Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No.: 2019-072
HAINAN JINGLIANG HOLDINGS CO., LTD.
THIRD QUARTER REPORT 2019 (SUMMARY)
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (together with its
consolidated s ubsidiaries, the “Company”, except where the context otherwise requires )
hereby guarantee the factuality, accuracy and completeness of the conte nts of this Report and
its summary, and shall be jointly and severally liable fo r any misrepresentations, misleading
statements or mate rial omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Li Shaoling, the Company’s legal representative, Guan Ying, the Company’s head for
financial affairs, and Liu Quanli, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
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 2019 31 December 2018 Change (%)
Total assets (RMB) 5,132,178,541.12 4,917,148,996.28 4.37%
Equity attributable to the listed
2,358,063,029.90 2,272,469,925.43 3.77%
company’s shareholders (RM B)
Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RM B) 1,824,886,529.92 -3.94% 5,108,164,255.31 -7.79%
Net profit attributable to the listed
33,840,967.80 -20.08% 85,351,872.21 -16.54%
company’s shareholders (RM B)
Net profit attributable to the listed
company’s shareholders before 28,276,307.45 -34.00% 69,470,781.04 -30.00%
exceptional items (RM B)
Net cash generated from/used in
-- -- 446,745,732.08 6.47%
operating activities (RM B)
Basic earnings per share (RM B/share) 0.05 -16.67% 0.12 -20.00%
Diluted earnings per share
0.05 -16.67% 0.12 -20.00%
(RM B/share)
Weighted average return on equity
1.48% -26.00% 3.69% -22.00%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RM B
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
11,265,753.65
allowance write-offs)
Government subsidies recognized in the current period, except for those
acquired in the ordinary course of business or granted at certain quotas or 3,058,788.87
amounts according to the government’s unified standards
Gains/Losses on fair value changes of trading financial assets and liabilities
& investment income from disposal of trading financial assets and 7,948,330.08
liabilities as well as financial assets available for sale (exclusive of
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
effective hedges related to normal business operations of the Company)
Non-operating income and expense other than above 889,800.28
Project confirmed with the definition of non-recurring gains and losses and
-122,538.24
losses
Less: Income tax effects 5,760,033.66
Non-controlling interests effects (net of tax) 1,399,009.81
Total 15,881,091.17 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Numbe r of Shareholde rs and Holdings of Top 10 Shareholde rs at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders 38,631 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Shares in pledge or
Nature of Shareholding Number of Restricted
Name of shareholder frozen
shareholder percentage shares shares
Status Shares
State-owned
BEIJING GRAIN GROUP CO., LTD. 42.06% 288,439,561 164,877,598
legal person
BEIJING STATE-OWNED CAPITAL
State-owned
OPERATION AND M ANAGEM ENT 7.07% 48,510,460 48,510,460
legal person
CENTER
CHINA DEVELOPM ENT BANK State-owned
2.97% 20,393,051 0
CAPITAL CO., LTD. legal person
Foreign natural
LI SHERYN ZHAN M ING 2.54% 17,425,400 0
person
GOLD BUFFALO RUNYING
(TIANJIN) EQUITY INVESTM ENT Other 2.20% 15,116,472 0
FUND M ANAGEM ENT CO.,
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
LTD.—GOLD BUFFALO RUNYING
(TIANJIN) EQUITY INVESTM ENT
FUND (L.P.)
Domestic
M EI JIANYING 0.38% 2,604,203 0
natural person
Domestic
HU TIANGAO 0.34% 2,356,052 0
natural person
Domestic
ZHANG XIAOXIA 0.28% 1,949,250 0
natural person
Domestic
WANG XIAOXING 0.25% 1,742,700 0
natural person
Domestic
LIN LI 0.24% 1,669,600 0
natural person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
RM B-denominate
BEIJING GRAIN GROUP CO., LTD. 123,561,963 123,561,963
d ordinary stock
RM B-denominate
CHINA DEVELOPM ENT BANK CAPITAL CO., LTD. 20,393,051 20,393,051
d ordinary stock
Domestically
LI SHERYN ZHAN M ING 17,425,400 listed foreign 17,425,400
stock
GOLD BUFFALO RUNYING (TIANJIN) EQUITY
INVESTM ENT FUND M ANAGEM ENT CO., RM B-denominate
15,116,472 15,116,472
LTD.—GOLD BUFFALO RUNYING (TIANJIN) d ordinary stock
EQUITY INVESTM ENT FUND (L.P.)
RM B-denominate
M EI JIANYING 2,604,203 2,604,203
d ordinary stock
RM B-denominate
HU TIANGAO 2,356,052 2,356,052
d ordinary stock
Domestically
ZHANG XIAOXIA 1,949,250 listed foreign 1,949,250
stock
RM B-denominate
WANG XIAOXING 1,742,700 1,742,700
d ordinary stock
RM B-denominate
LIN LI 1,669,600 1,669,600
d ordinary stock
CHEN OUQIN 1,652,679 RM B-denominate 1,652,679
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
d ordinary stock
Beijing State-Owned Capital Operation And M anagement Center owns
100% of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co.,
Related or acting-in-concert parties among shareholders
Ltd. is a shareholder of the Company (a 42.06% holding). Apart from
above
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 1,742,700 shares in the Company
through his account of collateral securities for margin trading in
Soochow Securities Co., Ltd.
