宋城演艺:2021年年度报告（英文版）

Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Songcheng Performance Development Co. Ltd
2021 Annual Report
April 2022
1Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Section I Important Notes Contents And Definitions
The Board of Directors the Board of Supervisors directors supervisors and senior
management members of the Company hereby guarantee that the information
presented in this annual report is authentic accurate complete and free of any
false records misleading statements or material omissions and they will bear joint
and several liabilities for such information.Shang Lingxia the person in charge of the Company Chen Shengmin chief
accountant and Zhu Shana head of accounting department (Accounting Officer)
hereby declare and warrant that the financial statements in the annual report are
authentic accurate and complete.All directors attended the meeting of the Board of Directors for deliberation of this
annual report.The content concerning the future plan and performance forecast in this report
shall not constitute the Company's substantial commitment to investors and
relevant persons who shall maintain adequate risk awareness and shall understand
the differences between the plans forecasts and commitments.The risks that the Company may face in management and countermeasures have
been stated in “XI. Outlook for the Future Development of the Company” of
“Section III Discussion and Analysis of Management of the Company”. Investors are
kindly reminded to pay attention to possible investment risks.
2Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
The profit distribution proposal approved by the Board of Directors is: Taking
2614694040 as the basis RMB 0.50 (tax included) of cash dividend and 0 bonus
share (tax included) for every 10 shares will be distributed to all shareholders and
0 share capitalized from the capital reserves will be distributed to all the
shareholders for every 10 shares.Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021年年度报告”) and the published annual report in the Chinese version shall prevail. The
complete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn.
3Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Table of Contents
Section I Important Notes Contents And Definitions....2
Section II Company Profile and Key Financial Indic....8
Section III Discussion and Analysis of Management .. 13
Section IV Corporate Governance..................... 41
Section V Environment and Social Responsibility .... 61
Section VI Significant Events ...................... 62
Section VII Changes in Shares and Information abou.. 75
Section VIII Information of Preferred Shares ....... 84
Section IX Information of Bonds .................... 85
Section X Financial Report ......................... 86
4Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Directory of Reference Files
I. The financial statements signed and sealed by the legal representative the chief accountant and the person in charge of
accounting institution (Accounting Officer) of the Company.II. The original copy of the Audit Report with the seal of the Accounting Firm and signed and stamped by Certified Public
Accountants.III. Originals of all the Company's documents and announcements published on the website designated by China Securities
Regulatory Commission during the reporting period.IV. Other related information.The said documents are prepared and placed at the Company's Securities Investment Department
5Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Definitions
Item Refers To Definitions
Company the Company Songcheng
Refers To Songcheng Performance Development Co. Ltd
Performance
Hangzhou Songcheng Group Holdings Co. Ltd the controlling
Songcheng Group Songcheng Holdings Refers To
shareholder of the Company
Hangzhou Songcheng performance Valley technology and Culture
Songcheng Performance Valley Company Refers To
Development Co. Ltd a wholly-owned subsidiary of the Company
Hangzhou Paradise Company Refers To Hangzhou Paradise Co. Ltd a wholly-owned subsidiary of the Company
Songcheng Performance Management Co. Ltd a wholly-owned
Songcheng Art Troupe Refers To
subsidiary of the Company
Songcheng Tourism Development Co. Ltd a wholly-owned subsidiary of
Songcheng Tourism Refers To
the Company
Sanya Romance Tourism Performance Co. Ltd a wholly-owned subsidiary
Sanya Romance Show Company Refers To
of the Company
Lijiang Chama Ancient City Tourism Development Co. Ltd a
Lijiang Chama Ancient City Company Refers To
wholly-owned subsidiary of the Company
Aba Zhou Jiuzhai Romance Tourism Development Co. Ltd a
Jiuzhai Romance Show Company Refers To
wholly-owned subsidiary of the Company
Shanghai Songcheng World Expo Performance Development Co. Ltd a
Shanghai Songcheng Company Refers To
holding subsidiary of the Company
Guilin Lijiang Romance Performance Development Co. Ltd a holding
Guilin Romance Show Company Refers To
subsidiary of the Company
Zhangjiajie Romance Performance Development Co. Ltd a wholly-owned
Zhangjiajie Romance Show Company Refers To
subsidiary of the Company
Xi'an Romance Performance Development Co. Ltd a holding subsidiary
Xi'an Romance Show Company Refers To
of the Company
Foshan South Sea Qiao Mountain Cultural Tourism Development Co. Ltd
Foshan Romance Show Company Refers To
a wholly-owned subsidiary of the Company
Xitang Songcheng Performance Valley Zhejiang Songcheng Xitang Performance Valley Performance
Refers To
Company Development Co. Ltd a wholly-owned subsidiary of the Company
Zhuhai Songcheng Performance Kingdom Co. Ltd a wholly-owned
Zhuhai Songcheng Company Refers To
subsidiary of the Company
Songcheng International Refers To Songcheng Performance International Development Co. Ltd a
6Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
wholly-owned subsidiary of the Company
Hangzhou Songcheng Technology Development Co. Ltd a wholly-owned
Songcheng Technology Refers To
subsidiary of the Company
Hanghzou Songcheng Dumuqiao Travel Services Co. Ltd a wholly-owned
Dumuqiao Travel Agency Refers To subsidiary of Songcheng Tourism Development Co. Ltd a wholly-owned
subsidiary of the Company
Songcheng (Australia) Entertainment Pty Ltd. a wholly-owned subsidiary
Songcheng Entertainment Company
Refers To of Songcheng Performance International Development Co. Ltd a
(Australia)
wholly-owned subsidiary of the Company
Jiuzhaigou Tibetan Mystery Culture Co. Ltd a holding subsidiary of the
Jiuzhai Tibetan Mystery Company Refers To
Company
Beijing Huafang Technology Co. Ltd a joint stock company of the
Huafang Technology Refers To
Company
China Securities Regulatory Commission
Refers To China Securities Regulatory Commission
(CSRC)
Shenzhen Stock Exchange (SZSE) Refers To Shenzhen Stock Exchange
yuan ten thousand yuan Refers To RMB RMB Ten Thousand
7Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock Abbreviation 宋城演艺 Stock Code 300144
Company Name in Chinese Songcheng Performance Development Co. Ltd
Company Abbreviation in宋城演艺
Chinese
Company Name in Foreign
Songcheng Performance Development Co. Ltd
Language (If any)
Abbreviation of Company
Name in Foreign Language (If Songcheng Performance
any)
Legal Representative Shang Lingxia
Registered Address 148 Zhijiang Road Hangzhou City Zhejiang Province
Post Code of Registered
310008
Address
Previous changes of registered
Not applicable.address of the Company
Office Address 148 Zhijiang Road Hangzhou City Zhejiang Province
Post Code of Office Address 310008
Internet Website of the
https://www.songcn.com/Shares/
Company
E-mail sczq@songcn.com
II. Contact Person and Contact Information
Secretary of the Board Representative of Securities Affairs
Name Hou Li Hou Li
148 Zhijiang Road Hangzhou City Zhejiang 148 Zhijiang Road Hangzhou City Zhejiang
Contact Address
Province Province
Tel. 0571-87091255 0571-87091255
Fax 0571-87091233 0571-87091233
E-mail hl@songcn.com hl@songcn.com
8Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
III. Information Disclosure and Location
Website of the stock exchange for release of the
Securities Times Securities Daily
Annual Report
Name and website of the media for release of the
http://www.cninfo.com.cn
Annual Report
Location for Annual Report of the Company Securities Investment Department of the Company
IV. Other Related Information
Accounting Firm Hired by the Company
Name of the Accounting Firm BDO China Shu Lun Pan CPAs (special general partnership)
Office Address of the Accounting
No. 61 Nanjing East Road Shanghai
Firm
Name of Certified Public
Ni Yilin Wang Bin
Accountant
The sponsor institution hired by the company to perform the continuous supervision in the reporting period
□ Applicable √ Not applicable
The financial adviser hired by the company to perform the continuous supervision in the reporting period
□ Applicable √ Not applicable
V. Key Accounting Data and Financial Indicators
Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
□ Yes √ No
Increase/decrease
2021 years 2020 years compared with 2019 years
previous year
Operating income (RMB) 1184864639.25 902586125.63 31.27% 2611753208.86
Net profit attributable to
shareholders of the listed 315130771.75 -1752398009.60 117.98% 1339790994.94
Company (RMB)
Net profit attributable to
shareholders of the listed company
267809723.49-1767861638.68115.15%1222100617.31
after deducting non-recurring
gains and losses (RMB)
Net cash flow generated by
750473809.79393941899.9490.50%1571451499.51
operational activities (RMB)
Basic Earnings per Share
0.1205-0.6702117.98%0.5124
(RMB/Share)
9Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Diluted Earnings per Share
0.1205-0.6702117.98%0.5124
(RMB/Share)
Weighted Average ROE 4.22% -20.50% 24.72% 14.52%
Increase/Decrease at
the end of the current
End of 2021 End of 2020 year compared with End of 2019
the end of the
previous year
Total assets (RMB) 9826508029.84 9195342831.06 6.86% 11041076933.58
Net assets attributable to
shareholders of the listed company 7644770822.36 7412287432.06 3.14% 9614069166.64
(RMB)
The lower of the Company's net profit before and after deduction of non-recurring profit and loss for the last three fiscal years is
negative and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue operating
□ Yes √ No
The lower of net profit before and after deduction of non-recurring profit and loss is negative
□ Yes √ No
Total share capital of the Company as at the trading date preceding the disclosure:
Total share capital of the Company as at the trading date
2614694040
preceding the disclosure (share)
Whether the share capital has been changed for issuance of new shares addition allotment exercise of equity incentives and
buy-back and whether the amount of the owners' equity is influenced from the end of the reporting period of the Company to the
disclosure date of the annual report
□ Yes √ No
Preferred stock dividends paid 0.00
Perpetual bond interest paid (RMB) 0.00
Fully diluted earnings per share calculated with the latest
0.1205
share capital (RMB/share)
VI. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 306452312.38 428062906.79 281121818.86 169227601.22
Net profit attributable to
132387788.43245941775.6454196299.52-117395091.84
shareholders of the listed company
Net profit attributable to
130105035.10187941310.9752216568.36-102453190.94
shareholders of the listed company
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after deducting non-recurring
gains and losses
Net cash flow generated by
86395031.59394658000.83257089474.6012331302.77
operating activities
Whether the above financial indicators or their totals are significantly different from the financial indicators disclosed in the
Company’s quarterly and semi-annual reports
□ Yes √ No
VII. Differences in Accounting Data Under Domestic and Foreign Accounting Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the reporting period of the company there is no difference between the net profits and net assets in the financial reports
disclosed according to international accounting standards and Chinese accounting standards.
(2) Differences between the net profits and net assets in the financial reports disclosed according to the
overseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the reporting period of the company there is no difference between the net profits and net assets in the financial reports
disclosed according to overseas accounting standards and Chinese accounting standards.
3. Reasons for differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
Note: If the data audited by an overseas audit firm is adjusted for differences the name of the overseas firm shall be indicated.VIII. Non-recurring Gains and Losses Items and Their Amounts
√ Applicable □ Not applicable
Unit: RMB
Item Amount in 2021 Amount in 2020 Amount in 2019 Note
Profits or losses from disposal of
non-current assets (including the write-off 25044233.19 -37625882.13 70970952.64
for the accrued impairment of assets)
Government subsidies included in the
current profits and losses (except those
4656601.3135618594.195629978.38
closely related to the Company’s normal
business and continuously granted in
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accordance with a certain standard quota or
quantity set by national policies and
regulations)
In addition to the effective hedging business
related to normal business of the Company
the profits and losses from the changes in
fair value for holding trading financial assets
13096973.8319619586.8352061383.80
and trading financial liabilities and
investment income from disposal of trading
financial assets trading financial liabilities
and available-for-sale financial assets.Non-Operating Revenue and expenses other
3502874.67-509618.20-19029327.85
than the above
Less: Impact of income tax -2293110.04 2230795.39 -7184125.78
Impact of minority equity (after tax) 1272744.78 -591743.78 -873264.88
Total 47321048.26 15463629.08 117690377.63 --
Details of other gain and loss items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company did not have any details of other gain and loss items that meet the definition of non-recurring gains and losses.Description of defining the non-recurring gain and loss items which are listed in Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and loss items
□ Applicable √ Not applicable
The Company did not classify any item of the non-recurring gain and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and
loss items in the reporting period.
12Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Section III Discussion and Analysis of Management of the Company
I. Industry Overview during the Reporting Period
1. The Overall Trend of the Industry
(1) Normalized Pandemic Prevention and Control and Industrial Short-term Development Impacted by the Pandemic
Data released by the National Bureau of Statistics shows that in 2021 the number of domestic tourists grew by 12.89% over the
previous year to 3.25 billion but was only at 54.11% of the 2019 level. The domestic tourism revenue was RMB 2919.1 billion an
increase of 30.98% year on year but was only at 50.99% of the 2019 level. Affected by the COVID-19 pandemic the domestic
tourism market declined sharply in 2020 ending the continuous growth for 16 consecutive years since 2004. Though 2021 saw
recovery to some extent the market performance remained unsatisfactory. The COVID-19 pandemic had a great impact on the
tourism industry and it also driven away a large amount of speculative capitals in the society cleared out most inferior suppliers
that lack capitals and creativity and forced enterprises to work on intelligent hardware themes and atmosphere content-based
scenarios and services and reception thus facilitating the emergence of a number of products integrating elements such as culture
tourism and technology. In the long run enterprises with abundant resources sufficient creativity convenient transportation and
good supporting facilities have stronger risk-resistance ability and market competitiveness.
