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.  ContentSection I Important Notice, Content and Interpretation....................................................................... 4Section II Company Profile and Main Financial Indexes.................................................................... 4Section III Summary of Company Business........................................................................................ 9Section IV Discussion and Analysis of Operation..............................................................................11Section V Important Events................................................................................................................23Section VI Particular about Changes in shares and shareholders.......................................................34Section VII Preferred Stock................................................................................................................42Section VIII Convertible Bonds......................................................................................................... 43Section IX Particulars about Directors, Supervisors, Senior Executives and Employees................. 44Section X Corporate Governance.......................................................................................................53Section XI Corporate Bond................................................................................................................ 60Section XII Financial Report..............................................................................................................61Section 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 WarningConcerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial 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 forinformation disclosure appointed by the Company for year of 2021, all information under the name of theCompany 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 inunderstanding the two aforementioned versions, the Chinese version shall prevail. Investors are advised toexercise 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 IndexesI. 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.comII. 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 CompanyIV. 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 informationCPA 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 applicableFinancial consultant engaged by the Company for performing continuous supervision duties in reporting period□ Applicable √ Not applicableVI. Main accounting data and financial indexesWhether 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 isnegative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a goingconcern□Yes √NoThe 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) accommodationVII. Difference of the accounting data under accounting rules in and out of China1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)□ Applicable √ Not applicableThe Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting 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 accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)□ Applicable √ Not applicableThe Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese 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  -2,314,610.54 374,533.48Whether 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 √ NoIX. 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 CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons□ Applicable √ Not applicableIn reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe 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 BusinessI. Main businesses of the company in the reporting periodThe Company's main business is hotel accommodation and catering services. Procurement of goods is mainly thegoods and materials necessary for hotel and catering operations by taking the principle of low price and finequality, some goods are purchased by directly signing purchase contracts with suppliers, and some good arepurchased by procurement agents. The operation are mainly including the network billing and overseas travelagency team, and supplemented by the individual travelers of non-internet marketing and business and the touristsfrom travel agencies. The hotel is located at the central zone of Dadonghai scenic spot in Sanya City, HainanProvince, 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 oflocal hotels, family hotels, and home-stays, as well as the impact of force majeure and uncertain factors such asthe COVID-19 epidemic, supply has far exceeded demand, industry competition has become increasingly fierce,and operating pressure remains unabated.II. Major changes in main assets1. 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 applicableIII. Core Competitiveness AnalysisThe Company takes hotel accommodation and catering services as the principle works, locates at Dadonghai baywhich is one of the China “Top 40 scenery” and the only AAAA scenic spot open for free in Sanya and has themaximum passenger flow volume in Sanya City, and is about a 5-minute drive from downtown of Sanya City andabout 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 oldesthotels in Sanya and has received many domestic and foreign heads of state and national leaders. In the recentyears, the Company has comprehensively upgraded and rebuilt the hotel’s software and hardware facilities, furtherimproved the hotels internal and external business environment, and effectively enhanced the businesscompetitiveness. Currently, the management of the company’s hotel is still in the front rank among hotels in thesame 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 businessenvironment, 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 OperationI. IntroductionDuring the reporting period, the global outbreak of the COVID-19 caused severe damage to the tourism industryand tourism service industry. Due to the severe impact of the epidemic, the company's main operating incomedropped sharply and resulted in operating losses. In the reporting period, the Company achieved operation incomefrom 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 lastyear’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 to11.5679 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 improveproduct quality and competitivenessDuring 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 correspondingequipment and facilities. After renovation and adjustment, 46 new guest rooms have been newly increased, thenumber of guest rooms was increased, the scale of operation was expanded, the hardware operating environmentof hotel guest rooms, conference halls, parking lots, landscaping, etc., as well as the working environment of staffcanteen and offices were improved, which have effectively improved the quality and comprehensivecompetitiveness 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 channelsDuring the reporting period, the first two quarters were severely hit by the epidemic, and the company's hoteloperations were bleak. The overseas market has almost stagnated so far. In the third quarter, hotel operationsbegan to pick up gradually. In response, the company’s hotel formulated a flexible marketing mechanism, whileconsolidating old customers, actively expanded domestic marketing channels, strengthened cooperation withwell-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 theoverseas customer source market that has been stagnant due to the impact of the epidemic, and successfullycompleted the transformation that was dominated by domestic market sales.3. Reduce operating costs scientifically and reasonably, and improve the internal control systemDuring 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 allocationof personnel improved execution and work efficiency, and reduced labor costs. Frequent inspections and frequentrepairs eliminated waste of resources and improved the rationality of procurement costs and the cost-effectivenessof revenue. At the same time, the Company continued to improve the internal control system, strengthenregulation and implementation of internal control system, strengthen the effective implementation of internalcontrol work, reduce risks and consumption, increase revenue and control expenditures, emphasize productionsafety and improve operational efficiency.In 2021, 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.II. Main business analysis1. IntroductionSee 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 incomeor 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 onlatest 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 costIndustry 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% serviceNote: 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 suppliersMajor 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% clientsInformation 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 applicableMain 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% suppliersInformation 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 applicable3. 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 applicable5. 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% equivalentMain reasons for y-o-y major changes in aspect of relevant data□ Applicable √ Not applicableReasons of major difference between the cash flow of operation activity in report period and net profit of the Company□ Applicable √ Not applicableIII. 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 liability1. Major changes of assets compositionImplements the new revenue standard or new lease standard for the first time from 2020 and adjusts the financial statements at thebeginning 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 loans2. Assets and liability measured by fair value□ Applicable √ Not applicable3. Assets right restriction till end of reporting periodNil 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. Investment1. Overall situation□ Applicable √ Not applicable2. The major equity investment obtained in the reporting period□ Applicable √ Not applicable3. The major non-equity investment doing in the reporting period□ Applicable √ Not applicable4. Financial assets investment(1) Securities investment□ Applicable √ Not applicableThe company had no securities investment in the reporting period.(2) Derivative investment□ Applicable √ Not applicableThe Company has no derivatives investment in the reporting period.5. Application of raised proceeds□ Applicable √ Not applicableThe Company has no application of raised proceeds in the reporting period.VI. Sales of major assets and equity1. Sales of major assets□ Applicable √ Not applicableThe 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  profitHainan WengaoTourism Tourism SubsidiarResources  developme 1000000  1,000,454.19 1,000,454.19 0.00 -454.01 -454.01 yDevelopment ntCo., 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 internetplatform, expand the sales network, increase the market share, and further improve the management level and corecompetitiveness.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 theHotel, 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 industrialconstruction, widen the company size, increased more profit points in order to strengthen the sustainability, stableand healthily of the operation.(3) Continue to perfect the corporate governance structure, standardize the management and operation, andeffectively control the risks.3. Fund demands and use plan required for the future development of the CompanyThe Company utilizes owned funds or financing methods to raise the funds demanded for development, andcompletes the development planning of the Company.4. The risks may cause adverse effects on the future development strategy and realization of operation target ofthe Company(1) Marco Policy risksIn order to normalize and optimize tourism market or further to promote clear-party construction, relateddepartments may further issue some relative policies. While these polices may cause restrain and effect onregional 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 hotelwhile expanding the business scope, and win more market shares via high-class service and comfortableenvironment so as to ensure the main business income level.(2) Natural disaster risksIn recent years, various natural disasters take place frequently, Hainan Island belongs to oceanic climate, wherehas high incidence of disastrous weather in summer. If Sanya becomes the landing place of typhoon, it may causegreat 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 tobuy property insurances, positively adopt effective prevention measures, and improve the ability of resistingnatural 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  situationReception time Way ion Reception object site information provided index of  type  investigation  Telephone  Investor  The Individ Operation performance of the 3Q and2020-10-09 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 material2020-10-21 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 Individ2020-11-05 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 the2020-11-17 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’s2020-12-10 communic  Zhuang from  - company  ual  operation and no material required  ation  Fujian  Telephone  Investor Mr./Ms. Annual operation performance of the The Individ2020-12-30 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 the2020-12-31 communic  Shu  from  - company  ual  company, no material required  ation  ShanghaiReception (times) 32Number of hospitality  0Number of individual reception 32Number of other reception  0Disclosed, released or let out major undisclosed  Noinformation  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 EventsI. Profit distribution plan of common stock and capitalizing of common reserves planFormulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy duringthe Reporting Period□ Applicable √ Not applicableProfit 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 thereporting 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 ispositive but no plan of cash dividend proposed of common stock□ Applicable √ Not applicableII. Profit distribution plan and capitalizing of common reserves plan for the Period□ Applicable √ Not applicableThe Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe 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 commitment1. Commitments completed in Period and those without completed till end of the Period from actualcontroller, 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 disclosed2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast□ Applicable √ Not applicableIV. Non-operational fund occupation from controlling shareholders and its related party□ Applicable √ Not applicableNo 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 applicableVI. Particulars about the changes in aspect of accounting policy, estimates and calculationmethod 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) (hereinafterreferred 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 retainedearnings and other related items in the financial statements at the beginning of the year according to thecumulative impact, without adjusting the information for comparable periods.The Company implement the new revenue standards since January 1, 2020. In accordance with the provisions ofthe Standards, the Company will only adjust the amount of retained earnings at the beginning of 2020 and otherrelated items in the financial statements for the cumulative impact of contracts that have not been completed at thefirst execution date, not the comparative financial statements.(2) Implementation of Interpretation of Accounting Standards for Business Enterprises No. 13The 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 partyInterpretation No. 13 makes it clear that the following circumstances constitute an affiliated party: a joint ventureor joint venture between the enterprise and other members of the enterprise group (including the parent companyand 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 partydo not constitute affiliated parties, and adds that joint ventures include joint ventures and their subsidiaries, andjoint ventures include joint ventures and their subsidiaries.② Definition of businessInterpretation No. 13 improves the three elements of business composition, elaborates the judgment conditions ofbusiness composition, and introduces the choice of 'concentration test' to simplify the judgment of whether aportfolio acquired under different control constitutes business to a certain extent.The Company has implemented Interpretation No. 13 since January 1, 2020, and the comparative financialstatements have not been adjusted. The Company has not implemented Interpretation No. 13, which has had asignificant impact on the Company's financial position and operating results(3) Implementation of the Interim Provisions on Accounting Treatment for Carbon Emission TradingThe 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 outcarbon emission trading business in accordance with the Interim Measures on the Administration of CarbonEmission Trading and other relevant provisions (hereinafter referred to as key emitters). The regulation will takeeffect on January 1, 2020, and key emission enterprises should apply the regulation by adopting the futureapplication method.The Company has implemented this provision since January 1, 2020, and the comparative financial statements arenot adjusted. The implementation of this provision has not had a significant impact on the Company's financialposition 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 RulesOn June 19, 2020, the Ministry of Finance (MOF) issued the Accounting Regulations on the Treatment of RentConcessions Related to COVID-19 (Finance and Accounting [2020] No. 10), which has came into force on June19, 2020, allowing enterprises to adjust the relevant rent concessions that occurred between January 1 2020 to theimplementation date of this regulation. According to this regulation, enterprises can choose to adopt a simplifiedmethod for accounting treatment of rent concessions, such as rent remission and deferred payment, which aredirectly caused by COVID-19.The Company has implemented this provision since January 1, 2020, and the comparative financial statements arenot adjusted. The implementation of this provision has not had a significant impact on the Company's financialposition and operating results.(ii) Changes in accounting estimatesThere 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 applicableThere 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’sscope□ Applicable √ Not applicableThere was no change in consolidation statement’s scope of the Company in the Period.IX. Appointment and non-reappointment (dismissal) of CPAAccounting 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 FirmsRe-appointed accounting firms in this period□Yes √NoAppointment 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  TheGroup Co., Ltd. borrowed 2.76  13 June No.:2020-021, court of second Dadonghai companymillion yuan and 4.55 million yuan  2020, No.: 2020-025 and instance ruled to Tourism  Centre has appliedfrom 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 onOctober 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  stillcompany 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 LocalTaxation Bureau Social SecurityFee Collection and AdministrationBureau issued a notice of paymentdeadline for social insurancepremiums to the company's SouthChina Hotel, ordering thecompany's South China Hotel topay the unpaid social insurancepremiums and late payment feesand interest from January 1, 2012to December 31, 2012 of totaling286,200.36 yuan. On May 17,2018, the Sanya Local Taxation The company hasBureau deducted the money from non-operationthe deposit of the company's South The first trial revenue  of  EnforcemenChina 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  completedLetter of the Target Management of claim  affected the profitSouth China Hotel' signed by  of the Period bySouth China Hotel and Sun  286,200 yuanHongjie, Sun Hongjie should beresponsible for the social insurancepremium incurred from May 1,2011 to April 30, 2016. The unpaidsocial insurance premium occurredduring Sun Hongjie’s targetmanagement responsibility, andSun Hongjie should undertake thepayment. Sun Hongjie has notrepaid the advance payment to thecompany's South China Hotel. Tothis end, the company's SouthChina 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 applicableXV. Implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives□ Applicable √ Not applicableDuring the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentivesthat have not been implemented.XVI. Major related party transaction1. Related party transaction with routine operation concerned√Applicable □Not applicable Whet Tradi  her  Relat ng  ed over Cleari Avail  Propo limit Type Conte transa the ng able  Date Index  Relat rtion of nt of Pricin ction  appro form  Relati  ed in appro  simila  of of Related relate relate g  amou  for  onshi  transa  simila ved party d  d princi  nt ved relate r disclo discl p ction  r transa transa ple (in 10  (in 10  d  price  transa  limite  marke  sure osure ction ction thous  transa  ctions thous and d or ction t price  Yuan) and  not Yuan) (Y/N) Same Same as the as the First Luoniu  transa transa major Consu Acco Mark Mark shan  0.35 ction ction ity  mptio mmod et et  5.44 0 N -  - 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 price2. Related transactions by assets acquisition and sold□ Applicable √ Not applicableThere was no related transactions by assets acquisition and sold for the Company in reporting period3. Related transactions of mutual investment outside□ Applicable √ Not applicableThere was no main related transactions of mutual investment outside for the Company in reporting period4. Contact of related credit and debt□ Applicable √ Not applicableThere was no contact of related credit or debt for the Company in the reporting period5. Other significant related transactions□ Applicable √ Not applicableThe company had no other significant related transactions in reporting period.XVII. Significant contract and implementations1. Trusteeship, contract and leasing(1) Trusteeship□ Applicable √ Not applicableThere was no trusteeship for the Company in reporting period(2) Contract□ Applicable √ Not applicableThere was no contract for the Company in reporting period(3) Leasing√Applicable □ Not applicableNote of leasing  Item Tenant Lease life  Term of leaseShopping mall –Building Li Fuming 3 years  2019-11-01 to 2022-10-31B 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 2022-02-27Seaside stall and wood Sanya Leda Food Management Co., Ltd. 5 years  2018-01-01 to 2022-12-31houseMulti-functional meeting Li Fuming 5 years  2019-11-01 to 2024-10-31roomProjects 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 applicableThe Company had no guarantee in the reporting period.3. Entrust others to cash asset management(1) Trust financing□ Applicable √ Not applicableThe Company had no trust financing in the reporting period.(2) Entrusted loans□ Applicable √ Not applicableThe 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 contractamount□ Applicable √ Not applicable5. Other significant contracts□ Applicable √ Not applicableThere was no other significant contracts for the Company in reporting periodXVIII. Social responsibility1. Social responsibilities: Nil2. Execution of social responsibility of targeted poverty alleviation: Nil3. Environmental protectionListed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection□Yes √NoXIX. Explanation on other significant events√Applicable □ Not applicableThe Lawyer’s Letter received by the Company 1: by preliminary accounting from Sanya Power Bureau, the10313373 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 31May 2016. The Company is still communicating and coordinating with Sanya Power Bureau in the abovementioned 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 ShareholdersI. Changes in Share Capital1. 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 reserveI. Restricted shares 10,223,400 2.81%  10,223,400 2.81%1. State-owned shares2. State-owned legal  1,399,200 0.38%  1,399,200 0.38%person’s shares3. 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 sharesDomestic natural person’sshares4. Foreign sharesIncluding: Foreign legalperson’s sharesForeign natural person’sshares  97.19II. Unrestricted shares 353,876,600 353,876,600  97.19%  %  73.021. 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 foreignshares4. Others  100.00III. 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 applicableApproval of share changed□ Applicable √ Not applicableOwnership transfer of share changes□ Applicable √ Not applicableImplementation progress of the share repurchases□ Applicable √ Not applicableImplementation progress of the reduction of repurchases shares by centralized bidding□ Applicable √ Not applicableInfluence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period□ Applicable √ Not applicableOther information necessary to disclose or need to disclosed under requirement from security regulators□ Applicable √ Not applicable2. 