|
||||Decreased in the||
|Item|Opening amount|Increase in this period||Closing amount|
||||Period||
||33,336,215.58|||33,336,215.58|
|Capital (share capital) premium|||||
||20,806,634.43|||20,806,634.43|
|Other capital reserves|||||
|Total|54,142,850.01|||54,142,850.01|

 Explanation on capital reserves
Nil
51. Surplus reserves
Nil
52. General risk reserves
Explanation on general risk reserves
Nil
53. Retained profits
In RMB
||||
|-|-|-|
|Item|Amount|Proportion of appropriation|

||||
|-|-|-|
|||or distribution|
|Retained profit of year-end of last year before|||
||-336,331,002.15|--|
|adjustment|||
|Retained profit of year-begin after adjustment|-336,331,002.15|--|
|Plus: net profit attributable to owner of parent|||
||-848,458.96|--|
|company in the period|||
|Retained profits as at period-end|-337,179,461.11|--|

Adjustment of undistributed profit at year-begin:
1) For the retroactive adjustment based on Accounting Standards for Business Enterprises and other relevant regulations, affected undistributed profit at year-begin of RMB
2) For changes of accounting policies, affected undistributed profit at year-begin of RMB
3) For correction on major accounting errors, affected undistributed profit at year-begin of RMB
4) For changes of consolidation scope from same controlling, affected undistributed profit at year-begin of RMB
5) Other adjustment totally affected undistributed profit at year-begin of RMB
Explanation on undistributed profit
For company initially public offering securities, well explained that if the accumulated profit before offering, being decided byshareholders’ general meeting, shares by old and new shareholders; for the accumulated profit before offering, being decided byshareholders’ general meeting, distribute before offering and shares by old shareholders, well disclosed the audited profit shares by old shareholders in dividend payable
Nil
54. Operating income and operating costs
(1) Operating income and operating costs
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
||11,686,452.00|14,778,787.50|
|Income from primary business|||
||5,336.51|5,091.20|
|Operating costs|||

 (2) Primary business (by industry)
In RMB
||||||
|-|-|-|-|-|
||Amount of this period||Amount of last period||
|Industry|||||
||Operating income|Operating cost|Operating income|Operating cost|
|Tourism, catering and service|||||
||11,686,452.00|5,336.51|14,778,787.50|5,091.20|
|industry|||||
|Total|11,686,452.00|5,336.51|14,778,787.50|5,091.20|

(3) Primary business (by products)
In RMB
||||||
|-|-|-|-|-|
|Product|Amount of this period||Amount of last period||
||Operating income|Operating cost|Operating income|Operating cost|
|Guest room|11,686,452.00|5,336.51|14,778,787.50|5,091.20|
|Total|11,686,452.00|5,336.51|14,778,787.50|5,091.20|

 (4) Primary business (by region)
In RMB
||||||
|-|-|-|-|-|
|Region|Amount of this period||Amount of last period||
||Operating income|Operating cost|Operating income|Operating cost|
|Hainan region|11,686,452.00|5,336.51|14,778,787.50|5,091.20|
|Total|11,686,452.00|5,336.51|14,778,787.50|5,091.20|

 (5) Business income from top five customers
In RMB
||||
|-|-|-|
|Name of customer|Total business income|Proportion in total business income of the Company|
|PEGAS Zheng Qingbo|1,930,158.00|16.52%|
|Ji Jinjun|443,180.00|3.79%|
|Li Fei|384,304.00|3.29%|
|Shanghai Ctrip International|310,235.42||
|||2.65%|
|Travel Co., Ltd.|||
|Sanya Baishun International|214,996.00||
|||1.84%|
|Tourism Ltd.|||
|Total|3,282,873.42|28.09%|

 Explanation on business income
Nil
55. Income from contract projects
Nil
56. Business tax and surcharges
In RMB
|||||
|-|-|-|-|
|Item|Amount of this period|Amount of last period|Taxation basis|

|||||
|-|-|-|-|
||584,322.61|738,939.38|5%|
|Business tax||||
|Urban maintenance and construction||||
||40,902.59|51,725.75|7%|
|tax||||
|Educational surtax|17,529.67|22,168.18|3%|
|Local educational surtax|11,686.46|14,778.79|2%|
|Total|654,441.33|827,612.10|--|

Explanation on business tax and surcharges
Nil
57. Sale expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Sale expenses|5,924,967.97|5,866,274.92|
|Total|5,924,967.97|5,866,274.92|

 58. Administrative expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Administrative expenses|5,961,388.09|8,568,614.42|
|Total|5,961,388.09|8,568,614.42|

 59. Financial expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|Less: interest income|-22,530.32|-40,154.79|
|Other|70,535.55|108,267.51|
|Total|48,005.23|68,112.72|

