Stock Code: 000613, 200613 Short Form of the Stock: Dadonghai -A, Dadonghai –BNotice No: 2019-008
海南大东海旅游中心股份有限公司
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Summary of Annual Report 2018
Disclosure Date: 26 February 2019
Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.
Summary of Annual Report 2018
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and futuredevelopment plan of the Company; investors should found in the full-text of annual report that published on media appointed byCSRC.Objection statement of directors, supervisors and senior executives□ Applicable √ Not applicable.Prompt of non-standard audit opinion□ Applicable √ Not applicableProfit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod□ Applicable √ Not applicableThe Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period□ Applicable □ Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock
| Short form of the stock | Dadonghai -A, Dadonghai -B | Stock code | 000613、200613 | |
| Stock exchange for listing | Shenzhen Stock Exchange | |||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
| Name | Wang Hongjuan | |||
| Office add. | Dadonghai Sanya | |||
| Fax. | 0898-88214998 | |||
| Tel. | 0898-88219921 | |||
| hnddhhn@21cn.com | ||||
2. Main business or product introduction in the reporting period
The company's main business is hotel accommodation and catering services. Procurement of goods is mainly the goods and materialsnecessary for hotel and catering operations by taking the principle of low price and fine quality, some goods are purchased bydirectly signing purchase contracts with suppliers, and some good are purchased by procurement agents. The operation are mainlyincluding the network billing and overseas travel agency team, and supplemented by the individual travelers of non-internetmarketing and business and the tourists from travel agencies. The hotel is located at the central zone of Dadonghai scenic spot inSanya City, Hainan Province, and it has become a member of the nationwide famous hotels because of the convenient transportation,beautiful environment, long history, and rich culture. However, in recent years, the local high-, middle- and low-grade hotels orguesthouses numerously emerge, resulting in the supply much larger than the market demand, the industry competition is ratherfierce, and the pressure of decline in business remains.
3. Main accounting data and financial indexes
(1) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data□Yes √ No
In RMB
| 2018 | 2017 | Changes over last year | 2016 | |
| Operating income (RMB) | 29,515,592.33 | 27,906,564.23 | 5.77% | 21,708,883.51 |
| Net profit attributable to shareholders of the listed company (RMB) | 653,282.19 | 2,858,998.66 | -77.15% | -2,661,052.49 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 816,346.09 | 779,389.74 | 4.74% | -4,072,689.97 |
| Net cash flow arising from operating activities (RMB) | 6,783,893.26 | 5,127,288.47 | 32.31% | 2,766,372.02 |
| Basic earnings per share (RMB/Share) | 0.0018 | 0.0079 | -77.22% | -0.0073 |
| Diluted earnings per share (RMB/Share) | 0.0018 | 0.0079 | -77.22% | -0.0073 |
| Return on Equity | 0.84% | 3.78% | -2.94% | -3.52% |
| End of 2018 | End of 2017 | Changes over end of last year | End of 2016 | |
| Total assets (RMB) | 88,197,118.07 | 87,466,661.80 | 0.84% | 105,444,153.63 |
| Net assets attributable to shareholder of listed company (RMB) | 77,788,696.29 | 77,135,414.10 | 0.85% | 74,276,415.44 |
(2) Quarterly main financial index
In RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 9,888,991.83 | 6,284,937.49 | 5,799,836.91 | 7,541,826.10 |
| Net profit attributable to shareholders of the listed company | 1,973,425.41 | -691,259.83 | -687,050.10 | 58,166.71 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 1,973,903.39 | -691,532.83 | -687,050.10 | 221,025.63 |
| Net cash flow arising from operating activities | 2,610,752.60 | 499,925.00 | 1,585,973.61 | 2,087,242.05 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the company’s quarterly report and semi-annual report□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered and
top ten shareholders
In Share
Total common stockshareholders inreporting period-end
| Total common stock shareholders in reporting period-end | 44,014 | Total common stock shareholders at end of last month before annual report disclosed | 40,589 | Total preference shareholders with voting rights recovered at end of reporting period | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed | 0 | ||||||
| Top ten shareholders | |||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Number of shares pledged/frozen | ||||||||
| State of share | Amount | ||||||||||||
| Luoniushan Co., Ltd. | Domestic non state-owned corporate | 17.55% | 63,885,980 | 0 | Pledged | 63,885,980 | |||||||
| Yang Meiqin | Domestic nature person | 4.47% | 16,279,028 | 0 | Pledged | 15,910,000 | |||||||
| Pan Anjie | Domestic nature person | 4.01% | 14,593,598 | 0 | |||||||||
| Hainan Ya An Ju Property Service Co., Ltd. | Domestic non state-owned corporate | 2.25% | 8,205,800 | 0 | |||||||||
| Chen Jinlian | Domestic nature person | 2.13% | 7,766,400 | 0 | |||||||||
| HGNH International Asset Management Co., Ltd – customer deposit | Foreign corporate | 1.23% | 4,495,902 | 0 | |||||||||
