HaiNan Pearl River Holdings Co., Ltd.
The Abstract of the 2015 Annual Report
I Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the
operating results, financial condition and future development planning of the Company, investors
are kindly reminded to read the full text carefully on the media designated by the China Securities
Regulatory Commission (the “CSRC”).
This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
All directors attended in person the board meeting for reviewing this Report.
The investors should carefully read about the audit report without unqualified opinion on the
events-focused phase which issued by Zhongxinghua CPAs (LLP) that the Board of Directors as
well as the Board of Supervisors had specifically stated on the relevant events.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserves
into share capital.
Company profile
Pearl River A, Pearl
Stock name Stock code 000505, 200505
River B
Stock exchange Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Yu Cuihong Yu Cuihong
F29, Dihao Building, Pearl River F29, Dihao Building, Pearl River
Office address
Plaza, Binhai Rd, Haikou Plaza, Binhai Rd, Haikou
Fax 0898-68581026 0898-68581026
Tel. 0898-68583723 0898-68583723
E-mail hnpearlriver@21cn.net hnpearlriver@21cn.net
II Brief introduction to the main business or products in the Reporting Period
At present, we are mainly engaged in real estate development, hotels & tourism and
property management. We have 18 subsidiaries, 2 branch companies and 3 business
divisions, namely property management, real estate and hotels & tourism. The
property management division contributes approximately 70% of our operating
revenues. Since it is a low-profit sector without significant changes to the relevant
operating activities, the property management division can only manage to break even
due to the continuously, rigidly rising labor cost, without being able to generate profit
for the Company.
The real estate business mainly came from Phase III of the Hubei Meilin Qingcheng
project and to 31 December 2015, which had completed the construction area of the
major structure about 73,000 square meter during Y2015 that developed by the
Company with the accumulative completed construction and installation engineering
volume of RMB203.42 million, the accumulative construction investment of
RMB487.71 million, the sales area of the houses and buildings of 5,000 square meter
as well as the sales volume of RMB602 million (subscription). It was estimated that,
in Y2016, the real estate business could contribute about RMB0.1 billion profits for
the Company.
The service business of the Company mainly came from Sanya Days Hotel & Suites
and China Snow Country Scenic which operated by Mutankiang Pearl River Wanjia
Tourism Group. There were 180 guest rooms in Sanya Days Hotel & Suites, which
located at the seaside of the Sanya Bay with favorable geographic position as well as
five star standard facilities. However, owning to the influences such as the slowly
grown domestic economic growth in the recent years and the depressed real estate
economy, the tourism market in Sanya also appeared successive downturn; while the
intensive opening of the high-end hotels led the market competition increasing, and
the facilities aging of the guest rooms as well as the rise of the labor costs, prices and
energy cost, which all directly caused the increase of the operating cost of the hotel.
Since Y2014, the operating income of the hotel declined obviously with rather large
reduction of the gross profit rate. In 2015, the operating income decreased
continuously, thus the operating of the hotel faced with rather big difficulties in a
short time. And at the same time the depreciation led the continuously adverse since
the opening, the Company had decided to executed the public listing to transfer the
equities of the hotel for recollecting the funds for solving the Company’s debts as well
as decreasing the losses on the consolidated statements level.
The controlling subsidiary of the Company, Mutankiang Pearl River Wanjia Tourism
Group Company (hereinafter referred to as Mutankiang Company), mainly in charge
of the construction and operating of the China Snow Country. Nowadays had
accumulatively invested of RMB0.4 billion in promoting the construction work of the
Snow Country Scenic and successively completed the work such as the Overall
Development Planning from Snow Country to Taipinggou, purchase of the Xuesongge
Hotel and Xueyuan Guesthouse, the L. Chinensis Mountain road construction, the
transportation vehicles acquisition for scenic area tourist entertainment, Yong’an staff
living area construction and the ski resort equipment hall, which greatly improved and
perfected each tourism and basic facilities of Snow Country that led the passenger
flow volume of Snow Country ascending rapidly year by year. Since Y2012, the
operating income had been increased year after year which was of RMB31.87 million
in Y2015. However, owning to the rather big investment on each basic and tourism
facilities construction of Snow Country and the rather high financing cost as well as
the successively transfer from the progress in construction to the fixed assets that
caused great depreciated expenses, to see from the current revenues scale, the
Company only could strive for the realizing of the profit and loss balance in a short
time. While as the continuously enhance of the popularity of the Snow Country
tourism brand, the tourists in future will still increase progressively year by year. The
majority assets of the previous investment of the Company would reached rather great
appreciation owning to the continuously increase of the market-heat of the Snow
Country tourism. And as a long-term investment strategy, the construction and
operating of the Snow Country needed to adjust the strategies in due time, to adjust
measures to local conditions, to avoid cutthroat competition, to harmonious coexist
with the local people, to quit the low-end operating field in due time, and could adopt
the sublease to contract part of the low-efficient operating projects to acquire the
co-existing and co-winning, as well as at the same time accelerate the construction
planning of the high-end tourism property, to make great efforts to forge the holiday
boutique by exerting the own advantages.
The Company will positively explore the business mode that fit for the own
development, and to regard which as the unequivocal strategic goal that invest the
limited funds to the key business fields for constantly enhancing the sustainable
operating ability of the Company.
III Accounting and financial results
1. Accounting and financial results for the past three years
Whether the Company performed a retroactive adjustment to or restatement of accounting data
due to changes of accounting policies or correction of accounting errors
□ Yes √ No
Unit: RMB
Increase/decrease in
2015 2014 the current year 2013
from last year (%)
Operating revenues 267,068,750.88 238,904,161.09 11.79% 225,308,239.00
Net profit attributable to
-107,573,743.92 -173,422,925.66 37.97% 13,489,485.71
shareholders of the Company
Net profit attributable to
shareholders of the Company
-237,953,658.00 -179,382,026.46 -32.65% -175,455,431.84
after exceptional profit and
loss
Net operating cash flow 259,599,625.38 -243,681,708.74 206.53% -45,736,703.09
Basic EPS (RMB/share) -0.25 -0.41 39.02% 0.03
Diluted EPS (RMB/share) -0.25 -0.41 39.02% 0.03
Weighted average ROE (%) 0.00% -262.21% 262.21% 7.61%
Increase/decrease at
the current year-end 31 December
31 December 2015 31 December 2014
from the last 2013
year-end (%)
Total assets 1,714,444,000.65 1,645,436,644.78 4.19% 1,237,713,804.04
Net assets attributable to
-217,136,869.15 15,564,470.40 -1,495.08% 116,714,215.59
shareholders of the Company
2. Financial results by quarter
Unit: RMB
1Q 2Q 3Q 4Q
Operating revenues 78,326,856.68 136,117,829.19 52,075,049.26 267,068,750.88
Net profit attributable to
69,940,735.03 21,492,625.03 -55,679,400.37 -107,573,743.92
shareholders of the Company
Net profit attributable to
shareholders of the Company
-55,022,579.89 -103,796,313.13 -58,786,624.64 -237,953,658.00
after exceptional profit and
loss
Net operating cash flow -48,534,275.41 -94,962,794.82 149,194,827.78 259,599,625.38
Any material differences between the financial indicators above or their summations and those
which have been disclosed in quarterly or semi-annual reports?
□ Yes √ No
IV Share capital and shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting
rights as well as the shareholdings of top ten shareholders
Unit: share
Total number Total number of
of common Total number preference
Total number
shareholders at of preference shareholders with
of common
the prior shareholders resumed voting
shareholders 39,996 40,864 0 0
month-end with resumed rights at the prior
at the
before the voting rights at month-end of the
period-end
disclosure of the period-end disclosure of this
this Report Report
Shareholdings of top ten shareholders
Total Pledged or frozen shares
Nature of
Name of Shareholding shares Number of restricted shares
shareholde Status of Number of
shareholder percentage held at held
r shares shares
period-end
Beijing
State-own
Wanfa Real
ed 112,479,4
Estate 26.36%
corporatio 78
Development
n
Co., Ltd.
Li Leon Zhan Foreign 10,279,60
2.41%
Wei individual 6
Yao Xiu Foreign
2.28% 9,732,328
Guang individual
Foreign
Yao Liyuan 0.47% 2,005,600
individual
Zhang Domestic
0.46% 1,949,250
Xiaoxia individual
Domestic
Fan Suyue 0.42% 1,805,517
individual
Bank Of
Communicati
ons Co
–Chang Xin
Quantization
Other 0.39% 1,684,600
Pioneer
Hybrid
Securities
Investment
Funds
Domestic
Zhong Yi 0.37% 1,572,052
individual
Xu Zhen Domestic 0.31% 1,314,300
individual
Cofco Futures
Co., Ltd. -
Cofco -
Ruixinchangy
Other 0.31% 1,305,400
ing No. 1
Grading Asset
Management
Plan
Among shareholders above, there exists no related-party relationship between the
Related or principal shareholder and other shareholders of the Company. Nor they are parties
acting-in-concert parties with concerted action as prescribed in the Information Disclosure Administrative
among shareholders Methods for Changes in Shareholding of Shareholders of Listed Companies. And it is
above unknown whether there is related-party relationship among other shareholders and
whether they are prescribed parties with concerted action.
Shareholders conducting
Shareholder Zhong Yi holds 1,572,052 shares of the through a client account of
securities margin trading
collateral securities for margin trading in Fortune Securities Co., Ltd..
(if any)
2. Number of preference shareholders and shareholdings of top ten of them
□ Applicable √ Not applicable
No preference shareholders in the Reporting Period.
3. Relationship between the Company and its actual controller in the form of diagram
State-owned Assets Supervision and
Administration Commission of Beijing
Municipal Government
100%
Beijing Xinxing Real Estate Development Corp.
100%
Beijing Wanfa Real Estate Development Co., Ltd.
26.36%
HaiNan Pearl River Holdings Co., Ltd.
V Management discussion and analysis
1. Business review for the Reporting Period
In 2015, the performance of our subsidiaries did not improve markedly, with a consolidated
operating loss of RMB110 million, net assets of RMB-217 million and a serious liquidity
problem. We are now on the verge of a debt crisis due to running out of cash. The real estate
development business, part of our main business, went on well, with the main construction of
the Phase III of the Meilin Qingcheng project completed and the project open for early sale
as scheduled. The hotel division mainly broke even, but asset depreciation led to a
continuous loss. The property management division contributed approximately 70% of our
operating revenues, but with a low profit margin. For the year 2015, we achieved operating
revenues of RMB267,068,750.88 and net profit of RMB-127,121,382.41. At the end of 2015,
our total assets stood at RMB1.714 billion and our net assets at RMB-217 million. According
to the stock listing rules of the Shenzhen Stock Exchange, in 2016, the Company will be
placed on alert for possible de-listing.
Operating review and analysis of the Company in 2015
1. The Company faced with serious debt crisis. In Y2015, the operating had not received
efficient improve, with the unusual difficult circulating fund, the Company already faced by
the debt crisis caused by the broken capital chain and up to 31 December 2015, the total
overdue debt was of RMB0.3 billion. For solving the debt crisis, the management level of the
Company put forward several measures including the proposal on transferring the equities
of Sanya Hotel and Selling Three Villas, and recently the proposal of which was under
constructin.
2. Situation of the real estate sales: up to 31 December 2015, the whole year accumulative
completed work amount of Phase III of the Hubei Meilin Qingcheng project was of
RMB203.42 million with the accumulative construction investment of RMB487.71 million.
The main construction had totally completed on 28 Aug. 2015 and 510 sets of the houses and
buildings sold with the sales amount of 602 million as well as the sales rate reached 70% and
the actual returned money of RMB396 million. The progress of the recoup funds was
favorable that guaranteed the projects constructino progess and the repayments of part of
the development loans.
3. As for the property management: the market competition was still fierce. The property
company positively executed the market development and had undertook the projects such
as the staff quarter of the Baoting Sandao Farm, Phase III of the Wuhan Meilin Qingcheng
project and Haikou Fudi International that increased the management area of about 0.42
million square meter and sucessively bid for the housing construction inspection business of
Xihuan high-speed rail project. However, owning to the greatly uprise of the labor and the
materials cost, the operating of the Company faced with rather great finanical risks and
capital pressure. In Y2015, the Company completed the operating income of RMB199.6697
million with the total operating cost of RMB198.0652 million as well as the net profits of
RMB0.1341 million.Up to present , the management project field of the property company
involved with Haikou, Qionghai, Wenchang, Lingao, Baoting, Sanya, Changsha, Wuhan,
Nanning and Zhengzhou. The major service project type involved with residences, office
buildings, high-speed rail passenger depots, schools, government compounds, shopping malls,
stadiums and so on. There were 86 management projects with the comprehensive
management area of about 7.50 million sqaure meter, of which there were 67 residence
projects and 14 office projects. To see from the project structure, the residence projects
covered 80% and under the circumstances of the unchanged property fee for decades while
the operating cost increased with duplication that led the residence projects faced with
smaller profit sources even at a loss.
For guarantee the efficient enhance and the development demands of the quality system of
the property company, in July 2015, Pearl Real Estate acquired the certification
confirmation of ISO14000 Environment Management System and OSHMS18000
Occupation Health Safety Management System issued by CQM Group, which standed for
the staged achievements of the “three-in-one” international management system performing
standard work in the quality, the environment and the occupational health and safety.
4. The operating season of the Snow Country in Y2015 of the controlling shareholder
Mutankiang Tourism Group was January – March, and shut down the business after the
end of the snow season since April with the realized operating income of RMB31.75 million
and the operating income maintained year-by-year increase. In Y2015. the Company
continued to invest on the construction ofo the comprehensive service center project of Days
Hotel of Snow Country and recently had completed the capping of the main structure that
estimated to put into operation on 31 Oct. 2016.For forging the brand image of the Snow
Country, the Company continuous to invest on the infrastructure construction which had
reached certain results, while the forging of the brand of the tourism scenic and the
continuous maintenance were long-term job and the follow-up development still need to be
constantly invested with the construction funds. Owning to the fund shortage of the
Company, the investment progress had correspondingly slowed down.
5. Operating situation of Sanya Days Hotel & Suites: in Y2015, the annual realized
operating income was of RMB27.1650 million and the operating gross profits of RMB4.1543
million. Since Y2014, the operating income of the hotel had appeared the year-by-year
decline tendency with the main resaon was the aging hotel hardware and the old-fashioned
facilities that led the insufficient competitiveness when compared with the newly open
hotelds, especially the intensively open of the multiple five-star or the super five-star hotels
in Sanya district in the recent two years that led the obvious buyer’s market of the Hainan
holiday leisure market; the constantly rise of the enery expenditures and the labor cost
directly led to the increase of the operating cost of the hotel.
6. The project progress of the Company’s previous investment:
(1) The coal logistics project of Mulin Town: The coal logistics project of Mulin Town
cooperated by Pearl River Holdings and Zhonghe Investment Co., Ltd. in 2012 was unable
to continue, due to the change of state policies to the energy and significant change in the
coal market, at present, RMB100 million investment to the energy was not been recovered,
the both party ever negotiated that develop solar energy and photovoltaic agricultural
projects basing on the land of original project. However, it had not been approved, the
follow-up cooperation remained great uncertainty.
(2) Yunxi iron mines project: Due to the price of powdered iron continuing go-down, the
original plan of construction of mining area production line and equipment installation
slowed down. During Reporting Period, the Company and its cooperation party strengthen
the mine area management, contact, investigate straighten out and set up distribution
channel with several steel mill. And in line with the market situation to adjust the mining
area production line and progress of detailed exploration to the mine of mining area electric
power modification works of Zhao courtyard and Du bay. Due to the grade of iron ore of
Zhao courtyard was lower than that of Du bay, and analyze the market situation, the
Company planned to transfer the production equipment to Du bay. The grade of iron ore in
this mine area had bigger competitiveness. Meanwhile, considering the influence of probably
continuing go-down of domestic iron ore market, the Company actively found project
transfer or introduced strategy investors to development the project in common.
(3) The real estate development project on a former tubular pile factory, the Company had
obtained the land certificate for the industrial land and paid RMB20 million share equity
agreed by the contract, and obtained 80% equity of the project in line with the original
contract. However, due to the original big shareholder of the project was the foreign
investment enterprise, the transfer of share equity involving special approval procedures of
foreign investment enterprise, so far, the transfer had not been completed, the planning and
design of the project still waited for implementation after the control stipulation of the
project located made by the Sanya government.
(4) The Shijiazhuang Luquan new countryside construction project. In 2015, the project
suspend due to meeting overall planning adjustment of “City transfer into District” in
Luquan. Luquan original belongs to county-level city with an independent approval right
and operated independent from Shijiazhuang in each aspect. After the adjustment of
administrative subordination relations, though the administrative level did not adjusted, but
the planning shall wait for the overall re-adjustment of Shijiazhuang. The situation had
great influence to the project, and the overall planning approval stagnated for about one
year. So far, the Company is actively coordinating. Meanwhile, due to the big scope of the
project, which need lots of initial capital; the project in pre-stage need start to move back to
the development land of commercial houses 1# which in total covered 200 acres. Due to the
requirement of the project surrounding maturity and actual removing situation, land 1#
started in same period, which demand RMB100-200 million to actually conduct the start of
the project. Considering the capital investment of the follow-up construction was extremely
large, and the financial situation of the Company was tight and cannot support the start of
the project in a short time. So far, the Company was readjusting the project construction
plan and speeded up the financing work of the project; after the relevant pre-stage work had
been finished, submitted the overall construction and investment plan to the Board of
Directors of the Company estimated in September 2016. If the project restarts in 2016, after
three years’ construction, it can realize to sell, and make profits to the Company.
7. In order to relieve the capital pressure of loan maturity and repaying capital with interest,
the Company sold its holding of 7,750,000 shares of Southwest Securities, obtained
investment RMB120 million, which was the main profit resource of the Company in 2015.
8. In order to solve the serious difficulty of operation capital, the Company transfer share
equity of its controlling subsidiary Heilongjiang Loong Media Group Co., Ltd. with RMB20
million, at present, the procedure of transfer had been processing by each party.
2. Significant changes in the main business in the Reporting Period
□ Yes √ No
3. Products contributing over 10% of the main business revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Operating Operating Gross profit
Operating Operating Gross profit
Product revenue: YoY profit: YoY margin: YoY
revenue profit margin
+/-% +/-% +/-%
Sale of real
1,040,000.00 -59,398,973.27 58.56% -64.35% 49.15% 0.69%
estate
Property
202,558,443.0
management 1,737,425.14 10.78% 20.32% 40.57% -0.29%
0
services
Tourism hotel
46,521,538.00 -53,936,126.41 48.64% -21.39% 31.16% 4.95%
service
4. Seasonal or periodic characteristics in the operating performance that need special
attention
□ Yes √ No
5. Significant YoY changes in the operating revenues, operating costs and net profit
attributable to the common shareholders or their composition
□ Applicable √ Not applicable
6. Possibility of listing suspension or termination
□ Applicable √ Not applicable
VI Issues related to the financial report
1. YoY changes in accounting policies, accounting estimations and measurement methods
□ Applicable √ Not applicable
No changes.
2. Retroactive restatements due to correction of significant accounting errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases.
3. YoY changes in the scope of the consolidated financial statements
□ Applicable √ Not applicable
No changes.
4. Explanation by the Board of Directors and the Supervisory Committee concerning the
“auditor’s report with non-standard opinion” issued by the CPAs firm for the Company in
the Reporting Period
√ Applicable □ Not applicable
1. Notes made by the Board of Directors: Zhongxinghua Certificated Public Accountants
(LLP) had issued audit report with emphasis on events-focused phase and without
reservations, which understood and accepted by the Board of Directors of HaiNan Pearl
River Holdings Co., Ltd. (“the Company”). The Board believed that the reasons of the
accountants’ issue of audit report with emphasis on events-focused phase and without
reservations were: as of 31 December 2015, the net asset of consolidated report was
RMB-233,193,926.40, the continuous operation capability was uncertain. Specific to the
events-focused in the audit report, the Board of the Company and management will timely
adjust the operation strategy and business structure, speed up the schedule of the
development of the project, dispose the available for sale financial assets, expend financing
channels, strive for the continuous support of the big shareholder to improve the profit
capability and enhance the future continuous operation ability of the Company.
2. Notes made by the Board of Supervisors: after inspected the financial report on 31
December 2015 and reviewed the audit report issued by Zhongxinghua Certificated Public
Accountants (LLP), the events-focused in audit report of 2015: we remind the user of
financial report, as said in Note XIII, as of 31 December 2015, the net assets of consolidated
report of the Company was RMB-233,193,926.40, the continuous operation capability may
existing uncertainty. “The content of this phase had no influence to the audit report had
issued”. The Board of Supervisors accepted audit report with emphasis on events-focused
phase and without reservations made by accountants upon the aforesaid issues and believed
that the event confirmed with the principle of fair, objective and seeking truth from facts.
Meanwhile, the Board of Supervisors agreed the Board of Directors made special note to the
aforesaid event. Hope the Board of the Company and management actively conduct effective
methods to reduce the influence of events-focused, safeguard the investors’ interests.
3. Notes made by Independent Directors: Zhongxinghua Certificated Public Accountants
(LLP) had issued audit report with emphasis on events-focused phase and without
reservations which we believed that it truly and objectively reflected the actual situation of
the Company in 2015.
HaiNan Pearl River Holdings Co., Ltd.
23 April 2016
Hainan Pearl River Holding Company Limited
Consolidated Balance Sheet
Unit：RMB
ASSETS Note(VII) 31 December 2015 31 December 2014
Current assets —— ——
Currency Funds 1 205,762,131.54 97,404,192.62
Provision of settlement fund
Funds lent
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 2 17,161,981.62 12,378,292.44
Advances to suppliers 3 108,236,943.90 128,625,359.78
Interest receivable
Dividends receivable 4 260,015.00 260,015.00
Other receivables 5 256,036,391.03 238,352,004.55
Buying back the sale of financial assets
Inventories 6 531,145,489.05 386,635,994.05
Reclassified to assets held for sale
Current portion of non-current assets
Other current assets
Total current assets 1,118,602,952.14 863,655,858.44
Non-current assets —— ——
Available-for-sale financial assets 7 11,411,309.90 184,158,809.90
Held-to-maturity investments
Long-term receivables
Long-term equity investments 8 35,284,761.64 35,961,754.63
Investment property 9 20,890,800.30 22,228,615.23
Fixed assets 10 409,326,778.05 436,892,954.81
Construction in progress 11 79,403,655.02 57,013,898.46
Construction materials 12 393,706.60 393,706.60
Fixed assets pending for disposal
Productive biological assets
Oil and gas assets
Intangible assets 13 29,519,153.74 30,660,800.67
Development disbursements
Goodwill
Long-term prepaid expenses 14 8,029,043.26 12,888,406.04
Deferred tax assets
Other non-current assets 16 1,581,840.00 1,581,840.00
Total non-current assets 595,841,048.51 781,780,786.34
Total assets 1,714,444,000.65 1,645,436,644.78
The accompanying notes form an integral part of the financial statements.
