海南大东海旅游中心股份有限公司2014年年度报告(英文版)

司公限有份股心中游旅海东大南海                                   2014   文全告报度年
  Short Form of the Stock: Donghai-A, Donghai-B     Stock Code: 000613, 200613



   Hainan Dadonghai              Tourism Centre (Holdings) Co., Ltd.




                       Annual Report 2014
                                    (Full Text)




                      Disclosure Date: 31 January 2015





      司公限有份股心中游旅海东大南海                                                                               2014   文全告报度年

                Section I. Important Notice, Contents and Paraphrase


                                                                Important Notice:
      Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
      Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the
      Company) hereby confirm that there are no any fictitious statements, misleading statements, or
      important omissions carried in this report, and shall take all responsibilities, individual and/or
      joint, for the reality, accuracy and completion of the whole contents.
      All directors are attending the Board Meeting for Report deliberation.
      The Company has no plan of cash dividends carried out, bonus issued and capitalizing of
      common reserves either.
      Li Yuanbin, Principal of the Company, Chen Zhen, person in charger of accounting works and
      Liu Xianghai, person in charge of accounting organ (accounting principal) hereby confirm that
      the Financial Report of 2014 Annual Report is authentic, accurate and complete.
      Concerning the forward-looking statements with future planning involved in the Report, they
      do not constitute a substantial commitment for investors. Investors are advised to exercise
      caution of investment risks.




                                                             Contents




Annual Report 2014 ...........................................................................................................................2

Section I Important Notice, Contents and Paraphrase .................................................................2

Section II Company Profile...............................................................................................................6

Section III Accounting data and summary of finnaical indexes ..................................................9



      司公限有份股心中游旅海东大南海                                                                           2014   文全告报度年
Section IV Report of the Board of Directors ................................................................................ 11

Section V Important Events ..........................................................................................................27

Section VI Changes in shares and particular about shareholders...............错误!未定义书签。

Section VII Preferred Stock………………………………………………………………………..

Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees ......35

Section IX Corporate Governance .................................................................错误!未定义书签。

Section X Internal Control ..............................................................................................................49

Section XI Financial Report............................................................................................................51

Section XII Documents available for reference.............................................................................51





       司公限有份股心中游旅海东大南海                                                            2014   文全告报度年


                                               Paraphrase



                     Items              Refers to                                 Contents
CSRC                                    Refers to China Securities Regulation Commission
SSE                                     Refers to Shenzhen Stock Exchange

Company Law                             Refers to Company Law of The People’s Republic of China

Securities Law                          Refers to Securities Law of The People’s Republic of China

Rules of Listing                        Refers to Rules of Shenzhen Stock Exchange for the Listing of Stocks

Company/the Company                     Refers to Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.

                                                    Article of Association of Hainan Dadonghai Tourism Centre (Holdings)
Article of Association                  Refers to
                                                    Co., Ltd.

                                                    Shareholders’ General Meeting of Hainan Dadonghai Tourism Centre
Shareholders’ General Meeting          Refers to
                                                    (Holdings) Co., Ltd.

Board                                   Refers to Board of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.

                                                    Supervisory Committee of Hainan Dadonghai Tourism Centre
Supervisory Committee                   Refers to
                                                    (Holdings) Co., Ltd.

Yuan                                    Refers to RMB




                                        Major Risk Warning
Risk factors that probably occurred and countermeasures are well-described in the section of Report
of the Board of Directors in this Report; investors are advice to pay attention to relevant contents.


Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) are the
media for information disclosure appointed by the Company for year of 2015, all information under
the name of the Company disclosed on the above said media shall prevail


The report is prepared in bilingual versions of Chinese and English respectively, in the event of any
discrepancy in understanding the two aforementioned versions, the Chinese version shall prevail.


Investors are advised to exercise caution of investment risks.





    司公限有份股心中游旅海东大南海                                                               2014      文全告报度年
                                         Section II Company profile

I. Company information

Short form of the stock         Donghai-A , Donghai-B                 Stock code                 000613   、   200613

Short form of the Stock after
                                N/A
changed

Stock exchange for listing      Shenzhen Stock Exchange

Name of the Company (in
Chinese)
                                司公限有份股心中游旅海东大南海
Short form of the Company
(in Chinese)
                                海东大
Foreign name of the Company Hainan Dadonghai Tourism Centre (Holdings) Co.,Ltd.

Foreign name of short form of
                                DADONGHAI
the Company

Legal representative            Li Yuanbin

Registrations add.              Dadonghai Sanya

Code for registrations add      572021

Offices add.                    Dadonghai Sanya

Codes for office add.

Company website                 http://www.cninfo.com.cn

Email                           hnddhhn@21cn.com


II. Person/Way to contact

                                                     Secretary of the Board                  Rep. of security affairs

Name                                         Wang Hongjuan

Contacts add.                                Dadonghai Sanya

Tel.                                         0898-88219921

Fax.                                         0898-88214998

Email                                        hnddhhn@21cn.com


III. Information disclosure and preparation place

Newspaper appointed for information disclosure        Securities Times, Hong Kong Commercial Daily

Website for annual report publish appointed by CSRC http://www.cninfo.com.cn




      司公限有份股心中游旅海东大南海                                                                           2014   文全告报度年
Preparation place for annual report                     Security department of the Company



IV. Registration changes of the Company
                                                                      Registration NO. for
                                                                                               No. of taxation
                       Date for registration Place for registration     enterprise legal                              Organization code
                                                                                                registration
                                                                            license

                                            Dadonghai, Hedong
Initial registration   1993-04-26                                     20135718-8             460200201357188      20135718-8
                                            District, Sanya

Registration at end                         Dadonghai, Hedong
                       2009-05-13                                     460000000145145        460200201357188      20135718-8
of report period                            District, Sanya

Changes of main business since listing      No changes

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


V. Other relevant information

CPA engaged by the Company

Name of CPA                           BDO CHINA Shu Lun Pan Certified Public Accountants LLP

Offices add. for CPA                  4# Building, No. 61, Nanjing Rd.(E), Shanghai

Signing Accountants                   Liu Zebo, Zhu Meirong
Sponsor engaged by the Company for performing continuous supervision duties in reporting period



      司公限有份股心中游旅海东大南海                                                                    2014   文全告报度年
□ Applicable   √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable   √ Not applicable





    司公限有份股心中游旅海东大南海                                                                             2014   文全告报度年

         Section III. Accounting data and summary of financial indexes

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes   √ No

                                                   2014                      2013             Changes over last year

Operating income (RMB)                            20,202,134.10              23,660,779.80                  -14.62%            32,184,700.50

Net profit attributable to shareholders
                                                    2,503,486.47             -2,199,319.96                 213.83%              2,126,042.00
of the listed company(RMB)

Net profit attributable to shareholders
of the listed company after deducting              -2,709,988.03             -2,283,020.26                  -18.70%               -68,230.26
non-recurring gains and losses(RMB)

Net cash flow arising from operating
                                                    2,432,068.08              2,615,368.77                      -7.01%          1,392,506.26
activities(RMB)

Basic earnings per share (RMB/Share)                      0.0069                    -0.0060                215.00%                       0.0058

Diluted earnings per share
                                                          0.0069                    -0.0060                215.00%                       0.0058
(RMB/Share)

Weighted average ROE                                       3.01%                    -2.65%                      5.66%                    2.56%

                                                                                              Changes over end of
                                                End of 2014               End of 2013                                       End of 2012
                                                                                                    last year

Total assets (RMB)                               114,080,998.28             113,960,862.69                      0.11%         115,785,974.55

Net assets attributable to shareholder
                                                  84,415,334.33              81,911,847.86                      3.06%          84,111,167.82
of listed company (RMB)


II. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

√ Applicable    □ Not applicable
                                                                                                                                      In RMB

                                     Net profit attributable to shareholders of listed   Net assets attributable to shareholders of listed
                                                        company                                                 company

                                                                                                                           Amount at
                                 Amount in this period        Amount in last period      Amount at period-end
                                                                                                                          period-begin




    司公限有份股心中游旅海东大南海                                                                           2014   文全告报度年
Chinese GAAP                                 2,503,486.47                 -2,199,319.96           84,415,334.33             81,911,847.86

Items and amount adjusted by IAS

IAS                                          2,503,486.47                 -2,199,319.96           84,415,334.33             81,911,847.86


2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)

√ Applicable   □ Not applicable
                                                                                                                                     In RMB

                                     Net profit attributable to shareholders of listed    Net assets attributable to shareholders of listed
                                                        company                                              company

                                                                                                                         Amount at
                                   Amount in this period      Amount in last period       Amount at period-end
                                                                                                                        period-begin

Chinese GAAP                                 2,503,486.47                 -2,199,319.96           84,415,334.33             81,911,847.86

Items and amount adjusted by foreign accounting rules

By foreign accounting rules                  2,503,486.47                 -2,199,319.96           84,415,334.33             81,911,847.86

No differences

3. Reasons for the differences of accounting data under accounting rules in and out of China

□ Applicable    √ Not applicable


III. Items and amounts of extraordinary profit (gains)/loss

√ Applicable   □ Not applicable
                                                                                                                                     In RMB

                            Item                                      2014               2013             2012                Note

Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of            5,119,583.45          -39,699.50      894,927.42              -
assets)

Gains arising from investment cost, obtained from
subsidiaries, affiliated enterprises and joint ventures,
which is less than fair value of identifiable net assets, that                                            38,166.20              -
deserves to enjoy in invested units while investment
obtained

Gains/losses of debt restructure                                                                         349,581.69              -

Other non-operating income and expenditure except for
                                                                      93,891.05          123,399.80      911,596.95              -
the aforementioned items

Total                                                              5,213,474.50           83,700.30    2,194,272.26             --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies


      司公限有份股心中游旅海东大南海                                                                          2014   文全告报度年
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable    √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss





     司公限有份股心中游旅海东大南海                                                          2014   文全告报度年

                      Section IV. Report of the Board of Directors

I. Introduction

During the reporting period, the Company achieved main business income of 20,202,100 Yuan, reduced by
3,458,700 Yuan compared to the same period of last year, a decrease of 14.62%; operating profit was -709,900
Yuan, reduce losses of 1,573,100 Yuan compared to the same period of last year, an increase of 68.90%; net
amount of non-operating revenue and expenditure was 3,213,400 Yuan, increased by 3,129,800 Yuan compared to
the same period of last year with increase of 3739.30%; net profit was 2,503,500 Yuan, increased by 4,702,800
Yuan compared to the same period of last year, an increase of 213.83 %.


In reporting period, the Company took various measurements positively with market oriented, building effective
mechanism of internal control management, reducing risk and consumption as well as strives for diversified
operation. We curb the decline in business and making up the deficits and get surpluses in the Year even facing
national macro regulation, overseas tourism market transfer, and imbalance between supply and demand in hotel
industry as well as the influence of bad operation environment. We basically achieved the operation goal the
Company planed at year-beginning. Main work conducted as the following:


1. Maintaining stability, try every means to stabilize and grab the market share with market orientation


In reporting period, affected by cumulated influence of deep slump in tourism market, downward pressure on
hotel operation still not decreased. Facing the complex changeable market and serious operation situation in hotel
industry, operation team of the Company adhere to operation strategy of “market-oriented and maintaining
stability”, continues to strengthening cooperation with traditional business groups, travel agents and tourist
attractions, and reaching mutual benefit and all-win by resource sharing, carrying out special tourism package for
convenient services to all tourists.
At the same time, reinforcing official website maintenance and cooperated with the leading travel websites in
China so far as Ctrip, eLong and Qunar; internet channel and e-commerce platform were fully made use of where
a series of discounted packages were promoted, and consolidate regular customs, develop new clients and try
every means to stabilize and grab the market share. In the Period, the Company hit an income of 20,202,100 Yuan
in main business with 3,458,700 Yuan down compared with same period of last year, a 14.62% declined.


2. Improve the establishment of internal control (IC) management mechanism; reduce risk and consumption,
further enhancing hotel service quality


The Company formulated the Enterprise Risk Management and Internal Control Manual pursuit to regulations and
requirement of Basic Norm of Internal Control for Enterprise and supporting guidelines and in combination with
practical situation of the Company and hotel. The Company established a more complete IC mechanism,
effectively strengthen risk management in IC and improve risk prevention ability for enterprise. In addition, we


      司公限有份股心中游旅海东大南海                                                                       2014   文全告报度年
vigorously advocated energy-saving principle, pursued principles of sources enlarging and losses dwindling
strictly control cost and expenditure, put an end to extravagance and waste. During the Period, staff salary and
welfare in management expenses declined 3.09% compare to last year, and the expenditure of management
expenses down 8.35% compare with same period of last year. Meanwhile, hotel administration and staff training
were further strengthened to improve the service and administration quality as well as competitiveness.

3. Revitalize stock assets, looking for diversification
The Company''s main business is single and small-scaled, which cannot effectively resist the business risk and it
always being a “bottleneck” that restricted the development. In the reporting period, the Company disposes equity
of Haikou Luoniushan Microcredit Co., Ltd., and part of the fixed assets are invested in Sanya Xiangyu
E-Commerce Co., Ltd. Strive for liquidize remnant assets and looking for diversify operation, reduce operation
risk and maximize interests.


In 2015, the Company will continue to forge ahead, makes the core business refined, continuously explore and
innovate, raise quality and efficiency, improve the overall competitiveness and continuing viability, to achieve
sustainable, healthy, stable and rapid development.


II. Main business analysis
1. Introduction
The Company’s review and summarization to the progress of development strategy and operating plan disclosed
in early days during the report period
In reporting period, the Company took various measurements positively with market oriented, building effective
mechanism of internal control management, reducing risk and consumption as well as strives for diversified
operation. We curb the decline in business and making up the deficits and get surpluses in the Year even facing
national macro regulation, overseas tourism market transfer, and imbalance between supply and demand in hotel
industry as well as the influence of bad operation environment. We basically achieved the operation goal the
Company planed at year-beginning. In 2015, the Company will continue to forge ahead, makes the core business
refined, continuously explore and innovate, raise quality and efficiency, improve the overall competitiveness and
continuing viability, to achieve sustainable, healthy, stable and rapid development.

Reasons for difference of actual operation performance has 20% lower or higher than profit forecast of the Year disclosed

□ Applicable √ Not applicable
Changes of main operation mode
□ Applicable    √ Not applicable


2. Revenue

Notes
In the reporting period, main business achieved revenue of 20.2021 million Yuan, a y-o-y down of 3.4587 million
Yuan with 14.62% down, mainly due to the declined of hotel occupancy rate and average room price drops.
                                                                                                      In ten thousand Yuan
Product category                                2014                         2013                   Increase/decrease y-o-y (%)



         司公限有份股心中游旅海东大南海                                                                            2014   文全告报度年
Guest room                                               1,955.02                       2,366.08                                   -17.37%
Food & beverage                                                65.19                        0.00                                      100%
Total                                                    2,020.21                       2,366.08                                   -14.62%
Whether income from physical sales larger than income from labors or not
□Yes     √No
Material orders in hands
□ Applicable        √ Not applicable
Material changes or adjustment for products or services of the Company in reporting period
□ Applicable        √ Not applicable
Major sales of the Company

Total top five clients in sales (RMB)                                                                                         6,440,571.00

Proportion in total annual sales volume for top five clients                                                                        31.88%

Information of top five clients of the Company
√ Applicable        □ Not applicable

  Serial                             Clients                              Sales (RMB)                     Ratio in annual sales

     1       PGS INTERNATIONAL LIMITED                                        3,388,408.00                                         16.77%
             Sanya branch of Guangzhou South Holiday
     2                                                                        1,585,756.00                                          7.85%
             International Travel Service Co., Ltd.
     3       Li Fei (Xinghai Holiday Travel Agency Co., Ltd. )                    563,464.00                                        2.79%
             Ji Jinjun (Sanya Shengda International Tourism
     4                                                                            522,070.00                                        2.58%
             Ltd.)
     5       Sanya Baishun International Tourism Ltd.                             380,873.00                                        1.89%
   Total                                 --                                   6,440,571.00                                         31.88%

Other situation of main clients
□ Applicable        √ Not applicable


3. Cost

Industry classification
                                                                                                                                     In RMB

                                                        2014
    Industry
                              Item                           Ratio in operation                       Ratio in operation    Y-o-y changes
   classification                              Amount                                 Amount
                                                                   cost                                     cost

Tourism &              Clients, Food &
                                                337,785.89             100.00%             7,841.74            100.00%            4,207.54%
catering               beverage

Product classification
                                                                                                                                     In RMB

    Product                                         2014
                              Item                                                                                          Y-o-y changes
   classification                              Amount        Ratio in operation       Amount          Ratio in operation



       司公限有份股心中游旅海东大南海                                                                  2014   文全告报度年
                                                                cost                            cost

Guest room             Guest room                  8,464.71            2.51%   7,841.74           100.00%                  7.94%

Food & beverage Food & beverage                  329,321.18         97.49%           0                    0                100%

Note
Operating cost increased 329,944.15 Yuan with 4,207.54% up, main because the breakfast managerial authority in
Chinese restaurant was taking back in the Year and food service costs increased
Main suppliers of the Company

Total purchase amount from top five suppliers (RMB)                                                                1,517,284.04

Proportion in total annual purchase amount for top five
                                                                                                                          70.45%
suppliers

Information of top five suppliers of the Company
□ Applicable     √ Not applicable
Other situation of main suppliers
□ Applicable     √ Not applicable


4. Expenses


                Item                      2014                    2013              y-o-y                       Ratio

                                                                                  changes                     changed

                                                                                                                (%)

    Sales expenses                11,783,411.89           11,896,106.61      -112,694.72                     -0.95%

    Administration                11,423,202.87           12,463,470.06     -1,040,267.19                    -8.35%

    expenses

    Financial                        39,516.35               54,758.44         -15,242.09                   -27.84%

    expenses

    Assets                          212,606.59              187,419.68         25,186.91                    13.44%

    impairment

    loss

    Investment                     4,020,000.00                             4,020,000.00                   100.00%

    income

    Non-operating                  3,220,345.27             125,394.92      3,094,950.35                  2468.16%

            revenue

    Non-operating                     6,870.77               41,694.62         -34,823.85                   -83.51%





      司公限有份股心中游旅海东大南海                                                                         2014   文全告报度年
           expenditure

           Income tax                        0.00                       0.00                      0.00                  0.00%

1. Investment gains mainly due to collect cash dividend by Haikou Luoniushan Petty Loan Co., Ltd. and equity transfer income;
2. Increase of non-operating revenue mainly due to the Company contributed houses and land use rights as investment to establish
Sanya Xiangyu E-business Ltd., the value increased when valuation.
3. Decrease of non-operating expenditure mainly due to fixed assets disposal loss decrease


5. R&D expenses

Main business of the Company is hotel service, no independent R & D department and no new R&D projects
invested in reporting period.

6. Cash flow

                                                                                                                                In RMB

                 Item                            2014                              2013                        Y-o-y changes

Subtotal of cash in-flow from
                                                      23,049,988.56                    23,247,225.60                            -0.85%
operation activity

Subtotal of cash out-flow from
                                                      20,617,920.48                    20,631,856.83                            -0.07%
operation activity

Net cash flow from operation
                                                        2,432,068.08                      2,615,368.77                          -7.01%
activity

Subtotal of cash in-flow from
                                                      14,024,200.00                          51,700.00                    27,026.11%
investment activity

Subtotal of cash out-flow from
                                                         741,664.00                     11,026,052.00                        -93.27%
investment activity

Subtotal of cash flow from
                                                      13,282,536.00                    -10,974,352.00                        221.03%
investment activity

Net increased amount of cash and
                                                      15,714,604.08                     -8,358,983.23                        288.00%
cash equivalent

The reason why the relevant figures changed more than 30% on a year-on-year basis:
√ Applicable     □ Not applicable
1. Cash in-flow from investment activity has a y-o-y increased, mainly because investment was taken back from equity transfer and
bonus received;
2. Cash out-flow from investment activity has a y-o-y decreased, mainly because monetary investment in the Year decrease over
same period of last year;
3. Increase of cash flow from investment activity, mainly because investment was taken back from equity transfer and bonus received
and the monetary investment in the Year decrease over same period of last year;
4. Increase of cash and cash equivalent, mainly due to transfer shares to recoup the capital outlay and received dividends as well as
current account of Sanya Haiyuan Hotel Management Ltd. had been collected back.



      司公限有份股心中游旅海东大南海                                                                                 2014   文全告报度年
The reason why there was significant difference between the cash flow of the Company’s business activities and
the net profit of this year during the report period
□ Applicable    √ Not applicable


III. Composition of main business

                                                                                                                                       In RMB

                                                                                    Increase/decrease Increase/decrease Increase/decrease
                         Operating
                                          Operating cost       Gross profit ratio     of operating      of operating cost     of gross profit
                          revenue
                                                                                     revenue y-o-y           y-o-y             ratio y-o-y

According to industries

Tourism &
                        20,202,134.10          337,785.89                98.33%              -14.62%          4,207.54%                -1.64%
catering

According to products

Guest room              19,550,223.60              8,464.71              99.96%              -17.37%                7.94%              -0.01%

Food & beverage            651,910.50          329,321.18                49.48%             100.00%               100.00%             49.48%

According to region

Hainan                  20,202,134.10          337,785.89                98.33%              -14.62%          4,207.54%                -1.64%

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable    √ Not applicable


IV. Assets and liability analysis

1. Major changes of assets

                                                                                                                                       In RMB

                                          End of 2014                        End of 2013
                                                                                                          Ratio        Notes of major
                                                   Ratio in total                      Ratio in total
                                     Amount                            Amount                           changes             changes
                                                      assets                              assets

Monetary fund                   22,550,289.54            19.77%       6,835,685.46             6.00%       13.77%              -

Account receivable                  2,632,379.02           2.31%      3,509,377.76             3.08%       -0.77%              -

Inventory                            307,057.29            0.27%        317,334.23             0.28%       -0.01%              -

Fix assets                      56,301,360.07            49.35% 60,628,905.47                53.20%        -3.85%              -

Account paid in advance               40,778.52            0.04%        201,053.21             0.18%       -0.14%              -

Other account receivable             332,661.26            0.29%      3,299,051.36             2.89%       -2.60%              -

Non-current assets due               196,354.90            0.17%        386,191.87             0.34%       -0.17%              -




       司公限有份股心中游旅海东大南海                                                                       2014   文全告报度年
within one year

Financial assets available for
                                    4,500,000.00          3.94% 10,000,000.00              8.77%   -4.83%             -
Sale

Intangible assets                 27,220,117.68          23.86% 28,586,908.43             25.08%   -1.22%             -

Long-term unamortized
                                                          0.00%        196,354.90          0.17%   -0.17%             -
expenses


2. Major changes of liability

                                                                                                                            In RMB

                                 2014
                                                                                        Ratio
                                      Ratio in total                  Ratio in total               Notes of major changes
                      Amount                            Amount                         changes
                                         assets                            assets

Account
                     2,390,345.19             2.10%    2,171,955.96            1.91%     0.19%                 -
payable

Account
received in          1,360,245.91             1.19%    1,599,994.81            1.40%    -0.21%                 -
advance

Wages payable        3,451,674.05             3.03%    3,549,851.04            3.11%    -0.08%                 -

Taxes payable       -1,155,972.31            -1.01% -1,164,999.99             -1.02%     0.01%                 -

Other payables      23,619,371.11           20.70% 25,892,213.01             22.72%     -2.02%                 -


3. Assets and liability measure by fair value

□ Applicable     √ Not applicable


4. Main overseas assets

□ Applicable     √ Not applicable


V. Core competitive-ness analysis

Hotels the Company runs are located at Sanya East Bay, just being few dozens of meters from the sea surface.
Facing the ocean, the Company operates with tourism as main business, enjoying a favorable environment taking
advantage of remarkable geographic and nature with seasonal flowers and birds surrounding. This site was ranked
as one of the 40 Fantastic Sceneries awarded by National Tourism Bureau. The hotel has lasted for more than 20
years since its construction, being one of most ancient hotels. It ever receipted couples of domestic and foreign
national leaders. It’s member of nationwide famous hotel with deep and rich cultural background. During these
years, the hotel conducted overall upgrading over soft and hard wares to further perfect internal and external
atmosphere and effectively reinforced competitiveness. Presently, our hotel business ranked top among hotels



      司公限有份股心中游旅海东大南海                                                                        2014   文全告报度年
sited in this region with same scale and same class. For the following years, the Company is bound to complete
internal and external atmosphere and strengthen sales ability to further improve the operating capability.