 60. Gains from changes of fair value
Nil
61. Gains on investment
Nil
62. Losses on assets impairment
Nil
63. Non-operating income
(1) Non-operating income
In RMB
|||||
|-|-|-|-|
||||Amount included in current|
|Item|Amount of this period|Amount of last period|non-recurring profits or|
||||losses|
|Total gains on disposal of non-current assets||200.00|110.00|
|Including: gain on disposal of fixed assets||200.00|110.00|
|Income from compensation|456,027.00|57,991.70|45,917.00|
|Other|14,540.76|17,954.65|14,540.76|
|Total|60,567.76|76,146.35||

Explanation on non-operating income
Nil
(2) Government subsidy reckoned into current gains/losses
Nil
64. Non-operating expenses
In RMB
|||||
|-|-|-|-|
||||Amount included in|
|Item|Amount of this period|Amount of last period|current non-recurring|
||||profits or losses|
||1,339.59|200.00|1,339.59|
|Total losses on disposal of non-current assets||||
||1,339.59||1,339.59|
|Including: loss on disposal of fixed assets||||
|||1,200.00||
|Penalty||||
|Total|1,339.59|1,200.00|1,339.59|

 Explanation on non-operating expenses
Nil
65. Income tax expenses
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|

 66. Calculation of basic earnings per share and diluted earnings per share
1. Basic earnings per share
Basic earnings pershare=P0÷S
S=S0+S1+Si×Mi÷M0–Sj×Mj÷M0–Sk
Of which, P0 represents net profit attributable to ordinary shareholders of the Company or net profits attributable to ordinary shareholders after deducting non-recurring profits or losses; S represents the weighted average number of outstanding ordinary shares; S0 represents total number of shares at the beginning of the period; S1 represents shares increased from conversion of reserve fund into share capital or share dividend distribution in the reporting period; Si represents shares increased from issue of new shares or conversion of debt into equity in the reporting period; Sj represents the shares reduced from repurchase during the reporting period; Sk represents the number of reduced shares during the reporting period; M0 represents number of months in the reporting period; Mi represents the number of months from the month immediately following the increase of shares to the end of the reporting period; Mj represents the number of months from the month immediately following the decrease of shares to the end of the reporting period .
2. Diluted earnings per share
Diluted earnings per share=P1/(S0+S1+Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average number of ordinary shares increased from warrants, share options and convertible bonds).
Of which, P1 represents net profits attributable to ordinary shareholders of the Company or net profits attributable to ordinary shareholders of the Company after deducting non-recurring profits or losses, and has been adjusted in accordance with Accounting Standards for Business Enterprises and the relevant regulations after taking the effect of dilutive potential ordinary shares into consideration. When calculating the diluted earnings per share, the Company shall take into account all the effect of dilutive potential ordinary shares on net profits attributable to ordinary shareholders of the Company or net profits attributable to ordinary shareholders of the Company after deducting non-recurring profits or losses and the weighted average number of shares, and include in diluted earnings per share according to the magnitude of dilution in an ascending order until the dilutive earnings per share is reduced to the lowest level.
(1) Basic earnings per share
Basic earnings per share is calculated by dividing combined net profits attributable to ordinary shareholders of the
Company by weighted average number of outstanding ordinary shares of the Company:
|||
|-|-|
|Item|Amount of this period|
|Combined net profits attributable to ordinary shareholders of theCompany|-848,458.96|
|Weighted average number of outstanding ordinary shares of theCompany|364,100,000.00|
|Basic earnings per share (RMB per share)|-0.0023|

 Calculation of weighted average number of ordinary shares:
|||
|-|-|
|Item|Amount of this period|
|Number of ordinary shares issued as at January 1, 2012|364,100,000.00|
|Plus: weighted number of ordinary shares issued in 2012||
|Less: weighted number of ordinary shares repurchased in 2012||
|Weighted number of ordinary shares outstanding as at December31, 2012|364,100,000.00|

(2) Diluted earnings per share
Diluted earnings per share is calculated by dividing combined net profits attributable to ordinary shareholders of the Company after adjustment by weighted average number of outstanding ordinary shares of the Company after adjustment:
|||
|-|-|
|Item|Amount of this period|
|Combined net profits attributable to ordinary shareholders of the Company(diluted)|-848,458.96|
|Weighted average number of outstanding ordinary shares of the Company(diluted)|364,100,000.00|
|Diluted earnings per share (RMB per share)|-0.0023|

 67. Other comprehensive income
Nil
68. Notes to statement of cash flows
(1) Other cash receipts related to operating activities
In RMB
|||
|-|-|
|Item|Amount|
|Interest income|22,530.32|
|Individual amounts|78,817.01|
|Compensation for articles in the guest rooms|45,917.00|
|Total|147,264.33|

