大东海B:2019年年度报告摘要(英文版)

    海南大东海旅游中心股份有限公司                                            2019 年年度报告摘要


Stock Code: 000613, 200613           Short Form of the Stock: Dadonghai -A, Dadonghai –B
Notice No: 2020-012




         海南大东海旅游中心股份有限公司
       Hainan Dadonghai              Tourism Centre         (Holdings)      Co.,    Ltd.




Summary of Annual Report 2019




                          Disclosure Date: 21 March 2020

                                                 1
        海南大东海旅游中心股份有限公司                                                                   2019 年年度报告摘要


        Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
                 Summary of Annual Report 2019
I. Important Notice

The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of annual report that published on media appointed by
CSRC.

Objection statement of directors, supervisors and senior executives
□ Applicable √ Not applicable
.Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable


II. Basic information of the company

1. Company profile

 Short form of the stock                Dadonghai -A, Dadonghai -B         Stock code              000613, 200613
 Stock exchange for listing             Shenzhen Stock Exchange
          Person/Way to contact                   Secretary of the Board                       Rep. of security affairs

 Name                                   Wang Hongjuan
 Office add.                            Dadonghai Sanya
 Fax.                                   0898-88214998
 Tel.                                   0898-88219921
 E-mail                                 hnddhhn@21cn.com


2. Main business or product introduction in the reporting period

The company's main business is hotel accommodation and catering services. Procurement of goods is mainly the
goods and materials necessary for hotel and catering operations by taking the principle of low price and fine
quality, some goods are purchased by directly signing purchase contracts with suppliers, and some good are
purchased by procurement agents. The operation are mainly including the network billing and overseas travel
agency team, and supplemented by the individual travelers of non-internet marketing and business and the tourists
from travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in Sanya City, Hainan
Province, and it has become a member of the nationwide famous hotels because of the convenient transportation,
beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- and
low-grade hotels or guesthouses numerously emerge, resulting in the supply much larger than the market demand,



                                                                2
      海南大东海旅游中心股份有限公司                                                                                 2019 年年度报告摘要
the industry competition is rather fierce, and the pressure of decline in business remains.


3. Main accounting data and financial indexes

(1) Main accounting data and financial indexes for recently three years

Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
                                                                                                                                   In RM B
                                                    2019                     2018               Changes over last year         2017
 Operating income (RM B)                      25,935,405.44                 29,515,592.33                     -12.13%       27,906,564.23
 Net profit attributable to shareholders
                                                    756,721.46                 653,282.19                         15.83%     2,858,998.66
 of the listed company (RMB)
 Net profit attributable to shareholders
 of the listed company after deducting
                                               -1,078,091.71                   816,346.09                    -232.06%          779,389.74
 non-recurring     gains   and      losses
 (RM B)
 Net cash flow arising from operating
                                                   4,713,661.51              6,783,893.26                     -30.52%        5,127,288.47
 activities (RM B)
 Basic        earnings     per      share
                                                        0.0021                      0.0018                        16.67%           0.0079
 (RM B/Share)
 Diluted       earnings    per      share
                                                        0.0021                      0.0018                        16.67%           0.0079
 (RM B/Share)
 Return on Equity                                        0.97%                      0.84%                         0.13%            3.78%
                                                                                                 Changes over end of
                                              End of 2019                  End of 2018                                      End of 2017
                                                                                                      last year
 Total assets (RMB)                           87,521,184.25                 88,197,118.07                         -0.77%    87,466,661.80
 Net assets attributable to shareholder
                                              78,486,603.96                 77,788,696.29                         0.90%     77,135,414.10
 of listed company (RM B)


(2) Quarterly main financial index

                                                                                                                                    In RM B
                                                       First quarter           Second quarter          Third quarter       Fourth quarter
 Operating income                                          9,293,216.58             4,948,744.46         3,650,589.50        8,042,854.90
 Net profit attributable to shareholders of the
                                                           1,572,029.88              -816,055.87        -1,154,883.19        1,155,630.64
 listed company
 Net profit attributable to shareholders of the
 listed       company       after      deducting           1,572,029.88              -976,086.33        -2,140,780.97          466,745.71
 non-recurring gains and losses
 Net cash flow arising from operating
                                                           1,436,500.57              -167,083.92          -222,628.08        3,666,872.94
 activities

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No




                                                                       3
      海南大东海旅游中心股份有限公司                                                                         2019 年年度报告摘要
4. Shares and shareholders

(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered
and top ten shareholders

