2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2018
Part I Important Notes
This Summary is based on the full text of the 2018 Semi-annual Report of Hainan Jingliang Holdings Co., Ltd.
(together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In
order for a full understanding of the Company’s operating results, financial condition and future development
plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary
on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All the Company’s Directors have attended the Board meeting for the review of this Report and its summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
This Summary has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Part II Key Corporate Information
1. Stock Profile
Stock name JLKG, JL-B Stock code 000505, 200505
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Zhao Yinhu
Jing Liang Building, 16 East Third Ring
Office address
Middle Road, Chaoyang District, Beijing
Tel. 010-51672029
E-mail address 593374748@qq.com
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for retrospective restatements:
Business merger under the same control.
H1 2017 Change (%)
H1 2018
Before Restated Restated
Operating revenue (RMB) 3,639,625,979.41 393,836,785.57 3,282,562,276.93 10.88%
Net profit attributable to the listed
59,918,995.68 17,226,146.52 59,669,131.85 0.42%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 57,359,036.51 18,603,896.70 18,603,896.70 208.32%
exceptional items (RMB)
Net cash generated from/used in operating
45,694,542.88 -69,730,210.02 -689,492,578.81 106.63%
activities (RMB)
Basic earnings per share (RMB/share) 0.09 0.04 0.09 0.00%
Diluted earnings per share (RMB/share) 0.09 0.04 0.09 0.00%
Weighted average return on net assets (%) 2.73% 23.37% 4.22% -1.49%
31 December 2017 Change (%)
30 June 2018
Before Restated Restated
Total assets (RMB) 6,334,431,733.31 6,082,383,851.23 6,082,383,851.23 4.14%
Net assets attributable to the listed
2,161,447,086.80 2,101,342,683.37 2,101,342,683.37 2.86%
company’s shareholders (RMB)
3. Shareholders and Their Shares at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders 37,499 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Pledged or frozen
Nature of Shareholding shares
Name of shareholder Number of shares Restricted shares
shareholder percentage
Status Shares
BEIJING GRAIN GROUP CO., State-owned legal
42.06% 288,439,561 164,877,598
LTD. person
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
BEIJING STATE-OWNED
State-owned legal
CAPITAL OPERATION AND 7.07% 48,510,460 48,510,460
person
MANAGEMENT CENTER
CHINA DEVELOPMENT State-owned legal
3.33% 22,828,451 22,828,451
BANK CAPITAL CO., LTD. person
GOLD BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND
MANAGEMENT CO.,
Other 3.33% 22,828,451 22,828,451
LTD.—GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT
FUND (L.P.)
Foreign natural
LI SHERYN ZHAN MING 3.14% 21,539,400 0
person
Domestic natural
MEI JIANYING 0.38% 2,604,203 0
person
Domestic
DONGYANG HENGDIAN
non-state-owned 0.32% 2,204,976 0
GUARANTY CO., LTD.
legal person
Domestic natural
ZHANG XIAOXIA 0.28% 1,949,250 0
person
Domestic natural
WANG XIAOXING 0.26% 1,808,000 0
person
Domestic natural
ZHONG YI 0.25% 1,728,283 0
person
Beijing State-Owned Capital Operation And Management Center owns 100%
holdings of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd.
Connected or acting-in-concert parties among
is a shareholder of the Company (a 42.06% holding). Apart from that, the
shareholders above
Company does not know whether there are any other related parties or
acting-in-concert parties among the top 10 shareholders.
1. Shareholder Wang Xiaoxing holds 1,808,000 shares in the Company
through his account of collateral securities for margin trading in Soochow
Securities Co., Ltd.
2. Shareholder Zhong Yi holds 1,728,283 shares in the Company through his
account of collateral securities for margin trading in Fortune Securities Co.,
Shareholders conducting margin trading (if any)
Ltd.
3. Shareholder Hu Tiangao holds 338,000 shares in the Company through his
account of collateral securities for margin trading and holds 1,192,252 shares
in the Company through his ordinary stock account in Zheshang Securities
Co., Ltd.
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
5. Numbers of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue
before the date of this Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
(I) Overall Performance
In face of a complicated and harsh market environment, as well as increasing competition in the first half of 2018,
the Company adhered to the strategy of pursuing progress amid stability. For this period, the Company recorded
operating revenue of RMB3,640 million, up 10.88% year-on-year; and profits of RMB109 million and net profit
attributable to the Company as the parent of RMB59.92 million, representing a 0.5% rise from a year ago. By
operating division, the Oil and Oilseed division generated operating revenue of RMB3,203 million (a 28.28%
year-on-year increase) and profits of RMB68.57 million (a 39.84% year-on-year increase); and the food
production division reported operating revenue of RMB419 million (a year-on-year growth of 10.66%) and profits
of RMB67.48 million (a 10.84% year-on-year expansion). Beijing Jingliang Food Co., Ltd., a swapped-in asset of
the Company, registered operating revenue of RMB3,640 million, expanding 22.99% year-on-year; profits of
RMB123 million, a 14.17% rise from a year ago; and net profits attributable to the company as the parent of
RMB73.54 million, rising 19.46% compared to the same period of last year.
(II) Performance of Oil and Oilseeds Division
Since this year, the United States has been keeping a tense relationship with the global trade. On March 22,
Donald Trump, the President of the United States signed a presidential memorandum on “The Intellectual
Property Infringement” of China (including increasing imported tariff which is worth of US$60 billion from
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
China), so in the early April, China announced a plan to impose tariffs on the soybeans and other products from
the United States. The trade disputes between China and the U.S is growing tenser. Jingliang Tianjin which is
affiliated Company is mainly responsible for oil pressing, and the purchase of the raw soybeans from Brazil. In
order to confront the impact of the Sino-US trade war, the oil and oilseeds division relying on five platforms takes
full advantages of the industrial chain. In the case of declining of the oil making industry, this division generated
RMB68.57 million, increasing 39.84% year-on-year. With the structure of small packaged oil products
continuously optimizing, the Company’s small package oil marketing enterprise Gu Chuan Oils has realized the
profits of RMB12.13 million in the Reporting Period, increasing 65.03% year-on-year, and the comprehensive
gross profit margin has reached 15.62%, which is a new high for the company. The oil and oilseed trading
business responded to the impact of the Sino-US trade war flexibly and effectively for the carefully studying and
evaluating of the market. In the Reporting Period, the profit of this business was RMB31.26 million, increasing
140.73% year-on-year.
(III) Performance of Food Production Division
In the first half of 2018, the food production division achieved a profit of RMB67.48 million, increasing 10.84%
year-on-year in the case of continuous influx of strategic competitors and the increased competition in the
terminal market, maintaining a steady development momentum. The snack business takes “one major two wings”
(one major: potato products, two wings: puffed food and cakes) as the strategic direction, adheres “differentiated
asymmetric competition strategy”, deepens the model of “professional manufacturing+ cultural creativity +
Internet”, and makes great efforts to the strategy of the quality goods and the upgrading products. During the
Reporting Period, this business realized operating revenue of RMB386 million, increasing 8.17%, and the profit
was RMB65.92 million, increasing 9.56%. While consolidating the KFC channel, the baking business actively
expanded retail channels, increased the layout of foreign companies and developed new products. During the
Reporting Period, this business achieved operating revenue of RMB34.55 million, increasing 18.2% year-on-year
and the profit realized was RMB1.56 million, up 119.72%.
(IV) Performance of Land Restoration Division
The 22nd and 24th meetings of the 8th Board of Directors reviewed and approved the Jiangsu Xinyi Yaowan
Town Project and the Tangshan Caofeidian Project. On January 10, the Company established Jingliang Rural
Complex Construction and Operation (Xinyi) Co., Ltd. together with Xinyi Yaowan Tourism Industrial Park
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Development Co., Ltd., Shizhu Tujia Autonomous County Yujinzhu Agricultural Partnership (General
Partnership), BGG Gold Buffalo Runying Equity Investment Fund (Limited Partnership). Jingliang Rural
Complex Construction and Operation (Xinyi) Co., Ltd., where the Company holds a stake of 45%, started the
Jiangsu Xinyi Yaowan Town project. On April 16th, the Company completed the capital increase in Jingliang
(Caofeidian) Agricultural Development Co., Ltd., holding a 51% stake. The Tangshan Caofeidian project was
launched by Jingliang (Caofeidian) Agricultural Development Co., Ltd. and the design bidding has been
completed. The design proposal passed the assessment of Tangshan Land Experts and will follow up. Promote
project construction, government acceptance and declaration of sales of farmland indicators.
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last
Accounting Period
□ Applicable √ Not applicable
No such changes.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
√ Applicable □ Not applicable
Two new subsidiaries, Jingliang Rural Complex Construction and Operation (Xinyi) Co., Ltd. and Jingliang
(Caofeidian) Agricultural Development Co., Ltd., have been added to the consolidation scope of the Reporting
Period.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Consolidated Balance Sheet
June 30st, 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Ending Balance Beginning Balance
Current assets:
Currency fund VI. 1 997,708,704.36 1,014,438,663.43
Financial assets that are measured at fair value
and whose changes are included in the current VI. 2 151,016,163.70 176,699,298.60
profit and loss
Derivative financial assets VI. 2
Notes receivable
Accounts receivable VI. 3 124,688,536.30 75,165,127.11
Prepayment VI. 4 1,024,213,762.34 912,843,489.70
Interest receivable VI. 5 2,486,224.44 2,657,591.11
Dividends receivable
Other receivables VI. 6 84,491,856.13 73,064,548.76
Inventory VI. 7 1,620,402,879.95 1,393,958,764.07
Held-for-sale assets
Non-current assets due within one year 26,000,000.00 51,000,000.00
Other current assets VI.8 120,423,422.45 165,867,238.70
Total Current Assets 4,151,431,549.67 3,865,694,721.48
Non-current assets:
Available-for-sale financial assets VI. 9 20,000,000.00 20,000,000.00
Held-to-maturity investment
Long-term receivables
Long-term equity investment VI. 10 181,521,226.84 174,589,701.74
Investment real estate VI. 11 34,201,977.22 35,008,852.62
Fixed assets VI. 12 1,307,005,344.62 1,333,410,146.38
Project under construction VI. 13 8,295,319.20 12,737,673.01
Engineering material
Disposal of fixed assets
Productive biological asset
Oil and gas assets
Intangible assets VI. 14 390,606,624.41 398,844,032.07
Development expenditure
Business reputation VI. 15 191,394,422.51 191,394,422.51
Long-term unamortized expenses VI. 16 33,966,862.42 33,247,595.28
Deferred income tax assets 16,008,406.42 14,179,072.07
Other non-current assets VI. 17 3,277,634.07
Total Non-Current Assets 2,183,000,183.64 2,216,689,129.75
Total Assets 6,334,431,733.31 6,082,383,851.23
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Consolidated Balance Sheet（Continued）
June 30st, 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Ending Balance Beginning Balance
Current liabilities:
Short-term borrowing VI. 19 1,997,563,754.51 2,007,171,362.73
Financial assets that are measured at fair value and
whose changes are included in the current profit and
loss
Derivative financial assets
Notes payable VI. 20 36,397,048.50 83,154,229.20
Accounts payable VI. 21 517,639,840.02 317,538,928.27
Account collected in advance VI. 22 435,944,894.64 212,124,147.38
Employee pay payable VI. 23 10,649,864.10 30,762,031.53
Tax payable VI. 24 24,816,384.90 36,855,139.18
Interest payable VI. 25 87,407,153.40 86,064,211.31
Dividends payable VI. 26 11,197,317.01 3,397,317.01
Other payables VI. 27 319,965,994.13 451,938,294.35
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities VI. 28 25,996,671.50 90,215,292.43
Total Current Liability 3,467,578,922.71 3,319,220,953.39
Non-current liability:
Long-term loan
Bonds payable
Including: Preferred shares
Perpetual capital securities
Long-term account payable 801,625.20 801,625.20
Long-term employee pay payable VI. 29 34,257,600.00 26,791,209.91
Special accounts payable
Anticipation liabilities
Deferred income VI. 30 78,116,092.49 78,961,972.67
Deferred income tax liabilities 62,159,221.91 56,185,676.15
Other non-current liabilities
Total Non-Current Liabilities 175,334,539.60 162,740,483.93
Total Liabilities 3,642,913,462.31 3,481,961,437.32
Stockholder's Equity
Capital stock VI. 31 685,790,364.00 685,790,364.00
Other equity instruments
Including: Preferred shares
Perpetual capital securities
Share Capital VI. 32 1,592,541,582.73 1,592,541,582.73
Minus: Treasury stock
Other comprehensive incomes 185,407.75
Special reserves
Surplus reserves VI. 33 122,122,436.98 122,122,436.98
Undistributed profit VI. 34 -239,192,704.66 -299,111,700.34
The total shareholders' equity that owned by the parent
2,161,447,086.80 2,101,342,683.37
company
Minority stockholder's interest 530,071,184.20 499,079,730.54
Total Shareholder's Equity 2,691,518,271.00 2,600,422,413.91
Total Liabilities and Stockholders' Equity 6,334,431,733.31 6,082,383,851.23
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Consolidated Statement of Income
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Amount of Current Period Amount of Prior Period
I Gross Revenue 3,639,625,979.41 3,282,562,276.93
Including: Operating income VI. 35 3,639,625,979.41 3,282,562,276.93
II Total Operating Cost 3,560,386,950.24 3,157,274,295.32
Including: Operating cost VI. 35 3,335,328,124.32 2,908,282,336.30
Taxes and surcharges VI. 36 14,312,146.36 26,067,303.45
Selling expense VI. 37 91,626,009.36 93,023,609.48
Administration expense VI. 38 84,098,773.10 123,478,822.43
Financial expense VI. 39 35,504,316.84 11,660,856.31
Assets impairment loss VI. 40 -482,419.74 -5,238,632.65
Plus: Fair value variable income (the loss shall be filled in with "-") VI. 41 13,890,967.44 -8,753,227.45
Income from investment (the loss shall be filled in with "-") VI. 42 10,912,613.02 9,498,909.30
Including: the investment income of joint venture and cooperative enterprise
Asset disposal income (the loss shall be filled in with "-") -188,288.18 48,902.93
Other incomes 749,863.20 749863.20
III Operating Profit（the loss shall be filled in with "-"） 104,042,609.63 126,033,663.46
Plus: Non-business income VI. 43 14,564,851.32 8,802,291.40
Minus: Non-business expenditure VI. 44 9,620,172.31 3,539,484.80
IV Total Profit（the total loss shall be filled in with "-"） 109,548,923.66 131,345,732.99
Minus: Income tax expense VI. 45 34,990,271.41 31,427,816.24
V Net Profit （the net loss shall be filled in with "-"） 74,558,652.25 99,917,916.75
i Classification according to the Business Continuity:
1. Continuous operating net profit (the net loss shall be filled in with "-") 74,558,652.25 99,917,916.75
2. Discontinued operating net profit (the net loss shall be filled in with "-")
i i Classification according to the Attribution of the Ownership:
1. Minority interest income (the net loss shall be filled in with "-") 14,639,656.57 40,248,784.90
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
2. The net profit that attributed to the parent company's shareholders (the net loss shall be filled in with "-") 59,918,995.68 59,669,131.85
VI After-Tax Net Amount of Other Comprehensive Incomes 185,407.75
The after-tax net amount of other comprehensive incomes that attributed to the shareholders of the parent company 185,407.75
i Other comprehensive incomes that cannot be reclassified into the profit and loss
1. Remeasure the variations in net liabilities or net assets of a defined benefit plan
2. The share of other comprehensive incomes that can not be reclassified into the profit and loss by the units of
investment under the equity method
ii Other comprehensive incomes that will be reclassified into the profit and loss 185,407.75
1. The share of other comprehensive incomes that will be reclassified into the profit and loss by the units of investment
under the equity method
2. The variable profit and loss of fair value for available-for-sale financial assets
3. The reclassification of held-to-maturity investment is the profit or loss of available-for-sale financial assets
4. The effective part of the profit and loss of a cash-flow hedge
5. Translation difference of financial statements in foreign currency 185,407.75
6. Others
The after-tax net amount of other comprehensive incomes that attributed to minority shareholders
VII Total Comprehensive Income 74,744,060.00 99,917,916.75
Total comprehensive income that attributed to the shareholders of the parent company 60,104,403.43 59,669,131.85
Total comprehensive income that attributed to minority shareholders 14,639,656.57 40,248,784.90
VIII Earnings per Share:
i Basic EPS 0.09 0.09
ii Diluted EPS 0.09 0.09
On July 31. 2017, the company was combined under the control of the same subject. The net profit of the combined party before combination is RMB117,422,986.25, and the net profit
attributed to the parent company is RMB92,264,243.46.
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Consolidated Statement of Cash Flow
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Amount of Current Period Amount of Prior Period
I Cash Flow Generated During the Operating Activities:
Cash received from selling goods and providing services 4,489,940,451.03 3,352,482,912.28
Refund of tax and levies 7,687,755.45 6,319,336.87
Cash received relating to other operating activities VI. 46 923,614,901.14 236,261,498.44
Sub-Total of Cash Inflow from Operating Activities 5,421,243,107.62 3,595,063,747.59
Cash paid for purchasing goods and receiving labor services 4,152,499,375.46 3,455,099,491.41
Cash paid to employee and for employee 143,081,894.04 242,435,816.28
Tax payments 105,936,471.03 203,309,451.52
Other cash payments related to business activities VI. 46 974,030,824.21 383,711,567.19
Sub-Total of Cash Outflows from Operating Activities 5,375,548,564.74 4,284,556,326.40
Net Amount of Cash Flow Generated During the Operating Activities 45,694,542.88 -689,492,578.81
II Cash Flow Generated During the Investment Activities:
Cash received from recouping the capital outlay 1,327,344,274.34 618,925,983.12
Cash received from the returns on investments 21,669,125.78 17,862,136.76
Net cash received from the disposal of fixed assets, intangible assets and other long term assets
868,775.86 43,631,106.80
recovery
Net cash received from the disposal of subsidiaries and other business entities
Other cash received relating to investing activities VI. 46 118,000,000.00 95,300,139.13
Sub-Total of Cash Inflow from Investment Activities 1,467,882,175.98 775,719,365.81
Cash paid for the construction of fixed assets, intangible assets and other long term assets 30,521,020.31 16,262,083.92
Cash paid for investment 1,288,516,008.52 273,150,000.00
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Net cash received from the payment of subsidiaries and other business entities 7,954,985.00 208,604,900.00
Other cash paid relating to investment activities VI. 46 85,000,000.00 114,800,000.00
Sub-Total of Cash Outflows from Investment Activities 1,411,992,013.83 612,816,983.92
Net Amount of Cash Flow Generated During the Investment Activities 55,890,162.15 162,902,381.89
III Cash Flow Generated During the Financial Activities:
Cash received by absorbing investment 38,582,500.00 13,000,000.00
Including: Cash received by absorbing the investments of minority shareholders by the
subsidiaries.
Cash received from obtaining the loans 1,087,306,254.51 956,757,725.27
Cash received from the issuance of bonds
Other cash received relating to the financial activities VI. 46 51,529,000.00
Sub-Total of Cash Inflows from Financial Activities 1,125,888,754.51 1,021,286,725.27
Cash paid for the repayments of debts 1,094,921,869.63 377,534,732.20
Cash paid for the distribution of dividends, profits, or cash payments for interests 75,755,529.11 55,867,411.98
Including: the dividends and profits that paid by the subsidiaries to the minority shareholders
Other cash paid relating to the financial activities VI. 54 73,647,073.24 1,720,000.00
Sub-Total of Cash Outflows from Financial Activities 1,244,324,471.98 435,122,144.18
Net Amount of Cash Flow Generated During the Financial Activities -118,435,717.47 586,164,581.09
IV Effect of Exchange Rate Movement on Cash and Cash Equivalents 121,053.37 -313,249.84
V Net Additional Amount of Cash and Cash Equivalents -16,729,959.07 59,261,134.33
Plus: the balance of cash and cash equivalents in the beginning of the period 1,014,438,663.43 510,477,847.81
VI Balance of Cash and Cash Equivalents in the End of the Period 997,708,704.36 569,738,982.14
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Consolidated Statement of Changes in Stockholder's Equity
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Amount of Current Period
Stockholder's Equity that Attributed to the Parent Company
Items Other Equity Instruments Total
Minus: Other Preparation Minority
Special Earned Undistributed Stockholder's
Capital Stock Preferred Perpetual Capital Surplus Treasury Comprehensive for General Subtotal Equity
Equity
Capital Others Reserves Surplus Profit
Shares Stock Incomes Risk
Securities
I Balance at the
685,790,364.00 1,592,541,582.73 122,122,436.98 -299,111,700.34 2,101,342,683.37 499,079,730.54 2,600,422,413.91
End of Last Year
Plus: changes in
accounting policies
Prior period errors
correction
Business merger
under the same
control
Others
II Balance at the
Beginning of this 685,790,364.00 1,592,541,582.73 122,122,436.98 -299,111,700.34 2,101,342,683.37 499,079,730.54 2,600,422,413.91
Year
III Amount of
Changes in
Increase and
Decrease of this 185,407.75 59,918,995.68 60,104,403.43 30,991,453.66 91,095,857.09
Period (the
decrease shall be
filled in with "-")
i Total
Comprehensive 185,407.75 59,918,995.68 60,104,403.43 14,639,656.57 74,744,060.00
Income
ii Shareholder
Investment and 32,000,000.00 32,000,000.00
Capital Reduction
1. The common
stock invested by the 32,000,000.00 32,000,000.00
shareholders
2. The assets
invested by other
equity instrument
holders
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
3. The amount of
share-based payment
that included in the
stockholder's equity
4. Others
iii Distribution of
-15,648,202.91 -15,648,202.91
Profits
1. Withdraw surplus
reserves
2. Withdraw general
risk preparation
3. Distribution to
-15,648,202.91 -15,648,202.91
shareholders
4. Others
iv Internal
Transfer of
Shareholders'
Equity
1. Capital reserves
are transferred to
paid-in capital (or
capital stock)
2. Surplus reserves
are transferred to
paid-in capital (or
capital stock)
3. Surplus reserves
cover losses
4. Others
V Special Reserves
1. Withdrawal of
current period
2、Usage of current
period
VI Others
IV Balance at the
685,790,364.00 1,592,541,582.73 185,407.75 122,122,436.98 -239,192,704.66 2,161,447,086.80 530,071,184.20 2,691,518,271.00
End of this Year
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
14
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Consolidated Statement of Changes in Stockholder's Equity (Continued)
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Amount of Last Period
Stockholder's Equity that Attributed to the Parent Company
Other Equity Instruments
Items Total
Minus: Other Minority
Special Earned Undistributed Stockholder's
Capital Stock Perpetual Capital Surplus Treasury Comprehensive Subtotal Equity
Preferred Reserves Surplus Profit Equity
Capital Others Stock Incomes
Shares
Securities
I Balance at the End of
Last Year 426,745,404.00 1,381,337,052.83 122,122,436.98 -547,123,017.26 1,383,081,876.55 1,174,529,851.49 2,557,611,728.04
Plus: changes in
accounting policies
Prior period
errors correction
Business merger
under the same control -1,312,383,054.76 118,408,149.56 -1,193,974,905.20 -1,193,974,905.20
Others
II Balance at the
Beginning of this Year 426,745,404.00 68,953,998.07 122,122,436.98 -428,714,867.70 189,106,971.35 1,174,529,851.49 1,363,636,822.84
III Amount of Changes
in Increase and Decrease
of this Period (the
59,669,131.85 59,669,131.85 23,644,202.90 83,313,334.75
decrease shall be filled in
with "-")
i Total Comprehensive
Income 59,669,131.85 59,669,131.85 40,248,784.90 99,917,916.75
ii Shareholder
Investment and Capital
Reduction
1. The common stock
invested by the shareholders
2. The assets invested by
other equity instrument
holders
3. The amount of
share-based payment that
included in the stockholder's
equity
15
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
4. Others
iii Distribution of Profits
-16,604,582.00 -16,604,582.00
1. Withdraw surplus
reserves
2. Withdraw general risk
preparation
3. Distribution to
shareholders -16,604,582.00 -16,604,582.00
4. Others
iv Internal Transfer of
Shareholders' Equity
1. Capital reserves are
transferred to paid-in capital
(or capital stock)
2. Surplus reserves are
transferred to paid-in capital
(or capital stock)
3. Surplus reserves cover
losses
4. Others
V Special Reserves
1. Withdrawal of current
period
2、Usage of current period
VI Others
IV Balance at the End of
this Year 426,745,404.00 68,953,998.07 122,122,436.98 -369,045,735.85 248,776,103.20 1,198,174,054.39 1,446,950,157.59
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
16
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance Sheet
June 30st, 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Ending Balance Beginning Balance
Current assets:
Currency fund 16,693,650.05 15,360,177.32
Financial assets that are measured at fair value
and whose changes are included in the current
profit and loss
Derivative financial assets
Notes receivable
Accounts receivable XV.1 106,626.00 109,389.00
Prepayment 18,080.00
Interest receivable
Dividends receivable
Other receivables XV. 2 57,938,008.74 60,576,292.62
Inventory 4,824,035.45 4,824,035.45
Held-for-sale assets
Non-current assets due within one year
Other current assets 1,878,319.77 2,905,667.38
Total Current Assets 81,458,720.01 83,775,561.77
Non-current assets:
Available-for-sale financial assets 20,000,000.00 20,000,000.00
Held-to-maturity investment
Long-term receivables
Long-term equity investment XV. 3 2,375,639,964.05 2,336,639,964.05
Investment real estate 5,930,012.63 6,081,230.93
Fixed assets 3,433,605.52 3,589,144.87
Project under construction
Engineering material
Disposal of fixed assets
Productive biological asset
Oil and gas assets
Intangible assets
Development expenditure
Business reputation
Long-term unamortized expenses
Deferred income tax assets
Other non-current assets
Total Non-Current Assets 2,405,003,582.20 2,366,310,339.85
Total Assets 2,486,462,302.21 2,450,085,901.62
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
17
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance Sheet (Continued)
June 30st, 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Ending Balance Beginning Balance
Current liabilities:
Short-term borrowing
Financial assets that are measured at fair
value and whose changes are included in the
current profit and loss
Derivative financial assets
Notes payable
Accounts payable 2,482,949.70 2,482,949.70
Account collected in advance 38,896.41 38,896.41
Employee pay payable 339,428.29 2,017,684.57
Tax payable 950,785.89 2,557,993.95
Interest payable 78,475,805.80 82,468,756.03
Dividends payable 3,213,302.88 3,213,302.88
Other payables 420,958,272.68 363,827,970.43
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total Current Liability 506,459,441.65 456,607,553.97
Non-current liability:
Long-term loan
Bonds payable
Including: Preferred shares
Perpetual capital securities
Long-term account payable
Long-term employee pay payable
Special accounts payable
Anticipation liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total Non-Current Liabilities
Total Liabilities 506,459,441.65 456,607,553.97
Stockholder's Equity
Capital stock 685,790,364.00 685,790,364.00
Other equity instruments
Including: Preferred shares
Perpetual capital securities
Share capital 2,173,387,468.71 2,173,387,468.71
Minus: Treasury stock
Other comprehensive incomes
Special reserves
Surplus reserves 109,487,064.39 109,487,064.39
Undistributed profit -988,662,036.54 -975,186,549.45
Total Shareholder's Equity 1,980,002,860.56 1,993,478,347.65
Total Liabilities and Stockholders' Equity 2,486,462,302.21 2,450,085,901.62
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
18
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Statement of Income
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Amount of Current
Items Notes Amount of Prior Period
Period
I Operating Income XV. 4 2,857.14
Minus: Operating cost XV. 4 151,218.30 151,218.30
Taxes and surcharges 1,014,351.16 67,528.32
Selling expense
Administration expense 6,013,659.30 7,823,134.52
Financial expense 6,395,406.74 2,014,415.03
Assets impairment loss -99,248.41 -5,617,876.12
Plus: Fair value variable income (the loss shall be filled in with
"-")
Income from investment (the loss shall be filled in with "-") XV. 5 74,891,105.95
Including: the investment income of joint venture and cooperative
-928,894.05
enterprise
Asset disposal income (the loss shall be filled in with "-")
Other incomes
II Operating Profit（the loss shall be filled in with "-"） -13,475,387.09 70,455,543.04
Plus: Non-business income 920.00
Minus: Non-business expenditure 100.00 811,971.93
III Total Profit（the total loss shall be filled in with "-"） -13,475,487.09 69,644,491.11
Minus: Income tax expense
IV Net Profit （the net loss shall be filled in with "-"） -13,475,487.09 69,644,491.11
i Continuous operating net profit (the net loss shall be filled in with
-13,475,487.09 69,644,491.11
"-")
ii Discontinued operating net profit (the net loss shall be filled in
with "-")
V After-Tax Net Amount of Other Comprehensive Incomes
i Other comprehensive incomes that cannot be reclassified into the
profit and loss
1. Remeasure the variations in net liabilities or net assets of a
defined benefit plan
2. The share of other comprehensive incomes that can not be
reclassified into the profit and loss by the units of investment under
the equity method
ii Other comprehensive incomes that will be reclassified into the
profit and loss
1. The share of other comprehensive incomes that will be
reclassified into the profit and loss by the units of investment under
the equity method
2. The variable profit and loss of fair value for available-for-sale
financial assets
3. The reclassification of held-to-maturity investment is the profit
or loss of available-for-sale financial assets
4. The effective part of the profit and loss of a cash-flow hedge
5. Translation difference of financial statements in foreign
currency
6. Others
VI Total Comprehensive Income -13,475,487.09 69,644,491.11
Legal representative: Wang Chunli Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
19
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Statement of Cash Flow
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Items Notes Amount of Current Period Amount of Prior Period
I Cash Flow Generated During the Operating Activities:
Cash received from selling goods and providing services 750.00
Refund of tax and levies
7,478,871.23 15,082,818.77
Cash received relating to other operating activities
Sub-Total of Cash Inflow from Operating Activities 7,479,621.23 15,082,818.77
Cash paid for purchasing goods and receiving labor services
12,526.92
Cash paid to employee and for employee
5,523,002.62 2,803,476.91
Tax payments
5,608,734.95 26,529,602.12
Other cash payments related to business activities
12,218,236.66 5,574,741.83
Sub-Total of Cash Outflows from Operating Activities
23,362,501.15 34,907,820.86
Net Amount of Cash Flow Generated During the Operating Activities -15,882,879.92
-19,825,002.09
II Cash Flow Generated During the Investment Activities:
Cash received from recouping the capital outlay 10,000,000.00
Cash received from the returns on investments
Net cash received from the disposal of fixed assets, intangible assets
and other long term assets recovery -34,427.35 35,000,000.00
Other cash received relating to investing activities
49,136.10
Sub-Total of Cash Inflow from Investment Activities
-34,427.35 45,049,136.10
Cash paid for the construction of fixed assets, intangible assets and
other long term assets
Cash paid for investment 39,000,000.00
Other cash paid relating to investment activities
Sub-Total of Cash Outflows from Investment Activities
39,000,000.00
Net Amount of Cash Flow Generated During the Investment Activities -39,034,427.35
45,049,136.10
III Cash Flow Generated During the Financial Activities:
Cash received by absorbing investment
Cash received from obtaining the loans
75,900,000.00 29,000,000.00
Cash received from the issuance of bonds
Other cash received relating to the financial activities
Sub-Total of Cash Inflows from Financial Activities
75,900,000.00 29,000,000.00
Cash paid for the repayments of debts
16,000,000.00 78,049,598.52
Cash paid for the distribution of dividends, profits, or cash payments
for interests 3,649,220.00 1,659,125.50
Other cash paid relating to the financial activities 1,720,000.00
Sub-Total of Cash Outflows from Financial Activities
19,649,220.00 81,428,724.02
Net Amount of Cash Flow Generated During the Financial Activities
56,250,780.00 -52,428,724.02
IV Effect of Exchange Rate Movement on Cash and Cash Equivalents
V Net Additional Amount of Cash and Cash Equivalents 1,333,472.73 -27,204,590.01
Plus: the balance of cash and cash equivalents in the beginning of
the period 15,360,177.32 33,952,786.37
VI Balance of Cash and Cash Equivalents in the End of the Period
16,693,650.05 6,748,196.36
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
20
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Statement of Changes in Stockholder's Equity
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Amount of Current Period
Other Equity Instruments
Minus: Other
Items Perpetual Special Undistributed Total Stockholder's
Capital Stock Preferred Capital Surplus Treasury Comprehensive Earned Surplus
Capital Others Reserves Profit Equity
Shares Stock Incomes
Securities
I Balance at the End of Last Year 685,790,364.00 2,173,387,468.71 109,487,064.39 -975,186,549.45 1,993,478,347.65
Plus: changes in accounting policies
Prior period errors correction
Others
II Balance at the Beginning of this Year 685,790,364.00 2,173,387,468.71 109,487,064.39 -975,186,549.45 1,993,478,347.65
III Amount of Changes in Increase and
Decrease of this Period (the decrease shall be -13,475,487.09 -13,475,487.09
filled in with "-")
i Total Comprehensive Income -13,475,487.09 -13,475,487.09
ii Shareholder Investment and Capital
Reduction
1. The common stock invested by the shareholders
2. The assets invested by other equity instrument
holders
3. The amount of share-based payment that
included in the stockholder's equity
4. Others
iii Distribution of Profits
1. Withdraw surplus reserves
2. Withdraw general risk preparation
3. Distribution to shareholders
4. Others
iv Internal Transfer of Shareholders' Equity
1. Capital reserves are transferred to paid-in
capital (or capital stock)
2. Surplus reserves are transferred to paid-in
capital (or capital stock)
3. Surplus reserves cover losses
4. Others
V Special Reserves
1. Withdrawal of current period
2、Usage of current period
VI Others
IV Balance at the End of this Year 685,790,364.00 2,173,387,468.71 109,487,064.39 -988,662,036.54 1,980,002,860.56
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
21
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Statement of Changes in Stockholder's Equity (Continued)
Jan.-Jun. 2018
Preparation Unit: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB
Amount of Last Period
Other Equity Instruments
Items Minus: Other Total
Perpetual Special Undistributed
Capital Stock Preferred Capital Surplus Treasury Comprehensi Earned Surplus Stockholder's
Capital Others Reserves Profit
Shares Stock ve Incomes Equity
Securities
I Balance at the End of Last Year 426,745,404.00 546,201,098.01 109,487,064.39 -1,024,796,255.19 57,637,311.21
Plus: changes in accounting policies
Prior period errors correction
Others
II Balance at the Beginning of this Year 426,745,404.00 546,201,098.01 109,487,064.39 -1,024,796,255.19 57,637,311.21
III Amount of Changes in Increase and
Decrease of this Period (the decrease shall be 69,644,491.11 69,644,491.11
filled in with "-")
i Total Comprehensive Income 69,644,491.11 69,644,491.11
ii Shareholder Investment and Capital
Reduction
1. The common stock invested by the shareholders
2. The assets invested by other equity instrument
holders
3. The amount of share-based payment that
included in the stockholder's equity
4. Others
iii Distribution of Profits
1. Withdraw surplus reserves
2. Withdraw general risk preparation
3. Distribution to shareholders
4. Others
iv Internal Transfer of Shareholders' Equity
1. Capital reserves are transferred to paid-in
capital (or capital stock)
2. Surplus reserves are transferred to paid-in
capital (or capital stock)
3. Surplus reserves cover losses
4. Others
V Special Reserves
1. Withdrawal of current period
2、Usage of current period
VI Others
IV Balance at the End of this Year 426,745,404.00 546,201,098.01 109,487,064.39 -955,151,764.08 127,281,802.32
Legal representative: Wang Guofeng Principal in charge of accounting: Guan Ying Head of the accounting department:Liu Quanli
22
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Hainan Jingliang Holdings Co., Ltd.
