Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2020
August 2020
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2020
Part I Important Notes
This Summary is based on the full text of the 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.
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.
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
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 Guan Ying Gao Deqiu
15/F, Jing Liang Building, NO. 16 East Third 15/F, Jing Liang Building, NO. 16 East Third
Office address Ring Middle Road, Chaoyang District, Ring Middle Road, Chaoyang District,
Beijing Beijing
Tel. 010-51672130 010-51672029
E-mail address 1124387865@qq.com gaodeqiu_jl@163.com
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2020 H1 2019 Change (%)
Operating revenue (RMB) 3,750,773,067.63 3,283,277,725.39 14.24%
Net profit attributable to the listed
73,762,895.19 51,510,904.41 43.20%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 67,995,189.95 41,194,473.59 65.06%
gains and losses (RMB)
Net cash generated from/used in operating
187,095,820.76 220,592,294.21 -15.18%
activities (RMB)
Basic earnings per share (RMB/share) 0.11 0.08 37.50%
Diluted earnings per share (RMB/share) 0.11 0.08 37.50%
Weighted average return on equity (%) 3.02% 2.24% 0.78%
30 June 2020 31 December 2019 Change (%)
Total assets (RMB) 5,334,498,957.68 5,231,266,600.19 1.97%
Equity attributable to the listed company’s
2,605,230,169.38 2,406,039,283.87 8.28%
shareholders (RMB)
3. Shareholders and Their Shares at Period-End
Unit: share
Number of preferred shareholders
Number of ordinary shareholders 59,539 with resumed voting rights (if 0
any)
Top 10 shareholders
Pledged or frozen
Nature of Shareholding
Name of shareholder Number of shares Restricted shares shares
shareholder percentage
Status Shares
BEIJING GRAIN GROUP State-owned legal
39.68% 288,439,561 164,877,598
CO., LTD. person
BEIJING STATE-OWNED
State-owned legal
CAPITAL OPERATION AND 6.67% 48,510,460 48,510,460
person
MANAGEMENT CENTER
Domestic natural
WANG YUECHENG 5.66% 41,159,887 41,159,887
person
Foreign natural
LI SHERYN ZHAN MING 1.88% 13,689,800
person
CHINA DEVELOPMENT State-owned legal
1.34% 9,707,366
BANK CAPITAL CO., LTD. person
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT
FUND MANAGEMENT
Other 0.87% 6,307,736
CO., LTD.—GOLD
BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Domestic natural
MEI JIANYING 0.36% 2,604,203
person
Domestic natural
WANG XIAOXING 0.27% 1,984,600
person
Domestic natural
ZHANG XIAOXIA 0.27% 1,949,250
person
Domestic natural
CHEN OUQIN 0.23% 1,652,679
person
① Beijing State-Owned Capital Operation and Management Center owns 100%
of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is the
Connected or acting-in-concert parties among controlling shareholder of the Company (a 39.68% holding). ② Wang
shareholders above Yuecheng is a Deputy General Manager of the Company. 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.
Shareholder Wang Xiaoxing holds 1,984,600 shares in the Company through his
Shareholders conducting margin trading (if any) account of collateral securities for margin trading in Soochow 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.
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 industry-specific disclosure requirements?
No.
In face of the constant hits by unfavorable factors such as the COVID-19 pandemic, the China-U.S. trade war and
the African swine fever in the first half of 2020, the Company proactively adjusted operating strategies, took the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
initiative to seize opportunities, forged ahead against headwinds, and responded to new changes with new
thinking. As a result, the Company achieved solid growth in operating results, as well as progress in innovation
and development amid stability. For the Reporting Period, the Company recorded operating revenue of
RMB3,751 million, up 14.24% year-on-year; and net profits of RMB95 million, representing a 46.08% increase
from a year ago. By operating division, the oils and oilseeds division generated operating revenue of RMB3,289
million (a 17.19% year-on-year growth) and net profits of RMB48.38 million (a 95% year-on-year increase); and
the food division reported operating revenue of RMB450 million (a year-on-year decline of 0.55%) and net profits
of RMB60.97 million (a 0.64% year-on-year expansion).
1. Performance of the Oils and Oilseeds Division
The oils and oilseeds division of the Company is committed to building six major operational platforms—“Risk
Control and R&D, Operation of Stocks, Import & Export and Oils & Oilseeds Trading, Procurement of Raw and
Auxiliary Materials, Production Management, and Product Marketing”, and building a competitive industrial
chain featuring resource integration, information sharing and mutual support based on those platforms. This
advantage came into play especially during the COVID-19 pandemic. Given a considerable decrease in demand
for oils in small package of certain channels such as restaurants, canteens and food companies in the first half of
the year, the Company proactively promoted integrated marketing and online sales, emphasized initiative in
various work, and refreshed the operation and management system under the new circumstances. The oils
pressing business enhanced market judgment and seized raw material procurement opportunities. Apart from an
advance order of soybean placed in late last year, procurement was scheduled reasonably to ensure the supply of
raw materials. Jingliang Tianjin achieved, in the first half of the year, an operation rate of as high as 82.35% and a
significant year-on-year growth in net profits. The oils and oilseeds trading business adhered to the hedging model
and placed importance on development of futures, especially on product varieties that were less impacted in the
pandemic such as homegrown soybean, sunflower seed oil and non-GMO rapeseed oil, which has helped cushion
the impact of the pandemic. The oil storage business refreshed the service model, actively explored cooperation
models, and continued to build the brand in storage and management service.
2. Performance of the Food Production Division
With a decline in business in the first quarter of the year due to the pandemic, the food production division
adjusted marketing strategies in a timely manner, and continued to carry out product innovation. The snack food
business beefed up production and achieved a monthly output that is higher than the pre-pandemic average while
giving full play to e-commerce channels and strengthening marketing through short videos and live streaming to
turn the crisis to opportunities, in addition to maintaining and promoting the existing distribution channels. The
baking business strengthened development of new products, completed the development and launch of new
products in cooperation with other relevant entities, beefed up online sales and improved the sales model.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
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 cases.
(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
No such cases.
Part IV Key Corporate Information
1. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual financial report was not audited.
2. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Unit: Yuan
Program June 30th, 2020 December 31st, 2019
Current Assets:
Monetary Capital 570,017,788.15 557,168,512.39
Deposit Reservation for Balance
Lending Funds
Transactional Monetary Assets 153,300,000.00 161,300,000.00
Derivative Financial Assets 120,761,236.80 88,792,254.00
Notes Receivable
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Account Receivable 55,374,522.52 80,743,986.81
Receivables Financing
Advance Payment 603,135,980.58 138,379,800.10
Receivable Premium
Reinsurance Accounts Receivable
Provision of Cession Receivable
Other Receivables 19,032,159.09 19,220,097.34
Including: The Interest Receivable 1,854,761.12 3,927,438.90
Dividend Receivable
Redemptory Monetary Capital for
Sale
Inventory 908,377,480.84 1,412,755,661.65
Contract Assets
Holding Assets to be Sold.
Non-Current Assets Expiring within
One Year
Other Current Assets 699,968,761.99 560,297,233.13
Total Current Assets 3,129,967,929.97 3,018,657,545.42
Non-current Assets:
offer loans and make advance
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 205,249,112.47 198,301,333.79
Investment in other equity
20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment Property 23,331,107.05 31,781,350.74
Fixed Assets 1,166,435,679.47 1,210,450,340.22
Construction in progress 13,941,962.47 17,876,177.78
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset
Intangible Assets 360,784,402.31 368,170,434.38
Development Expenditure
Goodwill 191,394,422.51 191,394,422.51
Long-term Unamortized Expenses 20,558,597.19 21,026,628.97
Deferred Tax Asset 12,835,744.24 2,603,066.38
Other Non-current Assets 190,000,000.00 151,005,300.00
Non-current Assets in Total 2,204,531,027.71 2,212,609,054.77
Total Assets 5,334,498,957.68 5,231,266,600.19
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Current Liability:
Short-term Borrowing 1,587,070,726.95 1,329,238,701.60
Borrowing from the Central Bank
Borrowing Funds
Transactional Monetary Liabilities
Derivative Financial Liabilities
Notes Payable
Accounts Payable 130,577,918.81 130,568,413.43
Account Collected in Advance 481,119,461.41
Contract Liabilities 304,087,152.59
Financial Assets Sold for Repurchase
Deposits from Customers and
Interbank
Receivings from Vicariously Traded
Securities
Receivings from Vicariously Sold
Securities
Employee Pay Payable 13,967,836.74 25,192,583.58
Tax Payable 33,792,837.21 47,842,621.41
Other payables 140,262,576.19 96,171,396.23
Including: The Payable Interest 22,529,982.62 24,604,524.69
Dividends Payable 11,013,302.88 11,013,302.88
Handling Charges and Commissions
Payable
Dividend Payable for Reinsurance
Holding Liabilities to Be Sold
Non-Current Liabilities Expiring
within One Year
Other current liabilities 30,459,525.96
Total Current Liabilities 2,240,218,574.45 2,110,133,177.66
Non-Current Liabilities:
Provision for Insurance Contracts
Long-Term Loan
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation
Long-term account payable
Long-term employee pay payable 5,720,716.87 5,730,662.87
Anticipation liabilities
Deferred Revenue 70,779,847.50 71,518,169.27
Deferred Income Tax Liabilities 45,652,045.42 52,788,949.62
Other Non-current Liabilities
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Total Non-current Liabilities 122,152,609.79 130,037,781.76
Total Liabilities 2,362,371,184.24 2,240,170,959.42
Owners Equity:
Capital stock 726,950,251.00 685,790,364.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 1,679,833,419.67 1,595,672,048.19
Minus: Treasury Stock
Other Comprehensive Income 374,359.98 267,628.14
Reasonable Reserve
Surplus reserves 122,122,436.98 122,122,436.98
Generic Risk Reserve
Undistributed profit 75,949,701.75 2,186,806.56
Total equity attributable to the
2,605,230,169.38 2,406,039,283.87
shareholders of parent company
Minority Equity 366,897,604.06 585,056,356.90
Total owners' equity 2,972,127,773.44 2,991,095,640.77
Total liabilities and owner's equity 5,334,498,957.68 5,231,266,600.19
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
2. Balance sheet of parent company
Unit: Yuan
Program June 30th, 2020 December 31st, 2019
Current Assets:
Monetary Capital 5,198,155.68 5,606,837.37
Transactional Monetary Assets
Derivative Financial Assets
Notes Receivable
Account Receivable 42,510.00 42,510.00
Receivables Financing
Advance Payment 518,668.92 532,843.92
Other Receivables 12,307,166.41 12,612,756.48
Including: The Interest Receivable
Dividend Receivable
Inventory 4,824,035.45 4,824,035.45
Contract Assets
Holding Assets to be Sold.
Non-Current Assets Expiring within
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
One Year
Other Current Assets 2,412,474.92 2,114,765.22
Total Current Assets 25,303,011.38 25,733,748.44
Non-current Assets:
Lending Investments
Other Investment on Bonds
Held-to-Maturity Investment
Long-term Receivables
Long-term Equity Investment 2,626,437,846.24 2,377,420,527.10
Investment in other equity
20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment Property 5,325,139.43 5,476,357.73
Fixed Assets 2,993,768.05 3,028,013.69
Construction in progress
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset
Intangible Assets 40,797.91 94,800.66
Development Expenditure
Goodwill
Long-term Unamortized Expenses 39,308.08 86,477.92
Deferred Tax Asset
Other Non-current Assets
Non-current Assets in Total 2,654,836,859.71 2,406,106,177.10
Total Assets 2,680,139,871.09 2,431,839,925.54
Current Liability:
Short-term Borrowing
Transactional Monetary Liabilities
Derivative Financial Liabilities
Notes Payable
Accounts Payable
Account Collected in Advance 38,896.41
Contract Liabilities 38,896.41
Employee Pay Payable 281,000.00 480,445.28
Tax Payable 950,951.18 1,709,752.97
Other payables 517,484,318.39 503,550,996.94
Including: The Payable Interest 21,082,795.47 21,082,795.47
Dividends Payable 3,213,302.88 3,213,302.88
Holding Liabilities to Be Sold
Non-Current Liabilities Expiring
within One Year
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Other current liabilities
Total Current Liabilities 518,755,165.98 505,780,091.60
Non-Current Liabilities:
Long-Term Loan
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation
Long-term account payable
Long-term employee pay payable
Anticipation liabilities
Deferred Revenue
Deferred Income Tax Liabilities
Other Non-current Liabilities
Total Non-current Liabilities
Total Liabilities 518,755,165.98 505,780,091.60
Owners Equity:
Capital stock 726,950,251.00 685,790,364.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 2,381,244,900.85 2,173,387,468.71
Minus: Treasury Stock
Other Comprehensive Income
Reasonable Reserve
Surplus reserves 109,487,064.39 109,487,064.39
Undistributed profit -1,056,297,511.13 -1,042,605,063.16
Total owners' equity 2,161,384,705.11 1,926,059,833.94
Total liabilities and owner's equity 2,680,139,871.09 2,431,839,925.54
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
3. Consolidated Income Statement
Unit: Yuan
Program Half year of 2020 Half year of 2019
I. Gross Revenue 3,750,773,067.63 3,283,277,725.39
Including: operating income 3,750,773,067.63 3,283,277,725.39
Interest Income
Earned Premium
Handling charges and commissions
income
II. Total Operating Cost 3,575,140,175.66 3,253,814,226.61
Operating costs 3,356,201,258.06 3,040,678,741.14
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Interest Expenditure
Handling Charges and
Commissions Expenditure
Surrender Value
Net Payments for Insurance Claims
Net withdrawal of reserve fund for
insurance contracts
Bond Insurance Expense
Reinsurance Expenses
Tax and Surcharges 8,651,111.37 11,600,563.64
Selling Expenses 106,641,119.14 101,231,138.27
Administrative Expenses 78,032,286.29 81,298,228.37
Research and Development
2,803,717.02 531,066.00
Expenditure
Financial Expenses 22,810,683.78 18,474,489.19
Including: The Interest Expense 16,975,042.06 22,981,293.07
Interest Income 5,373,488.21 4,120,628.58
plus: other income 5,046,948.84 9,871,098.22
Investment income ("-" refers to
16,695,925.99 9,179,302.09
losses)
Of which: Income from investment
6,947,778.68 2,824,933.21
in joint ventures
The financial assets measured at
amortized cost terminates the recognition
of income ( "-" refers to losses)
Exchange Earning ( "-" refers to
losses)
Net Open Hedging Income ( "-"
refers to losses)
Income of Fair Value Changes ( "-"
-76,876,667.25 26,158,281.22
refers to losses)
Credit Loss ( "-" refers to losses)
Assets Impairment Loss ( "-" refers
to losses) -197,695.56
Assets Disposal Income ( "-" refers
11,997,518.40
to losses)
III. Operating Profit ( "-" refers to losses) 120,499,099.55 86,472,003.15
plus: Non-operating income 689,439.82 1,716,443.59
minus: Non-operating expenses 1,418,671.77 822,418.62
IV. Total Profit ( "-" refers to total losses) 119,769,867.60 87,366,028.12
minus: income tax expense 24,461,831.86 22,121,776.12
V. Net Profit ( "-" refers to net losses) 95,308,035.74 65,244,252.00
i. Classified Based on Business
Continuity
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
1. Net income from continuing
95,308,035.74 65,244,252.00
operation ( "-" refers to net losses)
2. Net income from discontinuing
operation ( "-" refers to net losses)
ii. Classified Based on the Attribution of
the Ownership
1. Net income attributed to
73,762,895.19 51,510,904.41
shareholders of parent company
2. Minority Interest Income 21,545,140.55 13,733,347.59
VI. Net of Tax of Other Comprehensive
106,731.84 50,944.52
Income
Net of tax of other comprehensive
income attributed to shareholders of 106,731.84 50,944.52
parent company
i. Other Comprehensive Income That
Can't Reclassify Income and Loss
1. Re-measure the change value of
defined benefit pension plans
2. Other comprehensive income
that can not reverse the income and
loss under the equity law.
