StockCode:000613,200613 Short Form oftheStock:*STDonghai-A,*STDonghai-B海南大东海旅游中心股份有限公司
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Annual Report 2017
Disclosure Date: 1 February 2018
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 thereality,accuracyandcompletionof thewholecontents.
Li Yuanbin, Principal of the Company, Fu Zongren, person in charger of accounting works and Fu Zongren, person in charge of accounting organ (accounting principal) hereby confirm that theFinancial Report of 2017AnnualReport is authentic, accurateandcomplete.
All directors are attendingtheBoardMeetingfor Report deliberation.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of commonreserves either.
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise cautionof investmentrisks.
Content
SectionIImportant Notice,Contents andParaphrase..........................................................................2 SectionII CompanyProfile andMainFinnaical Indexes....................................................................4 SectionIII Summaryof CompanyBusiness........................................................................................8 SectionIVDiscussionandAnalysis of Operation...............................................................................9 SectionVImportant Events................................................................................................................18 SectionVIParticular about Changes insharesand shareholders.......................................................26 SectionVII Preferred Stock................................................................................................................31 SectionVIII Particulars about Directors,Supervisors,SeniorExecutives andEmployees...............32 SectionIX Corporate Governance.....................................................................................................36 SectionXCorporate Bond.................................................................................................................41 SectionXIFinancial Report...............................................................................................................42 SectionXII Documentsavailablefor reference...............................................................................110
Paraphrase
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|-|-|-|
|Items|Refersto|Contents|
|CSRC|Refersto|ChinaSecuritiesRegulationCommission|
|SSE|Refersto|ShenzhenStockExchange|
|CompanyLaw|Refersto|CompanyLawofThePeople’sRepublicofChina|
|SecuritiesLaw|Refersto|SecuritiesLawofThePeople’sRepublicofChina|
|RulesofListing|Refersto|RulesofShenzhenStockExchangefortheListingofStocks|
|CompanyortheCompany|Refersto|HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.|
|ArticleofAssociation|Refersto|ArticleofAssociationofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.|
|Shareholders’GeneralMeeting|Refersto|Shareholders’GeneralMeetingofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.|
|Board|Refersto|BoardofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.|
|SupervisoryCommittee|Refersto|SupervisoryCommitteeofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.|
|Luoniushan|Refersto|LuoniushanCo.,Ltd.|
|Yuan|Refersto|CNY/RMB|
|Inthereportingperiod,thereportingperiod|Refersto|1January2017to31December2017|

Section II Company Profile and Main Finnaical Indexes
I.Companyinformation
|||||
|-|-|-|-|
|Shortformofthestock|*STDonghai-A,*STDonghai-B|Stockcode|000613,200613|
|ShortformoftheStockafterchanged|N/A|||
|Stockexchangeforlisting|ShenzhenStockExchange|||
|NameoftheCompany(inChinese)|海南大东海旅游中心股份有限公司|||
|ShortformoftheCompany(inChinese)|大东海|||
|ForeignnameoftheCompany|HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.|||
|ForeignnameofshortformoftheCompany|DADONGHAI|||
|Legalrepresentative|LiYuanbin|||
|Registrationsadd.|DadonghaiSanya|||
|Codeforregistrationsadd|572021|||
|Officesadd.|DadonghaiSanya|||
|Codesforofficeadd.|572021|||
|Companywebsite|---|||
|Email|hnddhhn@21cn.com|||

II.Person/Waytocontact
||||
|-|-|-|
||SecretaryoftheBoard|Rep.ofsecurityaffairs|
|Name|WangHongjuan||
|Contactadd.|DadonghaiSanya||
|Tel.|0898-88219921||
|Fax.|0898-88214998||
|E-mail|hnddhhn@21cn.com||

III.Information disclosureandpreparation place
|||
|-|-|
|Newspaperappointedforinformationdisclosure|SecuritiesTimes,HongKongCommercialDaily|
|WebsiteforannualreportpublishappointedbyCSRC|http://www.cninfo.com.cn|
|Preparationplaceforannualreport|SecuritydepartmentoftheCompany|

IV.Registration changes oftheCompany
|||
|-|-|
|Organizationcode|Unifiedsocialcreditcode91460000201357188U|
|Changesofmainbusinesssincelisting|Nochanges|
|Previous changes for controllingshareholders|1.TheCompanylistedA-stockinJanuary1997,and96.327millionA-stocksharesareheld by Hainan Dadonghai Tourism Centre Group Co., ltd., a 26.46% in total sharecapitaloftheCompanyandisthefirstmajorityshareholderoftheCompanyalso.2.On25December1998,thesharesheldbyHainanDadonghaiTourismCentreGroupCo.,ltdweretransfertoSanyaABCthroughthecourtsofjustice,andafterobtainedtheshares in December 1998, Sanya ABC entrust wholly-owned subordinate enterpriseSanya Bank-Agriculture Industrial Development Corp. to hold the aforesaid shares,than the first majority shareholder of the Company comes to Sanya Bank-AgricultureIndustrialDevelopmentCorp.3.On12December2000,theaforesaidequitywasstrippedtonameofChinaGreatwallAssetsManagementCorporation,thefirstmajorityshareholderoftheCompany.4. On 19 September 2001, China Greatwall Assets Management Corporation enteredinto “Equity Transfer Agreement” with Haikou Food Co., Ltd for 60 million sharestransfer; and gained approval of [2002] No.: 430 from Ministry of Finance dated 18October 2002, than the first majority shareholder of the Company comes to HaikouFoodCo.,Ltd.5. On 24 April 2008, Haikou Agriculture & Industry & Trade Luoniushan Co., Ltd.enteredintothe“Statement”,confirmedthatthe60millionsharesheldbyHaikouFoodCo.,Ltd.wereunderthenameofHaikouAgriculture&Industry&TradeLuoniushanCo.,Ltd., theshares’ownership have beentransfer dated 29January2010.Therefore,Haikou Agriculture & Industry & Trade Luoniushan Co., Ltd. comes to the firstmajorityshareholderoftheCompany.|

V.Other relevant information
CPAengagedbytheCompany
|||
|-|-|
|NameofCPA|BDOCHINAShuLunPanCertifiedPublicAccountantsLLP|
|Officesadd.forCPA|4#Building,No.61,NanjingRd.(E),Shanghai|
|SigningAccountants|ZhuJianqing,LiuZebo|

SponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√Notapplicable
FinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√Notapplicable
VI.Main accountingdataandfinancial indexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
||||||
|-|-|-|-|-|
||2017|2016|Changesoverlastyear|2015|
|Operatingincome(RMB)|27,906,564.23|21,708,883.51|28.55%|15,885,922.90|
|Net profit attributable to shareholdersofthelistedcompany(RMB)|2,858,998.66|-2,661,052.49|207.44%|-7,477,866.40|
|Net profit attributable to shareholdersof the listed company after deductingnon-recurringgainsandlosses(RMB)|779,389.74|-4,072,689.97|119.14%|-9,474,005.29|
|Net cash flow arising from operatingactivities(RMB)|5,127,288.47|2,766,372.02|85.34%|-1,745,526.28|
|Basicearningspershare(RMB/Share)|0.0079|-0.0073|208.22%|-0.0205|
|Diluted earnings per share(RMB/Share)|0.0079|-0.0073|208.22%|-0.0205|
|ReturnonEquity|3.78%|-3.52%|207.39%|-9.27%|
||Endof2017|Endof2016|Changesoverendoflastyear|Endof2015|
|Totalassets(RMB)|87,466,661.80|105,444,153.63|-17.05%|104,887,596.60|
|Net assets attributable to shareholderoflistedcompany(RMB)|77,135,414.10|74,276,415.44|3.85%|76,937,467.93|

VII.Differenceoftheaccountingdataunder accountingrules inandoutofChina
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International AccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International AccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesor
ChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
VIII.Quarterlymain financialindex
InRMB
||||||
|-|-|-|-|-|
||Firstquarter|Secondquarter|Thirdquarter|Fourthquarter|
|Operatingincome|9,383,454.29|5,712,819.13|5,239,573.04|7,570,717.77|
|Net profit attributable to shareholders of the listedcompany|2,410,257.23|-691,003.43|-1,478,166.83|2,617,911.69|
|Net profit attributable to shareholders of the listedcompany after deducting non-recurring gains andlosses|2,410,257.23|-691,003.43|-1,478,166.83|538,302.77|
|Netcashflowarisingfromoperatingactivities|2,609,325.33|621,747.77|-917,735.98|2,813,951.35|

 Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancial indexoritstotalnumberandtherelevantfinancialindexdisclosedinthecompany’squarterlyreportandsemi-annualreport
□Yes√No
IX.Items andamounts ofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMB
||||||
|-|-|-|-|-|
|Item|2017|2016|2015|Note|
|Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)|-30,016.43|380,866.43|-90,560.75|Lossfromfixedassetsdisposal|
|Capitaloccupationfeeschargedbynonfinancialenterprisesrecordedinthecurrentprofitsandlosses|805,825.24|961,165.05|422,000.00|Netincomefromcreditors’investment|
|Other non-operating income and expenditure exceptfortheaforementioneditems|1,303,800.11|69,606.00|1,664,699.64|Debtwrittenofffromreceivablesandaccountpaidinadvance|
|Total|2,079,608.92|1,411,637.48|1,996,138.89|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingto the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their SecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
Inreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsof
extraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiesto
thePublic---ExtraordinaryProfit/loss.
Section III Summary of Company Business
I.Main businessesof thecompanyin thereportingperiod
Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry
No
Thecompany'smainbusinessishotelaccommodationandcateringservices.Procurementofgoodsismainlythegoodsandmaterials necessary for hotel and catering operations by taking the principle of low price and fine quality, some goods are purchased by directly signing purchase contracts with suppliers, and some good are purchased by procurement agents. The operation are mainly including the network billing and overseas travel agency team, and supplemented by the individual travelers of non-internet marketing and business and the tourists from travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in SanyaCity,HainanProvince,andithasbecomeamemberofthenationwidefamoushotelsbecauseoftheconvenienttransportation, beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- and low-grade hotels or guesthouses numerously emerge, resulting in the supply much larger than the market demand, the industry competition is rather fierce,andthepressureofdeclineinbusinessremains.
II.Major changes inmain assets
1.Majorchangesinmainassets
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|-|-|
|Majorassets|Noteofmajorchanges|
|Equityassets|Decreasedfortheirrevocableinvestmentsaslong-termun-paymentwrittenoff,whichhavebeenapprovedbytheBoardandshareholdersgeneralmeeting|
|Monetaryfunds|DecreasedforpayingthefinestoCSRC|
|Otherreceivables|Decreasedfortheirrevocablereceivableswrittenoff,whichhavebeenapprovedbytheBoardandshareholdersgeneralmeeting|
|Noncurrentassetsduewithinoneyear|IncreasedduetothedecorationandrenovationforC/Fandvillaandswimmingpool|
|Long-termdeferredexpenses|IncreasedduetothedecorationandrenovationforC/Fandvillaandswimmingpool|

 2.Mainoverseasassets
□Applicable√Notapplicable
III.Core Competitiveness Analysis
WhetherornottheCompanycomplieswithdisclosurerequirementofthespecialindustry
No
Thecompanytakeshotelaccommodationandcateringservicesastheprincipleworks,locatesatDadonghaibaywhichisoneofthe
China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has the maximum passenger flow volume in
SanyaCity,andisabouta5-minutedrivefromdowntownofSanyaCityandabouta30-munitedrivefromSanyaPhoenixAirport. Thehotelisonlytensofmetersdistantfromthesealevel,possessesbeautifullandscapingfullofbloomingflowersalltheyearround, andenjoysexceptionalgeography,naturalenvironmentaladvantages.Thehotelhasopenedformorethantwodecadeswhichisone oftheoldesthotelsinSanyaandhasreceivedmanydomesticandforeignheadsofstateandnationalleaders.Intherecentyears,thecompanyhascomprehensivelyupgradedandrebuiltthehotel’ssoftwareandhardwarefacilities,furtherimprovedthehotelsinternal and external business environment, and effectively enhanced the business competitiveness. Currently, the management of thecompany’shotelisstillinthefrontrankamonghotelsinthesamearea,withthesamescale,andatthesamelevel.
In the futurework, thecompany will keep tryingtoimprovethehotel’s internal andexternal business environment, strengthen the sales efforts and the staff construction, and further improve the operational capability. During the reporting period, the company's corecompetencehadnosignificantchange.
Section IV Discussion and Analysis of Operation
I.Introduction
During the reporting period, the company realized main business income of 27,906,600 Yuan, increased by 6,197,700 Yuan compared with the same period last year, an increase of28.55%; investment income of 805,800 Yuan, decreased by 585,100 Yuan compared with the same period last year, an decrease of42.70%; operating profit of 1,585,200 Yuan, increased by 4,267,000 Yuan compared with the same period last year, an increase of159.11%; net non-operating income of 1,273,800 Yuan, increased by 1,253,100 Yuan compared with the same period last year, an increase of6053.62%; net profit of 2,859,000 Yuan, increased by 5,520,100 Yuan comparedwiththesameperiodlastyear,anincreaseof207.44%.
During the reporting period, the Company focus on market-oriented and use marketing strategy in a flexible way to exploited the sales channel, meanwhile, strengthening enterprise culture construction as well as the employee team-building, making efforts to improveproduct’s quality, strictly controlling the cost management, perfect theCompany’s internal control system in order to reduce the risks and consumptionsfor more income earns and less expenditure costs, we completed the operation targets that formulated at beginning of the year basically. Main worksareas:
1.Market-oriented,usemarketingstrategyinaflexiblewaytoexploitethesaleschannel
During the reporting period, the Company actively expanded the network market, the Russian market and the southwest,north,eastandsouthernChinamarketsinadditiontofurtherconsolidatingits existingcustomerbases oriented by markets with flexible utilization of marketing strategies. Besides, increasing cooperation was made by the Company with domestic and foreign well-known travel agencies, sales network platforms and direct-sale travel agencies in the first and second tier cities. The Company also conducted implementation of sales incentives and sales mechanism involving every staff, to increase the market share in terms of sales. During the reporting period, the revenue of the Company from overseas sales, network sales, meeting teams and individual visitors from travel agencies increased significantly over the same period of last year. The revenue from itsmajoroperatingbusinesswasRMB27.9066million,representingayear-on-yearincreaseof28.55%ascompared totherevenueofRMB6.1977millionofpreviousyear.
2. People-oriented, strengthen the enterprise with high-quality,strive to improve product quality and enhance the competitive-nessofenterprises
In reporting period, in line with the Human-Oriented employment ideality, we continuously enriched the culture lifeforemployees,createaharmoniousworkingenvironmentandstrengthentheconstructionofenterpriseculture andstaff-building.Atthesametime,createnewmanagementmechanism,motivateandmobilizedtheenthusiasm, initiative and creativity of the staff. Based on the management ideal of “strengthen the enterprise with high-quality”, we constantly strengthen the hotel management and carried out skill training in pre-job for their
basic information and the after-job for business ability improvement. Enhance the service standards and consciousness, as well as the sense of responsibility and quality, effectively improved the service quality and managementstandards,andimprovingthequalityofthehotelandcomprehensivecompetitiveness.
3. Strictly curb the costs and budget management, improve internal control mechanism, reducing risks and consumptions, increase revenue and reduce expenditures, safety in production to maximize the interest of the enterprise
During the reporting period, the Company continued to focus on financial management, improve the procurement management system, strengthen management of procurement cost control and budget management, adopt diversified means to obtain procurement price inquiry, such as network price inquiry, the hotel industry price inquiry and other measures, obtain cost inquiry from over three suppliers to select the best one, control operating costs in a scientific manner, strictly control various expense and expenditures, frequent inspection and repair to preventwaste of resources, which enabledthe Company to effectively improve the reasonablenessofprocurement cost and cost effectiveness. Besides, human resources cost was effectively brought down due to optimized organ establishmentand personneldistribution.Atthesame time,theCompanycontinued toimprove theinternalcontrol system, strengthen regulation and implementation of internal control system, strengthen the effective implementationof internalcontrolwork, reducerisksandconsumption,increaserevenueandcontrolexpenditures, emphasize production safety and improve operationalefficiency,to ensure the operation safety and thus maximize theinterestsoftheCompanyasawhole.
In 2018, the Company continueto consolidate and expand saleschannels, improve thehotel’s quality and service standards, and enhance the comprehensive competitiveness, to laying out a solid foundation for sustained, stable andhealthydevelopmentoftheCompany.
II.Mainbusiness analysis
1.Introduction
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|-|-|-|-|
|See|the|“|I-|

2.Revenueandcost
(1)Constituteofoperationrevenue
InRMB
|||||||
|-|-|-|-|-|-|
||2017||2016||Increase/decreasey-o-y|
||Amount|Ratioinoperationrevenue|Amount|Ratioinoperationrevenue||
|Total of operationrevenue|27,906,564.23|100%|21,708,883.51|100%|28.55%|
|Accordingtoindustries||||||

|||||||
|-|-|-|-|-|-|
|Tourismcateringservice|24,691,592.86|88.48%|19,117,791.52|88.06%|29.15%|
|Otherbusiness|3,214,971.37|11.52%|2,591,091.99|11.94%|24.08%|
|Accordingtoproducts||||||
|Roomrevenue|21,103,123.09|75.62%|16,914,028.50|77.91%|24.77%|
|Cateringentertainmentrevenue|3,588,469.77|12.86%|2,203,763.02|10.15%|62.83%|
|Otherbusiness|3,214,971.37|11.52%|2,591,091.99|11.94%|24.08%|
|Accordingtoregion||||||
|Hainanarea|27,906,564.23|100.00%|21,708,883.51|100.00%|28.55%|

 (2) About the industries, products, or regions accounting for over10% of thecompany’s operating income oroperatingprofit
√Applicable□Notapplicable
WhetherornottheCompanycomplieswithdisclosurerequirementofthespecialindustry
No
InRMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Operatingrevenue|Operatingcost|Grossprofitratio|Increase/decreaseofoperatingrevenuey-o-y|Increase/decreaseofoperatingcosty-o-y|Increase/decreaseofgrossprofitratioy-o-y|
|Accordingtoindustries||||||||
|Tourismcateringservice||24,691,592.86|10,665,396.03|56.81%|29.16%|10.02%|15.24%|
|Otherbusiness||3,214,971.37|474,523.56|85.24%|24.08%|-15.93%|8.98%|
|Accordingtoproducts||||||||
|Roomrevenue||21,103,123.09|8,758,364.38|58.50%|24.77%|2.30%|18.46%|
|Cateringentertainmentrevenue||3,588,469.77|1,907,031.65|46.86%|62.83%|68.37%|-3.60%|
|Otherbusiness||3,214,971.37|474,523.56|85.24%|24.08%|-15.93%|8.98%|
|Accordingtoregion||||||||
|Hainanarea|27,906,564.23||11,139,919.59|60.08%|28.55%|8.59%|13.91%|

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latestoneyear’sscopeofperiod-end
□Applicable√Notapplicable
(3)Incomefromphysicalsaleslargerthanincomefromlabors
□Yes√No
(4)Fulfillmentofthecompany’ssignedsignificantsalescontractsuptothisreportingperiod
□Applicable√Notapplicable
(5)Constituteofoperationcost
Industryclassification
Industryclassification
InRMB
||||||||
|-|-|-|-|-|-|-|
|Industries|Item|2017||2016||Increase/decreasey-o-y|
|||Amount|Ratioinoperationcost|Amount|Ratioinoperationcost||
|Tourismcateringservice|Rawmaterial|1,907,031.65|17.12%|1,132,620.87|11.04%|68.37%|
|Tourismcateringservice|Salarywelfare|1,891,709.80|16.98%|1,526,437.63|14.88%|23.93%|
|Tourismcateringservice|Waterandelectricity|1,564,778.83|14.05%|2,909,128.71|28.36%|-46.21%|
|Tourismcateringservice|Depreciation|2,009,886.94|18.04%|2,271,348.02|22.14%|-11.51%|
|Tourismcateringservice|Repaircost|964,425.22|8.66%|713,218.96|6.95%|35.22%|
|Tourismcateringservice|KnittedandCottonGoods|170,130.34|1.53%|2,640.00|0.03%|6,344.33%|
|Tourismcateringservice|Washingfee|594,068.64|5.33%|471,750.30|4.60%|25.93%|
|Tourismcateringservice|Totalcost|10,665,396.03|95.74%|9,693,974.20|94.50%|10.02%|

Note
1.Rawmaterialincreasedmainlyduetothegrowthofcateringentertainmentincome;
2.Salarywelfareincreasedmainlybecausebusinessfromguestroomsgrowthandthebonusforemoloyeesincreased;
3.WaterandelectricitydecreasedmainybecausetheelectricityfeeforprevisouyearsareunderstatedbySanyaPowerSupply Bureau;
4.Reparicostsincreasedmainlyduetotheredecorationandrenovationinthehotelduringperiod;
5.KnittedandCottonGoodsdecreasedmainlybecausewechangedthecottonandknittedgoodsfortheguestrooms;
5.KnittedandCottonGoodsdeclinedmainlybecausewechangethehotellinenforguestroominPeriod;
6.Washingfeeincreasedmainlyduetothegrowthofbusiness.
(6)WhetherthechangesinthescopeofconsolidationinReportingPeriod
□Yes√No
(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinReportingPeriod□Applicable√Notapplicable
(8)Majorsalesandmainsuppliers
MajorsalesclientoftheCompany
|||
|-|-|
|Totaltopfiveclientsinsales(RMB)|15,423,782.42|
|Proportionintotalannualsalesvolumefortopfiveclients|55.27%|
|Ratioofrelatedpartiesinannualtotalsalesamongthetopfiveclients|0.00%|

InformationoftopfiveclientsoftheCompany
|||||
|-|-|-|-|
|Serial|Name|Sales(RMB)|Proportionintotalannualsales|
|1|SanyaYouyiInternationalTravelAgencyCo.,Ltd.|4,913,440.00|17.61%|
|2|SanyaHaolideInternationalTravelServiceCo.,Ltd.|4,157,223.00|14.90%|
|3|ShanghaiHechengInternationalTravelServiceCo.,Ltd.|2,598,649.42|9.31%|
|4|ANEXTOUR|2,184,663.00|7.83%|
|5|ShenzhenChoiFuTongTechnologyCo.,Ltd|1,569,807.00|5.63%|
|Total|--|15,423,782.42|55.27%|

 Othersituationofmainclients
□Applicable√Notapplicable
MainsuppliersoftheCompany
|||
|-|-|
|Totalpurchaseamountfromtopfivesuppliers(RMB)|6,742,744.65|
|Proportionintotalannualpurchaseamountfortopfivesuppliers|76.20%|
|Ratioofrelatedpartiesinannualtotalsalesamongthetopfivesuppliers|0.00%|

InformationoftopfivesuppliersoftheCompany
|||||
|-|-|-|-|
|Serial|Name|Sales(RMB)|Proportionintotalannualsales|
|1|SanyaYunfangFoodDistributionCo.,Ltd.|2,842,833.72|32.13%|
|2|SanyaPowerSupplyBureauofHainanPowerGrid|2,273,594.35|25.70%|

|||||
|-|-|-|-|
|3|SanyaZhengzhuangIndustrialCo.,Ltd.|635,943.55|7.19%|
|4|SinofrenchWaterSupplyCo.,Ltd.|602,845.23|6.81%|
|5|SanyaChangfengMarineGasSupplyandGasSupplyCo.,Ltd.|387,527.80|4.38%|
|Total|--|6,742,744.65|76.20%|

 OthernotesofmainsuppliersoftheCompany
□Applicable√Notapplicable
3.Expenses
InRMB
||||||
|-|-|-|-|-|
||2017|2016|Increase/decreasey-o-y|Noteofmajorchanges|
|Salesexpense|5,124,503.55|4,931,333.26|3.92%|Salesbusinessincreased,thustheexpensesincreasedcorrespondingly|
|Managementexpense|9,665,525.83|9,374,635.91|3.10%|Thesalaryexpensesincreased|
|Financialexpense|-249,176.18|-193,645.29|28.68%|Handlingchargefromthebankdecreasedandinterestincomefromsavingsincreased|

4.R&Dexpenses
□Applicable√Notapplicable
5.Cashflow
InRMB
|||||
|-|-|-|-|
|Item|2017|2016|Y-o-ychanges|
|Subtotalofcashin-flowfromoperationactivity|30,557,863.93|23,114,982.69|32.20%|
|Subtotalofcashout-flowfromoperationactivity|25,430,575.46|20,348,610.67|24.97%|
|Netcashflowfromoperationactivity|5,127,288.47|2,766,372.02|85.34%|
|Subtotalofcashin-flowfrominvestmentactivity|9,840,550.00|14,920,000.00|-34.04%|
|Subtotalofcashout-flowfrominvestmentactivity|32,496,479.32|10,258,516.27|216.78%|
|Netcashflowfrominvestmentactivity|-22,655,929.32|4,661,483.73|-586.02%|
|Subtotalofcashin-flowfromfinancingactivity|19,810,000.00|||
|Subtotalofcashout-flowfromfinancingactivity|19,810,000.00|||
|Netincreasedamountofcashandcashequivalent|-17,528,640.85|7,427,855.75|-335.99%|

Mainreasonsfory-o-ymajorchangesinaspectofrelevantdata
√Applicable□Notapplicable
1. Cash in-flow from operating activities increased32.20% from a year earlier, mainly because revenue from operation increased dramaticallyandsalesreturnincreasedcorrespondingly;
2.Cashout-flowfromoperatingactivitiesincreased24.97%fromayearearlier,mainlybecausesalesvolumeincreaseddramatically, andpurchasingbusinessandsalaryexpensesincreasedaswellasthefindforCSRCarepaidintheperiod;
3.Net cashflow fromoperatingactivity increased85.34%fromayearearlier,mainlybecausecashin-flowover theout-flowfrom operatingactivitiesintheperiod;
4.Cashin-flowfrominvestmentactivitydecreased34.04%fromayearearlier,mainlybecauseequityofSanyaXiangyuE-Business arepaidwithrevenueearnslastyear;
5. Cash out-flow from investment activity increased216.78% from a year earlier, mainly because fine for CSRC are paid in the period;
6. Net cash flow from investment activity decreased586.02% from a year earlier, mainly because paying the fine to CSRC in the periodandreceivedrevenuefromequitytransferinfirsthalfyearof2017;
7.Netincreasedamountofcashandcashequivalentdecreased335.99%fromayearearlier,mainlybecausepayingthefinetoCSRC intheperiod.
ReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany
□Applicable√Notapplicable
III.Analysisofthenon-main business
√Applicable□Notapplicable
InRMB
||||||
|-|-|-|-|-|
||Amount|Ratiointotalprofit|Note|Whetherbesustainable|
|Investmentincome|805,825.24|28.19%|Incomefromdebtinvestment|Haveacertainsustainability|
|Assetimpairment|11,709.50|0.41%|Assetsimpairmentlossesfromprovisionforbaddebts|Un-sustainability|
|Non-operatingincome|1,303,800.11|45.60%|Theaccountpayablewithlong-termcreditinbookarewrittenoff|Un-sustainability|

IV.Assets andliability
1.Majorchangesofassetscomposition
InRMB
||||||||
|-|-|-|-|-|-|-|
||Endof2017||Endof2016||Ratiochanges|Notesofmajorchanges|
||Amount|Ratiointotalassets|Amount|Ratiointotalassets|||
|Monetaryfund|9,681,607.16|11.07%|27,210,248.01|25.81%|-14.74%|PayingthefinetoCSRC|

||||||||
|-|-|-|-|-|-|-|
|Accountreceivable|594,130.89|0.68%|690,444.72|0.65%|0.03%|Innormalchanges|
|Inventory|227,005.11|0.26%|219,179.72|0.21%|0.05%|Innormalchanges|
|Investmentrealestate|8,859,003.99|10.13%|9,333,527.55|8.85%|1.28%|Innormalchanges|
|Fixassets|39,088,708.83|44.69%|40,395,680.91|38.31%|6.38%|Innormalchanges|

 2.Assetsandliabilitymeasuredbyfairvalue
□Applicable√Notapplicable
3.Assetsrightrestrictiontillendofreportingperiod
Nil
V.Investment
1.Overallsituation
√Applicable□Notapplicable
||||
|-|-|-|
|Investmentinthereporting(RMB)|Investmentinthesameperiodoflastyear(RMB)|Changes|
|9,000,000.00|9,000,000.00|0.00%|