Notes to June 30, 2018 Financial Statements
(Unless otherwise specified, the unit of amount is CNY)
I. Basic Situation of the Company
(I) Place of Registration, Organizational Form and Headquarters Address
Hainan Jingliang Holdings Co., Ltd. is a company limited by shares re-incorporated from Hainan Pearl River Industrial Development
Holdings Co., Ltd. on January 11, 1992 approved by Hainan Provincial People's Government Office (1992) No. 1 Letter and People's
Bank of China Hainan Branch (1992) No. 6 Document. When re-incorporated, the Company issued a total of 81,880,000 shares,
including 60,793,600 shares converted from the original company's net assets and 21,086,400 newly-issued shares, and the company
name was Hainan Pearl River Industrial Development Holdings Co., Ltd. The business license registration number of the Company
was 20128455-6, and the parent company Guangzhou Pearl River Industrial Development Holdings Co., Ltd. held 36,393,600 shares,
accounting for 44.45%. Approved by the People's Bank of China Securities Regulatory Office (1992) No. 83 Document, 21,086,400
additional shares were listed for trading on the Shenzhen Stock Exchange in December 1992. The industry involved is real estate.
On March 25, 1993, Hainan Shareholding System Experiment Leading Group Office (1993) No. 028 Letter and People's Bank of
China Shenzhen Special Economic Zone Branch (1993) No. 099 Reply, the Company increased its original share capital to
139,196,000 shares by allotting 5 shares and donating 2 shares per 10 shares. At the end of 1993, the controlling shareholder
Guangzhou Pearl River Industrial Development Holdings Co., Ltd. held 48,969,120 shares, accounting for 35.18%.
In 1994, it increased its original share capital to 278,392,000 shares by allotting 10 shares per 10 shares. The controlling shareholder
Guangzhou Pearl River Industrial Development Holdings Co., Ltd. held 97,938,240 shares, accounting for 35.18%.
In 1995, approved by Shenzhen Securities Office (1995) No. 45 and (1995) No. 12 Documents, 50,000,000 B shares was issued.
After the issuance of B shares, it increased its share capital to 377,650,800 shares by allotting 1.5 shares per 10 shares. The parent
company Guangzhou Pearl River Industrial Development Holdings Co., Ltd. held 112,628,976 shares, accounting for 29.82%.
In 1999, Guangzhou Pearl River Industrial Development Holdings Co., Ltd. transferred 112,628,976 shares to Beijing Wanfa Real
Estate Development Co., Ltd. After the equity transfer was completed in June 1999, Beijing Wanfa Real Estate Development Co., Ltd.
held 112,628,976 shares in the Company, accounting for 29.82% of the total number of shares in the Company and making it become
the controlling shareholder of the Company.
On January 10, 2000, the Company's name was changed to Hainan Pearl River Holdings Co., Ltd., and Industrial and Commercial
Administration Bureau of Hainan Province replaced the Business License for Legal Person.
On August 17, 2006, the Company implemented the split-share reform plan. The Company increased a total of 49,094,604 shares to
all shareholders by donating 1.3 shares per 10 shares. The original holders of non-tradable shares transferred the increased shares to
the holders of tradable A shares. Beijing Wanfa Real Estate Development Co., Ltd. paid a price to the holders of non-tradable shares
who did not express their opinions clearly for such shares. The total share capital was increased to 426,745,404 shares. The original
controlling shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698 shares, accounting for 25.31%. In 2007,
the holders of non-tradable shares repaid a price for 3,289,780 non-tradable shares. In 2009, the holders of non-tradable shares repaid
a price for 1,196,000 non-tradable shares.
On September 2, 2016, the original controlling shareholder Beijing Wanfa Real Estate Development Co., Ltd. transferred its
112,479,478 shares to Beijing Grain Group Co., Ltd.. After the equity transfer was completed in September 2016, Beijing Grain
Group Co., Ltd. held 112,479,478 shares in the Company, accounting for 26.36% of the total number of shares. In November 2016,
Beijing Grain Group Co., Ltd. decided to increase its shareholding to 123,561,963 shares through concentrated bidding in the
secondary market based on its confidence in the major assets reorganization targets and the Company's future development,
accounting for 28.95% of the total number of shares and making it become the largest shareholder of the Company.
The Company determined that July 31, 2017 was the delivery date of major assets according to the major assets reorganization plan
and the delivery agreement. On September 14, 2017, pursuant to the resolution of the Company's second extraordinary general
23
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
meeting of shareholders held on November 18, 2016 and the approval of (2017) No. 1391 Reply on the Issuance of Shares Made by
Hainan Pearl River Holdings Co., Ltd. to Beijing Grain Group Co., Ltd., etc. for Purchase of Assets and Raising of Supporting
Funds issued by the China Securities Regulatory Commission on July 28, 2017: 1) The Company issued 210,079,552 shares to the
original shareholders of Beijing Jingliang Food Co., Ltd. for purchase of assets on the basis of transaction price difference between
assets proposed to be placed in and out (the transaction price difference is 1,699.5436 million). The nominal value per share was
CNY 1.00 and the issue price was CNY 8.09 per share. 2) The Company's private placement of additional 48,965,408 shares to BGG
was the supporting funds raised from the purchase of assets through issuance of shares. The nominal value per share issued by the
Company was CNY 1.00 and the issue price was CNY 8.82 per share. After this issuance, the registered capital was CNY
685,790,364.00 and the share capital was CNY 685,790,364.00, accounting for 42.06% of the total number of shares and making it
became the Company's largest shareholder. Shareholder BGG subscribed its shares with monetary funds.
On March 10, 2018, the Company completed the procedures for business registration of changes such as company name, legal
representative, registered capital and business scope, and obtained the Business License for Legal Person approved and replaced by
the Industrial and Commercial Administration Bureau of Hainan Province. The relevant information after changes is listed as
follows:
Company Name: Hainan Jingliang Holdings Co., Ltd.
Unified Social Credit Code: 914600002012845568
Company Type: Company Limited by Shares (listed, state-controlled)
Registered Address: Floor 29, Dihao Building, Zhujiang Plaza, Binhai Avenue, Haikou City, China
Office Address: Floor 29, Dihao Building, Zhujiang Plaza, Binhai Avenue, Haikou City, China
Legal Representative: Wang Guofeng
Registered Capital: CNY 685,790,364
Date of Establishment: March 22, 1988
Business Period: from March 22, 1988 to September 20, 2025
The parent company is Beijing Grain Group Co., Ltd.
(II) Company's Business Nature and Major Business Activities
1. Business Scope
The industry where the Company is involved is manufacturing-agricultural and sideline food processing industry. Its business scope
mainly includes: production and sales of food, beverages, oils and fats, oil plants and their by-products, vegetable protein and its
products, organic fertilizers, microbial fertilizers, and agricultural fertilizers; land consolidation, soil rehabilitation; comprehensive
agricultural development, animal husbandry and aquaculture, production and sales of agricultural equipment; computer network
technology, investment in communications projects, research and development and application of high-tech products; investment and
consulting of environmental protection projects; animation, graphic design, goods and technology import and export trade; lease of
self-owned houses. (The general business items may be managed independently, and the licensed business items shall be managed
with the relevant permits or approval documents) (The projects requiring legal approval shall be subject to the approval by the
relevant department before the business activities are carried out).
2. Business Nature and Major Business Activities
The company and its subsidiaries are mainly engaged in the processing, production and sales of food, agricultural and sideline
products, oils and fats, oil plant and snack food.
3. Basic Organizational Structure
Company's basic organizational structure: The General Meeting of Shareholders is the Company's highest authority, the Board of
Directors is the executive body of the General Meeting of Shareholders, the Board of Supervisors is the Company's internal
supervisory body, and the General Manager is responsible for the Company's daily operations and management. The company has
24
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Board of Directors Office, Board of Supervisors Office, Comprehensive Affairs Department, Securities Affairs Department, Strategic
Investment Department, Finance Department (Settlement Center), Internal Risk Control Department, Human Resources Department,
Party Affairs Department and Discipline Inspection & Supervision Department.
On May 6, 2010, Hainan Pearl River Holdings Co., Ltd. Beijing Investment Advisory Branch was established, and its unified social
credit code was 91110107554875351W. Address: Room 5078, Building 3, No. 3, Xijing Road, Badachu Hi-Tech Park, Shijingshan
District, Beijing. Its business scope includes investment consulting, hotel investment and management; procurement and leasing of
construction equipment; sales of building materials, hardware and electrical equipment, furniture, plastics, daily necessities, leather
products, rubber products, feed, packaged seeds requiring no repacking, grains, beans, potatoes, flowers, grass and ornamental plants,
fertilizers, non-metallic ores, metal products, metallic ores and metal materials; import and export of goods; research and
development and application of high-tech products. ( “ 1. No funds can be publicly raised without the approval of the relevant
department; 2. No trading activities in securities products and financial derivatives can be publicly conducted; 3. No loans can be
granted; 4. No guarantees can be provided for other companies than the invested company; 5. The investor shall not be promised that
the investment principal will not be lost or the minimum income; The projects requiring legal approval shall be subject to the
approval by the relevant department before the business activities are carried out.)
On October 22, 2012, Hainan Pearl River Holdings Co., Ltd. Heilongjiang Branch was established, and its unified social credit code
was 91230110598492651P. Address: No. 34, Nongxiao Street, Xiangfang District, Harbin City. Business scope: industrial investment,
hotel investment and management, procurement and leasing of construction equipment, indoor and outdoor decoration, high-tech
project investment, computer network investment, investment in communications projects, development and application of high-tech
products and investment in environmental protection projects. (The projects requiring administrative licensing and approval shall be
operated with relevant permits) (The projects requiring legal approval shall be subject to the approval by the relevant department
before the business activities are carried out). On December 9, 2017, in order to optimize capital structure, reduce cost of operation
and management, and improve management efficiency, the Company reviewed and passed the Proposal on Cancellation of Hainan
Pearl River Holdings Co., Ltd. Heilongjiang Branch at the 22nd meeting of its 8th Board of Directors to agree to cancel its
Heilongjiang Branch and authorize its management to handle related cancellation procedures. As of the date of this report, the
Company has completed related procedures for business cancellation of Heilongjiang Branch.
(III) Approval and Issuance of Financial Reports
This financial statement was approved and issued by the Board of Directors of the Company on August 15, 2018.
(IV) Scope of Consolidated Financial Statements
A total of 20 subsidiaries were included in the consolidation scope of the Company. For details, see VIII Equity in Other Entities in
the Notes.
II. Preparation Basis of Financial Statements
1. Preparation Basis
The Company's financial statements should be prepared based on the going-concern assumption and actual occurrence of transactions
and events in accordance with the Accounting Standards for Business Enterprises and their application guide and interpretation as
well as other relevant regulations promulgated by the Ministry of Finance (collectively referred to as Accounting Standards for
Business Enterprises). In addition, the Company also discloses relevant financial information in accordance with the Rules for
Disclosure, Preparation and Presentation of Information by Companies That Offer Securities Publicly No. 15 - General Provisions
on Financial Reports (revised in 2014) issued by the China Securities Regulatory Commission.
According to the relevant provisions of the Accounting Standards for Business Enterprises the Company’ accounting is based on the
accrual basis. Except for certain financial instruments, these financial statements are based on historical costs. Non-current assets
held for sale should be valued based on the lower between the fair value less estimated expenses and the original book value when
they meet the conditions for holding for sale. If the assets are impaired, corresponding provisions for impairment shall be made
according to relevant regulations.
25
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
2. Going Concern
The financial statements are presented on a going-concern basis, and the Company has the going-concern capability for at least 12
months from the end of the report period.
III. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statement prepared by the Company complies with the requirements of the Accounting Standards for Business
Enterprises, and reflect the Company's consolidation and the parent company's financial position as of June 30, 2018, the Company's
consolidation and the parent company's operating results, consolidation and cash flow from January to June 2018 and other relevant
information truly and completely.
IV. Important Accounting Policies and Accounting Estimates
1. Accounting Periods
The Company's accounting periods are divided into annual accounting periods and interim accounting periods. An interim accounting
period is a report period shorter than a complete fiscal year. The Company's fiscal year shall adopt the calendar year, that is, from
January 1 to December 31 every year.
2. Business Cycle
The Company uses 12 months as a business cycle and as a standard for the liquidity categorization of assets and liabilities.
3. Bookkeeping Base Currency
The Company uses Renminbi as the bookkeeping base currency.
The Company's overseas subsidiary, BGG (Singapore) International Trading Co., Ltd. determines the United States dollar as its
bookkeeping base currency according to the currency used in the main economic environment where it operates.
4. Accounting Treatment Methods for Business Combination under the Same Control and Not Under the Same Control
Business combination refers to a transaction or event in which two or more separate companies are combined to form a single
reporting entity. Business combination are divided into ones under the same control and ones not under the same control.
(1) Business combination under the same control
A business combination under the same control means that the participating companies are ultimately controlled by the same party or
parties before and after the business combination and such control is not temporary. In a business combination under the same control,
the party that obtains control over other participating companies on the combining date is the combining party, and the other
participating companies are the combined parties. The combining date refers to the date on which the combining party obtains control
over the combined party actually.
Assets and liabilities acquired by the combining party shall be measured at the book value of the combining party in the combined
party on the combining date. The difference in book value between the net assets obtained by the combining party and the
consideration paid for combination (or the total par value of issued shares shall be adjusted into the capital reserve (share premium);
if the capital reserve (share premium) is insufficient to offset it, it shall be adjusted into the retained earnings.
The direct expenses incurred by the combining party for business combination shall be recorded into the current profit and loss as
incurred.
(2) Business combination not under the same control
A business combination not under the same control means that the participating companies are not controlled by the same party or
parties before and after the business combination. In a business combination not under the same control, the party that obtains control
over other participating companies on the purchasing date is the purchasing party, and the other participating companies are the
purchased parties. The purchasing date refers to the date on which the purchasing party obtains control over the purchased party
actually.
For a business combination not under the same control, the combination cost includes the assets paid by the purchasing party on the
purchasing date to obtain control over the purchased party, the liabilities incurred or undertaken and the fair value of issued equity
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securities, intermediary fees incurred by the business combination for auditing, legal services, assessment and consulting as well as
other administrative expenses are recorded into the current profit and loss as incurred. The transaction cost of equity securities or
debt securities issued by the purchasing party as a consideration for combination is recorded into the initial recognition cost of equity
securities or debt securities. The contingent consideration involved is included into the combination cost based on its fair value at the
purchasing date. If the contingent consideration needs to be adjusted in case of any new or further evidence of existing circumstances
on the purchasing date within 12 months after the purchasing date, the consolidated goodwill shall be adjusted accordingly. The
combination cost incurred and the net identifiable assets obtained by the purchasing party in the combination shall be measured at the
fair value at the purchasing date. The excess of the combination cost over the fair value of net identifiable assets obtained by the
purchased party on the purchasing date shall be recognized as goodwill. If the combination cost is less than the fair value of net
identifiable assets obtained by the purchasing party in the combination, the fair value of net identifiable assets, liabilities and
contingent liabilities obtained by the purchasing party and the combination cost shall be reviewed first. If the combination cost is still
less than the fair value of net identifiable assets obtained by the purchasing party in the combination, the difference shall be recorded
into the current profit and loss.
If any deductible temporary differences obtained by the purchasing party from the purchased party are not recognized because they
do not meet the conditions for recognition of deferred income tax assets on the purchase date and if any new or further information
indicating that the relevant circumstances as of the purchasing date have already existed is obtained within 12 months after the
purchasing date and it is expected that the economic benefits brought by such deductible temporary differences can be achieved, they
shall be recognized as relevant deferred income tax assets, and the goodwill shall also be reduced. If the goodwill is insufficient to
offset, the differences shall be recognized as the current profit and loss; except for the above circumstances, the recognized deferred
income tax assets related to the business combination shall be recorded into the current profit and loss.
For a business combination not under the same control achieved through step-by-step implementation of multiple transactions, these
multiple transactions shall be determined for a “package deal” according to the Notice of the Ministry of Finance on Issuing No. 5
Interpretations on Accounting Standards for Business Enterprises ([2012] No. 19) and the judgment standards for "package deal" in
Article 51 of the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements (see IV, 5 (2) in the
Notes). In case of a "package deal", its accounting treatment shall be made according to the descriptions in the preceding paragraphs
of this section and IV, 13 Long-term Equity Investment. If it is not a "package deal", related accounting treatment shall be made
based on the distinction between individual financial statements and consolidated financial statements:
In the individual financial statements, the sum of book value of the equity investment held in the purchased party prior to the
purchasing date and new investment cost on the purchasing date shall be taken as the initial cost of such investment; where the equity
investment held in the purchased party prior to the purchasing date involves other comprehensive income, the other comprehensive
income related to the disposal of such investment shall be accounted on the same basis as that of direct disposal of relevant assets or
liabilities by the purchased party (that is, except for the corresponding changes accounted by the equity method and resulting from
re-measurement of net liabilities or net assets for defined benefit plans by the purchased party, the remainder shall be transferred into
the current investment income).
In the consolidated financial statements, the equity investment held in the purchased party prior to the purchasing date shall be
re-measured at the fair value of such equity on the purchasing date, and the difference between its fair value and its book value shall
be recorded into the current investment income; where the equity investment held in the purchased party prior to the purchasing date
involves other comprehensive income, the other comprehensive income related to the disposal of such investment shall be accounted
on the same basis as that of direct disposal of relevant assets or liabilities by the purchased party (that is, except for the corresponding
changes accounted by the equity method and resulting from re-measurement of net liabilities or net assets for defined benefit plans by
the purchased party, the remainder shall be transferred into the current investment income).
5. Preparation Basis of Consolidated Financial Statements
(1) Principle of determining the scope of consolidated financial statements
The scope of consolidated financial statements is determined on the basis of control. Control means that the Company has the power
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over the investee, gets variable return by participating in related activities of the investee and has the ability to influence the amount
of the return by its power over the investee. The scope of consolidation includes the Company and all its subsidiaries. Subsidiaries
are those entities controlled by the Company.
The Company will conduct a reassessment once the changes in relevant facts and circumstances have caused changes in the relevant
factors involved in the above definition of control.
(2) Preparation methods of consolidated financial statements
From the date of obtaining actual control of net assets and production and business decisions of its subsidiary, the Company begins to
include this subsidiary in the scope of consolidation; and the Company ceases to include it in the scope of consolidation from the date
of loss of actual control. For subsidiaries disposed, the operating results and cash flows before the disposal date have been
appropriately included into the consolidated income statement and the consolidated cash flow statement; for subsidiaries disposed
during the current period, the opening balance of the consolidated balance sheet is not be adjusted. For subsidiaries added by business
combination not under the same control, the operating results and cash flows after the purchasing date have been appropriately
included into the consolidated income statement and the consolidated cash flow statement, while the opening balance and comparison
of the consolidated balance sheet is not be adjusted. For subsidiaries added by business combination under the same control, the
operating results and cash flows from the beginning of the current period to the combining date have been appropriately included into
the consolidated income statement and the consolidated cash flow statement, while the comparison of the consolidated balance sheet
is adjusted.
If the accounting policies or accounting periods adopted by the subsidiaries are inconsistent with those adopted by the Company
when preparing the consolidated financial statements, necessary adjustments shall be made to the financial statements of the
subsidiaries in accordance with the Company's accounting policies and accounting periods. For subsidiaries acquired by business
combination not under the same control, their financial statements are adjusted based on the fair value of net identifiable assets on the
purchasing date.
All significant balances, transactions and unrealized profits within the Company shall be offset when the consolidated financial
statements are prepared.
The subsidiary's shareholders' equity and current net profit and loss not owned by the Company shall be separately presented as
Minority Equity and Minority Interest Income under shareholders' equity and net profit items in the consolidated financial statements.
The minority equity in the current net profit and loss of the subsidiary shall be presented as Minority Equity under the net profit item
in the consolidated income statement. If the subsidiary ’ s loss shared by minority shareholders exceeds its initial shareholders ’
equity shared by minority shareholders, the minority equity shall still be offset.
When the control over the original subsidiary is lost due to the disposal of part of the equity investment or other reasons, the
remaining equity shall be re-measured based on its fair value on the date of loss of control. The difference between the sum of
consideration obtained by disposal of the equity and fair value of the remaining equity and the original subsidiary's net assets that
would have been calculated at the original shareholding ratio from the purchasing date shall be included into the investment income
for the current period of loss of control. Other comprehensive income related to the original subsidiary's equity investment shall be
accounted on the same basis as that of direct disposal of relevant assets or liabilities by the purchased party as of the date of loss of
control (that is, except for the changes resulting from re-measurement of net liabilities or net assets for defined benefit plans by the
original subsidiary the remainder shall be transferred into the current investment income). Subsequently, the remaining equity shall
be measured in accordance with relevant regulations such as Accounting Standards for Business Enterprises No. 2 - Long-term
Equity Investment and Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments, and
for more details, see IV, 13 Long-term Equity Investment or IV, 9 Financial Instruments in the Notes.
If the Company disposes the equity investment in a subsidiary through multiple transactions until it loses control, it needs to
distinguish whether all these transactions through which the Company disposes the equity investment in the subsidiary until it loses
control belong to a package deal. Where the terms, conditions and economic impact of all transactions for disposal of the equity
investment in the subsidiary are consistent with one or more of the following circumstances, it usually indicates that all these
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transactions should be accounted as a package deal: ① These transactions are established at the same time or in consideration of
mutual influence; ② These transactions can achieve a complete business outcome as a whole ; ③ The occurrence of a transaction
depends on the occurrence of at least one other transaction; ④ A transaction alone is not economical, but when other transactions
are considered together, it is economical. If these transactions do not belong to a package deal, each of them should be accounted, as
the case may be, based on the applicable principles of Partial Disposal of Long-Term Equity Investment in the Subsidiary without
Loss of Control (for details, see IV, 13, (2) ④ in the Notes) and Loss of Control over the Original Subsidiary Due To Partial
Disposal of Equity Investment or Other Reasons (see the previous paragraph). If all these transactions through which the Company
disposes the equity investment in the subsidiary until it loses control belong to a package deal, they shall be accounted as a deal for
disposal of the equity investment in the subsidiary until the loss of control; however, the difference in share of the net assets of the
subsidiary corresponding to each disposal of investment and each disposal of consideration before the loss of control shall be
recognized as other comprehensive income in the consolidated financial statements, and shall be transferred into the current profit
and loss on the date of loss of control.