VI. Investment analysis

1. Equity investment outside

(1) Investment outside

√ Applicable   □ Not applicable

                                                         Investment outside
                                             Investment in the same period of last year
 Investment in the reporting period (RMB)                                                                 Changes
                                                              (RMB)

                              4,500,000.00                                 10,000,000.00                                   -55.00%
                                                                                                                   Invested company
                                                                                           Proportion of equity in invested company
                   Name                                    Main business
                                                                                                     for listed company

   Sanya Xiangyu E-Business Co., Ltd.                         E-business, software etc.                                     18.00%


 (2) Holding the equity of financial enterprise

□ Applicable   √ Not applicable
The company had not held the equity of financial enterprise in the reporting period-end.


(3) Securities investment
□ Applicable   √ Not applicable
The company had no securities investment in the reporting period.




(4)Explanation on equity of other listed company held

□ Applicable   √ Not applicable

The Company had no equity of other listed company held in Period.


2. Trust financing, derivative investment and entrusted loans

(1)Trust financing
□ Applicable   √ Not applicable
The company had no trust financing in the reporting period.


(2) Derivative investment



      司公限有份股心中游旅海东大南海                                                                      2014   文全告报度年
□ Applicable   √ Not applicable
The company had no derivative investment in the reporting period.

(3) Entrusted loans
□ Applicable   √ Not applicable
The company had no entrusted loans in the reporting period.


3. Application of raised proceeds

□ Applicable   √ Not applicable
The company had no application of raised proceeds in the reporting period.


4. Main subsidiaries and stock-jointly company analysis

□ Applicable   √ Not applicable
The Company had no main subsidiaries or stock-jointly company analysis to be disclosed in the reporting


5. Major projects invested by non-raised fund

□ Applicable   √ Not applicable
The company had no major projects invested by non-raised fund in the reporting period.


VII. Prediction of business performance from January –March 2015

Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable   √ Not applicable


VIII. Special purpose vehicle controlled by the Company

□ Applicable   √ Not applicable


IX. Prospect for future development of the Company

1. Industrial development trend and competition facing the Company
With the recovery of world’s economy, the improvement of people’s income and increased awareness of the
tourism consumption, tourist market requirements in and out of China expanding continuously, and with the
Hainan International Tourism Island’s well-known unique climatic conditions, ocean resource and natural
enviornment both at home and abroad, the development prospects of Hainan tourism market looks good. However,
under the influence of State’s macro-economic policies and the Party’s stayle honesty building has been promoted,
and with the external market’s increasingly fierce competition, tourists are split frequently. The blind expansions
of local family inn and hotel is much more about supply than demand, which including top, middle and low-grade;
the normalization of malignant price competitions and more and more serious external operation enviornment, the
hotle industry, as a whole, has great downward pressure.



     司公限有份股心中游旅海东大南海                                                           2014   文全告报度年
In recent years, the Company has invested much in upgrading and renewing equipment and facilities of the hotel.
It is paid off that South China Hotel as our sole main business made a certain progress in operating
competitiveness. But it is still difficult to adapt to the increasingly fierce in hotel industry of Sanya. The Company
needs to continuously complete and improve both soft and hard equipment of the hotel as well as internal and
external atmosphere, to normalize administration. We should fully make use of modern information and
technology, become public and expand sales network to boost market share. We need go on exploring to further
improve administration level and competitiveness of the hotel.


2. The Company’s future development planning and 2015 annual business plan
(1)Further to strengthen the quality control for hard and soft equipments and facilities, promote the brand image of
the hotel, centered on enterprise benefit, take the innovation as the driving force and make the brand of major
business bigger and stronger.


(2) Continue to expand the financing channels, combine the actual situation of the Company and look for the
projects and opportunities in favor of the Company’s development, enrich the industrial structure and enlarge the
enterprise scale.


(3) Continue to strengthen the standard management of internal control, perfect the corporate governance structure,
standardize the management and operation, and effectively control the risks.


3. Fund demands and use plan required for the future development of the Company

The Company utilizes owned funds or financing methods to raise the funds demanded for development, and
completes the development planning of the Company.


4. The risks may cause adverse effects on the future development strategy and realization of operation target of
the Company
(1) Marco Policy risks
In order to normalize and optimize tourism market or further to promote clear-party construction, related
departments may further issue some relative policies. While these polices may cause restrain and effect on
regional tourism development. Main business income may be affected since we are engaged in tourism service.


Countermeasures: The Company will further to improve the hard and soft equipments and facilities of the hotel
while expanding the business scope, and win more market shares via high-class service and comfortable
environment so as to ensure the main business income level.


(2) Natural disaster risks

In recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, where
has high incidence of disastrous weather in summer. If Sanya becomes the landing place of typhoon, it may cause
great damages to the facilities of the Company and affect the Company’s normal operation.
Countermeasures: The Company will strengthen the construction and maintenance for infrastructure, continue to


      司公限有份股心中游旅海东大南海                                                         2014   文全告报度年
buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting
natural disasters.


(3) Human resource risks
The ceaseless rising and rapid development of the same industry make the demands for marketing and
management talents of the hotel industry grow with each passing day, and the talent flow of the hotel is rather
strong, so the human resource strategy of the Company appears to be very important. Though the Company has
rather perfect human resources mechanism construction, the Company will still confronting the risks of
development restriction caused by the brain drain.
Countermeasures: The Company will keep consummating the talent introduction, training and motivation system,
and improving the employee''s remuneration, welfare and insurance benefits, and strive to attract the talents, foster
the talents and retain the talents. At the same time, the Company will strengthen the training to the quality, skill
and management ability of existing staff. Furthermore, the Company will further enhance the enterprise culture
construction, strengthen the cohesive force, and ensure the stability of core management staff and technical staff.


(4) Operational risks of main business
With the ceaseless development of global tourist industry constantly and ceaseless rising of high-class,
middle-class and low-class hotels, the tourist sources keep shunting, and the competition of tourism service
industry in Sanya becomes increasingly fierce. While the main business of the Company is just a small-scale hotel,
as the main business is single and the business scope is limited, the tourist market conditions and tourist quantity
directly make significant affects on the company performance.
Countermeasures: The Company will keep striving to be better, devote to macroscopic project, carry out scientific
management and scientific decision-making, strengthen the risk consciousness, and establish and consummate the
corresponding systems so as to avoid the risks. Expand the business scope based on the original selling network,
take the advantage of superior geographical environment, constantly develop the high-end tourist markets at home
and abroad, and improve the occupancy rate. Besides, the Company will positively look for the projects and
opportunities in favor of the Company’s development, expand the operating items, and enlarge the enterprise
scale.



X. Explanation on “Modified Auditor’s Report” from the Board and Supervisory Committee
□ Applicable   √ Not applicable


XI. Comparing with last year’s financial report, explain changes in aspect of accounting
policy, accounting estimates and calculation measures

√ Applicable   □ Not applicable

1. Changes of accounting policies

Ministry of Finance issued and revised the “Accounting Standard for Business Enterprises – Basic
Standards” (amendment), “Accounting Standard for Business Enterprises No. 2 – Long-Term Equity
Investment”(amendment), “Accounting Standard for Business Enterprises No. 9 – Employee



      司公限有份股心中游旅海东大南海                                                                            2014   文全告报度年
Benefits”(amendment), “Accounting Standard for Business Enterprises No. 30 – Presentation of Financial
Statements”(amendment), “Accounting Standard for Business Enterprises No. 33 – Consolidated Financial
Statements”(amendment), “Accounting Standard for Business Enterprises No. 37 – Presentation of Financial
Instruments”(amendment), “Accounting Standard for Business Enterprises No. 39 – Fair Value
Measurements”(amendment),               “Accounting        Standard    for    Business       Enterprises       No.      40    –   Joint
Arrangements”(amendment), “Accounting Standard for Business Enterprises No. 41- Disclosure of Interests
in Other Entities”(amendment) etc. in 2014. The Company had made adjustments according to the
Accounting Standard for Business Enterprise issued and revised. The Company had changed the relevant
accounting policies according to the recent issued and revised Accounting Standards for Business Enterprises,
the influence of the amount during the reporting period due to the retrospective adjustment of changes of
accounting policies are as follows:

                                                                                                                         In RMB
                                                                               The names of the affected items           2013-12-31
      The contents and reasons for the changes of accounting policies
                                                                                  in the financial statements

According to the revised “Accounting Standard for Business Enterprises          Long-term deferred expenses                   -386,191.87
No. 30 – Presentation of Financial Statements”, the amount needed to be
                                                                                 Non-current assets maturing
amortized within a year of long-term deferred expenses is adjusted to                                                          386,191.87
                                                                                        within one year
non-current assets maturing within one year.
According to the revised “Accounting Standard for Business Enterprises          Long-term equity investment               -10,000,000.00
No. 2 – Long-Term Equity Investment”, the investments which are no
quoted price on an active market and whose fair value cannot be measured
                                                                               Available-for-sale financial assets         10,000,000.00
reliably as well as the Company cannot exercise significant influence over
the investee are adjusted to available-for-sale financial assets.

2. Changes of accounting estimate
Main accounting estimate of the Company has no change in the Period

XII. Particular about major accounting errors correction that needs retroactive re-statement
in reporting period

□ Applicable    √ Not applicable
No particular about major accounting errors correction that needs retroactive re-statement for the Company in the reporting.




XIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope

□ Applicable    √ Not applicable
No changes in consolidation statement’s scope for the Company in the reporting.





       司公限有份股心中游旅海东大南海                                                                              2014   文全告报度年
XIV. Profit and dividend distribution

Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy
during the Reporting Period
□Applicable √Not applicable
Statement on Plan or Program of Profit Distribution and Capitalization of capital reserve in nearly Three Years (including the
reporting period)
According to the auditing reports issued by certified public accountants, the net income realized in nearly three
years (including the reporting period) was used to make up the losses in the previous year; the undistributed profit
during this reporting remained a minus. The Company did not take profit allocation nor capitalization of capital
reserve during the reporting period.
Cash dividend in latest three years
                                                                                                                                      In RMB

                                                     Net profit             Ratio in net profit
                                                   attributable to            attributable to
                                                                                                                          Proportion of the
                                                   shareholders of           shareholders of        Amount reckoned       amount reckoned
   Year for bonus           Amount for cash
                                                 listed company in           listed company       into cash bonus from     into cash bonus
           shares         bonus (tax included)
                                                    consolidation             contained in           cash repurchase           from cash
                                                                                                                              repurchase
                                                 statement for bonus          consolidation
                                                        year                    statement
2014                                      0.00          2,503,486.47                      0.00%                  0.00                 0.00%
2013                                      0.00         -2,199,319.96                      0.00%                  0.00                 0.00%
2012                                      0.00          2,126,042.00                      0.00%                  0.00                 0.00%
The Company gains profits in reporting period and the retained profit of parent company is positive but no plan of cash dividend
proposed
□ Applicable       √ Not applicable


XV. Profit distribution plan and capitalizing of common reserves plan for the Period

□ Applicable       √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year


XVI. Social responsibility

√ Applicable       □ Not applicable

The Company sets effectively fulfilling social responsibility as the core of its sustainable development, which is
the highest mission of the Company. In the process of operation and business development, The Company purists
its principle of energy saving, pollution minimization and cost effectiveness, conforms to the development of
nation and society in an all-around way, makes efforts to achieve the intercoordination of economic benefit and
social benefit, short-term interests and long-term interests, the Company’s development and social development to
realize a healthy and harmonious development of the Company and its employees, the Company and the society,
and the Company and its environment.



    司公限有份股心中游旅海东大南海                                                               2014   文全告报度年
The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment protection
departments
□Yes   √ No     □Not applicable
The listed company and subsidiaries owes other major social safety issues
□Yes   √ No     □Not applicable
Problems and rectification
Administrative penalty occurred in reporting period

□Yes   √ No     □Not applicable
XVII. In the report period, reception of research, communication and interview
√ Applicable      □ Not applicable

                                                                                                  Main information discussed and
           Date                   Place          Way                 Type          objects
                                                                                                        material provided
Form    January          to               Telephone
                              Sanya                         Individual      Individual investor   Operation situation of the
December in 2014                          communication
                                                                                                  Company, financial state, no
                                          On-line     group
2014-5-21                     Haikou                        Individual      Individual investor   material provided
                                          reception day
Reception (times)
Number of hospitality
Number of individual reception
Number of other reception
Disclosed, released or let out major undisclosed
                                                                                                                            No
information





      司公限有份股心中游旅海东大南海                                                                            2014   文全告报度年
                                              Section V. Important Events

I. Significant lawsuits and arbitrations of the Company

□Applicable       √Not applicable
The Company has no significant lawsuits and arbitration in this year.


II. Questioned from media
□ Applicable   √ Not applicable
No media questioned for the Company in reporting period



III. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable    √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period period.


IV. Bankruptcy reorganization

□ Applicable    √ Not applicable
No bankruptcy reorganization for the Company in reporting period


V. Assets transaction

1. Purchase of assets

□ Applicable    √ Not applicable
No purchase of assets for the Company in reporting period


2. Assets sold

√ Applicable    □ Not applicable

                                        Net
                                     profit
                                                                                    The     Assets
                                contributed           Ratio of net                                    Credit
                       Tradin                                                     related   rights
                                to the listed            profit                                        and
                          g                                                Relat relations concern
                          Company Impact contributed                                                 liability Date
                   price                                  Pricing ed hip(appl         ed
Coun Assets Sales          from the     on  by the sold                                              concern           of
terpar sold       (in 10                                  princip transa icable transferr                                   Index of disclosure
  ty        date         begin of the Compa assets for                                                     ed     disclo
                  thousa                                     al    ction    for       ed
                          reporting     ny      listed                                               shifted       sure
                    nd                                            or not related ownersh
                         to the sales       company in                                               fully or
                  Yuan)                                                  transacti ip fully
                          date(in 10         total profit                                              not
                                                                            on)     or not
                          thousand
                                     Yuan)



    司公限有份股心中游旅海东大南海                                                                                       2014    文全告报度年
    9.09                                                                                                                          Resolution No.:
Hain    percent                                                                                                                       2014-045; Notice
an      equity                                     Gains 2                                                                            name “Announcement
Shen    of                                         million                                                                            of Equity Transfer”;
gyan    Haikou 2014                                Yuan                    Market      Not                                      2014- released on Securities
Inves   Luonius -12-8 1,200              200       investm          79.89% price No    applicab Yes                Yes          12-09 Times, Hong Kong
tment   han                                        ent                                 le                                             Commercial Daily
Co.,    Petty                                      earning                                                                            and Juchao Website
Ltd.    Loan                                       s                                                                                  (http://www.cninfo.co
    Co.,                                                                                                                          m.cn) dated 9
    Ltd.                                                                                                                          December 2014
3. Enterprise merger
□ Applicable       √ Not applicable
No enterprise merger for the Company in reporting period


VI. Implementation and its influence of equity incentive plan

□ Applicable       √ Not applicable
No implementation of equity incentive plan for the Company in reporting period


VII. Material related transactions

1. Related transaction with daily operation concerned

√ Applicable       □ Not applicable

                                                                                                                             Market
                                                                               Amount      Proportio    Settlemen
                                                           Pricing                                                           price of              Index
                     Type of                                         Price of of related      n to      t method                        Disclo
          Related                         Content of     principles                                                                                    of
 Related              related                                         related transactio   amount of                         similar
         relationsh                          related     of related                                     of related                          sure
  party             transactio                                      transactio n (10       transactio                    transactio                disclos
             ip                           transaction    transactio                                     transactio                          date
                         n                                               n    thousand      n or the
                                                              n                                                                 n                      ure
                                                                                Yuan)      same type          n
                                                                                                                         available
                                                                                                        Same as
            First                                                                                       the
Luoniush
            majority      Consumpt Accommodatio Market                Market                            transactio
an Co.,                                                                             7.66      0.38%                      -              -          -
            sharehold ion               n and catering   price        price                             n with
Ltd.
            er                                                                                          non-relate
                                                                                                        d party
Total                                                          --         --        7.66       --             --                --           --        --

Details of returned large sales                          N/A

Essentiality and persistence of related trade, as
well as reason for choosing trading with related N/A
parties (not other traders in market)

Impact on individuality of listed companies from The daily relate transaction belongs to normal transaction in market, and has no
related trade                                            influence on the Company

Dependence on related parties from the
                                                         N/A
Company, as well as related measurements

Predict on total amount of daily related trade on No differences



      司公限有份股心中游旅海东大南海                                                                           2014   文全告报度年
the way in this period according to classification,
as well as actual implementation in reporting
period

2. Related transactions by assets acquisition and sold
□ Applicable     √ Not applicable

No related transactions by assets acquisition and sold for the Company in reporting period
3. Main related transactions of mutual investment outside
□ Applicable     √ Not applicable

No main related transactions of mutual investment outside for the Company in reporting period
4. Contact of related credit and debt
√ Applicable     □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
                                                                                             Balance of       Amount of the
                                                                             Whether exist                                      Balance at
                                                                                             period-begin        period
                              Related      Type of credit and     Resulted   non-operation                                     period-end (in
     Related party                                                                              (in 10        occurrence (in
                            relationship          debt             reason      al capital                                       10 thousand
                                                                                              thousand         10 thousand
                                                                              occupying                                           Yuan)
                                                                                                Yuan)            Yuan)

                           First
                                           Debt payable to      Current
Luoniushan Co., Ltd        majority                                          Yes                         80               80
                                           related party        account
                           shareholder

Influence on operation result and
financial statue of the Company from N/A
related credit and debts


5. Other related transactions

□ Applicable     √ Not applicable
No other related transactions for the Company in reporting period


VIII. Major contract and implantation

1. Trusteeship, contract and leasing

(1) Trusteeship
□ Applicable     √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable     √ Not applicable
No contract for the Company in reporting period
(3) Leasing



      司公限有份股心中游旅海东大南海                                                                    2014   文全告报度年
□ Applicable     √ Not applicable
No leasing for the Company in reporting period


2. Guarantee

□ Applicable     √ Not applicable
No guarantee for the Company in reporting period



3. Other material contracts
□ Applicable     √ Not applicable
No other material contracts for the Company in reporting period


4. Other material transaction
□ Applicable     √ Not applicable
No other material transactions for the Company in reporting period


IX. Implementation of commitment

1. Commitments from the Company or shareholder with over 5% share held in reporting period or
continues to reporting period

√ Applicable     □ Not applicable

                                                                                   Commitment   Commitment
                  Commitments                          Accepter        Contents                                  Implementation
                                                                                        time       period

                                                 The largest      seeking                                       Till now,
                                                 shareholder of   acquisition                                   appropriate
Commitments for                                                                                 Within 3
                                                 the Company      partners to take 2014-06-27                   acquisitions
Share Merger Reform                                                                             years
                                                 Luoniushan Co., asset                                          partner hasn’t
                                                 Ltd              restructuring                                 been found.

Commitments in report of       acquisition or
equity change

Commitments in assets reorganization

Commitments make in Initial public offering
or re-financing

Other commitments for minority shareholders

Implemented commitments on time (yes or
                                                 No
no)
Detail reasons for un-complement and further
plan                                         N/A





    司公限有份股心中游旅海东大南海                                                              2014   文全告报度年
2. Concerning assts or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast

□ Applicable     √ Not applicable


X. Appointment and non-reappointment (dismissal) of CPA

Accounting firm appointed

Name of domestic accounting firm                      BDO CHINA Shu Lun Pan Certified Public Accountants LLP

Remuneration for domestic accounting firm (in 10

thousand Yuan)

Continuous life of auditing service for domestic

accounting firm

Name of domestic CPA                                  Liu Zebo, Zhu Meirong
Whether re-appointed accounting firms in this period or not
□Yes   √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor

√ Applicable     □ Not applicable

On 21 May 2014, the Company holding the fist meeting of 8th session of the Board, and decided to appointed
BDO CHINA Shu Lun Pan Certified Public Accountants LLP as the auditing institute of the internal control for
year of 2014 and the decision has been deliberated and approved in first extraordinary general meeting of 2014.
During the period, auditing fee 80,000 Yuan in total has been paid to the institute for internal control auditing

XI. Explanation from Supervisory Committee and Independent Directors (if applicable) for
“Qualified Opinion” from the CPA

□ Applicable     √ Not applicable


XII. Penalty and rectification

□ Applicable     √ Not applicable
No penalty and rectification for the Company in reporting period.


XIII. Suspension and delisting after disclosure of annual report

□ Applicable     √ Not applicable


XIV. Explanation on other significant events

□ Applicable     √ Not applicable
No explanation on other significant events for the Company in reporting period.