Legal representative:zhengqing Principal in charge of accounting: :zhengqing Head of the accounting department:wuxiukun
Hainan Pearl River Holding Company Limited
Consolidated Balance Sheet
Unit：RMB
ASSETS Note(VII) 31 December 2015 31 December 2014
Current liabilities —— ——
Short-term borrowings 18 0.00 19,000,000.00
Financial liabilities at fair value through profit or loss
Derivative financial assets
Notes payable
Accounts payable 19 24,313,483.40 58,578,620.48
Advances from customers 20 428,054,670.19 28,572,757.37
Employee benefits payable 21 13,353,268.66 9,689,999.71
Taxes payable 22 -5,255,663.63 4,603,277.48
Interest payable 23 178,429,980.05 122,400,850.73
Dividends payable 24 3,213,302.88 3,213,302.88
Other payables 25 561,278,959.68 780,359,522.08
Current portion of non-current liabilities 26 353,287,364.69 249,471,973.56
Other current liabilities
Total current liabilities 1,556,675,365.92 1,275,890,304.29
Non-current liabilities —— ——
Long-term borrowings 27 390,333,333.34 327,303,532.52
Bonds payable
Long-term payable
Grants payable
Provisions
Deferred income
Deferred tax liabilities 15 629,227.79 23,187,756.33
Other non-current liabilities
Total non-current liabilities 390,962,561.13 350,491,288.85
Total liabilities 1,947,637,927.05 1,626,381,593.14
Equity —— ——
Share capital 28 426,745,404.00 426,745,404.00
Capital reserve 29 334,690,837.45 334,690,837.45
Less:Treasury Share
Other comprehensive income 30 0.00 125,127,595.63
Surplus reserve 31 109,487,064.39 109,487,064.39
Provision for general risks
Retained earnings 32 -1,088,060,174.99 -980,486,431.07
Equity attributable to parent company -217,136,869.15 15,564,470.40
*Minority interests -16,057,057.25 3,490,581.24
Total owner's equity -233,193,926.40 19,055,051.64
Total liabilities and owner's equity 1,714,444,000.65 1,645,436,644.78
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Consolidated Income Statement
Unit：RMB
ITEM Note(VII) 2015 2014
I. Revenue 267,068,750.88 238,904,161.09
Including：Operating income 33 267,068,750.88 238,904,161.09
II.Total cost 505,692,539.18 438,346,628.78
Including：Operating cost 33 208,475,239.56 186,863,172.22
Interest expenses
Handling charges and commissions expenses
Business taxes and surcharges 34 15,324,879.59 13,957,767.42
Selling expenses 35 13,150,025.48 5,532,791.50
Administrative expenses 36 94,718,847.46 108,926,123.62
Including:research and development expenses
Finance expenses 37 122,512,226.74 106,922,352.10
Including: Interest expenses
Interest income
Net loss on foreign exchange
Impairment losses of assets 38 51,511,320.35 16,144,421.92
Others
Add：Gain on fair-value changes（“-”for loss）
Investment income（“-”for loss） 39 126,095,109.54 4,566,600.41
Including：investment income from associates and joint ventures -676,992.99 -806,773.60
Gain or loss on foreign exchange ( "-"for loss)
III.Operating profits（“－”for loss） -112,528,678.76 -194,875,867.28
Add：Non-operating income 40 3,501,882.36 1,014,289.20
Including：Gains on disposal of non-current assets
Gains from exchange of non-monetary assets
Government grants
Gains from debt restructuring
Less：Non-operating expenses 41 1,390,348.78 1,556,179.43
Including：Losses on disposal of non-current assets 163,533.87 314,560.47
Losses from exchange of non-monetary assets
Losses from debt restructuring
IV.Profit before tax（“－”for loss） -110,417,145.18 -195,417,757.51
Less：Income tax expenses 42 16,704,237.23 -14,662,339.82
V.Net profit（“－”for loss） -127,121,382.41 -180,755,417.69
Net profit attributable to owners of the Company -107,573,743.92 -173,422,925.66
*Profit/loss attributable to minority shareholders -19,547,638.49 -7,332,492.03
VI.Post-tax net value of other comprehensive income -125,127,595.63 71,842,500.00
Post-tax net value of other comprehensive income attributable to owners of the Company -125,127,595.63 71,842,500.00
(I) Other comprehensive income that will not be reclassified subsequently to profit or loss
(II) Other comprehensive income that will be reclassified subsequently to profit or loss -125,127,595.63 71,842,500.00
i.Other comprehensive incomes that be able to reclassify as profit under equity method.
ii.Gain or loss from fair-value changes on available for sale financial assets -125,127,595.63 71,842,500.00
iii.Reclassify held-to-maturity investment to hold-to-sale financial assets gain or loss
iv. The effective cash flow hedgeing gain or loss
v. Translation differences arising on translation of financial statements denominated in foreign
currencies
Post-tax net value of other comprehensive income attributable to minority shareholders
VII.Total comprehensive income attributable to: -252,248,978.04 -108,912,917.69
Owners of the Company -232,701,339.55 -101,580,425.66
*Minority shareholders -19,547,638.49 -7,332,492.03
VIII.Earnings per share
i.Basic earnings per share -0.26 -0.41
ii.Diluted earnings per share -0.26 -0.41
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Consolidated Cash Flow Statement
Unit：RMB
ITEM Note(VII) 2015 2014
Ⅰ.Cash flows from operating activities： —— ——
Cash received from sales and services 636,569,142.23 242,740,543.68
Tax refunds
Net cash from other operating activities 43 80,892,208.19 95,644,924.36
Sub-total of cash inflows from operating activities 717,461,350.42 338,385,468.04
Cash paid for goods and services 194,452,388.19 298,350,762.55
Cash paid to and on behalf of employees 171,129,990.94 147,535,288.28
Payment of taxes and surcharges 38,655,500.55 19,013,112.31
Other cash payments relating to operating activities 43 53,623,845.36 117,168,013.64
Sub-total of cash outflows from operating activities 457,861,725.04 582,067,176.78
Net cash flows from operating activities 259,599,625.38 -243,681,708.74
Ⅱ.Cash flows frow investing activities： —— ——
Cash receipts from withdraw of investments 181,932,294.42 44,600,000.00
Cash received from investment income 129,347.48 1,017,004.08
Net cash from disposal of fixed assets, intangible assets and other long-term
2,781,032.92 2,506,367.50
assets
Net cash received from disposal of subsidiaries and other business units
Other cash receipts relating to investing activities 43 - 13,871.23
Sub-total of cash inflows from investing activities 184,842,674.82 48,137,242.81
Cash paid for fixed assets, intangible assets and other long-term assets 25,302,379.04 83,252,664.02
Cash payments for investments 27,500,000.00 15,220,000.00
Net cash paid for acquiring subsidiaries and other business units
Net cash used in other investing activities
Sub-total of cash outflows from investing activities 52,802,379.04 98,472,664.02
Net cash flows from investing activities 132,040,295.78 -50,335,421.21
Ⅲ.Cash flows from financing activities： —— ——
Cash proceeds from investments by others - 7,220,000.00
Including：cash received by subsidiaries from minority shareholders' investment - 7,220,000.00
Cash received from borrowings 462,078,169.48 964,013,532.50
Cash received from issuance of bonds
Cash receipts related to other financing activities
Sub-total of cash inflows from financing activities 462,078,169.48 971,233,532.50
Cash repayments for debts 621,640,859.80 547,257,893.34
Cash payments for distribution of dividends, profit and interest expenses 74,430,974.77 63,220,486.27
Including: dividends or profit paid by subsidiaries to minority shareholders
Other cash payments relating to financing activities 43 29,288,317.15 51,696,073.01
Sub-total of cash outflows from financing activities 725,360,151.72 662,174,452.62
Net cash flows from financing activities -263,281,982.24 309,059,079.88
Ⅳ.Effect of foreign exchange rate changes on cash and cash equivalents - -
Ⅴ.Net increase in cash and cash equivalents 128,357,938.92 15,041,949.93
Add: beginning balance of cash and cash equivalents 77,404,192.62 62,362,242.69
Ⅵ. Ending balance of cash and cash equivalents 205,762,131.54 77,404,192.62
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Consolidated Statement of Changes in Owners’ Equity
Unit：
RMB
2015
Attributable to the parent company
ITEM Note(VII) Other Minority Total owner's
Other
equity Less:treas Specialize Provision for interests equity
Paid-in capital Capital reserve comprehensive Surplus reserve Retained earnings Others Sub-total
instru ury shares d reserve general risks
income
ments
1 2 3 4 5 6 7 8 9 10 11 12 13
I.Closing balance of the preceding year 426,745,404.00 - 334,690,837.45 - 125,127,595.63 - 109,487,064.39 - -980,486,431.07 - 15,564,470.40 3,490,581.24 19,055,051.64
Add:Changes in accounting policies — — — — — — — — — — — — —
Corrections of errors in Prior Period — — — — — — — — — — — — —
Others - - - - - - - - - - - - -
II.Opening balance of the current year 426,745,404.00 - 334,690,837.45 - 125,127,595.63 - 109,487,064.39 - -980,486,431.07 - 15,564,470.40 3,490,581.24 19,055,051.64
III.Changes for the year - - - - -125,127,595.63 - - - -107,573,743.92 - -19,547,638.49 -252,248,978.04
-232,701,339.55
(I) Total comprehensive income - - - - -125,127,595.63 - - -107,573,743.92 - -19,547,638.49 -252,248,978.04
-232,701,339.55
(II) Capital contribution and withdrawals by
- - - - - - - - - - - - -
owners
i.Capital contributions from owners - - - - - - - - - - - -
ii.Capital contribute from other equity
- - - - - - - - - - - - -
instrument holders
iii.Share-based payment recorded in
- - - - - - - - - - - - -
owner's equity
iv.Others - - - - - - - - - - -
( III).Profits distribution - - - - - - - - - - - - -
i.Appropriation to surplus reserve - - - - - - - - - - - - -
Including:Statutory surplus reserve - - - - - - - - - - -
Optional surplus
- - - - - - - - - - - - -
reserve
ii.Appropriation of provision for general
- - - - - - - - - - - - -
risks
iii.Profit distribution to equity owners - - - - - - - - - - - - -
iv.Others - - - - - - - - - - - - -
(V).Transfer within owner's equity - - - - - - - - - - - - -
i.Capital reserve transferred to paid-in
- - - - - - - - - - -
capital
ii.Surplus reserve transferred to paid-in
- - - - - - - - - - - - -
capital
iii.Recover of loss by surplus reserve - - - - - - - - - - - - -
iv.Others - - - - - - - - - -
IV. Closing balance of the year 426,745,404.00 - 334,690,837.45 - - - 109,487,064.39 - -1,088,060,174.99 - -16,057,057.25 -233,193,926.40
-217,136,869.15
The accompanying notes form an integral part of the financial statements.
Legal representative: Zheng Qing Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Consolidated Statement of Changes in Owners’ Equity
Unit：RMB
2014
Attributable to the parent company
ITEM Note(VII) Other Minority Total owner's
Other equity Less:treasury Specialized Provision for Retained interests equity
Paid-in capital Capital reserve comprehensive Surplus reserve Others Sub-total
instruments shares reserve general risks earnings
income
1 2 3 4 5 6 7 8 9 10 11 12 13
I.Closing balance of the preceding year 426,745,404.00 334,260,156.98 53,285,095.63 109,487,064.39 -807,063,505.41 116,714,215.59 11,253,753.74 127,967,969.33
Add:Changes in accounting policies - - - - - - - - - -
Corrections of errors in Prior
- - - - - - - - - - - - -
Period
Others - - - - - - - - - - - - -
II.Opening balance of the current year 426,745,404.00 - 334,260,156.98 - 53,285,095.63 - 109,487,064.39 - -807,063,505.41 - 116,714,215.59 11,253,753.74 127,967,969.33
III.Changes for the year - - 430,680.47 - 71,842,500.00 - - - -173,422,925.66 - -101,149,745.19 -7,763,172.50 -108,912,917.69
(I) Total comprehensive income - - - - 71,842,500.00 - - -173,422,925.66 - -101,580,425.66 -7,332,492.03 -108,912,917.69
(II) Capital contribution and withdrawals
- - 430,680.47 - - - - - - - 430,680.47 -430,680.47 -
by owners
i.Capital contributions from owners - - - - - - - - - - - -
ii.Capital contribute from other
- - - - - - - - - - - - -
equity instrument holders
iii.Share-based payment recorded in
- - - - - - - - - - - - -
owner's equity
iv.Others - - 430,680.47 - - - - - - - 430,680.47 -430,680.47 -
( III).Profits distribution - - - - - - - - - - - - -
i.Appropriation to surplus reserve - - - - - - - - - - - - -
Including:Statutory surplus reserve - - - - - - - - - - -
Optional surplus
- - - - - - - - - - - - -
reserve
ii.Appropriation of provision for
- - - - - - - - - - - - -
general risks
iii.Profit distribution to equity
- - - - - - - - - - - - -
owners
iv.Others - - - - - - - - - - - - -
(V).Transfer within owner's equity - - - - - - - - - - - - -
i.Capital reserve transferred to paid-in
- - - - - - - - - - - - -
capital
ii.Surplus reserve transferred to
- - - - - - - - - - - - -
paid-in capital
iii.Recover of loss by surplus reserve - - - - - - - - - - - - -
iv.Others - - - - - - - - - - - - -
IV. Closing balance of the year 426,745,404.00 - 334,690,837.45 - 125,127,595.63 - 109,487,064.39 - -980,486,431.07 - 15,564,470.40 3,490,581.24 19,055,051.64
The accompanying notes form an integral part of the financial statements.
Legal representative: Zheng Qing Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Balance Sheet of the Company
Unit：RMB
ASSETS Note(XV) 31 December 2015 31 December 2014
Current assets： —— ——
Cash and cash equivalent 479,720.71 2,034,649.76
Provision of settlement fund
Funds lent
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 1 1,701,828.46 3,435,478.16
Advances to suppliers 50,277,830.00 50,240,000.00
Interest receivable
Dividends receivable 260,015.00 260,015.00
Other receivables 2 684,683,017.06 818,584,850.46
Buying back the sale of financial assets
Inventories 4,824,035.45 4,824,035.45
Reclassified to assets held for sale
Current portion of non-current assets
Other current assets
Total current assets 742,226,446.68 879,379,028.83
Non-current assets： —— ——
Available-for-sale financial assets 11,411,309.90 184,158,809.90
Held-to-maturity investments
Long-term receivables
Long-term equity investments 3 293,231,762.82 293,884,905.62
Investment property 6,686,104.13 6,988,540.73
Fixed assets 13,311,762.29 14,623,874.13
Construction in progress
Construction materials
Fixed assets pending for disposal
Productive biological assets
Oil and gas assets
Intangible assets 1,410,049.68 1,457,713.32
Development disbursements
Goodwill
Long-term prepaid expenses 604,524.68 855,107.00
Deferred tax assets
Other non-current assets
Total non-current assets 326,655,513.50 501,968,950.70
Total assets 1,068,881,960.18 1,381,347,979.53
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Balance Sheet of the Company(Continued)
Unit：RMB
ASSETS Note(XV) 31 December 2015 31 December 2014
Current liabilities： —— ——
Short-term borrowings
Financial liabilities at fair value through profit or loss
Derivative financial assets
Notes payable
Accounts payable 2,482,949.70 2,482,949.70
Advances from customers 38,896.41 98,945.30
Financial assets sold for repurchase
Employee benefits payable 1,050,861.22 674,051.54
Including:Accrued payroll 1,050,861.22 674,051.54
Welfare benefits payable
Including:Staff and workers' bonus and selfare
Taxes and surcharges payable 7,576,662.32 2,995,939.00
Including:Taxes payable 7,576,662.32 2,995,939.00
Interest payable 126,077,364.57 75,566,328.92
Dividends payable 3,213,302.88 3,213,302.88
Other payables 430,555,824.81 576,422,782.11
Cession insurance premiums payable
Provision for insurance contracts
Funds received as agent of stock exchange
Funds received as stock underwrite sale
Reclassified to liabilities held for sale
Current portion of non-current liabilities 272,856,962.92 196,805,306.92
Other current liabilities
Total current liabilities 843,852,824.83 858,259,606.37
Non-current liabilities： —— ——
Long-term borrowings 0.00 130,303,532.50
Bonds payable
Long-term payable
Grants payable
Provisions
Deferred tax liabilities 0.00 22,512,854.23
Other non-current liabilities
Total non-current liabilities - 152,816,386.73
Total liabilities 843,852,824.83 1,011,075,993.10
Equity： —— ——
Share capital 426,745,404.00 426,745,404.00
Capital reserve 337,276,496.52 337,276,496.52
Less:Treasury Share
Other comprehensive income 0.00 125,127,595.63
Surplus reserve 109,487,064.39 109,487,064.39
Provision for general risks
Retained earnings -648,479,829.56 -628,364,574.11
Total owner's equity 225,029,135.35 370,271,986.43
Total liabilities and owner's equity 1,068,881,960.18 1,381,347,979.53
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Income Statement of the Company
Unit：RMB
ITEM Note(XV) 2015 2014
I. Revenue 1,683,542.77 1,170,529.02
Including：Operating income 4 1,683,542.77 1,170,529.02
II.Total cost 131,555,244.94 101,671,194.21
Including：Operating cost 4 355,593.60 355,593.60
Business taxes and surcharges 114,815.95 52,109.68
Selling expenses 1,040.00
Administrative expenses 16,099,972.91 18,696,095.68
Including:research and development expenses
Finance expenses 90,600,805.99 70,619,920.31
Including: Interest expenses
Interest income
Net loss on foreign exchange
Impairment losses of assets 24,383,016.49 11,947,474.94
Others
Add：Gain on fair-value changes（“-”for loss）
Investment income（“-”for loss） 5 125,989,612.25 4,436,304.21
Including：Investment income from associates and joint ventures -653,142.80 -838,983.66
Gain or loss on foreign exchange ( "-"for loss)
III.Operating profits（“－”for loss） -3,882,089.92 -96,064,360.98
Add：Non-operating income 0.02 33.04
Including：Gains on disposal of non-current assets
Gains from exchange of non-monetary
assets
Government grants
Gains from debt restructuring
Less：Non-operating expenses 1,022,894.78 7,133.12
Including：Losses on disposal of non-current assets 104,747.98
Losses from exchange of non-monetary
assets
Losses from debt restructuring
IV.Profit before tax（“－”for loss） -4,904,984.68 -96,071,461.06
Less：Income tax expenses 15,210,270.77 -15,210,270.77
V.Net profit（“－”for loss） -20,115,255.45 -80,861,190.29
VI.Post-tax net value of other comprehensive income -125,127,595.63 71,842,500.00
(I) Other comprehensive income that will not be reclassified subsequently to profit
or loss
(II) Other comprehensive income that will be reclassified subsequently to profit or
-125,127,595.63 71,842,500.00
loss
i.Other comprehensive incomes that be able to reclassify as profit under
equity method.
ii.Gain or loss from fair-value changes on available for sale financial assets -125,127,595.63 71,842,500.00
iii.Reclassify held-to-maturity investment to hold-to-sale financial assets
gain or loss
iv. The effective cash flow hedgeing gain or loss
v. Translation differences arising on translation of financial statements
denominated in foreign currencies
VII.Total comprehensive income -145,242,851.08 -9,018,690.29
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Cash Flow Statement of the Company
Unit：RMB
ITEM Note(XV) 2015 2014
Ⅰ.Cash flows from operating activities.Cash flows from operating activitiesvities： —— ——
Cash received from sales and services 1,777,540.85 1,241,995.25
Tax refunds
Net cash from other operating activities 306,136,722.36 135,557,245.09
Sub-total of cash inflows from operating activities 307,914,263.21 136,799,240.34
Cash paid for goods and services
Cash paid to and on behalf of employees 5,296,572.50 5,679,506.41
Payment of taxes and surcharges 1,814,708.72 613,301.23
Other cash payments relating to operating activities 58,842,160.39 436,181,501.92
Sub-total of cash outflows from operating activities 65,953,441.61 442,474,309.56
Net cash flows from operating activities 241,960,821.60 -305,675,069.22
Ⅱ.Cash flows frow investing activities： —— ——
Cash receipts from withdraw of investments 141,671,794.42 81,800,000.00
Cash received from investment income 930,000.00
Net cash from disposal of fixed assets, intangible assets and other long-term
assets
Net cash received from disposal of subsidiaries and other business units
Other cash receipts relating to investing activities
Sub-total of cash inflows from investing activities 141,671,794.42 82,730,000.00
Cash paid for fixed assets, intangible assets and other long-term assets
6,199.00 8,828.00
Cash payments for investments 57,788,000.00 76,320,000.00
Net increase of pledged loans
Net cash paid for acquiring subsidiaries and other business units
Net cash used in other investing activities
Sub-total of cash outflows from investing activities 57,794,199.00 76,328,828.00
Net cash flows from investing activities 83,877,595.42 6,401,172.00
Ⅲ.Cash flows from financing activities： —— ——
Cash proceeds from investments by others
Including：cash received by subsidiaries from minority shareholders' investment
Cash received from borrowings 102,528,000.00 600,203,532.50
Cash received from issuance of bonds
Cash receipts related to other financing activities
Sub-total of cash inflows from financing activities 102,528,000.00 600,203,532.50
Cash repayments for debts 380,857,787.33 263,574,560.00
Cash payments for distribution of dividends, profit and interest expenses 38,610,941.59 24,769,812.88
Including: dividends or profit paid by subsidiaries to minority shareholders
Other cash payments relating to financing activities 10,452,617.15 12,201,233.01
Sub-total of cash outflows from financing activities 429,921,346.07 300,545,605.89
Net cash flows from financing activities -327,393,346.07 299,657,926.61
Ⅳ.Effect of foreign exchange rate changes on cash and cash equivalents
- -
Ⅴ.Net increase in cash and cash equivalents -1,554,929.05 384,029.39
Add: beginning balance of cash and cash equivalents 2,034,649.76 1,650,620.37
Ⅵ. Ending balance of cash and cash equivalents 479,720.71 2,034,649.76
The accompanying notes form an integral part of the financial statements.
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Statement of Changes in Owners’ Equity of the Company
2015
Other equity Less:treasury Other comprehensive Specialized Provision for
Paid-in capital Capital reserve Surplus reserve Retained earnings Others Total owner's equity
instruments shares income reserve general risks
1 2 3 4 5 6 7 8 9 10 11
I.Closing balance of the preceding year 426,745,404.00 - 337,276,496.52 - 125,127,595.63 - 109,487,064.39 - -628,364,574.11 - 370,271,986.43
Add:Changes in accounting policies — — — — — — — — — — —
Corrections of errors in Prior Period — — — — — — — — — — —
Others - - - - - - - - - - -
II.Opening balance of the current year 426,745,404.00 - 337,276,496.52 - 125,127,595.63 - 109,487,064.39 - -628,364,574.11 - 370,271,986.43
III.Changes for the year - - - - -125,127,595.63 - - - -20,115,255.45 - -145,242,851.08
(I) Total comprehensive income - - - - -125,127,595.63 - - -20,115,255.45 - -145,242,851.08
(II) Capital contribution and withdrawals by owners - - - - - - - - - - -
i.Capital contributions from owners - - - - - - - - - -
ii.Capital contribute from other equity instrument
- - - - - - - - - - -
holders
iii.Share-based payment recorded in owner's equity - - - - - - - - - - -
iv.Others - - - - - - - - - -
( III).Profits distribution - - - - - - - - - - -
i.Appropriation to surplus reserve - - - - - - - - - - -
Including:Statutory surplus reserve - - - - - - - - -
Optional surplus reserve - - - - - - - - - - -
ii.Appropriation of provision for general risks - - - - - - - - - - -
iii.Profit distribution to equity owners - - - - - - - - - - -
iv.Others - - - - - - - - - - -
(V).Transfer within owner's equity - - - - - - - - - - -
i.Capital reserve transferred to paid-in capital - - - - - - - - - - -
ii.Surplus reserve transferred to paid-in capital - - - - - - - - - - -
iii.Recover of loss by surplus reserve - - - - - - - - - - -
iv.Others - - - - - - - - -
IV. Closing balance of the year 426,745,404.00 - 337,276,496.52 - - - 109,487,064.39 - -648,479,829.56 - 225,029,135.35
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan Pearl River Holding Company Limited
Statement of Changes in Owners’ Equity of the Company
2014
Other equity Less:treasury Other comprehensive Specialized Provision for general Retained Total owner's
Paid-in capital Capital reserve Surplus reserve Others
instruments shares income reserve risks earnings equity
1 2 3 4 5 6 7 8 9 10 11
I.Closing balance of the preceding year 426,745,404.00 337,276,496.52 53,285,095.63 109,487,064.39 -547,503,383.82 379,290,676.72
Add:Changes in accounting policies - - 0.00 - - - - - -
Corrections of errors in Prior Period - - - - - - - - - - -
Others - - - - - - - - - - -
II.Opening balance of the current year 426,745,404.00 - 337,276,496.52 - 53,285,095.63 - 109,487,064.39 - -547,503,383.82 - 379,290,676.72
III.Changes for the year - - - - 71,842,500.00 - - - -80,861,190.29 - -9,018,690.29
(I) Total comprehensive income - - - 71,842,500.00 - -80,861,190.29 - -9,018,690.29
(II) Capital contribution and withdrawals by
- - - - - - - - - - -
owners
i.Capital contributions from owners - - - - - - - - - - -
ii.Capital contribute from other equity
- - - - - - - - - - -
instrument holders
iii.Share-based payment recorded in owner's
- - - - - - - - - - -
equity
iv.Others - - - - - - - - - -
( III).Profits distribution - - - - - - - - - - -
i.Appropriation to surplus reserve - - - - - - - - - - -
Including:Statutory surplus reserve - - - - - - - - -
Optional surplus reserve - - - - - - - - - - -
ii.Appropriation of provision for general
- - - - - - - - - - -
risks
iii.Profit distribution to equity owners - - - - - - - - - - -
iv.Others - - - - - - - - - - -
(V).Transfer within owner's equity - - - - - - - - - - -
i.Capital reserve transferred to paid-in capital - - - - - - - - - - -
ii.Surplus reserve transferred to paid-in
- - - - - - - - - - -
capital
iii.Recover of loss by surplus reserve - - - - - - - - - - -
iv.Others - - - - - - - - - - -
IV. Closing balance of the year 426,745,404.00 - 337,276,496.52 - 125,127,595.63 - 109,487,064.39 - -628,364,574.11 - 370,271,986.43
The accompanying notes form an integral part of the financial statements.