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 LegalShenyang Jin’an Industrial  After remove restricted  831,600 0  0 831,600 commitment inCorporation procedures complete share reform LegalSanya Wangli Building Materials  After remove restricted  92,400 0  0 92,400 commitment inSales  procedures complete share reform LegalSanya Zhongxing Development Co.,  After remove restricted 2,541,000 0  0 2,541,000 commitment inLtd. procedures complete share reform Legal After remove restrictedSanya Real Estate Valuation Agent 924,000 0  0 924,000 commitment in procedures complete share reformSouthern Industrial and Trading  Legal After remove restricted  660,000 0  0 660,000Corporation  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 LegalHainan Branch of Bank of  After remove restricted  924,000 0  0 924,000 commitment inCommunications Co., Ltd.  procedures complete share reform LegalGuangzhou Company of Hainan After remove restricted  660,000 0  0 660,000 commitment inInternational Investment Co., Ltd.  procedures complete share reform Legal After remove restrictedHainan Dadonghai Tourism Co.  739,200 0  0 739,200 commitment in procedures complete share reform LegalHaikou Dongfang Urban credit  After remove restricted  924,000 0  0 924,000 commitment inCooperative  procedures complete share reform LegalGuangzhou Dongzhan Industrial Co.  After remove restricted  924,000 0  0 924,000 commitment inLTD procedures complete share reformSpecial account for disposition of Legalbankrupt enterprise property- Hong  After remove restricted  924,000 0  0 924,000 commitment inKong-Macao International Hainan  procedures complete share reformInvestment Co., Ltd. LegalYangpu Tongrong Investment After remove restricted  79,200 0  0 79,200 commitment inManagement Consulting Co., Ltd.  procedures complete share reformTotal  10,223,400 0  0 10,223,400 -- --II. Securities issuance and listing1. Security offering (without preferred stock) in reporting Period□ Applicable √ Not applicable2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure□ Applicable √ Not applicable3. 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 preferenceTotal common Total common stock Total preference shareholders withstock shareholders  shareholders at end of last  shareholders with voting voting rights recovered 36,138  40,973  0  0in reporting month before annual rights recovered at end of  at end of last monthperiod-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  PledLuoniushan Co., Ltd. state-owned 17.55% 63,885,980 0 0 63,885,980  44,720,186  ged corporate Domestic natureYang Meiqin  4.47% 16,279,028 0 0 16,279,028  person Domestic naturePan Anjie  4.01% 14,593,598 0 0 14,593,598  person Domestic nonHainan Ya’an Residence state-owned 2.25% 8,205,800 0 0 8,205,800Property Service Co., Ltd. corporate Domestic natureChen Jinlian  2.13% 7,766,400 0 0 7,766,400  person Domestic naturePan Aiping  1.13% 4,110,738 0 0 4,110,738  person Domestic natureZhang Fengxiu  0.84% 3,041,372 0 0 3,041,372  personShenwan Hongyuan Securities Foreign corporate 0.81% 2,938,390 -118,000  0 2,938,390(Hong Kong) Co., Ltd. Domestic natureSun Huiming  0.79% 2,888,690 0 0 2,888,690  personChina Investment Securities(HK) Co., Ld. – customer  Foreign corporate 0.74% 2,683,900 938,400 0 2,683,900depositStrategy investors or generallegal person becomes top 10 N/Ashareholders 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-ownedExplanation  on associated  subsidiary of Luoniushan Co., Ltd; Yang Meiqin, Pan Anjie, Chen Jinlian and Pan Aiping are the personsrelationship or accordant action  acting in concert; the Company is unknown whether there exists associated relationship or belongs to theamong  the aforesaid  consistent actor regulated by the Management Measure of Information Disclosure on Change ofshareholders  Shareholding for Listed Company among the other shareholders.Description of the aboveshareholders in relation todelegate/entrusted voting rights  N/Aand abstention  from votingrights. 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 AmountLuoniushan Co., Ltd.  63,885,980 RMB common share 63,885,980 Domestically listedYang Meiqin  16,279,028  16,279,028 foreign share Domestically listedPan Anjie 14,593,598  14,593,598 foreign shareHainan Ya’an Residence Property Service Co., Ltd. 8,205,800 RMB common share 8,205,800 Domestically listedChen Jinlian  7,766,400  7,766,400 foreign share Domestically listedPan Aiping 4,110,738  4,110,738 foreign shareZhang Fengxiu 3,041,372 RMB common share 3,041,372 Domestically listedShenwan Hongyuan Securities (Hong Kong) Co., Ltd. 2,938,390  2,938,390 foreign share Domestically listedSun Huiming  2,888,690  2,888,690 foreign shareChina Investment Securities (HK) Co., Ld. – customer 2,683,900 RMB common share 2,683,900deposit  Among the above shareholders, Hainan Ya’an Residence Property Service Co.,  Ltd. is the wholly-owned subsidiary of Luoniushan Co., Ltd. Yang Meiqin, PanExpiation on associated relationship or consistent actors Anjie, Chen Jinlian and Pan Aiping are the persons acting in concert; thewithin the top 10 un-restrict shareholders and between top  Company is unknown whether there exists associated relationship or belongs to10 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 businessabout top ten common stock shareholders with un-restrict N/Ashares 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), chemicalLuoniushan 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/oversealisted company control by  Found more details in full text of Annual Report 2020 of Luoniushan Co., Ltd. (Short form of thecontrolling shareholder (The largest  stock: Luoniushan, Stock code: 000735)shareholder) as well as stock-joint inreport 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 applicable5. 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 applicableThe 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 applicableThe 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)  CurrYuan  Chairman/G ently  M  February 27,Xiaopin eneral in 57 February 28, 2018 0  0 0 0 0  2021g Manager offic  e  CurrTang ently  Independent  M  May 21,Guopin in 56 May 22, 2014 0  0 0 0 0  Director  2020g offic  e  Curr  ently  Independent  M  February 27,Wu Tao in 42 February 28, 2018 0  0 0 0 0  Director  2021  offic  e  CurrTang ently  M  February 27,Shanron Director in 41 February 28, 2018 0  0 0 0 0  2021g offic  e  Curr  Chairman  entlyHuang of M  February 27,  in 51 June 16, 2002 0  0 0 0 0Wencai 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 entlyZhangX  February 27,  Supervisor in F 37 February 28, 2018 0 0  0 0 0uli  2021 offic e Curr entlyChen  M  February 27,  Supervisor in 54 July 29, 2016 0 0  0 0 0Gang 2021 offic e Curr  Person in entlyFu  M  February 27,  charge of in 53 April 15, 2015 0 0  0 0 0Zongren  2021  finance offic e Curr  Deputy  entlyDing  M  February 27,  General in 49 August 10, 2018 0 0  0 0 0Qin  2021  Manager offic e  Director/ CurrWang  deputy  ently  February 27,Hongju GM/secreta in F 44 April 27, 2008 0 0  0 0 0  2021an ry of the offic  Board  eTotal  --  -- -- -- -- --  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 ofthe party committee in Haikou Water Group Co., Ltd. as well as the director of Hainan Yedao Co., Ltd. from 2006to 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 secretaryof 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 theadministration department in Luoniushan Co., Ltd. Mr. Tang serves as vice president of the Company since June2016; She served as chairman of real estate branch of Luoniushan Co., Ltd. since June 2018; at the same time, heserved as Vice President of China Rural Youth Enrichment Leaders Association, and he is the member of standingcommittee 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 & employmentpromotion 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 asrepresentative of securities affairs of the Company since 2004 and serves as secretary of the Board since 2008 anddeputy GM of the Company since 2014. Ms. Wang serves as Director of the Company since 2016.Independent DirectorMr. Tang Guoping, was born in August 1964, Han nationality, he was graduated from Zhongnan University ofEconomics and Law, holds the doctoral degree and he is the accounting professor, doctoral supervisor and ChineseCPA. He was awarded as the “Master of Accounting” by the Ministry of Finance, the “Outstanding Young TeacherFunding Program” of the Ministry of Education, the famous teacher of Hubei Province, the young andmiddle-aged experts with outstanding contributions in Hubei Province, the academic leaders of the cross-centurydiscipline of the Ministry of Finance, won the second prize of the Second Humanities and Social SciencesResearch 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’sGovernment and other awards and honors. He used to be the deputy dean of the Accounting School, the directorof the Accounting Master Education Center, the executive vice president of the Graduate School, and the dean ofthe MBA College of Zhongnan University of Economics and Law. He is also the head of the second revisionresearch group for the Accounting Law of the Ministry of Finance, a member of the first session of the ASBEAdvisory Committee of the Ministry of Finance, the director and senior member of the Accounting Society ofChina, and the vice chairman of the Environmental Accounting Professional Committee of the Accounting Societyof China. He is the vice chairman of China Association of Chief Financial Officers of Hubei Province and servesas an independent director of Mhome Real Estate, Lens Technology and SDG Information. In 2012, he obtainedthe independent director qualification certificate and has been an independent director of the company since May2014.Mr. Wu Tao, born in 1978, holds a master’s degree. He used to be the senior manager, business director andinternal 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 & TechnologyCo., Ltd. From March 2014 to September 2018, he has been serving as the vice chairman and vice president ofShanghai Huantao Investment Management Co., Ltd. Since August 2015 to the present, he has been a supervisorof Shanghai Hemin Investment Management Co., Ltd., from September 2018 to March 2020, he served as thegeneral manager of Shanghai Mingxi Dongsen Investment Co., Ltd., since September 2020, he has served asindependent director of Heilongjiang Traditional Chinese Medicine Co., Ltd. In 2017, he obtained an independentdirector qualification certificate. Since March 2018, he has been serving as an independent director of theCompany.SupervisorMr. Huang Wencai: was born in 1969, undergraduate degree, Mr. Huang once held the position of vice director ofHaikou meat association factory, director of Haikou food Co. Ltd. and assistant of general manager of Haikoufood Co. Ltd., deputy GM of Haikou Luoniushan Food Processing Co., Ltd. and deputy GM of HainanLuoniushan Meat Co., Ltd.; Currently he served as executive director of Baoting Luoniushan Food Co., Ltd., andhe 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 intermediateeconomist. From 2009 to 2015, she served as a senior consultant and project manager of Beijing IndustrialDevelopment Consulting Co., Ltd. From December 2015 to September 2020, she has been serving as theinvestment director and GM of Luoniushan (Beijing) Investment Co., Ltd. Now he served as Director and GeneralManager of Hainan (Tanniu) Wenchang Chicken Co., Ltd., and since March 2018, she has been serving as ashareholder supervisor of the company.Mr. Chen Gang, was born in 1966, the Han nationality, a junior accountant. He worked as accountant in HainanSanya Phoenix Co., Ltd. from February 1988 to June 1989, worked as chief accountant in Sanya HardwareElectrical Mall from July 1989 to September 1992, and serves as cost accounting, chief accountant, deputy GMand GM of the financial dept. in the Company since October 1992. He serves as staff supervisor of the Companysince August 2016.Senior executivesMr. Ding Qin, born in 1971, Han nationality, holds a master’s degree, studied in Central South University from1988 to 1992 and graduated as a bachelor of industrial trade, and studied and graduated as a postgraduate fromHainan University from 2005 to 2008, majoring in agricultural extension. From 1998 to 2006, he served as thegeneral manager at Hainan Huacui Palm Garden Co., Ltd.; from 2010 to 2013, he served as the executive generalmanager of the fixed income department of Heaven-Sent Capital Management Group Co., Ltd (Shanghai); from2013 to 2017, he was appointed as the general manager of Wuhan East Lake Innovation Investment ManagementCo., Ltd.; and he serves as the assistant general manager of the company since April 2018. Since August 2018, heserves 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 Centerof 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 unitPost-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 unitPunishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors andsenior management during the reporting period□ Applicable√ Not applicableIV. Remuneration for directors, supervisors and senior executivesDecision-making procedures, recognition basis and payment for directors, supervisors and senior executives1. Pursuant to the Company's Articles of Association, the pay of directors, supervisor personnel are approved bygeneral meeting after the review of the board of directors and board of supervisors respectively; the pay of seniormanagement 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 thereimbursement 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 applicableV. Particulars of workforce1. 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 1202. Remuneration policyThe compensation of company’s employees includes wages, bonuses, and benefits, which take the principle ofdistributing according to the work, giving priority to efficiency and taking count of equity simultaneously, wageincrease adapting to the company’s business development and benefits improvement, optimizing the laborallocation, pay level agreeing with the local average in the same industry. Set or adjust the wage standards inaccordance with the job valuation result, the local pay level in the same industry, the company’s annual operationtarget and operational budget, and the individual performance.3. Training programsStrengthen the training of senior executives by combining the voluntary organization of training and the externaltraining, widen the thought, and enhance the decision-making ability and modern operation and managementability. Strengthen the training of middle management, improve the overall quality of managers, improve theknowledge structure, and enhance the comprehensive management capability, innovation capability andimplementation capability. Strengthen the training of professional and technical personnel, improve the theoreticallevel of technology and professional skills, and enhance the technological innovation, technical transformationcapability. Strengthen the technical training of hotel service staff, constantly improve the professional skills andservice 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 staffteam.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 GovernanceI. Corporate governance of the CompanyDuring reporting period, the Company further completed governance structure and system, perfected internalcontrol mechanism and system construction and normalized corporate operation, strictly in accordance withrelative rules and regulations of the Company Law, Securities Law and Listing Rules of Shenzhen StockExchange. Till end of reporting period, governance structure of the Company is basically in line with requirementof the Governance Rules of Listed Company.1. During the reporting period, the Company’s general meeting, board meeting and supervisors meeting exercisedthe 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, anddecision-making in these three meetings were in compliance with relevant provisions. The board meetingcomprises strategy and development committee, audit committee, nomination committee, remuneration andappraisal committee, who carry out smoothly their duties accordingly to their working conditions, providing astrong 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 itsduties with honest, trust, diligence and independence, protected the legitimate rights and interests of minorityshareholders 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 forlisted company from CSRC?□Yes √ NoThere are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed company from CSRC.II. Independence of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, organization and finance1. Business Independence: the Company business operates independently with integrated structure, and is freefrom horizontal competition with controlling shareholders. The controlling shareholders do not intervene theCompany’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. Controllingshareholders 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 accountingsystem and financial management system. The Company opens independent bank accounts and pay independenttaxes to laws without controlling shareholders’ intervention.III. Horizontal competition□ Applicable√ Not applicableIV. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting1. 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 20192. Request for extraordinary general meeting by preferred stockholders whose voting rights restore□ Applicable √ Not applicableV. Responsibility performance of independent directors1. 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  1Explanation 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 directorsIndependent directors come up with objection about Company’s relevant matters□Yes √NoNo objections arising from the independent directors on relevant events of the Company during the Period3. Other explanation about responsibility performance of independent directorsThe opinions from independent directors have been adopted√Yes □NoExplanation on advice that accepted/not accepted from independent directorsThe company's main business is single, small in scale, and weak in anti-risk capabilities. It is recommended thatwhile 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 thecompany's ability to resist risks and competitiveness.VI. Duty performance of the special committees under the board during the reporting periodThe board meeting comprises four special committees, who carry out smoothly their duties accordingly to theirworking conditions, providing a strong support for the board meeting’s major scientific management decision.Each special committee performed their duties as follows:1. Audit CommitteeDuring the reporting period, the audit committee audited the first quarter and the three quarter financial report of2020, 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 auditcommittee’s responsibilities:Before the entrance of annual examination certified public accountants, the audit committee members listened tothe management statements of the Company's operating condition in 2020 and the financial status as well as thereport on annual financial report audit work arrangement of 2020, communicated with annual examinationcertified public accountants about issues such as personnel structure of the working group, audit plan, riskjudgment, annual audit focus and so on; In early January 2021, in annual report audit process, audit committeemembers listened to the work report by annual examination certified public accountants and the companymanagement; 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 BusinessEnterprises 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 auditreport 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 annualfinancial audit of 2021.2. Remuneration and Appraisal CommitteeDuring the reporting period, the remuneration committee members of the Company board carried out their dutiesstrictly to relevant regulations, inspected remuneration policies and programs for directors, supervisors and seniormanagers, and appraised the performance of directors, supervisors and senior management according to seniormanager remuneration appraisal. By the end of the reporting period, the Company has not implemented optionscheme.3. Strategy committeeDuring the reporting period, the strategy committee of the company's board of directors put forward opinions onthe company's development plans and investment decisions, and believed that the company should strive tostrengthen its main business, ensure the profit of the main business year, and avoid the risk of delisting, at thesame time, continued to look for suitable projects for asset reorganization, enrich the industrial structure, andincrease main business income and profit growth points.4. Nomination committeeDuring the reporting period, the company did not have any nominations.VII. Works from Supervisory CommitteeThe Company has risks in reporting period that found in supervisory activity from supervisory committee□ Yes √ NoSupervisory committee has no objection about supervision events in reporting periodVIII. Examination and incentives of senior management1. Pursuant to People-oriented Principle, the Company employs outstanding persons in long-term, and admits thebest candidates on the premise of openness, fairness, justice. Those who pass trial comprehensive appraisal and benominated by general managers and approved by the board meeting can be employed as senior management of theCompany.2. The Company adopts a clear appraisal system in which assessment methods are made to the performance andduty fulfillment of senior management. Assessments are carried out monthly and annually by the same level andhigher 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. Theclear rewards and punishments, balance between remuneration and work performance, survival of fittestencourage senior management to make constantly progress and improve their own comprehensive ability which inturn 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 ControlDisclosure date of full internal control appraisal report April 24, 2021 Relevant information found in Appraisal Report of InternalDisclosure index of full internal control appraisal report Control for 2020 published on Juchao Website dated 24 April 2021The ratio of the total assets of units included in the scope of evaluationaccounting for the total assets on the company's consolidated financial 100.00%statementsThe ratio of the operating income of units included in the scope ofevaluation 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 deficienciesQualitative Significant deficiencies: the selection and application of of the company’s internal controls have not been rectifiedcriteria  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 deviationQuantitative  Significant deficiencies: direct property loss ranged from 1 rate, the overall impact level of the deficiency is lowerstandard  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 ofsignificant defects 0in financialreportsAmount ofsignificant defects 0in non-financialreportsAmount ofimportant defects 0in financialreportsAmount ofimportant defects 0in non-financialreports X. Auditing report of internal control √ Applicable□ Not applicable  Deliberations in Internal Control Audit ReportTo 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 controlThe 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 isresponsible for evaluating its effectiveness.II. Auditor’s responsibilitiesOur responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit. Anddisclosed major deficits of noted internal control without financial statement concerned.III. Inherent feature of internal controlThe internal control has an inherent limitation, and exist mistakes that cannot prevent and being discovered. Moreover, the internal controlmight be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to speculate futureeffectiveness of the internal control in line with the auditing result has a certain risk. IV. Auditing opinion: in our opinionThe Company, in line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control offinancial 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 2021Disclosure details of audit report of Disclosedinternal controlDisclosure date of audit report of April 24, 2021internal control (full-text)Index of audit report of internal Relevant information found in Self-appraisal Report of Internal Control for 2020 published on Juchaocontrol (full-text) Website dated 24 April 2021.Opinion type of auditing report of Standard unqualifiedICwhether the non-financial report Nohad 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 bondsWhether 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  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 ReportI. 