大东海B:2020年半年度报告(英文版)

司公限有份股心中游旅海东大南海                                    2020   文全告报度年半年
Stock Code: 000613, 200613       Short Form of the Stock: Dadonghai -A, Dadonghai -B




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




                 Semi-Annual Report 2020
                       (Full-text)




                     Disclosure Date: 22 August 2020




                                         1
      司公限有份股心中游旅海东大南海                                                                        2020   文全告报度年半年

              Section I. Important Notice, Contents and Interpretation


      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.
      Yuan Xiaoping, Principal of the Company, Fu Zongren, person in charge of accounting works
      and Fu Zongren, person in charge of accounting organ (accounting principal) hereby confirm
      that the Financial Report of 2020 Semi-Annual Report is authentic, accurate and complete
      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.
      Concerning the forward-looking statements with future planning involved in the Report, they
      do not constitute a substantial commitment for investors. Investors are advised to exercise
      caution of investment risks.


                                                               Content

Semi-annual Report 2020.....................................................................................................................1

Section I Important Notice, Content and Interpretation....................................................................... 4

Section II Company Profile and Main Financial Indexes.................................................................... 4

Section III Summary of Company Business........................................................................................ 7

Section IV Discussion and Analysis of Operation............................................................................... 9

Section V Important Events................................................................................................................16

Section VI Particular about Changes in shares and shareholders.......................................................25

Section VII Preferred Stock................................................................................................................30

Section VIII Convertible Bonds......................................................................................................... 31

Section IX Particulars about Directors, Supervisors and Senior Executives..................................... 32

Section X Corporate Bond................................................................................................................. 33

Section XI Financial Report............................................................................................................... 34

Section XII Documents available for reference............................................................................... 126


                                                                     2
       司公限有份股心中游旅海东大南海                                                        2020   文全告报度年半年
                                                Interpretation

                 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

Company or 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 of Directors of Hainan Dadonghai Tourism Centre (Holdings) Co.,
Board of Directors (BOD)            Refers to
                                                Ltd.

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

Yuan                                Refers to   CNY/RMB




                                                Risk Warning

Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) are the
media for information disclosure appointed by the Company for year of 2020, 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.




                                                            3
        司公限有份股心中游旅海东大南海                                                              2020   文全告报度年半年

                Section II Company Profile and Main Financial Indexes

I. Company profile

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

 Short form of the Stock after changed            N/A

 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 the Company        DADONGHAI

 Legal representative                             Yuan Xiaoping


II. Person/Way to contact

                                                 Secretary of the Board                         Rep. of security affairs

 Name                            Wang Hongjuan

 Contact add.                    Dadonghai Sanya

 Tel.                            0898-88219921

 Fax.                            0898-88214998

 E-mail                          hnddhhn@21cn.com


III. Others

1. Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable    √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company have no change in reporting period,
found more details in Annual Report 2019.


2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not
□ Applicable    √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation



                                                                  4
      司公限有份股心中游旅海东大南海                                                                   2020   文全告报度年半年
place for semi-annual report have no change in reporting period, found more details in Annual Report 2019.


IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No

                                                                                      Same period of     Increase/decrease in this report
                                                                  Current period
                                                                                         last year                     y-o-y

 Operating revenue (RMB)                                               4,981,872.00   14,241,961.04                               -65.02%
 Net profit attributable to shareholders of the listed company
                                                                      -6,631,450.42      755,974.01                              -977.21%
 (RMB)
 Net profit attributable to shareholders of the listed company
                                                                      -6,547,754.87      595,943.55                            -1,198.72%
 after deducting non-recurring gains and losses (RMB)
 Net cash flow arising from operating activities (RMB)                -4,789,190.92     1,269,416.65                             -477.27%

 Basic earnings per share (RMB/Share)                                       -0.0182           0.0021                             -966.67%

 Diluted earnings per share (RMB/Share)                                     -0.0182           0.0021                             -966.67%

 Weighted average ROE (%)                                                    -8.82%           0.97%                                -9.79%

                                                                                                              Increase/decrease in this
                                                                     End of current     End of last
                                                                                                           report-end over that of last
                                                                        period            period
                                                                                                                    period-end

 Total assets (RMB)                                                   98,516,771.46   87,521,184.25                               12.56%

 Net assets attributable to shareholder of listed company
                                                                      71,855,153.54   78,486,603.96                                -8.45%
 (RMB)


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

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

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.


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

□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.




                                                                 5
      司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年半年
VI. Items and amounts of extraordinary profit (gains)/loss

√Applicable    □ Not applicable
                                                                                                                                   In RMB

                                     Item                                       Amount                           Note

 Gains/losses from the disposal of non-current asset (including the
                                                                                -19,129.52    Losses of scrapped fixed assets
 write-off that accrued for impairment of assets)

 Government subsidy calculated into current gains and losses(while                            Rewards for development of inbound
 closely related with the normal business of the Company, excluding the                       tourism market supporting by the
                                                                                262,840.35
 fixed-amount or fixed-proportion governmental subsidy according to                           government and tax credit for the VAT
 the unified national standard)                                                               input tax surcharge

 Other non-operating income and expenditure except for the                                    Compensation for early termination of
                                                                               -327,406.38
 aforementioned items                                                                         the contracts and other revenue
 Other revenue
 Total                                                                          -83,695.55                        --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss 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




                                                                    6
      司公限有份股心中游旅海东大南海                                                                 2020   文全告报度年半年

                            Section III Summary of Company Business

I. Main businesses of the company in the reporting period

The Company's main business is hotel accommodation and catering services. Procurement of goods is mainly the
goods and materials necessary for hotel and catering operations by taking the principle of low price and fine
quality, some goods are purchased by directly signing purchase contracts with suppliers, and some good are
purchased by procurement agents. The 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,
the industry competition is rather fierce, and the pressure of decline in business remains.


II. Major changes in main assets

1. Major changes in main assets


        Major assets                                                        Note of major changes

                              Increased 10.4097 million yuan with an increase of 140.24% compared with the end of last year,
 Monetary funds
                              mainly because received a loan from Industrial Bank and paying the construction amount.

                              Decreased 215,900 yuan with a decrease of 69.41% compared with the end of last year, mainly due
 Account receivable
                              to the collection of receivable.

                              Decreased 186,300 yuan with a decrease of 32.58% compared with the end of last year, mainly due
 Other account receivable
                              to the decline of utilities receivable.

                              Increased 3.5856 million yuan with an increase of 733.96% compared with the end of last year,
 Construction in progress
                              mainly due to the decoration amount for B-building of the Hotel.


2. Main overseas assets

□ Applicable √ Not applicable


III. Core Competitiveness Analysis

The Company takes hotel accommodation and catering services as the principle works, locates at Dadonghai bay
which is one of the China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has the
maximum passenger flow volume in Sanya City, and is about a 5-minute drive from downtown of Sanya City and
about a 30-munite drive from Sanya Phoenix Airport. The hotel is only tens of meters distant from the sea level,

                                                                        7
     司公限有份股心中游旅海东大南海                                                      2020   文全告报度年半年
possesses beautiful landscaping full of blooming flowers all the year round, and enjoys exceptional geography,
natural environmental advantages. The hotel has opened for more than two decades which is one of the oldest
hotels in Sanya and has received many domestic and foreign heads of state and national leaders. In the recent
years, the Company has comprehensively upgraded and rebuilt the hotel’s software and hardware facilities, further
improved the hotels internal and external business environment, and effectively enhanced the business
competitiveness. Currently, the management of the company’s hotel is still in the front rank among hotels in the
same area, with the same scale, and at the same level.
In the future work, the Company will keep trying to improve the hotel’s internal and external business
environment, strengthen the sales efforts and the staff construction, and further improve the operational capability.
During the reporting period, the Company's core competence had no significant change.




                                                         8
     司公限有份股心中游旅海东大南海                                                       2020   文全告报度年半年


                  Section IV Discussion and Analysis of Operation

I. Introduction

During the reporting period, the company achieved operating income of 4,981,900 Yuan in main business,
decreased by 9,260,100 Yuan compared with the same period last year, a decrease of 65.02%; operating profit has
loss of 6,284,900 Yuan achieved, decreased by 6,880,900 Yuan compared with the same period last year, a
decrease of 1154.62%; net non-operating income of -346,500 Yuan, decreased by 506,600 Yuan compared with
the same period last year, a decrease of 316.54%; net profit has 6,631,500 Yuan loss, decreased by 7,384,200
Yuan compared with the same period last year, a decrease of 977.21%.

During the reporting period, the novel coronavirus pneumonia epidemic spread wantonly worldwide, tourism and
tourism service industries continued to be severely affected by the epidemic, and the company's operations fell
sharply. In the face of severe difficulties, the company actively responded, on the one hand, it increased domestic
marketing efforts and carried out strict cost control management; on the other hand, it took full advantage of the
off-season operation during the epidemic, and increased the construction of hotel software and hardware
equipment and facilities. Main tasks were as follows:

1. Continued to increase the construction of hotel software and hardware facilities, improve product quality, and
enhance competitiveness

Because the hotel rooms have not been repaired for a long time, they are aging and old, and cannot meet the
market demand. During the reporting period, the company made full use of the off-season operation during the
epidemic period, and continued to comprehensively design, update, decorate and transform the hotel's B building,
C building, parking lot, garden landscape, and corresponding equipment and facilities, which effectively improved
the operating environment of hotel’s hardware equipment and facilities, and enhanced the quality and
comprehensive competitiveness of hotel products.

2. Increased domestic marketing efforts

Severely affected by the epidemic, the foreign tourist market has stagnated and it is difficult to recover in the short
term. In response, the company actively strengthened cooperation with domestic travel agencies, intensified
cooperation with well-known online sales platforms, and strived to expand the domestic tourist market. With the
country's gradual opening of the domestic tourism market, the domestic tourism market has gradually recovered,
and the company's network sales revenue has increased significantly, effectively increasing the market share of
domestic tourists and changing the situation of over-reliance on foreign tourists in the past.

3. Keep strict cost control and maximize corporate benefits
During the reporting period, the company continued to strengthen procurement cost control management and


                                                          9
      司公限有份股心中游旅海东大南海                                                                   2020   文全告报度年半年
budget management, scientifically controlled operating costs, strictly and reasonably controlled various expenses,
and carried out regular inspections and repairs to eliminate waste of resources, improve cost rationality and
revenue cost-effectiveness. At the same time, as hotel operations were very sluggish during the epidemic, the
company scientifically and reasonably arranged staff on duty and waiting for duty according to work needs, which
effectively reduced labor costs and maximized corporate interests.

In second half of 2020, the Company continues to consolidate and expand sales channels, improve the hotel’s
quality and service standards, and enhance the comprehensive competitiveness, to laying out a solid foundation
for sustained, stable and healthy development of the Company.


II. Main business analysis

See the “I-Introduction” in “Discussion and Analysis of Operation”
Change of main financial data on a y-o-y basis
                                                                                                                                In RMB

                                                           Same period          Y-o-y
                                       Current period                                                     Reasons for changes
                                                           of last year    increase/decrease

                                                                                               Under the influence of COVID-19,
 Operation revenue                      4,981,872.00      14,241,961.04            -65.02%
                                                                                               business declined seriously

                                                                                               Fixed costs account for a relatively high
 Operation cost                         5,052,678.43       5,514,477.93              -8.37%    in operation cost, decline of operation
                                                                                               cost is small relatively

                                                                                               Reducing the pay and fees to lower
 Sales expenses                         2,095,194.24       2,809,991.94            -25.44%
                                                                                               operation cost

                                                                                               Reducing the pay and fees to lower
 Administrative expenses                4,200,935.35       5,071,800.21            -17.17%
                                                                                               operation cost

 Financial cost                             -1,313.35       -133,732.09            -99.02%      Higher deposit interest income last year

 Net cash flow arising from                                                                    Operation revenue reduced greatly, the
                                        -4,789,190.92      1,269,416.65           -477.27%
 operation activities                                                                          operation loss increased greatly

 Net cash flow arising from
                                        -4,541,324.47       -522,876.00            768.53%     Hotel decoration investment
 investment activities

 Net cash flow arising from
                                       19,740,208.71                               100.00%     Loans from Industrial Bank
 financing activities

 Net increase of cash and cash                                                                 Received bank loans and paying the
                                       10,409,693.32         746,540.65          1,294.39%
 equivalent                                                                                    construction amount

Major changes on profit composition or profit resources in reporting period
□Applicable      √Not applicable
No changes on profit composition or profit resources in reporting period
Constitution of operation revenue



                                                                    10
          司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年半年
                                                                                                                                   In RMB

                                          Current period                           Same period last year
                                                                                                                       Increase/decrease
                                                   Ratio in operation                           Ratio in operation
                                     Amount                                    Amount                                     y-o-y (+,-)
                                                        revenue                                      revenue

  Total operation revenue       4,981,872.00                   100%           14,241,961.04                    100%             -65.02%

  According to industries

  Tourism catering service      4,089,491.05                 82.09%           12,671,008.66                88.97%               -67.73%

  Other business                  892,380.95                 17.91%            1,570,952.38                 11.03%              -43.19%

  According to products

  Room revenue                  3,471,155.97                 69.68%           11,108,639.78                78.00%               -68.75%

  Catering entertainment
                                  618,335.08                 12.41%            1,562,368.88                10.97%               -60.42%
  revenue

  Other business                  892,380.95                 17.91%            1,570,952.38                 11.03%              -43.19%

  According to region

  Hainan area                   4,981,872.00                                  14,241,961.04                100.00%              -65.02%


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


√Applicable     □ Not applicable
                                                                                                                                   In RMB

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

According to industries

Tourism catering
                          4,981,872.00        5,052,678.43        -1.42%             -65.02%                -8.37%              -62.70%
service

According to products

Customer service
                          3,471,155.97        4,410,744.89     -27.07%               -68.75%                -2.69%              -86.27%
  revenue

Catering
entertainment               618,335.08         404,671.76         34.55%             -60.42%               -45.64%              -17.80%
revenue

Rental revenue              892,380.95         237,261.78         73.41%             -43.19%                   0.00%            -11.49%

According to region

Hainan area               4,981,872.00        5,052,678.43        -1.42%             -65.02%                -8.37%              -62.70%

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

                                                                        11
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年半年
Explanation on relevant data has above 30% y-o-y changes
√Applicable    □ Not applicable
Affected by COVID-19, operation of the Company declined dramatically, operation revenue from the above mentioned products
have decreased significantly, and the operating gross profit margin has decreased sharply.


III. Analysis of the non-main business

□ Applicable   √Not applicable


IV. Analysis of Assets and liability

1. Major changes of assets composition

                                                                                                                                In RMB

                             Current period-end             Same period-end last year
                                                                                                Ratio
                                        Ratio in total                      Ratio in total                      Notes of major changes
                         Amount                             Amount                           changes(+,-)
                                           assets                              assets

                                                                                                               It is Mainly caused by
                                                                                                               obtaining bank loans, and
 Monetary fund        17,832,633.21            18.10%      7,422,939.89             8.48%         9.62%        paying the operating
                                                                                                               expenses and construction
                                                                                                               amount

 Account                                                                                                       The collection of account
                          95,154.01               0.10%     311,083.92              0.36%         -0.26%
 receivable                                                                                                    receivable

 Inventory               257,461.01               0.26%     254,257.19              0.29%         -0.03%       Normal changes

 Investment real                                                                                               Normal changes after
                       7,667,644.09               7.78%    7,909,956.87             9.04%         -1.26%
 estate                                                                                                        depreciation accrual

                                                                                                               Normal changes after
 Fix assets           33,463,950.05            33.97%     35,075,195.98           40.08%          -6.11%
                                                                                                               depreciation accrual

 Construction in                                                                                               Caused by the Hotel
                       4,074,092.55               4.14%     488,522.10              0.56%         3.58%
 progress                                                                                                      decoration

 Long-term                                                                                                     Caused by obtaining the
                      16,458,140.89            16.71%                                            16.71%
 borrowing                                                                                                     bank loans


2. Assets and liability measured by fair value

□ Applicable √ Not applicable


3. Assets right restriction till end of reporting period

Nil



                                                                  12
      司公限有份股心中游旅海东大南海                                 2020   文全告报度年半年
V. Investment

1. Overall situation

□ Applicable √ Not applicable


2. The major equity investment obtained in the reporting period

□ Applicable √ Not applicable


3. The major non-equity investment doing in the reporting period

□ Applicable √ Not applicable


4. Financial assets measured by fair value

□ Applicable √ Not applicable


5. Financial assets investment

(1) Securities investment

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


(2) Derivative investment

□ Applicable √ Not applicable
The Company has no derivatives investment in the Period


VI. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.


2. Sales of major equity

□ Applicable √ Not applicable


VII. Analysis of main holding company and stock-jointly companies

□ Applicable √ Not applicable



                                                                13
        司公限有份股心中游旅海东大南海                                                               2020   文全告报度年半年
The Company had no information of main holding company and stock-jointly companies disclosed in the reporting period.


VIII. Structured vehicle controlled by the Company

□ Applicable √ Not applicable


IX. Prediction of business performance from January – September 2020

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


X. Risks and countermeasures

(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 equipment 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) The risk of being affected by the novel coronavirus pneumonia epidemic
Since January this year, the global outbreak of the novel coronavirus pneumonia has caused severe damage to the
tourism and tourism service industries. At present, although the domestic epidemic is basically under control, the
foreign epidemic continues to spread globally, and the foreign tourist market is difficult to recover in the short
term.
Countermeasures: The company will strictly follow the virus prevention and control requirements to regulate
management, and increase the renovation and construction of hotel infrastructure, increase the expansion of the
domestic tourist market, and strive to improve business competitiveness after the epidemic.

(3) 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
buy property insurances, positively adopt effective prevention measures, and improve the ability of resisting
natural disasters.

(4) Risks of HR

Demand for talent in aspect of hotel sales and management are increasingly due to the constantly rise of hotel


                                                                14
     司公限有份股心中游旅海东大南海                                                     2020   文全告报度年半年
industry, flow of hotel talented people comes more widespread and more frequent; we may face the risks of
development restrained from brain drain.

Countermeasure: we will continue to improve the talent introduction, training system, incentive mechanism,
remuneration and welfare as well as insurance mechanism, strive to attract talent, cultivate them and retain them.
Meanwhile, strengthen staff quality and skills as well as the management ability, further putting more efforts in
enterprise culture construction, enhance the cohesion in the Company, and guarantee a stable of the core managers
and skill technicians.

(5) 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.

Countermeasure: made a scientific management and decision-making procedures, strengthen the awareness of risk
prevention, building and improving relevant mechanism and standardized the management in the Company.
Furthermore, increase the sales ability, on base of the former sales network, continues to exploit foreign high-end
tourism market under the superior geographical location and environment for improving the occupancy rate.
Besides, we continued to develop financing channels, expanding operation projects, enrich the industrial structure
for increasing the profit increasing point.