3. Investment of other equity
instruments in the fair value
changes.
4. The fair value changes of credit
risk of the company
5. Others
ii. Other Comprehensive Income That
Can Be Re-classified into the Income and 106,731.84 50,944.52
Loss
1. Other comprehensive income
that can reverse the income and loss
under the equity law.
2. Investment of other obligatory
rights in the fair value changes.
3. Financial assets that can be
re-classified into other
comprehensive income
4. Credit impairment reserve for
other creditor's rights investment
5. Cash Flow Hedging Reserve
6. The Balance of Conversion of
Foreign Currency Financial 106,731.84 50,944.52
Statements
7. Others
Net of tax of other comprehensive
income attributed to minority shareholder
VII. Total Comprehensive Income 95,414,767.58 65,295,196.52
Total comprehensive income attributed
73,869,627.03 51,561,848.93
to shareholders of parent company
Total comprehensive income attributed
21,545,140.55 13,733,347.59
to minority shareholder
VIII. Earnings Per Share:
i. Basic Earnings Per Share 0.11 0.08
ii. Diluted Earnings Per Share 0.11 0.08
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
4. Income Statement of Parent Company
Unit: Yuan
Program Half year of 2019 Half year of 2018
I. Operating Income 376,609.17
minus: operating costs
Tax and Surcharges 2,700.00 69,076.80
Selling Expenses
Administrative Expenses 13,524,055.12 13,511,405.60
Research and Development
Expenditure
Financial Expenses -5,045.16 7,564,964.27
Of which: The Interest Expense 7,571,583.49
Interest Income 8,250.44 11,083.83
plus: other income 50,313.02
Investment income ("-" refers
398,338.36
to losses)
Of which: Income from
investment in joint ventures
The financial assets
measured at amortized cost terminates
the recognition of income ( "-" refers to
losses)
Net open hedging income ( "-"
refers to losses)
Income of Fair Value Changes
( "-" refers to losses)
Credit Loss ( "-" refers to
losses)
Assets Impairment Loss ( "-"
-4,344.16
refers to losses)
Assets Disposal Income ( "-"
refers to losses)
II. Operating Profit ( "-" refers to losses) -12,696,449.41 -21,149,790.83
plus: Non-operating income 4,001.44
minus: Non-operating expenses 1,000,000.00 469,440.00
III. Total Profit ( "-" refers to total
-13,692,447.97 -21,619,230.83
losses)
minus: income tax expense
IV. Net Profit ( "-" refers to net losses) -13,692,447.97 -21,619,230.83
i. Net income from continuing
-13,692,447.97 -21,619,230.83
operation ( "-" refers to net losses)
ii. Net income from discontinuing
operation ( "-" refers to net losses)
V. Net of Tax of Other Comprehensive
Income
i. Other comprehensive income that
can't reclassify income and loss
1. Re-measure the change
value of defined benefit pension plans
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
2. Other comprehensive
income that can not reverse the income
and loss under the equity law.
3. Investment of other
equity instruments in the fair value
changes.
4. The fair value changes of
credit risk of the company
5. Others
ii. Other comprehensive income
that can be re-classified into the income
and loss
1. Other comprehensive
income that can reverse the income and
loss under the equity law.
2. Investment of other
obligatory rights in the fair value
changes.
3. Financial assets that can
be re-classified into other
comprehensive income
4. Credit impairment
reserve for other creditor's rights
investment
5. Cash Flow Hedging
Reserve
6. The Balance of
Conversion of Foreign Currency
Financial Statements
7. Others
VI. Total Comprehensive Income -13,692,447.97 -21,619,230.83
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
5. Consolidated Statement of Cash Flow
Unit: Yuan
Program Half year of 2020 Half year of 2019
I. Cash flow from operating activities:
Cash received for selling goods and providing
3,900,040,688.18 3,560,970,102.54
services
Net increase in customer deposits and interbank
deposits
Net increase in borrowing from the Central Bank
Net increase in borrowing from other financial
institutions
Cash received from the premium of the original
insurance contract
Net cash received from reinsurance business
Net increase of insured deposit and investment
Cash charged with interest, handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchase funds
Net Cash Received of Acting Trading Securities
Refunds of Taxes Received 6,282,179.39 4,638,160.06
Other Cash Received Related to Business
488,634,210.14 348,104,540.90
Activities
Subtotal of Cash flow of Operating Activities 4,394,957,077.71 3,913,712,803.50
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Cash for Purchase of Goods and Labor Services 3,523,972,309.51 3,124,587,948.71
Net Increase in Customer Loans and Advances
Net Increase in Deposits in the Central Bank and
Other Banks
Cash for Payment of Original Insurance Contract
Claims
Net Increase of Lending Funds
Cash to Pay the Interest, Handling Fees and
Commissions
Cash to Pay the Policy Dividend
Cash Paid to and for Employees 152,383,335.08 145,181,797.67
Tax Payments 96,716,033.84 83,586,844.52
Cash Payment of Other Related Business
434,789,578.52 339,763,918.39
Activities
Subtotal of Cash Outflow of Operating Activities 4,207,861,256.95 3,693,120,509.29
Net Cash Flow from Operating Activities 187,095,820.76 220,592,294.21
II. Cash Flow from Investment
Cash Received in Disinvestment 1,316,317,255.34 1,302,736,691.57
Cash Received in Return of Investment 5,120,558.91 3,600,120.65
Net Cash Received from Disposal of Fixed Assets,
6,618.58 66,511.68
Intangible Assets and Other Long-term Assets
Net Cash Received from Disposal of Subsidiaries
5,000,000.00
and Other Operating Units
Cash Received Related to Other Business
Activities
Subtotal of Cash flow of Operating Activities 1,326,444,432.83 1,306,403,323.90
Net Cash Payment for the Purchase of Fixed
Assets, Intangible Assets and Other Long-term 11,385,922.53 26,905,240.57
Assets
Cash Payment for Investment 1,709,222,428.58 1,870,848,788.60
Net Increase in Hypothecated Loan
Net Cash Payment of Subsidiaries and Other
Business Units
Cash Payment of Other Activities Related to
Investment
Subtotal of Cash Outflow of Investment Activities 1,720,608,351.11 1,897,754,029.17
Net Cash Flow from Investment Activities -394,163,918.28 -591,350,705.27
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Of which: Cash Received by Subsidiaries in
Absorbing Investment from Minority Shareholders
Cash Received from Loans 1,643,287,048.37 1,441,114,788.78
Cash Received by Issuing Bonds
Other Cash Received Related to Financial
Activities
Subtotal of Cash flow of Financial Activities 1,643,287,048.37 1,441,114,788.78
Cash Payment for Debt 1,385,455,023.02 1,268,871,965.95
Cash Paid for Distribution of Dividends, Profits or
26,157,547.48 47,473,893.65
Interests
15
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Of which: Dividends and Profits Paid by
Subsidiaries to Minority Shareholders
Cash Payment of Other Activities Related to
Financial Activities
Subtotal of Cash Outflow of Financial Activities 1,411,612,570.50 1,316,345,859.60
Net Cash Flow from Financial Activities 231,674,477.87 124,768,929.18
IV. The Impact of Change in Exchange Rate on Cash
-9,686,369.41 3,248,224.24
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 14,920,010.94 -242,741,257.64
Plus: Initial Cash and cash Equivalents Balance 555,097,777.21 867,870,016.78
VI. Cash and Cash Equivalents Balance at the End of
570,017,788.15 625,128,759.14
the Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
6. Statement of Cash Flows of Parent Company
Unit: Yuan
Program Half year of 2020 Half year of 2019
I. Cash Flow from Operating Activities:
Cash received for selling goods and providing services
Refunds of Taxes Received 200.00 1,800.00
Other Cash Received Related to Business Activities 24,529,151.07 29,377,536.58
Subtotal of Cash flow of Operating Activities 24,529,351.07 29,379,336.58
Cash for Purchase of Goods and Labor Services 24,592.17
Net Increase in Customer Loans and Advances
Net Increase in Deposits in the Central Bank and Other
Banks
Cash for Payment of Original Insurance Contract Claims
Net Increase in Financial Assets Held for Trading Purposes
Net Increase of Lending Funds
Cash to Pay the Interest, Handling Fees and Commissions
Cash to Pay the Policy Dividend
Cash Paid to and for Employees 7,904,980.50 9,271,322.77
Tax Payments 298,780.02 71,408.74
Cash Payment of Other Related Business Activities 18,496,617.45 50,350,341.42
Subtotal of Cash Outflow of Operating Activities 26,724,970.14 59,693,072.93
Net Cash Flow from Operating Activities -2,195,619.07 -30,313,736.35
II. Cash Flow from Investment
Cash Received in Disinvestment
Cash Received in Return of Investment
Net Cash Received from Disposal of Fixed Assets,
Intangible Assets and Other Long-term Assets
Net Cash Received from Disposal of Subsidiaries and
Other Operating Units
Cash Received Related to Other Business Activities
Subtotal of Cash flow of Operating Activities
16
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Net Cash Payment for the Purchase of Fixed Assets,
142,327.44 109,751.52
Intangible Assets and Other Long-term Assets
Cash Payment for Investment 1,780,563.05
Net Cash Payment of Subsidiaries and Other Business
Units
Cash Payment of Other Activities Related to Investment
Subtotal of Cash Outflow of Investment Activities 142,327.44 1,890,314.57
Net Cash Flow from Investment Activities -142,327.44 -1,890,314.57
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Cash Received from Loans 4,000,000.00 27,700,000.00
Other Cash Received Related to Financial Activities
Subtotal of Cash flow of Financial Activities 4,000,000.00 27,700,000.00
Cash Payment for Debt
Cash Paid for Distribution of Dividends, Profits or
Interests
Cash Payment of Other Activities Related to Financial
Activities
Subtotal of Cash Outflow of Financial Activities
Net Cash Flow from Financial Activities 4,000,000.00 27,700,000.00
IV. The Impact of Change in Exchange Rate on Cash and
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 1,662,053.49 -4,504,050.92
Plus: Initial Cash and cash Equivalents Balance 3,536,102.19 13,597,659.66
VI. Cash and Cash Equivalents Balance at the End of the
5,198,155.68 9,093,608.74
Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
17
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
7. Consolidated Statement of Change in Equity
Unit: Yuan
Half year of 2020
Ownership interest attributable to the parent company
Other equity instruments
Program Other Generic Minority Total owners'
Prefere Perpetual Minus: Reasonable Undistributed
Capital stock Capital reserve Comprehensiv Surplus reserves Risk Others In total Equity equity
nce Capital Others Treasury Stock Reserve profit
e Income Reserve
Shares Securities
I. Ending Balance of Last Year 685,790,364.00 1,595,672,048.19 267,628.14 122,122,436.98 2,186,806.56 2,406,039,283.87 585,056,356.90 2,991,095,640.77
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under the
Same Control
Others
II. Beginning Balance of This
685,790,364.00 1,595,672,048.19 267,628.14 122,122,436.98 2,186,806.56 2,406,039,283.87 585,056,356.90 2,991,095,640.77
Year
III. Changes in This Period ( "-"
41,159,887.00 84,161,371.48 106,731.84 73,762,895.19 199,190,885.51 -218,158,752.84 -18,967,867.33
refers to losses)
A. Total Comprehensive Income 106,731.84 73,762,895.19 73,869,627.03 21,545,140.55 95,414,767.58
B. Input and Capital Reduction of
41,159,887.00 84,161,371.48 125,321,258.48 -237,694,893.39 -112,373,634.91
Owners
1. Common Stock Invested by the
Owner
2. Invested Capital of Other
41,159,887.00 207,857,432.14 249,017,319.14 249,017,319.14
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others -123,696,060.66 -123,696,060.66 -237,694,893.39 -361,390,954.05
C. Profit Distribution -2,009,000.00 -2,009,000.00
1. Withdrawal Legal Surplus
2. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
-2,009,000.00 -2,009,000.00
Shareholders)
4. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
18
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726,950,251.00 1,679,833,419.67 374,359.98 122,122,436.98 75,949,701.75 2,605,230,169.38 366,897,604.06 2,972,127,773.44
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2019
Ownership interest attributable to the parent company
Other equity instruments
Program Minus: Other Total owners'
Preferen Perpetual Reasonable Surplus Generic Risk Undistributed Minority Equity
Capital stock Capital reserve Treasury Comprehensiv Others In total equity
ce Capital Others Reserve reserves Reserve profit
Stock e Income
Shares Securities
I. Ending Balance of Last Year 685,790,364.00 1,595,711,805.31 438.33 122,122,436.98 -131,155,119.19 2,272,469,925.43 566,596,569.02 2,839,066,494.45
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under the
Same Control
Others
II. Beginning Balance of This
685,790,364.00 1,595,711,805.31 438.33 122,122,436.98 -131,155,119.19 2,272,469,925.43 566,596,569.02 2,839,066,494.45
Year
III. Changes in This Period ( "-"
50,944.52 51,510,904.41 51,561,848.93 1,086,293.89 52,648,142.82
refers to losses)
A. Total Comprehensive
31,507.57 51,510,904.41 51,542,411.98 13,733,347.59 65,275,759.57
Income
B. Input and Capital Reduction
-1,800,000.00 -1,800,000.00
of Owners
1. Common Stock Invested by
-1,800,000.00 -1,800,000.00
the Owner
2. Invested Capital of Other
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution -10,847,053.70 -10,847,053.70
1. Withdrawal Legal Surplus
2. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
-10,847,053.70 -10,847,053.70
Shareholders)
4. Others
19
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
D. Internal Carry-over of
19,436.95 19,436.95 19,436.95
Owner's Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus
Reserve to Additional Capital
(Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others 19,436.95 19,436.95 19,436.95
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 685,790,364.00 1,595,711,805.31 51,382.85 122,122,436.98 -79,644,214.78 2,324,031,774.36 567,682,862.91 2,891,714,637.27
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
8. Statement of Change in Equity of Parent Company
Unit: Yuan
Half year of 2020
Other equity instruments
Program Other
Perpetual Minus: Treasury Reasonable Undistributed
Capital stock Preference Capital reserve Comprehensive Surplus reserves Others Total owners' equity
Capital Others Stock Reserve profit
Shares Income
Securities
I. Ending Balance of Last Year 685,790,364.00 2,173,387,468.71 109,487,064.39 1,042,605,063.16 1,926,059,833.94
Plus: Changes in Accounting
Policies
Early Error Correction
Others
II. Beginning Balance of This Year 685,790,364.00 2,173,387,468.71 109,487,064.39 1,042,605,063.16 1,926,059,833.94
III. Changes in This Period ( "-"
41,159,887.00 207,857,432.14 -13,692,447.97 235,324,871.17
refers to losses)
A. Total Comprehensive Income -13,692,447.97 -13,692,447.97
B. Input and Capital Reduction of
41,159,887.00 207,857,432.14 249,017,319.14
Owners
20
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
1. Common Stock Invested by the
Owner
2. Invested Capital of Other Equity
41,159,887.00 207,857,432.14 249,017,319.14
Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Distribution of Owners (or
Shareholders)
3. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve to
Additional Capital (Or Equity)
2. Conversion of Surplus Reserve to
Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726,950,251.00 2,381,244,900.85 109,487,064.39 1,056,297,511.13 2,161,384,705.11
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2019
Other equity instruments
Program Other
Perpetual Minus: Treasury
Capital stock Preference Capital reserve Comprehensive Reasonable Reserve Surplus reserves Undistributed profit Others Total owners' equity
Capital Others Stock
Shares Income
Securities
I. Ending Balance of Last Year 685,790,364.00 2,173,387,468.71 109,487,064.39 -994,322,827.98 1,974,342,069.12
Plus: Changes in Accounting
21
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Policies
Early Error Correction
Others
II. Beginning Balance of This
685,790,364.00 2,173,387,468.71 109,487,064.39 -994,322,827.98 1,974,342,069.12
Year
III. Changes in This Period ( "-"
-21,619,230.83 -21,619,230.83
refers to losses)
A. Total Comprehensive Income -21,619,230.83 -21,619,230.83
B. Input and Capital Reduction of
Owners
1. Common Stock Invested by the
Owner
2. Invested Capital of Other
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Distribution of Owners (or
Shareholders)
3. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 685,790,364.00 2,173,387,468.71 109,487,064.39 -1,015,942,058.81 1,952,722,838.29
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
22
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Hainan Jingliang Holdings Co., Ltd.
