Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2019-030
HAINAN JINGLIANG HOLDINGS CO., LTD.
FIRST QUARTER REPORT 2019 (SUMMARY)
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Li Shaoling, the Company’s legal representative, Guan Ying, the Company’s head for
financial affairs, and Liu Quanli, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 1,707,549,259.31 1,866,527,190.78 -8.52%
Net profit attributable to the listed
26,311,530.50 31,041,912.71 -15.24%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 17,033,200.00 29,930,951.86 -43.09%
items (RMB)
Net cash generated from/used in operating
172,926,738.46 671,468,699.31 -74.25%
activities (RMB)
Basic earnings per share (RMB/share) 0.04 0.05 -20.00%
Diluted earnings per share (RMB/share) 0.04 0.05 -20.00%
Weighted average return on equity (%) 1.15% 1.47% -0.32%
31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 4,957,598,566.20 4,917,148,996.28 0.82%
Equity attributable to the listed company’s
2,298,664,279.60 2,272,469,925.43 1.15%
shareholders (RMB)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of
12,024,268.43
impairment allowance write-offs)
Government subsidies charged to current profit or loss (exclusive
of government subsidies given in the Company’s ordinary course
529,365.60
of business at fixed quotas or amounts as per government’s
uniform standards)
Non-operating income and expense other than the above -31,600.05
Less: Income tax effects 3,130,733.50
Non-controlling interests effects (net of tax) 112,969.98
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
Total 9,278,330.50 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders
Number of ordinary shareholders at
36,473 with resumed voting rights at the 0
the period-end
period-end (if any)
Top 10 shareholders
Shares in pledge or
Nature of Shareholding Restricted shares
Name of shareholder Total shares held frozen
shareholder percentage held
Status Shares
BEIJING GRAIN GROUP CO., State-owned legal
42.06% 288,439,561 164,877,598
LTD. person
BEIJING STATE-OWNED
State-owned legal
CAPITAL OPERATION AND 7.07% 48,510,460 48,510,460
person
MANAGEMENT CENTER
CHINA DEVELOPMENT BANK State-owned legal
3.33% 22,828,451
CAPITAL CO., LTD. person
GOLD BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND
MANAGEMENT CO., Other 3.20% 21,972,451
LTD.—GOLD BUFFALO
RUNYING (TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
Foreign natural
LI SHERYN ZHAN MING 2.71% 18,578,700
person
Domestic natural
MEI JIANYING 0.38% 2,604,203
person
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
Domestic natural
HU TIANGAO 0.35% 2,376,052
person
Foreign legal
SOCIETE GENERALE 0.32% 2,183,500
person
Domestic
DONGYANG HENGDIAN
non-state-owned 0.31% 2,105,469
GUARANTY CO., LTD.
legal person
Domestic natural
ZHANG XIAOXIA 0.28% 1,949,250
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
BEIJING GRAIN GROUP CO., RMB-denominated
123,561,963 123,561,963
LTD. ordinary stock
CHINA DEVELOPMENT BANK RMB-denominated
22,828,451 22,828,451
CAPITAL CO., LTD. ordinary stock
GOLD BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND
RMB-denominated
MANAGEMENT CO., 21,972,451 21,972,451
ordinary stock
LTD.—GOLD BUFFALO
RUNYING (TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
Domestically listed
LI SHERYN ZHAN MING 18,578,700 18,578,700
foreign stock
RMB-denominated
MEI JIANYING 2,604,203 2,604,203
ordinary stock
RMB-denominated
HU TIANGAO 2,376,052 2,376,052
ordinary stock
RMB-denominated
SOCIETE GENERALE 2,183,500 2,183,500
ordinary stock
DONGYANG HENGDIAN RMB-denominated
2,105,469 2,105,469
GUARANTY CO., LTD. ordinary stock
Domestically listed
ZHANG XIAOXIA 1,949,250 1,949,250
foreign stock
RMB-denominated
WANG XIAOXING 1,775,000 1,775,000
ordinary stock
Beijing State-Owned Capital Operation And Management Center owns 100% of Beijing
Related or acting-in-concert parties Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is a shareholder of the Company (a
among the shareholders above 42.06% holding). Apart from that, the Company does not know whether there are any other
related parties or acting-in-concert parties among the top 10 shareholders.
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
1. Shareholder Hu Tiangao holds 338,000 shares in the Company through his account of
Top 10 ordinary shareholders collateral securities for margin trading in Zheshang Securities Co., Ltd., and 2,038,052 shares
involved in securities margin trading in the Company through his ordinary securities account.
(if any) 2. Shareholder Wang Xiaoxing holds 1,775,000 shares in the Company through his account of
collateral securities for margin trading in Soochow Securities Co., Ltd.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Monetary capital as at 31 March 2019 declined compared to 31 December 2018, primarily driven by the
repayment of bank loans and the purchase of growth receipts with raised funds for cash management purposes
during Q1 2019.
2. The change in available-for-sale financial assets was primarily driven by the reclassification of certain
“available-for-sale financial assets” as “financial assets at fair value through profit or loss” into “investments in
other equity instruments” according to the new accounting standards governing financial instruments.
3. Other current assets as at 31 March 2019 rose compared to 31 December 2018, primarily driven by the growth
receipts purchased during Q1 2019 with raised funds for cash management purposes being undue at 31 March
2019.
4. Notes and accounts payable as at 31 March 2019 rose compared to 31 December 2018, primarily driven by the
purchases of raw materials during Q1 2019.
5. Payroll payable as at 31 March 2019 declined compared to 31 December 2018, primarily driven by the payment
of the 2018 annual performance remuneration during Q1 2019.
6. Finance costs went down in Q1 2019 compared to Q1 2018, primarily driven by a smaller interest expense due
to decreased bank loans during Q1 2019.