                                                        15
       司公限有份股心中游旅海东大南海                                                                           2020   文全告报度年半年

                                            Section V. Important Events

 I. In the report period, the Company held annual general meeting and extraordinary
 shareholders’ general meeting

 1. Annual General Meeting in the report period


   Session of                      Ratio of investor                         Date of
                     Type                                  Date                                             Index of disclosure
    meeting                          participation                          disclosure

                                                                                             The “Resolution Notice of Annual General
                  Annual                                                                     Meeting of 2019” (No.: 2020-018) published on
  AGM of
                  general                   20.78%     22 May 2020       23 May 2020         Securities Times, Hong Kong Commercial Daily
  2019
                  meeting                                                                    and Juchao website (http://www.cninfo.com.cn)
                                                                                             dated 23 May 2020 respectively


 2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

 □ Applicable    √ Not applicable


 II. Profit distribution and capitalization of capital reserves in the Period

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


 III. Commitments completed in Period and those without completed till end of the Period
 from actual controller, shareholders, related parties, purchaser and companies

 √Applicable    □ Not applicable

                                             Type
                                               of                                                                       Comm      Comm     Implem
      Commitments              Promise                                  Content of commitments                          itment    itment    entatio
                                            commit                                                                        date     term        n
                                             ments

                                                       On May 30, 2007, Luoniushan Co., Ltd. made                                          The

                                            Commi      commitments in the Company’s "Instructions for                                     original
                                            tments     reform     of   non-tradable      shares"   (Revision)   and                        plans of
                               Luonius      for                                                                                     6
Commitments for                                        "Instructions for reform of non-tradable shares"                 2017-0             materia
                               han Co.,     Share                                                                                 month
Share Merger Reform                                    (Abstract of revision) that in view of Dadonghai                 6-27               l assets
                               Ltd          Merger                                                                                  s
                                                       Company’s losses in successive years and on the verge                              reorgan
                                            Reform
                                                       of delisting, in order to reverse the company's business                            ization
                                                       difficulties, improve profitability and recover the                                 was


                                                                       16
         司公限有份股心中游旅海东大南海                                                                      2020   文全告报度年半年
                                                        continuous business capacity, Luoniushan Co., Ltd., the                          termina
                                                        controlling shareholder of Dadonghai Company made                                ted
                                                        commitments to actively seek restructuring parties to
                                                        reorganize the assets of Dadonghai Company at the
                                                        appropriate time.

Commitments in report of
acquisition      or     equity
change

Commitments       in     assets
reorganization

Commitments       make       in
initial public offering or
re-financing

Equity                incentive
commitment

Other commitments for
medium and small
shareholders

Completed on time (Y/N)           N
                                  The company’s stock has been suspended since the opening on February 15, 2017 due to the planning and
                                  fulfillment commitments of Luoniushan. On August 13, 2017, the consideration of the 11th interim meeting
                                  of the eighth board of directors of the company failed to approve the “Proposal on Major Asset Purchase and
                                  Related Transaction Report (Plan) of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.” and other 11
                                  proposals. On August 15, 2017, the company issued an announcement to terminate this major asset
                                  restructuring, and the company’s stock resumed trading on August 17th.

                                  On December 4, 2017, the board of directors and the board of supervisors of the company reviewed and
                                  approved the Proposal on the Change of Commitment Period of the First Majority Shareholder of the
                                  Company. Luoniushan Co., Ltd., the company’s first majority shareholder planned for a two-year extension
                                  for the time limit of the company’s restructuring commitment since December 27, 2017, that is, the deadline
If the commitments is not
                                  for the implementation of the restructuring commitment was changed to December 26, 2019. On December
fulfilled on time, shall
explain the specify reason        22, 2017, the company’s fourth extraordinary shareholders’ meeting in 2017 did not approve the proposal.

and the next work plan
                                  On January 31, 2018, the company received the Notice on Planning for Suspension of Major Events sent by
                                  Luoniushan Co., Ltd., the company’s largest shareholder, to plan and prepare the major issues related to the
                                  company. Upon application by the company, the company’s stock (stock short name: Dadonghai A,
                                  Dadonghai B, stock code: 000613, 200613) was suspended since the opening on January 31, 2018. Upon
                                  application by the company, the company’s stock resumed trading on February 8, 2018, and was transferred
                                  to the major asset restructuring since the opening on February 14, 2018.

                                  On June 25, 2018, the company held the third interim meeting of the ninth board of directors which reviewed
                                  and approved the Proposal on Terminating the Planning for Major Asset Restructuring. After careful study,
                                  the board of directors of the company decided to terminate the planning for this major asset restructuring.
                                  At present, the company has no information that should be disclosed but has not been disclosed


                                                                       17
        司公限有份股心中游旅海东大南海                                                                   2020    文全告报度年半年
IV. Engagement and non-reappointment of CPA

Whether the semi-annual report was audited or not
□Yes √ No
The semi-annual report of the Company had no audited.


V. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the
CPA

□ Applicable √ Not applicable


VI. Explanation on “Qualified Opinion” of previous year from the Board

□ Applicable √ Not applicable


VII. Bankruptcy reorganization

□ Applicable √ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.


VIII. Lawsuits

Significant lawsuits and arbitration of the Company
√Applicable      □ Not applicable

                                                        Whether                                       Execution
                                              Amount    to Form                        Litigation          of        Date
                                                                      Litigation
       Basic Situation of Litigation          Involve       an                       (Arbitration)    Litigation      of      Disclosure
                                                                    (Arbitration)
                (Arbitration)                   d       Estimate                     Trial Results    (Arbitratio    Discl      Index
                                                                         Progress
                                              (Yuan)        d                         and Impact           n)        osure
                                                        Liability                                     Judgment

Hainan Dadonghai Tourism Centre                                     The first        The                                     Announceme
                                                                    instance         company has                             nt on
Group Co., Ltd. borrowed 2.76 million
                                                                    decision         written off                             Significant
yuan and 4.55 million yuan from
                                                                    rejected the     the                                     Litigation
Hainan Dadonghai Tourism Centre
                                                                    claim of the     borrowings                              (Announcem
(Holdings) Co., Ltd. on October 16,                                                                   Judgment
                                                                    Company,         of the case in                          ent No.:
1996     and      December       26,   1996                                                           of first
                                                                    and the          full amount                             2019-017)
                                                                                                      instance       2019-
respectively.     The     two    borrowings      731    N           appeal           in 2008. At                             published by
                                                                                                      has not        06-04
totaled 7.31 million yuan and haven’t                              materials has    present, the                            Securities
                                                                                                      come into
been     repaid    yet.    The     company                          submitted to     company is                              Times, Hong
                                                                                                      effect
submitted a "Civil Complaint" and                                   the court        unable to                               Kong
                                                                    within the       judge the                               Commercial
related evidence materials to the Sanya
                                                                    appeal period.   impact of                               Daily and
Suburban People's Court (hereinafter
                                                                    At present, no   this lawsuit                            www.cninfo.
referred to as the "Court").
                                                                    acceptance       on the                                  com.cn.


                                                                    18
      司公限有份股心中游旅海东大南海                                                                           2020   文全告报度年半年
                                                                     notice has        company's
                                                                     been              current profit
                                                                     received.         or future
                                                                                       profit.
Other lawsuits
√Applicable     □ Not applicable

                                                                          Whether                                     Executio
                                                                                      Litigatio    Litigation
                                                                          to Form                                        n of      Date
                                                          Amount                            n      (Arbitratio                             Disclos
                                                                              an                                      Litigation    of
     Basic Situation of Litigation (Arbitration)          Involved                    (Arbitrat      n) Trial                               ure
                                                                          Estimate                                    (Arbitrati   Discl
                                                           (Yuan)                        ion)        Results                               Index
                                                                              d                                          on)       osure
                                                                                      Progress     and Impact
                                                                          Liability                                   Judgment

On May 31, 2018, the Sanya Local Taxation Bureau
Social Security Fee Collection and Administration
Bureau issued a notice of payment deadline for
social insurance premiums to the company's South
China Hotel, ordering the company's South China
Hotel to pay the unpaid social insurance premiums
and late payment fees and interest from January 1,
2012 to December 31, 2012 of totaling 286,200.36
                                                                                      Judgmen
yuan. On May 17, 2018, the Sanya Local Taxation                                                                       Entered
                                                                                      t of fist    The first
Bureau deducted the money from the deposit of the                                                                       the
                                                                                      instance     trial upheld
company's South China Hotel. According to the                                                                           enforce
                                                          28.62           N           has          the
agreement of the "Responsibility Letter of the Target                                                                   ment
                                                                                      come         company’s
Management of South China Hotel" signed by South                                                                        proced
                                                                                      into         claim
China Hotel and Sun Hongjie, Sun Hongjie should                                                                         ure
                                                                                      effect
be responsible for the social insurance premium
incurred from May 1, 2011 to April 30, 2016. The
unpaid social insurance premium occurred during
Sun Hongjie    ’   s target management responsibility,
and Sun Hongjie should undertake the payment. So
far, Sun Hongjie has not repaid the advance payment
to the company's South China Hotel. To this end, the
company's South China Hotel appealed to the court.


IX. Media questioned

□Applicable        √Not applicable
During the reporting period, the company had no questions from the media


X. Penalty and rectification

□ Applicable √ Not applicable
The Company has no penalty and rectification in the Period




                                                                     19
        司公限有份股心中游旅海东大南海                                                                          2020   文全告报度年半年
XI. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable


XII. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives

□ Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives
that have not been implemented.


XIII. Major related transaction

1. Related transaction with routine operation concerned

√Applicable □Not applicable

                                           Whet                                                                                             Wheth
            Relat                 Tradi                                                                                            Tradi
              ed                            her                                                                                               er
                                    ng                                                                                              ng
            trans                           over               Availa                                                                       over
                                                     Cleari
            actio    Propo        limit                                                                  Related                   limit
                                            the        ng       ble          Date     Index                                                  the
              n       rtion                                                                     Relate   transact      Proporti
 Related                          appro               form                                                                         appro
            amo         in                 appro               simila         of       of          d        ion          on in              appro
 transact                                              for
             unt     simila        ved                                                          transa   amount         similar     ved
    ion                                     ved      relate       r          disclo   disclo                                                 ved
             (in         r                                                                       ction    (in 10       transacti
   price                          (in 10                d                                                                          (in 10
              10     transa                limite              marke         sure     sure       price   thousan          ons               limite
                                                     transa
            thou     ctions       thousa                                                                 d Yuan)                   thous
                                            d or      ction    t price                                                                       d or
            sand
                                    nd                                                                                              and
            Yuan                            not                                                                                              not
               )                  Yuan)                                                                                            Yuan)
                                           (Y/N)                                                                                            (Y/N)
                                                                                                         Same as
            First                                                                                                      Same as
                                                                                                         the
 Luoniu     majo                                                                                                       the
                     Consu        Acco                                                                   transact
 shan       rity                           Marke     Marke                                                             transacti
                     mptio        mmod                           0.29        0.06%          0   N        ion with
 Co.,       share                          t price   t price                                                           on with
                     n            ation                                                                  non-rela
 Ltd.       hold                                                                                                       non-relat
                                                                                                         ted
            er                                                                                                         ed party
                                                                                                         party
 Total                                       --        --        0.29          --           0       --         --            --      --       --
 Detail of sales return with major
                                           N/A
 amount involved
 Report the actual implementation
 of the daily related transactions
 which were projected about their          N/A
 total amount by types during the
 reporting period
 Reasons for major differences
 between trading price and market          Not applicable
 reference price


                                                                        20
      司公限有份股心中游旅海东大南海                                                             2020   文全告报度年半年
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. 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
No contact of related credit or debt for the Company in the reporting period


5. Other material related transactions

□Applicable      √Not applicable
The Company has no other material related transactions in the period


XIV. Non-business capital occupying by controlling shareholders and its related parties

□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period


XV. Major contract and implantation

1. Trusteeship, contract and leasing

(1) Trusteeship

□ Applicable √ Not applicable
The Company had no trusteeship in the reporting period.


(2) Contract

□ Applicable √ Not applicable
The Company had no contract in the reporting period.


(3) Leasing

√Applicable    □ Not applicable
Note of leasing



                                                                  21
       司公限有份股心中游旅海东大南海                                                                           2020    文全告报度年半年
Item                                                               Tenant                       Lease life               Term of lease

 1/F catering of B-building of the Hotel    Ma Ming (Hainan Hangpai Food Co., Ltd.)              5 years        2016-01-01 to 2020-05-30

Shopping mall –B/F                                           Li Fuming                          3 years        2019-11-01 to 2022-10-31
ground floor of Hotel A                                       Li Fuming                          3 years        2019-02-28 to 2022-02-27
Seaside stall and wood house                 Sanya Leda Food Management Co., Ltd.                5 years        2018-01-01 to 2022-12-31

Seaside locker room                                         Zhong Zhengao                        3 years        2016-12-01 to 2019-11-30

Multi-functional meeting room                                 Li Fuming                          5 years        2019-11-01 to 2024-10-31



Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
√Applicable    □ Not applicable

                                           Leasing
                                                                                 Leasing        Basis
                                            assets                                                           The impact      Whethe      Asso
                                                                        Lease    income          for
                Name of                  involved in       Lease                                             of leasing          r be    ciatio
 Name of                     Leasing                                   termina   (in 10     determi
               the leasing               the amount        start                                             income on       related       n
  lessor                      assets                                    tion     thousan    ning the
                 party                      (in 10         date                                                  the         transact    relati
                                                                        date       d        leasing
                                           thousand                                                           company            ions     on
                                                                                 Yuan)      income
                                            Yuan)
               Sanya
                             Seaside
The            Leda Food                                                                    Contrac
                             stall and                    2018-01     2022-1                                 Increase
               Managem                          653                                 145                                      N           N/A
Company                      wood                         -01         2-31                  t                income
               ent Co.,
                             house
               Ltd.
The                          Seaside                                                        Contrac
               Zhong                                      2016-12     2019-11                                Increase
                             locker                  10                                36                                    N           N/A
Company        Zhengao                                    -01         -30                   t                income
                             room
                             Multi-fu
The                          nctional                     2019-11     2024-1                Contrac          Increase
               Li Fuming                        190                                    30                                    N           N/A
Company                      meeting                      -01         0-31                  t                income
                             room


2. Major Guarantee

□Applicable √ Not applicable
The Company had no guarantee in the reporting period.


3.Trust management

□Applicable √ Not applicable
The Company had no trust management in the reporting period.


4. Other material contracts

√Applicable    □ Not applicable




                                                                      22
           司公限有份股心中游旅海东大南海                                                              2020    文全告报度年半年
                                                                                                                 W
                                                                                                                 he
                                                                                                                                         I
                                                                                                                 th                 D
                                                                                                                       R                 n
                                                   The                                                           er                 at
                                                               The                                                     el                d
                                                  book                                                            R         The     e
                                                             assessed                                                  ev                e
                                                 value of                                              Trans      el        perfo   o
                                                             value of                                                  an                x
The name                                           the                    Name of      The             action     at        rman    f
                The name      Contr                          the assets                        Prici                   ce                o
     of the                           Date of     assets                  evaluatio    base            price     ed         ce by   d
                  of the       act                           involved                           ng                     re                f
contracti                             contract   involved                     n        date            (in 10    Tr          the    is
               contracted     objec                            in the                          Princ                   la                di
      ng                              signing     in the                  institutio   evalu           thous     an         end     cl
                company         t                            contract(i                        iple                    ti                s
company                                          contract(                    n        ation            and      sa          of     o
                                                               n 10                                                    o                 cl
                                                  in 10                                                yuan)     cti         the    s
                                                             thousand                                                  ns                o
                                                 thousan                                                         on         term    u
                                                               yuan)                                                   hi                s
                                                 d yuan)                                                          s                 r
                                                                                                                       p                 u
                                                                                                                 or                 e
                                                                                                                                         re
                                                                                                                 no
                                                                                                                  t
                                                                                                                            Obtai
                                                                          Hainan
                                                                                                                            ning
                              20                                          Huazhi
               Haikou                                                                                                       19.7
                              milli                                       Land                 Mar                     N
The            Branch of              2020-04                                                                               9
                              on                      481        4,796    Real                 ket     2,000     N     /
Company        Industrial             -10                                                                                   milli
                              yuan                                        Estate               price                   A
               Bank                                                                                                         on
                              loans                                       Appraisal
                                                                                                                            yuan
                                                                          Co., Ltd.
                                                                                                                            loans
Hainan                        Deco
                              ratio                                                                                         60%
Dadongh
                              n                                                                                               of
ai                            proje                                                                                           the
               HaikouXin      ct of                                                                                           co
Tourism        decheng        the                                                                                             nst
Centre         Constructio                                                                     Mar                     N
                              Build   2020-03                                                                                 ru
               n and                                                      N/A                  ket     1,200     N     /
(Holding                      ing-B   -25                                                                                     cti
               Installation                                                                    price                   A
               Engineerin     of                                                                                              on
s) Co.,                       Sout                                                                                            pr
               g Co., Ltd.
Ltd South                     h                                                                                               og
                              Chin                                                                                            res
China
                              a                                                                                               s
Hotel                         Hotel


 XVI. Social responsibility

 1. Major environmental protection

 Listed company and its subsidiary belong to the key pollution enterprise listed by Department of Environmental Protection: No
 Nil




                                                                    23
      司公限有份股心中游旅海东大南海                                                            2020   文全告报度年半年
2. Execution of social responsibility of targeted poverty alleviation:

Nil


XVII. Explanation on other significant events
√Applicable □ Not applicable
The Lawyer’s Letter received by the Company: by preliminary accounting from Sanya Power Bureau, the 10313373 Kwh electricity
was understated under the name of South China Hotel from July 2006 to April 2016. The Company is communicated and negotiates
with Sanya Power Bureau in the above mentioned event without negotiation results so far.