Legal representative: Principal in charge of accounting: Head of the accounting department:
Hainan PEARL RIVER Holding Company Limited
Notes on the Financial Statements for the Year 2015
I． General information
Hainan Pearl River Holding Company Limited, referred to as ‘the Company’ or ‘Pearl River Holding’, grew out of the lawful
re-registration by the original Hainan Pearl River Industry Company Limited on January 11 1992. The re-registration was based
on the document of Qiong Fu Ban [1992] No.1 issued by the General Office of Hainan People’s Government and City
Management Office Qiong Yin [1992] No. 6 issued by the People’s Bank of Hainan province. By the time when the re-registration
took place, the Company issued a total amount of 81,880,000 shares, among which 60,793,600 shares were folded from the
predecessor’s net assets while the rest amount, 21,086,400 shares, were newly issued and were listed on Shenzhen Stock
Exchange according to the document of securities administration office [1992] No. 83 issued by the People's Bank of China in
December 1992. The parent company of the Pearl River Holding, the Guangjiang Industrial Company held the amount of
36,393,600 shares in 1992, equivalent to a shareholding ratio of 44.45%. The business license registration number is 20128455-6
and the company is defined as belonging to the real estate industry.
On 25th March 1993, approved by the Hainan joint-stock system pilot leading group office with the supporting document of Qiong
joint-stock office [1993] No.028 and the Shenzhen special economic zone branch of the People’s Bank of China with the
corresponding document of Shen People’s Bank Fu [1993] No.099, the company increased its share capital by stock-for stock:
five new shares for every ten shares held plus two freely delivered new shares. As a result, the share capital increased to
139,196,000 shares, of which the shareholder, Guangzhou Pearl River Industrial Company occupied 48,969,120 shares, holding an
equity stake of 35.18%.
In 1994, the equity capital was raised to the amount of 278,392,000 shares through delivering 10 new free shares for every 10
shares held. Guangzhou Pearl River Industrial Company occupied 97,938,240 shares, holding an equity stake of 35.18%.
In 1995, based on the approval stated at the document of Shenzhen BanFu [1995] No. 45 and Shenzhen BanFu [1995] No.12,
the company issued 50 million B shares. An incremental share capital was thus followed based on the fact that every 1.5 new
shares were generated for every ten B shares, resulting in the amount of 377,650,800 shares outstanding in total. Guangzhou
Pearl River Industrial Company occupied 112,628,876 shares, holding an equity stake of 29.82%.
In 1999, 112,628,976 shares that were held by the Guangzhou Pearl River Industrial Group Co., Company were transferred to
Beijing Wanfa Real Estate Development Company. Consequently, Beijing Wanfa Real Estate Development Company became the
first majority shareholder, holding the amount of 112,628,976 shares, which accounts for 29.82% of the total outstanding shares of
the company.
On 10th January 2000, with the Business License for Legal Person issued by the Hainan Administrative Bureau for Industry and
Commerce and the registration number 4600001006830 obtained, the name of the company was formally changed to Hainan Pearl
River Holding Company Limited.
August 17, 2006, with the implementation of equity division reform, an incremental of share capital to the total amount of
49.094604 million shares took place since additional shares were delivered to all shareholders based on a 10：1.3 （1.3 free new
shares for every 10 held）distribution regime. The total amount of shares outstanding was thus increased to 426,745,404 shares
with the Wanfa Real Estate Development Company occupying 107,993,698 shares, taking up the ownership percentage of 25.31%.
In 2007 and 2009, non-circulation stock shareholders paid back consideration for reform of the shareholder structure; the
corresponding value was respectively 3,289,780 and 1,196,000 shares of stock. Beijing Wanfa Real Estate Development Company
held an amount of 112,479,478 shares at the end of 2009, which was equivalent to an equity stake of 26.36%. In 2010, the
controlling shareholder Beijing Wanfa Real Estate Development Stock Limited Company changed its name to Beijing Wanfa Real
Estate Development Limited Liability Company. At the end of 2011, this dominant shareholder held an amount of 112,479,478
shares, equivalent to an ownership percentage of 26.36%.
Registered capital: RMB 426,745,400 Yuan
The business license number: 4600001006830
Office address: 29/F., Dihao Building, Pearl River Plaza, Binhai Avenue, Haikou, Hainan, the PRC.
Corporate representative: Zheng Qing
The operation scope: Industrial investment, tropical farming, aquaculture, real estate development and management, hotel
investment and management, material supply, construction equipment purchasing, leasing, hardware, chemical, trade of household
items, decoration, vehicle parking, and high-tech investment projects, investment in environmental protection projects, investment
advice. The company mainly engaged in real estate development and property management, which belong to real estate aspect.
The Company's basic organizational structure: General meeting of shareholders is the highest organ of power. Board of directors is
the executing agency. Supervisory board is the Company's internal auditing agency. General Manager is responsible for the
Company's daily operational management.
There are General Manager Office, Securities Department, and Tourism Real Estate Department, Financial Department,
Management Department, Auditing Department and others in the Company.
II． Preparation basis of simulated financial statement
Preparation of the financial statements is based on going concern postulate. Recognition and measurement comply with actual
transactions or events, and the Company prepares financial statements on these bases.
III． Accounting policies, accounting estimates and error correction of previous years
1. Announcement about compliance with Accounting Standards for Business Enterprises
The Company’s financial statements are prepared in accordance with the requirements of the Accounting Standards for Business
Enterprises, and they fairly and completely present the financial position, operation results, cash flow and other relevant
information of the Company.
2. Accounting year
Accounting year of the Group is the calendar year from January 1 to December 31. This report covers the period from January 1,
2015 to December 31, 2015.
3. Reporting currency
The Company’s reporting and presentation currency is Renminbi (“RMB”).
4. Business combinations
5.1. Where a business combination achieved in stages, such multiple transactions accounted as a package deal if one or more
following conditions are satisfied:
i. such transactions made simultaneously or after consider each other's effect;
ii. only such transactions made in whole,a complete commercial result achieved;
iii. one transactions made depend upon at least one other transaction;
iv. one transactions is not commercial invidually,but when consider with other transactions,it is commercial.
5.2. Business combinations involving enterprises under common control
（1）separate financial statement
The consideration is the cash given, non-montary assets transferred,liabilities incurred or assumed, and equity securities issued by
the acquirer in exchange for control of the acquiree.The initial cost of the long-term equity investment is the share of the
consolidated financial statements, at the acquisition date, of ultimate controlling parties’s net assets.The difference between the
initial cost of the long-term equity investment obtained and the consideration paid for the combination is adjusted to the share
premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against
retained earnings. If there is contingent consideration and need to recognize contingent assets or liabilities, the difference between
amounts of the contingent assets or liabilities and the subsequent settlement price is adjusted to the share premium in capital
reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Where a business combination involving enterprises under common control is achieved in stages that involve multiple transactions,
if such transaction is a package deal,the all transactions are accounted as a package deal to obtain control power. If not, at the
acquisition date, the difference between the initial cost of the long-term equity investment and the aggregate of the carrying
amount of the long-term equity investment held before acquisition date and the new consideration paied in order to achieve futher
equity is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any
excess shall be adjusted against retained earnings. As for the other comprehensive income relating to the equity held in the
acquiree before the acquisition date are not accounted untill dispose such investment.when disposed, adopt the basis,which is
same to investee dispose related assets or liabilities,to accounted. The other comprehensive income recognized on the changes of
other owner’s equity except for net profit, other comprehensive income and dividend declared are not accounted untill transferred
to investment income when dispose such investment.
Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction
costs associated with the issue of equity for the business combination are adjusted to the share premium in capital reserve. If the
share premium is not sufficient to absorb the difference, any excess shall be successively adjusted against surplus reserve and
retained earnings.
Transaction costs associated with the issue of debt securities for the business combination are included in the initially recognized
amounts of the debt securities.
If the combined parties praparied consolidated financial statements, the initial cost of the long-term equity investment is
determined on the basis of owner’s equity attributed to parent company.
（2）consolidated financial statements
The assets and liabilities obtained by the absorbing party in a business combination are measured at the carrying amount.
Where a business combination involving enterprises under common control is achieved in stages that involve multiple transactions,
if such transaction is a package deal,the all transactions are accounted as one tansaction to obtain control power.
If not, the long-term equity investment held by absorbing party before acquisition date and the profit or loss, other comprehensive
income and other equity changes recognized from the later of the acquisition date and the date on which absorbing party or
combined party ultimately controlled by same party to combining date offset beginning retained earnings of comparative financial
statements and current P/L respectively.
Where the accounting policy adopted by the combined party is different from that adopted by the combining party, the combining
party shall, according to accounting policy it adopts, adjust the relevant items in the financial statements of the absorbing party,
and shall, pursuant to the present Standard, recognize them on the basis of such adjustment.
5.3. Business combinations not involving enterprises under common control
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer in exchange for control of the acquiree.
The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc.
and other associated administrative expenses attributable to the business combination are recognized in profit or loss when they
are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in
the initially recognised amounts of the equity or debt securities.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the
difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the cost of
combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer firstly
reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and
measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest
in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or
loss for the current period.
Where a business combination not involving enterprises under common control is achieved in stages that involve multiple
transactions, the cost of combination is the sum of the consideration paid at the acquisition date and the fair value of the equity in
the acquiree held before the acquisition. The equity held in the acquiree before the acquisition date is remeasured at its fair value
at the acquisition date, with any difference between its fair value and its carrying amount being recognized as investment income,
and the other comprehensive income relating to the equity held in the acquiree before the acquisition date being transferred to
investment income.
5. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. All
subsidiaries(including separate entities controled parent company) should be included in the consolidated financial statements.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies
and the accounting period of the Company.
The consolidated financial statements are prepared on the basis of the financial statements of the Company and all of its
subsidiaries.
All significant intra-group balances and transactions are eliminated on consolidation.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders'
portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is still allocated against minority
interests.
For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the
consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate
controlling party.
Their operating results and cash flows from the beginning of the current reporting period are included in the consolidated income
statement and consolidated statement of cash flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under common control, the operating results
and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and
consolidated statement of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative figures
in the consolidated financial statements.
For a subsidiary disposed of by the Company, the operating results and cash flows before the date of disposal (the date when
control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
When the company loses control over a subsidiary due to disposal of equity investment or other reason, any retained interest is
re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received
on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively
calculated from the acquisition date according to the original proportion of ownership interests is recognized as investment income
in the period in which control is lost. Other comprehensive income associated with investment in the former subsidiary is
reclassified to investment income in the period in which control is lost.
6. Cash and Cash equivalents
Cash refers to cash on hand and demand deposits. “Cash equivalents” refer to short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk on change in value.
7. Foreign currency transactions
8.1. Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance
sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date
and those on initial recognition or at the previous balance sheet date are recognised in profit or loss for the period, except the
exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalisation are
capitalised as part of the cost of the qualifying asset during the capitalisation period.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot
exchange rates on the dates of the transactions; the amounts in functional currency remain unchanged.
Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is
determined. Difference between the re-translated functional currency amount and the original functional currency amount is
treated as changes in fair value including changes of exchange rate and is recognized in profit and loss or as other comprehensive
income included in capital reserve.The difference arising on available for sale non-monetary items is recognized in other
comprehensive income.
8.2. Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are translated from
the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are translated at the spot
exchange rate prevailing at the balance sheet date; shareholders' equity items except for retained earnings are translated at the spot
exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting the distribution
of profits are translated at the spot exchange rates on the dates of the transactions;The difference between the translated assets and
the aggregate of liabilities and shareholders' equity items is separately presented as the exchange differences arising on translation
of financial statements denominated in foreign currencies under the shareholders' equity in the balance sheet.
On disposal of the Company's entire interest in a foreign operation , the Company transfers the accumulated translation differences
that relating to translation of the financial statements of that foreign operation, presented in comprehensive income, to profit or
loss in the period in which the disposal occurs. As for part disposal ,the Company transfers the accumulated translation differences
that relating to translation of the financial statements to profit or loss in the period in proportion to the weight of part disposal
interest in a foreign operation.
8. Financial Instruments
Financial Instruments comprises financial assets,financial liabilities and equity instruments.
9.1. Classification of financial assets and financial liabilities
Financial instruments are classified into the following categories at initial recognition: financial assets(or liabilities) at fair value
through profit or loss, entrusted loans, receivables, available-for-sale financial assets and held-to-maturity investments, other
financial liabilities. The classification of financial assets depends on not only commercial substance in contract but also the
Company’s intention and ability to hold the financial assets.
9.2. Recognition and measurement
（3）Financial assets(or liabilities) at fair value through profit or loss ("FVTPL")
Financial assets or financial liabilities at FVTPL include financial assets or financial liabilities held for trading and those
designated as at fair value through profit or loss.
A financial asset or financial liabilities is classified as held for trading if one of the following conditions is satisfied:
(i) It has been acquired principally for the purpose of selling in the near term; or
(ii) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is
objective evidence that the Company has a recent actual pattern of short-term profit-taking; or
(iii) It is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative
that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market)
whose fair value cannot be reliably measured.
A financial asset or financial liabilities may be designated as at FVTPL upon initial recognition only when one of the following
conditions is satisfied:
(i) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result
from measuring assets (or liabilities)or recognizing the gains or losses on them on different bases; or
(ii) The financial asset(or liabilities) forms part of a group of financial assets (or liabilities)or a group of financial assets and
financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company's
documented risk management or investment strategy, and information about the grouping is reported to key management
personnel on that basis;
(iii) Hybrid instruments associated with embedded derivatives,except for embedded derivatives have not significant impact on
cash flow of hybrid instrument ,or obviously embedded derivatives should not be spilt from hybrid instrument.
(iv) Hybrid instruments associated with embedded derivatives,which are needed to split but not measurend separately at initial
acquisition date or at subsequent balance sheet date.
For financial assets and financial liabilities at FVTPL are initially measured at fair value, and transaction costs are immediately
recognized in profit or loss. Financial assets or financial liabilities at FVTPL are subsequently measured at fair value. Any gains or
losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognized in
profit or loss.
When dispose,the difference between fair value and initial cost are rcognized in investment income; besides,adjust gain or loss
from fair-value changes.
（4）Receivables
Accounts receivable arising from sale of goods or rendering of services are initially recognised at fair value of the contractual
payments from the buyers or service recipients.
Receivables are classified into the following categories: receivable, other receivables, notes receivable,advances to suppliers and
long-term receivables.
When the Comapny recover or dispose the accounts receivable, the difference between the proceeds received from the transaction
and their carrying amounts is recognised in profit or loss for the current period.
（5）Entrusted loans
Entrusted loans are recognized at the actual amounts that lent out by financial institutes as an agent. And the interest is accounted
on the accrual basis. If the previously recognized interest is overdue but not recover, cease to accrue and reverse it.
Entrusted loans are subsequently measured at lower of carrying amount and recoverable amount on the individual basis at the half
year or whole year ended date.
（6）Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that
the Company's management has the positive intention and ability to hold to maturity.Held-to-maturity investments are initially
measured at fair value, and transaction costs are included in their initial recognized amounts.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. effective interest
determined at acquisition date and keep remain unchanged in estimated period or appropriate shorter period.Gain or loss arising
from DE recognition, impairment or amortization is recognized in profit or loss. When dispose,the difference between proceeds
received from the transaction and their carrying amounts are rcognized in investment income.
（7）Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition as available for
sale, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or
held-to-maturity investments.
Available-for-sale financial assets are initially measured at fair value, and transaction costs are included in their initial recognized
amounts. Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial
assets are held, are recognized in investment gains.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from changes in the fair
value are recognized as other comprehensive income, except that impairment losses and exchange differences related to amortized
cost of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the financial assets are
derecognized, at which time the gains or losses are released and recognized in profit or loss.
9.3. Transfer of financial assets
The Company derecognizes a financial asset if the financial asset has been transferred and substantially all the risks and rewards
of ownership of the financial asset is transferred to the transferee; If not,continue to recognize as a financial asset.
When determine whether the transfer of financial assets satisfies DE recognition criteria or not,the substance over form should be
taken into consideration
For a transfer of a financial asset in its entirety that satisfies the DE recognition criteria, the difference between (1) the carrying
amounts of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain
or loss that has been recognized in other comprehensive income is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is
allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of
those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the
consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
been previously recognized in other comprehensive income, is recognized in profit or loss.
If a transfer of a financial asset are not satisfies the DE recognition criteria, such financial asset continuing involved in the
transferred financial asset and recognizes consideration as an financial liability.
9.4. Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is
discharged. An agreement between the Company (an existing borrower) and an existing lender to replace the original financial
liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. When the Company derecognizes a financial liability or a part of
it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized
and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
If the Company buy back part of financial liability,the carrying amounts of financial liability should be allocated between the
derecognized parts and continuing recognized parts in proportion to ratio of its fair value.The difference between the carrying
amount of part of the financial liability derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) is recognized in profit or loss.
9.5. Basis for fair values of the financial assets and financial liabilities
The fair value of financial assets and financial liabilities traded on active markets are determined with reference to quoted market
bid prices; The fair value of other financial assets and financial liabilities (excluding derivative instruments) are determined in
accordance with generally accepted pricing models based on
discounted cash flow analysis or using prices from observable current market transactions; The fair value of initial acquired or
derivative instruments are determined with reference to quoted market prices.
9.6. Impairment of financial assets(except for receivables)
The Company assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through
profit or loss. If there is objective evidence that a financial asset is impaired, the Company determines the amount of any
impairment loss.
Objective evidence that a financial asset is impaired includes the following observable events:
（1） Significant financial difficulty of the issuer or obligor;
（2） A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
（3） The Comapny, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the
borrower;
（4） It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
（5） The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
（6） Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in
the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the
decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes: -Adverse
changes in the payment status of borrower in the group of assets; Economic conditions in the country or region of the
borrower which may lead to a failure to pay the group of assets;
（7） Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates,
indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
（8） A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
The method for impairment loss of financial assets are set out below:
（1） Impairment of available-for-sale financial assets：
The Company assesses the available-for-sale equity instruments individually for impairment at balance sheet date. If the fair value
of the equity instruments are reduced to 50%(or over 50%) of the cost or less than its cost and lasts more than one year, the
impairment is recognized. If the the fair value of the equity instruments at the balance sheet date are less than 20% but more than
50% of the cost, the Company determines the impairment loss taking into account other related factors such as price fluctuation.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognized
directly in capital reserve is reclassified from the capital reserve to profit or loss. The amount of the cumulative loss that is
reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and
amortization) and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a
recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized,
the previously recognized impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity
instruments is recognized as other comprehensive income, while the amount of reversal of impairment loss on available-for-sale
debt instruments is recognized in profit or loss.
But for the impairment loss incurred on an investment in unquoted equity instrument (without a quoted price in an active market)
whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of
such an unquoted equity instrument, the impairment loss on such financial asset is not reversed once it is recognized.
（2） Impairment of held-to-maturity investments：
If there is objective evidence that a held-to-maturity investments is impaired, the difference between carrying amounts and present
value of estimated future cash flows is recognized as an impairment loss in profit or loss. If there is objective evidence of a
recovery in value of a held-to-maturity investments which can be related objectively to an event occurring after the impairment is
recognized, the previously recognized impairment loss is reversed. However, the reversal is made to the extent that the carrying
amount of the held-to-maturity investments at the date the impairment is reversed does not exceed what the amortized cost would
have been had the impairment not been recognized.
9.7. Offsetting financial assets and financial liabilities
Where the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities,
and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a
financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above
circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
9. Receivables
(1) Measurement method and the percentage of bad debts
Measurement method of bad debts: accounted with allowance method.
At the end of the period, impairment test shall be made on individual accounts receivable with significant amounts. If there is
objective evidence that they have been impaired, bad debt loss shall be recognized and provision for bad debts shall be made base
on the differences between book values and the present value of future cash flows.
For those individual accounts receivable without significant amounts at the end of the period, along with those accounts receivable
that have been tested individually but not impaired, the Company classifies them in line with similar credit risk characteristics into
several groups, and make a specific percentage of bad debts provision on the accounts receivable balances at balance sheet date.
On the basis of the actual loss rate of receivable accounts, with same or similar credit risk characteristics of accounts receivable
package in previous year, the Company also considers current situation and determine the percentage of bad debt provision.
Here is the Company’s bad debts provision policy:
Percentage of Accounts Receivable Percentage of Others Receivable
Ages
(%) (%)
Within 1 year (including 1 year, same as following) 2 2
1 year to 2 years 5 5
2 years to 3 years 10 10
3 years to 4 years 20 20
4 years to 5 years 30 30
Over 5 years 50 50
There is strong evidence that accounts receivable can’t be recovered or little possibility of recovery (it is unable to pay in the short
term due to bankruptcy, insolvent, serious shortage of cash flow, serious natural disasters and etc. ) as well as other evidences of
occurring loss, the Company can make full provision for the accounts receivable.
(2) The accounts receivable meeting the following criteria are recognized as bad debts:
For accounts receivable that are surely uncollectible, such as they can be written off as bad debts after the approval of the general
meeting of shareholders or the board of directors.
10.Inventories
(1) Inventories include: development cost (constructing development product), development product, finished goods, low-value
consumable supplies and etc. All inventories are calculated at actual cost when acquire. The issue of inventories is calculated
according to individual cognizance method. The low–value consumable supplies are amortized at one time. Inventories stock
physical count system: perpetual inventory method
Measurement method of land used for development: the land used for development is included in “Inventories - development
cost”.
Public facilities costs: public facilities such as schools, as well as public facilities fees acquired by government departments, the
cost is included in "development costs" and its apportionment and detailed calculation are in accordance with calculation objects
and cost items.
(2) For inventories at balance sheet date, the evaluation criteria should base on the lower value between costs and net values that
can be converted into cash. When net values that can be converted into cash are lower than costs, provision for impairment loss of
inventories shall be made and recorded into current profit and loss.
11.Long-term equity investment
12.1. Determination of investment cost
（1） For a long-term equity investment acquired through a business combination, please refer to Notes“ IV-4” in detail.
（2） Long-term equity investment acquired through other ways
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which is actually
paid. The initial cost consists of the expenses directly relevant to the obtainment of the long term equity investment, taxes and
other necessary expenses.
The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the
equity securities issued. Transaction cost of issuing or obtaining equity directly attributed to euity transaction can subtract from
equity.
If the transaction is commercial in nature and fair values of both the assets received and surrendered can be reliably measured, the
fair value of the assets surrendered shall be the basis for the determination of the cost of the assets received, unless there is any
exact evidence showing that the fair value of the assets received is more reliable.Where any non-monetary assets transaction does
not meet the conditions as prescribed in above, the carrying value and relevant payable taxes of the assets surrendered shall be the
initial cost of a long-term investment obtained.
The initial cost of a long-term equity investment obtained by debt restructuring shall be ascertained on the basis of fair value.
12.2. Subsequent measurement and recognition of profit or loss
（1） A long-term equity investment accounted for using the cost method
For long-term equity investments over which the Company can exercise control, the Company accounts for such long-term equity
investments using the cost method. Under the cost method, a long-term equity investment is measured at initial investment cost.
Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actually paid
upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the
attributable share of cash dividends or profit distributions declared by the investee.
（2） A long-term equity investment accounted for using the equity method
TheCompany accounts for investment in associates and joint ventures using the equity method. An associate is an entity over
which the Group has significant influence and a joint venture is an entity over which the Group exercises joint control along with
other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair
value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where
the initial investment cost is less than the Comany's share of the fair value of the investee's identifiable net assets at the time of
acquisition, the difference is recognized in profit or loss for the period, and the cost of the longterm equity investment is adjusted
accordingly.
For long-term equity investments accounted for using the equity method, the Company recognises the investment income and
other comprehensive income according to its share of net profit or loss and other comprehensive income of the investee, and the
cost of the longterm equity investment is adjusted accordingly.The Company discontinues recognising its share of net losses of an
investee after the carrying amount of the long-term equity investment together with any long-term interests that, in substance,
form part of the investor’s net investment in the investee are reduced to zero. However, if the Company has obligations for
additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are
satisfied, the Company continues recognising the investment losses and the provisions. For changes in owners’ equity of the
investee other than those arising from its net profit or loss, other comprehensive income, and profit distribution, the Company
adjusts the book value of the investment and records capital surplus accordingly. The carrying amount of the investment is
reduced by the Company’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or
losses arising from the intra-company transactions amongst the Company and its investees are eliminated in proportion to the
Company’s equity interest in the investees, and then based on which the investment gains or losses are recognised. For the loss on
the intra-company transaction amongst the Company and its investees attributable to asset impairment,any unrealised loss is not
eliminated.
12.3. Basis for determing existence of control, jointly control or significant influence over investees
Control is the power to govern the financial and operating policies of the investee so as to obtain benefits from its operating
activities. In determining whether the Company is able to exercise control over the investee, the effect of potential voting rights
over the investee is considered, such as convertible debts and warrants currently exercisable, etc.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or
joint control over those policies.
12.4. The transfer of accounting methods
According to CAS No.22 – Financial Instrument Recognition and Measurement, if the investor can exert significant influence on
the investee or implement co-control but not solely-control, the cost of long-term investment shall be the fair value plus the newly
invested cost.
Where equity investment disposed part of equity and lose control over investee,the inveator can exert significant influence on the
investee or implement co-control but not solely-control, the cost of long-term investment shall be changed to use equity-method
and adjust the resudal equity investments as accounted with equity-method from acquisition date.
12.5. Disposal of long-term equity investments
On disposal of a long term equity investment, the difference between the proceeds actually received and receivable and the
carrying amount is recognized in profit or loss for the period. For a long-term equity investment accounted for using the equity
method, the amount included in the shareholders' equity attributable to the percentage interest disposed is transferred to profit or
loss for the period.