      司公限有份股心中游旅海东大南海              2014   文全告报度年
XV. Significant events of the subsidiaries

□ Applicable   √ Not applicable


XVI. Corporate bond offering

□ Applicable   √ Not applicable





      司公限有份股心中游旅海东大南海                                                                2014   文全告报度年
           Section VI. Changes in Shares and Particulars about Shareholders

I. Changes in shares

1. Changes in shares

                                                                                                                   In shares

                                      Before change       Increase/decrease in this time (+ , - )           After change
                                                                     Capitali
                                                               Bonu zation
                                                         New
                                    Amount       Ratio           s      of       Other       Subtotal    Amount        Ratio
                                                         issue
                                                               share public
                                                                     reserve
I. Restricted shares                16,529,200   4.54%                          -994,000 -994,000        15,535,200       4.27%

1.   State-owned shares

2. State-owned corporate
                                     3,953,400   1.09%                          -924,000 -924,000          3,029,400      0.83%
shares

3. Other domestic shares            12,575,800   3.45%                           -70,000 -70,000         12,505,800       3.43%

Including: Domestic legal
                                    12,373,800   3.40%                                   0          0    12,373,800       3.40%
person shares
Domestic natural person
                                      202,000    0.06%                           -70,000 -70,000            132,000       0.04%
shares
II. Unrestricted shares           347,570,800 95.46%                             994,000 994,000 348,564,800 95.73%

1. RMB common shares              259,570,800 71.29%                             994,000 994,000 260,564,800 71.56%

2.Domestically           listed
                                    88,000,000 24.17%                                    0          0    88,000,000 24.17%
foreign shares
III. Total shares                 364,100,000 100.00%                                                   364,100,000 100.00%
Reasons for share changed
√ Applicable   □ Not applicable
In the process of subsequent work of share-trading reform of the Company, according to relevant regulations the
release procedures were in process and part of the shareholders handling the payment of account paid in advance.
Thus, the share structure changes in the report period but retained the same in total share capital.
Approval of share changed
□ Applicable   √ Not applicable
Ownership transfer of share changed
□ Applicable   √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common



      司公限有份股心中游旅海东大南海                                                                                2014   文全告报度年
shareholders of Company in latest year and period
□ Applicable   √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable   √ Not applicable


2. Changes of restricted shares

√ Applicable   □ Not applicable
                                                                                                                                     In Share
                                       Number of
                                          shares   Number of          Number of Number of
                                        restricted   shares           new shares      shares          Restriction
          Shareholders’ name                                                                                                Released date
                                            at     released in       restricted in restricted at       reasons
                                       Period-beg the Year             the Year Period-end
                                            in
                                                                                                   Legal
Yangpu Tongrong Investment                                                                                             After remove restricted
                                        4,420,800                0              0    4,420,800 commitment in
Management Consultation Co., Ltd.                                                                                      procedures complete
                                                                                                   share reform

                                                                                                   Legal
Sanya Zhongxing Development Co.,                                                                                       After remove restricted
                                        2,541,000                0              0    2,541,000 commitment in
Ltd.                                                                                                                   procedures complete
                                                                                                   share reform

                                                                                                   Legal
                                                                                                                       After remove restricted
Sanya Real Estate Valuation Agent         924,000                0              0      924,000 commitment in
                                                                                                                       procedures complete
                                                                                                   share reform

Hainan Hong Kong-Macao                                                                             Legal
                                                                                                                       After remove restricted
International Trade Development Co.,      924,000                0              0      924,000 commitment in
                                                                                                                       procedures complete
Ltd.                                                                                               share reform

                                                                                                   Legal
Haikou Dongfang Urban credit                                                                                           After remove restricted
                                          924,000                0              0      924,000 commitment in
Cooperative                                                                                                            procedures complete
                                                                                                   share reform

                                                                                                   Legal
Hainan Branch of Bank of                                                                                               After remove restricted
                                          924,000                0              0      924,000 commitment in
Communications Co., Ltd.                                                                                               procedures complete
                                                                                                   share reform

                                                                                                   Legal
Guangzhou Dongzhan Industrial Co.                                                                                      After remove restricted
                                          924,000                0              0      924,000 commitment in
LTD                                                                                                                    procedures complete
                                                                                                   share reform

                                                                                                   Legal
Shenyang Jin’an Industrial                                                                                            After remove restricted
                                          831,600                0              0      831,600 commitment in
Corporation                                                                                                            procedures complete
                                                                                                   share reform

                                                                                                   Legal
                                                                                                                       After remove restricted
Hainan Dadonghai Tourism Co.              739,200                0              0      739,200 commitment in
                                                                                                                       procedures complete
                                                                                                   share reform




    司公限有份股心中游旅海东大南海                                                            2014   文全告报度年
                                                                                   Legal
Hainan Dongda Ocean Transport                                                                        After remove restricted
                                       660,000         0            0   660,000 commitment in
Company                                                                                              procedures complete
                                                                                   share reform

                                                                                   Legal
Guangzhou Company of Hainan                                                                          After remove restricted
                                       660,000         0            0   660,000 commitment in
International Investment Co., Ltd.                                                                   procedures complete
                                                                                   share reform

                                                                                   Legal
Southern Industrial and Trading                                                                      After remove restricted
                                       660,000         0            0   660,000 commitment in
Corporation                                                                                          procedures complete
                                                                                   share reform

                                                                                   Legal
Beijing Xueli Clothing Accessories                                                                   After remove restricted
                                       132,000         0            0   132,000 commitment in
Co., Lt.d                                                                                            procedures complete
                                                                                   share reform

                                                                                   Legal
                                                                                                     After remove restricted
Xiao Tiefeng                           132,000         0            0   132,000 commitment in
                                                                                                     procedures complete
                                                                                   share reform

                                                                                   Legal
Sanya Wangli Building Materials                                                                      After remove restricted
                                         92,400        0            0     92,400 commitment in
Sales                                                                                                procedures complete
                                                                                   share reform

                                                                                   Legal
                                                                                                     After remove restricted
Hainan Nongkeng Sanya Timber Mill        46,200        0            0     46,200 commitment in
                                                                                                     procedures complete
                                                                                   share reform

Tao Fumin                                70,000    70,000           0         0            -                    -

Haina Zhongjin Industry&Trade
                                       924,000    924,000           0         0            -                    -
Company

Total                                16,529,200   994,000           0 15,535,200           --                   --


II. Securities issue and listing

1. Previous security offering in latest three years at period-end

□ Applicable   √ Not applicable


2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure

□ Applicable   √ Not applicable


3. Existing internal staff shares

□ Applicable   √ Not applicable





       司公限有份股心中游旅海东大南海                                                                          2014   文全告报度年
III. Shareholders and actual controller

1. Number of shareholders of the Company and share-holding

                                                                                                                               In shares
                                                                                                                Total preference
                                                              Total common
                                                                                                                shareholders with
                                                              shareholders at end of
Total common shareholders in
                                                       20,901 the 5th trading day                       21,150 voting rights
reporting period-end
                                                              before annual report
                                                              disclosed                                         recovered at end of
                                                                                                                reporting period

                              Particulars about shares held above 5% by shareholders or top ten shareholders

                                                                        Total                                               Number of shares
                                                                                              Amount
                                                                     shareholder                                             pledged/frozen
                                                         Proportio                 Changes       of         Amount of
                                         Nature of         n of       s at   the
       Full name of Shareholders                                                   in report restricted unrestricted
                                        shareholder       shares       end of                                              State of
                                                           held                     period     shares       shares held                Amount
                                                                       report                                               share
                                                                                                held
                                                                       period

                                     Domestic non
Luoniushan Co., Ltd.                 state-owned           16.81% 61,190,270 0                          0 61,190,270
                                     corporate

                                     Domestic nature
Pan Guoping                                                 8.26% 30,079,791 -2949792                   0 30,079,791 Pledged          30,000,000
                                     person

China Everbright Securities (HK)
                                     Foreign corporate      7.28% 26,502,424 18294740                   0 26,502,424
Limited

                                     Domestic non
Construction Investment CITIC
                                     state-owned            1.27%     4,620,000 0                       0    4,620,000
Assets Management Co., Ltd.
                                     corporate

                                     Domestic non
Yangpu Tongrong Investment
                                     state-owned            1.21%     4,420,800 -5729282 4,420,800
Management Consultation Co., Ltd.
                                     corporate

CITRINE CAPITAL LIMITED              Foreign corporate      0.90%     3,265,200 0                       0    3,265,200

                                     Domestic non
Sanya Yongli Investment Co., Ltd.    state-owned            0.75%     2,714,110 -4215890                0    2,714,110
                                     corporate

                                     Domestic non
Sanya Zhongxing Development Co.,
                                     state-owned            0.70%     2,541,000 0            2,541,000
Ltd.
                                     corporate

                                     Domestic non
Sanya Rural Credit Cooperative       state-owned            0.63%     2,310,000 0                       0    2,310,000
                                     corporate




      司公限有份股心中游旅海东大南海                                                                           2014    文全告报度年
Yunnan International Trust Co., Ltd.
– Yuxin Grouth No. 2014-10 Group Other                        0.58%       2,100,000 0                  0   2,100,000
Capital Trust Plan

Strategy investors or general legal person becomes top
                                                           N/A
10 shareholders due to rights issued

                                                           The Company is unknown whether there exists associated relationship or belongs
Explanation on associated relationship or accordant to the consistent actor regulated by the Management Measure of Information
action among the aforesaid shareholders                    Disclosure on Change of Shareholding for Listed Company among the other
                                                           shareholders.

                                       Particular about top ten shareholders with un-restrict shares held

                                                                                                                         Type of shares
                     Shareholders’ name                   Amount of unrestricted shares held at period-end
                                                                                                                        Type           Amount

                                                                                                               RMB common
Luoniushan Co., Ltd.                                                                              61,190,270                          61,190,270
                                                                                                               share

                                                                                                               Domestically listed
Pan Guoping                                                                                       30,079,791                          30,079,791
                                                                                                               foreign share

                                                                                                               Domestically listed
China Everbright Securities (HK) Limited                                                          26,502,424                          26,502,424
                                                                                                               foreign share

                                                                                                               Domestically listed
CITRINE CAPITAL LIMITED                                                                            3,265,200                           3,265,200
                                                                                                               foreign share

                                                                                                               RMB common
Sanya Yongli Investment Co., Ltd.                                                                  2,714,110                           2,714,110
                                                                                                               share

                                                                                                               RMB common
Sanya Rural Credit Cooperative                                                                     2,310,000                           2,310,000
                                                                                                               share

Yunnan International Trust Co., Ltd. – Yuxin Grouth                                                           RMB common
                                                                                                   2,100,000                           2,100,000
No. 2014-10 Group Capital Trust Plan                                                                           share

                                                                                                               Domestically listed
JP MORGAN INTERNATIONAL BANK LIMITED                                                               2,039,071                           2,039,071
                                                                                                               foreign share

                                                                                                               RMB common
FOTIC                                                                                              1,850,101                           1,850,101
                                                                                                               share

                                                                                                               RMB common
Zhongshan Industrial Group Co., Ltd.                                                               1,848,000                           1,848,000
                                                                                                               share

Expiation on associated relationship or consistent actors The Company is unknown whether there exists associated relationship or belongs
                                                          to the consistent actor regulated by the Management Measure of Information
within the top 10 un-restrict shareholders and between
                                                          Disclosure on Change of Shareholding for Listed Company among the other
top 10 un-restrict shareholders and top 10 shareholders
                                                          shareholders.
Explanation on shareholders involving margin business
about top ten common shareholders with un-restrict         N/A
shares held

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement



      司公限有份股心中游旅海东大南海                                                                              2014   文全告报度年
dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back
agreement dealing in reporting period.




2. Controlling shareholder of the Company

Corporation

                                       Legal
                                                       Date       Organization
 Controlling shareholder           rep./person in                                Register capital                 Main business
                                                    established      code
                                   charge of unit
                                                                                                  Plantation     and     cultivation    industry;
                                                                                                  industrial     investment;       real    estate
                                                                                                  development and management; decoration;
                                                                                                  processing and sales of agricultural products,
                                                                                                  animal products, aquatic products as well as
                                                                                                  fodder(branch of the Company operates with
                                                                                                  certificate only); sales of parts of cars and
                                                                                                  motorcycles, electronics, metallic materials
                                                                                                  (franchised excluded), chemical products
                                                                                                  (franchised excluded), household appliances,
Luoniushan Co., Ltd.              Xu Zili         1987-12-19 28408974-7 880,132,000.00 modern office supplies, sporting goods,
                                                                                                  general merchandise, building material,
                                                                                                  agricultural     and     sideline     products;
                                                                                                  development and construction of trading
                                                                                                  market; rental service and warehouse
                                                                                                  service. ( self-employed the general
                                                                                                  business, relevant license or approval license
                                                                                                  should prevail for the licensing projects)(as
                                                                                                  for the approval projects that pursuant to the
                                                                                                  law, operation activities should be carried
                                                                                                  out after relevant authorities approved)
Future development                Found more details in full text of Annual Report 2014 of Luoniushan Co., Ltd.(Short form of the stock:
strategy                          Luoniushan, Stock code: 000735)
Operation result,
                            Found more details in full text of Annual Report 2014 of Luoniushan Co., Ltd.(Short form of the stock:
financial status, cash flow
                            Luoniushan, Stock code: 000735)
etc.
Equity          of       other
domestic/foreign         listed
company         with     share
                                  Found more details in full text of Annual Report 2014 of Luoniushan Co., Ltd.(Short form of the stock:
controlling      and     share
                                  Luoniushan, Stock code: 000735)
participation               by
controlling shareholder in
reporting period
Changes of controlling shareholder in reporting period
□ Applicable        √ Not applicable
No changes of controlling shareholder for the Company in reporting period





         司公限有份股心中游旅海东大南海                                                                              2014    文全告报度年
  3. Actual controller of the Company

  Natural person

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



                                                              Xu Zili


                                                              90%

                                 Hainan Huijia Investment Development Co., Ltd.


                                                71.84%

                                                  Hainan Liqin Investment Co., Ltd




  24.78%          62.85%                       50.83%                           80%                               45%
                                                                                                   20%
 Luoniushan                Haikou Yongsheng Livestock                     Hainan   Shengxing               Hainan     Guangxiang
Group Co., Ltd.            Machinery Engineering Co., Ltd.                Trade Co., Ltd.                  Trade Co., Ltd.
                                                                                                   55%


             10.92%              3.14%                                  1.64%                         0.82%


                                                   Luoniushan Co., Ltd.
                                                           16.81%



                              Hainan Dadonghai Tourism Center (Holding) Co., Ltd.




      司公限有份股心中游旅海东大南海                                                                  2014   文全告报度年
Actual controller controlling the Company by entrust or other assets management
□ Applicable   √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable   √ Not applicable

IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
□ Applicable   √ Not applicable
As far as the Company known, there are no shareholders of the Company and their concerted action people propose or implement
overweight in the Period





      司公限有份股心中游旅海东大南海                                 2014   文全告报度年

                                      Section VII. Preferred Stock

□ Applicable   √ Not applicable
The Company had no preferred stock in the reporting.





       司公限有份股心中游旅海东大南海                                                                                2014    文全告报度年
                  Section VIII. Particulars about Directors, Supervisors and Senior

                                                          Executives and Employees

I. Changes of shares held by directors, supervisors and senior executives

                                                                                                    Shares        Increasing Decreasing
                                                                                                                                                  Shares
                                  Worki                                                             held at         shares       shares held
                                                     Start dated of office    End date of office                                                  held at
                   Title           ng      Sex Age                                                 period-be       held in         in this
    Name                                                     term                   term                                                         period-en
                                  status                                                             gin          this period      period
                                                                                                                                                 d(Share)
                                                                                                    (Share)        (Share)        (Share)

                                  Curre
Li          Chairman, General ntly
                                           M    64 2001-10-25                2017-05-22                       0              0               0
Yuanbin         Manager       in
                                  office

                                  Curre
Zhao                              ntly
           Independent Director            F    62 2014-05-22                2017-05-22                       0              0               0
Man                               in
                                  office

                                  Curre
Tang                              ntly
           Independent Director            M    50 2014-05-22                2017-05-22                       0              0               0
Guoping                           in
                                  office

                                  Curre
Leng
                                  ntly
Mingqua Independent Director               M    59 2014-05-22                2017-05-22                       0              0               0
                                  in
n
                                  office

                                  Curre
                                  ntly
Li Wei           Director                  M    53 2002-06-16                2017-05-22                       0              0               0
                                  in
                                  office

                                  Curre
Liu                               ntly
                 Director                  M    46 2002-06-16                2017-05-22                       0              0               0
Juntao                            in
                                  office

                                  Curre
           Chairman of
Huang                             ntly
           supervisory                     M    45 2002-06-16                2017-05-22                       0              0               0
Wencai                            in
           committee
                                  office

                                  Curre
Wang       Supervisor                      F    48 2011-06-16                2017-05-22                       0              0               0
                                  ntly


    司公限有份股心中游旅海东大南海                                                       2014   文全告报度年
Jialing                          in
                                 office

                                 Curre
Liu                              ntly
           Supervisor                      M    38 2014-05-22        2017-05-22          0          0         0    0
Xianghai                         in
                                 office

                                 Curre
Chen                             ntly
           CFO                             F    50 2014-10-18        2017-05-22          0          0         0    0
Zhen                             in
                                 office

                                 Curre
             Vice president &
Wang                             ntly
Hongjua       secretary of the             F    38 2008-04-27        2017-05-22          0          0         0    0
n                                in
                     Board
                                 office

                                 Leave
Chen
           Independent Director the        M    69 2009-05-21        2014-05-22          0          0         0    0
Rijin
                                 post

Li                               Leave
Guangzh Independent Director the           M    68 2008-06-05        2014-05-22          0          0         0    0
ong                              post

                                 Leave
Feng
           Independent Director the        M    67 2008-06-05        2014-05-22          0          0         0    0
Daan
                                 post

                                 Leave
Li Zhi     Supervisor            the       M    34 2008-06-05        2014-05-22          0          0         0    0
                                 post

           Vice president &      Leave
Chen
           person in charge of   the       M    50 2001-06-01        2014-09-02          0          0         0    0
Liurong
           fianace               post

Total                 --              --   --   --        --                 --          0          0         0    0

II. Post-holding
Major working experience of directors, supervisors and senior executive at the present in latest five years
Directors
Mr. Li Yuanbin: born in June 1950, Han nationality, Master degree, MBA degree, senior engineer. He once held
the position of Chairman of Board of Haikou Haiyuan Co. Ltd and Yangpu Tiandi Sunshine Industry Co., Ltd,
director and general manager of the Company, now he is chairman of the Board and general manager, vice
chairman of Hainan Entrepreneurs’ Association, and permanent member of Hainan Federation of Industry
Chamber of Industry & Commerce and Vice-president of Hainan Provincial Association for Beverages Hotels and
Food, and Vice-president of Hubei Commerce Association in Hainan Province.
Mr. Liu Juntao: born in Oct. 1968, Han nationality, undergraduate degree, economist. Mr. Liu once held the


     司公限有份股心中游旅海东大南海                                                        2014   文全告报度年
position of deputy director of Construction Bank branch, secretary of the Board of Director of Luoniushan Co.
Ltd., Deputy General Manager of the Company and Deputy General Manager of Softto Co., Ltd., Secretary of the
Board of Tianmao Industry Group Co., Ltd., currently hold the post of Assistant of GM and secretary of the Board
of Tianping Auto Insurance Co., Ltd. Serve as the director of the Company since 2002.
Mr. Li Wei: born in Sep. 1961, Master Degree, CPA, Party member. Mr. Li once held the position of finance
director of Yingshan County Silk Making Plant, director and vice director of Yingshan county auditing office,
bailiff of Yingshan county Chengguan county, supervisor of Hainan Province Internal Auditing Institute, he held
the position of deputy general manager and finance officer. Now, he serves as GM of Sanya Haiya Toutism Co.,
Ltd. right now; he held the position of director of the Company since 2002.
Independent Directors

 Ms. Zhao Man, born in Feburary 1952, member of the CPC, Doctor of Economic, a professor and doctorial tutor.
 Professional affiliations so far: member of social sciences commission of the Ministry of Education, committee
 of experts member of the MHRSS, committee of experts member of the Ministry of Civil Affairs, director of
 academic council of the Center for Social Security Study of Wuhan University, the key research center for social
 sciences by CECC, standing director of The China Association for Labor Studies, standing director of China
 Social Insurance Association, member of Advisory Committee of Hubei Provincial Peoples Government,
 decision-support expert of CPC Hubei Provincial Committee, consultant expert of budget expert group for the
 Wuhan People’s Congress Standarding Committee and member of Expert Consultation Committee of CPC
 Hubei Provincial Committee Organization Department. Now she serves as independent director of hubei Kaile
 Technology Co., Ltd. and she took post as independent director of the Company since May 2014.

 Mr. Leng Mingquan, born in April 1955, on-job graduate and Master of Administration. He was secretary and
 section chief of CPC Suizhou Municipal propaganda Department and director of Haikou Office of the Suizhou
 Government. Now he serves as executive vice president, secretary and legal representative of the Confederation
 of Hainan Enterprise and Hainan Association of Enterpreneurs; executive chairman of Hainan labor relations
 tripartie meeting; inspector of Hainan Procuratorate; police-style inspector of Hainan Provincial Public Security
 Department; specially-invited inspector of Hainan Provincial Supervision Department; member of Hainan
 Provincial Literature Dederation; member of Hainan Federation of Social Science; member of Hainan Provincial
 Arbitration Committee; director of Hainan Enterprise Credit Evaluation Administration; Chairman of Hainan
 Dashun Movie & TV Cultrual Communication Co., Ltd.; independent director of Hainan Yedao Group and
 independent director of Haima Automobile Gourp Co., Ltd. He serves as independent directors of the Company
 since May 2014.

  Mr. Tang Guoping,born in August 1964, hold Doctor degree, a professor, Chinese CPA and member of CPC.
  Now he serves as dean of the MBA school of Zhongnan University of Economics and Law, and he took
  member of a council of China Accounting Society, standing director of Hubei Provincial Accounting Society,
  and also took independent directos of Boai NKY Pharmaceuticals Ltd, Tongling Trinity Technology Co., Ltd.
  and Wuhan Boiler Company Limited. He serves as independent directors of the Company since May 2014.





      司公限有份股心中游旅海东大南海                                                                     2014   文全告报度年
Supervisors
Mr. Huang Wencai: was born in Jan. 1969, undergraduate degree, Mr. Huang once held the position of vice
director of Haikou meat association factory, director of Haikou food Co. Ltd. and assistant of general manager of
Haikou food Co. Ltd., deputy GM of Haikou Luoniushan Food Processing Co., Ltd. and currently held the post of
deputy GM of Hainan Luoniushan Meat Co., Ltd.; he held the position of Chairman of Supervisory Committee of
the Company since 2002.
Ms. Wang Jialing: was born in Feb. 1966, once served as accountant of financial dept of the Company; she serves
as staff supervisor of the Company since 2011.