XVIII. Significant event of subsidiary of the Company

□Applicable √ Not applicable




                                                                24
         司公限有份股心中游旅海东大南海                                                            2020   文全告报度年半年

     Section VI. Particulars about Changes in Shares and Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

                                                                                                                     In Share

                                  Before the Change       Increase/Decrease in the Change (+, -)      After the Change

                                                         New            Capitali
                                                                 Bon
                                                         share           zation
                                              Proporti           us                Othe    Subto
                                  Amount                   s               of                      Amount         Proportion
                                                on               shar               rs       tal
                                                         issue           public
                                                                 es
                                                          d             reserve

I. Restricted shares             10,223,400     2.81%                                               10,223,400           2.81%


1. State-owned shares

2. State-owned corporate
                                  1,399,200     0.38%                                                1,399,200           0.38%
shares

                                  8,824,200     2.42%                                                8,824,200           2.42%
3. Other domestic shares
Including: Domestic legal
                                  8,824,200     2.42%                                                8,824,200           2.42%
person shares

II. Unrestricted shares         353,876,600    97.19%                                              353,876,600       97.19%

                                265,876,600    73.02%                                              265,876,600       73.02%
1. RMB common shares

2.Domestically         listed
                                 88,000,000    24.17%                                               88,000,000       24.17%
foreign shares
III. Total shares               364,100,000   100.00%                                              364,100,000      100.00%

Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Implementation progress of the share repurchases
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable


                                                                 25
      司公限有份股心中游旅海东大南海                                                                            2020   文全告报度年半年
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable


2. Changes of restricted shares

√Applicable □ Not applicable
                                                                                                                                     In Share
                                            Number of                       Number
                                                          Number
                                               shares                       of new      Number of
                                                          of shares
                                             restricted                      shares        shares         Restriction
        Shareholders’ name                               released                                                              Released date
                                                 at                        restricted   restricted at      reasons
                                                           in the
                                            Period-beg                       in the     Period-end
                                                            Year
                                                 in                           Year
                                                                                                        Legal
Shenyang       Jin’an         Industrial                                                                                  After remove restricted
                                               831,600            0                 0       831,600     commitment in
Corporation                                                                                                                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
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
                                                                                                        Legal
Southern Industrial      and     Trading                                                                                   After remove restricted
                                               660,000            0                 0       660,000     commitment in
Corporation                                                                                                                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 Company of Hainan                                                                                                After remove restricted
                                               660,000            0                 0       660,000     commitment in
International Investment Co., Ltd.                                                                                         procedures complete
                                                                                                        share reform
                                                                                                        Legal
                                                                                                                           After remove restricted
Hainan Dadonghai Tourism Co.                   739,200            0                 0       739,200     commitment in
                                                                                                                           procedures complete
                                                                                                        share reform
                                                                                                        Legal
Haikou Dongfang          Urban     credit                                                                                  After remove restricted
                                               924,000            0                 0       924,000     commitment in
Cooperative                                                                                                                procedures complete
                                                                                                        share reform
Guangzhou Dongzhan Industrial Co.
                                               924,000            0                 0       924,000     Legal              After remove restricted
LTD

                                                                      26
            司公限有份股心中游旅海东大南海                                                                             2020   文全告报度年半年
                                                                                                              commitment in           procedures complete
                                                                                                              share reform
   Special account for disposition of
                                                                                                              Legal
   bankrupt enterprise property- Hong                                                                                                 After remove restricted
                                                  924,000               0               0          924,000    commitment in
   Kong-Macao International Hainan                                                                                                    procedures complete
                                                                                                              share reform
   Investment Co., Ltd.
                                                                                                              Legal
   Yangpu Tongrong Investment                                                                                                         After remove restricted
                                                    79,200              0               0           79,200    commitment in
   Management Consulting Co., Ltd.                                                                                                    procedures complete
                                                                                                              share reform
   Total                                       10,223,400               0               0        10,223,400            --                          --


    II. Securities issuance and listing

    □ Applicable √ Not applicable




    III. Amount of shareholders of the Company and particulars about shares holding

                                                                                                                                              In Share

Total common stock shareholders                                              Total preference shareholders with voting
                                                               42,990                                                                                             0
in reporting period-end                                                      rights recovered at end of reporting period
                          Particulars about common shares held above 5% by shareholders or top ten common shareholders
                                                                                                                                              Number of share
                                                                            Number of
                                                                                             Change                         Amount of         pledged/frozen
                                                             Proporti        common                      Amount of
                                          Nature of            on of                             s in                       un-restricte    State
   Full name of Shareholders                                                shares held                   restricted
                                         shareholder          shares                         report                          d shares         of
                                                               held                at                    shares held                                     Amount
                                                                                             period                            held          shar
                                                                            period-end
                                                                                                                                              e

                                      Domestic non
                                                                                                                                            Pled
Luoniushan Co., Ltd.                  state-owned            17.55%          63,885,980      0                     0        63,885,980                  44,720,186
                                                                                                                                            ged
                                      corporate

                                      Domestic nature
Yang Meiqin                                                    4.47%         16,279,028      0                     0        16,279,028
                                      person
                                      Domestic nature
Pan Anjie                                                      4.01%         14,593,598      0                     0        14,593,598
                                      person
                                      Domestic non
Hainan Ya an Residence
            ’                        state-owned              2.25%          8,205,800      0                     0         8,205,800
Property Service Co., Ltd.
                                      corporate
                                      Domestic nature
Chen Jinlian                                                   2.13%          7,766,400      0                     0         7,766,400
                                      person
                                      Domestic nature
Pan Aiping                                                     1.13%             4,110,738   0                     0          4,110,738
                                      person
China Investment Securities           Foreign corporate        0.99%          3,622,300      0                     0         3,622,300

                                                                            27
            司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年半年
(HK) Co., Ld.      customer         –
deposit
Shenwan Hongyuan Securities
                                     Foreign corporate      0.84%       3,056,390    0                     0      3,056,390
(Hong Kong) Co., Ltd.
                                     Domestic nature
Zhang Fengxiu                                               0.84%       3,041,372    0                     0      3,041,372
                                     person
                                     Domestic nature
Sun Huiming                                                 0.79%       2,888,690    0                     0      2,888,690
                                     person

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

                                                          Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is
                                                          the wholly-owned subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen
Explanation on associated relationship or accordant       Jinlian and Pan Aiping are the persons acting in concert; the Company is unknown
action among the aforesaid shareholders                   whether there exists associated relationship or belongs to the consistent actor regulated
                                                          by the Management Measure of Information Disclosure on Change of Shareholding
                                                          for Listed Company among the other shareholders.

                                    Particular about top ten shareholders with un-restrict common shares held

                                                          Amount of un-restrict common shares                          Type of shares
                   Shareholders’ name
                                                                    held at Period-end                         Type                     Amount
Luoniushan Co., Ltd.                                                                 63,885,980      RMB common share                    63,885,980
                                                                                                     Domestically listed
Yang Meiqin                                                                          16,279,028                                          16,279,028
                                                                                                     foreign share
                                                                                                     Domestically listed
Pan Anjie                                                                            14,593,598                                          14,593,598
                                                                                                     foreign share
Hainan Ya an Residence Property Service Co., Ltd.
            ’                                                                           8,205,800   RMB common share                     8,205,800
                                                                                                     Domestically listed
Chen Jinlian                                                                             7,766,400                                        7,766,400
                                                                                                     foreign share
                                                                                                     Domestically listed
Pan Aiping                                                                               4,110,738                                        4,110,738
                                                                                                     foreign share
China Investment Securities (HK) Co., Ld.     –                                         3,622,300   RMB common share                     3,622,300
customer deposit
                                                                                                     Domestically listed
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd.                                        3,056,390                                        3,056,390
                                                                                                     foreign share
Zhang Fengxiu                                                                            3,041,372   RMB common share                     3,041,372
                                                                                                     Domestically listed
Sun Huiming                                                                              2,888,690                                        2,888,690
                                                                                                     foreign share

                                                          Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is
Expiation on associated relationship or consistent
                                                          the wholly-owned subsidiary of Luoniushan Co., Ltd. Yang Meiqin, Pan Anjie, Chen
actors within the top 10 un-restrict common stock
                                                          Jinlian and Pan Aiping are the persons acting in concert; the Company is unknown
shareholders and between top 10 un-restrict common
                                                          whether there exists associated relationship or belongs to the consistent actor regulated
stock shareholders and top 10 common stock
                                                          by the Management Measure of Information Disclosure on Change of Shareholding
shareholders
                                                          for Listed Company among the other shareholders.


                                                                     28
           司公限有份股心中游旅海东大南海                                                            2020   文全告报度年半年
Explanation on shareholders involving margin business
about top ten common stock shareholders with              N/A
un-restrict shares held

    Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
    agreement dealing in reporting period
    □ Yes √ No
    The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
    buy-back agreement dealing in reporting period.


    IV. Changes of controlling shareholders or actual controller

    Changes of controlling shareholders in reporting period
    □ Applicable √ Not applicable
    Changes of controlling shareholders had no change in reporting period.
    Changes of actual controller in reporting period
    □ Applicable √ Not applicable
    Changes of actual controller in reporting period had no change in reporting period.




                                                                     29
      司公限有份股心中游旅海东大南海                                 2020   文全告报度年半年

                                      Section VII. Preferred Stock

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




                                                    30
      司公限有份股心中游旅海东大南海                                 2020   文全告报度年半年

                                    Section VIII Convertible Bonds

□ Applicable   √ Not applicable
The Company had no convertible bonds in the Period




                                                     31
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年半年

       Section IX. Particulars about Directors, Supervisors and Senior

                                                        Executives

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

□ Applicable √ Not applicable
No change of shares held by directors, supervisors and senior executives, found more details in Annual Report 2019.


II. Changes of directors, supervisors and senior executives

□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2019.




                                                                32
      司公限有份股心中游旅海东大南海                                                               2020   文全告报度年半年

                                          Section X. Corporate Bond

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No




                                                                   33
      司公限有份股心中游旅海东大南海                                                2020   文全告报度年半年

                                          Section XI. Financial Report

I. Audit report

Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited.


II. Financial Statement

Expressed in Renminbi unless otherwise stated


1. Balance sheet

Prepared by HAINAN DADONGHAI Tourism Centre (HOLDINGS) CO., LTD.
                                                           2020-06-30
                                                                                                        In RMB

                                          Item                          2020-6-30              2019-12-31

 Current assets:

      Monetary funds                                                      17,832,633.21           7,422,939.89

      Settlement provisions

      Capital lent

      Tradable financial assets

      Derivative financial assets

      Note receivable

      Account receivable                                                     95,154.01             311,083.92

      Receivable financing

      Accounts paid in advance

      Insurance receivable

      Reinsurance receivables

      Contract reserve of reinsurance receivable

      Other account receivable                                              385,492.93             571,744.52

         Including: Interest receivable

                   Dividend receivable

      Buying back the sale of financial assets

      Inventories                                                           257,461.01             254,257.19


                                                                   34
     司公限有份股心中游旅海东大南海                         2020   文全告报度年半年
      Contractual assets

     Assets held for sale

     Non-current asset due within one year

     Other current assets                          2,951,509.69           2,574,442.57

Total current assets                              21,522,250.85          11,134,468.09

Non-current assets:

     Loans and payments on behalf

     Debt investment

     Other debt investment

     Long-term account receivable

     Long-term equity investment

     Investment in other equity instrument

     Other non-current financial assets

     Investment real estate                        7,667,644.09           7,909,956.87

     Fixed assets                                 33,463,950.05          35,075,195.98

     Construction in progress                      4,074,092.55            488,522.10

     Productive biological asset

     Oil and gas asset

      Right-of-use assets

     Intangible assets                            20,991,719.30          21,392,861.88

     Expense on Research and Development

     Goodwill

     Long-term expenses to be apportioned         10,797,114.62          11,520,179.33

     Deferred income tax asset

     Other non-current asset

Total non-current asset                           76,994,520.61          76,386,716.16

Total assets                                      98,516,771.46          87,521,184.25

Current liabilities:

     Short-term loans

     Loan from central bank

     Capital borrowed

     Trading financial liability

     Derivative financial liability
     Note payable


                                             35
     司公限有份股心中游旅海东大南海                               2020   文全告报度年半年
     Account payable                                      382,803.65            1,250,409.75

     Accounts received in advance                         791,258.55             786,715.42

       Contractual liability

     Selling financial asset of repurchase

     Absorbing deposit and interbank deposit

     Security trading of agency

     Security sales of agency

     Wage payable                                        1,835,302.47           2,552,996.37

     Taxes payable                                        334,957.93             307,257.85

     Other account payable                               2,011,273.02           2,647,515.86

        Including: Interest payable

                    Dividend payable

     Commission charge and commission payable

     Reinsurance payable

     Liability held for sale

     Non-current liabilities due within one year         3,358,196.37

     Other current liabilities

Total current liabilities                                8,713,791.99           7,544,895.25

Non-current liabilities:

     Insurance contract reserve

     Long-term loans                                    16,458,140.89

     Bonds payable

        Including: Preferred stock

                    Perpetual capital securities

       Lease liability

     Long-term account payable

     Long-term wages payable

     Accrual liability                                   1,489,685.04           1,489,685.04

     Deferred income

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                           17,947,825.93           1,489,685.04

Total liabilities                                       26,661,617.92           9,034,580.29

Owner’s equity:




                                                   36
      司公限有份股心中游旅海东大南海                                      2020   文全告报度年半年
      Share capital                                            364,100,000.00         364,100,000.00

      Other equity instrument

         Including: Preferred stock

                      Perpetual capital securities

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

      Less: Inventory shares

      Other comprehensive income

      Reasonable reserve

      Surplus public reserve

      Provision of general risk

      Retained profit                                         -346,387,696.47        -339,756,246.05

 Total owner’ s equity attributable to parent company          71,855,153.54          78,486,603.96

      Minority interests

 Total owner’ s equity                                         71,855,153.54          78,486,603.96

 Total liabilities and owner’ s equity                         98,516,771.46          87,521,184.25

Legal Representative: Yuan Xiaoping
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren


2. Balance sheet of parent company

                                                                                              In RMB

                                          Item                2020-6-30              2019-12-31

 Current assets:

      Monetary funds                                           17,831,539.29            7,421,452.59

      Trading financial assets

      Derivative financial assets

      Note receivable

      Account receivable                                           95,154.01             311,083.92

      Receivable financing

      Accounts paid in advance

      Other account receivable                                    385,492.93             571,744.52

         Including: Interest receivable

                      Dividend receivable

      Inventories                                                 257,461.01             254,257.19



                                                         37
     司公限有份股心中游旅海东大南海                               2020   文全告报度年半年
     Contractual assets

     Assets held for sale

     Non-current assets maturing within one year

     Other current assets                                2,951,509.69           2,574,442.57

Total current assets                                    21,521,156.93          11,132,980.79

Non-current assets:

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term equity investments                        1,000,000.00           1,000,000.00

     Investment in other equity instrument

     Other non-current financial assets

     Investment real estate                              7,667,644.09           7,909,956.87

     Fixed assets                                       33,463,950.05          35,075,195.98

     Construction in progress                            4,074,092.55            488,522.10

     Productive biological assets

     Oil and natural gas assets

     Right-of-use assets

      Intangible assets                                 20,991,719.30          21,392,861.88

     Research and development costs

     Goodwill

     Long-term deferred expenses                        10,797,114.62          11,520,179.33

     Deferred income tax assets

     Other non-current assets

Total non-current assets                                77,994,520.61          77,386,716.16

Total assets                                            99,515,677.54          88,519,696.95

Current liabilities

     Short-term borrowings

     Trading financial liability

     Derivative financial liability

     Notes payable
     Account payable                                      382,803.65            1,250,409.75

     Accounts received in advance                         791,258.55             786,715.42

     Contractual liability



                                                   38
     司公限有份股心中游旅海东大南海                                 2020   文全告报度年半年
     Wage payable                                          1,835,302.47           2,552,996.37

     Taxes payable                                          334,957.93             307,210.05

     Other accounts payable                                2,011,273.02           2,647,515.86

        Including: Interest payable

                Dividend payable

     Liability held for sale

     Non-current liabilities due within one year           3,358,196.37

     Other current liabilities                              999,468.70             999,468.70

Total current liabilities                                  9,713,260.69           8,544,316.15

Non-current liabilities:

     Long-term loans                                     16,458,140.89

     Bonds payable

        Including: preferred stock

                Perpetual capital securities

     Lease liability

     Long-term account payable

     Long term employee compensation payable

     Accrued liabilities                                   1,489,685.04           1,489,685.04

     Deferred income

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                            17,947,825.93            1,489,685.04

Total liabilities                                        27,661,086.62           10,034,001.19

Owners’ equity:

     Share capital                                      364,100,000.00          364,100,000.00

     Other equity instrument

        Including: preferred stock

                Perpetual capital securities

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

     Less: Inventory shares

     Other comprehensive income

     Special reserve

     Surplus reserve

     Retained profit                                    -346,388,259.09        -339,757,154.25


                                                   39
      司公限有份股心中游旅海东大南海                                                        2020   文全告报度年半年
 Total owner’s equity                                                            71,854,590.92          78,485,695.76

 Total liabilities and owner’s equity                                            99,515,677.54          88,519,696.95


3. Consolidated Profit Statement

                                                                                                                In RMB

                                         Item                                2020 semi-annual       2019 semi-annual

 I. Total operating income                                                         4,981,872.00          14,241,961.04

      Including: Operating income                                                  4,981,872.00          14,241,961.04

              Interest income

              Insurance gained

              Commission charge and commission income

 II. Total operating cost                                                         11,529,626.87          13,646,017.49

      Including: Operating cost                                                    5,052,678.43           5,514,477.93

              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

              Tax and extras                                                        182,132.20             383,479.50

              Sales expense                                                        2,095,194.24           2,809,991.94

              Administrative expense                                               4,200,935.35           5,071,800.21

              R&D expense

              Financial expense                                                       -1,313.35            -133,732.09

                Including: Interest expenses                                          76,128.55

                             Interest income                                          89,077.69            152,697.12

      Add: other income                                                             262,840.35

           Investment income (Loss is listed with “-”)

           Including: Investment income on affiliated company and joint
 venture

                The termination of income recognition for financial assets
 measured by amortized cost(Loss is listed with “-”)

           Exchange income (Loss is listed with “-”)



                                                                 40
     司公限有份股心中游旅海东大南海                                                        2020   文全告报度年半年
           Net exposure hedging income (Loss is listed with “-”)

           Income from change of fair value (Loss is listed with “-”)

           Loss of credit impairment (Loss is listed with “-”)
           Losses of devaluation of asset (Loss is listed with “-”)

           Income from assets disposal (Loss is listed with “-”)

III. Operating profit (Loss is listed with “-”)                                -6,284,914.52            595,943.55

     Add: Non-operating income                                                       2,593.62             160,030.46

     Less: Non-operating expense                                                   349,129.52

IV. Total profit (Loss is listed with “-”)                                     -6,631,450.42            755,974.01

     Less: Income tax expense

V. Net profit (Net loss is listed with “-”)                                    -6,631,450.42            755,974.01

  (i) Classify by business continuity

     1.continuous operating net profit (net loss listed with ‘-”)              -6,631,450.42            755,974.01

     2.termination of net profit (net loss listed with ‘-”)

  (ii) Classify by ownership

     1.Net profit attributable to owner’s of parent company                     -6,631,450.42            755,974.01

     2.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 of the defined benefit plans that re-measured

              2.Other comprehensive income under equity method that cannot
be transfer to gain/loss

              3.Change of fair value of investment in other equity instrument

              4.Fair value change of enterprise's credit risk

              5. Other

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

              1.Other comprehensive income under equity method that can
transfer to gain/loss

              2.Change of fair value of other debt investment

              3.Amount of financial assets re-classify to other comprehensive
income

              4.Credit impairment provision for other debt investment


                                                                        41
      司公限有份股心中游旅海东大南海                                                            2020   文全告报度年半年
             5.Cash flow hedging reserve

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

             7.Other

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

 VII. Total comprehensive income                                                      -6,631,450.42            755,974.01

        Total comprehensive income attributable to owners of parent Company           -6,631,450.42            755,974.01

      Total comprehensive income attributable to minority shareholders

 VIII. Earnings per share:

       (i) Basic earnings per share                                                         -0.0182                0.0021

      (ii) Diluted earnings per share                                                       -0.0182                0.0021

Legal Representative: Yuan Xiaoping
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren


4. Profit statement of parent Company

                                                                                                                    In RMB

                                          Item                                      2020 semi-annual     2019 semi-annual

 I. Operating income                                                                      4,981,872.00       14,241,961.04

      Less: Operating cost                                                                5,052,678.43        5,514,477.93

           Taxes and surcharge                                                             182,132.20          383,479.50

           Sales expenses                                                                 2,095,194.24        2,809,991.94

           Administration expenses                                                        4,200,735.35        5,071,800.21

           R&D expenses

           Financial expenses                                                                -1,458.93         -133,233.30

                Including: interest expenses                                                 76,128.55

                        Interest income                                                      89,063.27         151,938.33

