大东海B:2020年年度报告(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.




               Annual Report 2020



                       Disclosure Date: 24 April 2021
      司公限有份股心中游旅海东大南海                                                                          2020   文全告报度年年
              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 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

Section I Important Notice, Content and Interpretation....................................................................... 4
Section II Company Profile and Main Financial Indexes.................................................................... 4
Section III Summary of Company Business........................................................................................ 9
Section IV Discussion and Analysis of Operation..............................................................................11
Section V Important Events................................................................................................................23
Section VI Particular about Changes in shares and shareholders.......................................................34
Section VII Preferred Stock................................................................................................................42
Section VIII Convertible Bonds......................................................................................................... 43
Section IX Particulars about Directors, Supervisors, Senior Executives and Employees................. 44
Section X Corporate Governance.......................................................................................................53
Section XI Corporate Bond................................................................................................................ 60
Section XII Financial Report..............................................................................................................61
Section XIII Documents available for reference.............................................................................. 174


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

                                                 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

 Rules of Listing                         Refers to   Rules Governing the Listing of stocks on Shenzhen Stock Exchange

 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)
 Board of Directors (BOD)                 Refers to
                                                      Co., Ltd.

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

 Luoniushan, the largest shareholder      Refers to   Luoniushan Co., Ltd.

 Yuan                                     Refers to   CNY/RMB

 In the reporting period, the reporting
                                          Refers to   1 January 2020 to 31 December 2020
 period




                                              Major Risk Warning
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.
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 2021, 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   文全告报度年年

                Section II Company Profile and Main Financial Indexes

I. Company information

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

 Short form of the Stock
                              N/A
 after changed

 Stock exchange for listing   Shenzhen Stock Exchange

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

 Foreign name of short form
                              DADONGHA
 of the Company

 Legal representative         Yuan Xiaoping

 Registrations add.           Dadonghai Sanya

 Code for registrations add   572021

 Offices add.                 Dadonghai Sanya

 Codes for office add.        572021

 Company website              ——

 Email                        hnddhhn@21cn.com


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




                                                            4
     司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年年
III. Information disclosure and preparation place

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

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

 Preparation place for annual report                     Security department of the Company


IV. Registration changes of the Company

 Organization code                            Unified social credit code 91460000201357188U

 Changes of main business since listing       No changes

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


V. Other relevant information

CPA engaged by the Company

 Name of CPA                           BDO Shu Lun Pan Certified Public Accountants LLP

 Offices add. for CPA                  4/F, No. 61 Nanjing Rd. (E), Shanghai

 Signing Accountants                   Li Jinhua, Zhu Meirong

                                                                  5
      司公限有份股心中游旅海东大南海                                                                               2020   文全告报度年年
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable      √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable      √ Not applicable


VI. Main accounting data and financial indexes

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

                                                                                             Changes over last year
                                                   2020                    2019                                                 2018
                                                                                                     (+,-)

 Operating income (RMB)                         15,511,989.37             25,935,405.44                      -40.19%           29,515,592.33

 Net profit attributable to shareholders
                                                -11,567,888.97              756,721.46                  -1,628.69%                 653,282.19
 of the listed company (RMB)

 Net profit attributable to shareholders
 of the listed company after deducting
                                                -12,134,958.36            -1,078,091.71                 -1,025.60%                 816,346.09
 non-recurring      gains    and       losses
 (RMB)

 Net cash flow arising from operating
                                                 -6,729,267.98             4,713,661.51                    -242.76%             6,783,893.26
 activities (RMB)

 Basic         earnings     per        share
                                                      -0.0318                     0.0021                -1,614.29%                     0.0018
 (RMB/Share)

 Diluted        earnings    per        share
                                                      -0.0318                     0.0021                -1,614.29%                     0.0018
 (RMB/Share)

 Weighted average ROE                                 -15.91%                     0.97%                      -16.88%                   0.84%

                                                Year-end of                                   Changes over end of
                                                                  Year-end of 2019                                         Year-end of 2018
                                                   2020                                          last year (+,-)

 Total assets (RMB)                             97,441,339.20             87,521,184.25                      11.33%            88,197,118.07

 Net assets attributable to shareholder
                                                66,918,714.99             78,486,603.96                      -14.74%           77,788,696.29
 of listed company (RMB)

The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years is
negative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a going
concern
□Yes √No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
√Yes □ No

                 Item                              2020                              2019                                   Note

                                                                                                             Catering and accommodation
 Operating income (RMB)                               15,511,989.37                        25,935,405.44
                                                                                                              industry


                                                                      6
      司公限有份股心中游旅海东大南海                                                                                2020   文全告报度年年
 Amount        deducted      from
                                                         2,118,095.25                         3,153,028.62       Income from leasing
 operating income (RMB)

 Operating      income       after                                                                               Income    from    catering   and
                                                    13,393,894.12                            22,782,376.82
 deduction (RMB)                                                                                                 accommodation


VII. 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.


VIII. Quarterly main financial index

                                                                                                                                          In RMB

                                                                    First quarter     Second quarter         Third quarter        Fourth quarter

 Operating income                                                   3,428,913.73           1,552,958.27       3,377,869.34         7,152,248.03

 Net profit attributable to shareholders of the listed
                                                                    -2,490,007.13      -4,141,443.29         -2,089,502.41        -2,846,936.14
 company

 Net profit attributable to shareholders of the listed
                                                                    -2,520,079.94      -4,027,674.93         -2,560,710.14        -3,026,493.35
 company after deducting non-recurring gains and losses

 Net cash flow arising from operating activities                    -1,480,953.35      -3,308,237.57         -2,314,610.54           374,533.48

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


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

√Applicable   □ Not applicable
                                                                                                                                          In RMB

                      Item                                   2020                   2019                  2018                        Note

 Gains/losses from the disposal of non-current              -148,457.47              2,151.45             -29,691.26       Loss from fixed assets

                                                                        7
      司公限有份股心中游旅海东大南海                                                                       2020   文全告报度年年
 asset (including the write-off that accrued for                                                                  disposal
 impairment of assets)

                                                                                                                  Rewards                   for
 Government subsidy calculated into current
                                                                                                                  development of inbound
 gains and losses(while closely related with
                                                                                                                  tourism                market
 the normal business of the Company,
                                                          817,825.34         292,643.89                           supporting        by      the
 excluding       the       fixed-amount         or
                                                                                                                  government        and     tax
 fixed-proportion      governmental        subsidy
                                                                                                                  credit for the VAT input
 according to the unified national standard)
                                                                                                                  tax surcharge

 Other non-operating income and expenditure
                                                         -102,298.48       1,540,017.83          -133,372.64
 except for the aforementioned items

 Other gains/losses items that meet the
 definition of extraordinary gains/losses

 Total                                                    567,069.39       1,834,813.17          -163,063.90                   --

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




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

                            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, with the continuous increase in the number of
local hotels, family hotels, and home-stays, as well as the impact of force majeure and uncertain factors such as
the COVID-19 epidemic, supply has far exceeded demand, industry competition has become increasingly fierce,
and operating pressure remains unabated.




II. Major changes in main assets

1. Major changes in main assets


          Major assets                                                Note of major changes


                                Decreased 488,500 yuan compared with the end of last year with 100% declined, mainly because
 Construction in progress
                                the construction in progress was carried forward to long-term deferred expenses.

                                Decreased 4.4985 million yuan compared with the end of last year with 60.60% declined, mainly
 Monetary funds                 because: (1)revenue declined sharply due to the impact of epidemic, and has a severe losses; (2)
                                more investment in hotel renovation and remodeling

                                Increased 118,200 yuan compared with the end of last year with 38.00% up, mainly because the
 Account receivable
                                account receivable ready for settlement increased;

                                Increased 1.7557 million yuan compared with the end of last year with 690.51% up, mainly due
 Inventory
                                to the purchase of liquor;

                                Increased 1.403 million yuan compared with the end of last year with 54.50% up, mainly
 Other current assets
                                because the input VAT to be deducted increased;

                                Increased 13.4375 million yuan compared with the end of last year with 116.64% up, mainly due
 Long-term deferred expenses
                                to the carry over for hotel renovation in the Period




                                                               9
      司公限有份股心中游旅海东大南海                                                       2020   文全告报度年年
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,
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.




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


                  Section IV Discussion and Analysis of Operation

I. Introduction
During the reporting period, the global outbreak of the COVID-19 caused severe damage to the tourism industry
and tourism service industry. Due to the severe impact of the epidemic, the company's main operating income
dropped sharply and resulted in operating losses. In the reporting period, the Company achieved operation income
from main business of 15.112 million yuan, decrease of 10.4234 million yuan compared with last year, a 40.19%
down; achieved an operation profit loss of 11.3171 million yuan, an increase of 10.5317 million yuan over last
year’s loss, losses increased by 1340.94%; net non-operating income and expenditure amounted to -250800 yuan,
decreased by 1.7929 million yuan compared with last year, an increase of 116.26; the net profit loss amounted to
11.5679 million yuan, an increase in loss of 12.3247 million yuan over last year, losses increased by 1628.59%.
Main works are as:

1. Continue to strengthen the construction of hotel software and hardware equipment and facilities to improve
product quality and competitiveness

During the reporting period, the company made full use of the off-season operation during the epidemic period,
and carried out a comprehensive design and decoration and renovation to the hotel's B building and its annexes,
building C, conference halls, staff canteens, offices, parking lots and pavements, as well as corresponding
equipment and facilities. After renovation and adjustment, 46 new guest rooms have been newly increased, the
number of guest rooms was increased, the scale of operation was expanded, the hardware operating environment
of hotel guest rooms, conference halls, parking lots, landscaping, etc., as well as the working environment of staff
canteen and offices were improved, which have effectively improved the quality and comprehensive
competitiveness of the hotel’s products and laid the foundation for the hotel's subsequent business environment.

2. Be market-oriented and actively expand domestic marketing channels

During the reporting period, the first two quarters were severely hit by the epidemic, and the company's hotel
operations were bleak. The overseas market has almost stagnated so far. In the third quarter, hotel operations
began to pick up gradually. In response, the company’s hotel formulated a flexible marketing mechanism, while
consolidating old customers, actively expanded domestic marketing channels, strengthened cooperation with
well-known online sales platforms such as Ctrip and direct sales travel agencies in first- and second-tier cities,
effectively increased the network, conference teams and travel agencies individual traveler sales, which filled the
overseas customer source market that has been stagnant due to the impact of the epidemic, and successfully
completed the transformation that was dominated by domestic market sales.

3. Reduce operating costs scientifically and reasonably, and improve the internal control system
During the reporting period, the company continued to strengthen cost control and strictly and rationally

                                                        11
      司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年年
controlled various expenses. The implementation of fixed work posts and the scientific and reasonable allocation
of personnel improved execution and work efficiency, and reduced labor costs. Frequent inspections and frequent
repairs eliminated waste of resources and improved the rationality of procurement costs and the cost-effectiveness
of revenue. At the same time, the Company continued to improve the internal control system, strengthen
regulation and implementation of internal control system, strengthen the effective implementation of internal
control work, reduce risks and consumption, increase revenue and control expenditures, emphasize production
safety and improve operational efficiency.

In 2021, 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

1. Introduction

See the “I-Introduction” in “Discussion and Analysis of Operation”


2. Revenue/income and cost

(1)Constitute of operating income

                                                                                                                             In RMB

                                           2020                                       2019
                                                                                                                  Increase/decrease
                                                Ratio in operating                        Ratio in operating
                              Amount                                      Amount                                     y-o-y (+,-)
                                                     income                                    income

 Total operating
                             15,511,989.37                    100%        25,935,405.44                 100%                -40.19%
 income

 According to industries

 Tourism catering
                             13,393,894.12                 86.35%         22,782,376.82             87.84%                  -41.21%
 service

 Other business               2,118,095.25                 13.65%          3,153,028.62             12.16%                  -32.82%

 According to products

 Room revenue                11,721,046.96                 75.56%         20,039,795.13             77.26%                  -41.51%

 Catering
 entertainment                1,672,847.16                 10.78%          2,742,581.69             10.58%                  -39.00%
 revenue

 Other revenue                2,118,095.25                 13.65%          3,153,028.62             12.16%                  -32.82%

 According to region

 Hainan area                 15,511,989.37                100.00%         25,935,405.44            100.00%                  -40.19%


                                                                     12
      司公限有份股心中游旅海东大南海                                                                           2020   文全告报度年年
(2) 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/decrea    Increase/decrea      Increase/decrease
                            Operating                            Gross profit
                                           Operating cost                           se of operating    se of operating       of gross profit
                             income                                 ratio
                                                                                     income y-o-y        cost y-o-y            ratio y-o-y

 According to industries

 Tourism catering
                           13,393,894.12   12,293,939.28               8.21%              -41.21%             15.89%                 -45.23%
 service

 Other business             2,118,095.25      474,523.56              77.60%              -32.82%               0.00%                  -7.35%

 According to products

 Room revenue              11,721,046.96   11,309,594.77               3.51%              -41.51%             23.22%                 -50.69%

 Catering
 entertainment              1,672,847.16      984,344.51              41.16%              -39.00%            -31.87%                   -6.70%
 revenue

 Other business             2,118,095.25      474,523.56              77.60%              -32.82%               0.00%                  -7.35%

 According to region

 Hainan area               15,511,989.37   12,768,462.84              17.69%              -40.19%             15.21%                 -39.58%

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


(3) Income from physical sales larger than income from labors

□ Yes √ No


(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period

□ Applicable √ Not applicable


(5) Constitute of operation cost

Industry classification
                                                                                                                                     In RMB

                                                          2020                                        2019
      Industry                                                                                                                Increase/decrea
                              Item                          Ratio in operation                         Ratio in operation
    classification                          Amount                                       Amount                                se y-o-y (+,-)
                                                                     cost                                     cost

 Tourism catering         Raw material       982,975.27                     7.70%      1,389,703.69              12.54%               -4.84%

                                                                     13
        司公限有份股心中游旅海东大南海                                                                       2020   文全告报度年年
 service

 Tourism catering       Salary
                                               1,524,250.26                11.94%    1,984,548.41               17.91%                 -5.97%
 service                welfare

 Tourism catering       Social
                                                134,953.30                 1.06%      384,039.29                 3.47%                 -2.41%
 service                security fund

 Tourism catering       Water and
                                               1,077,138.88                8.44%     1,314,413.76               11.86%                 -3.42%
 service                electricity

                        Depreciation
 Tourism catering
                        and                    5,698,927.05                44.63%    3,172,103.74               26.62%             16.01%
 service
                        amortization

 Tourism catering
                        Repair cost             412,609.44                 3.23%      587,696.20                 5.30%                 -2.07%
 service

 Tourism catering
                        Laundry fee             376,190.00                 2.95%      585,680.00                 5.28%                 -2.34%
 service

 Tourism catering
                        Total cost         12,768,462.84               100.00%      11,082,766.94              100.00%                 0.00%
 service

Note: nil


(6) Whether the changes in the scope of consolidation in Reporting Period

□ Yes √ No


(7) Major changes or adjustment in business, product or service of the Company in Reporting Period

□ Applicable √ Not applicable


(8) Major sales and main suppliers

Major sales client of the Company

 Total top five clients in sales (RMB)                                                                                     4,699,035.43

 Proportion in total annual sales volume for top five clients                                                                   30.29%

 Ratio of related parties in annual total sales among the top five
                                                                                                                                  0.00%
 clients

Information of top five clients of the Company

  Serial                                Name                                 Sales (RMB)            Proportion in total annual sales

               Shanghai Hecheng International Travel Service Co.,
    1                                                                          2,667,748.88                                     17.19%
            Ltd.