                                                                                                                                In Share
 Total common                 Total common stock                  Total preference                 Total preference
 stock                        shareholders at end of              shareholders with                shareholders with voting
 shareholders in              last month before           31,64   voting rights                    rights recovered at end of
                    34,148                                                                     0                                           0
                                                              9
 reporting                    annual report                       recovered at end of              last month before annual
 period-end                   disclosed                           reporting period                 report disclosed

                                                          Top ten shareholders

                                                                                                                       Number of shares

                                                                   Proportion                       Amount of           pledged/frozen
                                                  Nature of                          Amount of
         Full name of Shareholders                                    of shares                      restricted       State
                                                 shareholder                         shares held
                                                                        held                        shares held        of       Amount
                                                                                                                      share

                                              Domestic non
                                                                                                                      Pled
 Luoniushan Co., Ltd.                         state-owned                17.55%      63,885,980                   0             44,720,186
                                                                                                                      ged
                                              corporate
                                              Domestic nature
 Yang M eiqin                                                             4.47%      16,279,028                   0
                                              person
                                              Domestic nature
 Pan Anjie                                                                4.01%      14,593,598                   0
                                              person
                                              Domestic non
Hainan Ya’an Residence Property              state-owned                 2.25%       8,205,800                   0
Service Co., Ltd.
                                              corporate
                                              Domestic nature
 Chen Jinlian                                                             2.13%       7,766,400                   0
                                              person
                                              Domestic nature
 Pan Aiping                                                               1.13%       4,110,738                   0
                                              person
 China Investment Securities (HK) Co.,
                                              Foreign corporate           0.99%       3,622,300                   0
 Ld. – customer deposit
 Shenwan Hongyuan Securities (Hong
                                              Foreign corporate           0.84%       3,056,390                   0
 Kong) Co., Ltd.
                                              Domestic nature
 Zhang Fengxiu                                                            0.84%       3,041,372                   0
                                              person
                                              Domestic nature
 Sun Huiming                                                          0.79%       2,888,690                0
                                              person
                                              Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is the
                                              wholly-owned subsidiary of Luoniushan Co., Ltd; Yang M eiqin, Pan Anjie, Chen Jinlian
 Explanation on associated relationship       and Pan Aiping are the persons acting in concert; the Company is unknown whether there
 among the aforesaid shareholders             exists associated relationship or belongs to the consistent actor regulated by the
                                              M anagement M easure of Information Disclosure on Change of Shareholding for Listed
                                              Company among the other shareholders.

 Explanation on shareholders involving
                                              N/A
 margin business




                                                                  4
      海南大东海旅游中心股份有限公司                                                             2019 年年度报告摘要
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held

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


(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:




5. Corporate bonds

Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No




                                                                5
     海南大东海旅游中心股份有限公司                                                        2019 年年度报告摘要
III. Discussion and analysis of operation

1. Introduction of operation in the reporting period

During the reporting period, the company realized main business income of 25,935,400 Yuan, decreased by
3,580,200 Yuan compared with the same period last year ( Building A of the Hotel was closed for five months due
to the decoration), a decrease of 12.13%; realized operating profit loss of 785,400 Yuan, decreased by 1,601,700
Yuan compared with the same period last year, a decrease of 196.21%; net non-operating income of 1,542,200
Yuan, increased by 1,705,200 Yuan compared with the same period last year, an increase of 1045.74%; net profit
of 756,700 Yuan, increased by 103,400 Yuan compared with the same period last year, an increase of 15.83%.

During the reporting period, the Company focus on market-oriented, actively to exploited the sales channel,
enlarge the construction of software and hardware equipment, strengthening enterprise culture construction as
well as the employee team-building, strictly controlling the cost management, we completed the operation targets
that formulated at beginning of the year basically. Main works are as:

1. Continue to be market-oriented and actively expand marketing channels
During the reporting period, the company continued to be market-oriented and had a flexible marketing
mechanism. While further strengthening its existing customers, it also strengthened its cooperation with various
well-known online sales platforms, domestic and overseas travel agencies, and first- and second-tier city direct
sales travel agencies, and actively expanded the online markets, the Russian market and the Southwest, North
China, East China and South China markets, which effectively increased the market share. During the reporting
period except for the renovation period, the company's overseas sales revenue, online sales revenue, conference
team and travel agency sales revenue of individu al customers increased compared with the same period last year.