      Add: other income                                                                    262,840.35

           Investment income (Loss is listed with “-”)

           Including: Investment income on affiliated Company and joint venture

                The termination of income recognition for financial assets
 measured by amortized cost (Loss is listed with “-”)

           Net exposure hedging income (Loss is listed with “-”)

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


                                                                     42
     司公限有份股心中游旅海东大南海                                                          2020   文全告报度年半年
           Loss of credit impairment (Loss is listed with “-”)
           Losses of devaluation of asset (Loss is listed with “-”)

           Income on disposal of assets (Loss is listed with “-”)

II. Operating profit (Loss is listed with “-”)                                      -6,284,568.94         595,444.76

     Add: Non-operating income                                                            2,593.62          160,030.46

     Less: Non-operating expense                                                        349,129.52

III. Total Profit (Loss is listed with “-”)                                         -6,631,104.84         755,475.22

     Less: Income tax

IV. Net profit (Net loss is listed with “-”)                                        -6,631,104.84         755,475.22

     (i)continuous operating net profit (net loss listed with ‘-”)                  -6,631,104.84         755,475.22

     (ii) termination of net profit (net loss listed with ‘-”)

V. Net after-tax of other comprehensive income

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

               1.Changes of the defined benefit plans that re-measured

               2.Other comprehensive income under equity method that cannot be
transfer to gain/loss

               3.Change of fair value of investment in other equity instrument

               4.Fair value change of enterprise's credit risk

               5. Other

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

               1.Other comprehensive income under equity method that can transfer
to gain/loss

               2.Change of fair value of other debt investment

               3.Amount of financial assets re-classify to other comprehensive
income

               4.Credit impairment provision for other debt investment

               5.Cash flow hedging reserve

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

               7.Other

VI. Total comprehensive income                                                        -6,631,104.84         755,475.22

VII. Earnings per share:

       (i) Basic earnings per share                                                        -0.0182              0.0021

     (ii) Diluted earnings per share                                                       -0.0182              0.0021


                                                                        43
      司公限有份股心中游旅海东大南海                                                            2020   文全告报度年半年
5. Consolidated Cash Flow Statement

                                                                                                                     In RMB

                                       Item                                      2020 semi-annual        2019 semi-annual

 I. Cash flows arising from operating activities:

      Cash received from selling commodities and providing labor services              5,200,787.10          14,988,120.25

      Net increase of customer deposit and interbank deposit

       Net increase of loan from central bank

      Net increase of capital borrowed from other financial institution

      Cash received from original insurance contract fee

      Net cash received from reinsurance business

      Net increase of insured savings and investment

      Cash received from interest, commission charge and commission

      Net increase of capital borrowed

      Net increase of returned business capital

      Net cash received by agents in sale and purchase of securities

      Write-back of tax received                                                          12,691.70

      Other cash received concerning operating activities                                501,830.36           1,105,441.88

 Subtotal of cash inflow arising from operating activities                             5,715,309.16          16,093,562.13

      Cash paid for purchasing commodities and receiving labor service                 2,862,000.80           4,468,726.47

      Net increase of customer loans and advances

      Net increase of deposits in central bank and interbank

      Cash paid for original insurance contract compensation

      Net increase of capital lent

      Cash paid for interest, commission charge and commission

       Cash paid for bonus of guarantee slip

      Cash paid to/for staff and workers                                               5,523,279.64           6,921,639.62

      Taxes paid                                                                         311,265.46           1,139,283.59

      Other cash paid concerning operating activities                                  1,807,954.18           2,294,495.80

 Subtotal of cash outflow arising from operating activities                           10,504,500.08          14,824,145.48

 Net cash flows arising from operating activities                                      -4,789,190.92          1,269,416.65

 II. Cash flows arising from investing activities:

      Cash received from recovering investment

      Cash received from investment income

      Net cash received from disposal of fixed, intangible and other long-term               300.00              68,670.00

                                                                  44
      司公限有份股心中游旅海东大南海                                                            2020   文全告报度年半年
 assets

      Net cash received from disposal of subsidiaries and other units

      Other cash received concerning investing activities

 Subtotal of cash inflow from investing activities                                           300.00             68,670.00

      Cash paid for purchasing fixed, intangible and other long-term assets             4,541,624.47           591,546.00

      Cash paid for investment

      Net increase of mortgaged loans

      Net cash received from subsidiaries and other units obtained

      Other cash paid concerning investing activities

 Subtotal of cash outflow from investing activities                                     4,541,624.47           591,546.00

 Net cash flows arising from investing activities                                      -4,541,324.47           -522,876.00

 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                                                         19,791,474.22

      Other cash received concerning financing activities

 Subtotal of cash inflow from financing activities                                     19,791,474.22

      Cash paid for settling debts

      Cash paid for dividend and profit distributing or interest paying                    51,265.51

      Including: Dividend and profit of minority shareholder paid by
 subsidiaries

      Other cash paid concerning financing activities

 Subtotal of cash outflow from financing activities                                        51,265.51

 Net cash flows arising from financing activities                                      19,740,208.71

 IV. Influence on cash and cash equivalents due to fluctuation in exchange rate

 V. Net increase of cash and cash equivalents                                          10,409,693.32           746,540.65

      Add: Balance of cash and cash equivalents at the period -begin                    7,422,939.89         15,364,355.30

 VI. Balance of cash and cash equivalents at the period -end                           17,832,633.21         16,110,895.95


6. Cash Flow Statement of Parent Company

                                                                                                                    In RMB

                                         Item                                     2020 semi-annual      2019 semi-annual

 I. Cash flows arising from operating activities:



                                                                  45
     司公限有份股心中游旅海东大南海                                                      2020   文全告报度年半年
     Cash received from selling commodities and providing labor services         5,200,787.10         14,988,120.25

     Write-back of tax received                                                    12,691.70

     Other cash received concerning operating activities                          501,815.94           1,104,683.09

Subtotal of cash inflow arising from operating activities                        5,715,294.74         16,092,803.34

     Cash paid for purchasing commodities and receiving labor service            2,862,000.80          4,468,726.47

     Cash paid to/for staff and workers                                          5,523,279.64          6,921,639.62

     Taxes paid                                                                   311,217.66           1,139,283.59

     Other cash paid concerning operating activities                             1,807,594.18          2,294,235.80

Subtotal of cash outflow arising from operating activities                      10,504,092.28         14,823,885.48

Net cash flows arising from operating activities                                -4,788,797.54          1,268,917.86

II. Cash flows arising from investing activities:

     Cash received from recovering investment

     Cash received from investment income

     Net cash received from disposal of fixed, intangible and other long-term
                                                                                      300.00             68,670.00
assets

     Net cash received from disposal of subsidiaries and other units

     Other cash received concerning investing activities

Subtotal of cash inflow from investing activities                                     300.00             68,670.00

     Cash paid for purchasing fixed, intangible and other long-term assets       4,541,624.47           591,546.00

     Cash paid for investment

     Net cash received from subsidiaries and other units obtained

     Other cash paid concerning investing activities

Subtotal of cash outflow from investing activities                               4,541,624.47           591,546.00

Net cash flows arising from investing activities                                -4,541,324.47           -522,876.00

III. Cash flows arising from financing activities

     Cash received from absorbing investment

     Cash received from loans                                                   19,791,474.22

     Other cash received concerning financing activities

Subtotal of cash inflow from financing activities                               19,791,474.22

     Cash paid for settling debts

     Cash paid for dividend and profit distributing or interest paying             51,265.51

     Other cash paid concerning financing activities

Subtotal of cash outflow from financing activities                                 51,265.51

Net cash flows arising from financing activities                                19,740,208.71



                                                                 46
                司公限有份股心中游旅海东大南海                                                                      2020   文全告报度年半年
         IV. Influence on cash and cash equivalents due to fluctuation in exchange rate

         V. Net increase of cash and cash equivalents                                                    10,410,086.70                 746,041.86

                Add: Balance of cash and cash equivalents at the period -begin                            7,421,452.59           14,864,055.73

         VI. Balance of cash and cash equivalents at the period -end                                     17,831,539.29           15,610,097.59


        7. Statement of Changes in Owners’ Equity (Consolidated)

        This Period
                                                                                                                                           In RMB

                                                                                   2020 semi-annual
                                                         Owners’ equity attributable to the parent Company
                                                  Other
                                                 equity
                                                  instru
                                                   ment                            O
                                                                                              P
                                                     P                             t
                                                                                              r
                                                     e                         L h
                                                                                              o
                                                     r                         e e
                                                                                              v                                            M
                                                     p                         s r R
                                                                                              i                                            i
                                                     e                         s       e
                                                                                           S s                                             n
                                                     t                         : c a
                                                                                           u i                                             o
                                                     u                             o s
                                                P                                          r o                                             r
                                                     a                         I m o
                                                r                                          p n                                             i
                                                     l                         n p n
                                                e                                          l                                               t
                                                                               v r a                                O
                                                f                                          u o                                             y
         Item                                        c                         e e b                                t
                                                e                                          s f                                                 Total owners’
                                                     a                         n h l                                h
                              Share capital     r        O Capital reserve                        Retained profit           Subtotal       i      equity
                                                     p                         t e e                                e
                                                r        t                                 r g                                             n
                                                     i                         o n                                  r
                                                e        h                                 e e                                             t
                                                     t                         r s r
                                                d        e                                 s n                                             e
                                                     a                         y i e
                                                         r                                 e e                                             r
                                                     l                             v s
                                                s                                          r r                                             e
                                                                               s e e
                                                t                                          v a                                             s
                                                     s                         h       r
                                                o                                          e l                                             t
                                                     e                         a i v
                                                c                                                                                          s
                                                     c                         r n e
                                                k                                             r
                                                     u                         e c
                                                                                              i
                                                     r                         s o
                                                                                              s
                                                     i                             m
                                                                                              k
                                                     t                             e
                                                     i
                                                     e
                                                     s
I. Balance at the end of
                            364,100,000.00                 54,142,850.01                       -339,756,246.05           78,486,603.96         78,486,603.96
the last year
       Add: Changes of
accounting policy
                   Error
correction of the last

                                                                            47
                司公限有份股心中游旅海东大南海                                          2020   文全告报度年半年
period
              Enterprise
 combine under the
 same control
       Other
II. Balance at the
                             364,100,000.00      54,142,850.01        -339,756,246.05      78,486,603.96      78,486,603.96
beginning of this year
III. Increase/ Decrease in
this year (Decrease is                                                -6,631,450.42        -6,631,450.42      -6,631,450.42
listed with “-”)
  (i) Total comprehensive
                                                                      -6,631,450.42        -6,631,450.42      -6,631,450.42
income
 (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 Carry-over retained
 .
   earnings from the
   defined benefit plans
5 Carry-over retained
 .
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
report period



                                                                 48
                 司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年半年
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
                            364,100,000.00               54,142,850.01                         -346,387,696.47        71,855,153.54         71,855,153.54
the report period
         Last Period
                                                                                                                                          In RMB

                                                                                  2019 semi-annual
                                                       Owners’ equity attributable to the parent Company
                                               Other
                                              equity
                                               instru
                                                ment                            O
                                                                                           P
                                                  P                             t
                                                                                           r
                                                  e                          L h
                                                                                           o
                                                  r                          e e
                                                                                           v                                          M
                                                  p                          s r R
                                                                                           i                                          i
                                                  e                          s      e
                                                                                        S s                                           n
                                                  t                          : c a
                                                                                        u i                                           o
                                                  u                             o s
                                             P                                          r o                                           r
                                                  a                          I m o
                                             r                                          p n                                           i
                                                  l                          n p n
                                             e                                          l                                             t
                                                                             v r a                               O
                                             f                                          u o                                           y
                                                  c                          e e b                               t
          Item                               e                                          s f                                                 Total owners’
                                                  a         Capital          n h l                               h
                             Share capital   r        O                                        Retained profit          Subtotal      i        equity
                                                  p         reserve          t e e                               e
                                             r        t                                 r g                                           n
                                                  i                          o n                                 r
                                             e        h                                 e e                                           t
                                                  t                          r s r
                                             d        e                                 s n                                           e
                                                  a                          y i e
                                                      r                                 e e                                           r
                                                  l                             v s
                                             s                                          r r                                           e
                                                                             s e e
                                             t                                          v a                                           s
                                                  s                          h      r
                                             o                                          e l                                           t
                                                  e                          a i v
                                             c                                                                                        s
                                                  c                          r n e
                                             k                                             r
                                                  u                          e c
                                                                                           i
                                                  r                          s o
                                                                                           s
                                                  i                             m
                                                                                           k
                                                  t                             e
                                                  i
                                                  e
                                                  s
 I. Balance at the end of
                            364,100,000.00             54,142,850.01                        -340,454,153.72          77,788,696.29         77,788,696.29
 the last year
       Add: Changes of
 accounting policy
                    Error
 correction of the last
 period
               Enterprise
   combine under the


                                                                           49
                司公限有份股心中游旅海东大南海                                          2020   文全告报度年半年
 same control
      Other
II. Balance at the
                             364,100,000.00      54,142,850.01        -340,454,153.72    77,788,696.29       77,788,696.29
beginning of this year
III. Increase/ Decrease
in this year (Decrease                                                755,974.01         755,974.01          755,974.01
is listed with “-”)
 (i)             Total
                                                                      755,974.01         755,974.01          755,974.01
comprehensive income
 (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 Carry-over retained
 .
   earnings from the
   defined benefit plans
5 Carry-over retained
 .
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
report period



                                                                 50
               司公限有份股心中游旅海东大南海                                                                   2020   文全告报度年半年
2. Usage in the report
period
(VI)Others
IV. Balance at the end
                            364,100,000.00            54,142,850.01                       -339,698,179.71        78,544,670.30       78,544,670.30
of the report period


         8. Statement of Changes in Owners’ Equity (Parent Company)

         This Period
                                                                                                                                    In RMB

                                                                                             2020 semi-annual
                                                                      Other
                                                                      equity
                                                                      instru
                                                                       ment                           O
                                                                        P                             t
                                                                        e                           L h
                                                                        r                           e e
                                                                        p                           s r R
                                                                        e                           s   e
                                                                                                            S
                                                                        t                           : c a
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                                                                        a                           I m o
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                                                                                                    v r a
                                                                      f                                     u                       O
                                                                        c                           e e b
                       Item                                           e                                     s                       t
                                                                        a          Capital public   n h l                             Total owners’
                                                     Share capital    r        O                                  Retained profit   h
                                                                        p             reserve       t e e                                equity
                                                                      r        t                            r                       e
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                                                                      e        h                            e
                                                                        t                           r s r
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                                                                        a                           y i e
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                                                                        l                             v s
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                                                                                                    s e e
                                                                      t                                     v
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                                                                        c                           r n e
                                                                      k
                                                                        u                           e c
                                                                        r                           s o
                                                                        i                             m
                                                                        t                             e
                                                                        i
                                                                        e
                                                                        s
I. Balance at the end of the last year              364,100,000.00                 54,142,850.01                 -339,757,154.25       78,485,695.76
     Add: Changes of accounting policy
         Error correction of the last period
        Other
II. Balance at the beginning of this year           364,100,000.00                 54,142,850.01                 -339,757,154.25       78,485,695.76
III. Increase/ Decrease in this year (Decrease is
                                                                                                                 -6,631,104.84         -6,631,104.84
listed with “-”)

                                                                       51
              司公限有份股心中游旅海东大南海                                                                 2020   文全告报度年半年
 (i) Total comprehensive income                                                                                  -6,631,104.84        -6,631,104.84
 (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. Distribution for owners (or shareholders)
3. 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 Carry-over retained earnings from the defined
 .
benefit plans
5 Carry-over retained earnings from other
 .
comprehensive income
6. 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 period       364,100,000.00                54,142,850.01                    -346,388,259.09      71,854,590.92
       Last period
                                                                                                                                   In RMB

                                                                                          2019 semi-annual
                                                                   Other                         L   O
                                                                                                         R
                                                                   equity                        e   t
                                                                                                         e
                                                                   instru                        s   h       S
                                                                                                         a
                                                                    ment                         s   e       u
                                                                                                         s
                                                                   P    P                        :   r       r
                                                                                                         o
                                                                   r    e                                    p
                                                                                                         n
                                                                   e    r                        I c         l
                                                                                                         a
                                                                   f    p                        n o         u                     O
                                                                                                         b
                       Item                                        e    e                        v m         s                     t
                                                                                Capital public           l                           Total owners’
                                                   Share capital   r    t   O                    e p             Retained profit   h
                                                                                   reserve               e                              equity
                                                                   r    u   t                    n r       r                       e
                                                                   e    a   h                    t e       e                       r
                                                                                                         r
                                                                   d    l   e                    o h       s
                                                                                                         e
                                                                            r                    r e       e
                                                                                                         s
                                                                   s    c                        y n       r
                                                                                                         e
                                                                   t    a                          s       v
                                                                                                         r
                                                                   o    p                        s i       e
                                                                                                         v
                                                                   c    i                        h v
                                                                                                         e
                                                                   k    t                        a e

                                                                       52
               司公限有份股心中游旅海东大南海                                                   2020   文全告报度年半年
                                                                      a                   r
                                                                      l                   e i
                                                                                          s n
                                                                      s                     c
                                                                      e                     o
                                                                      c                     m
                                                                      u                     e
                                                                      r
                                                                      i
                                                                      t
                                                                      i
                                                                      e
                                                                      s
I. Balance at the end of the last year              364,100,000.00        54,142,850.01          -340,454,153.72      77,788,696.29
      Add: Changes of accounting policy
          Error correction of the last period
        Other
II. Balance at the beginning of this year           364,100,000.00        54,142,850.01          -340,454,153.72      77,788,696.29
III. Increase/ Decrease in this year (Decrease is
                                                                                                 755,475.22           755,475.22
listed with “-”)
 (i) Total comprehensive income                                                                  755,475.22           755,475.22
 (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. Distribution for owners (or shareholders)
3. 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 Carry-over retained earnings from the defined
 .
benefit plans
5 Carry-over retained earnings from other
 .
comprehensive income
6. 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 period         364,100,000.00        54,142,850.01          -339,698,678.50      78,544,171.51




                                                                     53
      司公限有份股心中游旅海东大南海                                                              2020    文全告报度年半年
III. Company profile

(I) Overview
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter referred to as the "Company") is a
standardized company limited by shares established on April 26, 1993 and restructured from Hainan Sanya
Dadonghai Tourism Centre Development Co., Ltd. with the approval of Hainan Shareholding System Pilot Group
office via its Document Qiong Gu Ban Zi [1993] No.11. On May 6, 1996, the Company was reorganized and
separated with the reply of Hainan Securities Management Office by its Document Qiong Zheng Ban [1996]
No.58. On October 8, 1996 and January 28, 1997, the Company was approved to respectively issue 80 million B
shares and 14 million A shares on Shenzhen Stock Exchange and list for sales. On June 20, 2007, the Company
carried out the split share structure reform. The non-tradable shareholders of the Company paid shares to the
tradable shareholders for obtaining the circulation rights, and the tradable shareholders got 3 shares for every 10
shares. The Company belongs to tourism and catering service industry.
As at June 30, 2020, the Company's accumulative total issued capital was 364.1 million shares and the
Company's registered capital was RMB 364.1 million. Legal representative: Yuan Xiaoping. Unified social
credit code: 91460000201357188U. Domicile: Dadonghai, Hedong District, Sanya. Business scope:
Accommodation and catering industry (limited to branches); photography; flower bonsai, knitwear, general
merchandise, hardware and electrical equipment, chemical products (except franchised operations), daily
necessities, industrial means of production (except franchised operations), metal materials, machinery
equipment; sales of train, bus and vehicle tickets on an agent basis, etc. The Company's largest shareholder is
Luoniushan Co., Ltd.