6. Classification of Joint Arrangements and Accounting Methods for Joint Operations
Joint Arrangement refers to an arrangement that is jointly controlled by two or more parties. The Company classifies joint
arrangements into joint operations and joint ventures based on the rights and commitments it has enjoyed in joint arrangements. Joint
Operation refers to a joint arrangement where the Company enjoys its relevant assets and bears its relevant liabilities. Joint Venture
refers to a joint arrangement where the Company only enjoys rights to its relevant net assets.
The Company ’ s investment in joint ventures shall be accounted by the equity method, and shall be treated for accounting in
accordance with the accounting policies described in IV, 13(2) ② Long-term Equity Investment Accounted by the Equity Method in
the Notes.
As a party to joint operations, the Company shall confirm the assets and liabilities that it holds or assumes alone, assets and liabilities
that that it holds or assumes jointly according to its share, income generated from sales of the joint operating products that it shares,
revenue generated from sales of the joint operations according to its share, expenses incurred by it alone and expenses incurred in the
joint operations based on its share.
When the Company, as a party to joint operations, invests or sells assets (these assets does not constitute a business, the same below)
to, or purchase assets from a joint operation, the Company shall only confirm the portion of profit and loss arising from this
transaction that belongs to other parties to such joint operation before such assets are sold to a third party. If such assets meet the
assets impairment loss stipulated in the Accounting Standards for Business Enterprises No. 8 - Asset Impairment, etc., where the
Company invests or sell assets to a joint operation, it shall fully confirm the loss; where the Company purchases assets from a joint
operation, it shall confirm the loss according to its share.
7. Determination Standards for Cash and Cash Equivalents
The Company's cash and cash equivalents include cash on hand, deposits that can be used for payment at any time and short-term
(usually due within three months from the purchase date) and highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of change in value.
8. Translation of Foreign Currency Transactions and Foreign Currency Statements
(1) Translation methods for foreign currency transactions
Any of the Company's foreign currency transaction shall be translated into its bookkeeping base currency at the time of initial
recognition at the spot exchange rate on the transaction date. However, any foreign currency exchange business or any transaction
involving foreign currency exchange of the Company shall be translated into its bookkeeping base currency at the actual exchange
rate.
(2) Translation methods for foreign currency monetary items and foreign currency non-monetary items
At the balance sheet date, foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. All
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resulting exchange differences, with an exception that the exchange differences arising from specific foreign currency borrowings
related to the purchase and construction of assets that meet the conditions for capitalization are treated based on the principle of
capitalization of borrowing costs and that the exchange differences arising from changes in book balances other than amortized costs
for available-for-sale foreign currency monetary items are included in other comprehensive income, shall be recorded into the current
profit and loss.
Non-monetary foreign currency items measured at historical cost shall be still measured at the bookkeeping base currency amount
translated at the spot exchange rate on the transaction date. Non-monetary foreign currency items measured at fair value shall be
translated at the spot exchange rate on the date when the fair value is determined. The difference between the translated bookkeeping
base currency amount and the original bookkeeping base currency amount shall be treated as fair value changes (including changes in
exchange rate) and recorded into the current profit and loss or recognized as other comprehensive income.
(3) Translation methods of foreign currency financial statements
In the preparation of consolidated financial statements involving foreign operations, if any foreign currency monetary item
constitutes a net investment in foreign operations in essence, the currency translation difference arising from changes in exchange
rate shall be recognized into other comprehensive income as“difference on translation of foreign currency financial statements”and
shall be recorded into the current profit and loss at the time of disposal of foreign operations.
The foreign currency financial statements of foreign operations shall be translated into RMB ones by the following methods: asset
and liability items in the balance sheet shall be translated at the spot exchange rate on the balance sheet date; except for
“ undistributed profits ” in the owner ’ s equity items, other items shall be translated at the spot exchange rate at the time of
occurrence; Income and expense items in the income statement shall be translated based on the transaction date. The undistributed
profits at the beginning of the year are the translated undistributed profit at the end of the previous year; the undistributed profits at
the end of the year are calculated and presented item by item according to the distribution of translated profits; the difference between
the asset items and the sum of liabilities items and shareholders' equity items after translation shall be recognized into the other
comprehensive income as difference on translation of foreign currency financial statements. When foreign operations are disposed
and the control over them is lost, the differences on translation of foreign currency financial statements related to the foreign
operations that are presented under the shareholders' equity items in the balance sheet shall be transferred into the current profit and
loss, either in whole or in proportion to the disposal of such foreign operations.
Foreign currency cash flows and cash flows of overseas subsidiaries shall be translated at the current average exchange rate on the
date of occurrence of cash flows. The impact of changes in exchange rate on cash shall be treated as a reconciling item and presented
separately in the cash flow statement.
The opening balance and actual amount in the previous period shall be presented at the translated amount of financial statements for
the previous period.
When the control over foreign operations is lost due to disposal of the entire owner’s equity of the Company in foreign operations,
disposal of part of the equity investment or other reasons, the differences on translation of foreign currency financial statements
related to the foreign operations that are presented under the shareholders' equity items in the balance sheet and assigned to the parent
company shall be transferred into the current profit and loss.
When the disposal of part of the equity investment or other reasons result in a reduction in the proportion of the equity in foreign
operations without loss of control over foreign operations, the difference on translation of foreign currency financial statements
related to the disposed foreign operations will be attributed to the minority equity and will not be transferred into the current profit
and loss. When disposing partial equity in overseas operations as associated enterprises or joint ventures, the differences on
translation of foreign currency financial statements related to the foreign operations shall be transferred into the current profit and
loss in proportion to the disposal of such foreign operations.
9. Financial Instruments
When the Company becomes a party to a financial instrument contract, it recognizes a financial asset or financial liability. Financial
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assets and liabilities are measured at fair value at the time of initial recognition. For financial assets and liabilities that are measured
at fair value and whose changes are recorded into the current profit and loss, relevant transaction costs are directly recorded into the
current profit and loss; for other financial assets and liabilities, relevant transaction costs are recorded in the initial recognition
amount.
(1) Determination methods for financial assets and liabilities
Fair value refers to the price that a market participant needs to pay for selling an asset or transferring a liability in an orderly
transaction occurring on the measurement date. The Company measures the fair values of financial assets and financial liabilities at
the prices in major markets. In the absence of major markets, the fair values of financial assets and financial liabilities are measured
at the prices in most favorable markets by using applicable valuation techniques supported by sufficient available data and other
information. Input values used in fair value measurement are divided into three levels, that is, first-level input values are the
unadjusted prices quoted in the active market for the same assets or liabilities that can be obtained on the measurement date;
second-level input values are the directly or indirectly observable ones of the relevant assets or liabilities in addition to first-level
input values; third-level input values are the unobservable ones of the relevant assets or liabilities. The Company prefers to use the
first-level input values, and finally use the third-level input values. The level of a fair value measurement result is determined by the
lowest level of the input value that is of great significance to the overall fair value measurement.
(2) Classification, recognition and measurement of financial assets
The regular purchase and sale of financial assets shall be recognized for accounting and derecognition on the transaction date basis.
Financial assets are divided into financial assets that are measured at fair value and whose changes are recorded into the current profit
and loss, held-to-maturity investments, loans and receivables and available-for-sale financial assets.
① Financial assets that are measured at fair value and whose changes are recorded into the current profit and loss
They include trading financial assets and designated financial assets that are measured at fair value and whose changes are recorded
into the current profit and loss.
Trading financial assets refer to those financial assets that meet one of the following conditions: A. the purpose of obtaining such
financial asset is for sale in the short term; B. as part of an identifiable financial instrument portfolio that is subject to centralized
management, and there is objective evidence to prove that the Company has recently managed the portfolio by using a short-term
profit method; C. derivatives excluding those derivatives designated as effective hedging instruments, derivatives under financial
guarantee contracts and derivatives that are linked to investments in equity instruments that are not quoted in an active market and
whose fair value cannot be reliably measured and must be settled by delivery of these equity instruments.
Only when one of the following conditions is met, financial assets can be designated as financial assets that are measured at fair
value and whose changes are recorded into the current profit and loss at the time of initial recognition: A. this designation can
eliminate or significantly reduce the inconsistencies in the recognition or measurement of relevant gains or losses due to the different
measurement basis for financial assets; B. the formal written documents on risk management or investment strategies have stated that
the portfolio of financial assets or the portfolio of financial assets and financial liabilities in which the financial assets are located is
managed, evaluated and reported to key management personnel on a fair value basis;
Financial assets that are measured at fair value and whose changes are recorded into the current profit and loss are subsequently
measured at fair value. Gains or losses arising from fair value changes and any dividends and interest income related to such financial
assets shall be recorded into the current profit or loss.
② Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturity dates, fixed or determinable recovery costs
and that the Company has clear intention and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost by the effective interest method. Gains or losses arising
from derecognition, impairment and amortization are recorded into the current profit and loss.
Effective interest method refers to the calculation method for the amortized cost and the interest income or expenses for each period
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
according to the actual interest rate of a financial asset or financial liability (including a group of financial assets or financial
liabilities). Actual interest rate refers to the interest rate used for translation of future cash flow of a financial asset or financial
liability during the expected duration or applicable shorter period into its current book value.
When calculating the actual interest rate, the Company may estimate the future cash flow on the basis of all contract terms of a
financial asset or financial liability (regardless of future credit losses), in consideration of all fees, transaction costs and discounts or
premiums paid or received by the parties to a financial asset or liability contract as part of the actual interest rate.
③ Loans and receivables
Loans and receivables refer to non-derivative financial assets that are not quoted in an active market and have fixed or determinable
recovery costs. The financial assets classified by the Company as loans and receivables include notes receivable, accounts receivable,
interest receivable, dividends receivable and other receivables.
Loans and receivables are subsequently measured at amortized cost by the effective interest method. Gains or losses arising from
derecognition, impairment and amortization are recorded into the current profit and loss.
④ Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets designated as available for sale at the time of initial
recognition and other financial assets other than those that are measured at fair value and whose changes are recorded into the current
profit and loss, loans and receivables and held-to-maturity investments.
The final cost of available-for-sale debt instrument investment is determined by the amortized cost method, which is equal to the
amount of the initial recognition amount minus the repaid principal, plus or minus the accumulated amount formed by amortization
of the difference between initial recognition amount and due amount by the effective interest method, deducting the amount of
impairment loss that has occurred. The final cost of an available-for-sale investment in equity instruments is its initial acquisition
cost.
Available-for-sale financial assets are subsequently measured at fair value. Gains or losses arising from fair value changes, except
that impairment losses and currency translation differences of foreign currency monetary financial assets related to amortized costs
shall be recorded into the current profit and loss, are recognized into other comprehensive income, and then are transferred and
recorded into the current profit and loss when these available-for-sale financial assets are derecognized. However, investments in
equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured and derivative financial
assets that are linked to these equity instruments and must be settled by delivery of these equity instruments are subsequently
measured at cost.
The interest obtained during the period when the available-for-sale financial assets are held and the cash dividends declared by the
investee shall be included into the investment income.
(3) Impairment of financial assets
The Company may check the book values of financial assets other than financial assets that are measured at fair value and whose
changes are recorded into the current profit and loss at each balance sheet date. If there is objective evidence to prove that these
financial assets are impaired, the Company should make provisions for impairment.
The Company conducts separate impairment tests on financial assets of individual significant amount, and performs impairment tests
for financial assets of no individual significant amount separately or in a portfolio of financial assets with similar credit risk
characteristics. Financial assets that have not been impaired shall be included in the portfolio of financial assets with similar credit
risk characteristics for individual impairment tests whether they have individual significant amounts or not. Financial assets that have
been individually recognized for impairment losses shall not be included in the portfolio of financial assets with similar credit risk
characteristics for impairment tests.
① Impairment of held-to-maturity investments, loans and receivables
The book values of financial assets measured at cost or amortized cost are written down to the present values of estimated future cash
flows. The write-down amount is recognized as impairment loss and included into the current profit and loss. After the Company
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
recognizes the impairment loss on a financial asset, if there is objective evidence to prove that the value of such financial asset has
been restored and is objectively related to the matters occurring after the loss is recognized, the previously recognized impairment
loss will be reversed. The book value of such financial asset after the reverse shall not exceed its amortized cost at the reverse date
under the assumption that no provision for impairment is made.
② Impairment of available-for-sale financial assets
When there are comprehensive related factors to prove that the decline in the fair value of an available-for-sale investment in equity
instruments is serious or other-than-temporary, it indicates that such available-for-sale investment in equity instruments has been
impaired. Among them, “serious decline” refers to the cumulative decline in fair value by over 20%; “other-than-temporary
decline” refers to the continuous decline in fair value for more than 12 months. The basis for determining the period of continuous
decline is:
a. Serious financial difficulties occurring to the issuer or the debtor;
b. The debtor violates the terms of the contract, such as default or overdue payment of interest or principal;
c. The creditor makes concessions to the debtor who has financial difficulties due to economic or legal considerations;
d. The debtor is likely to close down or perform other financial restructuring;
e. Due to the significant financial difficulties of the issuer, the financial assets cannot continue to be traded in an active market;
f. It is impossible to identify whether the cash flow of an asset in a group of financial assets has been reduced, but based on an overall
assessment of the open data, it is found that the estimated future cash flows of this group of financial assets have been reduced and
measurable since the initial recognition. For examples, the debtor ’ s ability to pay for this group of financial assets deteriorates
gradually, or the unemployment rate in the country or region where the debtor is located increases, the price of the collateral in its
area drops significantly, and the industry where it belongs is in recession;
g. There are major adverse changes in the technology, market or legal environment where the issuer of such equity instrument
operates, so that the equity instrument investor may not be able to recover the investment cost;
h. The fair value of such investment in equity instruments has suffered a serious or other-than-temporary decline;
i. Other objective evidence proving that the financial asset has been impaired:
When an available-for-sale financial asset is impaired, the accumulated loss that has been originally recorded into other
comprehensive income due to a decline in fair value shall be transferred and recorded into the current profit and loss. The
accumulated loss transferred is equal to the amount of the initial acquisition cost of such asset deducting the recovered principal and
amortized amount, the current fair value and the impairment loss that had been included into the profit and loss.
After the Company recognizes an impairment loss, if there is objective evidence to prove that the value of such financial asset has
been restored and is objectively related to the matters occurring after the loss is recognized, the previously recognized impairment
loss will be reversed, and the impairment loss of the available-for-sale investment in equity instruments will be reversed and
recognized as other comprehensive income, and the impairment loss of available-for-sale debt instrument will be reversed and
recorded into the current profit and loss.
The impairment losses of investments in equity instruments that are not quoted in an active market and whose fair value cannot be
reliably measured or derivative financial assets that are linked to these equity instruments and must be settled by delivery of these
equity instruments are not reversed.
(4) Recognition basis and measurement methods for transfer of financial assets
A financial asset that meets one of the following conditions is derecognized: ① the contractual right to receive the cash flow of such
financial asset is terminated; ② this financial asset has been transferred, and almost all the risks and rewards of its ownership are
transferred to the transferee; ③ this financial asset has been transferred. Although the Company neither transfers nor retains almost
all the risks and rewards of ownership of this financial asset, it has given up control of it.
If the Company neither transfers nor retains almost all the risks and rewards of ownership of a financial asset, and does not give up
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
control of it, it shall recognize the relevant financial asset in accordance with the degree of continuous involvement in the transferred
financial asset, and shall recognize the relevant liability accordingly. The degree of continuous involvement in the transferred
financial asset refers to the level of risk that the Company faces when the value of such financial asset changes.
If the overall transfer of a financial asset meets the conditions for derecognition, the difference between the book value of such
transferred financial asset and the sum of consideration received due to the transfer and cumulated amount of fair value changes
originally recorded into other comprehensive income shall be recorded into the current profit and loss.
If the partial transfer of a financial asset meets the conditions for derecognition, the book value of such transferred financial asset
shall be apportioned between its derecognized part and recognized part according to their relative fair values, and the difference
between the sum of consideration received due to the transfer and accumulated amount of fair value changes that have been
originally recorded into other comprehensive income and shall be apportioned to the derecognized part and the aforesaid book value
is recorded into the current profit and loss.
If the Company transfers any financial asset sold with recourse or its own financial asset with endorsement, it must determine
whether almost all the risks and rewards of ownership of such financial asset have been transferred. If almost all the risks and
rewards of ownership of such financial asset has been transferred to the transferee, the financial asset is derecognized; if all the risks
and rewards of ownership of such financial asset are retained, the financial asset is not derecognized; If all the risks and rewards of
ownership of such financial asset are neither transferred nor retained, it shall continue to determine whether the Company retains
control over such asset, and shall conduct accounting treatment based on the principles described in the preceding paragraphs.
(5) Classification and measurement of financial liabilities
Financial liabilities are divided into financial liabilities that are measured at fair value and whose changes are recorded into the
current profit and loss and other financial liabilities. Financial liabilities are measured at fair value at the time of initial recognition.
For financial liabilities that are measured at fair value and whose changes are recorded into the current profit and loss, relevant
transaction costs are directly recorded into the current profit and loss; for other financial liabilities, relevant transaction costs are
recorded in the initial recognition amount.
① Financial liabilities that are measured at fair value and whose changes are recorded into the current profit and loss
The classification conditions for trading financial liabilities and those financial liabilities that are designated to be measured at fair
value at initial recognition and whose changes are recorded into the current profit and loss and for trading financial assets and those
financial assets that are designated to be measured at fair value at initial recognition and whose changes are recorded into the current
profit and loss are consistent.
Financial liabilities that are measured at fair value and whose changes are recorded into the current profit and loss are subsequently
measured at fair value. Gains or losses arising from fair value changes and any dividends and interest income related to such financial
liabilities shall be recorded into the current profit or loss.
② Other financial liabilities
The derivative financial assets that are linked to the investments in equity instruments that are not quoted in an active market and
whose fair value cannot be reliably measured and must be settled by delivery of these equity instruments are subsequently measured
at cost. Other financial liabilities are subsequently measured at amortized cost by the effective interest method. Gains or losses
arising from derecognition or amortization will be recorded into the current profit and loss.
③ Financial guarantee contracts and loan commitments
Any financial guarantee contract not for a financial liability that is measured at fair value and whose changes are recorded into the
current profit and loss or any commitment not for a loan at an interest rate which is lower than the market interest rate, that is
measured at fair value and whose changes are recorded into the profit and loss, shall be initially recognized at fair value, and shall be
subsequently measured at the higher between the amount recognized in accordance with the Accounting Standards for Business
Enterprises No. 13 Contingencies and the initial recognition amount deducting the accumulated amortization amount determined in
accordance with the principles of the Accounting Standards for Business Enterprises No. 14 - Revenues.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
(6) Derecognition of financial liabilities
If all or part of the current obligations of a financial liability has been relieved, all or part of such financial liability shall be
derecognized. When the Company (the debtor) and its creditor enter into an agreement to replace the existing financial liabilities with
new ones and there are substantial differences in terms between the existing financial liabilities and new ones, the existing financial
liabilities should be derecognized and new ones shall be recognized at the same time.
If a financial liability is derecognized in whole or in part, the difference between the book value of the derecognized part and the
consideration paid (including non-cash assets transferred out or new financial liabilities assumed) should be recorded into the current
profit and loss.
(7) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the date of signing of the relevant contract, and are subsequently measured at fair
value. Except for derivatives that are designated as highly effective hedging instruments and that any gains or losses arising from
their fair value changes are recognized and recorded into the profit and loss according to the nature of hedging relationship and the
requirements of hedge accounting, the fair value changes of other derivatives are recorded into the current profit and loss
For any hybrid instruments containing embedded derivatives not designed as financial assets or financial liabilities that are measured
at fair value and whose changes are recorded into the current profit and loss, there is no close relationship between these embedded
derivatives and their master contracts in terms of economic characteristics and risks. Moreover, for separately existing instruments as
with embedded derivatives and in accordance with the definition of derivatives, the embedded derivatives are split from the hybrid
instruments and treated as separate derivative financial instruments. If it is not possible to measure the embedded derivatives
separately at the time of acquisition or on the subsequent balance sheet date, the entire hybrid instrument shall be designated as a
financial asset or financial liability that is measured at its fair value and whose changes are charged to profit or loss for the current
period.
(8) Offset of financial assets and financial liabilities
When the Company has the statutory right to offset a recognized financial asset and a recognized financial liability, is currently able
to implement such statutory right and plans to conduct netting settlement or realization of such financial asset and liquidation of such
financial liability, such financial asset and financial liability shall be presented in the balance sheet at the amount after offset by each
other. In addition, financial assets and financial liabilities shall be separately presented in the balance sheet and not be offset by each
other.
(9) Equity instruments
Equity instruments refer to contracts that demonstrate the ownership of the Company's remaining equity in the assets deducting all
liabilities. The Company's issuance (including refinancing), repurchase, sales or cancellation of an equity instrument shall be treated
as changes in equity. The Company does not recognize the fair value changes of any equity instrument. Transaction costs related to
equity transactions are deducted from equity.
The Company conducts various allocations to holders of equity instruments (excluding stock dividends) to reduce shareholders'
equity. The Company does not recognize the amount of fair value changes of any equity instrument.
10. Receivables
The Company regards the following conditions as the confirmation standard for the bad debt losses of receivables: the cancellation of
debtors, bankruptcy, insolvency, inability to pay off debts, serious cash flow shortages, serious natural disasters, etc., leading to
production suspension and failure to pay off debts for a foreseeable time; The overdue debt-units have not fulfilled their debt-service
obligations for over 5 years; other solid evidence shows that it is unlikely that they will indeed be recoverable or recoverable.
The allowance method is adopted for the possible bad debt losses, and the impairment test is conducted at the end of the year either
by itself or in combination, and provision for bad debts is accrued and recorded in the current profit and loss. However, receivables
(including dividends receivable) between the internal units of the Group, public maintenance funds and house sale funds deposited in
the housing fund management center, deposit deposits and margin deposits, and backup deposits formed by employee borrowings of
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
the unit, etc. shall not be included into bad debts. For those receivables with conclusive evidence that they cannot be recovered, they
will be written off as bad-debt losses after being approved by the company according to the prescribed procedures, and the bad-debt
provisions drawn off will be written off.
1. Individual accounts receivable with significant amount and bad debt provision
Receivables with a single amount exceeding 10 million yuan or a single amount
Judgment basis or amount standard of
exceeding 5% of the total amount of the relevant accounts are considered as significant
single item amount
receivables
Severe single amount and withdrawal Provision for bad debts based on the difference between the present value of its future
method for single provision for bad debts cash flow and its book value
2. Bad debt provision accounts receivable by portfolio
Basis to determine the portfolio
The aging of accounts receivable is divided into portfolio
Account aging portfolio
according to credit risk characteristics
Receivables (including dividends receivable) between the ultimate According to relationship with receivables and transaction
controlling party and its subordinate units partners
Depositing public maintenance funds and house sales funds from the According to the nature of receivables
Housing Fund Management Center
Deposit/Margin Portfolio According to the nature of receivables
The loan balance formed by the employee’s borrowing According to the affiliation of the accounts receivable with
the transaction object
Withdrawal method for provision for bad debts by portfolio
Account aging portfolio Aggregate bad debt provision according to account age
analysis
Receivables (including dividends receivable) between the ultimate
No bad debts
controlling party and its subordinate units
Depositing public maintenance funds and house sales funds from the
No bad debts
Housing Fund Management Center
Deposit/Margin Portfolio No bad debts
The loan balance formed by the employee’s borrowing No bad debts
(1) The proportion of bad debt provisions for accounts receivable using aging analysis method is as follows:
Account Age Accounts receivable ratio (%) Other receivable ratio (%)
Within the credit period 0 0
Within 1 year (credit period to 1 year) 2 2
1-2 years 5 5
2-3 years 20 20
3-4 years 50 50
4-5 years 80 80
More than 5 years 100 100
(2) The proportion of bad debt provisions for accounts receivable using other methods:
Portfolio name Bad debt provision ratio (%)
Receivables (including dividends receivable) between the ultimate No bad debts
controlling party and its subordinate units
Depositing public maintenance funds and house sales funds from the No bad debts
Housing Fund Management Center
Deposit/Margin Portfolio No bad debts
The loan balance formed by the employee’s borrowing No bad debts
3. Receivables with insignificant single amounts but with separate provision for bad debts
Reason for single provision for bad Individual accounts with insignificant amounts and provision for bad debts according to
debts portfolio that cannot reflect the risk characteristics of accounts receivable
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Provision for bad debts according to the difference between the present value of its future
Bad debt preparation method
cash flow and its book value
4. Return of Bad Debts
If there is objective evidence that the value of the receivable has been recovered and it is objectively related to the matters that
occurred after the loss was confirmed, the previously recognized impairment loss is reversed and charged to the current profit
or loss. However, the book value after the reversal does not exceed the amortized cost of the receivables on the reversal date
assuming no provision for impairment.
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, turnover materials, finished products, development costs, inventory items, materials in
transit, etc.
(2) How to obtain and issue inventory
Inventories are valued at the actual cost when acquired; at the time of inventory issuance, the actual cost of issuing inventory is
determined using the weighted average method.
(3)Confirmation of the net realizable value of inventories and withdrawal method for falling prices
The inventory at the end of the period is calculated based on the principle of low cost and net realizable value. For the reason that the
inventory is damaged due to being damaged, wholly or partially obsolete, or the selling price is lower than the cost, etc., the
unrecoverable part of the cost is estimated and the inventory depreciation reserve is withdrawn. The inventory depreciation reserve
for the inventories is extracted based on the difference between the cost of the individual inventory item and its net realizable value.
The net realizable value of the inventories is determined based on the estimated selling price of the inventories minus the estimated
selling expenses and relevant taxes.
After the provision for decline in value of inventories is made, if the influencing factors of the previous write-down of inventories
have disappeared and the net realizable value of inventories is higher than their book value, they shall be reversed within the amount
of provision for falling price of inventories that has been accrued and the amount transferred back. Including current profit and loss.
(4) The inventory system is a perpetual inventory system.
(5) Amortization method for low-value consumables and packages
Low-value consumables shall be amortized according to one-off amortization method/sub-amortization method at the time of use;
packaging materials shall be amortized according to one amortization method/separate amortization method at the time of use.
12. Assets Held for Sales
If the company recovers its book value mainly through sale (including non-monetary asset exchange with commercial substance, the
same below) instead of continuing to use a non-current asset or disposal group, it will be classified as held for sale. The specific
criteria are to meet the following conditions at the same time: a non-current asset or disposal group can be sold immediately under
the current conditions based on the practice of selling such assets or disposal groups in similar transactions; The company has already
made a resolution on the sale plan and obtained a certain purchase commitment; it is expected that the sale will be completed within
one year. Among them, a disposal group refers to a group of assets that are disposed of as a whole through sale or other means in a
transaction, and the liabilities directly related to these assets transferred in the transaction. If the asset group or combination of asset
groups to which the disposal group belongs apportions the goodwill obtained in the business combination in accordance with the
Accounting Standards for Enterprises No. 8 - Asset Impairment, the disposal group shall include the goodwill allocated to the
disposal group.
The initial measurement of the company or re-measurement on the balance sheet date is divided into non-current assets held for sale
and disposal group. If the book value is higher than the fair value minus the net amount after the sale expense, the book value shall be
reduced to the net amount after the fair value less the sale expense. The amount of write-down is recognized as impairment loss of
assets and included in the current profit and loss. At the same time, provision for impairment of assets held for sale is made. For the
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
disposal group, the recognized impairment loss of assets first offsets the book value of the goodwill in the disposal group, and then
the proportion is offset against the applicable non-current assets held in the disposal group for the book value of various non-current
assets stipulated in Accounting Standard for Business Enterprises No. 42 – Non-current Assets for Sales, Disposal Group and
Terminal Operation (hereinafter referred to as “the holding of the sales standard”). If the net value of the fair value of the disposal
group held for sale on the balance sheet date is less than the sale price, the previously written down amount shall be restored. After
the assets are classified as held for sale, the amount of impairment loss of assets confirmed by the non-current assets that meet the
measurement criteria for holding the sales standard shall be reversed. The reversed amount shall be included in the current profit and
loss, and shall be calculated according to the disposal group except for goodwill. The proportion of the book value of various
non-current assets applicable to the measurement and measurement standards of the held-for-sale rule shall be proportionally
increased to its book value. The carrying amount of the goodwill that has been eliminated and the non-current assets that are subject
to the measurement criteria for the holding of the sales standard for sale are not allowed to be reversed before the assets are
recognized as held for sale.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or amortization. Interest
and other expenses of liabilities in the disposal group held for sale continue to be confirmed.
