StockCode:000613,200613           ShortFormoftheStock:*STDonghai-A,*STDonghai-B

No:2018-009

         海南大东海旅游中心股份有限公司       Hainan  Dadonghai  Tourism  Centre  (Holdings)  Co.,  Ltd.Summary of Annual Report 2017                       DisclosureDate:1February2018

     HainanDadonghaiTourismCentre(Holdings)Co.,Ltd.

                      SummaryofAnnualReport2017

I.ImportantNotice

Thesummaryisabstractfromfull-textofannualreport,formoredetailsofoperatingresults,financialconditionandfuture

developmentplanoftheCompany;investorsshouldfoundinthefull-textofannualreportthatpublishedonmediaappointedby

CSRC.

Objectionstatementofdirectors,supervisorsandseniorexecutives

□Applicable√Notapplicable

.Promptofnon-standardauditopinion

□Applicable√Notapplicable

Profitdistributionpre-planofcommonstockorcapitalizingofcommonreservespre-plandeliberatedbytheBoardinthereporting

period

□Applicable√Notapplicable

TheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserve.

Profitdistributionpre-planofpreferredstockdeliberatedandapprovedbytheBoardinthereportingperiod

□Applicable√Notapplicable

II.Basicinformationofthecompany

1.Companyprofile

Shortformofthestock           *STDonghai-A,         Stockcode             000613,200613

                             *STDonghai-B

Stockexchangeforlisting          ShenzhenStockExchange

      Person/Waytocontact              SecretaryoftheBoard                Rep.ofsecurityaffairs

Name                        WangHongjuan

Officeadd.                    DadonghaiSanya

Fax.                         0898-88214998

Tel.                         0898-88219921

E-mail                       hnddhhn@21cn.com

2.Mainbusinessorproductintroductioninthereportingperiod

TheCompany'smainbusinessishotelaccommodationandcateringservices.Procurementofgoodsismainlythe

goodsandmaterialsnecessaryforhotelandcateringoperationsbytakingtheprincipleoflowpriceandfine

quality,somegoodSARepurchasedbydirectlysigningpurchasecontractswithsuppliers,andsomegoodare

purchasedbyprocurementagents.Theoperationaremainlyincludingthenetworkbillingandoverseastravel

agencyteam,andsupplementedbytheindividualtravelersofnon-internetmarketingandbusinessandthetourists

fromtravelagencies.ThehotelislocatedatthecentralzoneofDadonghaiscenicspotinSanyaCity,Hainan

Province,andithasbecomeamemberofthenationwidefamoushotelsbecauseoftheconvenienttransportation,

beautifulenvironment,longhistory,andrichculture.However,inrecentyears,thelocalhigh-,middle-and

low-gradehotelsorguesthousesnumerouslyemerge,resultinginthesupplymuchlargerthanthemarketdemand,

theindustrycompetitionisratherfierce,andthepressureofdeclineinbusinessremains.

3.Mainaccountingdataandfinancialindexes

(1)Mainaccountingdataandfinancialindexesforrecentlythreeyears

Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

                                                                                        InRMB

                                2017             2016        Changesoverlastyear      2015

Operatingincome                  27,906,564.23       21,708,883.51             28.55%    15,885,922.90

Net  profit  attributable  to

shareholders  of  the  listed        2,858,998.66       -2,661,052.49            207.44%    -7,477,866.40

company

Net  profit  attributable  to

shareholders  of  the  listed         779,389.74       -4,072,689.97            119.14%    -9,474,005.29

company   after   deducting

non-recurringgainsandlosses

Net cash flow arising from        5,127,288.47        2,766,372.02             85.34%    -1,745,526.28

operatingactivities

Basicearningspershare                   0.0079           -0.0073            208.22%         -0.0205

(RMB/Share)

Dilutedearningspershare                 0.0079           -0.0073            208.22%         -0.0205

(RMB/Share)

WeightedaverageROE                    3.78%            -3.52%            207.39%         -9.27%

                              Endof2017        Endof2016      Changesoverendof     Endof2015

                                                                   lastyear

Totalassets                      87,466,661.80      105,444,153.63            -17.05%   104,887,596.60