    2          Sanya Haolide International Travel Service Co., Ltd.             687,372.00                                        4.43%

    3          Sanya Youyi International Travel Agency Co., Ltd.                625,492.00                                        4.03%


                                                                      14
         司公限有份股心中游旅海东大南海                                                                           2020   文全告报度年年
               Tianjin Watermelon Tourism Limited Liability
     4                                                                            445,314.66                                          2.87%
              Company

               Suzhou Branch of Beijing Tongcheng Huading
     5                                                                            273,107.89                                          1.76%
              International Travel Agency Co., Ltd.

 Total                                     --                                    4,699,035.43                                        30.29%

Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company

 Total purchase amount from top five suppliers (RMB)                                                                           7,362,828.56

 Proportion in total annual purchase amount for top five suppliers                                                                   71.23%

 Ratio of related parties in annual total sales among the top five
                                                                                                                                      0.00%
 suppliers

Information of top five suppliers of the Company

                                                                                                              Percentage of total annual
     Serial                       Suppliers                          Purchase amount (RMB)
                                                                                                                    procurement

                 Sichuan Langxing Tiancheng Trading
 1                                                                                    1,956,360.00                                   18.93%
                 Co., Ltd.

                  Guangdong Wood Source Furniture
 2                                                                                    1,726,220.74                                   16.70%
                 Co., Ltd.

                 Sanya Yunfang Food Distribution Co.,
 3                                                                                    1,675,873.50                                   16.21%
                 Ltd.

                 Sanya Power Supply Bureau of Hainan
 4                                                                                    1,570,713.03                                   15.20%
                 Power Grid

 5               Sanya Sino French Water Co., Ltd.                                      433,661.29                                    4.20%

 Total                                --                                              7,362,828.56                                   71.23%

Other notes of main suppliers of the Company
□ Applicable √ Not applicable


3. Expenses

                                                                                                                                      In RMB

                              2020                2019        Increase/decrease y-o-y (+,-)                  Note of major changes

 Sales expense          4,853,722.93       5,606,474.47                            -13.43%

 Management
                        9,026,426.56       9,772,412.86                             -7.63%
 expense

                                                                                                The financial interest for 19.79 million yuan
 Financial
                             435,449.46         -175,760.38                       286.94%       bank loans is shown as a period expenses in
 expense
                                                                                                the Period


                                                                        15
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年年
4. R&D expenses

□ Applicable √ Not applicable


5. Cash flow

                                                                                                                            In RMB

                 Item                            2020                          2019                  Increase/decrease y-o-y (+,-)

 Subtotal of cash in-flow from
                                                  16,246,729.46                    29,918,529.05                          -45.70%
 operation activity

 Subtotal of cash out-flow from
                                                  22,975,997.44                    25,204,867.54                           -8.84%
 operation activity

 Net cash flow arising from
                                                  -6,729,267.98                     4,713,661.51                         -242.76%
 operating activities

 Subtotal of cash in-flow from
                                                        8,300.00                       68,870.00                          -87.95%
 investment activity

 Subtotal of cash out-flow from
                                                  13,741,025.28                    12,723,946.92                            7.99%
 investment activity

 Net cash flow arising from
                                                 -13,732,725.28                   -12,655,076.92                            8.52%
 investment activity

 Subtotal of cash in-flow from
                                                  19,791,474.22
 financing activity

 Subtotal of cash out-flow from
                                                   3,827,961.10
 financing activity

 Net cash flow arising from
                                                  15,963,513.12
 financing activity

 Net increase of cash and cash
                                                  -4,498,480.14                    -7,941,415.41                          -43.35%
 equivalent
Main reasons for y-o-y major changes in aspect of relevant data
□ Applicable √ Not applicable
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□ Applicable √ Not applicable


III. Analysis of the non-main business

□ Applicable √ Not applicable




                                                                   16
      司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年年
IV. Analysis of assets and liability

1. Major changes of assets composition

Implements the new revenue standard or new lease standard for the first time from 2020 and adjusts the financial statements at the
beginning of the year of implementation
√Applicable □ Not applicable

                                                                                                                             In RMB

                         Year-end of 2020              Year-begin of 2020

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

                                                                                                The bank loans during the reporting
                                                                                                period, serious losses due to the
 Monetary funds        2,924,459.75       3.00%    7,422,939.89             8.48%      -5.48%   epidemic, and payment for the hotel
                                                                                                renovation work, than the monetary
                                                                                                funds drops dramatically

 Account
                         429,303.32       0.44%      311,083.92             0.36%       0.08%
 receivable

                                                                                                Purchase of a batch of liquor during
 Inventory             2,009,928.83       2.06%      254,257.19             0.29%       1.77%
                                                                                                the reporting period

 Investment real
                       7,435,433.31       7.63%    7,909,956.87             9.04%      -1.41%
 estate

 Fix assets          34,694,023.75     35.61%     35,075,195.98            40.08%      -4.47%

 Construction in
                                                     488,522.10             0.56%      -0.56%
 progress

 Long-term
                       9,893,757.94    10.15%                                          10.15%   Received a bank loans in the Period
 loans


2. Assets and liability measured by fair value

□ Applicable √ Not applicable


3. Assets right restriction till end of reporting period

Nil




                                                                  17
      司公限有份股心中游旅海东大南海                                         2020   文全告报度年年
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 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 reporting period.


5. Application of raised proceeds

□ Applicable √ Not applicable
The Company has no application of raised proceeds in the reporting 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




                                                                18
          司公限有份股心中游旅海东大南海                                                                 2020   文全告报度年年
  VII. Analysis of main controlling company and stock-jointly companies

  √ Applicable   □Not applicable

  Particular about main subsidiaries and stock-jointly companies net profit over 10%
                                                                                                                            In RMB

                                          Main    Register                                     Operating    Operating
 Company name           Type                                     Total assets    Net assets                               Net profit
                                      business     capital                                      income          profit

Hainan Wengao
Tourism                              Tourism
                      Subsidiar
Resources                            developme   1000000         1,000,454.19   1,000,454.19        0.00        -454.01     -454.01
                          y
Development                          nt
Co., Ltd.

  Subsidiaries obtained and disposed during the reporting period
  □ Applicable √ Not applicable
  Explanation on main controlling and stock-jointly enterprise


  VIII. Structured vehicle controlled by the Company

  □ Applicable √ Not applicable


  IX. Future Development Prospects

  1. Development trend of the industry in which the company is located and market competition pattern faced by the
  company
  Sanya is the only tropical seaside city in China with a world-leading eco-environment, and has a wonderful air
  quality that can be numbered in China, it owns an abound marine resources with unique resource advantage.
  Sanya has a geographical position advantage, and under the preferential policy support for the internationalization
  of tourist island, off-shore duty-free and Hainan Free Trade Port/Free Trade Zone, with the improvement of
  people’s life quality in recent years, and enhancement of tourism consumption consciousness as well as the smog
  air and cold climate outside the island, the tourism market prospects has a good trend in Hainan. However, During
  the reporting period, the COVID-19 epidemic had a impact, the global economic had a downturn, and the tourist
  attractions across the country and neighboring countries had an increase, tourists had a diversion, and the number
  of local hotels, family hotels and home-stays had continuous increases, supply far exceeds the demand, and the
  market is becoming more competitive. Combined with the increasing level of local consumption, and soaring
  operation costs and expenses from the staff wages in hotel industry, operation profit shrink, the downward
  pressure on overall operation of the hotel industry continues to increase.

  In the future work, the company will continue to strengthen the updating and transformation of the hotel’s
  equipment and facilities, improve and upgrade the hardware and software equipment and facilities and the quality
  of internal and external business environment, enhance the construction of enterprise culture and staff teams,

                                                                    19
     司公限有份股心中游旅海东大南海                                                       2020   文全告报度年年
improve service level and service quality, actively expand the sales channels, make full use of the internet
platform, expand the sales network, increase the market share, and further improve the management level and core
competitiveness.

2. Future development plans and operation plan for year of 2021

(1) Market-oriented, continues to improve the quality management of the software equipment and facilities in the
Hotel, enhancing the hotel brand image, expanding market channel, and center with enterprises performance,
making the brand more bigger and stronger driven by pioneer and invent.

(2) Continue to expand financing channels, actively promote the restructuring works, enrich the industrial
construction, widen the company size, increased more profit points in order to strengthen the sustainability, stable
and healthily of the operation.

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

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

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

4. The risks may cause adverse effects on the future development strategy and realization of operation target of
the Company

(1) Marco Policy risks

In order to normalize and optimize tourism market or further to promote clear-party construction, related
departments may further issue some relative policies. While these polices may cause restrain and effect on
regional tourism development. Main business income may be affected since we are engaged in tourism service.

Countermeasures: The Company will further to improve the hard and soft 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) 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.

(3) Risks of HR


                                                        20
        司公限有份股心中游旅海东大南海                                                                   2020   文全告报度年年
  Demand for talent in aspect of hotel sales and management are increasingly due to the constantly rise of hotel
  industry, flow of hotel talented people comes more widespread and more frequent, we may face the risks of
  development restrained from brain drain.

  Countermeasure: we will continue to improved 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
  management and skill technicians.

  (4) Operational risks of main business
  With the continuous development of global tourism industry, the continuous rise of high and low grade hotels, the
  continuous diversion of global tourist sources, as well as the impact of force majeure uncertainties such as the
  COVID-19, the number of local hotels and guesthouse rooms is increasing, and the industry competition is
  becoming more and more fierce. Furthermore, 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, continues to exploit financing channel, actively promote restructuring, expanding operation projects,
  enrich the industrial structure for increasing the profit increasing point.




  X. Reception of research, communication and interview

  1. In the report period, reception of research, communication and interview

  √Applicable   □ Not applicable

                                                                                                                                  Basic
                                            Recept
                  Reception                                                      Main content of the discussion and              situation
Reception time                       Way      ion     Reception object
                      site                                                             information provided                      index of
                                             type
                                                                                                                               investigation

                                Telephone             Investor
                  The                       Individ                        Operation performance       of   the 3Q and
2020-10-09                      communic               Mr./Ms.Lin                                                          -
                  company                   ual                            disclosure date, no materials required
                                ation                  from Zhejiang

                                Telephone             Investor Mr./Ms.
                  The                       Individ                        Lawsuit of the Company and no material
2020-10-21                      communic              Zhong         from                                                   -
                  company                   ual                            required
                                ation                 Jiangsu


                                                                 21
         司公限有份股心中游旅海东大南海                                                                 2020    文全告报度年年
                                 Telephone             Investor Mr./Ms.    Commitments of share reform perform by the
                    The                      Individ
2020-11-05                       communic              Zhang        from   first majority shareholder of the Company,        -
                    company                  ual
                                 ation                 Chengdu             and no material required

                                 Telephone             Investor
                    The                      Individ                       Annual    operation   performance      of   the
2020-11-17                       communic              Mr./Ms.Li    from                                                     -
                    company                  ual                           Company and no material required
                                 ation                 Shenzhen

                                 Telephone             Investor Mr./Ms.
                    The                      Individ                       Impact of the epidemic on the company’s
2020-12-10                       communic              Zhuang       from                                                     -
                    company                  ual                           operation and no material required
                                 ation                 Fujian

                                 Telephone             Investor Mr./Ms.    Annual    operation   performance      of   the
                    The                      Individ
2020-12-30                       communic              Zhang        from   company and impact of the new regulations         -
                    company                  ual
                                 ation                 Guangdong           on the company, no material required

                                 Telephone             Investor Mr./Ms.
                    The                      Individ                       Impact of the new regulations on the
2020-12-31                       communic              Shu          from                                                     -
                    company                  ual                           company, no material required
                                 ation                 Shanghai

Reception (times)                                                                                                                32

Number of hospitality                                                                                                             0

Number of individual reception                                                                                                   32

Number of other reception                                                                                                         0

Disclosed, released or let out major undisclosed
                                                       No
information




                                                                   22
      司公限有份股心中游旅海东大南海                                                                        2020   文全告报度年年

                                          Section V. Important Events

I. Profit distribution plan of common stock and capitalizing of common reserves plan

Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
According to the auditing reports issued by certified public accountants, the net income realized in nearly three years (including the
reporting period) was used to make up the losses in the previous year; the undistributed profit during this reporting remained a minus.
The Company did not take profit allocation nor capitalization of capital reserve during the reporting period.