 2.Themajorequityinvestmentobtainedinthereportingperiod
□Applicable√Notapplicable
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√Notapplicable
Thecompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√Notapplicable
TheCompanyhasnoderivativesinvestmentinthereportingperiod.
5.Applicationofraisedproceeds
□Applicable√Notapplicable
TheCompanyhasnoapplicationofraisedproceedsinthereportingperiod.
VI.Sales ofmajor assetsand equity
1.Salesofmajorassets
□Applicable√Notapplicable
TheCompanyhadnosalesofmajorassetsinthereportingperiod.
2.Salesofmajorequity
□Applicable√Notapplicable
VII.Analysisofmain holdingcompany andstock-jointlycompanies
□Applicable√Notapplicable
TheCompanyhadnoinformationofmainholdingcompanyandstock-jointlycompaniesdisclosedinthereportingperiod.
VIII.Structured vehicle controlled bytheCompany
□Applicable√Notapplicable
IX.Future DevelopmentProspects
1.IndustrialdevelopmenttrendandcompetitionfacingtheCompany
Sanya is the only tropical seaside city in China with a world-leading eco-environment, and has a wonderful air quality that can be numbered in China, it owns an abound marine resources with unique resource advantage. Sanya has a geographical position advantage and under the help of preferential policy of duty-free for the internationalization of tourism island, with the improvement ofpeople’s life quality in recent years, and enhancement of tourism consumption consciousness while haze air environment outside the island, the tourism market prospects has a good trend in Hainan. However, in reporting period, the whole world has a slump in economic resurgence, the tourism market lack of vitality, and the supply far greater than the demand while home inn hotelrapidly expanding blindly,the market competition comes more and more intensify.In addition, with the soaring operation costs and expenditures for the salary of hospitality industry in Sanya and shrinking operation profit,thehotelindustryfacedadownwardpressureonoperation.
In the future work, the company will continue to strengthen the updating and transformation of thehotel’s equipmentandfacilities,improveandupgradethehardwareandsoftwareequipmentsandfacilitiesandthequality of internal and external business environment, enhance the construction of enterprise culture and staff teams,
improve service level and service quality, actively expand the sales channels, make full use of the internet platform,expandthesalesnetwork,increasethemarketshare,andfurtherimprovethemanagementlevelandcore competitiveness.
2.Futuredevelopmentplansandoperationplanforyearof2018
(1) Market-oriented, continues to improve the quality management of the software equipment and facilities in the Hotel, enhancing the hotel brand image, expanding market channel, and center with enterprises performance, makingthebrandmorebiggerandstrongerdrovedbypioneerandinvent.
(2) Continue to expand financing channels, enrich the industrial construction, widen the company size, increased moreprofitpointsinordertostrengthenthesustainability,stableandhealthilyoftheoperation.
(3)Continuetostrengthenthestandardmanagementofinternalcontrol,perfectthecorporategovernancestructure, standardizethemanagementandoperation,andeffectivelycontroltherisks.
3.FunddemandsanduseplanrequiredforthefuturedevelopmentoftheCompany
The Company utilizes owned funds or financing methods to raise the funds demanded for development, and completesthedevelopmentplanningoftheCompany.
4. The risks may cause adverse effects on the future development strategy and realization of operation target of theCompany
(1)MarcoPolicyrisks
In order to normalize and optimize tourism market or further to promote clear-party construction, related departments may further issue some relative policies. While these polices may cause restrain and effect on regionaltourismdevelopment.Mainbusinessincomemaybeaffectedsinceweareengagedintourismservice. Countermeasures: The Company will further to improve the hard and soft equipments and facilities of the hotel while expanding the business scope, and win more market shares via high-class service and comfortable environmentsoastoensurethemainbusinessincomelevel.
(2)Naturaldisasterrisks
In recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, where hashigh incidenceof disastrousweatherin summer.If Sanya becomesthe landingplaceof typhoon,itmaycausegreatdamagestothefacilitiesoftheCompanyandaffecttheCompany’snormaloperation.
Countermeasures: The Company will strengthen the construction and maintenance for infrastructure, continue to buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting naturaldisasters.
(3)RisksofHR
Demand for talent in aspect of hotel sales and management are increasingly due to the constantly rise of hotel industry, flow of hotel talented people comes more widespread and more frequent, we may face the risks of developmentrestrainedfrombraindrain.
Countermeasure: we will continue to improved the talent introduction, training system, incentive mechanism, remunerationand welfare as well as insurance mechanism, strive to attract talent, cultivate them and retain them. Meanwhile, strengthen staff quality and skills as well as the management ability, further putting more efforts in
enterprise culture construction, enhance the cohesion in the Company, and guarantee a stable of the core managementandskilltechnicians.
(4)Operationalrisksofmainbusiness
With the ceaseless development of global tourist industry constantly and ceaseless rising of high-class, middle-class and low-class hotels, the tourist sources keep shunting, and the competition of tourism service industryinSanyabecomesincreasinglyfierce.WhilethemainbusinessoftheCompanyisjustasmall-scalehotel, as the main business is single and the business scope is limited, the tourist market conditions and tourist quantity directlymakesignificantaffectsonthecompanyperformance.
Countermeasure:madeascientificmanagementanddecision-makingprocedures,strengthentheawarenessofrisk prevention, building and improving relevant mechanism and regulized the management in the Company. Furthermore, increase the sales ability,on baseof the former sales network, continuesto exploit foreign high-end tourism market under the superior geographical location and environment for improving the occupancy rate. Besides, continues to exploit financing channel, expanding operation projects, enrich the industrial structure for increasingtheprofitincreasingpoint.
X.Reception ofresearch,communicationand interview
1.Inthereportperiod,receptionofresearch,communicationandinterview
√Applicable□Notapplicable
||||||
|-|-|-|-|-|
|Time|Way|Type||Basicsituationindexofinvestigation|
|2017-10-17|Telephonecommunication|Individual||InvestorMr./Ms/HuangfromShenzhenaskaboutthecommitmentfrommajorityshareholders,nomaterialprovided|
|2017-10-21|Telephonecommunication|Individual||InvestorMr./Ms/ZhangfromBeijingaskabouttheoperationassetsand3Qperformance,noanymaterialprovided|
|2017-11-08|Telephonecommunication|Individual||InvestorMr./Ms/WangfromShanghaiaskaboutthecommitmentfrommajorityshareholders,nomaterialprovided|
|2017-11-28|Telephonecommunication|Individual||InvestorMr./Ms/LifromBeijingaskaboutthelistingofstaffshares,noanymaterialprovided|
|2017-12-15|Telephonecommunication|Individual||InvestorMr./Ms/LufromHebeiaskabouttheperformanceof2017,noanymaterialprovided|
|Reception(times)|||27||
|Numberofhospitality|||0||
|Numberofindividualreception|||27||
|Numberofotherreception|||0||
|Disclosed,releasedorletoutmajor undisclosedinformation|||No||

Section V. Important Events
I.Profitdistributionplanof common stock and capitalizingofcommon reserves plan
Formulation, Implementation andAdjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during theReportingPeriod
□Applicable√Notapplicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years (includingthereportingperiod)
|||
|-|-|
|According|to|

 years(includingthereportingperiod)wasusedtomake upthelossesinthepreviousyear;theundistributedprofit during this reporting remained a minus. The Company did not take profit allocation nor capitalization of capital reserveduringthereportingperiod.
Cashdividendofcommonstockinlatestthreeyears(includingthereportingperiod)
InRMB
|||||||
|-|-|-|-|-|-|
|Yearforbonusshares|Amountforcashbonus(taxincluded)|Netprofitattributabletocommonstockshareholdersoflistedcompanyinconsolidationstatementforbonusyear|Ratioinnetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement|Amountforcashbonusbyotherways|Proportionforcashbonusbyotherways|
|2017|0.00|2,858,998.66|0.00%|0.00|0.00%|
|2016|0.00|-2,661,052.49|0.00%|0.00|0.00%|
|2015|0.00|-7,477,866.40|0.00%|0.00|0.00%|

 TheCompanygainsprofitsinreportingperiodandtheretainedprofitofcommonstockshareholdersprovidedbyparentcompanyis positivebutnoplanofcashdividendproposedofcommonstock
□Applicable√Notapplicable
II.Profitdistributionplanandcapitalizingofcommon reserves plan forthe Period
□Applicable√Notapplicable
TheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapital reserveeitherfor theyear.
III.Implementation ofcommitment
1. Commitments completed in Period and those without completed till end of the Period from actual controller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
||||||||
|-|-|-|-|-|-|-|
|Commitments|Promise|Typeofcommitments|Contentofcommitments|Commitmentdate|Commitmentterm|Implementation|
|CommitmentsforShareMergerReform|LuoniushanCo.,Ltd|CommitmentsforShareMergerReform|On May 30, 2007, Luoniushan Co., Ltd.made commitments in the Company’s"Instructions for reform of non-tradableshares" (Revision) and "Instructions forreform of non-tradable shares" (Abstractof revision) that in view of DadonghaiCompany’slossesinsuccessiveyearsandon the verge of delisting, in order toreverse the company's businessdifficulties, improve profitability andrecover thecontinuousbusinesscapacity,Luoniushan Co., Ltd., the controllingshareholder of Dadonghai Companymade commitments to actively seekrestructuring parties to reorganize theassets of Dadonghai Company at theappropriatetime.|2017-06-27|6months|Theoriginalplansofmaterialassetsreorganizationwasterminated|
|Commitments in report ofacquisitionorequitychange|||||||
|Commitments in assetsreorganization|||||||
|Commitments make in initialpublicofferingorre-financing|||||||
|Equityincentivecommitment|||||||
|Othercommitmentsformediumandsmallshareholders|||||||
|Completedontime(Y/N)|No||||||
|Ifthecommitmentsisnotfulfilledontime,shallexplainthespecifyreasonandthenextworkplan|The Company's stock commenced suspension of trading from the opening session on 15February2017asitplannedtofulfillitscommitments.On13August2017,12proposalsrelatingto Material Asset Acquisition and Connected Transaction Report (Plan) of Hainan DadonghaiTourismCentre(Holdings)Co.,Ltd.weredeniedatthe11thextraordinarygeneralmeetingofthe||||||

||
|-|
|8thsessionofboardofdirectorsoftheCompany.On15August2017,theCompanyannouncedtoterminate thisrestructuringrelatingtomaterial assetsacquisition, andthestockoftheCompanycommenced trading since 17August 2017. up to date, there is no information which should bedisclosedbytheCompanyandwhichisnotdisclosedyet.|

2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in forecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
IV.Non-operational fundoccupation fromcontrollingshareholders and its related party□Applicable√Notapplicable
Nonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (ifapplicable)for“QualifiedOpinion”that issuedbyCPA
□Applicable√Notapplicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with thefinancialreportof lastyear
√Applicable□Notapplicable
1.Changeofaccountingpolicy
According to the Notice from the Ministry of Finance on Issuing and Amending the "Enterprise Accounting
Standards No. 16 - Government Subsidy”(CK[2017]15), any enterprise applying Enterprise Accounting
Standardsisrequiredtoimplementthenoticesince12June2017,andfutureapplicablemethodshallbeadopted
with respect to the government subsidies existed on 1 January 2017. Any enterprise applying Enterprise
Accounting Standards is required to implement the "Enterprise Accounting Standards No. 42 - Non-current
Assets Held for Sale, Disposal Group and Discontinuing Operation” issued in 2017 since 28 May 2017, and
futureapplicablemethodshallbeadoptedwithrespecttothenon-currentassetsheldforsale,disposalgroupand
discontinuingoperationexistedasofthedateofimplementation.On25December2017,theMinistryofFinance
issuedtheNoticeonAmendingtheGeneralFormattingofEnterpriseFinancialStatement(CK[2017]30)tomake
amendment to the general formatting of financial statements, which was applicable to the financial statements
preparedfor2017andotherfutureaccountingperiods.
Theabovechangesinaccountingpolicieshavenoeffectontheamountreportedinthefinancialstatementsofthe
Company.
2.Changeofaccountingestimates
Majoraccountingestimateshavenochangesinthereportingperiod.
VII.Major accountingerrorswithin reportingperiod thatneeds retrospectiverestatement□Applicable√Notapplicable
NomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod.
VIII. Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
□Applicable√Notapplicable
Nochangesinconsolidationstatement’sscopefortheCompanyintheperiod.
IX.Appointment andnon-reappointment (dismissal) ofCPA
Accountingfirmappointed
|||
|-|-|
|Nameofdomesticaccountingfirm|BDOCHINAShuLunPanCertifiedPublicAccountantsLLP|
|Remuneration for domestic accounting firm (in 10 thousandYuan)|39|
|Continuouslifeofauditingservicefordomesticaccountingfirm|7|
|NameofdomesticCPA|ZhuJianqing,LiuZebo|

Re-appointedaccountingfirmsinthisperiod
□Yes√No
Appointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor
√Applicable□Notapplicable
On 29 March 2017, the Company holding the 12th meeting of 8th session of the Board, and decided to appointed BDO CHINA Shu Lun Pan Certified PublicAccountants LLP as the auditing institute of the internal control for year of 2017 and the decision has been deliberated and approved in general meeting of 2017. During the period, auditingfee80,000Yuanintotalhasbeenpaidtotheinstituteforinternalcontrolauditing.
X.Particular aboutsuspended anddelistingafter annual report disclosed
□Applicable√Notapplicable
XI.Bankruptcyreorganization
□Applicable√Notapplicable
NobankruptcyreorganizationfortheCompanyinreportingperiod
XII.Significantlawsuitsand arbitrations ofthe Company
□Applicable √Notapplicable
Nosignificantlawsuitsandarbitrationsoccurredinthereportingperiod
XIII.Penaltyandrectification
□Applicable√Notapplicable
NopenaltyandrectificationfortheCompanyinreportingperiod.
XIV.Integrity ofthe companyand its controllingshareholders andactual controllers
□Applicable√Notapplicable
XV. Implementation of thecompany’s stock incentive plan, employee stock ownership plan or other employee incentives
□Applicable√Notapplicable
Duringthereportingperiod,thecompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentives thathavenotbeenimplemented.
XVI.Major related transaction
1.Relatedtransactionwithroutineoperationconcerned
√Applicable□Notapplicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparty|Relationship|Typeofrelatedtransaction|Contentofrelatedtransaction|Pricingprinciple|Relatedtransactionprice|Relatedtransactionamount(in10thousandYuan)|Proportioninsimilartransactions|Tradinglimitapproved(in10thousandYuan)|Whetherovertheapprovedlimitedornot(Y/N)|Clearingformforrelatedtransaction|Availablesimilarmarketprice|Dateofdisclosure|Indexofdisclosure|
|LuoniushanCo.,Ltd.|Firstmajorityshareholder|Consumption|Accommodation|Marketprice|Marketprice|78.75|2.82%|0|Yes|Sameasthetransactionwithnon-relatedparty|Sameasthetransactionwithnon-relatedparty|||
|Total||||--|--|78.75|--|0|--|--|--|--|--|
|Detailofsalesreturnwithmajoramountinvolved||||N/A||||||||||
|Reporttheactual implementation ofthe daily related transactions whichwere projected about their total||||N/A||||||||||

|||
|-|-|
|amount by types during thereportingperiod||
|Reasonsformajordifferencesbetweentradingpriceandmarketreferenceprice|N/A|

2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√Notapplicable
NorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod
3.Relatedtransactionsofmutualinvestmentoutside
□Applicable√Notapplicable
NomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod
4.Contactofrelatedcreditanddebt
√Applicable□Notapplicable
Therearenon-operationalcontactofrelatedcreditanddebtsintheCompany
√Yes□No
Relatedpartyclaimsreceivable
Nil
Debtpayabletorelatedparties
||||||||||
|-|-|-|-|-|-|-|-|-|
|Relatedparty|Relatedrelationship|Resultedreason|Balanceofperiod-begin(in10thousandYuan)|ThenewlyaddedamountinPeriod(in10thousandYuan)|TheamountofrecoveryinPeriod(in10thousandYuan)|Interestrate|Currentinterest(in10thousandYuan)|Balanceatperiod-end(in10thousandYuan)|
|LuoniushanGroupCo.,Ltd.|Relatedparty|Capitalexchange|0|1,981|1,981|||0|
|InfluenceonoperationresultandfinancialstatueoftheCompanyfromrelateddebts||N/A|||||||

5.Othersignificantrelatedtransactions
□Applicable√Notapplicable
Thecompanyhadnoothersignificantrelatedtransactionsinreportingperiod.
XVII.Significantcontract andimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√Notapplicable
NotrusteeshipfortheCompanyinreportingperiod
(2)Contract
□Applicable√Notapplicable
NocontractfortheCompanyinreportingperiod
(3)Leasing
√Applicable□Notapplicable
Noteofleasing
|||||
|-|-|-|-|
|Item|Tenant|Leaselife|Termoflease|
|B/FoftheHotel|MaMing(HainanHangpaiFoodCo.,Ltd.)|5years|2016-01-01to2020-12-31|
|Shoppingmall–B/F|XuJipeng|3years|2016-11-15to2019-11-14|
|A/Fgroundfloor|ChenJunwei|3years|2016-03-01to2019-02-28|
|Seasidestallandwoodhouse|SanyaLedaFoodManagementCo.,Ltd.|5years|2018-01-01to2022-12-31|
|Seasidelockerroom|ZhongZhengao|3years|2016-12-01to2019-11-30|
|Multi-functional meetingroom|SanyaHaolideInternationalTravelAgencyCo.,Ltd.|5years|2017-10-01to2022-09-30|

Gains/lossestotheCompanyfromprojectsthatreachedover10%intotalprofitoftheCompanyinreportingperiod
√Applicable□Notapplicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Nameoflessor|Nameoftheleasingparty|Leasingassets|Leasingassetsinvolvedintheamount(in10thousandYuan)|Leasestartdate|Leaseterminationdate|Leasingincome(in10thousandYuan)|Basisfordeterminingtheleasingincome|Theimpactofleasingincomeonthecompany|Whetherberelatedtransactions|Associationrelation|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|TheCompany|MaMing(HainanHangpaiFoodCo.,Ltd.)|B/Frestaurantinfirstfloor|1,886|2016-01-01|2020-12-31|75.6|Contract|Increaseincome|No|N/A|
|TheCompany|SanyaLedaFoodManagementCo.,Ltd.|Seasidestallandwoodhouse|653|2018-01-01|2022-12-31|145|Contract|Increaseincome|No|N/A|
|TheCompany|ZhongZhengao|Seasidelockerroom|10|2016-12-01|2019-11-30|36|Contract|Increaseincome|No|N/A|
|TheCompany|SanyaHaolideInternationalTravelAgencyCo.,Ltd.|Multi-functionalmeetingroom|190|2017-10-01|2022-09-30|30|Contract|Increaseincome|No|N/A|

2.MajorGuarantee
□Applicable√Notapplicable
TheCompanyhadnoguaranteeinthereportingperiod.
3.Entrustotherstocashassetmanagement
(1)Trustfinancing
□Applicable√Notapplicable
TheCompanyhadnotrustfinancinginthereportingperiod.
(2)Entrustedloans
□Applicable√Notapplicable
Thecompanyhadnoentrustedloansinthereportingperiod.
4.Othermaterialcontracts
□Applicable√Notapplicable
NoothermaterialcontractsfortheCompanyinreportingperiod
XVIII.Social responsibility
1.Socialresponsibilities
Nil
2.Executionofsocialresponsibilityoftargetedpovertyalleviation
(1)Precisionpovertyalleviationprogram
(2)Annualprecisionpovertyalleviation
(3)Accuracyofpovertyalleviation
(4)Follow-uptargetedpovertyalleviationplans
Nil
3.Environmentalprotection
ListedcompanyanditssubsidiarybelongstothekeypollutionenterpriselistedbyDepartmentofEnvironmentalProtection No
Nil
XIX.Explanationon other significantevents
√Applicable□Notapplicable
1. On 8 March 2001, the Company received a written decision of administrative penalty ZJFZi[2001] No.3 “Penalty Decision on HainanDadonghaiTourismCenter(Holdings)Co.,Ltd.inViolationofSecuritiesLawsandRegulations”fromCSRCforfalseprofit andrule-violation.Penaltyincludingconfiscatetheirillegalincomeof19.31millionYuanandimposeafineof0.5millionYuan.On 20February2017,theCompanypaidthepenaltyinfulltoCSRC.
2. TheLawyer’s Letter received by the Company: by preliminary accounting from Sanya Power Bureau, the 10313373 KwhelectricitywasunderstatedunderthenameofSouthChinaHotelfromJuly2006toApril2016.Foundmorein“NoticeofLawyer’s LetterreceivedbyHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.” (NoticeNo.:2016-016)releasedonSecuritiesTimes, HongKongCommercial DailyandJuchaoWebsitedated31May2016.TheCompanyiscommunicated andnegotiateswithSanya PowerBureauintheabovementionedeventwithoutnegotiationresultssofar.
XX.Significantevent ofsubsidiaryofthe Company
□Applicable√Notapplicable
Section VI. Particulars about Changes in Shares and Shareholders I.Changesin ShareCapital
1.ChangesinShareCapital
In Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||BeforetheChange||Increase/DecreaseintheChange(+,-)|||||AftertheChange||
||Amount|Proportion|Newsharesissued|Bonusshares|Capitalizationofpublicreserve|Others|Subtotal|Amount|Proportion|
|I.Restrictedshares|10,455,687|2.87%||||-1,287|-1,287|10,454,400|2.87%|
|1. State-ownedshares||||||||||
|2. State-owned corporateshares|2,369,400|0.65%||||-46,200|-46,200|2,323,200|0.64%|
|3.Otherdomesticshares|8,086,287|2.22%||||44,913|44,913|8,131,200|2.23%|
|Including:Domesticlegalpersonshares|7,953,000|2.18%||||-132,000|-132,000|7,821,000|2.15%|
|Domesticnaturalpersonshares|133,287|0.04%||||176,913|176,913|310,200|0.09%|
|II.Unrestrictedshares|353,644,313|97.13%||||1,287|1,287|353,645,600|97.13%|
|1.RMBcommonshares|265,644,313|72.96%||||1,287|1,287|265,645,600|72.96%|
|2.Domestically listedforeignshares|88,000,000|24.17%||||0|0|88,000,000|24.17%|
|III.Totalshares|364,100,000|100.00%||||0|0|364,100,000|100.00%|

Reasonsforsharechanged
√Applicable□Notapplicable
And during the follow-up process of non-tradableshares reform, relevantshares are releasedin line with relevant regulations and some of the shareholders are repaying the advance money for another, thus the share structure of
theCompanychangedinthePeriodwhiletotalsharesremainthesame.
Approvalofsharechanged
□Applicable√Notapplicable
Ownershiptransferofsharechanges
□Applicable√Notapplicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholdersofCompanyinlatestyearandperiod
□Applicable√Notapplicable
Otherinformationnecessarytodiscloseorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changesofrestrictedshares
√Applicable□Notapplicable
InShare
||||||||
|-|-|-|-|-|-|-|
|Shareholders’name|NumberofsharesrestrictedatPeriod-begin|NumberofsharesreleasedintheYear|NumberofnewsharesrestrictedintheYear|NumberofsharesrestrictedatPeriod-end|Restrictionreasons|Releaseddate|
|XiaoTiefeng|132,000|0|0|132,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|SanyaRealEstateValuationAgent|924,000|0|0|924,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|HainanHongKong-MacaoInternationalTradeDevelopmentCo.,Ltd.|924,000|0|0|924,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|HaikouDongfangUrbancreditCooperative|924,000|0|0|924,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|HainanBranchofBankofCommunicationsCo.,Ltd.|924,000|0|0|924,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|ShenyangJin’anIndustrialCorporation|831,600|0|0|831,600|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|SanyaWangliBuildingMaterialsSales|92,400|0|0|92,400|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|GuangzhouCompanyofHainanInternationalInvestmentCo.,Ltd.|660,000|0|0|660,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|

||||||||
|-|-|-|-|-|-|-|
|SouthernIndustrialandTradingCorporation|660,000|0|0|660,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|GuangzhouDongzhanIndustrialCo.LTD|924,000|0|0|924,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|SanyaZhongxingDevelopmentCo.,Ltd.|2,541,000|0|0|2,541,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|HainanDadonghaiTourismCo.|739,200|0|0|739,200|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|MaXiaoping|132,000|0|0|132,000|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|ZhengYouxiong|46,200|0|0|46,200|Legalcommitmentinsharereform|Afterremoverestrictedprocedurescomplete|
|Total|10,454,400|0|0|10,454,400|--|--|

II.Securities issuanceandlisting
1.Securityoffering(withoutpreferredstock)inreportingPeriod
□Applicable√Notapplicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and liabilitystructure
□Applicable√Notapplicable
3.Existinginternalstaffshares
□Applicable√Notapplicable
III.Particulars aboutshareholderandactual controller of theCompany
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
In Share
|||||||||
|-|-|-|-|-|-|-|-|
|Totalcommonstockshareholders|21,624|Totalcommonstock|21,624|Totalpreferenceshareholders|0|Totalpreferenceshareholderswith|0|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|inreportingperiod-end|shareholdersatendoflastmonthbeforeannualreportdisclosed|||withvotingrightsrecoveredatendofreportingperiod|||votingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed||||
|Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders|||||||||||
|FullnameofShareholders|Natureofshareholder|Proportionofsharesheld|Numberofsharesheldatperiod-end||Changesinreportperiod|Amountofrestrictedsharesheld||Amountofun-restrictedsharesheld|Numberofsharepledged/frozen||
||||||||||Stateofshare|Amount|
|LuoniushanCo.,Ltd.|Domesticnonstate-ownedcorporate|17.55%|63,885,980||2370610|0||63,885,980|||
|PanGuoping|Domesticnatureperson|8.48%|30,879,791||0|0||30,879,791|||
|HGNHInternationalAssetManagementCo.,Ltd–customerdeposit|Foreigncorporate|2.29%|8,327,502||2468200|0||8,327,502|||
|FirstShanghaiSecuritiesLimited|Foreigncorporate|2.28%|8,297,473||-1255325|0||8,297,473|||
|HainanYa’anResidencePropertyServiceCo.,Ltd.|Domesticnonstate-ownedcorporate|2.25%|8,205,800||8205800|0||8,205,800|||
|JiangShuntou|Domesticnatureperson|1.80%|6,570,600||6570600|0||6,570,600|||
|HuJianguo|Domesticnatureperson|1.71%|6,227,640||564700|0||6,227,640|||
|WanHuaTianzhiInvestmentandDevelopmentCo.,Ltd.|Domesticnonstate-ownedcorporate|1.45%|5,277,400||5277400|0||5,277,400|||
|ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit|Foreigncorporate|1.30%|4,722,300||1090000|0||4,722,300|||
|ZhangFengxiu|Domesticnatureperson|1.07%|3,901,372||0|0||3,901,372|||

||||||
|-|-|-|-|-|
|Strategyinvestorsorgenerallegalpersonbecomestop10shareholdersduetorightsissued|N/A||||
|Explanation on associated relationship or accordantactionamongtheaforesaidshareholders|Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.TheCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.||||
|Particularabouttoptenshareholderswithun-restrictsharesheld|||||
|Shareholders’name||Amountofun-restrictsharesheldatPeriod-end|Typeofshares||
||||Type|Amount|
|LuoniushanCo.,Ltd.||63,885,980|RMBcommonshare|63,885,980|
|PanGuoping||30,879,791|Domesticallylistedforeignshare|30,879,791|
|HGNHInternationalAssetManagementCo.,Ltd–customerdeposit||8,327,502|RMBcommonshare|8,327,502|
|FirstShanghaiSecuritiesLimited||8,297,473|Domesticallylistedforeignshare|8,297,473|
|HainanYa’anResidencePropertyServiceCo.,Ltd.||8,205,800|RMBcommonshare|8,205,800|
|JiangShuntou||6,570,600|RMBcommonshare|6,570,600|
|HuJianguo||6,227,640|RMBcommonshare|6,227,640|
|WanHuaTianzhiInvestmentandDevelopmentCo.,Ltd.||5,277,400|RMBcommonshare|5,277,400|
|ChinaInvestmentSecurities(HK)Co.,Ld.–customerdeposit||4,722,300|RMBcommonshare|4,722,300|
|ZhangFengxiu||3,901,372|RMBcommonshare|3,901,372|
|Expiation onassociated relationshipor consistent actorswithin the top 10 un-restrict shareholders and betweentop10un-restrictshareholdersandtop10shareholders||Amongtheaboveshareholders,HainanYa’anResidencePropertyServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushanCo.,Ltd.TheCompanyisunknownwhetherthereexistsassociatedrelationshiporbelongstotheconsistentactorregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanyamongtheothershareholders.|||
|Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswith||N/A|||

||
|-|
|un-restrictsharesheld|

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back agreementdealinginreportingperiod
□Yes√No
Thetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhaveno buy-backagreementdealinginreportingperiod.
2.ControllingshareholderoftheCompany
Natureofcontrollingshareholders:communitycollectiveholding
Typeofcontrollingshareholders:legalperson
||||||
|-|-|-|-|-|
|Controllingshareholders|Legalperson/personinchargeoftheunit|Dateoffoundation|Organizationcode|Mainoperationbusiness|
|LuoniushanCo.,Ltd.|XuZili|1987-12-19|Unifiedsocialcreditcode9146000284089747P|Plantingandbreedingindustry;initiatingindustry;realestatedevelopmentandmanagement;buildingdecorationworks;salesofagriculturalandanimalby-products,aquaticproductsandfeedprocessing(operatesonlyforbranchwithvoucher);machineryandautomobileandmotorcycleparts,electronicproducts,metalmaterials(exceptforthemonopoly),chemicalproducts (exceptforthemonopoly)),householdappliances,modernofficesupplies,stationery,dailynecessities,buildingmaterials,salesofagriculturalandnativeproducts;thedevelopmentandconstructionoftradingmarket;leasingservices;warehousingservices;collectingandremittingwaterandelectricitycosts.|
|Equity of other domestic/oversealisted company control bycontrolling shareholder as well asstock-jointinreportperiod|FoundmoredetailsinfulltextofAnnualReport2017ofLuoniushanCo.,Ltd.(Shortformofthestock:Luoniushan,Stockcode:000735)||||