Net  assets  attributable  to       77,135,414.10       74,276,415.44              3.85%    76,937,467.93

shareholderoflistedcompany

(2)Quarterlymainfinancialindex

                                                                                        InRMB

                                            Firstquarter   Secondquarter   Thirdquarter     Fourth

                                                                                     quarter

Operatingincome                                9,383,454.29   5,712,819.13   5,239,573.04  7,570,717.77

Net profitattributable toshareholders of the listed    2,410,257.23    -691,003.43   -1,478,166.83  2,617,911.69

company

Net profitattributable toshareholders of the listed    2,410,257.23    -691,003.43   -1,478,166.83   538,302.77

companyafterdeductingnon-recurringgainsandlosses

Netcashflowarisingfromoperatingactivities           2,609,325.33    621,747.77    -917,735.98  2,813,951.35

Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancial

indexdisclosedinthecompany’squarterlyreportandsemi-annualreport

□Yes√No

4.Sharesandshareholders

(1)Particularsaboutcommonstockshareholders,preferenceshareholderswithvotingrightsrecoveredand

toptenshareholders

                                                                                        InShare

Totalcommon   21,624  Totalcommonstock     21,6  Totalpreference       0 Totalpreference           0

stock                 shareholdersatendof     24  shareholderswith         shareholderswithvoting

shareholdersin          lastmonthbefore            votingrights             rightsrecoveredatendof

reporting              annualreportdisclosed        recoveredatendof        lastmonthbeforeannual

period-end                                      reportingperiod          reportdisclosed

                                       Toptenshareholders

                                              Proporti                           Numberofshares

                                               onof                 Amountof    pledged/frozen

                                 Natureof               Amountof

     FullnameofShareholders                                            restricted

                                 shareholder     shares    sharesheld                Stateof   Amo

                                                                    sharesheld

                                               held                              share    unt

                              Domesticnon

LuoniushanCo.,Ltd.               state-owned       17.55%     63,885,980          0

                              corporate

                              Domesticnature

PanGuoping                                     8.48%     30,879,791          0

                              person

HGNHInternationalAsset

ManagementCo.,Ltd�Ccustomer      Foreign

                                               2.29%      8,327,502          0

                              corporate

deposit

                              Foreign

FirstShanghaiSecuritiesLimited                       2.28%      8,297,473          0

                              corporate

HainanYa’anResidenceProperty       Domesticnon

                              state-owned        2.25%      8,205,800          0

ServiceCo.,Ltd.

                              corporate

                              Domesticnature

JiangShuntou                                    1.80%      6,570,600          0

                              person

                              Domesticnature

HuJianguo                                      1.71%      6,227,640          0

                              person

                              Domesticnon

WanHuaTianzhiInvestmentand

                              state-owned        1.45%      5,277,400          0

DevelopmentCo.,Ltd.

                              corporate

ChinaInvestmentSecurities(HK)Co.,  Foreign

Ld.�Ccustomerdeposit                              1.30%      4,722,300          0

                              corporate

                              Domesticnature

ZhangFengxiu                                    1.07%      3,901,372          0

                              person

                                             Amongtheaboveshareholders,HainanYa’anResidenceProperty

                                             ServiceCo.,Ltd.isthewholly-ownedsubsidiaryofLuoniushan

                                             Co., Ltd. The Company is unknown whether there exists

Explanationonassociatedrelationshipamongtheaforesaid

                                             associatedrelationshiporbelongstotheconsistentactorregulated

shareholders                                   by the Management Measure of Information Disclosure on

                                             ChangeofShareholdingforListedCompanyamongtheother

                                             shareholders.

Explanationonshareholdersinvolvingmarginbusiness     N/A

(2)TotalpreferredstockshareholdersoftheCompanyandsharesheldbytoptenshareholderswith

preferredstockheld

□Applicable√Notapplicable

TheCompanyhadnoshareholderswithpreferredstockheldinthereporting.

