1. Summary

(1) Hotel industry and financial industry of 188bet Live Casino Holdings

1. 188bet Live Casino Holdings’ hotel industry

28 operating hotels，12 of them are self-operated、3 independent brand output management companies；7452 hotel rooms；188bet Live Casino occupancy rate 61 in 2016.37%。End of 2016，47 hotels under construction。

2. 188bet Live Casino Holdings’ financial industry

(1) Operating 188bet Live Casino accounts for 0 of main operating 188bet Live Casino20%、Gross profit margin 99.98% ranks first among the top ten greenfield industries。
(2) Yesterday June 19, 2017，Four investors including 188bet Live Casino Financial Investment Holding Group Co., Ltd. signed a contract to join Qingdao Airlines Logistics，China Eastern Airlines Group holds 45%、Lenovo Holdings holds 25%，188bet Live Casino holds 5%、Overseas GLP holds 10%、Overseas German holdings 5%。Core employees of China Eastern Logistics hold 10% shares of China Eastern Logistics。This is the first enterprise in the country’s first batch of mixed-ownership reform pilot projects in the civil aviation field。
(3) 188bet Live Casino Financial Investment Holding Group was established in April 2011，188bet Live Casino Finance has completed the business layout of four major sectors，Investment from financial institutions、Fund investment and management business (including real estate funds、Industrial Fund、M&A Fund、Fund investment and management of equity investment funds, primary and secondary market securities investment funds, etc.)、Financial business (including self-operated small loan companies)、Financial Assets Trading Center、Financial leasing company、Wealth management company, etc.)、Capital operations (including asset management、Overseas direct investment、Mergers, Acquisitions and Reorganization、Bulk asset transactions, etc.)，Initiate the establishment of the Internet Finance Division on this basis，Integrate various trading centers、Wealth Management、Resources such as third-party payment and credit reporting，Dedicated to Internet financial business。

(2) Ranking of 188bet Live Casino Holdings’ main business income ratio in 10 industries in 2016。
(3) 188bet Live Casino Holdings’ 2016 Gross Profit Rate Ranking of 10 Industries。
(4) Operating 188bet Live Casino of 10 industries、Proportion of main business、Operating costs、Gross profit margin。
(5) Ranking of average room rates of 28 188bet Live Casino hotels in 15 cities in 2016。
(6) Details of 188bet Live Casino Holdings’ 2016 consolidated income statement.
(7) Breakdown of 188bet Live Casino Holdings’ 2016 taxes and surcharges of RMB 12,317.3 million。
(8) Breakdown of 188bet Live Casino Holdings’ sales expenses of RMB 4,806.84 million in 2016。
(9) Breakdown of 188bet Live Casino Holdings’ management expenses of RMB 6,070.86 million in 2016。
(10) Breakdown of 188bet Live Casino Holdings’ financial expenses of RMB 2,784.38 million in 2016。

二、Ranking of 188bet Live Casino Holding’s 2016 main business income ratio in the top 10 industries

Real estate 59.20%
Building 31.25%
Product sales 6.51%
Car 5.14%
Energy 4.38%
188bet Live Casino 0.72%
Greening 0.44%
Property 0.30%
Leasing 0.28%
Finance 0.20%
Internal offset 8.60%

三、188bet Live Casino Holdings’ 2016 Gross Profit Rate Ranking of Top 10 Industries

Finance 99.98%
188bet Live Casino 80.78% (not a common standard in the 188bet Live Casino industry)
Real estate 20.65%
Property 16.70%
Greening 14.90%
Car 7.58%
Building 4.70%
Energy 1.55%
Product sales 0.69%
Lease-19.27%

four、Operating 188bet Live Casino of 10 industries、Proportion of main business、Operating costs、Gross profit margin