Notes to 2020 Semi-annual Financial Statements
(Unless otherwise stated, the amount unit is RMB Yuan)
I. Basic Information of the Company
(I) The registration place, form of organization and headquarter address of the company
Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang
Holdings") is a limited company which was approved by No.1 Qiongfu Document (1992) of the General Office of
Hainan Provincial People's Government and No. 6 Qiongyin document (1992) of Hainan Provincial People's Bank and
was re-registered by Hainan Zhujiang Industrial Company on January 11, 1992. After the re-registration, the company
issued 81,880,000 shares in which the net assets of the original company were exchanged with 60,793,600 shares and
21,086,400 shares were newly issued. The company's name is Hainan Pearl River Industrial Co., Ltd. The registration
number of the business license of the joint stock company is 20128455-6, and the holding parent company, Guangzhou
Zhujiang Industrial Company holds 36,393,600 shares, accounting for 44.45% of the shares. In December 1992,
according to the No. 83 document issued by the Securities and Exchange Administration Office of the People's Bank of
China in 1992, the company was approved to issue additional 21,086,400 shares which were traded on Shenzhen Stock
Exchange. The company mainly involves the real estate industry.
On March 25, 1993, according to No. 028 document issued by the Office of the Leading Group of Hainan Stock-holding Pilot
System (1993) and No. 099 document issued by Branch of Bank of China in Shenzhen Special Economic Zone(1993),
the company increased its share capital by 2 shares in accordance with the original share capital allotment of 10 and 5,
and then increased its share capital by 139,196,000 shares. At the end of 1993, the controlling shareholder, Guangzhou
Pearl River Industrial Corporation held 48,969,120 shares, accounting for 35.18%.
In 1994, the capital stocks were increased by the ratio of 10:10 and the total stock capital was 278,392,000 shares.
The dominant stockholder, Guangzhou Pear River Industrial Company held 97,938,240 shares, accounting for 35.18%
of the shares.
In 1995, according to No. 45 document and No. 12 documented issued by Shenzhen Securities Office (1995), the
company was approved to issue 50,000,000 B shares. Based on the additional B shares, the capital stock was increased
by 10:1.5 ratio. The capital stock was 377,650,800 shares after the increase. The holding parent company Guangzhou
Pearl River Industrial Corporation held 112,628,976 shares, accounting for 29.82% of the shares.
In 1999, Guangzhou Pearl River Industrial Group 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, accounting for 29.82% of the total shares, and became the dominant
stockholder of the company.
On January 10 of 2000, the company was changed to Hainan Pearl River Holdings Co., Ltd. and the business
23
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
license of for legal person was renewed by the Administration for Industry and Commerce of Hainan Province.
On August 17 of 2006, the reform of the equity division structure of the company was implemented. The company
increased its share capital to all shareholders in a ratio of 10 to 1.3. The total share capital increased by 49,094,604
shares. The original non-tradable shareholders transferred the additional shares to the tradable A-share shareholders.
Beijing Wanfa Real Estate Development Co., Ltd. advanced the consideration shares of shareholders who didn’t express
their opinions clearly. After the increase of shares, the total capital stock was 426,745,404 shares. The former controlling
shareholder, Beijing Wanfa Real Estate Development Co., Ltd., held 107,993,698 shares, accounting for 25.31% of the
shares. In 2007, non-tradable shareholders repaid 3,289,780 shares in equity division consideration. In 2009, non-tradable
shareholders repaid 1,196,000 shares in equity division consideration.
On September 2 of 2016, Beijing Wanfa Real Estate Development Co., Ltd., the former controlling shareholder,
transferred 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, accounting for 26.36% of the total shares. In November
2016, based on the goal of the major assets reorganization and the confidence in the future of the company, Beijing Grain
Group Co., Ltd. decided to increase its shares through competitive bidding in the secondary market, increased its shares to
123,561,963 shares, accounting for 28.95% of the total shares and become the first majority shareholder of the company.
According to the major assets reorganization plan and delivery agreement, the company determined July 31, 2017 as the
delivery date of major assets. On September 14, 2017, in accordance with the resolution of the 2nd provisional shareholders’ meeting
of the company on November 18 of 2016 and the Approval of Hainan Pearl River Holding Company Limited to Purchase Assets and
Raise Matching Funds from Beijing Grain Group Limited Company issued by China Securities Regulatory Commission on July 28,
2017 (Approval No. 1391 Supervisory License (2017) authorization: 1), the company purchases assets from the original shareholders
of Beijing Grain Products Co., Ltd. by issuing 210,079,552 shares and paying the difference of transaction price (1,699,543,600
yuan). The face value of the issued share was 1.00 yuan, and the issue price was 8.09 yuan per share. 2. The company has issued
48,965,408 new shares to Beijing Grain Group in private as the matching funds to purchase the assets. The face value of the issued
share was 1.00 yuan, and the issue price was RMB 8.82 per share. Beijing Grain Group purchased the shares with monetary capital.
The registered capital after issuance is RMB 685,790,364.00 and the equity is RMB 685,790,364.00. Grain Group accounted for
42.06% of the total shares and became the largest shareholder of the company.
On March 10, 2018, the company completed the registration procedures for the change of company name, legal
representative, registered capital and business scope, and obtained the Business License of Enterprise Legal Person
approved and renewed by Hainan Administration for Industry and Commerce.
The company completed the procedures for the change of legal representative on April 16, 2019.
The relevant information after the change is as follows:
Company Name: Hainan Jingliang Holdings Co., Ltd.
Unified Social Credit Code: 914600002012845568
24
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Type: Limited company (listed and state-owned holding company)
Registration Address: 29 Floor, Emperor Building, Pearl River Plaza, Binhai Avenue, Haikou.
Office Address: 29 Floor, Emperor Building, Pearl River Plaza, Binhai Avenue, Haikou.
Legal Representative: Li Shaoling
Register Date: March 22, 1988
Business Term: March 22 of 1988 to September 20 of 2025
The parent company is Beijing Food Group Co., Ltd.
On April 3, 2020, the purchase of 25.1149% of Zhejiang Xiaowangzi's equity by the company and its subsidiary
Beijing Jingliang Food Co., Ltd. through cash payment and issuance of shares has been approved by the China Securities
Regulatory Commission. As of the date of this financial report, the transaction has been completed.
(II) The nature of the Company's business and its main business activities
1. Business scope of the Company
The Company belongs to manufacturing-agricultural and sideline food processing industry, mainly including: food,
beverages, oils, oils and by-products, vegetable proteins and their products, organic fertilizers, microbial fertilizers and
agricultural fertilizers; land consolidation, soil remediation; agricultural comprehensive planting and development,
animal husbandry and aquaculture, production and marketing of agricultural equipment; computer network technology,
investment in communication projects, research and development and application of high-tech products; investment and
consultation of environmental protection projects; animation, graphic design; import and export trade in goods and
technology; rental of own premises. (General business projects shall be operated independently, and the permitted
business projects shall be operated on the basis of relevant permits or approval documents) (Projects subject to approval
by the relevant departments shall not be allowed to engage in business activities until approved by the relevant
departments in accordance with the law.).
2. The nature of the Company's business and its main business activities
The Company and its subsidiaries are principally engaged in the processing, production and marketing of food,
agricultural and by-products, oils and fats, oils and leisure foods.
3. Basic framework of the Company
The basic organizational structure of the Company: the shareholders' general meeting is the highest authority of the
Company, the board of directors is the executive body of the shareholders' general meeting, the board of supervisors is the
internal supervision body of the Company, and the general manager is responsible for the daily operation and management
of the Company. The Company consists of the Office of the Board of Directors, the Office of the Board of Supervisors, the
Department of Comprehensive Affairs, the Department of Securities Affairs, the Department of Strategic Investment, the
Department of Finance (Settlement Center), the Department of Legal Affairs and Compliance, the Department of Human
Resources, the Department of Party and Mass Work, and the Department of Discipline Inspection and Supervision.
25
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
On May 6 of 2010, Beijing Investment Consulting Company, the branch of Hainan Pearl River Holding Co., Ltd. was
established and the unified the social credit code is 91110107554875351W. Address: Room 5078, Building 3, No.3,
Xijing Road, Badachu High-tech Park, Shijingshan District, Beijing. Business scope includes investment consulting,
hotel investment and management; Purchase and lease of construction equipment; Sales of building materials, hardware
and electrical equipment, furniture, plastics, daily necessities, leather products, rubber products, fodder, no longer
packaged seeds, cereals, legumes, potato, flowers, grass and ornamental plants, fertilizers, non-metallic ores, metal
products, metal ores, metal materials, goods import and export; R&D and application of high-tech products. (1. No fund
shall be raised in a public way without the approval of the relevant departments. 2. No securities products and financial
derivative instruments shall be traded in public. 3. No loans shall be granted. 4. No guarantee shall be provided for
enterprises other than the invested enterprises. 5. No commitment shall be made to investors that the investment will bring
no loss or the minimum earnings can be ensured. Projects that need to be approved according to law can be put into the
operation after being approved by relevant departments.) On August 3 of 2018, it was renamed as Beijing Branch of
Hainan Jingliang Holdings Co., Ltd.
(III) Approval of financial statements
This financial statement has been approved by the board of directors of the company on August 20, 2020.
(IV) Scope of Consolidated Statements
A total of 17 subsidiaries of the Company were included in the scope of consolidation in June 30th, 2020.
II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transactions and events, the Company's
financial statements are prepared in accordance with the Accounting Standards for Business Enterprises-Basic Standard
(promulgation of Decree No. 33 of Ministry of Finance and revision of Decree No. 76 of Ministry of Finance), 42
specific accounting standards, guidelines for the application of accounting standards for business enterprises,
explanations of accounting standards for business enterprises and other relevant provisions promulgated and revised on
February 15, 2006 and thereafter (hereinafter collectively referred to as "Accounting Standards for Business
Enterprises”), as well as the disclosure provisions of the China Securities Regulatory Commission's Rules for Reporting
Information Disclosure by Companies Offering Securities to the Public No.15-General Provisions on Financial
Reporting (revised in 2014)
According to the relevant provisions of Accounting Standard for Business Enterprises, the Company’s accounting
is based on the accrual basis. Except for certain financial instruments, the financial statements are measured on the basis
of historical costs. Non-current assets held for sale shall be valued at the lower of the fair value less estimated expenses
and the original book value when the conditions for holding for sale are met. If the assets are impaired, the
corresponding impairment reserves shall be withdrawn in accordance with the relevant provisions.
26
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
2. Going concern
These financial statements are presented on a going-concern basis and the Company has a going-concern capability
for at least 12 months from the end of the reporting period.
III. Statement of Compliance with Enterprise Accounting Standards
The financial statements prepared by the Company conform to the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflect the Company's merger and the financial status of the parent
company as of June 30, 2020, the merger and parent company's operating results, the merger and parent company's cash
flow and other relevant information of January to June, 2020. In addition, the Company's financial statements comply in
all material respects with the disclosure requirements of the financial statements and its notes in the Rules for
Preparation and Reporting Information Disclosure of Companies Offering Securities to the Public No.15-General
Provisions on Financial Reports revised by China Securities Regulatory Commission in 2014.
IV. Significant Accounting Policies and Estimates
1. Accounting Period
The accounting period of the Company is divided into an annual period and an interim period. The accounting
interim period refers to the reporting period shorter than a full accounting year. The fiscal year of the Company adopts the
Gregorian calendar year, that is, from January 1 to December 31 of each year.
2. Business Cycle
The normal business cycle is the period from the time the Company purchases assets for processing to the time when
cash or cash equivalents are realized. The Company uses 12 months as an business cycle and uses it as a liquidity
classification standard for assets and liabilities.
3. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate.
The Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore subsidiaries of
the Company determine USD as their bookkeeping standard currency based on the currencies in the main economic
environment in which they operate. The currency used by the Company in preparing these financial statements is RMB.
4. The Accounting Treatment of Business Combination under the Same Control and Different Control
Business Combination refers to the transaction or event in which two or more separate enterprises are merged to
form one reporting entity. Business combination can be divided into business combination under the same control and
business combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties before
and after the combination, and the control is not temporary, so it is the business combination under the same control. In
case of business combination under the same control, the party that obtains control of other enterprises participating in the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
combination on the combination date shall be the combination party, and the other enterprises participating in the
combination shall be the merged party. The combination date refers to the date on which the combination party actually
acquires control over the merged party.
The assets and liabilities acquired by the combination party are measured at the book value of the merged party at the
date of consolidation, including goodwill that was formed during acquisition by end controller . If the difference between
the book value of the net assets acquired by the merging party and the book value of the merged consideration (or the total
par value of the issued shares) paid by the merging party, and the capital reserve (share capital premium) shall be adjusted;
If the capital reserve (equity premium) is insufficient to offset, the retained earnings shall be adjusted.
The direct expenses incurred by the merging party for the purpose of business combination shall be included in the
profits and losses of the current period when they are incurred.
(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties before
and after the merger, the enterprise merger is not under the same control. In case of business combination under different
control, the party that obtains control of other enterprises participating in the combination on the date of purchase shall be
the Purchaser, and the other enterprises participating in the combination shall be the Purchase. Purchase date means the
date on which the Purchaser actually acquires control of the Purchase.
For business combination under different control, the merger cost includes the assets, liabilities and fair value of
equity securities issued by the Purchaser in order to obtain the control over the Purchase on the date of purchase, and the
intermediary fees such as audit, legal service, appraisal and consultation and other management fees for the enterprise
merger are used to record into the profits and losses of the current period when incurred. The transaction costs of equity or
debt securities issued by the Purchaser as a merger consideration are included in the initial recognition amount of the
equity or debt securities. Contingent consideration involved shall be included in the consolidation cost at its fair value at
the purchase date, and the consolidation goodwill shall be adjusted accordingly if new or further evidence of the existence
of circumstances at the purchase date appears within 12 months after the purchase date and the adjustment or
consideration is required. The consolidation cost incurred by the Purchaser and the identifiable net assets acquired during
the consolidation are measured at the fair value at the date of purchase. The difference between the merger costs and the
fair value shares of the identifiable net assets of the Purchase at the purchase date obtained in the merger is recognized as
goodwill. If the combined cost is less than the fair value of the identifiable net assets of the Purchase in the merger, first,
the fair value of the identifiable assets, liabilities and contingent liabilities of the Purchase and the measurement of the
consolidation cost shall be re-checked. If the consolidation cost is still smaller than the fair value share of the identifiable
net assets of the Purchased obtained in the consolidation after the re-check, the difference shall be recorded into the profits
and losses of the current period.
When the Purchaser acquires the deductible temporary difference of the Purchase, if it fails to recognize the deferred
income tax assets on the date of purchase because it does not meet the recognition conditions for the deferred income tax,
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and within 12 months of the date of purchase, new or further information is obtained indicating that the relevant
circumstances at the purchase date already exist and the economic benefits from the temporary difference deductible by
the purchaser on the purchase date are expected to be realized, the relevant deferred income tax assets shall be recognized,
and the goodwill shall be reduced. If the goodwill is not sufficiently offset, the difference shall be recognized as the
current profit or loss; In addition to the above circumstances, the deferred income tax assets related to the enterprise
merger are recognized and included in the current profits and losses.