When a non-current asset or disposal group no longer meets the classification criteria for the held-for-sale category, the company will
no longer divide it into the held-for-sale category or remove the non-current assets from the disposal group that holds the sale for sale.
And it is measured by the lower of the following two: (1) The book value before being classified as held for sale shall be adjusted
according to the depreciation, amortization or impairment that should have been recognized under the assumption that it is not
classified as a held-for-sale category; (2) recoverable amount.
13. Long-term Equity Investment
The long-term equity investment referred to in this part refers to the long-term equity investment that the company has control, joint
control or significant influence on the invested entity. The company's long-term equity investments that do not have control, joint
control, or significant influence over the investee are accounted for as available-for-sale financial assets or financial assets measured
at fair value through profit or loss. The accounting policies are detailed in the Note IV 9 Financial Instruments.
Joint control means that the company has common control over an arrangement in accordance with relevant agreements, and related
activities of the arrangement must be unanimously agreed by the parties that share the right of control. Significant influence means
that the company has the power to participate in making decisions on the financial and operating policies of the invested company,
but it cannot control or jointly control the formulation of these policies with other parties.
(1) Determination of investment costs
For the long-term equity investment acquired by the business combination under the same control, the share of the book value of the
equity of the merged party's shareholders in the ultimate controller's consolidated financial statements at the merger date shall be
taken as the initial investment cost of the long-term equity investment. The difference between the initial investment cost of the
long-term equity investment and the cash paid, the non-cash assets transferred, and the carrying amount of the debt assumed to adjust
the capital reserve; If the capital reserve is insufficient to reduce, the retained earnings shall be adjusted. For the issue of equity
securities as the merger consideration, the share of the book value in the ultimate controller’ consolidated financial statements based
on the equity of the merged party’s shareholders at the merger date is taken as the initial investment cost of the long-term equity
investment. In accordance with the total face value of the shares issued as the share capital, the difference between the initial
investment cost of the long-term equity investment and the total face value of the shares issued shall be adjusted to the capital reserve.
If the capital reserve is insufficient to reduce, the retained earnings shall be adjusted. Through multiple transactions to obtain the
shares of the merged party under the same control in a step-by-step manner and eventually form a business combination under the
same control, whether they belong to a “package deal” to be dealt with respectively: In the case of a “package deal”, each
transaction is treated as a transaction that obtains control rights. In the case it is not a “package deal” the share of the book value of
the shareholder’s equity of the merged party in the consolidated financial statements of the ultimate controller is taken as the initial
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
investment cost of the long-term equity investment. The difference between the initial investment cost of the long-term equity
investment and the book value of the long-term equity investment before the merger plus the book value of the new payment
consideration for the shares on the merger date shall be adjusted to the capital reserve; If the capital reserve is insufficient to reduce,
the retained earnings shall be adjusted. Any other comprehensive income recognized by the equity investment held prior to the
merger date that is accounted for using the equity method or is available-for-sale financial assets will not be subject to accounting
treatment for the time being.
For long-term equity investments acquired by business combinations not under common control, the initial cost of long-term equity
investment is the cost of acquisition on the purchase date. The merger costs include assets paid by the purchaser, liabilities incurred
or assumed, and the sum of fair value of the equity securities issued. If you acquire the equity of the purchased party through multiple
transactions, and eventually form a business combination not under the same control, and they should be dealt with according to
whether they are in a “package deal” respectively: In the case of a “package deal” each transaction is treated as a transaction that
obtains control rights. If it does not belong to a "package deal," the original investment cost of the long-term equity investment
calculated according to the cost method shall be calculated according to the sum of the book value of the original held equity
investment and the new investment cost. Where the originally held equity is accounted for using the equity method, related
comprehensive income shall not be accounted for temporarily. Where the original equity investment is an available-for-sale financial
asset, the difference between its fair value and its carrying amount, and the accumulated fair value changes previously recognized in
other comprehensive income are transferred to profit or loss for the current period.
Aggregate expenses such as auditing, legal services, assessment and consulting, etc. incurred by the combining party or the purchaser
for the business combination shall be recorded into the current profit and loss when incurred.
Except for the long-term equity investment formed by the business combination, other equity investments are initially measured at
cost. The cost will vary depending on the way in which the long-term equity investment is obtained, and will be swapped out in
accordance with the cash purchase price actually paid by the company, the fair value of the equity securities issued by the company,
the value of the investment contract or agreement, and the exchange of non-monetary assets. The fair value of the asset or the original
book value and the fair value of the long-term equity investment itself are determined. The costs, taxes, and other necessary expenses
that are directly related to the acquisition of long-term equity investments are also included in the investment costs. The cost of
long-term equity investment is the original held equity investment determined in accordance with the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments if the additional investment can significantly
affect the invested entity or jointly control it but does not constitute control. The fair value plus the sum of new investment costs.
(2) Subsequent measurement and recognition of profit and loss
The long-term equity investment that has common control over the invested entity (except for constituting a common operator) or
significant influence is accounted for using the equity method. In addition, the company's financial statements use the cost method to
account for long-term equity investments that can control the investee.
1 Long-term equity investment accounted for by cost method
When using the cost method, the long-term equity investment is measured at the initial investment cost, and the cost of the long-term
equity investment is adjusted by adding or withdrawing the investment. Except for the actual payment for the investment or the cash
dividend or profit included in the consideration that has been announced but not yet issued, the current investment income shall be
recognized in accordance with the cash dividend or profit declared to be released by the investee.
2 Long-term equity investment accounted for by the equity method
When using the equity method of accounting, the initial investment cost of long-term equity investment is greater than the fair value
share of the identifiable net assets of the investee when investing, and the initial investment cost of long-term equity investment shall
not be adjusted; Where the initial investment cost is less than the fair value share of the identifiable net assets of the investee when
the initial investment cost is less than the investment, the difference is included in the current profit or loss and the cost of the
long-term equity investment is adjusted.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
When using the equity method of accounting, investment income and other comprehensive income are recognized separately based
on the net profit or loss realized by the investee and the share of other comprehensive income that should be shared. At the same time,
the book value of long-term equity investment shall be adjusted; the portion of the book value of long-term equity investment shall
be reduced correspondingly in accordance with the portion of the profit or cash dividend declared to be distributed by the invested
entity; For other changes in the owners’ equity of the invested entity other than the net profit or loss, other comprehensive income
and profit distribution, the book value of the long-term equity investment is adjusted and included in the capital reserve. When
confirming that they should enjoy the share of the net profits and losses of the investee, the net profits of the investee shall be
adjusted after confirmation based on the fair value of the identifiable assets of the investee at the time of acquisition. If the investee
adopts an accounting policy and the accounting period is inconsistent with that of the company, the financial statements of the
investee shall be adjusted in accordance with the accounting policies and accounting periods of the company and based on which the
investment income and other comprehensive income will be confirmed. For the transactions between the company and its associated
companies and joint ventures, the assets sold or sold do not constitute a business, and the unrealized gains and losses from internal
transactions are calculated based on the proportion of shares that are attributable to the company and offset. On this basis, the
investment gains and losses are confirmed. However, if the unrealized internal transaction losses incurred by the company and the
invested entity belong to the impairment loss of the transferred assets, they shall not be offset. If the company constitutes a business
with assets invested by a joint venture or an associate, and the investor obtains a long-term equity investment but does not obtain
control, the fair value of the investment is used as the initial investment cost of the new long-term equity investment. The difference
between the cost and the book value of the investment business is fully accounted for in the current period profit or loss. Where the
assets sold by the company to a joint venture or an associate constitute a business, the difference between the consideration obtained
and the book value of the business is fully recorded in the current profit or loss. If the assets purchased by the company from its
associates and joint ventures constitute a business, it shall be accounted for in accordance with the Accounting Standards for Business
Enterprises No. 20 - Merger of Enterprises and shall fully confirm the gains or losses associated with the transactions.
When it is confirmed that the net losses incurred by the invested entity should be shared, the book value of the long-term equity
investment and other long-term equity that actually constitutes the net investment of the invested entity shall be reduced to zero. In
addition, if the company is obligated to bear additional losses to the investee, it shall recognize the estimated liabilities according to
the expected obligations and include the current investment losses. If the invested entity realizes a net profit in the subsequent period,
the Company will resume recognizing the share of its share of profits after the amount of its share of profits offsets the share of
unrecognized losses.
For long-term equity investments in associates and joint ventures that have been held prior to the Company's first implementation of
the new accounting standards, if there is a debit difference in the equity investment related to the investment, the amount that is
amortized on a straight-line basis over the original remaining period is included in the current profit or loss.
3 Acquisition of minority interest
When preparing the consolidated financial statements, the difference between the new long-term equity investment for the
acquisition of minority equity and the share of net assets that should be continuously calculated by the subsidiary since the purchase
date (or the merger date) based on the new shareholding ratio is calculated. If the capital reserve is adjusted and the capital reserve is
insufficient to offset, the retained earnings shall be adjusted.
4 Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially disposes of the long-term equity investment in the subsidiary
without losing control, and the difference between the disposal price and the disposal of the long-term equity investment and the
subsidiary's net assets are included in the shareholders' equity; If the parent company partially disposes of the long-term equity
investment in the subsidiary resulting in the loss of control over the subsidiary, it shall be dealt with in accordance with the relevant
accounting policies described in Notes 4, 5, and (2) Method for Compiling the Consolidated Financial Statements.
For the disposal of long-term equity investment under other circumstances, the difference between the book value and the actual
purchase price of the disposing equity shall be included in the current profits and losses.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
For long-term equity investments accounted for using the equity method, the remaining equity after disposal is still accounted for
using the equity method. At the time of disposal, other comprehensive income components originally recorded in shareholders' equity
shall be accounted for on the same basis as the investee's direct disposal of the relevant assets or liabilities. The owner ’ s equity
recognized as a result of changes in the owners ’ equity other than net profit or loss, other comprehensive income, and profit
distribution of the investee is transferred in profit or loss for the current period.
Long-term equity investments accounted for using the cost method, remaining equity after disposal are still accounted for using the
cost method. Before the acquisition of control over the investee, other comprehensive income recognized through equity method
accounting or confirmation of financial instruments and measurement standards shall be accounted for on the same basis as the
investee's direct disposal of the relevant assets or liabilities; and carry forward the profit and loss of the current period in proportion;
The change in owners’ equity other than net profit or loss, other comprehensive income, and profit distribution of the investee’ net
assets as a result of using the equity method of accounting is carried forward in proportion to the current profit or loss.
If the company disposes of part of the equity investment and loses control over the invested entity, when the individual financial
statements are prepared, if the remaining equity after disposal can exert joint control or significant influence on the investee, it shall
be accounted for using the equity method, and the equity shall be accounted for using the equity method to adjust the remaining
equity as if it were obtained; If the remaining equity after disposal cannot implement joint control or exert significant influence on
the invested entity, it shall be subject to accounting treatment in accordance with the relevant provisions of the criteria for recognition
and measurement of financial instruments. The difference between the fair value and the book value at the date of loss of control is
included in the current profit or loss. Before the company obtains control over the investee, other comprehensive income that is
recognized by using equity method accounting or financial instrument recognition and measurement criteria accounting. When
accounting for the invested entity is lost, the same basis as the investee’ direct disposal of the relevant assets or liabilities is used for
accounting treatment. Changes in the owners ’ equity other than the net profit or loss, other comprehensive income, and profit
distribution of the investee ’ s net assets that are accounted for using the equity method of accounting are carried forward to the
current profit or loss when they lose control of the investee. Among them, the residual equity after disposal is accounted for using the
equity method, and other comprehensive income and other owners' equity are carried forward in proportion; If the remaining equity
after disposal is changed to the accounting treatment based on the recognition and measurement standards of financial instruments,
all other comprehensive income and other owner's equity shall be carried forward.
If the company disposes of part of the equity investment and loses the joint control or significant influence on the investee, the
remaining equity after disposal shall be calculated according to the criteria for the confirmation and measurement of financial
instruments, and the fair value on the date of loss of joint control or significant influence. The difference between the book value is
included in the current profit and loss. The other comprehensive income recognized in the original equity investment accounted for
using the equity method is accounted for on the same basis as the investee’s direct disposal of the relevant assets or liabilities when
the use of the equity method is terminated. The owner’s equity recognized as a result of changes in the owners’ equity other than
the net profit or loss, other comprehensive income, and profit distribution of the investee is transferred to the current investment
income when the equity method is terminated.
The company disposes of the equity investment in the subsidiary company through multiple transactions until it loses control. If the
above transaction belongs to a package transaction, the transaction will be treated as a transaction that handles the equity investment
in the subsidiary company and loses control. Before the loss of control rights, the difference between the book value of the long-term
equity investment corresponding to each disposal price and the equity that was disposed of is first recognized as other comprehensive
income, and then transferred to the current loss and gain of loss of control right when the control right is lost.
14. Real Estate for Investment
Investment property refers to real estate held to earn rent or capital appreciation, or both, including land use rights that have been
leased, land use rights that are held and prepared for transfer after appreciation, buildings that have been leased, etc. In addition, if
the vacant building that the company holds in preparation for operating the lease, if the board of directors (or similar organization)
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
makes a written resolution. It is clearly stated that it will be used for operating leases and that the intentions of the holdings will not
change in the short term. They are also presented as investment real estate.
Investment real estate is initially measured at cost. Subsequent expenditures related to investment real estate shall be included in the
cost of investment real estate if the economic benefits associated with the asset are likely to flow in and its cost can be reliably
measured. Other follow-up expenses are included in the current profit or loss when they occur.
The Company adopts a cost model for the subsequent measurement of investment real estates, and depreciates or amortizes them in
accordance with policies that are consistent with the use of buildings or land use rights.
For details of the impairment test method and withdrawal method of impairment provision for investment real estate, please refer to
Note IV.20 Long-term Asset Impairment.
When the self-use real estate or inventory is converted into investment real estate or investment real estate is converted into self-use
real estate, the book value before conversion shall be taken as the converted entry value.
When the investment real estate is disposed of or permanently withdrawn from use and it is expected that no economic benefit can be
obtained from its disposal, the recognition of the investment real estate shall be terminated. The income from disposal of investment
real estate sold, transferred, scrapped or damaged is deducted from its book value and related taxes and expenses and charged to
profit or loss for the current period.
15. Fixed Assets
(1) Conditions to determine fixed assets
Fixed assets refer to tangible assets that are held for the purpose of producing goods, providing labor service, renting or business
management and have a service life of more than one accounting year. Fixed assets are only recognized when their economic benefits
are likely to flow into the company and their costs can be reliably measured. Fixed assets are initially measured at cost and taking
into account the impact of the estimated cost of disposal.
(2) Depreciation methods for various types of fixed assets
From the next month after the fixed assets have reached the expected usable status, depreciation is applied within the useful life using
the straight-line method. The useful life, estimated net residual value and annual depreciation rate of various types of fixed assets are
as follows:
Depreciation Depreciation period Residual Annual depreciation
Category
method (years) rate(%) rate (%)
Annual average
Buildings 8-50 5 1.90-12.00
method
Annual average
Electronic equipment 3-10 4、5 9.50—32.00
method
Mechanical Annual average
equipment method
5-28 4、5 3.39—19.20
Transportation Annual average
equipment method
5-10 4、5 9.50—19.20
Annual average
Office equipment 3-10 4、5 9.50-32.00
method
Annual average
Other equipment 5-28 4、5 3.39—19.20
method
The expected net salvage value is the amount of the estimated disposal expenses that the company currently receives from the
disposal of the asset, assuming that the estimated useful life of the fixed asset is full and at the end of its useful life.
(3) Impairment test method of fixed assets and withdrawal method of impairment provision
For the details of impairment test method and withdrawal method of impairment provision for fixed assets, please refer to Note IV.20
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Long-term Asset Impairment.
(4) Identification basis and pricing method of financing lease fixed assets
A finance lease is a lease that transfers substantially all the risks and rewards associated with the ownership of an asset. Ownership
may or may not eventually transfer ownership. Fixed assets leased by financial leases are depreciated by using the same policy as
self-owned fixed assets. If it is reasonable to determine the ownership of the leased asset when the lease term expires, depreciation
shall be made within the useful life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased
asset can be obtained upon the expiration of the lease term, the depreciation will be made within the shorter of the lease term and the
useful life of the leased asset.
(5) Other Instructions
Subsequent expenditures related to fixed assets, if the economic benefits associated with the fixed assets are likely to flow in and
their costs can be reliably measured, are included in the cost of fixed assets and the recognition of the book value of the replaced part
is terminated. Other subsequent expenditures other than this are included in profit or loss for the current period when incurred.
The fixed assets are derecognized when the fixed assets are disposed or if no economic benefits are expected to result from the use or
disposal. The difference between the proceeds from disposal of fixed assets sold, transferred, scrapped or damaged after deducting
their book value and relevant taxes and fees is included in the current profits and losses.
The company reviews the useful life, estimated net residual value, and depreciation method of fixed assets at least at the end of the
year. If any change occurs, it will be treated as changes in accounting estimates.
16. Construction in Progress
Construction in progress costs are determined based on actual project expenditures, including project expenditures incurred during
construction, capitalized borrowing costs and other related expenses before the project reaches its expected usable condition.
Construction in progress is carried over to fixed assets after it reaches its intended usable condition.
For details of the impairment test method and impairment provision method for construction in progress, please refer to Note IV.20
Long-term Asset Impairment.
17. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses, and exchange differences
arising from foreign currency borrowings. Borrowing costs that can be directly attributable to the acquisition, construction or
production of assets that meet the conditions for capitalization; Capitalization commences when capital expenditures have already
occurred, borrowing costs have been incurred, and the acquisition, construction or production activities necessary to bring the assets
to their intended use or sale status have commenced; When the assets constructed or produced that comply with the capitalization
conditions reach the state of intended use or sale, the capitalization shall be stopped. The remaining borrowing costs are recognized
as expenses in the current period.
The actual interest expenses incurred in the current period of the special borrowings shall be capitalized after deducting the interest
income earned by the undisbursed borrowing funds from the bank or the investment income obtained from the temporary investment.
The general borrowings are determined based on the weighted average of the accumulated asset expenditures that exceed the portion
of the special borrowings multiplied by the capitalization rate of the general borrowings used to determine the amount of
capitalization. The capitalization rate is determined based on the weighted average interest rate of the general borrowings.
During the capitalization period, the exchange differences in foreign currency specific borrowings are all capitalized; exchange
differences on foreign currency general borrowings are recognized in profit or loss for the current period.
Assets eligible for capitalization refer to assets such as fixed assets, investment real estate, inventory, etc. which require a
considerable period of time for acquisition or construction or production activities to be ready for use or sale.
If the assets eligible for capitalization are abnormally interrupted in the process of acquisition, construction or production and the
interruption lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended until the acquisition,
construction or production of the assets resumes.
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18. Intangible Assets
(1) Intangible Assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the company and have no physical shape.
Intangible assets are initially measured at cost. Expenditures related to intangible assets are included in the cost of intangible assets if
the relevant economic benefits are likely to flow into the company and their costs can be reliably measured. Expenditure for other
items other than this is included in profit or loss for the current period when incurred.
Land use rights acquired are usually accounted for as intangible assets. For the self-development and construction of buildings and
other buildings, the related land use rights expenditures and building construction costs are accounted for as intangible assets and
fixed assets, respectively. For purchased houses and buildings, the relevant price will be allocated between the land use rights and the
buildings. If it is difficult to allocate them reasonably, they will be treated as fixed assets.
Intangible assets with limited useful lives are available to be amortized over their original useful lives less their estimated net residual
value and the accumulative amount of accrued impairment losses from their expected useful lives from the moment they are available
for use. Intangible assets with indefinite useful lives are not amortized.
At the end of the period, the service life and amortization method of the intangible assets with limited service life are reviewed, and if
any changes occur, they are treated as changes in accounting estimates. In addition, the service life of an intangible asset with an
indefinite useful life is reviewed. If there is evidence that the period during which the intangible asset brings economic benefits to the
enterprise is foreseeable, the useful life of the intangible asset is estimated and it is based on intangible assets with a limited useful
life. The amortization policy is amortized.
(2) Research and development expenditure
The expenditures of the company's internal research and development projects are divided into research phase expenditures and
development phase expenditures.
Expenditure for the research phase is included in profit or loss for the current period when incurred.
Expenditure in the development phase that satisfies the following conditions at the same time is recognized as intangible assets.
Expenditure at the development stage that does not satisfy the following conditions is included in the current profit and loss:：
1 It is technically feasible to complete this intangible asset so that it can be used or sold;
2 Have the intention to complete the intangible assets and use or sell them;
3 The ways in which intangible assets generate economic benefits, including the existence of a market in which intangible
assets can be used to prove the existence of a market for the products produced using the intangible assets, and intangible
assets can be used internally, which can prove its usefulness;
4 Sufficient technical, financial and other resources to support the development of the intangible assets and the ability to use
or sell the intangible assets;
5 Expenditure attributable to the development stage of this intangible asset can be reliably measured.
If it is not possible to distinguish between research phase expenditures and development phase expenditures, all R&D expenditures
incurred will be charged to the current profit or loss.
(3) Impairment test method of intangible assets and withdrawal method of impairment provision
For details of the impairment test method and withdrawal method of impairment provision for intangible assets, please refer to Note
IV.20 Long-term Asset Impairment.
19. Long-term Expenses to be Apportioned
Long-term expenses to be apportioned are various expenses that have already occurred but should be burdened by the reporting
period and subsequent periods with a time limit of more than one year. The company's long-term expenses to be apportioned mainly
include renovation and land lease fees. Long-term expenses are amortized on a straight-line basis over the expected benefit period.
20. Long-term Asset Impairment
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
For non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited service life,
investment real estate measured in cost mode, and long-term equity investments in subsidiaries, joint ventures, and associates. The
company judges whether there is any indication of impairment on the balance sheet date. If there is any indication of impairment, its
recoverable amount is estimated and an impairment test is conducted. Goodwill, intangible assets with an indefinite useful life, and
intangible assets that have not yet reached their usable status are tested for impairment annually, regardless of whether there is any
indication of impairment.
If the impairment test result shows that the recoverable amount of the asset is lower than its book value, the difference shall be
withdrawn and accounted for as impairment loss. The recoverable amount is the higher of the fair value of the assets less the disposal
expenses and the present value of the estimated future cash flow of the assets. The fair value of an asset is determined based on the
price of the sales agreement in an arm's length transaction. If there is no sales agreement but there is an active market for assets, the
fair value is determined based on the buyer's bid for the asset; If there is no sales agreement and an active market for assets, the fair
value of the asset is estimated based on the best available information. Disposal expenses include legal fees related to the disposition
of assets, related taxes, handling expenses, and direct expenses incurred in bringing assets into a saleable state. The present value of
the expected future cash flow of the assets is determined by the amount of discounted cash flow selected in accordance with the
estimated future cash flow generated during the continuous use and final disposal of the assets. The impairment provision for assets
is calculated and confirmed on the basis of individual assets. If it is difficult to estimate the recoverable amount of a single asset, the
asset group to which the asset belongs should be used to determine the recoverable amount of the asset group. Asset groups are the
smallest portfolio of assets that can generate independent cash inflows.
Goodwill separately listed in the financial statements shall be allocated to the asset group or combination of asset groups that are
expected to benefit from the synergies of the business combination when performing the impairment test. If the test result shows that
the recoverable amount of the asset group or combination of asset groups that includes the allocated goodwill is lower than its book
value, the corresponding impairment loss is recognized. The amount of impairment loss is written off against the book value of
goodwill allocated to the asset group or group of asset groups. According to the proportion of the carrying value of other assets
except for goodwill in the asset group or group of assets, the book value of other assets is offset proportionately.
Once the impairment loss of the above assets is confirmed, it will not be transferred back to the part where the value is recovered.
21. Employees’ Salary
The employee compensation of the company mainly includes short-term employee compensation, post-employment benefits,
dismissal benefits, and other long-term employee benefits. Among them:
The short-term salary mainly includes wages, bonuses, subsidies and subsidies, workers' welfare, medical insurance, birth insurance,
industrial injury insurance, housing accumulation fund, trade union funds and staff education funds, non-monetary welfare and so on.
During the accounting period of the employees providing service to the company, the company recognized the actual short-term
employees' pay as liabilities and included the cost of the profit and loss of the current period or the related assets. The non-monetary
welfare is measured in accordance with the fair value.
Post-employment benefits include basic pension insurance, unemployment insurance and annuity. Post-employment benefits plan
includes setting up the deposit plan and setting up the benefit plan. By setting up the deposit plan, the corresponding deposit amount
should be included in the relevant asset cost or current profit and loss when it occurs. (1) The reserve plan is recognized as a liability
based on the fixed fee paid to an independent fund, and it is included in the current profit and loss or related assets cost. (2) Set up the
benefit plan, and adopt the expected accumulative welfare unit method to carry out the accounting treatment. Specifically, the
company will set the welfare obligation set by the benefit plan as the final value of the departure time according to the formula
determined by the expected cumulative welfare unit method. Later, it belongs to the period of providing services for employees, and
it is included in the current profit and loss or related assets cost.
To release the labor relations with the employees prior to the expiry of the employee labor contract, or to offer compensation for the
employees’ willingness to accept the reduction, when the company cannot unilaterally withdraw the termination benefits provided
by the dissolution of the labor relationship plan or the reduction proposal, Both the company and the company confirm the costs
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
related to the restructuring related to the disbursement and dismemberment benefits as soon as possible, and confirm the employees'
remuneration liabilities resulting from the dismissal benefits and include them in the current profits and losses. However, if the
dismissal welfare is not expected to be fully paid within 12 months after the end of the annual reporting period, it shall be treated as
other long-term employee compensation.
The employee's internal retirement plan is treated on the same principle as the above-mentioned retirement benefits. The Company
will include the salaries of the internally retired staff and the social insurance premiums to be paid during the period from the
employee's suspension of service to the normal retirement date, and shall be recorded in the current profit or loss (the dismissing
welfare) when they meet the conditions for confirming the estimated liabilities.
If the other long-term employee benefits provided by the company to employees are in compliance with the defined contribution plan,
it shall be accounted for in accordance with the defined contribution plan. In addition, it shall be accounted for in accordance with the
defined benefit plan.
22. Estimated Liabilities
When obligations related to contingent events meet the following conditions, they are confirmed as estimated liabilities: (1) this
obligation is the current obligation assumed by the company; (2) The performance of this obligation may result in the outflow of
economic benefits; (3) The amount of this obligation can be reliably measured.
On the balance sheet date, considering the risks, uncertainties, and time value of money related to contingencies, the estimated
liabilities shall be measured in accordance with the best estimate of the required expenditure for the performance of the current
obligation.
If all or part of the expenses required for the liquidation of estimated liabilities are expected to be compensated by a third party, the
amount of compensation shall be recognized as an asset separately when it is basically determined to be receivable, and the amount
of compensation confirmed does not exceed the book value of the estimated liability.
(1) Loss Contract
A loss contract is a contract in which the inevitable occurrence of contractual obligations exceeds the expected economic benefits. If
the contract to be executed becomes a loss-making contract and the obligation resulting from the loss-making contract satisfies the
conditions for recognizing the above-mentioned estimated liability, the portion of the contracted asset that exceeds the recognized
impairment loss (if any) of the contracted asset is recognized as the estimated liability.
(2) Reorganization Obligations
For a reorganization plan that is detailed, formal, and has been announced to the public, the amount of the estimated liability is
determined based on the direct expenses related to the reorganization, provided that the aforementioned conditions for confirming the
estimated liabilities are met. For the obligation to re-sell part of the business, only when the company promises to sell part of the
business (that is, when a binding sales agreement is signed), will it confirm the obligations related to the reorganization.
23. Share Payment
(1) Accounting treatment of share payments
Share payment is a transaction that grants equity instruments or assumes liabilities determined on the basis of equity instruments in
order to obtain services provided by employees or other parties. Share payments are divided into equity-settled share-based payments
and cash-settled share payments.
1 Equity-settled share payments
Equity-settled share payments used to exchange services provided by employees shall be measured at the fair value of the equity
instruments granted to employees on the grant date. The amount of this fair value shall be based on the best estimate of the number of
equity instruments that are exercisable during the waiting period when the services within the waiting period are completed or the
specified performance conditions are only available. When it is calculated according to the straight-line method, the relevant costs or
expenses are included/when the vesting right is immediately available after granting, relevant costs or expenses are included on the
grant date, and the capital reserve is increased correspondingly.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
During the waiting period, on each balance sheet date, the Company makes the best estimate based on the latest information on
changes in the number of viable employees, and revises the number of equity instruments that are expected to be exercised. The
above estimated impact is included in the current period related costs or expenses, and capital reserves are adjusted accordingly.
