Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2018-059
HAINAN JINGLIANG HOLDINGS CO., LTD.
THIRD QUARTER REPORT 2018 (SUMMARY)
October 2018
1
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior managers of Hainan Jingliang Holdings Co., Ltd. (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires)
hereby guarantee the factuality, accuracy and completeness of the contents of this Report and
its summary, and shall be jointly and severally liable for any misrepresentations, misleading
statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Wang Guofeng, the Company’s legal representative, Guan Ying, the Company’s head for
financial affairs, and Liu Quanli, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2018 31 December 2017 Change (%)
Total assets (RMB) 5,580,372,664.55 6,082,383,851.23 -8.25%
Equity attributable to the listed
2,204,056,918.96 2,101,342,683.37 4.89%
company’s shareholders (RMB)
Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)
Operating revenue (RMB) 1,899,805,985.97 -14.91% 5,539,431,965.38 0.44%
Net profit attributable to the listed
42,345,394.93 0.43% 102,264,390.61 0.42%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 42,526,321.21 301.98% 99,885,357.72 133.62%
exceptional items (RMB)
Net cash generated from/used in
-- -- 419,583,694.49 142.19%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.06 -14.29% 0.15 -6.25%
Diluted earnings per share (RMB/share) 0.06 -14.29% 0.15 -6.25%
Weighted average return on equity (%) 2.00% -0.06% 4.75% -0.14%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
-1,796,072.16
impairment allowance write-offs)
Gains/Losses on fair value changes of trading financial assets and
liabilities & investment income from disposal of trading financial
assets and liabilities as well as financial assets available for sale 5,360,397.35
(exclusive of effective hedges related to normal business
operations of the Company)
Non-operating income and expense other than above 885,054.45
Less: Income tax effects 1,112,344.91
Non-controlling interests effects (net of tax) 958,001.84
Total 2,379,032.89 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders
Number of ordinary shareholders 37,523 0
with resumed voting rights (if any)
Top 10 shareholders
Shares in pledge or
Nature of Shareholding Number of Restricted frozen
Name of shareholder
shareholder percentage shares shares
Status Shares
State-owned legal
BEIJING GRAIN GROUP CO., LTD. 42.06% 288,439,561 164,877,598
person
BEIJING STATE-OWNED CAPITAL
State-owned legal
OPERATION AND MANAGEMENT 7.07% 48,510,460 48,510,460
person
CENTER
CHINA DEVELOPMENT BANK State-owned legal
3.33% 22,828,451 22,828,451
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 3.19% 21,873,700 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
HU TIANGAO 0.30% 2,065,352 0
person
Domestic natural
ZHANG XIAOXIA 0.28% 1,949,250 0
person
Domestic natural
WANG DAO 0.28% 1,920,600 0
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
RMB-denominated
BEIJING GRAIN GROUP CO., LTD. 123,561,963 123,561,963
ordinary stock
Domestically listed
LI SHERYN ZHAN MING 21,873,700 21,873,700
foreign stock
RMB-denominated
MEI JIANYING 2,604,203 2,604,203
ordinary stock
DONGYANG HENGDIAN RMB-denominated
2,204,976 2,204,976
GUARANTY CO., LTD. ordinary stock
RMB-denominated
HU TIANGAO 2,065,352 2,065,352
ordinary stock
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
Domestically listed
ZHANG XIAOXIA 1,949,250 1,949,250
foreign stock
RMB-denominated
WANG DAO 1,920,600 1,920,600
ordinary stock
RMB-denominated
WANG XIAOXING 1,808,000 1,808,000
ordinary stock
RMB-denominated
ZHANG PENG 1,790,000 1,790,000
ordinary stock
RMB-denominated
ZHONG YI 1,727,783 1,727,783
ordinary stock
Beijing State-Owned Capital Operation And Management Center owns 100% of Beijing
Related or acting-in-concert parties Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is a shareholder of the Company
among shareholders above (a 42.06% holding). Apart from that, the Company does not know whether there are any
other related parties or acting-in-concert parties among the top 10 shareholders.
1. Shareholder Wang Xiaoxing holds 1,808,000 shares in the Company through his account
Top 10 ordinary shareholders of collateral securities for margin trading in Soochow Securities Co., Ltd.
involved in securities margin trading
(if any) 2. Shareholder Zhong Yi holds 1,727,783 shares in the Company through his account of
collateral securities for margin trading in Fortune Securities Co., Ltd.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Monetary capital declined as at 30 September 2018 compared to 31 December 2017, primarily driven by the
repayment of borrowings during Q1~Q3 2018.
2. Financial assets at fair value through profit or loss declined as at 30 September 2018 compared to 31 December
2017, primarily because fewer futures contracts resulted in smaller margins.