Top 10 ordinary shareholders involved in securities
2. Shareholder Hu Tiangao holds 338,000 shares in the Company
margin trading (if any)
through his account of collateral securities for margin trading in
Zheshang Securities Co., Ltd. and 2,018,052 shares in the Company
through his common account.
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 2019
Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. The decrease of monetary capital primarily driven by the repayment of bank borrowings and purchase of
income receipts regarding cash management of raised funds during the Reporting Period.
2. The increase of prepayments primarily driven by the increase of prepayments to suppliers arising from increase
of procurement out of necessity of production and operation during the Reporting Period.
3. The increase of other receivables primarily driven because the charge of warehouse service for Q3 2019 has not
been received yet as at 30 September 2019.
4. The increase of other current assets primarily because the purchase of income receipts regarding cash
management of raised funds during the Reporting Period has not expired yet as at 30 September 2019.
5. The decrease of construction in progress primarily driven by the transfer of some construction in progress into
fixed assets due to completion during the Reporting Period.
6. The increase of other non-current assets primarily driven by the increase of fixed time deposits of more than
one year during the Reporting Period.
7. The increase of notes payable and accounts payable primarily driven by the increase of debts to suppliers
arising from increase of procurement out of necessity of production and operation.
8. The decrease of payroll payable primarily driven by the payment in the Reporting Period of the 2018 annual
performance pay that had been set aside in 2018.
9. The increase of asset disposal income primarily driven by the net income from demolition of some courtyard
walls of the Company located at Luhe, Tongzhou District, Beijing for the eastern expansion of Guangqu Road in
2019.
10. The increase of net cash generated from financing activities primarily driven by bank loan repayment in 2019
out of necessity of production and operation plans.
11. The decrease of net profit attributable to the listed company’s shareholders before exceptional items is
primarily driven by the negative effects on the Sino-US trade friction and the increase of the raw material cost and
others.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Overview of significant events Disclosure date Announcement index
The Company and its wholly -owned Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
subsidiary Beijing Jingliang Food 13 July 2019 Suspension of Trading of the Company’s Stocks for Plan of Asset
Co., Ltd. intend to purchase 25.1149% Purchase via Cash Payment and Share Offering (2019-045)
of equity interests in Zhejiang Cninfo: Indicative Announcement of Hainan Jingliang Holdings
Xiaowangzi Food Share Co, Ltd. Co., Ltd. on Plan of Asset Purchase via Cash Payment and Share
collectively held by six natural 22 July 2019
Offering and Related-party Transactions and Resumption of
persons via cash payment and share Trading of the Company’s Stocks (2019-046)
offering. The six natural persons are
Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
Wang Yuecheng, Qiu Xiaobin, Hong
Progress of Plan of Asset Purchase via Cash Payment and Share
M uqiang, Zhu Yanjun, Yao Zishan 21 August 2019
Offering and Related-party Transactions after Disclosure thereof
and Shuai Yiwu. The Company held
(2019-056)
the board meeting on 19 July 2019, on
which the Proposal on Plan of Asset
Purchase via Cash Payment and
Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
Share Offering by Hainan Jingliang
Progress of Plan of Asset Purchase via Cash Payment and Share
Holdings Co., Ltd. and its Summary 21 September 2019
Offering and Related-party Transactions after Disclosure thereof
and proposals in relation to this
(2019-065)
transaction were reviewed and
approved.
The 8th Board of Directors and the 8th Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
24 September 2019
Supervisory Committee expired in Changing Directors and Supervisors (2019-067)
September 2019. Then, the Company Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
held the 3rd Extraordinary General
27 September 2019 Resolutions of the 1s t Meeting of the 9 th Board of Directors
M eeting of 2019 on 23 September
(2019-068)
2019 and approved all proposals in
relation to the general election of the
Board of Directors and the
Supervisory Committee via
cumulative voting and held the 1 st
M eeting of the 9th Board of Directors
and the 1st M eeting of the 9th Cninfo: Announcement of Hainan Jingliang Holdings Co., Ltd. on
Supervisory Committee on 26 27 September 2019 Resolutions of the 1 st Meeting of the 9th Supervisory Committee
September 2019, on which the (2019-069)
Chairman of the Board, the Chairman
of the Supervisory Committee and
members of all special committees
were elected and the senior
management were engaged.