Mr. Liu Xianghai, born in April 1976, member of CPC, a senior accountant and senior economist; he was the
manager of finance department ( finance manager) of Shandong Highway & Bridge Construction Co., Ltd., and
CFO of the Haikou Xinxi Trading Co., Ltd. He serves as employee supervisor of the Company since May 2014.

Ms. Chen Zhen, born in July 1964, hold Master’s degree, NBA, senior accountant, served as cashier, accountant,
chief of financial office of Hainan Port Authority, Haikou Port; vice director of finance department and
accountant of Haikou Port Group Co., Ltd.; deputy chief accountant, senior accountant of head office of Hainan
Harbore & Shiping Holding Co., Ltd. She serves as CFO of the Company since October 2014.


Ms. Wang Hongjuan, was born in Feb. 1976, Undergraduate Degree, an attorney; she serves as supervisor of the
Company and Office Director, now she serves as vice president and secretary of the Board of the Company.
Post-holding in shareholder’s unit
□Applicable   √Not applicable
Post-holding in other unit
□Applicable   √Not applicable


III. Remuneration for directors, supervisors and senior executives

Decision-making procedures, determine basis and actual payment of remuneration for directors, supervisors and senior executives

1. Pursuant to the Company''s Articles of Association, the pay of directors, supervisor personnel are approved by
general meeting after the review of the board of directors and board of supervisors respectively; the pay of senior
management is approved by the board. Directors, supervisors and senior managers get their payment
corresponding to their post provided by the general meeting and the board meeting.


2. In line with performance of their duties, directors, independent directors and supervisors should receive the
reimbursement from the Company on travel expense and Articles of Association implementation expense.


Remuneration for directors, supervisors and senior executives in reporting period

                                                                                                          In ten thousand Yuan
                                              Post-holdin Total remuneration        Total remuneration    Remuneration actually
 Name             Title           Sex   Age
                                               g status    obtained from the          obtained from       obtained at period-end




    司公限有份股心中游旅海东大南海                                                               2014   文全告报度年
                                                         Company           shareholder’s unit

Li      Chairman,         General            Currently
                                    M   64                         31.09                         0                     31.09
Yuanbin Manager                              in office

Zhao      Independent                        Currently
                                    F   62                           2.4                         0                          2.4
Man       Director                           in office

Tang
          Independent                        Currently
Guopin                              M   50                           2.4                         0                          2.4
          Director                           in office
g

Leng
          Independent                        Currently
Mingqu                              M   59                           2.4                         0                          2.4
          Director                           in office
an

                                             Currently
Li Wei    Director                  M   53                           3.6                         0                          3.6
                                             in office

Liu                                          Currently
          Director                  M   46                           3.6                         0                          3.6
Juntao                                       in office

          Chairman             of
Huang                                        Currently
          supervisory               M   45                           1.8                         0                          1.8
Wencai                                       in office
          committee

Wang                                         Currently
          Supervisor                F   48                          7.85                         0                         7.85
Jialing                                      in office

Liu
                                             Currently
Xiangha Supervisor                  M   38                          5.29                         0                         5.29
                                             in office
i

Chen                                         Currently
          CFO                       F   50                          3.19                         0                         3.19
Zhen                                         in office

Wang      Vice president and
                                             Currently
Hongju Secretary of the             F   38                          21.3                         0                         21.3
                                             in office
an        Board

          Deputy GM and
Chen                                         Leave the
          person in charge of       M   50                         17.88                         0                     17.88
Liurong                                      post
          the Financial

Chen      Independent                        Leave the
                                    M   69                           1.2                         0                          1.2
Rijin     Director                           post

Li
          Independent                        Leave the
Guangz                              M   68                           1.2                         0                          1.2
          Director                           post
hong

Feng      Independent                        Leave the
                                    M   67                           1.2                         0                          1.2
Daan      Director                           post

Li Zhi    Supervisor                M   32 Leave the                3.46                         0                         3.46




    司公限有份股心中游旅海东大南海                                                                             2014   文全告报度年
                                                post

Total               --            --      --           --                   109.86                             0                    109.86

Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable


IV. Post-leaving and dismissals for directors, supervisors and senior executives

      Name               Title                 Type                Date                                   Reasons

                                       Leave the post
Chen Rijin       Independent Director while office          2014-05-22              Terms of office expired
                                       terms expired

                                       Leave the post
Feng Daan        Independent Director while office          2014-05-22              Terms of office expired
                                       terms expired

                                       Leave the post
Li
                 Independent Director while office          2014-05-22              Terms of office expired
Guangzhong
                                       terms expired

                                       Leave the post
Li Zhi           Supervisor            while office         2014-05-22              Terms of office expired
                                       terms expired
             Deputy GM and
Chen Liurong person in charge of Leave the post             2014-09-02              Leave the post for personal reason
             the Financial


V. Changes of core technology team or key technicians in reporting period (not including
directors, supervisors and senior executives)

Nil


VI. Employees of the Company

In reporting period, the Company owes 162 personnel in total, including 97 service staff, 18 financial staff, 20
technician, 7 sales personnel and 20 administration staff.

    1. Education background of employees:
                    Category of education degree                                              Educational background

Master                                                                   2 people

Undergraduate                                                            10 people

Junior college                                                           26 people

Junior college below                                                     124 people

Total                                                                    162 people



     司公限有份股心中游旅海东大南海                                                          2014   文全告报度年
     2. Pie chart of educational background:




3. Employee Pay Policy: The Company sets up a pay system compatible with the post and promotion system,
adopting post wage system. Wages are decided to post for personnel in service, technology, marketing,
management, administration, etc, and rewards given to departments’ and individual performance at the end of the
year.

4.Training Program: Pursuant to business and management need, the Company made staff recruitment and
training plan at the beginning of this year, scheduled to organize relevant personnel to take department training
and internal professional training, put special emphasis on job skills training through which special post operators
got relevant certificates to ensure production and operation safety and good running.


5. The company does not need to bear the cost of personnel retiring from positions.





      司公限有份股心中游旅海东大南海                                                                   2014   文全告报度年
                                               Section IX. Corporate Governance

I.        Brief introduction about corporate governance

During reporting period, the Company further completed governance structure and system, perfected internal
control mechanism and system construction and normalized corporate operation, strictly in accordance with
relative rules and regulations of the Company Law, Securities Law and Listing Rules. Till end of reporting period,
governance structure of the Company is basically in line with requirement of the Governance Rules of Listed
Company.
1. During the reporting period, the Company’s general meeting, board meeting and supervisors meeting exercised
the decision rights, execution rights and supervision rights respectively with clear responsibilities, mutual restrict,
operation specification and effective operation. The procedures of meeting holding, proposal review, and
decision-making in these three meetings were in compliance with relevant provisions. The board meeting
comprises strategy and development committee, audit committee, nomination committee, remuneration and
appraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing a
strong support for the board meeting’s major scientific management decision.


2. In strict accordance with the requirements of Rules Governing the Listing of Stock,                directors performed its
duties with honest, trust, diligence and independence, protected the legitimate rights and interests of minority
shareholders with loyalty to their interests; Supervisors effectively supervised and checked independent directors,
senior management and their financial situations.
Whether there are differences between the corporate governance and the \"Company Law\" and the relevant provisions of China
Securities Regulatory Commission
□ Yes √ No
There were no significant differences in corporate governance and the \"Company Law\" and the relevant provisions of China
Securities Regulatory Commission.


Developing Conditions of Special Corporate Governance Activities & Formulation and Implementation of Insider
Registration Management System
During the reporting period, the Company strictly observed relevant provisions such as Company Law, Securities
Law, and Information Disclosure Regulation for Listed Companies, and CSRC Rules on Establishment of Insider
Registration Management System for Listed companies, the Company amended Insider Registration Management
System, which was carried out and implemented strictly. According to the requirements of CSRC Notice [2010]
no. 37, the company self-inspected the implementation of Insider Registration Management System. During the
reporting period, no case of investigation or rectification by supervision department on insider’s buying and
selling stocks prior to the disclosure major sensitive information which significantly influences the Company''s
share price.





       司公限有份股心中游旅海东大南海                                                                                 2014   文全告报度年
II. Annual shareholders’ general meeting and extraordinary shareholders’ general meeting
held in reporting period
1. Annual Shareholders’ General Meeting in the report period
 Session of                      Name of                                                          Date of
                    Date                                          Resolution                                            Index of disclosure
  meeting                     meeting motion                                                     disclosure

                                                 1. “work report of the Board for year of
                                                 2013”;
                                                 2. “work report of Supervisory
                                                 Committee for year of 2013”
                                                 3. “Annual report of 2013 and summary”                      The “Resolution Notice of
                                                                                                               Annual Shareholders’ General
                                                 4. “Financial Statement for year of
Annual                                                                                                         Meeting of 2013” (No.:
                              Annual             2013”;
shareholders                                                                                                   2014-016) published on
                2014-05-2 shareholders’         5. “Profit distribution plan for year of
’ general                                                                                     2014-05-22      Securities Times, Hong Kong
                1             general meeting 2013”;
meeting of                                                                                                     Commercial Daily and Juchao
                              of 2013            6. “Accrual and charge off of Assets for
2013                                                                                                           website
                                                 impairment ”;
                                                                                                               (http://www.cninfo.com.cn) dated
                                                 7. “proposal of re-engaged financial                         22 May 2014 respectively
                                                 auditing institution”;
                                                 8. “general election of the Board”;
                                                 9. “general election of supervisory
                                                 committee”


2. Extraordinary shareholders’ general meeting in the report period


   Session of                    Name of meeting
                       Date                                  Situation           Date of disclosure                Index of disclosure
      meeting                           motion

                                                                                                      The resolution Notice ”resolution of 1st
                                                     1. “Proposal of
1st                                                                                                   extraordinary general meeting for year of
                                                     re-engaged financial
extraordinary                   1st extraordinary                                                     2014” (No.: 2014-024) published on
                                                     auditing institution” ;
general             2014-06-10 general meeting                                  2014-06-11            Securities      Times,     Hong         Kong
                                                     2. “proposal of
meeting for                     for year of 2014                                                      Commercial Daily and Juchao website
                                                     revised Article of
year of 2014                                                                                          (http://www.cninfo.com.cn)         dated   11
                                                     Association”
                                                                                                      June 2014

                                                                                                      The resolution Notice ”resolution of 2nd
2nd                                                  ”proposal of                                    extraordinary general meeting for year of
extraordinary                   2nd extraordinary commitment changed                                  2014” (No.: 2014-031) published on
general             2014-06-27 general meeting       by majority                2014-06-28            Securities      Times,     Hong         Kong
meeting for                     for year of 2014     shareholder of the                               Commercial Daily and Juchao website
year of 2014                                         Company”                                        (http://www.cninfo.com.cn)         dated   28
                                                                                                      June 2014





    司公限有份股心中游旅海东大南海                                                                      2014   文全告报度年
3. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□ Applicable      √ Not applicable

III. Responsibility performance of independent directors in report period
1. The attendance of Board meetings and shareholders’ general meeting for independent directors
                                            Attendance of Board meetings for independent directors

                          Times of Board
                                                                                                                     Whether absent
                              meeting                               Times of          Times of
Name of independent                            Times of present                                      Times of        the Meeting for
                            supposed to                            attending by       entrusted
    director                                  in person                                          Absence         the second time
                            attend in the                         communication       presence
                                                                                                                     in a row or not
                           report period

Zhao Man                         7                    0                 7                 0             0                  No

Tang Guoping                     7                    0                 7                 0             0                  No

Leng Mingquan                    7                    0                 7                 0             0                  No

Times presented in shareholders’
general meeting by independent
directors

Explanation of absent the Board Meeting for the second time in a row

Nil

2. Objection for relevant events from independent directors

Whether independent directors come up with objection about company’s relevant matters or not
□ Yes √ No
Independent directors has no objections for relevant events in reporting period

3. Other explanation about responsibility performance of independent directors
Whether the opinions from independent directors have been adopted or not
√Yes   □ No
Explanation on advice that accepted/not accepted from independent directors

Suggestion of re-enforce foreign capital introduction and good assets while operated currently main business with
purpose of change the single operation in main business; The Company has been working on it and no results
come at present.

IV. Responsibility performance of subordinate special committee of the Board in report
period

The board meeting comprises four special committees, who carry out smoothly their duties accordingly to their
working conditions, providing a strong support for the board meeting’s major scientific management decision.
Each special committee performed their duties as follows:

1. Audit Committee
During the reporting period, in the process of annual financial report auditing 2014 process, audit committee


      司公限有份股心中游旅海东大南海                                                                     2014   文全告报度年
members worked in accordance with the relevant requirements by faithfully performing audit committee’s
responsibilities:

Before the entrance of annual examination certified public accountants, the audit committee members listened to
the management statements of the Company''s operating condition in 2014 and the financial status as well as the
report on annual financial report audit work arrangement of 2014, communicated with annual examination
certified public accountants about issues such as personnel structure of the working group, audit plan, risk
judgment, annual audit focus and so on; In early January 2015, in annual report audit process, audit committee
members listened to the work report by annual examination certified public accountants and the company
management; At the middle of January 2015, audit committee members reviewed submitted financial and
accounting reports. The financial and accounting reports audited was formatted strictly to Accounting Standards for
Business Enterprises and Accounting System for Business Enterprises, and this report fairly reflected the Company’s assets,
liabilities, rights and interests and operating situation without significant errors and omissions. The annual audit
report of 2014 by audit institutions was agreed to be submitted to the board.

The Company''s board of directors regarded that the external auditors Lixin Certified Public Accountants (special
ordinary partnership) faithfully performed the audit responsibility, and suggested to renew as the Company’s
annual financial audit of 2015.

2. Remuneration committee
During the reporting period, the remuneration committee members of the Company board carried out their duties
strictly to relevant regulations, inspected remuneration policies and programs for directors, supervisors and senior
managers, led the company to perfect the remuneration system, and appraised the performance of directors,
supervisors and senior management according to senior manager remuneration appraisal. By the end of the
reporting period, the Company has not implemented option scheme.

3. Strategy committee
During the reporting period, the board strategy committee put forward valuable opinions on decision-making such
as development planning and investment decisions, thus enhanced the scientific decision-making and core
competitiveness of the Company, improved the Company’s efficiency of major investment decisions and decision
quality.

4. Nomination committee
During the reporting period, the Company continue to hired Mr. Li Yuanbin as the GM of the Company, Mr.
Chen Liurong as deputy GM and financial administrator and Ms. Wang Hongjuan was engaged as deputy GM of
the Company as well as secretary of the Board with the same term as to 8th session of the Board. On 2 September
2014, former deputy GM and financial administrator Mr. Chen Liurong requested from the deputy GM and
financial administrator due to personal reasons, and Ms. Chen Zhen was engaged as CFO of the Company with
the same term as to 8th session of the Board.


V. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objections for the supervise matters in reporting period
VI. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, institution and finance


      司公限有份股心中游旅海东大南海                                                       2014   文全告报度年
Statement of Five Independences between the Company and the Controlling Shareholders

1. Business Independence: the Company business operates independently with integrated structure, and is free
from horizontal competition with controlling shareholders. The controlling shareholders do not intervene the
Company’s operation either directly or indirectly.

2. Personnel Independence, the Company is independent on controlling shareholders in the aspects of labor,
personnel and Remuneration management.

3. Assets Independence: the Company has proprietary rights and control rights on its assets. Controlling
shareholders occupy no assets or funds of the listed company.
4. Institution Independence: the company''s board of directors and board of supervisors, managers and other
internal institutions operate independently and manage independently with integrated structures.

5. Financial Independence: the Company has an independent financial sector, and sets up independent accounting
system and financial management system. The Company opens independent bank accounts and pay independent
taxes to laws without controlling shareholders’ intervention.

VII. Horizontal competition

□ Applicable   √ Not applicable
VIII. Appraisal and incentive mechanism for senior executives
1. Pursuant to People-oriented Principle, the Company employs outstanding persons in long-term, and admits the
best candidates on the premise of openness, fairness, justice. Those who pass trial comprehensive appraisal and be
nominated by general managers and approved by the board meeting can be employed as senior management of the
Company.
2. The Company adopts a clear appraisal system in which assessment methods are made to the performance and
duty fulfillment of senior management. Assessments are carried out monthly and annually by the same level and
higher level and the results are taken as factors for post lift and rewards and punishment of senior management.
3. The company sets up effective incentive mechanism, including material incentives and spiritual incentives. The
clear rewards and punishments, balance between remuneration and work performance, survival of fittest
encourage senior management to make constantly progress and improve their own comprehensive ability which in
turn help the Company develop rapidly.





     司公限有份股心中游旅海东大南海                                                                        2014    文全告报度年
                                      Section X. Internal control

I. Construction of internal control

During the reporting period, in strictly accordance with Company Law, Securities Law, Rules Governing the
Listing of Stocks and other relevant laws, regulations and other normative documents requirements, the Company
has established a relatively perfect internal organization framework, and formulated some internal control systems,
formulated the Enterprise Risk Management and Internal Control Manual and established a more complete IC
mechanism. In the Articles of Association, the rights and obligations of general meeting, board of directors, board
of supervisors and managers are well-defined, which are executed strictly in the actual work. These are largely in
line with relevant provisions of Basic Norms of Enterprises Internal Control, Supporting Guidelines for Enterprise
Internal Control and Internal Control Guidelines for Listed Companies issued by Shenzhen stock exchange.
The Self-evaluation Report of IC for year of 2014 has been deliberated and approved by 4th meeting of 8th
session of the Board, more details can be found in Juchao Website.


II. Statement of the Board on responsibility for internal control
In line with the regulation mechanism of enterprise’ internal control, Board of the Company has responsibility to
established and improve its internal control and implemented internal control effectively, evaluate the
effectiveness and release the evaluation report of internal control strictly according to the facts. Supervisory
committee kept eyes on the implementation and establishment of internal control from the Board. Managers are
responsible for organizing and leading the daily running of the Company’s internal control. Board of the Company,
Supervisory Committee, Directors, Supervisors and Senior Executives guarantee that there are no any fictitious
statements, misleading statements or important omissions carried in the Report, and shall take all responsibilities,
individual and/or joint, for the reality, accuracy and completion of the whole contents.

The Company’s internal control aims at guarantee a legal operation management reasonably, assets safety, the real
and completion of the financial report and relevant information, improve the business results and achieve the
development strategy. Because of the inherent feature of internal control, reasonable assurance only can be
provided for the realization of the above mentioned targets. Furthermore, inappropriate internal control may be
resulted by the changes of conditions, or failure of controlling policy and procedures implementation, the validity
of internal control that calculated according to evaluation results of internal control has a certain risks.



III. Bases for establishment of financial report internal control
Pursuant to relevant state laws and regulations such as Accounting Law, Accounting Standard for Business
Enterprises, Norms of Enterprises Internal Control and supporting guidelines, the Company, combined with its
actual situation developed several systems such as Accounting System of the Company, Financial Management
System and Internal Audit System, and strictly implemented these systems. During the reporting period, no major
defect of internal control has been found in the financial report.
IV. Appraisal report of internal control
                 Details of major defects in appraisal report of internal control that found in reporting period





      司公限有份股心中游旅海东大南海                                                                      2014   文全告报度年
No major defects being found in Internal Control during the Period

Date of appraisal report of internal
                                       2015-01-31
control (full-text) disclosed

Index of appraisal report of internal Relevant information found in Self-evaluation Report of Internal Control for 2014 published
control (full-text) disclosed          on Juchao Website dated 31 January 2015


V. Auditing report and authentication report of internal control

Auditing report of IC

                                          Deliberation section of auditing report of IC
To All Shareholders of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.:


     In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the
practicing standards of Chinese Certified Public Accountant, we audited the effective-ness of the financial
report’s internal control for Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (the Company) dated 31
December 2014.
     I. As for responsibility of internal control, the Company established and improved and implemented internal
control effectively pursuit to Basic Norms of Enterprises Internal Control, Supporting Guidelines for Enterprise
Internal Control and Evaluation Guild lines for Enterprises Internal Control, and board of the director is
responsible for evaluating its effectiveness.
     II. Auditor’s responsibilities: Our responsibility is to express an opinion on the effectiveness of internal
control for the financial statements based on our audit. And disclosed major deficits of noted internal control
without financial statement concerned.
     III. Inherent feature of internal control: the internal control has an inherent limitation, and exist mistakes
that can not prevent and being discovered. Moreover, the internal control might be inappropriate due to the
changes of conditions, or fails to follow the controlling policies and procedures, to speculate future effectiveness
of the internal control in line with the auditing result has a certain risks.
     IV. Auditing opinion: in our opinion, the Company, in line with Basic Norms of Enterprises Internal Control
and relevant regulations, shows an effectiveness internal control of financial report in all major aspects dated 31
December 2014.


BDO CHINA Shu Lun Pan                                   Certified Public Accountant of China:Liu Zebo
Certified Public Accountants LLP
                                                        Certified Public Accountant of China:Zhu Meirong
Shanghai, China                                         January 29, 2015


Disclosure date of audit report
                                2015-01-31
of internal control (full-text)
Index of audit report of               Relevant information found in Audit Report of Internal Control for 2014
internal control (full-text)           published on Juchao Website dated 31 January 2015
Issued a modified audit opinions for internal control



      司公限有份股心中游旅海东大南海                                                                      2014   文全告报度年
□Y √N
Auditing report of internal control issued by CPA shows the same opinion as self-evaluation report issued by the Board
√Y □N

VI. Establishment and enforcement of Accountability Mechanism for Major Errors in Annual
Report
The Company strictly enforced the Annual Report Disclosure Major Mistake Responsibility System. During the
reporting period, the Company has made no major accounting errors correction, no major information omissions
supplement or no earnings forecast correction.





       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
                                  Section XI. Financial Report
I. Audit report
Type of audit opinion                                      Standard unqualified opinion
Signing date of audit report                               2015-01-29
Name of audit institute                                    BDO CHINA Shu Lun Pan Certified Public Accountants LLP
Document serial of audit report                            PCPAR [2015] No.110108
Name of the CPA                                            Liu Zebo, Zhu Meirong

                                         Auditor’s Report
To All Shareholders of Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.:
We have audited the accompanying financial statements of Hainan Dadonghai Tourism Center
(Holdings) Co., Ltd. (hereinafter referred to as “the Company”), which comprise the balance sheet
as at December 31, 2014, and the income statement, statement of cash flows and statement of
changes in owners’ equity for the year then ended, and notes to the financial statements.
(I) Management’s Responsibilities for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these
financial statements. This responsibility includes: (1) preparing the financial statements in
accordance with the requirements of Accounting Standards for Business Enterprises to achieve a
fair presentation; (2) designing, implementing and maintaining internal control that is necessary to
ensure that the financial statements are free from material misstatements, whether due to frauds or
errors.
 (II) Auditor’s Responsibilities


Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Auditing Standards for Certified Public Accountants in
China. Those standards require that we comply with professional and ethical requirements of
Chinese certified public accountants, and plan and perform the audit to obtain reasonable
assurance whether the financial statements are free from material misstatements.