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 ReportTo all shareholders of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd.,I. OpinionWe have audited the financial statements of Hainan Dadonghai Tourism Centre (Holdings) Co., Ltd. (hereinafterreferred to as 'the Company'), which comprise the consolidated and parent Company’s balance sheet of 31December 2020 and profit statement, and cash flow statement, and statement on changes of shareholders’ equityfor 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 AccountingStandings for Enterprises in all major respects, it fairly reflects the consolidate and parent company’s financialstatus as of 31 December 2020 under the name of Dadonghai well we the operation results and cash flow for theyear of 2020.II. Basis for Our OpinionWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Ourresponsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independentof the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese 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 incomeThe Company had operating income of For room sales revenue, we understood and evaluated the management's design of internal15.512 million yuan in 2020, of which room controls in sales processes from approval of contracts to the accounting of sales revenue andincome 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 ofAs income is a key performance indicator ofsignificant risks and remuneration related to room revenue recognition, and thus assessed theDadonghai 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 usingincorrect 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 judgeroom 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 decorationDadonghai Co., Ltd. renovated the guest For the confirmation and amortization of long-term unamortized expenses, we implemented theroom 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 implementation17,066,700yuan 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 andbeen put into use on October 12, 2020, with renovation of Building B by Dadonghai Co., Ltd., the bidding documents for decoration andamortization of 744,732.21 yuan in the renovation, and the notice of bid winning, etc. to confirm the appropriateness of the cost of thecurrent 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, paymentsignificant and has a greater impact on this receipt, and project acceptance certificate to confirm the authenticity of the cost of the decorationyear and subsequent years, and there is a risk and renovation project and the accuracy of the time point when the project reaching the intendedthat 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 theconfirmation 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 theDadonghai 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 financialstatements and our auditor's report.Our opinion on the financial statements does not cover the other information and we do not and will not expressany form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationidentified above and, in doing so, consider whether the other information is materially inconsistent with thefinancial 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 thisauditor's report, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial StatementsThe Company's management is responsible for preparing the financial statements in accordance with therequirements 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 freefrom material misstatements, whether due to frauds or errors.In preparing the financial statements, management of the Company is responsible for assessing the Company'sability to continue as a going concern, disclosing matters related to going concern (if applicable) and using thegoing concern basis of accounting unless management either intends to liquidate the Company or to ceaseoperations, 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 StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial 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 accordancewith the audit standards will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence 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 professionalskepticism 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 andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud 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 areappropriate 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 andrelated 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 orconditions that may cast significant doubt on the Company's ability to continue as a going concern. If we concludethat a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosuresin the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However, future events or conditions maycause the Company to cease to continue as a going concern.(5) Evaluate the overall presentation (Including disclosure), structure and content of the financial statements, andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express an opinion on the merge financial statements. We in charge of theguidance, 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 andtiming of the audit and significant audit matters, including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably 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 ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication. BDO CHINA Shu Lun Pan Certified Public Accountant of China: Li JinhuaCertified 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 StatementExpressed in Renminbi unless otherwise stated1. Consolidated balance sheetPrepared 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 assetTotal non-current asset 87,667,634.51 76,386,716.16Total assets 97,441,339.20 87,521,184.25Current 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  37,577.12Total current liabilities  17,224,588.57  7,544,895.25Non-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 1,914,592.66Total non-current liabilities 13,298,035.64  1,489,685.04Total liabilities  30,522,624.21  9,034,580.29Owner’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  87,521,184.25Legal Representative: Yuan XiaopingAccounting Principal: Fu ZongrenAccounting Firm’s Principal: Fu Zongren2. 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 assetsTotal non-current assets 88,667,634.51  77,386,716.16Total assets  98,440,353.71  88,519,696.95Current 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  88,519,696.953. 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 incomeII. 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 contractreserve 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 companyand joint venture  The termination of income recognition forfinancial 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 13,086.64IV. Total profit (Loss is listed with “-”)  -11,567,888.97  756,769.26 Less: Income tax expense 47.80V. 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 lossesVI. Net after-tax of other comprehensive income Net after-tax of other comprehensive income attributable toowners of parent company (I) Other comprehensive income items which will not bereclassified subsequently to profit of loss  1.Changes of the defined benefit plans thatre-measured  2.Other comprehensive income under equity methodthat cannot be transfer to gain/loss  3.Change of fair value of investment in other equityinstrument  4.Fair value change of enterprise's credit risk  5. Other (ii) Other comprehensive income items which will bereclassified subsequently to profit or loss  1.Other comprehensive income under equity methodthat can transfer to gain/loss  2.Change of fair value of other debt investment  3.Amount of financial assets re-classify to othercomprehensive income  4.Credit impairment provision for other debtinvestment  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 0.0021As for the enterprise combination under the same control, the net profit achieved by the combined party before consolidation was 0Yuan in the period while 0 Yuan achieved last periodLegal Representative: Yuan XiaopingAccounting Principal: Fu ZongrenAccounting Firm’s Principal: Fu Zongren4. 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 13,086.64III. Total Profit (Loss is listed with “-”)  -11,567,434.96  755,581.53  Less: Income taxIV. 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 bereclassified subsequently to profit of loss  1.Changes of the defined benefit plans thatre-measured  2.Other comprehensive income under equity methodthat cannot be transfer to gain/loss  3.Change of fair value of investment in other equityinstrument  4.Fair value change of enterprise's credit risk  5. Other  (ii) Other comprehensive income items which will bereclassified subsequently to profit or loss  1.Other comprehensive income under equity methodthat can transfer to gain/loss  2.Change of fair value of other debt investment  3.Amount of financial assets re-classify to othercomprehensive income  4.Credit impairment provision for other debtinvestment  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 0.00215. 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  3,292,591.17Subtotal of cash outflow arising from operating activities 22,975,997.44 25,204,867.54Net cash flows arising from operating activities -6,729,267.98 4,713,661.51II. 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 68,870.00long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activitiesSubtotal 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 12,723,946.92assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activitiesSubtotal of cash outflow from investing activities 13,741,025.28 12,723,946.92Net cash flows arising from investing activities -13,732,725.28 -12,655,076.92III. Cash flows arising from financing activities Cash received from absorbing investment  Including: Cash received from absorbing minorityshareholders’ investment by subsidiaries Cash received from loans 19,791,474.22 Other cash received concerning financing activitiesSubtotal 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 bysubsidiaries 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 7,422,939.896. 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  7,421,452.597. Consolidate change of owners’ equityCurrent 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 sI. Balance at the end of 364,100,000.00  54,142,850.01  -339,756,246.05 78,486,603.96  78,486,603.96the last year Add: Changes ofaccounting policy Errorcorrection of the lastperiod Enterprisecombine under the samecontrol  OtherII. Balance at the 364,100,000.00  54,142,850.01  -339,756,246.05 78,486,603.96  78,486,603.96beginning of this yearIII. Increase/ Decrease inthis year (Decrease is -11,567,888.97 -11,567,888.97 -11,567,888.97listed with “-”) (i) Total comprehensive -11,567,888.97 -11,567,888.97 -11,567,888.97income (ii) Owners’ devotedand decreased capital1.Common sharesinvested by shareholders2. Capital invested byholders of other equityinstruments3. Amount reckoned intoowners equity withshare-based payment4. Other(III) Profit distribution1. Withdrawal of surplusreserves2. Withdrawal of generalrisk provisions3. 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 forwardinternal owners’ equity1. Capital reservesconversed to capital(share capital)2. Surplus reservesconversed to capital(share capital)3. Remedying loss withsurplus reserve4 Carry-over retained ．earnings from thedefined benefit plans5 Carry-over retained ．earnings from othercomprehensive income6. Other(V) Reasonable reserve1. Withdrawal in thereport period2. Usage in the reportperiod(VI)OthersIV. Balance at the end of  364,100,000.00 54,142,850.01  -351,324,135.02 66,918,714.99 66,918,714.99the 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  sI. Balance at the end of  364,100,000.00 54,142,850.01 -340,454,153.72 77,788,696.29 77,788,696.29the last year Add: Changes of -58,813.79 -58,813.79 -58,813.79accounting policy Errorcorrection of the lastperiod Enterprisecombine under the samecontrol  OtherII. Balance at the  364,100,000.00 54,142,850.01 -340,512,967.51 77,729,882.50 77,729,882.50beginning of this yearIII. Increase/ Decreasein this year (Decrease is 756,721.46 756,721.46 756,721.46listed with “-”) (i) Total comprehensive 756,721.46 756,721.46 756,721.46income (ii) Owners’ devotedand decreased capital1.Common sharesinvested by shareholders2. Capital invested byholders of other equityinstruments3. Amount reckoned intoowners equity withshare-based payment4. Other(III) Profit distribution1. Withdrawal of surplusreserves2. Withdrawal of generalrisk provisions3. Distribution forowners (or shareholders)4. Other(IV) Carrying forwardinternal owners’ equity1. Capital reservesconversed to capital(share capital)2. Surplus reservesconversed 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 withsurplus reserve4 Carry-over retained ．earnings from thedefined benefit plans5 Carry-over retained ．earnings from othercomprehensive income6. Other(V) Reasonable reserve1. Withdrawal in thereport period2. Usage in the reportperiod(VI)OthersIV. Balance at the end of 364,100,000.00 54,142,850.01 -339,756,246.05 78,486,603.96  78,486,603.96the 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  sI. 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  OtherII. Balance at the beginning of this year 364,100,000.00 54,142,850.01  -339,757,154.25  78,485,695.76III. Increase/ Decrease in this year (Decrease is -11,567,434.96  -11,567,434.96listed with “-”) (i) Total comprehensive income -11,567,434.96  -11,567,434.96 (ii) Owners’ devoted and decreased capital1.Common shares invested by shareholders2. Capital invested by holders of other equityinstruments3. Amount reckoned into owners equity withshare-based payment4. Other(III) Profit distribution1. Withdrawal of surplus reserves2. Distribution for owners (or shareholders)3. Other(IV) Carrying forward internal owners’ equity1. Capital reserves conversed to capital (sharecapital)2. Surplus reserves conversed to capital (sharecapital)3. Remedying loss with surplus reserve4 Carry-over retained earnings from the defined ．benefit plans5 Carry-over retained earnings from other ．comprehensive income6. Other(V) Reasonable reserve1. Withdrawal in the report period2. Usage in the report period(VI)OthersIV. 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  u e b  e e s t Item a n l  Provision of Total owners’  Share capital r O Capital reserve h h  l t e  general risk  equity  r t e r e  o  e h n e r  c r r  d e s s  a y e  r i e  p s  s v r  i s e  t e v  t h r  o  e  a a v  c i  l r e  k n  e c  s s o  e m  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  r  i  t  i  e  sI. 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  OtherII. Balance at the beginning of this year 364,100,000.00 54,142,850.01 -340,512,735.78  77,730,114.23III. Increase/ Decrease in this year (Decrease is 755,581.53  755,581.53listed with “-”) (i) Total comprehensive income 755,581.53  755,581.53 (ii) Owners’ devoted and decreased capital1.Common shares invested by shareholders2. Capital invested by holders of other equityinstruments3. Amount reckoned into owners equity withshare-based payment4. Other(III) Profit distribution1. Withdrawal of surplus reserves2. Distribution for owners (or shareholders)3. Other(IV) Carrying forward internal owners’ equity1. Capital reserves conversed to capital (sharecapital)2. Surplus reserves conversed to capital (sharecapital)3. Remedying loss with surplus reserve4 Carry-over retained earnings from the defined ．benefit plans5 Carry-over retained earnings from other ．comprehensive income6. Other(V) Reasonable reserve1. Withdrawal in the report period2. Usage in the report period(VI)OthersIV. 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 thetradable shareholders for obtaining the circulation rights, and the tradable shareholders got 3 shares for every 10shares. 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 theCompany's registered capital was RMB 364.1 million. Legal representative: Yuan Xiaoping. Unified social creditcode: 91460000201357188U. Domicile: Dadonghai, Hedong District, Sanya. Business scope: Accommodationand catering industry (limited to branches); photography; flower bonsai, knitwear, general merchandise, hardwareand electrical equipment, chemical products (except franchised operations), daily necessities, industrial means ofproduction (except franchised operations), metal materials, machinery equipment; sales of train, bus and vehicletickets 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 statementsAs at December 31, 2020, the subsidiary included into the Company's scope of consolidated financial statementsis as follows: SubsidiaryHainan 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 ofconsolidated financial statements and changes thereof.IV. Basis for the preparation of the financial statements1.Preparation basisThe Company prepared financial statements in accordance with the Accounting Standards for BusinessEnterprises — Basic Standards and the specific accounting standards, the Accounting Standards for BusinessEnterprises - Application Guidance, the Accounting Standards for Business Enterprises - Interpretation and otherrelevant provisions, issued by the Ministry of Finance, (hereinafter referred to collectively as the 'AccountingStandards for Business Enterprises'), as well as the disclosure provisions of the Rules for the Compilation andSubmission of Information Disclosure by Companies Offering Securities to the Public No.15 - GeneralRequirements for Financial Reports.2.Going concernDue 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 estimatesSpecific 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 andestimates.1.Statement on compliance with the Accounting Standards for Business EnterprisesThe financial statements prepared by the Company meet requirements of the Accounting Standards for BusinessEnterprises, and truly and completely reflect the consolidated and the Company’s financial position as ofDecember 31, 2020 as well as operation results and cash flows for the year 2020.2. Accounting periodThe accounting year is from January 1 to December 31 in calendar year.3. Operating cycleThe Company's operating cycle is 12 months.4.Functional currencyRMB is adopted as the functional currency.5.Accounting treatment methods for business combinations under and not under common controlBusiness combination under common control: The assets and liabilities (including the goodwill arising from theacquisition of the combinee by the ultimate controller) acquired by the Company in business combinations aremeasured at book values of assets and liabilities of the combinee in the consolidated financial statements of theultimate controller on the combination date. The stock premium in the capital reserves is adjusted according to thedifference between the book value of the net assets acquired in business combination and the book value of theconsideration paid for the combination (or total par value of shares issued). If there is no sufficient stock premiumin 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 incurredor assumed and equity securities issued by the purchaser in order to obtain the control of the purchaser on thepurchase date. The difference between the cost of the merger and the share of the fair value of the identifiable netassets acquired by the purchaser in the merger shall be recognized as goodwill; The difference between the mergercost and the share of the fair value of the identifiable net assets acquired by the purchaser in the merger shall berecorded 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 thepurchase date.The expenses directly related to the enterprise merger shall be recorded into the current profit and loss whenincurred. The transaction cost of issuing equity securities or debt securities for the purpose of business mergershall be included in the initial recognized amount of equity securities or debt securities.6. Preparation methods of consolidated financial statements6.1Scope of consolidationThe scope of consolidated financial statements of the Company is determined on the basis of control, and thescope of consolidated financial statements shall be including the Company and all its subsidiaries.6.2 Procedures of consolidationThe Company regards the whole enterprise group as an accounting subject and prepares consolidated financialstatements in accordance with the unified accounting policy, reflecting the overall financial situation, operatingresults and cash flow of the enterprise group.The Company and subsidiaries, subsidiaries between the impact ofinternal 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 theaccounting period are inconsistent with the company, the necessary adjustments shall be made in accordance withthe 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 inthe current comprehensive income are listed separately under the owner's equity item in the consolidated balancesheet, the net profit item in the consolidated profit table and the total comprehensive income item in theconsolidated profit table. The current loss shared by the minority shareholders of the subsidiary exceeds thebalance formed by the minority shareholders' share in the initial owner's equity of the subsidiary, thus reducing theequity of several shareholders.(1) Increase of subsidiaries or businessDuring the reporting period, the operating results and cash flows of the subsidiary or business from consolidationperiod to the end of the reporting period shall be included in the consolidated financial statements as a result of themerger 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 equityinvestment held prior to the acquisition of control by the merged party has been recognized as relevant gains andlosses, other consolidated income and other net assets changes between the date of acquisition of the originalequity 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 consolidatedfinancial statements on the basis of the fair value of identifiable assets, liabilities and contingent liabilities as 87  司公限有份股心中游旅海东大南海  2020 文全告报度年年determined on the date of purchase, as a result of the consolidation of subsidiaries or businesses under the samecontrol.If, for reasons such as additional investment, the investor under the same control can be controlled, the equity ofthe buyer held before the date of purchase shall be remeasured according to the fair value of the equity on the dateof purchase. The difference between fair value and book value is included in current investment income. Othercomprehensive income and other changes in owner's equity under equity method accounting which can bere-classified into profit and loss after the share of the buyer held before the purchase date are converted into thecurrent investment income of the purchase date.(2) Disposal of subsidiaries General method of treatmentWhen 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 ofcontrol. 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 continuouslycalculated by the original subsidiary from the date of purchase or the date of merger, and the investment income inthe current period of loss of control. Other comprehensive income related to the equity investment of the originalsubsidiary company and other owner's equity changes under the accounting of equity method, which can bereclassified into profit and loss, are converted into current investment income when losing control right.② Disposal of subsidiaries by stagesIf the control is lost due to disposal of the equities in subsidiaries through multiple transactions by stages, and theterms, conditions and economic impact of the transactions related to the enterprise's disposal of its investment inthe subsidiaries meet one or more of the following circumstances, it usually indicates that multiple transactionsshould 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 thesubsidiary and losing control. Before the loss of control, the difference between the disposal price and the share ofthe net assets of the subsidiary corresponding to the disposal investment shall be recognized as other consolidatedincome in the consolidated financial statements and transferred to the gains and losses of the current period of lossof 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  88 司公限有份股心中游旅海东大南海 2020 文全告报度年年shall be partially disposed of without loss of control; in the event of loss of control, Accounting treatment shall becarried out according to the general treatment method of the disposal subsidiary.(3) Purchase of minority interest of subsidiariesAdjust the equity premium in the capital reserve in the consolidated balance sheet, if the equity premium in thecapital reserve is insufficient to reduce the equity premium in the capital reserve, adjust the retained earnings.(4) Partial disposal of equity investments in subsidiaries without losing controlThe difference between the disposal price and the disposal of long-term equity investment shall enjoy the share ofnet assets continuously calculated by the subsidiary from the date of purchase or merger, and adjust the equitypremium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve isinsufficient, the retained earnings shall be adjusted.7.Classification of joint venture arrangements and accounting treatment for joint venturesThe joint venture arrangement is divided into joint operation and joint venture.Joint operation refers to the joint venture arrangement in which the joint venture party enjoys the assets related tothe arrangement and bears the liabilities related to the arrangement.The Company confirms the following items relating to the share of interests in joint operations:(1) To recognize the assets held separately by the Company and the assets held jointly in accordance with itsshare;;(2) Liabilities undertaken by the Company solely and liabilities jointly undertaken by the Company based onshares held;(3) Revenue from the sales of output share enjoyed by the Company in the joint operation;(4) Revenue from the sales of the joint operation output based on the shares held by the Company; and(5) Separate costs, and costs for the joint operation based on the shares held by the Company.The company's investment in the joint venture using equity method accounting, see this note 'III.