Changesofcontrollingshareholdersinreportingperiod
□Applicable√Notapplicable
TheCompanyhadnochangesofcontrollingshareholdersinreportingperiod
3.ActualcontrolleroftheCompany
Natureofactualcontroller:domesticnaturalperson
Typeofactualcontroller:naturalperson
||||
|-|-|-|
|Nameofactualcontroller|Nationality|Whetherobtainedrightofresidenceofothercountriesorregionsornot|
|XuZili|P.R.C|No|

|||
|-|-|
|Mainprofessionandtitle|XuZili,male,wasbornin1966,isaseniorengineerwithamasterdegree.HesuccessivelyservedasVicePresidentofHubeiHuangshiMineBureauMachinery;GeneralManagerofHaikouAnimalHusbandryMachineryEngineeringCo.,Ltd.;ChairmanofTianjinBaodiAgriculturalTechnologyCo.,Ltd.;healsoservedasstandingcommitteeoftheHaikou13thCPPCC;ViceChairmanandGeneralManageroftheCompanyfromAugust2006toNovember2011;servesasChairmanoftheCompanysinceNovember2011;nowhetakesasthe7thCPPCCmemberofHainanProvince.|
|ListedcompanyinandoutofChinacontrolledinpastdecades|N/A|

Changesofactualcontrollerinreportingperiod
□Applicable√Notapplicable
NochangesofactualcontrollersfortheCompanyinreportingperiod.
PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow:
ActualcontrollercontrollingtheCompanybyentrustorotherassetsmanagement
□Applicable√Notapplicable
4.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
□Applicable√Notapplicable
5.Limitation and reducing the holdings of shares of controlling shareholders, actual controllers, restructuringsideandother commitmentsubjects
□Applicable√Notapplicable
Section VII. Preferred Stock
□Applicable√Notapplicable
TheCompanyhadnopreferredstockinthePeriod.
Section VIII. Particulars about Directors, Supervisors, Senior Executives and Employees
I.Changesof sharesheldbydirectors,supervisors andseniorexecutives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Title|Workingstatus|Sex|Age|Startdatedofofficeterm|Enddateofofficeterm|Sharesheldatperiod-begin(Share)|Amountofsharesincreasedinthisperiod(Share)|Amountofsharesdecreasedinthisperiod(Share)|Otherchanges(share)|Sharesheldatperiod-end(Share)|
|LiYuanbin|Chairman,GeneralManager|Currentlyinoffice|M|67|2001-10-25|2017-05-22|0|0|0|0|0|
|ZhaoMan|IndependentDirector|Currentlyinoffice|F|65|2014-05-22|2017-05-22|0|0|0|0|0|
|TangGuoping|IndependentDirector|Currentlyinoffice|M|53|2014-05-22|2017-05-22|0|0|0|0|0|
|LengMingquan|IndependentDirector|Currentlyinoffice|M|62|2014-05-22|2017-05-22|0|0|0|0|0|
|LiuJuntao|Director|Currentlyinoffice|M|49|2002-06-16|2017-05-22|0|0|0|0|0|
|HuangWencai|Chairmanofsupervisorycommittee|Currentlyinoffice|M|48|2002-06-16|2017-05-22|0|0|0|0|0|
|WangJialing|Supervisor|Currentlyinoffice|F|51|2011-06-16|2017-05-22|0|0|0|0|0|
|FuZongren|Personinchargeoffinance|Currentlyinoffice|M|50|2015-04-15|2017-05-22|0|0|0||0|
|WangHongjuan|Director&Vicepresident&secretaryoftheBoard|Currentlyinoffice|F|41|2008-04-27|2017-05-22|0|0|0|0|0|
|ChenGang|Supervisor|Currentlyinoffice|M|52|2016-07-29|2017-05-22|1287|0|0|0|1287|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Total|--|--|--|--|--|--|1287|0|0|0|1287|

 II.Changes of directors,supervisors andseniorexecutives
□Applicable√Notapplicable
III.Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and seniorexecutive
Directors
Mr. Li Yuanbin: born in June 1950, Han nationality, Master degree, MBAdegree, senior engineer. He once held the position of Chairman of Board of Haikou Haiyuan Co. Ltd and Yangpu Tiandi Sunshine Industry Co., Ltd, director and general manager of the Company, now he is chairman of the Board and general manager, vice chairman of HainanEntrepreneurs’ Association, and permanent member of Hainan Federation of Industry ChamberofIndustry& CommerceandVice-presidentofHainan ProvincialAssociationfor Beverages Hotelsand Food,andVice-presidentofHubeiCommerceAssociationinHainanProvince.
Mr. Liu Juntao: born in Oct. 1968, Han nationality, EMBA of China Europe International Business School. Mr. Liu once held the position of deputy director of Construction Bank branch, secretary of the Board of Director of LuoniushanCo.Ltd.,DeputyGeneralManager oftheCompanyandDeputyGeneralManager ofSofttoCo., Ltd., assistant president and Secretary of the Board of Tianmao Industry Group Co., Ltd., currently holds the post of AssistantPresidentofAXAInsuranceCo.,Ltd.andserveasdirectoroftheCompanysince2002.
Ms. Wang Hongjuan, was born in Feb. 1976, Han nationality, Undergraduate Degree, an attorney; she served as representativeofsecuritiesaffairsoftheCompanysince2004andservesassecretaryoftheBoardsince2008and deputyGMoftheCompanysince2014.andservesasDirectoroftheCompanysince2016.
IndependentDirectors
Ms. ZhaoMan, bornin February1952, member of the CPC, Doctor of Economic, a professorand doctorialtutor. Professionalaffiliationssofar:memberof socialsciencescommissionoftheMinistryof Education,committeeof experts member of the MHRSS, committee of experts member of the Ministry of Civil Affairs, director of academic council of the Center for Social Security Study of Wuhan University, the key research center for social sciences by CECC, standing director of The China Association for Labor Studies, standing director of China Social Insurance Association, member of Advisory Committee of Hubei Provincial Peoples Government, decision-support expert of CPC Hubei Provincial Committee, consultant expert of budget expert group for the
WuhanPeople’s Congress Standing Committee and member of Expert Consultation Committee of CPC Hubei
Provincial Committee Organization Department. Now she serves as independent director of Hubei Kaile
TechnologyCo.,Ltd.,MayinglongPharmaceuticalGroupCo.,Ltd., andWuhanMingdeBiologicalTechnologies
Co.,Ltd.andshetookpostasindependentdirectoroftheCompanysinceMay2014.
Mr. Tang Guoping, born in August 1964, graduated from Zhongnan University of Economics and Law. Hold DoctorDegree,aprofessor,ChineseCPA andmemberof CPC.He servesas professorin ZhongnanUniversity of Economics and Law-School of Accounting, the director of Chinese Accounting Society, and serves as independent director of Cabio Biotechnology (Wuhan) Co., Ltd., Shengang Securities Co., Ltd., Shenzhen ShenZhuangZong Decoration Co., Ltd., and Wuhan Boiler Co., Ltd. He participated in (2012) the China SecuritiesRegulatoryCommissionindependentdirectortraining,and obtainedthe postqualification.Heserves as independentdirectorsoftheCompanysinceMay2014.
Mr. Leng Mingquan, born in April 1955, on-job graduate and Master of Administration. He was secretary and section chief of CPC Suizhou Municipal propaganda Department and director of Haikou Office of the Suizhou Government.Nowheservesasexecutivevicepresident,secretaryandlegalrepresentativeoftheConfederationof Hainan Enterprise and Hainan Association of Entrepreneurs; executive chairman of Hainan labor relations tripartie meeting; inspector of Hainan Procuratorate; police-style inspector of Hainan Provincial Public Security Department; specially-invited inspector of Hainan Provincial Supervision Department; member of Hainan Provincial Literature Dederation; member of Hainan Federation of Social Science; member of Hainan Provincial Arbitration Committee; director of Hainan Enterprise Credit Evaluation Administration; Chairman of Hainan Dashun Movie& TV Cultural Communication Co., Ltd.; independent director of Nanyang Shipping Group Co., Ltd.HeservesasindependentdirectorsoftheCompanysinceMay2014.
Supervisors
Mr. Huang Wencai: was born in Jan. 1969, undergraduate degree, Mr. Huang once held the position of vice director of Haikou meat associationfactory,director of Haikou food Co. Ltd. and assistant of generalmanager of HaikoufoodCo.Ltd.,deputyGMofHaikouLuoniushanFoodProcessingCo.,Ltd.andcurrentlyheldthepostof deputyGMof HainanLuoniushanMeat Co., Ltd.;heheld thepositionof Chairman ofSupervisoryCommitteeof theCompanysince2002.
Ms.WangJialing:wasborninFebruary1966,onceservedasaccountantoffinancialdeptoftheCompany;serves as deputy manager of the financial department of the Company. She serves as staff supervisor of the Company since2011.
Mr. Chen Gang, born in September 1966, the Han nationality, a junior accountant. He worked as accountant in Hainan Sanya Phoenix Co., Ltd. from February 1988 to June 1989, worked as chief accountant in Sanya Hardware Electrical Mall from July 1989 to September 1992, and serves as cost accounting, chief accountant, deputyGMandGMofthefinancialdept.intheCompanysinceOctober1992.Heservesasstaffsupervisorofthe
CompanysinceAugust2016.
Seniorexecutives
Mr. Fu Zongren, born in February 1967, intermediate accountant, served as financial manager of the Company, financialcontrollerofSanya YalongBayUniversalResort,andgeneralmanagerofFinancialManagementCenter ofHainanSunupGroup,andservesasthefinancialadministratoroftheCompanysinceApril2015.
Post-holdinginshareholder’sunit
□Applicable√Notapplicable
Post-holdinginotherunit
□Applicable√Notapplicable
Punishmentofsecuritiesregulatoryauthorityinrecentthreeyearstothecompany’scurrentandoutgoingdirectors,supervisorsand seniormanagementduringthereportingperiod
□Applicable√Notapplicable
IV.Remuneration fordirectors,supervisors andsenior executives
Decision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutives
||
|-|
|1.|

 generalmeeting after the review of the boardof directorsand boardof supervisors respectively; the pay of senior management is approved by the board. Directors, supervisors and senior managers get their payment correspondingtotheirpostprovidedbythegeneralmeetingandtheboardmeeting.
2. In line with performance of their duties, directors, independent directors and supervisors should receive the reimbursementfromtheCompanyontravelexpenseandArticlesofAssociationimplementationexpense. Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In10thousandYuan
||||||||
|-|-|-|-|-|-|-|
|Name|Title|Sex|Age|Post-holdingstatus|TotalremunerationobtainedfromtheCompany(beforetaxes)|WhetherremunerationobtainedfromrelatedpartyoftheCompany|
|LiYuanbin|Chairman &CEO|M|67|Currentlyinoffice|67.1|No|
|ZhaoMan|IndependentDirector|F|65|Currentlyinoffice|4.8|No|
|TangGuoping|IndependentDirector|M|53|Currentlyinoffice|4.8|No|
|LengMingquan|IndependentDirector|M|62|Currentlyinoffice|4.8|No|

||||||||
|-|-|-|-|-|-|-|
|LiuJuntao|Director|M|49|Currentlyinoffice|4.8|No|
|WangHongjuan|Director,SecretaryoftheBoardandDeputyGM|F|41|Currentlyinoffice|44.48|No|
|HuangWencai|Supervisor|M|48|Currentlyinoffice|2.4|No|
|ChenGang|Supervisor|M|51|Currentlyinoffice|11.78|No|
|WangJialing|Supervisor|F|51|Currentlyinoffice|9.77|No|
|FuZongren|CFO|M|50|Currentlyinoffice|33.84|No|
|Total|--|--|--|--|188.57|--|

Delegatedequityincentivefordirectors,supervisorsandseniorexecutivesinreportingperiod
□Applicable√Notapplicable
V.Particulars ofworkforce
1.Numberofstaff,professionalcompositionandeducationbackground
|||
|-|-|
|Thenumberofcurrentemployeesofparentcompany(people)|145|
|The number of current employees of main subsidiaries(people)|0|
|Totalnumberofcurrentemployees(people)|145|
|Thetotalnumberofcurrentemployeestoreceivepay(people)|145|
|The total number of retired staff and workers that the parentcompany and main subsidiaries need to bear the costs(people)|0|
|Professionalcomposition||
|Categoryofprofessionalcomposition|Numberofprofessionalcomposition(people)|
|Productionstaff|80|
|Salesman|6|
|Technicalstaff|22|
|Financialstaff|12|
|Administrativestaff|25|

|||
|-|-|
|Total|145|
|Educationbackground||
|Categoryofeducation|Number(people)|
|Graduatestudent|3|
|Undergraduate|6|
|Juniorcollegeabove|30|
|Highshoolandbelow|106|
|Total|145|

 2.Remunerationpolicy
The compensation ofcompany’s employees includes wages, bonuses, and benefits, which take the principle of distributing according to the work, giving priority to efficiency and taking count of equity simultaneously, wage increase adapting to thecompany’s business development and benefits improvement, optimizing the labor allocation, pay level agreeing with the local average in the same industry. Set or adjust the wage standards in accordancewith thejob valuationresult,the localpaylevel in the same industry,thecompany’s annualoperation targetandoperationalbudget,andtheindividualperformance.
3.Trainingprograms
Strengthen the training of senior executives by combining the voluntary organization of training and the external training, widen the thought, and enhance the decision-making ability and modern operation and management ability. Strengthen the training of middle management, improve the overall quality of managers, improve the knowledge structure, and enhance the comprehensive management capability, innovation capability and implementationcapability.Strengthenthetrainingofprofessionalandtechnicalpersonnel,improvethetheoretical level of technology and professional skills, and enhance the technological innovation, technical transformation capability. Strengthen the technical training of hotel service staff, constantly improve the professional skills and serviceskillsof servicestaff,andenhancetheabilitytostrictlyfulfilltheirresponsibilities.Strengthenthecultural training, improve the cultural level of personnel at all levels, and enhance the overall cultural quality of the staff team.
4.Laboroutsourcing
□Applicable√Notapplicable
Section IX. Corporate Governance
I.Corporate governance oftheCompany
During reporting period, the Company further completed governance structure and system, perfected internal control mechanism and system construction and normalized corporate operation, strictly in accordance with relativerulesandregulationsofthe CompanyLaw,SecuritiesLaw andListingRules.Tillendofreportingperiod, governance structure of the Company is basically in line with requirement of the Governance Rules of Listed Company.
||||
|-|-|-|
|1.|During|th|

 the decision rights, execution rights and supervision rights respectively with clear responsibilities,mutual restrict, operation specification and effective operation. The procedures of meeting holding, proposal review, and decision-making in these three meetings were in compliance with relevant provisions. The board meeting comprises strategy and development committee, audit committee, nomination committee, remuneration and appraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing astrongsupportfortheboardmeeting’smajorscientificmanagementdecision.
2. In strict accordance with the requirements of Rules Governing the Listing of Stock, directors performed its duties with honest, trust, diligence and independence, protected the legitimate rights and interests of minority shareholderswith loyalty to their interests; Supervisors effectively supervised and checked independentdirectors, seniormanagementandtheirfinancialsituations.
Isthereanydifferencebetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernancefor listedcompanyfromCSRC?
□Yes√No
Therearenodifferencesbetween theactual conditionofcorporategovernanceandrelevantregulationsaboutcorporategovernance forlistedcompanyfromCSRC.
II. Independency of the Company relative to controllingshareholders’ in aspect of businesses, personnel,assets,organization andfinance
|||
|-|-|
|Statement|of|

1. Business Independence: the Company business operates independently with integrated structure, and is free from horizontal competition with controlling shareholders. The controlling shareholders do not intervene theCompany’soperationeitherdirectlyorindirectly.
2. Personnel Independence, the Company is independent on controlling shareholders in the aspects of labor, personnelandRemunerationmanagement.
3. Assets Independence: the Company has proprietary rights and control rights on its assets. Controlling
shareholdersoccupynoassetsorfundsofthelistedcompany.
4. Institution Independence: the company's board of directors and board of supervisors, managers and other
internalinstitutionsoperateindependentlyandmanageindependentlywithintegratedstructures.
|||
|-|-|
|5.|Fi|

 system and financial management system. The Company opens independent bank accounts and pay independenttaxestolawswithoutcontrollingshareholders’intervention.
III.Horizontal competition
□Applicable√Notapplicable
IV. In the report period, the Company held annualshareholders’ general meeting andextraordinaryshareholders’general meeting
1.AnnualShareholders’GeneralMeetinginthereportperiod
|||||||
|-|-|-|-|-|-|
|Sessionofmeeting|Type|Ratioofinvestorparticipation|Date|Dateofdisclosure|Indexofdisclosure|
|Annual generalmeeting2016|Annualgeneralmeeting|26.37%|2017-04-21|2017-04-22|The“ResolutionNoticeofAnnualShareholders’GeneralMeetingof2016”(No.:2017-027)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated22April2017respectively|
|FirstExtraordinaryShareholdersMeetingof2017|Extraordinaryshareholdersmeeting|9.48%|2017-05-12|2017-05-13|The“ResolutionNoticeofFirstExtraordinaryShareholdersMeetingof2017”(No.:2017-038)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated13May2017respectively|
|SecondExtraordinaryShareholdersMeetingof2017|Extraordinaryshareholdersmeeting|9.47%|2017-07-12|2017-07-13|The“ResolutionNoticeofSecondExtraordinaryShareholdersMeetingof2017”(No.:2017-057)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated13July2017respectively|
|ThirdExtraordinaryShareholdersMeetingof2017|Extraordinaryshareholdersmeeting|29.28%|2017-11-10|2017-11-11|The“ResolutionNoticeofThirdExtraordinaryShareholdersMeetingof2017”(No.:2017-087)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated11September2017respectively|
|FourthExtraordinaryShareholdersMeetingof2017|Extraordinaryshareholdersmeeting|22.79%|2017-12-22|2017-12-23|The“ResolutionNoticeofFourthExtraordinaryShareholdersMeetingof2017”(No.:2017-095)publishedonSecuritiesTimes,HongKongCommercialDailyandJuchaowebsite(http://www.cninfo.com.cn)dated23December2017respectively|

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore□Applicable√Notapplicable
V.Responsibilityperformance ofindependent directors
1.TheattendingofindependentdirectorstoBoardmeetingsandgeneralmeeting
||||||||
|-|-|-|-|-|-|-|
|TheattendingofindependentdirectorstoBoardMeeting|||||||
|Nameofindependentdirector|TimesofBoardmeetingsupposedtoattendinthereportperiod|TimesofPresence|Timesofattendingbycommunication|Timesofentrustedpresence|TimesofAbsence|AbsenttheMeetingforthesecondtimeinarow(Y/N)|
|ZhaoMan|12|1|11|0|0|No|
|TangGuoping|12|1|11|0|0|No|
|LengMingquan|12|1|11|0|0|No|
|Times for attending generalmeeting from independentdirectors||5|||||

2.Objectionforrelevanteventsfromindependentdirectors
IndependentdirectorscomeupwithobjectionaboutCompany’srelevantmatters
√Yes□No
||||
|-|-|-|
|Nameofindependentdirector|Objectionfromindependentdirectors|Objectionitems|
|ZhaoMan|Major assets purchasement and Report of RelatedTransactions(Plan)andetc.|Themajor assets restructuringhasmajorrisks, theCompany do not have enough debt repaymentcapacity|
|TangGuoping|Major assets purchasement and Report of RelatedTransactions(Plan)andetc.|Currently, the plan has many risks inimplementation, the Company do not hascorrespondingly payment ability.Though we needthe restructures for future development, relevantrisksareunabletocontrol|
|LengMingquan|Major assets purchasement and Report of RelatedTransactions(Plan)andetc.|Immatureconditions|
|Explanationonobjectionsfromindependentdirectors|Foundmorein“ResolutionNoticeof11thextraordinarymeetingof8thBOD”(NoticeNo.:2017-066)releasedonSecuritiesTimes,HongKongCommercialDailyandJuchaoWebsitedated14August2017||

3.Otherexplanationaboutresponsibilityperformanceofindependentdirectors
Theopinionsfromindependentdirectorshavebeenadopted
√Yes□No
Explanationonadvicethataccepted/notacceptedfromindependentdirectors
It is suggested that the Company should strengthen the introduction of foreign capital, introduce excellent assets and diversify the current single business portfolio in addition to focusing on its major operations. The Company's stock commenced suspension of trading from the opening session on 15 February 2017 as it planned to fulfill its commitments. On 13August 2017, 12 proposals relating to MaterialAssetAcquisition and ConnectedTransaction Report (Plan) of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. were denied at the 11th extraordinary general meeting of the 8th session of board of directors of the Company. On 15 August 2017, the Company announced to terminate this restructuring relating to material assets acquisition, and the stock of the Company commencedtradingsince17August2017.
VI.Dutyperformanceofthespecial committees under theboard duringthereportingperiod The board meeting comprises four special committees, who carry out smoothly their duties accordingly to their working conditions, providing a strong support for the boardmeeting’s major scientific management decision. Eachspecialcommitteeperformedtheirdutiesasfollows:
1.AuditCommittee
During the reporting period, the audit committee audited the first quarter and the three quarter financial report of 2017, and the 2017 semi-annual financial report. In the process of annual financial report auditing 2017 process, audit committee members worked in accordance with the relevant requirements by faithfully performing auditcommittee’sresponsibilities:
|||||||
|-|-|-|-|-|-|
|Before|the|entrance|of|annual|examination|

 the management statements of the Company's operating condition in 2017 and the financial status as well as the
|||
|-|-|
|annual|examination|

 certified public accountants about issues such as personnel structure of the working group, audit plan, risk judgment, annual audit focus and so on; In early January 2017, in annual report audit process, audit committee
|||
|-|-|
|annual|examination|

 management;InlateJanuary2017,auditcommitteemembersreviewedsubmittedfinancialandaccountingreports. The financial and accounting reports audited was formatted strictly to Accounting Standards for Business EnterprisesandAccountingSystemforBusinessEnterprises,andthisreportfairlyreflectedtheCompany’sassets, liabilities, rights and interests and operating situation without significant errors and omissions. The annual audit reportof2017byauditinstitutionswasagreedtobesubmittedtotheboard.
||||
|-|-|-|
|The|Company's|bo|

 ordinary partnership) faithfully performed the audit responsibility, and suggested to renew as theCompany’s
annualfinancialauditof2018.
2.Remunerationcommittee
|||
|-|-|
|During|the|

 strictlyto relevantregulations,inspected remunerationpolicies and programs for directors,supervisorsand senior managers, and appraised the performance of directors, supervisors and senior management according to senior manager remuneration appraisal. By the end of the reporting period, the Company has not implemented option scheme.
3.Strategycommittee
|||
|-|-|
|During|the|

 as development planning and investment decisions, thus enhanced the scientific decision-making and core competitivenessof the Company, improvedtheCompany’s efficiencyof majorinvestmentdecisionsanddecision quality.
4.Nominationcommittee
Duringthereportingperiod,thecompanydidnothavethenomination.
VII.Works fromSupervisoryCommittee
TheCompanyhasrisksinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee
□Yes√No
Supervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiod
VIII.Examination andincentives ofsenior management
1. Pursuantto People-oriented Principle, the Company employs outstanding persons in long-term, and admits the bestcandidatesonthepremiseofopenness,fairness,justice.Thosewhopasstrialcomprehensiveappraisalandbe nominatedbygeneralmanagersandapprovedbytheboardmeetingcanbeemployedasseniormanagementofthe Company.
2. The Company adopts a clear appraisal system in which assessment methods are made to the performance and duty fulfillment of senior management. Assessments are carried out monthly and annually by the same level and higherlevelandtheresultsaretakenasfactorsforpostliftandrewardsandpunishmentofseniormanagement. 3.Thecompanysets upeffectiveincentivemechanism,includingmaterialincentives andspiritualincentives.The clear rewards and punishments, balance between remuneration and work performance, survival of fittest encourageseniormanagementtomakeconstantlyprogressandimprovetheirowncomprehensiveabilitywhichin turnhelptheCompanydeveloprapidly.
IX.Internal Control
1.DetailsofmajordefectsinICappraisalreportthatfoundinreportingperiod
□Yes√No
2.AppraisalReportofInternalControl
|||
|-|-|
|Disclosuredateoffullinternalcontrolevaluationreport|2018-02-01|
|Disclosureindexoffullinternalcontrolevaluationreport|RelevantinformationfoundinSelf-evaluationReportof|

|||||
|-|-|-|-|
|||InternalControlfor2017publishedonJuchaoWebsitedated1February2018.||
|Theratio of thetotalassets of unitsincluded in thescopeofevaluationaccounting for the total assets on the company's consolidated financialstatements||100.00%||
|The ratio of the operating income of units included in the scope ofevaluation accounting for the operating income on the company'sconsolidatedfinancialstatements||100.00%||
|DefectsEvaluationStandards||||
|Category|FinancialReports||Non-financialReports|
|Qualitativecriteria|Major deficiencies: fraud of directors,supervisors and senior management;material misstatements are found in currentfinancial statements by the certified publicaccountant but are not foundin theprocessof internal control; the supervision of theaudit committee to the company’s externalfinancial reports and internal control offinancialreportsisinvalid.Significant deficiencies: the selection andapplicationofaccountingpoliciesarenotinaccordance with the GAAP; anti-fraudprogram and control measures have notbeen established; the accounting treatmentof unusual or special transactions has noappropriatecontrolmechanismsorhavenotimplemented the control mechanisms andhas no appropriate compensatory controls;thecontroltoperiod-endfinancialreportingprocess has one or more deficiencies andcannot reasonably ensure that theorganizational financial statements are trueandaccurate.General deficiencies: other internal controldeficiencies do not constitute major orsignificantdeficiencies.||Majordeficiencies: thecompanyislackof democraticdecision-making process; the company’sdecision-making process leads to major mistakes; thecompanyviolates thestatelawsandregulationsandisseverely punished; serious brain drain of thecompany’s senior management personnel and seniortechnical staff; frequent negative news on mediacoveringawiderange andthenegative effectsare noteliminated; the company’s significant business is lackof system control or systematic-ness is invalid; themajor deficiencies and significant deficiencies of thecompany’sinternalcontrolshavenotbeenrectifiedandreformed; the company is punished by CSRC orwarnedbystockexchange.Significant deficiencies: the company has democraticdecision-making process which is not complete; thecompany’s decision-making process leads to generalmistakes; the company violates the enterprise internalregulationswhichcauses losses; seriousbraindrain ofthe company’s business personnel in key positions;negative news on media affecting local areas; thecompany’s significant business system hasdeficiencies; the significant deficiencies and generaldeficiencies of the company’s internal controls havenotbeenrectifiedandreformed;Generaldeficiencies:otherinternalcontroldeficienciesdonotconstitutemajororsignificantdeficiencies.|
|Quantitativestandard|Majordeficiencies: misstatements≥10%oftotalprofits;Significantdeficiencies:5%oftotalprofits≤misstatements<10%oftotalprofits;Generaldeficiencies:misstatements<5%of||Major deficiencies: misstatements ≥ direct propertylossof100,000Yuan;Significant deficiencies: direct propertylossof 10,000Yuan≤misstatements<directpropertylossof100,000Yuan;|

||||
|-|-|-|
||totalprofits.|General deficiencies: misstatements < direct propertylossof10,000Yuan.|
|Amount of significant defects infinancialreports|0||
|Amount of significant defects innon-financialreports|0||
|Amount of important defects infinancialreports|0||
|Amount of important defects innon-financialreports|0||