(II) Scope to the consolidated financial statements
As at 30 June 2019, the subsidiary included into the Company's scope of consolidated financial statements is
as follows:
                                                            Name
Hainan Wengao Tourist Resources Development Co., Ltd. (hereinafter referred to as "the Wengao Tourism")
See “Note VI. Changes in the scope of consolidation" and “Note VII. Equity in other entities" for details of the
scope of consolidated financial statements and changes thereof.
The financial statements were approved by all directors of the Company for disclosure on August 20, 2020.


IV. Basic for the preparation of the financial statements

1. Preparation basis

Based on going concern and according to actually occurred transactions and events, the Company prepared
financial statements in accordance with the Accounting Standards for Business Enterprises — Basic
Standards and the specific accounting standards, the Accounting Standards for Business Enterprises -
Application Guidance, the Accounting Standards for Business Enterprises - Interpretation and other relevant


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      司公限有份股心中游旅海东大南海                                                    2020   文全告报度年半年
provisions, issued by the Ministry of Finance, (hereinafter referred to collectively as the "Accounting
Standards for Business Enterprises"), as well as the disclosure provisions of the Rules for the Compilation
and Submission of Information Disclosure by Companies Offering Securities to the Public No.15 - General
Requirements for Financial Reports.
2. Going concern
The Company currently has sufficient working capital and normal operating conditions. It is estimated that
the operating activities of the Company will still continue in the next 12 months.


V. Significant accounting policies and accounting estimates

Specific accounting policies and estimation attention:

According to relevant regulations of Accounting Standards for Business Enterprises and accounting mechanism,
combined with the actual operating characteristics to formulated the corresponding accounting policies and
estimates.


1. Statement on compliance with the Accounting Standards for Business Enterprises


The financial statements prepared by the Company meet requirements of the Accounting Standards for Business
Enterprises, and truly and completely reflect the consolidated and the Company’s financial position as of 30 June,
2020 as well as operation results and cash flows for the half year of 2020.


2. Accounting period


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


3. Operating cycle


The Company's operating cycle is 12 months.


4. Reporting currency


The Company adopts RMB as its reporting currency.


5. Accounting Treatment Method for Business Combinations (under the same/different control)


Business combination under common control: The assets and liabilities acquired by the Company in business
combinations are measured at book values of assets and liabilities of the combinee (including the goodwill
arising from the acquisition of the combinee by the ultimate controller) in the consolidated financial
statements of the ultimate controller on the combination date. The stock premium in the capital reserves is
adjusted according to the difference between the book value of the net assets acquired in business

                                                               55
     司公限有份股心中游旅海东大南海                                                   2020   文全告报度年半年
combination and the book value of the consideration paid for the combination (or total par value of shares
issued). If there is no sufficient stock premium in the capital reserves for write-downs, the retained earnings
shall be adjusted.


Business combination not under common control: The Company shall, on the acquisition date, measure the
assets surrendered and liabilities incurred or assumed by the Company for a business combination at their
fair values. The difference between the fair value and their book value shall be included in the current profit
or loss. The Company shall recognize the difference of the combination costs in excess of the fair value of
the identifiable net assets acquired from the acquiree as goodwill. The Company shall recognize the
difference of the combination costs in short of the fair value of the identifiable net assets acquired from the
acquiree in the current profit or loss after review.


The auditing, legal services, consulting and other intermediary service fees as well as other relevant direct
expenses for business combination will be included in the current profit or loss at occurrence; the transaction
costs for the issue of equity securities shall be used to write down equities.


6. Preparation methods of consolidated financial statements


1) Scope of consolidation
The scope of consolidated financial statements of the Company is determined on the basis of control, and all
its subsidiaries (including the investee's partible part that is under control of the Company) shall be included
in the consolidated financial statements.


2) Procedures of consolidation
The Company prepares the consolidated financial statements based on financial statements of itself and its
subsidiaries and according to other relevant information. Upon preparation of consolidated financial
statements, the Company shall deem the whole group as a whole accounting entity, and reflects the overall
financial position, operating results and cash flows of the group in accordance with relevant requirements for
recognition, measurement and presentation as stated in the Accounting Standards for Business Enterprises as
well as uniform accounting policies.


All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the same
accounting policies and accounting periods as those of the Company. If the accounting policies or accounting
periods of a subsidiary are different from those of the Company, the consolidated financial statements of the
subsidiary, upon preparation of consolidated financial statements, shall be adjusted according to the
accounting policies and accounting periods of the Company. For the subsidiaries acquired through business


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     司公限有份股心中游旅海东大南海                                                     2020   文全告报度年半年
combination not under the same control, adjustments to their financial statements shall be made based on the
fair values of net identifiable assets on the acquisition date. For a subsidiary acquired through business
combination under common control, adjustment to its financial statements shall be made based on the book
values of its assets and liabilities (including goodwill formed in the acquisition of the subsidiary by its
ultimate controller) as presented in the financial statements of the ultimate controller.


The share of owners' equity, current net profits and losses, and current comprehensive income of subsidiaries
attributable to minority owners shall be respectively and separately listed under the owner's equity item of a
consolidated balance sheet, the net profit item of a consolidated income statement, and the total
comprehensive income in a consolidated income statement. Where the current losses shared by a minority
shareholder of a subsidiary exceeds the balances arising from the shares enjoyed by the minority shareholder
in the owners' equity of the subsidiary at the beginning of the period, minority equity shall be written down
accordingly.


(1) Increase of subsidiaries or business
During the reporting period, if the Company acquired subsidiaries or business from the business combination
under common control, the beginning balance in the consolidated statement of financial position shall be
adjusted; the revenue, expenses and profits of the newly acquired subsidiaries or business from the beginning
to the end of the reporting period shall be included into the consolidated income statement; the cash flows of
the newly acquired subsidiaries or business from the beginning to the end of the reporting period shall be
included in the consolidated statement of cash flow. Relevant items in the comparative financial statements
of the subsidiaries shall be adjusted accordingly, as if the reporting entity after the business combination
exists at the time when the ultimate controller has the control power.


Where control can be exercised on the investee under the common control for additional investment or other
reasons, adjustment will be made as if all parties involved in the combination exist at the beginning of the
control by the ultimate controller. Equity investments held before the control over the combined party is
obtained, the related gains and losses, other comprehensive income as well as other changes in net assets
recognized from the later of the date when the original equity is obtained or the date when the acquirer and
the acquiree are under the same control, to the combination date will respectively write down the retained
earnings or current profit or loss in the comparative statements.


During the reporting period, if the Company increased subsidiaries or business from business combinations
not under common control, the beginning balance in the consolidated balance sheet shall not be adjusted; the
revenue, expenses and profits of the subsidiaries or business from the acquisition date to the end of the
reporting period shall be included in the consolidated income statement; cash flows of the subsidiaries and


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business from the acquisition date to the end of the reporting period shall be included in the consolidated
statement of cash flows.


Where the Company can control the investee not under common control from additional investments, it shall
re-measure equity of the acquiree held before the acquisition date at the fair value of such equity on the
acquisition date and include the difference of the fair value and book value in the investment income in the
year. Where equity of the acquiree held before the acquisition date involves in other comprehensive income
accounted for under equity method and other changes in owners' equity other than net profits or losses, other
comprehensive income and profit distribution, the relevant other comprehensive income and other changes in
owners' equity shall be transferred to investment income in the year which the acquisition date falls in,
except for other comprehensive income from changes arising from re-measurement of net liabilities or net
assets of defined benefit plan by the investee.


(2) Disposal of subsidiaries or business
①   General method of treatment
During the reporting period, where the Company disposes of any subsidiary or business, the revenues, expenses
and profits of the subsidiary or business from the beginning period to the disposal date shall be included in the
consolidated income statement; cash flows of the subsidiary or business from the beginning period to the disposal
date shall be included in the consolidated statement of cash flows.


When the Company loses the control over the investee due to disposal of partial equity investment or other
reasons, the remaining equity investment after the disposal will be re-measured by the Company at its fair value
on the date of loss of the control. The difference of the sum of the consideration acquired from disposal of equities
and the fair value of the remaining equities less the sum of the share calculated at the original shareholding ratio in
net assets of the original subsidiary which are continuously calculated as of the acquisition date or the
combination date and goodwill shall be included in the investment income of the period in which the control is
lost. Other comprehensive incomes associated with the equity investments of the original subsidiary, or the
changes in owners' equity other than net profit or loss, other comprehensive income and profit distribution, are
transferred into investment income of the period when the control is lost, except for other comprehensive income
from the change in net liability or net asset due to the investor's re-measurement of defined benefit plan.


Where the Company loses the control of any subsidiary due to the decline in its shareholding ratio in the
subsidiary, caused by the increase of investment in the subsidiary by other investors, the accounting treatment
shall be conducted according to the above principles.


②   Disposal of subsidiaries by stages
If the control is lost due to disposal of the equities in subsidiaries through multiple transactions by stages, and the


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terms, conditions and economic impact of the transactions related to the enterprise's disposal of its investment in
the subsidiaries meet one or more of the following circumstances, it usually indicates that multiple transactions
should be included in a package deal and subject to accounting processing as below:
i.These transactions are concluded at the same time or under the consideration of mutual effect;


ii.These transactions as a whole can reach a complete business result;


iii.The occurrence of a transaction depends on the occurrence of at least one other transaction;


iv.A single transaction is uneconomical but is economical when considered together with other transactions.


Where various transactions of disposal of equity investments in subsidiaries until loss of the control belong to a
package deal, accounting treatment shall be made by the Company on the transactions as a transaction to dispose
subsidiaries and lose the control; however, the difference between each disposal cost and net asset share in the
subsidiaries corresponding to each disposal of investments before loss of the control should be recognized as other
comprehensive income in the consolidated financial statements and should be transferred into the current profit or
loss at the loss of the control.


Where various transactions of disposal of equity investments in subsidiaries until loss of the control do not belong
to a package deal, before the loss of the control, accounting treatment shall be made according to the relevant
policies for partial disposal of equity investments in the subsidiary without losing control; at the loss of the control,
accounting treatment shall be made according to general treatment methods for disposal of subsidiaries.


(3) Purchase of minority interest of subsidiaries
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the
difference between the long-term equity investment acquired by the Company for the purchase of minority
interest and the share of net assets calculated constantly from the acquisition date (or combination date)
according to the newly increased shareholding ratio. Where the share premium is insufficient to offset,
retained earnings will be adjusted.


(4) Partial disposal of equity investments in subsidiaries without losing control
The share premium in the capital reserves under the consolidated balance sheet will be adjusted at the
difference between the proceeds achieved from the partial disposal of long-term equity investments in
subsidiaries and the share of net assets of subsidiaries attributable to the Company corresponding to the
disposal of long-term equity investments and calculated constantly from the acquisition date or combination
date, without losing the control. Where the share premium is insufficient to write down, the retained earnings
will be adjusted.


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7. Classification and accounting treatment of joint venture arrangements
Joint venture arrangements are classified into joint operation and joint venture.
Joint operation refers the joint venture arrangement where the Company is a joint venturer and enjoys assets
relevant the joint venture arrangement and assumes liabilities relevant to the same.
The Company recognizes the following items related to its share of benefits in the joint operation and
conduct accounting treatment in accordance with relevant accounting standards for business enterprises:
(1) Assets peculiar to the Company and assets jointly owned by the Company based on shares held;


(2) Liabilities undertaken by the Company solely and liabilities jointly undertaken by the Company based
on shares held;


(3) Revenue from the sales of output share enjoyed by the Company in the joint operation;


(4) Revenue from the sales of the joint operation output based on the shares held by the Company; and


(5) Separate costs, and costs for the joint operation based on the shares held by the Company.


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 of the Company. The term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.


9. Foreign currency business and foreign currency statement conversion


Foreign currency transactions will be translated at the spot exchange rate on the transaction date and be accounted
for at RMB.


The balance of foreign currency monetary items are translated at the spot exchange rate on the balance sheet date
and the exchange differences arising therefrom shall be included in the current profit and loss, except those
exchange differences arising from the special borrowings of foreign currency related to the acquired and
constructed assets qualified for capitalization that will be capitalized at the borrowing expenses. Foreign currency
non-monetary items measured at historical costs shall still be converted at the spot exchange rates when the
transactions occur, without changing the functional currency amount. Foreign currency non-monetary items
measured at fair value shall be translated at the spot exchange rates on the day when the fair value is determined.
The exchange difference arising therefrom is included in the current profit and loss or capital reserves.

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10. Financial instruments

Financial instruments include financial assets, financial liabilities and equity instruments.
1) Classification of financial instruments
Upon initial recognition, financial assets and financial liabilities are classified into: financial assets or financial
liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities
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; receivables; available-for-sale financial assets; and other
financial liabilities, etc.


2) Recognition and measurement of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized
at the fair value upon acquisition (net of cash dividends declared but not yet paid or bond interest due but not yet
received) and the related transaction costs are included in 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.
The difference between the fair value and the initial book-entry value is recognized as investment income upon
disposal; meanwhile, adjustments are made to profits or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recognized at the sum of the fair value (net of bond interest due but not
yet received) and related transaction costs upon acquisition.
The interest income is calculated and recognized according to amortized costs and effective interest rates (as per
coupon rates if the difference between effective interest rates and coupon rates is small) during the holding period,
and is included in the investment income. The effective interest rates are determined upon acquisition and remain
unchanged during the expected remaining period, or a shorter period if applicable.
Upon disposal, the difference between the purchase price obtained and the book value of the investment is
recognized in investment income.
(3) Receivables
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, prepayment and others, the initial
recognition amount shall be the contract price or agreement price receivable from purchasing party; for those with
financing nature, they are initially recognized at their present values.
Upon recovery or disposal, the difference between the purchase price obtained and the book value of the
receivables is recognized in current profit and loss.
(4) Available-for-sale financial assets
Financial assets (financial liabilities) measured at fair value through current profit and loss are initially recognized

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at the fair value and related transaction expenses upon acquisition (net of cash dividends declared but not yet paid
or bond interest due but not yet received).
The interests or cash dividends to be received during the holding period are recognized as investment income. The
interest or cash dividends should be measured at fair value and their changes in fair value should be included in
other comprehensive income. However, for an equity instrument investment that has no quoted price in an active
market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the said
equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at cost.
Difference between the proceeds and the book value of the financial assets is recognized as investment profit or
loss upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which
is originally and directly included in other comprehensive income shall be transferred out and recognized as
investment gains or losses.
(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. Subsequent measurement is conducted at the amortized cost.
3) Recognition and measurement of transfer of financial assets
When a financial assets transfer occurs, the financial assets will be derecognized when substantially all the risks
and rewards on the ownership of the financial assets have been transferred to the transferee; and they will not be
derecognized if substantially all the risks and rewards on the ownership of the financial assets have been retained.
When determining whether the transfer of a financial asset meets the above de-recognition criteria of financial
assets, the Company adopts the principle of substance over form. The Company classifies the transfer of a
financial asset into the entire transfer and the partial transfer of financial asset. Where the entire transfer of the
financial asset meets the de-recognition conditions, the difference of the following two amounts will be included
in 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 de-recognition, 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 the derecognized part;
(2) The sum of the consideration for the derecognized part and the portion of de-recognition 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 de-recognition criteria, the financial assets shall continue to be
recognized, and the consideration received will be recognized as a financial liability.
4) De-recognition criteria of financial liabilities

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Where the present obligations of financial liabilities have been discharged in whole or in part, the financial
liability is derecognized or any part thereof will be derecognized; if the Company signs an agreement with
creditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financial
liabilities are substantially different from the existing ones in terms of contract terms, the existing financial
liabilities will be derecognized, and at the same time, the new financial liability will be recognized.
Where substantive changes are made to the contract terms of existing financial liability in whole or in part, the
existing financial liabilities or part thereof will be derecognized, and the financial liability the terms of which have
been modified will be recognized as a new financial liability.
Where financial liabilities are derecognized is whole or in part, the difference between the book value of the
financial liabilities derecognized and the consideration paid (including non-cash assets transferred out or new
financial liabilities borne) will be included into current profit and loss.
Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be
split into the derecognized part and continuously-recognized part according to their respective relatively fair
values on the repurchase date. The difference between the book value of the derecognized part and the
consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be
included in the current profit and loss.
5) Method of determining the fair value of financial assets and financial liabilities
The fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. Fair
value of a financial instrument having no active market shall be determined by using valuation techniques. At the
time of valuation, the Company adopts the techniques that are applicable in the current situation and supported by
enough available data and other information, selects the input values that are consistent with the features of assets
or liabilities as considered by market participants in relevant asset or liability transactions, and gives priority to
use relevant observable inputs. The unobservable inputs are used only under the circumstance when it is
impossible or unobservable inputs to obtain relevant observable inputs.
6) Testing and accounting methods of impairment of financial assets
Accounting policies applicable as of 1 January 2019
The Company estimates, individually or in combination, the expected credit losses of financial assets measured at
amortized cost and financial assets (debt instruments) measured at fair value whose changes are included in other
comprehensive income, taking into account all reasonable and evidence-based information, including
forward-looking information. The measurement of expected credit losses depend on whether the credit risk of
financial assets has increased significantly since the initial recognition.


If the credit risk of the financial instruments has increased significantly since the initial recognition, the Company
shall measure the loss provision at the amount equivalent to the expected credit loss of the financial instrument for
the entire life of the instrument. If the credit risk of the financial instruments has not increased significantly since
the initial recognition, the Company shall measure the loss provision at the amount equivalent to the expected
credit loss of the financial instrument in the next 12 months. The increase or rollover amount of the loss provision
resulting therefrom shall be recorded in the current profit and loss as an impairment loss or gain.

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The credit risk of the instrument is generally deemed to have increased significantly if the default is more than 30
days, unless there is conclusive evidence that the credit risk of the instrument has not increased significantly since
the initial confirmation.


If the credit risk of the financial instrument is low on the balance sheet date, the Company considers that the credit
risk of the financial instrument has not increased significantly since the initial recognition.


If there is objective evidence that the credit impairment of a financial asset has occurred, the Company shall make
provision for the impairment of the financial asset on a single basis.


11. Note receivable

Consistent with the accounts receivable accounting policy.

12. Account receivable

For account receivables, whether or not they contain significant financing elements, the Company measures the
loss provisions according to the expected credit loss for the whole duration. For account receivables having
objective evidence that there is an impairment and applicable to a single assessment, shall be subjected to an
impairment test, to confirm the expected credit loss, and make a single impairment provision. For account
receivables without objective evidence of impairment, or when a single financial asset cannot be evaluated the
credit loss at a reasonable cost, the Company divides account receivables into several portfolios according to the
credit risk characteristics, to calculate the expected credit loss on the basis of the portfolios. The basis for
determining the portfolios is as follows:



                       Portfolio Name                                                  Basis

Account Receivables Portfolio 1                          External Customers for Account Receivables

Account Receivables Portfolio 2                          Consolidated Related Party Customers for Account Receivables
For the account receivables divided into portfolios, the Company refers to the history of credit loss experience,
combined with the current situation and the forecast of the future economic situation, to prepare tables of aging of
account receivables and comparison tables of expected credit loss rate of the entire duration, and to calculate the
expected credit loss


For lease receivables, long-term receivables formed by the Company through the sale of goods or the provision of
services, the Company chooses to always measure its loss provisions at an amount equal to the expected credit
loss for the entire duration.