If the fair value of the other party's services can be reliably measured, the fair value of the other party's services on the date of
acquisition will be measured. If the fair value of other party's services cannot be reliably measured, but the fair value of the equity
instrument can be measured reliably, the fair value measurement of the equity instrument at the date of service acquisition shall be
included in the relevant costs or expenses, and the shareholders' equity shall be increased correspondingly.
2 Cash-settled share payment
Cash-settled share-based payments are measured at the fair value of the liabilities assumed by the company on the basis of shares or
other equity instruments. If the right is exercised immediately after granting, relevant costs or expenses are included on the grant date,
and liabilities are increased accordingly; If it is necessary to complete the services during the waiting period or to achieve the
required performance conditions, then on each balance sheet date of the waiting period, based on the best estimate of the vesting
condition, the fair value of the liabilities assumed by the company shall be calculated. The services obtained during the current period
are included in costs or expenses and the liabilities are increased accordingly.
On each balance sheet date and settlement date prior to the settlement of the relevant liabilities, the fair value of the liability is
re-measured and the change is recorded in the current profit or loss.
(2)Relevant accounting treatment of modifying and terminating the share payment plan
When the company makes changes to the share payment plan, if the revision increases the fair value of the equity instruments granted,
the increase in services will be confirmed in accordance with the increase in the fair value of the equity instruments. The increase in
the fair value of equity instruments refers to the difference between the fair value of the equity instruments before and after the
modification on the date of modification. If the amendment reduces the total fair value of the share payment or adopts other methods
that are unfavorable to the employees, it will continue to account for the services obtained as if the change never occurred unless the
company cancelled some or all of the granted instruments.
During the waiting period, if the granted equity instrument is cancelled, the company will treat the cancelled equity instrument as
accelerating exercise, and immediately recognize the amount that should be confirmed in the remaining waiting period in the current
profit and loss and confirm the capital reserve. If the employee or other party can choose to meet the non-vesting condition but is not
satisfied within the waiting period, the company will treat it as cancellation of the granted equity instrument.
(3) Accounting treatment of share payment transactions involving the company’s shareholders or actual controllers
In respect of the company’s share-based payment transactions with the shareholders or actual controllers of the company, one of the
settlement company and the receiving service company is within the company. Another accounting treatment in the company's
consolidated financial statements outside the company is as follows:
①If a settlement company settles its equity instrument, the share payment transaction shall be treated as equity-settled share-based
payment; In addition, this will be treated as a cash settled share payment.
If the settlement company is an investor in a service enterprise, it shall be recognized as a long-term equity investment in the service
enterprise in accordance with the fair value of the equity instrument of the grant date or the fair value of the liability it is assumed to
bear. Capital reserve (other capital reserve) or liabilities shall also be recognized. .
②If the receiving service enterprise has no settlement obligation or has granted its own equity instruments to the employees of the
enterprise, the share payment transaction shall be treated as equity-settled share payment; If the receiving service company has a
settlement obligation and the company’s employee is not its own equity instrument, the share payment transaction is treated as cash
settled share payment.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
If the share-based payment transaction between the companies within the company is not the same as the service enterprise and the
settlement enterprise, the confirmation and measurement of the share-based payment transaction in the individual financial
statements of the receiving service enterprise and the settlement enterprise shall follow the above principles.
24. Preferred Stock, Perpetual Debt and Other Financial Instruments
(1) The difference between perpetual debt and preferred stock, etc.
The financial instruments issued by the company, such as perpetual bonds and preferred shares, meet the following conditions as
equity instruments:
① The financial instruments do not include contractual obligations to deliver cash or other financial assets to other parties or to
exchange financial assets or financial liabilities with other parties under potentially adverse conditions;
②If the financial instrument is required to be settled or can be settled with the company's own equity instruments in the future, if the
financial instrument is not a derivative instrument, it does not include the contractual obligation to deliver a variable amount of its
own equity instrument for settlement; If it is a derivative, the company can only settle the financial instrument by using a fixed
amount of its own equity instruments to exchange a fixed amount of cash or other financial assets.
Except for the financial instruments that can be classified as equity instruments under the above conditions, other financial
instruments issued by the company should be classified as financial liabilities.
Where the financial instrument issued by the company is a compound financial instrument, it is recognized as a liability based on the
fair value of the liability component, and is recognized as “other equity instrument” after the actual amount received minus the fair
value of the liability component. The transaction costs incurred for the issuance of a compound financial instrument are apportioned
between the liability component and the equity component in proportion to their respective share of the total issue price.
(2) Accounting methods for perpetual debt, preferred stock, etc.
Financial instruments classified as financial liabilities, such as perpetual bonds and preferred stock, related interest, dividends (or
dividends), gains or losses, and gains or losses arising from redemptions or refinancing, except for borrowings eligible for
capitalization expenses (see Note IV.17 Loaning Expenses) are included in the current profits and losses.
For financial instruments classified as equity instruments, such as perpetual bonds and preferred shares, the company treats them as a
change in equity (including refinancing), repurchase, sale, or cancellation, and related transaction costs are also deducted from equity.
The Company's distribution to holders of equity instruments is treated as profit distribution.
The company does not confirm the fair value changes of equity instruments.
25. Revenue
(1) Product sales revenue
The general principles of revenue recognition for a company's sales are as follows: The transfer of the major risks and rewards of the
ownership of the goods to the buyer has neither retained the continuation management rights usually associated with the ownership
nor implemented effective control over the sold goods, and the amount of income can be reliably measured. The relevant economic
benefits are likely to flow into the company, and when the related costs that have occurred or will occur can be reliably measured, the
realization of the sales revenue of the goods is confirmed.
The specific principles of the company's revenue recognition for sales are as follows: ① Wholesale business: Sales revenue is
recognized when the goods have been delivered to the customer and confirmed by the customer's signature, the company has
received the money or obtained the evidence of the request for payment; ② Retail business: Revenue from the sale of goods is
recognized when the purchase price has been received and the goods have been delivered to the customer.
(2)Revenue from Providing Labor
When the results of the provision of labor services can be reliably estimated, the labor revenue provided by the percentage of
completion method is recognized on the balance sheet date. The progress of the completion of the service transaction is determined
by the ratio of the completed service measurement/provided labor service to the total labor service provision/cost of labor service
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
incurred to the estimated total cost.
The ability to reliably estimate the outcome of a labor transaction is to satisfy: ①The amount of income can be measured reliably;
②The related economic benefits are likely to flow into the company;③The degree of completion of the transaction can be reliably
determined;④The costs that have occurred and will occur in the transaction can be reliably measured.
If the results of the provision of labor services cannot be reliably estimated, the labor service income provided shall be recognized
according to the amount of labor costs that have occurred and is expected to be compensated, and the incurred service costs shall be
recognized as current expenses. If the labor costs that have already occurred cannot be compensated if they are not expected to be
compensated, the revenue will not be recognized.
Processing business(Processing fees charged): The processing fee shall be recognized upon completion of the processing and
delivery of the relevant commodities and upon receipt of the processing fee or the relevant evidence for the processing fee.
If the contract or agreement signed between the company and other companies includes the sale of goods and the provision of labor
services, if the sales of goods and the provision of labor services can be distinguished and measured separately, the sale of goods and
the provision of labor services shall be handled separately; If the selling goods part and the labor service part cannot be distinguished,
or if they can be distinguished but cannot be measured separately, the contract shall be treated as sales goods.
(3) Transfer of income from the right to use assets
The economic benefits associated with the transaction are likely to flow into the enterprise. When the amount of income can be
reliably measured, the amount of income from the right to use the transferred assets is determined:①Revenue from Interest, revenue
from interest is calculated based on the time and actual interest rate of others using the company’s currency funds. ②Income from
trademark use rights, the income from the right to use a trademark shall be calculated and determined according to the charging time
and method stipulated in the right to use the trademark contract..
26. Government Grant
The government grant refers to the company's free acquisition of monetary assets and non-monetary assets from the government,
excluding the capital invested by the government as an investor and enjoying the corresponding owner's equity. Government grants
are divided into asset-related government grants and income-related government grants. The company defines the government grant
acquired for the construction or other forms of long-term assets as the government subsidy related to the assets; The remaining
government grants are defined as income-related government grants. If the government document does not specify the target of the
grant, the grant will be divided into income-related government grant and asset-related government grant in the following ways: (1)
Where a government document specifies the specific project for which the subsidy is targeted, the relative proportion of the amount
of expenditure that forms the asset and the amount of expenditure included in the expense shall be divided according to the budget of
the specific project; The division ratio shall be reviewed on each balance sheet date, and changes shall be made when necessary; (2)
The government documents only make a general statement on the use, and do not specify a specific item as a government grant
related to income. If the government grant is a monetary asset, it shall be measured according to the amount received or receivable. If
a government grant is a non-monetary asset, it shall be measured at its fair value; If the fair value cannot be reliably obtained, it shall
be measured at the nominal amount. Government grants measured at nominal amounts are directly charged to profit or loss for the
current period.
The Company usually confirms and measures the actual amount of government subsidies when it is actually received. However, for
the end of the period there are conclusive evidence that can meet the relevant conditions of the financial support policy requirements
are expected to receive financial support funds in accordance with the amount receivable. The government grant measured in
accordance with the amount receivable shall meet the following conditions at the same time: (1) The amount of the loan receivable
has been confirmed by the authorized government department, or it can be reasonably measured according to the relevant provisions
of the officially announced fiscal fund management method, and it is expected that there will be no significant uncertainty in its
amount. (2) It is based on the financial support projects that have been officially released by the local financial department and that
are voluntarily disclosed in accordance with the regulations of the Government Information Disclosure Regulations and the
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
administrative measures for fiscal funds. And the management approach should be inclusive (any company that meets the specified
conditions can apply), rather than specifically for a specific business; (3) The relevant grant approval has clearly promised the time
limit for the payment, and the payment of this amount is guaranteed by the corresponding financial budget, so it can be reasonably
guaranteed that it can be received within the prescribed time limit; (4) According to the company and the specific circumstances of
the subsidy, other relevant conditions that should be met.
Government grants related to assets are recognized as deferred income and are charged to the profit or loss of the current period or
the carrying amount of the relevant assets in a reasonable and systematic manner over the useful life of the relevant assets. If a
government grant related to income is used to compensate for the related costs or losses in the subsequent period, it shall be
recognized as deferred income, and shall be recorded in the current profit or loss or the relevant cost in the period in which the
relevant cost, expense or loss is recognized; For the compensation of related costs or losses that have occurred, they shall be directly
included in the current profits and losses or offset the relevant costs.
At the same time, it includes government grants related to the asset-related portion and the income-related portion, and separates
different parts for accounting treatment. If it is difficult to distinguish, categorize it as a government grant related to income.
The government grants related to the daily activities of the company are included in other income or used to reduce the related costs
in accordance with the substance of the economic business; Government grants that are not related to daily activities are counted in
non-operating income and expenditure.
When a confirmed government grant needs to be returned, if there is a related deferred income balance, the relevant deferred income
is offset against the carrying amount. The book value of the assets adjusted government grants adjusted to the excess of the current
profit or loss or the write-down of the carrying amount of the relevant assets at initial recognition; if it belongs to other situations, it
shall be directly included in the current profits and losses.
27. Deferred income tax assets / deferred income tax liabilities
(1) Current income tax
On the balance sheet date, the current income tax liabilities (assets) in current and previous period shall be measured in the expected
income tax payable (or refundable) calculated according to the tax law. The taxable income which is the basis of calculating current
income tax expense is calculated after the pre-tax accounting profit during the report period is adjusted correspondingly according to
the tax law
(2) Deferred income tax assets and deferred income tax liabilities
For the temporary differences arising from the balance between the book value of some asset and liability items and its tax basis, and
the balance between the book value of items that cannot be taken as asset and liability recognition but can determine its tax basis
according to the tax law and the tax basis, the balance sheet liability method is adopted to recognize deferred income tax assets and
deferred income tax liabilities.
For taxable temporary differences related to the initial recognition of goodwill, and the initial recognition of assets or liabilities
caused in transaction that is not business merger or does not affect the accounting profit and taxable income (or deductible loss), the
related deferred income tax liabilities will not be recognized. In addition, for taxable temporary differences related to the investment
in subsidiaries, affiliated enterprises and joint ventures, if the Company can control the time of the reverse of temporary differences,
and such temporary differences cannot be reserved in the foreseeable future, the related deferred income tax liabilities will also not be
recognized. Except for the above exceptions, the Company recognizes deferred income tax liabilities arising from all other taxable
temporary differences.
For deductable temporary differences related to the initial recognition of assets or liabilities caused in transaction that is not business
merger or does not affect the accounting profit and taxable income (or deductible loss), the related deferred income tax assets will not
be recognized. In addition, for deductable temporary differences related to the investment in subsidiaries, affiliated enterprises and
joint ventures, if the temporary differences cannot be reserved in the foreseeable future, or the taxable income for deducting
deductable temporary differences cannot be obtained in the future, the related deferred income tax assets will not be recognized.
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Except for the above exceptions, the Company recognizes deferred income tax assets arising from all other deductable temporary
differences within the limit of taxable income that can be obtained to deduct the temporary differences.
For the deductible loss and tax deduction that can be carried forward in subsequent years, the Company recognizes corresponding
deferred income tax assets within the limit of future taxable income that can be obtained to deduct the deductible loss and tax
deduction
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured in applicable tax rate
during expected recovery of related assets or liquidation of related liabilities according to the tax law.
On the balance sheet date, the Company re-checks the book value of deferred income tax assets, and if enough taxable income cannot
be obtained in the future to deduct the benefits arising from deferred income tax assets, then the book value of deferred income tax
assets will be written down. When enough taxable income can be obtained, the write-down amount will be reserved.
(3) Income tax expense
The income tax expense includes current income tax and deferred income tax.
Except the current income tax and deferred income tax related to the transactions and events that are recognized as other
comprehensive income or are directly reckoned in shareholders' equity, and the book value of deferred income tax arising from
business merger for adjusting the goodwill are reckoned in other comprehensive income or shareholders' equity, the rest current
income tax and deferred income tax expenses or benefits are reckoned in the current profit and loss,
(4) Offset of income tax
When the Company has the legal right of net settlement and intends to conduct the net settlement or the acquisition of assets and
liquidation of liabilities are conducted at the same time, the current income tax assets and current income tax liabilities of the
Company are presented as per the net amount after offset.
When the Company has the legal right of net settlement of current income tax assets and current income tax liabilities, and the
deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection bureau
on the same tax subject or different tax subjects, but during the reverse of each important deferred income tax assets and liabilities in
the future, the tax subjects involved intend to conduct net settlement of current income tax assets and liabilities or the acquisition of
assets and liquidation of liabilities are conducted at the same time, the deferred income tax assets and liabilities of the Company are
presented as per the net amount after offset.
28. Leasing
The financial leasing means transfer of all risks and remuneration related to the ownership of assets in essence, and its ownership can
be transferred or cannot be transferred finally. The other leasing other than financial leasing is operating leasing.
(1) The Company as a lessee records the operating leasing business
The rental payment of operating leasing during the lease term is reckoned in the related asset cost or current profit and loss according
to the straight-line method. The initial direct cost is reckoned in current profit and loss, or the rent occurring actually is reckoned in
current profit and loss.
(2) The Company as a lessor records the operating leasing business
The rental income of operating leasing during the lease term is recognized as the current profit and loss according to the straight-line
method. The larger initial direct cost is capitalized when it occurs, which is reckoned in current profit and loss according to the basic
installment of recognized rental income during the lease term; other smaller initial direct cost is reckoned in current profit and loss
when it occurs, or the rent occurring actually is reckoned in current profit and loss.
(3) The Company as a lessee records the financial leasing business
On the lease commencement date, the less of the fair value of leasing assets and the present value of minimum lease payment is taken
as the recording value of leasing assets, and the minimum lease payment is taken as the recording value of long-term payable, and its
balance is taken as unrecognized financing expense. In addition, the initial direct costs attributable to leasing items occurring in the
process of leasing negotiation and signing the leasing contract can also be reckoned in the value of leasing assets. The balances after
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
the minimum lease payment deducts unrecognized financing expense are respectively presented in long-term liability and long-term
liability due within one year
For the unrecognized financing expense, the effective interest rate method is adopted to calculate the recognized current financing
expense within the lease term, or the rent occurring actually is reckoned in current profit and loss.
(4) The Company as a lessor records the financial leasing business
On the lease commencement date, the sum of the minimum lease payment and initial direct cost is taken as the booking value of
financial leasing receivables, and meanwhile, the unguaranteed residual value is recorded; the balance between the sum of the
minimum lease payment, initial direct cost and unguaranteed residual value and the sum of present values is recognized as unrealized
financing income. The balances after the financial leasing receivables deduct unrealized financing incomes are respectively presented
in long-term liability and long-term liability due within one year
For the unrealized financing income, the effective interest rate method is adopted to calculate the recognized current financing
income within the lease term, or the rent occurring actually is reckoned in current profit and loss.
29. Other important accounting policies and accounting estimates
(1) Discontinued operation
The discontinued operation means a component that meets one of the following conditions, has been disposed by the Company or
classified to be available-for-sale or in business and can be distinguish separately when the financial statements are prepared: ① the
component represents a main independent business or a main operating area; ② the component is a part of planning to dispose a
main independent business or a main operating area; ③the component is just for reselling subsidiaries available.
(2) Hedging accounting
To avoid the commodity price risk in spot goods operation, the Company appoints the commodity futures contract as hedging
instrument. For the commodity futures hedging meeting specified conditions, the Company adopts the following hedging accounting
methods stipulated in the Temporary Provisions for the Accounting Treatment of Commodity Futures Hedging Business (CK [2015]
No.18) to deal with it from January 1, 2016, and the above-mentioned hedging accounting method will not be executed for this kind
of business.
The Company adopts the fair value hedging.
At the beginning of the hedging, the Company specifies the hedging relationship in writing, including recording the relation between
the hedging instrument and hedged item, and the risk management goal and hedging strategy; the nature and quantity of hedged items;
the nature and quantity of hedging instruments; the nature and recognition of hedging risks; hedging type (fair value hedging or cash
flow hedging); the evaluation on hedging effectiveness, including the economic relation between the hedged item and hedging
instrument, hedging ratio and source of hedging unavailability; the date of starting to specify the hedging relationship, etc. In addition,
the Company will evaluate the existing hedging relationship on the balance sheet date or when major changes in relevant situations
affect the requirements of hedging effectiveness, to confirm whether the hedging relationship shall be terminated, or whether the
quantity of specified hedged items or hedging instruments shall be adjusted, so as to maintain the hedging ratio meeting the
requirements of hedging effectiveness (namely, “rebalance”).
If the Company cannot specify the established hedging relationship because of the change in risk management goal, or the hedging
instrument is closed out or delivered, or the risk exposure of hedged items is lost, or the hedging relationship does not meet the
application conditions of the hedging accounting after rebalance is considered (if applicable), then the hedging relationship will be
terminated.
①Fair value hedging
For the fair value hedging, the Company reckons the profit or loss arising from the change in fair value of the hedging instrument in
the current profit and loss during the hedging relationship existence. If the hedged item is inventory, the Company reckons the change
in fair value of the hedged item in the current profit and loss and adjusts the book value of the hedged item during the hedging
52
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
relationship existence. If the hedged item is definite undertaking, the hedged item is recognized as one asset or liability arising from
changes in accumulated fair values after the hedging relationship is specified, and reckoned in the profit or loss of corresponding
period.
When hedging relationship is terminated, if the hedged item is inventory, the Company will transfer out the book value of the hedged
item and reckon it in the selling cost when selling the inventory; if the hedged item is definite undertaking of purchasing
commodities, the Company will transfer out the assets or liabilities arising from changes in accumulated fair values of the hedged
item and reckon them in the initial inventory cost when confirming the relevant inventory; if the hedged item is definite undertaking
of selling commodities, the Company will transfer out the assets or liabilities arising from changes in accumulated fair values of the
hedged item and reckon them in the sales revenue when selling.
30. Changes in important accounting policy and accounting estimate
(1) Change in accounting policy
There were no changes to the main accounting policies during the reporting period.
(2) Change in accounting estimate
There were no changes to the main accounting estimate during the reporting period.
V. Tax
1. Main tax type and tax rate
Tax type Taxation basis Tax rate
The balance is VAT after incomes from selling goods, taxable
VAT labor service income and taxable service income calculated 3%, 5%, 6%, 11%, 13%, 17%
according to the tax law minus current deductable input VAT.
Urban maintenance and
Tax levying according to VAT paid actually 5%,7%
construction tax
Education surcharges Tax levying according to VAT paid actually 3%
Local education surcharges Tax levying according to VAT paid actually 1.5%,2%
Corporate income tax According to taxable income 10%, 25%
According to 70% of original value of house property (or
House property tax 1.2%, 8%, 12%
rental income) as the tax base;
Description of the income tax rates and tax subjects of different enterprises:
Tax subject Income tax rate
Linan Chunmanyuan Agricultural Development Co., Ltd. 10%
BGG Singapore International Trading Co., Ltd. 0%
2. Tax preference and approval
The four-level subsidiary of the Company, Hangzhou Linan Angel Food Co., Ltd. is a welfare enterprise. It enjoyed the VAT
immediate levy and refund preferential policy of RMB 35,000 per person per year for the disabled in 2015 and January to April,
2016, and the VAT limit immediate levy and refund preferential policy in the Notice about the Preferential Policy of Promoting the
Employment VAT for the Disabled (CS [2016] No.52) in May, 2016.
The four-level subsidiary of the Company, Hangzhou Linan Angel Food Co., Ltd. complies with the relevant regulations of the
Notice about the Preferential Policy of Corporate Income Tax for Employment of the Disabled (CS [2009] No.70) issued by Ministry
of Finance and State Administration of Taxation: if the enterprise arranges the disabled, on the basis of deduction of salary of
disabled workers, the tax can be deducted from full salary of disabled workers paid when calculating the taxable income.
The three-level subsidiary of the Company, BGG Singapore International Trading Co., Ltd. levies according to the territorial
53
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
principle. During the first consecutive three-year audit year, the Jingliang(Singapore) can enjoy the first three years of the
government tax exemption plan. Singapore's tax exemption plan is as follows: the first SGD 100,000 in annual income, less than
SGD 100,000: tax rate 0; SGD 100,001-300,000: tax rate 8.5%; more than SGD 300,000: tax rate 17%.
VI. Notes to items of consolidated financial statement
（The following units of money are RMB if they are not specified.）
1. Monetary funds
Items Balance at end of the period Balance at beginning of the year
Cash on hand 118,461.72 119,766.22
Cash in bank 919,954,581.45 937,214,125.42
Other monetary funds 77,635,661.19 77,104,771.79
Total 997,708,704.36 1,014,438,663.43
The restricted monetary funds are as follows:
Items Balance at end of the period Balance at beginning of the year
Time deposit or call deposit for pledge 8,000,000.00
Total 8,000,000.00
Note: As of June 30, 2018, The company's limited money funds for the subsidiary Beijing Grain Hebei used to pledge the loan
guarantee to China Agricultural Development Bank. See Note 48 for more details.
2. Financial assets that are measured at fair value and whose changes are included in the current profit and loss
Items Balance at end of the period Balance at beginning of the year
Futures contract 91,016,163.70 176,699,298.60
Income certificate 60,000,000.00
Total 151,016,163.70 176,699,298.60
3. Accounts receivable
(1) Accounts receivable disclosed on a category basis
Balance at end of the period
Category Book balance Bad debt provisions
Book value
Amount Ratio (%) Amount Ratio (%)
Accounts receivable with large amount and
separately-accrued bad debt provision
Accounts receivable with bad debt provision
accrued based on credit risk characteristics
portfolio
Portfolio 1 – Accounts receivable analyzed
119,109,999.18 592,886.67 118,517,112.51
based on aging
Portfolio 2- Accounts receivable of Related
6,171,423.79 6,171,423.79
parties
Total Portfolio 125,281,422.97 100.00 592,886.67 0.47 124,688,536.30
Accounts receivable with small amount and
separately-accrued bad debt provision
Total 125,281,422.97 100.00 592,886.67 ---- 124,688,536.30
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
(Continued)
Balance at beginning of the year
Book balance Bad debt provisions
Category
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Accounts receivable with large amount and
separately-accrued bad debt provision
Accounts receivable with bad debt provision
accrued based on credit risk characteristics
portfolio
Portfolio 1 - Accounts receivable analyzed
72,814,580.29 482,408.18 72,332,172.11
based on aging
Portfolio 2- Accounts receivable of Related
2,832,955.00 2,832,955.00
parties
Total Portfolio 75,647,535.29 99.45 482,408.18 0.64 75,165,127.11
Accounts receivable with small amount and
420,575.29 0.55 420,575.29 100.00
separately-accrued bad debt provision
Total 76,068,110.58 100.00 902,983.47 ----- 75,165,127.11
①Accounts receivable in the portfolio with bad debt provision accrued based on aging analysis method
Balance at end of the period
Aging
Accounts receivable Bad debt provisions Provision ratio (%)
Within 1 year
Including: within credit period 114,621,427.10 502,503.70 0
Credit period - 1 year (including 1 year) 4,365,152.08 70,648.97 2
1-2 years 33,000.00 1,650.00 5
2-3 years 90,420.00 18,084.00 20
3-4 years 50
4-5 years 80
Over 5 years 100
Total 119,109,999.18 592,886.67 __
Continued:
Balance at beginning of the year
Aging
Accounts receivable Bad debt provisions Provision ratio (%)
Within 1 year
Including: within credit period 63,757,518.38 0
Credit period - 1 year (including 1 year) 8,010,976.05 160,219.52 2
1-2 years 534,198.10 26,709.91 5
2-3 years 167,345.26 33,469.05 20
3-4 years 107,802.00 53,901.00 50
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance at beginning of the year
Aging
Accounts receivable Bad debt provisions Provision ratio (%)
4-5 years 143,159.00 114,527.20 80
Over 5 years 93,581.50 93,581.50 100
Total 72,814,580.29 482,408.18 __
② Bad debt provision for accrual, recovery or reversal in current period
The provision for bad debts returned during the period was 310,096.80 yuan.
The accounts receivable at the end of this report do not include the amount owed by shareholders holding more than 5 % of the
voting shares of the company.
(2) Top 5 Accounts receivable of balance at end of the period classified based on the debtors
Balance of accounts Proportion of balance of Balance of bad debt
Debtor name receivable at end of the accounts receivable at end provisions at end of the
period of the period (%) period
Guangdong Huamei Oil&Fat Co. LTD. 68,089,275.65 54.61
Beijing Wumart Business Group Co., Ltd. 9,838,722.72 7.89 13,990.34
Misimi Restaurant Management (Tianjin) Co.,
5,639,699.71 4.52 70,588.97
Ltd.
Storage Grain(Tianjin) Storage Logistics Co.,
2,596,921.00 2.08
Ltd.
Jinjiang Maidelong Outsourcing Co., Ltd.. 2,301,864.71 1.84
Total 88,466,483.79 70.94 84,579.31
4.Prepayments
(1) Prepayments are listed by age
Balance at end of the period Balance at beginning of the year
Aging
Amount Ratio (%) Amount Ratio (%)
Within 1 year 1,024,211,762.35 100.00 912,778,989.71 99.99
1-2 years 1,999.99 64,499.99 0.01
2-3 years
Over 3 years
Total 1,024,213,762.34 100.00 912,843,489.70 100.00
(2)Statement of reasons for the late settlement of significant advances that have been outstanding for more than one year
Name of unit Balance at end of the period Aging Reasons for delays in settlement
Liquid Air(Tianjin) Co. Ltd.. 1,999.99 1-2 years Cylinder deposit
Total 1,999.99
(3) Top 5 prepayment of balance at end of the period classified based on the debtors
Balance at end of the Proportion of prepayment balance
Unit name
period at end of the period (%)
Storage Grain(Tianjin) Storage Logistics Co., Ltd. 323,752,773.01 31.61
Hong Kong Yuheng Industrial Co., Ltd.. 207,077,178.00 20.22
Central Grain Reserve Nanjing Direct Warehouse Co., Ltd.. 112,935,680.00 11.03
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance at end of the Proportion of prepayment balance
Unit name
period at end of the period (%)
Tianjin Xingang Customs of the People's Republic of China 67,412,035.00 6.58
Central Reserve Grain Xiaogan Direct Treasury Co., Ltd.. 57,019,458.62 5.57
Total 768,197,124.63 75.00
There is no outstanding amount of advance payment from shareholders holding more than 5% voting shares of the company at the
end of this reporting period.