Cash dividend of common stock in latest three years (including the reporting period)
                                                                                                                               In RMB

                                                                                                                           Ratio of the total
                                                                                       Ratio of the cash
                             Net profit        Ratio of the cash                                                          cash bonus (other
                                                                                        bonus by other
                           attributable to      bonus in    net           Proportion                                      ways included) in
                                                                                       ways in net profit       Total
              Amount       common stock        profit attributable         for cash                                            net profit
                                                                                        attributable to          cash
 Year for     for cash     shareholders of     to common stock            bonus by                                          attributable to
                                                                                        common stock            bonus
  bonus        bonus       listed company       shareholders of             other                                           common stock
                                                                                        shareholders of      (includin
  shares        (tax                in          listed company            ways(i.e.                                        shareholders of
                                                                                        listed company          g other
             included)      consolidation        contained in               share                                          listed company
                                                                                         contained in           ways)
                            statement for        consolidation            buy-backs)                                         contained in
                                                                                         consolidation
                             bonus year            statement                                                                consolidation
                                                                                           statement
                                                                                                                              statement

 2020              0.00    -11,567,888.97                   0.00%               0.00               0.00%           0.00                 0.00%

 2019              0.00           756,721.46                0.00%               0.00               0.00%           0.00                 0.00%

 2018              0.00           653,282.19                0.00%               0.00               0.00%           0.00                 0.00%

The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable


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

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




                                                                     23
      司公限有份股心中游旅海东大南海                                                                           2020   文全告报度年年
III. Implementation of commitment

1. 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
                                                                                                                        Com     Com
                                                           com                                                                          Imple
                                                 Promis                                                                 mitm    mitm
               Commitments                                                        Content of commitments                                menta
                                                    e       mit                                                          ent     ent
                                                                                                                                         tion
                                                                                                                        date    term
                                                           ment
                                                               s

                                                                    On May 30, 2007, Luoniushan Co., Ltd. made                          The
                                                                    commitments in the Company’s "Instructions for                     origin
                                                                    reform of non-tradable shares" (Revision) and                       al
                                                           Com
                                                           mit      "Instructions for reform of non-tradable shares"                    plans
                                                           ment     (Abstract of revision) that in view of Dadonghai                    of
                                                           s for
                                                 Luoniu             Company’s losses in successive years and on the                    materi
                                                           Shar                                                         2017    6
 Commitments for                                 shan               verge of delisting, in order to reverse the                         al
                                                           e                                                            -06-2   mont
 Share Merger Reform                             Co.,               company's      business   difficulties,   improve                   assets
                                                           Mer                                                          7       hs
                                                 Ltd.               profitability and recover the continuous business                   reorga
                                                           ger
                                                                    capacity, Luoniushan Co., Ltd., the controlling                     nizati
                                                           Refo
                                                                    shareholder    of   Dadonghai   Company     made                    on
                                                           rm
                                                                    commitments to actively seek restructuring                          was
                                                                    parties to reorganize the assets of Dadonghai                       termin
                                                                    Company at the appropriate time.                                    ated

 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 commenced suspension of trading from the opening session on 15
                                                 February 2017 as it planned to fulfill its commitments. On 13 August 2017, 12 proposals
 If the commitments is not fulfilled on
                                                 relating to Material Asset Acquisition and Connected Transaction Report (Plan) of Hainan
 time, shall explain the specify reason
                                                 Dadonghai Tourism Centre (Holdings) Co., Ltd. were denied at the 11th extraordinary general
 and the next work plan
                                                 meeting of the 8th session of board of directors of the Company. On 15 August 2017, the
                                                 Company announced to terminate this restructuring relating to material assets acquisition, and


                                                                        24
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年年
                                          the stock of the Company commenced trading since 17 August 2017.
                                          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 for the implementation of the
                                          restructuring commitment was changed to December 26, 2019. On December 22, 2017, the
                                          company’s fourth extraordinary shareholders’ meeting in 2017 did not approve the proposal.
                                          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 not disclosed


2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast

□ Applicable √ Not applicable


IV. Non-operational fund occupation from controlling shareholders and its related party

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


V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA

□ Applicable    √ Not applicable


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

√Applicable    □ Not applicable
(i) Changes in significant accounting policies
(1) Implement the Accounting Standards for Business Enterprises No. 14 -- Revenue (revised in 2017) (hereinafter
referred to as the "new revenue standards")


                                                                  25
       司公限有份股心中游旅海东大南海                                                        2020   文全告报度年年
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 14 - Revenue in 2017.
The revised standard stipulates that the first implementation of the standard should adjust the amount of retained
earnings and other related items in the financial statements at the beginning of the year according to the
cumulative impact, without adjusting the information for comparable periods.
The Company implement the new revenue standards since January 1, 2020. In accordance with the provisions of
the Standards, the Company will only adjust the amount of retained earnings at the beginning of 2020 and other
related items in the financial statements for the cumulative impact of contracts that have not been completed at the
first execution date, not the comparative financial statements.
(2) Implementation of Interpretation of Accounting Standards for Business Enterprises No. 13
The Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No. 13
(Finance and Accounting [2019] No. 21, hereinafter referred to as "Interpretation No. 13") on December 10, 2019,
which took effect on January 1, 2020 and does not require retroactive adjustment.
①   Recognition of the affiliated party

Interpretation No. 13 makes it clear that the following circumstances constitute an affiliated party: a joint venture
or joint venture between the enterprise and other members of the enterprise group (including the parent company
and subsidiaries); Joint ventures of an enterprise and other joint ventures or associates of an enterprise. In addition,
Interpretation No. 13 also makes it clear that only two or more enterprises that are materially affected by one party
do not constitute affiliated parties, and adds that joint ventures include joint ventures and their subsidiaries, and
joint ventures include joint ventures and their subsidiaries.
②   Definition of business

Interpretation No. 13 improves the three elements of business composition, elaborates the judgment conditions of
business composition, and introduces the choice of "concentration test" to simplify the judgment of whether a
portfolio acquired under different control constitutes business to a certain extent.


The Company has implemented Interpretation No. 13 since January 1, 2020, and the comparative financial
statements have not been adjusted. The Company has not implemented Interpretation No. 13, which has had a
significant impact on the Company's financial position and operating results
(3) Implementation of the Interim Provisions on Accounting Treatment for Carbon Emission Trading
The Ministry of Finance issued the Interim Provisions on Accounting Treatment of Carbon Emission Trading
([2019] No. 22) on December 16, 2019, which is applicable to relevant enterprises of key emitters that carry out
carbon emission trading business in accordance with the Interim Measures on the Administration of Carbon
Emission Trading and other relevant provisions (hereinafter referred to as key emitters). The regulation will take
effect on January 1, 2020, and key emission enterprises should apply the regulation by adopting the future
application method.
The Company has implemented this provision since January 1, 2020, and the comparative financial statements are
not adjusted. The implementation of this provision has not had a significant impact on the Company's financial
position and operating results.
                                                          26
        司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年年
(4) Implement the COVID-19 Outbreak Related Rental Concession Accounting Rules
On June 19, 2020, the Ministry of Finance (MOF) issued the Accounting Regulations on the Treatment of Rent
Concessions Related to COVID-19 (Finance and Accounting [2020] No. 10), which has came into force on June
19, 2020, allowing enterprises to adjust the relevant rent concessions that occurred between January 1 2020 to the
implementation date of this regulation. According to this regulation, enterprises can choose to adopt a simplified
method for accounting treatment of rent concessions, such as rent remission and deferred payment, which are
directly caused by COVID-19.
The Company has implemented this provision since January 1, 2020, and the comparative financial statements are
not adjusted. The implementation of this provision has not had a significant impact on the Company's financial
position and operating results.

(ii) Changes in accounting estimates

There was no change in the principal accounting estimates of the Company during the reporting period.


VII. Major accounting errors within reporting period that needs retrospective restatement

□ Applicable   √ Not applicable
There was no major accounting errors within reporting period that needs retrospective restatement for the Company in the period.


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

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


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

Accounting firm appointed

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

 Remuneration for domestic accounting firm (in 10 thousand
                                                                                                                                39
 Yuan)

 Continuous life of auditing service for domestic accounting
                                                                   10
 firm

 Name of domestic CPA                                              Li Jinhua, Zhu Meirong

 Continuous fixed number of year for the auditing service
                                                                   3
 provided by CPA in domestic CPA Firms
Re-appointed accounting firms in this period

□Yes    √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor

□Applicable    √Not applicable

                                                                 27
          司公限有份股心中游旅海东大南海                                                                                   2020   文全告报度年年
    X. Facing delisting after annual report disclosure

    √Applicable    □ Not applicable
    After the disclosure of Annual Report 2020 under the name of the Company, trading of the stock of the
    Company was implemented delisting risk warning. If one of the circumstances specified in Article 14.3.11 of
    the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange occurs in the year of 2021, the
    trading of the stock may be terminated after the disclosure of the Annual Report 2021.


    XI. Bankruptcy reorganization

    □ Applicable    √ Not applicable
    There was no bankruptcy reorganization for the Company in reporting period


    XII. Significant lawsuits and arbitration of the Company

    √Applicable    □ Not applicable

                                         Amo
                                                 Whet
                                          unt
                                                  her
                                         invol
                                                     to
                                         ved                                          Litigation            Execution
                                                 form        Litigation                                                      Date of
    Basic situation of litigation         (in                                  (arbitration) trial         of litigation
                                                  an        (arbitration)                                                    disclosu    Disclosure index
            (arbitration)                 10                                          results and          (arbitration)
                                                 estim        progress                                                            re
                                         thous                                          impact              judgment
                                                 ated
                                         and
                                                 liabil
                                         Yuan
                                                  ity
                                           )

                                                          The court of         The company has
                                                                                                                                        Announcement on
                                                          first    instance    applied      to      the
                                                          ruled against the                                                             Significant
                                                                               court                for
                                                          company’s                                                                    Litigation
                                                                               enforcement, but
                                                          claim, and the                                                                (Announcement
                                                                               there is no result                            4 June
                                                          company filed                                                                 No.:       2019-017,
Hainan Dadonghai Tourism Centre                                                yet.             Hainan                       2019,
                                                          an appeal. The                                   The
Group Co., Ltd. borrowed 2.76                                                                                                13 June    No.:2020-021,
                                                          court of second      Dadonghai                   company
million yuan and 4.55 million yuan                                                                                           2020,      No.: 2020-025 and
                                                          instance ruled to    Tourism          Centre     has applied
from Hainan Dadonghai Tourism                                                                                                16
                                                          revoke         the                               for court                    No.:       2020-027)
Centre (Holdings) Co., Ltd. on           731     N                             Group Co., Ltd.                               Septem
                                                          judgment        of                               enforcemen                   published        on
October 16, 1996 and December                                                  has not repaid the                            ber
                                                          first   instance,                                t, which is                  Securities    Times,
26, 1996 respectively. And the                                                 loan        to       the                      2020
                                                          supporting the                                   still
company filed a lawsuit in court for                                                                                         and 22     Hong           Kong
                                                          company’s           company, and the            pending.
the 7.31 million yuan outstanding.                                                                                           October    Commercial Daily
                                                          claim.        The    company                is
                                                                                                                             2020
                                                          company       has                                                             and
                                                                               currently unable
                                                          applied for court                                                             www.cninfo.com.c
                                                                               to determine the
                                                          enforcement,                                                                  n.
                                                          which is still       impact       of      this
                                                          pending.             litigation on the

                                                                          28
          司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年年
                                                                          company's
                                                                          current or future
                                                                          profits.




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 yuan. On May 17,
2018, the Sanya Local Taxation                                            The company has
Bureau deducted the money from                                            non-operation
the deposit of the company's South                     The first trial    revenue         of
                                                                                                Enforcemen
China Hotel. According to the          28.6            ruling  upheld     286,200      yuan
                                              N                                                 t has been     -          -
agreement of the "Responsibility       2               the company’s     increased, which
                                                                                                completed
Letter of the Target Management of                     claim              affected the profit
South China Hotel" signed by                                              of the Period by
South China Hotel and Sun                                                 286,200 yuan
Hongjie, Sun Hongjie should 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. 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.


    XIII. Penalty and rectification

    □ Applicable √ Not applicable
    There was no penalty and rectification for the Company in reporting period.




                                                                    29
      司公限有份股心中游旅海东大南海                                                                            2020    文全告报度年年
XIV. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable


XV. 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.


XVI. Major related party transaction

1. Related party transaction with routine operation concerned

√Applicable □Not applicable

                                                                                              Whet
                                                                                   Tradi
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                         Type     Conte                         transa                         the       ng       able          Date   Index
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                                                       price              transa              limite             marke          sure   osure
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            First
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            major       Consu     Acco      Mark      Mark
 shan                                                                      0.35                        ction     ction
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 Co.,                                                                        %                         with      with
            share       n         ation     price     price
 Ltd.                                                                                                  non-r     non-r
            holder
                                                                                                       elated    elated
                                                                                                       party     party
 Total                                           --        --    5.44       --            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 total           N/A
 amount     by      types    during   the
 reporting period
 Reasons     for     major    differences
                                            N/A
 between trading price and market


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


2. Related transactions by assets acquisition and sold

□ Applicable       √ Not applicable
There was no related transactions by assets acquisition and sold for the Company in reporting period


3. Related transactions of mutual investment outside

□ Applicable       √ Not applicable
There was no main related transactions of mutual investment outside for the Company in reporting period


4. Contact of related credit and debt

□ Applicable       √ Not applicable
There was no contact of related credit or debt for the Company in the reporting period


5. Other significant related transactions

□ Applicable       √ Not applicable
The company had no other significant related transactions in reporting period.


XVII. Significant contract and implementations

1. Trusteeship, contract and leasing

(1) Trusteeship

□ Applicable       √ Not applicable
There was no trusteeship for the Company in reporting period


(2) Contract

□ Applicable       √ Not applicable
There was no contract for the Company in reporting period


(3) Leasing

√Applicable    □ Not applicable
Note of leasing
             Item                             Tenant                        Lease life                 Term of lease
Shopping mall –Building                    Li Fuming                        3 years             2019-11-01 to 2022-10-31
B in Hotel


                                                                 31
        司公限有份股心中游旅海东大南海                                                                         2020   文全告报度年年
Ground floor of Hotel A                         Li Fuming                      3 years                 2019-02-28 to 2022-02-27
Seaside stall and wood Sanya Leda Food Management Co., Ltd.                    5 years                 2018-01-01 to 2022-12-31
house
Multi-functional     meeting                    Li Fuming                      5 years                 2019-11-01 to 2024-10-31
room


Projects that bring profit and losses to the Company to more than 10% of the total profit in the reporting period
√Applicable     □ Not applicable
                                         Leasing                                                          The
                                          assets                                                         impact       Whether
                                                                            Leasing      Basis for
                Name of                 involved                                                           of             be
                            Leasin                   Lease      Lease       income       determin
 Name of          the                     in the                                                        leasing        related    Associatio
                              g                      start    terminati      (in 10       ing the
  lessor        leasing                amount (in                                                       income        transacti   n relation
                            assets                    date     on date     thousand       leasing
                 party                      10                                                           on the          ons
                                                                             Yuan)        income
                                        thousand                                                        compan          (Y/N)
                                          Yuan)                                                            y
                 Sanya
                            Seasid
                 Leda
  The                       e stall
                 Food                               2018-01   2022-12                                   Increase
 Compan                      and          653                                   120      Contract                     N           N/A
                Manage                              -01       -31                                        income
   y                        wood
                 ment
                            house
                Co., Ltd.


2. Major Guarantee

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


3. Entrust others to cash asset management

(1) Trust financing

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


(2) Entrusted loans

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


4.Significant contracts for daily operation

√Applicable      □ Not applicable
                                                              Total amount                             Sales revenue
                                                                                Progress of                                    Account
  Contracting                                                  of contract                           recognized during
                      Counter party         Contract object                    the contract                                   receivable
    party                                                         (in 10                             the current period
                                                                               performance                                     recovery
                                                                thousand                             and cumulatively

                                                                  32
      司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年年
                                                                 Yuan)
                  Sichuan
 The              Langxing             53 degree liquor
                                                             195.64            100%            N/A                  N/A
 Company          Tiancheng            Qinghualang
                  Trading Co., Ltd.


The significant contract progress is materially different from the contract agreement and affects more than 30% of the contract
amount
□ Applicable √ Not applicable


5. Other significant contracts

□ Applicable    √ Not applicable
There was no other significant contracts for the Company in reporting period


XVIII. Social responsibility

1. Social responsibilities: Nil

2. Execution of social responsibility of targeted poverty alleviation: Nil

3. Environmental protection

Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
□Yes √No


XIX. Explanation on other significant events

√Applicable □ Not applicable
The Lawyer’s Letter received by the Company 1: 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.
Found more in “Notice of Lawyer’s Letter received by Hainan Dadonghai Tourism Center (Holdings) Co., Ltd.”
(Notice No.: 2016-016) released on Securities Times, Hong Kong Commercial Daily and Juchao Website dated 31
May 2016. The Company is still communicating and coordinating with Sanya Power Bureau in the above
mentioned event, but there is no results at present.