12.6. Impairment of long-term equity investments
The Group reviews the long-term equity investments at each balance sheet date to determine whether there is any indication that
they have suffered an impairment loss. If an impairment indication exists, the recoverable amounts are estimated. Recoverable
amount refers to the higher of net realizable value(fair value less disposal cost) and present value of expected future cash flow. If
such recoverable amount is less than its carrying amount, a provision for impairment losses in respect of the deficit is recognized
in profit or loss for the period.
Once an impairment loss is recognized for a long-term equity investment, it will not be reversed in any subsequent period.
12.Investment property
The term "investment property" refers to the real estates held for generating rent and/or capital appreciation, including: the right to
use any land which has already been rented; the right to use any land which is held and prepared for transfer after appreciation;
and the right to use any building which has already been rented. The initial measurement of the investment property shall be made
at its cost. An enterprise shall make a follow-up measurement to the investment real estate through the cost pattern. For buildings
which have already been rented, the Company calculates depreciation as the same method of fixed assets. For the right to use any
land, it is amortized with straight-line method according to the serviceable life. At the balance sheet date, where any evidence
shows that there is possible assets impairment, the impairment provision is made.
13.Fixed assets
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in production or supply of goods or services, for rental to others, or for
administrative purpose, and have useful lives more than one accounting year.
The expected discard expenses should be taken into consideration in the ascertainment of the cost of a fixed asset.
(2) The category and depreciation method of fixed assets
Fixed assets include buildings and structures, vehicles, general equipments, specific equipments and other equipments.
Straight-line method is in used to calculate the depreciation of fixed assets. The estimated useful lives, expected residual value and
annual depreciation rate of various types fixed assets are listed as follows:
Category Estimated useful lives (years) Expected residual value (%) Annual depreciation rate (%)
Buildings and structures 25 5 3.8
Vehicles 5 5 19.0
General equipments 10 5 9.5
Other equipments 5 5 19.0
Depreciation shall be made for the fixed assets on a monthly basis. Fixed assets increased this month shall make depreciation from
next month; fixed assets decreased this month shall stop making depreciation from next month.
The company shall, at least at the end of each year, have a check on the useful life, expected residual value and the depreciation
method of the fixed assets, and adjust them when necessary.
At the balance sheet date, where any evidence shows that there is possible assets impairment, the impairment provision is made
according to Notes II. 17.
(3) Idle fixed assets
Fixed assets that are not used for six months continuously due to underemployment or natural disasters are identified as idle fixed
assets (except for seasonal break).
The depreciation method of idle fixed assets is consistent with other fixed assets.
(4) Fixed assets under financing lease
When one or more of the following criteria are met, a lease shall be classified as a financial lease:
a. the lease transfers ownership of the leased asset to the lessee by the end of the lease term;
b. the lessee has the option to purchase the leased asset at a price that is expected to be sufficiently lower than the fair value at the
date the option becomes exercisable such that, at the inception of the lease, it is reasonably certain that the option will be exercised
by the lessee;
c. the lease term is for the major part of the useful life of the leased asset even if title is not transferred;
d. in the case of the lessee, at the inception of the lease the present value of the minimum lease payments amounts to substantially
all of the fair value of the leased asset; in the case of lesser, at the inception of the lease the present value of the minimum lease
receipts amounts to substantially all of the fair value of the leased asset;
e. the leased assets are of a specialized nature such that only the lessee can use them without major modifications being made.
Fixed assets under financing lease shall be recorded at the lower one of the fair value of the leased asset and the present value of
the minimum lease payments. The depreciation method is consistent with fixed assets of the Company.
14.Construction in progress
Construction in progress (“CIP”) includes all costs incurred during the preparation period before commencement of construction
and until the asset is ready for its intended use. These costs include direct materials, direct labour, equipment for installation,
construction and installation charges, management fees, gain or loss on trial run production and borrowing costs which are
qualified for capitalization.
CIP is transferred to fixed assets when the asset is ready for its intended use.
At the balance sheet date, where any evidence shows that there is possible CIP impairment, the impairment provision is made
according to Notes II.17.
15.Borrowing Costs
Borrowing costs are interest and other related costs incurred by the Company in connection with the borrowing of funds, and
include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the
arrangement of borrowings, and exchange differences arising from foreign currency borrowings. Borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of that asset.
The amounts of other borrowing costs incurred shall be recognized as an expense in the period in which they are incurred.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period of time
for acquisition, construction or production to get ready for their intended use or sale. The capitalization of borrowing costs can
commence only when all of the following conditions are satisfied: (1) expenditures for the asset are being incurred; (2) borrowing
costs are being incurred; (3) activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization
of the borrowing costs shall be ceased; then the borrowing costs incurred shall be recorded into the profits and losses of the
current period. Borrowing costs due to loans from real estate development are recorded into development cost before the
completion of the project and recorded into current profit and loss after the completion of the project. Borrowing costs are
recorded into development cost and amortized quarterly.
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during
such period shall be recognized as expenses, and shall be recorded into the profits and losses of the current period.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as
follows:
(1) for a specific-purpose borrowing, the amount of interest to be capitalized shall be the actual interest expense incurred for the
period less temporary deposit’s interest or investment income;
(2) Where funds are borrowed under general-purpose borrowings, the Company shall determine the amount of interest to be
capitalized by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the asset
over and above the amounts of specific-purpose borrowings. The capitalization rate shall be the weighted average of the interest
rates applicable to the general-purpose borrowings.
16.Intangible assets
The term "intangible assets" refers to the identifiable non-monetary assets possessed or controlled by enterprises which have no
physical shape. If it is unable to forecast the period when the intangible asset can bring economic benefits to the enterprise, it shall
be regarded as an intangible asset with uncertain service life. The intangible assets shall be initially measured according to its cost.
If it is unable to determine the expected realization pattern reliably, intangible assets shall be amortized by the straight-line method.
An enterprise shall, at least at the end of each year, check the service life and the amortization method of intangible assets with
limited service life, and adjust them when necessary. Intangible assets with uncertain service life may not be amortized. An
enterprise shall check the service life of intangible assets with uncertain service life during each accounting period. Where any
evidence shows that there is possible assets impairment, the impairment provision is made.
17.Long-term prepaid expenses
Long-term prepaid expenses mainly include spending paid with the benefit period of more than one year (excluding the year
period) such as car parking fees, housing renovation fees, etc. Long-term prepaid expenses shall be amortized the costs over the
duration of the project beneficiary.
18.Contingencies liabilities
The obligation pertinent to a Contingencies shall be recognized as accrued liabilities when the following conditions are satisfied
simultaneously: (1) That obligation is a current obligation of the enterprise; (2) It is likely to cause any economic benefit to flow
out of the enterprise as a result of performance of the obligation; (3) The amount of the obligation can be measured in a reliable
way. The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the
performance of the current obligation.
19.Revenue recognition
20.1. Revenue from sale of goods
Revenue from sale of goods is recognised when (1) the Group has transferred to the buyer the significant risks and rewards of
ownership of the goods; (2) the Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold; (3) the amount of revenue can be measured reliably; (4) it is probable that the
associated economic benefits will flow to the Group; and (5) the associated costs incurred or to be incurred can be measured
reliably.
Where the receivable is delayed beyond the normal credit conditions, which is of financing intention, the revenue shall be
determined on the basis of the fair value of the contract or agreement price.
Real estate sales revenue: the Company can recognize real estate sales revenue after the completion and acceptance of the property,
signing sale contract, acquiring payment proof from buyer and delivery. When the buyer receives written delivery notice and has
no warrant to refuse to accept it, the sales revenue is realized after delivery limit closed of delivery notice. For the development
project consigned by other, as well as in accordance with “Accounting Standards for Business Enterprises -Construction Contract",
the revenue shall be recognized in light of the percentage-of- completion method. The percentage-of- completion is determined by
the proportion of finished workload.
Revenue from rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the
transaction shall be recognized by reference the stage of completion of the transaction at the reporting date. The stage of
completion of the transaction is recognized according to the proportion of the cost having taken place occupied the estimated total
cost.
The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the associated economic benefits will flow to the enterprise;
the stage of completion of the transaction can be measured reliably;
the costs incurred and to be incurred for the transaction can be measured reliably
When the outcome of a transaction involving the rendering of services cannot be estimated reliably at the balance sheet date: when
the costs incurred are expected to be recoverable, revenue shall be recognized to the extent of costs incurred and an equivalent
amount shall be charged to profit or loss as service costs; when the costs incurred are not expected to be recoverable, the costs
incurred shall be recognized in profit or loss for the current period and no service revenue shall be recognized.
The revenue of property management service is recognized when following conditions are satisfied: the property management
service has been offered; the associated economic benefits will flow to the enterprise; the associated costs can be measured
reliably.
Transfer of asset with buy-back condition
The company determined whether sale of goods or transfer of assets with buy-back condition in contract is satisfy criterias of
revenue recognition or not according to clauses of agreement. If it is a financing transaction, revenue are not be recorded. The
amount of buy-back price after sales price is recognized in financial cost during the term of buy-back.
Government grants
Government grants shall be recognized at fair value on the conditions that the Company can receive the grant and comply with the
conditions attaching to the grant. For a government grant related to income, if the grant is a compensation for related expenses or
losses to be incurred by the Company in subsequent period, the grant shall be recognized as deferred income, and recognized in
profit or loss over the periods in which the related costs are recognized. A government grant related to an asset shall be recognized
as deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
Recognition of deferred income tax assets and liabilities
(1) The Company shall recognize the deferred income tax assets arising from a deductible temporary difference to the extent of the
amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary
difference. However, the deferred income tax assets, which are arising from the initial recognition of assets or liabilities during a
transaction which is simultaneously featured by the following, shall not be recognized:
(i) This transaction is not business combination; and
(ii) At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the deductible loss) be
affected.
(2) Where the deductible temporary difference related to the investments of the subsidiary companies, associated enterprises and
joint enterprises can meet the following requirements simultaneously, the enterprise shall recognize the corresponding deferred
income tax assets:
(i) The temporary differences are likely to be reversed in the expected future; and
(ii) It is likely to acquire any amount of taxable income tax that may be used for making up the deductible temporary differences.
(iii) As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred income tax
assets shall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax
deduction to be likely obtained.
(3) Recognition of deferred income tax liabilities
Except for the deferred income tax liabilities arising from the following transactions, an enterprise shall recognize the deferred
income tax liabilities arising from all taxable temporary differences:
(i) The initial recognition of business reputation;
(ii) The initial recognition of assets or liabilities arising from the following transactions which are simultaneously featured by the
following:
(a) The transaction is not business combination;
(b) At the time of transaction, the accounting profits will not be affected, nor will the taxable amount (or the deductible loss) be
affected.
(4) The income taxes of the current period and deferred income tax of an enterprise shall be treated as income tax expenses or
incomes, and shall be recorded into the current profits and losses, excluding the income taxes incurred under the following
circumstances:
(i) The business combination; and
(ii) The transactions or events directly recognized as the owner's rights and interests.
(5) Impairment on the deferred income tax assets
On the balance sheet date, the carry amounts of the deferred income tax assets shall be reviewed.
Maintenance fund
The Company’s property management company receives and manages public maintenance fund consigned by owners, and charges
to “agency fund”. The fund is used in the maintenance and update of the common apparatus and common position of the house
and communal facilities of property management region.
Quality assurance reserve funds
Construction party should remain quality assurance reserve funds according to the amount in the construction contract, and list in
"accounts payable". The funds should be paid according to the actual conditions and contract after guarantee period.
Changes of accounting policies and accounting estimates and error correction
IV． Changes of significant accounting policies and accounting estimates and prior error correction
1. Changes of accounting policies
No alteration of accounting policies occurred in the report period.
2. Changes in accounting estiminations
No alteration of accounting estiminations occurred in the report period.
3. Corrections of previous period critical errors
No corrections of previous period critical errors occurred in the report period.
V.Taxation
The main taxes include: business tax, city construction and maintenance tax, education fee, income tax and etc. The tax rates are
as following:
Category Rate Taxable base
Value-added tax 17% Sales of goods or rendering of taxable services
Revenue of house property sale and lease, property management
Business tax 5%
income and etc.
Business tax 3% Revenue of culture and sports
Business tax 20% Revenue of entertainment
City construction and maintenance tax 5%, 7% Business tax and value-added tax
Education fee 3% Business tax and value-added tax
Income tax 10%, 25% Taxable income
Note: For the year 2015, except that income tax of companies in Mudanjiang Jingbohu Wanjia Hotel Co., Ltd is levied at 10% of
taxable income, the income tax of other companies is levied at 25% of taxable income.
VI.Business combinations and consolidation financial statements
The Company shall include all subsidiaries within the scope of consolidation.
The consolidated financial statements shall be prepared by parent based on the financial statements of the parent and its
subsidiaries, using other related information and after adjusting the long-term equity investments in subsidiaries using the equity
method according to “Accounting Standard for Business Enterprises No.33—Consolidated Financial Statements”.
1. Subsidiaries established by the Company
Registered Amount
Registered capital Holding Voting rights invested by the
Subsidiary’s name Principal activities
address (RMB proportion proportion Company
0’000) (RMB 0’000)
Hainan Pearl River
Hainan Properties and Hotels
Properties and Hotels 500 98% 98% 490
Haikou Management
Management Co., Ltd.
Hainan Pearl River Hainan Gardens engineering
100 100% 100% 100
Environmental Projects Co.,Ltd. Haikou construction
Hainan Pearl River Estate Hainan
50 Cleaning projects 100% 100% 50
Cleaning Company Haikou
Hainan Pearl River Estate Mechanical and
Hainan
Machine Engineering 150 electrical products 100% 100% 150
Haikou
Company sales
Hainan Pearl River Estate Hainan Real Estate Marketing
100 100% 100% 100
Marketing Co., Ltd. Haikou Planning
Sanya Wanjia Hotel
Hainan Sanya 12,000 Hotel service 100% 100% 12,000
Management Co., Ltd.
Real estate
Hubei Pearl River Real Estate
Hubei Wuhan 7,222 development and 89.2% 89.2% 6,442
Development Co., Ltd.
management
Wuhan Pearl River Meilin Hotels Hubei Wuhan 50 Service 100% 100% 50
Registered Amount
Registered capital Holding Voting rights invested by the
Subsidiary’s name Principal activities
address (RMB proportion proportion Company
0’000) (RMB 0’000)
Management Co.,
Ltd.
Hainan Pearl River Real estate
Holding( Shanghai )Real Estate Shanghai 4,000 development and 100% 100% 4,000
Co.,Ltd. management
Beijing Jiubo Culture Development Cultural and sports
Beijing 500 100% 100% 500
Co., Ltd. services
Mudanjiang Pearl River Wanjia
Tourism Investment Development Mudanjiang 6,000 Hotel management 100% 100% 6,000
Group
Mudanjiang Wanjia Star Hotel Co.,
Mudanjiang 50 Hotel service 100% 100% 50
Ltd.
Mudanjiang Jingbohu Wanjia Hotel
Mudanjiang 50 Hotel service 100% 100% 50
Co., Ltd.
Heilongjiang Longshi Pearl River Operation of Movie
Harbin 700 70% 70% 490
Culture Communication Co., Ltd and TV base
Harbin Wanjia Travel Agent Harbin 30 touring 100% 100% 30
Shanghai Sea Pearl Property
Shanghai US $ 20 Property management 50% 50% 83
Management Co., Ltd.
Real estate
Hebei
Hebei Zhengshi Qinghui Real Estate 1,000 development and 51% 51% 510
Shijiazhuang
Development Co., Ltd. property services
Hailin Wanjia Snowtown Holiday Heilongjiang
2,000
Hotel Management Co., Ltd. Hailin
VII.Notes to significant items of the consolidated financial statements
（All amounts are stated in RMB Yuan unless otherwise stated）
Note 1 Currency Funds
Items Closing Balance Opening Balance
Cash in treasury 620,470.49 1,255,008.79
Bank deposit 205,111,692.83 96,091,882.06
Other monetary funds 29,968.22 57,301.77
Total 205,762,131.54 97,404,192.62
In which covers the currency funds restricted as follows:
Items Closing Balance Opening Balance
Fixed deposit or call deposit used for the pledge 0.00 20,000,000.00
Total 0.00 20,000,000.00
The Company had paid off all its debts borrowed from China Industrial International Trust Limited on December 3, 2015, so the
pledge was released.
Note 2 Accounts receivable
1) Disclosure of category details of accounts receivable:
Categories Closing Balance
Book Balance Provision for Bad Account
Ratio Book Value
Amounts Amounts Rate Chargeable（%）
(%)
Accounts receivable with
significant single amount and 7,761,707.60 27.46 7,761,707.60 100.00
individual provision for bad debts
Accounts receivable with
combinational withdrawal of the
18,244,347.09 64.54 1,353,019.47 7.42 16,891,327.62
bad debt provision by credit risks
characteristics
Accounts receivable with
non-significant single amount and 2,261,420.02 8.00 1,990,766.02 88.03 270,654.00
individual provision for bad debts
Total 28,267,474.71 100.00 11,105,493.09 ----- 17,161,981.62
Continued：
Opening Balance
Categories Book Balance Provision for Bad Account
Ratio Book Value
Amounts Amounts Rate Chargeable（%）
(%)
Accounts receivable with significant
single amount and individual 7,761,707.60 33.54 7,761,707.60 100.00
provision for bad debts
Accounts receivable with
combinational withdrawal of the bad
13,384,482.99 57.83 1,012,770.55 7.57 12,371,712.44
debt provision by credit risks
characteristics
Accounts receivable with
non-significant single amount and 1,997,260.02 8.63 1,990,680.02 99.67 6,580.00
individual provision for bad debts
Total 23,143,450.61 100.00 10,765,158.17 ----- 12,378,292.44
Description of categories of accounts receivable：
(1) Accounts receivable with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name Provision for Bad
Accounts Receivable Rate Chargeable（%） Reasons of Withdrawal
Account
Hainan dragon film studio 1,046,985.40 1,046,985.40 100.00 Irrecoverable
Hainan Baoping company 2,218,494.43 2,218,494.43 100.00 Irrecoverable
Hainan racing entertainment Co., LTD 2,406,158.00 2,406,158.00 100.00 Irrecoverable
Hainan centaline property agency 2,090,069.77 2,090,069.77 100.00 Irrecoverable
7,761,707.60 7,761,707.60 -----
(2) Accounts receivable in the combination which adopts aging analysis method to determine provision for bad debt:
Closing Balance
Aging
Accounts Receivable Provision for Bad Account Rate Chargeable（%）
Within 1 year 12,701,815.74 254,036.31 2.00
1－2 years 1,307,984.56 65,399.23 5.00
2－3 years 1,515,278.05 151,527.81 10.00
3－4 years 1,187,553.93 237,510.79 20.00
4－5 years 606,560.39 181,968.12 30.00
Over 5 years 925,154.42 462,577.21 50.00
Total 18,244,347.09 1,353,019.47 -----
Continued：
Opening Balance
Aging
Accounts Receivable Provision for Bad Account Rate Chargeable（%）
Within 1 year 7,894,072.87 157,881.46 2.00
1－2 years 2,455,484.98 122,774.26 5.00
2－3 years 1,381,714.43 138,171.44 10.00
3－4 years 705,715.14 141,143.03 20.00
4－5 years 104,737.15 31,421.15 30.00
Over 5 years 842,758.42 421,379.21 50.00
Total 13,384,482.99 1,012,770.55 -----
(3) Accounts receivable with non-significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name Provision for Bad
Accounts Receivable Rate Chargeable（%） Reasons of Withdrawal
Account
Haikou Peijie clothing company 497,520.00 497,520.00 100.00 Irrecoverable
Hainan International silver city Real
451,712.00 451,712.00 100.00 Irrecoverable
estate company
Haikou Jingye trading development
250,000.00 250,000.00 100.00 Irrecoverable
company
Hainan Jinhe Real estate company 119,446.00 119,446.00 100.00 Irrecoverable
Ctrip 228,100.00 Irrecoverable
Hainan Qiongshan Tianxin Pawn
112,116.50 112,116.50 100.00 Irrecoverable
Investment company
Withdrawn as per the
Amount below RMB100000 (23 units) 602,525.52 559,971.52 92.94 estimated non-recoverable
amount
Total 2,261,420.02 1,990,766.02 -----
2) Situation of the current bad debt provision withdrawn, recovered or reversed:
The amount of current bad debt provision withdrawn was RMB340,334.92 yuan.
3) There is no money owed by the shareholders who hold more than 5% (5% is included) of voting shares of the Company
in the closing accounts receivable.
4) Top 5 units of accounts receivable of the closing balance gathered on the basis of parties which owe the money:
Ratio in Closing Amount of Bad Account Provisions
Name Closing Balance
Accounts Receivable (%) Withdrawn
Hainan racing entertainment Co., LTD 2,406,158.00 8.51 2,406,158.00
Hainan Baoping company 2,218,494.43 7.85 2,218,494.43
Hainan Zhongyuan tenement agency company 2,090,069.77 7.39 2,090,069.77
Hunan Railway Lianchuang Technology
3,624,599.21 12.82 72,491.98
Development Co., Ltd.
Sino (Zhengzhou) Real Estate Co., Ltd. 3,042,414.00 10.76 71,548.44
Total 13,381,735.41 47.33 6,858,762.62
Note 3 Advance payment
1) Advance payment is listed as per the aging.
Closing Balance
Aging
Accounts Paid in Advance Ratio （%） Provision for Bad Account
Within 1 year 50,234,581.47 43.57
1－2 years 881,530.07 0.77
2－3 years 6,437,794.95 5.58 5,800,000.00
Over 3 years 57,733,198.41 50.08 1,250,161.00
Total 115,287,104.90 100.00 7,050,161.00
Continued：
Opening Balance
Aging
Accounts Paid in Advance Ratio （%） Provision for Bad Account
Within 1 year 64,433,201.92 50.10
1－2 years 6,456,359.45 5.02
2－3 years 5,907,269.00 4.59
Over 3 years 51,828,529.41 40.29
Total 128,625,359.78 100.00
2) Description on the reasons why the advance payment whose aging is more than one year and amount is significant fails
to be timely settled accounts
Name Closing Balance Aging Reasons why to fail to be settled timely
Haikou Hongzhou Real Estate Development
50,000,000.00 over 5 years Not check and accept the house
Unrelated Client
Dahailin Forestry Bureau 4,596,469.00 3-4 years Advance payment for the construction cost
Guangdong Angyang Technology Development
1,189,800.00 over 3 years Non-completion of engineering
Co., Ltd.
Harbin Chaoyang Tianxia Culture Transmission
500,000.00 2-3 years Money for the electronic devices
Co., Ltd.
Beijing Putian Yihua Technology 500,000.00 2-3 years Advance payment for the materials
Total 56,786,269.00
3) Top 5 units of advance payments of the closing balance gathered on the basis of parties for which the Company prepaid:
Ratio in the
Advance Payment
Name Closing Balance total advance Reasons why to be outstanding
Time
payment (%)
The house under the advance
Haikou Hongzhou Coastal Construction Co., Ltd. 50,000,000.00 43.37 over 5 years payment is not checked and
accepted temporarily
The money for the construction
Heilongjiang Mudanjiang Forestry Engineering
11,558,146.44 10.03 Within 1 year under the advance payment is
Company
outstanding temporarily
Jiangsu Nantong Second Construction Group Co.,
10,678,045.51 9.26 Within 1 year
Ltd.
The money for the construction
Wuhai Huatao Real Estate Brokers Co., Ltd. 9,700,000.00 8.41 Within 1 year under the advance payment is
outstanding temporarily
The money for the construction
State Grid----Wuhan Branch of Hubei Power
6,243,987.75 5.42 Within 1 year under the advance payment is
Company
outstanding temporarily
The money for the construction
Total 88,180,179.70 76.49 under the advance payment is
outstanding temporarily
4) Other descriptions on advance payment
According to the Arrangement agreed upon “Supplementary Agreement of Execution of Longzhu Phase-III Project” made by
between the Company and Haikou Real Estate Development Co., Ltd. (hereinafter referred to as “Hongzhou Real Estate”), the
Company prepaid with RMB50 million yuan for purchasing Longzhu Phase-III Project----Office Building covering 15000 square
meters with the qualified acceptance. On August 22, 2013, the Company and Hongzhou Real Estate, Haikou HongZhou Coastal
Construction Co., Ltd. (hereinafter referred to as “HongZhou Construction”), Haikou HongZhou Real Estate Group Co.,Ltd.
(hereinafter referred to as “HongZhou Group”) signed "Supplementary Agreement on the Implementation of Original Six
Agreements in Haikou Hongzhou Center Project ". The rights, obligations and legal responsibilities owned by HongZhou Real
Estate in the original contract are inherited by HongZhou Construction. The original guarantee contract signed by between the
Company and HongZhou Group shall continue to keep effective. HongZhou Group handed over the land and housing ownership
certificate of basement of Times Mansion of Sanya HongZhou Aiderui Hotel located in Yuya Road, Hedong District, Sanya City to
the Company for being held in trust. As at December 31, 2015, the second planning of this project had been approved, the
construction plan is in preparation at present, it is estimated to start the construction at the end of 2016.