Explanation on other cash receipts related to operating activities
Nil
(2) Cash paid for other operating activities
In RMB
|||
|-|-|
|Item|Amount|
|Sale and administrative expenses|1,793,810.07|
|Financial expenses|68,881.15|
|Other|1,139,425.10|
|Total|3,002,116.32|

 Explanation on 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
69. Supplementary information of statement of cash flows
(1) Supplementary information of statement of cash flows
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|1. Net profit adjusted to cash flow from operating activities|--|--|
|Net profit|-848,458.96|-481,971.51|
|Depreciation of fixed assets, depletion of oil and gas assets|||
||2,414,315.37|2,554,558.10|
|and depreciation of productive biological assets|||
|Amortization of intangible assets|447,470.52|434,363.58|
|Amortization of long-term deferred expenses|197,264.04|197,264.04|
|Loss on disposals of fixed assets, intangible assets and|1,339.59|-200.00|

||||
|-|-|-|
|other long-term assets("-" for gains)|||
|Decrease in inventories ("-" for increases)|2,552.65|-12,556.11|
|Decrease in operating receivables ("-" for increases)|-164,666.53|-8,329,538.41|
|Increase in operating payables ("-" for decreases)|-2,034,900.00|8,585,574.42|
|Net cash flow from operating activities|14,916.68|2,947,494.11|
|2. Significant investing and financing activities not|||
||--|--|
|involving cash inflow and outflow|||
|3. Net changes in cash and cash equivalents|--|--|
|Ending balance of cash|6,691,402.14|17,568,928.80|
|Less: beginning balance of cash|6,835,685.46|15,194,668.69|
|Net increase in cash and cash equivalents|-144,283.32|2,374,260.11|

 (2) Subsidiary or other operation units obtained or disposed in reporting period
In RMB
||||
|-|-|-|
|Item|Amount of this period|Amount of last period|
|I. Subsidiary or other operation units obtained:|--|--|
|II. Subsidiary or other operation units disposed:|--|--|

(3) Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|I. Cash|6,691,402.14|6,835,685.46|
|Including: cash on hand|542,076.87|613,560.04|
|Bank deposit available for payment at any time|6,149,325.27|6,209,144.39|
|Other monetary funds available for payment at any|||
|||12,981.03|
|time|||
|III. Ending balance of cash and cash equivalents|6,691,402.14|6,835,685.46|

 Explanation on supplementary information of statement of cash flows
Nil
70. Notes on items of changes ofowner’s equity
Nil
VIII. Accounting treatment of assets securitization
Nil
IX. Related Parties and Transactions
1. Parent company of the Company
Nil
2. Subsidiary of the Company
Nil
3. Details of joint-venture and affiliated enterprise of the Company
Nil
4. Particulars about other related parties
||||
|-|-|-|
|Other related parties|Relationship with the Company|Organization code|
|Luoniushan Co., Ltd.|First majority shareholder|28408974-7|

Explanation on other related parties:
As of 30 June 2014, Luoniushan Co., Ltd. holds 61.0903 million shares of the Company with 16.81 percent occupied in total share capital of the Company, and it is the first majority shareholder of the Company.
5. Related transaction
(1) Statement of commodity purchased and labor service received
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount of this period||Amount of last period||
|||Pricing way and|||||
|||||Ratio in|||
|Related party|Content|decision making||||Ratio in similar|
||||Amount|similar|Amount||
|||procedures||||transactions|
|||||transactions|||
||Accommodation and||||||
|Luoniushan Co., Ltd.||Market price|51,935.70|0.44%|196,416.66|1.32%|
||catering||||||

Goods sold and labor service offering
Nil
(2) Related entrust/contract
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) Other related transactions
Nil
6. Receivables and payables of related parties
Receivables from related parties by listed company
In RMB
|||||||
|-|-|-|-|-|-|
|||period-end||period-begin||
|Item|Related party|||||
|||Book balance|Bad debt reserve|Book balance|Bad debt reserve|
|Accounts receivable|Luoniushan Co., Ltd.|16,615.70||19,977.00||

Payables to related parties by listed company
In RMB
|||||
|-|-|-|-|
|Item|Related party|Amount as at period-end|Amount as at period-begin|
|Other payables|Luoniushan Co., Ltd.|800,000.00|800,000.00|