X.Auditingreport ofinternal control
√Applicable□Notapplicable
|||
|-|-|
|DeliberationsinInternalControlAuditReport||
|ToAllShareholdersofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd.:In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of ChineseCertified Public Accountant, we audited the effective-ness of the financial report’s internal control for Hainan Dadonghai TourismCenter(Holdings)Co.,Ltd.(theCompany)dated31December2017.I.AsforresponsibilityofinternalcontrolThe Company established and improved and implemented internal control effectively pursuit to Basic Norms of Enterprises InternalControl,SupportingGuidelinesforEnterpriseInternalControlandEvaluationGuildlinesforEnterprisesInternalControl,andboardofthedirectorisresponsibleforevaluatingitseffectiveness.II.Auditor’sresponsibilitiesOurresponsibilityistoexpressanopinionontheeffectivenessofinternalcontrolforthefinancial statementsbasedonouraudit.Anddisclosedmajordeficitsofnotedinternalcontrolwithoutfinancialstatementconcerned.III.InherentfeatureofinternalcontrolThe internal control has an inherent limitation, and exist mistakes that can not prevent and being discovered. Moreover, the internalcontrolmightbeinappropriateduetothechangesofconditions,orfailstofollowthecontrollingpoliciesandprocedures,tospeculatefutureeffectivenessoftheinternalcontrolinlinewiththeauditingresulthasacertainrisks.IV.Auditingopinion:inouropinionTheCompany,inlinewithBasicNormsofEnterprisesInternalControlandrelevantregulations,showsaneffectivenessinternalcontroloffinancialreportinallmajoraspectsdated31December2017.BDOCHINAShuLunPan CertifiedPublicAccountantofChina:ZhuJianqingCertifiedPublicAccountantsLLPCertifiedPublicAccountantofChina:LiuZeboShanghai,China 30January2018||
|Disclosure details of audit report ofinternalcontrol|Disclosed|
|Disclosure date of audit report of|2018-02-01|

|||
|-|-|
|internalcontrol(full-text)||
|Index of audit report of internalcontrol(full-text)|RelevantinformationfoundinSelf-evaluationReportofInternalControlfor2017publishedonJuchaoWebsitedated1February2018.|
|OpiniontypeofauditingreportofIC|Standardunqualified|
|whether thenon-financial report hadmajordefects|No|

CarriedoutmodifiedopinionforinternalcontrolauditreportfromCPA
□Yes√No
Theinternalcontrolauditreport,issuedbyCPA,hasconcertedopinionwithself-evaluationreport,issuedfromtheBoard
√Yes□No
Section X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at maturityontheapprovaldateforannualreportdisclosed
No
Section XI. Financial Report
I.Auditreport
|||
|-|-|
|Typeofauditopinion|Standardunqualifiedopinion|
|Signingdateofauditreport|2018-01-30|
|Nameofauditinstitute|BDOCHINAShuLunPanCertifiedPublicAccountantsLLP|
|Documentserialofauditreport|PCPAR[2018]No.10037|
|NameoftheCPA|ZhuJianqing,LiuZebo|

Auditor’sReport
ToallshareholdersofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.,
I. Opinion
Wehaveauditedthefinancial statementsof HainanDadonghaiTourismCentre(Holdings) Co.,Ltd.(hereinafter referred toas"the Company"),whichcomprisethebalancesheetasatDecember31,2017,andtheincomestatement,thestatementofcashflowsand thestatementofchangesinowners'equityfortheyearthenendedandnotestothefinancialstatements.
Inouropinion,theattachedfinancial statementsareprepared,inall material respects,inaccordancewithAccountingStandardsfor BusinessEnterprisesandpresentfairlythefinancialpositionoftheCompanyasatDecember31,2017anditsoperatingresultsand cashflowsfortheyearthenended.
II. BasisforOurOpinion
We conducted our audit in accordance with theAuditing Standards for Certified PublicAccountants in China. Our responsibilities underthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofour report.AccordingtotheCodeofEthicsforChineseCPA,weareindependentoftheCompanyinaccordancewiththeCodeofEthics for Chinese CPAandwe havefulfilled our otherethical responsibilities inaccordance withtheserequirements.Webelievethatthe auditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
III. KeyAuditMatters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,and informingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Thekeyauditmattersthatweidentified intheauditareasfollows:
(I) Recognitionofroomincome
1. Factualdescription
The Company had operating income of RMB27,906,600 in 2017, of which room income was RMB21,103,100, accounting for75.62% of operating income. According to Note 5.20 of the financial statements of the Company, the room income recognition
processoftheCompanyisasfollows:
(1) For travel agencies and individual guests, make advance collection of payments from them or pre-authorization; recognize
incomeofeachdayafter0:00ofthenightofsuchdayafterconfirmationwiththeRoomDepartmentandthehotelfrontdesk. (2) For websites under agreements,① guests who book rooms via websites with agreements with the Company shall make advance payment of room fees and deposits when they check in and pay the related website service fees according to a certain proportionsetoutintheagreementsandaftercheckbythefinancedepartmentwiththewebsites.Incomeofthecurrentdayshallberecognizedafter00:00accordingtotheconsumptionsituationafterdeductingservicecharges.②forguestswhobookroomsthrough websiteswithagreementswiththeCompanyandpayroomfeestothewebsites,incomeofthecurrentdayshallberecognizedafter 00:00according to theconsumption situationand listed as accountsreceivable whichshall be settledand collected before thefifth dayofeachmonthaftercheckingwiththewebsites.
(3) Fororientedguests,stayinaccountandmakeadvancecollectionofpaymentsatthetimeofcheck-inaccordingtoagreements, recognizeincomeofthecurrentdayafter00:00ofeachnightaccordingtoconsumptionsituation,andmakeregularreconciliation, settlementandcollection.
Xiruan system will automatically generate daily sales statements for the above business, which shall be audited by examining personnelbeforesubmittedtothefinancialdepartmenttoprepareaccountingvouchers.
2. Howourauditaddressedthematter
Forroomsalesrevenue,weunderstoodandevaluatedthemanagement'sdesignofinternalcontrolsinsalesprocessesfromapproval ofcontractstotheaccountingofsalesrevenueandtestedtheeffectivenessoftheimplementationofkeycontrolpoints. Via sample inspection of contracts and management interviews, we tested the timing point of significant risks and remuneration relatedtoroomrevenuerecognition,andthusassessedtheCompany'sincomerecognitionpolicies.
Inaddition,weimplementedthefollowingproceduresinrespectofroomrevenuebyusingsampling:
(1) Analyze income and gross profit margin in combination with the type of income, and judge whether there is any abnormal fluctuationintheincomeamountinthecurrentperiod.
(2) Choosesamples from reservation recordsand check-in recordsof rooms, check thesamples against thecontracts, accounting records,invoiceissuanceandpayment receipts related tothecorrespondingsales, andpayspecial attention towhether thesamples before and after the balance sheet date are included in the correct accounting period to assess whether room revenue is confirmed duringtheappropriateperiod.
(3) With respect to new customers and those bringing large amount of income in the current period, implement the external confirmation of incurred amounts and the balances, and analyzed the authenticity thereof in combination with the collection of payments and occupancy situation. At the same time, inquire the business information of some customers to further confirm the authenticityoftransactionstherewith.
(II) Non-operatingincomeduetowrite-offoflong-terminvestmentandcurrentaccount
1. Factualdescription
AccordingtotheProposalonWrite-offofLong-termInvestmentsandCurrentAccounts"resolvedatthe12thextraordinarymeeting of the eighth board of directors of the Company and the fifth extraordinary meeting of the eighth board of supervisors of the Company,andasresolvedatthethirdextraordinarygeneralmeetingofshareholdersoftheCompanyin2017,theCompanywroteoff originalbookvalueoflong-termequityinvestmentofRMB9,716,374.26in2017,andprovidedfortheprovisionforimpairmentof RMB 9,716,374.26;wrote off original book value of available-for-sale financial assets of RMB 5,000,000.00, and provided for the provision for impairment of RMB 5,000,000.00;wrote off a total of 205 sums of accounts receivable with original book value of RMB80,243,805.62, and provided for the provision for bad debt of RMB80,243,805.62;wrote off a total of 201 sums of accounts
payable with originalbookvalue ofRMB1,303,540.11.The write-offs resultedinincrease in theCompany's non-operating income byRMB1,303,540.11in2017.
2. Howourauditaddressedthematter
(1) We understood the Company's internal control system on write-off of assets and liabilities to judge whether the write-off process complied with the requirements. We collected relevant resolutions of the meetings of the board of directors and the third extraordinarygeneralmeetingofshareholdersandmediaandwebsiteannouncements.
(2) Forlong-termequityinvestments,available-for-salefinancialassetsandclaimsanddebts,wetracedtheoriginalsituationsand collected relevant information to verify the authenticity thereof, and verified the relevant information of the investees and the creditorsanddebtorsthroughtheEnterpriseCreditInformationPublicitySystemandtheenterpriseverificationsystem. Eachofthe written-offlong-termequityinvestments,available-for-salefinancialassetsandclaimsanddebtshadagingofmorethan5years. (3) WenoticedthatHainanDongfangGuoxinLawFirmissuedtheLegalOpiniononTimeLimitation forProceedingsonPartof AccountsPayableofHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.inrespectoftheabove-mentionedwritten-offpayables, in which the law firm believed that theabove 201 sums of payableshave exceeded the statutory time limitations, and therelevant creditorshave losttheir debtrecovery rightand theright towin.Tothisend,weconductednecessary communication with Hainan DongfangGuoxinLawFirminrespectoftherelevantsituationonthesaidwrite-offsofaccountspayable.
IV. Otherinformation
The management of the Company is responsible for the other information. The other information comprises information of the Company'sannualreportin2017,butexcludesthefinancialstatementsandourauditor'sreport.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assuranceconclusionthereon.
In connectionwith our audit of thefinancial statements, our responsibility isto read theother information identified above and, in doingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedin theaudit,orotherwiseappearstobemateriallymisstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we concludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreport inthisregard.
V. ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatements TheCompany'smanagementisresponsibleforpreparingthefinancialstatementsinaccordancewiththerequirementsofAccounting Standardsfor BusinessEnterprises to achieve afairpresentation, andfor designing, implementing andmaintaining internal control thatisnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatements,whetherduetofraudsorerrors. Inpreparingthefinancialstatements,managementoftheCompanyisresponsibleforassessingtheCompany'sabilitytocontinueasa goingconcern,disclosingmattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeither intendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.
VI. Auditor'sResponsibilitiesfortheAuditoftheFinancialStatements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesouropinion.Reasonableassuranceisahigh levelofassurance,butisnotaguaranteethatanauditconductedinaccordancewiththeauditstandardswillalwaysdetectamaterial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
AspartofanauditinaccordancewithISAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughoutthe audit.Wealso:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and performauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisfor our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraudmayinvolvecollusion,forgery,omissions,misrepresentations,ortheoverrideofinternalcontrol.
(2) Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthe circumstances.
(3) Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosures madebymanagementoftheCompany.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company, and conclude, basedontheauditevidenceobtained, whether amaterial uncertainty existsrelated toeventsorconditionsthatmay cast significant doubtontheCompany'sabilitytocontinueasagoingconcern.Ifweconcludethatamaterial uncertaintyexists,wearerequiredto draw attention in our auditor's report to the related disclosures in thefinancial statements or,if such disclosures are inadequate, to modifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,future eventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5) Evaluate theoverall presentation, structureandcontent ofthefinancial statements,includingthedisclosures,andwhether the financialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6) Obtainsufficientappropriateauditevidenceregardingthefinancial informationoftheentitiesorbusinessactivitieswithinthe Companytoexpressanopiniononthefinancialstatementsandbearallliabilityfortheopinion.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditand significantauditmatters,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit. Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicated withthosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificancein theaudit of thefinancial statements of thecurrent periodand are therefore thekey audit matters.Wedescribethese matters in our auditor's report unless law or regulation precludes publicdisclosure about thematter or when, inextremely rare circumstances, we determinethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybe expectedtooutweighthepublicinterestbenefitsofsuchcommunication.
BDOCHINAShuLunPan CertifiedPublicAccountantofChina:ZhuJianqing
CertifiedPublicAccountantsLLP
CertifiedPublicAccountantofChina:LiuZebo
Shanghai,China 30August2018
II.Financial Statement
ExpressedinRenminbiunlessotherwisestated
1.Balancesheet
PreparedbyHAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.
2017-12-31
InRMB
||||
|-|-|-|
|Item|ClosingBalance|OpeningBalance|
|Currentassets:|||
|Monetaryfunds|9,681,607.16|27,210,248.01|
|Settlementfunds|||
|Lendingfunds|||
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Derivativefinancialliability|||
|Notesreceivable|||
|Accountsreceivable|594,130.89|690,444.72|
|Prepayments|49,530.21|58,783.23|
|Insurancereceivable|||
|Reinsurancereceivables|||
|Contractreserveofreinsurancereceivable|||
|Interestreceivable|||
|Dividendsreceivable|||
|Otherreceivables|139,561.29|174,103.52|

||||
|-|-|-|
|Purchaserestitutedfinanceasset|||
|Inventories|227,005.11|219,179.72|
|Assetsheldforsale|||
|Non-currentassetsmaturingwithinoneyear|1,173,597.68|584,369.42|
|Othercurrentassets|1,957,863.56|1,876,449.22|
|Totalcurrentassets|13,823,295.90|30,813,577.84|
|Non-currentassets:|||
|Loansandpaymentsonbehalf|||
|Available-for-salefinancialassets|||
|Held-to-maturityinvestments|||
|Long-termreceivables|||
|Long-termequityinvestments|||
|Investmentrealestate|8,859,003.99|9,333,527.55|
|Fixedassets|39,088,708.83|40,395,680.91|
|Constructioninprogress|||
|Projectmaterials|||
|Disposaloffixedassets|||
|Productivebiologicalassets|||
|Oilandnaturalgasassets|||
|Intangibleassets|23,017,636.20|23,830,023.36|
|Researchanddevelopmentcosts|||
|Goodwill|||
|Long-termdeferredexpenses|2,678,016.88|1,071,343.97|
|Deferredtaxassets|||
|Othernon-currentassets|||
|Totalnon-currentassets|73,643,365.90|74,630,575.79|
|Totalassets|87,466,661.80|105,444,153.63|
|Currentliabilities|||
|Short-termborrowings|||
|Loanfromcentralbank|||
|Absorbingdepositandinterbankdeposit|||
|Capitalborrowed|||
|Financialliabilitymeasuredbyfairvalueandwithvariation|||

||||
|-|-|-|
|reckonedintocurrentgains/losses|||
|Derivativefinancialliability|||
|Notespayable|||
|Accountspayable|2,161,172.26|1,967,565.51|
|Accountsreceivedinadvance|1,271,174.12|1,894,524.28|
|Sellingfinancialassetofrepurchase|||
|Commissionchargeandcommissionpayable|||
|Wagepayable|2,459,015.93|2,148,514.36|
|Taxespayable|539,023.76|582,944.27|
|Interestpayable|||
|Dividendpayable|||
|Otheraccountspayable|2,411,176.59|23,084,504.73|
|Reinsurancepayables|||
|Insurancecontractreserve|||
|Securitytradingofagency|||
|Securitysalesofagency|||
|Liabilityheldforsale|||
|Non-currentliabilitiesduewithin1year|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|8,841,562.66|29,678,053.15|
|Non-currentliabilities:|||
|Long-termloans|||
|Bondspayable|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Long-termaccountpayable|||
|Long-termwagespayable|||
|Specialaccountspayable|||
|Projectedliabilities|1,489,685.04|1,489,685.04|
|Deferredincome|||
|Deferredincometaxliabilities|||
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|1,489,685.04|1,489,685.04|
|Totalliabilities|10,331,247.70|31,167,738.19|

||||
|-|-|-|
|Owners’equity:|||
|Sharecapita|364,100,000.00|364,100,000.00|
|Otherequityinstrument|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Capitalpublicreserve|54,142,850.01|54,142,850.01|
|Less:Inventoryshares|||
|Othercomprehensiveincome|||
|Reasonablereserve|||
|Surplusreserve|||
|Provisionofgeneralrisk|||
|Retainedprofit|-341,107,435.91|-343,966,434.57|
|Totalowner’sequityattributabletoparentCompany|77,135,414.10|74,276,415.44|
|Minorityinterests|||
|Totalowner’sequity|77,135,414.10|74,276,415.44|
|Totalliabilitiesandowner’sequity|87,466,661.80|105,444,153.63|

 LegalRepresentative:LiYuanbin
AccountingPrincipal:FuZongren
AccountingFirm’sPrincipal:FuZongren
2.Profitstatement
InRMB
||||
|-|-|-|
|Item|CurrentPeriod|LastPeriod|
|I.Totaloperatingincome|27,906,564.23|21,708,883.51|
|Including:Operatingincome|27,906,564.23|21,708,883.51|
|Interestincome|||
|Insurancegained|||
|Commissionchargeandcommissionincome|||
|II.Totaloperatingcost|27,127,174.49|25,781,573.48|
|Including:Operatingcost|11,139,919.59|10,258,440.62|
|Interestexpense|||
|Commissionchargeandcommissionexpense|||

||||
|-|-|-|
|Cashsurrendervalue|||
|Netamountofexpenseofcompensation|||
|Netamountofwithdrawalofinsurancecontractreserve|||
|Bonusexpenseofguaranteeslip|||
|Reinsuranceexpense|||
|Operatingtaxandextras|1,434,692.20|1,412,039.97|
|Salesexpenses|5,124,503.55|4,931,333.26|
|Administrationexpenses|9,665,525.83|9,374,635.91|
|Financialexpenses|-249,176.18|-193,645.29|
|Lossesofdevaluationofasset|11,709.50|-1,230.99|
|Add:Changingincomeoffairvalue(Lossislistedwith“-”)|||
|Investmentincome(Lossislistedwith“-”)|805,825.24|1,390,918.55|
|Including:InvestmentincomeonaffiliatedCompanyandjointventure|||
|Exchangeincome(Lossislistedwith“-”)|||
|Incomeondisposalofassets(Lossislistedwith“-”)|||
|Otherincome|||
|III.Operatingprofit (Lossislistedwith“-”)|1,585,214.98|-2,681,771.42|
|Add:Non-operatingincome|1,303,800.11|69,606.00|
|Including:Disposalearningsofnon-currentasset|||
|Less:Non-operatingexpense|30,016.43|48,887.07|
|Including:Disposallossofnon-currentasset|30,016.43|48,887.07|
|IV.TotalProfit (Lossislistedwith“-”)|2,858,998.66|-2,661,052.49|
|Less:Incometax|||
|V.Netprofit(Netlossislistedwith“-”)|2,858,998.66|-2,661,052.49|
|(i)continuousoperatingnetprofit(netlosslistedwith‘-”)|||
|(ii) terminationofnetprofit (netlosslistedwith‘-”)|||
|Netprofitattributabletoowner’sequityofparentCompany|2,858,998.66|-2,661,052.49|
|Minorityshareholders’gainsandlosses|||
|VI.Netafter-taxofothercomprehensiveincome|||
|Netafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany|||
|(I)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitofloss|||

||||
|-|-|-|
|1.Changesasaresultofre-measurementofnetdefinedbenefitplanliabilityorasset|||
|2.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillnotbereclassifiedsubsequentlytoprofitandloss|||
|(II)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss|||
|1.Shareoftheothercomprehensiveincomeoftheinvesteeaccountedforusingequitymethodwhichwillbereclassifiedsubsequentlytoprofitorloss|||
|2.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets|||
|3.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets|||
|4.Theeffecthedgingportionofgainsorlossesarisingfromcashflowhedginginstruments|||
|5.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements|||
|6.Other|||
|Netafter-taxofothercomprehensiveincomeattributabletominorityshareholders|||
|VII.Totalcomprehensiveincome|2,858,998.66|-2,661,052.49|
|TotalcomprehensiveincomeattributabletoownersofparentCompany|2,858,998.66|-2,661,052.49|
|Totalcomprehensiveincomeattributabletominorityshareholders|||
|VIII.Earningspershare:|||
|(i)Basicearningspershare|0.0079|-0.0073|
|(ii)Dilutedearningspershare|0.0079|-0.0073|

 LegalRepresentative:LiYuanbin
AccountingPrincipal:FuZongren
AccountingFirm’sPrincipal:FuZongren
3.Cashflowstatement
InRMB
||||
|-|-|-|
|Item|CurrentPeriod|LastPeriod|
|I.Cashflowsarisingfromoperatingactivities:|||
|Cashreceivedfromsellingcommoditiesandprovidinglaborservices|29,475,377.07|22,525,732.45|
|Netincreaseofcustomerdepositandinterbankdeposit|||
|Netincreaseofloanfromcentralbank|||
|Netincreaseofcapitalborrowedfromotherfinancialinstitution|||
|Cashreceivedfromoriginalinsurancecontractfee|||
|Netcashreceivedfromreinsurancebusiness|||
|Insuredsavingsandnetincreaseofinvestment|||
|Netincreaseofamountfromdisposalfinancialassetsthatmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Cashreceivedfrominterest,commissionchargeandcommission|||
|Netincreaseofcapitalborrowed|||
|Netincreaseofreturnedbusinesscapital|||
|Write-backoftaxreceived||4,801.73|
|Othercashreceivedconcerningoperatingactivities|1,082,486.86|584,448.51|
|Subtotalofcashinflowarisingfromoperatingactivities|30,557,863.93|23,114,982.69|
|Cashpaidforpurchasingcommoditiesandreceivinglaborservice|8,848,190.06|5,520,980.68|
|Netincreaseofcustomerloansandadvances|||
|Netincreaseofdepositsincentralbankandinterbank|||
|Cashpaidfororiginalinsurancecontractcompensation|||
|Cashpaidforinterest,commissionchargeandcommission|||
|Cashpaidforbonusofguaranteeslip|||
|Cashpaidto/forstaffandworkers|10,028,995.69|9,341,192.06|
|Taxespaid|2,678,621.46|2,515,054.34|
|Othercashpaidconcerningoperatingactivities|3,874,768.25|2,971,383.59|
|Subtotalofcashoutflowarisingfromoperatingactivities|25,430,575.46|20,348,610.67|
|Netcashflowsarisingfromoperatingactivities|5,127,288.47|2,766,372.02|
|II.Cashflowsarisingfrominvestingactivities:|||
|Cashreceivedfromrecoveringinvestment|9,000,000.00|9,000,000.00|
|Cashreceivedfrominvestmentincome|830,000.00|961,165.05|
|Net cash received from disposal of fixed, intangible and other long-termassets|10,550.00|4,929,753.50|
|Netcashreceivedfromdisposalofsubsidiariesandotherunits|||

||||
|-|-|-|
|Othercashreceivedconcerninginvestingactivities||29,081.45|
|Subtotalofcashinflowfrominvestingactivities|9,840,550.00|14,920,000.00|
|Cashpaidforpurchasingfixed,intangibleandotherlong-termassets|4,186,479.32|1,258,516.27|
|Cashpaidforinvestment|9,000,000.00|9,000,000.00|
|Netincreaseofmortgagedloans|||
|Netcashreceivedfromsubsidiariesandotherunits|||
|Othercashpaidconcerninginvestingactivities|19,310,000.00||
|Subtotalofcashoutflowfrominvestingactivities|32,496,479.32|10,258,516.27|
|Netcashflowsarisingfrominvestingactivities|-22,655,929.32|4,661,483.73|
|III.Cashflowsarisingfromfinancingactivities:|||
|Cashreceivedfromabsorbinginvestment|||
|Including:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiaries|||
|Cashreceivedfromloans|||
|Cashreceivedfromissuingbonds|||
|Othercashreceivedconcerningfinancingactivities|19,810,000.00||
|Subtotalofcashinflowfromfinancingactivities|19,810,000.00||
|Cashpaidforsettlingdebts|||
|Cashpaidfordividendandprofitdistributingorinterestpaying|||
|Including:Dividendandprofitofminorityshareholderpaidbysubsidiaries|||
|Othercashpaidconcerningfinancingactivities|19,810,000.00||
|Subtotalofcashoutflowfromfinancingactivities|19,810,000.00||
|Netcashflowsarisingfromfinancingactivities|||
|IV.Influenceoncashduetofluctuationinexchangerate|||
|V.Netincreaseofcashandcashequivalents|-17,528,640.85|7,427,855.75|
|Add:Balanceofcashandcashequivalentsattheperiod-begin|27,210,248.01|19,782,392.26|
|VI.Balanceofcashandcashequivalentsattheperiod-end|9,681,607.16|27,210,248.01|

Currentperiod
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|CurrentPeriod|||||||||||||
||Owners’equityattributabletotheparentCompany|||||||||||Minorityinterests|Total owners’equity|
||Sharecapital|Otherequityinstrument|||Capitalreserve|Less:Inventoryshares|Othercomprehensiveincome|Reasonablereserve|Surplusreserve|Provisionofgeneralrisk|Retainedprofit|||
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||||
|I. Balance atthe end of thelastyear|364,100,000.00||||54,142,850.01||||||-343,966,434.57||74,276,415.44|
|Add:Changes ofaccountingpolicy||||||||||||||
|Errorcorrection ofthelastperiod||||||||||||||
|Enterprisecombineunder thesamecontrol||||||||||||||
|Other||||||||||||||
|II. Balance atthe beginning|364,100,000.00||||54,142,850.01||||||-343,966,434.57||74,276,415.44|

||||
|-|-|-|
|ofthisyear|||
|III. Increase/Decrease inthis year(Decrease islistedwith“-”)|2,858,998.66|2,858,998.66|
|(i) Totalcomprehensiveincome|2,858,998.66|2,858,998.66|
|(ii) Owners’devoted anddecreasedcapital|||
|1.Commonsharesinvested byshareholders|||
|2. Capitalinvested byholders ofother equityinstruments|||
|3. Amountreckoned intoowners equitywithshare-basedpayment|||
|4.Other|||
|(III) Profitdistribution|||

||
|-|
|1. Withdrawalof surplusreserves|
|2. Withdrawalof general riskprovisions|
|3. Distributionfor owners (orshareholders)|
|4.Other|
|(IV) Carryingforwardinternalowners’equity|
|1. Capitalreservesconversed tocapital (sharecapital)|
|2. Surplusreservesconversed tocapital (sharecapital)|
|3. Remedyingloss withsurplusreserve|
|4.Other|
|(V)Reasonablereserve|

||||||
|-|-|-|-|-|
|1. Withdrawalin the reportperiod|||||
|2.Usageinthereportperiod|||||
|(VI)Others|||||
|IV. Balance atthe end of thereportperiod|364,100,000.00|54,142,850.01|-341,107,435.91|77,135,414.10|

4.StatementonChangesofOwners’Equity
InRMB LastPeriod
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|LastPeriod|||||||||||||
||Owners’equityattributabletotheparentCompany|||||||||||Minorityinterests|Total owners’equity|
||Sharecapital|Otherequityinstrument|||Capitalreserve|Less:Inventoryshares|Othercomprehensiveincome|Reasonablereserve|Surplusreserve|Provisionofgeneralrisk|Retainedprofit|||
|||Preferredstock|Perpetualcapitalsecurities|Other||||||||||
|I. Balance atthe end of thelastyear|364,100,000.00||||54,142,850.01||||||-341,305,382.08||76,937,467.93|
|Add:Changes ofaccounting||||||||||||||

||||||
|-|-|-|-|-|
|policy|||||
|Errorcorrection ofthelastperiod|||||
|Enterprisecombine underthe samecontrol|||||
|Other|||||
|II. Balance atthe beginningofthisyear|364,100,000.00|54,142,850.01|-341,305,382.08|76,937,467.93|
|III. Increase/Decrease inthis year(Decrease islistedwith“-”)|||-2,661,052.49|-2,661,052.49|
|(i) Totalcomprehensiveincome|||-2,661,052.49|-2,661,052.49|
|(ii) Owners’devoted anddecreasedcapital|||||
|1.Commonsharesinvested byshareholders|||||

||
|-|
|2. Capitalinvested byholders ofother equityinstruments|
|3. Amountreckoned intoowners equitywithshare-basedpayment|
|4Other|
|(III) Profitdistribution|
|1. Withdrawalof surplusreserves|
|2. Withdrawalof general riskprovisions|
|3. Distributionfor owners (orshareholders)|
|4.Other|
|(IV) Carryingforwardinternalowners’equity|
|1. Capitalreservesconversed to|

||||||
|-|-|-|-|-|
|capital (sharecapital)|||||
|2. Surplusreservesconversed tocapital (sharecapital)|||||
|3. Remedyingloss withsurplusreserve|||||
|4.Other|||||
|(V)Reasonablereserve|||||
|1. Withdrawalin the reportperiod|||||
|2.Usageinthereportperiod|||||
|(VI)Others|||||
|IV. Balance atthe end of thereportperiod|364,100,000.00|54,142,850.01|-343,966,434.57|74,276,415.44|