An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgments,
including the assessment of the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments, we consider the internal control
relevant to the preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the management, as well as evaluating the overall presentation of the financial statements.


       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
(III) Opinion
In our opinion, the financial statements of the Company are prepared, in all material respects, in
accordance with Accounting Standards for Business Enterprises and present fairly the financial
position of the Company as at December 31, 2014 and its operating results and cash flows for the
year then ended.


BDO CHINA Shu Lun Pan                                    Certified Public Accountant of China:Liu Zebo
Certified Public Accountants LLP

                                                         Certified Public Accountant of China:Zhu Meirong



Shanghai, China                                          January 29, 2015



II. Financial Statement

Expressed in Renminbi unless otherwise stated
1. BALANCE SHEET

Prepared by HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.
                                                       2014-12-31                                   In RMB

                                   Item                                     Closing Balance         Opening Balance

Current assets:

  Monetary funds                                                                    22,550,289.54            6,835,685.46

       Settlement funds

       Lending funds

       Financial liability measured by fair value and with variation
reckoned into current gains/losses

       Derivative financial liability

       Notes receivable

       Accounts receivable                                                           2,632,379.02            3,509,377.76

       Prepayments                                                                      40,778.52             201,053.21

       Insurance receivable

       Reinsurance receivables

       Contract reserve of reinsurance receivable

       Interest receivable



       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
       Dividends receivable

       Other receivables                                                  332,661.26      3,299,051.36

       Purchase restituted finance asset

       Inventories                                                        307,057.29       317,334.23

       Divided into assets held for sale

       Non-current assets maturing within one year                        196,354.90       386,191.87

       Other current assets

Total current assets                                                    26,059,520.53    14,548,693.89

Non-current assets:

       Loans and payments on behalf

       Available-for-sale financial assets                               4,500,000.00    10,000,000.00

       Held-to-maturity investments

       Long-term receivables

       Long-term equity investments

       Investment real estate

       Fixed assets                                                     56,301,360.07    60,628,905.47

       Construction in progress

       Project materials

       Disposal of fixed assets

       Productive biological assets

       Oil and natural gas assets

       Intangible assets                                                27,220,117.68    28,586,908.43

       Research and development costs

       Goodwill

       Long-term deferred expenses                                                         196,354.90

       Deferred tax assets

       Other non-current assets

Total non-current assets                                                88,021,477.75    99,412,168.80

Total assets                                                           114,080,998.28   113,960,862.69

Current liabilities

       Short-term borrowings

       Loan from central bank

       Absorbing deposit and interbank deposit

       Capital borrowed

       Financial liability measured by fair value and with variation



       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
reckoned into current gains/losses

       Derivative financial liability

       Notes payable

       Accounts payable                                   2,390,345.19     2,171,955.96

       Accounts received in advance                       1,360,245.91     1,599,994.81

       Selling financial asset of repurchase

       Commission charge and commission payable

       Wage payable                                       3,451,674.05     3,549,851.04

       Taxes payable                                     -1,155,972.31    -1,164,999.99

       Interest payable

       Dividend payable

       Other accounts payable                            23,619,371.11    25,892,213.01

       Reinsurance payables

       Insurance contract reserve

       Security trading of agency

       Security sales of agency

       Divided into liability held for sale

       Non-current liabilities due within 1 year

       Other current liabilities

Total current liabilities                                29,665,663.95    32,049,014.83

Non-current liabilities:

       Long-term loans

       Bonds payable

         Including: preferred stock

                 Perpetual capital securities

       Long-term account payable

       Long-term wages payable

       Special accounts payable

       Projected liabilities

       Deferred income

       Deferred income tax liabilities

       Other non-current liabilities

Total non-current liabilities

Total liabilities                                        29,665,663.95    32,049,014.83

Owners’ equity:

       Share capita                                     364,100,000.00   364,100,000.00

       Other equity instrument


       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
         Including: preferred stock

                 Perpetual capital securities

       Capital public reserve                                                       54,142,850.01            54,142,850.01

       Less: Inventory shares

       Other comprehensive income

       Reasonable reserve

       Surplus reserve

       Provision of general risk

       Retained profit                                                            -333,827,515.68        -336,331,002.15

Total owner’s equity attributable to parent Company                                84,415,334.33            81,911,847.86

       Minority interests

Total owner’s equity                                                               84,415,334.33            81,911,847.86

Total liabilities and owner’s equity                                              114,080,998.28         113,960,862.69


Legal Representative: Li Yuanbin                       Accounting Principal: Chen Zhen


Accounting Firm’s Principal: Liu Xianghai




2. Profit statement
                                                                                                    In RMB

                                      Item                                  Current Period            Last Period

I. Total operating income                                                         20,202,134.10              23,660,779.80

       Including: Operating income                                                20,202,134.10              23,660,779.80

                 Interest income

                 Insurance gained

                 Commission charge and commission income

II. Total operating cost                                                          24,932,122.13              25,943,800.06

       Including: Operating cost                                                     337,785.89                     7,841.74

              Interest expense

              Commission charge and commission expense

              Cash surrender value

              Net amount of expense of compensation

              Net amount of withdrawal of insurance contract reserve

              Bonus expense of guarantee slip

              Reinsurance expense



       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
              Operating tax and extras                                    1,135,598.54    1,334,203.53

              Sales expenses                                             11,783,411.89   11,896,106.61

              Administration expenses                                    11,423,202.87   12,463,470.06

              Financial expenses                                            39,516.35       54,758.44

              Losses of devaluation of asset                               212,606.59      187,419.68

       Add: Changing income of fair value(Loss is listed with “-”)

             Investment income (Loss is listed with “-”)                4,020,000.00

             Including: Investment income on affiliated Company and
joint venture

            Exchange income (Loss is listed with “-”)

III. Operating profit     (Loss is listed with “-”)                     -709,988.03    -2,283,020.26

       Add: Non-operating income                                          3,220,345.27     125,394.92

            Including: Disposal earnings of non-current asset             3,126,454.22         795.12

       Less: Non-operating expense                                            6,870.77      41,694.62

            Including: Disposal loss of non-current asset                     6,870.77      40,494.62

IV. Total Profit   (Loss is listed with “-”)                            2,503,486.47   -2,199,319.96

       Less: Income tax

V. Net profit (Net loss is listed with “-”)                             2,503,486.47   -2,199,319.96

       Net profit attributable to owner’s equity of parent Company       2,503,486.47   -2,199,319.96

       Minority shareholders’ gains and losses

VI. Net after-tax of other comprehensive income

  Net after-tax of other comprehensive income attributable to owners
of parent company

        (I) Other comprehensive income items which will not be
reclassified subsequently to profit of loss

              1. Changes as a result of re-measurement of net defined
benefit plan liability or asset

              2. Share of the other comprehensive income of the
investee accounted for using equity method which will not be
reclassified subsequently to profit and loss

        (II) Other comprehensive income items which will be
reclassified subsequently to profit or loss

              1. Share of the other comprehensive income of the
investee accounted for using equity method which will be reclassified
subsequently to profit or loss

              2. Gains or losses arising from changes in fair value of
available-for-sale financial assets



       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
              3. Gains or losses arising from reclassification of
held-to-maturity investment as available-for-sale financial assets

              4. The effect hedging portion of gains or losses arising
from cash flow hedging instruments

              5. Translation differences arising on translation of foreign
currency financial statements

              6. Other

  Net after-tax of other comprehensive income attributable to minority
shareholders

VII. Total comprehensive income                                                           2,503,486.47                 -2,199,319.96

       Total comprehensive income attributable to owners of parent
                                                                                          2,503,486.47                 -2,199,319.96
Company

       Total comprehensive income attributable to minority shareholders

VIII. Earnings per share:

        (i) Basic earnings per share                                                           0.0069                       -0.0060

        (ii) Diluted earnings per share                                                        0.0069                       -0.0060

Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before
combination, and realized 0 Yuan at last period for combined party


Legal Representative: Li Yuanbin                        Accounting Principal: Chen Zhen


Accounting Firm’s Principal: Liu Xianghai


3. Cash flow statement

                                                                                                              In RMB

                                           Item                                              Current Period        Last Period

I. Cash flows arising from operating activities:

       Cash received from selling commodities and providing labor services                      19,224,101.23       22,389,511.92

       Net increase of customer deposit and interbank deposit

       Net increase of loan from central bank

       Net increase of capital borrowed from other financial institution

       Cash received from original insurance contract fee

       Net cash received from reinsurance business

       Insured savings and net increase of investment

       Net increase of amount from disposal financial assets that measured by fair value
and with variation reckoned into current gains/losses

       Cash received from interest, commission charge and commission



       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
       Net increase of capital borrowed

       Net increase of returned business capital

       Write-back of tax received

       Other cash received concerning operating activities                                3,825,887.33      857,713.68

Subtotal of cash inflow arising from operating activities                                23,049,988.56   23,247,225.60

       Cash paid for purchasing commodities and receiving labor service                   4,327,919.22    5,186,782.24

       Net increase of customer loans and advances

       Net increase of deposits in central bank and interbank

       Cash paid for original insurance contract compensation

       Cash paid for interest, commission charge and commission

       Cash paid for bonus of guarantee slip

       Cash paid to/for staff and workers                                                 8,787,810.43    7,479,198.86

       Taxes paid                                                                         2,575,932.59    3,189,361.65

       Other cash paid concerning operating activities                                    4,926,258.24    4,776,514.08

Subtotal of cash outflow arising from operating activities                               20,617,920.48   20,631,856.83

Net cash flows arising from operating activities                                          2,432,068.08    2,615,368.77

II. Cash flows arising from investing activities:

       Cash received from recovering investment                                          10,000,000.00

       Cash received from investment income                                               4,020,000.00

       Net cash received from disposal of fixed, intangible and other long-term assets        4,200.00       51,700.00

       Net cash received from disposal of subsidiaries and other units

       Other cash received concerning investing activities

Subtotal of cash inflow from investing activities                                        14,024,200.00       51,700.00

       Cash paid for purchasing fixed, intangible and other long-term assets               167,410.00     1,026,052.00

       Cash paid for investment                                                            574,254.00    10,000,000.00

       Net increase of mortgaged loans

       Net cash received from subsidiaries and other units

       Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities                                         741,664.00    11,026,052.00

Net cash flows arising from investing activities                                         13,282,536.00   -10,974,352.00

III. Cash flows arising from financing activities:

       Cash received from absorbing investment

       Including: Cash received from absorbing minority shareholders’ investment by
subsidiaries

       Cash received from loans




       司 公 限 有 份 股 心 中 游 旅 海 东 大 南 海
2014                                          文全告报度年
       Cash received from issuing bonds

       Other cash received concerning financing activities

Subtotal of cash inflow from financing activities

       Cash paid for settling debts

       Cash paid for dividend and profit distributing or interest paying

       Including: Dividend and profit of minority shareholder paid by subsidiaries

       Other cash paid concerning financing activities

Subtotal of cash outflow from financing activities

Net cash flows arising from financing activities

IV. Influence on cash due to fluctuation in exchange rate

V. Net increase of cash and cash equivalents                                             15,714,604.08   -8,358,983.23

       Add: Balance of cash and cash equivalents at the period -begin                     6,835,685.46   15,194,668.69

VI. Balance of cash and cash equivalents at the period -end                              22,550,289.54    6,835,685.46


Legal Representative: Li Yuanbin                       Accounting Principal: Chen Zhen


Accounting Firm’s Principal: Liu Xianghai





       司公限有份股心中游旅海东大南海                                                                        2014   文全告报度年
4. Statement on Changes of Owners’ Equity

Current Period
                                                                                                                                                                                      In RMB
                                                                                                             Current Period
                                                                             Owners’ equity attributable to the parent Company
                                                        Other
                                                                                                                                             Provision
                 Item                                   equity instrument                         Less:     Other                                                      Minority Total owners’
                                                                                  Capital                                 Reasonable Surplus of
                                     Share capital                Perpetual                       Inventory comprehensive                              Retained profit interests equity
                                                        Preferred                 reserve                                 reserve    reserve general
                                                                  capital Other                   shares    income
                                                        stock                                                                                risk
                                                                  securities
I. Balance at the end of the last year 364,100,000.00                             54,142,850.01                                                        -336,331,002.15          81,911,847.86
      Add: Changes of accounting
policy
            Error correction of the
last period
           Enterprise combine under
  the same control
         Other
II. Balance at the beginning of this
                                     364,100,000.00                               54,142,850.01                                                        -336,331,002.15          81,911,847.86
year
III. Increase/ Decrease in this year
                                                                                                                                                       2,503,486.47             2,503,486.47
(Decrease is listed with “-”)
  (i) Total comprehensive income                                                                                                                       2,503,486.47             2,503,486.47
 (ii)   Owners’ devoted      and
decreased capital
1.Common shares invested by
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves

      司公限有份股心中游旅海东大南海                                                                         2014   文全告报度年
2. Withdrawal of general risk
provisions
3. Distribution for owners (or
shareholders)
4. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(VI)Others
IV. Balance at the end of the report
                                     364,100,000.00                               54,142,850.01                                                        -333,827,515.68          84,415,334.33
period
Last Period
                                                                                                                                                                                      In RMB
                                                                                                               Last Period
                                                                             Owners’ equity attributable to the parent Company
                                                        Other
               Item                                                                                                                          Provision
                                                        equity instrument                         Less:     Other                                                      Minority Total owners’
                                                                                  Capital                                 Reasonable Surplus of
                                     Share capital                Perpetual                       Inventory comprehensive                              Retained profit interests equity
                                                        Preferred                 reserve                                 reserve    reserve general
                                                                  capital Other                   shares    income
                                                        stock                                                                                risk
                                                                  securities
I. Balance at the end of the last year 364,100,000.00                             54,142,850.01                                                        -334,131,682.19          84,111,167.82
      Add: Changes of accounting
policy
            Error correction of the
last period

      司公限有份股心中游旅海东大南海                                       2014   文全告报度年
          Enterprise combine under
the same control
          Other
II. Balance at the beginning of this
                                     364,100,000.00   54,142,850.01                              -334,131,682.19   84,111,167.82
year
III. Increase/ Decrease in this year
                                                                                                 -2,199,319.96     -2,199,319.96
(Decrease is listed with “-”)
  (i) Total comprehensive income                                                                 -2,199,319.96     -2,199,319.96
 (ii)   Owners’    devoted      and
decreased capital
1.Common shares       invested   by
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4 Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners (or
shareholders)
4. Other
(IV) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Other
(V) Reasonable reserve


      司公限有份股心中游旅海东大南海                                       2014   文全告报度年
1. Withdrawal in the report period
2. Usage in the report period

(VI)Others

IV. Balance at the end of the report
                                     364,100,000.00   54,142,850.01                              -336,331,002.15   81,911,847.86
period





     司公限有份股心中游旅海东大南海                                                        2014   文全告报度年
III. Company profile

Hainan Dadonghai Tourism Center (Holdings) Co., Ltd. (hereinafter referred to as “the Company”), was founded
as a standardized LLC on April 26, 1993, reorganized and incorporated on the basis of the former Hainan Sanya
Dadonghai Tourism Center Development Ltd. and approved by the Hainan Provincial Stock System
Experimentation Leading Team Office with a document of Qiong Gu Ban Zi [1993] No. 11. On May 6, 1996, the
Company underwent a restructuring and a corresponding division under the approval of the Hainan Provincial
Securities Administration Office with a document of Qiong Zheng Ban [1996] No. 58. On October 8, 1996 and
January 28, 1997, the Company, with duly approval, went public by issuing 80 million shares of B stock and 14
million shares of A stock respectively on Shenzhen Security Exchange. On June 20, 2007, the Company
experienced a reform of non-tradable shares, through which non-tradable share holders of the Company got
circulating right of their shares by paying shares to tradable share holders, and tradable share holders got paid
three shares for every ten of their shares. The Company operates business in the industry of tourism and catering
services.


As of December 31, 2014, the Company’s total capital stock is 364,100,000 shares. The Company’s registered
capital is RMB 364.1 million. The legal representative is Li Yuanbin. The registration number of its Business
License for Enterprise Legal Person (Duplicate) is 4600001003983. The legal registered residence is Dadonghai,
Hedong District, Sanya. Its scope of business includes: accommodation and catering industry (limited to those
operated by branches); photography; operation of ornamental plant bonsai, knitwear and textiles, general
merchandise, hardware and electrical equipment, chemical products (excluding those require specialized licenses),
daily necessities, industrial means of production (excluding those require specialized licenses), metal materials
and machinery equipment; commission sale of plane, bus, train and ship tickets (items in require of administrative
permission shall be operated under license).


The scope of consolidated financial statements include the Company headquarter and South China Grand Hotel
with Independent accountability.




IV. Basis of preparation for financial statements

1. Basis of preparation


Based on going concern, according to actually occurred transactions and events, the Company prepares its
financial statements in accordance with the Accounting Standards for Business Enterprises – Basic Standards and
concrete accounting standards, Accounting Standards for Business Enterprises – Application Guidelines,
Accounting Standards for Business Enterprises – Interpretations and other relevant provisions (collectively known
as “Accounting Standards for Business Enterprises”), as well as the disclosure requirements of Regulation on the
Preparation of Information Disclosure of Companies Issuing Public Shares No.15 - General Requirements for


      司公限有份股心中游旅海东大南海                                                           2014   文全告报度年
Financial Reports (as revised in 2014) by the China Securities Regulatory Commission.


2     Going concern
The Company is currently operating normal, net cash flows from operating activities is positive, the Company is
expected to continue operate as going concern in the next twelve months.


V.        Principal accounting policies and estimates
Tips of accounting policies and estimates:
Nil

1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflect the Company’s financial position as at December 31, 2014,
and its operating results, cash flows and other related information for the year then ended.


2. Accounting period


The accounting year is from January 1 to December 31 in calendar year.

3. Operating cycle


The operating cycle of the Company is twelve months.

4. Functional currency


RMB is adopted as the functional currency.
5. Accounting treatment for business combinations under the same control and those not under the same
control
Nil


6. Methods for preparation of consolidated financial statements
Nil

7. Accounting treatment for joint venture and joint operation

Nil



8. Recognition criteria of cash and cash equivalents


For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the
unrestricted deposit. The term “cash equivalents” refers to short-term (maturing within three months from



     司公限有份股心中游旅海东大南海                                                              2014   文全告报度年
acquisition) and highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.


9. Foreign business and foreign currency transactions
Foreign currency transactions are converted into RMB for recording purpose at the spot exchange rate on the date
when the transaction occurs.
Balances of foreign currency monetary items are measured at the spot exchange rate on the balance sheet date.
The exchange difference arising therefrom shall be included in the current profit and loss, except that those
exchange differences arising from the special borrowings of foreign currency related to the acquired and
constructed assets qualified for capitalization shall be dealt with according to the principle of borrowing cost
capitalization. Foreign currency non-monetary items measured at historical costs shall still be converted at the
spot exchange rates on the date when the transactions occur, and the amount in functional currency shall remain
unchanged. Foreign currency non-monetary items measured at fair value shall be translated at the spot exchange
rates on the date when the fair value is determined. The exchange difference arising therefrom shall be included in
the current profit and loss or capital reserves.

10. Financial instruments


Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Financial assets and liabilities are classified into the following categories according to the purpose of acquisition:
financial assets or financial liabilities measured at fair value and whose variation is included in the current profit
and loss, including financial assets or financial liabilities held for trading and financial assets or financial
liabilities directly designated to be measured at fair value through current profit and loss, held-to-maturity
investments, accounts receivables, available-for-sale financial assets and other financial liabilities, etc.

2. Recognition basis and measurement method of financial instruments
(1) Financial assets (financial liabilities) measured at fair value and whose variation is included in the current
profit and loss
Financial assets (financial liabilities) are initially recorded at fair values when acquired (deducting cash dividends
that have been declared but not distributed and bond interests that have matured but not been drawn). Relevant
transaction expenses are included in the current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
Difference between the fair value and initial book-entry value is recognized as investment income upon disposal;
meanwhile, adjustment is made to gains or losses from changes in fair values.



     司公限有份股心中游旅海东大南海                                                           2014   文全告报度年
(2) Held-to-maturity investments
Held-to-maturity investments are initially recorded at fair values plus the related trade expenses when acquired
(deducting bond interests that have matured but not been drawn). The interest revenue calculated at amortization
cost and effective interest rate (nominal interest rate is adopted when the difference between the actual interest
rate and the nominal interest rate is minor) during the holding period is recognized as investment income.
Effective interest is recognized when obtained, and remains unchanged in the predictable holding period or
applicable shorter period.
The difference between the amount received and the book value of the investment is included in the investment
profit and loss upon disposal.

(3) Accounts receivable
For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and
other creditor''s rights of other enterprises (excluding liability instruments quoted in an active market) held by the
Company, including accounts receivable, other receivables, notes receivable and prepayments, etc., the initial
recognition amount shall be the contract price or agreement price receivable from purchasing party. Accounts
receivable with financing nature are initially recognized at their present values.
The difference between the amount received and the book value of the accounts receivable is included in the
current profit and loss upon recovery or disposal.


(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at fair values plus the related trade expenses when
acquired (deducting cash dividends that have been declared but not been paid or bond interests that have matured
but not been drawn).
The interests or cash dividends to be received during the holding period are recognized as investment income. It is
measured in fair value at the end of the period and change in fair values is included in other comprehensive
income at the end of the period. However, the equity instrument investments unquoted in an active market and
whose fair value cannot be measured reliably, and the derivative financial assets which are connected with the said
equity instrument and must be settled by delivering the said equity instrument shall be measured on the costs
basis.
The difference between the amount received and the book value of the financial asset is included in the investment
profit and loss upon disposal. Meanwhile, the corresponding part of fair value accumulated change accounted as
other comprehensive income is transferred into investment profit or loss.


(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses and
subsequently measured at amortized costs.


     司公限有份股心中游旅海东大南海                                                                2014   文全告报度年
3. Recognition basis and measurement method of transfer of financial assets
When transfer of financial assets occurs, if nearly all of the risks and rewards of ownership of the financial assets
have been transferred to the transferee, the Company derecognizes the financial assets; if nearly all of the risks
and rewards of ownership of the financial assets are retained, the Company shall not derecognize the financial
assets.
The principle of substance over form is adopted to determine whether the transfer of a financial asset satisfies the
criteria as described above for derecognition of a financial asset. The Company shall classify the transfer of a
financial asset into the entire transfer and the partial transfer of financial asset. If the entire transfer of financial
asset satisfies the criteria for derecognition, the difference between the amounts of the following two items shall
be included in the current profit and loss:
(1) The book value of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the accumulated amount of the changes in fair
value originally and directly included in owners’ equity (the situation where the financial asset transferred is an
available-for-sale financial asset is involved in)
If the partial transfer of financial asset satisfies the criteria for derecognition, the entire book value of the
transferred financial asset shall be split into the derecognized and recognized part according to their respective fair
value and the difference between the amounts of the following two items shall be included in the current profit
and loss:
(1) The book value of derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of derecognition corresponding to the
accumulated amount of the changes in fair value originally and directly included in owners’ equity (the situation
where the financial asset transferred is an available-for-sale financial asset is involved in).
If the transfer of financial assets does not meet the derecognition criteria, the financial assets shall continue to be
recognized, and the consideration received will be recognized as a financial liability.