2018 years 2019 years 2020 years 2021 years
Number of domestic tourists (xxx billion) 55.39 60.06 28.79 32.50
Domestic tourism revenue (RMB xxx billion) 51278.30 57250.92 22286.30 29191.00
(2) Continuous Policy Support for Promotion of Long-term High-quality Development of the Industry
Although there are great difficulties in short-term development tourism as a strategic pillar industry of the national economy has
obvious advantages in adjusting the industrial structure creating job opportunities and narrowing regional development gaps.China continuously issues various tourism promotion policies thus facilitating the long-term high-quality development of the
industry. In 2021 the State Council issued the “Development Plan for the Tourism Industry during the 14th Five-Year Plan Period” to
deepen the integration of culture and tourism as well as accelerate the construction of a strong tourism industry thus achieving the
higher-quality development of the tourism industry. According to the plan by 2025 the tourism industry will continue to improve
with a more complete modern tourism system. There will be more effective high-quality and flexible supply resources for tourism
and the consumption demand of the general public will be better met. The Ministry of Culture and Tourism has released documents
such as the “Development Plan for the Culture Industry during the 14th Five-Year Plan Period” “Development Plan for Culture andTourism during the 14th Five-Year Plan Period” and “Plan for Artistic Creation during the 14th Five-Year Plan Period” so as to
accelerate the improvement of the modern culture industry system promote the high-quality development of the culture industry
and build a socialist country of a strong power of culture.
(3) Constantly Developed Economy and Society for a Broad Space for Industrial Development
Sustained economic development and social progress have boosted the long-term sound development of the tourism industry. Over
the past 70 years China has built a complete modern industrial system created a unified free-circulation nationwide market and
constructed global leading infrastructure. China’s middle-income group has quickly grown to a large population. The period has
witnessed continuously growing national economy improved people’s living standards and enhanced purchasing power. According
to global precedent a country with per capita GDP between USD 10000 and 30000 experiences the fastest growth of consumption
for pleasure such as tourism leisure culture and entertainment. In 2021 China’s per capita GDP reached USD 12600 which was
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close to the threshold of high-income countries released by the World Bank. People has changed their consumption habit from
material consumption to consumption for pleasure. Therefore there is broad room for development in the culture and tourism
industry.
(4) Innovation-driven Development and Technology Empowerment
The new round of technological revolution and industrial reform and the innovation-driven development strategy will continuously
promote the creation of new products new formats and new models and provide strong impetus for the transformation and
upgrade of the culture and tourism industry. With the popularization of technologies such as big data cloud computing Internet of
Things blockchain and 5G Beidou System virtual reality and augmented reality smart tourism featuring digitization network and
intelligence is gaining momentum. “Internet +” scenic spots digital experience and products and immersive and interactive
experience have emerged to offer constantly improved culture and tourism experience. Technological innovation is constantly
leading and supporting the development of culture and tourism industry and shaping a new landscape of the industry.
2. The Company's Market Position and Strengths in the Industry
Songcheng Performance is China’s leading comprehensive culture and tourism service provider. It is one of China’s top 30
enterprises in the culture industry. It is approved as a national demonstration base for integration of culture and technology. Its
business scope covers live performance and tourism service. The Company engages itself in segmented markets such as culture and
art tourism and leisure. The Company has created a unique business model of “Theme park + Cultural performance” and operates
more than 10 scenic spots nationwide and develops nearly 100 different shows. The Company leads the industry in the number of
theaters the number of seats the number of performances audience visits operating efficiency etc. “Songcheng” and “RomanceShow” have established good brand awareness and have been widely praised in the industry thus becoming the great strengths of
the brand.II. The Principal Business of the Company during the Reporting Period
(I) Vision and mission
The Company upholds the business philosophy of “a drop of water in need shall be returned with a spring in deed” to provide
customers with heartwarming on-site entertainment experience. It is dedicated to telling China’s stories through the Chinese culture
promoting confidence of the nation and striving to become the world’s top Company in cultural performing arts.(ii) The Principal Business of the Company
In the reporting period the Company was mainly engaged in live performance and tourism service.Live performance: The Company has created a unique business model of “Theme park + Cultural performance”. Relying on
“Songcheng” and “Romance Show” and based on specific scenarios such as theme parks the Company provides tourists with
high-quality culture and tourism products characterized by a variety of art performances. Projects under operation include
Hangzhou Songcheng Park Sanya Romance Park Lijiang Romance Park Jiuzhai Romance Park Guilin Romance Park Zhangjiajie
Romance Park Xi'an Romance Park Shanghai Romance Park etc. Several new projects are under construction or going to be
constructed.Tourism services include light-asset output business and online sales of tickets. For light-asset output business the Company
provides partners with brand authorization planning and design directing and creation entrusted operation and other services so
as to earn income through service fees and entrusted operation management fees. Light-asset projects under operation include
Tanhe Ancient City Yichun Mingyue Romance Park and Zhengzhou Huangdi Romance Park. Online sales of tickets refer to online
direct sales and distribution of tickets of performances and projects operated by the Company and sales of joint tickets and ticket
packages with third-party providers.
14Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
III. Core Competitiveness Analysis
After continuous efforts the Company has established nationwide chain operation with more than 40 million regular audiences per
year in normal times. Our market share ranks among the top and continues to increase with rising efficiency in resource allocation
and brand influence. As a leading enterprise in China's performing arts industry the Company's core competitiveness is mainly
reflected in the following aspects:
1. Advantage in the Business Model
Centering on performing arts in theme parks with creativity the Company is different from traditional companies in performing arts
and tourism. The business mode of "theme park + cultural performance" helps solve high performance costs high traffic attraction
costs and low frequency of audience replacement faced by common performing arts enterprises without self-owned venues. For
the tourism industry the mode has overcome shortcomings of insufficient core competitiveness poor reproducibility excessive
reliance on large-scale amusement equipment low marginal effect homogeneous services and weak profitability of traditional
enterprises. The Company is transforming from the Romance Show model characterized by “one show and one park” to the
performance theme park model characterized by “multiple theaters shows activities and tickets” a move to enrich business
operations and aim for stronger competitiveness.
2. Brand advantages
The Company has established cultural performance platforms nationwide thus leading the industry in the numbers of projects
theaters and seats performance sessions and viewers and growing into the largest domestic art performance group with a widely
recognized brand. The Company’s market reputation and strong brand influence have benefited its project expansion resource
integration recruitment and market expansion.
3. Advantages in locations
The Company was one of the first to enter China's first-tier tourism and leisure destinations and most commercially developed cities
thus occupying locations with the most traffic in the surrounding areas. The Company thus has significant advantages in region and
location. The location advantage has improved the convenience and reduced the costs for the Company to carry out businesses and
made it difficult for potential competitors to enter the local market. The Company will continue to operate steadily implement the
expansion strategy based on schedules and continuously strengthen and consolidate the location advantage.
4. Advantage in Cultural Values
The Company has always rooted its business in Chinese culture and the spirit of Chinese people. Through in-depth on-site
investigations and extensive research the Company has integrated cultural values art and commerce and shouldered its
responsibility to deliver cultural values among people and tell Chinese stories through Chinese culture thus creating many
high-quality artistic works and achieving sound economic and social benefits.
5. Advantage in Creativity
The Company has strong creativity capability and rich creativity practices. The barrier in creativity established over the years is
difficult for its competitors to break. This top-level design featuring creativity ensures the success of the projects. After years of
development the Company has built a team with creativity professionalism dedication passion and vitality. The Company has
created a closed-loop industrial chain involving site selection planning and design construction investment directing and creation
stage choreography park operation marketing and service upgrade. Strong creativity and professional capabilities across the whole
industrial chain ensure the Company’s differentiated operation and continuous innovation so that the Company can better control
costs improve efficiency and enhance profitability.
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6. Advantage in Technology
The Company persists in technology-driven development to innovate services through technology. It always pays close attention to
technological progress and has integrated virtual and real stage design with cutting-edge digital technologies to create a dream-like
immersive scene and to bring tourists extraordinary experience. The Company continues to promote the deep integration of cultural
creativity and technology to create culture and tourism products that feature “culture + tourism + technology” and culture and
tourism scenarios that integrate reality with virtual technology leading the development of the industry.
7. Platform advantages
The Company aims to transform into a platform-based enterprise. With an open mind it has encouraged free mobility and
aggregation of personnel content resources and other factors and takes the lead in integrating and reconstructing the upstream
and downstream of the industrial chain so as to realize high-efficiency operations at low costs. By transforming itself from a
content-based company that emphasizes creativity to a platform-based one that integrates content creation art appreciation and
social contact the Company has created greater value for itself and the cultural performance industry.
8. Advantage in Operation
Over years of development the Company has demonstrated abilities to respond quickly implement plans efficiently and keeps pace
with the times in its operations. The Company implements flexible marketing strategies attaches great importance to the
application of social media we-media and private traffic gives full play to the power of creativity and carries out creative marketing
online and offline to reach clients accurately at low costs. The Company is capable of making planning as well as providing reception
and other services for a large number of tourists so as to bring them extraordinary experience and make their trips joyful.IV. Main Business Analysis
1. Overview
2021 marked the first year of the 14th Five-Year Plan. In 2021 China led the world in economic development and pandemic
prevention and control. However the impact of the change in global landscape and the impact of the COVID-19 pandemic were
unprecedented in a century. For one thing the COVID-19 virus constantly mutated and sporadic cases challenged the dynamic
zero-COVID policy resulting in normalized measures for pandemic prevention and control. For another the instability in the global
landscape continuously worried people and affected the recovery of consumer confidence. The complex changeable external
environment affected the consumption demand and the normal operation of the culture and tourism industry which led to the
sluggish recovery of the industry.Facing the complex environment and various challenges at home and abroad the Company kept in mind its vision and mission
came up with creative ideas and adhered to innovation gave full play to its advantages so as to make reasonable and effective
arrangements for the operation schedule of each project thus showing strong resilience. During the reporting period the Company
achieved operating income of RMB 1184.8646 million a year-on-year increase of 31.27%; net profit attributable to shareholders of
the listed Company was RMB 315.1308 million a year-on-year increase of 117.98%; net profit attributable to shareholders of the
listed Company after deducting non-recurring gains and losses was RMB 267.8097 million a year-on-year increase of 115.15%.As the impact of the change in global landscape and the impact of the COVID-19 pandemic unseen in a century are expected to
continue the world is going to face more stress and more complicated risks and challenges in the long term. The Company is well
aware of this situation and has prepared itself for a prolonged difficult time. Facing the uncertainty of the future the Company
should not only maintain its advantages but also pursue the development and it should insist on doing things within the its
capabilities.
16Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
During the reporting period the Company innovated the management of Hangzhou Songcheng Park and Shanghai Romance Park
continuously adjusted spatial layout innovated diverse content optimized the visiting routes and promoted the breakthrough and
upgrade of the cultural performance park model so as to lay the foundation for the operation recovery of the Company in the short
term; the Company integrated advantageous resources increased investment and accelerated the construction of
technology-infused theme parks so as to ensure the medium-term development of the Company; the Company strengthened
market research and drew upon experiences carried out drastic integration and optimization from the aspects of industrial layout
project layout light asset expansion etc. and accelerated the implementation of platform development strategy so as to make
sufficient preparations for the Company's long-term development. The Company thoroughly reconstructed the organizational
structure personnel structure and management process and strengthened fine operation management to secure the Company's
overall development. The key tasks carried out by the Company during the reporting period are as follows:
(1) Promote the breakthrough and upgrade of the cultural performance park mode
The Company used Hangzhou Songcheng Park and Shanghai Romance Park as models to seek new changes. It continued to make
efforts in terms of spatial layout content and products visiting routes and event marketing thus promoting the continuous
breakthrough and upgrade of the cultural performance park model.Based on the advantages as the headquarters Hangzhou Songcheng Park actively explored the mode featuring multiple theaters
multiple types and multiple sessions for performances and accelerated content enrichment and diversification. The outdoor version
of “The Romantic Show of Song Cheng” the real-scene performance “The Enchanting Bagpipe” and the light-and-shadow show “MyAll” made a stunning appearance. The total duration of all shows increased from 120 minutes to 300 minutes. The park also
introduced famous plays such as “Thunderstorm” and “Worry-free Grocery Store” and jointly hosted the 2nd “Zhi Sheng” Mental
Games and “Zhi Sheng” Mental Sports Industry Expo with the Hangzhou branch of Chinese Chess Academy to effectively meet the
needs of various groups including individual tourists parents and children as well as students. The Company adjusted and optimized
visiting routes so that the duration of stay of tourists in the park has been increased from 3 hours to 6 hours; special themed events
for young people such as the Halloween-themed “Night in Songcheng” and “Night for the celebration of Christmas and New Year”
have been launched thus setting new records in the number of sessions and tourists. In 2021 Hangzhou Songcheng Park was
awarded as one of “First batch of national-level nighttime cultural and tourist consumption cluster areas” the “Place forexperiencing Song Dynasty culture and Hangzhou lifestyle” “Excellent study trip base (camp) in Hangzhou for primary and middleschool students” etc. During the Spring Festival the May Day holiday and the National Day holiday the total number of visitors the
total number of performance sessions operating income the proportion of individual tourists and the duration of stay of tourists in
Hangzhou Songcheng Park were all close to or exceeded those of the same period in 2019.Shanghai Romance Park has a large construction area high construction standards and strict requirements for approval. It
successful completion and opening has already been a great success. During the May Day holiday Shanghai Romance Park achieved
a revenue of over RMB 25 million receiving 179000 tourists. The consumption of each visitor reached a new high among that of all
theme parks of Songcheng thus breaking the record of the opening year of Songcheng during the May Day holiday. During the
National Day holiday Shanghai Romance Park put on more than 50 sessions of shows such as the live show by the Huangpu River
and the car stunt show every day and was reported by CCTV and praised for putting on amazing shows during the National Day
holiday. Since its premiere "The Romantic Show of Shanghai" has become a business card of Shanghai for telling Shanghai stories to
people at home and abroad and building Shanghai’s cultural confidence. During the closing period of the park in winter the
Company transformed the theme park and made the spatial layout more compact and organized and the visiting routes smoother.Also efforts have been made on improving the diversity and interactivity of the performances. The newly upgraded "The RomanticShow of Shanghai" is more stunning; the plots of shows are more tense and the emotion conveyed is stronger. The new “Show withMeals” pays attention to the stage environment to bring immersive dining experience. The creation and rehearsal of the hilarious
parent-child interactive show Beware - Ocean the sci-fi love show L'amour bleu war experience show Cuckoo’s Blood night show
Shanghai Color and other shows have been completed and will be launched at the appropriate time.
17Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Other theme parks have adapted themselves to local conditions gained insights into ethnic characteristics and regional customs
continuously improved the park atmosphere launched diversified special events with engaging content and strengthened
immersive interactive experience. Therefore tourist satisfaction and market reputation have been further improved. The
Earthquake and Beware - Dinosaurs have been performed in various theme parks of the Company. The Love show series have been
rehearsed and auditioned. The creation of Beware show series was stepped up. The diverse plays unique outdoor shows and folk
heritage performances have created a rich library of content. Cultural art performance parks have served as open platforms that
adopt all kinds of high-quality popular market-based content with an open mind to create more new shows and put them on stage
in every park.
(2) Accelerate the construction of technology-infused Songcheng parks
The Company has always been at the forefront of high technology and is one of the earliest companies in China to commercialize
VR AR holograms motion capture light and shadow technologies in art performances and tourism scenarios. In 2021 the
Company was jointly recognized as the “4th Batch of National Culture and Technology Integration Demonstration Bases” by the
Ministry of Science and Technology the Publicity Department of the Central Committee of the CPC the Office of the Central
Cyberspace Affairs Commission the Ministry of Culture and Tourism and the State Administration of Radio Film and Television.Hangzhou Songcheng Park passed the High-tech Enterprise Certification in 2021 and was awarded the qualification certificate.With the continuous progress and maturity of technology the Company will further give full play to its advantages and maintain its
leading position in the culture and tourism industry make more efforts to explore and develop the application of new technologies
in theme parks and live performances upgrade and build comprehensive products featuring culture tourism and technology. The
Company accelerated its digital transformation employed technology to empower theme park operations and internal
management optimized the operation and management processes and stepped up the ability of quick response and efficient
execution.
(3) Strengthen the enforcement of the platform-based strategy
Due to the prolonged pandemic the Company has moved up its strategic agenda of building a platform-based enterprise and will
work on aspects including industrial planning project planning light-asset expansion etc.In terms of industrial planning based on the development trend of the industry the Company has focused on integrating the
upstream and the downstream of the cultural performance industry devoted itself to building an industrial chain featuring the
integration of the upstream and the downstream. The Company has built and launched a one-stop comprehensive information
platform of the industry in order to better connect the supply end and the demand end reshape the industrial structure build a
new chain of value and a new order of the industry; in terms of project planning in order to build a platform that encourages open
cooperation the Company has promoted the transfer of projects in Zhuhai and Australia to give full play to the advantages of all
parties for faster and better development of the projects reduced the Company's capital expenditure and optimized its asset
structure; in terms of light-asset expansion the Company will combine resources flexibly create the new light-asset output mode
expand from the “head” market to the “waist” market and to the “long tail” market to meet diversified market demands stimulate
the vitality of the Company and gain more economic benefits.
(4) Accelerate refined operation management
To work towards the goal of building a platform-oriented enterprise the Company has carried out systematic and integrated reform
on the organizational structure built teams with both intensive structures and extensive structures. The Company has standardized
the management process and adopted both vertical management and flat management modes. Through the comprehensive
integration and optimization of departments levels and positions the Company has created a core management structure featuring
“one center and five departments” at the headquarter and “four departments and one group” of each project. With the top-down
centralized management approach for all business processes the Company has made sure that the concept proposed by the core
team was implemented reduced any loss in intermediate links concentrated the management responsibility on several personnel
18Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
and reduced expenses and adopted more diversified forms of labor through cooperation outsourcing crowdsourcing etc. thus
improving management capabilities reduce management costs and enhance operation efficiency.Through the reform the cohesion and capabilities of the core team have been significantly enhanced. The coordination and
mutual-support between projects and departments have been smoother. Efficient information sharing quality of work and
responsibility fulfillment have been guaranteed. The systems and processes have become more standardized. At the same time the
list of university partners and troupes has been continuously expanded which has helped the Company save and optimize labor
costs and has provided a foundation for the Company to become a platform ecosystem and hub. The Company has adapted to the
post-pandemic era and basically transformed itself into a light-manpower enterprise. In the future on the basis of the core team
the Company will link internal and external resources to carry out various strategic plans.
(5) Optimize the planning of equity investment
During the reporting period the overall development of Huafang Technology was good and its operating and financial targets were
achieved. Its overseas business live streaming & voice chat and other innovative businesses developed well. The Company has been
working with other shareholders to further promote the operation of Huafang Technology. The Company has withdrawn from some
equity investment projects gaining good investment returns and taking back large sums of funding.
2. Income and Costs
(1) Operating income structure
Overall operating income
Unit: RMB
2021 years 2020 years
Year-on-year
Proportion in
Proportion in increase or
Amount Operating Amount
Operating Revenue decrease
Revenue
Total Revenue 1184864639.25 100% 902586125.63 100% 31.27%
By Industry
I. Culture and Art Industry -
1009714986.2685.22%675872865.3574.88%49.39%
Live Performance
II. Tourism Service Industry 175149652.99 14.78% 226713260.28 25.12% -22.74%
Classified by product
1. Songcheng in Hangzhou 485856997.02 41.01% 286877405.89 31.78% 69.36%
2. Sanya Romance Park 147957437.74 12.49% 127098246.23 14.08% 16.41%
3. Lijiang Romance Park 116241285.38 9.81% 136520949.23 15.13% -14.85%
4. Jiuzhai Romance Park 45477409.61 3.84% 25667095.21 2.84% 77.18%
5. Guilin Romance Park 91145694.57 7.69% 56586027.07 6.27% 61.07%
6. Zhangjiajie Romance Park 32288568.20 2.72% 18120963.58 2.01% 78.18%
7. Xi’an Romance Park 16784668.25 1.42% 25002178.14 2.77% -32.87%
8. Shanghai Romance Park 73962925.49 6.24% 0.00 0.00%
19Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
9. E-commerce service charge 73045802.16 6.16% 43316562.23 4.80% 68.63%
10. Design and planning fees 102103850.83 8.62% 183396698.05 20.32% -44.33%
Classified by region
1. Zhejiang Province 661006650.01 55.79% 513590666.17 56.90% 28.70%
2. Sanya Hainan Province 147957437.74 12.49% 127098246.23 14.08% 16.41%
3. Lijiang Yunnan Province 116241285.38 9.81% 136520949.23 15.13% -14.85%
4. Sichuan Province 45477409.61 3.84% 25667095.21 2.84% 77.18%
5. Shanghai 73962925.49 6.24% 0.00 0.00%
6. Guilin Guangxi Province 91145694.57 7.69% 56586027.07 6.27% 61.07%
7. Zhangjiajie Hunan Province 32288568.20 2.72% 18120963.58 2.01% 78.18%
8. Xi'an Shaanxi Province 16784668.25 1.42% 25002178.14 2.77% -32.87%
Classified by sales mode
I. Culture and Art Industry -
1009714986.2685.22%675872865.3574.88%49.39%
Live Performance
II. Tourism Service Industry 175149652.99 14.78% 226713260.28 25.12% -22.74%
(2) Industry product region or sales mode accounting for more than 10% of the Company's operating income
or operating profit
√ Applicable □ Not applicable
Unit: RMB
Increase or
Increase or
decrease of Increase and
decrease of
operating decrease of
gross profit
Gross income operating
Operating income Operating Cost compared
margin compared cost over the
with the
with the same period
same period
same period of last year
of last year
of last year
By Industry
1. Culture and art 1009714986.26 573167186.32 43.23% 49.39% 67.81% -6.24%
industry— Live
performance
2. Tourism service 175149652.99 6420025.35 96.33% -22.74% -42.27% 1.24%
industry
Classified by product
1. Songcheng in Hangzhou 485856997.02 274756084.44 43.45% 69.36% 47.12% 8.55%
20Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
2. Sanya Romance Park 147957437.74 48095105.61 67.49% 16.41% 64.18% -9.46%
3. Lijiang Romance Park 116241285.38 49312322.49 57.58% -14.85% 43.59% -17.27%
4. Design and planning 102103850.83 4232657.31 95.85% -44.33% -47.83% 0.27%
fees
Classified by region
1. Zhejiang Province 661006650.01 281176109.79 57.46% 28.70% 42.10% -4.01%
2. Sanya Hainan Province 147957437.74 48095105.61 67.49% 16.41% 64.18% -9.46%
3. Lijiang Yunnan 116241285.38 49312322.49 57.58% -14.85% 43.59% -17.27%
Province
Classified by sales mode
1. Culture and art 1009714986.26 573167186.32 43.23% 49.39% 67.81% -6.24%
industry— Live
performance
2. Tourism service 175149652.99 6420025.35 96.33% -22.74% -42.27% 1.24%
industry
When the statistical caliber of the company's main business data is adjusted in the reporting period the company's main business
data should be subject to the one after the statistical caliber at the end of the reporting period is adjusted in the most recent year.□ Applicable √ Not applicable
(3) Is the company's physical sales income greater than the labor income?
□ Yes √ No
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the
reporting period
□ Applicable √ Not applicable
(5) Operating Cost Structure
Unit: RMB
2021 years 2020 years Year-on-year
Industry
Item Proportion to Proportion to increase or
Classification Amount Amount
Operating Cost Operating Cost decrease
I. Culture and Art
Cost of live
Industry - Live 573167186.32 98.89% 341549955.68 96.85% 67.81%
performance
Performance
II. Tourism Cost of tourism
6420025.351.11%11120517.743.15%-42.27%
Service Industry service industry
21Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
(6) Has the scope of consolidation changed during the reporting period?