III.Companyprofile
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the "Company") is a standardized company limited by shares established on April 26, 1993 and restructured from Hainan Sanya DadonghaiTourismCentre DevelopmentCo., Ltd. with the approvalof HainanShareholdingSystem PilotGroup office via its Document Qiong Gu Ban Zi[1993] No.11.On May 6, 1996, the Company was reorganized and separated with the reply of Hainan Securities Management Office by its Document Qiong Zheng Ban[1996] No.58.On October 8, 1996 and January 28, 1997,the Company was approved to respectively issue 80 million B shares and 14 millionA shares on Shenzhen Stock Exchange and list for sales. On June 20, 2007, the Company carried out the split share structure reform. The non-tradable shareholders of the Company paid shares to the tradable shareholders for obtaining the circulation rights, and the tradable shareholders got 3 shares for every 10 shares.TheCompanybelongstotourismandcateringserviceindustry.
As at December 31, 2017, the Company's accumulative total issued capital was 364.1 million shares and the Company'sregisteredcapitalwasRMB364.1million.Legalrepresentative:LiYuanbin.Unifiedsocialcreditcode: 91460000201357188U.Domicile: Dadonghai, Hedong District, Sanya. Business scope: Accommodation and catering industry (limited to branches); photography; flower bonsai, knitwear, general merchandise, hardware, chemical products (except franchised operations), daily necessities, industrial means of production (except franchisedoperations),metalmaterials,machineryequipment;salesof train,bus,vehicleticketsonan agentbasis etc.TheCompany'slargestshareholderisLuoniushanCo.,Ltd.
The financial statements were approved by the board of directors of the Company on January 30, 2018 for disclosure.
AsatDecember31,2017,thesubsidiariesincludedintotheCompany'sscopeofconsolidatedfinancialstatements areasfollows:
Name RelationshipwiththeCompany
HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.South
China Hotel (hereinafter referred to as "the South China
Hotel") Branch
IV.Basisofpreparationofthefinancialstatements
1.Preparationbasis
Based on going concern and according to actually occurred transactions and events, the Company preparedfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises—BasicStandardsand thespecificaccountingstandards,ApplicationGuidancetotheAccountingStandardsforBusinessEnterprises,the interpretation of the Accounting Standards for Business Enterprises and other relevant provisions (hereinafter referred to collectively as the "Accounting Standards for Business Enterprises"), as well as the disclosure provisions of the Rules for the Compilation and Submission of Information Disclosure by Companies Offering SecuritiestothePublicNo.15-GeneralRequirementsforFinancialReports(Revisedin2014).
2Goingconcern
The Company currently has sufficient working capital and normal operating conditions. It is estimated that the operatingactivitiesoftheCompanywillcontinueinthenext12months.
v.SSSSiiiiggggnnnniiiiffffiiiiccccaaaannnntttt aaaaccccccccoooouuuunnnnttttiiiinnnngggg ppppoooolllliiiicccciiiieeeessss aaaannnndddd aaaaccccccccoooouuuunnnnttttiiiinnnngggg eeeessssttttiiiimmmmaaaatttteeeessss
DoestheCompanyneedtocomplywiththedisclosurerequirementofthespecialindustry
No
Specificaccountingpoliciesandestimationattention:
Nil
1. StatementoncompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanycomplywiththerequirementsoftheAccountingStandardsfor Business Enterprises, and truly and completely present the financial position, operating results, cash flows of the Companyandotherrelatedinformation.
2.Accountingperiod
TheaccountingyearisfromJanuary1toDecember31incalendaryear.
3.Operatingcycle
TheCompany'soperatingcycleis12months.
Note:whentheoperatingcycleisdifferentfrom12months,andsuchoperingcycleistheclassificationstandards forassetsandliabilitymobility,explainthecycleanddeterminationbasis.
4. Reportingcurrency
TheCompanyadoptsRMBasitsreportingcurrency.
5.AccountingTreatmentMethodforBusinessCombinations(underthesame/differentcontrol)
6.Preparationmethodforconsolidatedfinancialstatement
7.Jointarrangementclassificationandaccountingtreatmentforjointoperations
8. Recognitioncriteriaofcashandcashequivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the unrestricted deposit of the Company. The term “cash equivalents” refers to short-term (maturing within three monthsfromacquisition)andhighlyliquidinvestmentsthatarereadilyconvertibletoknown amountsofcashand whicharesubjecttoaninsignificantriskofchangeinvalue.
9.Foreigncurrencybusinessandforeigncurrencystatementconversion
Foreigncurrencytransactionswillbetranslatedatthespotexchangerateonthetransactiondateandbeaccounted foratRMB.
The balanceof foreign currencymonetary items are translatedat the spotexchange rate on the balancesheetdate and the exchange differences arising therefrom shall be included in the current profit and loss, except those exchange differences arising from the special borrowings of foreign currency related to the acquired and constructedassets qualifiedfor capitalizationthatwill be capitalizedat the borrowing expenses.Foreign currency non-monetary items measured at historical costs shall still be converted at the spot exchange rates when the transactions occur, without changing the functional currency amount. Foreign currency non-monetary items measuredat fair value shall be translatedat the spot exchange rates on the day when the fair value is determined. Theexchangedifferencearisingtherefromisincludedinthecurrentprofitandlossorcapitalreserves.
Note:explainthefollowitemsasthedeterminationofconversionratewhileforeigncurrencytradeoccurred,the conversionmethodforforeigncurrencymonetaryitemsinbalancesheetdate,thetreatmentforexchangegainsor lossesaswellwetheaccountingtreatmentforforeigncurrencystatementtranslation
10. Financialinstruments
Financialinstrumentsincludefinancialassets,financialliabilitiesandequityinstruments.
10.1Classificationoffinancialinstruments
Upon initial recognition, financial assets and financial liabilities are classified into: financial assets or financial liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities heldfor tradingandfinancialassetsorfinancialliabilitiesdirectlydesignatedtobemeasuredatfairvaluethrough current profit and loss; held-to-maturity investments; receivables; available-for-sale financial assets; and other financialliabilities,etc.
10.2Recognitionandmeasurementoffinancialinstruments
(1) Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandloss
Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandloss areinitiallyrecognized at the fair value upon acquisition(net of cash dividends declaredbut notyet paid or bondinterestdue butnotyet received)andtherelatedtransactioncostsareincludedincurrentprofitandloss.
The interests or cash dividends to be received during the holding period are recognized as investment income. Changeinfairvaluesisincludedinthecurrentprofitandlossattheendoftheperiod.
The difference between the fair value and the initial book-entry value is recognized as investment income upon disposal;meanwhile,adjustmentsaremadetoprofitsorlossesfromchangesinfairvalues.
(2) Held-to-maturityinvestments
Held-to-maturityinvestments are initially recognized at the sum of the fair value (netof bond interestdue butnot yetreceived)andrelatedtransactioncostsuponacquisition.
The interest income is calculated and recognized according to amortized costs and effective interest rates (as per couponratesifthedifferencebetweeneffectiveinterestratesandcouponratesissmall)duringtheholdingperiod, and is included in the investmentincome.The effective interest rates are determineduponacquisitionandremain unchangedduringtheexpectedremainingperiod,orashorterperiodifapplicable.
Upon disposal, the difference between the purchase price obtained and the book value of the investment is
recognizedininvestmentincome.
(3) Receivables
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, prepayment and others, the initial recognitionamountshallbethecontractpriceoragreementpricereceivablefrompurchasingparty;forthosewith financingnature,theyareinitiallyrecognizedattheirpresentvalues.
Upon recovery or disposal, the difference between the purchase price obtained and the book value of the receivablesisrecognizedincurrentprofitandloss.
(4) Available-for-salefinancialassets
Financialassets(financialliabilities)measuredatfairvaluethroughcurrentprofitandloss areinitiallyrecognized atthefairvalueandrelatedtransactionexpensesuponacquisition(netofcashdividendsdeclaredbutnotyet paid orbondinterestduebutnotyetreceived).
Theinterestsorcashdividendstobereceivedduringtheholdingperiodarerecognizedasinvestmentincome.The interest or cash dividends should be measured at fair value and their changes in fair value should be included in other comprehensive income. However, for an equity instrument investment that has no quoted price in an active market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the said equityinstrumentinvestmentandsettledbydeliveryofthesameequityinstrument,theyshallbemeasuredatcost. Difference between the proceeds and the book value of the financial assets is recognized as investment profit or loss upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which is originally and directly included in other comprehensive income shall be transferred out and recognized as investmentgainsorlosses.
(5) Otherfinancialliabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses, and subsequentlymeasuredatamortizedcosts.Subsequentmeasurementisconductedattheamortizedcost.
10.3Recognitionandmeasurementoftransferoffinancialassets
When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks and rewards on the ownership of the financial assets have been transferred to the transferee;and they will not be derecognizedifsubstantiallyalltherisksandrewardsontheownershipofthefinancialassetshavebeenretained. When determining whether the transfer of a financial asset meets the above de-recognition criteria of financial assets, the Company adopts the principle of substance over form. The Company classifies the transfer of a financial asset into the entire transfer and the partial transfer of financial asset. Where the entire transfer of the financial asset meets the de-recognition conditions, the difference of the following two amounts will be included incurrentprofitandloss:
(1) Thebookvalueofthetransferredfinancialasset;
(2) Thesumoftheconsiderationreceivedfromthetransferandtheaccumulatedamountofthechangesinfair value originally and directly included inowners’equity (the situation where the financial asset transferred is an available-for-salefinancialassetisinvolvedin).
If the partial transfer of financial asset satisfies the criteria for de-recognition, the entire book value of the transferredfinancialassetshallbesplitintothederecognizedandrecognizedpartaccordingtotheirrespectivefair value and the difference between the amounts of the following two items shall be included in the current profit andloss:
(1) Thebookvalueofthederecognizedpart;
(2) The sumof the considerationforthe derecognizedpart and the portionof de-recognitioncorrespondingto the accumulated amount of the changes in fair value originally and directly included inowners’ equity (the situationwherethefinancialassettransferredisanavailable-for-salefinancialassetisinvolvedin).
If the transfer of financialassetsdoesnotmeetthe de-recognitioncriteria,the financialassetsshallcontinueto be recognized,andtheconsiderationreceivedwillberecognizedasafinancialliability.
10.4De-recognitioncriteriaoffinancialliabilities
Where the present obligations of financial liabilities have been discharged in whole or in part, the financial liability is derecognized or any part thereof will be derecognized; if the Company signs an agreement with creditors to replace the existing financial liabilities by undertaking new financialliabilities, and the new financial liabilities are substantially different from the existing ones in terms of contract terms, the existing financial liabilitieswillbederecognized,andatthesametime,thenewfinancialliabilitywillberecognized.
Where substantive changes are made to the contract terms of existing financial liability in whole or in part, the existingfinancialliabilitiesorpartthereofwillbederecognized,andthefinancialliabilitythetermsofwhichhave beenmodifiedwillberecognizedasanewfinancialliability.
Where financial liabilities are derecognized is whole or in part, the difference between the book value of the financial liabilities derecognized and the consideration paid (including non-cash assets transferred out or new financialliabilitiesborne)willbeincludedintocurrentprofitandloss.
WheretheCompanyrepurchasespartofafinancialliability,theentirebookvalueofthefinancialliabilityshallbe split into the derecognized part and continuously-recognized part according to their respective relatively fair values on the repurchase date. The difference between the book value of the derecognized part and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be includedinthecurrentprofitandloss.
10.5Methodofdeterminingthefairvalueoffinancialassetsandfinancialliabilities
Thefairvalueofafinancialinstrument,forwhichthereisanactivemarket,isthepricesquotedforittherein.Fair value of a financialinstrumenthaving no active market shallbe determinedby using valuationtechniques.At the time ofvaluation,theCompanyadoptsthetechniquesthatare applicableinthe currentsituationandsupportedby enoughavailabledataandotherinformation,selects theinputvalues thatare consistentwith the featuresof assets or liabilities as considered by market participants in relevant asset or liability transactions, and gives priority to use relevant observable inputs. The unobservable inputs are used only under the circumstance when it is impossibleorunobservableinputstoobtainrelevantobservableinputs.
10.6Testingandaccountingmethodsofimpairmentoffinancialassets(excludingreceivables)
Exceptfor the financial assets measured at fair values through current profit and loss, the bookvalue of financial assetsonthebalancesheetdateshouldbechecked.Ifthereisobjectiveevidencethatafinancialassetis impaired,
provisionforimpairmentshallbemade.
(1)Impairmentprovisionforavailable-for-salefinancialassets:
If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it is expected that the trend of decrease in value is non-temporary after considering various relevant factors, the impairment shall be recognized, and accumulated losses from decreases in fair value originally and directlyincludedinowners’equityshallbealltransferredoutandrecognizedasimpairmentloss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in thesubsequentaccountingperiodandsuchriseis objectivelyrelatedto the mattersoccurringafterthe recognition of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current profitandloss.
Impairmentlossesonavailable-for-saleequityinstrumentsshallnotbereversedthroughprofitorloss.
(2)Impairmentprovisionforheld-to-maturityinvestments:
Measurementofimpairmentlossesonheld-to-maturityinvestmentsistreatedinaccordancewiththemeasurement methodforimpairmentlossesonreceivables.
11.Accountsreceivable
(1) Account receivable with individually significant amount and with bad debt provision accrual independently
|||
|-|-|
|Basisandstandardfor"individuallysignificant"|Top5accountsreceivableandotherreceivablesbyindividualamountattheendoftheyear|
|Methodsforprovisionforbaddebtsofreceivableswithindividuallysignificantamount:|TheCompanywillseparately conductanimpairmenttestonanindividualbasisandtheallowance for bad debts will be made at the lower of the present value of the expectedfuturecashflowandthebookvaluethereofandincludedincurrentprofitandloss.Thosedo not impair after the separate test shall be included into corresponding portfolio forprovisionforbaddebts.Ifseparatetestindicatesthatthereisimpairmentofreceivables,theyshallnotbeincludedthereceivablesportfoliowithsimilarriskcreditcharacteristicsforanimpairmenttest.|

(2)Receivableswithbaddebtprovisionaccrualbycreditportfolio:
|||
|-|-|
|Portfolio|Methodsforprovisionforbaddebts|
|Receivablesprovidedforbaddebtsonaportfoliobasis|Aginganalysis|

Provisionsforbaddebtsmadebyaginganalysismethodareasfollows:
√Applicable□Notapplicable
||||
|-|-|-|
|Aging|Provisionratioforreceivables|Proportionratioforotherreceivables|
|Within1year(inclusive)|0.00%|0.00%|

||||
|-|-|-|
|1-2years|5.00%|5.00%|
|2-3years|15.00%|15.00%|
|3-4years|25.00%|25.00%|
|4-5years|50.00%|50.00%|
|Over5years|100.00%|100.00%|

 Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportion
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethods:
□Applicable√Notapplicable
(3)Accountsreceivablewithindividuallyinsignificantamountsandindividualallowanceforbaddebt
|||
|-|-|
|Reasonsforseparateprovisionofallowanceforbaddebts|Attheendoftheyear,thereareobjectiveevidencesshowingthattheindividualbalancesbelowtopfiveareimpaired;forexample,thedebtorisdissolved,bankruptsordies,andthereforethereceivablescannotberecoveredafterthebankruptcypropertyortheestateisrepaid.|
|Provisionmethodofallowanceforbaddebts|if there is an objective evidence that the impairment on receivables has occurred, suchreceivables shall be separated from relevant portfolio to conduct impairment test separately,basedonwhichtheimpairmentlossesarerecognized.Receivables other than accounts receivable and other receivables are subject to impairmentprovisionbyusingthespecificidentificationmethods.|

12.Inventories
DoestheCompanyneedtocomplywiththedisclosurerequirementofthespecialindustry
No
1.Classification
Inventoriesareclassifiedinto:rawmaterials,stockcommodities,low-costconsumables,goodmaterials,fuel,etc. 2.Valuationmethodofinventoriesdispatched
Stock commodity is accountedfor at the selling price andthe difference betweenthe purchase and saleprices are adjustedonamonthlybasisbyusingtheintegratedpricedifferencerate.Thepurchaseandstorageofallmaterials ofinventoriesismeasuredatactualcost,andbyusingthefirst-infirst-outmethodwhenappliedforuse.Low-cost consumablesareamortizedatlump-summethodwhenappliedforuse.
3. Determining basis of the net realizable value of inventories and method for inventory impairment provision
After the comprehensive inventory count at the end of the period, provisions for inventory depreciation reserve are madeoradjustedattheloweroftheircostsornetrealizablevalues.
Formerchandiseinventoriesfordirectsale,includingstockcommodities,goodsinprogressandmaterialsforsale,
during normal operations, their net realizable values are recognized at the estimated selling prices minus the
estimated selling expenses and the relevant taxes and surcharges; for material inventories held for production,
their net realizable values are recognized at the estimated selling prices of finished goods minus estimated costs untilcompletion,estimatedsellingexpensesandrelevanttaxesandsurcharges.
The provisions for inventory depreciation reserve are made on an individual basis at the end of the period; for inventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserve are made on a category basis. For inventories related to the productportfolios manufacturedandsold in the same area,andofwhichthefinalusageorpurposeis identicalor similarthereto,andwhichis difficulttoseparatefrom other items for measurement purposes, the provisions for inventory depreciation reserve are made on a portfolio basis.
Where the previous factors affecting the written-down of the value of inventory have disappeared, the amount of write-down shall be resumed and be reversed from the original provision for inventory devaluation with the reversalbeingincludedincurrentprofitandloss.
4.Inventorysystem
Theperpetualinventorysystemisadoptedforaccounting.
5.Amortizationmethodsforlow-costconsumablesandpackagingmaterials
(1) Low-costconsumablesareamortizedatlump-summethod;
(2) Packagingmaterials:lump-sumwrite-offmethod.
13.Assetsheldforsale
14.Long-termequityinvestments
1.Judgmentcriteriaforcommoncontrolandsignificantinfluence
Jointcontrolrefersto thecontrolsharedover anarrangementinaccordancewiththerelevantstipulations,andthe decision-making of related activities of the arrangement should not be made before the party sharing the control right agrees the same. Where the Company exercises joint control over the investee together with other parties to thejointventureandenjoystherightontheinvestee'snetassets,theinvesteeisajointventureoftheCompany.
Significantinfluencerefers to the powerto participatein making decisionson the financialand operatingpolicies of an enterprise, such as appointing representative to the board of directors or similar organs of authority of the investee, but not the power to control the investee, or jointly control, the formulation of such policies with other parties. Where an investor is able to have significant influences on an investee, the investee shall be the Company'sassociate.
2.Determiningofinitialinvestmentcost
(1) Long-termequityinvestmentacquiredfrombusinesscombination
Business combination under the common control: if the Company pays a consideration to the combinee in cash, bytransferringnon-cashassetsorbyassumingdebts,theshareofbookvalueofitsowners'equityinthecombinee in the consolidatedfinancialstatements of the ultimate controlling party shall be regarded, on the merger date, as the initial investment cost of the long-term equity investment. If there is a difference between the initial investment cost of the long-term equity investment and the total of book values of the paid cash, transferred non-cash assets and of assumed debts as well as the face value of issued share, the difference shall be used to adjustthesharepremiuminthecapitalreserve;andif thesharepremiuminthecapitalreserveisinsufficienttobe offset,retainedearningsshallbeadjusted.
In case the Company can exercise control over the investee under common control for additional investment or otherreasons, the initial investment costof long-term equityinvestments is recognizedat the share of bookvalue ofnetassetoftheacquireeafterthecombinationintheconsolidatedfinancialstatementsoftheultimatecontroller on the combination date. The stock premium should be adjusted at the difference between the initial investment costof long-termequityinvestments on thecombination dateandthe bookvalue of long-termequityinvestments before the combination plus the book value of consideration paid for additional shares; if there is no sufficient stockpremiumforwrite-downs,theretainedearningsareadjusted.
Business combination not under the common control: the Company recognizes the combination cost determined on the combination date as the initial cost of long-term equity investments. Where the Company can control the investee not under common control from additionalinvestments, the initial investment cost should be changed to be accounted for under the cost method and recognized at the sum of the book value of equity investments originally held and newly increased investment cost. Underbusiness combination not under the common control, the auditing, legal services, consulting and other intermediary fees and other related administrative expenses for business combination will be included into current profit and loss upon occurrence; the transaction costs for the issuance of equity securities or debt securities shall be included into the initial recognition amount of equity securitiesordebtsecurities.
(2) Long-termequityinvestmentsobtainedbyothermeans
For long-term equity investments acquired from making payments in cash, the initial cost is the actually paid purchasecost.
For long-term equityinvestmentsacquiredfromissuanceofequitysecurities,theinitialinvestmentcostis thefair valueoftheissuedequitysecurities.
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 and the relevant taxes and surcharges payable unlessthereis any conclusive evidencethatthe fair valuesof the assets tradedin are more reliable;if the exchange of non-monetaryassets doesnotmeet theabove criteria, the bookvalue of the assetstradedout and the relevanttaxesandsurchargespayablearerecognizedastheinitialcostoflong-termequityinvestmenttradedin. For long-term equity investment acquired from debt restructuring, the initial cost is determined based on the fair value.
3.Subsequentmeasurementsandrecognitionofgainorloss
(1) Long-termequityinvestmentundercostmethod
Long-term equity investments in subsidiariesare accountedfor underthe costmethod.Exceptfor theactualprice paidfor acquisitionof investmentor the cashdividendsorprofits containedin the considerationwhichhavebeen declared but not yet distributed, the Company recognizes the investment income in the current year at the cash dividendsorprofitsdeclaredbytheinvestee.
(2) Long-termequityinvestmentaccountedforintheequitymethod
The Company's long-term equity investments in associates and joint ventures are accounted for by using the equity method. If the initial cost is more than the share of the fair value of the investee' identifiable net asset to whichtheCompanyshallbeentitledwheninvesting,theinitialcostofthelong-termequityinvestmentwillnotbe adjusted.If the initialcostof along-termequityinvestmentislessthantheshareof thefairvalueofthe investee's identifiable net asset to which the Company shall be entitled when investing, the difference shall be included in thecurrentprofitorloss.
The Company respectively recognizes the investment income and other comprehensive income according to the shares of net profit or loss and other comprehensive income realized by the investee that should enjoyed or assumed by the Company, and adjusts the book value of long-term equity investment; according to the profit declared to be distributed by the investee or the part shall be enjoyed cash dividends calculation, to reduce the book value of long-term equity investment correspondingly; for other changesin owners' equity excepting for ex all profit or loss of the investee, other comprehensive income and profit distribution, the bookvalue of long-term equityinvestmentshallbeadjustedandincludedintheowners'equity.
When recognizingthe shareof net profitor lossof the investee thatthe Company shallenjoy,basedon fair value of various identifiable assets and others of the investee on acquisition and according to accounting policies and accounting periods of the Company, the Company shall recognize such share after making adjustments to net profit of the investee. When holding the investment, the investee should prepare the consolidated financial statements, it shall account for the investment income based on the net profit, other comprehensive income and thechangesinotherowner'sequityattributabletotheinvestee.
The Company shallwrite off the partof incomes from internalunrealized transactionsbetweenthe Company and associates and joint ventures which are attributable to the Company according to the corresponding ratio and recognize the profit and loss on investments on such basis. Where the losses from internal transactions between the Company and the investee fall into the scope of assets impairment loss, the full amount of such losses should be recognized. For transactions on investments or sales of assets between the Company and associates and joint ventures,wheresuchassetsconstitutebusiness,theyshouldbeaccountedforaccordingtotherelevantpolicies. When the Company recognizes its share of loss incurred to the investee, treatment shall be done in the following sequence: firstly, the book value of the long-term equity investment shall be reduced; secondly, where the book value thereof is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of other long-term equities which form net investment in the investee in substance and the book value of long term receivables shall be reduced. Finally, after all the above treatments, if the Company is still responsible for anyadditionalliability in accordancewith the provisionsstipulatedin the investmentcontractsor agreements, provisions are recognized and included into current investment loss according to the obligations estimated to undertake.An investing party shall recognize the net loss incurred by the invested entity until the book value of the long-term equity investment and other long-term interests which substantially form the net investment in the invested entity are reduced to zero, unless the investing party is obliged to undertake extra losses. If the invested entity realizes any net profit later, the investing party shall, after the amount of its attributable share of profits offsetsitsattributableshareoftheunrecognizedlosses,resumerecognizingitsattributableshareofprofits. (3) Disposaloflong-termequityinvestments
For disposal of long-term equity investments, the difference between the book value and the actual price shall be includedintothecurrentprofitorloss.
Where a long-term equity investment is accounted for under the equity method, accounting treatment should be madeon thepartwhichis originallyincludedinothercomprehensiveincomeaccordingto correspondingratio by using the same basis for the investee to directly dispose of the relevant assets or liabilities when the investments are disposed of. Owner's equity recognized from the investee's changes in other owner's equity other than net profit or loss, other comprehensive income and profit distribution should all transferred to the current profit and lossinproportion.
Incasethejointcontrolorsignificantinfluenceovertheinvesteeislostfordisposingpartofequityinvestmentsor other reasons, the remaining equity will be changed to be accounted for according to the recognition and measurement principlesof financialinstruments.The differencebetween the fair value and the bookvalue on the date of the loss of joint control or significant influence should be included in the current profit and loss. As to othercomprehensiveincomerecognizedbasedonmeasurementoftheoriginalequityinvestmentundertheequity method, accounting treatment shall be made on the same basis as would be required if the investee had directly
disposed of the assets or liabilities related thereto when measurement under the equity method is terminated. Owner's equity recognized from the investee's changes in other owner's equity other than net profit or loss, other comprehensive income and profit distribution should all transferredto the currentprofit and loss when the equity methodconfirmedisnolongeradopted.
Where the Company loses the control over the investee due to disposal of partial equity investments or other reasons,whenit preparesseparatefinancialstatements,the remainingequityafterdisposalthatcanjointly control or have significant influence on the investee will be measured at the equity method, and the remaining equity shouldbedeemedtohavebeenadjustedatequitymethodonacquisition;
If the remaining equity after disposal cannot exercise joint control or significant influence on the investee, such investments shouldbe accountedfor accordingto the provisionson the recognitionandmeasurement of financial instruments and the difference between fair value and book value on the date of loss of the control should be includedinthecurrentprofitandloss.
Where the disposed equities are acquired by the enterprise combination due to the reasons such as additional investment, the remaining equities after the disposal are calculatedbased on the cost method or equity method in preparing the individual financial statements, and other comprehensive income and other owners' equity recognized because of the equity method adopted for the calculation of the equity investment held prior to the purchase date are carried forward in proportion;the remaining equities after the disposal are changed to be made in accordance with the relevant provisions in the recognition and measurement criteria of financial instruments whileothercomprehensiveincomeandotherowners'equityarecarriedforwardinfull.
15. Investmentproperty
Measurementmode
Measuredbycostmethod
Depreciationoramortizationmethod
Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land leased out under operating leases, land held for long-term capital appreciation, buildings leased out under operatingleases,(includingbuildingsthathavebeenconstructedordevelopedforfutureleaseoutunderoperating leases,andbuildingsthatarebeingconstructedordevelopedforfutureleaseoutunderoperatingleases).
The Company measures the existing investment properties by using the cost model. For investment property measuredby using the costmodel, the buildings for lease shall be depreciatedby using policies the same as used for fixedassetsof theCompany,andtheland userights for leaseshallbe amortized byusingthe same policiesas applicabletointangibleassets.
16.Fixedassets
(1)Recognitioncriteriaoffixedassets
Fixedassetsrefertothetangibleassetsheldforthepurposeofproducingcommodities,renderingservices,renting or business management with useful lives exceeding one year. Fixed assets are recognized when they simultaneouslymeetthefollowingconditions:
(1) ItisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintotheCompany;and (2) Thecostsofthefixedassetcanbemeasuredreliably.
(2)Depreciationmethodoffixedassets
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|-|-|-|-|-|
|Assettype|Depreciationmethod|Yearfordepreciation|Residualvaluerate|Yearlydepreciationrate|
|Housesandbuildings|Straight-linemethod|20-40|5|4.75-2.37|
|Mechanicalequipment|Straight-linemethod|8-20|5|11.87-4.75|
|Entertainmentequipment|Straight-linemethod|5-16|5|19-5.93|
|Transportationequipment|Straight-linemethod|7-12|5|13.57-7.91|
|Otherequipment|Straight-linemethod|8|5|11.87|