(13) Long-termequity investment'.8.Recognition criteria of cash and cash equivalentsIn preparing the statement of cash flows, cash on hand and deposits that can be used for payment at any time arerecognized as cash. An investment that has four conditions: short duration (due within three months from the dateof purchase), strong liquidity, easy conversion to known cash and low risk of change in value is identified as acash equivalent.9. Foreign currency business and statement translationForeign currency business uses the spot exchange rate on the date of transaction as the conversion rate to convert 89 司公限有份股心中游旅海东大南海 2020 文全告报度年年the foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rateon the balance sheet date, and the resulting exchange difference, Except for foreign currency special loans relatedto the purchase and construction of assets that meet the capitalization conditions, the exchange difference isrecorded into the current profit and loss.10. Financial instrumentsWhen the Company becomes a party to a financial instrument contract, it recognizes a financial asset, financialliability or equity instrument.Classification of financial instrumentsAccording to the business model of the Company's management of financial assets and the characteristics of thecontract cash flow of financial assets, financial assets are classified at the time of initial recognition as: financialassets measured at amortized cost, financial assets measured at fair value and recorded in other comprehensiveincome and financial assets measured at fair value and recorded in the profits and losses of the current period.The Company will meet the following conditions and not designated as fair value measurement and its changesinto the current profit and loss of financial assets, classified as amortized cost measurement of financial assets:- The business model is aimed at collecting contract cash flows;- Contract cash flows are payments only for principal and interest based on outstanding principal amounts.The Company will also meet the following conditions and is not designated as fair value measurement and itschanges into the current profit and loss of financial assets, classified as fair value measurement and its changesinto other comprehensive income financial assets (debt instruments):- The business model targets both the collection of contract cash flows and the sale of the financial asset;- Contract cash flows are payments only for principal and interest based on outstanding principal amounts.For non-transactional equity investment, the Company may irrevocably designate it at the time of initialrecognition as a financial asset measured at fair value and recorded in other comprehensive income (equityinstrument). The designation is made on the basis of a single investment, and the relevant investment conforms tothe definition of equity instruments from the issuer's point of view.In addition to the above financial assets measured at amortized cost and at fair value and recorded in othercomprehensive income, The Company classifies all remaining financial assets as financial assets measured at fairvalue and recorded in the profits and losses of the current period.At the time of initial recognition, if accountingmismatches can be eliminated or significantly reduced, The Company may irrevocably designate financial assetsthat should be classified as amortized cost or measured at fair value and whose changes are included in othercomprehensive income as financial assets measured at fair value and recorded in the profits and losses of the 90 司公限有份股心中游旅海东大南海  2020 文全告报度年年current period.Financial liabilities are classified at the time of initial recognition as: financial liabilities measured at fair valueand recorded in current profits and losses and financial liabilities measured at amortized cost.Financial liabilities that meet one of the following conditions may be designated at the time of initial measurementas financial liabilities measured at fair value and whose changes are recorded into the profits and losses of thecurrent period:1) this designation can eliminate or significantly reduce accounting mismatches.2) manage and evaluate the financial liability portfolio or financial assets and financial liabilities portfolio on thebasis of fair value according to the enterprise risk management or investment strategy specified in the officialwritten document, And report to key managers on this basis within the enterprise.3) the financial liability contains embedded derivatives that need to be split separately.Recognition basis and measurement method of financial instruments(1) Financial assets measured at amortized costsFinancial assets measured at amortized cost include notes receivable, accounts receivable, other receivables,long-term receivables, creditor's rights investment, etc., are initially measured at fair value, and the relatedtransaction costs are included in the initial recognition amount; Accounts receivable that do not contain significantfinancing components and accounts receivable that the Company has decided not to consider financingcomponents for more than one year are initially measured at the contract transaction price.Interest calculated by the real interest rate method during the holding period is recorded into the current profit andloss.Upon recovery or disposal, the difference between the obtained price and the book value of the financial asset isrecorded into the current profit or loss.(2) Financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive incomeFinancial assets (debt instruments) measured at fair value and whose changes are included in other comprehensiveincome, including receivables financing, other debt investments, etc., shall be measured at fair value, and therelevant transaction costs shall be included in the initial recognized amount. The financial asset is subsequentlymeasured at fair value, and changes in fair value are included in other comprehensive gains and losses exceptinterest, impairment losses or gains and gains and exchange gains calculated using the real interest rate method.Upon termination of recognition, the accumulated gains or losses previously recorded in other comprehensive 91 司公限有份股心中游旅海东大南海  2020 文全告报度年年income shall be transferred from other comprehensive income and recorded in the current profits and losses.(3) Financial assets (equity instruments) measured at fair value and whose changes are included in otherconsolidated incomeFinancial assets (equity instruments) measured at fair value and whose changes are included in othercomprehensive income, including investments in other equity instruments, shall be initially measured at fair value,and relevant transaction costs shall be included in the initial recognized amount. The financial assets are measuredaccording to the fair value, and whose changes of the fair value are included in other comprehensive income. Thedividends obtained are recorded in the current profits and losses.Upon termination of recognition, accumulated gains or losses previously recorded in other comprehensiveearnings are transferred from other comprehensive earnings and recorded in retained earnings.(4) Financial assets measured at fair value and whose changes are included in the current profits and lossesFinancial assets measured at fair value and whose changes are included in the current profits and losses, includingtrading financial assets, derivative financial assets, other non-current financial assets, etc., shall be measured atfair value, and the relevant transaction expenses shall be included in the current profits and losses. The financialassets are measured at fair value, and changes in fair value are included in the current profit and loss.(5) Financial liabilities measured at fair value and whose changes are included in the current profit and lossFinancial liabilities measured at fair value and whose changes are included in the current profits and lossesinclude transactional financial liabilities and derivative financial liabilities, which are initially measured at fairvalue, and the relevant transaction expenses are included in the current profit and loss. The financial liability ismeasured at fair value, and changes in fair value are included in the current profit and loss.Upon termination of recognition, the difference between the book value and the consideration price is recorded inthe current profits and losses.(6) Financial liabilities measured at amortization costsFinancial liabilities measured at amortization costs include short-term borrowings, notes payable, accountspayable, other payables, long-term borrowings, bonds payable, long-term payables, and shall be initially measuredat fair value, and related transaction costs are included in the initial recognized amount.The interest calculated using the actual interest rate method during the holding period is included in the currentprofits and losses.Upon termination of recognition, the difference between the consideration price and the book value of the  92 司公限有份股心中游旅海东大南海 2020 文全告报度年年financial liability shall be recorded in the current profits and losses.Financial asset termination recognition and financial asset transferUpon meeting one of the following conditions, the Company terminates the recognition of financial assets:- Termination of contractual rights to collect cash flows from financial assets;- Financial assets have been transferred and almost all risks and rewards of ownership of financial assets havebeen transferred to the transferring party;- Financial assets have been transferred and although the Company has neither transferred nor retained almost allrisks and rewards in the ownership of financial assets, it has not retained control over financial assets.In the event of a transfer of financial assets, if almost all risks and rewards in the ownership of financial assets areretained, the recognition of the financial assets shall not be terminated.In judging whether the transfer of financial assets meets the above conditions for the termination of financialassets, the principle of substance over form is adopted.The company distinguishes the transfer of financial assets into the overall transfer of financial assets and partialtransfer. If the transfer of financial assets as a whole meets the conditions for termination of recognition, thedifference between the following two amounts shall be recorded into the profits and losses of the current period:(1) The carrying value of the financial assets transferred;(2) The sum of the consideration received as a result of the transfer and the cumulative amount of the change infair value that was originally directly included in the owner's equity (where the financial assets involved in thetransfer are financial assets (debt instruments) measured at fair value and whose changes are included in otherconsolidated income.If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of thetransferred financial assets as a whole shall be apportioned according to their relative fair value between thetermination of recognition and the non-termination of recognition, The difference between the following twoamounts shall be recorded into the profits and losses of the current period:(1) To terminate the carrying value of the recognized portion;(2) The consideration of the termination of the recognition portion corresponds to the sum of the amount of thetermination of the recognition portion (where the transferred financial assets are financial assets (debt instruments)measured at fair value and whose changes are included in other consolidated income) in the cumulative amount ofthe change in fair value originally directly included in the owner's equity.If the transfer of financial assets does not meet the conditions for termination of recognition, the financial assetshall continue to be recognized, and the consideration received shall be recognized as a financial liability.  93 司公限有份股心中游旅海东大南海 2020 文全告报度年年De-recognition of financial liabilitiesWhere the present obligations of financial liabilities have been discharged in whole or in part, the financialliability is derecognized or any part thereof shall be derecognized; if the Company signs an agreement withcreditors to replace the existing financial liabilities by undertaking new financial liabilities, and the new financialliabilities are substantially different from the existing ones in terms of contract terms, the existing financialliabilities shall be derecognized, and at the same time, the new financial liability shall be recognized.Where substantive changes are made to the contract terms of existing financial liability in whole or in part, theexisting financial liabilities or part thereof will be derecognized, and the financial liability the terms of which havebeen modified will be recognized as a new financial liability.Where financial liabilities are derecognized in whole or in part, the difference between the book value of thefinancial liabilities derecognized and the consideration paid (including non-cash assets transferred out or newfinancial liabilities borne) shall be included in the current profit or loss.Where the Company redeems part of its financial liabilities, it shall, on the redemption date, allocate the entirebook value of whole financial liabilities according to the comparative fair value of the part that continues to berecognized and the de-recognized part. The difference between the book value allocated to the derecognized partand the considerations paid (including non-cash assets surrendered and the new financial liabilities assumed) shallbe included in the current profit or loss.Determination method of the fair value of financial assets and financial liabilitiesThe fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. Thefair value of a financial instrument, for which there is no active market, is determined by using valuationtechniques. At the time of valuation, the Company adopts the techniques that are applicable in the current situationand supported by enough available data and other information, selects the input values that are consistent with thefeatures of assets or liabilities as considered by market participants in relevant asset or liability transactions, andgives priority to use relevant observable inputs. Unobservable inputs are used only under the circumstance when itis impossible or unobservable inputs to obtain relevant observable inputs.Test method and accounting treatment for impairment of financial assetsThe Company considers all reasonable and based information, including forward-looking information, estimatethe expected credit loss of financial assets measured at amortized cost and financial assets (debt instruments)measured at fair value and recorded in other consolidated income in a single or combined manner. Themeasurement of expected credit loss depends on whether credit risk increases significantly after initial recognitionof financial assets.If the credit risk of the financial instrument has increased significantly since the initial confirmation, the Company  94 司公限有份股心中游旅海东大南海 2020 文全告报度年年measures its loss preparation at the amount equivalent to the expected credit loss of the financial instrument forthe whole life of the financial instrument; If the credit risk of the financial instrument has not increasedsignificantly since the initial confirmation, the Company measures its loss preparation at the amount equivalent tothe expected credit loss of the financial instrument for the next 12 months.The resulting increase or reversal ofloss preparation shall be recorded as impairment loss or gain in the current profit or loss.Usually more than 30 days overdue, the Company believes that the credit risk of the financial instrument hasincreased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has notincreased significantly since the initial confirmation.If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the creditrisk of the financial instrument has not increased significantly since the initial recognition.If there is objective evidence that a financial asset has been devalued, the Company shall make provision for theimpairment of the financial asset on a single basis.11. Note receivableConsistent with the accounting policy of account receivable12. Account receivableFor accounts receivable, whether or not it contains significant financing elements, the Company is prepared tomeasure losses in accordance with the expected credit loss for the entire life span. For the existence of objectiveevidence to show the existence of impairment, as well as other accounts receivable applicable to the individualevaluation of the impairment test, to confirm the expected credit loss, the provision for individual impairment. Foraccounts receivable without objective evidence of impairment or when a single financial asset is unable to assessthe expected credit loss at reasonable cost, the company divides the accounts receivable into several combinationsaccording to the characteristics of credit risk. The basis for determining the combination is as follows: Portfolio Name  BasisAccount Receivables Portfolio 1  External Customers for Account ReceivablesAccount Receivables Portfolio 2  Consolidated Related Party Customers for Account ReceivablesFor the account receivables divided into portfolios, the Company refers to the history of credit loss experience,combined with the current situation and the forecast of the future economic situation, to prepare tables of aging ofaccount receivables and comparison tables of expected credit loss rate of the entire duration, and to calculate theexpected credit lossFor lease receivables, long-term receivables formed by the Company through the sale of goods or the provision ofservices, the Company chooses to always measure its loss provisions at an amount equal to the expected credit 95 司公限有份股心中游旅海东大南海 2020 文全告报度年年loss for the entire duration.13. Receivables financingConsistent with the Accounting Standards for Business Enterprise14. Other receivableMethods of determining for expected credit losses of other receivable and accounting treatmentFor other receivables, if the credit risk has not significantly increased since the initial recognition, it is in the firststage. The Company shall measure the loss provision according to the expected credit loss in the next 12 months.If the credit risk has increased significantly since the initial recognition, but the credit impairment has notoccurred, it is in the second stage. If the credit impairment has occurred since the initial recognition, it is in thethird stage. The Company shall measure the loss provision according to the expected credit loss of the instrumentthroughout its life.The Company divides other receivables into several portfolios based on the credit risk characteristics. The basisfor determining the portfolio is as follows: Portfolio Name  BasisOther Receivables Portfolio 1  Deposit, Security Deposit and Reserve ReceivablesOther Receivables Portfolio 2  Receivables of Advance Payment for Another PartyOther Receivables Portfolio 3  Other Account ReceivablesFor other receivables divided into portfolios, the Company refers to historical experience in credit loss, combinedwith the current situation and forecasted future economic situation, and by default risk exposure and the credit lossrate within next 12 months or the whole duration, to calculate the expected credit losses.15. InventoryClassification of inventories and costThe inventories are classified into: raw materials, commodity stocks, low-value consumables, food materials,fuels, etc.Measurement of inventories dispatchedThe commodity stocks are accounted for based on their selling prices, and the difference between the commoditypurchasing price and the selling price is adjusted monthly by the comprehensive spread rate method. Theinventory materials are measured at actual cost when purchased and warehoused, and measured using the first-infirst-out method when applied for use and dispatched. Low-value consumables are amortized on a one-off basis  96 司公限有份股心中游旅海东大南海 2020 文全告报度年年when applied for use.Determining basis of the net realizable value of inventories and method for inventory depreciation reserveOn the balance sheet date, inventory should be measured according to the lower cost and net realizable value.When the inventory cost is higher than its net realizable value, it shall be prepared to raise the inventory price. Netrealizable value refers to the estimated selling price of inventory in daily activities minus the estimated cost to beincurred at the time of completion, the estimated sales expenses and the amount of related taxes and fees.Inventory of goods directly used for sale, such as finished goods, goods in stock and materials used for sale, todetermine the net realizable value in the normal course of production and operation at the estimated selling priceof the inventory minus the estimated sales expenses and related taxes; inventory of materials requiring processingto determine the net realizable value in the normal course of production and operation at the estimated sellingprice of the finished product minus the estimated costs to be incurred at the time of completion, estimated salesexpenses and related taxes; The net realizable value of inventory held for the execution of a sales contract or alabor contract is calculated on the basis of the contract price. If the quantity of inventory held is more than thequantity ordered in the sales contract, The net realizable value of excess inventory is calculated on the basis ofgeneral sales price.If the factors affecting the previous write-down of inventory value have disappeared, resulting in the net realizablevalue of inventory being higher than its book value, it shall be reversed within the reserve amount of the originalinventory falling price, and the amount transferred back shall be recorded into the profits and losses of the currentperiod.Inventory systemPerpetual inventory system is adopted.Amortization method for low-cost consumables and packaging materials(1) Low-cost consumables are amortized in a lump sum;(2) Packaging materials are amortized in a lump sum.16. Contractual assetsAccounting policies effective 1 January 2020Methods and criteria for the recognition of contract assetsThe Company lists contract assets or contractual liabilities in the balance sheet according to the relationshipbetween performance obligations and customer payments. The Company's right to receive consideration (anddepends on factors other than the passage of time) for the transfer of goods or services to customers is listed as a 97 司公限有份股心中游旅海东大南海  2020 文全告报度年年contract asset. Contract assets and contractual liabilities under the same contract are shown in net terms. TheCompany's right to collect consideration from customers unconditionally (depending on the passage of time only)is shown separately as receivables.Methods of determining expected credit loss of contract assets and accounting treatmentThe method of determining the expected credit loss of the contract assets and the method of accounting treatmentare detailed in the test method and accounting treatment method of the impairment of the financial assets in noteIII(10).6. Test methods and accounting treatment for impairment of financial assets'17. Contract costsAccounting policies effective 1 January 2020Contract cost includes contract performance cost and contract acquisition cost.If the costs incurred by the Company for the performance of the contract do not fall within the scope of therelevant standards, such as inventory, fixed assets or intangible assets, it shall be recognized as an asset as thecontract performance cost when the following conditions are met: The cost is directly related to a current or expected contract. This cost increases the company's future resources for performance obligations. The cost is expected to be recovered.If the incremental cost incurred by the Company in order to obtain the contract is expected to be recovered, it shallbe recognized as an asset as the contract acquisition cost.The assets related to the contract cost shall be amortized on the same basis as the recognition of the goods orservices income related to the asset; However, if the amortization period of the contract acquisition cost does notexceed one year, the Company shall account for the profits and losses of the current period at the time ofoccurrenceIf the book value of the assets related to the contract cost is higher than the difference between the following twoitems, the Company shall make provision for the impairment of the excess part and shall confirm the impairmentloss of the assets:1) The remaining consideration is expected to be obtained as a result of the transfer of goods or services related tothe asset;2) Estimated costs to be incurred for the transfer of the relevant goods or services.If the above-mentioned difference is higher than the book value of the asset, the company shall return the originalimpairment provision and account for the profits and losses of the current period. However, the book value of thetransferred assets does not exceed the book value of the assets on the date of return.  