Through multi-transaction and step-by-step business combination under different control, according to the Circular
of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for Business Enterprises
No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business Enterprises No.33-Consolidated
Financial Statements on the judgment criteria of "package deal" (see 5 (2) of Note 4), it is determined whether the
multiple transactions belong to the "package deal". In the case of a "package deal", the accounting treatment shall be
performed with reference to the description in the preceding paragraphs of this section and Note 4,
13 "Long-term Equity Investments"; if the transaction is not a "package deal", the accounting treatment shall be
distinguished between the individual financial statements and the consolidated financial statements:
In the individual financial statements, the sum of the book value of the equity investment held by the Purchaser
prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the initial investment
cost of the investment; Where the equity of the Purchased held before the date of purchase involves other
comprehensive income, the other consolidated income associated with the investment is accounted for on the same basis
as the assets or liabilities directly disposed of by the Purchaser (i.e., except for the corresponding share in the change
caused by the acquisition of the net liability or net assets of the defined benefit plan remeasured in accordance with the
equity method, the rest is transferred to the current investment income).
In the consolidated financial statements, the equity of the Purchased held prior to the date of purchase is
remeasured according to the fair value of the equity at the date of purchase, and the difference between the fair value
and the carrying value is included in the investment income of the current period; Where the equity of the Purchasee
held before the date of purchase involves other comprehensive income, other consolidated income related thereto shall
be accounted for on the same basis as the direct disposal of the relevant assets or liabilities by the Purchaser (i.e., except
for the corresponding share in the change caused by the acquisition of the net liability or net asset of the defined benefit
plan remeasured in accordance with the equity method, the rest is converted into the investment income of the current
period to which the acquisition date belongs).
5. Preparation Method of Consolidated Financial Statement
(1) Principles for determining the scope of the consolidated financial statement
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control means
that the Company has the authority over the Investee, enjoys a variable return by participating in the relevant activities
of the Investee, and has the ability to use its authority over the Investee to influence the amount of such return. The
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
scope of the merger includes the Company and all its subsidiaries. Subsidiary refers to the main body controlled by the
Company.
The Company will re-evaluate the above control definitions once the relevant facts and circumstances change,
which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production and
operation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be included in
the scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of, the operating results
and cash flows prior to the date of disposal have been appropriately included in the consolidated income statement and
consolidated cash flow statement; For subsidiaries disposed of in the current period, the opening amount of the
consolidated balance sheet is not adjusted. The operating results and cash flows of subsidiaries increased by
consolidation after purchase have been properly included in the consolidated income statement and consolidated cash
flow statement, and the opening and comparative amounts in the consolidated financial statements have not been
adjusted for subsidiaries that are not under the same control. The operating results and cash flows of the subsidiaries
increased by consolidation under the same control from the beginning of the consolidation period to the consolidation
date have been appropriately included in the consolidated profit statement and consolidated cash flow statement, and the
comparative amount of the consolidated financial statements has been adjusted at the same time.
In the preparation of the consolidated financial statements, if the accounting policies or accounting periods adopted
by the subsidiaries are inconsistent with those adopted by the Company, necessary adjustments shall be made to the
financial statements of the subsidiaries in accordance with the accounting policies and accounting periods of the
Company. For subsidiaries acquired through business combination under different control, the financial statements shall
be adjusted on the basis of the fair value of identifiable net assets at the date of purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offset at the time
of preparation of the consolidated financial statements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the
Company for the current period are separately presented as minority shareholders' equity and minority shareholders'
profit or loss in the consolidated financial statements under shareholders' equity and net profit. The shares of minority
shareholders' equity in the net profits and losses of subsidiaries for the current period are shown as "minority
shareholders' profits and losses" under the net profit item in the consolidated income statement. Losses shared by
minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders' equity of the
subsidiary at the beginning of the period, and still decrease by a number of shareholders' equity.
When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons, the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the purchase
date according to the original shareholding proportion shall be included in the investment income of the current period
of loss of control. Other comprehensive income related to the equity investment of the original subsidiary, in the event
of loss of control, the accounting treatment is performed on the same basis as the direct disposal of the relevant assets or
liabilities by the Purchased (i.e. converted to current investment income, except for changes resulting from the
re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary). Thereafter, the
residual equity shall be subsequently measured in accordance with the relevant provisions of Accounting Standards for
Business Enterprises No.2-Long-term Equity Investment or Accounting Standards for Business Enterprises
No.22-Recognition and Measurement of Financial Instruments, as detailed in Note IV, 13-Long-term Equity Investment
or Note IV, 9-Financial Instruments.
If the Company disposes of the equity investment in subsidiaries step by step until it loses control through multiple
transactions. It is necessary to distinguish whether the transactions that dispose of the equity investment in subsidiaries
until it loses control belong to a package deal or not. The terms, conditions and economic impact of the transactions for
the disposal of equity investments in subsidiaries are in accordance with one or more of the following circumstances
and generally indicate that multiple transactions should be accounted for as a package deal: ① These transactions were
entered into simultaneously or taking into account each other's influence; ② Only when these transactions are taken
together can a complete business result be achieved; ③ The occurrence of one transaction depends on the occurrence
of at least one other transaction; ④ It is not economical to consider a transaction alone, but it is economical to consider
it in conjunction with other transactions. For transactions that are not part of the package deal, each transaction shall be
accounted for in accordance with the principles applicable to the "partial disposal of long-term equity investments in
subsidiaries without loss of control" and the "loss of control over existing subsidiaries as a result of the disposal of part
of the equity investments or other reasons" (as detailed in the preceding paragraph), as appropriate. If the transactions
involving the disposal of equity investments in subsidiaries until the loss of control belong to a package deal, the
transactions shall be accounted for as a transaction involving the disposal of subsidiaries and the loss of control;
However, the difference between each disposal price and the share of the subsidiary's net assets corresponding to the
disposal investment prior to the loss of control is recognized in the consolidated financial statements as other
consolidated gains and transferred to the profit or loss for the current period of loss of control in the event of loss of
control.
6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The Company
divides the joint venture arrangement into joint ventures and joint ventures in accordance with the rights and obligations
it enjoys in the joint venture arrangement. Joint operation refers to the joint venture arrangement in which the Company
enjoys the assets related to the arrangement and assumes the liabilities related to the arrangement. A joint venture refers
to a joint venture arrangement in which the Company only has rights over the net assets of the arrangement.
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The Company's investment in the joint venture is accounted for using the equity method, and shall be treated in
accordance with the accounting policy described in Note IV, 13 "Long-term Equity Investment Accounted by the Equity
Method".
The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by the Company
separately, and recognizes the assets and liabilities jointly held and assumed by the Company according to the shares of
the Company; recognizes the revenue generated from the sale of the share of joint operating output enjoyed by the
Company; recognizes revenue generated from the sale of output from joint operations on the basis of the Company's
share; confirms the expenses incurred by the Company individually and the expenses incurred by the joint operation
according to the shares of the Company.
When the Company invests or sells assets as a joint venture (such assets do not constitute business, the same
below), or purchases assets from the joint venture, the Company recognizes only the portion of the profits and losses
attributable to the other participants in the joint venture that arises from the transaction prior to the sale of such assets to
a third party. Where such assets are impaired in accordance with the provisions of Accounting Standards for Business
Enterprises No.8-Impairment of Assets, the Company shall fully recognize such losses in the case where the assets are
cast or sold by the Company to joint operations; For the assets purchased by the Company from the joint operation, the
Company recognizes the losses according to the shares it assumes.
7. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand, deposits that can be used for payment at any time,
and investments held by the Company with a short term (usually maturing within three months from the date of
purchase), high liquidity, easy conversion into cash of a known amount, and little risk of value change.
8. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation, the foreign currency transactions occurring in the Company shall be converted
into the bookkeeping functional currency amount at the spot exchange rate on the trading day, but the foreign currency
exchange business or transactions involving foreign currency exchange occurring in the Company shall be converted
into the bookkeeping functional currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-monetary item
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the
balance sheet date, and the exchange difference arising therefrom shall be: ① The exchange difference arising from
the special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization
shall be handled in accordance with the principle of capitalization of borrowing costs; ② The exchange difference of
the hedging instruments used for effective hedging of the net investment in overseas operations (the difference is
included in other comprehensive income, and is not recognized as current profit or loss until the net investment is
disposed of); ③ Except for the amortized cost, the exchange differences arising from the changes in the book balance
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
of the available-for-sale monetary items in foreign currencies shall be included in the other comprehensive income, and
shall be included in the profits and losses of the current period.
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign
currency monetary items constituting net investment in overseas operations, the exchange differences arising from
exchange rate changes shall be included in other comprehensive income; When disposing of overseas operations, the
profits and losses shall be transferred to the current disposal period.
Non-monetary items in foreign currencies measured at historical cost shall still be measured at the bookkeeping
amount in functional currency translated at the spot exchange rate on the transaction date. For non-monetary items in
foreign currencies measured at fair value, the spot exchange rate at the date of fair value determination shall be adopted
for conversion. The difference between the converted amount in functional currency and the amount in original
functional currency shall be treated as the change in fair value (including the change in exchange rate), and shall be
recorded into the profits and losses of the current period or recognized as other comprehensive income.
(3) Translation method for financial statements in foreign currencies
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign
currency monetary items constituting net investment in overseas operations, the exchange differences arising from
exchange rate changes shall be as "foreign currency report conversion difference" and be confirmed as other
comprehensive income; When disposing of overseas operations, the profits and losses shall be transferred to the current
disposal period.
The foreign currency financial statements of overseas operations shall be converted into RMB statements in the
following ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance
sheet date; Except for "undistributed profits", other items of shareholders' equity shall be converted at the spot exchange
rate at the time of occurrence. The income and expense items in the profit statement shall be converted at the average
exchange rate of the current period on the date of transaction. The undistributed profit at the beginning of the period
shall be the undistributed profit at the end of the period converted from the previous year; The undistributed profits at
the end of the year shall be calculated and listed according to the converted profits distribution items; The difference
between the converted asset items and the total amount of the liability items and shareholders' equity items shall be
recognized as other comprehensive income as the translation difference in the foreign currency statements. In case of
disposal of overseas operations and loss of control, the balance in translation of the foreign currency statements related
to the overseas operations as shown below in the shareholders' equity items in the balance sheet shall be transferred to
the profits and losses of the disposal period in whole or in proportion to the disposal of the overseas operations.
Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average
exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate changes on
cash shall be presented separately in the statement of cash flows as a reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
prior-period financial statements.
When disposing of all the owner's equity of the Company's overseas operations or losing the control over overseas
operations due to the disposal of part of the equity investment or for other reasons, if the following items of
shareholders' equity in the balance sheet are shown below, the balance in translation of the foreign currency statement
attributable to the owner's equity of the parent company related to the overseas operation shall be transferred to the
profits and losses of the current disposal period.
In the event that the proportion of overseas business interests is reduced due to the disposal of part of the equity
investment or for other reasons, but the control over overseas business operations is not lost, the balance in the
translation of the foreign currency statements related to the disposal of part of overseas business operations shall be
attributed to minority shareholders' interests and shall not be transferred to the profits and losses of the current period.
When disposing of part of the equity of an overseas operation as an associated enterprise or a joint venture, the balance
of the translation of the foreign currency statements related to the overseas operation shall be transferred into the profits
and losses of the current disposal period in the proportion of the overseas operation disposed of.
9. Financial instruments
A financial asset or financial liability is recognized when the Company becomes a party to a financial instrument
contract.
(1) Classification, confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow characteristics of
financial assets, the Company divides financial assets into: Financial assets measured at amortized cost. Financial assets
measured at fair value with changes included in other comprehensive income. Financial assets that are measured at fair
value and whose movements are included in the current profits and losses.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value and
whose changes are included in current profits and losses, relevant transaction costs are directly included in current
profits and losses. For other types of financial assets, relevant transaction costs are included in the initial recognition
amount. Accounts receivable or notes receivable arising from the sale of products or the provision of labor services that
do not contain or take into account significant financing components shall be initially recognized by the Company in
accordance with the amount of consideration that the Company is expected to be entitled to receive.
① Financial assets measured at amortized cost
The Company's business model of managing financial assets measured in amortized cost is aimed at collecting
contractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent with the basic
lending arrangements, that is, the cash flow generated on a specific date is only the payment of principal and interest
based on the unpaid principal amount. For such financial assets, the Company adopts the effective interest rate method
and carries out subsequent measurement according to amortized cost. The profits or losses arising from amortization or
impairment are included into the current profits and losses.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
② Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect and sell contractual cash flow, and
the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements. The
Company measures these financial assets at fair value and their changes are included in other comprehensive income,
but impairment loss or gain, exchange gain or loss and interest income calculated according to the effective interest rate
method are included into the current profit and loss.
In addition, the Company designates some non-tradable equity instrument investments as financial assets measured
at fair value with changes included in other comprehensive income. The Company shall record the relevant dividend
income of such financial assets into the current profits and losses, and the change of fair value into other comprehensive
income. When the financial asset is derecognized, the accumulated gains or losses previously included in other
comprehensive income will be transferred from other comprehensive income to retained income and will not be
included in current profits and losses.
③ Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured at fair
value with changes included in other comprehensive income into financial assets measured at fair value with changes
included in current profits and losses. In addition, during initial recognition, in order to eliminate or significantly reduce
accounting mismatch, the Company designated part of financial assets as financial assets measured at fair value with
changes included in current profit and loss. For such financial assets, the Company adopts fair value for subsequent
measurement, and the changes in fair value are included into the current profit and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair value
and whose changes are included in current profits and losses and other financial liabilities. For the financial liabilities
measured at fair value with the changes included into the current profits and losses, the relevant transaction costs are
directly included into the current profits and losses, and the relevant transaction costs of other financial liabilities are
included in the initial recognition amount.
① Fair value through Profit and Loss Financial liabilities
Financial liabilities measured at fair value with changes included in current profits and losses, which include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated to be measured at fair value with changes included in current profits and losses at initial recognition.
Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently measured
according to their fair values. Except for those related to hedge accounting, changes in fair values are included in
current profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits and losses.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Changes in the fair value of this liability caused by changes in the Company's own credit risk are included in other
comprehensive income. When the liability is derecognized, the accumulated change in fair value caused by changes in
its own credit risk included in other comprehensive income is transferred to retained earnings. Changes in fair value are
accounted into current profits and losses. If the above-mentioned treatment of the impact of changes in the credit risk of
these financial liabilities will cause or expand accounting mismatch in profits and losses, the Company will include all
profits or losses of the financial liabilities (including the impact amount of changes in the credit risk of the enterprise
itself) into the current profits and losses.
② Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that do
not meet the conditions for termination of recognition or continue to be involved in the transferred financial assets,
other financial liabilities are classified as financial liabilities measured at amortized cost and subsequently measured at
amortized cost. Gains or losses arising from termination of recognition or amortization are included in current profits
and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ①The termination of the
contractual right to receive cash flow from the financial asset. ②The financial asset has been transferred, and almost all
risks and rewards related to the ownership of the financial asset have been transferred to the transferee. ③The financial
asset has been transferred. Although the enterprise has neither transferred nor retained almost all risks and rewards in
the ownership of the financial asset, it has given up its control over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financial
assets, and does not give up the control over the financial assets, the relevant financial assets shall be recognized
according to the extent of continuous involvement in the transferred financial assets, and the relevant liabilities shall be
recognized accordingly. The degree of continuous involvement in the transferred financial assets refers to the risk level
faced by the enterprise due to the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between
the book value of the transferred financial assets and the sum of the consideration received due to the transfer and the
accumulated amount of changes in fair value originally included in other comprehensive income shall be included into
the current profits and losses.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of the
transferred financial assets shall be apportioned according to its relative fair value between the derecognized part and
the non-derecognized part, and the difference between the sum of the consideration received due to the transfer and the
accumulated change in fair value originally included in other comprehensive income that shall be apportioned to the
derecognized part and the allocated aforesaid book amount shall be included into the current profits and losses.