 X. Share-based payment
Nil
XI. Contingency
Nil
XII. Commitments
1. Material commitments
Nil
2. Commitments made previously
Luoniushan Co., Ltd. made commitments on 30 May 2007 in “Instruction of Split-Share Reform”(Revised) and “Instruction of Split-Share Reform” (summary revised) as: given consequent years of loss, Dadonghai is facing to be delisted. To reverse this operation dilemma, improve profitability and restore continuing operation, controlling shareholder, Luoniushan Co., Ltd is seeking acquisition partners and appropriate time to take asset restructuring
on Dadonghai.
On 7 June 2014, the Company received the Letter of Changing the Commitment for DADONGHAI from
Luoniushan Co., Ltd. from majority shareholder of the Company Luoniushan Co., Ltd. Luoniushan Co., Ltd. decided to changed relevant commitments in line with the above said document. The original commitment changed as: Luoniushan Co., Ltd. will look actively for the restructuring side for reorganization of DADONGHAI in three years since the above said commitment changed has deliberated and approved by General Meeting of DADONGHAI. And the matter has been deliberated and approved by Board of the Company, Supervisory of the Committee and second extraordinary general meeting of 2014 held on 27 June 2014.
XIII. Event after balance sheet date
Nil
XIV. Other significant events
1. Non-monetary assets exchange
Nil
2. Debt reorganization
Nil
3. Enterprise combination
Nil
4. Leasing
Nil
5. Financial instrument issued and convertible to shares at period-end
Nil
6. Assets and liability measure by fair value
Nil
7. Foreign currency financial assets and foreign financial liability
Nil
8. Pension plan and major changes
Nil
9. Other
The Liabilities Statement on Objectives Operation and Management of South China Grand Hotel concluded by and between the Company and Mr. Sun Hongjie has a term of five years, i.e., from May 1, 2011 to April 30, 2016. According to stipulations in such Liabilities Statement on Objectives Operation and Management, during the objectives operation and management period, the base profit index of internal assessment shall be RMB 1.1 million, and60% of the excess over such base index shall be rewarded to Mr. Sun Hongjie and his management team.
XV. Supplementary information
1. Current non-recurring gains/losses
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the|||
||-1,339.59||
|write-off that accrued for impairment of assets)|||
|Other gains/losses satisfied definition of extraordinary profit|||
||60,567.76||
|(gains)/loss|||
|Total|59,228.17|--|

Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the recurring gains/losses□ Applicable√ Not applicable
2. 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)
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of listed||Net assets attributable to shareholders of listed||
||company||company||
||Amount in this period|Amount in last period|Closing amount|Opening amount|
|Chinese GAAP|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|
|Items and amount adjusted by IAS|||||
|By IAS|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|

 (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)
In RMB
|||
|-|-|
|Net profit attributable to shareholders of listed|Net assets attributable to shareholders of listed|

||||||
|-|-|-|-|-|
||company||company||
||Amount in this period|Amount in last period|Closing amount|Opening amount|
|Chinese GAAP|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|
|Items and amount adjusted by foreign accounting rules|||||
|Foreign accounting rules|-848,458.96|-481,971.51|81,063,388.90|81,911,847.86|

 No difference.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
Nil
3. ROE and EPS
In RMB
|||||
|-|-|-|-|
||Weighted average|EPS||
|Profit in the Period||||
||ROE|Basic EPS|Diluted EPS|
|Net profit attributable to common shareholders of the||||
||-1.04%|-0.0023|-0.0023|
|Company||||
|Net profit attributable to common shareholders of the||||
||-1.11%|-0.0025|-0.0025|
|Company after deducting non-recurring gains/losses||||

4. Abnormalities and reasons of the accounting statement items of the Company
|||||
|-|-|-|-|
|Item|Closing balance(or amount of thisperiod)|Opening balance(or amount of lastperiod)|Changes(+,-) (%)|
|Account paid in advance|134,694.62|201,053.21|-33.01%|
|Long-term deferredexpenses|385,282.73|582,546.77|-33.86%|
|Account received inadvance|1,216,013.54|1,599,994.81|-24.00%|
|Operation revenue|11,686,452.00|14,778,787.50|-20.92%|
|Business tax andsurcharge|654,441.33|827,612.10|-20.92%|
|Administrative expenses|5,961,388.09|8,568,614.42|-30.43%|

|||||
|-|-|-|-|
|Financial expenses|48,005.23|68,112.72|-29.52%|
|Operation profit|-907,687.13|-556,917.86|62.98%|
|Non-operation revenue|60,567.76|76,146.35|-20.46%|
|Ne profit|-848,458.96|-481,971.51|76.04%|
|Net cash flow arisingfrom operation activities|14,916.68|2,947,494.11|-99.49%|
|Net cash flow arisingfrom investment activities|-159,200.00|-573,234.00|-72.23%|
|Closing balance of cashand cash equivalent|6691402.14|17,568,928.80|-61.91%|

Section X. Documents available for reference
I. Text of Semi-annual report 2014 with the signature of corporate of the Company.
II. Financial statement with signature and seal of legal person, person in charge of accounting works and person in charge of accounting organ;
III. Text of the file and draft of the announcement under the name of the Company that released on website appointed by CSRC in reporting period.
IV. Other relevant files
The above said documents are prepared in the security department of the Company
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Chairman: Li Yuanbin
26 August 2014