Industry operating income/proportion of main business/operating cost/gross profit margin (10,000 188bet Live Casino)
Real estate and related 14507654/59.20%/11512096/20.65%
Construction and related 7659153/31.25%/7299091/4.70%
Commodity sales and related 1594302/6.51%/1583373/0.69%
Automobiles and related 1260593/5.14%/1165004/7.58%
Energy and related1072626/4.38%/1056019/1.55%
188bet Live Casino and related175415/0.72%/33713/80.78%
Greening and related 106796/0.44%/90888/14.90%
Property and related 73123/0.30%/60913/16.70%
Lease 188bet Live Casino 68103/0.28%/81226/-19.27%
Finance and related 48437/0.20%/9/99.98%
Other 188bet Live Casino 48434/-0.07%/64795/-33.78%
Subtotal 26614636/108.60%/22947128/13.78%
Minus: Internal offset number 2107670/8.60%/2078494/1.38%
Total 24506967/100.00%/20868633/14.85%

五、Ranking of average room rates of 28 188bet Live Casino hotels in 15 cities in 2016

1、172 rooms at Primus Hotel Sydney 188bet Live Casino；Average house price 1248.67 yuan。
2、290 rooms at Shanghai Marriott Hotel 188bet Live Casino；Average house price 846.15 yuan。
3、433 rooms at Nanjing 188bet Live Casino Intercontinental Hotel；Average house price 810.97 yuan。
4、275 rooms at Fraser Suites Suzhou 188bet Live Casino；Average house price 677.55 yuan。
5、247 rooms at Crowne Plaza Huangshan Taiping Lake；Average house price 675.19 188bet Live Casino。
6、416 rooms at JW Marriott Hotel Zhengzhou 188bet Live Casino；Average house price 668.93 yuan。
7、144 rooms in Nanjing 188bet Live Casino Yuhao Hotel；Average house price 631.19 yuan。
8、295 rooms in Shanghai Pudong 188bet Live Casino Platinum Hotel；Average house price 627.94 yuan。
9、231 rooms at Meliá Jinan 188bet Live Casino；Average house price 514.50 yuan。
10、386 rooms at Holiday Inn Shanghai Pudong 188bet Live Casino；Average house price 502.86 yuan。
11、Yinchuan International Exchange Center 355 rooms；Average house price 493.79 188bet Live Casino。
12、238 rooms at Courtyard Shanghai 188bet Live Casino；Average house price 479.39 yuan。
13、381 rooms at Holiday Inn Xi'an 188bet Live Casino；Average house price 473.43 yuan。
14、239 rooms at Crowne Plaza Xuzhou 188bet Live Casino；Average house price 458.99 yuan。
15、320 rooms in Shanghai 188bet Live Casino Kowloon Hotel；Average house price 453.00 yuan。
16、270 rooms at Four Points Hefei 188bet Live Casino；Average house price 438.42 yuan。
17、212 rooms in Shanghai Xinqiao 188bet Live Casino Platinum Hotel；Average house price 435.60 yuan。
18、25 rooms in Shanghai 188bet Live Casino Mansion；Average house price 418.00 yuan。
19、Four Points by Yangzhou 188bet Live Casino 247 rooms；Average house price 416.56 yuan。
20、204 rooms in Shanghai Nanqiao 188bet Live Casino Platinum Hotel；Average house price 386.92 yuan。
21、280 rooms at Hualuxe Hotel Nanchang 188bet Live Casino；Average house price 382.46 yuan。
22、190 rooms at Holiday Inn Express Shanghai Meilong 188bet Live Casino；Average house price 356.01 yuan。
23、336 rooms in Xuzhou 188bet Live Casino Platinum Hotel；Average house price 348.51 yuan。
24、146 rooms in Nanchang 188bet Live Casino Platinum Hotel；Average house price 337.17 yuan。
25、235 rooms at Holiday Inn Express Shanghai Putuo 188bet Live Casino；Average house price 336.82 yuan。
26、293 guest rooms at Aloft Zhengzhou 188bet Live Casino；Average house price 324.68 yuan。
27、279 rooms in Jingzhou 188bet Live Casino Platinum Hotel；Average house price 291.45 yuan。
28、313 rooms at Primus Hotel Shenyang 188bet Live Casino；Average house price 290.34 yuan。