2. Increase the construction of hotel software and hardware equipment and facilities, improve product quality and
enhance competitiveness
During the reporting period, the hotel rooms and lobby could not meet the market demand due to being severely
aged and unrepaired for a long period of time. Therefore, the company carried out a comprehensive design,
decoration and renovation to all the guest rooms and lobby, restaurant, and slab pavement of Building A of the
hotel during the off-season, and comprehensively updated the corresponding equipment and facilities. At the same
time, in accordance with the "people-oriented" concept of employment, the company strengthened corporate
culture and staff building, enriched the cultural life of employees, created a harmonious working environment, and
innovated employee management systems. Based on the business philosophy of “strengthening the company with
quality”, the company continuously strengthened hotel management and skills training for employees to improve
their basic knowledge and post-service business capabilities, strengthened employees' business level, service
awareness, responsibility awareness and quality awareness, effectively improved the hotel service quality and
management level, and enhanced the quality and comprehensive competitiveness of hotel products.

3. Keep strict cost control, standardize business management, improve internal control system, and maximize
corporate benefits



                                                         6
      海南大东海旅游中心股份有限公司                                                                 2019 年年度报告摘要
During the reporting period, the company continued to strengthen procurement cost control management and
budget management, implemented diversified procurement cost inquiry channels, scientifically controlled
operating costs, strictly and reasonably controlled various expenses, and carried out regular inspections and
repairs to eliminate waste of resources and increase the reasonable degree of procurement costs and the revenue
cost-effectiveness, strengthened financial business management, and cleaned up and written off the long-term on
credit accounts payable in the business process in accordance with relevant regulations. At the same time, the
Company continued to improve the internal control system, strengthen regulation and implementation of internal
control system, strengthen the effective implementation of internal control work, reduce risks and consumption,
increase revenue and control expenditures, emphasize production safety and improve operational efficiency, and
thus maximize the interests of the Company as a whole.

In 2020, the Company will strengthen the prevention and control of novel coronavirus epidemic, and continue to
consolidate and expend the sales channel, improve the product quality of the hotel and service standards, enhance
comprehensive competitive ability in order to lay a solid foundation for the Company’s sustainable, stale and
healthy development.


2. Whether the main business had major change in the reporting period

□ Yes √ No


3. About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit

√Applicable □Not applicable
                                                                                                                      In RM B
                                                                                                             Increase/decrea
                                                                       Increase/decrea    Increase/decrea
                        Operating                       Gross profit                                           se of gross
      Name                             Operating cost                   se of operating    se of operating
                         revenue                           ratio                                               profit ratio
                                                                        revenue y-o-y        cost y-o-y           y-o-y
 Room revenue         20,039,795.13     -1,261,959.87         54.00%          -11.84%           -436.70%             -5.06%
 Catering
 entertainment          2,742,581.69      -300,791.86         49.33%          -26.09%            -23.47%              2.51%
 income
 Other business         3,153,028.62      777,351.71          84.95%           -2.59%             -6.86%              0.39%
 Total                25,935,405.44       -785,400.02         57.27%          -12.13%           -196.21%             -2.90%


4. Whether the characteristics of management seasonal or cyclical need special attention

□ Yes √ No


5. In the reporting period, note of major changes in operating income, operating cost, t otal net profit
attributable to common stock shareholders of listed company or composing the previous reporting period

□ Applicable √ Not applicable


6. Particular about suspended and delisting

□ Applicable √ Not applicable



                                                             7
      海南大东海旅游中心股份有限公司                                                                      2019 年年度报告摘要
7. Relevant items involving financial report

(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year

√Applicable □Not applicable

1. Changes in significant accounting policies
(1) The Ministry of Finance promulgated the Circular of the Ministry of Finance on Revising and Issuing the 2019
Versions of General Corporate Financial Statement Templates (Cai Kuai [2019] No.6) on April 30, 2019, and
Revising and Issuing the 2019 Version of Consolidated Financial Statements Format (Cai Kuai [2019] No.16) on
September 19, 2019, to revise the general corporate financial statement templates. Main impacts are as follows:

                                                 Procedures for
     Content of and reason for changes in
                                                examination and               Name and amount of affected report item
              accounting policies
                                                    approval

                                                                  "Notes receivable and accounts "Notes receivable" and "accounts

                                                                  receivable" are divided into "notes receivable" and "accounts
In the balance sheet, "notes receivable and
                                                                  receivable". The balance of "notes receivable" at the end of last
accounts receivable" are divided into "notes
                                                Resolution of the year is RBM 0, while the balance of "accounts receivable" at the
receivable" and "accounts receivable". "Notes
                                                Board          of end of last year is RM B 426,434.87;
payable and accounts payable" is divided into
                                                Directors         "Notes payable and accounts payable" are divided into "notes
"notes payable" and "accounts payable". The
                                                                  payable" and "accounts payable". The balance of "notes payable" at
comparison data are adjusted accordingly.
                                                                  the end of the previous year is RBM 0 and the balance of "accounts