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For other receivables, if the credit risk has not significantly increased since the initial recognition, it is in the first
stage. The Company shall measure the loss provision according to the expected credit loss in the next 12 months.
If the credit risk has increased significantly since the initial recognition, but the credit impairment has not
occurred, it is in the second stage. If the credit impairment has occurred since the initial recognition, it is in the
third stage. The Company shall measure the loss provision according to the expected credit loss of the instrument
throughout its life.


13. Receivables financing

Consistent with the Accounting Standards for Business Enterprise


14. Other account receivable

Methods of determining for expected credit losses of other receivable and accounting treatment
Methods of determining for expected credit losses of other receivable and accounting treatment
The Company divides other receivables into several portfolios based on the credit risk characteristics. The basis
for determining the portfolio is as follows:



Portfolio Name                                                                               Basis

Other Receivables Portfolio 1                                 Deposit, Security Deposit and Reserve Receivables

Other Receivables Portfolio 2                                 Receivables of Advance Payment for Another Party

Other Receivables Portfolio 3                                 Unified collection of advance payment of other receivables


For other receivables divided into portfolios, the Company refers to historical experience in credit loss, combined
with the current situation and forecasted future economic situation, and by default risk exposure and the credit loss
rate within next 12 months or the whole duration, to calculate the expected credit losses.


15. Inventories

1.Classification of inventories
The inventories are classified into: raw materials, commodity stocks, low-value consumables, food materials,
fuels, etc.


2. Measurement of inventories dispatched
The commodity stocks are accounted for based on their selling prices, and the difference between the commodity
purchasing price and the selling price is adjusted monthly by the comprehensive spread rate method. The
inventory materials are measured at actual cost when purchased and warehoused, and measured using the first-in
first-out method when applied for use and dispatched. Low-value consumables are amortized on a one-off basis


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when applied for use.


3. Determining basis of the net realizable value of inventories and method for inventory depreciation reserve
After the comprehensive check of the inventories at the end of the period, the inventory depreciation reserves are
provided or adjusted at their costs or net realizable values, whichever are lower.


For inventories for direct sale, including commodity stocks and materials for sale, their net realizable values shall
be recognized at the estimated selling prices minus the estimated selling expenses and the relevant taxes and
surcharges in the normal operation process. 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 held by the Company are more
than the quantities ordered in sales contracts, the net realizable value of the excess portion of inventories shall be
based on general selling prices.


The provisions for inventory depreciation reserve are made on an individual basis at the end of the period; for
inventories with large quantities and relatively low unit prices, the provisions for inventory depreciation reserve
are made on a category basis. For inventories related to the 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 are made on a portfolio
basis.


Where the previous factors affecting the written-down of the value of inventory have disappeared, the amount of
write-down shall be resumed and be reversed from the original provision for inventory devaluation with the
reversal being included in current profit and loss.


4. Inventory system
Perpetual inventory system is adopted.


5. Amortization method for low-cost consumables and packaging materials
(1) Low-cost consumables are amortized in a lump sum;
(2) Packaging materials are amortized in a lump sum.


16. Contract assets

Consistent with the Accounting Standards for Business Enterprise


17. Contract costs

Consistent with the Accounting Standards for Business Enterprise




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18. Assets held for sale

The Company classifies non-current assets or disposal groups that meet the following conditions as holding for
sale:


(1) Subject to the practice of selling such assets or disposal groups in similar transactions, the sale can be effected
immediately under the current circumstances;


(2) A sale is highly likely to occur, that is, the Company has made a decision on a sale plan and obtained a firm
purchase commitment, and the sale is expected to be completed within one year. Where the relevant provisions
require the approval of the relevant authority or regulatory authority of the company before the sale, the approval
has been obtained.

19. Investment in debt obligations

Consistent with the Accounting Standards for Business Enterprise


20. Other investment in debt obligations

Consistent with the Accounting Standards for Business Enterprise


21. Long-term account receivable

Consistent with the Accounting Standards for Business Enterprise


22. Long-term equity investment
Judgment criteria for joint control and significant influence
Joint control refers to the control shared over an arrangement in accordance with the relevant stipulations, and the
decision-making of related activities of the arrangement should not be made before the party sharing the control
right agrees the same. Where the Company exercises joint control over the investee together with other parties to
the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of the Company.


Significant influence refers to the power to participate in making decisions on the financial and operating policies
of an enterprise, such as appointing representative to the board of directors or similar organs of authority of the
investee, but not the power to control the investee, or jointly control, the formulation of such policies with other
parties. Where an investing enterprise is able to have significant influences on an investee, the investee is its
associate.


Determination of initial investment cost
(1) Long-term equity investments acquired through business combination
Business combination under common control: if the Company pays a consideration to the combinee in cash, by

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transferring non-cash assets or by assuming debts and issuing equity securities, the share of book value of its
owners' equity in the combinee in the consolidated financial statements of the ultimate controller shall be
recognized, on the combination date, as the initial cost of the long-term equity investment. If the invested entity
under the same control can be controlled due to additional investment and other reasons, the initial investment
cost of long-term equity investment shall be determined according to the share of the net assets of the merged
party in the carrying value of the consolidated financial statements of the ultimate controlling party after the
merger. The difference between the initial investment cost of the long-term equity investment on the date of the
merger and the sum of the book value of the long-term equity investment before the merger together with the book
value of the further acquisition of the newly paid consideration of the shares on the date of the merger shall be
adjusted for the equity premium. For long-term equity investments acquired from business combinations under
common control, the investment initial cost thereof shall be recognized at the share of book value of the
combinee's net assets in the consolidated financial statements of the ultimate controller on the combination date.
The stock premium should be adjusted at the difference between the initial investment cost of long-term equity
investments on the combination date and the sum of the book value of long-term equity investments before the
combination and the book value of consideration newly paid for additional shares; if there is no sufficient stock
premium to be written down, the retained earnings are adjusted.


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 investments. Where the Company can control the
investee not under common control from additional investments, the initial investment cost should be changed to
be accounted for under the cost method and recognized at the sum of the book value of equity investments
originally held and newly increased investment cost.


(2) Long-term equity investments acquired by other means
For long-term equity investments acquired from cash payment, the initial investment cost is the actually paid
purchasing cost.


For the long-term equity investments acquired through issuing the equity securities, the fair value of equity
securities issued shall be recognized as the initial investment cost.


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 initial cost of a long-term equity investment traded in with non-monetary asset
should be determined according to the fair value of the asset traded out and relevant taxes and surcharges payable,
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 relevant
taxes and surcharges payable should be recognized as the initial cost of the long-term equity investment.


For the long-term equity investment obtained through debt restructuring, its recorded value shall be determined by

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the fair value of the abandoned creditor's rights and the taxes directly attributable to the assets and other costs, and
the difference between the fair value and book value of the abandoned creditor's rights shall be recorded into the
current profit and loss.


Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under cost method
Long-term equity investments of the Company in its subsidiaries are accounted for by the cost method. Except for
the actual price paid for acquisition of investment or the cash dividends or profits contained in the consideration
which have been declared but not yet distributed, the Company recognizes the current investment income based
on the cash dividends or profits enjoyed by the Company and declared to be distributed by the investee.


(2) Long-term equity investments accounted for under the equity method
The Company's long-term equity investments in its associates and joint ventures are calculated under 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 shall, in accordance with its attributable share of the net profit or loss and other comprehensive
income realized by the investee, respectively recognize the investment income and other comprehensive income
and simultaneously adjust the book value of the long-term equity investment. The Company shall, in the light of
the profits or cash dividends that the investee declares to distribute, reduce the book value of the long-term equity
investment correspondingly. As to any change in owners' equity of the investee other than net profit or loss, other
comprehensive income and profit distribution, the Company shall adjust the book value of the long-term equity
investment and include such change into the owners' equity.


When recognizing the attributable share of net profit or loss of the investee, the Company shall, based on the fair
value of identifiable net asset of the investee when it obtains the investment, recognize its attributable share of the
net profit or loss of the investee after the adjustment according to the Company's accounting policy and
accounting period. When holding the investment, the investee should prepare the consolidated financial statements,
it shall account for the investment income based on the net profit, other comprehensive income and the changes in
other owner's equity attributable to the investee.


The Company calculates its attributable profit or loss of internal transactions that are not realized arising among
itself, associates and joint ventures based on its attributable percentage and offset it, and determines the
investment income on that basis. Unrealized internal transaction loss incurred between the Company and the
investee shall be recognized in full amount if such loss belongs to the asset impairment. For the asset investment

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or sale transactions with associated enterprises or joint ventures, according to the notes regarding to “3.5
Accounting treatment methods for business combinations under and not under common control” and “3.6
Preparation methods of consolidated financial statements” which should be carried out in accordance with the
relevant policies if the asset forms a part of the Company's business.


When the Company confirms that it should share losses of the investee, treatment shall be done in following
sequence: first, writing down the book value of long-term equity investments. Secondly, if the book value of the
long-term equity investments is insufficient to be offset, the Company shall continue to recognize the investment
loss to the extent of the book value of long-term interests which substantially form the net investment in the
investee and offset the book value of the long-term receivable items and other items. Finally, after all the above
treatments, if the Company is still responsible for any additional liability in accordance with the provisions
stipulated in the investment contracts or agreements, provisions are recognized and included into current
investment loss according to the obligations estimated to undertake. If the investee achieves profit in subsequent
periods, the Company shall, after deducting 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 according to the reversed sequence described above, and recognize
investment income at the same time.


(3) Disposal of long-term equity investments
For the disposal of long-term equity investments, the difference between the book value and the actual price
thereof shall be included in the current profit or loss.


Where a long-term equity investment is accounted for under the equity method, accounting treatment should be
made on the part which is originally included in other comprehensive income according to corresponding ratio by
using the same basis for the investee to directly dispose of the relevant assets or liabilities when the investments
are disposed of. Owner's equity recognized from changes in other owner's equity of the investee other than net
profit and loss, other comprehensive income and the profit distribution should be included in the current profit and
loss according to the proportion.


In case the joint control or significant influence over the investee is lost for disposing part of equity investments or
other reasons, the remaining equity will be changed to be accounted for according to the recognition and
measurement principles of financial instruments, while the difference between the fair value and the book value
on the date of the loss of joint control or significant influence should be included in the current profit or loss. As to
other comprehensive income recognized based on measurement of the original equity investment under the equity
method, accounting treatment shall be made on the same basis as would be required if the investee had directly
disposed of the assets or liabilities related thereto when measurement under the equity method is terminated.
Owner's equity recognized from the investee's changes in other owner's equity other than net profit or loss, other
comprehensive income and profit distribution should all transferred to the current profit and loss when the equity

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method is no longer adopted.


Where the Company loses the control over the investee due to disposal of partial equity investments or other
reasons, when it prepares separate financial statements, the remaining equity after disposal that can jointly control
or have significant influence on the investee will be measured at the equity method, and the remaining equity
should be deemed to have been adjusted at equity method on acquisition; If the remaining equity after disposal
cannot exercise joint control or significant influence over the investee, such remaining equity shall be subject to
the accounting treatment according to the recognition and measurement standards of financial instruments, and the
difference between its fair value and book value on the date when control losses is included in current profit or
loss.


Where the equity disposed of are acquired through business combination as a result of additional investment and
other reasons, if the remaining equities after disposal are calculated under the cost method or equity method upon
preparation of separate financial statements, other comprehensive income and other owners' equities recognized in
equity investments held before the acquisition date as a result of employment of equity method for accounting
shall be carried forward pro rata; if the remaining equities after disposal are calculated according to the provisions
on Recognition and Measurement of Financial Instruments, other comprehensive income and other owners'
equities will all be carried forward.


23. Investment properties


Measurement mode
Measured by cost method
Depreciation or amortization method
Measurement mode
Measured by cost method
Depreciation or amortization method
The investment properties refer to the properties held for earning rentals or/and capital appreciation, including
leased land use right, land use right held for transfer upon appreciation, and leased building (including self-built
buildings or buildings developed for renting or buildings under construction or development for future renting).


The Company measures the existing investment properties by using the cost model. For investment property
measured by using the cost model, the buildings for lease shall be depreciated by using policies the same as used
for fixed assets of the Company, and the land use rights for lease shall be amortized by using the same policies as
applicable to intangible assets.
24. Fixed assets




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(1) Recognition criteria


Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or
business management with useful lives exceeding one year. Fixed assets are recognized when they simultaneously
meet the following conditions:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2) The costs of the fixed assets can be measured reliably.


(2) Depreciation method of fixed assets


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         Asset type             Depreciation method     Year for depreciation   Residual value rate
                                                                                                               rate

                              Straight-line method     20-40                    5%                     4.75%-2.37%
Buildings and constructions

                              Straight-line method     8-20                     5%                     11.87%-4.75%
Machinery equipment

Electronic entertainment
                              Straight-line method     5-16                     5%                     19%-5.93%
equipment

                              Straight-line method     7-12                     5%                     13.57%-7.91%
Transportation equipment
Other equipment               Straight-line method     8                        5%                     11.87


(3) Reorganization basis, valuation and depreciation method for financial lease assets


If any of the following conditions is stipulated in the terms of the lease agreement signed between the company
and the lessee, it shall be recognized as the financing leased assets:


1) After the expire of the lease term, the ownership of the leased assets shall be vested in the company;
2) The company has an option to purchase the asset, the purchase price is far less than the fair value of the asset
when the option is exercised;
3) The leasing term is the majority of the life of the leased asset;
4) The present value of the minimum lease payment on the beginning of the lease does not have many differences
from the fair value of the asset;


On the starting date of the lease, the company takes the lower between the fair value of the leased asset and the
present value of the minimum lease payment as the book value of the leased asset, and the minimum lease
payment as the book value of the long-term payable, and the difference between the fair value of the leased asset
and the present value of the minimum lease payment as the unrecognized financing fee.
25. Construction in progress
The book-entry values of the fixed assets are stated at total expenditures incurred before reaching working

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condition for their intended use. Where a construction in progress reaches the working condition for its intended
use but the final account for completion is not made yet, it shall be transferred into fixed assets from the date
when it reaches the working condition for intended use at the estimated value according to the project budget,
construction price or actual cost, and the depreciation of the said fixed assets shall be accrued according to the
Company's depreciation policies applicable to fixed assets. After the final account for completed project is done,
the Company adjusts the original estimated value of the fixed asset in accordance with the actual cost, but does
not adjust the provision for such depreciation that had been accrued.


26. Borrowing costs
1. Recognition principles of capitalization of borrowing costs
Borrowing costs include interest thereon, amortization of discounts or premiums, ancillary expenses and exchange
differences incurred on account of foreign currency borrowings, etc.


The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; other
borrowing costs should be recognized as costs according to the amount incurred and be included into current
profit and loss.


Assets meeting the capitalization requirements refer to fixed assets, investment properties and inventories, etc.
that need to be purchased, constructed or produced for a long time to be available for intended use or sale.
Borrowing costs may be capitalized only when all the following conditions are met:
(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or the
undertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,
have already been incurred;
(2) Borrowing costs have already been incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the assets for their
intended use or sale have already been started.


2. Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of capitalization,
excluding the period of capitalization suspension of borrowing costs.


Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale.


When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such assets should be ceased.



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When some projects among the acquired and constructed or produced assets eligible for capitalization are
completed and can be used separately, the capitalization of borrowing costs of such projects should be ceased.


3. Period of capitalization suspension
If the acquisition, construction or production activities of assets eligible for capitalization are abnormally
interrupted and such condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible for
capitalization to reach the working conditions for their intended use or sale, the borrowing costs continue to be
capitalized. Borrowing costs incurred during the interruption are recognized as the current profit or loss and
continue to be capitalized until the acquisition, construction or production of the assets restarts.


4. Calculation method of capitalization amount of borrowing costs
As for special borrowings for acquiring, constructing or producing assets eligible for capitalization, borrowing
costs of special borrowings actually incurred in the current period less the interest income from undrawn
borrowings deposited in the bank or investment income from temporary investment should be recognized as the
capitalization amount of borrowing costs.


As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of asset
disbursements of the part of accumulated asset disbursements exceeding special borrowings at end of each month
by the capitalization rate of used general borrowings. The capitalization rate is calculated by weighted average
interest rate of general borrowings.


27. Biological assets


Nil


28. Oil-and-gas assets


Nil


29. Right-of-use assets


Nil


18. Intangible assets




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(1) Valuation method, useful lives and impairment


1)   The Company initially measures intangible assets at cost on acquisition:
The costs of externally purchased intangible assets include purchase prices, relevant taxes and surcharges and
other directly attributable expenditures incurred to prepare the assets for their intended uses. If the payment for an
intangible asset is delayed beyond the normal credit conditions and it is of the financing nature, the cost of the
intangible asset shall be determined on the basis of the present value of the purchase price.


The intangible assets acquired 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 included in the current profit or loss;


When the exchange of non-monetary assets is of commercial nature and the fair value of the assets received or
surrendered assets can be measured reliably, the measurement shall be based on the fair value. If the fair value of
the assets received or surrendered assets can be measured reliably, the fair value of the surrendered assets and
relevant taxes should be paid as the initial investment cost of the intangible assets received, unless there is
conclusive evidence that the fair value of the asset received is more reliable. If the exchange of non-monetary
assets does not have commercial substance, or the fair value of the assets received or surrendered assets cannot be
measured reliably, the book value of the surrendered assets and related taxes should be paid as the initial
investment cost of the intangible assets received.


2)   Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on acquisition.


Intangible assets with definite useful lives shall be amortized with the straight-line method within the period when
the intangible assets generate economic benefits for the Company; if the said period cannot be forecast, the
intangible assets shall be deemed as those with indefinite useful lives and shall not be amortized.


3) Estimate of the useful life of the intangible assets with definite useful lives

     Item        Estimated useful life         Amortization method                                    Basis

Land use right         50 years          Straight-line amortization method Useful life prescribed in the Certificate of Land Use Right


(2) Accounting policy of internal R&D expenditures


31. Long-term assets impairment
For the long-term equity investments, investment properties, fixed assets, construction in progress, intangible
assets, and other long-term assets measured at cost model, if there are signs of impairment, an impairment test will
be conducted on the balance sheet date. If the result of the impairment test shows that the recoverable amount of

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the asset is lower than its book value, the provision for impairment shall be made and included in impairment loss.
The recoverable amount is determined at the higher of the net of the fair value less disposal costs and the present
value of the expected future cash flows. Provision for assets impairment is made on individual asset basis. If it is
difficult to estimate the recoverable amount of the individual asset, the Group shall estimate the recoverable
amount of the asset group that the individual asset belongs to. The asset group is the minimum asset group that
can independently generate the cash inflow.


Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached the usable
state shall be tested for impairment at least at the end of each year.