5. Interest receivable
(1) Interest receivable classification
Items Balance at end of the period Balance at beginning of the year
Time deposit 2,486,224.44 2,657,591.11
Total 2,486,224.44 2,657,591.11
6. Other accounts receivable
Disclosure of other accounts receivable by category
Balance at end of the period
Book balance Bad debt provisions
Category
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Other accounts receivable with large amount
and separately-accrued bad debt provision
Other accounts receivable with bad debt
provision accrued based on credit risk
characteristics portfolio
Portfolio 1- Accounts receivable analyzed
85,253,738.39 3,148,785.77 82,104,952.62
based on aging
Portfolio 2- Accounts receivable of Related
1,095,090.00 1,095,090.00
parties
Total Portfolio 86,348,828.39 98.53 3,148,785.77 3.65 83,200,042.62
Other accounts receivable with small
amount and separately-accrued bad debt 1,291,813.51 1.43 0.00 0.00 1,291,813.51
provision
Total 87,640,641.90 100 3,148,785.77 ----- 84,491,856.13
(Continued)
Balance at beginning of the year
Book balance Bad debt provisions
Category
Provision Book value
Amount Ratio (%) Amount ratio (%)
Other accounts receivable with large amount and
separately-accrued bad debt provision
Including: 1- Accounts receivable of other units
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance at beginning of the year
Book balance Bad debt provisions
Category
Provision Book value
Amount Ratio (%) Amount ratio (%)
Total amount of signal items with large amount
Other accounts receivable with bad debt provision accrued
based on credit risk characteristics portfolio
Portfolio 1 - Accounts receivable analyzed based on aging 75,440,422.35 3,271,112.88 72,169,309.47
Portfolio 2- Accounts receivable of Related parties 200.00 0.00 200.00
Total Portfolio 75,440,622.35 98.80 3,271,112.88 4.34 72,169,509.47
Other accounts receivable with small amount and
919,039.29 1.20 24,000.00 2.61 895,039.29
separately-accrued bad debt provision
Total 76,359,661.64 100.00 3,295,112.88 ----- 73,064,548.76
Description of classification of other receivables:
① Other accounts receivable in the portfolio with bad debt provision accrued based on aging analysis method
Balance at end of the period
Aging
Other accounts receivable Bad debt provisions Provision ratio (%)
Within 1 year
Including: within credit period 16,376,578.40 35,396.10 0
Credit period - 1 year (including 1 year) 8,387,159.99 41,389.67 2
1-2 years 60,440,000.00 3,022,000.00 5
2-3 years 20
3-4 years 50
4-5 years 80
Over 5 years 50,000.00 50,000.00 100
Total 85,253,738.39 3,148,785.77 __
Continued:
Balance at beginning of the year
Aging
Other accounts receivable Bad debt provisions Provision ratio (%)
Within 1 year
Including: within credit period 7,649,440.63 0.00 0
Credit period - 1 year (including 1
5,371,206.90 107,424.14 2
year)
1-2 years 62,361,774.82 3,118,088.74 5/
2-3 years 3,000.00 600.00 20
3-4 years 50
4-5 years 50,000.00 40,000.00 80
Over 5 years 5,000.00 5,000.00 100
Total 75,440,422.35 3,271,112.88 __
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
The provision for bad debts returned during the period was 146,327.11 Yuan.
There is no outstanding amount of advance payment from shareholders holding more than 5% voting shares of the company at
the end of this reporting period.
(2) Classification of other accounts receivable based on nature of funds
Nature of funds Book balance at end of the period Book balance at beginning of the period
Current account of related parties 0.00 200.00
Reserve (employees, departments) 599,694.34 214,904.46
Margin, deposit 2,571,489.45 1,777,074.61
Current account of the units 77,489,789.04 72,031,790.95
Current account of the individuals 90,000.00 53,306.67
Amount due from employees 415,773.23 380,963.06
Tax refund receivable 175,922.00 1,901,402.00
Borrowing and interest 4,300.00
Other payments 6,293,673.84 19.89
Total 87,640,641.90 76,359,661.64
(3) Top 5 other accounts receivable of balance at end of the period classified based on the debtors
Proportion of balance of Bad debt provisions
Nature of Balance at end of
Unit name Aging other accounts receivable at Balance at end of the
funds the period
end of the period (%) period
Provincial
Within 3
Hebei Provincial Department of reserve 3,094,300.00 3.53
months
Finance subsidies
Municipal
Within 3
Shijiazhuang Municipal Bureau reserve 3,034,000.59 3.46
months
of Finance subsidies
Related
Within 3
Beijing Nanyuan Plant Oil party 1,095,090.00 1.25
months
Factory transactions
Beijing Yangu Grain & Oil Unit
982,338.99 Within 1 year 1.12
Trading Company exchanges
Jinnan Street Finance Institute, Land Within 3
420,401.00 0.48
Lin 'an District, Hangzhou purchases months
Total — 8,626,130.58 — 9.84
7. Inventory
(1) Classification of inventory
Balance at end of the period
Items Inventory falling price
Book balance Book value
reserves
Raw materials 310,304,788.48 173,907.66 310,130,880.82
Revolving material 3,456,296.39 3,456,296.39
Merchandise inventory 1 ,100,459,507.07 3,047,104.20 1,097,412,402.87
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Development costs 7,000,000.00 7,000,000.00
Developed products 16,497,730.12 11,673,694.67 4,824,035.45
Other 605,035.42 605,035.42
Goods in transit
Commissioned processing
Reserve oil round storage 196,974,229.00 196,974,229.00
Total 1,635,297,586.48 14,894,706.53 1,620,402,879.95
(Continued)
Balance at beginning of the year
Items
Book balance Falling price reserve Book value
Raw materials 368,354,117.16 173,907.66 368,180,209.50
Revolving material 3,027,491.97 3,027,491.97
Merchandise inventory 632,073,799.20 3,065,580.89 629,008,218.31
Development costs
Developed products 16,497,730.12 11,673,694.67 4,824,035.45
Other
Goods in transit 140,113,625.93 140,113,625.93
Commissioned processing 615,202.96 7,520.05 607,682.91
Reserve oil round storage 248,197,500.00 248,197,500.00
Total 1,408,879,467.34 14,920,703.27 1,393,958,764.07
(2) Inventory falling price reserve
Balance at beginning Increase in the current period Decrease in the current period Balance at end of
Items
of the year Accrual Other Revert or resell Other the period
Developed products 11,673,694.67 11,673,694.67
Raw materials 173,907.66 173,907.66
Merchandise inventory 3,065,580.89 18,476.69 3,047,104.20
Commissioned
7,520.05 7,520.05
processing
Total 14,920,703.27 25,996.74 14,894,706.53
The book value of the inventory used as collateral at the end of the period was 4,824,035.45 yuan.
8. Other current assets
Items Balance at end of the period Balance at beginning of the year
Financial products 32,800,000.00 106,000,000.00
Prepaid taxes 83,033.47 455,289.48
Deductible VAT input tax 62,945,717.28 59,411,949.22
Changes in fair value of hedging item 24,594,671.70
Total 120,423,422.45 165,867,238.70
9. Available-for-sale financial assets
(1) Available-for-sale financial assets
Balance at end of the period Balance at beginning of the year
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance at end of the period Balance at beginning of the year
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Available-for-sale
30,500,000.00 10,500,000.00 20,000,000.00 30,500,000.00 10,500,000.00 20,000,000.00
equity instruments
Including: Measured by
30,500,000.00 10,500,000.00 20,000,000.00 30,500,000.00 10,500,000.00 20,000,000.00
cost
Total 30,500,000.00 10,500,000.00 20,000,000.00 30,500,000.00 10,500,000.00 20,000,000.00
(2) Available-for-sale financial assets measured by cost at end of the period
Book balance
Invested units Increase in the Decrease in the
Year Begin. Period End
current period current period
Hainan General Chamber of Commerce 500,000.00 500,000.00
Zhongwang Cuke Technology Investment Co., Ltd. 10,000,000.00 10,000,000.00
Chongqing Longjinbao Network Technology Co., Ltd. 20,000,000.00 20,000,000.00
Total 30,500,000.00 30,500,000.00
(Continued)
Provision for impairment Proportion
of shares Current
Increase in Decrease in
Invested units held in cash
Year Begin the current the current Period End
invested bonus
period period
units (%)
Hainan General Chamber of Commerce 500,000.00 500,000.00 6.67
Zhongwang Cuke Technology
10,000,000.00 10,000,000.00 10
Investment Co., Ltd.
Chongqing Longjinbao Network
13.559
Technology Co., Ltd.
Total 10,500,000.00 10,500,000.00 —
10.Long-term equity investment
Changes in this period
Balance at Investment gains
Other Changes in
Invested units beginning of the Additional Reduced and losses
comprehensive other
year investment investment recognized under
income adjustment equity
the equity method
I. Cooperative enterprises
Beijing Zhengda Feed Co., Ltd. 58,936,076.18 5,291,567.16
Subtotal 58,936,076.18 5,291,567.16
II. joint venture
Storage Grain(Tianjin) Storage 115,653,625.56 1,639,957.94
Logistics Co., Ltd.
Subtotal 115,653,625.56 1,639,957.94
Total 174,589,701.74 6,931,525.10
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
(Continued)
Changes in this period
Balance of
Declaring distribution Balance at end
Invested units Provision for impairment provision
of cash dividends or Others of the period
impairment accrued at end of the period
profits
I.Cooperative enterprises
Beijing Zhengda Feed Co., Ltd. 64,227,643.34
Subtotal 64,227,643.34
II. joint venture
Storage Grain(Tianjin) Storage
117,293,583.50
Logistics Co., Ltd.
Subtotal 117,293,583.50
Total 181,521,226.84
The company's long-term equity investment is not limited to the ability to transfer funds to investment enterprises.
11. Investment real estate
(1) Investment real estate adopting cost measurement mode
Construction in
Items Houses, buildings Land use rights Total
progress
I. Original book value
1. Balance at beginning of the year 42,634,619.63 42,634,619.63
2. Increase in the current period
3. Decrease in the current period
4. Balance at end of the period 42,634,619.63 42,634,619.63
II. Accumulated depreciation & amortization
1. Balance at beginning of the year 7,171,923.29 7,171,923.29
2. Increase in the current period 806,875.40 806,875.40
(1) Accrual or amortization 806,875.40 806,875.40
3. Decrease in the current period
4. Balance at end of the period 7,978,798.69 7,978,798.69
III. Provision for impairment
1. Balance at beginning of the year 453,843.72 453,843.72
2. Increase in the current period
3. Decrease in the current period
4. Balance at end of the period 453,843.72 453,843.72
IV. Book value
1. Book value at end of the period 34,201,977.22 34,201,977.22
2. Book value at beginning of the year 35,008,852.62 35,008,852.62
(2) Amount of investment real estate without property ownership certificate and the reason for failure to obtain such certificate
Items Book value Reason for failure to obtain the property ownership certificate
House buildings 121,464.40 Affiliated houses without property ownership certificate
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Items Book value Reason for failure to obtain the property ownership certificate
Total 121,464.40
(3) A description of the Investment real estate
The book value of investment real estate used for mortgage at end of the period is RMB 5,930,012.63.
12. Fixed assets
(1) Fixed assets
Houses and Mechanical Transportatio Electronic Office Other
Items Total
buildings equipment n Equipment equipment equipment equipment
I. Original book
value
1. Balance at
beginning of the 1,071,025,127.22 342,501,582.09 23,964,244.77 12,294,299.24 1,995,115.03 362,817,865.15 1,814,598,233.50
year
2. Increase in the
4,994,984.08 14,890,216.45 581,211.42 566,985.52 32,145.60 100,924.84 21,166,467.91
current period
(1) Purchase 4,994,984.08 14,413,293.38 581,211.42 566,985.52 32,145.60 100,924.84 20,689,544.84
(2) Construction in
476,923.07 476,923.07
progress transfer-in
(3) Other
transfer-out
3. Decrease in the
430,150.31 1,548,414.35 1,314,884.77 36,695.32 17,614.53 3,347,759.28
current period
(1) Disposal or
430,150.31 1,548,414.35 1,314,884.77 36,695.32 17,614.53 3,347,759.28
scrap
(2) Other
transfer-out
4. Balance at end of
1,075,589,960.99 355,843,384.19 23,230,571.42 12,824,589.44 2,027,260.63 362,901,175.46 1,832,416,942.13
the period
II. Accumulated
depreciation
1. Balance at
beginning of the 224,812,333.11 107,586,496.90 16,789,806.57 7,712,282.25 976,268.21 114,459,916.24 472,337,103.28
year
2. Increase in the
20,147,393.56 24,577,041.14 667,289.95 1,033,067.02 126,839.98 369,702.11 46,921,333.76
current period
(1) Accrual 20,147,393.56 24,577,041.14 667,289.95 1,033,067.02 126,839.98 369,702.11 46,921,333.76
(2)Other
3. Decrease in the
200,238.23 1,180,488.18 1,092,055.67 34,223.12 16,927.99 2,523,933.19
current period
(1) Disposal or
200,238.23 1,180,488.18 1,092,055.67 34,223.12 16,927.99 2,523,933.19
scrap
(2) Other
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Houses and Mechanical Transportatio Electronic Office Other
Items Total
buildings equipment n Equipment equipment equipment equipment
transfer-out
4. Balance at end of
244,759,488.44 130,983,049.86 16,365,040.85 8,711,126.15 1,103,108.19 114,812,690.36 516,734,503.85
the period
III. Provision for
impairment
1. Balance at
beginning of the 7,590,384.72 1,260,599.12 8,850,983.84
year
2. Increase in the
current period
3. Decrease in the
173,890.18 173,890.18
current period
4. Balance at end of
7,590,384.72 1,086,708.94 8,677,093.66
the period
IV. Book value
1. Book value at end
823,240,087.83 223,773,625.39 6,865,530.57 4,113,463.29 924,152.44 248,088,485.10 1,307,005,344.62
of the period
2. Book value at
beginning of the 838,622,409.39 233,654,486.07 7,174,438.20 4,582,016.99 1,018,846.82 248,357,948.91 1,333,410,146.38
year
(2) Temporarily idle fixed assets
Items Original book value Accumulated depreciation Provision for impairment Book value
Houses and buildings 278,766.79 173,739.65 91,088.80 13,938.34
Mechanical equipment 3,918,666.43 2,656,680.59 1,066,052.51 195,933.33
Total 4,197,433.22 2,830,420.24 1,157,141.31 209,871.67
(3) Fixed assets without property ownership certificate
Items Book value Reason for failure to obtain the property ownership certificate
Failure to obtain the property ownership certificate is because the fixed
House buildings 6,175,666.06 assets is used for storage of special equipment and sundries and used as the
other supporting house for operation.
Total 6,175,666.06
(4) A description of the Fixed assets
The book value of fixed assets used for mortgage at end of the period is RMB 3,019,795.52.
13. Construction in progress
(1) Construction in progress
Balance at end of the period Balance at beginning of the year
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance at end of the period Balance at beginning of the year
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Equipment installation
6,705,308.91 6,705,308.91 12,436,003.53 12,436,003.53
engineering
Technical renovation 1,045,296.55 1,045,296.55 301,669.48 301,669.48
Construction 544,713.74 544,713.74
Total 8,295,319.20 8,295,319.20 12,737,673.01 12,737,673.01
(2) Changes of important projects under construction in the current period
Balance at Increase in the Amount of fixed assets Other decrease in
Balance at end
Name of project beginning of the current period transferred -in during amount during this
of the period
year Amount this period period
Grain & Oil project in Tianjin 1,484,243.56 1,484,243.56
Second factory walnut cake
4,300,657.45 65,370.00 -937,695.89 3,428,331.56
production line
Chocolate Layer Device Set 100,000.00 -100,000.00
2 sets of molding equipment 980,000.00 -980,000.00
2 sets of ovens 2,350,000.00 89,320.00 -2,439,320.00
Food conveyor line 881,000.00 -881,000.00
Second factory baked potato
1,102,715.52 108,030.00 -513,613.76 697,131.76
production line
Total 11,198,616.53 262,720.00 -5,851,629.65 5,609,706.88
14. Intangible assets
(1) Intangible assets
Items Software Land use rights Trademark right Others Total
I. Original book value
1. Balance at beginning of the year 3,409,534.38 318,161,901.57 154,841,200.00 662,400.00 477,075,035.95
2. Increase in the current period
(1) Purchase
(3) Others
3. Decrease in the current period 720,585.84 720,585.84
(1) Disposal
(2) Others 720,585.84 720,585.84
4. Balance at end of the period 3,409,534.38 317,441,315.73 154,841,200.00 662,400.00 476,354,450.11
II. Accumulated amortization
1. Balance at beginning of the year 2,345,889.44 42,329,120.31 32,893,594.13 77,568,603.88
2. Increase in the current period 249,945.96 3,418,781.76 3,856,962.86 7,525,690.58
(1) Accrual 249,945.96 3,418,781.76 3,856,962.86 7,525,690.58
(2) Others
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Items Software Land use rights Trademark right Others Total
3. Decrease in the current period 8,868.76 8,868.76
(1) Others 8,868.76 8,868.76
4. Balance at end of the period 2,595,835.40 45,739,033.31 36,750,556.99 85,085,425.70
III. Provision for impairment
1. Balance at beginning of the year 662,400.00 662,400.00
2. Increase in the current period
3. Decrease in the current period
(1) Disposal
4. Balance at end of the period 662,400.00 662,400.00
IV. Book value
1. Book value at end of the period 813,698.98 271,702,282.42 118,090,643.01 390,606,624.41
2. Book value at beginning of the year 1,063,644.94 275,832,781.26 121,947,605.87 398,844,032.07
15. Goodwill
Decrease in the current
Balance at Increase in the current period
Name of invested units or matters period Balance at end
beginning of the
creating goodwill Created due to of the period
year Others Disposal Others
business combination
Acquired Equity of Zhejiang
191,394,422.51 191,394,422.51
Xiaowangzi Food Share Co.,Ltd.
Total 191,394,422.51 191,394,422.51
Note: (1)Creation of goodwill of the company mainly lies in acquisition of equity of Zhejiang Xiaowangzi Food Share Co.,Ltd.
(2)Test process, parameters and recognition method of impairment loss of goodwill
The company identified all assets of Zhejiang Little Prince Food Co., Ltd. as an asset group. The recoverable amount of this
asset group is based on the cash flow forecast for the last five years and is calculated based on the present value of the expected
future cash flow of the asset group. In the impairment test, the key data such as the estimated price of the product, sales cost, and
other related costs used in the cash flow forecast are determined based on the company's historical experience and the forecast of
market development. The discount rate used in the cash flow forecast is determined by reference to the current market currency time
value and the specific risk of the related asset group. The company's test of the recoverable amount of goodwill mentioned above
shows that there is no impairment loss of goodwill.
16.Long-term deferred expenses
Balance at Deferred expenses
Increase in the Other decrease Balance at end
Items beginning of in the current
current period in amount of the period
the year period
Renovation costs incurred by the original
283,591.39 23,645.61 259,945.78
subsidiary
Reconstruction of of Majuqiao Plant of
16,858,945.99 338,306.58 16,520,639.41
Guchuan Edible oil Company
Eisen Lvbao house reconstruction 238,787.59 29,519.82 209,267.77
Lin'an Chunman Garden land rental fee 5,309,496.00 56,484.00 5,253,012.00
Suzhou Gongfujia Animation Production 8,737,864.10 8,737,864.10
Payment to Hualian Store for decoration fee 395,961.97 39,596.20 356,365.77
Macao Center shop decoration fee 435,232.36 43,523.24 391,709.12
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Peace Joy City decoration fee 1,234,029.63 133,938.46 1,100,091.17
Longde Plaza Store fire protection
37,277.64 903,460.56 94,073.82 846,664.38
engineering cost
Taiguli bakery decoration fee 323,669.91 32,366.99 291,302.92
Total 33,247,595.28 1,510,721.86 791,454.72 33,966,862.42
17. Deferred income tax assets/liabilities
(1) Details of deferred income tax assets without offsetting
Balance at end of the period Balance at beginning of the year
Items Deductible temporary Deferred income tax deductible temporary
Deferred income tax assets
difference assets difference
Provision for assets impairment 7,853,908.72 1,963,477.18 5,601,872.74 1,400,468.18
Deductible loss 2,415,745.88 603,936.47 4,693,778.62 1,173,444.66
Changes in fair value of
financial assets measured at fair 25,706,371.08 6,426,592.77 18,363,036.93 4,590,759.23
value
Deferred income 1,800,000.00 450,000.00 1,800,000.00 450,000.00
Payroll payable 26,257,600.00 6,564,400.00 26,257,600.00 6,564,400.00
Total 64,033,625.68 16,008,406.42 56,716,288.29 14,179,072.07
(2) Details of liabilities for deferred income tax assets without offsetting
Balance at end of the period Balance at beginning of the year
Items Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Valuation of financial instruments and
46,013,391.70 11,503,347.93 16,734,404.50 4,183,601.13
derivative financial instruments
The difference between the fair value of
the identifiable net assets and its net
202,623,495.91 50,655,873.98 208,008,300.08 52,002,075.02
book assets of the acquiree recognized
by the business combination
Total 248,636,887.61 62,159,221.91 224,742,704.58 56,185,676.15
(3) Details of unrecognized deferred income tax assets without offsetting
Items Balance at end of the period Balance at beginning of the year
Deductible loss 14,294,910.78 14,294,910.78
Provision for assets impairment 33,984,154.44 33,984,154.44
Total 48,279,065.22 48,279,065.22
(4) Deductible loss of the unrecognized deferred income tax assets will expire in the following year
Balance at beginning of the
Year Balance at end of the period Note
year
2018
2019
2020 5,769,102.97 5,769,102.97
2021 4,504,020.42 4,504,020.42
2022 4,021,787.39 4,021,787.39
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Total 14,294,910.78 14,294,910.78
18. Other non-current assets
Items Balance at end of the period Balance at beginning of the year
Prepaid equipment and construction funds 3,277,634.07
Total 3,277,634.07
19. Short-term loans
(1) Short-term loan classification
Items Balance at end of the period Balance at beginning of the year
Guaranteed loan 349,667,752.39 795,671,362.73
Credit loan 1,647,896,002.12 1,211,500,000.00
Total 1,997,563,754.51 2,007,171,362.73
20. Note payable
Category Balance at end of the period Balance at beginning of the year
bank's acceptance bill 36,397,048.50 83,154,229.20
Total 36,397,048.50 83,154,229.20
21. Accounts payable
(1) Payable by age
Ageing Balance at end of the period Balance at beginning of the year
Within 1 year 513,589,649.85 312,103,106.41
1-2 years 1,198,725.24 1,442,862.75
2-3 years 198,012.14 629,077.29
More than 3 years 2,653,452.79 3,363,881.82
Total 517,639,840.02 317,538,928.27
(2)List of accounts payable
Items Balance at end of the period Balance at beginning of the year
Material cost payable 442,560,902.05 300,676,736.60
Project funds payable 1,140,875.71 941,089.67
Equipment funds payable 5,391,724.45 6,461,633.94
Loan guarantee 65,442,009.47 4,242,759.55
Others 2,371,699.21 5,216,708.51
Processing fees payable 732,629.13
Total 517,639,840.02 317,538,928.27
(3) Significant accounts payable over a year old
Reasons for non-reimbursement or
Name of unit Balance at end of the period
non-carry-over
Jiangsu Guoan Fire Technology Co., Ltd.. 176,769.73 Unsettled
Tianjin Pipe Fluid Equipment Co. Ltd.. 134,204.28 Unsettled
Tianjin Hengyi Construction Decoration
94,372.10 Unsettled
Engineering Co. Ltd..
Liaoyang Chengda Oil Equipment Installation
66,275.94 Unsettled
Engineering Co. Ltd..
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Tianjin Oriental Yuhong Waterproof
55,830.60 Unsettled
Engineering Co. Ltd..
Cities Green North Environmental Technology
49,578.00 Unsettled
Co. Ltd..