XX. Significant event of subsidiary of the Company

□ Applicable    √ Not applicable




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

     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

                                                                      Bon    Capitaliz
                                                            New
                                                 Proport              us     ation of    Oth   Subto
                                    Amount                  shares                                       Amount         Proportion
                                                  ion                 shar    public     ers    tal
                                                            issued
                                                                      es     reserve

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

1. State-owned shares

2.       State-owned      legal
                                     1,399,200   0.38%                                                   1,399,200           0.38%
person’s shares

3. Other domestic shares             8,824,200                                                           8,824,200           2.42%

Including: Domestic legal
                                     8,824,200   2.42%                                                   8,824,200           2.42%
person’s shares
Domestic natural person’s
shares

4. Foreign shares

Including:     Foreign    legal
person’s shares
Foreign      natural   person’s
shares

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

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

2.    Domestically        listed                  24.17
                                    88,000,000                                                          88,000,000          24.17%
foreign shares                                          %

3. Overseas listed foreign
shares

4. Others

                                                 100.00
III. Total shares                  364,100,000                                                         364,100,000         100.00%
                                                        %



                                                                 34
        司公限有份股心中游旅海东大南海                                                                     2020   文全告报度年年
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
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
                                         Number of       Number                       Number of
                                                                         of new
                                            shares       of shares                      shares
                                                                         shares                      Restriction
          Shareholders’ name            restricted at   released                     restricted                           Released date
                                                                        restricted                    reasons
                                         Period-begi      in the                          at
                                                                         in the
                                              n            Year                       Period-end
                                                                          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

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


                                                                   35
        司公限有份股心中游旅海东大南海                                                    2020   文全告报度年年
                                                                                  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

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

1. Security offering (without preferred stock) in reporting Period

□ Applicable √ Not applicable


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

□ Applicable √ Not applicable


3. Existing internal staff shares

□ Applicable √ Not applicable




                                                     36
             司公限有份股心中游旅海东大南海                                                                          2020   文全告报度年年
    III. Particulars about shareholder and actual controller of the Company

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

                                                                                                                                              In Share
                                                                                                                   Total preference
Total common                        Total common stock                      Total preference                       shareholders with
stock shareholders                  shareholders at end of last             shareholders with voting               voting rights recovered
                        36,138                                    40,973                                   0                                              0
in reporting                        month before annual                     rights recovered at end of             at end of last month
period-end                          report disclosed                        reporting period                       before annual report
                                                                                                                   disclosed
                                 Particulars about shares held above 5% by shareholders or top ten shareholders
                                                                                                                                       Number of share
                                                             Proport   Number of                                    Amount of
                                                                                     Changes      Amount of                             pledged/frozen
                                            Nature of        ion of    shares held                                  un-restricte
   Full name of Shareholders                                                          in report    restricted                         State
                                          shareholder        shares         at                                        d shares
                                                                                         period   shares held                          of        Amount
                                                              held     period-end                                       held
                                                                                                                                      share
                                       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
                                       Domestic nature
Zhang Fengxiu                                                 0.84%     3,041,372    0                         0      3,041,372
                                      person
Shenwan Hongyuan Securities
                                       Foreign corporate      0.81%     2,938,390    -118,000                  0      2,938,390
(Hong Kong) Co., Ltd.
                                       Domestic nature
Sun Huiming                                                   0.79%     2,888,690    0                         0      2,888,690
                                      person
China Investment Securities
(HK) Co., Ld. – customer              Foreign corporate      0.74%     2,683,900    938,400                   0      2,683,900
deposit
Strategy investors or general
legal person becomes top 10           N/A
shareholders due to rights issued


                                                                           37
            司公限有份股心中游旅海东大南海                                                                              2020   文全告报度年年
                                             Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is the wholly-owned
Explanation          on      associated
                                             subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen Jinlian and Pan Aiping are the persons
relationship or accordant action
                                             acting in concert; the Company is unknown whether there exists associated relationship or belongs to the
among          the               aforesaid
                                             consistent actor regulated by the Management Measure of Information Disclosure on Change of
shareholders
                                             Shareholding for Listed Company among the other shareholders.

Description      of        the      above
shareholders     in        relation     to
delegate/entrusted voting rights             N/A
and    abstention         from     voting
rights.

                                                Particular about top ten shareholders with un-restrict shares held
                                                                          Amount of un-restrict                          Type of shares
                           Shareholders’ name
                                                                         shares 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
Zhang Fengxiu                                                                            3,041,372    RMB common share                          3,041,372
                                                                                                      Domestically listed
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd.                                        2,938,390                                              2,938,390
                                                                                                      foreign share
                                                                                                      Domestically listed
Sun Huiming                                                                              2,888,690                                              2,888,690
                                                                                                      foreign share
China Investment Securities (HK) Co., Ld. – customer
                                                                                         2,683,900    RMB common share                          2,683,900
deposit
                                                                        Among the above shareholders, Hainan Ya’an Residence Property Service Co.,
                                                                        Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd. Yang Meiqin, Pan
Expiation on associated relationship or consistent actors               Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the
within the top 10 un-restrict shareholders and between top              Company is unknown whether there exists associated relationship or belongs to
10 un-restrict shareholders and top 10 shareholders                     the consistent actor regulated by the Management Measure of Information
                                                                        Disclosure on Change of Shareholding for Listed Company among the other
                                                                        shareholders.
Explanation on shareholders involving margin business
about top ten common stock shareholders with un-restrict                N/A
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

                                                                               38
            司公限有份股心中游旅海东大南海                                                                               2020   文全告报度年年
     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.


     2. Controlling shareholder (The largest shareholder) of the Company

     Nature of controlling shareholders (The largest shareholder): community collective holding
     Type of controlling shareholders (The largest shareholder): legal person

                                           Legal
                                                          Date
                                         person/pe
   Controlling shareholders (The                           of         Organization
                                          rson in                                                              Main operation business
         largest shareholder)                            found            code
                                         charge of
                                                          ation
                                          the unit
                                                                                         Planting and breeding; setting up industry; real estate
                                                                                         development and operation; building decoration project;
                                                                                         processing and sales of agricultural and sideline livestock and
                                                                                         aquatic products and livestock and poultry breeding;
                                                         Dece      Unified social        machinery, automobile and motorcycle parts, electronic
                                                         mber      credit code           products, metal materials (except for franchise), chemical
Luoniushan Co., Ltd.                     Xu Zili
                                                         19,       914600002840          products    (except      for   franchise),   sales   of   household

                                                         1987      89747P                appliances, modern office supplies, stationery and sports
                                                                                         goods, daily necessities, building materials, agricultural and
                                                                                         sideline native products; development and construction of
                                                                                         trading markets; leasing services; warehousing services;
                                                                                         collection and payment of water and electricity fees.

Equity of other domestic/oversea
listed     company     control     by
                                         Found more details in full text of Annual Report 2020 of Luoniushan Co., Ltd. (Short form of the
controlling shareholder (The largest
                                         stock: Luoniushan, Stock code: 000735)
shareholder) as well as stock-joint in
report period

     Changes of controlling shareholders (The largest shareholder) in reporting period
     □ Applicable √ Not applicable
     The Company had no changes of controlling shareholders (The largest shareholder) in reporting period.



     3. Actual controller and persons acting in concert

     Nature of actual controller: domestic natural person
     Type of actual controller: natural person

                                                      Relationship with                                  Whether obtained right of residence of other
           Name of actual controller                                              Nationality
                                                     the actual controller                                       countries or regions or not

 Xu Zili                                            Xu Zili himself           P.R.C                 No

                                                    Xu Zili, male, was born in 1966, is a senior engineer with a master degree. He successively
 Main profession and title
                                                    served as Vice President of Hubei Huangshi Mine Bureau Machinery; General Manager of

                                                                             39
               司公限有份股心中游旅海东大南海                                                                      2020   文全告报度年年
                                                     Haikou Animal Husbandry Machinery Engineering Co., Ltd.; Chairman of Tianjin Baodi
                                                     Agricultural Technology Co., Ltd.; Vice Chairman and General Manager of the Company
                                                     from August 2006 to November 2011; serves as Chairman of the Company since November
                                                     2011; now he takes as the 7th CPPCC member of Hainan Province.

   Listed company in and out of China
                                                     N/A
   controlled in past decades

         Changes of actual controller in reporting period
         □ Applicable √ Not applicable
         No changes of actual controllers for the Company in reporting period.
         Property right and controlling relationship between the actual controller and the Company is as follow:




                                                              Xu Zili


                                                             90%

                                       Hainan Huijia Investment Development Co., Ltd.


                                                          71.84%

                                                    Hainan Liqin Investment Co., Ltd




         20.95%        71.76%                    50.83%                          80%                               45%
                                                                                                    20%
        Luoniushan              Haikou Yongsheng Livestock                   Hainan                        Hainan        Guangxiang
    Group Co., Ltd.             Machinery Engineering Co.,         49.17% Shengxing Trade                  Trade Co., Ltd.
                                Ltd.                                         Co., Ltd.             55%



0.07%             17.14%                             2.4%                      1.25%                               0.63%




                                                      Luoniushan Co., Ltd.
                                                            17.55%                                  100%
                                                                                  2.25% Hainan Ya An Ju Property
    Hainan Dadonghai Tourism Center (Holding) Co., Ltd.
                                                                                           Service Co., Ltd.




         Actual controller controlling the Company by entrust or other assets management

         □ Applicable √ Not applicable



                                                                          40
      司公限有份股心中游旅海东大南海                                             2020   文全告报度年年
4. Particulars about other legal person shareholders with over 10% shares held

□ Applicable √ Not applicable


5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects

□ Applicable √ Not applicable




                                                    41
      司公限有份股心中游旅海东大南海                                 2020   文全告报度年年

                                      Section VII. Preferred Stock

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




                                                    42
      司公限有份股心中游旅海东大南海                                  2020   文全告报度年年

                                    Section VIII. Convertible Bonds

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




                                                      43
           司公限有份股心中游旅海东大南海                                                                 2020   文全告报度年年

              Section IX. Particulars about Directors, Supervisors, Senior

                                              Executives and Employees

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

                                                                                                    Amoun        Amoun
                                                                                                        t of         t of             Shares
                                                                                          Shares                             Other    held at
                           Work                                                                     shares        shares
                                     S                                                    held at                            chan     period
                               ing                 Start dated of      End date of                  increas      decreas
    Name          Title              e    Age                                         period-be                               ges         -end
                           statu                    office term         office term                     ed in        ed in
                                     x                                                     gin                               (shar
                                s                                                                       this         this             (Share
                                                                                       (Share)                                   e)
                                                                                                    period        period                   )
                                                                                                    (Share)      (Share)

                           Curr
Yuan         Chairman/G    ently
                                     M                                 February 27,
Xiaopin      eneral        in            57      February 28, 2018                    0             0            0           0        0
                                                                       2021
g            Manager       offic
                           e

                           Curr
Tang                       ently
             Independent             M                                 May 21,
Guopin                     in            56      May 22, 2014                         0             0            0           0        0
             Director                                                  2020
g                          offic
                           e

                           Curr
                           ently
             Independent             M                                 February 27,
Wu Tao                     in            42      February 28, 2018                    0             0            0           0        0
             Director                                                  2021
                           offic
                           e

                           Curr
Tang                       ently
                                     M                                 February 27,
Shanron      Director      in            41      February 28, 2018                    0             0            0           0        0
                                                                       2021
g                          offic
                           e

                           Curr
             Chairman
                           ently
Huang        of                      M                                 February 27,
                           in            51      June 16, 2002                        0             0            0           0        0
Wencai       supervisory                                               2021
                           offic
             committee
                           e


                                                                  44
           司公限有份股心中游旅海东大南海                                                    2020   文全告报度年年
                             Curr
                             ently
ZhangX                                                                February 27,
              Supervisor     in       F    37   February 28, 2018                    0   0          0        0       0
uli                                                                   2021
                             offic
                             e

                             Curr
                             ently
Chen                                  M                               February 27,
              Supervisor     in            54   July 29, 2016                        0   0          0        0       0
Gang                                                                  2021
                             offic
                             e

                             Curr
              Person in      ently
Fu                                    M                               February 27,
              charge of      in            53   April 15, 2015                       0   0          0        0       0
Zongren                                                               2021
              finance        offic
                             e

                             Curr
              Deputy         ently
Ding                                  M                               February 27,
              General        in            49   August 10, 2018                      0   0          0        0       0
Qin                                                                   2021
              Manager        offic
                             e

              Director/      Curr
Wang          deputy         ently
                                                                      February 27,
Hongju        GM/secreta     in       F    44   April 27, 2008                       0   0          0        0       0
                                                                      2021
an            ry of the      offic
              Board          e

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


     II. Changes of directors, supervisors and senior executives

     □ Applicable√ Not applicable


     III. Post-holding

     Professional background, major working experience and present main responsibilities of directors, supervisors and
     senior executive in the Company

     Director

     Mr. Yuan Xiaoping, was born in 1963, Han nationality, holds the college degree, the Chinese CPA, senior
     accountant, the auditor and he is the member of communist party of China. He was appointed as the system
     accounting and deputy director in the supply & marketing cooperative of Nanchong Sichuan; he took as the
     project manager of Hainan Congxin Accounting Firm and assistant of GM and CFO in Luoniushan Company.


                                                                 45
     司公限有份股心中游旅海东大南海                                                      2020   文全告报度年年
He also served as the director, CFO, Deputy General Manager, the acting GM, deputy chairman and secretary of
the party committee in Haikou Water Group Co., Ltd. as well as the director of Hainan Yedao Co., Ltd. from 2006
to 2017. Mr. Yuan serves as Chairman and GM of the Company since March 2018.

Mr. Tang Shanrong, was born in 1979, holds the Master degree, a senior engineer. He was appointed as secretary
of the president in Luoniushan Co., Ltd., the General Manager of Hainan Luoniushan Environment Protection Co.,
Ltd, the Chairman of Hainan Luoniushan Agricultural Sci-Tech Co., Ltd., the assistant president and GM of the
administration department in Luoniushan Co., Ltd. Mr. Tang serves as vice president of the Company since June
2016; She served as chairman of real estate branch of Luoniushan Co., Ltd. since June 2018; at the same time, he
served as Vice President of China Rural Youth Enrichment Leaders Association, and he is the member of standing
committee of the 14th CPPCC of Haikou, member of the standing committee of the 6th Hainan Youth Federation,
vice chairman of the 8th Haikou Youth League and director of Haikou Youth Entrepreneurship & employment
promotion Association. He serves as director of the Company since March 2018.
Ms. Wang Hongjuan, was born in 1976, Han nationality, Undergraduate Degree, an attorney; she served as
representative of securities affairs of the Company since 2004 and serves as secretary of the Board since 2008 and
deputy GM of the Company since 2014. Ms. Wang serves as Director of the Company since 2016.