5) There is no money owed by the shareholders who hold more than 5% (5% is included) of voting shares of the Company
in the closing accounts paid in advance.
Note 4 Dividends receivable
Investee Closing Balance Opening Balance
Hainan PEARL RIVER Tube-pile Co.,
260,015.00 260,015.00
Ltd.
Total 260,015.00 260,015.00
Note 5 Other receivables
1) Disclosure of category details of other receivables
Closing Balance
Categories Book Balance Provision for Bad Account
Ratio Book Value
Amounts Amounts Rate Chargeable（%）
(%)
Other receivables with significant single
amount and individual provision for bad 25,978,479.90 7.40 25,978,479.90 100.00
debts
Other receivables with combinational
withdrawal of the bad debt provision by 317,243,239.62 90.34 64,708,352.54 20.40 252,534,887.08
credit risks characteristics
Other receivables with non-significant
single amount and individual provision 7,922,155.40 2.26 4,420,651.45 55.80 3,501,503.95
for bad debts
Total 351,143,874.92 100.00 95,107,483.89 ----- 256,036,391.03
Continued：
Opening Balance
Categories Book Balance Provision for Bad Account
Ratio Rate Chargeable Book Value
Amounts Amounts
(%) （%）
Other receivables with significant single
amount and individual provision for bad 25,978,479.90 8.44 25,978,479.90 100.00
debts
Other receivables with combinational
withdrawal of the bad debt provision by 273,693,362.45 88.93 39,026,674.80 14.26 234,666,687.65
credit risks characteristics
Other receivables with non-significant
single amount and individual provision 8,106,146.85 2.63 4,420,829.95 54.54 3,685,316.90
for bad debts
Total 307,777,989.20 100.00 69,425,984.65 ----- 238,352,004.55
Description of categories of other receivables：
（1） Other receivables with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name Provision for Bad Reasons of
Other Receivables Rate Chargeable（%）
Account Withdrawal
Hainan Yangtze River Travel 1,000,000.00 1,000,000.00 100.00 Irrecoverable
Xinhua Liming Aviation Decoration
1,208,804.70 1,208,804.70 100.00 Irrecoverable
Company
Dabao Cement Factory 1,901,383.56 1,901,383.56 100.00 Irrecoverable
Hainan Shenhai Real Estate Co., Ltd. 1,029,850.32 1,029,850.32 100.00 Irrecoverable
Shenzhen State-Investment Securities
1,409,934.28 1,409,934.28 100.00 Irrecoverable
Co., Ltd.
Shenzhen Zhuce Real Estate Company 1,550,278.23 1,550,278.23 100.00 Irrecoverable
Sanya Land and Housing
1,000,000.00 1,000,000.00 100.00 Irrecoverable
Administration
Jinguang Real Estate Company 1,752,100.00 1,752,100.00 100.00 Irrecoverable
Dingjia International Co., Ltd. 2,725,702.71 2,725,702.71 100.00 Irrecoverable
Hainan Zhongda Real Estate Company 2,210,779.10 2,210,779.10 100.00 Irrecoverable
Hainan Enxin Industry Co., Ltd. 2,314,592.00 2,314,592.00 100.00 Irrecoverable
Haikou Industrial Development Import
1,392,430.00 1,392,430.00 100.00 Irrecoverable
and Export Co., Ltd.
Shenzhen Yinxiang Computers Co.,
6,482,625.00 6,482,625.00 100.00 Irrecoverable
Ltd.
Total 25,978,479.90 25,978,479.90 -----
（2） Other receivables in the combination which adopts aging analysis method to determine provision for bad debt:
Closing Balance
Aging
Other Receivables Provision for Bad Account Rate Chargeable（%）
Within 1 year 50,759,123.93 1,015,182.50 2.00
1－2 years 10,927,487.54 546,374.38 5.00
2－3 years 38,628,684.84 3,862,868.48 10.00
3－4 years 80,510,988.51 16,102,197.70 20.00
4－5 years 125,133,739.57 37,540,121.87 30.00
Over 5 years 11,283,215.23 5,641,607.61 50.00
Total 317,243,239.62 64,708,352.54 -----
Continued：
Opening Balance
Aging
Other Receivables Provision for Bad Account Rate Chargeable（%）
Within 1 year 16,615,861.48 332,317.22 2.00
1－2 years 40,137,294.33 2,006,864.72 5.00
2－3 years 80,522,251.84 8,052,225.18 10.00
3－4 years 125,133,739.57 25,026,747.92 20.00
4－5 years 10,167,939.34 3,050,381.80 30.00
Over 5 years 1,116,275.89 558,137.96 50.00
Total 273,693,362.45 39,026,674.80 -----
（3） Other receivables with non-significant single amount and individual provision for bad debts at the end of period
Closing Balance
Name Provision for Bad
Other Receivables Rate Chargeable（%） Reasons of Withdrawal
Account
Reserve fund ,personal social security
2,595,167.08 51,903.34 2.00 Management assertion
borrowed by the employees
Sell Dabao cement on a commission
560,610.00 560,610.00 100.00 Irrecoverable
basis
Hainan Development Bank 440,000.00 440,000.00 100.00 Irrecoverable
Hainan Sanli Industry and Trade
283,478.62 283,478.62 100.00 Irrecoverable
Company
Chamber of Commerce of Hainan
270,000.00 270,000.00 100.00 Irrecoverable
Province
Telephone rate of customers of PEARL
268,542.54 268,542.54 100.00 Irrecoverable
RIVER Square
China Construction Sixth Engineering
260,335.00 260,335.00 100.00 Irrecoverable
Division Group, Ltd
Huazhou Jianan Company 200,000.00 200,000.00 100.00 Irrecoverable
PEARL RIVER Advertisement
184,911.62 184,911.62 100.00 Irrecoverable
Company
Initial installation charge of telephone 156,271.60 156,271.60 100.00 Irrecoverable
Withdrawal of non-recoverable
Amount below RMB150000（87 units） 2,702,838.94 1,744,598.73 64.55
amount according to the estimate
Total 7,922,155.40 4,420,651.45 -----
2) Situation of the current bad debt provision withdrawn, recovered or reversed:
The amount of current bad debt provision withdrawn was RMB25,681,499.24 yuan.
3) There is no money owed by the shareholders who hold more than 5% (5% is included) of voting shares of the Company
in the closing other receivables.
4) Top 5 units of other receivables of the closing balance gathered on the basis of parties which owe the money:
Ratio in
Closing
Closing Balance of
Amount of
Name Nature of Money Closing Balance Aging Bad Debt
Other
Provisions
Receivables
(%)
Payment for the
Public Investment Co., Ltd 100,400,000.00 32.62 16,380,000.00
project
Payment for the
Beijing Kangtai Xingye Investment Co.,Ltd project and 102,500,000.00 33.30 16,250,000.00
intercourse funds
Payment for the
Singapore Great Land Holdings Co.,Ltd project and 66,981,016.24 9.75 1,500,000.00
intercourse funds
Shenzhen Yinxiang Computers Co., Ltd. Intercourse funds 6,482,625.00 3.13 2,210,359.17
Dingjia International Co., Ltd. Intercourse funds 2,725,702.71 2.11 6,482,625.00
Total 279,089,343.95 80.91 42,822,984.17
In 2011, “Agreement on Special Railway Sidings for Mulin Town as well as Coal Wholesale Market Construction Cooperation
Project” and supplementary agreement of project were signed by between the Company and Zhonghe Investment Co., Ltd.
(hereinafter referred to as “Zhonghe Investment”), which stipulate the joint investment of both parties in the special railway
sidings for Mulin town as well as coal wholesale market construction project. Under the agreement, the staged financing is
required from both parties, of which covers the upper limit investment amount for the PEARL RIVER Holding is RMB140
million. The Beijing Branch of Investment & Consultation Firm which belongs to the Company will supervise the use of license
and official seal of Zhonghe Investment. Both parties signed the supplementary agreement of investment in 2012, which stipulates
an additional increase of RMB37 million yuan contributed by the Company. As the project is not approved and initiated and
production line is not carried out really, the Company recovered the investment of RMB40 million yuan in 2013 and RMB36.6
million in 2014. Zhonghe Investment mortgaged the project land and real estate to the Company in 2014, but no registration of
mortgage was carried out.
The main intercourse funds between the Company and Beijing Kangtai Xingye Investment Co., Ltd. (hereinafter referred to as
“Kangtai Xingye”) consist of the money for cooperation of project. In 2011, the Company has signed a Cooperation Agreement
together with Beijing Kangtai Xingye Investment Co., Ltd. and the natural person, GU Lijun. Under this agreement, a project
company will be co-founded by the capital contribution of RMB70 million from the natural person and the capped capital
contribution of RMB64 million from the Company, with responsibility for the development and sales of the iron and ore resources
at Dujiawan Magnetite Iron Ore and Zhaojiayuan Iron Ore located at Shiyan City, Hubei Province. Kangtai Xingye used its own
70% of equities holding in Yuxi Shengying Mining, Zhongjia Sun Energy Technology (Group) Co., Ltd. used its own 10% of
equities holding in Yuxi Shengying Mining and Natural Person, GU Lijun used his own 70% of equities holding in Yuxi
Shengying Mining as the pledged collateral to the Company, but no registration of pledge was carried out. In 2012, according to
the progress of investment in the project, three parties signed a Supplementary Agreement which stipulated an additional increase
of investment of RMB36 million from the Company, those investments would be used for the upgrading of production lines in
above-mentioned two mining areas and building more production lines.
In May 2013 and August 2013, the Company has signed a Cooperation Agreement together with Singapore Great Land Holdings
Ltd. (hereinafter referred to as “Singapore Great Land”), According to this Agreement, the Company planned to develop the
Land No. 20 owned by Sanya PEARL RIVER Tube-pipe Co., Ltd. and located in Lizhigou Industrial Park, Hairun Road, Sanya
City. The Company has paid with RMB50 million for planning to become the assignee of 80% equities in the project company
owned by Singapore Great Land. In June 2015, the use certificate of this land was issued. At present, all parties are discussing for
the procedures of transferring ownership.
Note 6 Inventories
1) Classification of inventories
Closing Balance Opening Balance
Items Book Balance Provision for Fall in Book Value Book Balance Provision for Fall in Book Value
Price Price
Raw materials 3,842,806.40 3,842,806.40 3,598,674.74 3,598,674.74
Low-value
consumption 468,875.07 468,875.07 579,452.60 579,452.60
goods:
Finished goods 481,325.15 481,325.15 594,248.15 594,248.15
Constructing
development 505,152,399.54 17,439,325.19 487,713,074.35 338,221,729.16 338,221,729.16
product
Development
60,332,670.16 21,726,889.27 38,605,780.89 65,330,786.48 21,726,889.27 43,603,897.21
products
Consumptive
33,627.19 33,627.19 37,992.19 37,992.19
biological assets
Total 570,311,703.51 39,166,214.46 531,145,489.05 408,362,883.32 21,726,889.27 386,635,994.05
The closing book value of inventories used for the guarantee was RMB29,805,826.29 yuan, the details are set forth in Note 45
2) Provision for fall in price of inventories
Current Increase Current Decrease
Categories Opening Balance Closing Balance
Amount Amount
Amount Withdrawn Other Other
Reversed Written Off
Products
21,726,889.27 21,726,889.27
Developed
Constructing
development 17,439,325.19 17,439,325.19
product
Total 21,726,889.27 17,439,325.19 39,166,214.46
3) Description on capitalization of borrowing cost included in the closing balance of inventories
Current Decrease Capitalization rate
capitalized amoun
Name of Inventory Opening Balance Current Increase Decrease of Closing Balance
Other Decrease confirmed in this per
Sales (%)
Meilin Qingcheng
37,638,148.10 29,808,037.46 67,446,185.56 8.1
（Phase III）
Total 37,638,148.10 29,808,037.46 67,446,185.56 8.1
4) Development Cost
Estimated Total Investment
Name of Project Starting Time Closing Balance Opening Balance
Completion Time Estimated
Wuhan Meilin Qingcheng,
April 2013 June 2016 560,000,000.00 487,713,074.35 320,782,403
Phase III
Hebei New Residential
0.00 17,439,325
Project
Total 487,713,074.35 338,221,729
Phase III of Meilin Qingcheng of Hubei Real Estate owned by the subsidiary covers 18138 square meters of land area and 73363
square meters of construction area.
New Residential Project of Hebei Real Estate owned by the subsidiary is located in Luoling Community, Luquan City,
Shijiazhuang City, covers 1000 acres of land area and about 1600000 square meters of construction area, it is planned to cover
400000 square meters of construction area in Phase I with a building period of 3-5 years, no any progress was carried out because
the relocation plan is not completed.
5) Products Developed
Name of Project Completion Time Opening Balance Current Increase Current Decrease Closing Balance
Wuhan Meilin Qingcheng, Phase I August 2006 497,649.84 497,649.84
Wuhan Meilin Qingcheng, Phase
September 2009 12,115,770.23 4,998,116.32 7,117,653.91
II
Haikou Dijing Building, 6 floors In 1995 5,315,696.54 5,315,696.54
Haikou Longzhu Building, 21
In 2004 1,598,659.60 1,598,659.60
floors
Garage of Haikou PEARL RIVER
6,919,373.98 6,919,373.98
Square
Garage of Haikou Longzhu
In 2004 2,664,000.00 2,664,000.00
Building
Rear Cubicle of 954,436.94 954,436.94
Underground Garage of Shanghai
35,265,199.35 35,265,199.35
Rose Garden
Total 65,330,786.48 4,998,116.32 60,332,670.16
6) Consumptive Biological Assets
Item Closing Balance Opening Balance
Meat Animals 33,627.19 37,992.19
Item Closing Balance Opening Balance
Total 33,627.19 37,992.19
Note 7 Available-for-sale financial assets
1) Information of available-for-sale financial assets
Closing Balance Opening Balance
Item Book Balance Impairment Book Value Book Balance Impairment Book Value
Provision Provision
Available-for-sal
e equity
instruments：
Measured at fair
172,747,500.00 172,747,500.00
value
Measured at the
35,263,555.29 23,852,245.39 11,411,309.90 36,943,555.29 25,532,245.39 11,411,309.90
cost
Total 35,263,555.29 23,852,245.39 11,411,309.90 209,691,055.29 25,532,245.39 184,158,809.90
2) Available-for-sale financial assets measured at the fair value at the end of report period
There is no available-for-sale financial assets measured at the fair value at the end of reportperiod.
3) Equity instruments measured at the cost at the end of report period
Ratio of shares held in Book Balance
Investee the investee Current Current
(%) Opening Balance Closing Balance
Increase Decrease
Hainan PEARL RIVER Tube-pipe Co., Ltd. 1.33 426,315.00 426,315.00
Chamber of Commerce of Hainan Province 6.67 500,000.00 500,000.00
Zhong Wang Cu Technology Investment Co.,
Ltd. 10.00 10,000,000.00 10,000,000.00
Hainan Great Land PEARL RIVER
Foundation Work Co., Ltd. 2.00 160,000.00 160,000.00
Guangzhou PEARL RIVER Investment
Management Co., Ltd. 9.4785 18,177,240.29 18,177,240.29
Hainan Nanyang Ships Industry Co., Ltd. 0.66 1,680,000.00 1,680,000.00 0.00
Hainan Macun Port Company 15.00 6,000,000.00 6,000,000.00
Total 36,943,555.29 1,680,000.00 35,263,555.29
Continued：
Impairment Provision
Investee Current Current Current Cash Bonus
Opening Balance Closing Balance
Increase Decrease
Hainan PEARL RIVER Tube-pipe Co., Ltd.
Chamber of Commerce of Hainan Province 500,000.00 500,000.00
Impairment Provision
Investee Current Current Current Cash Bonus
Opening Balance Closing Balance
Increase Decrease
Zhong Wang Cu Technology Investment Co.,
Ltd. 10,000,000.00 10,000,000.00
Hainan Great Land PEARL RIVER Foundation
Work Co., Ltd.
Guangzhou PEARL RIVER Investment
Management Co., Ltd. 7,352,245.39 7,352,245.39
Hainan Nanyang Ships Industry Co., Ltd. 1,680,000.00 1,680,000.00 0.00
Hainan Macun Port Company 6,000,000.00 6,000,000.00
Total 25,532,245.39 1,680,000.00 23,852,245.39
Note 8 Long-term Equity Investment
Current Increase or Decrease
Investee Opening Balance Investment Results
Additional Contribution Adjustment of Other
Recognized by
Contribution Reduced Comprehensive Income
Equity Method
1. Associated Enterprises
Sanya Wanjia Industry Co., Ltd. 34,464,905.62 -653,142.80
Beijing Viewpoint Discovery Media
1,496,849.01 -23,850.19
Co., Ltd.
Sub-total 35,961,754.63 -676,992.99
Total 35,961,754.63 -676,992.99
Continued：
Current Increase or Decrease
Declared to grant Impairment Closing Balance of
Investee Change of Other Closing Balance
cash dividends or Provision Other Impairment Reserve
Equities
profits Withdrawn
1. Associated Enterprises
Sanya Wanjia Industry Co., Ltd. 33,811,762.82
Beijing Viewpoint Discovery Media
1,472,998.82
Co., Ltd.
Sub-total 35,284,761.64
Total 35,284,761.64
The Company’s long-term equity investment does not the situation that the capacity of remitting funds to the other companies is
restricted.
Note 9 Investment-based real estate
1) Information of investment-based real estate
Item Houses and buildings Land Use Right Construction in Progress Total
1. Book Value
1.1 Opening Balance 32,711,928.57 32,711,928.57
1.2 Current Increase
1.3 Current Decrease 322,062.78 322,062.78
（1）Disposal 322,062.78 322,062.78
1.4 Closing Balance 32,389,865.79 32,389,865.79
2. Accumulative Depreciation
(Amortization)
2.1 Opening Balance 7,402,113.93 7,402,113.93
2.2 Current Increase 1,118,828.71 1,118,828.71
Item Houses and buildings Land Use Right Construction in Progress Total
（1）Amount Withdrawn or
1,118,828.71 1,118,828.71
Amortized
2.3 Current Decrease 103,076.56 103,076.56
（1）Disposal 103,076.56 103,076.56
2.4 Closing Balance 8,417,866.08 8,417,866.08
3. Impairment Provision
3.1 Opening Balance 3,081,199.41 3,081,199.41
3.2 Current Increase
3.3 Current Decrease
（1）Disposal
3.4 Closing Balance 3,081,199.41 3,081,199.41
4. Book Value
4.1 Closing Book Value 20,890,800.30 20,890,800.30
4.2 Opening Book Value 22,228,615.23 22,228,615.23
2) Description on investment-based real estate
The closing book value of assets mortgaged was RMB16,159,860.73 yuan, the details are set forth in Note 45.
Note 10 Original value and depreciation of fixed assets
1) Information of fixed assets
Item Houses and buildings Common Equipments Transportation Other Equipments Total
1. Totality of Original
Book Value
1.1 Opening Balance 479,604,129.64 69,008,949.65 41,296,266.29 54,611,948.91 644,521,294.49
1.2 Current Increase 4,567,168.00 7,000.00 866,983.70 1,121,484.34 6,562,636.04
（1）Purchase 4,567,168.00 7,000.00 866,983.70 1,121,484.34 6,562,636.04
（ 2 ） Transferred in from
Construction in Progress
（3）Other Transfer-in
1.3 Current Decrease 1,377,944.00 5,793,196.88 1,224,171.99 8,395,312.87
（1）Disposal or Scrap 1,377,944.00 5,793,196.88 1,224,171.99 8,395,312.87
（2）Other Transfer-out
1.4 Closing Balance 484,171,297.64 67,638,005.65 36,370,053.11 54,509,261.26 642,688,617.66
2. Accumulative
Depreciation
2.1 Opening Balance 90,538,619.89 38,769,860.41 26,423,497.65 44,397,065.81 200,129,043.76
2.2 Current Increase 17,994,747.18 4,869,904.12 5,396,491.44 3,759,941.72 32,021,084.46
（1）Amount Withdrawn 17,994,747.18 4,869,904.12 5,396,491.44 3,759,941.72 32,021,084.46
2.3 Current Decrease 1,309,046.80 3,844,238.20 1,134,299.53 6,287,584.53
（1）Disposal or Scrap 1,309,046.80 3,844,238.20 1,134,299.53 6,287,584.53
（2）Other Transfer-out
2.4 Closing Balance 108,533,367.07 42,330,717.73 27,975,750.89 47,022,708.00 225,862,543.69
3. Impairment Reserve
3.1 Opening Balance 7,499,295.92 7,499,295.92
3.2 Current Increase
3.3 Current Decrease
3.4 Closing Balance 7,499,295.92 7,499,295.92
4. Totality of Book Value
4.1 Closing Book Value 368,138,634.65 25,307,287.92 8,394,302.22 7,486,553.26 409,326,778.05
Item Houses and buildings Common Equipments Transportation Other Equipments Total
4.2 Opening Book Value 381,566,213.83 30,239,089.24 14,872,768.64 10,214,883.10 436,892,954.81
2) Other descriptions on fixed assets
（1） The closing book value of assets used for the guarantee was RMB 270,870,000.31 yuan, the details are set forth in Note
45.
(2) The closing original value of fixed assets that continued to work after being depreciated fully was RMB57,279,076.29
yuan.
Note 11 Construction in progress
1) Information of construction in progress
Closing Balance Opening Balance
Item Impairment Book Impairment
Book Balance Book Value Book Value
Reserve Balance Reserve
Snow Town Train 550 5,648,964.09 2,400,000.00 3,248,964.09 5,648,964.09 1,800,000.00 3,848,964.09
Snow Town Train 400 4,180,000.00 1,600,000.00 2,580,000.00 4,180,000.00 1,200,000.00 2,980,000.00
Early Stage of Snow
360,000.00 360,000.00 360,000.00 360,000.00
Town
Snow Town Integrated
73,214,690.93 73,214,690.93 49,824,934.37 49,824,934.37
Service Center
Total 83,403,655.02 4,000,000.00 79,403,655.02 60,013,898.46 3,000,000.00 57,013,898.46
2) Current change of important constructions in progress
Current amount
Item Opening Balance Current Increase transferred into Other Decrease Closing Balance
fixed assets
Snow Town Integrated
49,824,934.37 23,389,756.56 73,214,690.93
Service Center
Total 49,824,934.37 23,389,756.56 73,214,690.93
Continued：
Ratio of
Budget Current
investment in Accumulative Including：
(10 Progress of Capitalization Sources of
Item the construction Interest Current Interest
thousand Construction (%) Rate of Interest Funds
in the budget Capitalized Capitalized
yuan) (%)
(%)
Snow Town
Borrowing
Integrated Service 10,605.84 69.03 13,567,288.74 5,791,224.37 6.81
from the Bank
Center
Total 10,605.84 69.03 —— 13,567,288.74 5,791,224.37 6.81
3) Information of withdrawal of impairment provision of construction in progress in this report period
Item Current Amount Withdrawn Reasons of Withdrawal
Snow Town Train 550 600,000.00 The progress of project starting fails to reach the expectation, which
Snow Town Train 400 400,000.00 causes the reduction of use value of assets
Total 1,000,000.00
Note 12 Materials for the construction
Item Closing Balance Opening Balance
Devices with Special Uses 393,706.60 393,706.60
Total 393,706.60 393,706.60
Note 13 Intangible Assets
1) Information of intangible assets
Item Software Land Use Right Trademark Right Other Total
1. Totality of Original
Book Value
1.1 Opening Balance 2,006,198.28 36,008,635.65 93,900.00 2,087,132.00 40,195,865.93
1.2 Current Increase 42,600.00 42,600.00
（1）Purchase 42,600.00 42,600.00
1.3 Current Decrease
1.4 Closing Balance 2,048,798.28 36,008,635.65 93,900.00 2,087,132.00 40,238,465.93
2. Accumulative
Depreciation
2.1 Opening Balance 1,274,327.66 6,937,976.32 5,477.50 405,883.78 8,623,665.26
2.2 Current Increase 223,429.57 917,014.44 9,390.00 34,412.92 1,184,246.93
（1）Amount Withdrawn 223,429.57 917,014.44 9,390.00 34,412.92 1,184,246.93
2.3 Current Decrease
2.4 Closing Balance 1,497,757.23 7,854,990.76 14,867.50 440,296.70 9,807,912.19
3. Impairment Reserve
3.1 Opening Balance 911,400.00 911,400.00
3.2 Current Increase
3.3 Current Decrease
3.4 Closing Balance 911,400.00 911,400.00
4. Totality of Book Value
4.1 Closing Book Value 551,041.05 28,153,644.89 79,032.50 735,435.30 29,519,153.74
4.2 Opening Book Value 731,870.62 29,070,659.33 88,422.50 769,848.22 30,660,800.67
2) Description of intangible assets
The closing book value of land use rights used for the guarantee or mortgage was RMB26,471,806.4 yuan, the details are set forth
in Note 45.