Anhui Wencai Ma Oil Co., Ltd.. 100,000.00 Liquidation in bankruptcy, no public accounts
Dinghai Jingji Dafeng Co. Ltd.. 80,310.00 Equipment warranty
Shanghai Seven Construction 790,462.78 Unsettled
Zhanjiang Construction Foundation Company 358,272.91 Unsettled
Hefeng Company 310,300.00 Unsettled
Shantou Jian 'an Port Construction Company 214,844.46 Unsettled
Beijing Weijia Ai Consulting Co., Ltd.. 185,000.00 Unsettled
Total 2,616,220.80
22. Advances from customers
(1) By ageing of accounts received in advance
Ageing Balance at end of the period Balance at beginning of the year
Within 1 year 435,790,714.29 212,070,178.77
1-2 years 115,283.94 14,550.00
2-3 years
More than 3 years 38,896.41 39,418.61
Total 435,944,894.64 212,124,147.38
(2)List of advances from customers
Items Balance at end of the period Balance at beginning of the year
Sales revenue received in advance 435,545,998.23 211,148,248.97
Others 398,896.41 975,898.41
Total 435,944,894.64 212,124,147.38
23. Payroll payable
(1) List of payroll payable
Balance at
Increase in the Decrease in the current Balance at end of the
Items beginning of the
current period period period
year
I. Short-term compensation 28,869,807.85 114,866,991.67 134,519,058.64 9,217,740.88
II. Post-employment Benefits - Defined
1,645,436.22 9,764,532.42 10,181,720.88 1,228,247.76
Withdrawal Plan
III. Dismission welfare 246,787.46 143,100.84 186,012.84 203,875.46
IV. Other benefits due within one year
Total 30,762,031.53 124,774,624.93 144,886,792.36 10,649,864.10
(2) List of short-term compensation
Balance at beginning Increase in the Decrease in the Balance at end of
Items
of the year current period current period the period
1. Wages, bonuses, allowances and subsidies 23,472,311.96 90,231,527.82 109,697,070.05 4,006,769.73
2. Welfare expense of employee 2,891,197.01 2,872,649.51 18,547.50
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Balance at beginning Increase in the Decrease in the Balance at end of
Items
of the year current period current period the period
3. Social insurance expenditure 1,324,726.19 11,645,105.18 11,543,292.69 1,426,538.68
Including: Medical insurance premiums 487,861.28 6,155,684.59 6,331,321.97 312,223.90
Work-related injury insurance premiums 243,854.07 808,596.50 831,261.20 221,189.37
Maternity insurance premium 48,976.63 487,182.47 494,500.59 41,658.51
Others 544,034.21 4,193,641.62 3,886,208.93 851,466.90
4. Housing accumulation fund 360,036.42 4,488,048.42 4,594,087.20 253,997.64
5. Labor Union Funds and Staff Education Funds 3,706,067.66 1,865,824.05 2,828,490.44 2,743,401.27
6. Other Short-term compensation 6,665.62 3,745,289.19 2,983,468.75 768,486.06
Total 28,869,807.85 114,866,991.67 134,519,058.64 9,217,740.88
(3) List of defined contribution plan
Balance at
Increase in the Decrease in the Balance at end of the
Items beginning of the
current period current period period
year
1. Basic endowment insurance 1,537,935.17 8,762,134.62 9,150,308.90 1,149,760.89
2. Unemployment insurance expense 55,433.85 286,670.02 304,074.38 38,029.49
3. Payment for enterprise annuity 52,067.20 715,727.78 727,337.60 40,457.38
Total 1,645,436.22 9,764,532.42 10,181,720.88 1,228,247.76
24. Taxes payable
Items Balance at end of the period Balance at beginning of the year
VAT 7,559,542.43 5,589,806.18
Urban maintenance and construction tax 615,049.23 487,700.32
Corporate income tax 14,101,666.01 26,453,811.72
Property tax 1,060,009.71 1,543,662.49
Land use tax 635,945.54 73,972.59
Individual income tax 201,519.45 1,440,170.29
Education surcharge 219,057.83 194,075.05
Local education surcharge 198,181.62 160,997.53
Stamp duty 208,397.50 727,764.60
Others 17,015.58 183,178.41
Total 24,816,384.90 36,855,139.18
25. Interest payable
Items Balance at end of the period Balance at beginning of the year
Inter-enterprise loan interest other than related parties 68,025,917.31 71,842,734.54
Entrusted loan interest 10,449,888.49 10,449,888.49
Bank loan interest 8,,913,347.60 3,771,588.28
Total 87,407,153.40 86,064,211.31
26. Dividends payable
Items Balance at end of the period Balance at beginning of the year
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Items Balance at end of the period Balance at beginning of the year
Legal person stock dividends payable 11,197,317.01 3,397,317.01
Total 11,197,317.01 3,397,317.01
27. Other payables
(1) Ageing by other accounts payable
Ageing Balance at end of the period Balance at beginning of the year
Within 1 year 139,930,083.78 194,580,280.46
1-2 years 121,893,499.37 173,939,221.18
2-3 years 18,244,144.23 49,143,344.81
More than 3 years 39,898,266.75 34,275,447.90
Total 319,965,994.13 451,938,294.35
(2)List of other payables by nature of payment
Items Balance at end of the period Balance at beginning of the year
Borrowing and interest 28,976,545.69 47,777,345.69
Current account of related party 194,728,387.66 189,160,957.19
Current account of units 71,463,499.88 98,020,263.84
Current account of the individuals 2,048,700.13 131,535.46
Various kinds of insurance for workers 139,170.22 547,454.06
Employees loan payable 580,588.79 495,579.02
Margin, deposit 16,690,793.44 104,307,068.72
Warehouse rental, storage fees 3,086,858.00 0.00
Others 2,251,450.32 11,498,090.37
Total 319,965,994.13 451,938,294.35
(3) Other important payables with age over 1 year
Reasons for outstanding or
Items Balance at end of the period
carry over
Henan Jingu Industrial Development Co., Ltd. 1,486,921.06 Project not accepted
Tianjin Ruiheng Shunda International Trade Co., Ltd.. 200,000.00 Earnest money
Shijiazhuang Jinding Grain Oil Sales Co. Ltd.. 200,000.00 Earnest money
Guantao County Huabo Feed Wholesale Department 200,000.00 Earnest money
Cangzhou Xinhai Feed Trade Co. Ltd.. 200,000.00 Earnest money
Shenyang Annual Feed Co., Ltd.. 200,000.00 Earnest money
China Canal Economic Development Zone Hongxin Soymeal
200,000.00 Earnest money
Distribution Department
Dongchangfu District, Liaocheng City 200,000.00 Earnest money
Zhongshan Dingsheng Food Machinery Co. Ltd.. 15,500.00 Contract warranty
Lin 'an Xiaoguang Handling Services Department 15,000.00 Contract warranty
Hangzhou Lin 'an Fengyuan Window Co., Ltd.. 95,075.40 Contract warranty
Foshan Haitegaozhi Machinery Co. Ltd.. 21,600.00 Contract warranty
Zhuangkongchuan 10,000.00 Contract warranty
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Reasons for outstanding or
Items Balance at end of the period
carry over
Zhouchaobin 10,000.00 Contract warranty
Beijing Xinxing Real Estate Development Corporation 10,086,990.16 Earnest money
Total 13,141,086.62
28. Other current liabilities
Items Balance at end of the period Balance at beginning of the year
Changes in fair value of hedging item 25,996,671.50 90,215,292.43
Total 25,996,671.50 90,215,292.43
29. Long-term payroll payable
(1) Long-term payroll payable table
Items Balance at end of the period Balance at beginning of the year
I. Post-employment Benefits - Net liabilities of the
defined benefit plan
II. Dismission welfare 533,609.91
III. Other long-term benefits 34,257,600.00 26,257,600.00
Total 34,257,600.00 26,791,209.91
30. Deferred income
Balance at
Increase in the Decrease in the Balance at end of Reason for generation of
Items beginning of the
current period current period the period income
year
governmental
78,961,972.67 845,880.18 78,116,092.49
subsidy
Total 78,961,972.67 845,880.18 78,116,092.49 —
31. Share capital
Changes in this period plus (+) less (-)
Balance at Balance at
Conversion of
Items beginning of New shares Shares end of the
accumulation Others Subtotal
the year offering distribution period
fund into shares
1. Shares with restricted
condition for sales
(1) State-owned shares
(2) State-owned legal person
236,216,509.00 236,216,509.00
holding shares
(3) Other domestic capital
24,127,951.00 24,127,951.00
holding shares
Including:
Domestic legal person holding
24,127,951.00 24,127,951.00
shares
Domestic natural person holding
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Changes in this period plus (+) less (-)
Balance at Balance at
Conversion of
Items beginning of New shares Shares end of the
accumulation Others Subtotal
the year offering distribution period
fund into shares
shares
(4) Foreign shareholding
Including:
Foreign legal person holding
shares
Foreign natural person holding
shares
Total shares with restricted
260,344,460.00 260,344,460.00
condition for sales
2. Outstanding shares with
unlimited condition for sales
(1) Common stock RMB 360,470,904.00 360,470,904.00
(2) Domestically listed foreign
64,975,000.00 64,975,000.00
shares
(3) Foreign shares listed
overseas
(4) Others
Total outstanding shares with
425,445,904.00 425,445,904.00
unlimited condition for sales
Total 685,790,364.00 685,790,364.00
32. Capital reserve
Balance at beginning Increase in the current Decrease in the current Balance at end of
Items
of the year period period the period
Capital premium (capital stock
1,243,771,440.74 1,243,771,440.74
premium)
Transfer-in of capital reserve under
112,316,357.36 112,316,357.36
the original system
Other capital reserve 236,453,784.63 236,453,784.63
Total 1,592,541,582.73 1,592,541,582.73
33. Surplus reserve
Balance at beginning of Increase in the current Decrease in the Balance at end of the
Items
the year period current period period
Statutory surplus reserve 84,487,609.05 84,487,609.05
Discretionary surplus reserve 37,634,827.93 37,634,827.93
Total 122,122,436.98 122,122,436.98
34. Undistributed profit
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Items Amount in the current period
Undistributed profit at the end of the previous year before adjustment -299,111,700.34
Total amount of undistributed profits at the beginning of the adjustment period (plus +
less -)
Undistributed profit at the beginning of the period after adjustment -299,111,700.34
Plus: net profit attributable to shareholders of the parent company during the current
59,918,995.68
period
Less: withdrawal of statutory surplus reserve
Withdrawal of discretionary surplus reserve
Withdrawal of generic risk reserve
Common stock dividends payable
Common stock dividends converted to share capital
Plus: Surplus reserves make up for losses
Other (formed by adjustment during the retroactive period for merger of companies
under the common control of the company)
Undistributed profit at the end of the period -239,192,704.66
35. Operating income and cost
(1) Operating income and cost
Amount in the current period Amount in the previous period
Items
Income Cost Income Cost
Main business 3,621,653,806.72 3,331,327,381.84 3,255,425,650.22 2,904,610,505.32
Other business 17,972,172.69 4,000,742.48 27,136,626.71 3,671,830.98
Total 3,639,625,979.41 3,335,328,124.32 3,282,562,276.93 2,908,282,336.30
(2) Main business (on an industry or business basis)
Amount in the current period Amount in the previous period
Name of industry (or business)
Income Cost Income Cost
Oil and fat 3,202,820,489.71 3,043,367,152.88 2,496,731,111.28 2,357,796,256.75
Food manufacturing industry 418,833,317.01 287,960,228.96 378,494,864.98 263,656,738.4
Real estate development 380,199,673.96 283,157,510.17
Total 3,621,653,806.72 3,331,327,381.84 3,255,425,650.22 2,904,610,505.32
(3) Main business (on a region basis)
Amount in the current period Amount in the previous period
Name of region
Income Cost Income Cost
North China 1,838,990,286.16 1,708,912,769.17 1,911,969,364.03 1,778,396,883.44
East China 818,033,025.18 694,976,320.17 660,757,003.67 557,487,199.42
South China 684,479,152.81 665,613,631.04 296,093,488.93 288,198,445.64
Northeast 135,206,322.90 124,218,390.58 145,832,932.03 128,325,340.09
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount in the current period Amount in the previous period
Name of region
Income Cost Income Cost
Central China 109,128,146.18 102,369,058.66 227,252,933.97 138,932,290.00
Northwest 35,816,873.49 35,237,212.22 13,519,927.59 13,270,346.74
Total 3,621,653,806.72 3,331,327,381.84 3,255,425,650.22 2,904,610,505.32
36. Tax and surtax
Items Amount in the current period Amount in the previous period
Business tax
Urban maintenance and construction tax 2,936,383.93 4,166,018.66
Education surcharge 1,294,856.42 2,156,691.17
Local education surcharge 863,237.61 857,929.57
Land value-added tax 14,045,896.99
Real estate tax 5,110,776.57 2,355,519.98
Land use tax 1,438,247.18 843,067.89
Vehicle and vessel use tax 22,417.32 15,988.72
Stamp duty 2,414,561.10 1,151,492.94
Resource tax 52,271.80
Other taxes and fees 179,394.43 474,697.53
Total 14,312,146.36 26,067,303.45
Note: Please refer to Note V. Taxes for details of payment standard concerning various taxes and surtaxes.
37. Sales expenses
Amount in the current Amount in the previous
Items
period period
Employee compensation (including wages, bonuses, welfare fees,
27,598,228.55 25,990,748.86
allowances, five social insurance and one housing fund, etc.)
Advertising expense 165,235.49 2,481,099.21
Repair charge 673,256.54 121,847.85
Packing expense 317,695.62 207,577.26
Transportation expense 10,368,672.82 7,749,387.51
Loading and unloading 692,832.51 171,845.17
Utilities cost 961,919.38 1,040,388.06
Vehicle cost 594,269.55 739,578.38
Warehouse custodian fee 9,355,132.36 7,519,655.24
Test & inspection cost 140,940.26 47,649.71
Business insurance expense 71,511.78 128,644.26
Cost of sales promotion 13,665,004.15 17,913,199.48
Business entertainment 263,996.29 330,949.70
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount in the current Amount in the previous
Items
period period
Labor protection fee 2,143,190.02 2,059,291.16
Commodity wastage 604.89 9,496.00
Sample and product wastage 3,250,164.32 2,480,472.48
Other expense 3,602,435.92 7,888,026.08
Sales and service charge 5,553,538.85 4,513,275.45
Trademark royalties 231,410.08 246,148.74
Office expenses 107,484.77
Low value consumables 4,456.00
Travel expense 3,788,163.68 3,363,834.82
Depreciation cost 8,072,866.53 8,017,744.72
Rental costs 2,999.00 2,749.34
Total 91,626,009.36 93,023,609.48
38. Administration expense
Amount in the current Amount in the previous
Items
period period
Employee compensation (including wages, bonuses, welfare fees,
46,673,511.00 58,283,074.81
allowances, five social insurance and one housing fund, etc.)
Worker’s insurance expense 610,543.04 344,230.33
Company funds 3,824,054.32 2,653,634.96
Business insurance expense 220,656.54 900,664.54
Vehicle cost 1,856,806.62 1,543,161.96
Depreciation cost 7,415,406.80 13,067,938.97
Repair charge 1,284,428.88 926,395.12
Expense-based tax 143,407.29 399,749.59
Amortization of assets 10,627,573.46 16,255,601.08
Material consumption 180,710.84 112,567.77
Agency hiring fee 2,237,422.71 12,274,369.14
Scientific and research expense 723,660.50 496,996.92
Information network fee 962,250.84 344,153.42
Labor protection fee 168,872.35 194,173.23
Environmental protection expenditure 534,068.21 426,266.25
Safety protection expense 387,490.37 192,460.05
Conference expense 1,220,601.05 60,423.05
Business entertainment 1,137,223.75 2,303,970.04
Travel expense 516,987.65 1,747,878.99
Office expense 753,838.84 829,842.35
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount in the current Amount in the previous
Items
period period
Rental expense 692,837.00 3,521,160.90
Consulting service fee 547,969.13 173,439.88
Other expense 942,844.73 4,676,076.08
Utilities cost 381,333.68 156,644.66
Coal fire heating fee 54,273.50 1,593,948.34
Total 84,098,773.10 123,478,822.43
39. Financial expense
Items Amount in the current period Amount in the previous period
Interest expense 52,050,362.69 14,952,970.33
Less: interest income 15,797,297.89 5,327,483.74
Financial consultant fee 773,584.91
Exchange gain or loss -1,054,003.29 319,607.00
Service charge 305,255.33 679,103.18
Others 263,074.63
Total 35,504,316.84 11,660,856.31
40. Assets impairment loss
Items Amount in the current period Amount in the previous period
Bad debt loss -456,423.00 -4,149,548.16
Loss on inventory depreciation -25,996.74 -1,081,066.14
Loss on construction depreciation in progress
Loss on long-term equity investment depreciation
Loss on available-for-sale assets depreciation
Loss on fixed assets depreciation -8,018.35
Total -482,419.74 5,238,632.65
41. Income from fair value variation
Amount in the current Amount in the previous
Source of income for generation of fair value variation
period period
Financial assets measured at fair value and changes of which included in
13,890,967.44 -8,753,227.45
current profit and loss
Including: income from fair value variation arising from derivative
13,890,967.44 -8,753,227.45
financial instruments
Total 13,890,967.44 -8,753,227.45
42. Income from investment
Amount in the current Amount in the previous
Items
period period
Long-term equity investment income accounted for by the equity method 6,931,525.10 2,879,627.58
Income from investment in financial assets measured at fair value and -292,094.74 -188,345.37
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount in the current Amount in the previous
Items
period period
changes of which included in current profit and loss during holding period
Income from investment through disposal of financial assets measured at
4,989,725.81
fair value and changes of which included in current profit and loss
Bank wealth management product earnings 4,273,182.66 1,817,901.28
Total 10,912,613.02 9,498,909.30
43. Asset disposal
Amount in the current Amount in the
Amount included in the non-recurring
Items
period previous period gains and losses in the current period
Income from illiquid asset disposal -188,228.18 48,902.93 -188,228.18
Including:Income from fixed assset disposal -188,228.18 48,902.93 -188,228.18
Income from intangible assset disposal
Total -188,228.18 48,902.93 -188,228.18
44. Other income
Amount in the current Amount in the
Amount included in the non-recurring
Iterms
period previous period gains and losses in the current period
governmental subsidy related with operating
5,517,293.77 6,314,583.37 749,863.20
activities
Total 5,517,293.77 6,314,583.37 749,863.20
45. Non-operating income
Amount included in the
Amount in the current Amount in the previous
Items non-recurring gains and losses in
period period
the current period
Profits from disposal of illiquid assets 8,746.96 198,832.85 8,746.96
Income from claim 6,556,654.89 13,206.00 6,556,654.89
governmental subsidy 74,686.78 30,918.00 74,686.78
Tax refund 73,268.44
Compensation for demolition 3,091,660.35 1,454,523.95 3,091,660.35
Other benefits 74,418.73 915,791.64 74,418.73
Total 9,797,420.75 2487,780.03 9,797,420.75
46. Non-operating expenditure
Amount included in the
Amount in the current Amount in the previous
Items non-recurring gains and
period period
losses in the current period
External donation 21,500.00
Asset retirement, damage loss 2,065.71
Compensation and liquidated damages 6,430,005.15 1,154,193.17 6,430,005.15
Demolition loss 3,081,033.39 1,318,516.25 3,081,033.39
Other expenses 109,133.77 1,042,849.67 109,133.77
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount included in the
Amount in the current Amount in the previous
Items non-recurring gains and
period period
losses in the current period
Total 9,620,172.31 3,539,124.80 9,620,172.31
47. Income tax expense
(1) Income tax expense table
Items Amount in the current period Amount in the previous period
Income tax expense in the current period 27,664,025.42 26,442,329.74
Deferred income taxes expense 7,326,245.99 4,985,486.50
Total 34,990,271.41 31,427,816.24
(2) Accounting profit and income tax expense adjustment process
Items Amount in the current period
Total profit 109,548,923.66
Income tax expense calculated by statutory/applicable tax rate 30,451,228.99
Effect of income tax in the period before adjustment -1,978,045.94
The impact of non-taxable income 5,881,805.19
Impact of non-deductible cost, expense and loss 641,161.67
The impact of deferred income tax assets that is not recognized in the current period on
-5,878.49
deductible temporary differences or deductible loss
Income tax expense 34,990,271.41
48. Cash flow statement items
(1) Cash received relating to other operating activities
Amount in the previous
Items Amount in the current period
period
Current account of related parties 318,591.80 76,859,977.66
Other current account of the units 911,837,558.78 136,716,710.64
Non-operating income 1,150,546.52 1,006,671.89
Interest income 6,128,495.42 1,617,219.18
Others 1,431,291.42 20,060,919.07
Tax and Insurance 2,748,417.20
Total 923,614,901.14 236,261,498.44
(2) Cash paid relating to other operating activities
Amount in the current Amount in the previous
Items
period period
Current account between related parties 26,613,911.26 104,001,295.67
Other current account of the units 893,316,091.22 230,707,418.88
Administration expense 25,120,249.09 7,811,924.13
Operating expense 21,595,947.18 19,602,598.48
Non-operating expense 487,168.62 1,242,955.46
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount in the current Amount in the previous
Items
period period
Payment of reserves 247,490.00 571,497.55
Bank service charge 323,092.04 880,299.45
Others 6,326,874.80 18,893,577.57
Total 974,030,824.21 383,711,567.19
(3) Cash received relating to other investment activities
Amount in the current Amount in the previous
Items
period period
Financial redemption 118,000,000.00 95,300,139.13
Total 118,000,000.00 95,300,139.13
(4) Cash payments relating to other investment activities
Amount in the current
Items Amount last year
period
Buy Financial Products 85,000,000.00 114,800,000.00
Total 85,000,000.00 114,800,000.00
(5) Cash received relating to other financial activities
Amount in the current
Items Amount last year
period
Borrowing and interest received from related parties 51,529,000
Total 51,529,000
(6) Cash paid relating to other financial activities
Amount in the current Amount in the previous
Items
period period
Cash paid to related parties for interest on borrowings 73,647,073.24
Financial consultants 'fees 1,720,000.00
Total 73,647,073.24 1,720,000.00
49. Additional information on the cash flow statement
(1) Additional information on the cash flow statement
Additional information Amount in the current Amount in the
period previous period
1. Adjust new profit to cash flows from operating activities:
New profit 74,558,652.25 99,917,916.75
Plus: Provision for assets impairment -259,467.16 -4,147,566.51
Depreciation of fixed assets, loss of oil and gas assets, and depreciation of
45,223,218.20 49,483,320.65
productive biological assets
Amortization of intangible assets 4,645,877.37 4,459,845.03
Amortization of long-term deferred expenses 791,454.71 1,361,690.63
Losses on disposal of fixed assets, intangible assets and other long-term
199,107.14 -5,685,738.06
assets (“-” means gains)
80
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Additional information Amount in the current Amount in the
period previous period
Losses on scrapping of fixed assets (“-” means gains) 1,108.20
Loss from fair value change (“-” means gains) -23,082,074.49 10,417,800.20
Financial expense (“-” means gains) 51,994,715.95 13,550,291.42
Investment losses (“-” means gains) -88,943,376.95 -20,537,871.66
Decrease in deferred income tax assets (“-” means increase) 1,803,821.51 5,139,271.45
Increase in Deferred income tax liabilities (“-” means decrease) 7,319,746.80 0.00
Decrease in inventory (“-” means increase) 274,302,914.67 -186,348,896.65
Decrease in receivables under operating activities (“-” means increase) -613,311,955.84 -754,873,367.53
Increase in receivables under operating activities (“-” means decrease) 311,142,335.40 139,957,048.76
Others -690,426.68 -42,187,431.49
Net cash flow from operating activities 45,694,542.88 -689,492,578.81
2. Major investment and fund raising activities that do not involve cash
receipts and expenditures:
Conversion of debt into capital
Convertible corporate bonds due within one year
Financially-leased fixed assets
3. Net changes in cash and cash equivalents:
Cash at the end of the period 997,708,704.36 569,738,982.14
Less: cash at the beginning of the year 1,014,438,663.43 510,477,847.81
Plus: cash equivalents at the end of the period
Less: net increase in cash and cash equivalents
Net increase in cash and cash equivalents -16,729,959.07 59,261,134.33
(2) Composition of cash and cash equivalents
Balance at beginning of the
Items Balance at end of the period
year
I. Cash 997,708,704.36 1,014,438,663.43
Including: Cash on hand 118,461.72 119,766.22
Bank deposits that can be used for payment at any time 919,954,581.45 937,214,125.42
Other monetary funds that can be used for payment at any time 77,635,661.19 77,104,771.79
II. Cash equivalents
Among them: bond investments due within three months
III. Balance of cash and cash equivalents at the end of the period 997,708,704.36 1,014,438,663.43
Including: cash and cash equivalents used under restriction by the
parent company or within the group's subsidiaries
50. Assets with restricted ownership or use rights
Items Book value at the end of period Restricted reasons
Monetary funds 8,000,000.00 Loan guarantee
Inventory 4,824,035.45 Mortgage against a loan
Investment real estate 5,930,012.63 Mortgage against a loan
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Items Book value at the end of period Restricted reasons
Fixed assets 3,019,795.52 Mortgage against a loan
Total 21,773,843.60
VII. Changes in the scope of consolidation
During the reporting period, due to the establishment of new subsidiaries, the scope of the merger was increased by two units:
Jingliang Garden Complex Construction Operation(Xinyi) Co., Ltd. and Jingliang(Caofeidian) Agricultural Development Co., Ltd..
For details, see " Equity in Other Subjects "
VIII. Equity in Other Subjects.
1. Equity in subsidiaries
(1) Composition of enterprise group
Shareholding ratio
Principal place Domicile of (%)
Name of subsidiaries Business nature Mode
of business incorpor-ation Direct Indirect
holding holding
Common control
Beijing Jingliang Food Co., Ltd. Beijing Beijing Investment company 100
M&A
Agricultural and sideline Common control
Jingliang (Tianjin) Grain and Oil Industry Co. Ltd. Tianjin Tianjin 70
products processing M&A
Common control
Beijing Jingliang Oil Co., Ltd. Beijing Beijing Grain and oil trade 100
M&A
Jingliang Xinchuang (Tianjin) Business Management Co. Common control
Tianjin Tianjin Business services 51
Ltd. M&A
Agricultural and sideline Common control
Jingliang (Hebei) Oil Industrial Co., Ltd. Hebei Hebei 51
products processing M&A
Common control
Beiiing Guchuan Edible OiI Co.,Ltd Beijing Beijing Grain and oil trade 100
M&A
Agricultural and sideline Common control
Beijing Eisen Lubao Oil Co., Ltd. Beijing Beijing 100
products processing M&A
Common control
Beijing Tianweikang Oil Distribution Center Co., Ltd. Beijing Beijing Warehousing 100
M&A
Common control
Beijing Guchuan Bakery Food Co., Ltd. Beijing Beijing Food processing 100
M&A
Jingliang Misimi Catering Management (Tianjin) Co., Common control
Tianjin Tianjin Food processing 51
Ltd. M&A
Common control
Misimi Hui Catering Management (Tianjin) Co., Ltd. Tianjin Tianjin Food sales 51
M&A
Common control
Misimi Ao Catering Management (Beijing) Co., Ltd. Beijing Beijing Food sales 51
M&A
Non-common
Zhejiang Little Prince Food Co., Ltd. Hangzhou Hangzhou Food processing 69.7716
Control M&A
Non-common
Hangzhou Lin'an Little Angel Food Co., Ltd. Hangzhou Hangzhou Food processing 69.7716
Control M&A
Non-common
Liaoning Little Prince Food Co., Ltd. Liaoning Liaoning Food processing 69.7716
Control M&A
Non-common
Linqing Little Prince Food Co., Ltd. Linqing Linqing Food processing 69.7716
Control M&A
Non-common
Lin'an Chunmanyuan Agricultural Development Co., Ltd. Hangzhou Hangzhou Food processing 69.7716
Control M&A
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Shareholding ratio
Principal place Domicile of (%)
Name of subsidiaries Business nature Mode
of business incorpor-ation Direct Indirect
holding holding
Established by
Jingliang Singapore International Trading Co., Ltd. Singapore Singapore Grain trade 100
investment
Jingliang Garden Complex Construction Integrated agricultural Established by
Jiangsu Xuzhou 45
Operation(Xinyi) Co., Ltd. development investment
Integrated agricultural Established by
Jingliang(Caofeidian) Agricultural Development Co., Ltd. Hebei Tangshan 51
development investment
(2) Major non-wholly-owned subsidiaries
Gain and loss
Minority Dividends distributed
attributable to Balance of minority
shareholders’ to minority
Name of subsidiaries minority shareholders shareholders’ equity at the
shareholding ratio shareholders during
during the current end of the period
(%) the current period
period
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. 30 14,014,844.06 242,434,948.56
Zhejiang Little Prince Food Co., Ltd. 30.2284 28,950,979.77 6,944,385.43 207,753,849.43
Jingliang Misimi Catering Management (Tianjin) Co., Ltd. 49 -112,978.40 9,687,021.60
Jingliang Xinchuang (Tianjin) Business Management Co.,
49 759,049.55 5,559,049.55
Ltd.
Jingliang (Hebei) Oil Industrial Co., Ltd. 49 1,794,861.40 33,644,861.40
Jingliang Garden Complex Construction Operation(Xinyi)
55 -68,301.12 7,431,698.88
Co., Ltd.
Jingliang(Caofeidian) Agricultural Development Co., Ltd. 49 -21,158.11 24,478,841.89
(3) Main financial information of major non-wholly-owned subsidiaries
Ending balance
Name of subsidiaries Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. 1,618,888,656.2 875,501,354.3 2,494,390,010.6 1,642,090,239.7 67,274,379.9 1,709,364,619.
4 8 2 5 9 74
Zhejiang Little Prince Food Co., Ltd. 376,137,976.9 54,466,856.4
334,473,787.49 710,611,764.44 101,318,794.73 155,785,651.14
5 1
Jingliang Misimi Catering Management (Tianjin) Co.,
14,413,542.37 6,203,808.66 20,617,351.03 878,991.84 878,991.84
Ltd.
Jingliang Xinchuang (Tianjin) Business Management Co.
100,966,467.75 749,840.18 101,716,307.93 90,320,086.05 90,320,086.05
Ltd.
Jingliang (Hebei) Oil Industrial Co., Ltd. 304,378,363.87 94,130,379.64 398,508,743.51 328,907,325.49 1371625.2 330,278,950.69
Jingliang Garden Complex Construction Operation(Xinyi)
20,525,591.57 282,180.17 20,807,771.74 -985.12 -985.12
Co., Ltd.
Jingliang(Caofeidian) Agricultural Development Co., Ltd. 49,956,820.18 49,956,820.18
(Continued)
Beginning balance
Name of subsidiaries Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. 1,299,787,374.3 2,196,311,390.5 1,327,490,398.9 1,388,194,895.3
896,524,016.17 60,704,496.39
8 5 7 6
83
2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Beginning balance
Name of subsidiaries Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Zhejiang Little Prince Food Co., Ltd. 309,304,989.70 373,675,587.60 682,980,577.30 106,103,249.25 46,466,856.41 152,570,105.66
Jingliang Misimi Catering Management (Tianjin) Co.,
16,058,445.83 4,270,567.41 20,329,013.24 559,581.40 559,581.40
Ltd.
Jingliang Xinchuang (Tianjin) Business Management
81,900,543.34 750,679.10 82,651,222.44 71,301,496.27 71,301,496.27
Co. Ltd.
Jingliang (Hebei) Oil Industrial Co., Ltd. 282,694,214.40 95,147,791.73 377,842,006.14 307,807,398.50 1,371,625.20 309,179,023.70
Jingliang Garden Complex Construction
Operation(Xinyi) Co., Ltd.
Jingliang(Caofeidian) Agricultural Development Co.,
Ltd.
(Continued)
Current amount
Cash flows from
Name of subsidiaries Operating Total consolidated
Net profits operating
income income
activities
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. 1,643,788,487.08 2,908,895.69 2,908,895.69 -172,222,048.52
Zhejiang Little Prince Food Co., Ltd. 386,408,244.69 50,378,679.66 50,378,679.66 83,221,633.75
Jingliang Misimi Catering Management (Tianjin) Co.,
2,788,500.99 -31,072.65 -31,072.65 -3,654,241.14
Ltd.
Jingliang Xinchuang (Tianjin) Business Management Co.
337,387,365.27 46,495.71 46,495.71 -6,910,780.52
Ltd.
Jingliang (Hebei) Oil Industrial Co., Ltd. 121,186,048.78 1,616,810.38 1,616,810.38 -35,588,805.50
Jingliang Garden Complex Construction Operation(Xinyi) Co., Ltd. -191,243.14 -191,243.14 -233,925.20
Jingliang(Caofeidian) Agricultural Development Co., Ltd. -43,179.82 -43,179.82 -7,380,882.40
(Continued):
Amount last year
Cash flows from
Name of subsidiaries Operating Total consolidated
Net profits operating
income income
activities
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. 1,666,167,170.46 12,130,297.45 12,130,297.45 146,551,593.01
Zhejiang Little Prince Food Co., Ltd. 352,672,740.77 46,659,846.98 46,659,846.98 37,004,556.24
Jingliang Misimi Catering Management (Tianjin) Co.,
1,963,724.51 25,228.55 25,228.55 -4,166,225.96
Ltd.
Jingliang Xinchuang (Tianjin) Business Management Co.
32,718,087.49 174,833.53 174,833.53 86,689,051.45
Ltd.