Independent Director

Mr. Tang Guoping, was born in August 1964, Han nationality, he was graduated from Zhongnan University of
Economics and Law, holds the doctoral degree and he is the accounting professor, doctoral supervisor and Chinese
CPA. He was awarded as the “Master of Accounting” by the Ministry of Finance, the “Outstanding Young Teacher
Funding Program” of the Ministry of Education, the famous teacher of Hubei Province, the young and
middle-aged experts with outstanding contributions in Hubei Province, the academic leaders of the cross-century
discipline of the Ministry of Finance, won the second prize of the Second Humanities and Social Sciences
Research Achievement Award of Colleges and Universities issued by the Ministry of Education. The second prize,
and won the third prize of outstanding teaching achievements issued by the Hubei Provincial People’s
Government and other awards and honors. He used to be the deputy dean of the Accounting School, the director
of the Accounting Master Education Center, the executive vice president of the Graduate School, and the dean of
the MBA College of Zhongnan University of Economics and Law. He is also the head of the second revision
research group for the Accounting Law of the Ministry of Finance, a member of the first session of the ASBE
Advisory Committee of the Ministry of Finance, the director and senior member of the Accounting Society of
China, and the vice chairman of the Environmental Accounting Professional Committee of the Accounting Society
of China. He is the vice chairman of China Association of Chief Financial Officers of Hubei Province and serves
as an independent director of Mhome Real Estate, Lens Technology and SDG Information. In 2012, he obtained
the independent director qualification certificate and has been an independent director of the company since May
2014.

Mr. Wu Tao, born in 1978, holds a master’s degree. He used to be the senior manager, business director and
internal audit committee of Guojin Securities Investment Banking Department. From 2011 to 2014, he served as


                                                       46
     司公限有份股心中游旅海东大南海                                                    2020   文全告报度年年
the deputy general manager and secretary of the board of directors of Shanghai RENLE Science & Technology
Co., Ltd. From March 2014 to September 2018, he has been serving as the vice chairman and vice president of
Shanghai Huantao Investment Management Co., Ltd. Since August 2015 to the present, he has been a supervisor
of Shanghai Hemin Investment Management Co., Ltd., from September 2018 to March 2020, he served as the
general manager of Shanghai Mingxi Dongsen Investment Co., Ltd., since September 2020, he has served as
independent director of Heilongjiang Traditional Chinese Medicine Co., Ltd. In 2017, he obtained an independent
director qualification certificate. Since March 2018, he has been serving as an independent director of the
Company.

Supervisor
Mr. Huang Wencai: was born in 1969, undergraduate degree, Mr. Huang once held the position of vice director of
Haikou meat association factory, director of Haikou food Co. Ltd. and assistant of general manager of Haikou
food Co. Ltd., deputy GM of Haikou Luoniushan Food Processing Co., Ltd. and deputy GM of Hainan
Luoniushan Meat Co., Ltd.; Currently he served as executive director of Baoting Luoniushan Food Co., Ltd., and
he held the position of Chairman of Supervisory Committee of the Company since 2002.

Ms. Zhang Xuli, born in 1983, holds a master’s degree, is a certified management consultant and an intermediate
economist. From 2009 to 2015, she served as a senior consultant and project manager of Beijing Industrial
Development Consulting Co., Ltd. From December 2015 to September 2020, she has been serving as the
investment director and GM of Luoniushan (Beijing) Investment Co., Ltd. Now he served as Director and General
Manager of Hainan (Tanniu) Wenchang Chicken Co., Ltd., and since March 2018, she has been serving as a
shareholder supervisor of the company.
Mr. Chen Gang, was born in 1966, the Han nationality, a junior accountant. He worked as accountant in Hainan
Sanya Phoenix Co., Ltd. from February 1988 to June 1989, worked as chief accountant in Sanya Hardware
Electrical Mall from July 1989 to September 1992, and serves as cost accounting, chief accountant, deputy GM
and GM of the financial dept. in the Company since October 1992. He serves as staff supervisor of the Company
since August 2016.
Senior executives
Mr. Ding Qin, born in 1971, Han nationality, holds a master’s degree, studied in Central South University from
1988 to 1992 and graduated as a bachelor of industrial trade, and studied and graduated as a postgraduate from
Hainan University from 2005 to 2008, majoring in agricultural extension. From 1998 to 2006, he served as the
general manager at Hainan Huacui Palm Garden Co., Ltd.; from 2010 to 2013, he served as the executive general
manager of the fixed income department of Heaven-Sent Capital Management Group Co., Ltd (Shanghai); from
2013 to 2017, he was appointed as the general manager of Wuhan East Lake Innovation Investment Management
Co., Ltd.; and he serves as the assistant general manager of the company since April 2018. Since August 2018, he
serves as the deputy general manager of the company.
Mr. Fu Zongren, was born in 1967, intermediate accountant, served as financial manager of the Company,
financial controller of Sanya Yalong Bay Universal Resort, and general manager of Financial Management Center
of Hainan Sunup Group, and serves as the financial administrator of the Company since April 2015.

                                                       47
        司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年年
Post-holding in shareholder’s unit

√ Applicable□ Not applicable

                                                                                                                           Whether
                                                                                                                           obtained
                                                           Position in
                                                                              Start dated of office    End date of      remuneration
        Name                    Shareholder’s unit       shareholder’s
                                                                                      term             office term           from
                                                               unit
                                                                                                                        shareholder’s
                                                                                                                           unit (Y/N)

                                                         President's
                    Luoniushan Co., Ltd.                                      August 2006             March 2014       Y
                                                         Secretary

                    Hainan Luoniushan Energy             General
                                                                              September 2009          February 2014    Y
                    Environmental Protection Co., Ltd.   manager

                    Hainan Luoniushan Agricultural
                                                         Chairman             October 2011            February 2014    Y
                    Technology Co., Ltd.

                                                         Assistant to the
 Tang Shanrong                                           President and
                                                         General
                    Luoniushan Co., Ltd.                                      March 2014              August 2016      Y
                                                         Manager of the
                                                         Administration
                                                         Department

                    Luoniushan Co., Ltd.                 Vice president       August 2016                              Y

                    Real Estate Branch of Luoniushan
                                                         Chairman             June 2018                                Y
                    Co., Ltd.

                                                         Investment
                    Luoniushan (Beijing) Investment      director,                                    September
                                                                              December 2015                            Y
                    Co., Ltd.                            general                                      2020
 Zhang Xuli                                              manager

                                                         Director,
                    Hainan (Tanniu) Wenchang Chicken
                                                         general              November 25, 2020                        Y
                    Co., Ltd.
                                                         manager

                                                         Executive
 Huang Wencai       Baoting Luoniushan Food Co., Ltd.                         July 12, 2019                            Y
                                                         director

 Note of
 post-holding in
                    N/A
 shareholder’s
 unit

Post-holding in other unit
√ Applicable□ Not applicable

                                                              Position in other      Start dated of    End date of         Whether
        Name                          Other unit
                                                                       unit           office term      office term         obtained

                                                              48
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年年
                                                                                                                          remuneration
                                                                                                                        from other unit
                                                                                                                             (Y/N)

                     Accounting School of Zhongnan                                   December
                                                               Full-time professor                                    Y
                     University of Economics and Law                                 2015

                     MHome Group Real Estate                   Independent
                                                                                     July 2020        July 2023       Y
                     Development Group Co., Ltd.               director

                                                               Independent
                     Lens Technology Co., Ltd.                                       July 2017        July 2021       Y
                                                               director
 Tang Guoping
                                                               Independent           November         November
                     Shenzhen SDG Information Co., Ltd.                                                               Y
                                                               director              2018             2021

                     Wuhan Cabio Biotech Engineering           Independent           December         December
                                                                                                                      Y
                     Co., Ltd.                                 director              2018             2021

                                                               Independent
                     Shengang Securities Co., Ltd.                                   June 2019        June 2022       Y
                                                               director

                                                               Deputy General
                                                               Manager,
                     Shanghai Reynolds Co., Ltd.                                     2011             2014            Y
                                                               Secretary of the
                                                               Board

                     Shanghai Huantao Investment               Vice Chairman,                         September
                                                                                     March 2014                       Y
                     Management Co., Ltd.                      Vice President                         2018
 Wu Tao
                     Shanghai Hemin Investment
                                                               Supervisor            August 2015                      N
                     Management Co., Ltd.

                     Shanghai Mingxi Dongsen Investment                              September
                                                               GM                                     March 2020      Y
                     Co., Ltd.                                                       2018

                     Heilongjiang Zhongrui Medicine Co.,       Independent           September
                                                                                                                      Y
                     Ltd.                                      director              2020

 Post-holding in
                     N/A
 other unit

Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable√ Not applicable


IV. Remuneration for directors, supervisors and senior executives

Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives

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


                                                                 49
       司公限有份股心中游旅海东大南海                                                                        2020   文全告报度年年
corresponding to their post provided by the general meeting and the board meeting.
2. In line with performance of their duties, directors, independent directors and supervisors should receive the
reimbursement from the Company on travel expense and Articles of Association implementation expense.


Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                                      In 10 thousand Yuan

                                                                         Total remuneration obtained                   Whether
                                                       Post-hold
     Name               Title          Sex     Age                       from the Company (before        obtained remuneration from related
                                                       ing status
                                                                                   taxes)                    party of the Company (Y/N)
 Yuan
             Chairman/General                          Currently
 Xiaopin                              M           57                                           57.13     N
             Manager                                   in office
 g
 Tang
                                                       Currently
 Shanron     Director                 M           41                                               4.8   Y
                                                       in office
 g
 Tang                                                  Currently
             Independent Director     M           56                                               4.8   N
 Guoping                                               in office
                                                       Currently
 Wu Tao      Independent Director     M           42                                               4.8   N
                                                       in office
             Chairman of
 Huang                                                 Currently
             supervisory              M           51                                               2.4   Y
 Wencai                                                in office
             committee
 ZhangX                                                Currently
             Supervisor               F           37                                               2.4   Y
 uli                                                   in office
 Chen                                                  Currently
             Supervisor               M           54                                           12.47     N
 Gang                                                  in office
 Fu          Person in charge of                       Currently
                                      M           53                                           32.29     N
 Zongren     finance                                   in office
 Ding                                                  Currently
             Deputy GM                M           49                                           31.93     N
 Qin                                                   in office
 Wang        Director /secretary of
                                                       Currently
 Hongjua     the Board/Deputy         F           44                                              42.3   N
                                                       in office
 n           GM
 Total                   --               --    --         --                                 195.32                      --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable√ Not applicable


V. Particulars of workforce

1. Number of staff, professional composition and education background

 The number of current employees of parent company (people)                                                                        120


                                                                    50
      司公限有份股心中游旅海东大南海                                                                 2020   文全告报度年年
 The number of current employees of main subsidiaries
                                                                                                                             0
 (people)
 Total number of current employees (people)                                                                              120
 The total number of current employees to receive pay (people)                                                           120
 The total number of retired staff and workers that the parent
                                                                                                                             0
 company and main subsidiaries need to bear the costs (people)
                                                      Professional composition
              Category of professional composition                         Number of professional composition (people)
 Production staff                                                                                                            65
 Salesman                                                                                                                    6
 Technical staff                                                                                                             17
 Financial staff                                                                                                             12
 Administrative staff                                                                                                        20
 Total                                                                                                                   120
                                                       Education background
 Category of education                                             Number (people)
 Graduate student                                                                                                            1
 Undergraduate                                                                                                               15
 Junior college above                                                                                                        35
 High school and below                                                                                                       69
 Total                                                                                                                   120


2. Remuneration policy


The compensation of company’s employees includes wages, bonuses, and benefits, which take the principle of
distributing according to the work, giving priority to efficiency and taking count of equity simultaneously, wage
increase adapting to the company’s business development and benefits improvement, optimizing the labor
allocation, pay level agreeing with the local average in the same industry. Set or adjust the wage standards in
accordance with the job valuation result, the local pay level in the same industry, the company’s annual operation
target and operational budget, and the individual performance.


3. Training programs


Strengthen the training of senior executives by combining the voluntary organization of training and the external
training, widen the thought, and enhance the decision-making ability and modern operation and management
ability. Strengthen the training of middle management, improve the overall quality of managers, improve the
knowledge structure, and enhance the comprehensive management capability, innovation capability and
implementation capability. Strengthen the training of professional and technical personnel, improve the theoretical
level of technology and professional skills, and enhance the technological innovation, technical transformation
capability. Strengthen the technical training of hotel service staff, constantly improve the professional skills and
service skills of service staff, and enhance the ability to strictly fulfill their responsibilities. Strengthen the cultural

                                                                 51
      司公限有份股心中游旅海东大南海                                                        2020   文全告报度年年
training, improve the cultural level of personnel at all levels, and enhance the overall cultural quality of the staff
team.


4. Labor outsourcing

□ Applicable√ Not applicable




                                                         52
      司公限有份股心中游旅海东大南海                                                                   2020   文全告报度年年

                                  Section X. Corporate Governance

I. Corporate governance of the Company


During reporting period, the Company further completed governance structure and system, perfected internal
control mechanism and system construction and normalized corporate operation, strictly in accordance with
relative rules and regulations of the Company Law, Securities Law and Listing Rules of Shenzhen Stock
Exchange. Till end of reporting period, governance structure of the Company is basically in line with requirement
of the Governance Rules of Listed Company.
1. During the reporting period, the Company’s general meeting, board meeting and supervisors meeting exercised
the decision rights, execution rights and supervision rights respectively with clear responsibilities, mutual restrict,
operation specification and effective operation. The procedures of meeting holding, proposal review, and
decision-making in these three meetings were in compliance with relevant provisions. The board meeting
comprises strategy and development committee, audit committee, nomination committee, remuneration and
appraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing a
strong support for the board meeting’s major scientific management decision.
2. In strict accordance with the requirements of Rules Governing the Listing of Stock, directors performed its
duties with honest, trust, diligence and independence, protected the legitimate rights and interests of minority
shareholders with loyalty to their interests; Supervisors effectively supervised and checked independent directors,
senior management and their financial situations.

Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.


II. Independence of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance

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

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

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

                                                                53
        司公限有份股心中游旅海东大南海                                                                                   2020   文全告报度年年
internal institutions operate independently and manage independently with integrated structures.