Note 14 Long-term deferred expenses
Current
Item Opening Balance Current Increase Other Decrease Closing Balance
Amortization
Decoration and Reform 7,725,319.09 31,950.00 2,938,349.57 4,818,919.52
Lease of Snow Park 2,100,000.00 900,000.00 1,200,000.00
Technical Service for Daisi Hotel 93,317.33 93,317.33 0.00
Publicity of Snow Town 128,333.45 61,599.96 66,733.49
Use of Fish Pool in Snow Town 823,711.02 278,826.00 544,885.02
Use of Small Skiing Park in Snow Town 1,187,725.15 379,219.92 808,505.23
Use of Facilities of Yangcao Mountain 470,000.00 120,000.00 350,000.00
Use of Recreation Facility of Cinema City
360,000.00 120,000.00 240,000.00
in Erlong Mountain
Total 12,888,406.04 31,950.00 4,891,312.78 8,029,043.26
Note 15 Deferred tax assets/deferred tax liabilities
1) Deferred tax liabilities not offset
Closing Balance Opening Balance
Item Taxable Temporary Taxable Temporary
Deferred Tax Liabilities Deferred Tax Liabilities
Differences Differences
Variation of Fair Value of
Available-for-Sale Financial Assets
The difference between the carrying
amount of the net assets and the fair value
2,516,911.15 629,227.79 2,699,608.38 674,902.10
of the identifiable net assets recognized in
business combinations
Total 2,516,911.15 629,227.79 2,699,608.38 674,902.10
2) Deferred tax assets/deferred tax liabilities presented in the net amount after the offsetting
Closing offset amount of Closing balance of deferred Opening offset amount of Opening balance of deferred
Item deferred tax assets and tax assets or liabilities after the deferred tax assets and tax assets or liabilities after the
liabilities offsetting liabilities offsetting
Deferred Tax Assets 15,210,270.77
Deferred Tax Liabilities 629,227.79 15,210,270.77 23,187,756.33
3) Details of deductible temporary difference of deferred tax assets not recognized
Item Closing Balance Opening Balance
Provision for Asset Impairment 191,773,493.16 141,942,172.81
380,511,206.66
Deductible Losses 377,242,517.95
Total 569,016,011.11 522,453,379.47
It is uncertain whether to obtain the sufficient taxable income in the future, so we did not recognize the deferred tax assets in
relevant to the deductible temporary difference and deductible loss.
4) Deductible losses for which no deferred tax assets are recognized will expire in the following
Item Closing Balance Opening Balance Remark
2015 44,225,740.37
2016 43,504,057.87 56,453,161.41
2017 70,183,647.33 98,393,343.38
2018 73,280,356.39 89,577,493.21
2019 98,440,117.30 91,861,468.29
2020 91,834,339.06
Total 377,242,517.95 380,511,206.66
Note 16 Other Non-current Assets
Category and Item Closing Balance Opening Balance
Properties 1,581,840.00 1,581,840.00
Total 1,581,840.00 1,581,840.00
Note: on September 20, 2014, an Agreement on Debt Offset was signed by between Mudanjiang Mingzhen Real Estate
Development Co., Ltd. (hereinafter referred to as “Mingzhen Company”), Mudanjiang Jingbo Lake Scenery Environmental
Production Property Management Co., Ltd. (hereinafter referred to as “Environmental Protection Property Company”) and our
subsidiary Mudanjiang Wanjia Star Hotel Co., Ltd.. Because the above-mentioned three parties have the debt relation with each
other, three parties reach an Agreement as follows: Mingzhen Company used its Shangjing Chuanshuo D12# brick-concrete villa
(located in Jingbo Lake Town) with a value of RMB1,581,840.00 (131.82 square meters x RMB12 thousand) offsetting the
compensation for the lease of RMB1,019,340.00 that Environmental Protection Property Company owed the Company, of which
covered a difference of RMB562,500.00 that had been recognized in the income for the year 2014, but no procedure of ownership
transfer was carried out as December 31, 2015.
Note 17 Provision of asset impairment
Current Increase Current Decrease Closing Balance
Item Opening Balance Current Current Current Current
Withdrawal Transfer-in Reverse Transfer-out
Bad debt provision 80,191,142.82 33,073,872.50 1,877.34 113,263,137.98
Provision for decline in value of inventories 21,726,889.27 17,439,325.19 39,166,214.46
Provision for impairment of
25,532,245.39 1,680,000.00 23,852,245.39
available-for-sale financial assets
Provision for impairment of
3,081,199.41 3,081,199.41
investment-based real estate
Provision for impairment of fixed assets 7,499,295.92 7,499,295.92
Provision for impairment of construction in
3,000,000.00 1,000,000.00 4,000,000.00
progress
Provision for impairment of intangible assets 911,400.00 911,400.00
Total 141,942,172.81 51,513,197.69 1,877.34 1,680,000.00 191,773,493.16
Note 18 Short-term Borrowing
Item Closing Balance Opening Balance
Pledged Loans 0.00 19,000,000.00
Total 0.00 19,000,000.00
Note 19 Accounts Payable
Item Closing Balance Opening Balance
Accounts Payable for the Construction 8,603,542.20 45,579,235.43
Accounts Payable for the Materials 6,290,670.38 1,496,150.14
Accounts Payable for the Local Guide 1,245,815.50
Final Payment of Investment 5,000,000.00 5,000,000.00
Deposit 1,178,601.33 574,545.37
Intercourse Payment for Suppliers 2,582,997.37 602,405.96
Other 657,672.12 4,080,468.08
Total 24,313,483.40 58,578,620.48
Significant accounts payable with aging of more than one year
Name Closing Balance Reasons of Outstanding Accounts
Lin Deying, Chen Guanwen 5,000,000.00 Final Payment for Desi Hotel in Snow Town
Supervision Company 3,572,235.33 No Urging Payment by Counterpart
Heilongjiang Juncheng Wood Manufacturing
2,073,495.01 Financial Strain
Co., Ltd.
Mudanjiang Longxiang Boiler Installation Co.,
1,425,651.00 Financial Strain
Lt.
Total 12,071,381.34
Note 20 Accounts Received in Advance
1) Information of accounts received in advance
Item Closing Balance Opening Balance
Item Closing Balance Opening Balance
Lease of Garage 13,271,791.17 13,904,770.50
Tourist Team 2,611,333.20 2,447,854.00
Heating 1,615,580.49 2,699,451.17
Cooperative Operation 3,151,256.99 2,579,910.00
Pre-deposit for Consumption 223,528.25 133,353.85
Property Management 9,972,544.08 3,959,916.97
Supporting of Heating Facilities 3,154,530.45
Houses in Pre-sell 393,459,984.00
Other 594,121.56 2,847,500.88
Total 428,054,670.19 28,572,757.37
2) Significant accounts received in advance with aging of more than one year
Name Closing Balance Reasons of Outstanding Accounts
Accounts received in advance with pending to be transferred in
Taxi Garage 12,991,791.17
（Hubei PEARL RIVER received the rent in advance）
Supporting of Heating Facilities 1,689,427.00
Total 14,681,218.17
Note 21 Remunerations payable for employees
1) List of remunerations payable for employees
Item Opening Balance Current Increase Current Decrease Closing Balance
Short-term Wage 9,683,578.02 162,589,411.98 158,992,668.98 13,280,321.02
Post-employment Benefit - Defined
6,421.69 12,220,905.35 12,158,379.40 68,947.64
Contribution Plans Payable
Dismiss Welfare 24,800.00 20,800.00 4,000.00
Total 9,689,999.71 174,835,117.33 171,171,848.38 13,353,268.66
2) List of Short-term Wage
Item Opening Balance Current Increase Current Decrease Closing Balance
Salary, Reward, Allowance and Subsidy 2,130,234.10 144,817,939.63 142,549,286.15 4,398,887.58
Employee Services and Benefits 6,461,873.95 6,461,873.95
Social Insurance Charges 2,344.32 5,982,024.83 5,953,157.17 31,211.98
Including：Basic Medical Insurance 2,038.52 5,212,719.87 5,188,337.67 26,420.72
Employment Injury Insurance 127.38 360,609.82 357,605.36 3,131.84
Maternity Insurance 178.42 396,796.14 395,315.14 1,659.42
Other 11,899.00 11,899.00
Housing Fund 10,974.00 1,885,831.90 1,804,367.50 92,438.40
Union Funds and Staff Training
7,540,025.60 3,392,530.36 2,174,772.90 8,757,783.06
Expense
Short-term Absence from Duty Paid 46,958.71 46,958.71
Other Short-term Wage 2,252.60 2,252.60
Total 9,683,578.02 162,589,411.98 158,992,668.98 13,280,321.02
3) List of Defined Contribution Plans
Item Opening Balance Current Increase Current Decrease Closing Balance
Item Opening Balance Current Increase Current Decrease Closing Balance
Basic Endowment Insurance 5,912.06 11,472,880.65 11,413,095.91 65,696.80
Unemployment Insurance 509.63 748,024.70 745,283.49 3,250.84
Total 6,421.69 12,220,905.35 12,158,379.40 68,947.64
Note 22 Taxes Payable
Item Closing Balance Opening Balance
Individual income tax -908,809.20 5,757,820.60
City construction and maintenance tax -33,603.19 430,008.45
Corporate income tax 505,401.42 -39,062.10
Property tax 617,550.29 -141,625.39
Business tax 93,587.79 170,091.31
Land use tax -5,878,951.29 -2,126,579.42
Increment tax on land value 260,668.02 175,810.93
Educational surtax -163,049.32 147,906.40
Others 251,541.85 228,906.70
Total -5,255,663.63 4,603,277.48
Note: The debit balance of current taxes payable mainly includes the taxes paid in advance for the houses resold by Bubei
PEARL RIVER Real Estate Company.
Note 23 Interest Payable
Item Closing Balance Opening Balance
Interest on Long-term Loans under Straight Mortgage 59,153,440.18 18,376,036.74
Interest on Loans from Other Companies 104,399,517.62 93,156,857.01
Interest on Entrusted Loans 12,437,889.25 10,449,888.49
Others 2,439,133.00 418,068.49
Total 178,429,980.05 122,400,850.73
Note 24 Dividends Payable
Reasons why not to be paid over
Item Closing Balance Opening Balance
one year
Dividends payable for the legal person 3,213,302.88 3,213,302.88 Suspend payment
Total 3,213,302.88 3,213,302.88
Note 25 Other Payables
1) Other payables presented as per the nature of accounts
Nature of Account Closing Balance Opening Balance
Borrowing 420,603,739.10 627,784,756.31
Payment for land transfer 43,000,000.00 43,000,000.00
Collection for property management 53,147,608.29 26,485,268.25
Money owned by the suppliers 1,854,276.29 12,280,414.57
Accrued Expenses 5,568,338.41 7,916,400.00
Deposit for Quality of Decoration 8,415,340.21 5,167,661.14
Maintenance Fund 2,956,074.81 2,559,260.74
Funds Raised for Houses 2,770,000.00
Nature of Account Closing Balance Opening Balance
Risk Funds of Employees 1,136,920.09
Working Fund of Water and Electricity 4,514,698.79
Others 17,311,963.69 55,165,761.07
Total 561,278,959.68 780,359,522.08
2) Significant other payables with aging of more than one year
Name Closing Balance Reasons of Outstanding Accounts
Beijing Xinxing Real Estate Development General
156,497,912.90 The borrowing is not expired
company
Beijing Wangfa Real Estate Development Holdings
78,525,000.00 The borrowing is not expired
Co., Ltd
Chongqing international trust co., LTD 15,363,107.53 Financial Strain
Wuhan Zhongsenhua Century Real Estate Development Accounts Received in Advance for Land
43,000,000.00
Co., Ltd. Transfer
Haikou Hongzhou Coastal Construction Co., Ltd. 12,275,933.34 The borrowing is not expired
Total 305,661,953.77
Note 26 Non-current liabilities matured within one year
Item Closing Balance Opening Balance
Long-term Borrowing Matured Within One Year 353,287,364.69 249,471,973.56
Including：Pledged Loan 76,051,656.00
Mortgage Loan 229,805,306.92 213,805,306.92
Guaranteed Loan 47,430,401.77 35,666,666.64
Total 353,287,364.69 249,471,973.56
Note 27 Long-term Borrowing
1) Classification of long-term borrowing
Category Closing Balance Opening Balance
Pledged Loan 76,051,656.00 130,303,532.50
Mortgage Loan 523,805,306.92 277,805,306.92
Guaranteed Loan 143,763,735.11 168,666,666.66
Sub-total 743,620,698.03 576,775,506.08
Less：Long-term Borrowing Matured Within One Year 353,287,364.69 249,471,973.56
Total 390,333,333.34 327,303,532.52
2) Long-term borrowings with large amount
Starting Date of Ending Date of
Lender Currency Interest Rate Closing Balance Opening Balance
Borrowing Borrowing
Chongqing International Trust Co.,
2012-9-27 2016-4-28 RMB 21.42% 196,805,306.92 196,805,306.92
Ltd.
Guotai Yuanxin Assets Management
2014-9-15 2016-3-15 RMB 10.86% 76,051,656.00 130,303,532.50
Co., Ltd.
The benchmark interest
Harbin Branch of China CITIC Bank 2014-10-30 2019-3-30 RMB 24,000,000.00 27,000,000.00
rate has a float by 10%
Mudanjian Taiping Road Branch of
The benchmark interest
Industrial & Commercial Bank of 2014-3-28 2020-3-20 RMB 81,763,735.11 91,666,666.66
rate has a float by 10%
China
Mudanjiang Branch of China The benchmark interest
2012-1-12 2019-1-11 RMB 62,000,000.00 77,000,000.00
Construction Bank rate has a float by 10%
Haikou Yeshumen Branch of Bank of The benchmark interest
2009-8-2 2019-8-2 RMB 53,000,000.00 54,000,000.00
China rate has a float by 10%
Starting Date of Ending Date of
Lender Currency Interest Rate Closing Balance Opening Balance
Borrowing Borrowing
Wuhan Branch of Shanghai Pudong The benchmark interest
2015-1-20 2018-1-19 RMB 150,000,000.00
Development Bank rate has a float by 20%
Wuhan Branch of Shanghai Pudong The benchmark interest
2015-6-24 2018-6-23 RMB 100,000,000.00
Development Bank rate has a float by 20%
Total 2012-9-27 2016-4-28 RMB 743,620,698.03 576,775,506.08
3) Pledged Loan：
Lender Balance of Loan Pledge
The Company pledge 79.2% of interest in Hubei Pearl
River Real Estate Development Co., Ltd. as a security.
Guotai Yuanxin Asset Management
76,051,656.00 The ultimate control party, Beijing Xinxing Real Estate
Ltd.
Development Co., Ltd, assume joint and several liability
for the loan.
Total 76,051,656.00
4) Mortgage Loan：
Lender Balance of Loan Pledge
Bank of China, Haikou Yeshumen Branch 196,805,306.92
Three properties owned by Sanya Wanjia Hotel Management Co., Ltd
Chongqing International Trust Co., Ltd 53,000,000.00
Ten properties owned by Mudanjiang Pearl River Wanjia Tourism
China Citic Bank Haerbin Branch 24,000,000.00
Investment Development Group
Wuhan Branch of Shanghai Pudong
250,000,000.00 The Meilin Qingcheng （ Phase III ） owened by Hubei Pearl River Real Estate
Development Bank Development Co., Ltd.
Total 523,805,306.92 —
5) Guaranteed Loan：
Lender Balance of Loan Guarantor
China construction bank Mudanjiang Branch 62,000,000.00 Heilongjiang Xinzheng Guarantee Co., Ltd.
Industrial and Commercial Bank of China
81,763,735.11 Mengneng International Energy Exploitation Co., Ltd.
Mudanjiang Branch
Total 143,763,735.11
6) Other descriptions on long-term borrowing
The interest rate of long-term borrowing is ranged from 7.04% to 21.42%.
Note 28 Capital stock
Current Increase（+）or Decrease（－）
Item Opening Balance Issuance of Bonus Capitalization of Closing Balance
Public Reserve Other Sub-total
New Shares Shares Fund
1．Shares with conditions limited to sell
(1) Shares held by the state
(2) Shares held by the state-owned
artificial persons
(3) Shares held by other domestic
1,325,131.00 1,325,131.00
enterprises
Including：
Shares held by the domestic legal
1,299,500.00 1,299,500.00
persons
Shares held by the domestic natural
25,631.00 25,631.00
persons
(4). Shares held by the foreign
companies
Including：
Shares held by the foreign legal persons
Current Increase（+）or Decrease（－）
Item Opening Balance Issuance of Bonus Capitalization of Closing Balance
Public Reserve Other Sub-total
New Shares Shares Fund
Shares held by the foreign natural
persons
Total shares with conditions limited to
1,325,131.00 1,325,131.00
sell
2 ． Outstanding shares without
conditions limited to sell
(1) Common Share in RMB 360,445,273.00 360,445,273.00
(2) Foreign Shares Listed at Home 64,975,000.00 64,975,000.00
(3) Foreign Shares Listed at Oversea
(4) Others
Total shares without conditions limited
425,420,273.00 425,420,273.00
to sell
Total 426,745,404.00 426,745,404.00
Note 29 Capital reserve
Item Opening Balance Current Increase Current Decrease Closing Balance
Capital premium 225,390,819.63 225,390,819.63
Others capital reserve 109,300,017.82 109,300,017.82
Total 334,690,837.45 334,690,837.45
Note 30 Other comprehensive income
Current Amount
Item Opening Balance Closing Balance
I.Net amount included in
other comprehensive income
that can be transferred to
profit or loss in the future
Including : Gains (losses)
arising from
125,127,595.63 -166,836,794.17 -41,709,198.54 -125,127,595.63 0.00
available-for-sale financial
assets
Totality of Other
125,127,595.63 -166,836,794.17 -41,709,198.54 -125,127,595.63 0.00
Comprehensive Income
Note 31 Surplus Reserve
Item Opening Balance Current Increase Current Decrease Closing Balance
Statutory surplus reserve 71,852,236.46 71,852,236.46
General surplus reserve 37,634,827.93 37,634,827.93
Total 109,487,064.39 109,487,064.39
Note 32 Undistributed profits
Ratio of Withdrawal or Undistributed
Item Amount
Amount (%)
Undistributed Profits at the End of Previous Period Before
-980,486,431.07 —
Adjustment
Total Amount of Undistributed Profits at the Beginning of
—
Adjustment Period (+/-)
Undistributed Profits at the Beginning of Period After Adjustment -980,486,431.07 —
Ratio of Withdrawal or Undistributed
Item Amount
Amount (%)
Plus: Current Net Profits Attributive to the Owners of the Parent
-107,573,743.92 —
Company
Less: Appropriation of Statutory Surplus Reserve Withdrawn
Appropriation of Discretionary Surplus Reserve
Plus：Surplus Reserve Made up for Losses
Other Internal Carry-over of Owner’s Equity
Closing Undistributed Profit -1,088,060,174.99
Note 33 Operating income and operating cost
1) Operating income and operating cost
Item Current Amount Previous Amount
Income Cost Income Cost
Main Business 250,119,981.56 205,045,049.88 230,442,582.68 184,265,537.43
Other Business 16,948,769.32 3,430,189.68 8,461,578.41 2,597,634.79
Total 267,068,750.88 208,475,239.56 238,904,161.09 186,863,172.22
2) Main Business（Accounted as per Industries）
Current Amount Previous Amount
Industry
Operating Income Operating Cost Operating Income Operating Cost
Real Estate Development 1,040,000.00 430,948.32 2,916,880.00 1,228,762.62
Property Management 202,558,443.43 180,721,057.60 168,344,979.51 149,709,944.44
Tourist Hotel 46,521,538.13 23,893,043.96 59,180,723.17 33,326,830.37
Total 250,119,981.56 205,045,049.88 230,442,582.68 184,265,537.43
3) Main Business（Accounted as per Regions）
Current Amount Previous Amount
Region
Operating Income Operating Cost Operating Income Operating Cost
Hainan 226,446,070.03 193,847,256.65 195,296,038.73 165,368,492.96
Heilongjiang 19,150,974.10 8,495,354.49 28,571,229.35 15,413,974.94
Hubei 1,646,950.00 1,187,524.63 3,858,341.00 1,862,499.95
Shanghai 2,875,987.43 1,514,914.11 2,716,973.60 1,620,569.58
Total 250,119,981.56 205,045,049.88 230,442,582.68 184,265,537.43
Note 34 Business tax and surcharges
Item Current Amount Previous Amount
Business Tax 13,500,000.98 12,028,796.67
Urban Maintenance & 872,189.34 728,059.68
Item Current Amount Previous Amount
Construction Tax
Education Surcharges 659,133.48 583,936.78
Increment Tax on Land
159,410.87 456,009.90
Value
Other Taxes 134,144.92 160,964.39
Total 15,324,879.59 13,957,767.42
Note 35 Selling expenses
Item Current Amount Previous Amount
Employees’ Wages 365,118.16 2,641,596.75
Advertisement 2,468,062.48 1,690,187.00
Insurance 645,537.82 130,001.88
Repair 343,437.70 68,150.30
Selling Service 8,300,000.00
Others 1,027,869.32 1,002,855.57
Total 13,150,025.48 5,532,791.50
Note 36 Administrative expenses
Item Current Amount Previous Amount
Employees’ Wages 29,933,763.34 29,161,235.76
Depreciation 30,879,887.41 32,585,691.55
Business Entertainment 5,442,356.09 7,634,087.68
Business Travel 3,483,705.62 3,476,906.21
Tax 3,733,781.48 3,075,654.76
Amortization of Intangible Assets 1,158,408.83 1,614,285.95
Repair 2,114,758.02 1,135,693.29
Insurance 484,506.98 1,277,889.45
Employment of Intermediary Organ 2,149,359.87 1,271,000.00
Amortization of Expenses for Depreciation 2,104,853.97
Traffic 273,326.11
Office 917,685.22
Lease 2,017,718.00
Service 530,580.00
Lawsuit 48,794.00
Meeting 216,059.67
Others 9,229,302.85 27,693,678.97
Total 94,718,847.46 108,926,123.62
Note 37 Financial expenses
Category Current Amount Previous Amount
Interest Expense 102,893,101.33 80,763,270.20
Less: Interest Income 7,189,912.27 1,512,655.73
Financial Consultant 12,246,707.53 11,114,994.64
Financing Expenses 13,739,137.15 16,001,233.01
Others 823,193.00 555,509.98
Total 122,512,226.74 106,922,352.10
Note 38 Loss on assets impairment
Item Current Amount Previous Amount
Loss on Bad Debts 33,071,995.16 13,144,421.92
Loss on Fall in Price of Inventories 17,439,325.19
Loss of Impairment of Construction in Progress 1,000,000.00 3,000,000.00
Total 51,511,320.35 16,144,421.92
Note 39 Investment income
1) Details of investment income
Item Current Amount Previous Amount
Investment Income from the Long-term Equity Measured
-676,992.99 -806,773.60
Under Equity Method
me from the Disposal of Long-term Equity
Investment Income from the Disposal of Long-term Equity
Investment Income from the Disposal of Financial Assets
Which Are Measured at Their Fair Values and of Which the
Variation Is Included in the Current Profits and Losses
Investment Income from the Available-for-sale Financial
930,000.00
Assets, etc.
Investment Income from the Disposal of Available-for-sale
126,642,755.05 4,345,287.87
Financial Assets
Others 129,347.48 98,086.14
Total 126,095,109.54 4,566,600.41
Note 40 Non-operating income
Amount Recorded in Current
Item Current Amount Previous Amount
Extraordinary Gain and Loss
Total Gain on the Disposal of Non-current Assets 2,823,852.83 130,579.48 2,823,852.83
Including: Gain on the Disposal of Fixed Assets 2,823,852.83 130,579.48 2,823,852.83
Gain on the Disposal of Intangible Assets
Gain on Debt Restructuring
Gain on Inventory Profit
Income from Compensation for Breach of
100.00
Contract
Others 678,029.53 883,609.72 678,029.53
Total 3,501,882.36 1,014,289.20 3,501,882.36
Note 41 Non-operating cost
Amount Recorded in Current
Item Current Amount Previous Amount
Extraordinary Gain and Loss
Total Loss on the Disposal of Non-current Assets 163,533.87 314,560.47 163,533.87
Including: Loss on the Disposal of Fixed Assets 163,533.87 314,560.47 163,533.87
Amount Paid for Donation 100.00 100.00
Loss on Scrap and Damage of Assets 23,624.79
Expenditure for Penalty 200.00
Expenditure for Compensation, Penalty and Fine 29,630.23
Others 1,226,714.91 1,188,163.94 1,226,714.91
Total 1,390,348.78 1,556,179.43 1,390,348.78
Note 42 Income tax expenses
1) List of income tax expenses
Item Current Amount Previous Amount
Current Income Tax Expenses 1,539,640.77 609,644.61
Deferred Income Tax Expenses 15,164,596.46 -15,271,984.43
Total 16,704,237.23 -14,662,339.82
2) Accounting profits and adjustment process of the income tax expenses
Item Current Amount
Total Profits -110,417,145.18
Income Tax Expenses Calculated at the Statutory/Applicable Tax Rate -27,604,286.30
Influence of Different Tax Rate Adopted by the Subsidiaries -45,350.59
Influence of Adjustment of Previous Income Tax 293,581.77
Influence of the Other Non-taxable Income -169,248.25
Influence of the Non-deducible Cost, Expense and Loss 10,860,797.75
Influence of the Deducible Loss of the Previous Deferred Income Tax Assets Not Recognized
Current Influence of the Deducible Temporary Difference or the Deducible Loss of the Current
30,903,149.24
Deferred Income Tax Assets Not Recognized
Recognition of Deferred Tax Assets of Previous Deducible Loss -12,744,677.16
Other 15,210,270.77
Income Tax Expenses 16,704,237.23
Note 43 Notes to cash flow statement
1) Other cash received relating to operating activities
Item Current Amount Previous Amount
Intercourse funds received from Beijing Yuanrongtong Assets
3,700,000.00 14,900,000.00
Management Co., Ltd.