(3)PropertyrightandcontrollingrelationshipsbetweentheactualcontrollersoftheCompanyandthe

Companyisasfollows:

5.Corporatebonds

WhetherornottheCompanypublicofferingcorporationbondsinstockexchange,whichundueorwithoutpaymentinfullat

maturityontheapprovaldateforannualreportdisclosed

No

III.Discussionandanalysisofoperation

1.Introductionofoperationinthereportingperiod

Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry

No

Duringthereportingperiod, thecompany realizedmainbusinessincomeof27,906,600Yuan,increasedby

6,197,700Yuancomparedwiththesameperiodlastyear,anincreaseof28.55%;investmentincomeof805,800

Yuan,decreasedby585,100Yuancomparedwiththesameperiodlastyear,andecreaseof42.70%;operating

profitof1,585,200Yuan,increasedby4,267,000Yuancomparedwiththesameperiodlastyear,anincreaseof

159.11%;netnon-operatingincomeof1,273,800Yuan,increasedby1,253,100Yuancomparedwiththesame

periodlastyear,anincreaseof6053.62%;netprofitof2,859,000Yuan,increasedby5,520,100Yuancompared

withthesameperiodlastyear,anincreaseof207.44%.

Duringthereportingperiod,theCompanyfocusonmarket-orientedandusemarketingstrategyinaflexibleway

toexploitedthesaleschannel,meanwhile,strengtheningenterprisecultureconstructionaswellastheemployee

team-building,makingeffortstoimproveproduct’squality,strictlycontrollingthecostmanagement,perfectthe

Company’sinternalcontrolsysteminordertoreducetherisksandconsumptionsformoreincomeearnsandless

expenditurecosts,wecompletedtheoperationtargetsthatformulatedatbeginningoftheyearbasically.Main

workSAReas:

1.Market-oriented,usemarketingstrategyinaflexiblewaytoexploitthesaleschannel

Duringthereportingperiod,theCompanyactivelyexpandedthenetworkmarket,theRussianmarketandthe

southwest,north,eastandsouthernChinamarketsinadditiontofurtherconsolidatingitsexistingcustomerbases

orientedbymarketswithflexibleutilizationofmarketingstrategies.Besides,increasingcooperationwasmade

bytheCompanywithdomesticandforeignwell-knowntravelagencies,salesnetworkplatformsanddirect-sale

travelagencies in thefirst andsecond tier cities.The Companyalso conducted implementationofsales

incentivesandsalesmechanisminvolvingeverystaff,toincreasethemarketshareintermsofsales.Duringthe

reportingperiod,therevenueoftheCompanyfromoverseassales,networksales,meetingteamsandindividual

visitorsfromtravelagencies  increasedsignificantlyoverthesameperiodoflastyear.Therevenuefromits

majoroperatingbusinesswasRMB27.9066million,representingayear-on-yearincreaseof28.55%ascompared

totherevenueofRMB6.1977millionofpreviousyear.

2.People-oriented,strengthentheenterprisewithhigh-quality,strivetoimproveproductqualityandenhancethe

competitive-nessofenterprises

Inreportingperiod,inlinewiththeHuman-Orientedemploymentideality,wecontinuouslyenrichedtheculture

lifeforemployees,createaharmoniousworkingenvironmentandstrengthentheconstructionofenterpriseculture

andstaff-building.Atthesametime,createnewmanagementmechanism,motivateandmobilizedtheenthusiasm,

initiative and creativity of the staff. Based on the management idealof “strengthen the enterprise with

high-quality”,weconstantlystrengthenthehotelmanagementandcarriedoutskilltraininginpre-jobfortheir

basicinformation and the after-job for business ability improvement.Enhance the servicestandards and

consciousness,aswellasthesenseofresponsibilityandquality,effectivelyimprovedtheservicequalityand

managementstandards,andimprovingthequalityofthehotelandcomprehensivecompetitiveness.

3.Strictlycurbthecostsand budgetmanagement, improveinternalcontrolmechanism, reducingrisksand

consumptions,increaserevenueandreduceexpenditures,safetyinproductiontomaximizetheinterestofthe

enterprise

Duringthereportingperiod,theCompanycontinuedtofocusonfinancialmanagement,improvetheprocurement

management system, strengthen management of procurement cost control and budget management, adopt

diversifiedmeanstoobtainprocurementpriceinquiry,suchasnetworkpriceinquiry,thehotelindustryprice

inquiryandothermeasures,obtaincostinquiryfromoverthreesupplierstoselectthebestone,controloperating

costsinascientificmanner,strictlycontrolvariousexpenseandexpenditures,frequentinspectionandrepairto