4. Derecognition criteria of financial liabilities
A financial liability shall be totally or partly derecognized if its present obligations are totally or partly dissolved.
Where the Company enters into an agreement with a creditor so as to substitute the existing financial liabilities
with any new financial liability, and the new financial liability is substantially different from the contractual
stipulations regarding the existing financial liability, it shall derecognize the existing financial liability, and shall at
the same time recognize a new financial liability.
Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability,
the Company shall derecognize the existing financial liability totally or partly, and at the same time recognize the
financial liability with revised contractual stipulations as a new financial liability.
Upon total or partial derecognition of financial liabilities, the difference between the book value of the financial




     司公限有份股心中游旅海东大南海                                                              2014   文全告报度年
liabilities derecognized and the consideration paid (including non-cash assets surrendered or new financial
liabilities assumed) shall be included in the current profit and loss.
Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate the entire
book value of whole financial liabilities according to the comparative fair value of the part that continues to be
recognized and the de-recognized part. The difference between the book value allocated to the derecognized part
and the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shall
be included in the current profit and loss.

5. Method of determining the fair value of financial assets and financial liabilities
For financial instruments with active market, their fair values are determined with quoted market price. For
financial instruments without active market, their fair values are determined by using valuation technique. During
the valuation, the company use valuation techniques that are appropriate in the circumstances and for which
sufficient data and other information are available to measure fair value, select inputs that are consistent with the
characteristics of the asset or liability that market participants would take into account in a transaction for the asset
or liability, and give priority to the use of relevant ovservable inputs. Unobservable inputs are only adopted when
relevant observable inputs cannot be obtained or are impracticable to obtain.



6. Providing of impairment provision on financial assets (exclude receivable accounts)


The Company performs inspection on the book value of financial assets apart from those financial assets
measured at fair value through current profit and loss on the balance sheet date. Impairment provision is required
if objective evidences of impairment occurs to the financial assets.

(1) Impairment provision of available-for-sale financial assets:

If there is a serious decline in fair value of the available-for-sale financial assets at the end of the period, or such
decline is not temporary after considering various factors, the impairment shall be confirmed, the accumulated
losses due to decreases in fair value previously included in owner’s equity shall be reversed, the impairment loss
shall be recognized.

If, in a subsequent period, the carrying amount of available-for-sale debt instruments investments increases and
the increase can be related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment losses are reversed, included in current profit or loss.

The impairment losses of available-for-sale equity instruments cannot be reversed through profit or loss.

(2) Impairment provision of held-to-maturity investment:
Measurement of held-to-maturity investment impairment loss is governed by measurement of account receivables
impairment loss.




           司公限有份股心中游旅海东大南海                                                                       2014   文全告报度年
11. Accounts receivable

(1) Provision for bad debts of account receivables that are individually significant

Assessment basis or standard of amount individually        Top five accounts receivable and other receivables in terms of individual
significant                                                amount at the end of the year.

                                                           After separate impairment test, provision for bad debts shall be made at

                                                           the difference of present value of estimated future cash flows in short of

                                                           their book values, and shall be include in current profit and loss. For

Method of provision for bad debts of accounts              accounts receivable with no impairment found after separate tests, they
receivable that are individually significant
                                                           shall be included in corresponding portfolios for provisions for bad debts.

                                                           For accounts receivable with confirmed impairment losses after separate

                                                           tests, they shall not be included in portfolios of accounts receivable with

                                                           similar credit risk features for impairment tests.


(2) Provision for bad debts of accounts receivable made on the basis of portfolio

                             Portfolio                                                     Provision for bad debts
Aging portfolio                                                     Aging analysis method
Proportions of provision for bad debts on the basis of aging analysis in portfolios:
√Applicable □Not applicable
                                                  Proportion of provision for account            Proportion of provision for other
                     Aging
                                                              receivable                                   receivables
Within 1 year (including 1 year)                                                       0.00%                                     0.00%
1   -   2 years                                                                       5.00%                                     5.00%
2   -   3 years                                                                  15.00%                                        15.00%
3   -   4 years                                                                  25.00%                                        25.00%
4   -   5 years                                                                  50.00%                                        50.00%
More than five years                                                             100.00%                                       100.00%
In portfolio, adopting balance percentage method for bad debt provision
□ Applicable √Not applicable
In portfolio, adopting other method for bad debt provision
□ Applicable √Not applicable

(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis


                               For account receivable with an individual balance lower than the top five at the end of the year and with
Reason for bad debt            objective evidence showing it may be impaired, and for uncollectible accounts receivable arising from
provision provided on an
individual basis               repeal and liquidation of debtor after taking legal clearance procedures, their provision for bad debts

                               shall be provided on an individual basis.
Method of provision for bad For accounts receivable with objective evidence showing they may be impaired, they shall be separate
debt                        from relevant portfolios and separately tested for impairment to recognize the impairment losses.




      司公限有份股心中游旅海东大南海                                                          2014   文全告报度年
12. Inventories

1. Classification of inventories
Inventories are classified into raw materials, stock commodities, low-cost consumables, food materials, fuels, etc.


2. Measurement method of dispatched inventories


Stock commodities are measured at selling price and their purchase and sale price differential are amortized over
every month at the method of comprehensive differential. The purchasing and storage of stock materials are
measured at actual cost, and at the first-in-first-out method when fetched for use. Low-cost consumables are
amortized in full when fetched for use.

3. Determination basis of net realizable values of inventories and provision method of inventory depreciation
reserve
After the comprehensive inventory count at the end of the period, provisions for inventory depreciation reserve are
made or adjusted at the lower of their costs or net realizable values.
In normal operation process, for merchandise inventories for direct sale, including stock commodities and
materials for sale, their net realizable values are determined at the estimated selling prices minus the estimated
selling expenses and relevant taxes and surcharges; for inventories held to execute sales contract or service
contract, their net realizable values are calculated on the basis of contract price. If the quantities of inventories
specified in sales contracts are less than the quantities held by the Company, the net realizable value of the excess
portion of inventories shall be based on general selling prices.
At the end of the period, provisions for inventory depreciation reserve are made on an individual basis. For
inventories with large quantity and low unit price, the provisions for inventory depreciation reserve are made on a
category basis. For inventories related to the product portfolios manufactured and sold in the same area, and of
which the final usage or purpose is identical or similar thereto, and which is difficult to separate from other items
for measurement purposes, the provisions for inventory depreciation reserve shall be made on a portfolio basis.
If any factor rendering write-downs of the inventories has been eliminated, the amounts written down are
recovered and reversed from the inventory depreciation reserve, which has been provided for. The reversed
amounts are included into the current profit and loss.

4. Inventory system
Perpetual inventory system is adopted.
5. Amortization method of low-cost consumables and packaging materials
(1) Low-cost consumables are amortized at lump-sum method;
(2) Packaging materials are amortized at lump-sum method.

13. Divided into assets held for sale

Nil


     司公限有份股心中游旅海东大南海                                                             2014   文全告报度年
14. Long-term equity investments


1. Determination basis of joint control or significant influence over the investee


Joint control is the relevant agreed sharing of control over an arrangement, and the arranged relevant activity must
be decided under unanimous consent of the parties sharing control. When the company and other joint parties do
joint control and have rights to the net assets over an investee, the investee shall be the company’s joint venture.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but
is not control or joint control over those polices. When an investing enterprise is able to have significant
influences on an investee, the investee shall be its associate.

2. Determination of initial investment cost
(1) Long-term equity investments acquired from business combinations
For business combination under common control: if the company makes payment in cash, transfer non-cash assets
or bear debts and issues equity securities as the consideration for the business combination, the book value of the
owners’ equity of the combinee obtained is recognized as the initial cost of the long-term equity investment on the
combination date. The difference between the initial investment cost and the carrying amount of cash paid,
non-cash assets transferred, liabilities assumed and par value of share issued shall be adjusted to the stock
premium in the capital reserved; if there is no sufficient premium in the capital reserve for write-downs, the
retained earnings are adjusted.
When exercising control over an investee under common control due to additional investment or other reasons,
the initial investment cost of the long-term equity investment shall be determined by the absorbing party’s share of
the net assets of the party being absorbed in the consolidated financial statements of the ultimate controlling party
at combination date. The difference between the initial investment cost of the long-term equity investment at
combination date and the sum of the total of the carrying amount of equity investment held by the acquirer before
the combination date and the newly increased investment on the combination date shall be adjusted to share
premium. If the balance of share premium is not sufficient, any excess shall be adjusted to retained earnings.

For business combination not under common control, the Company recognizes the combination cost determined
on the combination date as the initial cost of long-term equity investment.

When exercising control over an investee not under common control due to additional investment or other reasons,
in stand-alone financial statements, the investor shall change to the cost method and use the carrying amount of
the previously-held equity investment, together with the additional investment cost, as the initial investment cost
under the cost method. The audit, legal, valuation and consulting fees, other intermediary fees, and related
administrative fees paid by the absorbing party or acquirer for the business combination, shall be recognized in
profit or loss as invurred; the cost of issuing equity securities or debt securities as the combination consideration
shall be included in the initial cost of the equity securities or debt securities.


     司公限有份股心中游旅海东大南海                                                              2014   文全告报度年
(2) Long-term equity investments acquired by other means
For long-term equity investments acquired from making payments in cash, the initial cost is the actually paid
purchase cost.
For long-term equity investments acquired from issuance of equity securities, the initial cost is the fair value of
the issued equity securities.
If the exchange of non-monetary assets has commercial substance, and the fair values of assets traded out and
traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out together with relevant taxes unless there is
any conclusive evidence that the fair values of the assets traded in are more reliable. If the exchange of
non-monetary assets does not meet the above criteria, the book value of the assets traded out and relevant taxes
are recognized as the initial cost of long-term equity investment traded in.
For long-term equity investment acquired from debt restructuring, the initial cost is determined based on the fair
value.


3. Subsequent measurement and recognition of profit or loss


(1) Long-term equity investment adopting cost method
Long-term equity investments of the Company in its subsidiaries are accounted for at cost method, except for the
actual price paid for acquisition of investment or the cash dividends or profits contained in the consideration
which have been declared but not yet distributed, the Company recognizes the proportion it shall enjoy in the cash
dividends or profits declared by the investee as current investment income.

(2) Long-term equity investment adopting equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using the equity method. If
the cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the
investee when the investment is made, the difference will not be adjusted to the initial cost of long-term equity
investment; if the cost of initial investment is in short of the proportion of the fair value of the net identifiable
assets in the investee when the investment is made, the difference will be included in the current profit and loss.
The Company recognizes the share of the investee’s net profits or losses, as well as its share of the investee’s other
comprehensive income, as investment income or losses and other comprehensive income, and adjusts the carrying
amount of the investment accordingly. The carrying amount of the investment shall be reduced by the portion of
any profit distributions or cash dividends declared by the investee that is attributable to the investor. The
investor’s share of the investee’s owners’ equity changes, other than those arising from the investee’s net profit or
loss, other comprehensive income or profit distribution, would be recognized in the investor’s equity, and the
carrying amount of the long-term equity investment shall be adjusted accordingly.



     司公限有份股心中游旅海东大南海                                                            2014   文全告报度年
The Company recognizes its share of the investee’s net profits or losses after making appropriate adjustments
based on the fair values of the investee’s identifiable net assets at the acquisition date according to the Company’s
accounting policies and accounting period. When holding the investment, if the investee is capable of providing
consolidated financial statements, the profit or loss shall be measured based on the net profit , other
comprehensive income and other changes in owners’ equity attributed to the company recorded in the
consolidated financial statements.
The unrealized profits or losses resulting from transactions between the company and its associate or joint venture
are eliminated in proportion to the company’s equity interest in the investee, based on which investment income or
losses shall be recognized. Any losses resulting from transactions between the investor and the investee, which are
attributable to asset impairment shall be recognized in full. The transactions of investing or selling assets between
the company and its associate or joint venture are accounted for under relevant accounting policies when the asset
constitutes a business.
When the Company confirms that it should share losses of the investee, treatment shall be done in following
sequence: firstly, the book value of the long-term equity investment shall be reduced; secondly, where the book
value is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of
long-term equity which form net investment in the investee in substance and the book value of long-term equity
shall be reduced; finally, after all the above treatments, if the Company is still responsible for any additional
liabilities in accordance with the provisions stipulated in the investment contracts or agreements, estimated
liabilities are recognized and included into current investment loss according to the obligations estimated to
undertake. If the investee achieves profit in subsequent periods, the treatment is in the reversed sequence
described above, i.e. after deduct any unrecognized investment losses, reduce book value of estimated liabilities
recognized, restore book values of other long-term equity which form net investment in the investee in substance,
and of long-term equity investment, and recognize investment income at the same time.


(3) Disposal of long-term equity investment
On disposal of a long-term equity investment, the difference between the proceeds actually received and the
carrying amount shall be recognized in profit or loss for the current period.
For a long-term equity investment accounted for using the equity method, any other comprehensive income
previously recognized shall be accounted for on the same basis as would have been required if the investee had
directly disposed of the related assets or liabilities on a por-rata basis upon the disposal of the equity investment.
The owners’ equity recognized due to the investor’s share of the investee’s owners’ equity changes, other than
those arising from the investee’s net profit or loss, other comprehensive income or profit distribution, is included
in current profit or loss on a pro-rata basis.
When the Company can no longer exercise joint control of or significant influence over an investee due to partial
disposal of equity investment or other reasons, the remaining equity investment shall be accounted for in


     司公限有份股心中游旅海东大南海                                                             2014   文全告报度年
accordance with “Accounting Standard for Business Enterprises No.22-Financial Instruments: Recognition and
Measurement”. The difference between the fair value and the carrying amount at the date of the loss of joint
control or significant influence shall be charged to profit or loss for the current period. When the previously-held
equity investment is accounted for under the equity method, any other comprehensive income previously
recognized shall be accounted for on the same basis as would have been required if the investee had directly
disposed of the related assets or liabilities for the current period upon dis-countinuation of the equity method. The
owners’ equity recognized due to the investor’s share of the investee’s owners’ equity changes, other than those
arising from the investee’s net profit or loss, other comprehensive income or profit distribution, is transferred to
current profit or loss upon discontinuation of the equity method.
When no longer exercise control over an investee due to partial disposal of equity investment or other reasons,
and with the retained interest, still has joint control of , or significant influence over, the investee, when preparing
the individual financial statements, the Company shall change to the equity method and adjust the remaining
equity investment as if the equity method had been applied from the date of the first acquisition. If the Company
can not exercise joint control of or significant influence over the investee after partial disposal of equity
investment, the remaining equity investment shall be accounted for in accordance with “Accounting Standard for
Business Enterprises No.22-Financial Instruments: Recognition and Measurement”, and the difference between
the fair value and carrying amount at the date of the loss of control shall be chared to profit or loss for the current
period.
The equity investment disposed was obtained over additional investment or other reasons through business
combination, when preparing the individual financial statements, and the remaining equity investment accounted
on cost method or equity method, the other comprehensive income and other owner’s equity recognized due to the
equity investment held before acquisition date was accounted for under the equity method are carried forward on a
pro-rata basis; when the remaining equity investment is accounted for in accordance with “Accounting Standard
for Business Enterprises No. 22 – Financial Instruments: Recognition and Measurement”, the other
comprehensive income and other owner’s equity are totally carried forward.


15. Investment real estate

Measurement model of investment real estate
Not applicable

16. Fixed assets


 (1) Recognition criteria of fixed assets


Fixed assets refer to the tangible assets held for the purpose of producing commodities, rendering services, renting




     司公限有份股心中游旅海东大南海                                                                  2014   文全告报度年
or business management with useful lives exceeding one year. Fixed assets will only be recognized when all the
following criteria are satisfied: (1) it is probable that the economic benefits relating to the fixed assets will flow
into the Company; (2)the costs of the fixed assets can be measured reliably.
Classification of fixed assets: Fixed assets are classified into buildings and constructions, machinery equipment,
transportation equipment, electronic entertainment equipment, other equipment and Improvement. Fixed assets are
initially measured at their actual cost when acquired. The costs of a purchased fixed asset are determined at the
purchase price, the relevant taxes, and the traffic expenses, loading and unloading fees, installation fees and
professional service fees arising from preparing the fixed asset for its intended use. If the payment for a fixed asset
is delayed beyond the normal credit conditions and it is of financing nature in effect, the costs of the fixed asset
shall be determined based on the present value of the purchase price. The cost of a self-constructed fixed asset
shall be formed by the necessary expenses incurred for preparing the asset for its intended use. The fixed assets
which the debtor uses to pay back the debt in debt restructuring should be recognized at the fair value of the fixed
assets. The difference between the book value of restructured debts and the fair value of fixed assets used to pay
back the debt should be recorded into current profit and loss; On the premise that non-monetary asset trade is of
commercial nature and the fair value of the asset traded in or out can be measured reliably, the fixed asset traded
in with non-monetary asset should be recognized at the fair value of the asset traded out, unless any unambiguous
evidence indicates that the fair value of the asset traded in is more reliable; as to the non-monetary asset trade not
meeting the aforesaid premise, the book value of the asset traded out and related taxes and surcharges payable
should be recognized as the cost of the fixed asset, with gains or losses not recognized. As for the book-entry
value, the fixed assets acquired from the absorption and merger of an enterprise under common control are
recognized at the book value of the merged enterprise; the fixed assets acquired from the absorption and merger of
an enterprise not under common control are recognized at the fair value. The book-entry value of a fixed asset
acquired under financing lease is measured at the asset’s fair value on the commencement date of the lease or the
present value of the minimum lease payment, whichever is lower.



(2) Method of provision for impairment of fixed assets

                                                    Estimated useful life   Estimated net residual
       Category                 Depreciated                                                          Annual depreciation rate
                                                          (Year)                    rate
Buildings and
                         straight-line-method   20-40                                        5.00% 4.75-2.37
constructions
Machinery equipment      straight-line-method   8-20                                         5.00% 8-20
Electronic entertainment
                         straight-line-method   5-16                                         5.00% 19-5.93
equipment
Transportation
                         straight-line-method   7-12                                         5.00% 13.57-7.91
equipment
Other equipment          straight-line-method   8                                            5.00% 11.87
Improvement              straight-line-method   5                                            5.00% 19



      司公限有份股心中游旅海东大南海                                                          2014   文全告报度年
(3) Recognition basis, pricing and depreciation method for fixed assets under financing lease

17. Construction in progress


The initial book values of the fixed assets are stated at total expenditures incurred before construction in
progress reaches the working condition for their intended use. For construction in progress that has reached
working conditions for its intended use but for which the completion of settlement has not been handled, it
shall be transferred into fixed assets at the estimated value according to the project budget, construction price
or actual cost, etc. from the date when it reaches the working conditions for its intended use. And the fixed
assets shall be depreciated in accordance with the Company’s policy on fixed asset depreciation. Adjustment
shall be made to the originally and provisionally estimated value based on the actual cost after the
completion of settlement is handled, but depreciation already provided will not be adjusted.


18. Borrowing costs

The initial book values of the fixed assets are stated at total expenditures incurred before reaching working
condition for their intended use. For construction in progress that has reached working condition for intended use
but relevant budgets for the completion of projects have not been completed, the estimated values of project
budgets, prices, or actual costs should be included in the costs of relevant fixed assets, and depreciation should be
provided according to relevant policies of the Company when working condition is reached. After the completion
of budgets needed for the completion of projects, the estimated values should be substituted by actual costs, but
depreciation already provided is not adjusted.



19. Biological assets

Nil

20. Oil-and-gas assets

Nil

21. Intangible assets

(1) Measurement, service life and impairment test


1. Measurement method of intangible assets


(1) The Company initially measures intangible assets at cost on acquisition;
The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges
and any other directly attributable expenditure of preparing the asset for its intended use. If the deferred
payment of purchase price of intangible assets exceeding normal credit terms is substantially of financial


      司公限有份股心中游旅海东大南海                                                               2014   文全告报度年
nature, the cost of intangible assets should be recognized at the present value of the purchase price.
The intangible assets which the debtor uses to pay back the debt in debt restructuring should be recognized at
the fair value of the intangible assets. The difference between the book value of restructured debts and the
fair value of intangible assets used to pay back the debt should be recorded into the current profit and loss;
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded
in or out can be measured reliably, the intangible assets traded in by the trade of non-monetary assets should
be recognized at the fair value of the assets traded out, unless any unambiguous evidence indicates that the
fair value of the assets traded in is more reliable; as to the non-monetary assets trade not meeting the
aforesaid premise, the book value of the assets traded out and related taxes payable should be recognized as
the cost of the intangible assets traded in, with gains or losses not recognized.
The intangible assets obtained by the absorption and merger of an enterprise under common control are
recognized at the book value of the merged enterprise; the intangible assets obtained by the absorption and
merger of an enterprise not under common control are recognized at the fair value.
Costs of intangible assets developed internally and independently include: the costs of materials and labor
services used to develop the intangible assets, the registration fee, the amortization of other patents and
franchise used in the process of development, the interest of capitalization, and other direct expenses for
preparing the intangible assets for their intended use.
(2) Subsequent measurement
The useful life of intangible asset is analyzed on acquisition.
As for intangible assets with limited useful lives, straight-line amortization method is adopted in the period
when the intangible assets generate economic benefit for enterprise; if the period when the intangible assets
generate economic benefit for enterprise cannot be forecasted, the intangible assets should be deemed as those
with indefinite useful lives and should not be amortized.
2. Estimation of useful life of intangible assets with limited useful life

                      Item                           Estimated useful life                        Basis

Land use right                                  50 years                     Validity term of land use certificate


The useful lives and amortization method of intangible assets with limited useful lives are reviewed at the
end of each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year are
not different from those estimated before.

3. Determination basis of intangible assets with indefinite useful lives
As at the balance sheet date, the Company has no intangible assets with indefinite useful lives.