(3)Reorganizationbasis,valuationanddepreciationmethodforfinancialleaseassets
17.Constructioninprogress
DoestheCompanyneedtocomplywiththedisclosurerequirementofthespecialindustry
No
The book-entry values of the fixed assets are stated at total expenditures incurred before reaching working conditionfor their intendeduse. For constructionin progress that has reachedworking conditions for its intended usebutfor whichthe completionof settlementhasnotbeenhandled,itshallbetransferredintofixedassetsatthe 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. 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 providedwillnotbeadjusted.
18.Borrowingcosts
1.Recognitionprinciplesofcapitalizationofborrowingcosts
Borrowing costs include the interest of borrowings, the amortization of discount or premium, auxiliary expenses, exchangedifferencesincurredbyforeigncurrencyborrowings,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 relevant asset costs; other borrowing costs should be recognized as costs according to the amount incurred and be included into the current profitandloss.
Assetseligiblefor capitalizationrefertofixedassets,investmentproperty,inventories andotherassetswhichmay reachtheirintendeduseorsalestatusonlyafterlong-timeacquisitionandconstructionorproductionactivities. Borrowingcostsmaybecapitalizedonlywhenallthefollowingconditionsaremetatthesametime:
(1) Asset disbursements, which includethose incurred by cash payment, the transfer of non-cash assets or the undertakingof interest-bearingdebtsfor acquiringandconstructingorproducingassetseligiblefor capitalization, havealreadybeenincurred;
(2) Borrowingcostshavealreadybeenincurred;
(3) Purchase, construction or manufacturing activities that are necessary to prepare the assets for their intendeduseareinprogress.
2.Capitalizationperiodofborrowingcosts
Capitalizationperiodreferstotheperiodfromcommencementofcapitalizationofborrowingcoststoitscessation; periodofsuspensionforcapitalizationisexcluded.
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for capitalizationhavereachedtheworkingconditionfortheirintendeduseorsale.
When some projects among the acquired and constructed or produced assets eligible for capitalization are completedandcanbeusedseparately,thecapitalizationofborrowingcostsofsuchprojectsshouldbeceased. If allparts of the acquiredand constructed orproducedassets are completedbutthe assets cannotbe used or sold externally until overall completion, the capitalization of borrowing costs should be ceased at the time of overall completionofthesaidassets.
3.Periodofsuspensionforcapitalization
If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be suspended;if the interruptionis necessary proceduresfor the acquired,constructedor producedassets eligible for capitalization to reach the working conditions for its intended use or sale, the borrowing costs continue to be capitalized. Borrowing costs incurred during the interruption are recognized as the current profit and loss and continuetobecapitalizeduntiltheacquisition,constructionorproductionoftheassetrestarts.
4.Calculationofcapitalizationamountofborrowingcosts
As for special borrowings borrowed for acquiring and constructingor producing assets eligible for capitalization, borrowing costs of special borrowing actually incurred in the current period less the interest income of the borrowings unused and deposited in bank or return on temporary investment should be recognized as the capitalizationamountofborrowingcosts.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
interestof generalborrowings to be capitalizedshouldbecalculatedby multiplying the weightedaverage of asset disbursementsof the partof accumulatedassetdisbursementsexceedingspecialborrowings at end of eachmonth by the capitalization rate of used general borrowings. The capitalization rate is calculated by weighted average interestrateofgeneralborrowings.
As forborrowings with discountorpremium, the to-be-amortizeddiscountorpremium in each accounting period shouldberecognizedbyeffectiveinterestratemethod,andtheinterestforeachperiodshouldbeadjusted. 19.Biologicalassets
20.Oil-and-gasassets
21.Intangibleassets
(1)Valuationmethod,usefullivesandimpairment
1．．．．Valuationmethodofintangibleassets
(1) TheCompanyinitiallymeasuresintangibleassetsatcostonacquisition;
The costs of externally purchased intangible assets include purchase prices, relevant taxes and surcharges and other directly attributable expenditures incurred to prepare the assets for their intended use. If the payment for an intangible asset is delayed beyond the normal credit conditions and it is of the financing nature, the cost of the intangibleassetshallbedeterminedonthebasisofthecurrentvalueofthepurchaseprice.
For an intangible asset obtained in debt restructuring by a debtor for the settlement of relevant liability, the book-entry value shall be initially recognized based on the fair value of the intangible asset. Difference between the book value of restructured debts and the fair value of the intangible asset used for debt off-set shall be includedinthecurrentprofitorloss;
Onthe premisethatnon-monetaryassetstradeis of commercialnatureandthe fairvalueof theassetstradedin or outcanbe measuredreliably,the intangibleassets tradedin with non-monetaryassets shouldbe recognizedatthe fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value of the assets tradedinismorereliable;astothenon-monetaryassetstradenotmeetingtheaforesaidpremise,thebookvalueof the assets traded out and related taxes and surcharges payable should be recognized as the cost of the intangible assets,withgainsorlossesnotrecognized.
Forintangibleassetsacquiredfrombusinesscombinationundercommoncontrol,theinitialbookvalueare initiallyrecognizedatthebookvalueofthecombinee;forintangibleassetsacquiredfrombusinesscombination notundercommoncontrol,theinitialbookvalueareinitiallyrecognizedatthefairvalue.
Costsofintangibleassetsdevelopedinternallyandindependentlyinclude:thecostsofmaterialsandlaborservices used to develop the intangible assets, the registration fee, the amortization of other patents and franchise used in the process of development, the interest expenses meeting the condition for capitalization, and other direct expensesforpreparingtheintangibleassetsfortheirintendeduse.
(2) Subsequentmeasurement
Theusefullivesoftheintangibleassetsareanalyzedanddeterminedontheiracquisition.
For intangible assets with definite usefullives, the Company shalladoptthe straight-linemethod for amortization within theperiodduringwhichtheycanbringeconomic benefitsto the Company;wheretheperiodduringwhich they can bring economic benefits to the Company cannot be forecast, those intangible assets shall be deemed as assetswithindefinitelivesandnoamortizationwillbemade.
2.Estimatesofusefullivesofintangibleassetswithdefiniteusefullives
|||
|-|-|
|Item|Estimatedusefullives|
|Landuserights|50years|

 The useful life and amortization method of intangible assets with limited useful life are reviewed at the end of eachperiod.
Upon review,the useful lives and amortization method of the intangible assets as at the end of the year were not differentfromthoseestimatedbefore.
3.Judgmentbasisforintangibleassetswithindefiniteusefullives
Asatthebalancesheetdate,theCompanyhasnointangibleassetswithindefiniteusefullives.
Note:explainthemeasurementofintangibleassets.Explaintheestimationconditionforuseoflife,whiletheintangibleassetshave limitedservicelife.Iftheintangibleassetshaveuncertainuseoflife,explainthejudgmentbasisandproceduresforuseoflife(2)AccountingpolicyofinternalR&Dexpenditures
22.Impairmentoflong-termassets
For the long-term equity investments, investment properties, fixed assets, construction in progress, intangible assets,andotherlong-termassetsmeasuredatcostmodel,iftherearesignsofimpairment,animpairmenttestwill be conducted on the balance sheet date. If impairment test results indicate that the recoverable amounts of the assets are lower than their book value, the provision for impairment is made based on the differences, which are recognized as impairment losses. The recoverable amounts of intangible assets are the higher of their fair values lesscoststo selland the presentvalues of thefuturecashflowsexpectedto be derivedfromthe assets.The assets impairment provision is calculated and made on an individual basis. If it is difficult for the Company to estimate the recoverable amount of the individual asset, the recoverable amount of an asset group to which the said asset belongsto willbe determined.Asset group is theminimum combination ofassetsthatcan independentlygenerate cashinflows.
Afterthelossesfromassetimpairmentarerecognized,theyarenotreversedinsubsequentperiods.
23.Long-termdeferredexpenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be born in the reportingperiodandinthefuturewithanamortizationperiodofoveroneyear.
1.Amortizationmethod
Long-termdeferredexpensesareevenlyamortizedoverthebeneficialperiod
2.Amortizationperiod
||
|-|
|Item|
|Hotelexteriordecoration|
|Firestairsrenovation|
|CFLOORROOMRENOVATION|
|Villarenovation|
|Swimmingpoolrenovation|

 24.Employeecompensation
(1)Accountingmethodforshort-termcompensation
During the accounting period when employees serve the Company, the actual short-term compensation is recognizedasliabilitiesandincludedincurrentprofitandlossorcostsassociatedwithassets.
The appropriate amount of employee compensation payable will be determined during the accounting period whentheemployeesprovideservicesfortheCompanybasedonthemedicalinsurance,workinjuryinsuranceand maternity insurance and other social insurance and housing fund paid by the Company for employees, as well as trade union funds and employee education funds withdrawn according to provisions at the accrual basis and accrualratio.
Theemployeebenefitsinthenon-monetaryformshallbemeasuredatfairvalue.
(2)Accountingmethodforpost-employmentbenefits
Where the Company cannot unilaterally withdraw the dismissal welfare offered in view of the cancellationof the labor relation plan or the layoff proposal, or recognizes the cost or expenses as to the restructuring involving the payment of dismissal welfare (whichever is earlier), the employee compensation arising from the dismissal welfareshouldberecognizedastheliabilitiesandchargedtothecurrentprofitorloss.
(3)Accountingmethodfordismisswelfare
The Company will pay basic old-age insurance and unemployment insurance in accordance with relevant provisions of the local government for employees. During the accounting period when they provide services for the Company, the amount payable will be calculated at the basis and proportion specified by local authorities, recognizedasaliabilityandchargedintocurrentprofitandlossorcostsassociatedwithassets.
(4)Accountingmethodforotherlong-termemployeewelfare
25.Estimatedliabilities
WhentheCompanyisinvolvedinlitigation,debtguarantees,loss-makingcontract,reorganizationmatters,ifsuch
matters are likely to be satisfiedby delivery of assets orprovisionof services in the futureand the amountcan be measuredreliably,theyshallberecognizedasestimatedliabilities.
1.Recognitioncriteriaforestimatedliabilities
Whenan obligation relatingto a contingency meets all the following conditions atthe same time, it is recognized asanestimatedliability:
(1) SuchobligationisapresentobligationoftheCompany;
(2) TheperformanceofsuchobligationmaywellcauseoutflowsofeconomicbenefitsfromtheCompany;and (3) Theamountofsuchobligationcanbemeasuredreliably.
2.Measurementmethodofestimatedliabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for the performanceofrelevantpresentobligations.
When the Company determines the best estimate, it should have a comprehensive consideration of risks with respectto contingencies, uncertainties and the time value of money.If the time value of money is significant, the bestestimateswillbedeterminedafterdiscountofrelevantfuturecashoutflows.
Thebestestimatesshallbetreatedasfollowsindifferentcircumstances:
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 estimates will be determined at the average amount of upper and lowerlimitswithintherange.
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, 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.
Whenallorpartof the expensesnecessaryfor the settlementof estimated liabilitiesof the Companyare expected to be compensated by a third party, the compensation shall be separately recognized as an asset only when it is virtually certain to be received. The compensation recognized shall not exceed the book value of the estimated liabilities.
26.share-basedpayment
Nil
27.Otherfinancialinstrumentaspreferredstockandperpetualbondetc.
Nil
28.Revenue
DoestheCompanyneedtocomplywiththedisclosurerequirementofthespecialindustry
Nil
1.Recognitionandmeasurementprinciplesforrevenuesfromsaleofgoods
(1) Generalrecognitionandmeasurementprinciplesforrevenuefromsalesofgoods
IncomefromsalesofgoodsisrecognizedwhentheCompanyhastransferredto thebuyer thesignificantrisksand rewards of ownership of the goods; 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 income can be measured reliably; it is highly likely that the economic benefits associated with the transaction will flow into the Company;andtherelevantamountofcostincurredortobeincurredcanbemeasuredreliably.
(2) RecognitioncriteriaandtimeofrevenuefromsaleofgoodsoftheCompany
In the provision of hotel housing services at the same time, the Company provides goods to customers and will prepare daily sales list after confirming with the Rooms Department and the hotel front desk. Based on the sales list, the finance department confirms that the major risks and rewards of ownership of the goods have been transferredtothecustomerandthenthesalesrevenueisrecognized.
2.Recognitionandmeasurementprinciplesofrevenuefromrenderingofservice
(1) For the hotel rooms, catering (breakfast) and other services to be provided by the Company,after they are provided, and the Company checks with the sales department and the front check, the Company will prepare the dailysalesreportsandaccountsreceivablelisttothefinancedepartment,whichwillreviewthesame,afterwhich, therevenuewillberecognized.
(2) Fortherevenuefromrestaurantsandvenuescontractedout,theywillberecognizedinaccordancewiththe periodstipulatedinthecontractoragreementandthecollectiontiming.
3.Recognitionbasisforrevenuefromtransferofrighttouseassets
When the economic benefit related to the transaction is probably to flow into the Company and the relevant revenue can be reliably measured, the revenue from transfer of the asset use right is determined as follows: the revenuefromtransferringuserightofassetsshallberecognizedbasedonthefollowingcircumstances:
(1) The amountof interest income is determinedbasedon the time and effective interestrate forothers to use themonetaryfundsoftheCompany.
(2) The amount of revenue from usage is determined based on the charging time and method as agreed in relevantcontractoragreement.
29.Governmentsubsidies
(1)Judgmentcriteriaandaccountingmethodforgovernmentsubsidiesrelatedtoassets
Set off the book value of related assets or be recognized as deferred income. Government subsidies related to
assets are recognized as deferred income to be evenly distributed over the useful lives of the relevant assets and
shallbe recorded in currentprofitor loss by stages in a reasonableandsystematic manner.Governmentsubsidies measuredinnominalamounts,aredirectlyincludedincurrentprofitsandlosses.
Where relevant assets are sold, transferred, scraped or damaged before the end of their lives, balance of the unallocateddeferredincomeistransferredtothecurrentprofitandlossonassetdisposal.
(2)Judgmentcriteriaandaccountingmethodforgovernmentsubsidiesrelatedtoincome
1) Tobe usedas compensationfor futurecosts,expensesor lossesare recognizedas deferredincome and are recorded in current profits and losses or used to write off the related costs where the relevant costs, expenses or lossesarerecognized.
2) To be used to compensate the related costs, expenses or losses incurred by the Company are directly includedincurrentprofitandlossorusedtowriteofftherelatedcosts.
3) Accounting treatment will be conducted for government subsidies that at the same time include those associated with assets and income by different parts: if it is difficult to distinguish, they will be deemed as governmentsubsidiesassociatedwithincome.
30. Deferredincometaxassetsanddeferredincometaxliabilities
Deferred income tax assets are recognized for deductible temporary differences to the extent that it shall not exceedthetaxableincomeprobablyobtainedinfutureperiodtobeagainstthedeductibletemporarydifference. Taxabletemporarydifferencesarerecognizedasdeferredtaxliabilitiesexceptinspecialcircumstances.
Special circumstances in which deferred assets or deferred tax liabilities cannot be recognized include: the initial recognition of goodwill; other transactions or matters excluding business combinations, which affect neither accountingprofitsnorthetaxableincome(ordeductiblelosses)whenoccurred.
WhentheCompanyhasthestatutoryrightto dosettlementwith thenetamounts,andhastheintentiontodosoor the recovery of assets and the settlement of liabilities are achieved simultaneously,the Company shall present its current income tax assets and current income tax liabilities at the net amounts as the result of one offsetting another.
When the Company has the legal right for netting of current income tax assets and current income tax liabilities and the income tax assets and income tax liabilities are related to the income tax levied on the same taxpayer by the same tax administrative department or are related to different taxpayers but, within each future period of reversal of important income tax assets and income tax liabilities, the taxpayers involved intend to settle current income tax assets and currentincome tax liabilities or acquire assets and liquidate liabilities at the same time, the Company'sincometaxassetsandincometaxliabilitiesshallbepresentedatthenetamountaftertheoffset.
31.Lease
(1)Accountingtreatmentofoperatinglease
1.Accountingtreatmentofassetsleased
The rental fees paid for the asset leased by the Company will be amortized over the entire lease term without deducting rent-free period according to the straight-line method and included in the expenses for the current period. The initial direct costs related to the lease transactions paid by the Company are recorded in the current expenses.
When the lessor bears the lease related expenses which shall be undertook by the Company, the Company shall deduct this part of the expense from the rent and amortize the net amount over the lease term and charge into currentcostsorexpenses.
2.Accountingtreatmentofleasing-outassets
LeasefeesreceivedbytheCompanyfromleasingassetsshallbeamortizedatstraight-linemethodover thewhole lease period including rent-free period, and shall be recognized as lease income. Initial direct costs relating to lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts are material,theyshallbecapitalizedandincludedinthe currentincomeon thesame basisastherecognitionoflease income.
WhentheCompany bearsthe leaserelatedexpenseswhich shouldbe undertookby the lessee,the Companyshall deductthispartofexpensefromtherentincome,andamortizethenetamountovertheleaseterm.
(2)Accountingtreatmentoffinancelease
32.Otherprincipalaccountingpoliciesandaccountingestimates
33.Changestoprincipalaccountingpoliciesandaccountingestimates
(1)Changesinprincipalaccountingpolicies
√Applicable□Notapplicable
||||
|-|-|-|
|Changesofaccountingpoliciesandreasons|Approvalprocedures|Note|
|TheAccountingStandardsforBusinessEnterprisesNo.16-GovernmentSubsidies(CaiKuai[2017]No.15)issuedandrevisedbytheMinistryofFinancehavebeenimplementedbyenterprisesadoptingtheAccountingStandardsforBusinessEnterprisessinceJune12,2017;therefore,forthegovernmentsubsidies on January 1, 2017, the prospective application method shall apply for their accountingtreatment; the Accounting Standards for Business Enterprises No.42 - Held-for-sale Non-currentAssetsandDisposalGroupandTerminationofOperationissuedbytheMinistryofFinancein2017have been implemented by enterprises adopting theAccounting Standards for Business Enterprises|N/A|Theabove-mentionedchangesinaccountingpolicieshavenoimpactsonthosefigures|

|||
|-|-|
|since May 28, 2017; therefore, for the held-for-sale non-current assets and disposal group andtermination of operation existing on the implementation date, the prospective application methodshallbeappliedforaccountingtreatment.OnDecember25,2017,theMinistryofFinanceissuedtheCircular of the Ministry of Finance on Revising the Format of General Financial Statements (CaiKuai [2017] No.30), which revised the format of general financial statements, and applied to thefinancialstatementsin2017andafterwards.|listedintheCompany’sfinancialstatements|

(2)Changesinprincipalaccountingestimates
□Applicable√Notapplicable
34.Other
VI. Taxation
1.Majortaxtypesandtaxrates
||||
|-|-|-|
|Taxes|Basisfortaxassessment|Taxrate|
|Valueaddedtax(VAT)|OutputVATiscalculatedbasedontaxablesalesrevenueandservicerevenuecalculatedinaccordancewithtaxlawsandVATpayableortaxablesalesrevenueshallbethedifferenceafterdeductingtheinputVATdeductibleinthesameperiod|5%,6%,11%and17%|
|Urbanmaintenanceandconstructiontax|LeviedbasedonVATpayable|7%|
|Enterpriseincometax|Leviedbasedontaxableincome|25%|
|Businesstax|Leviedbasedonthetaxablebusinessincome|5%|
|Educationsurtax|LeviedbasedonVATpayable|3%|
|Localeducationalsurcharge|LeviedbasedonVATpayable|2%|
|Housingpropertytax|Remainingvalueafterdeducting30%fromtheoriginalvalueofthehouse(includingtheoccupiedlandprice)andrentalincome|1.2%,12%|
|Landusetax|Landarea||

Disclosereasonsfordifferenttaxpayingbody
Nil
2.Taxpreference
3.Other
VII.Notestotheitemsoffinancialstatements
1.MonetaryFund
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Cashonhand|264,156.33|273,523.86|
|Bankdeposits|9,417,450.83|26,936,724.15|
|Total|9,681,607.16|27,210,248.01|

 Otherexplanation:Nil
Remark:therearenoamountsrestrictedforuseduetomortgageorfreeze,depositedinoverseasinstitutions,andhavepotentialrisk inrecovery.
2.Financialasstsmeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/losses
Nil
3.Derivativefinancialassets
□Applicable√Notapplicable
4.Notereceivable
Nil
5.Accountsreceivable
(1)Disclosureofaccountreceivablesbycategory
InRMB/CNY
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Endingbalance|||||Beginningbalance|||||
||Bookbalance||Provisionforbaddebt||Bookvalue|Bookbalance||Provisionforbaddebt||Bookvalue|
||Amount|Proportion|Amount|Provisionratio||Amount|Proportion|Amount|Provisionratio||
|Accountsreceivablewithsignificantsingleamountsubjecttoprovisionforbad||||||1,466,400.49|50.22%|1,466,400.49|100.00%||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|debtsonasinglebasis|||||||||||
|Accountsreceivablewithprovisionforbaddebtsbasedonportfolios|662,651.14|100.00%|68,520.25|10.34%|594,130.89|1,453,566.38|49.78%|763,121.66|52.50%|690,444.72|
|Total|662,651.14|100.00%|68,520.25|10.34%|594,130.89|2,919,966.87|100.00%|2,229,522.15|76.35%|690,444.72|

 Accountreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatperiod-end:
□Applicable√Notapplicable
Intheportfolio,accountsreceivablewiththeallowanceforbaddebtsmadeundertheaginganalysismethod:
√Applicable□Notapplicable
InRMB/CNY
|||||
|-|-|-|-|
|Aging|Endingbalance|||
||Accountsreceivable|Provisionforbaddebt|Provisionproportion|
|Within1year||||
|Subtotalwithin1year|572,263.34|||
|1-2years|785.00|39.25|5.00%|
|2-3years|18,633.00|2,794.95|15.00%|
|3-4years|3,397.00|849.25|25.00%|
|4-5years|5,472.00|2,736.00|50.00%|
|Over5years|62,100.80|62,100.80|100.00%|
|Total|662,651.14|68,520.25||

Explanationoncombinationdetermines:
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforaccountreceivable
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforaccountreceivable:
Nil
(2)Provision,reversalorrecoveryofprovisionforbaddebtsin2017
TheprovisionforbaddebtsamountstoRMB15,211.00in2017;re-versalorrecoveryofprovisionforbaddebtsamountstoRMB
Includingmajorre-versalorrecoveryofprovisionforbaddebtsamountstoRMBintheperiod:Nil
(3)Accountsreceivableactuallywrittenoffin2017
InRMB/CNY
|||
|-|-|
|Item|Written-offamount|
|Accountsreceivable|2,176,212.90|

 Includingmajorreceivableswritten-off:
InRMB/CNY
|||||||
|-|-|-|-|-|-|
|Nameofentity|Natureofaccountsreceivable|Written-offamount|Reasonsforwritten-off|Write-offproceduresperformed|Whetheritisduetotherelatedpartytransactions|
|Powersupplycompany|Roomandmealcharge|775,304.98|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|HMIT|Roomandmealcharge|464,563.21|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|SouthernCross|Roomandmealcharge|124,879.98|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|SanyaMunicipalPartyCommitteeReceptionOffice|Roomandmealcharge|101,652.32|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|HainanBaopingTravelAgency|Roomandmealcharge|46,798.32|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Other157companies|Roomandmealcharge|663,014.09|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Total|--|2,176,212.90|--|--|--|

Explanation:
In accordance with the “Plan of Underwriting Long-term Investment and Intercourse Funds”, deliberated and
approved by 12th extraordinary meeting of 8th BOD held on 25 October 2017 and the 3rd extraordinary general
shareholders meeting dated 10 November 2017, the long-term equity investment, which have totally provision
previsous year, and the financial assets availabel for sale and some of the creditors rights are been wirtten off in
the period. Meanwhile, part of the long-term unpayable are underwirtten. Among the account underwirtten, the long-term equtiy investment amounted as 9,716,374.26 Yuan, financial assets availabel for sale amounted as 5,000,000.00 Yuan, account receivable amounted as 2,176,212.90 Yuan, other receivables amounted as 78,067,592.72 Yuan, account payables amounted as 375,553.60 Yuan, account received in advance amounted as 251,057.21 Yuan and other payables amounted as 676,929.30. Non-operating revenue arising from the underwiritngamountedas1,303,540.11Yuan.
(4)Topfiveaccountsreceivableintermsofendingbalancecollectedbythedebtor
||||||
|-|-|-|-|-|
|Nameofentity|RelationshipwiththeCompany|Bookbalance(RMB)|Aging|Proportionintotalamountofaccountsreceivable(%)|
|Shanghai Hecheng InternationalTravelServiceCo.,Ltd.|Non-relatedparty|280,668.00|Within1year|42.36|
|LuoniushanCo.,Ltd.|Non-consolidatedrelatedparty|166,412.00|Within1year|25.11|
|GuangzhouInstituteofDesign|Non-relatedparty|38,980.00|Over5years|5.88|
|Tianjin Watermelon Tourism LimitedLiabilityCompany|Non-relatedparty|33,072.94|Within1year|4.99|
|Yilong Network InformationTechnologyCo.,Ltd.|Non-relatedparty|25,581.00|Within1year|3.86|
|Total||544,713.94||82.20|

 (5)Accountreceivablederecognitionduetofinancialassetstransfer
Nil
(6)Assetsandliabilitiesresultedbyaccountreceivabletransferandcontinuesinvolvement
Nil
6.Advancestosuppliers
(1)Advancestosupplierspresentedbyaging
InRMB/CNY
||||||
|-|-|-|-|-|
|Aging|Endingbalance||Beginningbalance||
||Amount|Proportion|Amount|Proportion|
|Within1year|49530.21|100.00%|58783.23|100.00%|
|1-2years|||||
|2-3years|||||

||||||
|-|-|-|-|-|
|Over3years|||||
|Total|49530.21|--|58783.23|--|

Explanationonreasonsoffailuretosettleonimportantadvancepaymentwithageoveroneyear:
Nil
(2)Topfiveadvancestosuppliersintermsoftheendingbalancecollectedbytheprepaidobject
||||
|-|-|-|
|Prepaidobject|Endingbalance(RMB)|Proportionintotalendingbalanceofadvancetosuppliers(%)|
|ChinaPostGroupCorporationSanyaBranch|10,800.00|21.80|
|SinopecPetrochemicalSalesCo.,Ltd.HainanSanyaBranch|10,098.85|20.39|
|HangzhouXiruanTechnologyCo.,Ltd.|10,062.90|20.32|
|SanyaDaily|9,729.73|19.64|
|SunshinePropertyInsuranceCo.,Ltd.HainanBranch|8,838.73|17.85|
|Total|49,530.21|100.00|

7.Interestreceivable
Nil
8.Dividendreceivable
Nil
9.Otherreceivables
(1)Otherreceivablesdisclosedbycategory
InRMB/CNY
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Endingbalance|||||Beginningbalance|||||
||Bookbalance||Provisionforbaddebt||Bookvalue|Bookbalance||Provisionforbaddebt||Bookvalue|
||Amount|Proportion|Amount|Provisionproportion||Amount|Proportion|Amount|Provisionproportion||
|Otherreceivableswithsignificantsingleamountand||||||77,363,143.31|98.85%|77,363,143.31|100.00%||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|individualallowanceforbaddebts|||||||||||
|Otherreceivableswithprovisionforbaddebtsbasedonportfolio|160,709.19|100.00%|21,147.90|13.16%|139,561.29|903,202.33|1.15%|729,098.81|80.72%|174,103.52|
|Total|160,709.19|100.00%|21,147.90|13.16%|139,561.29|78,266,345.64|100.00%|78,092,242.12|99.78%|174,103.52|

Otherreceivableswithinsignificantsingleamountbutwithindividualprovisionforbaddebtsatperiod-end
□Applicable√Notapplicable
Otherreceivableswithprovisionforbaddebtsmadebyaginganalysismethodinportfolios:
√Applicable□Notapplicable
InRMB/CNY
|||||
|-|-|-|-|
|Aging|Endingbalance|||
||Otherreceivables|Provisionforbaddebt|Provisionproportion|
|Within1year||||
|Subtotalwithin1year|139,111.29|||
|3-4years|600.00|150.00|25.00%|
|Over5years|20,997.90|20,997.90|100.00%|
|Total|150,709.19|21,147.90|14.03%|

 Explanationsoncombinationdetermine:
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforotheraccountreceivable:
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforotheraccountreceivable:
□Applicable√Notapplicable
(2)Provision,reversalorrecoveryofprovisionforbaddebtsin2017
Theprovisionforbaddebtsin2017amountedtoRMB-3,501.50.reversalorrecoveryofprovisionforbaddebtsamountedtoRMB Includingmajoramountreversalorrecovery:Nil
(3)Otherreceivablesactuallywrittenoffin2017
InRMB/CNY
|||
|-|-|
|Item|Written-offamount|
|Otherreceivables|78,067,592.72|

Includingmajorwritten-offotherreceivables:
InRMB/CNY
|||||||
|-|-|-|-|-|-|
|Nameofentity|Natureofotherreceivables|Written-offamount|Reasonsforwritten-off|Write-offproceduresperformed|Whetheritisduetotherelatedpartytransactions|
|HainanDadonghaiTourismCompany|Arrearsandlitigationadvances|54,767,945.15|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|Yes|
|94-98dividendsdistributedincash|DividendstoberecoveredduetopunishmentbytheChinaSecuritiesRegulatoryCommission|16,899,000.00|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|Yes|
|HMIT|Contractrevenueoriginallyfalselyincluded|4,145,704.16|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|Yes|
|GuangdongJinmaTourismCo.,Ltd.|Dividendsreceivableandinterestthereon|1,200,494.00|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Shareholderscustodianfees|Shareholderscustodianfees|350,000.00|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Other36companies|Consumptionamountsanddeposits|704,449.41|Irrecoverable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Total|--|78,067,592.72|--|--|--|