VI. Consolidated Income Statement of 188bet Live Casino Holdings in 2016 (RMB 10,000)

(1) Total operating 188bet Live Casino 24740015
Among them
Operating 188bet Live Casino 24716022
Interest 188bet Live Casino 23366
Fees and commission 188bet Live Casino 627
(2) Total operating cost 23725678
Among them
Operating cost 20980660
Interest expense 1176
Fees and commission expenses 3
Tax and surcharge 1231730
Sales expenses 480684
Management expenses 607086
Financial expenses 278438
Asset impairment loss 145902
Profit and loss from changes in fair value-79182
Investment 188bet Live Casino 597719
(3) Operating profit 1532875
Add: Non-operating 188bet Live Casino 73101
Less: Non-operating expenses 161941
(4) Total profit 1444035
188bet Live Casino tax expense 504299
(5)Net profit 939736

seven、Breakdown of 188bet Live Casino Holdings’ 2016 taxes and surcharges of RMB 12,317.3 million (RMB 10,000)

Consumption tax 0.0166
Business tax from January to April 629553
Urban maintenance and construction tax 58772
Education fee surcharge 45666
Resource tax 2487
Property tax 16845
Land use tax 23867
Land value-added tax 427954
River management fee or water conservancy construction fund 4339
Flood Control and Security Fund 0.38
Cultural Undertakings Construction Fund 8
Dike fee 654
Price adjustment fund 233
Employment Guarantee Fund for Disabled Persons 432
Others 20921
Total 1231730

eight、Breakdown of 188bet Live Casino Holdings’ sales expenses of 4,806.84 million yuan in 2016 (10,000 yuan)

Salary 100229
Employee welfare fee 4780
Employee social insurance 10477
Housing provident fund and housing subsidy 2743
Union funds 300
Employee education funds 150
Labor protection fee 631
Office expenses 33097
Business entertainment expenses 3186
Travel expenses 2946
Abroad fee 3
Advertising fee 116881
Promotion fee 96950
Exhibition fee 3996
Leasing fee 11005
Transportation fee 6487
Depreciation 5453
Repair fee 1380
Insurance premium 91
Amortization of low-value consumables 1096
Amortization of long-term deferred expenses 1331
Amortization of intangible assets 50
The cost of hiring an intermediary agency is 30943
Labor fee 25934
Handling fee 2387
Sewage discharge fee 54
Consultation fee 30
Conference fee 13
Property fee 666
Sales service fee 160
Resource fee 5
Coal safety production fee 0.18
Energy cost 355
Laundry fee 239
Other16631
Labor prevention fee 6
Total 480684

Nine、Breakdown of 188bet Live Casino Holdings’ management expenses of 6,070.86 million yuan in 2016 (10,000 yuan)

Salary 227008
Employee welfare fee 7180
Employee social insurance 39552
Housing provident fund and housing subsidy 9146
Union funds 2722
Employee education funds 1467
Dismissal benefits 51
Labor protection fee 2986
Office expenses 68273
Business entertainment expenses 15863
Research and development fee 1949
Travel expenses 16161
Expenses for traveling abroad 50
Conference fee 2131
Company funds 261
External recruitment fee 44
Advertising fee 2011
Promotion fee 3368
Leasing fee 22115
Depreciation 37190
Repair fee 14268
Insurance premium 2742
Tax 20830
Amortization of low-value consumables 2237
Employment security fund for persons with disabilities 97
Amortization of long-term deferred expenses 10650
Amortization of intangible assets 26033
Consulting fee 24713
Litigation fees 3717
The cost of hiring an intermediary agency is 20902
Labor fee 6875
Fuel and heating costs 6
Property management fee 296
River management fee 7
Meal expenses 7
Vehicle fee 924
Communication fee 80
Security cleaning fee 20
Utility, electricity and gas charges 977
Basic management fee 194
Others11987
Total 607086

十、Breakdown of 188bet Live Casino Holdings’ financial expenses of 2,784.38 million yuan in 2016 (10,000 yuan)

Interest expense 223086
Interest 188bet Live Casino-49804
Interest discount on acceptance bill 3953
Exchange gains and losses 74013
Handling fee 16474
Others10716
Total 278438

*Author of this article: Zhao Huanyan，Expert Author，Chief Knowledge Officer of Huamei Consulting Group、Senior Economist。Welcome to communicate！