98 司公限有份股心中游旅海东大南海  2020 文全告报度年年18. Assets holding for Sale19. Investment in debt obligations20. Other investment in debt obligations21. Long-term account receivable22.Long-term equity investmentJudgment criteria for joint control and significant influenceCommon control refers to the common control of an arrangement according to the relevant agreement, and therelated activities of the arrangement must be agreed by the participants who share the control right before they canmake decisions. If the company, together with other partners, exercises joint control over the invested unit and hasthe right to the net assets of the invested unit, the invested unit shall be the joint venture of the company.Major influence refers to the power to participate in the decision-making of the financial and business decisions ofthe invested units, but it cannot control or jointly control the formulation of these policies with other parties. If theCompany can exert great influence on the invested unit, the invested unit shall be a joint venture of the company.Determination of initial investment cost(1) Long-term equity investments resulting from mergerFor the long-term equity investment of the subsidiary formed by the merger under the same control, the initialinvestment cost of the long-term equity investment is based on the share of the book value of the owner's equity ofthe merged party in the consolidated financial statements of the final controlling party on the merger date.Thedifference between the initial investment cost of long-term equity investment and the book value of paymentconsideration is adjusted to adjust the equity premium in the capital reserve; when the equity premium in thecapital reserve is insufficient, the retained earnings are adjusted.If the initial investment cost of the long-termequity investment recognized in accordance with the above principles is the difference between the book value ofthe long-term equity investment before the merger and the book value of the new consideration of the sharesfurther obtained on the date of the merger, the equity premium is adjusted, and the retained earnings are reduced.For the long-term equity investment of subsidiaries formed by the merger of enterprises under the same control,the combined cost determined on the purchase date is taken as the initial investment cost of the long-term equityinvestment. If the invested unit under the same control can be controlled due to additional investment and otherreasons, the initial investment cost shall be taken as the sum of the original equity investment book value plus thenew investment cost.(2) Long-term equity investments obtained by means other than mergerLong-term equity investments obtained by cash payment are based on the actual purchase price as the initialinvestment cost.  99 司公限有份股心中游旅海东大南海 2020 文全告报度年年The long-term equity investment obtained by issuing equity securities shall be regarded as the initial investmentcost according to the fair value of issuing equity securities.Subsequent measurements and recognition of profit or loss(1) Long-term equity investments accounted for under cost methodThe Company's long-term equity investment in subsidiaries is accounted for by cost method unless the investmentmeets the conditions for holding for sale. In addition to the actual payment of the investment or the declared butnot yet issued cash dividends or profits contained in the consideration, the company shall recognize the currentinvestment income in accordance with the cash dividend or profit declared by the invested unit.(2) Long-term equity investments accounted for under the equity methodThe long-term equity investment of joint venture and joint venture shall be accounted by equity method. When theinitial investment cost is greater than the investment, it should enjoy the difference of the fair value share of theidentifiable net assets of the invested unit, and not adjust the initial investment cost of the long-term equityinvestment.The Company shall recognize the investment income and other combined income according to the net profit andloss realized by the invested unit and the share of other combined income, and adjust the book value of thelong-term equity investment.When recognizing the share of the net profit and loss of the invested unit, other comprehensive income and otherowner's equity changes, it shall be based on the fair value of the identifiable net assets of the invested unit at thetime of obtaining the investment, and shall be confirmed after adjusting the net profit and other comprehensiveincome of the invested unit in accordance with the accounting policy and accounting period of the company.The unrealized internal transaction gains and losses between the Company and the joint venture and the jointventure shall be offset by the portion attributable to the Company calculated in proportion to the amount to beenjoyed, and the investment income shall be recognized on this basis, except where the assets invested or soldconstitute business. If the unrealized internal transaction loss with the invested unit belongs to the impairment lossof assets, the full amount shall be confirmed.The net loss of a company to a joint venture or a joint venture shall, in addition to the obligation to bear additionallosses, be reduced to zero by the book value of the long-term equity investment and other long-term interests thatessentially constitute the net investment in the joint venture or joint venture. If the joint venture or joint venturerealizes net profit after the joint venture or joint venture, the Company shall restore the confirmed income sharingamount after the income sharing amount makes up for the unrecognized loss share amount.(3) Disposal of long-term equity investmentsDisposal of long-term equity investment, its book value and the actual acquisition price difference is accountedinto the current profit and loss. 100 司公限有份股心中游旅海东大南海 2020 文全告报度年年Where long-term equity investment accounted by part of the disposal equity method is still accounted for by theequity method, the other comprehensive income recognized by the original equity method is carried forwardaccording to the corresponding proportion on the same basis as the assets or liabilities directly disposed of by theinvested unit, and the other owner's equity changes are transferred to the current profit and loss proportionally.If the joint control or significant influence on the invested unit has been lost due to the disposal of equityinvestment, other comprehensive income recognized by the original equity investment due to the use of equityaccounting shall be treated on the same basis as the direct disposal of related assets or liabilities by the investedunit.Where the control of the invested unit has been lost due to the disposal of part of the equity investment and otherreasons, when preparing the individual financial statements, the remaining equity can be jointly controlled orsignificantly affected by the invested unit, and shall be accounted for according to the equity method, and adjustedby equity method accounting when the remaining equity is regarded as acquired. Other comprehensive incomerecognized prior to obtaining the control of the invested unit shall be carried forward proportionally on the samebasis as the assets or liabilities directly disposed of by the invested unit, and transferred to the profits and losses ofthe current period due to the changes in other owners' equity recognized by equity method accounting; If thesurplus equity cannot exercise joint control or exert significant influence on the invested unit, it shall berecognized as a financial asset, and the difference between the fair value and the book value on the date of loss ofcontrol shall be recorded into the profits and losses of the current period.Where the subsidiary equity investment is disposed of step by step through multiple transactions until the loss ofcontrol is a package transaction, each transaction is treated as a transaction that disposes of the subsidiary equityinvestment and loses control. If it is not a package transaction, each transaction shall be treated separately.23. Investment propertiesMeasurement modeMeasured by cost methodDepreciation or amortization methodThe investment properties refer to the properties held for earning rentals or/and capital appreciation, includingleased land use right, land use right held for transfer upon appreciation, and leased building (including self-builtbuildings or buildings developed for renting or buildings under construction or development for future renting).The subsequent expenditure related to investment real estate is included in the cost of investment real estate whenthe relevant economic benefits are likely to flow in and its cost can be reliably measured; otherwise, it is recordedinto the profits and losses of the current period when it occursThe Company measures the existing investment properties by using the cost model. For investment propertymeasured by using the cost model, the buildings for lease shall be depreciated by using policies the same as usedfor fixed assets of the Company, and the land use rights for lease shall be amortized by using the same policies asapplicable to intangible assets.  101 司公限有份股心中游旅海东大南海  2020 文全告报度年年24. Fixed assets(1) Recognition criteriaFixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting orbusiness management with useful lives exceeding one year. Fixed assets are recognized when they simultaneouslymeet the following conditions:(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and(2) The costs of the fixed assets can be measured reliably.Fixed assets are initially measured at cost, taking into account the impact of expected disposal costs.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economic benefitsassociated with them are likely to flow in and their costs can be reliably measured; for the replaced part, the bookvalue is terminated; All other subsequent expenditures are recorded at the time of occurrence into the currentprofit or loss(2) Depreciation method Yearly depreciation Asset type  Depreciation method Year for depreciation Residual value rate rate Buildings and Straight-line method 20-40 5% 4.75%-2.37% constructions Straight-line method 8-20 5% 11.87%-4.75% Machinery equipment Electronic entertainment  Straight-line method 5-16 5% 19%-5.93% equipment Transportation Straight-line method 7-12 5% 13.57%-7.91% equipment Other equipment  8  5% 11.87%Depreciation of fixed assets is classified by the method of average life, and the depreciation rate is determinedaccording to the category of fixed assets, the expected useful life and the estimated net residual value rate.For thefixed assets with impairment provisions, the depreciation amount shall be determined in the future periodaccording to the book value after deducting the impairment preparation and according to the useful life.If theservice life of each component of fixed assets is different or the economic benefits are provided to the enterprisein different ways, different depreciation rates or depreciation methods are selected to calculate depreciationseparately.The fixed assets leased by financial lease adopt depreciation policy consistent with their own fixed assets.If it can 102 司公限有份股心中游旅海东大南海 2020 文全告报度年年reasonably determine that ownership of the leased assets will be acquired at the expiration of the lease term,depreciation shall be calculated within the useful life of the leased assets; if it is impossible to reasonablydetermine the ownership of the leased assets at the expiration of the lease term, Depreciation is calculated within ashorter period of the lease term and the useful life of the leased assets.(3) Identification basis, valuation method and depreciation of the financing leased fixed assetsIf any of the following conditions is stipulated in the terms of the lease agreement signed between the companyand the lessee, it shall be recognized as the financing leased assets:1) After the expire of the lease term, the ownership of the leased assets shall be vested in the company;2) The company has an option to purchase the asset, the purchase price is far less than the fair value of the assetwhen the option is exercised;3) The leasing term is the majority of the life of the leased asset;4) The present value of the minimum lease payment on the beginning of the lease does not have many differencesfrom the fair value of the asset;5) The leased assets are of a special nature and can only be used by the lessee if they are not substantiallymodifiedOn the starting date of the lease, the company takes the lower between the fair value of the leased asset and thepresent value of the minimum lease payment as the book value of the leased asset, and the minimum leasepayment as the book value of the long-term payable, and the difference between the fair value of the leased assetand the present value of the minimum lease payment as the unrecognized financing fee.25. Construction in progressThe book-entry values of the fixed assets are stated at total expenditures incurred before reaching workingcondition for their intended use. Where a construction in progress reaches the working condition for its intendeduse but the final account for completion is not made yet, it shall be transferred into fixed assets from the datewhen it reaches the working condition for intended use at the estimated value according to the project budget,construction price or actual cost, and the depreciation of the said fixed assets shall be accrued according to theCompany's depreciation policies applicable to fixed assets. After the final account for completed project is done,the Company adjusts the original estimated value of the fixed asset in accordance with the actual cost, but doesnot adjust the provision for such depreciation that had been accrued.26. Borrowing costsRecognition principles of capitalization of borrowing costsThe borrowing costs incurred to the Company and directly attributable to the acquisition and construction orproduction of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; other 103 司公限有份股心中游旅海东大南海  2020 文全告报度年年borrowing costs should be recognized as costs according to the amount incurred and be included into currentprofit and loss.Assets meeting the capitalization requirements refer to fixed assets, investment properties and inventories, etc.that need to be purchased, constructed or produced for a long time to be available for intended use or sale.Capitalization period of borrowing costsCapitalization period refers to the period from the beginning of capitalization to the cease of capitalization,excluding the period of capitalization suspension of borrowing costs.Borrowing costs may be capitalized only when all the following conditions are met:(1) Asset disbursements, which include those incurred by cash payment, the transfer of non-cash assets or theundertaking of interest-bearing debts for acquiring and constructing or producing assets eligible for capitalization,have already been incurred;(2) Borrowing costs have already been incurred; and(3) The acquisition and construction or production activities which are necessary to prepare the assets for theirintended use or sale have already been started.Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible forcapitalization have reached the working condition for their intended use or sale.Period of capitalization suspensionIf the acquisition, construction or production activities of assets eligible for capitalization are abnormallyinterrupted and such condition lasts for more than three months, the capitalization of borrowing costs should besuspended; if the interruption is necessary procedures for the acquired, constructed or produced assets eligible forcapitalization to reach the working conditions for their intended use or sale, the borrowing costs continue to becapitalized. Borrowing costs incurred during the interruption are recognized as the current profit or loss andcontinue to be capitalized until the acquisition, construction or production of the assets restarts.Calculation method of capitalization amount of borrowing costsFor special loans borrowed for the purchase or production of assets that meet the capitalization conditions, theborrowing costs actually incurred in the current period shall be specially borrowed, less the amount of interestincome earned by the unused loan funds deposited in the bank or investment income obtained by temporaryinvestment to determine the capitalized amount of the borrowing costs.For a general loan occupied for the purchase or production of assets that meet the capitalization conditions, theamount of borrowing expenses to be capitalized shall be calculated according to the weighted average of thecumulative asset expenditure exceeding the part of the special loan multiplied by the capitalization rate of thegeneral loan occupied. The capitalization rate is determined by the weighted average real interest rate of thegeneral loan. 104 司公限有份股心中游旅海东大南海 2020 文全告报度年年During the capitalization period, the exchange difference between the principal and interest of the foreigncurrency special loan shall be capitalized and included in the cost of the assets eligible for capitalization. Theexchange difference between the principal and interest of foreign currency loans other than foreign currencyspecial loans is recorded into the current profit and loss.27. Biological assets: Nil 28. Oil-and-gas assets: Nil29. Right-of-use assets: Nil30. Intangible assets(1) Measurement method, useful lives and impairment testing1) Measurement of intangible assetsThe Company initially measures intangible assets at cost on acquisition:The costs of externally purchased intangible assets include purchase prices, relevant taxes and surcharges andother directly attributable expenditures incurred to prepare the assets for their intended uses.2)Estimate of the useful life of the intangible assets with definite useful lives Item Estimated useful life  Amortization method  BasisLand use right 50 years  Straight-line amortization method Useful life prescribed in the Certificate of Land Use Right3) Determination basis of intangible assets with indefinite useful livesThe useful lives of the intangible assets are analyzed and determined on acquisition.Intangible assets with definite useful lives shall be amortized within the period when the intangible assets generateeconomic benefits for the Company; if the said period cannot be forecast, the intangible assets shall be deemed asthose with indefinite useful lives and shall not be amortized.As at the balance sheet date, the Company had no intangible assets with indefinite useful life.(2) Accounting policy of internal R&D expenditures31. Long-term assets impairmentLong-term equity investment, investment real estate measured by cost model, fixed assets, construction projects inprogress, intangible assets with limited useful life, oil and gas assets and other long-term assets, if there are signs 105 司公限有份股心中游旅海东大南海 2020 文全告报度年年of impairment on the balance sheet date, carry out impairment tests. If the impairment test results show that therecoverable amount of the asset is lower than its book value, the impairment provision shall be made according toits difference and included in the impairment loss. The recoverable amount is the higher between the fair value ofthe asset minus the disposal cost and the present value of the expected future cash flow of the asset. The assetimpairment provision is calculated and confirmed on the basis of a single asset. If it is difficult to estimate therecoverable amount of a single asset, the recoverable amount of the asset group is determined by the asset groupto which the asset belongs. The asset group is the smallest portfolio that can independently generate cash inflows.For the goodwill formed by the merger of the enterprise, the intangible assets with uncertain service life, and theintangible assets that have not reached the usable state, whether or not there are signs of impairment, at least at theend of each year, the impairment test is carried out.The Company conducts a goodwill impairment test, and the carrying value of the goodwill formed by the businessmerger shall be allocated to the relevant asset groups in a reasonable manner from the date of purchase; If it isdifficult to apportion to the relevant asset group, it shall be apportioned to the relevant asset group combination.The relevant asset group or combination of asset groups is the asset group or combination of asset groups that canbenefit from the synergies of the enterprise merger.Goodwill in the relevant asset groups or combination of group assets impairment tests, such as the asset group orcombination of group assets related to goodwill there are signs of impairment, the first does not include thegoodwill of the asset group or combination of group assets impairment test, calculation of recoverable amount,and compared with the related book value, confirm the corresponding impairment loss. And goodwill of the assetgroup or combination of group assets impairment test, comparing its book value and recoverable amount, such asthe recoverable amount is lower than the book value, the amount of impairment loss first deduction allocation tothe asset group or combination of group assets in the book value of the goodwill, according to the asset group orcombination of group assets all assets except goodwill in the book value of the proportion, the book value of theassets in proportion to offset each other. Once the above assets impairment loss is recognized, it will not be carriedback in future accounting periods.32.Long-term deferred expensesLong-term deferred expenses refer to various expenses which have been already incurred but will be borne in thereporting period and in the future with an amortization period of over one year.Amortization methodLong-term deferred expenses are amortized evenly over the beneficial period.Amortization years  Item  Amortization years 106 司公限有份股心中游旅海东大南海 2020 文全告报度年年  4 yearsHotel exterior decoration  4 yearsFire stairs renovation  5 yearsRenovation of guest rooms in Building C, Decoration andrenovation of Building A  5 yearsB Building Renovation Project  5 yearsLandscape reconstruction  5 yearsStaff quarters renovation  5 yearsVilla renovation  5 yearsSwimming pool renovation, Pavement modification projects  5 yearsRoof waterproofing projects33.Contractual liabilitiesAccounting policies effective 1 January 2020The Company lists contract assets or contractual liabilities in the balance sheet according to the relationshipbetween performance obligations and customer payments. The Company’s obligations to transfer goods orprovide services to customers that have received or receivable customer consideration are listed as contractualliabilities. Contract assets and contractual liabilities under the same contract are shown in net terms.34.Employee compensation(1) Short-term compensationDuring the accounting period in which employees provide service to the Company, the short-term remunerationactually incurred is recognized as liabilities and included into the current profit or loss or the assets-related cost.The social insurance premium and the housing provident fund paid by the Company for its employees, togetherwith the labor union expenditures and employee education drew as required are used to calculate and determinethe relevant employee compensation amount based on the prescribed accrual basis and accrual proportion duringthe accounting period in which the employees provide services to the Company.The employee welfare expenses incurred by the Company shall be recorded into the current profit or loss orrelated asset cost according to the actual amount incurred at the time of actual occurrence, in which thenon-monetary benefits shall be measured at fair value.  107 司公限有份股心中游旅海东大南海 2020 文全告报度年年(2) Dismissal welfare1) Defined contribution plansThe Company shall pay basic old-age insurance and unemployment insurance for its employees in accordancewith the relevant regulations of the local government. During the accounting period in which the employeesprovide services to the Company, the amount to be paid shall be calculated on the basis and proportion of the localregulations. In addition, the Company also participated in the enterprise annuity plan / supplementary pensioninsurance fund approved by the relevant state departments. The Company pays to the annuity plan / local socialinsurance institution according to a certain proportion of the total salary of the staff and workers, and thecorresponding expenses are included in the current profit or loss or the related asset cost.2) Defined benefit plansAccording to the formula determined by the law of expected accumulative welfare units, the company willattribute the welfare obligations generated by the established benefit plan to the period during which the employeeprovides services, and record them into the current profit and loss or the cost of related assets.The deficit or surplus resulting from the present value of the defined benefit plan obligations minus the fair valueof the defined benefit plan assets is recognized as the net liability or net asset of a defined benefit plan. If there is asurplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan by thelower of the surplus and the asset ceiling.All defined benefit plan obligations, including those expected to be paid within 12 months of the end of theemployee's annual reporting period for the provision of services, are discounted by the market rate of return onTreasury bonds or high-quality corporate bonds in the active market that matches the duration and currency of thedefined benefit plan obligations on the balance sheet date.The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of thedefined benefit plan are recorded in the current profits and losses or the costs of related assets. The changescaused by the net liabilities or net assets of the defined benefit plan shall be accounted for in other comprehensiveincome, and shall not be transferred back to the profits and losses in the subsequent accounting period. Upon thetermination of the original defined benefit plan, all the parts previously accounted for in other comprehensiveincome shall be carried forward to the undistributed profit within the scope of equity.When establishing the settlement of the benefit plan, the difference between the present value of the obligation ofthe established benefit plan and the settlement price determined on the settlement date shall be used to confirm thesettlement gains or losses.  