For financial assets sold by the Company with recourse, or for endorsement and transfer of held financial assets, it
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
is necessary to determine whether almost all risks and rewards in the ownership of the financial assets have been
transferred. If almost all risks and rewards in the ownership of the financial asset have been transferred to the transferee,
the recognition of the financial asset shall be terminated. If almost all risks and rewards on the ownership of a financial
asset are retained, the recognition of the financial asset shall not be terminated. If almost all risks and rewards related to
the ownership of financial assets have not been transferred or retained, it shall continue to judge whether the enterprise
retains control over the assets and carry out accounting treatment according to the principles mentioned in the preceding
paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved, the Company terminates the
recognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an agreement to
replace the original financial liabilities by assuming new financial liabilities. If the contract terms of the new financial
liabilities and the original financial liabilities are substantially different, the original financial liabilities shall be
derecognized and a new financial liability shall be recognized at the same time. If the Company makes any substantial
modification to the contract terms of the original financial liability (or part thereof), the original financial liability shall
be derecognized and a new financial liability shall be recognized in accordance with the modified terms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference between its book
value and the consideration paid (including transferred non-cash assets or liabilities assumed) into the current profits
and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial liabilities,
and such legal right is currently enforceable, and the Company plans to settle the financial assets on a net basis or
realize the financial assets and settle the financial liabilities at the same time, the financial assets and financial liabilities
are listed in the balance sheet at a net amount after mutual offset. In addition, financial assets and financial liabilities
shall be listed separately in the balance sheet and shall not be offset against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability
in an orderly transaction on the measurement date. Where there is an active market for financial instruments, the
Company adopts quotations in the active market to determine their fair values. Quoted price in active market refers to
the price easily obtained from exchanges, brokers, industry associations, pricing service agencies, etc. on a regular basis,
and represents the price of market transactions actually occurred in fair trading. If there is no active market for financial
instruments, the Company uses evaluation techniques to determine their fair values. Evaluation techniques include
reference to prices used in recent market transactions by parties familiar with the situation and willing to trade,
reference to current fair values of other financial instruments that are substantially the same, discounting cash flow
technique, option pricing model, etc. In valuation, the Company adopts valuation techniques that are applicable under
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
current circumstances and are supported by sufficient available data and other information, selects input values that are
consistent with the characteristics of assets or liabilities considered by market participants in transactions related to
assets or liabilities, and gives priority to the use of relevant observable input values as much as possible. If the relevant
observable input value cannot be obtained or it is not impracticable to obtain it, the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments by
the Company are treated as changes in equity, and transaction costs related to equity transactions are deducted from
equity. The Company does not recognize changes in the fair value of equity instruments.
Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the
Company's equity instruments during their existence shall be treated as profit distribution.
10. Impairment of financial assets
The financial assets of the Company that need to confirm the impairment loss are financial assets measured at
amortized cost and debt instrument investment measured at fair value with changes included in other comprehensive
income, mainly including notes receivable, accounts receivable, other receivables, debt investment, other debt
investment, long-term receivables, etc. In addition, for some financial guarantee contracts, impairment reserves and
credit impairment losses are also accrued in accordance with the accounting policies described in this part.
(1) Recognition method of impairment provision
On the basis of expected credit losses, the Company sets aside impairment reserves and recognizes credit
impairment losses for the above items according to the applicable expected credit loss measurement method (general
method or simplified method).
Credit loss refers to the difference between all contractual cash flows receivable according to the contract and all
cash flows expected to be collected by the Company discounted according to the original actual interest rate, i.e. the
present value of all cash shortages. Among them, for the financial assets that have been purchased or incurred credit
impairment, the Company discounts them according to the actual interest rate adjusted by credit.
The general method of measuring expected credit loss refers to the Company's assessment of whether the credit
risk of financial assets has increased significantly since the initial recognition on each balance sheet date. If the credit
risk has increased significantly since the initial recognition, the Company will measure the loss reserve by an amount
equivalent to the expected credit loss during the entire period. If the credit risk has not increased significantly since the
initial recognition, the Company will measure the loss reserve according to the amount equivalent to the expected credit
loss in the next 12 months. In assessing the expected credit loss, the Company takes into account all reasonable and
evidence-based information, including forward-looking information.
For financial instruments with low credit risk on the balance sheet date, the Company measures the loss reserve
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
based on the expected credit loss amount within the next 12 months or the entire duration according to whether the
credit risk has increased significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognition
If the default probability of a certain financial asset in the expected duration determined at the balance sheet date is
significantly higher than the default probability in the expected duration determined at the time of initial recognition, it
indicates that the credit risk of the financial asset is significantly increased. Except for special circumstances, the
Company uses the change of default risk in the next 12 months as a reasonable estimate of the change of default risk in
the entire duration to determine whether the credit risk has increased significantly since the initial recognition.
Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk of the
financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financial
instrument has not increased significantly since the initial recognition.
The Company will consider the following factors when evaluating whether the credit risk has increased
significantly
1） Whether there is any significant change in the actual or expected operating results of the debtor;
2） Whether there is any significant adverse change in the regulatory, economic or technological environment of
the debtor;
3） Whether there is any significant change in the value of the collateral or the quality of the guarantee or credit
enhancement provided by the third party, which are expected to reduce the economic motivation of the debtor's
repayment according to the time limit stipulated in the contract or affect the probability of default;
4） Whether there is any significant change in the expected performance and repayment behavior of the debtor;
5） Whether there is any significant change in the Company's credit management methods for financial
instruments, etc.
On the balance sheet date, if the Company judges that the financial instrument has only low credit risk, the
Company assumes that the credit risk of the financial instrument has not increased significantly since the initial
recognition. If the default risk of a financial instrument is low, the borrower's ability to perform its contractual cash flow
obligations in a short period of time is strong, and even if there are adverse changes in the economic situation and
operating environment for a long period of time, it may not necessarily reduce the borrower's ability to perform its
contractual cash obligations, then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset, the
financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial assets
includes the following observable information:
1） The issuer or debtor has major financial difficulties;
2） The debtor violates the contract, such as default or overdue payment of interest or principal, etc.;
3） The creditor gives concessions that the debtor will not make under any other circumstances due to economic
or contractual considerations related to the debtor's financial difficulties;
4） The debtor is likely to go bankrupt or undergo other financial restructuring;
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
5） The active market of the financial assets disappears due to the financial difficulties of the issuer or the debtor;
6） Purchase or generate a financial asset at a substantial discount, which reflects the fact that credit losses have
occurred.
Credit impairment of financial assets may be caused by the combined action of multiple events, but may not be
caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks, such as: Accounts
receivable with related parties. Receivables in dispute with the other party or involving litigation or arbitration.
Receivables with obvious signs that the debtor is likely to be unable to perform the repayment obligation.
In addition to the financial assets with individual credit risk assessment, the Company divides the financial assets
into different groups based on the common risk characteristics. The common credit risk characteristics adopted by the
Company include: Credit risk shall be assessed on the basis of the aging portfolio, the receivables portfolio between the
final controlling party and its subordinate units, the public maintenance fund and house selling fund portfolio deposited
in the housing provident fund management center, the deposit/margin portfolio, and the petty cash ledger portfolio
formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the
estimated credit losses are greater than the book amount of its current impairment reserve, the difference is recognized
as impairment loss. If it is less than the carrying amount of the current impairment reserve, the difference is recognized
as impairment gain.
(6) Methods for determining the credit loss of various financial assets
①Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount
equivalent to the entire duration. Based on the credit risk characteristics of bills receivable, they are divided into
different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
According to the acceptor's credit risk classification, it should be the same as the
Commercial acceptance bill
"receivable" portfolio classification.
③ Accounts receivable and other receivables
For receivables that do not contain significant financing components, the Company measures the loss reserve
according to the expected credit loss amount equivalent to the entire duration.
For receivables that contain significant financing components, the Company measures the loss reserve based on
whether the credit risk has increased significantly since the initial recognition, using the amount of expected credit loss
within the next 12 months or the entire duration.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
According to whether the credit risk of other receivables has increased significantly since the initial recognition,
the Company measures impairment loss with an amount equivalent to the expected credit loss within the next 12
months or the entire duration.
In addition to the accounts receivable and other receivables that individually assess credit risk, they are divided
into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Aging portfolio.
Portfolio 2 A portfolio of receivables between the ultimate controller and its subordinate units.
The portfolio of public maintenance funds and house sales funds deposited in the
Portfolio 3
housing provident fund management center.
Portfolio 4 Deposit/margin portfolio.
Portfolio 5 The portfolio of reserve fund ledger formed by the Company's staff loan.
The accrual method of bad debt reserves for different portfolios:
Item Accrual method
According to the accrual proportion corresponding to the
Aging portfolio
aging period
Portfolio of receivables between the ultimate controlling party and its
No provision for bad debts
subordinate units
The portfolio of public maintenance funds and house sales funds
No provision for bad debts
deposited into the MPF Management Center
Deposit/margin portfolio No provision for bad debts
The portfolio of reserve fund ledger formed by the Company's staff loan. No provision for bad debts
a. In portfolio, the portfolio method of withdrawing bad debt reserves by aging analysis
Expected loss rate of notes Expected loss rate of accounts Expected loss rate of
Aging
receivable (%) receivable (%) other receivables (%)
Within 1 year (including 1 year, the same
below)
Among them: Within the credit period 0 0 0
(within 3 months)
Credit period~1 year 2 2 2
1-2 years 5 5 5
2-3years 20 20 20
3-4years 50 50 50
4-5years 80 80 80
More than 5 years 100 100 100
b. In the portfolio, the description of the accrual method for accrual of bad debt reserves by other methods is
given.
Expected loss rate of Expected loss rate of
Expected loss rate of
Portfolio name notes receivable (%) accounts receivable
other receivables (%)
(%)
Accounts receivable between the final controlling party and its - - -
subordinate u
Public maintenance fund and house sale fund deposited into MPF - - -
Management Center
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Expected loss rate of Expected loss rate of
Expected loss rate of
Portfolio name notes receivable (%) accounts receivable
other receivables (%)
(%)
Deposit/margin - - -
The reserve fund ledger formed by the Company's staff loan. - - -
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, turnover materials, developed products, in transit materials inventory
goods, reserve tanker storage commissioned processing, and manufacturing consignment, etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are valued at actual cost when they are acquired. Inventory costs include purchase costs, processing
costs and other costs. They are valued with weighted average method when they are used and issued.
(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve
Net Realizable Value refers to the amount of estimated selling price of inventories minus the estimated cost till
completion, estimated expenses for selling activity and related taxes and fees in daily activities. When determining the
net realizable value of inventories, solid evidence obtained shall be the basis, and the purpose of holding the inventories
and the impact of events after the balance sheet date shall be considered.
On the balance sheet date, inventories shall be measured at lower of cost and net realizable value. When the net
realizable value is lower than the cost, the provision for inventory devaluation shall be accrued. The provision for
inventory devaluation shall be accrued based on the difference between the cost of a single inventory item and its net
realizable value. The provision for inventory devaluation of a large number of inventories with low unit prices shall be
based on the type of inventory; for inventories related to the product range produced and sold in same region, having the
same or similar end use or purpose, and difficult to be separated from other items for measurement, their provision for
inventory devaluation can be combined and accrued.
After the provision for inventory devaluation is accrued, if the factors cause the previous written-down inventory
value have disappeared, and the situation results in the fact that the net realizable value of the inventories higher than
the book value, the amount of the provision for inventory devaluation that has been accrued shall be reversed and
included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized on a one-off basis/ partial amortization method when they are used;
packaging materials are amortized on a one-off basis/ partial amortization method when they are used
12. Held-for-sale assets
If the book value of a non-current asset or to-be-disposed portfolio is recovered by the Company mainly through
sale activities (including the exchange of non-monetary assets with commercial nature, the same below), the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
non-current asset or to-be-disposed portfolio falls into held-for-sale category. The specific criteria: both of the following
conditions shall be satisfied: a non-current asset or to-be-disposed portfolio can be sold immediately under the current
conditions based on the practice of selling such asset or to-be-disposed portfolio in similar transactions; the Company
has already decided on the sale plan and obtained confirmed purchase commitment; the sale is scheduled to be
completed within one year. Among them, a Disposal Portfolio refers to a group of assets that will be disposed of as a
whole through sale or other approaches in a transaction, and the liabilities directly associated with these assets
transferred along with the assets in transaction. If the portfolio of assets or group of portfolios of assets is allocated
goodwill acquired in business merger in accordance with Accounting Standards for Business Enterprises No. 8 - Asset
Impairment, the Disposal Portfolio shall include the goodwill allocated to it.
In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated as
held-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset or
to-be-disposed portfolio is initially measured or measured on the balance sheet date, the book value shall be to the net
amount of fair value minus sales expenses, and the written-down amount shall be recognized as asset impairment loss
and included in current period profit or loss. The provision for impairment loss of the held-for-sale asset shall be
accrued. For a Disposal Portfolio, the confirmed impairment loss shall deduct the book value of the goodwill in the
Disposal Portfolio, then deduct the book value of the non-current assets determined by the measurement on a pro-rata
basis in accordance with the applicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-current
assets, Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). In
the event of an increase of the book value of the held-for-sale Disposal Portfolio minus sales expenses on the
subsequent the balance sheet date, the amount previously written down shall be recovered and be reversed within the
mount of the asset impairment loss recognized in the non-current assets measured by the measurement “Guide for
Held-For-Sale” after being classified as held for sale asset, the reversal amount shall be included in the current period
profit or loss, and the book value of all non-current assets (except for goodwill) determined by the measurement on a
pro-rata basis in accordance with the applicable “Guide for Held-For-Sale” shall be increased on a pro-rata basis. The
book value of the goodwill that has been deducted and the impairment loss of the assets recognized before the
classification of the held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall
not be reversed.
In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio, there is no accrual or
amortization for depreciation, and the interest from and other expenses from the liabilities in held-for-sale Disposal
Portfolio shall still be recognized.
When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category,
non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or the
non-current asset will be removed from the Held-For-Sale Disposal Portfolio, and be measured based on one of the
following two values, whichever is lower: (1) The book value before being classified as held-for-sale category adjusted
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
based on the depreciation, amortization or impairment that should have be confirmed if it is not classified as
held-for-sale category; (2) recoverable amount.
13. Long-term equity investment
The long-term equity investment refers 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 long-term equity investment of the
Company that does not have control, joint control or significant impact on the investee shall be accounted as a financial
asset measured at fair value with its changes included into the current profits and losses. Among them, if it is
non-transactional, the Company may choose to designate it as a financial asset measured at fair value and its changes
are included in the accounting of other comprehensive income at the time of initial recognition. For details of its
accounting policies, please refer to Note IV, 9 “Financial Instruments".
Joint control refers to the control that the Company shares with other party/parties for an arrangement in
accordance with relevant agreements, and relevant activities of the arrangement can only be decided based on the
consensus of all parties sharing the control rights before making a decision. Significant Influence refers to power of the
Company to participate in the decision-making of the financial and operating policies of the investee, but the Company
cannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control, the
apportioned share of the book value in the final controller's consolidated financial statements on the combination date in
accordance with the shareholders' equity shall be the initial investment cost of the long-term equity investment. The
capital reserve shall be adjusted subject to the difference between the initial investment cost of the long-term equity
investment and the cash paid, the non-cash assets transferred, and the book value of the debts assumed; if the capital
reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity securities are issued as
merger consideration, the apportioned share of the book value in the final controller's consolidated financial statements
on the combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term
equity investment, and the total par value of the issued shares is taken as the share capital. The capital reserve shall be
adjusted subject to the difference between the initial investment cost of the long-term equity investment and the total par
value of the shares issued; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted.
Where the equity of combined parties under the same control is obtained through multiple transactions and a business
combination under the same control is formed finally, it shall be treated differentially based on whether it is a “package
deal”: if it belongs to a “package deal”, all transactions will be treated as a transaction that obtains control. If it is not a
“package deal”, the apportioned share of the book value in the final controller's consolidated financial statements on the
combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the
long-term equity investment and the sum of the book value of long-term equity investment before combination date and
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
the book value of the new consideration for the new share on the combination date. If the capital reserve is insufficient
for offsetting, the retained earnings shall be adjusted. The equity investments that are held prior to the combination date
and are recognized with equity recognized or as available-for-sale financial asset as other comprehensive income will
not be given accounting treatment for the moment.