Jingliang (Hebei) Oil Industrial Co., Ltd.
Jingliang Garden Complex Construction Operation(Xinyi) Co., Ltd.
Jingliang(Caofeidian) Agricultural Development Co., Ltd.
2. Transactions resulting changes in shareholder’s equity in the subsidiary while the company still has control over the
subsidiary
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
1. Explanation of changes in the owner's equity in subsidiaries
The company did not change the owner's equity share in the current period.
2.Effect of Transaction on Minority Shareholders' equity and equity attributable to Parent Company
The company has no transactions that affect minority shareholders 'rights and interests belonging to the owner of the parent
company.
IX. Risks related to financial instruments
The company's operating activities will face various financial risks, including credit risks, liquidity risks and market risks
(which mainly refer to interest rate risks). The company's overall risk management plan aims at unpredictability of financial markets
and seeks to reduce potential adverse impact on company's financial performance.
(I) Credit risks
The company's credit risks mainly come from monetary funds, accounts receivable, other receivables and available-for-sale
financial assets. The management has established appropriate credit policies and will continuously monitor the exposure of such
credit risks.
The monetary funds held by the company are mainly deposited in financial institutions such as commercial banks. The
management believes that such commercial banks have higher creditworthiness and in good asset status and have lower credit risks.
The company adopts quota policy to circumvent credit risks of any financial institution.
For accounts receivable and other receivables, the company sets relevant policies to control credit risk exposure. The company
evaluates credit quality of customers based on their financial status,possibility of obtaining guarantees from third party, credit records
and other factors such as current market conditions and sets corresponding credit period. The company will regularly monitor
customer credit records. For customers with bad credit history, the company will use method such as sending written reminders,
shorten the credit period or cancel the credit period to ensure that the company's overall credit risk is within the controllable range.
The maximum credit risk exposure of the company is the carrying amount of each financial asset in the balance sheet. Except
for the financial guarantees made by the company as set out in the notes, the company did not provide any other guarantee that may
cause the company to bear the credit risk.
(II) Liquidity risks
Liquidity risk refers to the risk that the Company cannot obtain sufficient funds in time to meet business development needs or
repay debts and other payment obligations that are due.
The financial department of the company continuously monitors the short-term and long-term capital requirements of the
company to ensure that it will maintain sufficient cash reserves; meanwhile it continuously monitors compliance with the provisions
of the loan agreement and obtains commitments from major financial to provide sufficient reserve funds to meet short-term and
long-term financial needs.
As of June 30, 2018, the undiscounted contractual cash flows of various financial assets and financial liabilities of the Company
are listed as follows:
Ending balance
ITEMS 2-5 Above 5
Book value Original book value Within 1 year 1-2 years
years years
Monetary funds 997,708,704.36 997,708,704.36 997,708,704.36
Accounts receivable 124,688,536.30 125,281,422.97 125,281,422.97
Other receivables. 84,491,856.13 87,640,641.90 87,640,641.90
Non-current assets due 26,000,000.00 26,000,000.00 26,000,000.00
within 1 year
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Ending balance
ITEMS 2-5 Above 5
Book value Original book value Within 1 year 1-2 years
years years
Financial assets 20,000,000.00 30,500,000.00 30,500,000.00
available for sale
Subtotal 1,252,889,096.79 1,267,130,769.23 1,267,130,769.23
Short-term loan 1,997,563,754.51 1,997,563,754.51 1,997,563,754.51
Accounts payable 517,639,840.02 517,639,840.02 517,639,840.02
Other payables 319,965,994.13 319,965,994.13 319,965,994.13
Long-term loan
Subtotal 2,835,169,588.66 2,835,169,588.66 2,835,169,588.66
Continued:
Beginning balance
ITEMS Original book 1-2 Above 5
Book value Within 1 year 2-5 years
value years years
Monetary funds 1,014,438,663.43 1,014,438,663.43 1,014,438,663.43
Accounts receivable 75,165,127.11 76,068,110.58 76,068,110.58
Other receivables. 73,064,548.76 76,359,661.64 76,359,661.64
Non-current assets due within
51,000,000.00 51,000,000.00 51,000,000.00
1 year
Financial assets available
20,000,000.00 30,500,000.00 30,500,000.00
for sale
Subtotal 1,233,668,339.30 1,248,366,435.65 1,248,366,435.65
Short-term loan 2,007,171,362.73 2,007,171,362.73 2,007,171,362.73
Accounts payable 317,538,928.27 317,538,928.27 317,538,928.27
Other payables 451,938,294.35 451,938,294.35 451,938,294.35
Long-term loan
Subtotal 2,776,648,585.35 2,776,648,585.35 2,776,648,585.35
(III) Market risk
1． Exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuation. The company's exposure to foreign exchange
risk is mainly related to U.S dollar. Except that several subsidiaries of the company use U.S. Dollars for purchase and sell, other
major business activities of the company are settled in RMB. As of June 30, 2018, except for the balance of assets or liabilities as
stated in the table below, the company's assets and liabilities are all balance in RMB. Foreign exchange risks arising from the balance
of assets and liabilities in such foreign currencies may have impact on the company's operating performance.
ITEMS Amount at end of period
Monetary funds 30,985,767.33
Prepayment 565,757,352.93
Short-term loan 441,906,254.51
Bills payable 36,397,048.50
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Note: The Group pays close attention to the impact of exchange rate changes on the Group.
2． Rate risk
The company's interest rate risk arises primarily from bank loans, etc. Financial liabilities with floating interest rates expose the
company to cash flow interest rate risk., while fixed-rate financial liabilities expose the company to fair value interest rate risk. The
company determines relative proportion of fixed-rate and floating-rate contracts based on market conditions at that time.
As of June 30, 2018, the company's interest-bearing debts were mainly RMB denominated floating interest rate contracts with
an amount of RMB 878,500,000.00; and RMB-denominated fixed-rate contracts with an amount of1,677,157,500.00yuan.
X. Fair value disclosure
1. Final fair value of assets and liabilities measured at fair value
Final fair value
Third level of
ITEMS First level of fair Second level of fair
fair value Total
value measurement value measurement
measurement
I. Recurring fair value measurement
(I)Financial assets measured at their fair
values and of which the variation is
151,016,163.70 151,016,163.70
recorded into the profits and losses of the
current period.
1 Trading financial assets 151,016,163.70 151,016,163.70
(1) Debt instrument investment 60,000,000.00 60,000,000.00
(2) Equity instruments investment.
(3) Derivative financial assets. 91,016,163.70 91,016,163.70
Total assets by recurring fair value
measurement
(Continued)
Beginning fair value
Second level of Third level of
ITEMS First level of fair
fair value fair value Total
value measurement
measurement. measurement
I. Recurring fair value measurement
(1)Financial assets measured at their fair values
and of which the variation is recorded into the 176,699,298.60 176,699,298.60
profits and losses of the current period.
1 Trading financial assets 176,699,298.60 176,699,298.60
(1) Debt instrument investment
(2) Equity instruments investment.
(3) Derivative financial assets. 176,699,298.60 176,699,298.60
Total assets by recurring fair value
176,699,298.60 176,699,298.60
measurement
XI.Related parties and related transactions
1. The company's parent company
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Registered Proportion of
Shareholding
Domicile of capital voting rights to
Name of parent company Business nature ratio of the
incorporation (ten thousand the company
company (%)
yuan) (%)
Investment
Beijing Grain Group Co.,Ltd. Beijing 90,000.00 42.06 42.06
management
The company's controlling shareholder is the State-owned Assets Supervision and Administration Commission of Beijing
Municipal People's Government.
2. The company's subsidiaries
For details, please refer to Note VIII. 1. Equity in subsidiaries.
Name of joint ventures or associated enterprises Relationship with the company
Beijing Zhengda Feed Co., Ltd. Joint venture
Storage Grain(Tianjin) Storage Logistics Co., Ltd.. Associated enterprise
3. The company's joint ventures and associated enterprises
For details of the company's major joint ventures and associated enterprises, please refer to Note equity in joint ventures or
associated enterprises.
4.Other related parties
Names of other related parties Relationship between other related parties and the company
Beijing Jingliang dacang Grain and Oil Trading Co., Ltd.. Control of the same subject
Beijing Northeast Suburb Grain Storage Control of the same subject
Beijing Zhengda Feed Co., Ltd.. Control of the same subject
Beijing Fangshan Grain and Oil Trading Co., Ltd. Control of the same subject
Beijing Southwest Suburb Grain Storage Control of the same subject
Beijing Great Mill Noodle Co. Ltd.. Control of the same subject
Beijing Shunyi Food Storage Store Control of the same subject
Beijing Jingdu Jingu Grain Purchase and Sales Co., Ltd. Control of the same subject
Beijing Jingliang Shunxing Cereals and Oils Co., Ltd. Control of the same subject
Beijing Dahongmen Grain Repository Control of the same subject
Beijing Daxing District Grain and Oil Corporation Control of the same subject
Beijing Huoda Property Management Center Control of the same subject
Beijing Jingliangxingye Asset Management Center Control of the same subject
Beijing Shunyi Grain and Oil Corporation Control of the same subject
Beijing Shunyi Shanghun Food Storage Store Control of the same subject
Beijing Shunyi blacksmith camp Grain Storage Repository Control of the same subject
Beijing Shunyi Wanggezhuang Grain Storage Repository Control of the same subject
Beijing Shunyi Yangzhen Grain Storage Repository Control of the same subject
Beijing Yuanyisheng Grain and Oil Corporation Control of the same subject
Beijing Source Training Military Food Supply Station Control of the same subject
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Names of other related parties Relationship between other related parties and the company
Beijing Guchuan Fuxing Food Co., Ltd. Control of the same subject
Beijing Jingmen Liangshi State-owned Asset Management
Control of the same subject
Company
Beijing Longsheng Zhongwang Breakfast Co. Ltd.. Control of the same subject
Beijing Capital Automobile Driving Technical School Control of the same subject
Tongliao Dacang Grain Trading Co., Ltd.. Control of the same subject
Beijing Dahongmen Oil Factory Control of the same subject
Beijing Daxing National Grain Repository Control of the same subject
Beijing Jingliangxingye Asset Management Center Control of the same subject
Storage Grain(Tianjin) Storage Logistics Co., Ltd.. Control of the same subject
Beijing Jingliang Grand Valley Grain Oil Trading Co., Ltd.. Control of the same subject
Beijing Jingliang Real Estate Co. Ltd.. Control of the same subject
Beijing Guchuan Rice Industry Co. Ltd.. Control of the same subject
Beijing Guchuan Food Co. Ltd.. Control of the same subject
Beijing Jingliang Oriental Grain and Oil Trading Co., Ltd.. Control of the same subject
Beijing Jingliang Taicang Grain and Oil Trading Co., Ltd.. Control of the same subject
Beijing Jingliang Electronic Commerce Co., Ltd.. Control of the same subject
Beijing Jinglianggurun Trading Co. Ltd.. Control of the same subject
Beijing Jingliang Yunhe Grain and Oil Trading Co., Ltd. Control of the same subject
Beijing Longqing Xiadu Junliang Supply Co., Ltd. Control of the same subject
Beijing Maliandao grain and oil special supply station Control of the same subject
Beijing Nanyuan Plant Oil Factory Control of the same subject
Beijing Northwest Suburb Grain Storage Control of the same subject
Beijing Flavor Factory Control of the same subject
Beijing Aid Army Grain and Oil Supply Station Control of the same subject
Beijing Yuanjishun Army Grain Supply Station Control of the same subject
Jingliang Huayuan(Beijing) Gaoxin Agricultural Technology Co.,
Control of the same subject
Ltd..
5. Related party transactions
(1) The mutual and parent subsidiary transactions of a subsidiary that has a control relationship and is included in the
consolidated financial statements of the company have been offset.
(2)Related transactions for purchase and sale of goods, provision and acceptance of services
Details of related Amount of last
Related party Current Amount
transactions period
Beijing Jingliang Electronic Commerce Co., Ltd. Goods purchase 2,876,585.39
Beijing Jingliang Oriental Grain and Oil Trading Co., Ltd. Goods purchase 238,733.49
Beijing Guchuan Food Co., Ltd. Goods purchase 8,704,540.14 8,605,235.17
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Details of related Amount of last
Related party Current Amount
transactions period
Beijing Guchuan Rice Co.,Ltd. Goods purchase 2,321,519.05 242,213.13
Shandong Fukuan Biological Engineering Co. Ltd.. Goods purchase 508,438.83 543,826.08
Total 14,649,816.9 9,391,274.38
(3)Sale of goods / provision of labor services
Details of related Amount of last
Related party Current Amount
transactions period
Beijing Haidian West Suburbs Grain and Oil Supply Station Co., Sales of goods
6,439,818.19 4,346,564.76
Ltd..
Beijing Jingliang Electronic Commerce Co., Ltd. Sales of goods 4,812,771.10 20,270,428.46
Beijing Jingliang Oriental Grain and Oil Trading Co., Ltd Sales of goods 2,848,458.76 3,027,969.51
Beijing Aid Army Grain and Oil Supply Co., Ltd.. Sales of goods 2,491,096.58 3,314,068.23
Beijing Zidibing Grain and Oil Supply Co. Ltd.. Sales of goods 2,183,385.73 2,517,480.17
Beijing Maliandao Special Supply Station Co. Ltd.. Sales of goods 1,401,727.24 896,058.58
Beijing Guchuan Food Co., Ltd. Sales of goods 1,175,322.73 1,056,647.41
Beijing Food Supply Department No. 34 Supply Department Sales of goods 1,116,117.18
Beijing Hongyuanli Army Grain and Oil Supply Co., Ltd.. Sales of goods 528,599.52
Beijing Longqingxiadujun Food Supply Co. Ltd.. Sales of goods 360,148.97 434,146.36
Beijing Jinglianhe Grain Oil Trading Co. Ltd.. Sales of goods 211,237.67
Beijing Guchuan Rice Co.,Ltd. Sales of goods 189,562.50 122,465.00
Beijing Jingliang Grand Valley Grain Oil Trading Co., Ltd.. Sales of goods 88,822.07
Beijing Ershang Logistics Co. Ltd.. Sales of goods 81,467.78
Beijing Yuanjishun Military Food Supply Co., Ltd.. Sales of goods 66,666.67 435,368.72
Beijing Shounong Xiangshan Convention Center Co., Ltd.. Sales of goods 40,093.37
Beijing Grain(Tianjin) Electronic Commerce Co., Ltd.. Sales of goods 35,443.25
Beijing Jingliang Dacang Grain and Oil Trading Co., Ltd.. Sales of goods 20,288.29
Beijing Jingliang Real Estate Co. Ltd.. Sales of goods 16,035.72 38,044.38
Beijing Nanyuan Plant Oil Factory Sales of goods 10,393.80 3,410.61
Beijing Xingxing Trade Co. Ltd.. Sales of goods 6,837.84 3,451.33
Beijing Pinggu Grain and Oil Industry and Trade Co., Ltd.. Sales of goods 6,486.48
Beijing Ershanglong and Food Co. Ltd.. Sales of goods 5,421.78
China Meat Food Comprehensive Research Center Sales of goods 4,167.51
Beijing Institute of Food Science Sales of goods 2,543.89 3,252.21
Beijing Jingliang Logistics Co., Ltd.. Sales of goods 1,351.35 1,772.74
Beijing Ancient Ship Fuxing Food Co. Ltd.. Sales of goods 347.27
Beijing Grain Group Finance Co. Ltd.. Sales of goods 12,243.36
Beijing Longde Business Management Limited Sales of goods 14,725.66
Beijing Miyunshahe Grain and Oil Purchase and Marketing Station Sales of goods 1,036,246.85
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Details of related Amount of last
Related party Current Amount
transactions period
Beijing Good Year Army Food Supply Station Sales of goods 461,377.02
Beijing Tongzhou District Grain and Oil Trading Company Supply Sales of goods
449,921.06
Station
Beijing Northwest Suburb Grain Storage Sales of goods 29163.72
Beijing Flavor Factory Sales of goods 685.44
Beijing Guchuan Food Co. Ltd.. Sales of goods 66,742.78
Total 24,211,356.02 38,475,791.58
Explanation: The transaction price of a related transaction is based on the price charged for the same or similar business activity as an
associated transaction between unrelated parties.
(4) Related lease conditions
① When the company is a lessor
Type of leasing Rental income confirmed Rental income confirmed
Name of lessee
assets in this period in last period
Beijing Jingliang Electronic Commerce Co., Ltd. Car rental 5,440.00 12,693.33
Beijing Guchuan Food Co., Ltd. Premises 3,500,000.00 6,666,666.67
Total 3,505,440.00 6,679,360.00
②When the company is a lessee
Rental fees confirmed in Rental fees confirmed in last
Name of lessor Type of leasing assets
this period period
Beijing Dahongmen Grain Storage Co. Ltd.. Premises 2,019,284.63
Beijing Grain Group Co.,Ltd. Premises 2,453,228.62 2,342,211.70
Beijing Daxing National Grain Reserve Premises 1,055,100.00 1,236,600.00
Total 5,527,613.25 3,578,811.70
(5) Related party funding
As of June 30, 2018, the balance of loan principal of the Company to Beijing Grain Group Co., Ltd. was RMB 179,000,000.00, and
the balance of interest payable was RMB 12,076,929.17.
(6) Compensation for key management personnel
Company：Million
Item Current amount Last amount
Compensation for key management personnel 68.65 61.43
(7) Other related party transactions
Current transaction Last confirmed
Name of lessor Item
amount confirmed transaction amount
Beijing Guchuan Food Co., Ltd. Trademark fee income 1,937,366.75
Beijing Guchuan Rice Industry Co., Ltd. Trademark fee income 277,714.15
Beijing Guchuan Food Co., Ltd. Procurement of 1,693,878.38 1,923,256.20
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Current transaction Last confirmed
Name of lessor Item
amount confirmed transaction amount
utilities
Total 1,693,878.38 4,,138337.10
(8) Receivables and payables with related parties
① Receivables
Ending balance Beginning balance
Item Book balance Bad debt Book balance Bad debt
reserves reserves
Receivables:
Beijing Guchuan Food Co., Ltd. 211,200.00 256,270.00
Beijing Jingliang ECommerce Co., Ltd. 265,224.00
Beijing Jingliang East Grain and Oil Trading Co., Ltd. 985,150.00 1,025,540.00
Beijing Haidian Western Suburb Grain and Oil Supply Station 403,253.00 294,009.00
Beijing Zhujun Grain and Oil Supply Station 483,600.00 991,912.00
Advance payment:
Beijing Dahongmen Grain Storage Depot 1,679,284.63
Beijing Dahongmen Oil Factory 340,000.00
Beijing Guchuan Food Co., Ltd. 211.98
②Payables
Name Ending balance Beginning balance
Payables:
Beijing Guchuan Food Co., Ltd. 531,374.78
Beijing Jingliang East Grain and Oil Trading Co., Ltd. 1,100.00
Other payables:
Beijing Grain Group Co., Ltd. 191,076,929.17 187,162,049.99
Beijing Jingliang ECommerce Co., Ltd. 195,187.20
Jingliang Huayuan (Beijing) High-tech Agricultural Technology Co., Ltd. 78,000.00
Deposit received:
Beijing Jingliang ECommerce Co., Ltd. 1,158,495.36
XII. Commitments and contingencies
1. Material commitments
(1) the Company reviewed and passed the Proposal on the Supplementary Agreement(Ⅱ) of the Profit Compensation Agreement at
the 7th meeting of its 8th Board of Directors stipulated that the total net profit promised by Beijing Jingliang Products Co., Ltd. in
2017, 2018, and 2019 shall not be less than 13,011,500 yuan, 150,393,700 yuan, and 162,160,500 yuan respectively.
(2) On August 11, 2015, Beijing Jingliang Products Co., Ltd. signed a "Framework Contract on the Sale and Sale of Shares of
Zhejiang Little Prince Food Co., Ltd. and Related Transactions" with Mr. Wangyuecheng and Zhejiang Little Prince Food Co., Ltd.,
and agreed that Mr. Wangyuecheng promised. Based on the audited net profit of the Zhejiang Little Prince in 2014 of 6,074.98 yuan,
The annual net profit growth rate for the four consecutive years of the commitment period(including the additional guarantee period),
namely 2015, 2016, 2017 and 2018, will not be less than 10 %, and it will strive to reach 20 %. The above performance award was
awarded by the Little Prince of Zhejiang to Mr. Wangyuecheng and his management team.
2. Contingencies
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
No
XIII. Events after the balance sheet date
No
XIV. Other important issues
No
XV. Notes to financial statement items of the Parent Company
1. Accounts receivable
(1) Classified disclosure of account receivables
Ending balance
Book balance Bad debt reserves
Category
Proportion Proportion Book value
Amount Amount
(%) (%)
Account receivables with significant single amount and with
separate provision for bad debts
Receivables with provision for bad debts based on a combination
126,420.00 100.00 19,794.00 15.66 106,626.00
of credit risk characteristics
Receivables with individual amounts that are not significant but
are separately provisioned for bad debts
Total 126,420.00 100.00 19,794.00 ---- 106,626.00
(Continued)
Beginning balance
Book
Bad debt reserves Book value
Category balance
Proportion Proportion
Amount Amount
(%) (%)
Receivables with individual amounts that are not significant but
are separately provisioned for bad debts
Receivables with provision for bad debts based on a combination
126,420.00 100.00 17,031.00 13.47 109,389.00
of credit risk characteristics
Receivables with individual amounts that are not significant but
are separately provisioned for bad debts
Total 126,420.00 100.00 17,031.00 ---- 109,389.00
①Account receivable accruing bad debt reserves according to ageing analysis
Ending balance
Ageing
Account receivable Bad debt reserves Net Account receivable Proportion (%)
Less than 1 year
In which: Less than credit period 0
Between credit period and 1 year 3,000.00 60.00 2,940.00 2
Sub-total 3,000.00 60.00 2,940.00 ——
Between 1 and 2 years 33,000.00 1,650.00 31,350.00 5
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Between 2 and 3 years 90,420.00 18,084.00 20
Between 3 and 4 years 50
Between 4 and 5 years 80
Over five years 100
Total 126,420.00 19,794.00 106,626.00 -----
(Continued)
Beginning balance
Ageing
Account receivable Bad debt reserves Net Account receivable Proportion (%)
Less than 1 year
In which: Less than credit period 0
Between credit period and 1 year 3,000.00 60.00 2,940.00 2
Sub-total 3,000.00 60.00 2,940.00 ——
Between 1 and 2 years 51,420.00 2,571.00 48,849.00 5
Between 2 and 3 years 72,000.00 14,400.00 57,600.00 20
Between 3 and 4 years 50
Between 4 and 5 years 80
Over five years 100
Total 126,420.00 17,031.00 109,389.00 -----
(2) Bad debt reserves accrued, recovered or reversed in the current period
Bad debt reserve for the current period is RMB 2,763.00.
(3) No over 5% voted shareholders units in the account receivable of the ending balance
(4) No Account receivable of related parties in the ending balance
2. Other receivables
(1)Detailed disclosure of other receivables
Ending balance
Book balance Bad debt reserves
Category
Proportion Book value
Amount Amount Proportion (%)
(%)
Account receivables with significant single amount and with
separate provision for bad debts
Receivables with provision for bad debts based on a
combination of credit risk characteristics
Combination 1- Account receivables according to 60,683,886.4 3,075,877.7
99.46 5.04 57,608,008.74
ageing analysis 6 2
Combination 2-Account receivable from related parties 330,000.00 0.54 330,000.00
61,013,886.4 3,075,877.7
Sub-total 100.00 5.04 57,938,008.74
6 2
Receivables with individual amounts that are not significant
but are separately provisioned for bad debts
61,013,886.4 3,075,877.7
Total 100.00 __ 57,938,008.74
6 2
(Continued)
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Beginning balance
Book balance Bad debt reserves
Category
Amount Proportion Amount Proportion Book value
(%) (%)
Account receivables with significant single amount and with separate
provision for bad debts
In which: 1-Account receivable from related parties
2-Account receivable from other companies
Sub-total
Receivables with provision for bad debts based on a combination of credit
risk characteristics
Combination 1- Account receivables according to ageing analysis 63,754,181.75 100.00 3,177,889.13 4.98 60,576,292.62
Combination 2-Account receivable from related parties
Sub-total 63,754,181.75 100.00 3,177,889.13 4.98 60,576,292.62
Receivables with individual amounts that are not significant but are
separately provisioned for bad debts
Total 63,754,181.75 100.00 3,177,889.13 ----- 60,576,292.62
① Other receivables accruing bad debt reserves according to ageing analysis
Ending balance
Ageing
Account receivable Bad debt reserves Proportion（%）
Less than 1 year
In which: within credit period 0
Between credit period and less than 1
193,886.46 3,877.72 2
year
Sub-total 193,886.46 3,877.72 -----
Between 1 year and 2 years 60,440,000.00 3,022,000.00 5
Between 2 year and 3 years 20
Between 3 year and 4 years 50
Between 4 year and 5 years 80
Over 5 years 50,000.00 50,000.00 100
Total 60,683,886.46 3,075,877.72 -----
Continued:
Beginning balance
Ageing
Account receivable Bad debt reserves Proportion (%)
Less than 1 year
In which: within credit period 2,122.90 0
Between credit period and 1 year 1,573,793.63 31,475.87 2
Sub-total 1,575,916.53 31,475.87 -----
Between 1 year and 2 years 62,128,265.22 3,106,413.26 5
Between 2 year and 3 years 20
Between 3 year and 4 years 50
Between 4 year and 5 years 50,000.00 40,000.00 80
Over 5 years 100
Total 63,754,181.75 3,177,889.13 -----
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
(2) Bad debt reserves accrued, recovered or reversed
Bad debt reserve for the current period is RMB 102,011.41.
(3) Other receivables categorized according to nature
Category Ending balance Beginning balance
Intercourse funds with related parties
Reservation fund (employees and departments) 193,886.46 182,904.46
Margin and deposit
Company intercourse funds 60,440,000.00 63,517,970.62
Individual intercourse funds 50,000.00 50,000.00
Accounts receivable from employees 3,306.67
other 330,000.00
Total 61,013,886.46 63,754,181.75
(4)No over 5% voted shareholders units in the other account receivable of the ending balance
(5) Top 5 clients in other account receivables
Proportion of total Ending
Ending
Name Category Ageing amount of ending balance balance of bad
balance
in other receivables (%) debt reserves
Beijing Runshun Technology Development Intercourse Between 1 year
55,940,000.00 91.68 2,797,000.00
Co., Ltd. funds and 2 years
Zhangjiagang Free Trade Zone Taiying Intercourse Between 1 year
4,500,000.00 7.38 225,000.00
Trade Co., Ltd. funds and 2 years
Total ----- 60,440,000.00 ----- 99.06 3,022,000.00
3. Long term equity investment
Ending balance Beginning balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
2,375,639,964.05 2,375,639,964.05 2,336,639,964.05 2,336,639,964.05
subsidiaries
Investment in
associates
Total 2,375,639,964.05 2,375,639,964.05 2,336,639,964.05 2,336,639,964.05
4. Operating revenue and operating costs
Amount for current period Amount for Prior period
Items
Revenue Cost Revenue Cost
Main business
Other business 151,218.30 2,857.14 151,218.30
Total 151,218.30 2,857.14 151,218.30
5. Investment income
Amount for current
Items Amount for Prior period
period
Long term equity investment income accounted for by equity method -928,894.05
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2018 Semi-annual Report of Hainan Jiang Holdings Co., Ltd.
Amount for current
Items Amount for Prior period
period
Investment income from disposal of long term equity investment 75,820,000.00
Total 74,891,105.95
XVI. Supplementary materials
1. Breakdown of extraordinary gains and losses for the current period
Items Amount Note
Gains and losses from disposal of non-current asset -188,228.18
The government subsidy recorded in the current profit and loss (except for the government subsidy
rationed or quantified according to national uniform standards that is closely related to the Company 786,864.35
business)
The fair value changes arising from trading financial assets and trading financial liabilities, and the
investment income obtained from the disposal of trading financial assets, trading financial liabilities and
3,981,087.92
available-for-sale financial assets, except for the effective hedging business related to the company's
normal business operations
Other non-operating income and expenses other than the above 140,247.29
Sub-total 4,719,971.38
Impact on income tax -1,179,992.85
Impact on minority shareholders' equity (after tax) -980,019.36
Total 2,559,959.17
2. Net asset return rate and earnings per share
Weighted average net Earnings per share
Profit for the accounting period
asset return rate (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 2.73 0.09 0.09
Net profit attributable to ordinary shareholders after deducting
2.62 0.08 0.08
extraordinary gains and losses
Legal representative:Wang Guofeng Person in charge of accounting work:Guan Ying Person in charge of accounting organization:Liu Quanli
Hainan Jingliang Holdings Co., Ltd.
17 August 2018
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