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


III. Horizontal competition

□ Applicable√ Not applicable


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

1. Annual Shareholders’ General Meeting in the report period

                                      Ratio of
  Session of                          investor                          Date of
                     Type                                Date                                                  Index of disclosure
   meeting                           participati                       disclosure
                                         on
 Annual
                                                                                       The “Resolution Notice of Annual Shareholders’ General
 Shareholde
                                                   May 22,          May 23,            Meeting of 2019” (No.: 2020-018) published on Securities
 rs General       AGM                   20.78%
                                                   2020             2020               Times, Hong Kong Commercial Daily and Juchao website
 Meeting
                                                                                       (www.cninfo.com.cn) dated 23 May 2020
 2019


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

□ Applicable    √ Not applicable


V. Responsibility performance of independent directors

1. The attending of independent directors to Board meetings and general meeting


                                 The attending of independent directors to Board Meeting & general meeting

                Times of Board                                  Times of
                                                                                                                                        Times of
 Indepen           meeting                                  attending the            Times of                    Absent the Meeting
                                          Times of                                                  Times of                            attend the
      dent       supposed to                               Board Meeting             entrusted                    for the second time
                                          Presence                                                  Absence                              general
 Director        attend in the                                    by                 presence                        in a row (Y/N)
                                                                                                                                        meeting
                 report period                             communication

 Tang
 Guopin                          5                   0                      5                   0          0     N                                 1
 g

 Wu Tao                          5                   0                      5                   0          0     N                                 1

Explanation on absent the board meeting for the second time in a row:
Nil


                                                                                54
      司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年年
2. Objection for relevant events from independent directors

Independent directors come up with objection about Company’s relevant matters
□Yes √No
No objections arising from the independent directors on relevant events of the Company during the Period


3. Other explanation about responsibility performance of independent directors

The opinions from independent directors have been adopted

√Yes □No
Explanation on advice that accepted/not accepted from independent directors

The company's main business is single, small in scale, and weak in anti-risk capabilities. It is recommended that
while strengthening the main business, the company continues to look for suitable projects for asset reorganization,
enrich the industrial structure, increase main business income and profit growth points, and enhance the
company's ability to resist risks and competitiveness.


VI. Duty performance of the special committees under the board during the reporting period

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

1. Audit Committee

During the reporting period, the audit committee audited the first quarter and the three quarter financial report of
2020, and the 2020 semi-annual financial report. In the process of annual financial report auditing 2020 process,
audit committee members worked in accordance with the relevant requirements by faithfully performing audit
committee’s responsibilities:

Before the entrance of annual examination certified public accountants, the audit committee members listened to
the management statements of the Company's operating condition in 2020 and the financial status as well as the
report on annual financial report audit work arrangement of 2020, communicated with annual examination
certified public accountants about issues such as personnel structure of the working group, audit plan, risk
judgment, annual audit focus and so on; In early January 2021, in annual report audit process, audit committee
members listened to the work report by annual examination certified public accountants and the company
management; In early April 2021, audit committee members reviewed submitted financial and accounting reports.
The financial and accounting reports audited was formatted strictly to Accounting Standards for Business
Enterprises and Accounting System for Business Enterprises, and this report fairly reflected the Company’s assets,
liabilities, rights and interests and operating situation without significant errors and omissions. The annual audit
report of 2020 by audit institutions was agreed to be submitted to the board.

The Company's board of directors regarded that the external auditors BDO China Shu Lun Pan Certified Public


                                                                55
      司公限有份股心中游旅海东大南海                                                                  2020   文全告报度年年
Accountants LLP faithfully performed the audit responsibility, and suggested to renew as the Company’s annual
financial audit of 2021.
2. Remuneration and Appraisal Committee
During the reporting period, the remuneration committee members of the Company board carried out their duties
strictly to relevant regulations, inspected remuneration policies and programs for directors, supervisors and senior
managers, and appraised the performance of directors, supervisors and senior management according to senior
manager remuneration appraisal. By the end of the reporting period, the Company has not implemented option
scheme.

3. Strategy committee
During the reporting period, the strategy committee of the company's board of directors put forward opinions on
the company's development plans and investment decisions, and believed that the company should strive to
strengthen its main business, ensure the profit of the main business year, and avoid the risk of delisting, at the
same time, continued to look for suitable projects for asset reorganization, enrich the industrial structure, and
increase main business income and profit growth points.

4. Nomination committee

During the reporting period, the company did not have any nominations.


VII. Works from Supervisory Committee

The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period


VIII. Examination and incentives of senior management

1. Pursuant to People-oriented Principle, the Company employs outstanding persons in long-term, and admits the
best candidates on the premise of openness, fairness, justice. Those who pass trial comprehensive appraisal and be
nominated by general managers and approved by the board meeting can be employed as senior management of the
Company.
2. The Company adopts a clear appraisal system in which assessment methods are made to the performance and
duty fulfillment of senior management. Assessments are carried out monthly and annually by the same level and
higher level and the results are taken as factors for post lift and rewards and punishment of senior management.
3. The Company sets up effective incentive mechanism, including material incentives and spiritual incentives. The
clear rewards and punishments, balance between remuneration and work performance, survival of fittest
encourage senior management to make constantly progress and improve their own comprehensive ability which in
turn help the Company develop rapidly.




                                                                56
           司公限有份股心中游旅海东大南海                                                                      2020    文全告报度年年
  IX. Internal Control

  1. Details of major defects in IC appraisal report that found in reporting period

  □ Yes √ No


  2. Self-appraisal Report of Internal Control


Disclosure date of full internal control appraisal report                        April 24, 2021

                                                                                 Relevant information found in Appraisal Report of Internal
Disclosure index of full internal control appraisal report                       Control for 2020 published on Juchao Website dated 24 April
                                                                                 2021

The ratio of the total assets of units included in the scope of evaluation
accounting for the total assets on the company's consolidated financial                                                                 100.00%
statements

The ratio of the operating income of units included in the scope of
evaluation accounting for the operating income on the company's                                                                         100.00%
consolidated financial statements

                                                            Defects Evaluation Standards

     Category                              Financial Reports                                           Non-financial Reports

                      Major deficiencies: fraud of directors, supervisors and        Major deficiencies: the company is lack of democratic
                      senior management; material misstatements are found in         decision-making process; the company’s decision-making
                      current financial statements by the certified public           process leads to major mistakes; the company violates the
                      accountant but are not found in the process of internal        state laws and regulations and is severely punished;
                      control; It’s found that the significant internal control     serious brain drain of the company’s senior management
                      deficiencies that had been discovered and reported to          personnel and senior technical staff; frequent negative
                      the management were not yet corrected within the               news on media covering a wide range and the negative
                      stipulated time; the audit committee’s supervision has        effects are not eliminated; the company’s significant
                      no effect on the company’s external financial reports         business is lack of system control or systematic-ness is
                      and internal control over financial reporting.                 invalid; the major deficiencies and significant deficiencies
Qualitative           Significant deficiencies: the selection and application of     of the company’s internal controls have not been rectified
criteria              accounting policies are not in accordance with the             and reformed; the company is punished by CSRC or
                      GAAP; anti-fraud program and control measures have             warned by stock exchange.
                      not been established; the accounting treatment of              Significant deficiencies: the company has democratic
                      unusual or special transactions has no appropriate             decision-making process which is not complete; the
                      control mechanisms or have not implemented the                 company’s decision-making process leads to general
                      control    mechanisms      and        has   no   appropriate   mistakes; the company violates the enterprise internal
                      compensatory controls; the control to period-end               regulations which causes losses; serious brain drain of the
                      financial reporting process has one or more deficiencies       company’s business personnel in key positions; negative
                      and cannot reasonably ensure that the organizational           news on media affecting local areas; the company’s
                      financial statements are true and accurate.                    significant   business   system     has   deficiencies;   the

                      General deficiencies: deficiencies that out of the             significant deficiencies and general deficiencies of the


                                                                        57
           司公限有份股心中游旅海东大南海                                                                       2020   文全告报度年年
                      recognition of major and significant deficiencies should       company’s internal controls have not been rectified and
                      be recognized as general deficiencies                          reformed
                                                                                     General deficiencies: deficiencies that out of the
                                                                                     recognition of major and significant deficiencies should be
                                                                                     recognized as general deficiencies

                      Major deficiencies: After considering the compensating
                      control measures and the actual deviation rate, the
                      overall impact level of the deficiency is higher than the
                      significance level (10% of the total profit).
                                                                                     Major deficiencies: direct property loss is more than
                      Significant     deficiencies:    After    considering    the
                                                                                     100,000 Yuan;
                      compensating control measures and the actual deviation
Quantitative                                                                         Significant deficiencies: direct property loss ranged from 1
                      rate, the overall impact level of the deficiency is lower
standard                                                                             Yuan to 100,000 Yuan;
                      than the significance level (10% of the total profit), but
                                                                                     General deficiencies: direct property loss is lower than
                      higher than the generality level (5% of the total profit).
                                                                                     10,000 Yuan
                      General       deficiencies:     After    considering     the
                      compensating control measures and the actual deviation
                      rate, the overall impact level of the deficiency is lower
                      than the generality level (5% of the total profit).

Amount of
significant defects
                                                                                                                                               0
in financial
reports

Amount of
significant defects
                                                                                                                                               0
in non-financial
reports

Amount of
important defects
                                                                                                                                               0
in financial
reports

Amount of
important defects
                                                                                                                                               0
in non-financial
reports


  X. Auditing report of internal control

  √ Applicable□ Not applicable

                                                    Deliberations in Internal Control Audit Report
To All Shareholders of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.:
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese Certified



                                                                       58
           司公限有份股心中游旅海东大南海                                                                      2020   文全告报度年年
Public Accountant, we audited the effective-ness of the financial report’s internal control for Hainan Dadonghai Tourism Center (Holdings)
Co., Ltd. (the Company) dated 31 December 2020.
I. As for responsibility of internal control
The Company established and improved and implemented internal control effectively pursuit to Basic Norms of Enterprises Internal Control,
Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control, and board of the director is
responsible for evaluating its effectiveness.
II. Auditor’s responsibilities
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit. And
disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control

The internal control has an inherent limitation, and exist mistakes that cannot prevent and being discovered. Moreover, the internal control
might be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to speculate future
effectiveness of the internal control in line with the auditing result has a certain risk. 
IV. Auditing opinion: in our opinion
The Company, in line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control of
financial report in all major aspects dated 31 December 2020.

       BDO CHINA Shu Lun Pan CPA (LLP)                                  Certified Public Accountant of China: Li Jinhua
                                                                        Certified Public Accountant of China: Zhu Meirong
                    ShanghaiChina                                     22 April 2021

Disclosure details of audit report of
                                            Disclosed
internal control

Disclosure date of audit report of
                                            April 24, 2021
internal control (full-text)

Index of audit report of internal           Relevant information found in Self-appraisal Report of Internal Control for 2020 published on Juchao
control (full-text)                         Website dated 24 April 2021.

Opinion type of auditing report of
                                            Standard unqualified
IC

whether the non-financial report
                                            No
had major defects

     Carried out modified opinion for internal control audit report from CPA
     □Yes √ No
     The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
     √ Yes □ No




                                                                           59
      司公限有份股心中游旅海东大南海                                                          2020   文全告报度年年

                                      Section XI. Corporation bonds

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




                                                            60
     司公限有份股心中游旅海东大南海                                                         2020   文全告报度年年

                                   Section XII. Financial Report

I. Audit report

 Type of audit opinion                Standard unqualified opinion

 Signing date of audit report         April 22, 2021

 Name of audit institute              BDO CHINA Shu Lun Pan Certified Public Accountants (LLP)

 Document serial of audit report      PCPAR [2021] No. ZA11117

 Name of the CPA                      Li Jinhua, Zhu Meirong



                                                  Auditor’s Report
To all shareholders of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.,
I. Opinion
We have audited the financial statements of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafter
referred to as "the Company"), which comprise the consolidated and parent Company’s balance sheet of 31
December 2020 and profit statement, and cash flow statement, and statement on changes of shareholders’ equity
for the year ended, and notes to the financial statements for the year ended.
In our opinion, the attached financial statements are prepared in accordance with the provisions of the Accounting
Standings for Enterprises in all major respects, it fairly reflects the consolidate and parent company’s financial
status as of 31 December 2020 under the name of Dadonghai well we the operation results and cash flow for the
year of 2020.

II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.

We identified the following as key audit issues that need to be communicated in the audit report:
         Key audit mattes                                               Countermeasures

                                                           61
          司公限有份股心中游旅海东大南海                                                                         2020   文全告报度年年
(i) Recognition of room income
The Company had operating income of For room sales revenue, we understood and evaluated the management's design of internal
15.512 million yuan in 2020, of which room controls in sales processes from approval of contracts to the accounting of sales revenue and
income was 11.721 million yuan, accounting tested the effectiveness of the implementation of key control points.
for 75.56% of operating income.                    Via sample inspection of contracts and management interviews, we tested the timing point of
As income is a key performance indicator ofsignificant risks and remuneration related to room revenue recognition, and thus assessed the
Dadonghai Holdings, which causes intrinsic Company's income recognition policies.
risks that the income may be recognized in an In addition, we implemented the following procedures in respect of room revenue by using
incorrect period or be manipulated to achieve sampling:
the target or expected level, we identify the
                                                   (1) Analyze income and gross profit margin in combination with the type of income, and judge
room revenue of Dadonghai Holdings as a
                                                   whether there is any abnormal fluctuation in the income amount in the current period.
key audit matter.
                                                   (2) Choose samples from reservation records and check-in records of rooms, check the samples
                                                   against the contracts, accounting records, invoice issuance and payment receipts related to the
                                                   corresponding sales, and pay special attention to whether the samples before and after the balance
                                                   sheet date are included in the correct accounting period to assess whether room revenue is
                                                   confirmed during the appropriate period.
                                                   (3) With respect to new customers and those bringing large amount of income in the current
                                                   period, implement the external confirmation of incurred amounts and the balances, and analyzed
                                                   the authenticity thereof in combination with the collection of payments and occupancy situation.
                                                   At the same time, inquire the business information of some customers to further confirm the
                                                   authenticity of transactions therewith.

(ii) Confirmation of long-term deferred expenses for guest room decoration
Dadonghai Co., Ltd. renovated the guest For the confirmation and amortization of long-term unamortized expenses, we implemented the
room B building and hotel landscape of South following procedures:
China Hotel in 2020, and a total of (1) We understood and evaluated the effectiveness of Dadonghai's internal control implementation
17,066,700yuan has been confirmed for of the investment and decoration of Building B.
long-term unamortized expenses, which has (2) Collected and inspected the relevant documents of the board of directors on the investment and
been put into use on October 12, 2020, with renovation of Building B by Dadonghai Co., Ltd., the bidding documents for decoration and
amortization of 744,732.21 yuan in the renovation, and the notice of bid winning, etc. to confirm the appropriateness of the cost of the
current year.                          decoration and renovation project of Building B.
As the total amount incurred is relatively (3) Checked the key documents such as the renovation project construction contract, payment
significant and has a greater impact on this receipt, and project acceptance certificate to confirm the authenticity of the cost of the decoration
year and subsequent years, and there is a risk and renovation project and the accuracy of the time point when the project reaching the intended
that it may be manipulated to reach the target usable state.
or   expected   level,   we   recognize      the
                                                   (4) Calculated the amortization of long-term unamortized expenses to confirm the accuracy of the
confirmation of the long-term unamortized
                                                   amortization amount.
expenses for the guest room decoration of
                                                   (5) Made external confirmations to the engineering decoration company to confirm the
Dadonghai Co., Ltd. as a key audit matter.
                                                   authenticity and completeness of the decoration amount. At the same time, inquired about the
                                                   industrial and commercial information of the engineering decoration company, combined with the
                                                   external confirmations, and comprehensively judged whether the engineering decoration company
                                                   had a related party relationship with Dadonghai.