Explanation:Nil
(4)Classificationofotherreceivablesbythenatureofpayment
InRMB/CNY
||||
|-|-|-|
|NatureofPayment|BookbalanceasatDecember31,2017|BookbalanceasatJanuary1,2017|
|Currentaccountsbetweenoriginalrelatedentities||54,767,945.15|
|Contractprofitreceivable||4,145,704.16|
|Declareddividendsreceivable||16,899,000.00|
|Equitytransactionamount||1,200,494.00|
|Deposit|600.00|563,818.99|
|Custodyfeeadvances||350,000.00|
|Othercurrentaccounts||23,114.20|
|Pettycash|49,281.48|78,772.22|
|Waterandelectricityexpenses|70,809.03|164,165.49|
|Sharedamounts||30,500.00|
|Socialinsuranceandhousingprovidentfunds|40,018.68|37,831.43|
|Projectfunds||3,700.00|
|Depositforinvoices||1,300.00|
|Total|160,709.19|78,266,345.64|

 (5)Top5otherreceivablesatendingbalancebyarrearsparty
Nil
(6)Accountreceivablesrelatedtogovernmentsubsidies
Nil
(7)Otherreceivableforterminationofconfirmationduetothetransferoffinancialassets
Nil
(8)Theamountofassetsandliabilitiesthataretransferredotherreceivableandcontinuedtobeinvolved Nil
10.Inventories
WhethertheCompanyneedstocomplywithdisclosurerequirementofrealestateindustry
No
(1)Classificationofinventory
InRMB/CNY
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Provisionforpricedecline|Bookvalue|Bookbalance|Provisionforpricedecline|Bookvalue|
|Stockedmaterials|880,621.58|735,181.58|145,440.00|876,822.10|742,966.17|133,855.93|
|Stockcommodities|22,771.38|11,102.41|11,668.97|22,771.38|11,102.41|11,668.97|
|Foodandbeverage|45,640.74||45,640.74|52,660.42||52,660.42|
|Fuel|24,255.40||24,255.40|20,994.40||20,994.40|
|Total|973,289.10|746,283.99|227,005.11|973,248.30|754,068.58|219,179.72|

 DoestheCompanycomplywiththedisclosurerequirementof “InformationDisclosureGuidelinesofShenzhenStockExchange No.4– ListedCompaniesEngagedinSeedIndustryandPlantingBusiness” ornot
(2)Provisionforinventorydepreciation
InRMB/CNY
||||||||
|-|-|-|-|-|-|-|
|Categoryofinventories|Beginningbalance|Increasein2017||Decreasein2017||Endingbalance|
|||Provision|Others|Reversalorwrite-off|Others||
|Rawmaterials|742,966.17|||7,784.59||735,181.58|
|Stockcommodities|11,102.41|||||11,102.41|
|Total|754,068.58|||7,784.59||746,283.99|

 (3)Explanationoncapitalizationofborrowingcostsatendingbalanceofinventory
(4)Assetscompletedwithoutunsettlementfromconstructioncontractatperiod-end
Nil
11.Assetsheldforsale
Nil
12.Non-currentassetsmaturingwithinoneyear
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Long-termunamortizedexpensesamortizedwithinoneyear|1,173,597.68|584,369.42|
|Total|1,173,597.68|584,369.42|

 Otherexplanation:Hotelexteriorrepair,andtransformationofguestrooms,swimmingpoolsandothers
13.Othercurrentassets
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Prepaidenterpriseincometax|1,702,702.80|1,702,702.80|
|Inputtaxtobededucted|255,160.76|173,746.42|
|Total|1,957,863.56|1,876,449.22|

 Otherexplanation:nil
14.Available-for-sale-financial assets
(1)Available-for-salefinancialassets
InRMB/CNY
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Provisionforimpairment|Bookvalue|Bookbalance|Provisionforimpairment|Bookvalue|
|Available-for-saleequityinstruments:||||5,000,000.00|5,000,000.00||
|Measuredatcost||||5,000,000.00|5,000,000.00||
|Total||||5,000,000.00|5,000,000.00||

(2)Available-for-salefinancialassetsmeasuredatfairvalueatDecember31,2017
Nil
((((3333)))) Available-for-salefinancialassetsmeasuredatcostatDecember31,2017
InRMB/CNY
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Bookbalance||||Provisionforimpairment||||Shareholdingratiointheinvestee|Cashdividendin2017|
||Periodbeginning|Increasein2017|Decreasein2017|Peri|Periodbeginning|Increasein2017|Decreasein2017|Period-end|||

||||||||
|-|-|-|-|-|-|-|
||||od-end||||
|ShenzhenDifuInvestmentDevelopmentCo.,Ltd.|5,000,000.00|5,000,000.00||5,000,000.00|5,000,000.00|14.28%|
|Total|5,000,000.00|5,000,000.00||5,000,000.00|5,000,000.00|--|

(4)ChangesofimpairmentinPeriod
Nil
(5)wherethe fairvalueofequityinstrumentsavailableforsaledrops significantlyornotcontemporarilyat period-end,withoutimpairmentprovisionismade
Nil
15.Investmentheld-to-maturity
(1)Detailsofinvestmentheld-to-maturity
InRMB/CNY
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Provisionforimpairment|Bookvalue|Bookbalance|v|Bookvalue|
|HubeiJingshaDadonghaiClubCo.,Ltd.||||4,566,207.42|4,566,207.42||
|SanyaShun’anEntertainmentCenter||||5,150,166.84|5,150,166.84||
|Total||||9,716,374.26|9,716,374.26||

(2)Majorinvestmentheld-to-maturityatperiod-end
nil
(3)Investmentheld-to-maturityre-classifyintheperiod
Otherexplanation
In accordance with the “Plan of Underwriting Long-term Investment and Intercourse Funds”, deliberated and approved by 12th extraordinary meeting of 8th BOD held on 25 October 2017 and the 3rd extraordinary general shareholders meeting dated 10 November2017,thelong-termequityinvestment,whichhavetotallyprovisionprevisousyear,andthefinancialassetsavailabelfor saleandsomeofthecreditorsrightsarebeenwirttenoffintheperiod.Meanwhile,partofthelong-termunpayableareunderwirtten. Amongtheaccountunderwirtten,thelong-termequtiyinvestmentamountedas9,716,374.26Yuan,financialassetsavailabelforsale amounted as 5,000,000.00Yuan, account receivable amounted as 2,176,212.90Yuan, other receivablesamounted as 78,067,592.72 Yuan, account payables amounted as 375,553.60 Yuan, account received in advance amounted as 251,057.21 Yuan and other payablesamountedas676,929.30.Non-operatingrevenuearisingfromtheunderwiritngamountedas1,303,540.11Yuan.
16.Long-termreceivables
Nil
17.Long-termequityinvestment
Nil
18.Investmentproperty
(1)Investmentpropertiesmeasuredatcost
√Applicable□Notapplicable
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Buildingsandconstructions|Landuserights|Constructioninprocess|Total|
|1.Originalbookvalue|||||
|1.Beginningbalance|18,856,504.44|5,662,740.59||24,519,245.03|
|2.Increasein2017|||||
|(1)Purchase|||||
|(2)Transferfrominventories/fixedassets/constructioninprocess|||||
|(3)Increasefrom|||||

|||||
|-|-|-|-|
|businesscombinations||||
|3.Decreasein2017||||
|(1)Disposal||||
|(2)Othertransfer-out||||
|4.Endingbalance|18,856,504.44|5,662,740.59|24,519,245.03|
|II.Accumulateddepreciationandaccumulatedamortization||||
|1.Beginningbalance|9,771,216.42|2,107,046.45|11,878,262.87|
|2.Increasein2017|418,183.56|56,340.00|474,523.56|
|(1)Provisionoramortization|418,183.56|56,340.00|474,523.56|
|3.Decreasein2017||||
|(1)Disposal||||
|(2)Othertransfer-out||||
|4.Endingbalance|10,189,399.98|2,163,386.45|12,352,786.43|
|III.Provisionforimpairment||||
|1.Beginningbalance|1,404,400.47|1,903,054.14|3,307,454.61|
|2.Increasein2017||||
|(1)Provision||||
|3.Decreasein2017||||
|(1)Disposal||||
|(2)Other||||

|||||
|-|-|-|-|
|transfer-out||||
|4.Endingbalance|1,404,400.47|1,903,054.14|3,307,454.61|
|IV.Bookvalue||||
|1.Closingbookvalue|7,262,703.99|1,596,300.00|8,859,003.99|
|2.Openingbookvalue|7,680,887.55|1,652,640.00|9,333,527.55|

(2)Investmentrealestatemeasuredbyfairvalue
□Applicable√Notapplicable
(3)Investmentrealestatewithoutpropertycertificationheld
Nil
19.Fixedassets
((((1111)))) Fixedassetsdetails
InRMB/CNY
||||||||
|-|-|-|-|-|-|-|
|Item|Housesandbuildings|Mechanicalequipment|Transportationequipment|Electronicequipment|Otherequipment|Total|
|I.Originalbookvalue:|||||||
|1.Beginningbalance|136,564,783.15|13,141,471.00|2,091,322.77|2,585,268.92|1,703,389.45|156,086,235.29|
|2.Increasein2017|224,718.67|138,461.54|253,752.14|258,270.53|623,373.72|1,498,576.60|
|(1)Purchase|224,718.67|138,461.54|253,752.14|258,270.53|623,373.72|1,498,576.60|
|(2)Transferfromconstructioninprocess|||||||
|(3)Increasefrombusinesscombinations|||||||
|3.Decreasein2017||||220,096.00|266,875.00|486,971.00|
|(1)Disposalorscrap||||220,096.00|266,875.00|486,971.00|
|4.Endingbalance|136,789,501.82|13,279,932.54|2,345,074.91|2,623,443.45|2,059,888.17|157,097,840.89|
|II.Accumulateddepreciation|||||||

||||||||
|-|-|-|-|-|-|-|
|1.Beginningbalance|68,185,246.92|9,092,676.08|1,252,935.70|2,111,146.45|1,447,909.80|82,089,914.95|
|2.Increasein2017|2,135,104.65|278,374.63|162,863.22|110,942.10|88,247.65|2,775,532.25|
|(1)Provision|2,135,104.65|278,374.63|162,863.22|110,942.10|88,247.65|2,775,532.25|
|3.Decreasein2017||||209,312.76|247,641.81|456,954.57|
|(1)Disposalorscrap||||209,312.76|247,641.81|456,954.57|
|4.Endingbalance|70,320,351.57|9,371,050.71|1,415,798.92|2,012,775.79|1,288,515.64|84,408,492.63|
|III.Provisionforimpairment|||||||
|1.Beginningbalance|31,072,788.17|2,527,851.26||||33,600,639.43|
|2.Increasein2017|||||||
|(1)Provision|||||||
|3.Decreasein2017|||||||
|(1)Disposalorscrap|||||||
|4.Endingbalance|31,072,788.17|2,527,851.26||||33,600,639.43|
|IV.Bookvalue|||||||
|1.Endingbookvalue|35,396,362.08|1,381,030.57|929,275.99|610,667.66|771,372.53|39,088,708.83|
|2.Openingbookvalue|37,306,748.06|1,520,943.66|838,387.07|474,122.47|255,479.65|40,395,680.91|

(2)Temporarilyidlefixedassets
Nil
(3)Fixedassetsacquiredbyfinancinglease
Nil
(4)Fixedassetsacquiredbyoperatinglease
Nil
(5)Certificateoftitleun-completed
Nil
20.Constructioninprogress
(1)Constructioninprogress
InRMB/CNY
||||||||
|-|-|-|-|-|-|-|
|Item|Endingbalance|||Beginningbalance|||
||Bookbalance|Impairmentprovision|Bookvalue|Bookbalance|Impairmentprovision|Bookvalue|
|CFLOORROOMRENOVATION|||||||
|Villarenovation|||||||
|Swimmingpoolrenovation|||||||
|C/FSIGHTSEEINGELEVATORSHAFTPROJECT|||||||
|High-pressuremeteringcabinet|||||||
|A/Ffirestairsrenovationproject|||||||

(2)Majorconstructioninprogresschangedintheperiod
InRMB/CNY
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ItemName|Budget|Beginningbalance|Increasein2017|Transferintofixedassetsin2017|Transferintolong-termdeferredexpensesin2017|Endingbalance|Proportionofaccumulativeprojectinvestmentsinthebudget(%)|Projectprogress|Accumulatedcapitalizationamountofinterest|Including:capitalizationamountoftheinterestin2017|Capitalizationrateoftheinterestof2017|Sourcesoffunds|
|CFLOORROOMRENOVATION|||961,729.74||961,729.74|||100%||||Other|

||||||||
|-|-|-|-|-|-|-|
|Villarenovation|1,598,774.11||1,598,774.11||100%|Other|
|Swimmingpoolrenovation|299,959.04||299,959.04||100%|Other|
|C/FSIGHTSEEINGELEVATORSHAFTPROJECT|166,485.00|166,485.00|||100%|Other|
|High-pressuremeteringcabinet|46,800.00|46,800.00|||100%|Other|
|A/Ffirestairsrenovationproject|68,542.72||68,542.72||100%|Other|
|Total|3,142,290.61|213,285.00|2,929,005.61|--|--|--|

 (3)Theprovisionforimpairmentofconstructioninprogress
Nil
21.Engineeringmaterial
Nil
22.Disposaloffixedassets
Nil
23.Productivebiologicalasset
(1)Measuredbycost
□Applicable√Notapplicable
(2)Measuredbyfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Intangibleassets
(1)Intangibleassets
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Landuserights|Patentright|Non-patentstechnology|Total|
|I.Originalbookvalue|||||
|1.Beginningbalance|81,653,137.15|||81,653,137.15|
|2.Increasein2017|||||
|(1)Purchase|||||
|(2)Internalresearchanddevelopment|||||
|(3)Increasefrombusinesscombinations|||||
|3.Decreasein2017|||||
|(1)Disposal|||||
|4.Endingbalance|81,653,137.15|||81,653,137.15|
|II.Accumulatedamortization|||||
|1.Beginningbalance|30,382,276.95|||30,382,276.95|
|2.Increasein2017|812,387.16|||812,387.16|
|(1)Provision|812,387.16|||812,387.16|
|3.Decreasein2017|||||
|(1)Disposal|||||
|4.Endingbalance|31,194,664.11|||31,194,664.11|
|III.Provisionforimpairment|||||
|1.Beginningbalance|27,440,836.84|||27,440,836.84|
|2.Increasein2017|||||
|(1)Provision|||||

||||
|-|-|-|
|3.Decreasein2017|||
|(1)Disposal|||
|4.Endingbalance|27,440,836.84|27,440,836.84|
|IV.Bookvalue|||
|1.Endingbookvalue|23,017,636.20|23,017,636.20|
|2.Openingbookvalue|23,830,023.36|23,830,023.36|

RatiooftheintangibleassetsfrominternalR&Dinbalanceofintangibleassetsatperiod-endwas.
(2)Landuserightswithoutcertificateofownership
Nil
26.Developmentexpenditure
Nil
27.Goodwill
(1)Originalbookvalueofgoodwill
Nil
(2)Goodwilldepreciationreserves
Nil
28.Long-termdeferredexpenses
InRMB/CNY
|||||||
|-|-|-|-|-|-|
|Item|Beginningbalance|Increasein2017|Amortizationin2017|Otherdecreased|Endingbalance|
|Hotelexteriordecoration|1,071,343.97|584,369.42|584,369.42|584,369.42|486,974.55|
|Firestairsrenovation||68,542.72|5,711.88|17,135.68|45,695.16|
|Swimmingpoolrenovation||299,959.04|14,997.95|59,991.81|224,969.28|
|CFLOORROOMRENOVATION||961,729.74|48,086.48|192,345.95|721,297.31|
|Villarenovation||1,598,774.11|79,938.71|319,754.82|1,199,080.58|

|||||||
|-|-|-|-|-|-|
|Total|1,071,343.97|3,513,375.03|733,104.44|1,173,597.68|2,678,016.88|

 Otherexplanation:Nil
29.Deferredincometaxassetsanddeferredincometaxliabilities
Nil
30.Othernon-currentassets
Nil
31.Short-termloans
(1)Typesofshort-termloans
Nil
(2)Overdueshort-termloanswithoutpayment
Nil
32.Financialliabilitymeasuredbyfairvalueandwithitsvariationreckonedintocurrentgains/losses
Nil无
33.Derivativefinancialliability
□Applicable√Notapplicable
34.Notespayable
Nil
35.Accountspayable
(1)Presentationofaccountspayablebyaging
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Within1year(inclusive)|2,026,871.12|856,048.21|
|1-2years(including2years)||199,317.78|
|2-3years(including3years)||334,316.59|
|Over3years|134,301.14|577,882.93|

||||
|-|-|-|
|Total|2,161,172.26|1,967,565.51|

 (2)Majorpayableswithoveroneyearaccountage
|||||||
|-|-|-|-|-|-|
|Companies|Nature|Amountwritten-off|Reasonsforwritten-off|Write-offproceduresperformed|Whetheritisduetotherelatedpartytransactions|
|FeiyingAdvertisementCompany|Advertisingfees|70,000.00|Unpayable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|YuexinTechnologyCompanyinTianheDistrict,Guangzhou|Centralairconditioningrepaircosts|56,204.00|Un-payable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|HainanLvlengEnvironmentalEngineeringCo.,Ltd.|Centralairconditioningrepaircosts|40,000.00|Un-payable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|SanyaKaidaElectricalInstallationEngineeringCompany|Airconditioningrepaircosts|16,262.00|Un-payable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|GuangzhouHuashangSuigangEquipmentCo.,Ltd.|Costsofpurchaseofgoods|15,622.50|Un-payable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Other50sumsofamountswrittenoff|Costsofagentsalesofcommodities|177,465.10|Un-payable|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Total||375,553.60||||

In accordance with the “Plan of Underwriting Long-term Investment and Intercourse Funds”, deliberated and approved by 12th extraordinary meeting of 8th BOD held on 25 October 2017 and the 3rd extraordinary general shareholders meeting dated 10 November 2017, the long-term equity investment, which have totally provision previsous year, and the financial assets availabel for sale and some of the creditors rights are been wirtten off in the period. Meanwhile, part of the long-term unpayable are underwirtten. Among the account underwirtten, the long-term equtiy investment amounted as 9,716,374.26 Yuan, financial assets availabel for sale amounted as 5,000,000.00 Yuan, account receivable amounted as 2,176,212.90 Yuan, other receivables amounted as 78,067,592.72 Yuan, account payables amounted as 375,553.60 Yuan, account received in advance amounted as 251,057.21 Yuan and other payables amounted as 676,929.30. Non-operating revenue arising from the underwiritngamountedas1,303,540.11Yuan.
Hainan Dongfang Guoxin Law Firm issued the Legal Opinion on Time Limitation for Proceedings on Part of Accounts Payable of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. in respect of the above-mentioned written-off payables, in which the law firm believed that the above 201 sums of payables have exceeded the statutorytimelimitations,andtherelevantcreditorshavelosttheirdebtrecoveryrightandtherighttowin. 36.Advancesfromcustomers
(1)Presentationofadvancesfromcustomers
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Roomandmealcharge|1,271,174.12|601,642.54|
|Total|1,271,174.12|601,642.54|

 (2)Significantadvancesfromcustomerswithagingmorethanoneyear
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Reasonsforfailureofrepaymentorcarry-forward|
|GuangzhouNanbuHolidayInternationalTravelServiceCo.,Ltd.SanyaBranch|101,244.00|Unsettled|
|PEGASZHENGQINGBO|32,243.02|Unsettled|
|HainanQiongzhongEcologicalInvestmentGuaranteeCo.,Ltd.|27,519.00|Unsettled|
|SanyaPublicSecurityFireBrigade|19,420.88|Unsettled|
|TianhongGroupWuzhizhouProjectDepartment|9,894.00|Unsettled|
|Total|190,320.90|--|

(2)Projectssettlementwithoutunfinishedatperiod-endfromconstructioncontract
Detailsofwritten-offadvancesfromcustomers:
|||||||
|-|-|-|-|-|-|
|Nameofentity|Natureofaccountsreceivable|Written-offamount(RMB)|Reasonsforwritten-off|Write-offproceduresperformed|Whetheritisduetotherelatedpartytransactions|
|BeijingHualuXinchenManagementConsultantsLimited|Roomandmealcharge|30,540.00|Roomchargereceived/notpressingforpayment|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|HaikouTourismCompanySanya|Roomandmealcharge|16,563.00|Roomchargedoverpaid/notpressing|Approvaloftheboardofdirectorsandthegeneral|No|

|||||||
|-|-|-|-|-|-|
|Branch|||forpayment|meetingofshareholders||
|TiangeMedia|Roomandmealcharge|16,136.00|Roomchargereceived/notpressingforpayment|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|OuXin’en|Roomandmealcharge|9,900.00|Roomchargedoverpaid/notpressingforpayment|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|HuangMeijun|Roomandmealcharge|9,030.00|Roomchargereceived/notpressingforpayment|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Other109companies|Roomandmealchargeetc.|168,888.21|Roomchargereceived/notpressingforpayment|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|||251,057.21||||

37.Employeecompensationpayable
(1)Classificationofemployeecompensationpayable
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increasein2017|Decreasein2017|Endingbalance|
|I.Short-termcompensation|2,148,514.36|11,327,332.60|11,016,831.03|2,459,015.93|
|II.Post-employmentbenefits-definedcontributionplans||959,762.24|959,762.24||
|Total|2,148,514.36|12,287,094.84|11,976,593.27|2,459,015.93|

 (2)Short-termcompensation
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increasein2017|Decreasein2017|Endingbalance|
|1.Salary,bonus,allowanceandsubsidies|1,299,545.99|8,991,213.87|8,817,187.04|1,473,572.82|
|2.Employeewelfare||1,435,569.87|1,435,569.87||
|3.Socialinsurancepremiums||446,351.07|446,351.07||
|Including:Medicalinsurancepremiums||400,502.18|400,502.18||
|Work-relatedinjuryinsurancepremiums||20,172.08|20,172.08||

||||||
|-|-|-|-|-|
|Maternityinsurancepremiums||25,676.81|25,676.81||
|4.Housingprovidentfunds||139,505.32|139,505.32||
|5.Laborunionfundsandemployeeeducationfunds|848,968.37|314,692.47|178,217.73|985,443.11|
|Total|2,148,514.36|11,327,332.60|11,016,831.03|2,459,015.93|

 (3)Presentationofdefinedcontributionplan
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increasein2017|Decreasein2017|Endingbalance|
|1.Basicendowmentpremiums||932,432.88|932,432.88||
|2.Unemploymentinsurancepremium||27,329.36|27,329.36||
|Total||959,762.24|959,762.24||

Otherexplanation:nil
38.Taxespayable
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Valueaddedtax(VAT)|222,989.34|228,923.41|
|Individualincometax||1.14|
|Urbanmaintenanceandconstructiontax|7,782.70|6,505.86|
|Housingpropertytax|194,101.74|234,032.26|
|Landusetax|108,590.91|108,588.06|
|Educationsurtax|3,335.43|2,788.22|
|Localeducationalsurcharge|2,223.64|1,858.82|
|Stamptax||246.50|
|Total|539,023.76|582,944.27|

 Otherexplanation:nil
39.Interestpayable
Nil
40.Dividendpayable
Nil
41.Otherpayables
(1)Presentationofotherpayablesbynature
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|Staffdormitoryrentalfees,etc.|742,742.74|1,001,405.96|
|Securitydeposit|711,046.99|662,541.29|
|Auditfees|285,003.21|285,003.21|
|Qualityguaranteedepositforprojects|193,066.10|230,096.75|
|Employeedeposits|166,200.90|350,600.90|
|Projectfunds|162,569.78|317,277.05|
|Fundscollectedandremitted|100,036.07|139,319.74|
|Pettycash|28,446.80||
|Electricchargeswithheld|20,700.00||
|Individualcurrentamounts|1,364.00|73,752.85|
|FinesandconfiscatedamountforillegaloperationoftheCompany'sstocks||19,810,000.00|
|Membershipexpensesofdirectorsandsupervisors||214,506.98|
|Total|2,411,176.59|23,084,504.73|

 (2)Othersignificantpayableswithagingofoveroneyear
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Reasonfornon-repaymentorcarry-over|
|HongKongDeloitte&ToucheLLP|285,003.21|Reasonfornon-repayment|
|SanyaShuxinHousingWaterproofEngineeringLimited|170,000.00|Reasonfornon-repayment|
|ChinaBuildingDecorationCompanyHainanBranch|161,111.03|Reasonfornon-repayment|
|Total|616,114.24|--|

Otherexplanation
Detailsofwritten-offotherpayables:
|||||||
|-|-|-|-|-|-|
|Nameofentity|Natureofotherpayables|Written-offamount9RMB)|Reasonsforwritten-off|Write-offproceduresperformed|Whetheritisduetotherelatedpartytransactions|
|Automaticfirealarmlinkage|Ruledtoassume|107,589.46|Unabletobepaiddue|Approvaloftheboardof|No|

|||||||
|-|-|-|-|-|-|
|systemengineering|severallitigationfees||tolong-termaging|directorsandthegeneralmeetingofshareholders||
|Litigationcosts|Ruledtoassumeseverallitigationfees|104,554.00|Unabletobepaidduetolong-termaging|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|HainanTiangeLawFirm(HuangWenmei)|Agreedlitigationagent|100,680.60|Unabletobepaidduetolong-termaging|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Binhaiholidayvilla|Currentaccountfrom/topriorrelatedparties|83,558.94|Unabletobepaidduetolong-termaging|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|Yes|
|SuGuohua|Directorsallowance|57,680.00|Unabletobepaidduetolong-termaging|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|Yes|
|Other27companies|Consignment|222,866.30|Unabletobepaidduetolong-termaging|Approvaloftheboardofdirectorsandthegeneralmeetingofshareholders|No|
|Total||676,929.30||||

Otherexplanation:nil
42.Liabilityheldforsale
Nil
43.Non-currentliabilityduewithinoneyear
Nil
44.Othercurrentliability
Nil
45.Long-termloans
Nil
46.Bondpayable
Nil
47.Long-termaccountpayable
Nil
48.Long-termemployeepayable
Nil
49.Specialpayable
Nil
50.Estimatedliabilities
InRMB/CNY
|||||
|-|-|-|-|
|Item|Endingbalance(RMB)|Beginningbalance|Reasons|
|Other|1,489,685.04|1,489,685.04|Provisionsforarrearsofelectricitytariffs|
|Total|1,489,685.04|1,489,685.04|--|

Otherexplanation,includingimportantassumptionsandestimationforthemajoraccrualliability:
OnMay26,2016,theCompanyreceivedlawyer’sletterofHainanYunfanlawfirmwhichisentrustedbyHainanPower GridCo., LTDSanyaPowerSupplyBureau(hereinafter referred toasthe"Sanya PowerSupplyBureau"),theletter claimsthatSanyaPowerSupplyBureaufoundthattheCompany’ssubsidiarySouthChinaGrandHotelofHainanDadonghaiTourismCenter(Holdings)Co.,Ltd’s the amount of CT is different with its marketing management system record. The inconformity time is July, 2006, and thehotel’sCTischangingonApril,2016.Therefore,undercountedelectricityconsumptionamountis10,313,373.00kilowatt-hours,and estimatedcostis7,200,165.75Yuanasvariouselectricitypricesandcharges.
According to the file “Law Advisory Opinion about Retroactive Power (Charge) Dispute between South China Grand Hotel and Sanya Power Supply Bureau” issued byBeijing Junhe(Haikou) Law Firm at December 20, 2016, which claims that Sanya Power Supply Bureau has responsibility for CT to purchase, install, enseal, unseal and change, therefore, the responsibility of the guilty party for undercounted electricity consumption of South China Grand Hotel is Sanya Power Supply Bureau.According to the one hundredandthirty-fiveitemof“GeneralRuleofCivilLaw”,thisitemclaimsthatlimitationofactionistwoyearsifaccuserrequestpeople'scourt’sprotection,exceptsituationsprovidedbylaw.TheCompanyhaswithheldtheundercountedelectricity consumption costin2016whichisabout1,489,685.04YuanduringtheperiodfromApril,2014toApril,2016.
51.Deferredincome
Nil
52.Othernon-currentliability
Nil
53.Sharecapital
In RMB/CNY
|||||||||
|-|-|-|-|-|-|-|-|
||Beginningbalance|Changesin2017("+"forincreaseand"-"fordecrease)|||||Endingbalance|
|||Issuanceofnewshares|Sharedonation|Publicreservetransferredtoshares|Others|Sub-total||
|Totalshares|364,100,000.00||||||364,100,000.00|