For a long-term equity investment obtained from a combination of businesses not under the same control, the
initial investment cost of the long-term equity investment shall be based on the combination cost on the purchase date.
The combination cost includes the assets paid by purchaser, the liabilities incurred or assumed, and the sum of the fair
value of issued equity securities. Where the equity of combined parties not under the same control is obtained through
multiple transactions and a business combination under the same control is formed finally, it shall be treated
differentially based on whether it is a “package deal”: if it belongs to a “package deal”, all transactions will be treated as
a transaction that obtains control. If it is not a “package deal”, the initial investment cost of the long-term equity
investment calculated by the cost method shall be calculated based on the sum of the book value of the equity
investment in the original holder and the new investment cost. The original share holding that measured using equity
method, the relevant other comprehensive income does temporarily not conduct accounting treatment.
Intermediary expenses such as for auditing, legal services, assessment and other related expenses incurred by a
combining party or a purchaser for business combination shall be recognized in current period profit or loss when
incurred.
The equity investments other than formed by business combination shall be initially measured at cost. The cost
will be determined based on the following amount according to different methods of the acquisition of long-term equity
investment: the purchase price in cash actually paid by the Company; the fair value of the equity securities issued by the
Company, the value agreed in relevant investment contract or agreement; the fair value or original book value of the
assets exchanged in non-monetary asset exchange transaction; the fair value of the long-term equity investment itself.
Any expenses, taxes and other necessary expenses directly related to the acquisition of long-term equity investments
shall also be included in the cost of investment. The cost of long-term equity investment for the additional investment
that can exert significant influence on investee or implement joint control but does not constitute control shall be the
sum of the fair value of the originally held equity investment recognized in accordance with the Accounting Standards
for Business Enterprises No.. 22 – Recognition and Measurement of Financial Instruments and the cost for new
investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control over the
invested entity (except for those constituting joint operators) or have significant impact on the invested entity. In
addition, the company's financial statements use the Cost Method to account for long-term equity investments, which
can control the long-term equity investment of the investee.
a. Long-term equity investment based on Cost Method
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
When accounting with Cost Method, long-term equity investment is priced at the initial investment cost, and the
cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the actual
payment at the time of obtaining investment or the cash dividends or profits included in the consideration but not yet
issued, the current investment income shall be recognized according to the cash dividends or profits declared by the
investee.
b. Long-term equity investment accounted for by Equity Method
When accounting with Equity Method, if the initial investment cost of a 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
the long-term equity investment shall not be adjusted; if the initial investment cost is less than the fair value share of the
identifiable net assets of the investee when investing, the difference shall be included in the current profit and loss, and
the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method, the investment income and other comprehensive income are recognized
separately according to the shares of the net profit or loss and other comprehensive income that should be enjoyed or
shared, and the book value of the long-term equity investment should be adjusted at the same time. The book value of
long-term equity investment is reduced accordingly by calculating the share that should be enjoyed according to the
profit or cash dividend declared by the investee. The book value of long-term equity investment shall be adjusted and
included in the capital reserve for other changes in the owner's rights and interests of the invested entity other than the
net profit and loss, other comprehensive income and profit distribution. When confirming the share of the net profit and
loss of the investee, the net profit of the investee shall be adjusted and confirmed on the basis of the fair value of the
identifiable assets of the investee at the time of investment. If the accounting policies and periods adopted by the
invested entity are inconsistent with the Company, the financial statements of the invested entity shall be adjusted in
accordance with the accounting policies and periods of the Company, and the investment income and other
comprehensive income shall be confirmed accordingly. For the transactions between the Company and the associates
and joint ventures, the assets invested or sold do not constitute a business, and the unrealized gains and losses from
internal transactions are offset against the portion of the Company that is attributable to the proportion of the shares, on
this basis. investment profit and loss should be confirmed. However, the unrealized internal transaction losses incurred
by the Company and the investee are not included in the impairment losses of the transferred assets. Where the assets
invested by the Company into a joint venture or an associates constitute a business, if the investor obtains long-term
equity investment but does not control, the fair value of the invested business shall be deemed as the initial investment
cost of the new long-term equity investment, and the difference between the initial investment cost and the book value
of the invested business is fully recognized in the current profits and losses. If the assets sold by the Company to a joint
venture or an associate that constitute a business, the difference between the consideration value obtained and the book
value of the business shall be fully recognized in the profits and losses of the current period.
When confirming the net loss that incurred by the investee should be shared, the book value of the long-term
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
equity investment and other long-term equity that substantially constitutes the net investment of the investee are
reduced to zero. In addition, if the Company has an obligation to bear additional losses to the investee, the estimated
liabilities shall be recognized according to the estimated obligations and included in the current investment losses. If the
investee achieves net profit in the following period, the Company shall resume recognizing the share of income after
making up for the unrecognized share of loss.
For the long-term equity investment in the joint ventures and associates held by the Company for the first time
before the implementation of the new accounting standards, if there is a debit balance of equity investments related to
the investment, the current profits and losses shall be accounted for by the straight-line amortization of the original
remaining period.
c. Acquisition of Minority Equity
In the preparation of the consolidated financial statements, if the difference between the long-term equity
investment added by purchasing minority shares and the net assets share that should be continuously calculated by the
subsidiary company from the purchase date (or the consolidation date) is calculated according to the proportion of
newly added shares, the retained earnings shall be adjusted; and if the capital reserve is insufficient to offset, the
retained earnings shall be adjusted.
d. Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially of disposes of the long-term equity
investment of the subsidiary without losing control, the difference of the corresponding net assets in the subsidiary
between the disposal price and the disposal of the long-term equity investment is included in the shareholders' equity. it
shall be treated in accordance with the relevant accounting policies described in “Notes on the preparation of
consolidated financial statements” in Note IV.5 (2).
For the disposal of long-term equity investment in other cases, the difference between the book value of the
disposed equity and the actual acquisition price shall be included in the current profits and losses.
If the long-term equity investment is accounted for by equity method, the remaining equity after disposal is still
accounted for by equity method, when disposing, the other comprehensive income which were originally included in
shareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities directly disposed of
by the investee. The owner's equity recognized as a result of changes in the owner's equity of the investee other than net
profit or loss, other comprehensive income and profit distribution, it should be carried forward to the current profit and
loss
For the long-term equity investment accounted by Cost Method, the remaining equity is still accounted by Cost
Method after disposal, other comprehensive income that recognized by equity method accounting or financial
instrument recognition and measurement criteria accounting before obtaining control over the investee shall be
accounted for on the same basis as the assets or liabilities directly disposed of by the investee, and shall be settled to the
current profit and loss in proportion. Changes of the net assets of investee in the owner's equity other than net profit or
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
loss, other comprehensive income and profit distribution 's that recognized by equity method shall be settled to the
current profit and loss in proportion.
Where the Company loses control over the investee due to disposal of part of its equity investment, when preparing
individual financial statements, if the remaining equity after disposal can exercise joint control or exert significant
influence on the investee, it shall be accounted for by equity method instead, and the remaining equity shall be adjusted
by accounting by equity method when it is deemed to be acquired. If the remaining equity after disposal cannot be
jointly controlled or exerts significant influence on the investee, it shall be accounted for according to the relevant
provisions of the financial instrument recognition and measurement criteria, and the difference between the fair value
and the book value on the date of loss of control. It is included in the current profit and loss. Before the Company
obtains control over the investee, other comprehensive income recognized by equity method accounting or financial
instrument recognition and measurement criteria is used to directly dispose of the relevant assets with the investee,
accounting treatment based on the same basis as the investee directly disposes of related assets or liabilities when the
control of the investee is lost, Accounting is treated on the same basis as the liabilities. Changes in the owner's equity
other than net profit or loss, other comprehensive income and profit distribution of the investee's net assets recognized
by the equity method are carried forward to the current profit or loss when the control of the investee is lost. Among
them, the remaining equity after disposal is accounted for using the equity method. Where the remaining equity after
disposal is accounted for by equity method, other comprehensive income and other owner's equity should be settled by
proportion. If the remaining equity is accounted for using financial instrument recognition and measurement standard,
all of other comprehensive income and other shareholder’s equity should be settled.
If the Company loses its joint control or significant influence on the investee due to the disposal of part of the
equity investment, the remaining equity after disposal shall be accounted for according to the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the date of loss of
joint control or significant influence is recognized in the current profit or loss. The other comprehensive income
recognized in the original equity investment by the equity method is accounted for on the same basis as the investee's
direct disposal of related assets or liabilities when the equity method is terminated, Owner's equity recognized as a
result of changes in other owners' equity other than net profit or loss, other comprehensive income and profit
distribution of the investee should be transferred to current investment income when terminating the equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions until
the loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as
a transaction dealing with the equity investment of the subsidiary and losing control. The difference between the book
value of each long-term equity investment corresponding to the disposal price and the disposal of the equity before loss
of control is first recognized as other comprehensive income, and when the control is lost, it is transferred to the current
profit and loss of loss of control.
14．Investment Property
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Investment Property refers to property held for the purpose of earning 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,
and buildings that have been rented. Investment property is initially measured at cost. The expenses related to
investment property, if the economic benefits related to this asset are highly probable to flow into the company and the
cost can be measured reliably, then the expense will account for as the cost of investment property. Other expenses are
accounted for in profit and loss when incurred.
The Company adopts the cost model to conduct subsequent measurement of investment property and depreciation
or amortization according to the policy consistent with the building or land use rights.
For details of the impairment test method and impairment provision method of property, please refer to Note IV. 20
“Long-Term Asset Impairment”.
When the self-use property or inventory is converted into investment property or investment property is converted
into self-use property, the book value before conversion is used as the recorded value after conversion.
When the use of investment property is changed to self-use, the investment property is converted into fixed assets
or intangible assets from the date of change. When the use of self-use property changes to earn rent or capital
appreciation, the fixed assets or intangible assets are converted into investment property from the date of change. In the
case of investment property measured by the cost model when the conversion occurs, the book value before conversion
is used as the entry value after conversion; if it is converted into investment property measured by the fair value model,
the fair value of the conversion date is used as the entry value after conversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected to obtain
economic benefits from its disposal, the confirmation of the investment real estate shall be terminated. Disposal income
from the sale, transfer, retirement or damage of investment properties is charged to the current profit and loss after
deducting its book value and related taxes and fees.
15. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services, renting or
operating management, and having a service life of more than one fiscal year. Fixed assets are recognized only when the
economic benefits associated with them 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 projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following the
scheduled availability. The service life, estimated net residual value and annual depreciation rate of various fixed assets
are as follows:
Depreciation period Annual depreciation
Category Depreciation Method Residual rate(%)
(Year) rate (%)
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Depreciation period Annual depreciation
Category Depreciation Method Residual rate(%)
(Year) rate (%)
straight-line
Buildings 8-50 5 1.90—12.00
depreciation
straight-line
Electronic equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Machinery equipment 5-28 4、5 3.39—19.20
depreciation
straight-line
Transport equipment 5-10 4、5 9.50—19.20
depreciation
straight-line
Office equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Other equipment 5-28 4、5 3.39—19.20
depreciation
The estimated net residual value refers to the expected state after the estimated useful life of the fixed assets has
expired and is at the end of its useful life. The amount currently obtained by the Company from the disposal of the
assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets, please refer to Note IV.
20 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an asset,
and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased asset at the
expiration of the lease term, the depreciation shall be calculated within the useful life of the leased asset; If it is not
reasonable to determine the ownership of the leased asset at the expiration of the lease term, depreciation shall be
calculated within a relatively short period of the lease term and the service life of the leased assets.
(5) Others
The subsequent expenses related to fixed assets, if the economic benefits related to 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 book value of the
replaced part should be terminated. The subsequent expenditures other than mentioned as above are recognized in profit
or loss in the period in which they are incurred.
The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic benefits
by using or disposal. The difference between the disposal income from the sale, transfer, retirement or damage of the
fixed assets less the carrying amount and related taxes is recognized in profit or loss for the current period.
The Company reviews the useful life, estimated net residual value and depreciation method of fixed assets at least
at the end of the year, and changes as an accounting estimate if changes occur.
16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure, including various project
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
expenditures incurred during the construction period, capitalized borrowing costs before the project reaches the
expected usable status, and other related expenses. Construction in progress is carried forward to fixed assets when it is
ready for its intended use.
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 directly attributable to the acquisition,
construction or production of assets eligible for capitalization, capitalization is began when asset expenditures have
occurred, borrowing costs have occurred, and the acquisition, construction or production activities necessary to bring
the assets to the intended usable or saleable state have begun. And capitalization is stopped when the assets under
construction or production that meet the capitalization conditions are ready for their intended use or saleable status. The
remaining borrowing costs are recognized as an expense in the period in which they are incurred.
The interest expenses actually incurred in the current period of special borrowings shall be capitalized after
subtracting the interest income from the unused borrowing funds deposited into the bank or the investment income
obtained from the temporary investment. For the general borrowings, according to the accumulated asset expenditures
exceed the special borrowings. The capitalization amount is determined by multiplying the weighted average of which
accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by the capitalization rate
of the general borrowings used. The capitalization rate is determined based on the weighted average interest rate of
general borrowings.
During the capitalization period, the exchange differences of foreign currency special borrowings are all
capitalized; the exchange differences of foreign currency general borrowings are included in the current profit and loss.
Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventories that
require a substantial period of acquisition, construction or production activities to achieve the intended use or sale
status.
If the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or production
process and the interruption period 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.
18. Intangible assets
(1) Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the
Company.
Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost of
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
intangible assets if the relevant economic benefits are likely to flow to the Company and its costs can be measured
reliably. Expenditure on other items other than this is recognized in profit and loss when incurred.
The acquired land use rights are usually accounted for as intangible assets. The related land use rights and building
construction costs of self-developed and constructed buildings are accounted for as intangible assets and fixed assets,
respectively. In the case of purchased houses and buildings, the relevant price is distributed between the land use rights
and the buildings. If it is difficult to allocate them reasonably, all of them are treated as fixed assets.
Since the intangible assets with limited useful life are available for use, the original value minus the estimated net
residual value and the accumulated amount of impairment reserve shall be amortized by the straight-line method during
their expected service life. Intangible assets with uncertain service life shall not be amortized.
Among them, the useful life and amortization method of intellectual property are as follows:
Item Useful life (year) Amortization method
Trademark 20 Straight-line method
At the end of the period, the useful life and amortization methods of intangible assets with limited useful life are
reviewed, and if any change occurs, it is treated as a change of accounting estimate. In addition, the useful life of
intangible assets with uncertain service life is also reviewed. If there is evidence that the period for which the intangible
assets bring economic benefits to the enterprise is foreseeable, the useful life of intangible assets is estimated and
amortized according to the amortization policy of intangible assets with limited useful life
(2) Research and development expenditure
The company's expenditure for internal research and development project is divided into research phase
expenditure and development phase expenditure.
Expenditures for the research phase shall be recognized in profit or loss when incurred.
Expenditures for the development phase that meet the following conditions shall be recognized as intangible assets,
and expenditures in the development stage that fail to meet the following conditions are included in current profit and
loss:
a. It is technically feasible to complete the intangible asset to enable it to be used or sold.
b. The intent to complete the intangible asset and use or sell it;
c. The way in which intangible assets generate economic benefits, including the ability to prove that the products
produced from the intangible assets having a market or the intangible assets having a market, and the intangible assets
will be used internally, which can prove its usefulness;
d. sufficient technical, financial resources and other resources for supporting the development of the intangible
assets and the ability to use or sell the intangible assets.
e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
If it is impossible to distinguish the expenditures between research phase and development phase, all research and
development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method, please refer to Note IV. 20
“Long-Term Asset Impairment”.
19．Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting period and
subsequent periods with amortization period of more than one year. The company's long-term deferred expenses mainly
include lease of land use right and renovation costs of factory building. Long-term deferred expenses are amortized on a
straight-line basis over the estimated benefit period.
20. Long-term assets impairment
For fixed assets, construction in progress, intangible assets with limited useful life, investment property measured
by cost model, and non-current non-financial assets such as long-term equity investments in subsidiaries, joint ventures
and associates, the Company determines whether there is any indication of impairment on the balance sheet date. If
there is any indication of impairment, the recoverable amount is estimated and the impairment test is carried out.