7. Net cash generated from operating activities went down in Q1 2019 compared to Q1 2018, primarily driven by
more purchases of raw materials during Q1 2019.
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
Summary of the significant event Disclosure date Index to the related announcement
1. On 20 February 2019, Proposal on Election of the Chairman of the
www.cninfo.com.cn: Announcement
8th Board of Directors of the Company was reviewed and approved at
on the Resignation of Chairman and
the 31th Meeting of the 8th Board of Directors by the Company. The 21 February 2019
the Election for New Chairman
Board of Directors of the Company agreed that Mr. Li Shaoling held
(Announcement No. 2019-002)
the post of the Chairman of the 8th Board of Directors. According to the
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
relevant regulations of Articles of Association, the Chairman is the
legal representative of the Company. At present, the Company has
completed the procedures for industrial and commercial registration of
changes in its legal representative, and obtained the business license or
enterprise legal person approved and renewed by Hainan
Administrative Bureau or Industry and Commerce.
Progress of any share repurchases:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as
explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Gain/lo
ss of Accumula
change tive Endin
Variet Symb Name Accounti Beginni Purchased in Gain/los
Initial s in fair changes in Sold in the g
y of ol of of ng ng the s in Account Capital
investm value fair value Reporting Reporti carryi
securi securi securi measurem carryin Reporting ng ing title source
ent cost in the recorded Period ng
ty ty ty ent model g value Period Period
Reporti into value
ng equities
Period
2040 GC00 Cost 3,142,600,00 3,142,600,00 322,286 Other Self-rai
Other 0.00
01 1 method 0.00 0.00 .47 assets sed
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
2040 GC00 Cost 70,200,000.0 70,200,000.0 96,465. Other Self-rai
Other 0.00
07 7 method 0 0 51 assets sed
3,212,800,00 3,212,800,00 418,751
Total 0.00 -- 0.00 0.00 0.00 0.00 -- --
0.00 0.00 .98
Disclosure date of
announcement on
Board’s consent for 21 February 2019
securities
investment
Disclosure date of
announcement on
shareholders’
N/A
meeting’s consent
for securities
investment (if any)
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Ending investment
Actual gain/loss
Ending as % of the
Type of derivative Start date End date in Reporting
investment Company’s ending net
Period
assets
Soybean hedging 1 January 2019 31 March 2019 3,172.23 1.38% -81.59
Agricultural product future
1 January 2019 31 March 2019 1,616 0.70% -271
contract
Agricultural product future
1 January 2019 31 March 2019 1,195 0.52% -33
contract
Agricultural product future
1 January 2019 31 March 2019 2 0.00% 208
contract
Agricultural product future
1 January 2019 31 March 2019 51 0.02% 0
contract
Total -- -- 6,036.23 2.62% -177.59
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of board
announcement approving 21 February 2019
derivative investment (if
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
any)
Disclosure date of general
meeting announcement
9 March 2019
approving derivative
investment (if any)
The Company’s conduction of hedging business is not aimed at speculation, but mainly to effectively
avoid the impact of raw material price fluctuation on the Company. However, there will be certain
risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures market
changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be correspondingly
brought because the futures trading adopts margin and marking-to-market system; 3. Internal control
risk: there may be risks due to imperfect internal control system for the high expertise and complexity
of futures trading; 4. Technical risk: there may be technical risks due to incomplete computer systems.
Analysis of risks and control
The Company adopts following risk control measures: 1. Matching the hedging business with the
measures associated with
Company’s production and operation so as to maximally reduce the price fluctuation risk; 2. The
derivative investments held
Company will reasonably dispatch its own funds for hedging business, strictly control the hedging
in Reporting Period
fund scale and reasonably plan and use margins; 3. Management System for Commodity Futures
(including but not limited to
Trading is formulated based on actual situation of the Company and pursuant to governing
market risk, liquidity risk,
stipulations of Guidelines for Standard Operation of Main board Companies Listed in Shenzhen Stock
credit risk, operational risk,
Exchange which have made clearly stipulations about the amount, variety scope, approval authority,
legal risk, etc.)
internal approval procedures, responsible departments and persons, information isolation measures,
internal risk report and related solution process, information disclosure, etc. regarding hedging
business. The Company will strictly control all sectors in accordance with Management System for
Commodity Futures Trading; 4. Establishing qualified systems for transaction, communication and
information services so as to guarantee the normal operation of the transaction system and smooth
proceeding of transactions. When a wrong order occurs, corresponding measures should be timely
taken to reduce losses.
Changes in market prices or
fair value of derivative
investments in Reporting
The value of the Company’s future contracts changed according to the contract prices declared by the
Period (fair value analysis
future exchange, which were broadly representative. And the fair value of the Company’s future
should include measurement
contracts was executed in strict compliance with the future exchange’s settlement methods.
method and related
assumptions and
parameters)
Major changes in
accounting policies and
specific accounting
principles adopted for N/A
derivative investments in
Reporting Period compared
to last reporting period
Opinion of independent After check, The Company carried out the business of futures hedging based on normal production
directors on derivative and management, relying on specific business. Under the premise of ensuring normal production and
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2019 (Summary)
investments and risk control management, the Company used futures hedging tools to avoid the adverse impacts on the Company’s
operation from the large price fluctuation of raw materials and products, which is not detrimental to
the interests of the Company and all other shareholders, especially minority shareholders. At the same
time, the Company formulated relevant systems, and specific operating instructions for the business
of futures hedging through strengthening internal control and implementing risk prevention measures.
It is agreed that the Company and its subsidiaries will continue to conduct futures hedging business
according to the relevant regulations.
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd.
27 April 2019
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