108 司公限有份股心中游旅海东大南海 2020 文全告报度年年(3) Post-employment benefitsIf the Company provides dismissal benefits to employees, the employee's salary liabilities arising from thedismissal benefits shall be recognized at an early date, and shall be included in the profits and losses of the currentperiod. When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of thelabor relations plan or the reduction proposal; When the company recognizes the costs or expenses associated withthe reorganization involving the payment of dismissal benefits.(4) Accounting method for other long-term employee welfare35. Lease liability36.Estimated liabilitiesWhen the Company involves in proceedings, debt guarantees, onerous contracts and reorganization events, if suchevents may require delivery of assets or rendering of services in the future and the amounts of such events can bereliably measured, such events are recognized as estimated liabilities.Recognition criteria of estimated liabilitiesWhen an obligation relating to a contingency meets all the following conditions at the same time, it is recognizedas an estimated liability:(1) Such obligation is a present obligation of the Company;(2) The performance of this obligation may very probably lead to the flow of economic interests out of theCompany; and(3) The amount of the obligation can be measured reliably.Measurement method of estimated liabilitiesEstimated liabilities of the Company are initially measured as the best estimate of expenses required for theperformance of the relevant present obligations.When determining the best estimates, the Company comprehensively considers the risks, uncertainties, time valueof money, and other factors relating to the contingencies. If the time value of money is significant, the bestestimates will be determined after discount of relevant future cash outflows.The best estimates shall be treated as follows in different circumstances:If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all theoutcomes within this range are equal, the best estimate should be determined at the average amount of upper andlower limits within the range.If there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all theoutcomes within this range are unequal although such a range exists, in case that the contingency involves a singleitem, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more 109 司公限有份股心中游旅海东大南海  2020 文全告报度年年items, the best estimates should be determined according to all the possible outcomes with their relevantprobabilities.When all or part of the expenses necessary for the settlement of estimated liabilities of the Company are expectedto be compensated by a third party, the compensation shall be separately recognized as an asset only when it isvirtually certain to be received. The compensation recognized shall not exceed the book value of the estimatedliabilities.37. Share-based payment38. Other financial instrument as preferred stock and perpetual bond etc.39. RevenueAccounting policies used for revenue recognition and measurementAccounting policies effective 1 January 2020Accounting policies used for revenue recognition and measurementThe Company has fulfilled its performance obligation in the contract, that is, to recognize revenue when thecustomer acquires control of the relevant goods or services. Access to control of related goods or services meansthat it can dominate the use of the goods or services and obtain almost all the economic benefits from them.If the contract contains two or more performance obligations, the Company shall, on the commencement date ofthe contract, apportion the transaction price to each individual performance obligation in accordance with therelative proportion of the individual selling price of the goods or services promised by each individualperformance obligation. The Company measures its income according to the transaction price apportioned to eachindividual performance obligation.Transaction price refers to the amount of consideration that the company is expected to be entitled to receive forthe transfer of goods or services to customers, excluding the amount collected on behalf of third parties and theamount expected to be returned to customers. The Company according to the terms of the contract, combined withits previous practice to determine the transaction price, and in determining the transaction price, consider thevariable consideration, the major financing components existing in the contract, non-cash consideration, payablecustomer consideration and other factors. The Company shall determine the transaction price containing variableconsideration at a amount not exceeding the amount of the cumulative recognized income most likely not to besignificantly reversed when the relevant uncertainty is eliminated. If there is a significant financing component inthe contract, the Company shall determine the transaction price in accordance with the amount payable in cashupon the assumption that the customer acquires control of the goods or services, the difference between thetransaction price and the contract consideration shall be amortized by the real interest rate method during thecontract period.If one of the following conditions is met, the performance obligation shall be fulfilled within a certain period oftime; otherwise, the performance obligation shall be fulfilled at a certain time: 110 司公限有份股心中游旅海东大南海  2020 文全告报度年年  The customer acquires and consumes the economic benefits of the Company's performance at the sametime.  The customer can control the goods under construction during the performance of the Company.  The goods produced in the course of the Company's performance have irreplaceable uses, and theCompany has the right to collect money for the cumulative performance portion completed so far throughout thecontract period.For performance obligations performed within a certain period of time, the Company shall recognize the incomeaccording to the performance schedule within that period, except where the performance schedule cannot bereasonably determined. The Company considers the nature of goods or services, using the output method or inputmethod to determine the progress of performance. When the performance schedule cannot be reasonablydetermined, the cost that has been incurred is expected to be compensated, and the company recognizes theincome according to the cost amount that has been incurred until the performance schedule can be reasonablydetermined.For performance obligations at a certain point, the Company recognizes revenue at the time when the customeracquires control of the relevant goods or services. In determining whether the customer has obtained control overthe goods or services, the Company considers the following signs:  The Company has the right to collect the goods or services, that is, the customer has the current obligationto pay for the goods or services.  The Company has transferred the legal ownership of the goods to the customer, that is, the customer hasthe legal ownership of the goods.  The Company has transferred the goods to customers, that is, customers have physical possession of thegoods.  The Company has transferred the main risk and reward in the ownership of the commodity to the customer,that is, the customer has obtained the main risk and reward in the ownership of the commodity.  The customer has accepted the goods or services, etc.Specific principles for revenue recognitionHotel business revenue sources include guest rooms, catering, merchandise sales, entertainment services and so on.Revenue from guest rooms, catering and entertainment services is recognized at the end of the service, andrevenue from the sale of goods is recognized as revenue when the control of the goods is transferred to thecustomer, that is, when the goods are delivered to the customer and there is no non-performance obligationaffecting the customer's receipt of the goods.Differences in accounting policies for revenue recognition due to the different operating models for the same typeof business : Nil 111 司公限有份股心中游旅海东大南海  2020 文全告报度年年40. Government grants41.Deferred tax assets and deferred tax liabilitiesIncome tax includes current income tax and deferred income tax. In addition to the income tax arising from themerger of the enterprise and the transactions or events directly included in the owner's equity (including othercomprehensive income), the company shall include the current income tax and deferred income tax into the profitsand losses of the current period.Deferred income tax assets and deferred income tax liabilities are recognized on the basis of the difference(temporary difference) between the tax basis of assets and liabilities and their book value.For deductible temporary difference recognition deferred income tax assets, the amount of taxable income that islikely to be obtained in future periods to offset deductible temporary differences is limited. For deductible lossesand tax credits that can be carried forward for subsequent years, the corresponding deferred income tax assets arerecognized to the extent that the future taxable income that is likely to be used to offset deductible losses and taxcredits is obtained.For taxable temporary differences, deferred income tax liabilities are recognized except in special cases.Special cases where deferred income tax assets or deferred income tax liabilities are not recognized include: Initial recognition of goodwill; A transaction or event that is neither a merger of an enterprise nor an event that affects the accounting profitor taxable income (or deductible loss) at the time of its occurrence.The deferred income tax liability is recognized for taxable temporary differences related to the investment ofsubsidiaries, associated enterprises and joint ventures unless the Company can control the time when thetemporary difference is reversed and the temporary difference is likely not to be reversed in the foreseeable future.Deferred income tax assets are recognized for deductible temporary differences related to the investment ofsubsidiaries, associated enterprises and joint ventures when the temporary differences are likely to be reversed inthe foreseeable future and are likely to receive taxable income in the future to offset deductible temporarydifferences.On the balance sheet date, for deferred income tax assets and deferred income tax liabilities, according to theprovisions of the tax law, according to the expected recovery of related assets or liquidation of related liabilitiesduring the applicable tax rate measurement.On the balance sheet date, the company reviews the book value of deferred income tax assets. If the future periodis likely to be unable to obtain sufficient taxable income to offset the benefits of deferred income tax assets, thebook value of deferred income tax assets is written down. Where sufficient taxable income is likely to be obtained,the amount of the write-down is reversed.The current income tax assets and the current income tax liabilities are reported as net offset when they have thestatutory right to settle on a net basis and are intended to settle on a net basis or to obtain assets and liabilities atthe same time.On the balance sheet date, deferred income tax assets and deferred income tax liabilities are shown as net offsetswhen the following conditions are met: 112 司公限有份股心中游旅海东大南海 2020 文全告报度年年 The tax payer has the legal right to settle current income tax assets and current income tax liabilities by net; Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by thesame tax collection and management department on the same tax payer or to different tax payer, but in each futureperiod of transfer of important deferred income tax assets and liabilities, The tax payer intends to net settle currentincome tax assets and liabilities or obtain assets and liabilities at the same time..42.Lease(1) Accounting treatment of operating lease1) The rental fees paid for the asset leased by the Company will be amortized over the entire lease term withoutdeducting rent-free period according to the straight-line method and included in the expenses for the currentperiod. The initial direct costs related to the lease transactions paid by the Company are included in the currentexpenses.When assets lessor bears costs related to the lease borne by the Company, the Company shall deduct the part ofexpenses from the total rents and amortize the rents after deduction over the lease term and include them incurrent expenses.2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over thewhole lease period including rent-free period, and shall be recognized as lease income. Initial direct costs relatingto lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts aresignificant, they shall be capitalized and included in the current income on the same basis as the recognition oflease income.When the Company bears costs related to the lease borne by the leasee, the Company shall deduct the part ofexpenses from the total rents and amortize the rents after deduction over the lease term.(2) Accounting treatment of finance lease1) Financial leased assets: on the start date of leasing, the Company takes the lower of the fair value of the leasedassets and the present value of the minimum lease payment as the book value of the leased assets, takes theminimum lease payment as the book value of the long-term payable, and the difference as the unrecognizedfinancing expenses. The Company adopts the effective interest rate method to amortize the unrecognizedfinancing expenses during the lease period and record them into financial expenses. The initial direct expensesincurred by the Company shall be included in the value of the leased assets.2) Financial leasing assets: the Company shall, at the beginning of the lease, recognize the difference between thesum of the receivable financial leasing payments, the unsecured residual value and its present value as unrealizedfinancing income, which shall be recognized as lease income within the period of receiving the rent in the future.  113 司公限有份股心中游旅海东大南海  2020 文全告报度年年The initial direct expenses incurred by the company in connection with the lease transaction shall be included inthe initial measurement of the finance lease receivable and shall reduce the amount of income recognized duringthe lease term.43. Other significant accounting policies and accounting estimates: Nil44.Changes in significant accounting policies and accounting estimates(1) Changes in significant accounting policies√Applicable □Not applicable Content of and reason for changes in accounting Procedures for examination Note policies  and approval Implementation of Accounting Standards for  Resolution of the Board of Implementation from 1 January 2020 Business Enterprises No. 14 -- Revenue  Directors Implementation of Interpretation of Accounting  Resolution of the Board of Implementation from 1 January 2020 Directors Standards for Business Enterprises No. 13 Implementation of the Interim Provisions on  Resolution of the Board of Implementation from 1 January 2020 Accounting Treatment for Carbon Emission Trading Directors Implement the COVID-19 Outbreak Related Rental  Resolution of the Board of Implementation from 1 January 2020 Concession Accounting Rules Directors1) Implement the Accounting Standards for Business Enterprises No. 14 -- Revenue (revised in 2017) (hereinafter referred to as the'new revenue standards')The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 14 - Revenue in 2017. The revised standardstipulates that the first implementation of the standard should adjust the amount of retained earnings and other related items in thefinancial statements at the beginning of the year according to the cumulative impact, without adjusting the information forcomparable periods.The Company implement the new revenue standards since January 1, 2020. In accordance with the provisions of the Standards, theCompany will only adjust the amount of retained earnings at the beginning of 2020 and other related items in the financial statementsfor the cumulative impact of contracts that have not been completed at the first execution date, not the comparative financialstatements.The main effects of the implementation of the new revenue guidelines on the Company's January 1, 2020 financial statements are asfollows:  Item 31.Dec.2019  Reclassification Remeasurement 1.Jan.2020 786,715.42 -786,715.42Advances from customers  114 司公限有份股心中游旅海东大南海  2020 文全告报度年年  742,184.36 742,184.36Contractual liabilitiesOther current liabilities  44,531.06 44,531.06Compared with the original revenue standards, the impact of the implementation of the new revenue criteria on the relevant items inthe Company's financial statements for the current year is listed below:  Ending balance under the new Balance at the end of the year under  Item Adjustment standards the original standards  -663,862.45  663,862.45Advances from customers  626,285.33  626,285.33Contractual liabilities  37,577.12 37,577.12Other current liabilities2) Implementation of Interpretation of Accounting Standards for Business Enterprises No. 13The 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 anddoes not require retroactive adjustment.① Recognition of the affiliated partyInterpretation No. 13 makes it clear that the following circumstances constitute an affiliated party: a joint venture or joint venturebetween the enterprise and other members of the enterprise group (including the parent company and subsidiaries); Joint ventures ofan enterprise and other joint ventures or associates of an enterprise. In addition, Interpretation No. 13 also makes it clear that onlytwo or more enterprises that are materially affected by one party do not constitute affiliated parties, and adds that joint venturesinclude joint ventures and their subsidiaries, and joint ventures include joint ventures and their subsidiaries.② Definition of businessInterpretation No. 13 improves the three elements of business composition, elaborates the judgment conditions of businesscomposition, and introduces the choice of 'concentration test' to simplify the judgment of whether a portfolio acquired underdifferent 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 beenadjusted. The Company has not implemented Interpretation No. 13, which has had a significant impact on the Company's financialposition and operating results3) Implementation of the Interim Provisions on Accounting Treatment for Carbon Emission TradingThe Ministry of Finance issued the Interim Provisions on Accounting Treatment of Carbon Emission Trading ([2019] No. 22) onDecember 16, 2019, which is applicable to relevant enterprises of key emitters that carry out carbon emission trading business inaccordance with the Interim Measures on the Administration of Carbon Emission Trading and other relevant provisions (hereinafterreferred to as key emitters). The regulation will take effect on January 1, 2020, and key emission enterprises should apply theregulation by adopting the future application method.  115 司公限有份股心中游旅海东大南海  2020 文全告报度年年The Company has implemented this provision since January 1, 2020, and the comparative financial statements are not adjusted. Theimplementation of this provision has not had a significant impact on the Company's financial position and operating results.4) Implement the COVID-19 Outbreak Related Rental Concession Accounting RulesOn June 19, 2020, the Ministry of Finance (MOF) issued the Accounting Regulations on the Treatment of Rent Concessions Relatedto COVID-19 (Finance and Accounting [2020] No. 10), which has came into force on June 19, 2020, allowing enterprises to adjustthe relevant rent concessions that occurred between January 1 2020 to the implementation date of this regulation. According to thisregulation, enterprises can choose to adopt a simplified method for accounting treatment of rent concessions, such as rent remissionand 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. Theimplementation of this provision has not had a significant impact on the Company's financial position and operating results.(2) Changes in accounting estimates□Applicable √Not applicable(3) Adjustment on relevant items of financial statement at begging of the year when implemented the newrevenue standards or new leasing standards since 2020ApplicableWhether to adjust the balance sheet accounts at the beginning of the year√Yes □NoConsolidated Balance Sheet  In RMB Item 31 December 2019 1 January 2020 Adjustment Current assets: Monetary funds  7,422,939.89 7,422,939.89 Balances with clearing companies Loans to other banks and financial institutions Trading financial assets Derivative financial assets Notes receivable Accounts receivable  311,083.92  311,083.92 Receivables financing Advances to suppliers Premium receivable 116 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Reinsurance accounts receivable Reinsurance contract reservesreceivable Other receivables 571,744.52 571,744.52 Including: Interest receivable  Dividend receivable Financial assets purchased underresale agreements Inventory  254,257.19 254,257.19 Contractual assets Assets held for sale Non-current assets maturing withinone year Other current assets 2,574,442.57 2,574,442.57Total current assets 11,134,468.09 11,134,468.09Non-current assets: Disbursement of advances and loans Lending investments Other lending investments Long-term receivables Long-term equity investments Other equity instruments investments Other non-current financial assets Investment properties 7,909,956.87 7,909,956.87 Fixed assets  35,075,195.98 35,075,195.98 Construction in progress  488,522.10 488,522.10 Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 21,392,861.88 21,392,861.88 Development expenditures Goodwill Long-term deferred expenses 11,520,179.33 11,520,179.33 Deferred income tax assets Other non-current assets  117 司公限有份股心中游旅海东大南海 2020 文全告报度年年Total non-current assets 76,386,716.16 76,386,716.16Total assets  87,521,184.25 87,521,184.25Current liabilities: Short-term borrowings Borrowings from central bank Deposit funds Trading financial liabilities Derivative financial liabilities Notes payable Accounts payable  1,250,409.75 1,250,409.75 Advances from customers 786,715.42 786,715.42 Contractual liability Funds from sales of financial assetsunder repurchase agreement Absorption of deposits and interbankdeposits Receiving from vicariously tradedsecurities Receiving from vicariously soldsecurities Employee compensation payable  2,552,996.37 2,552,996.37 Taxes and surcharges payable 307,257.85 307,257.85 Other payable 2,647,515.86 2,647,515.86 Including: Interest payable Dividend payable Handling charges and commissionspayable Reinsurance accounts payable Liabilities classified as held for sale Non-current liabilities maturingwithin one year Other current liabilitiesTotal current liabilities 7,544,895.25 7,544,895.25Non-current liabilities: Reserves for insurance contracts  118 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Long-term borrowings Bonds payable  Including: preferred stock  Perpetual bonds Lease liability Long-term payable Long-term employee compensation payable Accrual liabilities 1,489,685.04 1,489,685.04 Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 1,489,685.04 1,489,685.04 Total liabilities  9,034,580.29 9,034,580.29 Owners' equity: Share capital  364,100,000.00 364,100,000.00 Other equity instruments  Including: preferred stock  Perpetual bonds Capital reserves 54,142,850.01 54,142,850.01 Less: treasury stock Other comprehensive income Special reserves Surplus reserves General risk reserves Undistributed profit -339,756,246.05 -339,756,246.05 Total equity attributable to owners of the 78,486,603.96 78,486,603.96 parent company Minority equity Total owners' equity 78,486,603.96 78,486,603.96 Total liabilities and owners' equity  87,521,184.25 87,521,184.25Explanation on adjustment: nilBalance sheet of parent company In RMB  119 司公限有份股心中游旅海东大南海  2020 文全告报度年年  Item 31 December 2019  1 January 2020  AdjustmentCurrent assets: Monetary funds  7,421,452.59  7,421,452.59 Trading financial assets Derivative financial assets Notes receivable Accounts receivable 