Goodwill, intangible assets with uncertain service life and intangible assets that not yet ready for use are tested for
impairment annually, regardless of whether there is any indication of impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value,
the impairment provision is made based on the difference and is included in the impairment loss. The recoverable
amount is the higher of the fair value of the asset less the disposal expense and the present value of the estimated future
cash flow of the asset. The fair value of assets is determined according to the sale agreement price in a fair transaction.
If there is no sales agreement but there is an active market for the asset, the fair value is determined according to the
buyer's bid for the asset; if there is neither sales agreement nor active market for assets, the fair value of assets shall be
estimated based on the best information available. Asset disposal expenses include legal fee, taxes, transportation
expenses and direct expenses incurred to make assets saleable. The present value of the estimated future cash flow of an
asset is determined by the appropriate discount rate discounting and the estimated future cash flow generated by the
asset during its continuous use and final disposal. The asset impairment provision is calculated and confirmed based on
individual assets. If it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of
the asset is determined by the asset group which the asset belongs to. An asset group is the smallest portfolio of assets
that can generate cash inflows independently.
The book value of the goodwill listed separately in the financial statements is amortized into asset groups or
portfolios that are expected to benefit from the synergies of business combinations when impairment tests are
conducted. The test results show that the recoverable amount of the asset group or portfolio containing the assessed
goodwill is lower than its book value, the corresponding impairment losses should be confirmed. The amount of
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
impairment loss is first deducted from the book value of the goodwill amortized to the asset group or portfolio, and then
deducted proportionally from the book value of other assets according to the proportion of the book value of assets
other than goodwill in the asset group or portfolio.
Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value is restored in
the future period.
21. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration, Post-employment
Benefits, Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages, bonuses, allowances and subsidies, employee welfare
fees, medical insurance premiums, maternity insurance premiums, work injury insurance premiums, housing fund, labor
union funds, employee education funds, and non-monetary benefits. The Company recognizes the actual short-term
employee's remuneration as a liability in the accounting period in which employees provide services to the Company
and recognizes them in profit or loss or related asset costs. Non-monetary benefits are measured at fair value.
Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities. The
Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a Defined
Contribution Plan is adopted, the corresponding amount of the deposit shall be included in the relevant asset cost or
current profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability based on a fixed fee
paid to an independent fund and is included in the current profit and loss or related asset costs; (2) The Defined Benefit
Plan is accounted for using the expected cumulative benefits unit method Specifically, the Company will convert the
welfare obligation arising from the Defined Benefit Plan into the final value of the departure time according to the
formula determined by the expected cumulative benefits unit method; then it is attributed to the employee's in-service
period and is included in the current profit and loss or related asset cost.
If the labor relationship with the employee is terminated before the employee's labor contract expires, or if the
employee is encouraged to accept the reduction voluntarily, when cannot withdrawing unilaterally the dismissal benefits
provided by the termination of the labor relationship plan or the reduction proposal, and when confirming the costs
associated with the restructuring involving the payment of the dismissal benefits, whichever is earlier, the Company will
recognize the employee compensation liabilities arising from the dismissal benefits, and included in the current profit
and loss. However, if the dismissal benefits are not expected to be fully paid within 12 months after the end of annual
reporting period, they shall be treated in accordance with other long-term employee compensations.
The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal
benefits. The company will pay the internal retired staff the salary and the social insurance premiums from the
employee's lay-off to normal retirement, and will include in the current profit and loss (dismissal benefits) when the
conditions of the estimated liabilities are met.
If the other long-term employee benefits provided by the Company to the employees are in line with the Defined
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Contribution Plan, they shall be accounted for Defined Contribution Plan, and otherwise accounted for the Defined
Benefit Plan.
22. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognized as estimated
liabilities: (1) The obligation is the current obligation assumed by the Company; (2) The performance of this obligation
is likely to result in the outflow of economic benefits; (3) The amount of the obligation can be reliably measured.
On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money related
to contingencies, the estimated liabilities are measured in accordance with the best estimate of the expenditure required
to perform the relevant current obligations.
If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by the
third party, the compensation amount will be separately recognized as an asset when it is basically determined to be
received, and the confirmed compensation amount does not exceed the book value of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more than
the expected economic benefit. If the contract to be executed becomes a loss contract, and the obligation arising from
the loss contract satisfies the conditions for the recognition of the above-mentioned estimated liabilities, the portion of
the contract's estimated loss that exceeds the recognized impairment loss (if any) of the contracted asset is recognized as
the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed, formal, and have been announced to the public, the amount of the
estimated liabilities are determined based on the direct expenses related to the reorganization, subject to the recognition
conditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of business sold, the
obligation related to the reorganization is confirmed only when the company promises to sell part of the business (that is,
when the binding sale agreement is signed).
23. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined based on
an equity instrument in order to obtain services from employees or other parties. Share-based Payments include
equity-settled share payment and cash-settled share payment.
a) Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value of the
granting of employees' equity instruments at the grant date. If the fair value is vested in the completion of the waiting
period of service or the fulfillment of the required performance conditions, during the waiting period, the amount of the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
fair value is calculated by the straight-line method into the relevant costs or expenses based on the best estimate of the
number of vesting equity instruments; Or If the vesting right is granted immediately after the grant, the calculation of
the amount of the fair value is included in the relevant cost or expense on the grant date, and the capital reserve is
increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate based on the latest
information on the changes in the number of employees with vesting rights and corrects the number of equity
instruments that are expected to be vested. The impact of the above estimates shall be included in the current related
costs or expenses, and the capital reserve is adjusted accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other
parties' services can be reliably measured, the fair value of other services shall be measured at the fair value on the date
of acquisition; If the fair value of the other party's services cannot be measured reliably, the fair value shall be measured
at the fair value of the equity instrument at the date the service is acquired, and is included in the relevant cost or
expense, which increases the shareholders' equity accordingly.
b) Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company based on
shares or other equity instruments. If the vesting right is available immediately after the grant, the relevant costs or
expenses shall be included on the date of grant, and the liabilities shall be increased accordingly; if vesting right is
available after the service is completed within the waiting period or met the required performance conditions, based on
the best estimate of the vesting rights on each balance sheet date of the waiting period, according to the fair value of the
liabilities assumed by the company, the services obtained in the current period are included in the cost or expense, and
the liabilities are increased accordingly.
The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the
settlement of the relevant liabilities, and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan, if the modification increases the fair value of the
equity instruments granted, the increase in the fair value of the equity instruments is recognized accordingly. 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. If the modification reduces the total fair value of the share-based payment or adopts
other methods that are not conducive to the employee, the service obtained shall continue to be accounted for, as if the
change has never occurred, unless the Company cancels some or all of equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the granted
equity instrument as an accelerated exercise, and the amount to be recognized in the remaining waiting period will be
immediately included in the current profit and loss, and the capital reserve will be recognized. If the employee or other
party can choose to meet the non-vesting conditions but fails to meet the waiting period, the Company will treat it as a
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or
Actual Controllers
In respect of the share-based payment transaction between the company and the shareholders or actual controllers
of the company, If one of the settlement enterprise and the service receiving enterprise is in the company and the other
is outside the company, it shall be accounted for in the consolidated financial statements of the company according to
the following provisions:
a.) If the settlement enterprise settles with its own equity instrument, the share-based payment transaction shall be
treated as equity-settled share-based payment; otherwise, it shall be treated as a cash-settled share-based payment.
If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the long-term equity
investment of the serviced enterprise according to the fair value of the equity instrument at the grant date or the fair
value of the liability to be assumed, and the capital reserve (other capital reserve) or liabilities shall be recognized.
b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments, the
share payment transaction shall be treated as equity-settled share payment; if the serviced enterprise has settlement
obligation and grants its employees other than its own equity instruments, the share payment transaction shall be treated
as a cash-settled share payment.
For the share based payment incurred between companies within the group, if the serviced enterprise and
settlement enterprise are not the same, then the payment should be recognized and measured in their individual financial
statements, they should be accounted for using the above principles
24. Preferred Stock, Perpetual Capital Securities and Other Financial Instruments
(1) Distinction between perpetual capital securities and Preferred Stock
Financial instruments such as perpetual bonds and preferred stocks issued by the Company, as well as meeting the
following conditions, shall be used as equity instruments:
a.) The financial instrument does 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.
b.) In the case of the financial instrument is to be settled or available with the company's own equity instruments in
the future, if the financial instrument is a non-derivative, it does not include the contractual obligation to deliver a
variable amount of its own equity instruments; if it is a derivative, the Company can only settle the financial instrument
by exchanging a fixed amount of cash or other financial assets with a fixed amount of its own equity instruments.
Except for financial instruments that can be classified under the above conditions, other financial instruments
issued by the Company should be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they are recognized as a
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
liability based on the fair value of the liability component, and are recognized as “other equity instruments” based on
the amount actually received after deducting the fair value of the liability component. The transaction costs incurred in
issuing a compound financial instrument are apportioned in proportion to their respective total issue price between the
liability component and the equity component.
(2) Accounting treatment methods such as perpetual capital securities and preferred stocks
Related interest, dividends, gains or losses of financial instruments such as perpetual capital securities and
preferred stocks classified as financial liabilities, and gains or losses arising from redemption or refinancing, are
included in the current profits and losses except for borrowing costs that meet the capitalization conditions (see Note 4,
17 “Borrowing Fees”).
When financial instruments such as perpetual capital securities and preferred stocks classified as equity
instruments are issued (including refinancing), repurchased, sold or cancelled, the Company shall treat it as a change
in equity, and related transaction costs are also deducted from equity. The Company's allocation of equity instrument
holders is treated as profit distribution.
The Company does not recognize changes in the fair value of equity instruments.
25. Revenue
The company’s operating income of mainly includes income from sales of goods, providing services, royalties, and
interest. When the company signs a contract, it evaluates the contract, identifies each individual performance obligation
contained in the contract, and determines whether each individual performance obligation is performed within a certain
period of time or at a certain point in time. The company recognizes revenue separately when it has fulfilled each
individual performance obligation in the contract.
(1) Revenue recognition for completion of performance obligations at a certain point in time
The company’s sales usually take into account the following factors to confirm revenue at the point when the
customer obtains control of the relevant merchandise: ①The company has the current right to receive payment for the
goods or services. ②The company has transferred control of the product to the customer. ③The company has
transferred the goods in kind to the customer or the customer has obtained the qualification for the goods in kind. ④
The consideration obtained by the company for the transfer of the commodity is likely to be recovered.
The specific principles of the company's sales revenue recognition are as follows: the sales revenue is recognized
when the goods have been delivered to the customer and the customer has signed for confirmation, or the product
ownership certificate has been delivered to the customer, the company has received the payment or has obtained the
proof of claiming payment.
(2) Revenue recognition of performance obligations performed within a certain period of time
For performance obligations performed within a certain period, such as services provided, the company recognizes
revenue in accordance with the performance progress during that period. On the balance sheet date, the company shall
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
multiply the total transaction price of the contract by the performance progress after deducting the accumulated revenue
and recognize it as current revenue.
The company has transferred goods or services to customers and has the right to receive consideration (and the
right depends on other factors other than the passage of time) as contract assets, and contract assets are devalued on the
basis of expected credit losses. The company's unconditional (only depending on the passage of time) right to collect
consideration from customers are listed as receivables. The company’s obligation to transfer goods or services to
customers for consideration received or receivable from customers is listed as contract liabilities.
26. Government grants
Government grant refers to the company's acquisition of monetary and non-monetary assets from the government
free of charge, excluding the capital invested by the government as an investor and enjoying the corresponding owner's
rights and interests. Government grants include assets-related grants and revenue-related grants. The company defines
the government grant obtained for the purchase and construction of long-term assets or for the formation of long-term
assets in other ways as the government grant related to assets; the remaining government grant is defined as the
government grant related to income. If the object of grants is not specified in government documents, the grants shall be
divided into income-related government grants and assets-related government grants in the following ways: (1) If the
government document clarifies the specific project for which the grant is targeted, the proportion of the expenditure
amount of the assets to be formed and the amount of the expenditures included in the expenses in the budget of the
specific project are divided, and the proportion of grant division needs to be reviewed on each balance sheet day and
changed if necessary. (2) In government documents, if the purpose is expressed only in general terms and no specific
project is specified, the grant shall be regarded as a government grant related to the income. Where a government grant
is a monetary asset, it shall be measured according to the amount received or receivable. If the government grants are
non-monetary assets, they shall be measured at the fair value; if the fair value cannot be obtained reliably, they shall be
measured at the nominal amount. Government grants measured in nominal amounts shall be recognized directly in
current profits and losses.
The Company usually confirms and measures the government grant according to the amount when it is actually
received. However, if there is conclusive evidence at the end of the period that the relevant conditions stipulated in the
financial support policy can be met and the financial support funds are expected to be received, it shall be measured
according to the amount receivable. Government grants measured in accordance with the amount receivable shall meet
the following conditions at the same time: (1) The amount of the subvention receivable has been confirmed by the
authorized government departments, or can be reasonably calculated according to the relevant provisions of the
formally issued financial fund management measures, and there is no significant uncertainty in the amount expected; (2)
According to the "Regulations on the Openness of Government Information" that the local financial department
officially released and in accordance with the provisions of the "Regulations on the Openness of Government
Information," the financial support project and its financial fund management measures should be inclusive (any
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
eligible enterprise can apply for them), rather than being specifically tailored to specific companies; (3) The relevant
grant approval has clearly promised the payment period, and the allocation of the payment is guaranteed by the
corresponding budget, so it can be reasonably ensure that it can be received within the prescribed time limit; (4) Other
relevant conditions (if any) to be met in accordance with the specific circumstances of the Company and the grants.
Government grants related to assets are recognized as deferred earnings and are divided into current profits and
losses in a reasonable and systematic way during the service life of the assets concerned. The government grants related
to revenue, which are used to compensate for the related cost or loss in the subsequent period, shall be recognized as
deferred income, and shall be recognized in profit or loss in the period in which the related costs or losses are
recognized; if it is used to compensate the related costs or losses that has occurred, it shall be directly recognized in the
current profit and loss.
It includes government grants related to both assets and income, and different parts are separately classified for
accounting treatment; if it is difficult to distinguish, the whole is classified as government grants related to income.
Government grants related to the daily activities of the Company shall be included in other income or cost
deductions according to the nature of the economic business; government subsidies unrelated to daily activities shall be
included in the non-operating revenues and expenses.
When the recognized government grants need to be returned, if there are relevant deferred earnings balances, the
book balance of related deferred earnings shall be deducted, and the excess part shall be included in the current profits
and losses or the book value of assets shall be adjusted, otherwise, the book value of assets 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 (or assets) formed in the current and previous periods
are measured by the expected amount of income tax payable (or returned) in accordance with the provisions of the Tax
Law. The amount of taxable income on which current income tax expenses are calculated is based on the corresponding
adjustment of pre-tax accounting profits in the reporting period in accordance with the relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis, and the temporary
difference between the book value of items that are not recognized as assets and liabilities but which can be determined
as their tax basis according to the tax law, are confirmed by the balance sheet liability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of an
asset or liability arising from a transaction that is neither a business combination nor an accounting profit or taxable
income (or deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for taxable
temporary differences related to investments in subsidiaries, associates and joint ventures, if the Company is able to
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
control the turnaround time of temporary differences, and the temporary difference is unlikely to be reversed in the
foreseeable future, the related deferred income tax liabilities shall not be recognized. Except for the above exceptions,
the Company recognizes all other deferred income tax liabilities arising from taxable temporary differences.
Taxable temporary differences which related to the initial recognition of an asset or liability arising from a
transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss),
relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related to
investments in subsidiaries, associates and joint ventures, if the temporary difference is unlikely to be reversed in the
foreseeable future, or the amount of taxable income used to offset the temporary difference is unlikely to be obtained in
the future, the deferred income tax assets concerned shall not be recognized. Except for the above exceptions, the
Company recognizes other deferred income tax assets that can offset temporary differences, subject to the amount of
taxable income that is likely to be obtained to offset temporary differences.