Progress on any share repurchases:
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
III Commitme nts that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Othe r Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
√ Applicable □ Not applicable
Unit: RM B
Gain/Lo
Accumu
ss on
lated
fair-valu Purchas Gain/los
Initial M easure Beginni e
fair-valu
ed in
Sold in
s in Ending Account Funding
Security Security Security ng e Reporti
investm ment carrying changes Reporti Reporti carrying
type code name changes ng
method in ng ng amount ing title source
ent cost amount Reporti charged Period Period Period
to
ng
equity
Period
20,647, 20,647,
Cost 2,070,7 Self-rais
Other 204001 GC001 200,000 200,000 Other
method 48.08 ed
.00 .00
Cost 300,000 300,000 74,650. Self-rais
Other 204004 GC004 Other
method ,000.00 ,000.00 83 ed
Cost 120,200 120,200 119,991. Self-rais
Other 204007 GC007 Other
method ,000.00 ,000.00 46 ed
Cost 100,300 100,300 98,005. Self-rais
Other 204014 GC014 Other
method ,000.00 ,000.00 90 ed
21,167, 21,167,
2,363,3
Total 0.00 -- 0.00 0.00 0.00 700,000 700,000 0.00 -- --
96.27
.00 .00
Disclosure date of
announcement on Board’s
21 February 2019
consent for securities
investments
Disclosure date of
N/A
announcement on general
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
meeting’s consent for
securities investments (if
any)
V Wealth Manage ment Entrustment
√ Applicable □ Not applicable
Unit: RM B’0,000 (in RM B ten thousand yuan)
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Wealth management
product purchased from Idle raised 38,700 38,700 0
securities trader
Wealth management
product purchased from Self-funded 9,030 3,430 0
bank
Total 47,730 42,130 0
High-risk wealth management entrustments with amounts that are individually s ignificant, or with low security,
low liquidity, or no protection of the principal:
√ Applicable □ Not applicable
Unit: RM B’0,000 (in RM B ten thousand yuan)
Overv
Collec
iew
tion/pa Throu
Type Refere Expect Actual Any and
Invest yment Impair gh
of Way nce ed gain/lo plan index
Type Fundi ment of ment prescri
Truste wealth Princi Start End of annual earnin ss in for to
of ng with gain/lo allowa bed
e manag pal date date payba ized gs Report further more
trustee source princi ss in nce (if proced
ement ck return (if ing entrust infor
pal Report any) ure or
product (%) any) Period ment matio
ing not
n (if
Period
any)
Pay
the
www.
Agree princi
CITIC Securit Certific 14 cninfo
Idle ment pal
SECU ies ation 4 July Octob Unred .com.c
38,700 raised of and 2.70% 0 Yes Yes
RITIE compa of trust 2019 er eemed n:
capital contra earnin
S ny receipt 2019 2019-
ct gs at
044
the
maturi
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
ty date
of
invest
ment
Total 38,700 -- -- -- -- -- -- 0 0 -- -- -- --
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RM B’0,000 (in RM B ten thousand yuan)
Ending investment Actual
Ending as % of the gain/loss in
Type of derivative Start date End date
investment Company’s ending net Reporting
assets Period
Agricultural product future
1 January 2019 30 September 2019 7,532.71 3.19% -4,955.39
contract
Foreign exchange forwards 1 January 2019 30 September 2019 23 0.01% 376.1
Total -- -- 7,555.71 3.20% -4,579.29
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of board 21 February 2019
announcement approving
30 M arch 2019
derivative investment (if any)
Disclosure date of general 9 M arch 2019
meeting announcement
approving derivative 20 April 2019
investment (if any)
The Company’s conduction of hedging business is not aimed at speculation, but mainly to
Analysis of risks and control effectively avoid the impact of raw material price fluctuation on the Company. However, there will
measures associated with be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures
derivative investments held in market changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be
Reporting Period (including correspondingly brought because the futures trading adopts margin and marking-to-market system;
but not limited to market risk, 3. Internal control risk: there may be risks due to imperfect internal control system for the high
liquidity risk, credit risk, expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to
operational risk, legal risk, incomplete computer systems. The Company adopts following risk control measures: 1. M atching
etc.) the hedging business with the Company’s production and operation so as to maximally reduce the
price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business,
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
strictly control the hedging fund scale and reasonably plan and use margins; 3. Management System
of Commodity Futures Trading is formulated at the Company and subsidiaries levels respectively
based on actual situation of the Company and pursuant to 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 management system 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 Reporting The value of the Company’s future contracts changed according to the contract prices declared by
Period (fair value analysis the future exchange, which were broadly representative. And the fair value of the Company’s future
should include measurement contracts was executed in strict compliance with the future exchange’s settlement methods.
method and related
assumptions and parameters)
M ajor changes in accounting
policies and specific
accounting principles adopted
N/A
for derivative investments in
Reporting Period compared to
last reporting period
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 Association after verification.
Opinion of independent Based on normal production and operation, the Company uses foreign exchange derivatives
directors on derivative instruments to reduce exchange rate risks and finance costs, and control business risks. There is no
investments and risk control 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, and submit to the general meeting for
deliberation.
VII Visits Paid to the Company for Purposes of Research, Communication, Intervie w, etc.
during Reporting Pe riod
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2019
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by Controlling Shareholde r or Its Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd.
19 October 2019
13