√ Yes □ No
There are 1 newly merged units in this period the reasons are:
New Merged Units This Year Investment Ratio Notes
Global Bacchus Limited 100.00% New in 2021
In the current period the number of merged units was reduced by 1 due to:
Reduced Merged Units This Year Investment Ratio Notes
Zhejiang Songcheng Longquan Mountain Tourism 100.00% Equity sale in 2021
Development Co. Ltd
(7) Major changes or adjustments to the company's business products or services during the reporting period
□ Applicable √ Not applicable
(8) Major Clients and Suppliers
The Company's Major Clients
Total sales amount of the top five customers 312345011.99
Proportion of the total sales amount of the top five
26.36%
customers to the total annual sales
Proportion of the total sales amount of the related parties in
0.00%
the top five customers to the total annual sales
Profiles of the Company's top five customers
No. Name of customer Sales amount (yuan) Proportion to the annual sales
1 Customer I 145116607.90 12.25%
2 Customer II 63037991.19 5.32%
3 Customer III 53229339.62 4.49%
4 Customer IV 35383945.17 2.99%
5 Customer V 15577128.11 1.31%
Total -- 312345011.99 26.36%
Other Information Notes for Major Clients
□ Applicable √ Not applicable
(8) Major suppliers
Total Purchase Amount of Top Five Suppliers (yuan) 276328758.02
Proportion of the total purchase amount of top five suppliers
20.54%
to the total annual purchase amount
22Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Proportion of the total purchase amount of the related
parties in top five suppliers to the total annual purchase 1.97%
amount
Profiles of the Company's top five suppliers
Proportion to the total annual
No. Supplier Name Purchase amount (yuan)
purchase amount
1 Supplier I 101433729.98 7.54%
2 Supplier II 76546907.91 5.69%
3 Supplier III 43758108.57 3.25%
4 Supplier IV 28121811.56 2.09%
5 Supplier V 26468200.00 1.97%
Total -- 276328758.02 20.54%
Other Information Notes for Major Suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
Year-on-year
2021 years 2020 years increase or Statement on Significant Changes
decrease
Sales Expenses 66184828.78 63649750.30 3.98%
Administration expenses 256185046.43 288084167.74 -11.07%
Mainly due to the implementation of
Financial Expenses -954577.44 -12843438.15 92.57% the new lease standards during the
reporting period
Research and
41175131.3537487964.009.84%
development expense
4. R&D Investment
√ Applicable □ Not applicable
Names of major R&D Expected benefits to future
Purpose of project Status of project Objectives
projects development of the Company
Research on the To improve Project has completed the The spotlight can track Improve the stage
automatic tracking performance specified main technical performers timely and presentation and fluency of
spotlight technology quality targets and achieved the accurately the Company's shows as well
for performers on expected results as visitors’ experience
stage
23Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Design and relevant To improve Project has completed the Simplify the complicated Improve the stage
research of the performance specified main technical process and save the effort presentation and fluency of
mobile rotating stage quality targets and achieved the for fixating and building the Company's shows as well
expected results stages as visitors’ experience
Research and To improve Project has completed the Harmonious integration of Add new performance
development of performance specified main technical physical props and approaches and effects and
large-scale lighting & quality targets and achieved the projected images improve the effect and
projection system for expected results enhance visitors’ experience
water shows with
surreal effect
Research on the To improve Project has completed the The immersive lighting Add new performance
technology of performance specified main technical system for interaction can approaches and effects and
immersive lighting quality targets and achieved the bring real-time immersive improve the effect and
system for interaction expected results experience through 3D enhance visitors’ experience
projection based on the
features of different shows
Research on the Enrich product Project has completed the Complete the construction Enrich product lines add
application of VR lines specified main technical of a virtual environment more fun to shows enhance
technology in targets and achieved the based on real-world visitors’ experience so as to
interactive design expected results scenarios to bring visitors improve the Company’s
interactive riding competitiveness
experience
Research and To improve Project has completed the Realize the operation and Enhance the stage effect of
development of the performance specified main technical maintenance of the lift the Company's shows and
mobile device of quality targets and achieved the structure of assault boats enhance visitors’ experience
assault boats for stage expected results
performance
Research on the To improve Project has completed the Review and optimize the Enhance the stage effect of
application of colors performance specified main technical color schemes used in the Company's shows and
in stage lighting quality targets and achieved the lighting designs enhance visitors’ experience
design expected results
Research on the To improve Project has completed the Research on the Enhance the stage effect of
application of dance performance specified main technical application of dance the Company's shows and
cultures in quality targets and achieved the rhythms in choreography enhance visitors’ experience
choreography expected results
Research on the To improve Project has completed the Improve correctly use and Enhance the smoothness and
safety application of performance specified main technical properly maintain the safety of the Company's
stage machinery quality targets and achieved the configuration of stage performances and make sure
expected results machinery that all shows are performed
as planned
Research on the role To improve Project has completed the Employ stage lighting Enhance the stage effect of
of the timing of stage performance specified main technical changes to divide a show the Company's shows and
24Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
lighting changes and quality targets and achieved the into several acts and enhance visitors’ experience
its application expected results create a rhythm for shows
Research and To improve Project has completed the Complete the design of the Add new performance
development of performance specified main technical stage machinery for approaches and effects and
automatic stage quality targets and achieved the mimicking volcano improve the effect and
machinery for expected results eruptions and apply it to enhance visitors’ experience
mimicking volcano shows
eruptions
Research on the To improve Project has completed the Strengthen the appeal of Enhance the stage effect of
integrated application performance specified main technical the performance and the Company's shows and
of choreography and quality targets and achieved the create a livelier enhance visitors’ experience
stage machinery expected results atmosphere
3D water effect device To improve Project has completed the Quickly switch among Enhance the stage effect of
performance specified main technical multiple scenes on stage in the Company's shows and
quality targets and achieved the a short time enhance visitors’ experience
expected results
Make technical To improve Project has completed the Address the weaknesses in Enhance the safety of the
improvements to performance specified main technical existing stage props and Company's performances and
stage props quality targets and achieved the eliminate potential safety make sure that all shows are
expected results hazards performed as planned
Make technical To improve Project has completed the Make device installation Enhance the safety and
improvements to performance specified main technical and operation more smoothness of the Company's
stage devices quality targets and achieved the convenient and eliminate performances and make sure
expected results potential safety hazards that all shows are performed
as planned
Research and To improve Project has completed the Present a more gorgeous Add new performance
development of performance specified main technical stage effect with approaches improve the
holographic quality targets and achieved the holographic projection and stage effect and enhance
projection and expected results naked-eye 3D technology visitors’ experience
naked-eye 3D
technology for stages
Research and To improve Project has completed the Solve the problems of Optimize the stage effect of
development of the performance specified main technical insufficient opening of the Company's shows and
curtain projection quality targets and achieved the curtain and loud noise improve visitors’ experience
device for interactive expected results during curtain opening
stage
Research and To improve Project has completed the Improve the automation Optimize the stage effect of
development of the performance specified main technical level of stage lighting the Company's shows and
smart stage lighting quality targets and achieved the systems improve visitors’ experience
system expected results
Research and To improve Project has completed the Solve the problems Improve the sound quality of
development of the performance specified main technical brought by the existing the Company's shows and
25Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
sound damping device quality targets and achieved the stage audio technology due enhance visitors’ experience
expected results to the materials of audio
devices
Research and To improve Project has completed the Solve the problem of the Improve the sound quality of
development of the performance specified main technical remote control devices for the Company's shows and
remote control device quality targets and achieved the stage speakers that don't enhance visitors’ experience
for stage speakers expected results have rotation function
Research and To improve Project has completed the Solve the problem of the Optimize the stage effect of
development of performance specified main technical height of the current stages the Company's shows and
rotating stage lift quality targets and achieved the that cannot be adjusted improve visitors’ experience
platforms expected results
Research and To improve Project has completed the Have better control over Optimize the stage effect of
development of performance specified main technical the stage effect and step the Company's shows and
Songcheng stage quality targets and achieved the up control over stage improve visitors’ experience
control software expected results machinery and devices
Research and Build smart theme Project has completed the Address issues that no Improve the Company’s
development of parks specified main technical existing enterprise management efficiency
enterprise targets and achieved the management software can
management expected results solve or the issues to which
software of there are no standard
Songcheng solutions and reduce the
cost of data exchange
within the enterprise.Research and Build smart theme Project has completed the Develop a good Improve the Company’s
development of the parks specified main technical understanding of the status management efficiency and
smart tourism targets and achieved the of all theme park resources service quality
information expected results and convey event
management system information to visitors
timely and accurately
through proactive
identification real-time
transmission in-depth
analysis and operation
control
Research and Build smart theme Project has completed the Manage all parking lots in Improve management
development of the parks specified main technical theme parks in a unified efficiency of parking lots and
parking lot targets and achieved the way and integrate all visitors’ experience
management system expected results parking lots into the same
network for parking fee
charging by establishing a
parking lot management
system.
26Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Research and Build smart theme Project has completed the Show the real-time Improve queuing efficiency
development of the parks specified main technical queuing status on visitors’ and visitors’ experience
queuing management targets and achieved the phones through a system
system in theme parks expected results featuring on-site ticket
distribution and printing
online queuing and calling
functions
Development of the Build smart theme Project has completed the Analyze data and observe Improve marketing efficiency
online mall system of parks specified main technical the data of competitors’
theme parks based on targets and achieved the accounts and industry
Tik Tok’s mini program expected results developments and
develop a good
understanding of industry
trends.Development of the Build smart theme Project has completed the Realize synchronization of Improve the Company’s
online order data parks specified main technical orders and inventory management efficiency
synchronization targets and achieved the refund and written-off
system for theme expected results functions
parks
Research and Build smart theme Project has completed the Merchants can view Improve marketing efficiency
development of the parks specified main technical various daily and monthly
coupon management targets and achieved the reports on their mobile
system in theme parks expected results devices or in their
web-based management
applications
Development of the Build smart theme Project has completed the Conduct analysis on Reduce visitors’ expenditures
smart tourism parks specified main technical functional modules and improve visitors’
product portfolio targets and achieved the performance and security experience
system expected results establish the coupon
distribution and written-off
management system and
provide customers with the
best discount portfolio
Development of the Build smart theme Project has completed the Conduct analysis through Make it more convenient and
intelligent notification parks specified main technical the intelligent GPS and comfortable for visitors to
system in theme parks targets and achieved the quickly transmit enjoy themselves in theme
expected results multimedia information to parks
visitors to improve the
efficiency and experience
of visiting
R&D personnel of the Company
27Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
2021 years 2020 years Year-on-year change
Number of R&D personnel 196 253 -22.53%
Percentage of R&D personnel 16.91% 17.56% -0.65%
Educational background of R&D personnel
Bachelor 78 95 -17.89%
Postgraduate 2 1 100.00%
Age of R&D personnel
Below the age of 30 70 103 -32.04%
Aged between 30 to 40 77 91 -15.38%
The Company's R&D investment in the past three years and its percentage in operating income
2021 years 2020 years 2019 years
R&D investment (yuan) 41175131.35 37487964.00 48424520.54
The proportion of R&D
3.48%4.15%1.85%
investment to operating income
Capitalized amount of R&D
0.000.000.00
expenditure (yuan)
Percentage of capitalized R&D
0.00%0.00%0.00%
expenditure in R&D investment
Percentage of capitalized R&D
expenditure in current net 0.00% 0.00% 0.00%
profit
Reasons and impacts of significant changes in R&D personnel composition of the Company
□ Applicable √ Not applicable
The reason for the significant change in the proportion of the total amount of R&D investment to operating income compared with
last year
□ Applicable √ Not applicable
Reasons and rational explanations on the substantial change in capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash Flow
Unit: RMB
Year-on-year increase or
Item 2021 years 2020 years
decrease
Subtotal of cash inflow from
1395144293.27943790117.8847.82%
operational activities
Subtotal of cash outflow from
644670483.48549848217.9417.25%
operational activities
28Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Net cash flow generated by
750473809.79393941899.9490.50%
operating activities
Subtotal of cash inflow from
1567301139.381351939517.2715.93%
investment activities
Subtotal of Cash Outflow from
1603861467.402292941086.10-30.05%
Investment Activities
Net amount of cash flow generated
-36560328.02-941001568.8396.11%
by investment activities
Subtotal of cash inflow from
420000000.00-100.00%
financing activities
Subtotal of cash outflow from
196202037.34306917837.81-36.07%
financing activities
Net cash flow generated by
-196202037.34113082162.19-273.50%
financing activities
Net additions to balance of
520971610.06-443933773.37217.35%
equivalents
Description of the main factors affecting the significant changes in related data over the same period of last year
√ Applicable □ Not applicable
During the reporting period the subtotal of cash inflows from operating activities and the net cash flows from operating activities
increased by 47.82% and 90.50% respectively year on year mainly due to the year-on-year increase of operating revenue.During the reporting period the subtotal of cash outflows from investment activities decreased by 30.05% year on year and net
cash flows from investment activities increased 96.11% year on year mainly due to the decrease in project investment.During the reporting period the subtotals of cash inflows cash outflows and net cash flows from financing activities decreased by
100% 36.07% and 273.50 respectively year on year mainly due to the year-on-year decrease in the new bank borrowings and
reduced dividend payouts.Reasons for the significant difference between the net cash flow generated by the company's operating activities in the reporting
period and the net profit in the current year
√ Applicable □ Not applicable
Supplementary information Amount of this period
1. Reconciliation of net profit to cash flows from operational activities:
Net Profit 302593961.40
Plus: Credit impairment loss 16581681.70
Provision for Impairment of Assets 10082554.54
Depreciation of fixed assets 241582094.98
Depreciation of right-of-use assets 34607328.24
Amortization of Intangible Assets 50825412.01
Amortization of long-term prepaid expenses 59765277.28
Losses on disposal of fixed assets intangible assets and other long-term assets (mark "-" -4512572.52
for incomes)
Losses on scrapping of fixed assets (mark "-" for incomes) 32221090.95
29Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Losses on fair value changes (mark "-" for incomes) 12098344.02
Financial expenses (mark "-" for incomes) 23509105.27
Losses on investment (mark "-" for incomes) -181840347.56
Decrease on deferred income tax assets (mark "-" for increases) -7057573.77
Increase on deferred income tax liabilities (mark "-" for decreases) -3051166.37
Decrease on inventories (mark "-" for increases) 902490.69
Decrease on operational receivables (mark "-" for increases) 101886633.14
Increase on operational payables (mark "-" for decreases) 60279495.79
Net cash flow generated by operating activities 750473809.79
VI. Non-main Business
√ Applicable □ Not applicable
Unit: RMB
Percentage of Total
Amount Reason Sustainability
Profit
Mainly due to long-term equity
Investment Income 181840347.56 52.88% investment calculated by using Yes
the equity method
Mainly due to the year-on-year
Changes in fair
increase in the Company's
value gains and -12098344.02 -3.52% No
recovery of financial products
losses
upon maturity
Due to goodwill impairment loss
Asset Impairment -10082554.54 -2.93% from Jiuzhaigou Tibetan No
Mystery Company
Non-operating
6091127.99 1.77% No
Revenue
Non-Operating Mainly due to the Company's
34713244.90 10.10% No
Expenses scenic upgrades and renovations
VI. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
End of 2021 Early 2021
Proportion
Proportion Proportion Statement on Significant
increase and
Amount To Total Amount To Total Changes
decrease
Assets Assets
30Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Cash and Bank
1858747864.0418.92%1337776253.9813.92%5.00%
Balances
Accounts
2197594.370.02%5887012.360.06%-0.04%
receivable
Contract Assets 0.00% 0.00% 0.00%
Inventory 12521655.81 0.13% 13424146.50 0.14% -0.01%
Investment
0.00%0.00%0.00%
Property
Long-term Equity
1677553347.6817.07%1534539625.1115.97%1.10%
Investment
Fixed Assets 2697045965.17 27.45% 2508754929.16 26.11% 1.34%
Projects under
404739821.094.12%771871563.738.03%-3.91%
Construction
Right-of-use
493815583.405.03%526000589.975.47%-0.44%
Assets
Short-term loan 0.00% 0.00% 0.00%
Contract
87754309.110.89%188550237.521.96%-1.07%
liabilities
Long-term loan 270000000.00 2.75% 282000000.00 2.93% -0.18%
Lease Liabilities 371772172.05 3.78% 390537511.61 4.06% -0.28%
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
At the Changes in fair Purchase At the
Cumulative Impairment
beginning of value gains amount of Sales amount of end of
fair value loss of the Other
Item the and losses in the the reporting the
changes in reporting variations
reporting the current reporting period reporting
equity period
period period period period
Financial Assets
1. Trading
financial
assets 328627827 910000000
-8179556.840.000.001255643588.6125195317.850.00
(excluding .60 .00
derivative
financial
31Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
assets)
2. Derivative
6589730.02670942
financial -3918787.18
8.90
assets
3. Investment
in other 224266596 -45020144. 864858
92760615.31
equity .74 84 36.59
instruments
Subtotal of
559484154-12098344.0-45020144.910000000891567
financial 0.00 1348404203.92 25195317.85.42284.0079.49
assets
559484154-12098344.0-45020144.910000000891567
Total 0.00 1348404203.92 25195317.85.42284.0079.49
Financial
0.000.000.000.000.000.000.000.00
liabilities
Other changes
Other changes are due to cumulative investment income
Are there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
3. Restrictions on asset rights as of the end of the reporting period
As of the end of the reporting period the Company's main assets were not seized frozen mortgaged or pledged.VII. Analysis of Investment
1. Overview
√ Applicable □ Not applicable
Investment Over The Corresponding
Investment In The Reporting Period (RMB) Rate Of Change
Period Of Last Year
1710295515.162159030550.70-20.78%
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
□ Applicable √ Not applicable
32Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
4. Financial assets at fair value
√ Applicable □ Not applicable
Unit: RMB
Changes in fair Amount Amount
Cumulative
Initial value gains purchased sold during Cumulative Amount at
fair value Capital
Asset Class Investment and losses in during the the investment the end of
changes in Source
Cost the current reporting reporting income the period
equity
period period period
Temporarily
172445378.21804338715985599.