The Company conducts the goodwill impairment test, and the carrying value of the goodwill formed by the
enterprise merger shall be allocated to the relevant asset group in a reasonable way from the purchase date. If it is
difficult to apportion to the relevant asset group, apportion to the relevant asset group portfolio. When the
Company allocates the book value of goodwill, it allocates the goodwill according to the relative benefits that the
relevant asset group or asset group portfolio can obtain from the synergetic effect of the enterprise merger, and
carries out the goodwill impairment test on this basis.


Goodwill in the relevant asset groups or combination of group assets impairment tests, such as the asset group or
combination of group assets related to goodwill there are signs of impairment, the first does not include the
goodwill of the asset group or combination of group assets impairment test, calculation of recoverable amount,
and compared with the related book value, confirm the corresponding impairment loss. Goodwill to the asset
group or combination of group assets for impairment test, compare the book value of the relevant asset groups or
combination of group assets (including the contribution of the book value of the goodwill) with its recoverable
amount, such as the relevant asset groups or combination of group assets recoverable amount is lower than its
book value, confirm the goodwill impairment loss. The above asset impairment loss shall not be reversed in
subsequent accounting periods once recognized.


32. Long-term deferred expenses
Long-term deferred expenses refer to various expenses which have been already incurred but will be borne in the
reporting period and in the future with an amortization period of over one year.
1. Amortization method
Long-term deferred expenses are amortized evenly over the beneficial period.


2. Amortization years

                                    Item                                               Amortization years

Hotel exterior decoration                                                                   4 years




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Fire stairs renovation                                                                         4 years

Renovation of guest rooms in Building C, Decoration and renovation of Building A               5 years

Villa renovation                                                                               5 years

Swimming pool renovation, Pavement modification projects                                       5 years

Roof waterproofing projects                                                                    5 years


33. Contract liabilities


Nil


34. Employee compensation
(1) Accounting method for short-term compensation
During the accounting period when employees serve the Company, the actual short-term compensation is
recognized as liabilities and included in current profit and loss or costs associated with assets.


The appropriate amount of employee compensation payable will be determined during the accounting period
when the employees provide services for the Company based on the medical insurance, work injury insurance and
maternity insurance and other social insurance and housing fund paid by the Company for employees, as well as
trade union funds and employee education funds withdrawn according to provisions at the accrual basis and
accrual ratio.


The employee benefits in the non-monetary form shall be measured at fair value.


(2)Accounting method for dismissal welfare


1) Defined contribution plans


The Company shall pay the basic endowment insurance and unemployment insurance for the employees
according to the relevant provisions of the local government. During the accounting period when the employees
provide services for the Company, the amount of payment shall be calculated according to the payment base and
proportion stipulated by the local government, which shall be recognized as liabilities and recorded into the
current profit and loss or the cost of related assets.


In addition to the basic endowment insurance, the Company has also established the enterprise annuity payment
system (supplementary endowment insurance)/enterprise annuity plan according to the relevant policies of the
national enterprise annuity system. The Company shall pay the fee to the local social insurance institution/annuity

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plan according to a certain proportion of the employee's total salary, and the corresponding expenses shall be
included in the current profit and loss or related asset cost.


2) Defined benefit plans
According to the formula determined by the law of expected accumulative welfare units, the company will
attribute the welfare obligations generated by the established benefit plan to the period during which the employee
provides services, and record them into the current profit and loss or the cost of related assets.


The deficit or surplus resulting from the present value of the defined benefit plan obligations minus the fair value
of the defined benefit plan assets is recognized as the net liability or net asset of a defined benefit plan. If there is a
surplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan by the
lower of the surplus and the asset ceiling.


All defined benefit plan obligations, including those expected to be paid within 12 months of the end of the
employee's annual reporting period for the provision of services, are discounted by the market rate of return on
Treasury bonds or high-quality corporate bonds in the active market that matches the duration and currency of the
defined benefit plan obligations on the balance sheet date.


The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of the
defined benefit plan are recorded in the current profits and losses or the costs of related assets. The changes
caused by the net liabilities or net assets of the defined benefit plan shall be accounted for in other comprehensive
income, and shall not be transferred back to the profits and losses in the subsequent accounting period. Upon the
termination of the original defined benefit plan, all the parts previously accounted for in other comprehensive
income shall be carried forward to the undistributed profit within the scope of equity.


When establishing the settlement of the benefit plan, the difference between the present value of the obligation of
the established benefit plan and the settlement price determined on the settlement date shall be used to confirm the
settlement gains or losses.


(3) Accounting method for post-employment benefits


The Company pays the basic endowment insurance premiums and unemployment insurance for employees
according to the relevant provisions of the local governments. During the accounting period when employees
serve the Company, the paid amount which is calculated based on the payment base and proportion as stipulated in
the provisions of the local place is recognized as liabilities and included in the current profit or loss or
assets-related assets cost.




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


35. Lease liability


Nil
36. Estimated liabilities
When the Company involves 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, such events are recognized as estimated liabilities.


(1) Recognition criteria of estimated liabilities
When an obligation relating to a contingency meets all the following conditions at the same time, it is recognized
as an estimated liability:
1)    Such obligation is a present obligation of the Company;
2)    The performance of this obligation may very probably lead to the flow of economic interests out of the
Company; and
3)    The amount of the obligation can be measured reliably.


(2) Measurement method of estimated liabilities
Estimated liabilities of the Company are initially measured as the best estimate of expenses required for the
performance of the relevant present obligations.


When determining the best estimates, the Company comprehensively considers the risks, uncertainties, time value
of money, and other factors relating to the contingencies. If the time value of money is significant, the best
estimates will be determined after discount of relevant future cash outflows.


The best estimates shall be treated 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 should 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 although such a range exists, in case that the contingency involves a single
item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more
items, the best estimates should be determined according to all the possible outcomes with their relevant
probabilities.




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When all or part of the expenses necessary for the settlement of estimated liabilities of the Company are expected
to be compensated by a third party, the compensation shall be separately recognized as an asset only when it is
virtually certain to be received. The compensation recognized shall not exceed the book value of the estimated
liabilities.


37. Share-based payment


Nil


38. Other financial instrument as preferred stock and perpetual bond etc.


Nil


39. Revenue
Accounting policies used for revenue recognition and measurement
(1) Recognition and measurement principles for revenue from sale of goods
1)    Revenue from sales of goods is recognized when the Company has transferred to the buyer the significant
risks and rewards of ownership of the goods.
2)    The Company retains neither continuous management rights associated with ownership of the goods sold nor
effective control over the goods sold.
3) The relevant amount of income can be measured reliably.
4) It is highly likely that the economic benefits associated with the transaction will flow into the Company.
5) And the relevant amount of cost incurred or to be incurred can be measured reliably.


(2) Recognition criteria of revenue from sale of goods of the Company and specific judgment criteria of
recognition time


In the provision of hotel housing services at the same time, the Company provides goods to customers and will
prepare daily sales list after confirming with the Rooms Department and the hotel front desk. Based on the sales
list, the finance department confirms that the major risks and rewards of ownership of the goods have been
transferred to the customer and then the sales revenue is recognized.


(3) Recognition and measurement principles of revenue from rendering of service
1)    For the hotel rooms, catering (breakfast) and other services to be provided by the Company, after they are
provided, and the Company checks with the sales department and the front check, the Company will prepare the
daily sales reports and accounts receivable list to the finance department, which will review the same, after which,
the revenue will be recognized.


2)    For the revenue from restaurants and venues contracted out, they will be recognized in accordance with the

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period stipulated in the contract or agreement and the collection timing.


(4) Recognition of revenue from transferring use right of assets
When the economic benefits relating to the transactions is possible to flow into the Company and the amount of
revenue can be measured reliably, revenues should be recognized. Revenues from transfer of right to use assets are
recognized under the following circumstances:
1)   Interest income is determined based on the time when the monetary funds are lent and the effective rate.
2)   The amount of revenues from usage is determined based on the charging time and method as agreed in
relevant contract or agreement.
Differences in revenue recognition accounting policies caused by different business models of similar businesses


40. Government grants
(1) Type
Government grants refer to the monetary or non-monetary assets obtained by the Company from the government
for free. Government grants are divided into asset-related government grants and income-related government
grants.


Asset-related government grants refer to government grants obtained by the Company for forming long-term
assets by acquisition, construction or other manners. Income-related government grants refer to government grants
excluding the asset-related government grants.


(2) Recognition time and measurement
Government grants can be recognized when simultaneously meeting the following conditions:
1)   The enterprise can meet conditions attached to government grants; and
2)   The enterprise can receive government grants.
If a government grant is a monetary asset, it shall be measured at the amount received or receivable. Government
grants shall be measured at receivables when there is strong evidence at the end of the period that such grants
comply with the relevant conditions prescribed by the financial support policies and the financial support funds
are expected to be received. Other financial grants shall be confirmed according to the amount of money received.


If government grants are non-monetary assets, they shall be measured at its fair value; and if the fair value cannot
be obtained in a reliable way, they shall be measured at a nominal amount.


(3) Accounting treatment
Asset-related government grants shall be used to offset the book value of relevant assets or recognized as deferred
income. If asset-related government grants are recognized as deferred income, they shall be included in profit or
loss by stages by a reasonable and systematic method within the useful lives of relevant assets. (Any government
grant related to the daily activities of an enterprise shall be included into other income in accordance with the

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business nature. Government grants unrelated to the daily activities of enterprises shall be recorded as
non-operating revenues and expenditures.)


For government grants associated with income that are used to recover relevant costs or losses of the enterprise in
subsequent period are recognized as deferred income and included in the current profit or loss when relevant costs
or losses are recognized. (Any government grant related to the daily activities of an enterprise shall be included
into other income in accordance with the business nature. Government grants unrelated to the daily activities of
enterprises shall be recorded as non-operating revenues and expenditures.) If government grants related to income
are used to compensate the relevant costs and losses that have occurred, such government grants should be
directly included in the current profit or loss. (Any government grant related to the daily activities of an enterprise
shall be included into other income in accordance with the business nature. Government grants unrelated to the
daily activities of enterprises shall be recorded as non-operating revenues and expenditures.)


The discount interest of preferential policy loans obtained by the Company shall be divided into the following two
cases for accounting treatment:


1) If the finance department allocates the discount interest fund to the lending bank, and the lending bank provides
the loan to the Company at the preferential policy interest rate, the Company shall take the actual amount of the
loan received as the book value of the loan, and calculate the relevant borrowing costs according to the loan
principal and the preferential policy interest rate.


2) If the finance department directly allocates the discount interest funds to the Company, the Company shall
deduct the corresponding discount interest from the relevant borrowing costs.


41. Deferred tax assets and deferred tax liabilities
Deferred tax assets are recognized for deductible temporary differences to the extent that it shall not exceed the
taxable income probably obtained in future period that can be used for deducting the deductible temporary
differences.


Taxable temporary differences are recognized as deferred tax liabilities in addition to 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.


When the Company has the statutory right to do settlement with the net amounts, and has the intention to do so or
the recovery of assets and the settlement of liabilities are achieved simultaneously, the Company shall present its

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current income tax assets and current income tax liabilities at the net amounts as the result of one offsetting
another.


When the Company has the legal rights to balance income tax assets and income tax liabilities for the current
period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the
income tax which are imposed on the same taxpaying subject by the same tax collection authority or on different
taxpaying subjects, but, in each important future period in connection with the reverse of deferred income tax
assets and liabilities, the involved taxpaying subject intends to balance income tax assets and liabilities for the
current period with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax
assets and deferred income tax liabilities shall be presented based on the net amount after offset.


42. Lease
(1) Accounting treatment of operating lease
1) The rental fees paid for the asset leased by the Company will be amortized over the entire lease term without
deducting rent-free period according to the straight-line method and included in the expenses for the current
period. The initial direct costs related to the lease transactions paid by the Company are included in the current
expenses.


When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term and include them in
current expenses.


2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the
whole lease period including rent-free period, and shall be recognized as lease income. Initial direct costs relating
to lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts are
significant, they shall be capitalized and included in the current income on the same basis as the recognition of
lease income.


When the Company bears costs related to the lease borne by the leasee, the Company shall deduct the part of
expenses from the total rents and amortize the rents after deduction over the lease term.


(2) Accounting treatment of finance lease
1) Financial leased assets: on the start date of leasing, the Company takes the lower of the fair value of the leased
assets and the present value of the minimum lease payment as the book value of the leased assets, takes the
minimum lease payment as the book value of the long-term payable, and the difference as the unrecognized
financing expenses. The Company adopts the effective interest rate method to amortize the unrecognized
financing expenses during the lease period and record them into financial expenses. The initial direct expenses
incurred by the Company shall be included in the value of the leased assets.

                                                         83
     司公限有份股心中游旅海东大南海                                                      2020   文全告报度年半年
2) Financial leasing assets: the Company shall, at the beginning of the lease, recognize the difference between the
sum of the receivable financial leasing payments, the unsecured residual value and its present value as unrealized
financing income, which shall be recognized as lease income within the period of receiving the rent in the future.
The initial direct expenses incurred by the company in connection with the lease transaction shall be included in
the initial measurement of the finance lease receivable and shall reduce the amount of income recognized during
the lease term.


43. Other significant accounting policies and accounting estimates
Termination of business is a separately identifiable component that meets one of the following conditions and has
been disposed of by the Company or placed by the Company as a holding for sale:
(1) The component represents a separate principal business or a separate principal area of business.
(2) The component is part of a related plan to dispose of a separate principal business or a separate principal area
of business.
(3) The component is a subsidiary acquired exclusively for resale.


44. Changes in significant accounting policies and accounting estimates
(1) Changes in accounting policies



□Applicable √Not applicable

(2) Changes in accounting estimates


□Applicable √Not applicable

(3)Adjustment on relevant items of the statement at beginning of the year when initially implemented the
new revenue standard and new lease standard since 2020

(3) The first implementation of the new revenue standard and the adjustment of the new lease standard
from 2020 on the first implementation of the financial statement related items at the beginning of the year

Not applicable

(4) Explanation of the retroactive adjustment on preliminary comparative data when implemented the new
revenue standard and new lease standard initially since 2020

□Applicable √Not applicable




                                                        84
           司公限有份股心中游旅海东大南海                                                                         2020   文全告报度年半年
     45. Other

     VI. Taxation

     1. Major tax types and tax rates applicable to the Company


         Taxes                                       Basis for tax assessment                                            Tax rate

                              Output VAT is calculated based on taxable sales revenue and service
                              revenue calculated in accordance with tax laws and VAT payable or
Value added tax (VAT)                                                                                   5% 6% 10% 9% 16% 13%
                                                                                                          、 、 、 、 、
                              taxable sales revenue shall be the difference after deducting the input
                              VAT deductible in the same period
Consumption tax                                                                                         7%

Urban maintenance and
                              Levied based on VAT payable                                               25% 20%
                                                                                                             、
construction tax

Enterprise income tax         Levied based on the taxable income                                        25% 20%
                                                                                                             、
Education surtax              Levied based on VAT payable                                               3%

Local education surtax        Levied based on VAT payable                                               2%

                              Remaining value after deducting 30% from the original value of the
                                                                                                        1.2% or 12%
Housing property tax          house (including the occupied land price), and rent revenue

Land use tax                  Land area                                                                 18yuan/ m2

     Disclose reasons for different taxpaying body: Nil


     2. Tax preference: nil

     3. Other: nil

     VII. Notes to the main items of the financial statements

     1. Monetary funds

                                                                                                                                     In RMB/CNY

                         Item                                     Ending balance                             Beginning balance


      Cash on hand                                                                 149,010.82                                        302,077.12


      Bank deposits                                                             17,683,622.39                                       7,120,862.77


      Total                                                                     17,832,633.21                                       7,422,939.89

     Other explanation: nil




                                                                         85
      司公限有份股心中游旅海东大南海                                                                             2020   文全告报度年半年
2. Trading securities: nil

3. Derivative financial assets: nil

4. Note receivable: nil


5. Accounts receivable

(1) Disclosure of account receivables by category

                                                                                                                                   In RMB/CNY
                                            Ending balance                                             Beginning balance
                                                  Provision for bad                                         Provision for bad
                             Book balance                                               Book balance
         Category                                          debt                Book                                 debt                Book
                         Amoun      Proport     Amoun        Provision         value   Amou    Proport    Amoun          Provision      value
                              t       ion           t             ratio                 nt      ion          t             ratio

 Including:

 Accounts
 receivable with
                          204,91    100.00        109,76                       95,15   420,8   100.00      109,76                      311,08
 provision for bad                                                53.57%                                                   26.08%
                             9.84           %       5.83                        4.01   49.75          %      5.83                         3.92
 debts based on
 portfolios

 Including:

                          204,91    100.00        109,76                       95,15   420,8   100.00      109,76                      311,08
 Total                                                            53.57%                                                   26.08%
                             9.84           %       5.83                        4.01   49.75          %      5.83                         3.92

Provision for bad debts based on single item: nil
Provision for bad debt based on portfolios: nil
A description of the basis for determining the portfolio: nil
If the bad debt provision of an account receivable is withdrawn according to the general model of expected credit loss, please refer to
the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□ Applicable   √ Not applicable
Released by account age
                                                                                                                                   In RMB/CNY

                             Account age                                                          Book balance

 Within 1 year (inclusive)                                                                                                         111,851.84

 1-2 years                                                                                                                            2,259.00

 2-3 years                                                                                                                             566.00

 Over 3 years                                                                                                                        90,243.00

 3-4 years                                                                                                                             785.00



                                                                          86
      司公限有份股心中游旅海东大南海                                                                         2020   文全告报度年半年
 4-5 years                                                                                                                     18,633.00

    Over 5 years                                                                                                               70,825.00

 Total                                                                                                                        204,919.84


(2) Provision, reversal or recovery of provision for bad debts in the period: nil

(3) Account receivable actually charge off in the period: nil

(4)Top five accounts receivable in terms of ending balance collected by the debtor

                                                                                                                             In RMB/CNY

                                           Ending balance of           Proportion in the total accounts         Ending balance of the
             Name of entity
                                           account receivable             receivable at period-end                  bad debt provision

 Shanghai Hecheng International
                                                     63,857.66                                    31.16%                        3,558.30
 Travel Service Co., Ltd.

 Guangzhou Design Institute                          38,980.00                                    19.02%                       38,980.00

 Tianjin Watermelon Tourism Limited
                                                     22,516.62                                    10.99%                        3,566.61
 Liability Company

 Yangpu Huayu Road & Bridge
                                                     18,633.00                                       9.09%                      9,316.50
 Technology Co., Ltd.