 Otherexplanation:nil
54.Otherequityinstrument
Nil
55.Capitalreserves
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Beginningbalance|Increasein2017|Decreasein2017|Endingbalance|
|Capitalpremium(sharepremium)|33,336,215.58|||33,336,215.58|
|Othercapitalreserves|20,806,634.43|||20,806,634.43|
|Total|54,142,850.01|||54,142,850.01|

 Otherexplanation,includingchangesintheperiodandreasons:nil
56.Treasurystock
Nil
57.Otherconsolidatedincome
Nil
58.Reasonablereserve
Nil
59.Surplusreserves
Nil
60.Undistributedprofits
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Undistributedprofitsattheendoflastyearbeforeadjustment|-343,966,434.57|-341,305,382.08|
|Undistributedprofitsatthebeginningoftheyearafteradjustment|-343,966,434.57|-341,305,382.08|
|Plus:netprofitattributabletoownersoftheparentcompanyincurrentperiod|2,858,998.66|-2,661,052.49|
|Undistributedprofitasattheendoftheyear|-341,107,435.91|-343,966,434.57|

 Detailsaboutadjustingtheretainedprofitsatthebeginningoftheperiod:
1)Theretroactive adjustmentstoAccountingStandardsforBusinessEnterprisesanditsrelevantnewregulationsaffecttheretained profitsatthebeginningoftheperiodamountingto0Yuan.
2)Thechangesinaccountingpoliciesaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan.
3)Themajoraccountingerrorcorrectionaffectstheretainedprofitsatthebeginningoftheperiodamountingto0Yuan
4)Mergescopechangescausedbythesamecontrolaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan. 5)Otheradjustmentsaffecttheretainedprofitsatthebeginningoftheperiodamountingto0Yuan
61.Operatingincomeandoperatingcosts
InRMB/CNY
||||||
|-|-|-|-|-|
|Item|Year2017||Year2016||
||Income|Cost|Income|Cost|
|Primarybusiness|24,691,592.86|10,665,396.03|19,117,791.52|9,693,974.20|
|Otherbusinesses|3,214,971.37|474,523.56|2,591,091.99|564,466.42|
|Total|27,906,564.23|11,139,919.59|21,708,883.51|10,258,440.62|

 62.Taxesandsurcharges
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Urbanmaintenanceandconstructiontax|68,334.72|72,627.03|
|Educationsurtax|28,958.58|31,080.92|
|Housingpropertytax|872,805.50|482,833.44|
|Landusetax|434,366.47|289,572.87|
|Vehicleandvesselusetax|7,680.00||
|Stamptax|2,760.60|11,718.17|
|Businesstax||503,486.90|
|Localeducationalsurcharge|19,786.33|20,720.64|

||||
|-|-|-|
|Total|1,434,692.20|1,412,039.97|

 Otherexplanation:
63.Salesexpenses
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Employeecompensation|3,783,152.25|3,278,439.52|
|Depreciation|493,761.97|573,232.60|
|Repaircharges|205,614.06|157,060.17|
|Waterandelectricityexpenses|166,983.08|188,186.48|
|Otherexpenses|474,992.19|734,414.49|
|Other|5,124,503.55|4,931,333.26|

 Otherexplanation:nil
64.Administrativeexpenses
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Salariesandwelfares|5,402,093.17|4,580,727.09|
|Amortizationofsiteuserights|812,387.16|812,387.16|
|Entertainmentexpenses|715,630.35|738,590.98|
|Socialinsurancepremium|610,092.44|525,680.35|
|Agencyfees|400,000.00|404,696.00|
|Announcingfees|328,688.00|240,345.40|
|Depreciation|271,883.34|270,946.41|
|Travellingexpenses|206,199.69|212,223.67|
|Disabledsecurityfunds|36,433.27||
|Membershipexpensesofdirectorsandsupervisors|9,535.00|312,947.50|
|Otherexpenses|872,583.41|853,184.15|
|Taxes||422,907.20|
|Total|9,665,525.83|9,374,635.91|

 Otherexplanation:nil
65.Financialexpenses
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Interestexpense|||
|Less:interestincome|291,701.13|275,296.73|
|Gainsorlossesonexchange|||
|Handlingcharges|42,524.95|81,651.44|
|Total|-249,176.18|-193,645.29|

 Otherexplanation:nil
66.Lossesonassetsimpairment
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|I.Lossesonbaddebt|11,709.50|-1,230.99|
|Total|11,709.50|-1,230.99|

 Otherexplanation:nil
67.Gainsfromfairvaluechanges
Nil
68.Investmentincome
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Investmentincomeacquiredfromdisposaloftheavailable-for-salefinancialassetsandothers||429,753.50|
|Incomefromothercreditors'investment|805,825.24|961,165.05|
|Total|805,825.24|1,390,918.55|

 Otherexplaination:nil
69.Incomefromassetsdisposal
Nil
70.Otherincome
Nil
71.Non-operatingincome
InRMB/CNY
|||||
|-|-|-|-|
|Item|Year2017|Year2016|Amountincludedinnon-recurringprofitandlossinthecurrentperiod|
|Compensationincome||64,926.00||
|Debtwrite-offs|1,303,540.11||1,303,540.11|
|Other|260.00|4,680.00|260.00|
|Total|1,303,800.11|69,606.00|1,303,800.11|

 Governmentsubsidiesreckonedintocurrentgains/losses:nil
72.Non-operatingexpenses
InRMB/CNY
|||||
|-|-|-|-|
|Item|Year2017|Year2016|Amountincludedinnon-recurringprofitandlossinthecurrentperiod|
|Totallossesfromdisposalofnon-currentassets|30,016.43|48,887.07||
|Including:lossesfromdisposaloffixedassets|30,016.43|48,887.07|30,016.43|
|Total|30,016.43|48,887.07|30,016.43|

 Otherexplanation:nil
73.Incometaxexpenses
(1)Statementofincometaxexpenses
Nil
(2)Adjustmentonaccountingprofitandincometaxexpenses
InRMB/CNY
|||
|-|-|
|Item|CurrentPeriod|
|Totalprofit|2,858,998.66|

 Otherexplanation:nil
74.Othercomprehensiveincome
SeeNote
75.Notestoitemsofthecashflowstatement
((((1111)))) Cashreceivedfromotheroperatingactivities
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Water,electricalandgasfeescollected|684,442.21||
|Interestincome|291,701.13|275,296.73|
|Securitydepositandrentforleaseofsite|75,000.00|244,000.00|
|Agentcollectionofsocialsecurityinsurancepremiums|15,515.52|11,615.09|
|Incomefromcompensationforarticlesinrooms||8.00|
|Others|15,828.00|53,528.69|
|Total|1,082,486.86|584,448.51|

 Explanation:nil
(2)Cashpaidforotheroperatingactivities
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Socialintercoursefees|730,464.44|641,721.21|
|PaidfinesforillegaloperationoftheCompany'sstocks|500,000.00||
|Intermediaryauditcharges|400,000.00|404,696.00|
|Announcingfees|220,000.00|240,345.40|
|Travellingexpenses|181,369.69|205,293.67|
|Promotionfee|75,167.49|116,318.27|
|CostsoflistingontheShenzhenStockExchange|80,000.00|80,000.00|
|Repaircharges|291,287.80|79,354.40|
|Fuel,electricity,gascharges|274,909.12|62,767.95|
|Officeexpenses|11,553.14|31,066.70|
|Postscosts|27,493.61|30,171.22|
|Financialexpenses|42,524.95|81,651.44|
|Propertyinsurancepremiums|49,740.21||
|Membershipexpensesofdirectorsandsupervisors|9,535.00|12,947.50|
|Priceadjustmentfunds||156,797.00|
|Laborinsurancepremiums,housingprovidentfundpaidbyindividuals|592,554.72|553,990.56|
|Otherexpenses|388,168.08|274,262.27|
|Total|3,874,768.25|2,971,383.59|

Explanation:nil
((((3333)))) Cashreceivedfromotherinvestmentactivities
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|VATreceivedfromdebtinvestmentincome||29,081.45|
|Total||29,081.45|

 Explanation:nil
(4)Cashpaidforotherinvestingactivities
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|FinesandconfiscatedamountsforillegaloperationoftheCompany'sstocks|19,310,000.00||
|Total|19,310,000.00||

Explanation:nil
(5)Cashreceivedfromotherfinancingactivities
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|LuoniushanGroupCo.,Ltd.|19,810,000.00||
|Total|19,810,000.00||

Explanation:nil
(6)Cashpaidforotherfinancingactivities
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|LuoniushanGroupCo.,Ltd.|19,810,000.00||
|Total|19,810,000.00||

Explanation:nil
76.Supplementaryinformationtostatementofcashflows
(1)Supplementaryinformationtostatementofcashflows
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|1.Netprofitadjustedtocashflowsfromoperatingactivities|--|--|
|Netprofits|2,858,998.66|-2,661,052.49|
|Plus:provisionforassetsimpairment|11,709.50|-1,230.99|

||||
|-|-|-|
|Depreciationoffixedassets,depreciationanddepletionofoilandgasassetsanddepreciationofproductivebiologicalassets|3,193,715.81|3,533,710.59|
|Amortizationofintangibleassets|868,727.16|868,727.16|
|Amortizationoflong-termfeestoapportioned|733,104.44|593,014.30|
|Lossfromdisposaloffixedassets,intangibleassetsandotherlong-termassets("-"forgains)|30,016.43|48,887.07|
|Investmentlosses("-"forgains)|-805,825.24|-1,390,918.55|
|Decreasesininventories("-"forincreases)|-40.80|-1,104.29|
|Decreasesinoperatingreceivables("-"forincreases)|14,283.36|555,543.09|
|Increasesinoperatingpayables("-"fordecreases)|-1,777,400.85|-268,888.91|
|Other||1,489,685.04|
|Netcashflowsfromoperatingactivities|5,127,288.47|2,766,372.02|
|2.Significantinvestingandfinancingactivitiesnotinvolvingcashreceiptsandpayments|--|--|
|3.Netchangesincashandcashequivalents|--|--|
|Balanceofcashattheendoftheperiod|9,681,607.16|27,210,248.01|
|Less:balanceofcashatthebeginningoftheperiod|27,210,248.01|19,782,392.26|
|Netincreaseincashandcashequivalents|-17,528,640.85|7,427,855.75|

 (2)Netcashpaymentfortheacquisitionofasubsidiaryofthecurrentperiod
Nil
(3)Netcashreceivedfromthedisposalofsubsidiaries
Nil
(4)Breakdownofcashandcashequivalents
InRMB/CNY
||||
|-|-|-|
|Item|Endingbalance|Beginningbalance|
|I.Cash|9,681,607.16|27,210,248.01|
|Including:cashonhand|264,156.33|273,523.86|
|Unrestrictedbankdeposits|9,417,450.83|26,936,724.15|
|III.Endingbalanceofcashandcashequivalents|9,681,607.16|27,210,248.01|

Otherexplanation:nil
77.Notesforthestatementofownersequitychanges
Explaintheitemsandadjustedamountedwhichhaveadjustedin “Other”oflastyear’sendingbalance:nil
78.Assetswithownershiporuserightrestricted
Nil
79.Itemofforeigncurrency
□Applicable√Notapplicable
80.Hedging
Releasedtheitemsandrelevantinstrumentsbytypes,andqualitativeandquantitativeinformationforhedgerisks:nil
81.Other
Nil
VIII.Changesof consolidationrange
1.Enterpriseconsolidationnotunderthesamecontrol
(1)Enterpriseconsolidationnotunderthesamecontrolinreportingperiod
Nil
(2)Consolidationcostandgoodwill
Nil
(3)Identifiableassets,liabilityoftheacquireeonpurchasingdate
Nil
(4)Gainsorlossesoftheequityheldbeforepurchasingdate,arisingfromre-measuredbyfairvalue Realizedenterprisecombinestepbystepthroughmulti-tradinganddealingobtainedcontrollingrightsinPeriod
□Yes√No
(5) On purchasing date or current combine period, fails to determine the combination consideration oracquiree’’’’sfairvalueofidentifiableassetsandliabilitiesrationally
Nil
(6)Othernotes
Nil
2.Enterpriseconsolidationunderthesamecontrol
Nil
3.Counterpurchase
Basicinformationoftransactions,basisoftransactionsconstitutingcounterpurchase,whetherassetsandliabilitiesreservedbylisted companies constituting business and their basis, confirmation of combined cost, the amount occurred when adjusting rights and interestsinaccordancewithequitytransactionanditscalculation:Nil
4.Disposalofsubsidiaries
Losingcontrollingrightswhiledisposesubsidiaryonone-time
□Yes√No
Disposesubsidiarystepbystepthroughmulti-dealingsandlosingcontrollingrightsinthePeriod
□Yes√No
5.Changesofcombinationscope
Otherreasonscontributedthechangesforcombinationscope(e.g.newsubsidiaryestablished,liquidatesubsidiaryetc.):
Nil
6.Other
Nil
IX.Equityinother entity
1.Equityinthesubsidiary
Nil
2.Changesintheowner'sequityshareofthesubsidiaryandthetransactionisstillcontrolledsubsidiary Nil
3.Equityinarrangementofjointventureorassociatedenterprises
Nil
4.Importantcommonmanagement
Nil
5.Equityinstructuredentitiesnotincludedintheconsolidatedfinancialstatements
Relevantexamination:nil
6.Other
Nil
X.Risksrelatedtofinancialinstruments
The Company faces all kinds of financial risks in the operating process: Credit risks, market risks and liquidity risks. The Board of Directors of the Company takes full responsibilities for determining the risk management objectsandpoliciesandbearingtheultimateliabilitiesforthat,however,theBoardofDirectorshasauthorizedthe management department of the Company to design and implement the process capable of ensuring the effective implementation of the risk management objects and policies.The Board of Directors reviews the effectiveness of theenforcedproceduresandtherationalityofriskmanagementobjectivesandpoliciesbythereportssubmittedby the management department of the Company. The internal auditors of the Company also will audit the risk managementpoliciesandprocedures,andreporttherelativefactstotheauditcommittee.
TheoverallobjectiveofriskmanagementoftheCompanyistopreparetheriskmanagementpoliciesensuringthe riskundercontrolasfaraspossibilitywithoutaffectingtheCompany'sbusinessdevelopmentgoals.
i.Creditrisk
Credit risk refers to a risk that one party to the financial instruments suffers financial losses due to the failure of the otherparty in performing the obligationsThe Company mainly facescustomer creditrisks causedby sales on account.Beforesigninga newcontract,the Companywill understandandassesscreditrisksofthe newcustomer. The Company rates the credit of existing customers and analyzes the aging of accounts receivable to ensure that theCompany'soverallcreditriskiswithinthecontrollablerange.
ii. Marketrisk
Marketrisk associatedwith financialinstrumentsrefers to the risk that fair value or future cashflows of financial instruments fluctuate due to variations in market prices, and it includes exchange rate risk, interest rate risk and otherpricerisks.
iii. Liquidityrisk
Liquidity risks refer to the risks of capital shortage occurred when enterprises perform the obligations of settlement in cash or other financial assets. The policy of the Company is to ensure that there are sufficient cash
forthe paymentofthe matureddebts.Liquidityriskis undercentralizedcontrolofthe financialdepartmentofthe Company. The financial department monitors cash balance and readily realizable and marketable securities and makes rolling forecast on cash flows of the next 12 months to ensure that the Company has sufficient funds to repaydebtsinallcasesofreasonableprediction.
XI.Fair valuedisclosures
Nil
XII.Relatedpartiesandrelated-partytransactions
1.Parentcompany
|||||||
|-|-|-|-|-|-|
|Parentcompany|Registeredplace|Natureofbusiness|Registeredcapital|ShareholdingratiointheCompany|RatioofvotingrightintheCompany|
|LuoniushanCo.,Ltd.|Haikou|Cropfarming|115,151.00|17.55%|19.80%|

 Explanation:
AsatDecember31,2017,LuoniushanCo.,Ltd.(hereinafterreferredtoas"Luoniushan")anditswholly-ownedsubsidiaryHainanYa'anjuPropertyServicesCo.,Ltd.heldatotalof72,091,780AsharesoftheCompany,accountingfor19.80%ofthetotalshare capitaloftheCompany,andbeingthelargestshareholderoftheCompany.
Otherexplanation:nil
2.SubsidiaryoftheEnterprise
FoundmoreinNotes
3.Cooperativeenterpriseandjointventure
Nil
4.Otherrelatedparty
Nil
5.Related-partytransactions
(1)Goodspurchasing,laborserviceprovidingandreceiving
Goodspurchasing/laborservicereceiving
InRMB/CNY
|||||||
|-|-|-|-|-|-|
|Relatedparty|Contentsofrelated-party|Year2017|Transactionamount|Whetheroverthe|Year2016|

|||||||
|-|-|-|-|-|-|
||transaction||authorized|amountauthorizedornot||
|LuoniushanCo.,Ltd.|Roomandmealcharge|787,474.00||Yes|29,566.04|

Salesofgoods/renderingofservices
InRMB/CNY
|||||
|-|-|-|-|
|Relatedparty|Contentsofrelated-partytransaction|Year2017|Year2016|
|LuoniushanCo.,Ltd.|Roomandmealcharge|787,474.00|29,566.04|

 Explanation:nil
(2)Relatedtrusteeshipmanagement/contract&entrustmanagement/outsourcing
Nil
(3)Relatedlease
Nil
(4)Relatedguarantee
Nil
(5)Relatedparty’sborrowedfunds
Nil
(6)Relatedparty’sassetstransferanddebtreorganization
Nil
(7)Keymanagementpersonnelemoluments
InRMB/CNY
||||
|-|-|-|
|Item|Year2017|Year2016|
|Keymanagementpersonnelemoluments|1,885,719.39|1,161,900.00|

 (8)Otherrelatedtransactions
Nil
6.Receivable/payableitemsofrelatedparties
(1)Receivable
InRMB/CNY
|||||||
|-|-|-|-|-|-|
|Item|Relatedparty|Endingbalance||Beginningbalance||
|||Bookbalance|Provisionforbaddebt|Bookbalance|Provisionforbaddebt|
|Accountreceivable|LuoniushanCo.,Ltd.|166,412.00||10,668.00||

(2)Payableitem
Nil
7.Commitmentsofrelatedparty
Nil
8.Other
Nil
XIII.Share-based payment
1.Share-basedpayment
□Applicable√Notapplicable
2.Settledbyequity
□Applicable√Notapplicable
3.Settledbycash
□Applicable√Notapplicable
4.Modificationandterminationofshare-basepayment
5.Other
XIV.Commitmentsandcontingencies
1.Materialcommitments
Majorcommitmentsonbalancesheetdate
Nil
2.Contingencies
(1)Majorcontingenciesonbalancesheetdate
OnMay26,2016,theCompanyreceivedalawyerletterfromHainanYunfanLawFirmentrustedbySanyaPowerSupplyBureauof Hainan Power Grid Co., Ltd. (hereinafter referred to as "Sanya Power Supply Bureau"), saying that Sanya Power Supply Bureau found, in verifying electricity consumption by South China Hotel, a subsidiary of the Company, that the current transformer (CT) installedinthedistributioncentermeteringcountersinSouthChinaHotelinstalledwasinconsistentwiththerecordinthemarketing managementsystemfileofSanyaPowerSupplyBureau,andthedurationoftheinconsistencewasfromJuly2006whenSouthChina Hotel changed its electricity consumption measuring device to April 2016.According to the statistics, electricity consumption of10313373KWHwasmeasuredinshort,whichwasestimatedtobevaluedatRMB7,200,165.75accordingtotheelectricityprices andsurchargeratesintheyears.
According to the Legal Consultation Advice on Electricity Quantity (Electricity Charge) Claiming Dispute between South China Hotel and Sanya Power Supply Bureau issued by Beijing Junhe (Haikou) Law Firm on December 20, 2016, as all electricity consumptionmeteringdevicesarepurchased,installed,sealed,openedandreplacedbySanyaPowerSupplyBureauResponsible,the shortmeasurementofelectricitychargefromSouthChinaHotelformanyyearswasduetothefaultofSanyaPowerSupplyBureau, and was irrelevant to South China Hotel.Pursuant to Article 135 of the General Principles of Civil Law: "Except as otherwise stipulatedbylaw,thelimitationofactionregardingapplicationstoapeople'scourtforprotectionofcivilrightsshallbetwoyears., theCompanyaccruedanamountofRMB1,489,685.04fortheelectricitychargeforelectricityquantitymeasuredinshortduringtwo yearsfromApril2014toApril2016.AsatDecember31,2017,nofurtherprogresswasmadeonthismatter.
(2)Fornomajorcontingenciesdisclosed,explainreasons
TheCompanyhasnomajorcontingenciesshouldbedisclosed
3.Other
XV.Eventafterbalance sheetdate
1.Majornon-adjustmentevents
Nil
2.Profitdistribution
Nil
3.Salesreturn
Nil
4.Explanationonothereventsafterbalancesheetdate
OnJanuary28,2018,asresolvedatthe16thmeetingofthe8thboardofdirectorsoftheCompany,theCompanydoesnotintendto makeprofitdistributionorconvertcapitalreserveintosharecapital.
XVI. Othersignificantevents
1.Correctionofaccountingerrorsinpreviousperiods
Nil
2.Debtreorganization
3.Assetsreplacement
(1)Non-monetaryassetsreplacement
(2)Othersassetsreplacement
4.Annuityplan
5.Terminationofoperation
6.Segmentinformation
Nil
7.Majortradinganditemsshowsinfluenceoninvestors’decision-making
8.Other
AccordingtotherequirementsoftheGuidelinesfortheSupervisionofListedCompaniesNo.4--CommitmentsofandPerformance of Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers of Listed Companies and Listed Companies (Announcement of the China Securities Regulatory Commission[2013] No.55) issued by the China Securities Regulatory Commission (CSRC), on June 7, 2014, Luoyunshan Co., Ltd. (hereinafter referred to as "Luoniushan") issued to the Company a LetteronChangeinCommitmentbyLuoyunshanCo.,Ltd.toHainanDadonghaiTourismCentre(Holdings)Co.,Ltd.andundertakes intheletter thatwithinthreeyearsfromthedatewhenthegeneralmeetingofshareholdersoftheCompanyreviewedandapproved thechangeinthecommitment,LuoniushanwillactivelyseekreorganizationpartytoreorganizeassetsoftheCompany.Suchmatter werereviewedandapprovedbythegeneralmeetingofshareholdersoftheCompanyonJune27,2014.
OnFebruary22,2017,theCompanyreceivedfromLuoniushanaLetteronProgressinthePlanningofCommitmentImplementation, in which Luoniushan intended to transfer100% of the equity it held in the Industrial Company, a wholly-owned subsidiary (specifically, the Industrial Company will first be transferred with part of financial assets equity held by Luniushan and of6.91% equity of Sanya Rural Commercial Bank Co., Ltd.) to the Company, the transaction was made in cash with transaction amount of about RMB300 million. The proposal was not adopted at the 11th extraordinary meeting of the eighth board of directors of the CompanyduetotheCompany'slackofsufficientdebtrepaymentability.
On June 23, 2017, Luoniushan issued to the Company a Letter on Change in Term of Commitment by Luoyunshan Co., Ltd. to Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd., extending Luoniushan's performance period of the above restructuring commitmentoftheCompanyby6months,whichmeansthedeadlineforthefulfillmentofreorganizationcommitmentwaschanged toDecember27,2017.Asthereorganizationwouldtakeacertainamountoftime,onNovember29,2017,Luoniushanagainapplied to extend the performance period of the reorganization commitment for two years, that is, the performance deadline of the reorganization commitment was changed from December 27, 2017 to December 26, 2019, which was not approved at the fourth extraordinarygeneralmeetingofshareholdersoftheCompanyin2017.
According to the Proposal onWrite-off of Long-term Investments and CurrentAccounts reviewed and adopted at the 12th interim meeting of the 8th board of directors of the Company on October 25, 2017 and the third extraordinary general meeting of shareholders of the Company for 2017 on November 10, 2017, the Company wrote off long-term equity investment and available-for-salefinancial assetsforwhichprovisionforimpairment wasprovidedforinfullandpartofclaims;andwroteoffpart of accounts payable which were unable to be paid, including: writing off long-term equity investment of RMB9,716,374.26, available-for-sale financial assets of RMB5,000,000.00, accounts receivable of RMB 2,176,212.90, other receivables of RMB78,067,592.72, accounts payable of RMB375,553.60, advance from customers of RMB 251,057.21, other payables of RMB676,929.30.Non-operatingincomearisingfromthewrite-offsamountedtoRMB1,303,540.11.
On October 20, 2017, Hainan Dongfang Guoxin Law Firmissued a Legal Opinion onTime Limitation for Proceedings onPart of
Accounts Payable of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. for the above-mentioned written-off payables,
confirmingthattheabove201sumsofpayableshaveexceededthestatutorytimelimitation,andtherelevantcreditorshavelosttheir debtrecoveryrightandtherighttowin.
XVII.Note on financial statementof parentcompany
1.Accountsreceivable
（（（（1））））Disclosureofaccountreceivablesbycategory
Nil
Accountreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatperiod-end:：
□Applicable√Notapplicable
Intheportfolio,accountsreceivablewiththeallowanceforbaddebtsmadeundertheaginganalysismethod：
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforaccountreceivable：
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforaccountreceivable:：
(2)Provisionforbaddebtsaccrued,regainorswitchbackinthePeriod
Nil
(3)AccountreceivablesactuallycancelafterverificationinPeriod
Nil
(4)Topfiveaccountreceivablescollectedbyarrearspartyatendingbalance:nil
(5)Accountreceivablesrecognitionterminatedduetotransferoffinancialassets:nil
(6)Accountreceivablestransferredandassets&liabilityformedbyitscontinuousinvolvement:nil Otherexplanation:nil
2.Otherreceivables
(1)Otherreceivablesbytype
Nil
Otherreceivableswithinsignificantsingleamountbutwithindividualprovisionforbaddebts：
□Applicable√Notapplicable
Otherreceivableswithprovisionforbaddebtsmadebyaginganalysismethodinportfolios:：
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonbalanceproportionforotheraccountreceivable:：
□Applicable√Notapplicable
Incombination,withdrawalproportionofbaddebtprovisionbasedonothermethodsforotheraccountreceivable:：
□Applicable√Notapplicable
(2)Provisionforbaddebtsaccrued,regainorswitchbackinthePeriod:
Nil
3.Long-termequityinvestment:
Nil
4.Operationincomeandoperationcost
Nil
5.Investmentincome
Nil
6.Other
nil
XVIII.Supplementaryinformation
1111.... Breakdownofnon-recurringprofitsandlossesin2017
√Applicable□Notapplicable
InRMB/CNY
||||
|-|-|-|
|Item|Amount|Remark|
|Profitsorlossesfromdisposalofnon-currentassets|-30,016.43|Lossfromfixedassetsdisposal|
|Expensesforusingfundschargedfromnon-financialenterprisesandincludedinthecurrentprofitorloss|805,825.24|Netincomefromcreditors’investment|
|Othernon-operatingincomeandexpensesexceptfortheabove-mentionsitems|1,303,800.11|Debtwrittenofffromreceivablesandaccountpaidinadvance|
|Total|2,079,608.92|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies
OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingto
the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their
SecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
2．．．．Returnonnetassetsandearningspershare
|||||
|-|-|-|-|
|Profitforthereportingperiod|Yieldrateofnetweightedaverageassets|Earningspershare||
|||Basicearningspershare(RMB/Share)|Dilutedearningspershare(RMB/Share)|
|NetprofitattributabletoordinaryshareholdersoftheCompany|3.78%|0.0079|0.0079|
|NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductingthenon-recurringprofitandloss|1.03%|0.0021|0.0021|

3.Accountingdatadifferencebetweenthedomesticandoverseasaccountingstandards
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International AccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
(3) Explanation on data differences under the accounting standards in and out of China; as for the differencesadjustmentauditedbyforeignauditinginstitute,listednameoftheinstitute
4.Other
Section XII. Documents available for references
I. Financial statement with signature and seal of legal person, person in charge of accounting worksandpersoninchargeofaccountingorgan(accountantincharge);
II.OriginalauditreportsealwithaccountingfirmsandsignatureandsealfromCPA;
III. The original manuscripts of all documents and announcements of the Company publicly disclosedonSecuritiesTimesandHongKongCommercialDailyduringthereportperiod.
TheabovesaiddocumentsarepreparedinthesecuritydepartmentoftheCompany.
BoardofDirectorsof
HAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD. Chairman:LiYuanbin
30January2018