Intercourse funds received from Henan Jianan Waterproof and
10,000,000.00
Anticorrosion Co., Ltd.
Intercourse funds received from XIE Ruilong 14,000,000.00
Item Current Amount Previous Amount
Intercourse funds received from CHENG Shuxian 8,000,000.00
Intercourse funds received from CHEN Jilin 2,000,000.00
Intercourse funds received from Beijing North Xilin Curtain
2,030,000.00
Wall Engineering Co., Ltd.
Intercourse funds received from Beijing Kailan Tongyun
1,950,000.00
Building Materials Co., Ltd.
Intercourse funds received from Nanan Zhicheng Stone
1,380,000.00
Artwork Co., Ltd.
Refund of deposit received from Reserve Center 4,000,000.00
Intercourse funds received from Heilongjiang Mudanjiang
8,000,000.00
Forestry Engineering Co., Ltd.
Intercourse funds received from Beijing Xinwangyuan
1,120,000.00
Communication Technology Co., Ltd.
Others 33,925,437.23 22,643,469.78
Non-operating income 128,591.56 41,330.91
Interest income 1,698,855.55 487,934.04
Intercourse funds received from Shanghai Mishu Investment
13,861,000.00
Management Center (Limited Partner)
Intercourse funds received from Hailin Changding Yaxue
2,610,000.00
Yijian Scenery
Intercourse funds received from Harbin Jiangshan International
1,150,000.00
Travel Agency
Fixed deposit received with use of pledge 20,000,000.00
Others 3,818,323.85 5,092,189.63
Total 80,892,208.19 95,644,924.36
2) Other cash paid relating to operating activities
Item Current Amount Previous Amount
Intercourse funds paid for Beijing Yuanrongtong Assets
1,100,000.00 33,100,000.00
Management Co., Ltd.
Intercourse funds paid for Beijing Viewpoint Discovery Media
Co., Ltd.
Intercourse funds paid for TAN Lu 4,000,000.00
Intercourse funds paid for Hubei Tianxiang Geotechnical
2,000,000.00
Engineering Co., Ltd.
Intercourse funds paid for Beijing Boyi Film Media Culture
1,500,000.00
Co., Ltd.
Intercourse funds paid for XIE Ruilong 14,000,000.00
Intercourse funds paid for CHENG Shuxian 8,000,000.00
Intercourse funds paid for CHEN Jilin 2,000,000.00
Intercourse funds paid for Beijing Xinwangyuan
1,120,000.00
Communication Technology Co., Ltd.
Intercourse funds paid for Mudanjiang Zhongzhi Materials
15,043,646.88 12,084,962.17
Supply Co., Ltd.
Other Intercourse Funds 26,908,152.43 29,410,047.98
Expenditure for administration 4,657,357.71 3,521,731.93
Expenditure for operation 188,605.06 171,653.46
Non-operating Cost 营业外支出 603,737.66 4,443,550.29
Reserve Funds Paid 559,680.75 545,756.16
Bank Commission 3,442,664.87 2,390,311.65
Others 53,623,845.36 117,168,013.64
Total 1,100,000.00 33,100,000.00
3) Other cash received relating to investment activities
Item Current Amount Previous Amount
Others 13,871.23
Total 13,871.23
4) Other cash aid relating to financing activities
Item Current Amount Previous Amount
Service Charge for Financing 29,288,317.15 31,696,073.01
Time Deposit Certificate for Pledge 20,000,000.00
Total 29,288,317.15 51,696,073.01
Note 44 Supplementary information of cash flow statement
1) Supplementary information of cash flow statement
Item Current Amount Previous Amount
1. Cash Flow to Adjust the Net Profit into the Operating Activities
Net Profit -127,121,382.41 -180,755,417.69
Plus: Provision for Asset Impairment 51,511,320.35 16,144,421.92
Depreciation of Fixed Assets, Consumption of Oil and Gas Assets and
33,139,913.17 34,800,057.83
Depreciation of Productive Biological Assets
Amortization of Intangible Assets 1,184,246.93 1,207,515.19
Amortization of Long-term Deferred Expenses 4,891,312.78 14,094,455.40
Loss on the Disposal of Fixed Assets, Intangible Assets and Other Long-term
-2,866,142.74 -1,502,814.15
Assets (Income is Marked as “-”)
Loss on the Discarding of Fixed Assets (Income is Marked as “-”) 23,624.79
Loss on the Variation of Fair Value (Income is Marked as “-”)
Financial Expenses (Income is Marked as “-”) 102,893,101.33 97,031,894.02
Investment Loss (Income is Marked as “-”) -126,095,109.54 -4,566,600.41
Decrease in Deferred Income Tax Assets (Increase is Marked as “-”) 15,210,270.77 -15,210,270.77
Increase in Deferred Income Tax Liabilities (Decrease is Marked as “-”) -45,674.31 -61,713.66
Decrease in Inventory (Increase is Marked as “-”) -140,569,459.31 -268,089,309.12
Decrease in Operating Items Receivable (Increase is Marked as “-”) -248,976,725.86 -189,678,755.43
Increase in Operating Items Payable (Decrease is Marked as “-”) 696,443,954.22 252,881,203.34
Other
Net Cash Flow from Operating Activities 259,599,625.38 -243,681,708.74
2. Significant Investment and Financing Activities without Cash Receipts and
Item Current Amount Previous Amount
Payments
Conversion of Debt Into Capital
Convertible Bonds Maturing Within One Year
Fixed Assets Acquired Under Financial Lease
3. Change in Cash and Cash Equivalent
Closing Balance of the Cash 205,762,131.54 77,404,192.62
Less: Opening Balance of the Cash 77,404,192.62 62,362,242.69
Plus: Closing Balance of the Cash Equivalent
Less: Opening Balance of the Cash Equivalent
Net Increase of Cash and Cash Equivalent 128,357,938.92 15,041,949.93
2) Composition of cash and cash equivalent
Item Closing Balance Opening Balance
1. Cash 205,762,131.54 77,404,192.62
1.1 Cash in Stock 620,470.49 1,255,008.79
Bank Deposit Available for Immediate Payment 205,111,692.83 76,091,882.06
Other Currency Available for Immediate Payment 29,968.22 57,301.77
2. Cash Equivalent
Including: Bond Investment Maturing Within Three Months
3. Balance of Closing Cash and Cash Equivalent 205,762,131.54 77,404,192.62
Including: Restricted Cash and Cash Equivalent Used by the Subsidiaries of
the Parent Company or the Group
Note 45 Assets with restriction on ownership or use right
Item Balance Reason of Restriction
Inventories 29,805,826.29 Borrowing on Mortgage
Investment-based Real Borrowing on Mortgage
16,159,860.73
Estate
Fixed Assets 270,870,000.31 Borrowing on Mortgage
Intangible Assets 26,471,806.42 Borrowing on Mortgage
Total 343,307,493.75
VIII. Equities in other entities
1) Equities in the subsidiary
(1) Composition of the Company
Place of Nature of
Company name Place of operation Equity interest held (%) Accounting method
registration business
Direct Indirect
Hainan Pearl River Properties and Hotels Property
Management Co., Ltd.
Hainaa、Zhenzhou Haikou,Hainan
management 98.00 set-up
Property
Hainan Pearl River Environmental Projects Co.,Ltd. Haikou,Hainan Haikou,Hainan
management
100.00 set-up
Hainan Pearl River Estate Property
Cleaning Company
Haikou,Hainan Haikou,Hainan
management
100.00 set-up
Hainan Pearl River Estate
Property
Machine Engineering Haikou,Hainan Haikou,Hainan
management 100.00 set-up
Company
Hainan Pearl River Estate Real estate
Marketing Co., Ltd.
Haikou,Hainan Haikou,Hainan
development
100.00 set-up
Sanya Wanjia Hotel
Management Co., Ltd.
Sanya,Hainan Sanya,Hainan Hotel service 100.00 set-up
Real estate
Hubei Pearl River Real Estate Development Co., Ltd. Wuhan, Hubei Wuhan, Hubei
development 89.20 set-up
Wuhan Pearl River Meilin Hotels Management Co.,
Ltd.
Wuhan, Hubei Wuhan, Hubei Hotel service 100.00 set-up
Hainan Pearl River Real estate
Holding( Shanghai )Real Estate Co.,Ltd.
Shanghai Shanghai
development 100.00 set-up
Cultural and
Beijing Jiubo Culture Development Co., Ltd. Beijing Beijing
sports services 100.00 set-up
Mudanjiang Pearl River Wanjia Tourism Investment Hotel service 、
Development Group
Mudanjiang City Mudanjiang City
tourism
100.00 set-up
Business
combinations
Hailin Wanjia Snowtown Holiday Hotel Management
Co., Ltd.
Mudanjiang City Mudanjiang City Hotel service 100.00 involving enterprises
not under common
control
Mudanjiang Jingbohu Wanjia Hotel Co., Ltd. Mudanjiang City Mudanjiang City Hotel service 100.00 set-up
Mudanjiang Wanjia Star Hotel Co., Ltd. Mudanjiang City Mudanjiang City Hotel service 100.00 set-up
Heilongjiang Longshi Pearl River Culture Operation of
Communication Co., Ltd
Harbin Harbin
Movie and TV 70.00 set-up
Harbin Wanjia Travel Agent Harbin Harbin Tourism 100.00 set-up
Hebei Zhengshi Qinghui Real Estate Development Co., Real estate
Ltd.
Shijiazhuang Shijiazhuang
development 51.00 set-up
Property
Shanghai Sea Pearl Property Management Co., Ltd. Shanghai Shanghai
management 50.00 set-up
1 Significant non-wholly-owned subsidiaries
Current P/L Current dividend
Proportion of Closing balance of
Company name attributable to payements to Company name
minority(%) minority interest
minority shareholders minority
Hainan Pearl River Properties and Hotels
Management Co., Ltd. 2.00 -706.79 201,616.59
Hubei Pearl River Real Estate Development Co., Ltd. 10.80 -1,934,571.56 9,483,617.08
Heilongjiang Longshi Pearl River Culture
Communication Co., Ltd 30.00 -2,941,482.11 -6,420,460.84
Hebei Zhengshi Qinghui Real Estate Development Co.,
Ltd. 49.00 -14,818,831.09 -19,636,466.51
Shanghai Sea Pearl Property Management Co., Ltd. 50.00 147,953.06 314,636.43
Total ----- -19,547,638.49 -16,057,057.25
② Main Financial Information of the Significant Non-wholly-owned Subsidiaries
Unit：Yuan
Closing balance
Company name
Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
Hainan Pearl River
Properties and Hotels
102,021,965.09 3,497,651.59 105,519,616.68 95,438,786.84 95,438,786.84
Management Co.,
Ltd.
Hubei Pearl River
Real Estate
1,026,454,667.86 11,777,968.10 1,038,232,635.96 700,424,068.58 250,000,000.00 950,424,068.58
Development Co.,
Ltd.
Heilongjiang
Longshi Pearl River
Culture 3,874,826.69 3,752,941.92 7,627,768.61 29,029,304.76 29,029,304.76
Communication Co.,
Ltd
Hebei Zhengshi
Qinghui Real Estate
2,896,046.09 518,796.15 3,414,842.24 43,489,263.69 43,489,263.69
Development Co.,
Ltd.
Shanghai Sea Pearl
2,602,195.07 10,688.30 2,612,883.37 1,983,610.50 1,983,610.50
Property
Closing balance
Company name
Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
Management Co.,
Ltd.
Continued：
Opening balance
Company name
Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Hainan Pearl River Properties
and Hotels 75,411,751.89 3,661,263.74 79,073,015.63 68,956,846.41 68,956,846.41
Management Co., Ltd.
Hubei Pearl River Real Estate
400,473,121.91 7,384,351.67 407,857,473.58 302,136,757.70 302,136,757.70
Development Co., Ltd.
Heilongjiang Longshi Pearl River
4,159,517.17 5,830,346.04 9,989,863.21 21,586,458.98 21,586,458.98
Culture Communication Co., Ltd
Hebei Zhengshi Qinghui Real
27,955,312.68 936,459.15 28,891,771.83 38,723,680.86 38,723,680.86
Estate Development Co., Ltd.
Shanghai Sea Pearl Property
1,848,964.75 7,276.92 1,856,241.67 1,522,874.93 1,522,874.93
Management Co., Ltd.
Continued：
Year 2015
Company name
Total comprehensive Net cash flows from
Operating income Net profit
income investing activities
Hainan Pearl River Properties and Hotels
Management Co., Ltd.
199,669,731.00 -35,339.38 -35,339.38 13,824,129.54
Hubei Pearl River Real Estate Development Co., Ltd. 2,584,929.33 -17,912,148.50 -17,912,148.50 -95,944,521.74
Heilongjiang Longshi Pearl River Culture Communication Co.,
Ltd 5,583,476.00 -9,804,940.38 -9,804,940.38 1,776,824.58
Hebei Zhengshi Qinghui Real Estate Development Co., Ltd. 0.00 -30,242,512.42 -30,242,512.42 -331,216.15
Shanghai Sea Pearl Property Management Co., Ltd. 2,875,987.43 295,906.13 295,906.13 760,230.32
Continued：
Year 2014
Company name
Total comprehensive Net cash flows from
Operating income Net profit
income investing activities
Hainan Pearl River Properties and Hotels
Management Co., Ltd. 165,550,353.14 705,786.69 705,786.69 10,871,096.55
Hubei Pearl River Real Estate Development Co., Ltd. 4,832,945.18 -2,399,263.50 -2,399,263.50 42,573,357.30
Heilongjiang Longshi Pearl River Culture Communication Co.,
Ltd 1,254,352.58 -14,746,899.63 -14,746,899.63 6,454,746.32
Hebei Zhengshi Qinghui Real Estate Development Co., Ltd. -5,536,460.80 -5,536,460.80 -564,498.43
Shanghai Sea Pearl Property Management Co., Ltd. 2,710,773.60 98,912.69 98,912.69 443,117.20
2) Transactions that the shares of the owners’ equities in the subsidiary changed but still control such subsidiary
(1) Description on the change of shares of owners’ equities in the subsidiary
There is no the change of shares of the owners’ equities in the Company at the end of report period.
(2) Influence of such transaction on the minority shareholders’ equities and owners’ equities attributive to the parent
company
There is no transaction with influence on the minority shareholders’ equities and owners’ equities attributive to the parent
company at the end of report period.
3) Equities in the cooperative enterprises or associated enterprises
(1) Significant cooperative enterprises or associated enterprises
Equity interest held (%)
Place of Nature of
Name Place of operation
registration business
Accounting method
Direct Direct
Real estate Sanya Wanjia
Sanya Wanjia Industrial Co. Ltd Sanya Sanya 40
development Industrial Co. Ltd
(2) Main financial information of significant cooperative enterprises
Closing balance Opening balance
Item
Sanya Wanjia Industrial Co. Ltd Sanya Wanjia Industrial Co. Ltd
Current asset 85,241,163.90 86,917,723.70
Non-current asset 580,373.54 583,410.85
Total asset 85,821,537.44 87,501,134.55
Current liability 1,292,130.39 1,338,870.51
Non-current liability
Total liability 1,292,130.39 1,338,870.51
Minority interests
Equity attributable to parent company 84,529,407.05 86,162,264.04
Net assets share calculated according to proportion of shareholding 33,811,762.82 34,464,905.62
Net book value of the equity investment in associates 33,811,762.82 34,464,905.62
Continued：
Year 2015 Year 2014
Item
Sanya Wanjia Industrial Co. Ltd Sanya Wanjia Industrial Co. Ltd
Operating income 35,533.33 14,166.66
Net profit -1,632,856.99 -2,097,459.15
Other comprehensive income
Total comprehensive income -1,632,856.99 -2,097,459.15
(3) Summary of financial information of insignificant cooperative enterprises or associated enterprises
Item 31 December 2014/ Year 2014 31 December 2013/ Year 2013
Net book value of the equity investment in associates 1,472,998.82 1,496,849.01
calculated according to proportion of shareholding: — —
Net profit -48,673.85 32,210.06
Other comprehensive income
Total comprehensive income -48,673.85 32,210.06
(4) Unrecognized commitment relating to cooperative enterprises or associated enterprises
There is no commitment needing to be disclosed in the Company.
(5) Contingent liabilities relating to cooperative enterprises or associated enterprises
There is no contingency needing to be disclosed in the Company.
IX. Disclosure of risks related to the financial instruments
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (primarily interest rate
risk),. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to
minimize potential adverse effects on the Company's financial performance.
1) Credit risk
The Company’s credit risk mainly arises from the monetary funds, accounts receivable, available-for-sale financial assets, etc. The
management has formulated the appropriate credit policy and will continuously monitor the exposure of those credit risks.
The Company’s monetary funds are mainly deposited in the financial institutions such as commercial bank, etc., the Company’s
management believe that those commercial banks have bigger credit and conditions of assets with lower risk of credit. The
Company adopts the policy of quota for avoiding the credit risk of any financial institution.
The Company expects that there is no significant credit risk associated with cash at bank since they are deposited at state-owned
banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from
non-performance by these counterparties.
In regard with the accounts receivable and other receivables, the Company has policies to control the credit exposure on those
accounts receivable and other receivables. The Company assesses the credit quality of and sets credit limits on its customers by
taking into account their financial position, the availability of guarantee from the third parties, their credit history and other factors
such as current market conditions. The credit history of the customers is regularly monitored by the Company. In respect of
customers with a poor credit history, the Company will use written payment reminders, or shorten or cancel credit periods, to
ensure the overall credit risk of the Company is limited to a controllable extent.
The biggest credit exposure faced by the Company is the book value of each asset in the balance sheet. Except for the Company’s
guarantee stated in Notes, the Company does not provide any guarantee possible to make the Company face the credit risk.
2) Liquidity risk
Liquidity risk refers to the risk that the Company fails to obtain the sufficient capital to meet operational needs or pay for the due
debts and other obligations.
The Company’s finance department monitors rolling forecasts of the Company's short-term and long-term liquidity requirements
to ensure it has sufficient cash and securities that are readily convertible to cash to meet operational needs, while maintaining
sufficient headroom on its undrawn committed borrowing facilities from major financial institution so that the Company does not
breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity
requirements.
As at 31 December 2015, the financial assets and liabilities of the Company are analyzed by their maturity date below at their
undiscounted contractual cash flows :
31 December 2015
Item
Net book value Carrying amount Within 1year 1 to 2 years 2 to 5 years Over 5years
Currency Funds 205,762,131.54 205,762,131.54 205,762,131.54
Accounts
17,161,981.62 28,267,474.71 28,267,474.71
receivable
Other receivables 256,036,391.03 351,143,874.92 351,143,874.92
Available-for-sale
11,411,309.90 35,263,555.29 35,263,555.29
financial assets
Subtotal 490,371,814.09 620,437,036.46 620,437,036.46
Short-term
borrowings
Accounts payable 24,313,483.40 24,313,483.40 24,313,483.40
Other payables 561,278,959.68 561,278,959.68 561,278,959.68
Long-term
743,620,698.03 743,620,698.03 353,287,364.69 140,666,666.68 249,666,666.66
borrowings
Subtotal 1,329,213,141.11 1,329,213,141.11 938,879,807.77 140,666,666.68 249,666,666.66
Continued：
31 December 2014
Item
Net book value Carrying amount Within 1year 1 to 2 years 2 to 5 years Over 5 years
Currency Funds 97,404,192.62 97,404,192.62 97,404,192.62
Accounts
12,378,292.44 23,143,450.61 23,143,450.61
receivable
Other receivables 238,352,004.55 307,777,989.20 307,777,989.20
Available-for-sale
184,158,809.90 209,691,055.29 209,691,055.29
financial assets
Subtotal 532,293,299.51 638,016,687.72 638,016,687.72
Short-term
19,000,000.00 19,000,000.00 19,000,000.00
borrowings
Accounts payable 58,578,620.48 58,578,620.48 58,578,620.48
Other payables 780,359,522.08 780,359,522.08 780,359,522.08
Long-term
576,775,506.08 576,775,506.08 249,471,973.56 183,970,199.18 135,000,000.04 8,333,333.30
borrowings
Subtotal 1,434,713,648.64 1,434,713,648.64 1,107,410,116.12 183,970,199.18 135,000,000.04 8,333,333.30
3) Market risk
(1) Risk from exchange rate
None.
(2) Interest rate risk
The Company's interest rate risk arises from the borrowings from bank. Financial liabilities issued at floating rates expose the
Company to cash flow interest rate risk. The Company determines the relative proportions of its fixed rate and floating rate
contracts depending on the prevailing market conditions.
For the year ended 31 December 2015, the amount of interest rates contract on the floating rate for long-term borrowings
amounted to RMB470,763,735.11, the amount of interest rates contract on the fixed rate for long-term borrowings amounted to
RMB524,474,211.99.
X. Fair Value
1) Financial instruments measured at fair value
There is no financial instrument measured at fair value in the Company
2) Financial instruments measured at fair value at the end of report period
There is no financial instrument measured at fair value at the end of report period
3) Basis of determination of market price for the items measured at fair value
There is no financial instrument measured at fair value in the Company.
4) Information of fair value of financial assets and liabilities not measured at fair value
The financial assets and liabilities not measured at fair value include: the accounts receivable, short-term borrowing, accounts
payable, non-current liabilities and long-term borrowings matured within one year, investment in equities that are not quoted in
active market and whose fair value cannot be measured reliably.
The Company’s management gives a view that the difference between the book value of above-mentioned financial assets and
liabilities not measured at fair value and the fair value is very small.
XI. Related party relationship and transactions
1) Information of parent company of the Company
Registered Real estate development Holding Voting rights
Name Registered capital
address and operation proportion proportion
Beijing Wangfa Real Estate Development Holdings
Co., Ltd Beijing 28,012.89 26.36 26.36
The Company’s ultimate controller is Beijing Xinxing Real Estate Development Company.
2) The information of the Company’s subsidiaries is set forth in Note 7-1 “Equities in the Subsidiaries”.
3) The information of the Company’s cooperative enterprises and associated enterprises is set forth in Note 7-3 “Equities
in the cooperative enterprises and associated enterprises”
4) Information of Other Related Parties
Name of Other Related Party Relationship between other related party and the Company
Beijing Zhongjia Yangguang energy technology (Company) Co., Ltd. With same controller
5) Transactions with related parties
(1) In regard with any subsidiary that has the control relationship with the Company and has been included in the
Company’s consolidated financial statements, its intercourse transaction and the transaction with the parent company has
been offset.
(2) Relation of sales of goods and rendering of service
Related party Nature of related transaction Year 2015 Year 2014
Beijing Zhongjia Sunny Energy Technology
Rent services 240,000.00 240,000.00
(Company) Co., Ltd.
Total 240,000.00 240,000.00
(3) Information of related guarantee
When the Company is the guarantor:
Guarantee
Beginning date of Maturity date of
Guarantor Amount obligation
guarantee contract guarantee contract
expired
Beijing Xinxing Real Estate Development corporation 76,051,656.00 2015/9/15 2018/5/28 No
Beijing Zhongjia Sunny Energy Technology (Company)
15,100,000.00 2013/9/12 2016/9/12 No
Co., Ltd.
Total 91,151,656.00
(4) Fund calling between related parties
As at 31 December 2015, the total amount of loan principal that Beijing Xinxing Real Estate Development corporation has been
made to the Pearl River Holding has a balance of RMB124,467,912.90 with interest payable of RMB 28,503,347.86.
As at 31 December 2015,the total amount of loan principal that the controlling shareholder Beijing Wanfa Real Estate
Development Corporation has been made to the Pearl River Holding has a balance of RMB 58,825,000.00 with interest payable of
RMB28,514,555.04.
As at 31 December 2015, the total amount of loan principal that Beijing Xinxing Real Estate Development general company has
been made to Sanya Wanjia Hotel Management Co., Ltd has a balance of RMB 32,030,000.00 with interest payable of
RMB35,009,162.89. The total amount of loan principal that Beijing Wanfa Real Estate Development corporation has been made
to Sanya Wanjia Hotel Management Co., Ltd has a balance of RMB 19,700,000.00 with interest payable of RMB12,372,451.83.