 China International Travel Service
                                                     13,540.20                                       6.61%                     13,540.00
 (Beijing)

 Total                                             157,527.48                                     76.87%


(5)Account receivable that are terminated due to financial assets transfer: nil

(6)Assets and liabilities resulted by account receivable transfer and continues involvement: nil

6. Receivable financing: nil

Variation and fair value changes on receivable financing in the period:
□ Applicable √ Not applicable


If the provision for impairment of receivable financing is withdrawn according to the general model of expected credit loss, please
refer to the disclosure method of other receivables to disclose the relevant information of impairment provision:


□ Applicable √ Not applicable
Other description: nil




                                                                  87
      司公限有份股心中游旅海东大南海                                                                      2020   文全告报度年半年
7. Advance payment: nil

(1) Disclosure of advance payment by account age: nil

(2) Top five advances payment in terms of the ending balance collected by the prepaid object: nil

8. Other receivable

                                                                                                                         In RMB/CNY

                     Item                               Ending balance                                Beginning balance

 Other receivable                                                        385,492.93                                       571,744.52

 Total                                                                   385,492.93                                       571,744.52


(1)Interest receivable: Nil

(2)Dividend receivable: Nil

(3)Other account receivables

1) Other account receivable disclosed by nature

                                                                                                                         In RMB/CNY

                      Nature                            Ending book balance                         Opening book balance

 Utility bills                                                           130,643.99                                        76,534.42

 Petty cash                                                              169,993.97                                       394,313.63

 Social insurance and housing provident funds                             45,784.79                                        61,826.29

 Deposit                                                                       600.00                                        600.00

 Litigation fee                                                           68,562.00                                        68,562.00

 Total                                                                   415,584.75                                       601,836.34


2) Provision for bad debt:

                                                                                                                         In RMB/CNY

                                      First stage            Second stage                       Third stage

                                                        Expected credit loss for        Expected credit loss for the
     Provision for bad debt      Expected credit loss                                                                       Total
                                                        the whole duration (no            whole duration (credit
                                  in next 12 months
                                                          credit impairment)            impairment has occurred)

 Balance as at 1 Jan. 2020                 30,091.82                                                                       30,091.82

 Balance as at January 1. 2020
                                        ——                     ——                              ——                     ——
 in current period


                                                              88
      司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年半年
 Balance as at 30 June 2020                    30,091.82                                                              30,091.82

Change of the book balance for major amount changed in loss provision
□ Applicable √ Not applicable
Released by account age
                                                                                                                     In RMB/CNY

                             Account age                                                    Book balance

 Within 1 year (inclusive)                                                                                           413,348.75

 Over 3 years                                                                                                           2,236.00

    Over 5 years                                                                                                        2,236.00

 Total                                                                                                               415,584.75


3) Provision, reversal or recovery of provision for bad debts in the period

Provision for bad debt in the period
                                                                                                                     In RMB/CNY

                                                             Amount changed in the period
                        Beginning
     Category                                                Reversal or                                         Ending balance
                          balance             Accrual                          Write-off            Other
                                                            switch-back

 Other
                             30,091.82                                                                                30,091.82
 receivables

         Total               30,091.82                                                                                30,091.82

Including major amount reversal or switch-back in the period: nil


4) Other receivables actually charge off in the period: nil

5) Top five other accounts receivable in terms of ending balance collected by the debtor

                                                                                                                     In RMB/CNY

                                                                                                                   Ending balance of
                                                Ending                     Proportion in total amount of other
     Name of entity               Nature                   Account age                                               the bad debt
                                               balance                     accounts receivable at period-end
                                                                                                                       provision

 Bright moon pavilion                                      Within 1
                              Utility bills    87,323.92                                                21.01%              3,356.74
 music restaurant                                          year

 Sanya suburban               Litigation                   Within 1
                                               68,562.00                                                16.50%              3,428.10
 people's court               fee                          year

 Personal social              Advance                      Within 1
                                               45,784.79                                                11.02%              2,468.92
 insurance premium            payment                      year

 Guo Yubo                     Petty cash       38,300.26   Within 1                                      9.22%              4,718.33


                                                                    89
        司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年半年
                                                           year

                                                           Within 1
 Chen Gang               Petty cash         34,340.20                                                     8.26%                3,949.84
                                                           year

 Total                          --        274,311.17              --                                     66.01%               17,921.93


6) Account receivables related to government subsidies: nil

7) Other receivable for termination of confirmation due to the transfer of financial assets: nil

8) The amount of assets and liabilities that are transferred other receivable and continued to be involved: nil

9. Inventories

Whether the new revenue standards been implemented
No

(1) Classification of inventories
                                                                                                                        In RMB/CNY

                                        Ending balance                                        Beginning balance

                                        Provision for                                            Provision for
                                          inventory                                                inventory
                                        depreciation or                                         depreciation or
         Item            Book
                                         provision for        Book value       Book balance      provision for         Book value
                        balance
                                        impairment of                                            impairment of
                                           contract                                                 contract
                                      performance costs                                        performance costs

 Raw materials         529,861.78            310,465.94           219,395.84     843,199.89             615,322.99      227,876.90

 Commodity stocks       22,771.38              11,102.41           11,668.97      22,771.38              11,102.41       11,668.97

 Fuel                   26,396.20                                  26,396.20      14,711.32                              14,711.32

 Total                 579,029.36            321,568.35           257,461.01     880,682.59             626,425.40      254,257.19


(2)Provision for inventory depreciation or provision for impairment of contract performance costs

                                                                                                                        In RMB/CNY

                                                 Current increase                    Current decrease
                         Beginning
          Item                                                                 Reversal or                           Ending balance
                          balance            Accrual               Other                            Other
                                                                                write-off

 Raw materials             615,322.99                                            304,857.05                              310,465.94

 Commodity stocks           11,102.41                                                                                     11,102.41

 Total                     626,425.40                                            304,857.05                              321,568.35



                                                                   90
      司公限有份股心中游旅海东大南海                                                 2020   文全告报度年半年
(3) Explanation on capitalization of borrowing costs at ending balance of inventory: nil

(4) Explanation on amortized amount of contract performance cost in current period: nil

10. Contract assets: nil

11. Assets held for sale: nil

12. Non-current assets maturing within one year: nil

13. Other current assets

                                                                                                    In RMB/CNY

                         Item                     Ending balance                   Beginning balance

 Prepaid enterprise income tax                               1,702,702.80                          1,702,702.80


 Prepaid individual income tax                                      2,837.74                             4,778.06

 VAT input tax to be deducted                                1,209,125.14                              808,143.62

 Prepaid for newspaper, insurance, etc.                            36,844.01                            56,413.98


 Others                                                                                                  2,404.11

 Total                                                       2,951,509.69                          2,574,442.57

Other description: nil




                                                       91
      司公限有份股心中游旅海东大南海                                                        2020   文全告报度年半年
14. Creditors investment: nil

15. Other creditors investment: nil

16. Long-term account receivable

(1) Long-term accounts receivable: nil

(2) Long-term receivables derecognized due to the transfer of financial assets: nil

(3) The amount of assets and liabilities formed by the transfer of long-term receivables and continued
involvement: nil

17. Long-term equity investment: nil

18. Investment in other equity instrument: nil

19. Other non-current financial assets: nil

20. Investment properties

(1)Investment properties measured at cost

√Applicable □ Not applicable
                                                                                                           In RMB/CNY

                                               Buildings and                       Construction in
                          Item                                   Land use rights                           Total
                                               constructions                          process

 I. Original book value

      1.Beginning balance                        18,856,504.44     5,662,740.59                          24,519,245.03

      2.Current increase

      (1)Purchase

      (2)Transfer from inventories/fixed
 assets/construction in progress

      (3)Increase from business combinations



      3.Current decrease

      (1)Disposal

      (2)Other transfer-out



      4.Ending balance                           18,856,504.44     5,662,740.59                          24,519,245.03



                                                        92
      司公限有份股心中游旅海东大南海                                              2020   文全告报度年半年
 II. Accumulated depreciation and accumulated
 amortization

      1.Beginning balance                       11,025,767.10    2,276,066.45                  13,301,833.55

      2.Current increase                           214,142.78        28,170.00                   242,312.78

      (1)Provision or amortization                 214,142.78        28,170.00                   242,312.78



      3.Current decrease

      (1)Disposal

      (2)Other transfer-out



      4.Ending balance                          11,239,909.88    2,304,236.45                  13,544,146.33

 III. Provision for impairment

      1.Beginning balance                        1,404,400.47    1,903,054.14                   3,307,454.61

      2.Current increase

      (1) Provision



      3. Current decrease

      (1)Disposal

      (2)Other transfer-out



      4.Ending balance                           1,404,400.47    1,903,054.14                   3,307,454.61

 IV. Book value

      1.Ending book value                        6,212,194.09    1,455,450.00                   7,667,644.09

      2.Opening book value                       6,426,336.87    1,483,620.00                   7,909,956.87


(2)Investment real estate measured by fair value

□ Applicable √ Not applicable


(3)Investment real estate without property certification held: nil

21. Fixed assets

                                                                                                 In RMB/CNY

                           Item                         Ending balance            Beginning balance

                                                                  33,463,950.05                35,075,195.98
 Fixed assets


                                                       93
      司公限有份股心中游旅海东大南海                                                               2020   文全告报度年半年
 Total                                                                        33,463,950.05                     35,075,195.98


(1)Fixed assets

                                                                                                                  In RMB/CNY

                               Houses and      Mechanical     Transportatio       Electronic      Other
            Item                                                                                                    Total
                                buildings      equipment      n equipment         equipment     equipment
I. Original book value   :
  1.Beginning balance         136,789,501.82   9,613,076.54   2,130,663.57       2,266,121.24   3,125,353.67    153,924,716.84

  2.Current increase                                                                44,530.33                        44,530.33

     (1) Purchase                                                                   44,530.33                        44,530.33

     (2)Transfer from
construction in progress

     (3)Increase from
business combinations


  3.Current decrease                                            388,598.00                                          388,598.00

     (1)Disposal or
                                                                388,598.00                                          388,598.00
write-off


  4.Ending balance            136,789,501.82   9,613,076.54   1,742,065.57       2,310,651.57   3,125,353.67    153,580,649.17

II. Accumulated
amortization

  1.Beginning balance          74,674,779.38   7,248,649.94   1,498,327.87       1,526,121.21   1,263,700.50     86,211,578.90

  2.Current increase            1,087,717.44    143,528.88         77,827.21       108,069.51    219,203.70       1,636,346.74

     (1) Provision              1,087,717.44    143,528.88         77,827.21       108,069.51    219,203.70       1,636,346.74


  3.Current decrease                                            369,168.48                                          369,168.48

     (1)Disposal or
                                                                369,168.48                                          369,168.48
write-off


  4.Ending balance             75,762,496.82   7,392,178.82   1,206,986.60       1,634,190.72   1,482,904.20     87,478,757.16

III. Provision for
impairment

  1.Beginning balance          31,072,788.17   1,565,153.79                                                      32,637,941.96

  2.Current increase

     (1) Provision




                                                              94
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年半年
  3.Current decrease

     (1)Disposal or
write-off


  4.Ending balance            31,072,788.17     1,565,153.79                                                          32,637,941.96

IV. Book value

  1.Ending book value         29,954,216.83      655,743.93       535,078.97       676,460.85        1,642,449.47     33,463,950.05

  2.Opening book value        31,041,934.27      799,272.81       632,335.70       740,000.03        1,861,653.17     35,075,195.98


(2) Temporarily idle fixed assets: nil

(3) Fixed assets acquired by financing lease: nil

(4) Fixed assets acquired by operating lease: nil

(5) Certificate of title un-completed: nil

(6) Disposal of fixed assets: nil

22. Construction in process

                                                                                                                       In RMB/CNY

                      Item                               Ending balance                              Beginning balance

 Construction in process                                                 4,074,092.55                                    488,522.10

 Total                                                                   4,074,092.55                                    488,522.10


(1)Construction in process

                                                                                                                       In RMB/CNY

                                                Ending balance                                    Beginning balance
              Item
                                Book balance       Provision      Book value       Book balance        Provision      Book value


 Staff dormitory renovation
                                                                                        348,873.78                       348,873.78
 project

 Central air-conditioning

 system and hot water
                                   139,648.32                         139,648.32        139,648.32                       139,648.32
 system comprehensive

 renovation




                                                                 95
          司公限有份股心中游旅海东大南海                                                                        2020   文全告报度年半年
     Renovation of guest rooms
                                      3,934,444.23                    3,934,444.23
     in Building-B

     Total                            4,074,092.55                    4,074,092.55            488,522.10                       488,522.10

   (2) Change of important projects under construction in the period
                                                                                                                               In RMB/CNY

                                                                                  Propor
                                                 Amou                                                 Accu       Includin
                                                                                  tion of
                                                      nt    Other                                     mulate           g:     Capitaliz
                                                                                  accum
                              Begi               transfe    amoun                                       d        capitaliz   ation rate
                                                                      Endin       ulative    Projec
                               nnin                  rred     t                                       capital      ation       of the
                                      Current                             g       projec       t                                          Sources
 Project name        Budget      g                   into   reduct                                    ization     amount      interest
                                      increase                       balanc          t       progre                                       of funds
                               bala              fixed      ion in
                                                                          e       invest       ss     amoun       of the       in the
                               nce               assets      the
                                                                                  ments                t of       interest     period
                                                 in the     period
                                                                                  in the              interes     in the        (%)
                                                 period
                                                                                  budget                   t      period

Renovation of                                                                                                                             Financia
                                                                      3,934,
                   12,000,0           3,934,44                                     32.79                                                  l
guest rooms in                                                        444.2                  40%
                      00.00               4.23                                           %                                                institutio
Building-B                                                                    3
                                                                                                                                          n loans

Central
air-conditioning
                               139,
system and hot                                                        139,6
                               648.                                                                                                       Other
water system                                                          48.32
                                 32
comprehensive
renovation

Staff dormitory                348,
renovation                     873.                                                          100%                                         Other
                                 78
project

Staff dormitory                488,                                   4,074,
                   12,000,0           3,934,44
renovation                     522.                                   092.5         --         --                                             --
                      00.00               4.23
                                 10                                           5
project


   (3)Provision for impairment of construction in progress in the period: nil

   (4)Engineering material: nil

   23. Productive biological asset

   (1)Measured by cost

   □ Applicable √ Not applicable


                                                                     96
      司公限有份股心中游旅海东大南海                                                     2020    文全告报度年半年
(2)Measured by fair value

□ Applicable √ Not applicable


24. Oil and gas assets

□ Applicable √ Not applicable


25. Right-of-use assets : nil

26. Intangible assets

(1)Intangible assets

                                                                                                         In RMB/CNY

                                                                                    Non-patents
                         Item                     Land use rights    Patent right                         Total
                                                                                    technology

 I. Original book value

      1.Beginning balance                            81,653,137.15                                     81,653,137.15

      2.Current increase

         (1) Purchase

         (2)Internal research and development

         (3)Increase from business combinations


    3.Current decrease

         (1)Disposal


      4.Ending balance                               81,653,137.15                                     81,653,137.15

 II. Accumulated amortization

      1.Beginning balance                            32,819,438.43                                     32,819,438.43

      2.Current increase                                401,142.58                                       401,142.58

         (1) Provision                                  401,142.58                                       401,142.58


      3.Current decrease

         (1)Disposal


      4.Ending balance                               33,220,581.01                                     33,220,581.01

 III. Provision for impairment

      1.Beginning balance                            27,440,836.84                                     27,440,836.84


                                                            97
      司公限有份股心中游旅海东大南海                                                          2020   文全告报度年半年
      2.Current increase

         (1) Provision


      3.Current decrease

      (1)Disposal


      4.Ending balance                                27,440,836.84                                        27,440,836.84

 IV. Book value

      1.Ending book value                             20,991,719.30                                        20,991,719.30

      2.Opening book value                            21,392,861.88                                        21,392,861.88


(2) Land use rights without certificate of ownership: nil

27. Development expenditure: nil

28. Goodwill: nil

29. Long-term deferred expenses

                                                                                                              In RMB/CNY

                                       Beginning           Increase in    Amortization in   Amount of other
                  Item                                                                                         Ending balance
                                        balance              period           period           decreases


 Reconstruction of fire-fighting
                                         28,559.56                               8,567.82                           19,991.74
 stairway

 Swimming pool reconstruction           164,977.48                             29,995.90                           134,981.58


 Reconstruction of guest rooms in
                                        528,951.38                             96,172.96                           432,778.42
 Building C

 Villa reconstruction                   963,555.84                            175,191.94                           788,363.90


 Building A renovation project         9,028,874.38                           934,021.50                         8,094,852.88


 Pavement modification project          435,168.94                             45,017.46                           390,151.48


 Roof waterproofing project             370,091.75                             37,009.20                           333,082.55

 Staff dormitory renovation project                          657,722.26        54,810.19                           602,912.07
 Total                                11,520,179.33          657,722.26     1,380,786.97                        10,797,114.62

Other description: nil




                                                            98
     司公限有份股心中游旅海东大南海                                                  2020   文全告报度年半年
30. Deferred income tax assets and deferred income tax liabilities: nil

31. Other non-current assets: nil

32. Short-term loans: nil

33. Trading financial liability: nil

34. Derivative financial liability: nil

35. Notes payable: nil

36. Accounts payable

(1)Presentation of accounts payable

                                                                                                    In RMB/CNY

                          Item                         Ending balance               Beginning balance


 Payment for purchase                                               310,395.42                         947,770.85


 Accounts payable provisionally estimated                             57,041.13                        191,232.86


 Service charges                                                                                        84,838.93


 Payment for projects                                                 14,274.10                         14,274.10


 Elevator maintenance fee                                                                                7,200.00


 Consignment sales                                                      1,093.00                         1,093.00


 Others                                                                                                  4,000.01

 Total                                                              382,803.65                     1,250,409.75


(2)Significant accounts payable with aging over one year: nil

37. Advance from customers

(1) Presentation of advances from customers

                                                                                                    In RMB/CNY

                   Item                          Ending balance                    Beginning balance

 Room and meal fees                                               791,258.55                           786,715.42

 Total                                                            791,258.55                           786,715.42




                                                       99
      司公限有份股心中游旅海东大南海                                                              2020   文全告报度年半年
(2)Significant advances from customers with aging over one year

                                                                                                                 In RMB/CNY

                                                                                           Reasons for repayment failure or
                                Item                                 Ending balance
                                                                                                     carry-forward

 PEGAS      Zheng Qingbo                                                     32,243.02    Unsettlement

 Hainan Xiangyuan Tourism Development Co., Ltd.                              28,131.00    Unsettlement

 Hainan Qiongzhong Ecological Investment Guarantee Co. LTD                   21,950.00    Unsettlement

 Ren Kaiyu                                                                    9,774.00    Unsettlement

 Hainan Chenda International Travel Service Co. LTD                           8,779.00    Unsettlement

 Total                                                                      100,877.02                     --

Other notes: nil


38. Contractual liability: nil

39. Employee compensation payable

(1) Presentation of employee compensation payable

                                                                                                                 In RMB/CNY

                                       Beginning
                 Item                                 Increase in Period     Decrease in Period           Ending balance
                                        balance

 I. Short-term compensation            2,552,996.37         5,027,987.58              5,745,681.48              1,835,302.47

 II. Post-employment benefits -
                                                              107,744.29               107,744.29
 defined contribution plans
 Total                                 2,552,996.37         5,135,731.87              5,853,425.77              1,835,302.47


(2)Presentation of short-term compensation

                                                                                                                 In RMB/CNY

                                        Beginning
                   Item                               Increase in Period     Decrease in Period           Ending balance
                                         balance

 1. Salaries, bonuses, allowances
                                       1,434,454.59         3,941,069.64              4,687,425.30               688,098.93
 and subsidies

 2. Employee welfare expenses                                 710,453.21               710,453.21


 3. Social insurance premiums                                 150,036.03               150,036.03

                                                              149,197.23               149,197.23
 Including: medical insurance



                                                            100
      司公限有份股心中游旅海东大南海