Fund -7997107.50 0.00 idle own
60.3357
funds
Temporarily
Financial 2670942.9
6589730.08 -3918787.18 idle own
Derivatives 0
funds
Other (Bank Temporarily
156182449.3910000000.107520979209718.2
Financial -182449.34 0.00 idle own
40018.288
Products) funds
335217557.6-12098344.0910000000.1255643525195317.2670942.9
Total 0.00 --
820088.61850
5. Utilization of raised funds
□ Applicable √ Not applicable
No use of funds in the reporting period of the Company
VIII. Sales of major assets and equities
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
√ Applicable □ Not applicable
Net profit The Pricing Whether the
Whether all
Price of contributed proportion of principle Relation sale is
Influence of the Whether it the equity
Equity Date of transaction by the equity net profit for the with implemented as Date of Disclosure
Related party sale on the is a related involved
sold sale (RMB to the contributed sale of related scheduled. If Disclosure Index
Company transaction has been
10000) Company by the sale of the party not the
transferred
from the the equity to equity reasons and
33Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
beginning of the total net measures taken
this period to profit of the by the
the date of Company Company shall
sale (RMB be explained.
10000)
This transaction
conforms to the
Company's overall
Zhejiang development
Songcheng strategy which
Longquan Monday helps the
Fair
Mountain 100% April 12 10919.93 -511.94 Company further 16.74% No N/A Yes Yes
value
Tourism 2021 focus on the main
Development business and
Co. Ltd improve the
efficiency of
operation and
management.IX. Analysis of Major Subsidiaries and Associates
√ Applicable □ Not applicable
Major subsidiaries and joint-stock companies with a net profit impact of over 10%.Unit: RMB
Company Main Registered Operating Operating
Company Type Total Assets Net Assets Net Profit
Name businesses Capital income Profit
Hangzhou
Songcheng
performance
Theme park +
Valley Subsidiary 10000000 106087922 556183600. 362855095. 82530907.9 66473712.8
Art
technology Company 0.00 3.68 76 01 6 1
performance
and Culture
Development
Co. Ltd
Sanya
Romance Theme park +
Subsidiary 49000000 986513761. 952626178. 147957437. 70492876.6 53694735.5
Tourism Art
Company 0.00 52 47 74 8 9
Performance performance
Co. Ltd.Lijiang Theme park +
Subsidiary 25000000 642204343. 613982827. 116241285. 40739967.4 34002128.0
Chama Art
Company 0.00 18 81 38 6 0
Ancient City performance
34Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Tourism
Development
Co. Ltd
Tourism
resource
development
tourism
Songcheng planning and
Tourism Subsidiary design artistic 50000000. 708187009. 478859288. 66719905.6 62789450.7 62844964.0
Development Company creation 00 02 88 6 3 0
Co. Ltd. brand and
marketing
planning of
tourist
attractions
Performance
artistic
creation and
Songcheng
choreography
Performance Subsidiary 50000000. 137466779. 135311734. 97203277.0 70127657.1 61350577.1
performance
Management Company 00 12 61 0 9 0
and brokerage
Co. Ltd.business
performance
management
Internet
information
service
performance
Huafang brokerage
Group Inc. business
(formerly music and
known as Joint stock entertainment 229161394 191235048 453998814 416020067. 320716642.USD 50000
Beijing company products 3.02 1.63 3.60 18 08
HuafangTech through
nology Co. information
Ltd.) network
game
products
competition
activities
Description of major subsidiaries and associates
1. Huafang Group Inc. (formerly known as Beijing Huafang Technology Co. Ltd.): The original shareholders of Beijing Huafang
Technology Co. Ltd. including Songcheng Performance Development Co. Ltd signed the VIE framework agreement. At the same
35Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
time Global Bacchus Limited a wholly-owned subsidiary of the Company purchased 37.06% of the equity of Huafang Group Inc. at
the price of USD 1976.4706 (equivalent to RMB 12836.58). After signing the above agreement Global Bacchus Limited a
wholly-owned subsidiary of the Company holds the 37.06% of the equity of Huafang Group Inc. and has all the rights and
obligations pertaining to the 37.06% equity of Beijing Huafang Technology Co. Ltd.
2. The report data of Huafang Group Inc. (formerly known as Beijing Huafang Technology Co. Ltd.) is presented on the basis of the
fair value of the investee's identifiable assets and liabilities when the investment is obtained.Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production management
Company Name
subsidiaries during the reporting period and performance
Global Bacchus Limited New in 2021
Zhejiang Songcheng Longquan Mountain
Equity sale in 2021
Tourism Development Co. Ltd
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Outlook for the Future Development of the Company
(I) Development Strategy Planning of the Company
The Company is dedicated to telling China’s stories through the Chinese culture promoting confidence of the nation and striving to
become the world’s top company in cultural performance. In the short term based on all theme parks the Company will accelerate
the development of the performance park mode to keep a balance between pandemic control and business operation and to get
ready for rebound in growth in the post-pandemic era; in the medium term the Company will enhance its potential through
technological and digital transformation reduce costs and increase efficiency and pursue growth driven by internal factors; in the
long run the Company will promote the development of innovative businesses such as performance platforms and high technology
to create new growth drivers.(II) Work Plan in 2022
Facing changes in the global landscape and the COVID-19 pandemic unseen in a century the Company needs to have vision and the
courage to take concrete steps have an in-depth understanding of the world's development trend and gain insights into the trend
of the industry. In the complex and difficult environment everyone in the Company shall be united together in doing pioneering and
innovative work by adhering to the "Songcheng model". The Company will stay as the pioneer and leader of Chinese theme parks
and inherit and introduce Chinese culture to the rest of world. In 2022 the Company will mainly work on the following aspects:
1. Promote the progress of the performance park mode
The Company will start with Shanghai Romance Park to prioritize the development of programs and content while improving
hardware and environment spatial layout and route planning and later it will comprehensively upgrade and transform other theme
parks around the country strengthen the unique feature of large theme parks with a large number of performances so as to
improve the capacity and anti-risk ability of each theme park.The Company will continue to implement new concepts regularly focus on promoting the improvement of the "Romance Show"
series to ensure the long-lasting vitality of the series through small innovative adjustments. The Company will create more diverse
36Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
and innovative programs including performances for children performances with dining experience outdoor performances
interactive performances immersive performances technology-infused and trendy performances. Based on the characteristics of
the region season and time the Company will carry out various theme festivals to meet the diverse needs of all visitors around the
year. Aiming at improving the proportion of outdoor areas of theme parks and extending the length of time spent in outdoor areas
the Company will make persistent efforts to further improve the construction of the outdoor areas in theme parks and providing
high-quality services. Through digital transformation network construction and intelligent technology the Company will take the
initiative to embrace technological transformation enhance investment in science and technology and make visits more convenient
and comfortable.
2. Give full play to advantages and create a new driver for technological growth
The Company will step up the digital transformation of theme parks further strengthen the application of scientific and
technological approaches in theme parks and live performances launch more products and scenes integrating art and technology
and promote the integration of technology art and performances to improve the experience of visitors so as to enable the
Company itself to keep up with the latest trends in science and technology and show strong vitality.In particular the Company will give full play to its rich experience in the in-depth integration of culture-based creativity and
technology. Through the dual growth drivers of strategic investment and resource integration more efforts should be made to
explore and develop the application of metaverse technology in theme parks and live performances and accelerate the
development of independent products infused with VR AR holography lighting & projection and other emerging technologies. The
Company will complete the construction of technology-infused projects and launch these projects seize the opportunity to rapidly
grow into a leading domestic supplier that integrates culture-based creativity and technology in depth so as to build a new driver
for the Company’s technological growth.
3. Integrate resources and incubate platforms to create new formats
The Company will build platforms upgrade formats and promote business model innovation. The Company will integrate the
upstream and the downstream based on its advantageous area build a new value network and a new industry order open up a
second channel for growth and make plans for the Company’s business development through different platforms so as to revitalize
internal resources tap new market demands new drivers of consumption and new operation models thus creating a "new
Songcheng model" which integrates the supply chain industrial chain and scene chain.Facing the unfavorable external environment the Company will be fully prepared for the worst situation possible. The Company will
adjust the expansion schedule based on business development strengthen communication and external cooperation with all parties
promote the transfer cooperation and development of projects in Zhuhai and Australia and explore more diversified modes for
project cooperation development and operation. Through these adjustments the Company will enjoy more sound financial
management healthier business and more flexibility in changing its industry positioning and will be able to deal with the risks
posed by the uncertain duration of the pandemic. In terms of light-asset expansion on the basis of the existing mode of delivering
the entire projects the Company will create more light-asset cooperation modes based on market demands to give better play to
the brand’s influence and to improve profitability.
4. Employ innovative thinking to complete marketing campaign upgrade
The Company will upgrade the marketing approach by thinking out of the box and carry out campaigns in terms of extensive
channels innovative contents insights into target groups digital intelligence etc. so as to create an industry-leading marketing
system.The Company will create a matrix of channels in multiple dimensions both online and offline. For offline channels the Company will
reach customers such as source travel companies travel agencies wholesalers and individual tourists. For online channels the
Company will develop differentiated marketing strategies based on the attributes of OTA self-operated e-commerce we-media
37Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
e-commerce and short video e-commerce. Based on creative theme campaigns the Company will gain traffic both online and offline
identify target groups and reach them accurately. It will attract customers and operates businesses by targeting young people lovers
friends parents and children meeting the needs of business trips and study trips and seizing market opportunities in neighboring
areas thus aiming for medium-term and long-term development. The Company will build an urban platform for entertainment
leisure and social connection for the people at all ages. The Company will constantly collect data in different dimensions to enrich
its base of big data and employ technical means to help deliver high-quality service and develop an integrated marketing approach.
5. Strengthen management innovation to further reduce costs and increase efficiency
The Company will further optimize the management system and process speed up the standardization of the management
mechanism adopt both vertical management and flat management modes and ensure the good decision-making capability of the
Company and the good execution capability of the staff. The Company will improve the overall management and deal with the
management cost and management pressure brought by the pandemic and the Company’s development through management
reconstructing. The Company will manage its projects across the country as a whole make constant adjustments in employment
arrangements across projects explore external labor sources adopt a flexible employment mode and make full use of all resources
available in the society to meet its demands for flexible employment.(III) Possible Risks
1. Risk of public health emergencies
Public health emergencies affect tourism leisure and cultural and recreational activities to varying degrees thus having a negative
impact on the Company's operating performance and financial situation. Since the end of 2019 the COVID-19 pandemic has
evolved into a global public health emergency and has been going on to this day. This has seriously discouraged consumption in the
culture and tourism industries and has had a detrimental effect on the Company's operating performance in the past two years.Countermeasures: the Company will locate its projects nationwide continuously upgrade and enrich the formats of products and
transform itself into a platform-based enterprise. It will also reduce costs and increase efficiency make operation planning in a
coordinated way arrange project operations in various regions reasonably and effectively and maintain flexibility and resilience so
as to minimize the adverse effects of the pandemic.
2. Risks of Macroeconomic Fluctuation
The global pandemic continues to evolve and the external environment becomes more complex and challenging. The global
landscape is changing more rapidly thus adding uncertainties to China's economic and social development. The complicated and
changeable macroeconomic environments may affect the national income and thus people’s consumption thereby affecting the
operating performance of the Company.Countermeasures: The Company will continue to work on its main business areas by developing a content system divided into high
middle and low levels make full use of new technology as an innovative way of expression and enhance product attractiveness
with powerful content. It will also strengthen marketing efforts and continuously expand target groups and forms of tourism to
hedge the risks of economic fluctuations.
3. Risks in competition in the industry
In the performance industry every entity is developing rapidly and the Company is facing fierce competition. Homogeneous
products and low prices have a negative impact on the order of the industry and its long-term development. Live performances are
also affected by short videos movies and dramas games variety shows live streaming VR AR and other forms of digital
entertainment. A large number of players in the industry have led to a saturated market in all aspects which has posed great
challenges to the Company's operation and management.Countermeasures: The Company will focus on its main business areas strengthen the management mode of "Theme park + Cultural
38Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
performance" continuously improve its differentiated management capability and innovative capability and further consolidate its
own competitive advantages. The Company will embrace the changes of the times and technological upgrades and actively carry
out operation featured by digital transformation network construction and intelligent technology.
4. Risks in Safety Accidents
Live performances operated by the Company consisting of both indoor and outdoor performances may be occasionally hindered by
safety accidents due to the failure of the theater facilities. Safety directly concerns the personal safety of the tourists and the
reputation of the Company which will have a negative impact on the Company's operation and brand.Countermeasures: the Company should always adhere to the bottom line of safety in its principles and actions formulate clear and
operable rules regulations processes and specifications assign persons in charge to specific positions as well as clarify the reward
and punishment measures and hold safety training sessions and safety drills throughout the year so as to reduce safety accidents
and losses as much as possible.XII. Registration Form for Reception of Research Communication Interviews and Other Activities
during the Reporting Period
√ Applicable □ Not applicable
Main content of
the discussion
Reception Reception Reception target Reception Index of the basic
Reception Time and the
location Method type objects information of research
information
provided
For details please refer
to the "Record of
Investor Relations
Brokerage Operation Activities on Tuesday
Tuesday January Company Field researcher and overview of January 5 2021"
Institution
5 2021 meeting room Investigation fund company projects and announced by the
manager Q&A Company on
http://www.cninfo.com.cn on Wednesday
January 6 2021.For details please refer
to the "Record of
Investor Relations
Brokerage 2020 Activities on Sunday
Sunday January Company Communication researcher and performance January 31 2021"
Institution
31 2021 meeting room over phone fund company forecast and announced by the
manager Q&A Company on
http://www.cninfo.com.cn on Sunday January
312021.
39Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
For details please refer
to the "Record of
Investor Investor Relations
Brokerage meetings during Activities on Thursday
Thursday April Songcheng in Field researcher and the opening April 29 2021"
Institution
29 2021 Shanghai Investigation fund company period of announced by the
manager Songcheng in Company on
Shanghai http://www.cninfo.com.cn on Friday April 30
2021.
For details please refer
to the "Record of
Investor Relations“InvestorCompany's Activities on Friday
relations
Friday May 7 performance May 7 2021"
interactive Others Others Online Investors
2021 presentation announced by theplatform” on
meeting of 2020 Company on
www.p5w.net
http://www.cninfo.com.cn on Sunday May 9
2021.
For details please refer
to the "Record of
Investor Relations
Brokerage Performance Activities on Friday
Friday August Company Communication researcher and overview in the August 27 2021"
Institution
27 2021 meeting room over phone fund company first half of 2021 announced by the
manager and Q&A Company on
http://www.cninfo.com.cn on Sunday August
292021.
40Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Section IV Corporate Governance
I. Basic Situation on Corporate Governance
During the reporting period the Company further improved its corporate governance structure standardized its operations and
enhanced its corporate governance in strict compliance with the requirements of the Company Law the Securities Law the Code of
Corporate Governance of Listed Companies the Listing Rules of Growth Enterprise Market of Shenzhen Stock Exchange and the
relevant laws and regulations and regulatory documents. As at the end of the reporting period the actual situation of the
Company's governance was basically in compliance with the normative documents issued by the CSRC on the governance of listed
companies.
1. About Shareholders and Shareholders’ Meetings
The Company convenes and holds shareholders' meetings in strict accordance with the provisions and requirements of the Rules for
General Meetings of Listed Companies the Articles of Association and the Rules of Procedure for General Meetings so as to ensure
that all shareholders in particular the minority shareholders are treated fairly and fully exercise their rights.
2. About the Company and the Controlling Shareholders
The Company has independent business and operation ability and is independent of the controlling shareholder in terms of
business personnel assets institutions and finance and the Company's Board of Directors Board of Supervisors and internal
institutions operate independently. The controlling shareholders of the Company can strictly regulate their own conduct and have
not interfered directly or indirectly with the decision-making and operation activities of the Company beyond the shareholders’
meetings or the Board of Directors of the Company.
3. About the Directors and the Board of Directors
The Company elects directors in strict accordance with the selection and appointment procedures stipulated in the Articles of
Association; the Board of Directors of the Company has nine directors including three independent directors accounting for
one-third of all directors and the number and composition of the Board of Directors are in compliance with laws and regulations
and the requirements of the Articles of Association. The Company has three female directors accounting for one third of all
directors. The three independent directors are experienced professionals engaged in tourism and financial industry for more than
two decades. Other directors have more than two decades of experience in tourism project development enterprise management
and rich experience in capital management and are able to provide effective suggestions for the healthy development of the
enterprise and make decisions on major issues of the Company in all aspects. All directors of the Company shall carry out their work
in accordance with the Rules of Procedure of the Board of Directors and the Management System of Independent Directors attend
the General Meeting of Shareholders timely actively participate in relevant professional training and familiarize themselves with
relevant laws and regulations.
4. About the Supervisors and Board of Supervisors
The Company shall select supervisors in strict accordance with the relevant provisions of the Company Law and the Articles of
Association etc. The Board of Supervisors of the Company has three supervisors including one staff supervisor and the number
and composition of the Board of Supervisors are in compliance with the requirements of laws and regulations. The supervisors of
the Company are able to perform their duties conscientiously in accordance with the requirements of the Rules of Procedure of the
Board of Supervisors etc. and effectively supervise and express independent opinions on the Company’s major matters connected
transactions financial position performance of duties of directors and managers.
41Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
5. Performance Evaluation & Incentive and Restraint Mechanism
The Company has gradually established a fair and transparent performance evaluation standards and incentive and restraint
mechanisms for directors supervisors and senior management and the appointment of senior management of the Company is
open and transparent and in compliance with the laws and regulations. In addition in order to further improve corporate
governance the Company fully arouses the initiative and creativity of directors supervisors and senior management and create
greater benefits for the Company and shareholders. In accordance with the principles of matching responsibilities rights and
benefits and based on actual situation of the Company and the characteristics of the industry the remuneration plan for directors
supervisors and senior management has been formulated according to the Company Law the Articles of Association and the
Implementation Rules of the Remuneration and Appraisal Committee and other regulations.
6. Relevant stakeholders
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders and achieves a coordinated
balance of the interests of society shareholders the Company and employees to jointly promote the sustainable and sound
development of the Company.
7. Information Disclosure and Transparency
The Company has designated the Secretary of the Board of Directors as the person in charge of investor relations management of
the Company who is responsible for management of information disclosure and investor relations of the Company and reception of
visits and inquiries from shareholders; designated Securities Times Securities Daily and Cninfo as the newspapers and website for
information disclosure of the Company disclosing information truthfully accurately and timely in strict accordance with the relevant
laws and regulations and ensuring that all shareholders have fair opportunities access to information.Whether there is any significant difference between actual situation of corporate governance and laws administrative regulations
and the provisions on governance of listed companies issued by CSRC
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and laws administrative regulations and
the provisions on governance of listed companies issued by CSRC.II. The company's independence from the controlling shareholders and actual controllers in
assets personnel finance organization business etc.Since establishment the Company has been operating in strict accordance with the requirements of the Company Law the
Securities Law and other relevant laws and regulations and Articles of Association and is independent of each other in terms of
business assets personnel organization and finance and there is no situation in which the Company cannot guarantee its
independence and maintain its ability to operate independently from its controlling shareholder in terms of business personnel
assets organization and finance.III Horizontal competition
□ Applicable √ Not applicable
42Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
IV. Relevant Situation of the Annual General Meeting of Shareholders and the Extraordinary
General Meeting of Shareholders Held in the Reporting Period
1. The shareholders' meetings for this reporting period
Percentage of Date of
Conference Session Conference Type Date of Conference Meeting Resolution
Investors Involved Disclosure
Notice of Resolution of 2020
Shareholders' Tuesday Annual General Meeting of
Annual General Tuesday May 18
General Meeting in 56.89% May 18 Shareholders (2021-020)
Meeting 2021
2020 2021 available at
http://www.cninfo.com.cn/
Notice of the First
The first
Extraordinary Friday Extraordinary General
extraordinary Friday August 27
general meeting of 57.15% August 27 Meeting of Shareholders in
general meeting of 2021
shareholders 2021 2021 (2021-035) available at
shareholders in 2021
http://www.cninfo.com.cn/
2. Convening of the interim shareholders' general meetings upon request of the preferred stockholders whose
voting rights are restored
□ Applicable √ Not applicable
V. The Company Has Arrangements for Differences in Voting Rights
□ Applicable √ Not applicable
VI. Governance of Red-Chip Company
□ Applicable √ Not applicable
VII. Directors Supervisors and Senior Management
1 Basic information
Number of Number of
Number of Reason
shares shares Number of
Starting Termination shares held at Other for
Position increased decreased shares held
Name Post Gender Age date of Date of the beginning changes change
status in the in the at the end of
tenure tenure of the period (share) in
period period the period
(share) shares
(share) (share)
Huang Sunday Monday
Director Incumbent Male 64 309192225 309192225
Qiaoling June 6 August 8
43Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
20102022
Sunday Monday
Huang
Director Incumbent Male 62 June 6 August 8 85836643 85836643
Qiaolong
20102022
Sunday Monday
Zhang
Chairman Incumbent Female 48 June 6 August 8 2166642 2166642
Xian
20102022
Monday Monday
Shang Director
Incumbent Female 47 August 12 August 8 823323 823323
Lingxia President
20132022
Director Wednesday Monday
Zhang
Executive Incumbent Male 58 March 20 August 8 1646647 1646647
Jiankun
President 2013 2022
Monday
Huang Friday April
Director Incumbent Male 50 August 8
Hongming 26 2019
2022
Friday Tuesday
Independent
Lanke Resigned Male 72 August 21 May 18
Director
20152021
Tuesday Monday
Yang Independent
Incumbent Male 52 May 18 August 8
Yiqing Director
20212022
Thursday Monday
Liu Independent
Incumbent Male 65 August 8 August 8
Shuzhe Director
20192022
Friday Monday
Independent
Yu Qinyi Incumbent Female 42 March 24 August 8
Director
20172022
Sunday Monday
Zhu Hualu Supervisor Incumbent Female 67 June 6 August 8
20102022
Monday Monday
Staff
Yu Feng Incumbent Female 46 August 12 August 8
Supervisor
20132022
Tuesday Monday
Xu Jie Supervisor Incumbent Female 54 August 9 August 8 360 360
20162022
Friday Monday
Vice
Zheng Qi Incumbent Male 45 October 26 August 8
President
20182022
44Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Chief Monday
Chen Friday May
Financial Incumbent Male 51 August 8 433330 433330
Shengmin 21 2010
Officer 2022
Thursday Monday
Secretary of
Hou Li Incumbent Female 39 April 22 August 8 65000 65000
the Board
20212022
Total -- -- -- -- -- -- 400164170 0 0 400164170 --
Whether there is any resignation of directors supervisors and senior management during the reporting period
√ Yes □ No
1. On April 22 2021 Mr. Chen Shengmin resigned as the Secretary of the Board of Directors due to position adjustment and after
his resignation Mr. Chen Shengmin still served as the Chief Financial Officer of the Company.
2. On May 18 2021 Mr. Lan Ke resigned as an independent director chairman of the Nomination Committee and member of the
Development Strategy Committee of the 7th Board of Directors when his service period was about to reach six years. After his
resignation Mr. Lan Ke would no longer hold any position in the Company.
3. On August 26 2021 to facilitate the better long-term development of the Company Mr. Huang Qiaoling applied for resigning as
the Chairman and Ms. Zhang Xian applied for resigning as the President. On the same day the Company elected Ms. Zhang Xian as
the Chairman and employed Ms. Shang Lingxia as the President. After his resignation Mr. Huang Qiaoling remains as director of the
Company chairman of the Development Strategy Committee member of the Nomination Committee and general director and
general planner of the Romance Show series and performing arts works of the Company.Changes in directors supervisors and senior management
√ Applicable □ Not applicable
Name Position Type Date Reason
Secretary of the
Chen Shengmin Resigned Thursday April 22 2021
Board
Secretary of the
Hou Li Appointed Thursday April 22 2021 Appointment of Board of Directors
Board
Resigned upon
Independent Resigned when the tenure of service is about to
Lanke expiration of the Tuesday May 18 2021
Director expire
tenure of service
Independent
Yang Yiqing Elected Tuesday May 18 2021 Election of the General Meeting of Shareholders
Director
Thursday August 26
Huang Qiaoling Chairman Resigned
2021
Thursday August 26
Zhang Xian Chairman Elected Election of the Board of Directors
2021
Thursday August 26
Zhang Xian President Resigned
2021
Thursday August 26
Shang Lingxia President Appointed Appointment of Board of Directors
2021
45Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
2. Positions
Professional backgrounds major work experiences and current main responsibilities in the Company for incumbent directors
supervisors and senior management of the Company
1. Mr. Huang Qiaoling: 64 years old senior economist Chinese nationality without permanent residency abroad. Mr. Huang
Qiaoling served as Chairman and President of Songcheng Tourism Development Co. Ltd. from February 1999 to December 2000.Since November 1997 he has served as Chairman of Songcheng Group; From August 2001 to March 2013 he served as Chairman of
Hangzhou World Leisure Expo Park Co. Ltd. He served as Chairman of the Company from December 2000 to August 2021. He has
served as a director of the Company since December 2000.
2. Mr. Huang Qiaolong: 62 years old college degree economist Chinese nationality without permanent residency abroad. Mr.
Huang Qiaolong served as Vice President and Chairman of Songcheng Holdings from March 2003 to November 2009. He has served
as a director of the Company since December 2000.
3. Ms. Zhang Xian: 48 years old master degree a famous person in national publicity and cultural system with the title of "Four
Excellency" talent. Chinese nationality without permanent residency abroad. Ms. Zhang Xian used to be an English teacher in
middle school and Deputy Director of Nanhu Revolutionary Memorial Hall. In December 2000 she joined Songcheng Group as
Deputy General Manager of Songcheng Holdings; From February 2002 to July 2003 she served as the General Manager of
Songcheng Tourism Management Branch; From August 2003 to February 2007 she served as Vice President of Songcheng Holdings;
From March 2007 to February 2009 she served as Vice President of the Company; From March 2009 to December 2010 she served
as Executive President of the Company; She has served as the President of the Company from December 2010 to August 2021. She
has served as a director of the Company since June 2010 and Chairman of the Company since August 2021.
4. Ms. Shang Lingxia: 47 years old bachelor degree Chinese nationality without permanent residency abroad. Ms. Shang Lingxia
served as the secretary of Chairman of Songcheng Holdings from March 2001 to July 2003; From August 2003 to September 2005
she served as General Manager of Songcheng Tourism Management Branch; From October 2005 to April 2008 she served as
General Manager of Hangzhou World Leisure Expo Park Co. Ltd.; From May 2008 to November 2010 she served as General
Manager of First World Hotel; From December 2010 to December 2017 she served as Vice President of the Company; From January
2018 to August 2021 she served as Executive Vice President of the Company. She has served as a director of the Company since
August 2013 and the President of the Company since August 2021.
5. Mr. Zhang Jiankun: 58 years old college degree Chinese nationality without permanent residency abroad. From October 1994 to
April 1999 Mr. Zhang Jiankun served as the director of Songcheng Real Estate Engineering Department; From May 1999 to February
2002 he served as the Engineering Department Manager of Hangzhou Huamei Science and Technology Education Investment Co.