311,083.92  311,083.92 Receivables financing Advances to suppliers Other receivables 571,744.52  571,744.52  Including: Interestreceivable  Dividendreceivable Inventory  254,257.19  254,257.19 Contractual assets Assets held for sale Non-current assets maturingwithin one year Other current assets 2,574,442.57  2,574,442.57Total current assets 11,132,980.79  11,132,980.79Non-current assets: Lending investments Other lending investments Long-term receivables Long-term equity 1,000,000.00  1,000,000.00investments Other equity instrumentsinvestments Other non-current financialassets Investment properties 7,909,956.87  7,909,956.87 Fixed assets  35,075,195.98  35,075,195.98 Construction in progress 488,522.10  488,522.10 Productive biological assets 120 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Oil and gas assets Right-of-use assets Intangible assets 21,392,861.88 21,392,861.88 Development expenditures Goodwill Long-term deferred expenses  11,520,179.33 11,520,179.33 Deferred income tax assets Other non-current assetsTotal non-current assets  77,386,716.16 77,386,716.16Total assets 88,519,696.95 88,519,696.95Current liabilities: Short-term borrowings Trading financial liabilities Derivative financial liabilities Notes payable Accounts payable 1,250,409.75 1,250,409.75 Advances from customers 786,715.42 786,715.42 Contractual liability Employee compensation  2,552,996.37 2,552,996.37payable Taxes and surcharges payable  307,210.05 307,210.05 Other payable 3,646,984.56 3,646,984.56 Including: Interest payable  Dividend payable Liabilities classified as heldfor sale Non-current liabilitiesmaturing within one year Other current liabilitiesTotal current liabilities  8,544,316.15 8,544,316.15Non-current liabilities: Long-term borrowings Bonds payable Including: preferred stock  Perpetual bonds  121 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Lease liability Long-term payable Long-term employee compensation payable Accrual liabilities 1,489,685.04 1,489,685.04 Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities  1,489,685.04 1,489,685.04 Total liabilities  10,034,001.19  10,034,001.19 Owners' equity: Share capital 364,100,000.00 364,100,000.00 Other equity instruments  Including: preferred stock  Perpetual bonds Capital reserves 54,142,850.01  54,142,850.01 Less: treasury stock Other comprehensive income Special reserves Surplus reserves Undistributed profit  -339,757,154.25 -339,757,154.25 Total owners' equity 78,485,695.76  78,485,695.76 Total liabilities and owners' equity  88,519,696.95  88,519,696.95Explanation on adjustment: nil(4) Explanation of the retrospective adjustment on comparative data in the prior period while implementednew revenue standards or new leasing standards for the first time since 2020□Applicable  √Not applicable45. OtherVI. Taxation1. Major tax types and tax rates Taxes  Basis for tax assessment  Tax rate 122 司公限有份股心中游旅海东大南海 2020 文全告报度年年 Output VAT is calculated based on taxable sales revenue and service Value added tax revenue calculated in accordance with tax laws and VAT payable or 5%, 6%, 9%, 13% (VAT)  taxable sales revenue shall be the difference after deducting the input VAT deductible in the same period Urban maintenance and Levied based on VAT payable 7% construction tax Enterprise income Levied based on the taxable income 25%, 20% tax Education surtax Levied based on VAT payable 3% Local education Levied based on VAT payable 2% surtax Housing property Remaining value after deducting 30% from the original value of the 1.2%, 12% tax house (including the occupied land price), and rent revenue Land use tax  Land area 18 yuan/ ㎡Disclose reasons for different taxpaying body: Nil2. Tax preference1) According to Announcement of the Ministry of Finance of Taxation Administration No. 8, 2020'Announcement of Tax Policies on Supporting the Prevention and Control of COVID-19 Infected PneumoniaEpidemic', from January 1, 2020, taxpayers will be exempted from value-added tax on income derived from theprovision of public transportation, living services, and the express delivery service of essential living materials forresidents.2) According to the Notice on Implementing the Preferential Tax Reduction Policy for Small and Micro-sizedEnterprises (Caishui [2019] No. 13) issued by the Ministry of Finance and the State Administration of Taxation,small-scale taxpayers of value-added tax can reduce resource tax, urban maintenance and construction tax, realestate tax, urban land use tax, etc. within 50% of the tax rate. The company's real estate tax and urban land use taxare levied by half. For small and low-profit enterprises whose annual taxable income does not exceed 1 millionyuan, a 25% reduction will be included in the taxable income, and the corporate income tax will be paid at a taxrate of 20%, the subsidiary of the Company, Wengao Tourism, is a small and low-profit enterprise, enjoying thepreferential income tax policy of reducing the taxable income amount by 25% and paying the enterprise incometax at the tax rate of 20%.  123  司公限有份股心中游旅海东大南海  2020 文全告报度年年 3. Other: nil VII. Notes to the items of consolidate financial statements 1. Monetary funds  In RMB  Item  Ending balance  Beginning balance Cash on hand  179,111.10  302,077.12 Bank deposits  2,745,348.65  7,120,862.77 Total  2,924,459.75  7,422,939.89 Other explanation: nil 2. Trading securities: nil 3. Derivative financial assets: nil 4. Note receivable: nil 5. Accounts receivable (1) Disclosure of account receivables by category  In RMB  Ending balance  Beginning balance  Provision for bad Book balance  Provision for bad debt Book balance Category  Book  debt  Book  Proportio Provisi value Propo Amou Provisio  value Amount Amount  Amount n on ratio rtion nt n ratioIncluding:Accountsreceivable with  100.0 109,7provision for bad 592,008.33 100.00% 162,705.01 27.48% 429,303.32 420,849.75 26.08% 311,083.92 0% 65.83debts based onportfoliosIncluding:  100.0 109,7Total  592,008.33 100.00% 162,705.01 27.48% 429,303.32 420,849.75 26.08% 311,083.92 0% 65.83 Provision for bad debts based on single item: nil Provision for bad debt based on portfolios: 162,705.01 yuan  In RMB Ending balance Name  Book balance  Provision for bad debt  Provision ratio  124 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Within 1 year  479,847.53 50,544.21  10.53% 1-2 years 19,092.00 19,092.00  100.00% 2-3 years  2,259.00 2,259.00  100.00% 3-4 years  566.00 566.00 100.00% 4-5 years  785.00 785.00 100.00% Over 5 years 89,458.80 89,458.80  100.00% Total  592,008.33 162,705.01 --A description of the basis for determining the portfolio: nilEstimated credit loss by portfolio: aging portfolio accrual itemsProvision for bad debt by portfolio: nilIf the bad debt provision of an account receivable is withdrawn according to the general model of expected credit loss, please refer tothe disclosure method of other receivables to disclose the relevant information of bad debt provision:□ Applicable √ Not applicableReleased by account age  In RMB Account age  Book balance Within 1 year (inclusive) 479,847.53 1-2 years  19,092.00 2-3 years 2,259.00 Over 3 years 90,809.80 3-4 years 566.00 4-5 years 785.00 Over 5 years 89,458.80 Total 592,008.33(2) Provision, reversal or recovery of provision for bad debts in the periodProvision for bad debt in the period  In RMB  Amount changed in the period Beginning Category  Reversal or Ending balance balance Accrual Charge off  Other  switch-back Account  109,765.83  52,939.18  162,705.01 receivable Total 109,765.83  52,939.18  162,705.01Including the major amount that reversal or switch-back in the period: nil  125 司公限有份股心中游旅海东大南海  2020 文全告报度年年(3) Account receivable actually charge off in the period: nil(4) Top five accounts receivable in terms of ending balance collected by the debtor  In RMB Proportion in the total Ending balance of  Ending balance of the Name of entity  accounts receivable at account receivable  bad debt provision period-end Beijing Tongcheng Huading International Travel  168,981.46 28.54%  17,793.75 Service Co., Ltd. Suzhou Branch Shanghai Hecheng International Travel Service  125,387.75 21.18%  13,203.33 Co., Ltd. Tianjin Watermelon Tourism Limited Liability  123,624.74 20.88%  13,017.69 Company Guangzhou Design Institute  38,980.00 6.58%  38,980.00 Nanjing Tuniu International Travel Service Co.  35,650.00 6.02% 3,753.95 Ltd Total 492,623.95 83.20%(5) Account receivable that are terminated due to financial assets transfer: nil(6) Assets and liabilities resulted by account receivable transfer and continues involvement: nil6. Receivable financing: nilVariation and fair value changes on receivable financing in the period:□ Applicable √ Not applicableIf the provision for impairment of receivable financing is withdrawn according to the general model of expected credit loss, pleaserefer to the disclosure method of other receivables to disclose the relevant information of impairment provision:□ Applicable √ Not applicableOther explanation: nil7. Advance payment: nil8. Other receivable  In RMB Item  Ending balance Beginning balance Other receivable  432,560.55  571,744.52 Total  432,560.55  571,744.52 126 司公限有份股心中游旅海东大南海  2020 文全告报度年年(1) Interest receivable: Nil(2) Dividend receivable: Nil(3) Other account receivables1) Other account receivable disclosed by nature  In RMB Nature Ending book balance Opening book balance Utility bills 189,577.27  76,534.42 Margin  156,500.00 Social insurance and housing provident  59,657.19  61,826.29 funds Reserve fund 56,812.68  394,313.63 Elevator installation fee  10,000.00 Deposit  600.00 600.00 Litigation fee  68,562.00 Total  473,147.14  601,836.342) Provision for bad debt:  In RMB First stage  Second stage Third stage Expected credit loss for  Expected credit Expected credit loss for Provision for bad debt  the whole duration  Total  loss in next 12 the whole duration (no  (credit impairment has  months credit impairment)  occurred) Balance as on 1 Jan. 2020  30,091.82  30,091.82 Balance as on January 1. ——  ——  —— —— 2020 in current period Provision in current period 17,820.25 17,820.25 Reverse in current period 7,325.48  7,325.48 Balance as on 31 Dec. 2020  22,766.34  17,820.25 40,586.59Change of the book balance for major amount changed in loss provision□ Applicable √ Not applicableReleased by account age  In RMB  127 司公限有份股心中游旅海东大南海 2020 文全告报度年年 Account age Book balance Within 1 year (inclusive) 444,074.24 1 to 2 years 26,836.90 Over 3 years 2,236.00 Over 5 years 2,236.00 Total  473,147.143) Provision, reversal or recovery of provision for bad debts in the periodProvision for bad debt in the period In RMB Amount changed in the period Beginning Category Reversal or  Ending balance balance  Accrual  Charge off Other switch-back Other receivable 30,091.82 17,820.25  7,325.48  40,586.59 Total  30,091.82 17,820.25  7,325.48  40,586.59Including major amount reversal or switch-back in the period: nil4) Other receivables actually charge off in the period: nil5) Top five other accounts receivable in terms of ending balance collected by the debtor In RMB  Proportion in total  Ending balance of  Ending  amount of other Name of entity  Nature  Account age  the bad debt  balance  accounts receivable at  provision period-end Labor Security Security  156,500.00  33.08%  7,825.00 Supervision Within 1 year deposits Detachment of Sanya  Within 1 year and  79,687.40  16.84%  3,984.37 Health center Utility bills  1 year to 2 years  56,329.00  11.91%  2,816.45 Hut stores  Utility bills  Within 1 year Individual Social  47,327.19  10.00%  2,366.36 Utility bills  Within 1 year Insurance  25,000.00 5.28%  1,250.00 Bright moon pavilion Utility bills  Within 1 year  128 司公限有份股心中游旅海东大南海  2020 文全告报度年年 music restaurant Total --  364,843.59  --  77.11% 18,242.186) Account receivables related to government subsidies: nil7) Other receivable for termination of confirmation due to the transfer of financial assets: nil8) The amount of assets and liabilities that are transferred other receivable and continued to be involved: nil9. InventoriesWhether the new revenue standards been implementedNo(1) Classification of inventories  In RMB Ending balance Beginning balance  Provision for inventory  Provision for inventory depreciation or  depreciation or Item  Book Book balance  provision for  Book value provision for  Book value balance  impairment of contract  impairment of contract  performance costs  performance costs Raw  551,974.20 310,260.94 241,713.26 843,199.89 615,322.99 227,876.90 materials Commodi 1,754,063.48 11,102.41 1,742,961.07 22,771.38 11,102.41 11,668.97 ty stocks Fuel 25,254.50  25,254.50 14,711.32  14,711.32 Total  2,331,292.18 321,363.35 2,009,928.83 880,682.59 626,425.40 254,257.19(2) Provision for inventory depreciation or provision for impairment of contract performance costs  In RMB Beginning  Current increase Current decrease  Item Ending balance balance Accrual Other  Reversal or write-off  Other Raw materials 615,322.99 305,062.05 310,260.94 Commodity 11,102.41 11,102.41 stocks Total 626,425.40 305,062.05 321,363.35  129 司公限有份股心中游旅海东大南海  2020 文全告报度年年(3) Explanation on capitalization of borrowing costs at ending balance of inventory: nil(4) Explanation on amortized amount of contract performance cost in current period: nil10. Contract assets: nil11. Assets held for sale: nil12. Non-current assets maturing within one year: nil13. Other current assets In RMB Item Ending balance Beginning balance 2,219,513.16 808,143.62 Input tax to be deducted 1,702,702.80 1,702,702.80 Prepaid enterprise income tax 52,719.06 56,413.98 Prepaid for newspaper, insurance, etc.  2,517.22 4,778.06 Prepaid individual income tax Other 2,404.11 Total  3,977,452.24 2,574,442.57Other explanation: nil14. Creditor’s investment: nil15. Other creditors investment: nil16. Long-term account receivable: nil17. Long-term equity investment: nil18. Investment in other equity instrument: nil19. Other non-current financial assets: nil20. Investment properties(1) Investment properties measured at cost√ Applicable □ Not applicable In RMB  130 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Buildings and Construction in Item  Land use rights  Total constructions  processI. Original book value 1.Beginning balance 18,856,504.44 5,662,740.59 24,519,245.03 2.Current increase (1) Purchase (2) Transfer from inventories/fixedassets/construction in progress (3) Increase from businesscombinations 3.Current decrease (1) Disposal (2) Other transfer-out 4.Ending balance 18,856,504.44 5,662,740.59 24,519,245.03II. Accumulated depreciation andaccumulated amortization 1.Beginning balance 11,025,767.10 2,276,066.45 13,301,833.55 2.Current increase 418,183.56 56,340.00  474,523.56 (1) Provision or amortization  418,183.56 56,340.00  474,523.56 3.Current decrease (1) Disposal (2) Other transfer-out 4.Ending balance 11,443,950.66 2,332,406.45 13,776,357.11III. Provision for impairment 1.Beginning balance 1,404,400.47 1,903,054.14 3,307,454.61 2.Current increase (1) Accrual 3. Current decrease (1) Disposal (2) Other transfer-out  131  司公限有份股心中游旅海东大南海  2020 文全告报度年年  4.Ending balance  1,404,400.47  1,903,054.14  3,307,454.61 IV. Book value  1.Ending book value 6,008,153.31  1,427,280.00  7,435,433.31  2.Opening book value  6,426,336.87  1,483,620.00  7,909,956.87 (2) Investment real estate measured by fair value □ Applicable √ Not applicable (3) Investment real estate without property certification held: nil 21. Fixed assets  In RMB Item  Ending balance Beginning balance Fixed assets  34,694,023.75  35,075,195.98 Total 34,694,023.75  35,075,195.98 (1) Fixed assets  In RMB Buildings and Machinery Electronic  Other Item Total Vehicles constructions equipment equipment equipmentI. Original book value ： 1.Beginning balance 136,789,501.82 9,779,644.54 2,130,663.57 2,099,553.24 3,125,353.67 153,924,716.84 2.Current increase  665,610.76 746,600.42 1,732,559.52 3,144,770.70 (1) Purchase  665,610.76 606,952.10 1,732,559.52 3,005,122.38 (2) Transfer from 139,648.32 139,648.32construction in progress (3) Increase from businesscombinations 3.Current decrease  198,197.00 388,598.00 1,022,634.59 787,873.84 2,397,303.43 (1) Disposal or scrap  198,197.00 388,598.00 1,022,634.59 787,873.84 2,397,303.43 4.Ending balance 136,789,501.82 10,247,058.3 1,742,065.57 1,823,519.07 4,070,039.35 154,672,184.11  132  司公限有份股心中游旅海东大南海  2020 文全告报度年年  0II. Accumulated amortization 1.Beginning balance  74,674,779.38 7,369,670.18 1,498,327.87 1,405,100.97 1,263,700.50 86,211,578.90 2.Current increase 2,175,434.88 310,715.15 124,588.79 243,729.86  514,716.78 3,369,185.46 (1) Accrual 2,175,434.88 310,715.15 124,588.79 243,729.86  514,716.78 3,369,185.46 3.Current decrease 189,782.11 369,168.48 948,026.11  733,569.26 2,240,545.96 (1) Disposal or scrap  189,782.11 369,168.48 948,026.11  733,569.26 2,240,545.96 4.Ending balance 76,850,214.26 7,490,603.22 1,253,748.18 700,804.72 1,044,848.02III. Provision for impairment 1.Beginning balance  31,072,788.17 1,565,153.79 32,637,941.96 2.Current increase (1) Accrual 3.Current decrease (1) Disposal or scrap 4.Ending balance 31,072,788.17 1,565,153.79 32,637,941.96IV. Book value 1.Ending book value  28,866,499.39 1,191,301.29 488,317.39 1,122,714.35 3,025,191.33 34,694,023.75 2.Opening book value  31,041,934.27 844,820.57 632,335.70 694,452.27 1,861,653.17 35,075,195.98 (2) Temporarily idle fixed assets: nil (3) Fixed assets acquired by financing lease: nil (4) Fixed assets acquired by operating lease: nil (5) Certificate of title un-completed: nil Other description: Note: the Company name right number three huts and character (2013) no. 07799, the villa - three huts and character (2013) no. 07801, the villa - three huts and character (2013) no. 07798, the villa - three huts and character (2013) no. 07796, the villa - three huts and no. 07800 (2013) word, total area of 1446.00 square meters of housing, are the mortgage (mortgage contract no.: Xingyinqiong SYYYB (mortgage) 2020 No. 001) of the Company borrowed from Industrial Bank co., LTD. Haikou branch (contract number: xing silver Joan SYYYB (flow) borrow words 2020 no. 001) . See Note V (18) for details.  133  司公限有份股心中游旅海东大南海  2020 文全告报度年年 (6) Disposal of fixed assets: nil 22. Construction in process  In RMB Item  Ending balance  Beginning balance  Construction in process 488,522.10  Total 488,522.10 (1) Construction in process  In RMB  Ending balance Beginning balance Item Book Impairmen  Impairmen Book value Book balance Book value balance t provision  t provision Staff dormitory renovation project 348,873.78 348,873.78 Central air-conditioning system and hot water 139,648.32 139,648.32 system comprehensive renovation Total  488,522.10 488,522.10 (2) Change of important projects under construction in the period  In RMB  Amou Proporti  Accu Includi  Capital  nt on of  mulate ng: En  ization  transfe accumu  d capitali Curre  Other din Proje rate of  Beginn rred lative capital zation Source  nt  amount  g ct  theProject name Budget  ing  into  project ization amount  s of increa  reduction in bal progr interest  balance  fixed  investm  amoun of the funds  se the period anc  ess in the  assets  ents in  t of interest e period  in the the  interes in the  (%)  period  budget  t periodB building  Financ 14,89 ialguest room  12,000,00  14,894,643.  100.00 100.0 4,643.  institut 0.00 97  % 0%renovation  97  ion  loansprojectLandscape  1,514,  1,514,343.6 100.0greening  343.6 Other  6 0% 6projectStaff 348,87 308,8  100.0 657,722.26  Other  3.78 48.48  0%dormitory  134  司公限有份股心中游旅海东大南海 2020 文全告报度年年renovationprojectCentralair-conditioning system  139,64  139,64  100.0and hot water Other  8.32 8.32  0%systemcomprehensive renovation 16,71 12,000,00 488,52  139,64 17,066,709.Total 7,836.  -- --  -- 0.00 2.10 8.32 89 11 (3) Provision for impairment of construction in progress in the period: nil (4) Engineering material: nil 23. Productive biological asset (1) Measured by cost □ Applicable √ Not applicable (2) Measured by fair value □ Applicable √ Not applicable 24. Oil and gas assets □ Applicable √ Not applicable 25. Right-of-use assets: nil 26. Intangible assets (1) Intangible assets  In RMB  Non-patents Item Land use rights Patent right  Total  technology  I. Original book value  135 司公限有份股心中游旅海东大南海 2020 文全告报度年年 1.Beginning balance 81,653,137.15  81,653,137.15 2.Current increase  (1) Purchase  (2) Internal research and development  (3) Increase from business combinations 3.Current decrease  (1) Disposal 4.Ending balance 81,653,137.15  81,653,137.15 II. Accumulated amortization 1.Beginning balance 32,819,438.43  32,819,438.43 2.Current increase 812,387.16  812,387.16  (1) Accrual  812,387.16  812,387.16 3.Current decrease  (1) Disposal 4.Ending balance 33,631,825.59  33,631,825.59 III. Provision for impairment 1.Beginning balance 27,440,836.84  27,440,836.84 2.Current increase  (1) Accrual 3.Current decrease  (1) Disposal 4.Ending balance 27,440,836.84  27,440,836.84 IV. Book value 1.Ending book value 20,580,474.72  20,580,474.72 2.Opening book value 21,392,861.88  21,392,861.88Ratio of the intangible assets from internal R&D in balance of intangible assets at period-end 136 司公限有份股心中游旅海东大南海 2020 文全告报度年年(2) Land use rights without certificate of ownership: nil27. Development expenditure: nil28. Goodwill: nil29. Long-term deferred expenses In RMB  Beginning  Amortization in Amount of other Item  Current increase  Ending balance balance  the period  decreases B building guest room  14,894,643.97 744,732.21  14,149,911.76 renovation project Building A Fire Stair 28,559.56  17,135.64  11,423.92 Renovation Project Swimming pool 164,977.48  59,991.80  104,985.68 reconstruction Reconstruction of guest 528,951.38  192,345.93  336,605.45 rooms in Building C 963,555.84  350,383.87  613,171.97 Villa reconstruction Building A renovation  9,028,874.38  1,868,043.00  7,160,831.38 project Pavement modification 435,168.94  90,034.92  345,134.02 project Roof waterproofing 370,091.75  74,018.40  296,073.35 project Staff dormitory 657,722.26 131,544.48  526,177.78 renovation project Landscape greening  1,514,343.66 100,956.24  1,413,387.42 project Total 11,520,179.33 17,066,709.89  3,629,186.49 24,957,702.73Other explanation: nil 137 司公限有份股心中游旅海东大南海  2020 文全告报度年年30. Deferred income tax assets and deferred income tax liabilities: nil31. Other non-current assets: nil32. Short-term loans: nil33. Trading financial liability: nil34. Derivative financial liability: nil35. Notes payable: nil36. Accounts payable(1) Presentation of accounts payable In RMB Item Ending balance Beginning balance Payment for purchase  586,111.30  947,770.85 Accounts payable provisionally  72,669.88  191,232.86 estimated Service charges  134,562.18  84,838.93 Payment for projects  14,274.10  14,274.10 Elevator maintenance fee 7,200.00 Advertisement fees Consignment sales  1,093.00  1,093.00 Other 4,000.01 Total  808,710.46  1,250,409.75(2) Significant accounts payable with aging over one year In RMB Reasons for repayment failure or Item Ending balance carry-forward Estimated accounts payable 72,669.88 Unsettlement Total 72,669.88 --Other explanation: nil  138 司公限有份股心中游旅海东大南海  2020 文全告报度年年37. Advance payment(1) Presentation of advances payment  In RMB Item  Ending balance  Beginning balance Room and meal fees 786,715.42 Total 786,715.42(2) Significant advances payment with aging over one year38. Contractual liability  In RMB Item  Ending balance  Beginning balance Room and meal fees 626,285.33 Total  626,285.33Amount and reasons for significant changes in book value during the reporting period: Nil39. Employee compensation payable(1) Presentation of employee compensation payable  In RMB Increase in this Item Beginning balance Decrease in this period Ending balance period I. Short-term compensation  2,552,996.37 10,952,839.70 10,909,974.67 2,595,861.40 II. Post-employment benefits - 126,564.80  126,564.80 defined contribution plans Total  2,552,996.37 11,079,404.50 11,036,539.47 2,595,861.40(2) Presentation of short-term compensation  In RMB  Beginning  Item  Increase in this period Decrease in this period Ending balance  balance 1. Salaries, bonuses,  1,434,454.59 8,783,426.82  8,839,871.70 1,378,009.71 allowances and subsidies 2. Employee welfare  1,299,230.95  1,299,230.95 expenses  139 司公限有份股心中游旅海东大南海  2020 文全告报度年年 3. Social insurance premiums  390,845.15 390,845.15 Including: medical insurance 389,929.90 389,929.90 premiums Work-related injury  915.25 915.25 insurance premiums 4. Housing provident funds 2,254.00 191,534.00 193,788.00 5. Labor union expenditures and employee education 1,116,287.78 287,802.78 186,238.87  1,217,851.69 funds Total  2,552,996.37 10,952,839.70  10,909,974.67  2,595,861.40(3) Presentation of defined contribution plans  In RMB Item  Beginning balance Increase in this period Decrease in this period  Ending balance 1.Basic endowment 122,215.46 122,215.46 insurance premiums 2.Unemployment  4,349.34 4,349.34 insurance premiums Total  126,564.80 126,564.80Other explanation: nil40. Taxes payable  In RMB Item  Ending balance  Beginning balance Value added tax (VAT)  146,530.24  135,982.62 Corporate income tax 47.80 Individual income tax  37,465.26 18,333.52 Urban maintenance and construction tax 738.33 902.73 Housing property tax  120,439.32 97,050.89 Land use tax  54,295.47 54,295.47 Stamp tax  6,896.96 Educational surtax  316.43 386.88 Local education surtax  210.95 257.94 Total  366,892.96  307,257.85Other explanation: nil  140 司公限有份股心中游旅海东大南海  2020 文全告报度年年41.Other payable  In RMB Item Ending balance Beginning balance Other payable  6,167,763.36 2,647,515.86 Total 6,167,763.36 2,647,515.86(1) Interest payable: nil(2) Dividend payable: nil(3) Other payable1) Presentation of other payable by nature  In RMB Item Ending balance Beginning balance  4,605,450.06 512,474.00 Engineering and quality retention money  1,013,939.39 1,219,075.78 Staff dormitory rental fee, etc  295,089.81 764,598.49 Security deposits  142,856.24 41,160.31 On behalf of collection or payment  87,820.00 86,520.00 Employee deposits  22,607.86 23,687.28 Expected telephone bill Total 6,167,763.36 2,647,515.862) Other significant payable with aging over one year: nil42. Liability held for sale: nil43. Non-current liability due within one year  In RMB  Item Ending balance  Beginning balance  6,598,477.52 Long-term borrowing due within one year - principal Long-term borrowing due within one year – accrual  23,020.42 interest payable Total 6,621,497.94  141 司公限有份股心中游旅海东大南海  2020 文全告报度年年Other explanation: nil44. Other current liability  In RMB Item  Ending balance Beginning balance  37,577.12 Tax to be exported Total  37,577.12Changes in short-term bonds payable: nil45. Long-term loans(1) Long-term loan classification  In RMB Item  Ending balance Beginning balance Pledge loan 9,893,757.94 Total  9,893,757.94Explanation of long-term loan classification:Note: The mortgage loan of 9,893,757.94 yuan is the loan of the Company from the Haikou Branch of Industrial Bank Co., Ltd., theterm of which is from April 23, 2020 to April 9, 2023, and the mortgage guarantee is made on the property with the total area of1,446.00 square meters under the Company's name and the assessed value of 39,263,245.00 yuan (see Note 5.7 for details). Theending balance of the mortgage loan was 16,492,235.46 yuan, of which 6,598,477.52 yuan will be repaid in 2021 and reclassified asa non-current liability due within one year.Other instructions, including interest rate range: nil46. Bond payable: nil47. Lease liability: nil48. Long-term account payable: nil49. Long-term employee payable: nil50. Accrual liabilities  In RMB Item Ending balance Beginning balance  Reasons Provisions for arrears of electricity tariffs 1,489,685.04  1,489,685.04 Make provisions for electricity bills Total  1,489,685.04  1,489,685.04 -- 142 司公限有份股心中游旅海东大南海 2020 文全告报度年年Other description: including important assumptions and estimation for the major accrual liability:Note: See Note 10.2.1 for details.51. Deferred income: nil52. Other non-current liability  In RMB Item  Ending balance  Beginning balance 1,914,592.66 Projects paid over one year Total  1,914,592.66Other explanation: nil53. Share capital  In RMB  Changes in the period ('+' for increase and '-' for decrease)  Share  Conversion Beginning balance Issuance of  Ending balance  donati  of reserves  Others Sub-total new shares on into share Total shares 364,100,000.00  364,100,000.00Other explanation: nil54. Other equity instrument: nil55. Capital reserves  In RMB Item Beginning balance  Increase in this period  Decrease in this period  Ending balance Capital premium 33,336,215.58 33,336,215.58 (share premium) 20,806,634.43 20,806,634.43 Other capital reserves Total  54,142,850.01 54,142,850.01Other description: including changes in the period and reasons: nil  143 司公限有份股心中游旅海东大南海  2020 文全告报度年年56. Treasury stock: nil57. Other consolidated income: nil58. Reasonable reserve: nil59. Surplus reserves: nil60. Undistributed profit  In RMB  Item  The period Last period Undistributed profit as at the end of the previous period before adjustment -339,756,246.05 -340,454,153.72 Total adjustment to undistributed profit as at the beginning of the period ('+' for -58,813.79 increase and '-' for decrease) Undistributed profit as at the beginning of the period after adjustment -339,756,246.05 -340,512,967.51 Plus: net profit attributable to owners of the parent company in the current period -11,567,888.97  756,721.46 Undistributed profit as at the end of the period  -351,324,135.02 -339,756,246.05Details about adjusting the retained profits at the beginning of the period:1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retainedprofits at the beginning of the period amounting to 0 Yuan.2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan61. Operating revenue and operating cost  In RMB  Current period Last period Item  Income Cost  Income Cost Primary business 13,393,894.12  12,293,939.28  22,782,376.82 10,608,243.38 Other business 2,118,095.25  474,523.56 3,153,028.62 474,523.56 Total  15,511,989.37  12,768,462.84  25,935,405.44 11,082,766.94Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative√Yes □No  In RMB Item  2020  2019  Note Operating income  15,511,989.37 25,935,405.44 Catering and  144 司公限有份股心中游旅海东大南海  2020 文全告报度年年  Accommodation Industry Operating income deduction items 2,118,095.25  3,153,028.62 Rental income Including:  Catering and Main business income 13,393,894.12  22,782,376.82  accommodation income Other business 2,118,095.25  3,153,028.62 Rental income Subtotal of business income not related to 2,118,095.25  3,153,028.62 Rental income main business Subtotal of income without commercial  0.00 0.00 N/A substance  Catering and Amount of operating income after deduction  13,393,894.12  22,782,376.82  accommodation incomeRevenue:  In RMB Contract type 1# Division 2# Division  Total Product type 15,511,989.37  15,511,989.37 Including: Room income 11,721,046.96  11,721,046.96 Catering and  1,672,847.16  1,672,847.16 entertainment income Other income 2,118,095.25  2,118,095.25 Including: Hainan area 15,511,989.37  15,511,989.37 Including: Including: Including: Including: Including: Total  15,511,989.37  15,511,989.37Information relating to performance obligation: nilInformation relating to the transaction price assigned to the remaining performance obligation:The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not beenfulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue insubsequent years. 145 司公限有份股心中游旅海东大南海  2020 文全告报度年年Other explanation: nil62.Taxes and surcharges In RMB Item Current period  Last period Urban construction tax 8,408.98 37,357.47 Educational surtax 3,500.57 16,010.36 Housing property tax  311,241.75 431,174.84 Land use tax  162,886.41 217,181.88 Vehicle and vessel use tax  4,219.00 5,220.00 Stamp tax  6,861.58 4,905.10 Local education surtax 2,333.70 10,673.55 Total  499,451.99 722,523.20Other explanation: nil63. Selling expenses In RMB Item Current period  Last period 2,808,385.87  2,987,665.20 Employee salaries  642,976.97 520,034.90 Depreciation  320,143.00 387,737.00 Employee benefits  179,321.67 270,673.81 Repair charges  163,017.79 525,922.93 Social insurance premiums  138,757.23 151,981.73 Utility bills  104,355.92 90,344.35 Amortization of low cost consumables Labor union expenditures and employee  98,293.62 109,163.37 education funds  88,404.28 348,124.41 Operating supplies  85,834.41 40,861.91 Fuel fees  83,877.78 43,131.83 Promotion fees  59,940.00 57,780.00 Housing provident funds  146 司公限有份股心中游旅海东大南海  2020 文全告报度年年 80,414.39 73,053.03 Other expenses Total  4,853,722.93  5,606,474.47Other explanation: nil64. Administrative expenses  In RMB Item Current period  Last period  5,429,878.64  5,540,972.55 Salaries and welfare 812,387.16 812,387.16 Amortization of intangible assets 518,279.26 368,552.41 Entertainment expenses 400,000.00 452,000.00 Agency fee 303,927.32 325,025.00 Depreciation 227,119.89 606,896.19 Social labor insurance premium 223,900.00 239,590.00 Announcing fee 194,199.16 279,944.13 Travel expenses 142,208.97 127,251.56 Repair charge 122,884.81 Legal fees 98,257.00 79,602.00 Housing provident funds 83,000.00 282,674.25 Attorney fee Funds for labor union and staff 143,177.14 158,976.29 education 54,570.96 19,695.50 Promotion fees 47,748.00 127,370.00 Listing fee 224,888.25 351,475.82 Other expenses Total  9,026,426.56  9,772,412.86Other explanation: nil65. R&D expenses: nil66. Financial expenses  In RMB 147 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Item Current period Last period Interest expenses 551,742.76 Less: interest income  155,036.56  210,556.05 Profit or loss on exchange Handling charges  38,743.26  34,795.67 Total  435,449.46  -175,760.38Other explanation: nil67. Other income In RMB  Sources of other income Current period Last period 639,617.24 Direct reduction of VAT 152,593.62  200,000.00 Government grants  25,614.48  92,643.89 Deducted input tax Total  817,825.34  292,643.8968. Investment income: nil69. Net open hedging benefits: nil70. Gains from fair value changes: nil71. Credit impairment loss In RMB Item Current period Last period Other receivable bad debt loss  -10,494.77 -7,082.88 Account receivable bad debt loss -52,939.18 2,050.62 Total  -63,433.95 -5,032.26Other explanation: nil72. Asset impairment loss: nil73. Income from assets disposal: nil74.Non-operating revenue In RMB  148 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Amount included in the current Item Current period  Last period non-recurring profit or loss Compensation  286,200.36  572,245.29  286,200.36 Debt write-off income  958,979.88 Gain on the destruction of non-current assets  15,238.09 Other 227.50 8,792.66  227.50 Total 286,427.86 1,555,255.92Government subsidies reckoned into current gains/losses: nil75.Non-operating expenses In RMB  Amount included in the current Item Current period Last period non-recurring profit or loss Termination indemnity and compensation 387,680.01  387,680.01 Loss of non-current assets damaged and scrapped 148,457.47 13,086.64 148,457.47 Overdue fine  1,046.33 Total 537,183.81 13,086.64Other explanation: nil76. Income tax expenses: nil77. Other comprehensive incomeSee Note78. Notes to items of statement of cash flows(1) Cash received from other operating activities In RMB Item  Current period  Last period Lease, water, electrical and gas fees 360,916.50  1,360,510.37 collected Interest income  155,036.56  208,151.94 Deposits  200,000.00 Loan repayment by employees  130,970.00 149 司公限有份股心中游旅海东大南海  2020 文全告报度年年 Support fund for market development of 150,000.00 200,000.00 inbound tourism Others  288,793.98 140,726.42 Total 954,747.04  2,240,358.73Explanation of cash received from other operating activities: nil(2) Cash paid for other operating activities In RMB Item Current period  Last period Social intercourse fees 228,639.04 305,994.41 Intermediary service charges  400,000.00 452,000.00 Announcement fee and related fee  72,000.00 179,590.00 Expenses for business trips  109,137.68 251,447.13 Attorney fee  30,000.00 205,140.00 Posts costs  17,705.99 35,650.53 Repair charges 260,141.62 351,092.37 Promotion fee  75,088.14 48,977.00 Costs of listing on the Shenzhen Stock 47,748.00 80,000.00 Exchange Fuel, water, electricity and gas charges 138,757.23 232,582.93 Office expenses 11,087.05 16,380.15 Financial expenses  38,743.26 34,795.67 Property insurance premiums  42,072.87 40,282.31 Membership expenses of the board of 30,010.00 directors and the board of supervisors Employee loan  291,688.22 403,763.71 Deposits  156,500.00 160,000.00 Other expenses 382,414.41 464,884.96 Total  2,301,723.51  3,292,591.17Explanation of cash paid for other operating activities: nil  150 司公限有份股心中游旅海东大南海  2020 文全告报度年年(3) Cash received from other investment activities: nil(4) Cash paid for other investing activities: nil(5) Cash received from other financing activities: nil(6) Cash paid for other financing activities: nil79. Supplementary information to the statement of cash flows(1) Supplementary information to the statement of cash flows In RMB  Supplementary information  Current period Last period -- -- 1. Net profit adjusted to cash flows from operating activities -11,567,888.97  756,721.46 Net profit Plus: Provision for impairment of assets  63,433.95 5,032.26 Depreciation of fixed assets, depreciation and depletion of oil and gas assets and  3,843,709.02 3,496,851.59 depreciation of productive biological assets Depreciation of right-of-use assets 812,387.16  812,387.16 Amortization of intangible assets  3,603,947.43 1,433,178.13 Amortization of long-term deferred expenses Losses from disposal of fixed assets, intangible assets and other long-term assets ('-' for gains) 148,457.47  -2,151.45 Losses from write-off of fixed assets ('-' for gains) Losses from changes in fair value (“-” for gains) 551,742.76 Financial expenses ('-' for gains) Investment losses ('-' for gains) Decreases in deferred income tax assets ('-' for increases) Increases in deferred income tax liabilities ('-' for decreases)  -1,450,609.59  77,541.59 Decreases in inventories ('-' for increases)  -1,699,666.53 -492,057.74 Decreases in operating payable (“-” for increases)  -1,034,780.68  -1,373,841.49 Increases in operating payable ('-' for decreases) Others  151 司公限有份股心中游旅海东大南海  2020 文全告报度年年 -6,729,267.98 4,713,661.51 Net cash flow from operating activities 2. Significant investing and financing activities not involving cash receipts and -- -- payments Conversion of debt into capital Convertible corporate bonds maturing within one year Fixed assets acquired under financing leases -- -- 3. Net changes in cash and cash equivalents 2,924,459.75 7,422,939.89 Ending balance of cash 7,422,939.89  15,364,355.30 Less: beginning balance of cash Plus: ending balance of cash equivalents Less: beginning balance of cash equivalents -4,498,480.14  -7,941,415.41 Net increase in cash and cash equivalents(2) Net cash payment for the acquisition of a subsidiary of the current period: nil(3) Net cash received from the disposal of subsidiaries: nil(4) Breakdowns of cash and cash equivalents In RMB Item  Ending balance  Beginning balance I. Cash  2,924,459.75  7,422,939.89 Including: cash on hand  179,111.10  302,077.12 Unrestricted cash at bank 2,745,348.65  7,120,862.77 III. Balance of cash and cash equivalents 2,924,459.75  7,422,939.89 at end of the periodOther explanation: nil80. Notes for the statement of owners equity changesExplain the items and adjusted amounted which have adjusted in “Other” of last year’s ending balance: 152 司公限有份股心中游旅海东大南海  2020 文全告报度年年81. Assets with ownership or use right restricted: nil82. Item of foreign currency(1) Item of foreign currency: nil(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons□ Applicable √ Not applicable83. HedgingReleased the items and relevant instruments by types, and qualitative and quantitative information for hedge risks: nil84. Government subsidy(1) Government subsidy  In RMB  Amount entry in current Type Amount Presentation item  gains/losses Support funds for inbound  150,000.00 Other income  150,000.00 tourism market development Job stabilization subsidy 2,593.62 Other income 2,593.62(2) Refund of government subsidy□ Applicable √ Not applicableOther explanation: nil  153 司公限有份股心中游旅海东大南海  2020 文全告报度年年85. Other: nilVIII. Change of the consolidation scope1. Business combination not under common control(1) Business combination not under common control occurred in the period: nil(2) Combination costs and goodwill: nil(3) Identifiable assets/liabilities of the purchasee on the date of purchase: nil(4) Gain/loss from the equity re-measured at fair value held before purchasing dateEnterprise combined step by step through multi-dealings and obtained controlling rights in the Period□Yes √No(5) Explanation on combined consideration or the identifiable assets and liabilities’ fair value of thepurchased party on purchasing date or at the end of the current period of merger, which is impossible todetermine in a reasonable way: nil(6) Other explanation: nil2. Business combination under common control(1) Business combination under common control occurred in the period: nil(2) Combined cost: nil(3) Book value of the assets/liabilities from combined party at date of combination: nil3. Counter purchase: nil4. Disposal of subsidiariesLosing controlling rights while dispose subsidiary on one-time□Yes √NoDispose subsidiary step by step through multi-dealings and losing controlling rights in the Period□Yes √No5. Changes of combination scopeOther reasons contributed the changes for combination scope (e.g. new subsidiary established, liquidate subsidiary etc.): nil 154 司公限有份股心中游旅海东大南海  2020 文全告报度年年6. Other: nilIX. Rights and interests in other entities1. Equity in subsidiaries(1) Structure of the enterprise group  Shareholding ratio Metho Principal Name of d of place of Registration place  Business nature Indire subsidiary  Direct acquisi business  ct  tion Hainan Wengao Leasing and Tourist Block B, Main Building, Hainan  Newly Sanya,  commercial Resources  Dadonghai Tourism Centre (Holdings)  100.00%  establi Hainan  service Development Co., Ltd., No. 2, Yuhai Road, Jiyang  shed industries Co., Ltd.  District, Sanya City, Hainan ProvinceAn explanation for the shareholding ratio differing from the share of the voting rights in the subsidiaries: nilThe basis for holding half or below of the voting rights but still controlling the investee, and holding more than half of the votingrights but not controlling the investee: nilThe basis for important structured entities and controls which are included in the scope of consolidation: nilThe basis for determining the company as an agent or as a principal: nilOther explanation: nil  155 司公限有份股心中游旅海东大南海  2020 文全告报度年年(2) Major non-wholly-owned subsidiary: nil(3) Main financial information of the major non-wholly-owned subsidiary: nil(4) Major restriction on using the group’s assets and paying off debts for the group: nil(5) Financial and other supports provided to the structured entity that included in consolidate financialstatement scope: nil2. Changes in the owner's equity share of the subsidiary and the transaction is still controlled subsidiary(1) Explanation of changes in the share of owner’s equity of the subsidiary: nil(2) The impact of the transaction on the minority shareholders' equity and the owner's equity attributableto the parent company: nil3. Equity in arrangement of joint venture or associated enterprises(1) Important joint venture or associated enterprises: nil(2) Main financial information and important joint ventures: nil(3) Main financial information of important associated enterprises: nil(4) Summary financial information of unimportant joint venture and associated enterprises: nil(5) Explanation of significant restrictions on the ability of joint venture or associated enterprises to transferfunds to the company: nil(6) Excess losses incurred by joint venture or associated enterprises: nil(7) Unconfirmed commitments related to joint venture investment: nil(8) Contingent liabilities related to investment in joint venture or associated enterprises: nil4. Important common management: nil5. Equity in structured entities not included in the consolidated financial statements: nil6. Other: nilX. Risks related to financial instrumentsDuring its business operation, the Company faces various financial risks, including credit risks, market risks andliquidity risks. The Board of Directors of the Company takes full responsibilities for determining the risk  156  司公限有份股心中游旅海东大南海  2020 文全告报度年年 management objects and policies and bearing the ultimate liabilities for that, however, the Board of Directors has authorized the management department of the Company to design and implement the process capable of ensuring the effective implementation of the risk management objects and policies. The Board of Directors reviews the effectiveness of the enforced procedures and the rationality of risk management objectives and policies by the reports submitted by the management department of the Company. The internal auditors of the Company also will audit the risk management policies and procedures, and report the relevant facts to the audit committee. The overall objective of risk management of the Company is to prepare the risk management policies ensuring the risk under control as far as possibility without affecting the Company's business development goals. (i) Credit risk Credit risk refers to a risk that one party to the financial instruments suffers financial losses due to the failure of the other party in performing the obligations. The Company mainly faces customer credit risks caused by sales on account. Before signing a new contract, the Company will understand and assess credit risks of the new customer. The Company rates the credit of existing customers and analyzes the aging of accounts receivable to ensure that the Company's overall credit risk is within the controllable range. (ii) Liquidity risk Liquidity risk refers to a risk that an enterprise suffers funds shortage in performing the obligations of settlement in cash or other financial assets. The policy of the Company is to ensure that there is sufficient cash for the payment of the matured debts. Liquidity risk is under centralized control of the financial department of the Company. The financial department monitors cash balance and readily realizable and marketable securities and makes rolling forecast on cash flows of the next 12 months to ensure that the Company has sufficient funds to repay debts in all cases of reasonable prediction. The Company's various financial liabilities are shown below in terms of undiscounted contractual cash flows as due dates: Item  Ending balance Total Within 1 3 month to 1 year  Above 5  1-3 months  1-5 years Overdue month  (including 1 year)  yearsShort-term loans  6,598,477.52 9,893,757.94  16,492,235.46Long-term loans(including long-termloans with maturity of1 year)  157 司公限有份股心中游旅海东大南海 2020 文全告报度年年  23,020.42  23,020.42Long-term loans(interest)  Total  23,020.42 6,598,477.52 9,893,757.94 16,515,255.88 (iii) Market risk Market risk associated with financial instruments refers to the risk that fair value or future cash flows of financial instruments fluctuate due to variations in market prices, and it includes exchange rate risk, interest rate risk and other price risks. The interest rate risk of the Company refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due to changes in market interest rates. The interest rate risk that the Company faces mainly comes from the bank's long-term loan. The details of external borrowings of the Company on December 31, 2020 are as follows:  Including: Item  Ending balance Opening Balance  Ending interest payable Short-term loans 6,621,497.94 23,020.42 Long-term loans due within 1 year 9,893,757.94 Long-term loans Interest of long-term loans Total 16,515,255.88  158 司公限有份股心中游旅海东大南海 2020 文全告报度年年XI. Fair value disclosures1. Ending fair value of the assets and liabilities measured by fair value: nil2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-order: nil3. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on second-order: nil4. The qualitative and quantitative information for the valuation technique and critical parameter thatsustaining and non-persistent measured by fair value on third-order: nil5. Sensitivity analysis of non-observable parameters and adjustment information between the opening bookvalue and ending book value that sustaining measured by fair value on third-order: nil6. If there are conversion between different orders that sustaining measured by fair value, explain theconversion cause and policy of determining the time point for conversion: nil7. The valuation technical change and reasons occurred in the period: nil8. The fair value of financial assets/liabilities that not measured under the fair value: nil9. Other: nilXII. Related parties and related party transactions1. Parent company Name of the parent Registration Business  Registered Shareholding ratio Voting ratio in the  company  place  nature  in the Company Company  capital  Planting and 1151.51 million Luoniushan Co., Ltd. Haikou  breeding 17.55% 19.80% yuan  industryExplanation on the parent company:Explanation: As at December 31, 2020, Luoniushan Co., Ltd. (hereinafter referred to as 'Luoniushan') and its wholly-ownedsubsidiary Hainan Ya'anju Property Services Co., Ltd. held a total of 72,092,000 A shares of the Company, accounting for 19.80 % ofthe Company's total share capital, so it is the Company's largest shareholder.Ultimate controlling party of the Company is Luoniushan Co., Ltd. 159 司公限有份股心中游旅海东大南海  2020 文全告报度年年Other explanation: nil2. Subsidiary of the EnterpriseFor details of the company's subsidiaries, please refer to the note '7 Rights and interests in other entities'.3. Joint venture and associated enterpriseImportant joint venture and associated enterprise found more in the Notes.Other joint venture or associated enterprise that have related party transaction with the Company occurred in the period, or occurredin previous period with balance resulted: nil4. Other related party: nil5. Related party transactions(1) Related party transactions of purchasing and selling commodities, providing and receiving laborservices: nilProcurement of goods / acceptance of labor: nilSales of goods/provided labor service:  In RMB  Content of related-party  Related party  Current period Last period transaction Luoniushan Co., Ltd.  Room and meal fees  54,352.40  124,455.66Explanation of related party transactions of purchasing and selling commodities, providing and receiving labor services: nil(2) Associated trusteeship management/contract and trusteeship/outsourcing: nil(3) Related-party lease: nil(4) Related-party guarantee: nil(5) Related