| Pan Aiping | Domestic nature person | 1.13% | 4,110,738 | 0 | Pledged | 4,090,000 | |||||||
| Zhang Fengxiu | Domestic nature person | 1.07% | 3,901,372 | 0 | |||||||||
| China Investment Securities (HK) Co., Ld. – customer deposit | Foreign corporate | 0.99% | 3,622,300 | 0 | |||||||||
| Feishang Group Limited | Foreign corporate | 0.86% | 3,122,800 | 0 | |||||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, Hainan Ya’an Residence Property Service Co., Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; the Company is unknown whether there exists associated relationship or belongs to the consistent actor regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Company among the other shareholders. | ||||||||||||
| Explanation on shareholders involving margin business | N/A | ||||||||||||
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicableThe Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and theCompany is as follows:
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full atmaturity on the approval date for annual report disclosedNo
III. Discussion and analysis of operation
1. Introduction of operation in the reporting periodWhether the company needs to comply with the disclosure requirements of the particular industryNo
During the reporting period, the company realized main business income of 29,515,600 Yuan, increased by1,609,000 Yuan compared with the same period last year, an increase of 5.77%; operating profit of 816,300 Yuan,decreased by 768,900 Yuan compared with the same period last year, a decrease of 48.50%; net non-operatingincome of 163,100 Yuan, decreased by 1,436,800 Yuan compared with the same period last year, a decrease of112.80%; net profit of 653,300 Yuan, decreased by 2,205,700 Yuan compared with the same period last year, adecrease of 77.15%.During the reporting period, the Company focus on market-oriented and use marketing strategy in a flexible wayto exploited the sales channel, meanwhile, strengthening enterprise culture construction as well as the employeeteam-building, making efforts to improve product’s quality, strictly controlling the cost management, perfect theCompany’s internal control system in order to reduce the risks and consumptions for more income earns and lessexpenditure costs, we completed the operation targets that formulated at beginning of the year basically. Mainworks are as:
1. Market-oriented, use marketing strategy in a flexible way to exploit the sales channelDuring the reporting period, the Company actively expanded the network market, the Russian market and thesouthwest, north, east and southern China markets in addition to further consolidating its existing customer basesoriented by markets with flexible utilization of marketing strategies. Besides, increasing cooperation was madeby the Company with domestic and foreign well-known travel agencies, sales network platforms and direct-saletravel agencies in the first and second tier cities. The Company also conducted implementation of salesincentives and sales mechanism involving every staff, to increase the market share in terms of sales. During thereporting period, the revenue of the Company from overseas sales, network sales, meeting teams and individualvisitors from travel agencies increased significantly over the same period of last year. The revenue from its majoroperating business was RMB27.9066 million, representing a year-on-year increase of 28.55% as compared to therevenue of RMB6.1977 million of previous year.2. People-oriented, strengthen the enterprise with high-quality, strive to improve product quality and enhance thecompetitive-ness of enterprisesIn reporting period, in line with the Human-Oriented employment ideality, we continuously enriched the culturelife for employees, create a harmonious working environment and strengthen the construction of enterprise cultureand staff-building. At the same time, create new management mechanism, motivate and mobilized the enthusiasm,initiative and creativity of the staff. Based on the management ideal of “strengthen the enterprise withhigh-quality”, we constantly strengthen the hotel management and carried out skill training in pre-job for theirbasic information and the after-job for business ability improvement. Enhance the service standards andconsciousness, as well as the sense of responsibility and quality, effectively improved the service quality andmanagement standards, and improving the quality of the hotel and comprehensive competitiveness.3. Strictly curb the costs and budget management, improve internal control mechanism, reducing risks andconsumptions, increase revenue and reduce expenditures, safety in production to maximize the interest of theenterprise