Ltd.; From March 2002 to February 2004 he served as Deputy General Manager of Songcheng Holding Engineering Construction
Department; From March 2004 to February 2005 he served as Deputy General Manager of Landscape Real Estate; From March
2005 to February 2006 he served as General Manager of Songcheng Holdings Engineering Department; From March 2006 to
February 2009 he served as Vice President of Landscape Real Estate; From March 2009 to February 2012 he served as Vice
President of the Company; From March 2012 to December 2013 he served as Executive Vice President of the Company; He has
been the Executive President of the Company since January 2013 and the director of the Company since February 2013.
6. Mr. Huang Hongming: 50 years old bachelor degree senior economist Chinese nationality without permanent residency abroad.
Mr. Huang Hongming has been the Deputy General Manager of Songcheng Real Estate Company; Vice Chairman and President of
Hong Kong Jinhui International Investment Group; Since September 2013 he has served as Executive President of Songcheng
Holdings Company and has served as a director of the Company since April 2019.
7. Mr Yang Yiqing: 52 years old master degree Chinese nationality without permanent residency abroad. He is a senior expert in
Zhejiang Merchants research and professor of Zhejiang Gongshang University. He used to be the head of a subordinate newspaper
of Zhejiang Daily Press Group assistant to the Chairman and director of strategic development of Songcheng Group and executive
director of Holley Group. Now he is the Deputy Director of Zhejiang Merchants Institute of Zhejiang Gongshang University Director
46Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
of Zhejiang Merchants Museum Executive Director of Zhejiang Merchants Seminar Secretary General of Academic Research Center
of the General Association of Zhejiang Merchants member of Organizing Committee of Global Zhejiang Entrepreneur Convention
executive member of Zhejiang Federation of Industry and Commerce etc. He has served as an independent director of the
Company since May 2021.
8. Mr. Liu Shuzhe: 65 years old master degree senior economist Chinese nationality without permanent residency abroad. Mr. Liu
Shuzhe has served as loan officer of Jiande Sub-branch of People's Bank of China Deputy Head of Xiaoshan Sub-branch of Industrial
and Commercial Bank of China Chief Deputy Director and Vice President of Hangzhou Branch of Industrial and Commercial Bank of
China and has been an independent director of the Company since August 2019.
9. Ms. Yu Qinyi: 42 years old master degree Chinese nationality without permanent residency abroad. From July 2005 to
December 2009 she served as strategic investment consultant of Zhongxin Zhongliang Lianxing Co.Ltd.; Since January 2010 she has
been a certified public accountant of Zhejiang Herui Certified Public Accountants Co. Ltd. and has been an independent director of
the Company since March 2017.
10. Ms. Zhu Hualu: 67 years old college degree Chinese nationality without permanent residency abroad. From January 1995 to
January 2005 Ms. Zhu Hualu served as Art Department Manager General Manager Assistant and Executive Deputy General
Manager of Hangzhou World City Songcheng Real Estate Co. Ltd. and Vice President of Hangzhou Songcheng Group Holdings Co.Ltd.; She has served as Chairman of the Board of Supervisors of the Company since December 2000.
11. Ms. Yu Feng: 46 years old bachelor degree Chinese nationality without permanent residency abroad. Ms. Yu Feng served as
Deputy Manager of Xiaoshan International Hotel from October 1995 to June 2003; From August 2003 to July 2004 she served as
Deputy Manager of Human Resources Department of Hangzhou Paradise; From August 2004 to November 2006 she served as HR
Manager of Hangzhou Landscape Real Estate Co. Ltd. and HR Manager of Hangzhou World Leisure Expo Park Co. Ltd.; From
December 2006 to April 2011 she served as Director of Human Resources Department and Deputy General Manager of general
manager office of Hangzhou First World Hotel Co. Ltd.; From April 2011 to December 2012 she served as Deputy Director of
Human Resources Department of Hangzhou Songcheng Group Holdings Co. Ltd.; From January 2013 to December 2015 she served
as Director of Hangzhou First World Hotel Co. Ltd. and Deputy General Manager of the administrative office; From January 2016 to
December 2017 she served as General Manager of Hangzhou Songcheng Tourism Development Co. Ltd.; She has served as
President Assistant of the Company since January 2018 and has served as supervisor of the Company since August 2013.
12. Ms. Xu Jie 54 years old assistant ideological and political worker Chinese nationality without permanent residency abroad.
From June 1999 to February 2002 Ms. Xu Jie served as Deputy Manager of Real Estate Marketing Department of Hangzhou Xianghu
Green Valley Tourism Development Co. Ltd. From March 2002 to June 2002 she served as Deputy Manager of Early Stage
Department of Hangzhou Nandu Songcheng Real Estate Co. Ltd.; From July 2002 to May 2006 she served as Property Manager of
Hangzhou World Leisure Expo Park Co. Ltd.; From June 2006 to December 2008 she served as Property Manager of Hangzhou
Songcheng Landscape Real Estate Co. Ltd.; From February 2009 to December 2010 she served as General Manager Assistant of
Hangzhou Songcheng Group Property Services Co. Ltd.; Since January 2010 she has served as Deputy General Manager of
Hangzhou World Leisure Expo Park Co. Ltd. and since August 2016 she has served as supervisor of the Company.
13. Mr. Zheng Qi: 45 years old college degree Chinese nationality has served as Sales Manager of the mobile phone business unit
of the Market Development Department of China Putian Hangzhou Subsidiary; Manager of Jiangsu and Hubei Regions of Mobile
Communications Division of East China Representative Office of Ericsson China Investment Co. Ltd.; General Manager of Energy
Division of Aerospace Communications Holding Group Co. Ltd.; Deputy general manager of Zhejiang Aerospace Electronic
Information Industry Co. Ltd. Since December 2013 he has served as Executive Director and General Manager of Lijiang Chama
Ancient City Tourism Development Co. Ltd Chairman and General Manager of Aba Zhou Jiuzhai Romance Tourism Development Co.Ltd Director and General Manager of Guilin Lijiang Romance Performance Development Co. Ltd Director and General Manager of
Jiuzhaigou Tibetan Mystery Culture Co. Ltd and President Assistant of Songcheng Performance Development Co. Ltd and has
served as Vice President of the Company since October 2018.
14. Mr. Chen Shengmin: 51 years old college degree accountant Chinese nationality without permanent residency abroad. From
47Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
March 2002 to March 2004 Mr. Chen Shengmin served as the lead accountant of Finance Department of the Leyuan Tourism; From
April 2004 to February 2005 he served as the Finance Manager of the Leyuan Tourism; From March 2005 to July 2007 he served as
Finance Manager of Landscape Real Estate; From May 2017 to April 2021 he served as the Secretary of the Board of Directors of
the Company. He has served as the Chief Financial Officer of the Company since July 2007.
15. Ms. Hou Li: 39 years old master degree Chinese nationality without permanent residency abroad. She has worked in
Songcheng Performance since May 2008 and served as the head of Securities Department and assistant to the General Manager of
Songcheng Performance. She began to serve as the Representative of Securities Affairs of Songcheng Performance from January
2013 and served as Deputy General Manager for securities investment of Songcheng Performance from January 2016. She has
served as the Secretary of Board of Directors of the Company since April 2021.Position held in shareholders entities
√ Applicable □ Not applicable
Remuneration and
Position held in
Starting date of Termination Date allowance received
Name Name of shareholder entity shareholders
tenure of tenure from a shareholder
entities
entity or not?
Hangzhou Songcheng Group Holdings Executive
Huang Qiaoling No
Co. Ltd Director
Huang Hangzhou Songcheng Group Holdings
Supervisor No
Qiaolong Co. Ltd
Huang Hangzhou Songcheng Group Holdings Executive
Yes
Hongming Co. Ltd President
Position held in other entities
√ Applicable □ Not applicable
Renumeration
Position held
Starting date of Termination Date received from
Name Name of other entity in other
tenure of tenure other entity or
entities
not
Certified
Zhejiang Herui Certified Public Accountants
Yu Qinyi Public Yes
Co. Ltd.Accountant
Xiangpiaopiao Food and Zhejiang Meili High Independent
Yang Yiqing Yes
Technology Co.Ltd Director
Bank of Hangzhou CHINT Electrics Co. Ltd.Independent
Liu Shuzhe Hangzhou GREENDA Electronic Materials Yes
Director
Co. Ltd.Deputy
General
Xu Jie Hangzhou World Leisure Expo Park Co. Ltd Yes
Manager and
Supervisor
Incumbent or outgoing directors supervisors and senior management in the reporting period that have been imposed
administrative penalties by CSRC in the last three years
48Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
□ Applicable √ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
The following describes the decision-making program determination basis and actual payment of remuneration for directors
supervisors and senior management.Procedures for making decisions on the remuneration of directors supervisors and senior management personnel: remuneration of
directors and supervisors is determined by the general meeting of shareholders while remuneration of senior managers is
determined by Board of Directors. Directors supervisors and senior management personnel who perform their duties in the
Company receive remuneration according to specific positions.Basis for determining the remuneration of directors supervisors and senior management personnel: The remuneration of directors
supervisors and senior management personnel shall be determined and distributed according to the Working Rules of
Remuneration and Appraisal Committee of the Board of Directors of the Company and based on the Company's operating
performance their own performance work ability post responsibilities and other assessments.Remuneration of directors supervisors and senior management in the reporting period of the Company
Unit: ten thousand RMB
Total Whether to
remuneration receive
Name Post Gender Age Position status from the remuneration
Company before from related
tax parties or not
Huang Qiaoling Director Male 64 Incumbent 64.32 No
Huang Qiaolong Director Male 62 Incumbent Yes
Directors and
Zhang Xian Female 48 Incumbent 63.12 No
Chairman
Director
Shang Lingxia Female 47 Incumbent 53.43 No
President
Director
Zhang Jiankun Executive Male 58 Incumbent 57.12 No
President
Huang Hongming Director Male 50 Incumbent Yes
Independent
Yang Yiqing Male 52 Incumbent 3.33 No
Director
Independent
Liu Shuzhe Male 65 Incumbent 5 No
Director
Independent
Yu Qinyi Female 42 Incumbent 5 No
Director
Chairman of the
Zhu Hualu Board of Female 67 Incumbent 5 No
Supervisors
49Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Yu Feng Staff Supervisor Female 46 Incumbent 35.5 No
Xu Jie Supervisor Female 54 Incumbent Yes
Zheng Qi Vice President Male 45 Incumbent 51 No
Chief Financial
Chen Shengmin Male 51 Incumbent 45.43 No
Officer
Secretary of the
Hou Li Female 39 Incumbent 33.82 No
Board
Total -- -- -- -- 422.07 --
VIII. Performance of Directors' Duties during the Reporting Period
1. The Board of Directors during the reporting period
Conference Session Date of Conference Date of Disclosure Meeting Resolution
Details are provided in the
Notice of Resolution of the 10th
The 10th meeting of the 7th
Thursday April 22 2021 Friday April 23 2021 Meeting of the 7th Board of
Board of Directors
Directors (2021-014) available
at http://www.cninfo.com.cn/
For details see Notice of
Resolution of the 11th Meeting
The 11th meeting of the 7th
Monday June 21 2021 Monday June 21 2021 of the 7th Board of Directors
Board of Directors
(2021-023) available at
http://www.cninfo.com.cn/
For details see Notice of
Resolution of the 12th Meeting
The 12th meeting of the 7th
Wednesday August 11 2021 Thursday August 12 2021 of the 7th Board of Directors
Board of Directors
(2021-025) available at
http://www.cninfo.com.cn/
For details see Notice of
Resolution of the 13th Meeting
The 13th meeting of the 7th
Thursday August 26 2021 Thursday August 26 2021 of the 7th Board of Directors
Board of Directors
(2021-031) available at
http://www.cninfo.com.cn/
The 14th meeting of the 7th Deliberation of Report of the
Friday October 22 2021
Board of Directors Third Quarter of 2021
50Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
2. Attendance of director at the meeting of Board of Directors and general meeting of shareholders
Attendance of director at the meeting of Board of Directors and general meeting of shareholders
Number of Whether
Number of
Number of attendance of Number of absent from Number of
board Number of
on-site board attendance of board attendance of
meetings to absence at
Name of director attendance of meetings by board meetings in shareholders'
attend during board
board means of meetings by person for two general
the reporting meetings
meetings telecommunic entrustees consecutive meetings
period
ations times
Huang Qiaoling 5 5 0 0 0 No 2
Huang Qiaolong 5 5 0 0 0 No 2
Zhang Xian 5 5 0 0 0 No 2
Shang Lingxia 5 5 0 0 0 No 2
Zhang Jiankun 5 5 0 0 0 No 2
Huang Hongming 5 5 0 0 0 No 2
Liu Shuzhe 5 5 0 0 0 No 2
Yang Yiqing 4 4 0 0 0 No 1
Yu Qinyi 5 5 0 0 0 No 2
Lanke 1 1 0 0 0 No 1
3. Objections of directors to related issues of the company
Whether directors raise any objection to related issues of the Company
□ Yes √ No
During the reporting period directors did not raise objections to the company's related issues.
4. Other information on directors' performance of duties
Whether proposals made by directors were adopted by the Company
√ Yes □ No
Statement on the acceptance or rejection of director's proposals on company issues.In the report period all directors of the Company have acted with due diligence and adhered to their duties by carrying out various
tasks according to the regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange as well as the Company
Law and Securities Law and its Articles of Association Rules of Procedure of Board of Directors and Working Rules of Independent
Directors thus conducting in-depth communication and discussion and reaching consensus on all the proposals submitted to the
Board of Directors for review and resolutely supervising and promoting the implementation of the resolutions of the Board of
Directors to ensure scientific timely and efficient decision-making and secure the legitimate rights and interests of the Company
and all shareholders.
51Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
XI. Performance of Special Committees under the Board of Directors during the Reporting Period
Important
Specific
Name of Number of Date of Meeting opinions and Performance of
Members objections (if
Committee meetings held Conference subjects suggestions other duties
any)
proposed
With due
diligence the
Review and
Audit
approve: 2020
Committee has
Final Financial
carried various
Report 2020
tasks according
Profit
to the
Distribution
Company Law
Plan Proposal
and its Articles
2020 Audit
of Association
Report
and Rules of
Proposal 2020
Procedure of
Internal
Board of
Thursday April Control
Directors
22 2021 Self-Evaluation
putting
Report 2021
forward kinds
Auditor
of opinions
Appointment
Liu Shuzhe Yu according to
Audit
Qinyi Zhang Proposal 2020 3
Committee the actual
Jiankun Annual position of the
Report’s Full
Company and
Text and
passing all
Summary and
proposals
2021 First
unanimously
Quarter
after full
Report.communication
and discussion.Review and
Thursday approve: 2021
August 26 Semi-Year
2021 Report’s Full
Text
Review and
Friday October approve: 2021
22 2021 Q3 Report’s
Full Text
Nomination Lanke Huang 1 Thursday April Review and The
52Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Committee Qiaoling Liu 22 2021 approve: Nomination
Shuzhe Proposal of Committee has
Changing the reviewed for
Secretary of the eligibility of
Board of candidates and
Directors and unanimously
Proposal on adopted the
Expiration of relevant
Independent proposal.Directors'
Tenure and
Election of
Substitute
Independent
Directors
Review and
approve:
Proposal of
Yang Yiqing Electing the
Thursday
Nomination Huang Chairman of
1 August 26
Committee Qiaoling Liu the Company
2021
Shuzhe and Proposal of
Employing the
President of
the Company.The
Development
Strategy
Committee has
made in-depth
research and
analysis on the
Review and
industry and
approve: Work
Development Huang the challenges
Thursday April Report of the
Strategy Qiaoling Zhang 1 it may face in
22 2021 Board of
Committee Xian Lanke the future put
Directors in
forward
2020
valuable
opinions for
the Company
to formulate
mid- and
long-term
development
53Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
strategies and
unanimously
agreed to
relevant
proposals.X. Work of the Board of Supervisors
Has Board of Supervisors discovered any risk in the company during the supervision in the reporting period
□ Yes √ No
The Board of Supervisors has no objection to the supervision matters during the reporting period.XI. Personnel of the Company
1. Number profession composition and educational background of the employees
Number of incumbent employees in the parent company at the
99
end of the reporting period (persons)
Number of incumbent employees of major subsidiaries at the
1060
end of the reporting period (persons)
Total number of incumbent employees at the end of the
1159
reporting period (persons)
Number of employees receiving salaries in current period
1159
(person)
Number of retired employees requiring the parent company and
0
major subsidiaries to bear their costs
Profession composition
Type of profession composition Number of employees for profession composition (person)
Production personnel 317
Salesperson 75
Technical personnel 196
Financial personnel 75
Administrative personnel 65
Executive personnel 190
Service personnel 241
Total 1159
Educational background
Type of educational background Number of employees (person)
Junior high school and below 61
54Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
High school/technical secondary school 258
Junior college 438
Bachelor 382
Master and above 20
Total 1159
2. Remuneration policies
The Company has set up the big "H" broadband remuneration system which not only provides a promotion channel and platform
for management but also encourages employees to get higher remuneration by improving their skills and professional levels. The
Company has established a national professional title and professional qualification reward system and monthly and one-time
rewards have been granted for certain professional titles and professional qualification certificates. A key employee reward system
has been established for employees with excellent business skills and these rewards are granted monthly. Promotion and
downgrading decisions are made through quarterly assessment to fully promote the fairness and competitiveness within the
Company. We evaluate and adjust employees’ salaries based on the Company's operating performance employees’ appraisal results
work performance social and economic developments price level and regional differences and advocate a salary confidentiality
system.Salary is composed of post salary various subsidies benefits and bonuses. The salary of management personnel consists of basic
salary post salary performance salary and allowance; the salary of employee-level positions consists of basic salary performance
salary and allowance. Among them the basic salary and performance salary are verified according to the management level and
performance appraisal scheme. The performance salary of employees is closely associated with business operation in theCompany's slack season and busy season and respective workload on the basis of the principle of "more pay for more work” The
post salaries for the management personnel at supervisor level or above are determined according to their management level.
3. Training plan
(1) The Company is committed to building a comprehensive talent training system and a scientific talent promotion mechanism to
help the Company achieve its strategic goals and continuously improve the all-round ability of its employees. The cultivation and
promotion of talents are the main components of the annual KPI for each manager of the Company and also an important part in
assessing the responsibility system of annual business objectives of the company. The Company attaches great importance to the
cultivation of talents and gives notices of praise and material rewards to subsidiaries that have made outstanding contributions to
the cultivation of talents.
(2) The Company has established a sound staff training system and internal trainer training system and has formulated targeted
training programs such as "Induction Training" "Job Skills Training" "General Skills Training" "Professional Skills Upgrading
Training" "Professional Skills Upgrading Training" "Management Skills Training" "Internal Trainer Training (TTT)" "Songcheng Star
Training Class " "Artistic Performance and Management" and intensive training classes within each vertical management system.The Company has established a vertical management center of the scenic spots held vertical management meetings regularly and
carried out various forms of training every year to improve the business and management skills of their employees within the
system. The vertical management center of the scenic spots regularly visits each subordinate company for work inspection every
year. In addition to such inspections the excellent work experience and cases of each company are also shared within the system.
(3) The Company helps the growth of talents through a combination of internal and external trainings. We have cooperated with
many external professional training institutions to constantly update and strengthen the professional knowledge and practical skills
55Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
of our talents in administration human resources finance and taxation marketing planning business and management. The
Company has established “Songcheng Group Online School” to create good study atmosphere for employees in the Company to
participate in online training anytime and anywhere. In addition the Company has held a mini-lecture contest to encourage
employees to participate in the recording of mini-lectures and the production of courses. The Company has uploaded excellent
courses to the Online School for all employees to learn.
(4) The subsidiaries of the Company have held a variety of themed activities such as Quarterly Business Skills Competition Outdoor
Training for Employees Four Seasons Themed Event for Employees and Internal Trainers Salon. Subject to local COVID-19 policies
the Company advocates healthy exercise approaches and enriches the development of training and other activities.
(5) The Company registered an official corporate culture publicity account named "Songcheng people" on WeChat so as to display
various corporate culture activities organized by the Company to employees and strengthen the publicity of award-winning
employees such as "the Most Beautiful Songcheng people" "Star Employees" and "Excellent Interns" thus creating an excellent
corporate culture atmosphere. Employees can also leave messages on WeChat and any suggestions and opinions about the
Company can be sent to the chairman's mailbox. In addition the Company shall strengthen the interaction and communication
between its management and the employees and implement excellent and feasible suggestions put forward by employees.
4. Labor outsourcing
√ Applicable □ Not applicable
Total hours of labor outsourcing (hours) 1425076
Total remuneration paid for labor outsourcing (RMB) 28501534.53
XII. Profit Distribution and Conversion of Capital Reserves into Share Capital
Formulation execution or adjustment of profit distribution policy especially the cash dividend during the Reporting Period
√ Applicable □ Not applicable
The Company held the 10th meeting of the 7th Board of Directors and 8th meeting of the 7th Board of Supervisors on April 22 2021
and the 2020 Annual General Meeting of Shareholders on May 18 2021 reviewing and approving the 2020 Annual Profit
Distribution Plan under which the Company would on the basis of the total capital of 2614694040 shares distribute a cash
dividend of RMB 0.50 (including tax) for every 10 shares to all shareholders at the end of 2020. Total cash dividend of RMB
130734702 was distributed. During the reporting period the Company has completed the equity distribution. The equity
registration date: Tuesday June 1 2021 and the date of exclude right (XR) and exclude dividend (DR): Wednesday June 2 2021.Special notes on cash dividend policies
Whether they comply with the requirements of the Company's articles
of incorporation or the resolutions of the General Meeting of Yes
Shareholders:
Whether the dividend standards and proportions are distinct and
Yes
clear:
Whether the relevant decision-making procedures and mechanisms
Yes
are complete:
Whether the independent directors performed their duties and played
Yes
their due role:
56Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
Whether the minority shareholders have the opportunity to fully
express their opinions and appeals and whether their legitimate rights Yes
and interests have been fully protected:
Whether relevant conditions and procedures are compliant and
transparent when the cash dividend policies are being adjusted or Not applicable.changed:
The plan for profit distribution and capitalization of capital reserves during the reporting period is consistent with relevant
provisions in the articles of association and dividend management measures of the Company
√ Yes □ No □ Not applicable
The plan for profit distribution and capitalization of capital reserves during the reporting period is in compliance with relevant
provisions in the articles of association of the Company.Profit distribution and capitalization of capital reserves in the current year
Number of bonus shares per 10 shares (shares) 0
Number of dividend payout per 10 shares (RMB)
0.50
(tax included)
Number of capitalized shares per 10 shares
0
(shares)
Equity base in the distribution preplan (shares) 2614694040
The amount of cash dividends (yuan) (including
130734702.00
tax)
The amount of cash dividends (yuan) in other
0.00
ways (such as share repurchase)
The total amount of cash dividends (including in
130734702.00
other ways) (yuan)
Distributable profits (RMB) 3131881024.60
The ratio of the total amount of cash dividends
(including in other ways) to the total amount of 100.00%
profit distribution
Latest cash dividend
If the Company's development stage is not easy to define but there are significant capital expenditure arrangements when the
profits are being distributed the proportion of the cash dividends in this profit distribution should be at least 20%
Details of the preplans on profit distribution or capitalization of capital reserves
Audited by BDO China Shu Lun Pan CPAs (special general partnership) the net profit attributable to the shareholders of the listed
company in 2021 was RMB 315130800. Based on the total share capital of 2614694040 shares as at Friday December 31 2021
the Company distributed RMB 0.50 (tax included) of dividend for every 10 shares to all the shareholders with a total cash
dividend of RMB 130734702.The profits of the Company in the Reporting Period and the parent company's profits distributable to shareholders are positive but
the Company did not put forward a proposed plan for cash dividend distribution.□ Applicable √ Not applicable
57Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
XIII. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plan or
Other Employee Incentive Measures
□ Applicable √ Not applicable
During the reporting period the Company has no equity incentive plan employee stock ownership plan or other employee
incentive measures and their implementation.XIV. Establishment and implementation of the Company’s Internal Control System During the
Reporting Period
1. Establishment and implementation of internal controls
In the report period the Company has updated and improved its internal control system timely in accordance with the Basic Norms
of Internal Control of Enterprises and its guidelines. It has established a simple suitable and effective one with scientific design. The
Audit Committee and the internal audit department have jointly formed the organization for risk management and internal control
to supervise and evaluate the internal control of the Company. Through the operation analysis and assessment related to the
internal control system the Company has effectively prevented risks in operation and management thus promoting the
achievement of internal control objectives.
2. Details of material weakness in internal control found during the reporting period
□ Yes √ No
XV. Management and controls of subsidiaries during the Reporting Period
Problems arising
Integration
Company Name Integration plan from the Actions taken Solving progress Follow-up plan
progress
integration
N/A N/A N/A N/A N/A N/A N/A
XVI. Self-assessment Report on Internal Control or Audit Report on Internal Control
1. Internal control self-evaluation report
Date of full-text disclosure for internal
Friday April 22 2022
control assessment report
Full-text disclosure index for internal For details see 2021 Annual Internal Control Self-Evaluation Report published by the
control assessment report company on http://www.cninfo.com.cn on Friday April 22 2022
Percentage of total asset from units
included in the assessment out of the total
77.48%
asset from the company's consolidated
financial statements
The proportion of operating income of 89.81%
58Full Text of 2021 Annual Report of Songcheng Performance Development Co. Ltd
parties included in the assessment to total
operating income from the Company's
consolidated financial statements
Defect identification criteria
Category Financial Report Non-financial reports
The Company is deemed to have a
material deficiency in internal control
not related to financial reporting if the
A material deficiency in internal control over
following circumstances occur:
financial reporting is considered to exist if:
(1) The Company's operating activities
(1) The Company's control environment is
seriously violate national laws and
ineffective;
regulations;
(2) Fraud by any of the directors supervisors
(2) Unscientific decision-making
and senior management;
procedures resulting in major mistake in
(3) The Certified Public Accountant finds
decision-making which causes
that there is a material misstatement in the
significant property losses to the
current financial report however the
Company;
Company's internal control fails to detect
(3) Significant loss of key management
such misstatement in the course of
personnel or technical personnel;
operation;
(4) Frequent occurrence of negative
Qualitative standards (4) Ineffective supervision of internal control
news or reports which aroused great
by the Company's Audit Committee and
concern of regulatory authorities and
internal audit department.cannot be eliminated in a long period of
Significant deficiency: A deficiency that
time.alone or in combination with other
Significant deficiency: A deficiency that
deficiencies is less serious than a material
alone or in combination with other
deficiency but may still cause the Company
deficiencies is less serious than a
to deviate from its control objectives.material deficiency but may still cause
General deficiency: Other internal control
the Company to deviate from its control
deficiencies that do not constitute a
objectives.material deficiency or a significant
General deficiency: Other internal
deficiency.control deficiencies that do not
constitute a material deficiency or a
significant deficiency.Property losses caused by deficiencies
Potential misstatement of total profits
material deficiency: property losses
material deficiency: misstatement ≥ 5% of
caused by deficiencies ≥ 5% of total
total profits; significant deficiency: 2% of
Quantitative standards profits; significant deficiency: 2% of total
total profits ≤ misstatement < 5% of total
profits ≤ property losses caused by
profits; general deficiency: misstatement