3. Notes and accounts receivable rose as at 30 September 2018 compared to 31 December 2017, primarily because
more customers were allowed to buy on credit to boost sales.
4. Prepayments declined as at 30 September 2018 compared to 31 December 2017, primarily because supplies
associated with certain prepayments were received and such prepayments were thus reclassified as inventories.
5. The current portion of non-current assets declined as at 30 September 2018 compared to 31 December 2017,
primarily driven by a smaller investment in wealth management products.
6. Other current assets rose as at 30 September 2018 compared to 31 December 2017, primarily driven by larger
investments in government securities reverse repurchase and structured deposits.
7. Other non-current assets declined as at 30 September 2018 compared to 31 December 2017, primarily because
equipment associated with certain prepayments were received and installed and such prepayments were thus
reclassified as fixed assets.
8. Notes and accounts payable declined as at 30 September 2018 compared to 31 December 2017, primarily
driven by payments to suppliers.
9. Payroll payable declined as at 30 September 2018 compared to 31 December 2017, primarily driven by the
payment in Q1~Q3 2018 of the 2017 annual performance pay that had been set aside in 2017.
10. Other current liabilities declined as at 30 September 2018 compared to 31 December 2017, primarily driven
by a smaller book loss on hedged items.
11. Taxes and surcharges declined during Q1~Q3 2018 compared to Q1~Q3 2017, primarily because Q1~Q3 2017
had seen a land value added tax on real estate revenue, while there was no such revenue during Q1~Q3 2018.
12. Finance costs rose during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by a larger amount of
bank loans and higher cost of capital.
13. Asset impairment loss declined during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by some
allowances for doubtful accounts in Q1~Q3 2017.
14. Investment income rose during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by the income
generated from investments in government securities reverse repurchase and beneficiary certificates.
15. Gain on changes in fair value declined during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by
changes in the fair value of futures positions.
16. Net cash generated from operating activities rose during Q1~Q3 2018 compared to Q1~Q3 2017, primarily
driven by the sales of inventory products.
17. Net cash generated from investing activities declined during Q1~Q3 2018 compared to Q1~Q3 2017,
primarily driven by more investments in reverse repurchase and banks’ wealth management products.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
18. Net cash generated from financing activities declined during Q1~Q3 2018 compared to Q1~Q3 2017,
primarily driven by a higher amount of bank loan repayment in Q1~Q3 2017.
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as
explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Los
s on Accumul
Purchas Gain/los
Initial Beginni fair-valu ated Sold in
Measur ed in s in Ending
Security Security Security invest ng e fair-value Reporti Account Funding
ement Reporti Reporti carrying
type code name ment carrying changes changes ng ing title source
method ng ng amount
cost amount in charged Period
Period Period
Reportin to equity
g Period
17,709, 17,709,
Cost 2,585,3 Other Self-rais
Other 204001 GC001 600,000 600,000 0.00
method 61.95 assets ed
.00 .00
Cost 388,400 388,400 74,885. Other Self-rais
Other 204002 GC002 0.00
method ,000.00 ,000.00 68 assets ed
Cost 57,800, 57,800, 46,619. Other Self-rais
Other 204003 GC003 0.00
method 000.00 000.00 45 assets ed
Cost 171,800 171,800 101,482 Other Self-rais
Other 204004 GC004 0.00
method ,000.00 ,000.00 .98 assets ed
Cost 606,000 606,000 501,621 Other Self-rais
Other 204007 GC007 0.00
method ,000.00 ,000.00 .73 assets ed
18,933, 18,933,
3,309,9
Total 0.00 -- 0.00 0.00 0.00 600,000 600,000 0.00 -- --
71.79
.00 .00
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
Disclosure date of
announcement on Board’s
27 January 2018
consent for securities
investments
Disclosure date of
announcement on general
meeting’s consent for 13 February 2018
securities investments (if
any)
VI Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Outstanding amount
Type of wealth management Funding source Principal Overdue amount
before maturity
Wealth management product
Idle raised 26,000 20,000 0
purchased from securities trader
Wealth management product
Self-funded 6,780 4,280 0
purchased from bank
Total 32,780 24,280 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security,
low liquidity, or no protection of the principal:
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Collecti
Type Throu Any
Refere Actual on/pay Impai
of Invest gh plan Overview
Type Fundi nce gain/lo ment of rment
wealth ment prescr for and index
of Princip ng Start End Way of annual ss in gain/los allow
Trustee manag with ibed furthe to more
truste al sourc date date payback ized Reporti s in ance
ement princip proce r information
e e return ng Reporti (if
produc al dure entrus (if any)
(%) Period ng any)
t or not tment
Period
Pay the
principal
Certifi Idle Agree www.cninf
Securi 28 and
CITIC cation raise 29 ment o.com.cn:
ties Septe earnings at Redeem