                                                                  payable" at the end of the previous year is RBM 1,607,835.81.
(2) In 2017, the Ministry of Finance revised The Accounting Standards for Business Enterprises No. 22 --
Recognition and Measurement of Financial Instruments, the Accounting Standards for Business Enterprises No.
23 -- Transfer of Financial Assets, The Accounting Standards for Business Enterprises No. 24 -- Hedge
Accounting, and The Accounting Standards for Business Enterprises No. 37 -- Presentation of Financial
Instruments. The revised standards stipulate that for financial instruments whose recognition has not been
terminated on the first implementation date, if the previous recognition and measurement are inconsistent with the
requirements of the revised standards, adjustments shall be made retroactively. If the data in the previous financial
statements are not consistent with the revised standards, no adjustment is required. The Company will adjust
retained earnings and other comprehensive earnings for the cumulative impact of retroactive adjustments at the
beginning of the year.
Based on the balance at the end of the previous year adjusted in accordance with the provisions of Cai Kuai [2019]
No.6 and Cai Kuai [2019] No.16, the main impacts of the implementation of the new financial instrument
standards are as follows:




                                                                  8
      海南大东海旅游中心股份有限公司                                                                          2019 年年度报告摘要


                                                              Procedures for

Content of and reason for changes in accounting policies       examination             Name and amount of affected report item

                                                              and approval

Provision for expected credit losses is made for "financial
                                                                               Undistributed profit: RM B 58,813.79 decreased
assets measured at amortized cost" and "financial assets        Board of
                                                                               Accounts receivable: RM B 37,740.85 decreased
(debt instruments) measured at fair value and whose             Directors
                                                                               Other receivables: RM B 21,072.94 decreased
changes are included in other comprehensive income".
On the basis of the balance at the end of the previous year adjusted in accordance with the provisions of Cai Kuai
[2019] No.6 and Cai Kuai [2019] No.16, the classification and measurement results of financial assets and
liabilities are as follows:
Consolidated

      (Former Financial instruments standards)                                 (New financial instruments standards)

                 December 31, 2018                                                        January 1, 2019

                     M easurement
        Item                             Book value               Item                M easurement category            Book value
                        category
                                                        Accounts receivable             Amortization cost              388,694.02


    Accounts                                                                     M easured at fair value and whose
                                         426,434.87           Receivables
    receivable
                                                                                   changes are recorded in other
                                                               financing
                                                                                      comprehensive income
Other receivables    Amortization        458,242.73      Other receivables              Amortization cost              437,169.79
                        cost
(3) Implementation of Accounting Standard for Business Enterprises No. 7 - Exchange of Non-Monetary Assets
(revised in 2019)
The Ministry of Finance issued on May 9, 2019 by the Accounting Standards for Enterprises No. 7 - Exchange of
Non-Monetary Assets (2019 revision) (Cai Kuai [2019] No. 8), the revised rules shall enter into force as of June
10, 2019, and the exchange of non-monetary occur between January 1, 2019 and the effective date, adjustments
should be based on these criteria. The exchange of non-monetary assets prior to 1 January 2019 does not require
retroactive adjustment in accordance with the provisions of these guidelines. The Company's implementation of
the above guidelines has no material impact during the reporting period.
(4) Implementation of Accounting Standard for Business Enterprises No. 12 - Debt Restructuring (revised in
2019)
The Ministry of Finance promulgated the Accounting Standards for Business Enterprises No. 12 - Debt
Restructuring (2019 revision) (Cai Kuai [2019] No. 9) on May 16, 2019. The revised standards will be effective
from June 17, 2019. For debt restructurings that occur before 1 January 2019, there is no need to make retroactive
adjustments in accordance with the provisions of the code. The Company's implementation of the above
guidelines has no material impact during the reporting period.



                                                                    9
      海南大东海旅游中心股份有限公司                                                                       2019 年年度报告摘要
2. Changes in significant accounting estimates
No change in significant accounting estimates during the reporting period of the Company.


(2) Major accounting errors within reporting period that needs retrospective restatement

□ Applicable   √ Not applicable

No major accounting errors within reporting period that needs retrospective restatement for the Comp any in the period.


(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope

□ Applicable √ Not applicable
No change in consolidation statement’s scope of the Company in the Period.




                                                                                Board of Directors of
                                               HAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.
                                                                 19 March 2020




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