     IV. Other information

                                                                           62
     司公限有份股心中游旅海东大南海                                                           2020   文全告报度年年
The management of the Company (hereinafter referred to as Managers) is responsible for the other information.
The other information comprises information of the Company's annual report in 2020, but excludes the financial
statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern (if applicable) and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

                                                            63
     司公限有份股心中游旅海东大南海                                                          2020   文全告报度年年
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company,
and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation (Including disclosure), structure and content of the financial statements, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.


(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the merge financial statements. We in charge of the
guidance, supervision and enforcement of the group’s auditing and bear all liability for the opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.


     BDO CHINA Shu Lun Pan                       Certified Public Accountant of China: Li Jinhua
Certified Public Accountants (LLP)

                                                         Certified Public Accountant of China: Zhu Meirong

      ShanghaiChina                                             22 April 2021




                                                          64
      司公限有份股心中游旅海东大南海                                                        2020   文全告报度年年

II. Financial Statement

Expressed in Renminbi unless otherwise stated


1. Consolidated balance sheet


Prepared by HAINAN DADONGHAI TOURISM CENTRE (HOLDINGS) CO., LTD.
                                                   December 31, 2020
                                                                                                              In RMB

                                  Item                             December 31, 2020           December 31, 2019

 Current assets:

      Monetary funds                                                         2,924,459.75                 7,422,939.89

      Settlement provisions

      Capital lent

      Tradable financial assets

      Derivative financial assets

      Note receivable

      Account receivable                                                       429,303.32                   311,083.92

      Receivable financing

      Accounts paid in advance

      Insurance receivable

      Reinsurance receivables

      Contract reserve of reinsurance receivable

      Other account receivable                                                 432,560.55                   571,744.52

        Including: Interest receivable

                   Dividend receivable

      Buying back the sale of financial assets

      Inventories                                                            2,009,928.83                   254,257.19

       Contractual assets

      Assets held for sale

      Non-current asset due within one year

      Other current assets                                                   3,977,452.24                 2,574,442.57

 Total current assets                                                        9,773,704.69                11,134,468.09

 Non-current assets:


                                                          65
     司公限有份股心中游旅海东大南海                                 2020   文全告报度年年
     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                          7,435,433.31                 7,909,956.87

     Fixed assets                                   34,694,023.75                35,075,195.98

     Construction in progress                                                       488,522.10

     Productive biological asset

     Oil and gas asset

      Right-of-use assets

     Intangible assets                              20,580,474.72                21,392,861.88

     Expense on Research and Development

     Goodwill

     Long-term expenses to be apportioned           24,957,702.73                11,520,179.33

     Deferred income tax asset

     Other non-current asset

Total non-current asset                             87,667,634.51                76,386,716.16

Total assets                                        97,441,339.20                87,521,184.25

Current liabilities:

     Short-term loans

     Loan from central bank

     Capital borrowed

     Trading financial liability

     Derivative financial liability

     Note payable

     Account payable                                  808,710.46                  1,250,409.75

     Accounts received in advance                                                   786,715.42

      Contractual liability                           626,285.33

     Selling financial asset of repurchase

     Absorbing deposit and interbank deposit

     Security trading of agency


                                               66
     司公限有份股心中游旅海东大南海                                       2020   文全告报度年年
     Security sales of agency

     Wage payable                                          2,595,861.40                 2,552,996.37

     Taxes payable                                          366,892.96                    307,257.85

     Other account payable                                 6,167,763.36                 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           6,621,497.94

     Other current liabilities                                37,577.12

Total current liabilities                                 17,224,588.57                 7,544,895.25

Non-current liabilities:

     Insurance contract reserve

     Long-term loans                                       9,893,757.94

     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                         1,914,592.66

Total non-current liabilities                             13,298,035.64                 1,489,685.04

Total liabilities                                         30,522,624.21                 9,034,580.29

Owner’s 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


                                                    67
      司公限有份股心中游旅海东大南海                                                    2020   文全告报度年年
      Other comprehensive income

      Reasonable reserve

      Surplus public reserve

      Provision of general risk

      Retained profit                                                 -351,324,135.02               -339,756,246.05

 Total owner’ s equity attributable to parent company                  66,918,714.99                 78,486,603.96

      Minority interests

 Total owner’ s equity                                                 66,918,714.99                 78,486,603.96

 Total liabilities and owner’ s equity                                 97,441,339.20                 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                        December 31, 2020          December 31, 2019

 Current assets:

      Monetary funds                                                   2,923,474.26                  7,421,452.59

      Trading financial assets

      Derivative financial assets

      Note receivable

      Account receivable                                                429,303.32                    311,083.92

      Receivable financing

      Accounts paid in advance

      Other account receivable                                          432,560.55                    571,744.52

         Including: Interest receivable

                     Dividend receivable

      Inventories                                                      2,009,928.83                   254,257.19

      Contractual assets

      Assets held for sale

      Non-current assets maturing within one year

      Other current assets                                             3,977,452.24                  2,574,442.57

 Total current assets                                                  9,772,719.20                 11,132,980.79

 Non-current assets:


                                                         68
     司公限有份股心中游旅海东大南海                               2020   文全告报度年年
     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                        7,435,433.31                7,909,956.87

     Fixed assets                                 34,694,023.75              35,075,195.98

     Construction in progress                                                   488,522.10

     Productive biological assets

     Oil and natural gas assets

     Right-of-use assets

      Intangible assets                           20,580,474.72              21,392,861.88

     Research and development costs

     Goodwill

     Long-term deferred expenses                  24,957,702.73               11,520,179.33

     Deferred income tax assets

     Other non-current assets

Total non-current assets                          88,667,634.51              77,386,716.16

Total assets                                      98,440,353.71              88,519,696.95

Current liabilities

     Short-term borrowings

     Trading financial liability

     Derivative financial liability

     Notes payable

     Account payable                                808,710.46                 1,250,409.75

     Accounts received in advance                                               786,715.42

     Contractual liability                          626,285.33

     Wage payable                                  2,595,861.40                2,552,996.37

     Taxes payable                                  366,892.96                  307,210.05

     Other accounts payable                        7,167,232.06                3,646,984.56

        Including: Interest payable

                Dividend payable

     Liability held for sale


                                             69
      司公限有份股心中游旅海东大南海                                        2020   文全告报度年年
      Non-current liabilities due within one year           6,621,497.94

      Other current liabilities                                 37,577.12

 Total current liabilities                                18,224,057.27                  8,544,316.15

 Non-current liabilities:

      Long-term loans                                       9,893,757.94

      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                         1,914,592.66

 Total non-current liabilities                            13,298,035.64                  1,489,685.04

 Total liabilities                                        31,522,092.91                 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                                    -351,324,589.21              -339,757,154.25

 Total owner’s equity                                    66,918,260.80                 78,485,695.76

 Total liabilities and owner’s equity                    98,440,353.71                 88,519,696.95


3. Consolidated profit statement

                                                                                               In RMB

                                  Item                   2020                         2019


                                                    70
         司公限有份股心中游旅海东大南海                                                        2020   文全告报度年年
I. Total operating income                                                      15,511,989.37               25,935,405.44

         Including: Operating income                                           15,511,989.37               25,935,405.44

                Interest income

                Insurance gained

                Commission charge and commission income

II. Total operating cost                                                       27,583,513.78               27,008,417.09

         Including: Operating cost                                             12,768,462.84                11,082,766.94

                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                                                   499,451.99                   722,523.20

                Sales expense                                                   4,853,722.93                 5,606,474.47

                Administrative expense                                          9,026,426.56                 9,772,412.86

                R&D expense

                Financial expense                                                435,449.46                  -175,760.38

                  Including: Interest expenses                                   551,742.76

                              Interest income                                    155,036.56                   210,556.05

         Add: other income                                                       817,825.34                   292,643.89

             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 “-”)

             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 “-”)                -63,433.95                    -5,032.26

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


                                                                          71
     司公限有份股心中游旅海东大南海                                                         2020   文全告报度年年
           Income from assets disposal (Loss is listed with “-”)

III. Operating profit (Loss is listed with “-”)                          -11,317,133.02                 -785,400.02

     Add: Non-operating income                                                286,427.86                 1,555,255.92

     Less: Non-operating expense                                              537,183.81                    13,086.64

IV. Total profit (Loss is listed with “-”)                               -11,567,888.97                  756,769.26

     Less: Income tax expense                                                                                  47.80

V. Net profit (Net loss is listed with “-”)                              -11,567,888.97                  756,721.46

  (i) Classify by business continuity

     1.continuous operating net profit (net loss listed with ‘-”)        -11,567,888.97                  756,721.46

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

  (ii) Classify by ownership

     1.Net profit attributable to owner’s of parent company               -11,567,888.97                  756,721.46

     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

              5.Cash flow hedging reserve


                                                                      72
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年年
             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                                                    -11,567,888.97                       756,721.46

        Total comprehensive income attributable to owners of
                                                                                    -11,567,888.97                       756,721.46
 parent Company

      Total comprehensive income attributable to minority
 shareholders

 VIII. Earnings per share:

       (i) Basic earnings per share                                                         -0.0318                          0.0021

      (ii) Diluted earnings per share                                                       -0.0318                          0.0021

As for the enterprise combination under the same control, the net profit achieved by the combined party before consolidation was 0
Yuan in the period while 0 Yuan achieved last period
Legal Representative: Yuan Xiaoping
Accounting Principal: Fu Zongren
Accounting Firm’s Principal: Fu Zongren


4. Profit statement of parent Company

                                                                                                                             In RMB

                                 Item                                             2020                            2019

 I. Operating income                                                                 15,511,989.37                  25,935,405.44

      Less: Operating cost                                                          12,768,462.84                    11,082,766.94

           Taxes and surcharge                                                           499,451.99                      722,523.20

           Sales expenses                                                             4,853,722.93                    5,606,474.47

           Administration expenses                                                    9,026,226.56                    9,772,412.86

           R&D expenses

           Financial expenses                                                            435,195.45                      -174,607.65

                Including: interest expenses                                             551,742.76

                         Interest income                                                 155,020.57                      209,033.32

      Add: other income                                                                  817,825.34                      292,643.89

           Investment income (Loss is listed with “-”)

           Including: Investment income on affiliated Company
 and joint venture

                The termination of income recognition for

                                                                   73
         司公限有份股心中游旅海东大南海                                                           2020   文全告报度年年
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 “-”)

              Loss of credit impairment (Loss is listed with “-”)                 -63,433.95                    -5,032.26

              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 “-”)                                 -11,316,679.01                 -786,552.75

         Add: Non-operating income                                                  286,427.86                 1,555,220.92

         Less: Non-operating expense                                                537,183.81                    13,086.64

III. Total Profit (Loss is listed with “-”)                                    -11,567,434.96                  755,581.53

         Less: Income tax

IV. Net profit (Net loss is listed with “-”)                                   -11,567,434.96                  755,581.53

         (i) continuous operating net profit (net loss listed with ‘-”)        -11,567,434.96                  755,581.53

         (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


                                                                            74
      司公限有份股心中游旅海东大南海                                                          2020   文全告报度年年
               6.Translation differences arising on translation of
 foreign currency financial statements

               7.Other

 VI. Total comprehensive income                                           -11,567,434.96                        755,581.53

 VII. Earnings per share:

       (i) Basic earnings per share                                                -0.0318                         0.0021

      (ii) Diluted earnings per share                                              -0.0318                         0.0021


5. Consolidated cash flow statement

                                                                                                                   In RMB

                                     Item                                 2020                           2019

 I. Cash flows arising from operating activities:

      Cash received from selling commodities and providing labor
                                                                           15,291,982.42                  27,678,170.32
 services

      Net increase of customer deposit and interbank deposit

       Net increase of loan from central bank

      Net increase of capital borrowed from other financial
 institution

      Cash received from original insurance contract fee

      Net cash received from reinsurance business

      Net increase of insured savings and investment

      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

      Other cash received concerning operating activities                        954,747.04                2,240,358.73

 Subtotal of cash inflow arising from operating activities                 16,246,729.46                  29,918,529.05

      Cash paid for purchasing commodities and receiving labor
                                                                            8,610,462.77                   7,564,247.62
 service

      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


                                                                     75
     司公限有份股心中游旅海东大南海                                                       2020   文全告报度年年
     Cash paid for interest, commission charge and commission

         Cash paid for bonus of guarantee slip

     Cash paid to/for staff and workers                                  11,285,378.24                12,622,537.61

     Taxes paid                                                             778,432.92                 1,725,491.14

     Other cash paid concerning operating activities                      2,301,723.51                 3,292,591.17

Subtotal of cash outflow arising from operating activities               22,975,997.44                25,204,867.54

Net cash flows arising from operating activities                          -6,729,267.98                4,713,661.51

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
                                                                              8,300.00                    68,870.00
long-term assets

     Net cash received from disposal of subsidiaries and other units

     Other cash received concerning investing activities

Subtotal of cash inflow from investing activities                             8,300.00                    68,870.00

     Cash paid for purchasing fixed, intangible and other long-term
                                                                         13,741,025.28                12,723,946.92
assets

     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                       13,741,025.28                12,723,946.92

Net cash flows arising from investing activities                         -13,732,725.28               -12,655,076.92

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                                         3,299,238.76

     Cash paid for dividend and profit distributing or interest paying      528,722.34

     Including: Dividend and profit of minority shareholder paid by
subsidiaries

     Other cash paid concerning financing activities


                                                                 76
      司公限有份股心中游旅海东大南海                                                         2020   文全告报度年年
 Subtotal of cash outflow from financing activities                        3,827,961.10

 Net cash flows arising from financing activities                         15,963,513.12

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

 V. Net increase of cash and cash equivalents                             -4,498,480.14                   -7,941,415.41

      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               2,924,459.75                   7,422,939.89


6. Cash flow statement of parent Company

                                                                                                                 In RMB

                                   Item                                  2020                           2019

 I. Cash flows arising from operating activities:

      Cash received from selling commodities and providing labor
                                                                          15,291,982.42                   27,678,170.32
 services

      Write-back of tax received

      Other cash received concerning operating activities                       954,731.05                 2,238,801.00

 Subtotal of cash inflow arising from operating activities                16,246,713.47                   29,916,971.32

      Cash paid for purchasing commodities and receiving labor
                                                                           8,610,462.77                    7,564,247.62
 service

      Cash paid to/for staff and workers                                  11,285,378.24                   12,622,537.61

      Taxes paid                                                                778,385.12                 1,725,491.14

      Other cash paid concerning operating activities                      2,301,253.51                    3,292,221.17

 Subtotal of cash outflow arising from operating activities               22,975,479.64                   25,204,497.54

 Net cash flows arising from operating activities                          -6,728,766.17                   4,712,473.78

 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
                                                                                  8,300.00                     68,870.00
 long-term assets

      Net cash received from disposal of subsidiaries and other units

      Other cash received concerning investing activities

 Subtotal of cash inflow from investing activities                                8,300.00                     68,870.00

      Cash paid for purchasing fixed, intangible and other long-term
                                                                          13,741,025.28                   12,723,946.92
 assets

      Cash paid for investment


                                                                    77
      司公限有份股心中游旅海东大南海                                                                    2020   文全告报度年年
      Net cash received from subsidiaries and other units obtained