      司公限有份股心中游旅海东大南海                                                       2014   文全告报度年
(2) Accounting policy for internal research and development spending

22. Impairment of long-term assets


If there is any indication that the long-term assets such as long-term equity investment, investment properties
accounted through cost pattern, fixed assets, construction in progress, intangible assets etc. may be impaired
at the balance sheet date, an impairment test would be implemented. If the result of impairment test indicates
the recoverable amounts of the long-term assets are lower than their book values, the difference between the
recoverable amounts and book values is recognized as impairment loss, provisions for impairment of the
long-term assets are made. The recoverable amounts of the long-term assets are the higher of their fair values
less costs to disposal and the present values of the estimated future cash flows of the long-term assets. The
provision for impairment is recognized and calculated on the individual basis. If it is difficult to estimate the
recoverable amount of the individual asset, the Company estimates the recoverable amount of the asset group
that the individual asset belongs to. The asset group is the minimum asset group which can generate cash
flows independently.
The mentioned impairment loss will not be reversed in subsequent accounting period once it had been
recognized.


23. Long-term deferred expenses


Long-term deferred expenses are various expenses already incurred, which shall be amortized over current and
subsequent periods with the amortization period exceeding one year.
1. Amortization method
Long-term deferred expenses are evenly amortized over the beneficial period.
2. Amortization period

                                 Item                                      Amortization period

Hotel exterior wall decoration                         4 years



24. Employee compensation


(1) Short-term employee benefits


The Company recognizes, in the accounting period in which an employee provides service, actually occurred
short-term employee benefits as a liability, with a corresponding charge to current profit or loss or relevant
cost of assets.
Payments made by the Company of social security contributions for employees, and union running costs and
employee education costs provided in accordance with relevant requirements, in the accounting period in


      司公限有份股心中游旅海东大南海                                                       2014   文全告报度年
which employees provide services, is calculated according to prescribed bases and percentages of provision
in determining the amount of employee benefits.
Employee benefits which are non-monetary benefits are measured at fair value.

(2) Post-employment benefits


Payments made by the Company of basic endowment insurance and unemployment insurance in accordance
with relevant requirements of local government, in the accounting period in which employees provide
services, is calculated according to prescribed bases and percentages of provision of local requirements in
determining the amount payable, is recognized as a liability, with a corresponding charge to current profit or
loss or relevant cost of assets.

(3) Termination benefits


When the Company cannot unilaterally withdraw the offer of termination benefits because of an employment
termination plan or a curtailment proposal, or when the Company recognizes costs or expenses related to a
restructuring that involves the payment of termination benefits (the earlier is adopted), the employee benefits
liabilities caused by termination benefits are recognized and included in current profit or loss.


(4) Accounting method for other long-term employee benefits

Nil


25. Estimated liabilities


When the Company is involved in proceedings, debt guarantees, onerous contracts and reorganization events, if
such events may require delivery of assets or rendering of services in the future and the amounts of such events
can be reliably measured, estimated liabilities are recognized.



1. Recognition criteria of estimated liabilities


The Company recognizes the estimated liabilities when obligations related to contingencies satisfy all the
following conditions:
(1) the obligation is a present obligation of the Company;
(2) the performance of the obligation is likely to result in outflow of economic benefits from the Company;
      and
(3) the amount of the obligation can be measured reliably.

2. Measurement method of estimated liabilities


      司公限有份股心中游旅海东大南海                                                      2014   文全告报度年
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for
the performance of relevant present obligations.
The Company, when determining the best estimate, has had a comprehensive consideration of risks with
respect to contingencies, uncertainties and the time value of money. If the time value of money is significant,
the best estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate shall be accounted as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the average amount of upper
and lower limits within the range.
If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all
the outcomes within this range are unequal despite such a range exists, the outcomes within this range are
unequally likely to occur, in case that the contingency involves a single item, the best estimate shall be
determined at the most likely outcome; if the contingency involves two or more items, the best estimate
should be determined according to all the possible outcomes with their relevant probabilities.
When all or part of the expenses necessary for the settlement of an estimated liability of the Company is
expected to be compensated by a third party, the compensation should be separately recognized as an asset
only when it is virtually certain that the compensation will be received. The amount recognized for the
compensation should not exceed the book value of the estimated liability.


26. Share-based payment

Nil


27. Other financial instrument as preferred stock and perpetual capital securities

Nil


28. Revenue


1. Recognition and measurement principles of revenue from sales of goods


(1) Overall recognition and measurement principles of revenue from sales of goods
When the Company has transferred significant risks and rewards of ownership of the goods to the buyer; the
Company retains neither continuous management rights associated with ownership of the goods sold nor
effective control over the goods sold; the relevant amount of revenue can be measured reliably; it is highly
likely that the economic benefits associated with the transaction will flow into the enterprise; and the
relevant amount of cost incurred or to be incurred can be measured reliably, revenue from sales of goods
shall be recognized.


      司公限有份股心中游旅海东大南海                                                        2014   文全告报度年
(2) Recognition criteria of revenue from selling goods and specific recognition timing criteria of revenue of
the Company
The Company provides hotel accommodation service as well as goods. After the recognition of both
housekeeping department and hotel reception desk, the daily business report is established. The accounting
department makes sure the significant risks and rewards of ownership of the goods have been transferred to
the client, the selling revenue is recognized.

2. Recognition and measurement principles of revenue from providing labor services
(1) The hotel room service, catering (breakfast) service etc. of the Company, after the hotel room service,
catering (breakfast) service etc. had provided, and each consumption department had checked with the
receptionist, the daily business report and detailed report of account receivables are established, and the
reports are submitted to accounting department, which recognizes the revenue after examining the daily
reports.
(2)   Revenue from outsourced restaurant and site rental is recognized according to contract or agreement
time period and time of collecting.
3. Recognition basis of revenue from transferring the use right of assets
The economic benefits related to the transaction may flow into entities and the amount of revenue can be
reliably measured. The amount of revenue from transferring use right of assets is recognized as follows in
different circumstances:
(1) The amount of interest income is determined by the time and effective interest rate for others to use the
monetary funds of the Company.
(2) The amount of revenue from usage is determined according to the charging time and method as agreed
in relevant contract or agreement.


29. Government subsidies

(1) Recognition basis and accounting treatment for government subsidies related to assets

Government subsidies related to acquisition and construction of fixed assets, intangible assets and other long-term
assets are recognized as deferred income, and included in non-operating income by stages within the useful life of
the assets acquired and constructed

(2) Recognition basis and accounting treatment for government subsidies related to income


If government subsidies related to income are used to compensate the enterprise’s relevant expenses or losses
in future periods, such government subsidies should be recognized as deferred income on acquisition and be
included into the current non-operating income in the period of recognizing relevant expenses; if government
subsidies related to income are used to compensate the enterprise’s relevant expenses or losses incurred, such



     司公限有份股心中游旅海东大南海                                                           2014   文全告报度年
government subsidies are directly included into the current non-operating income on acquisition.


30. Deferred income tax assets and deferred income tax liabilities
Deductible temporary differences are recognized as deferred income tax assets to the extent that it shall not exceed
future taxable income possibly available to be against the deductible temporary difference.
Deductible temporary differences are recognized as deferred income tax liabilities except in special
circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be
recognized include: the initial recognition of goodwill; other transactions or matters excluding business
combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when
occurred.
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge
liabilities simultaneously, the income tax assets and income tax liabilities of the Company for the current period
shall be presented based on the net amount after offset.
When the Company has the legal rights to balance income tax assets and income tax liabilities in current period
with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the income
tax which imposed on the same taxpaying subject by the same tax collection authority or to different tax paying
subjects, but, in each important future period in connection with the reverse of deferred income tax assets and
liabilities, the involved tax paying subject intends to balance income tax assets and liabilities in current period
with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax assets and
deferred income tax liabilities of the Company shall be presented based on the net amount after offset.


31. Leasing

(1) Accounting of operating lease

1. Accounting of leased assets
Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the whole
lease period (including rent-free period) and shall be included in the current expenses. Initial direct costs
related to lease transactions paid by the Company shall be included in the current expenses.
If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the asset,
such expenses shall be deducted from total lease fees, and residual lease fees shall be amortized over the
lease period and included in the current expenses.

2. Accounting of leasing assets
Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the



      司公限有份股心中游旅海东大南海                                                                       2014   文全告报度年
whole lease period (including rent-free period), and shall be recognized as lease income. Initial direct costs
related to lease transactions paid by the Company shall be included in the current expenses; if the amount is
large, it shall be capitalized, and shall be included in the current income by stages within the whole lease
period on same basis for recognition of lease income.
If the expenses related to the lease which shall be paid by the lessee are borne by the Company, such
expenses shall be deducted from total lease income by the Company, and residual lease fees shall be
amortized over the lease period.


(2) Accounting treatment of finance lease

32. Other significant accounting policies and estimate

Nil

33. Significant accounting policies and changes of accounting estimate

(1) Changes of major accounting policies

□Applicable   √ Not applicable


(2) Changes of major accounting estimate
□Applicable   √ Not applicable


34. Other

VI. Taxation

1. Major tax types and tax rates


               Taxation type                             Basis of tax assessment                           Tax rate

Value added tax (VAT)                        Revenue from sale of goods                   3%

Business tax                                 Operating income                             5%

Urban maintenance and construction tax       Turnover tax                                 7%

Enterprise income tax                        Income tax payable                           25%

Education surcharge                          Turnover tax                                 3%
Local education surcharge                    Turnover tax                                 2%

                                             Remaining value after deducting 30% of
Property tax                                 the original value of houses (including land 1.2%
                                             price)

Land use tax                                 Land area                                                                 RMB 18/m2
As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations: Nil



    司公限有份股心中游旅海东大南海                                                                     2014   文全告报度年
2. Tax preference

Nil


3. Other


VII. Notes to the main items of financial statements

1. Monetary funds

                                                                                                                           In RMB
                    Item                                     Ending balance                          Beginning balance
Cash                                                                          346,943.61                                 613,560.04
Bank deposit                                                              22,203,345.93                               6,209,144.39
Other monetary funds                                                                                                      12,981.03
Total                                                                     22,550,289.54                               6,835,685.46
Other explanation
Nil

2. Financial assets measured by fair value and with variations reckoned into current gains/losses

Nil


3. Derivative financial assets

□Applicable   √Not applicable


4. Notes receivables

Nil


5. Accounts receivable

(1) Accounts receivable by type

                                                                                                                            In RMB
                                           Ending balance                                            Beginning balance
                     Book balance          Provision for bad debts                  Book balance       Provision for bad debts
      Type
                              Proporti                  Provision Book value               Proportio                 Provisio Book value
                    Amount                   Amount                              Amount                  Amount
                                                          ratio                                                       n ratio
                                  on (%)                                                     n (%)
Accounts
receivable
with large
single amount
               1,464,505.49 29.36% 1,464,505.49 100.00%      0.00 1,339,625.51 24.14% 1,339,625.51 100.00%      0.00
and accrued
for provision
of bad debt on
a single basis
Accounts
receivable
               3,523,141.14 70.64% 890,762.12 25.28% 2,632,379.02 4,208,809.28 75.86% 699,431.52 16.62% 3,509,377.76
accrued for
provision of


    司公限有份股心中游旅海东大南海                                                                        2014   文全告报度年
bad debt by
portfolio
Total           4,987,646.63 100.00% 2,355,267.61                2,632,379.02 5,548,434.79 100.00% 2,039,057.03                      3,509,377.76
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at period-end:
√ Applicable□ Not applicable
                                                                                                                                   In RMB
                                                                            Ending balance
Content of accounts receivable
                                   Accounts receivable       Provision for bad debts        Provision ratio          Reason for provision
                                                                                                                Expected
Sanya Power Supply Company                     773,409.98                 773,409.98                    100.00% unrecoverable due to
                                                                                                                long account age
                                                                                                                Expected
Hainan Hong Kong & Macao
                                               464,563.21                 464,563.21                    100.00% unrecoverable due to
International Tourism Ltd.
                                                                                                                long account age
                                                                                                                Expected
Sanya City Council reception                   101,652.32                 101,652.32                    100.00% unrecoverable due to
                                                                                                                long account age
LLC SOUTH CROSS                                                                                                      Had declared
                                               124,879.98                 124,879.98                    100.00%
TRAVELINN                                                                                                            bankruptcy
Total                                        1,464,505.49               1,464,505.49               --                         --
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable□ Not applicable
                                                                                                                                   In RMB
                                                                           Ending balance
              Aging
                                       Accounts receivable             Provision for bad debts                Provision ratio
Within 1 year
Subtotal within one year                              238,732.56                                 0.00
1-2 years                                            2,031,831.46                       101,591.57                                  5.00%

2-3 years                                             461,782.20                         69,267.33                              15.00%


3-4 years                                                22,459.00                        5,614.75                              25.00%


4-5 years                                             108,094.91                         54,047.46                              50.00%

More than five years                                  660,241.01                        660,241.01                            100.00%
Total                                                3,523,141.14                       890,762.12
Portfolio recognized:
Based on aging
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable√ Not applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
Nil

(2) Provision for bad debts accrued, regain or switch back in the Period

In the Period, 316,210.58 Yuan accrued for provision of bad debts; no provision for bad debts regains or switch back in the Period.
Nil


(3) Account receivables actually cancel after verification in Period

Nil





    司公限有份股心中游旅海东大南海                                                                           2014   文全告报度年
(4) Top five account receivables collected by arrears party at ending balance

                   Top five accounts receivable
                                                                     Book balance
                                            Relationship with the                                         Proportion in total accounts receivable
                     Name                                                                    Aging
                                                 Company                                                                   (%)

Sanya Haiyuan Hotel Management Ltd.             Non-related               2,602,716.62 Within 3 years                                     52.18
                                                 party
Sanya Power Supply Company                      Non-related                   775,304.98 More than five                                   15.54
                                                 party                                      years
Hainan Hong Kong & Macao International          Non-related                   464,563.21 More than five                                    9.31
Tourism Ltd.                                     party                                      years
LLC SOUTH CROSS TRAVELINN                       Non-related                   124,879.98 Within 1 year                                     2.50
                                                 party
Sanya City Council reception                    Non-related                 101,652.32 More than five                                      2.04
                                                 party                                    years
                     Total                                                4,069,117.11                                                    81.57


(5) Account receivables recognition terminated due to transfer of financial assets

Nil


(6) Account receivables transferred and assets & liability formed by its continuous involvement

Nil


6. Prepayments

(1) Aging analysis of repayment

                                                                                                                                       In RMB
                                             Ending balance                                          Beginning balance
           Aging
                                   Amount                    Proportion (%)                Amount                     Proportion (%)
Within 1 year                             40,778.52                      100.00%                 201,053.21                         100.00%
Total                                     40,778.52                 --                           201,053.21                   --
Reasons for significant repayment with over one year age without settle:

(2) Top five prepayment collected by objects at ending balance

Other explanation:

The prepayments are prepaid insurance fees, newspapers and books fees, etc.

7. Interest receivables

Nil


8. Dividend receivables

Nil





         司公限有份股心中游旅海东大南海                                                                      2014   文全告报度年
9. Other receivables

(1) Other receivables by type:

                                                                                                                               In RMB
                                      Ending balance                                                 Beginning balance
                  Book balance           Provision for bad debts                   Book balance          Provision for bad debts
      Type
                             Proportio                  Provision Book value                  Proporti                   Provisio Book value
                Amount                     Amount                                Amount                    Amount
                                                          ratio                                                           n ratio
                              n (%)                                                             on (%)

Other

receivable

s with

large

single

amount

and
             77,363,143.31    98.64% 77,363,143.31 100.00%               0.00 77,363,143.31 94.93% 77,363,143.31 100.00%                    0.00
accrued

for

provision

of bad

debt on a

single

basis

Other

receivable

s accrued

for
              1,064,685.19       1.36%     732,023.93     68.75% 332,661.26    4,134,679.28      5.07%     835,627.92 20.21% 3,299,051.36
provision

of bad

debt by

portfolio
Total        78,427,828.50 100.00% 78,095,167.24                   332,661.26 81,497,822.59 100.00% 78,198,771.23                  3,299,051.36
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
√ Applicable□ Not applicable
                                                                                                                               In RMB
                                                                               Ending balance
  Content of other receivables
                                      Other receivables       Provision for bad debts      Provision ratio           Reason for provision
Hainan Dadonghai Hotel Co.,                   54,767,945.15              54,767,945.15                   100.00% Unrecoverable



    司公限有份股心中游旅海东大南海                                                                      2014   文全告报度年
Ltd.
Cash dividends distributed in
                                            16,899,000.00             16,899,000.00                     100.00% Unrecoverable
1994-1996
Hainan Hong Kong & Macao
                                             4,145,704.16              4,145,704.16                     100.00% Unrecoverable
International Tourism Ltd.
Guangdong Jinma Tourism
                                             1,200,494.00              1,200,494.00                     100.00% Unrecoverable
Ltd.
Shareholder custody fee                        350,000.00                350,000.00                     100.00% Unrecoverable
Total                                       77,363,143.31             77,363,143.31                --                          --
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable□ Not applicable
                                                                                                                               In RMB
                                                                           Ending balance
             Aging
                                        Other receivables              Provision for bad debts               Provision ratio
Within 1 year
Subtotal within one year                              308,799.04

1-2 years                                              21,000.00                             1,050.00                           5.00%

2-3 years                                                4,235.61                             635.34                           15.00%

3-4 years                                                   288.70                             72.17                           25.00%

4-5 years                                                   190.85                             95.43                           50.00%

More than five years                                  730,170.99                       730,170.99                          100.00%
Total                                               1,064,685.19                       732,023.93
Portfolio recognized:
Based on aging
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable√ Not applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
□ Applicable√ Not applicable


(2) Provision for bad debts accrued, regain or switch back in the Period

There is no provision for bad debts accrued in the Period; and 103,603.99 Yuan regains or switch back in the Period. Including the
followed significant amount:
                                                                                                                          In RMB
                 Company                              Regains or switch back                            Way of regain
Sanya Haiyuan Hotel Management Ltd.                                       2,808,368.63 Monetary fund
Total                                                                 2,808,368.63                    --
The commission sale of guest rooms collected from Sanya Haiyuan Hotel Management Ltd., and withdrwal bad debt provision by
aging analysis originally.


(3) Other account receivables actually cancel after verification in Period

Nil


(4) Other account receivables category by nature of money

                                                                                                                               In RMB





    司公限有份股心中游旅海东大南海                                                                            2014   文全告报度年
               Nature of money                           Ending book balance                              Beginning book balance


With hotel management concerned                                                  764,685.19                                   3,773,053.82
Without hotel management concerned                                            77,663,143.31                                  77,724,768.77
Total                                                                         78,427,828.50                                  81,497,822.59


(5) Top five other account receivables collected by arrears party at ending balance

                                                                                                                                    In RMB
                                     Nature of                                                  Proportion in total     Ending balance of
         Company name                                Ending balance            Aging
                                      money                                                     other receivables       bad debt provision
Hainan Dadonghai Hotel Co.,                                               More than five
                                                       54,767,945.15                                         69.83%          54,767,945.15
Ltd.                                                                      years
Cash dividends distributed in                                             More than five
                                                       16,899,000.00                                         21.55%          16,899,000.00
1994-1996                                                                 years
Hainan Hong Kong & Macao                                                  More than five
                                                        4,145,704.16                                          5.29%           4,145,704.16
International Tourism Ltd.                                                years
Guangdong Jinma Tourism                                                   More than five
                                                        1,200,494.00                                          1.53%           1,200,494.00
Ltd.                                                                      years
                                                                          More than five
Shareholder custody fee                                      350,000.00                                       0.45%             350,000.00
                                                                          years
Total                                   --             77,363,143.31              --                         98.65%          77,363,143.31


(6) Account receivables with government subsidies involved

Nil


(7) Other account receivables recognition terminated due to transfer of financial assets

Nil


(8) Other account receivables transferred and assets & liability formed by its continuous involvement

Nil


10. Inventories

(1) Classification of inventories

                                                                                                                                    In RMB
                                        Ending balance                                                 Beginning balance
    Item                             Depreciation                                                    Depreciation
                      Book balance                              Book value         Book balance                              Book value
                                           reserve                                                         reserve
Raw materials           1,042,431.89         747,043.57            295,388.32          1,053,761.59          748,096.33         305,665.26
Stock
                           22,771.38             11,102.41          11,668.97              22,771.38          11,102.41           11,668.97
commodities
Total                   1,065,203.27         758,145.98            307,057.29          1,076,532.97          759,198.74         317,334.23


(2) Inventory depreciation reserve

                                                                                                                                    In RMB


    司公限有份股心中游旅海东大南海                                                                        2014   文全告报度年
                                                  Increased in 2014                   Decreased in 2014
                       Beginning
    Item                                                                    Reversing or                          Ending balance
                        balance               Accrual           Other                                 Other
                                                                                 write-off
Raw materials               748,096.33                                                1,052.76                             747,043.57
Stock
                             11,102.41                                                                                      11,102.41
commodities
Total                     759,198.74                                                  1,052.76                             758,145.98
Write-off with the stock mateirals delivery

(3) Explanation on inventories with capitalization of borrowing costs included at ending balance

Nil

(4) Assets unsettled formed by construction contract which has completed at period-end

Nil


11. Divided into assets held for sale

Nil


12. Non-current assets maturing within one year

                                                                                                                              In RMB
                    Item                                    Ending balance                           Beginning balance
Long-term differed expenses needed to be
                                                                             196,354.90                                    386,191.87
amortized within one year
Total                                                                        196,354.90                                    386,191.87


13. Other non-current assets

Nil

14. Available-for-sale financial assets

(1) Available-for-sale financial assets

                                                                                                                              In RMB
                                               Ending balance                                    Beginning balance
            Item                                Provision for                                     Provision for
                              Book balance                      Book value      Book balance                            Book value
                                                 impairment                                        impairment
Available-for-sale equity
                               9,500,000.00      5,000,000.00    4,500,000.00    15,000,000.00       5,000,000.00       10,000,000.00
instruments:

Measured at cost               9,500,000.00      5,000,000.00    4,500,000.00    15,000,000.00       5,000,000.00       10,000,000.00

           Total               9,500,000.00      5,000,000.00    4,500,000.00    15,000,000.00       5,000,000.00       10,000,000.00


(2) Available-for-sale financial assets measured at fair value at period-end

Nil





         司公限有份股心中游旅海东大南海                                                                              2014   文全告报度年
 (3) Available-for-sale financial assets measured at cost at the end of the period

                                                                                                                                          In RMB
                                         Book balance                                  Provision for impairment