For the loans listed between related parties, the total amount of interest carried for this reporting period was RMB11,242,660.61,
and the balance of interest payable is RMB104,399,517.62Yuan. The interest rate of the loans listed above is based on 3%.
(5) Remuneration of key management personnel (10 thousand yuan)
Item Current Amount Previous Amount
Key management personnel salary 154.90 154.90
(6) Accounts payable for related parties
（1）Accounts payable for related parties by the Company
Items Company Name 31 December 2015 31 December 2014
Other
Beijing Xinxing Real Estate Development General company 156,497,912.90 140,997,912.90
payables
Other
Beijing Wangfa Real Estate Development Holdings Co., Ltd 78,525,000.00 78,525,000.00
payables
Other Beijing Zhongjia Yangguang energy technology (Company)
3,970,021.00 3,054,060.35
payables Co., Ltd.
Total 238,992,933.90 222,576,973.25
Interest payable Beijing Xinxing Real Estate Development General company 63,512,510.75 56,253,903.29
Interest payable Beijing Wangfa Real Estate Development Holdings Co., Ltd. 40,887,006.87 36,902,953.72
Other
Total 104,399,517.62 93,156,857.01
payables
XII. Commitments and Contingency
1) Significant commitments
There is no commitment needing to be disclosed in the Company.
2) Contingency incurred after the balance sheet
There is no contingency needing to be disclosed in the Company
XIII. Events after the balance sheet
1) Information of profit distribution
According to the seventh board resolution of the 22nd session of the company, there was no profit distribution plan in 2015 because
of the losses.
2) Information of other events after the balance sheet date
① The Company will transfer its 100% of equities held in Beijing Sanya Wanjia Hotel Management Co., Ltd. in public listing in
Beijing Property Rights Transaction Centre, the first listed price shall not be less than the evaluation value, this public transfer of
subsidiary has been approved by the 19th resolution of the 7th board meeting, this selling will not constitute the significant
restructuring, those equities are not attached with significant dispute, lawsuit or arbitration involving of the assets concerned，no
procedures of sequestration, froze-up, etc. happen in those equities, transfer price has not be recognized yet at present.
② The Company will transfer of 70% of equities held in the second-level subsidiary Heilongjiang Longshi PEARL RIVER
Culture Media Co., Ltd subordinated under Mudanjiang PEARL RIVER Wanjia Tourist Investment Development Co., Ltd. to
Shanghai Mishu Investment Management Center (limited partner) through entering into an Agreement of Transfer, with a transfer
price of RMB20 million, the procedure of ownership transfer is in operating at present.
XIV.Other significant events
The Company’s working fund is RMB-43,807.24 yuan at the end of 2015, of which covered RMB-21,713.69 yuan attributive to
the shareholders’ equities of parent company, the net profit attributive to the shareholders’ equities of parent company was RMB
-10,757.37 yuan in 2015. The Company will improve profitability and the ability to continuous operation through following ways:
to speed up the development of real estates, dispose the available-for sale financial assets, exploit the financing channel and obtain
financial support of significant shareholders.
XV. Notes to significant items of the parent company’s financial statements
Note 1 Accounts receivable
1) Disclosure of category details of accounts receivable:
Closing Balance
Book Balance Provision for Bad Account
Categories
Rate Book Value
Ratio
Amounts Amounts Chargeable
(%)
（%）
Accounts receivable with significant
single amount and individual 7,761,707.60 65.27 7,761,707.60 100.00
provision for bad debts
Accounts receivable with
combinational withdrawal of the bad
2,230,961.81 18.76 529,133.35 23.72 1,701,828.46
debt provision by credit risks
characteristics
Accounts receivable with
non-significant single amount and 1,898,690.60 15.97 1,898,690.60 100.00
individual provision for bad debts
Total 11,891,360.01 100.00 10,189,531.55 — 1,701,828.46
Continued：
Opening Balance
Categories
Book Balance Provision for Bad Account Book Value
Rate
Ratio Chargeable
Amounts Amounts
(%)
（%）
Accounts receivable with significant
single amount and individual 7,761,707.60 56.89 7,761,707.60 100.00
provision for bad debts
Accounts receivable with
combinational withdrawal of the bad
3,983,002.62 29.19 547,524.46 13.75 3,435,478.16
debt provision by credit risks
characteristics
Accounts receivable with
non-significant single amount and 1,898,690.60 13.92 1,898,690.60 100.00
individual provision for bad debts
Total 13,643,400.82 100.00 10,207,922.66 — 3,435,478.16
Description of categories of accounts receivable：
(1) Accounts receivable with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name Rate
Accounts Receivable Provision for Bad Account Chargeable Reasons of Withdrawal
（%）
Hainan racing entertainment Co., LTD 2,406,158.00 2,406,158.00 100.00 Irrecoverable
Hainan Baoping company 2,218,494.43 2,218,494.43 100.00 Irrecoverable
Hainan centaline property agency 2,090,069.77 2,090,069.77 100.00 Irrecoverable
Hainan dragon film studio 1,046,985.40 1,046,985.40 100.00 Irrecoverable
Total 7,761,707.60 7,761,707.60 —
(2) Accounts receivable with non-significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name Rate
Accounts Receivable Provision for Bad Account Chargeable Reasons of Withdrawal
（%）
Haikou Peijie clothing company 497,520.00 497,520.00 100.00 Irrecoverable
Hainan International silver city Real estate
451,712.00 451,712.00 100.00 Irrecoverable
company
Haikou Jingye trading development
250,000.00 250,000.00 100.00 Irrecoverable
company
Hainan Jinhe Real estate company 119,446.00 119,446.00 100.00 Irrecoverable
Hainan Qiongshan Tianxin Pawn
112,116.50 112,116.50 100.00 Irrecoverable
Investment company
Amount less than one hundred thousand
467,896.10 467,896.10 100.00 Irrecoverable
yuan ( total of 19 )
Total 1,898,690.60 1,898,690.60 —
(2) Accounts receivable in the combination which adopts aging analysis method to determine provision for bad debt:
Closing Balance
Aging
Accounts Receivable Provision for Bad Account Rate Chargeable（%）
Within 1 year 942,807.39 18,856.14 2.00
1－2 years 96,000.00 4,800.00 5.00
2－3 years 100,000.00 10,000.00 10.00
3－4 years 102,000.00 20,400.00 20.00
4－5 years 100,000.00 30,000.00 30.00
Over 5 years 890,154.42 445,077.21 50.00
Total 2,230,961.81 529,133.35 —
Continued：
Opening Balance
Aging
Accounts Receivable Provision for Bad Account Rate Chargeable（%）
Within 1 year 2,007,232.28 40,144.65 2.00
1－2 years 866,011.92 43,300.60 5.00
2－3 years 102,000.00 10,200.00 10.00
3－4 years 100,000.00 20,000.00 20.00
4－5 years 100,000.00 30,000.00 30.00
Over 5 years 807,758.42 403,879.21 50.00
Total 3,983,002.62 547,524.46 —
2) Situation of the current bad debt provision withdrawn, recovered or reversed:
The amount of current bad debt provision reversed was RMB18,391.11 yuan.
3) There is no money owed by the shareholders who hold more than 5% (5% is included) of voting shares of the Company
in the closing accounts receivable.
4) Top 5 units of accounts receivable of the closing balance gathered on the basis of parties which owe the money:
Ratio in Closing Amount
Bad Account Provisions
Name Closing Balance of Accounts Receivable
Withdrawn
(%)
Hainan racing entertainment Co., LTD 2,406,158.00 20.23 2,406,158.00
Hainan Baoping company 2,218,494.43 18.66 2,218,494.43
Hainan Zhongyuan tenement agency company 2,090,069.77 17.58 2,090,069.77
Hainan Longzhu Cinema City 1,046,985.40 8.81 1,046,985.40
Haikou Peijie Dress Company 497,520.00 4.18 497,520.00
Total 8,259,227.60 69.46 8,259,227.60
5） There is no account receivable from the related party at the end of report period.
Note 2 Other Receivables
1) Disclosure of category details of other receivables
Closing Balance
Book Balance Provision for Bad Account
Categories
Rate Book Value
Ratio Chargeable
Amounts Amounts
(%)
（%）
Other receivables with significant single
amount and individual provision for bad 88,243,380.89 11.43 21,378,380.89 24.23 66,865,000.00
debts
Other receivables with combinational
withdrawal of the bad debt provision by
credit risks characteristics
Combination 1 ： Aging
268,711,768.54 34.81 61,917,347.64 23.04 206,794,420.9
Combination
Combination 2：Receivables in the
inter-companies in range of 410,950,908.14 53.24 410,950,908.14
consolidation
Totality of Combination 679,662,676.68 88.05 61,917,347.64 9.11 617,745,329.04
Other receivables with non-significant
single amount and individual provision 4,044,702.36 0.52 3,972,014.34 98.20 72,688.02
for bad debts
Total 771,950,759.93 100.00 87,267,742.87 —— 684,683,017.06
Continued：
Opening Balance
Book Balance Provision for Bad Account
Categories
Rate Book Value
Ratio
Amounts Amounts Chargeable
(%)
（%）
Combination 1 ： Aging
35,343,380.89 4.01 21,378,380.89 60.49 13,965,000.00
Combination
Combination 2：Receivables in the
inter-companies in range of
consolidation
Totality of Combination 246,340,004.64 27.95 37,512,008.05 15.23 208,827,996.59
Other receivables with non-significant
single amount and individual provision 595,170,501.36 67.52 595,170,501.36
for bad debts
Total 841,510,506.00 95.47 37,512,008.05 4.46 803,998,497.95
Combination 1 ： Aging
4,597,298.84 0.52 3,975,946.33 86.48 621,352.51
Combination
Combination 2：Receivables in the
inter-companies in range of 881,451,185.73 100.00 62,866,335.27 —— 818,584,850.46
consolidation
Description of categories of other receivables：
(1) Other receivables with significant single amount and individual provision for bad debts at the end of period:
Closing Balance
Name Rate
Provision for Bad Chargeable Reasons of
Other Receivables
Account Withdrawal
（%）
Hainan Yangtze River Travel 1,000,000.00 1,000,000.00 100.00 Irrecoverable
Xinhua Liming Aviation Decoration Company 1,208,804.70 1,208,804.70 100.00 Irrecoverable
Dabao Cement Factory 1,901,383.56 1,901,383.56 100.00 Irrecoverable
Hainan Shenhai Real Estate Co., Ltd. 1,029,850.32 1,029,850.32 100.00 Irrecoverable
Shenzhen State-Investment Securities Co., Ltd. 1,409,934.28 1,409,934.28 100.00 Irrecoverable
Shenzhen Zhuce Real Estate Company 1,550,278.23 1,550,278.23 100.00 Irrecoverable
Sanya Land and Housing Administration 1,000,000.00 1,000,000.00 100.00 Irrecoverable
Jinguang Real Estate Company 1,752,100.00 1,752,100.00 100.00 Irrecoverable
Dingjia International Co., Ltd. 2,725,702.71 2,725,702.71 100.00 Irrecoverable
Hainan Zhongda Real Estate Company 2,210,779.10 2,210,779.10 100.00 Irrecoverable
Hainan Enxin Industry Co., Ltd. 2,314,592.00 2,314,592.00 100.00 Irrecoverable
Haikou Industrial Development Import and Export Co.,
1,392,430.00 1,392,430.00 100.00 Irrecoverable
Ltd.
Withdrawn as per the
Shanghai Real Estate Company of Hainan PEARL RIVER
68,747,525.99 1,882,525.99 2.74 estimated
Inustry Co., Ltd.
non-recoverable amount
Total 88,243,380.89 21,378,380.89 —
(2) Other receivables with non-significant single amount and individual provision for bad debts at the end of period
Closing Balance
Name Rate
Provision for Bad
Other Receivables Chargeable Reasons of Withdrawal
Account
（%）
Sell Dabao cement on a commission basis 560,610.00 560,610.00 100.00 Irrecoverable
Hainan Development Bank 440,000.00 440,000.00 100.00 Irrecoverable
Hainan Sanli Industry and Trade Company 283,478.62 283,478.62 100.00 Irrecoverable
Chamber of Commerce of Hainan
270,000.00 270,000.00 100.00 Irrecoverable
Province
Telephone rate of customers of PEARL
268,542.54 268,542.54 100.00 Irrecoverable
RIVER Square
China Construction Sixth Engineering 260,335.00 260,335.00 100.00 Irrecoverable
Closing Balance
Name Rate
Provision for Bad Chargeable
Other Receivables Reasons of Withdrawal
Account
（%）
Division Group, Ltd
Huazhou Jianan Company 200,000.00 200,000.00 100.00 Irrecoverable
PEARL RIVER Advertisement Company 184,911.62 184,911.62 100.00 Irrecoverable
Initial installation charge of telephone 156,271.60 156,271.60 100.00 Irrecoverable
Withdrawal of non-recoverable amount
Amount below RMB150000（31 units） 1,420,552.98 1,347,864.96 94.88
according to the estimate
Total 4,044,702.36 3,972,014.34 —
(3) Other receivables in the combination which adopts aging analysis method to determine provision for bad debt:
Closing Balance
Aging
Other Receivables Provision for Bad Account Rate Chargeable（%）
Within 1 year 22,414,335.66 448,286.72 2.00
1－2 years 1,393,200.00 69,660.00 5.00
2－3 years 31,393,200.00 3,139,320.00 10.00
3－4 years 78,693,146.00 15,738,629.20 20.00
4－5 years 124,437,458.54 37,331,237.56 30.00
Over 5 years 10,380,428.34 5,190,214.16 50.00
Total 268,711,768.54 61,917,347.64 —
Continued：
Opening Balance
Aging
Other Receivables Provision for Bad Account Rate Chargeable（%）
Within 1 year 1,435,771.76 28,715.44 2.00
1－2 years 31,393,200.00 1,569,660.00 5.00
2－3 years 78,693,146.00 7,869,314.60 10.00
3－4 years 124,437,458.54 24,887,491.71 20.00
4－5 years 10,166,939.34 3,050,081.80 30.00
Over 5 years 213,489.00 106,744.50 50.00
Total 246,340,004.64 37,512,008.05 —
(4) No bad account provision is withdrawn for the accounts receivable in the inter-company included in the range of consolidation.
2) Situation of the current bad debt provision withdrawn, recovered or reversed
The amount of current bad debt provision withdrawn was RMB24,401,407.60 yuan.
3) Category of other receivables under the natures of accounts
Item Closing Balance Opening Balance
Investment 250,400,000.00 230,400,000.00
Intercourse Funds with Related Parties 479,698,434.13 611,018,027.35
Borrowing, interest 16,981,016.24 15,237,677.88
Other 24,871,309.56 24,795,480.50
Total 771,950,759.93 881,451,185.73
4) There is no money owed by the shareholders who hold more than 5% (5% is included) of voting shares of the Company
in the closing other receivables.
5) Top 5 units of other receivables of the closing balance gathered on the basis of parties which owe the money:
Ratio in Closing Closing Balance
Nature of
Name Closing Balance Aging Amount of Other of Bad Debt
Money
Receivables (%) Provisions
Mudanjiang Pearl River
Wanjia Tourism
Borrowing 233,632,841.55 1-4 years 30.27
Investment Development
Group
Intercourse
Sanya Wanjia Hotel Funds, Within one year (15,589,388.32yuan)、
131,125,666.05 16.99
Management Co., Ltd. Borrowing 1-5 years（115,536,277.73yuan）
s
Money for
Project
Public Investment Co., Ltd 100,400,000.00 3-5 years 13.01 26,420,000.00
Combinat
ion
Money for
Beijing Kangtai Xingye Cooperatio
100,000,000.00 3-5 years 12.95 26,000,000.00
Investment Co.,Ltd n with
Project
Singapore Great Land Intercourse Within one year (21,743,338.36yuan)、
66,981,016.24 8.68 9,300,430.00
Holdings Co.,Ltd Funds 1-5 years（45,237,677.88yuan
Total 632,139,523.84 81.90 61,720,430.00
6) There is no other accounts receivable from the related parties
Note 3 Long-term Equity Investment
Closing Balance Opening Balance
Nature of Money Impairment Impairment
Book Balance Book Value Book Balance Book Value
Provision Provision
Investment in
299,420,000.00 40,000,000.00 259,420,000.00 299,420,000.00 40,000,000.00 259,420,000.00
subsidiaries
Investment in
33,811,762.82 33,811,762.82 34,464,905.62 34,464,905.62
associated companies
Total 333,231,762.82 40,000,000.00 293,231,762.82 333,884,905.62 40,000,000.00 293,884,905.62
1) Investment in subsidiaries
Current Impairment Closing Balance of
Initial Investment Opening Current Current Closing
Investee Provision Impairment
Cost Balance Increase Decrease Balance
Withdrawn Provision
Hainan PEARL RIVER Property
4,900,000.00 4,900,000.00 4,900,000.00
and Hotel Management Co., Ltd.
Hubei PEARL RIVER Real Estate
64,420,000.00 64,420,000.00 64,420,000.00
Development Co., Ltd.
Sanya Wanjia Hotel Management
120,000,000.00 120,000,000.00 120,000,000.00
Co., Ltd.
Current Impairment Closing Balance of
Initial Investment Opening Current Current Closing
Investee Provision Impairment
Cost Balance Increase Decrease Balance
Withdrawn Provision
Shanghai Real Estate Company of
Hainan PEARL RIVER Industry 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00
Co., Ltd.
Mudanjiang PEARL RIVER
Wanjia Tourist Investment 60,000,000.00 60,000,000.00 60,000,000.00
Development Group Co., Ltd.
Beijing Jiubo Culture
5,000,000.00 5,000,000.00 5,000,000.00
Development Co., Ltd.
河 Hebei Zhengshi Qinghui Real
5,100,000.00 5,100,000.00 5,100,000.00
Estate Development Co., Ltd.
Total 299,420,000.00 299,420,000.00 299,420,000.00 40,000,000.00
2) Investment in cooperative enterprises and associated enterprises
Current Increase or Decrease
Investee Opening Balance Investment Results Adjustment of Other
Additional Contribution
Recognized by Comprehensive
Contribution Reduced
Equity Method Income
1. Associated Enterprises
Sanya Wanjia Industry Co., Ltd. 34,464,905.62 -653,142.80
Total 34,464,905.62 -653,142.80
Continued：
Current Increase or Decrease Closing
Declared to grant Impairment Balance of
Investee Change of Other Closing Balance
cash dividends or Provision Other Impairment
Equities Reserve
profits Withdrawn
1. Associated Enterprises
Sanya Wanjia Industry Co., Ltd. 33,811,762.82
Total 33,811,762.82
Note 4 Operating income and operating cost
1) Operating income and operating cost
Current Amount Previous Amount
Item
Income Cost Income Cost
Other Business 1,683,542.77 355,593.60 1,170,529.02 355,593.60
Note 5 Investment income
Item Current Amount Previous Amount
Investment Income from the Long-term Equity Measured Under Equity
-653,142.80 -838,983.66
Method
Made during the period of tradable financial assets investment returns
Made during the period of available for sale financial assets investment
930,000.00
returns
Disposal of tradable financial assets investment returns
Disposal of available for sale financial assets investment returns 126,642,755.05 4,345,287.87
Total 125,989,612.25 4,436,304.21
XVI. Supplementary information
1) Breakdown of non-recurring profit or loss
Items Amount Description
Profit and loss on disposal of non-current assets 2,660,318.96
Fund occupation fee from non-financial enterprises included in the current profit and loss 1,645,711.41
In addition to the normal operation of the same business related effective hedging business,
holding the fair value of financial assets transaction, transaction financial liabilities generated by
126,642,755.05
the movement of the profit and loss, and the disposal of trading financial assets, financial
liabilities held for trading and available for sale financial assets to obtain investment income
Others non-operating income and expenses excluded as above -548,785.38
Other non-operating income and costs
Tax effects -21,669.25
Effects attributable to minority interests (after tax) 1,583.29
Total 130,379,914.08
2) Return on equity (ROE) and earnings per share ("EPS")
Weighted average return on net assets Earnings per share
Profit During Report Period
(%) Basic earnings per share Diluted earnings per share
Net profit attributable to ordinary shareholders of the
0.00 -0.25 -0.25
Company
Net profit after deduction of non-recurring profits or
losses attributable to ordinary shareholders of the 0.00 -0.56 -0.56
Company
3) Abnormal financial statements items ("F/S items") and description of reasons
(1) Consolidated balance sheet of consolidated financial statements
Ratio of
Item Closing Balance Opening Balance Reason of Change
Change
Mainly due to increase in loans in the current period.,
Currency Funds 205,762,131.54 97,404,192.62 111.25% collection in advance for the houses from the subsidiary Hubei
Real Estate Company
Mainly due to company hainan Pearl River property receivable
Accounts receivable 17,161,981.62 12,378,292.44 38.65%
increased property management fees.
Mainly due to the subsidiary , Hubei PEARL RIVER Real
Advances to suppliers 108,236,943.90 128,625,359.78 -15.85% Estate Development Co., Ltd, increase in
Prepayments for Meilin Qingcheng Phase III project .
Mainly due to the subsidiary, Hubei PEARL RIVER Real
Inventories 531,145,489.05 386,635,994.05 37.38% Estate Development Co., Ltd, increase in payments for Meilin
Qingcheng 3rd phase project .
Available-for-sale financial Mainly arising from increase in fair value of Southwest
11,411,309.90 184,158,809.90 -93.80%
assets Securities.
Mainly caused by some subsidiaries' construction in progress
Construction in progress 79,403,655.02 57,013,898.46 39.27% transferred into fixed assets in current period, such as the Snow
Town Construction of Mudanjiang Group.
Long term prepaid expenses 8,029,043.26 12,888,406.04 -37.70% Mainly due to increase in amortization of financing fees.
Mainly due to the repayment for trust loan from Mudanjiang
Short term borrowings 0.00 19,000,000.00 -100.00%
Group
Mainly due to the subsidiary , Hubei PEARL RIVER Real
Accounts payable 24,313,483.40 58,578,620.48 -58.49% Estate Development Co., Ltd, increase in
Prepayments for Meilin Qingcheng phase III project .
Mainly due to the company in hubei province increased real
Advances from customers 428,054,670.19 28,572,757.37 1398.12%
estate open to booking a house money
Mainly due to hubei property company opens to booking a
Taxes payable -5,255,663.63 4,603,277.48 -214.17%
house money to prepay taxes
Mainly due to company and its subsidiaries Increase the cost of
Interest payable 178,429,980.05 122,400,850.73 45.78%
financing.
Ratio of
Item Closing Balance Opening Balance Reason of Change
Change
Mainly due to repayment for loans from non financial
Other payables 561,278,959.68 780,359,522.08 -28.07%
institutions by the Company.
Current portion of
353,287,364.69 249,471,973.56 41.61% Mainly due to part in current long-term loan expires in a year.
non-current liabilities
Mainly arising from increase in fair value of Southwest
Deferred tax liabilities 629,227.79 23,187,756.33 -97.29%
Securities and carried over deferred tax liabilities
Other comprehensive Mainly arising from increase in fair value of Southwest
0.00 125,127,595.63 -100.00%
income Securities and carried over other comprehensive income.
Mainly due to the loss of subsidiaries Hubei Real Estate and
Minority interests -16,057,057.25 3,490,581.24 -560.01%
Hebei Real Estae.
(2) Consolidated Profit Statement and Cash Flow Statement
Ratio of
Item Closing Balance Opening Balance Reason of Change
Change
Mainly due to the hubei province Pearl River company the
Selling expenses 13,150,025.48 5,532,791.50 137.67
leads to increased sales agency fee
Mainly due to the increase of impairment provision arising
Impairment Loss of Assets 51,511,320.35 16,144,421.92 219.07% from the withdrawal of inventories and accounts paid in
advance.
Mainly due to the transfer of all investment income obtained
Investment income 126,095,109.54 4,566,600.41 2661.25%
from Southwest Securities
Mainly due to the gain on the disposal of current assets by
Non-operating income 3,501,882.36 1,014,289.20 245.25%
Mudanjiang Group.
Mainly due to the deferred tax assets deductible recognized by
income tax expenses 16,704,237.23 -14,662,339.82 213.93%
the Company
Net Profit/loss attributable Mainly due to the losses of subsidiaries Hubei Real Estate and
-19,547,638.49 -7,332,492.03 -166.59%
to minority shareholders Hebei Real Estate
Mainly due to the conversion of transferred other
Other comprehensive
-125,127,595.63 71,842,500.00 -274.17% comprehensive income of Southwest Securities into
income
investment income
Mainly due to the increase of money for presale of houses of
Net cash flows from
259,599,625.38 -243,681,708.74 206.53% Meilin Qingcheng Phase III project in subsidiary , Hubei Pearl
investing activities
River Real Estate Development Co., Ltd
Net cash flows from Mainly due to the cash received from the transfer of partial
132,040,295.78 -50,335,421.21 362.32%
investing activities shares of Southwest Securities.
Net cash flows from Mainly due to the increase of repayment and loans of parent
-263,281,982.24 309,059,079.88 -185.19%
financing activities company
Hainan Pearl River Holding Company Limited
23 April 2016
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