      Other cash paid concerning investing activities

 Subtotal of cash outflow from investing activities                                    13,741,025.28                 12,723,946.92

 Net cash flows arising from investing activities                                     -13,732,725.28                -12,655,076.92

 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                                                                 500,000.00

 Subtotal of cash inflow from financing activities                                     19,791,474.22                      500,000.00

      Cash paid for settling debts                                                      3,299,238.76

      Cash paid for dividend and profit distributing or interest paying                   528,722.34

      Other cash paid concerning financing activities

 Subtotal of cash outflow from financing activities                                     3,827,961.10

 Net cash flows arising from financing activities                                      15,963,513.12                      500,000.00

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

 V. Net increase of cash and cash equivalents                                          -4,497,978.33                 -7,442,603.14

      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                            2,923,474.26                  7,421,452.59


7. Consolidate change of owners’ equity

Current period
                                                                                                                             In RMB
                                                                                   2020
                                                Owners’ equity attributable to the parent Company
                                                                      L O           P
                                                                      e t           r                                         M
                                                                             R
                                                                      s h           o                                         i
                                                                             e
                                                                      s e        S v                                          n
                                                                             a
                                                                      : r        u i                                          o
                                                                             s
                                                                                 r s                                          r
                                                                             o
                                                                      I c        p i                                          i
                                                                             n
                                                                      n o        l o                                          t
                                                                             a
                                                                      v m        u n                    o                     y
                                         Other                               b
  Item                                                                e p        s                      t                         Total owners’
                                         equity      Capital                 l
                      Share capital                                   n r           o Retained profit   h      Subtotal       i      equity
                                         instru      reserve                 e
                                                                      t e        r f                    e                     n
                                          ment                        o h        e                      r                     t
                                                                             r
                                                                      r e        s g                                          e
                                                                             e
                                                                      y n        e e                                          r
                                                                             s
                                                                         s       r n                                          e
                                                                             e
                                                                      s i        v e                                          s
                                                                             r
                                                                      h v        e r                                          t
                                                                             v
                                                                      a e           a                                         s
                                                                             e
                                                                      r             l
                                                                      e i

                                                                    78
              司公限有份股心中游旅海东大南海                                                         2020   文全告报度年年
                                                                         s n   r
                                                                           c   i
                                                                           o   s
                                                                           m   k
                                                                           e
                                                P
                                                e
                                                r
                                                p
                                                e
                                                t
                                                u
                                              P
                                                a
                                              r
                                                l
                                              e
                                              f
                                                c
                                              e
                                                a
                                              r     O
                                                p
                                              r     t
                                                i
                                              e     h
                                                t
                                              d     e
                                                a
                                                    r
                                                l
                                              s
                                              t
                                                s
                                              o
                                                e
                                              c
                                                c
                                              k
                                                u
                                                r
                                                i
                                                t
                                                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
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                                                             -11,567,888.97      -11,567,888.97        -11,567,888.97
listed with “-”)
  (i) Total comprehensive
                                                                                   -11,567,888.97      -11,567,888.97        -11,567,888.97
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

                                                                        79
             司公限有份股心中游旅海东大南海                                                                       2020   文全告报度年年
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
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
                            364,100,000.00            54,142,850.01                            -351,324,135.02        66,918,714.99       66,918,714.99
the report period
       Last Period
                                                                                                                                      In RMB
                                                                                       2019
                                                                                                                                      M
                                                                                                                                      i
                                                                                                                                      n
                                                                                                                                      o
                                                                                                                                      r
                                                                                                                                      i
                                                                                                                                      t
                                                                                                                                      y
                                                                                                                                          Total owners’
                                                   Owners’ equity attributable to the parent Company
                                                                                                                                      i      equity
                                                                                                                                      n
                                                                                                                                      t
                                                                                                                                      e
                                                                                                                                      r
                                                                                                                                      e
                                                                                                                                      s
         Item
                                                                                                                                      t
                                                                                                                                      s
                                              Other                        L   O   R   S   P
                                             equity                        e   t   e   u   r
                                              instru                       s   h   a   r   o
                                              ment                         s   e   s   p   v
                                             P P                           :   r   o   l   i
                                             r e                                   n   u   s                      o
                                             e r                           I   c   a   s   i                      t
                                                     Capital public
                             Share capital   f p O                         n   o   b       o    Retained profit   h       Subtotal
                                                        reserve
                                             e e t                         v   m   l r     n                      e
                                             r t h                         e   p   e e                            r
                                             r u e                         n   r     s     o
                                             e a r                         t   e   r e     f
                                             d l                           o   h   e r
                                                                           r   e   s v     g
                                             s c                           y   n   e e     e

                                                                      80
              司公限有份股心中游旅海东大南海                                                            2020   文全告报度年年
                                             t   a                          s r   n
                                             o   p                        s i v   e
                                             c   i                        h v e   r
                                             k   t                        a e     a
                                                 a                        r       l
                                                 l                        e i
                                                                          s n     r
                                                 s                          c     i
                                                 e                          o     s
                                                 c                          m     k
                                                 u                          e
                                                 r
                                                 i
                                                 t
                                                 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
                                                                                      -58,813.79           -58,813.79           -58,813.79
accounting policy
            Error
correction of the last
period
            Enterprise
combine under the same
control
         Other
II. Balance at the
                            364,100,000.00           54,142,850.01                    -340,512,967.51      77,729,882.50        77,729,882.50
beginning of this year
III. Increase/ Decrease
in this year (Decrease is                                                             756,721.46           756,721.46           756,721.46
listed with “-”)
  (i) Total comprehensive
                                                                                      756,721.46           756,721.46           756,721.46
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


                                                                     81
              司公限有份股心中游旅海东大南海                                                              2020   文全告报度年年
(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
                             364,100,000.00           54,142,850.01                    -339,756,246.05       78,486,603.96         78,486,603.96
the report period


        8. Change of owners’ equity of parent company

        Current period
                                                                                                                             In RMB
                                                                                            2020
                                                                  Other
                                                                  equity
                                                                  instru
                                                                   ment                       O
                                                                     P                        t
                                                                     e                      L h
                                                                     r                      e e
                                                                     p                      s r R
                                                                     e                      s   e
                                                                                                    S
                                                                     t                      : c a
                                                                                                    u
                                                                     u                        o s
                                                                 P                                  r
                                                                     a                      I m o
                                                                 r                                  p
                                                                     l                      n p n
                                                                 e                                  l
                                                                                            v r a
                                                                 f                                  u                        O
                                                                     c                      e e b
                                                                 e                                  s                        t
                      Item                                           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
                                                                     i                      o n
                                                                 e       h                          e                        r
                                                                     t                      r s r
                                                                 d       e                          s
                                                                     a                      y i e
                                                                         r                          e
                                                                     l                        v s
                                                                 s                                  r
                                                                                            s e e
                                                                 t                                  v
                                                                     s                      h   r
                                                                 o                                  e
                                                                     e                      a i v
                                                                 c
                                                                     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


                                                                      82
              司公限有份股心中游旅海东大南海                                                                   2020   文全告报度年年
         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
                                                                                                           -11,567,434.96              -11,567,434.96
listed with “-”)
  (i) Total comprehensive income                                                                           -11,567,434.96              -11,567,434.96
  (ii) Owners’ devoted and decreased capital
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners equity with
share-based payment
4. Other
(III) Profit distribution
1. Withdrawal of surplus reserves
2. 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                 -351,324,589.21             66,918,260.80
        Last period
                                                                                                                                 In RMB
                                                                                               2019
                                                                      Other                        O
                                                                                                   t
                                                                      equity                    L
                                                                                                   h
                                                                      instru                    e
                                                                                                   e
                                                                       ment                     s      R
                                                                                                   r
                                                                         P                      s      e
                                                                                                           S
                                                                         e                      :      a
                                                                                                   c       u
                                                                         r                             s
                                                                     P                             o       r
                                                                         p                      I      o
                                                                     r                             m       p
                                                                         e                      n      n
                                                                     e                             p       l
                                                                         t                      v      a
                                                                     f                             r       u                      O
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                                                     Share capital   r       O Capital reserve     h                              h
                                                                         l                      t      e         general risk          equity
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                                                                                                   o
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                                                                       83
              司公限有份股心中游旅海东大南海                                                  2020   文全告报度年年
                                                                     c                    e
                                                                     u
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                                                                     i
                                                                     t
                                                                     i
                                                                     e
                                                                     s
I. Balance at the end of the last year              364,100,000.00        54,142,850.01       -340,453,921.99         77,788,928.02
       Add: Changes of accounting policy                                                      -58,813.79              -58,813.79
            Error correction of the last period
         Other
II. Balance at the beginning of this year           364,100,000.00        54,142,850.01       -340,512,735.78         77,730,114.23
III. Increase/ Decrease in this year (Decrease is
                                                                                              755,581.53              755,581.53
listed with “-”)
  (i) Total comprehensive income                                                              755,581.53              755,581.53
  (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       -339,757,154.25         78,485,695.76


        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


                                                                     84
      司公限有份股心中游旅海东大南海                                                                      2020   文全告报度年年
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 December 31, 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.


The financial statements were approved by all directors of the Company for disclosure on April 22, 2021.


ii) Scope to the consolidated financial statements


As at December 31, 2020, the subsidiary included into the Company's scope of consolidated financial statements
is as follows:

                                                          Subsidiary
Hainan Wengao Tourism Resources Development Co., Ltd.    (   hereinafter referred to as Wengao Tourism
                                                                                                      )
See “Note VIII. Changes in the scope of consolidation" and “Note IX. Equity in other entities" for details of the scope of

consolidated financial statements and changes thereof.




IV. Basis for the preparation of the financial statements

1.Preparation basis


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 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
Due to the influence of COVID-19, the Company suffered a serious decline in annual operating revenue in 2020

                                                                 85
     司公限有份股心中游旅海东大南海                                                          2020   文全告报度年年
and suffered a large amount of losses. However, the current business situation has gradually recovered to normal,
and it is expected that the Company's business activities will continue in the next 12 months.




V. Significant accounting policies and accounting estimates

Specific accounting policies and estimates:
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
December 31, 2020 as well as operation results and cash flows for the year 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.Functional currency
RMB is adopted as the functional currency.
5.Accounting treatment methods for business combinations under and not under common control
Business combination under common control: The assets and liabilities (including the goodwill arising from the
acquisition of the combinee by the ultimate controller) acquired by the Company in business combinations are
measured at book values of assets and liabilities of the combinee 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 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 under different control: the cost of merger is the fair value of the assets, liabilities incurred
or assumed and equity securities issued by the purchaser in order to obtain the control of the purchaser on the
purchase date. The difference between the cost of the merger and the share of the fair value of the identifiable net
assets acquired by the purchaser in the merger shall be recognized as goodwill; The difference between the merger
cost and the share of the fair value of the identifiable net assets acquired by the purchaser in the merger shall be
recorded into the profit and loss of the current period. The identifiable assets, liabilities and contingent liabilities


                                                          86
     司公限有份股心中游旅海东大南海                                                           2020   文全告报度年年
obtained by the purchaser in the merger meeting the recognition conditions shall be measured at fair value on the
purchase date.


The expenses directly related to the enterprise merger shall be recorded into the current profit and loss when
incurred. The transaction cost of issuing equity securities or debt securities for the purpose of business merger
shall be included in the initial recognized amount of equity securities or debt securities.


6. Preparation methods of consolidated financial statements
6.1Scope of consolidation
The scope of consolidated financial statements of the Company is determined on the basis of control, and the
scope of consolidated financial statements shall be including the Company and all its subsidiaries.


6.2 Procedures of consolidation
The Company regards the whole enterprise group as an accounting subject and prepares consolidated financial
statements in accordance with the unified accounting policy, reflecting the overall financial situation, operating
results and cash flow of the enterprise group.The Company and subsidiaries, subsidiaries between the impact of
internal transactions to offset. If the internal transaction indicates that the relevant assets have impairment losses,
the full recognition of this part of the loss.If the accounting policy adopted by the subsidiary company and the
accounting period are inconsistent with the company, the necessary adjustments shall be made in accordance with
the Company's accounting policy and accounting period when preparing the consolidated financial statements.


The owner's equity of the subsidiary, the current net profit and loss and the share of the minority shareholders in
the current comprehensive income are listed separately under the owner's equity item in the consolidated balance
sheet, the net profit item in the consolidated profit table and the total comprehensive income item in the
consolidated profit table. The current loss shared by the minority shareholders of the subsidiary exceeds the
balance formed by the minority shareholders' share in the initial owner's equity of the subsidiary, thus reducing the
equity of several shareholders.
(1) Increase of subsidiaries or business
During the reporting period, the operating results and cash flows of the subsidiary or business from consolidation
period to the end of the reporting period shall be included in the consolidated financial statements as a result of the
merger of the subsidiary or business under the same control.
Where the investor under the same control can be controlled for reasons such as additional investment, the equity
investment held prior to the acquisition of control by the merged party has been recognized as relevant gains and
losses, other consolidated income and other net assets changes between the date of acquisition of the original
equity and the date of the merger and the date of the merger.
During the reporting period, the consolidated financial statements shall be incorporated into the consolidated
financial statements on the basis of the fair value of identifiable assets, liabilities and contingent liabilities as

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determined on the date of purchase, as a result of the consolidation of subsidiaries or businesses under the same
control.


If, for reasons such as additional investment, the investor under the same control can be controlled, the equity of
the buyer held before the date of purchase shall be remeasured according to the fair value of the equity on the date
of purchase. The difference between fair value and book value is included in current investment income. Other
comprehensive income and other changes in owner's equity under equity method accounting which can be
re-classified into profit and loss after the share of the buyer held before the purchase date are converted into the
current investment income of the purchase date.


(2) Disposal of subsidiaries
      General method of treatment
When the control right of the investor is lost due to the disposal of part of the equity investment or other reasons,
the remaining equity investment after disposal shall be remeasured according to its fair value on the date of loss of
control. The sum of the consideration obtained by the disposal equity and the fair value of the remaining equity,
less the difference between the share of the net assets and the sum of goodwill that should be continuously
calculated by the original subsidiary from the date of purchase or the date of merger, and the investment income in
the current period of loss of control. Other comprehensive income related to the equity investment of the original
subsidiary company and other owner's equity changes under the accounting of equity method, which can be
reclassified into profit and loss, are converted into current investment income when losing control right.
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
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 transaction:
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.


If each transaction is a package transaction, the transaction shall be treated as a transaction dealing with the
subsidiary and losing control. Before the loss of control, the difference between the disposal price and the share of
the net assets of the subsidiary corresponding to the disposal investment shall be recognized as other consolidated
income in the consolidated financial statements and transferred to the gains and losses of the current period of loss
of control when the control is lost.
If each transaction is not a package transaction, prior to the loss of control, the equity investment of the subsidiary


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shall be partially disposed of without loss of control; in the event of loss of control, Accounting treatment shall be
carried out according to the general treatment method of the disposal subsidiary.


(3) Purchase of minority interest of subsidiaries
Adjust the equity premium in the capital reserve&ens