                                                                                              Incr Decr                     Shareholdin      Cash
      Item          Beginning      Increase in     Decrease in      Ending       Beginning    ease ease        Ending        g ratio in   dividends in
                     balance                                                      balance
                                      2014            2014          balance                    in     in       balance     investee (%)      2014
                                                                                              2014 2014
Shenzhen
Difu
Investment
                    5,000,000.00                                  5,000,000.00 5,000,000.00                 5,000,000.00       14.28%
&
Developm
ent Ltd
Haikou
Luoniusha
n Petty   10,000,000.00                           10,000,000.00                                                                 9.09% 2,020,000.00
Loan Co.,
Ltd.
Sanya
Xiangyu
                                   4,500,000.00                   4,500,000.00                                                 18.00%
E-business
Ltd.
Total            15,000,000.00 4,500,000.00 10,000,000.00 9,500,000.00 5,000,000.00                         5,000,000.00        --        2,020,000.00


(4) Changes of impairment of available-for-sale financial assets in Period

                                                                                                                                          In RMB
                                                            Incl: transfer-in                              Incl: switch-back
                              Impairment                                                                                       Impairment
                                                              from other               Decreased in         due to fair value
             Type           opening balance Accrued in 2014                                                                   ending balance
                                                            comprehensive                 2014               increased after
                                accrued                                                                                          accrued
                                                                income                                           period
Equity instrument
                                5,000,000.00                                                                                         5,000,000.00
available for sale
Total                           5,000,000.00                                                                                         5,000,000.00


 (5) Fair value of the available-for-sale equity instrument drops significantly or not contemporarily without
depreciation reserves accrued

Nil


15. Held-to-maturity investment

Nil


16. Long-term account receivables

Nil


17. Long-term equity investments

                                                                                                                                          In RMB
      Investee       Beginnin                                        Changes in 2014                                           Ending      Impairme


    司公限有份股心中游旅海东大南海                                                                            2014   文全告报度年
                   g balance                       Investme                                                                  balance           nt
                                                       nt     Adjustme                                                                     provision
                                                                                 Cash                                                      at ending
                               Additiona           gains/loss   nt of                     Provision
                                                                        Other  dividend                                                     balance
                                    l     Capital      es       other                         for
                                                                        equity or profit                         Other
                               investmen reduction recognize comprehe                     impairme
                                                                       changes declare to
                                    t                 d by      nsive                      nt losses
                                                                                 issue
                                                     equity    income
                                                    method
I. Joint venture
Subtotal
II. Associated enterprise
Subtotal
Total                   0.00        0.00      0.00       0.00         0.00       0.00        0.00        0.00         0.00         0.00          0.00
Other explanation
      Investee         Beginning                                    Changes in 2014                                      Ending           Impairment
                        balance                                                                                          balance          provision at
                                                          Investmen                                                                         ending
                                                               t                                                                            balance
                                                                     Adjustme            Cash           Provisi
                                                          gains/loss
                                     Additional                      nt of other Other dividend         on for
                                                 Capital      es                                                Oth
                                     investmen                       comprehe equity or profit          impair
                                                reduction recognize                                              er
                                         t                              nsive changes declare to         ment
                                                             d by
                                                                      income             issue          losses
                                                            equity
                                                           method
Hubei Jingsha  4,566,207.42                                                                                           4,566,207.42 4,566,207.42
Dadonghai Club
Ltd.
Sanya Shun’an        5,150,166.84                                                                                    5,150,166.84 5,150,166.84
Casino
Subtotal              9,716,374.26                                                                                    9,716,374.26 9,716,374.26




18. Investment real estate

Nil


19. Fixed assets

(1) Fixed assets

                                                                                                                                          In RMB
                                   Buildings and     Machinery        Electronic       Transportation
              Item                                                                                         Others                  Total
                                   Constructions     equipment       Equipments          equipment
      1.Beginning balance         156,679,569.41 13,858,617.00        2,895,261.78       1,635,734.77    12,363,198.98       187,432,381.94
      2. Increase in 2014                                               107,910.00        455,588.00                               563,498.00
           (1) Purchase                                                 107,910.00        455,588.00                               563,498.00
      3. Decrease in 2014            1,258,281.82                          87,220.00                            4,200.00       1,349,701.82
           (1) Disposal or
                                     1,258,281.82                          87,220.00                            4,200.00       1,349,701.82
scrap
      4.Ending balance            155,421,287.59 13,858,617.00        2,915,951.78       2,091,322.77    12,358,998.98       186,646,178.12
      1.Beginning balance          68,907,346.70     8,832,534.14     1,979,777.20        762,866.36     11,121,811.38        91,604,335.78
      2. Increase in 2014            3,377,906.64     339,745.68        328,455.12        166,742.06        339,681.06         4,552,530.56
           (1) Withdraw              3,377,906.64     339,745.68        328,455.12        166,742.06        339,681.06         4,552,530.56




      司公限有份股心中游旅海东大南海                                                                          2014   文全告报度年
      3. Decrease in 2014           166,345.70                          77,356.73                           2,992.50         246,694.93
        (1) Disposal or scrap       166,345.70                          77,356.73                           2,992.50         246,694.93
      4.Ending balance           72,118,907.64    9,172,279.82     2,230,875.59         929,608.42     11,458,499.94       95,910,171.41
      1.Beginning balance        32,449,653.81    2,527,851.26          21,643.05                        199,992.57        35,199,140.69
      3. Decrease in 2014           764,494.05                                                                               764,494.05
        (1) Disposal or scrap       764,494.05                                                                               764,494.05
      4.Ending balance           31,685,159.76    2,527,851.26          21,643.05                        199,992.57        34,434,646.64
      1. Ending book value       51,617,220.19    2,158,485.92      663,433.14        1,161,714.35       700,506.47        56,301,360.07
     2 Beginning book
                                 55,322,568.90    2,498,231.60      893,841.53          872,868.41      1,041,395.03       60,628,905.47
value


 (2) Fixed assets temporarily idled

                                                                                                                                 In RMB

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


(3) Fixed assets rented by finance leases

Nil


(4) Fixed assets leased in the operating leases

Nil


(5) Fixed assets without certificate of title completed

Nil
Other explanation
No fixed assets were mortgaged or guaranted at end of the Period

20. Construction in process

Nil


21. Engineering materials

Nil





       司公限有份股心中游旅海东大南海                                                        2014   文全告报度年
22. Disposal of fixed assets

Nil

23. Productive biological assets

(1) Measured by cost

□ Applicable√ Not applicable


(2) Measured by fair value

□ Applicable√ Not applicable


24. Oil-and-gas assets

□ Applicable√ Not applicable


25. Intangible assets

(1) Intangible assets

                                                                                                                In RMB

                                                                       Non-patent
                Item                  Land use right    Patent right                Others              Total
                                                                       technology
I. Original book value
      1. Beginning balance              87,833,001.74                                                  87,833,001.74
      2. Increase in the period
         (1) Purchase
         (2) Internal R&D
         (3) Increase in enterprise
merger


      3. Decrease in the period            517,724.00                                                     517,724.00
         (1) Disposal                      517,724.00                                                     517,724.00


      4. Ending balance                 87,315,277.74                                                  87,315,277.74
II. Accumulated amortization
      1. Beginning balance              29,902,202.33                                                  29,902,202.33
      2. Increase in the period            894,941.04                                                     894,941.04
            (1) Withdraw                   894,941.04                                                     894,941.04


      3. Decrease in the period             45,874.29                                                      45,874.29
         (1) Disposal                       45,874.29                                                      45,874.29


      4. Ending balance                 30,751,269.08                                                  30,751,269.08
III. Depreciation reserve
      1. Beginning balance              29,343,890.98                                                  29,343,890.98
      2. Increase in the period



    司公限有份股心中游旅海东大南海                                                                     2014   文全告报度年
            (1) Withdraw


      3. Decrease in the period
          (1) Disposal


      4. Ending balance                29,343,890.98                                                                 29,343,890.98
IV. Booking value
      1. Ending book value             27,220,117.68                                                                 27,220,117.68
      2. Beginning book value          28,586,908.43                                                                 28,586,908.43


(2) Land use right without certificate of title completed

Nil


26. Development expenditure

Nil


27. Goodwill

Nil

28. Long-term deferred expenses
                                                                                                                            In RMB

                                               Increase in the     Amortization in the
         Item             Beginning balance                                              Other decreases          Ending balance
                                                   period                period

Hotel exterior wall
                                  196,354.90                                                   196,354.90
coating project
Total                             196,354.90                                                   196,354.90
Nil


30 .Other non-current assets

Nil


31 .Short-term loans

Nil


32. Financial liabilities measured at fair value through current profit and loss

Nil


33. Derivative financial liabilities

□ Applicable√ Not applicable





              司公限有份股心中游旅海东大南海                                                              2014   文全告报度年
34. Note payable

Nil

35. Accounts payable

(1) Details of accounts payable are as follows

                                                                                                                          In RMB

                            Item                          Ending balance                           Beginning balance

Within 1 year (including 1 year)                                            798,580.05                               1,142,768.65


1-2 years (including 2 years)                                               562,577.83                                 145,272.00


2-3 years (including 3 years)                                               145,272.00                                 376,032.38


Over 3 years                                                                883,915.31                                 507,882.93

Total                                                                      2,390,345.19                              2,171,955.96


)))) ((((
      2 Accounts payable with major amount and aging of over one year

Nil

36.Accounts received in advance


(1)Accounts received in advance

                                                                                                                          In RMB

                            Item                          Ending balance                           Beginning balance

Within 1 year (including 1 year)                                            861,565.30                               1,010,172.16


1-2 years (including 2 years)                                                48,544.76                                 185,737.68


2-3 years (including 3 years)                                                77,206.88                                 232,497.38


Over 3 years                                                                372,928.97                                 171,587.59

Total                                                                      1,360,245.91                              1,599,994.81


)))) ((((
      2 Accounts received in advance with major amount and aging of over one year Nil

(3) Assets settled formed by construction contract which has un-completed at period-end

Nil

37.Employee compensation payable
(1)Classification of employee compensation payable
                                                                                                                          In RMB

                     Item             Beginning balance Increase in the period   Decrease in the period      Ending balance



    司公限有份股心中游旅海东大南海                                                                             2014   文全告报度年
I. Short-term employee benefits               3,549,851.04           8,422,822.78                  8,520,999.77                3,451,674.05


II. Post-employment benefits -
                                                                       751,297.97                   751,297.97
defined contribution plans
Total                                         3,549,851.04           9,174,120.75                  9,272,297.74                3,451,674.05

(2) Short-term employee benefits
                                                                                                                                     In RMB

                 Item                  Beginning balance       Increase in the period     Decrease in the period          Ending balance

1.Salary, bonus, allowance and
                                              2,852,036.47                 6,537,600.63            6,750,324.46                 2,639,312.64
subsidy

2.Employee welfare                                                         1,179,780.97            1,179,780.97

3.Social insurance premium                                                  367,991.27               367,991.27

Of which   :   including: medical
                                                                            323,511.74               323,511.74
insurance expenses

Work        injury        insurance
                                                                             20,215.58                20,215.58
expenses

Maternity insurance                                                          24,263.95                24,263.95

4.Housing provident funds                                                   108,450.30               108,450.30

5.Labor     union       expenditures

and       employee        education             697,814.57                  228,999.61               114,452.77                   812,361.41

expenses
Total                                         3,549,851.04                 8,422,822.78            8,520,999.77                 3,451,674.05


(3) Details of defined contribution plans

                                                                                                                                     In RMB

            Item                  Beginning balance        Increase in the period       Decrease in the period        Ending balance

1.Basic          endowment
                                                                       710,856.40                   710,856.40
insurance expenses

2.Unemployment
                                                                          40,441.57                  40,441.57
insurance expenses
Total                                                                  751,297.97                   751,297.97


38 .Taxes and surcharges payable

                                                                                                                                     In RMB





              司公限有份股心中游旅海东大南海                                                   2014   文全告报度年
                         Item                  Ending balance                            Beginning balance

VAT                                                               135,982.62                                    135,982.62


Business tax                                                       86,744.38                                    111,018.40


Enterprise income tax                                           -1,702,702.80                              -1,702,702.80


Individual income tax                                                  16.52


Urban maintenance and construction tax                              6,072.11                                      7,771.29


Educational surtax                                                  4,337.22                                      5,550.92


Property tax                                                      204,986.70                                    204,986.58


Land use tax                                                      108,590.94                                     72,393.00

Total                                                           -1,155,972.31                              -1,164,999.99


39. Interest payable

Nil


40. Dividend payable

Nil


41 .Other payables

)))) ((((
      1         Other payables by items

                                                                                                                   In RMB

                         Item                  Ending balance                            Beginning balance

Within 1 year (including 1 year)                                  860,464.13                               2,458,050.52


1-2 years (including 2 years)                                     142,349.99                                    308,551.68


2-3 years (including 3 years)                                     299,546.18                                    122,605.47


Over 3 years                                                22,317,010.81                                 23,003,005.34

Total                                                       23,619,371.11                                 25,892,213.01


(2) Other payables with large amount and aging of over one year

                                                                                                                   In RMB

                     Company name              Ending balance                   Reason for non-repayment or carryover


China Securities Regulatory Commission                      19,810,000.00                Financial difficulty

Sun Hongjie                                                     1,000,000.00              Guarantee deposit



    司公限有份股心中游旅海东大南海                                        2014   文全告报度年
Hong Kong Deloitte & Touche LLP                             285,003.21      Audit fees

Fu Yumei                                                    215,780.23    Rental expenses
Total                                                     21,310,783.44         --
Other notes

42. Divided into liability held for sale

Nil


43. Non-current liability due within one year Nil

44. Other current liability

Nil

45. Long-term loans

Nil


46. Bond payable

Nil

47. Long-term payable

Nil


48. Long-term employee salary payable

Nil


49. Specific payable

Nil

50. Estimates liabilities

Nil


51. Deferred income

Nil


52. Other non-current liability

Nil

53 .Share capital

                                                                                              In RMB



    司公限有份股心中游旅海东大南海                                                                        2014    文全告报度年
                                                             Increase or decrease (+,   -   )

                    Beginning                                        Share capital
                     balance                                                                                            Ending balance
                                      New issue      Shares granted converted from         Others         Sub-total

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


54. Other equity instruments

Nil


55 .Capital reserves

                                                                                                                                  In RMB

           Item                  Beginning balance       Increase in the period      Decrease in the period       Ending balance

Capital (share capital)
                                        33,336,215.58                                                                    33,336,215.58
premium

Other capital reserves                  20,806,634.43                                                                    20,806,634.43

Total                                   54,142,850.01                                                                    54,142,850.01


56.     Treasury stock

Nil

57. Other comprehensive income

Nil


58. Reasonable reserves

Nil

59. Surplus reserves

Nil


60 .Undistributed profits

                                                                                                                                  In RMB

                          Item                                      The period                                Last period
Undistributed profit of period-begin after
                                                                             -336,331,002.15                            -334,131,682.19
adjustment
Plus: net profit attributable to owner of parent
                                                                                  2,503,486.47                              -2,199,319.96
company in the period
Undistributed profits of period-end                                          -333,827,515.68                            -336,331,002.15
Adjustment of undistributed profit at period-begin:
1) For the retroactive adjustment based on Accounting Standards for Business Enterprises and other relevant regulations, affected


    司公限有份股心中游旅海东大南海                                                                      2014 文全告报度年
undistributed profit at period-begin of 0 Yuan
2) For changes of accounting policies, affected undistributed profit at period-begin of 0 Yuan
3) For correction on major accounting errors, affected undistributed profit at period-begin of 0 Yuan
4) For changes of consolidation scope from same controlling, affected undistributed profit at period-begin of 0 Yuan
5) Other adjustment totally affected undistributed profit at period-begin of 0 Yuan



61 .Operating income and operating cost

                                                                                                                                In RMB
                                          Amount as the period                                 Amount as last period
           Item
                                    Income                       Cost                     Income                       Cost
Main business                         20,202,134.10                 337,785.89             23,660,779.80                       7,841.74
Total                                 20,202,134.10                 337,785.89             23,660,779.80                       7,841.74


62 .Business tax and surcharges

                                                                                                                                In RMB
                     Item                              Amount as the period                        Amount as last period

Business tax                                                              1,013,927.25                                  1,191,253.16


Urban maintenance and construction tax                                        70,974.91                                       83,387.72


Educational surtax                                                            50,696.38                                       59,562.65

Total                                                                     1,135,598.54                                  1,334,203.53


63 .Selling expenses

                                                                                                                                In RMB
                     Item                              Amount as the period                        Amount as last period

Salary                                                                    3,148,970.88                                  2,770,875.24


Depreciation                                                              4,219,719.22                                  4,663,061.63


Water and electricity fee                                                 1,323,395.39                                  1,149,023.73


Repair charges                                                              615,830.33                                    682,104.08


Other expenses                                                            2,475,496.07                                  2,631,041.93

Total                                                                    11,783,411.89                                 11,896,106.61


64 .Administrative expenses

                                                                                                                                In RMB
                     Item                              Amount as the period                        Amount as last period

Staff salary and welfare                                                  4,088,037.72                                  4,218,227.29


Taxes                                                                     1,265,633.31                                  1,619,469.82





    司公限有份股心中游旅海东大南海                                                                    2014   文全告报度年
Business entertainment                                                 941,322.90                                     1,040,314.30


Labor insurance expenses                                              1,116,266.44                                      911,398.77


Amortization of site use right                                         868,727.16                                       868,727.16


Other expenses                                                       3,143,215.34                                     3,805,332.72

Total                                                               11,423,202.87                                    12,463,470.06


65 .Financial expenses

                                                                                                                             In RMB
                     Item                           Amount as the period                           Amount as last period

Interest expenses

Less: interest income                                                      71,232.46                                       96,292.99

Handling charges                                                       110,748.81                                       151,051.43
Total                                                                      39,516.35                                       54,758.44


66. Losses on assets impairment

                                                                                                                             In RMB
                     Item                           Amount as the period                           Amount as last period
I. Losses on bad debt                                                  212,606.59                                       187,419.68
Total                                                                  212,606.59                                       187,419.68


6. Gains from changes of fair value

                                                                                                                             In RMB
Source of gains from changes of fair value          Amount as the period                           Amount as last period


68. Gains on investment

                                                                                                                             In RMB
                        Item                           Amount as the period                         Amount as last period
Investment income of available-for-sale
                                                                           2,020,000.00
financial assets in holding period
Investment income obtained from disposal of
                                                                           2,000,000.00
available-for-sale financial assets
Total                                                                      4,020,000.00


69 .Non-operating incomes

                                                                                                                             In RMB
                                                                                                     Amount included in current
              Item                   Amount as the period          Amount as last period
                                                                                                    non-recurring profits or losses

Total gains on disposal of
                                                 3,126,454.22                             795.12                      3,126,454.22
non-current assets



              司公限有份股心中游旅海东大南海                                                                   2014   文全告报度年
Including: gain on disposal of
                                                       3,126,454.22                            795.12                      3,126,454.22
fixed assets

Income from compensation                                  91,123.01                          84,448.70                        91,123.01


Others                                                     2,768.04                          40,151.10                          2,768.04

Total                                                  3,220,345.27                         125,394.92                     3,220,345.27
Government subsidy reckoned into current gains/losses Nil :
70. Non-operating expenses

                                                                                                                                  In RMB
                                                                                                          Amount included in current
                     Item                  Amount as the period             Amount as last period
                                                                                                         non-recurring profits or losses

Total losses on disposal of
                                                           6,870.77                          40,494.62                          6,870.77
non-current assets

Including: loss on disposal of
                                                           6,870.77                          40,494.62                          6,870.77
fixed assets
Other                                                                                         1,200.00
Total                                                      6,870.77                          41,694.62                          6,870.77


71 .Income tax expenses

)))) ((((
      1         Income tax expense table

Nil


)))) ((((
      2 Adjustment process of accounting profit and income tax expense

                                                                                                                                  In RMB
                                   Item                                                     Amount as the period
Total profit                                                                                                               2,503,486.47


72 .Other comprehensive income

More details can be seen in Note.

73. Notes to statement of cash flows

)))) ((((
      1         Other cash receipts related to operating activities

                                                                                                                                  In RMB
                            Item                               Amount as the period                  Amount as last period

Receive current account of Sanya Haiyuan Hotel
                                                                             2,808,368.63
Management Ltd.




              司公限有份股心中游旅海东大南海                                             2014   文全告报度年
Handling charges for price adjustment fund                       343,404.00                           24,379.10


Individual social insurance                                      307,260.55                          582,304.76


Compensation for articles in the guest rooms                      91,123.01                          114,210.05


Interest income                                                   71,232.46                           96,292.99


Electricity fee                                                   40,547.95                           40,526.78


Others                                                           163,950.73

Total                                                          3,825,887.33                          857,713.68


)))) ((((
      2 Cash paid for other operating activities

                                                                                                            In RMB
                        Item                   Amount as the period               Amount as last period

Business entertainment expenses                                 1,017,733.30                        1,804,532.20


Traveling expenses                                                906,196.32                          477,298.08


Current account of Luoniushan Co., Ltd.                           800,000.00


Audit fee                                                         352,000.00                          342,756.00


Price adjustment fund                                             342,036.00


Individual social insurance                                       307,260.55

Announcement fee (A/B shares
                                                                  280,000.00                          490,428.17
information disclosure)

Directors and supervisors membership
                                                                  278,437.35                          270,499.50
dues

Fuel fee                                                          114,961.00                          168,048.60


Listing fee                                                           80,000.00                           80,000.00


Postage                                                               38,624.99                           65,201.21

Office expenses                                                       11,557.60                           19,752.20
Other expenses                                                    377,626.63                          233,962.19
Repair charge                                                         19,824.50                       119,415.30
Personal loans                                                                                        553,569.20
Financial handling charge                                                                             151,051.43
Total                                                           4,926,258.24                        4,776,514.08


(3) Cash received with other investment activities concerned

Nil





             司公限有份股心中游旅海东大南海                                                  2014   文全告报度年
(4) Cash paid for other investment activities

Nil


(5) Cash received with other financing activities concerned

Nil


(6) Cash paid for other financing activities

Nil

74 .Supplementary information to statement of cash flows
)))) ((((
      1         Supplementary information to statement of cash flows
                                                                                                              In RMB
                      Supplementary information             Amount as the period          Amount as last period

1.Net profit adjusted to cash flows from operating
                                                                     --                             --
activities

Net profit                                                                 2,503,486.47                  -2,199,319.96


Plus: provision for asset impairment                                        212,606.59                      187,419.68


Depreciation of fixed assets, gas and oil assets and
                                                                           4,552,530.56                   4,925,210.05
productive biological assets

Amortization of intangible assets                                           894,941.04                      888,387.57


Amortization of long-term deferred expenses                                 386,191.87                      394,528.08


Loss on disposals of fixed assets, intangible assets and
                                                                          -3,119,583.45                      39,699.50
other long-term assets (\"-\" for gains)
Investments loss (\"-\" for gains)                                          -4,020,000.00

Decrease in inventories (\"-\" for increases)                                   11,329.70                     -25,809.51


Decrease in operating receivables