preventwasteofresources,whichenabledtheCompanytoeffectivelyimprovethereasonablenessofprocurement

costandcosteffectiveness.Besides,humanresourcescostwaseffectivelybroughtdownduetooptimizedorgan

establishmentandpersonneldistribution.Atthesametime,theCompanycontinuedtoimprovetheinternalcontrol

system, strengthen regulation and implementation of internal control system, strengthen the effective

implementationofinternalcontrolwork,reducerisksandconsumption,increaserevenueandcontrolexpenditures,

emphasizeproductionsafetyandimproveoperationalefficiency,toensuretheoperationsafetyandthusmaximize

theinterestsoftheCompanyasawhole.

In2018,theCompanycontinuetoconsolidateandexpandsaleschannels,improvethehotel’squalityandservice

standards,andenhancethecomprehensivecompetitiveness,tolayingoutasolidfoundationforsustained,stable

andhealthydevelopmentoftheCompany.

2.Whetherthemainbusinesshadmajorchangeinthereportingperiod

□Yes√No

3.Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincome

oroperatingprofit

√Applicable□Notapplicable

                                                                                        InRMB

                                                      Increase/decrea  Increase/decrea  Increase/decrea

    Name       Operating    Operatingcost    Grossprofit   seofoperating  seofoperating    seofgross

                 revenue                      ratio      revenuey-o-y    costy-o-y      profitratio

                                                                                     y-o-y

Roomrevenue    21,103,123.09    7,535,564.46        58.50%       24.77%       104.77%        18.46%

Catering

entertainment     3,588,469.77      96,720.11       46.86%       62.83%       122.44%        -3.60%

income

Roomrevenue     3,214,971.37    2,575,164.32        85.24%       24.08%        38.59%        8.98%

4.Whetherthecharacteristicsofmanagementseasonalorcyclicalneedspecialattention

□Yes√No

5.Inthereportingperiod,noteofmajorchangesinoperatingincome,operatingcost,totalnetprofit

attributabletocommonstockshareholdersoflistedcompanyorcomposingthepreviousreportingperiod

□Applicable√Notapplicable

6.Particularaboutsuspendedanddelisting

□Applicable√Notapplicable

7.Relevantitemsinvolvingfinancialreport

(1) Particulars about the changes in aspect ofaccounting policy, estimates and calculation method

comparedwiththefinancialreportoflastyear

√Applicable□Notapplicable

1.Changeofaccountingpolicy

AccordingtotheNoticefromtheMinistryofFinanceonIssuingandAmendingthe"EnterpriseAccountingStandardsNo.16-

GovernmentSubsidy”(CK[2017]15),anyenterpriseapplyingEnterpriseAccountingStandardsisrequiredtoimplementthenotice

since12June2017,andfutureapplicablemethodshallbeadoptedwithrespecttothegovernmentsubsidiesexistedon1January

2017.AnyenterpriseapplyingEnterpriseAccountingStandardsisrequiredtoimplementthe"EnterpriseAccountingStandardsNo.

42-Non-currentAssetsHeldforSale,DisposalGroupandDiscontinuingOperation”issuedin2017since28May2017,andfuture

applicablemethodshallbeadoptedwithrespecttothenon-currentassetsheldforsale,disposalgroupanddiscontinuingoperation

existedasofthedateofimplementation.On25December2017,theMinistryofFinanceissuedtheNoticeonAmendingthe

GeneralFormattingofEnterpriseFinancialStatement(CK[2017]30)tomakeamendmenttothegeneralformattingoffinancial

statements,whichwasapplicabletothefinancialstatementspreparedfor2017andotherfutureaccountingperiods.

Theabovechangesinaccountingpolicieshavenoeffectontheamountreportedinthefinancialstatementsofthe

Company.

2.Changeofaccountingestimates

Majoraccountingestimateshavenochangesinthereportingperiod.

(2)Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement

□Applicable√Notapplicable

NomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod.

(3)Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope

□Applicable√Notapplicable

Nochangesinconsolidationstatement’sscopefortheCompanyintheperiod.

                                                        BoardofDirectorsof

                                 HAINANDADONGHAITOURISMCENTER(HOLDINGS)CO.,LTD.

                                                         30January2018