During the reporting period, the Company continued to focus on financial management, improve the procurementmanagement system, strengthen management of procurement cost control and budget management, adoptdiversified means to obtain procurement price inquiry, such as network price inquiry, the hotel industry priceinquiry and other measures, obtain cost inquiry from over three suppliers to select the best one, control operatingcosts in a scientific manner, strictly control various expense and expenditures, frequent inspection and repair toprevent waste of resources, which enabled the Company to effectively improve the reasonableness of procurementcost and cost effectiveness. Besides, human resources cost was effectively brought down due to optimized organestablishment and personnel distribution. At the same time, the Company continued to improve the internal controlsystem, strengthen regulation and implementation of internal control system, strengthen the effectiveimplementation of internal control work, reduce risks and consumption, increase revenue and control expenditures,emphasize production safety and improve operational efficiency, to ensure the operation safety and thus maximizethe interests of the Company as a whole.In 2019, the Company continues to consolidate and expand sales channels, improve the hotel’s quality and servicestandards, and enhance the comprehensive competitiveness, to laying out a solid foundation for sustained, stableand healthy development of the Company.2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating incomeor operating profit
√Applicable □Not applicable
In RMB
Name
| Name | Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y |
| Room revenue | 22,731,299.15 | 7,520,164.91 | 59.06% | 7.72% | -0.20% | 0.56% |
| Catering entertainment income | 3,710,750.32 | 773,397.55 | 46.82% | 3.41% | 699.62% | -0.04% |
| Room revenue | 3,073,542.86 | 2,453,870.46 | 84.56% | -4.40% | -4.71% | -0.68% |
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profitattributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Particular about suspended and delisting
□ Applicable √ Not applicable
7. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the financial report of last year
√Applicable □Not applicable
1. Change of accounting policy
On 15 June 2018, the Notice of the Ministry of Fiance on Revising and Issuing the Format of GeneralCorporate Enterprise Financial Statements for 2018 (CK [2018] No.15) was issued by the Ministry ofFiance, the financial statement format for general corporate enterprise are revised. Main influence for theabove mentioned Revised of the Company are:
Content and reaosn for accounting policy changed
| Content and reaosn for accounting policy changed | Approval procedures | Items and amount being affected |
| (1) Under the balance sheet: “Note receivable” and “Account receivable” are together listed as “Note receivable & account receivable”;”Note payable” and “Account payable” are together listed as “Note payable & account payable”; ”Interest receivable” and “Dividend receivable” are included under the “Other receivables”; “Interest payable” and “Dividend payable” are included under the “Other payables”;”Fixed assets disposal” is included under the “Fixed assets”; “Engineering materials” is included under the “Construction in progress”; “Special payables” is included under the “Long-term payables”. The comparative data should be adjusted correspondingly | Resolution of the Board | “Note receivable” and “Account receivable” are together listed as “Note receivable & account receivable”, current balance amounted as 426,434.87 Yuan, while 594,130.89 Yuan listed last period; ”Note payable” and “Account payable” are together listed as “Note payable & account payable”, current balance amounted as1, 607,835.81 Yuan while 2,161,172.26 Yuan listed last period. “Interest payable” and “Dividend payable” are included under the “Other payables”; ”Fixed assets disposal” is included under the “Fixed assets”; “Engineering materials” is included under the “Construction in progress”; “Special payables” is included under the “Long-term payables”, there were no amount listed in the period and last period |
| (2)Added item of “R&D expenses” under the profit statement, the R&D expenses included under original “Administration expenses” was re-classified as “R&D expenses” for counting independently; added “Including: interest expenses” and “Interest revenue” under the financial expenses. The comparative data should be adjusted correspondingly | Resolution of the Board | The R&D expenses included under original “Administration expenses” was re-classified as “R&D expenses” for counting independently; no amount occurred in the period and last period |
| (3) Added item of “Change amount of defined benefit plans that carry forward retained earnings” under the statement of change of owners’ equity. The comparative data should be adjusted correspondingly | Resolution of the Board | Added item of “Change amount of defined benefit plans that carry forward retained earnings” under the statement of change of owners’ equity, no amount occurred in the period and last period |
2. Change of accounting estimatesMajor accounting estimates have no changes in the reporting period.
3. Change of calculation methodMajor calculation method has no changes in the reporting period(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicableNo major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’sscope
√ Applicable □Not applicable
Changes of consolidated scope
Subsidiary included in consolidated scope in the period
In RMB
Name
| Name | Comibed by | Net assets at period-end | Current net profit | Establihsed on |
| Hainan Wengao Tourism Resources Development Co., Ltd. | New establishment | 999,768.27 | -231.73 | 2018.6.6 |
Board of Directors ofHAINAN DADONGHAI TOURISM CENTER (HOLDINGS) CO., LTD.24 February 2019