SECURI of 6,000 d June of 4.00% 59.84 Yes No 2018-044
comp mber the ed
TIES trust capit 2018 contra and
any 2018 maturity
receipt al ct 2018-055
date of
investment
Pay the
principal
Certifi Idle Agree
DONGX Securi 17 and
cation raise ment www.cninf
ING ties 4 July Dece earnings at Unrede
of 20,000 d of 4.80% 0 Yes No o.com.cn:
SECURI comp 2018 mber the emed
trust capit contra 2018-045
TIES any 2018 maturity
receipt al ct
date of
investment
Total 26,000 -- -- -- -- -- -- 59.84 -- -- -- --
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
VII Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Ending
Actual gain/loss
Ending investment as %
Type of derivative Start date End date in Reporting
investment of the Company’s
Period
ending net assets
Soybean hedging 1 January 2018 30 September 2018 6,271.62 2.28% -4,750.5
Foreign exchange forwards 1 January 2018 30 September 2018 0 0.00% 3,322.53
Agricultural product future contract 1 January 2018 30 September 2018 2,938.86 1.07% 4,371.86
Agricultural product future contract 1 January 2018 30 September 2018 1,512.18 0.55% 346.03
Agricultural product future contract 1 January 2018 30 September 2018 0.1 0.00% -427.76
Agricultural product future contract 1 September 2018 19 September 2018 0 0.00% 0.04
Total -- -- 10,722.76 3.90% 2,862.2
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of board 13 April 2018
announcement approving derivative
investment (if any) 9 June 2018
Disclosure date of general meeting 11 May 2018
announcement approving derivative
investment (if any) 27 June 2018
The Company’s conduction of hedging business is not aimed at speculation, but mainly to
effectively avoid the impact of raw material price fluctuation on the Company. However,
there will be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated
when the futures market changes greatly, resulting in transaction losses; 2. Capital risk:
capital risk may be correspondingly brought because the futures trading adopts margin and
marking-to-market system; 3. Internal control risk: there may be risks due to imperfect
internal control system for the high expertise and complexity of futures trading; 4. Technical
risk: there may be technical risks due to incomplete computer systems. The Company adopts
following risk control measures: 1. Matching the hedging business with the Company’s
Analysis of risks and control
production and operation so as to maximally reduce the price fluctuation risk; 2. The
measures associated with derivative
Company will reasonably dispatch its own funds for hedging business, strictly control the
investments held in Reporting Period
hedging fund scale and reasonably plan and use margins; 3. Regulations for Commodity
(including but not limited to market
Futures Trading and Regulations for Futures Business are formulated at the Company and
risk, liquidity risk, credit risk,
subsidiaries levels respectively based on actual situation of the Company and pursuant to
operational risk, legal risk, etc.)
governing stipulations of Guidelines for Standard Operation of Companies Listed in
Shenzhen Stock Exchange which have made clearly stipulations about the amount, variety
scope, approval authority, internal approval procedures, responsible departments and persons,
information isolation measures, internal risk report and related solution process, information
disclosure, etc. regarding hedging business. The Company will strictly control all sectors in
accordance with the two regulations formulated; 4. Establishing qualified systems for
transaction, communication and information services so as to guarantee the normal operation
of the transaction system and smooth proceeding of transactions. When a wrong order occurs,
corresponding measures should be timely taken to reduce losses.
Changes in market prices or fair
value of derivative investments in The value of the Company’s future contracts changed according to the contract prices
Reporting Period (fair value analysis declared by the future exchange, which were broadly representative. And the fair value of the
should include measurement method Company’s future contracts was executed in strict compliance with the future exchange’s
and related assumptions and settlement methods.
parameters)
Major changes in accounting
policies and specific accounting
principles adopted for derivative N/A
investments in Reporting Period
compared to last reporting period
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018 (Summary)
The relevant decision-making procedures for the Company and its majority-owned
subsidiaries to conduct foreign exchange derivatives trading business are in compliance with
relevant national laws, regulations and the governing provisions of the Articles of
Opinion of independent directors on
Association. Based on normal production and operation, the Company uses foreign exchange
derivative investments and risk
derivatives instruments to reduce exchange rate risks and finance costs, and control business
control
risks. There is no harm to the interests of the Company and all other shareholders, especially
minority shareholders. It is agreed that the Company and its majority-owned subsidiaries will
conduct foreign exchange derivative trading business within the consideration amount.
VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd.
23 October 2018
10