For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferred
income tax assets are recognized to the extent that it is probable that the future taxable income shall be used to offset the
deductible losses and tax credits.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured at
the applicable tax rates in the period in which the related assets are recovered or the related liabilities are recovered in
accordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value of deferred
income tax assets is written down if it is likely that sufficient taxable income will not be available to offset the benefits
of deferred income tax assets in the future. When it is possible to obtain sufficient taxable income, the amount written
down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.
In addition to recognizing that the current income tax and deferred income tax related to other transactions and
matters directly included in shareholder's rights and interests shall be recognized in other comprehensive income or
shareholder's rights and interests, and the book value of adjusted goodwill from deferred income tax resulting from the
merger of enterprises, the other current income tax and deferred income tax expenses or gains shall be recognized in
profit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire assets and
pay off liabilities at the same time, the company's current income tax assets and current income tax liabilities shall be
presented on a net basis after the offset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis, and
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax
administration department on the same tax payer or to different tax payers, but in the future, during each important
period of deferred income tax assets and liabilities being reversed, the taxpayer involved intends to settle the current
income tax assets and liabilities on a net basis, or acquire assets and pay off liabilities simultaneously, the deferred the
income tax assets and deferred income tax liabilities of the Company shall be presented on a net basis after offset.
28. Lease
Finance lease is a lease that essentially transfers all risks and rewards related to the ownership of assets. Its
ownership may or may not be transferred eventually. Leases other than finance leases are operating leases.
(1) The Company records operating lease business as a lessee.
Rental expenses for operating leases shall be included in the related asset costs or current profits and losses in the
straight-line method during each period of the lease period. The initial direct costs shall be included in the current
profits and losses. Contingent rentals shall be recognized in profits and losses when incurred.
(2) The company records operating lease business as a lessor
The rental income of operating lease shall be recognized as current profit and loss according to the straight-line
method during each period of the lease period. The larger initial direct expenses are capitalized when occurring, and the
profits and losses of the current period shall be recorded in stages on the same basis as the recognized rental income
during the whole lease period; the smaller initial direct expenses shall be recorded in the profits and losses of the current
period when occurring. Contingent rentals shall be included in current profits and losses when actually occurring.
(3) The company records finance lease business as a lessee
At the beginning of the lease period, the lower of the fair value of the leased assets and the present value of the
minimum lease payment on the lease start date is regarded as the entry value of the leased assets, and the lowest lease
payment shall be regarded as the entry value of the long-term payables, and the difference shall be regarded as the
unrecognized financing cost. In addition, the initial direct costs attributable to the lease project shall also be included in
the value of the leased assets when they occur during the lease negotiation and the signing of the lease contract. The
balance of the minimum lease payment after deducting the unrecognized financing costs shall be presented as long-term
liabilities and long-term liabilities due within one year, respectively.
The unrecognized financing cost shall be calculated by the real interest rate method during the lease period.
Contingent rentals shall be included in current profits and losses when actually occurring.
(4) The company records finance lease business as a lessor
At the beginning of the lease period, the sum of the minimum lease receipt and the initial direct cost on the lease
start date is regarded as the entry value of the financial lease receivable, and the unsecured balance shall be recorded.
The difference between the sum of the minimum lease receivable, the initial direct cost and the unsecured balance and
the sum of its present value is recognized as the unrealized financing income. The balance of the receivable financial
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
lease after deducting the unrealized financial income shall be presented as long-term claims and long-term claims
maturing within one year, respectively.
The unrealized financing income shall be calculated and confirmed by the real interest rate method during the lease
period. Contingent rentals shall be recognized in current profits and losses when actually occurring.
29. Other important accounting policies and accounting estimates
(1) Termination of business
Termination of operation refers to a component that meets one of the following conditions, can be separately
distinguished and has been disposed of or classified as held for sale by the Company: ①This component represents an
independent major business or a separate major business area. ②This component is part of an associated plan to
dispose of an independent major business or a separate major business area. ③This component is a subsidiary company
acquired specifically for resale.
For the accounting treatment methods for termination of operations, please refer to the relevant descriptions in
Note 4, 12 “Assets held for sale and disposal group”.
(2) Hedge accounting
In order to avoid some risks, the Company hedges some financial instruments as hedging instruments. For the
hedges meeting the specified conditions, the Company adopts the hedge accounting method for treatment. The hedging
of the Company is fair value hedging.
At the beginning of hedging, the Company formally designates hedging instruments and hedged items, and
prepares written documents on hedging relationship and risk management strategy and risk management objectives of
the Company engaged in hedging. In addition, the Company will continuously evaluate the effectiveness of hedging at
the beginning and after the hedging.
(3) Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or losses arising
therefrom shall be included into the current profits and losses. If the hedging instrument hedges the non-trading equity
instrument investment (or its components) that is measured at fair value and whose changes are included in other
comprehensive income, the gains and losses generated by the hedging instrument are included in other comprehensive
income. The profit or loss of the hedged item due to the hedged risk exposure shall be included into the current profits
and losses, and the book value of the hedged item shall be adjusted at the same time. If the hedged item is measured at
fair value, the gain or loss of the hedged item due to the hedged risk does not need to adjust the book value of the
hedged item, and the relevant gains and losses are included into the current profits and losses or other comprehensive
income.
When the Company cancels the designation of the hedging relationship, the hedging instrument has expired or
been sold, the contract has been terminated or exercised, or no longer meets the conditions for the application of hedge
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
accounting, the application of hedge accounting shall be terminated.
30. Changes in significant accounting policies and estimates
(1) Changes of accounting policies
On July 5, 2017, the Ministry of Finance issued Accounting Standards for Business Enterprises No.14-Revenue
(Revised in 2017) (CK [2017] No. 22), requiring domestic and board listed enterprises or board listed enterprise that
adopt international financial reporting standards or accounting standards for business enterprise to implement the new
financial instrument criteria from January 1, 2018, others did in January 1, 2020. According to new financial standards
and notices above issued by the Ministry of Finance, the Company implemented the new financial revenue standard,
which did not adjust for the comparative financial statements.
(2) Changes in Accounting Estimates
The main accounting estimates have not changed during the reporting period.
31. Significant accounting judgments and estimates
In the process of applying accounting policies, due to the inherent uncertainty of business activities, the Company
needs to judge, estimate and assume the book value of statement items that cannot be accurately measured. These
judgments, estimates and assumptions are based on the Company's management's past historical experience and other
relevant factors. These judgments, estimates and assumptions will affect the reported amounts of income, expenses,
assets and liabilities and the disclosure of contingent liabilities at the balance sheet date. However, the actual results
caused by the uncertainty of these estimates may be different from the current estimates of the Company's management,
resulting in a significant adjustment to the carrying amount of the assets or liabilities affected in the future.
The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on the basis of going
concern. If the change of accounting estimates only affects the current period of change, the number of impacts shall be
recognized in the current period of change. If the change affects both the current and future periods, the number of
impacts will be confirmed in the current and future periods of the change.
On the balance sheet date, the Company needs to judge, estimate and assume the amount of financial statement
items in the following important areas:
(1) Impairment of financial assets
The Company uses the expected credit loss model to evaluate the impairment of financial instruments. The
application of the expected credit loss model requires significant judgment and estimation, and all reasonable and basis
information, including forward-looking information, shall be considered. In making these judgments and estimates, the
Company deduces the expected changes in the debtor's credit risk based on historical data and combined with economic
policies, macroeconomic indicators, industry risks, external market environment, technological environment, changes in
customer conditions and other factors.
(2) Inventory falling price reserves
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
According to the inventory accounting policy, the Company measures according to the lower of cost and net
realizable value. For the inventory whose cost is higher than net realizable value and which is obsolete and unsalable,
the Company makes provision for inventory falling price. Impairment of inventories to net realizable value is based on
the evaluation of the marketability of inventories and their net realizable value. The appraisal of impairment of
inventories requires the management to make judgment and estimation on the basis of obtaining conclusive evidence
and considering factors such as the purpose of holding inventories and the influence of events after the balance sheet
date. The difference between the actual result and the original estimate will affect the book value of inventory and the
accrual or reversal of inventory depreciation reserve during the period when the estimate is changed.
(3) Provision for impairment of long-term assets
On the balance sheet date, the Company judges whether there are signs of possible impairment for non-current
assets other than financial assets. For intangible assets with uncertain service life, in addition to the annual impairment
test, the impairment test is also carried out when there are signs of impairment. Other non-current assets other than
financial assets shall be tested for impairment when there are indications that their book amounts are not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the higher of the net
amount of the fair value minus the disposal expenses and the present value of the estimated future cash flow, it indicates
that an impairment has occurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the sales agreement
price or observable market price of similar assets in fair transactions, and deducting the incremental cost directly
attributable to the disposal of such assets.
When estimating the present value of future cash flow, it is necessary to make a significant judgment on the output,
sales price, related operating costs and the discount rate used in the calculation of the present value of the asset (or asset
group). In estimating the recoverable amount, the Company will use all relevant information available, including
forecasts of production, selling price and related operating costs based on reasonable and supportable assumptions.
The Company shall test whether goodwill is impaired at least every year. This requires an estimate of the present
value of the future cash flows of the asset group or portfolio of asset groups to which goodwill has been allocated.
When predicting the present value of future cash flow, the Company needs to predict the cash flow generated by the
future asset group or asset group portfolio, and at the same time, select the appropriate discount rate to determine the
present value of future cash flow.
(4) Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, the Company will
accrue depreciation and amortization on a straight-line basis during their service lives. The Company reviews the
service life regularly to determine the amount of depreciation and amortization expenses to be included in each
reporting period. The service life is determined by the Company based on the past experience of similar assets and in
portfolio with the expected technological updates. If there is a significant change in previous estimates, the depreciation
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
and amortization charges will be adjusted in the future.
(5) Deferred income tax assets
To the extent that there is likely to be sufficient taxable profits to offset the losses, the Company recognizes
deferred income tax assets for all unused tax losses. This requires the Company's management to use a large number of
judgments to estimate the time and amount of future taxable profits, combined with tax planning strategies, to determine
the amount of deferred income tax assets to be recognized.
(6) Income tax
In the normal business activities of the Company, there are certain uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be paid before tax requires the approval of the tax authorities.
If there is a difference between the final determination result of these tax matters and the amount initially estimated, the
difference will have an impact on the current income tax and deferred income tax during the final determination period.
(7) Accrued liabilities
According to the terms of the contract, existing knowledge and historical experience, the Company estimates and
makes corresponding provision for product quality assurance, estimated contract losses, liquidated damages for delayed
delivery, etc. In the event that such contingencies have formed a current obligation and the performance of the current
obligations is likely to result in outflow of economic benefits from the Company, the Company recognizes the
contingencies as estimated liabilities based on the best estimate of the expenditure required to perform the relevant
current obligations. The recognition and measurement of the estimated liabilities depend to a large extent on the
judgment of the management. In the process of judgment, the Company needs to evaluate the risks, uncertainties, time
value of money and other factors related to these contingencies.
Among them, the Company will make an estimated liability for the after-sales quality maintenance commitments
provided to customers for the sale, maintenance and renovation of the goods sold. The Company's recent maintenance
experience data have been taken into account when estimating liabilities, but the recent maintenance experience may
not reflect the future maintenance situation. Any increase or decrease in this provision may affect the profit and loss in
the future years.
(8) Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. When
estimating the fair value of an asset or liability, the Company adopts the available observable market data available. If
the first level input value cannot be obtained, the Company will employ a qualified third-party appraiser to perform the
appraisal. The Valuation Committee works closely with qualified external valuers to determine the appropriate valuation
techniques and inputs to the relevant models. The CFO shall report the findings of the Valuation Committee to the
Board of Directors of the Company on a quarterly basis to explain the reasons for the fluctuation of the fair value of the
relevant assets and liabilities. Relevant information on valuation techniques and input values used in determining the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
fair values of various assets and liabilities is disclosed in Note 10, Disclosure.
V. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in
the current period, the difference between the sales of goods,
3%、5%、6%、9%、10%、13%、
Value Added Tax taxable services and taxable services income calculated in
16%
accordance with the provisions of the Tax Law is the taxable
value-added tax.
Urban Maintenance &
According to the actual value-added tax 5%、7%
Construction Tax
extra charges of education According to value added tax and consumption tax on the basis
3%
funds of actual payment
Local Extra Charges of According to value added tax and consumption tax on the basis
1.5%、2%
Education Funds of actual payment
Corporate Taxes According to taxable income 15%、17%、25%
According to 70% of original value of the real estate (or rental
Property Tax income) as the tax base; according to the original value of the 1.2%、8%、12%
real estate deducted 30% at a time.
According to Real Estates Income；According to the transfer of
Land Value Increment Tax 1.5%、5%
real estate amount of simple levy
The applicable VAT rates for taxable sales or import goods are 16%/10%, According to the announcement issued
by Ministry of Finance, State Administration of Taxation and China Custom about the policy relating to deepening VAT
reform (Announcement by Ministry of Finance, State Administration of Taxation and China Custom (2018) No.39),
from 1st April 2019 onwards, the applicable rates are adjusted to 13%/9%. Meanwhile, the company can deduct VAT by
additional deductible rate of 10% from 1st April 2019 to 31st December 2021 because of its business nature as service
provider.
Notes on tax payers of different enterprise income tax rates:
Tax Payers Income Tax Rate
Jingliang (Singapore) International Trade Co., Ltd. 17%
Beijing Guchuan Bread Food Co., Ltd. 15%
2. Tax Preferences and Approval Documents
Hangzhou Linan Little Angel Food Co., Ltd., a 4th tier subsidiary company of the Company, is a welfare
enterprise. It enjoys the preferential VAT policy of immediate refund upon payment of 35,000 yuan per person per year
for Promoting the Employment of Disabled Persons in 2015 and April 2016. Since May 2016, it has enjoyed the
preferential VAT policy of immediate refund upon payment in Preferential Value-Added Tax Policies for Promoting the
Employment of Disabled Persons (CaiShui [2016] No.52).
In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation “Notice on
Preferential Enterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai Shui[2009] No.70),
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Hangzhou Linan Little Angel Food Co., Ltd. , a 4th tier subsidiary company of the Company: Where an enterprise
employs persons with disabilities, on the basis of deduction according to the wages paid to the disabled workers, it may
deduct the amount of taxable income according to 100% of the wages paid to the disabled workers.
According to the announcement of Zhejiang Provincial Tax Bureau (No. 8, 2014), Hangzhou Linan Little Angel
Food Co., Ltd. , a 4th subsidiary company of the Company, can enjoy the preferential policy of reducing the urban land
use tax by an annual quota of 2,000 yuan per person for the average number of actual resettlement, and the maximum
amount of reduction is the urban land use tax payable by the unit in the current year.
According to the annountment No.10, 2018 issued by Shandong Provincial Tax Bureau, tax base of the stamp
duties tax for industrial enterprise’s contract is based on procurement and sales, tax rate is 50% of revenue. Linqing
XIaowangzi Food Limited paid stamp duties tax from January to September,2018 based on 130% of revenue, from
October, 2018, compute this tax based on 50% of the revenue
Company’s level 4 subsidiary-Liaoning Xiaowangzi Food Limited, according to the Supplementary Announcement
on Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ No.140 Clause 13
states that public land such as municipal street, square, public green etc. can be exempted from land use tax, when
computing land use tax, the area used in the computation is total area less the area for afforest and street
Jingliang (Singapore) International Trade Co., Ltd., a 3rd tier subsidiary of the Company, levies taxes on the
principle of territoriality. For the subsidiary newly established in Singaporean, during the first consecutive three audit
year, can enjoy the first three-year government tax exemption plan. Singapore's tax exemption plan is as follows: the
first SGD 100,000 of annual income and the first SGD100,000: tax rate of 0. Parts of SGD100,001 to 300,000: tax rate
8.5%. Over $300,000 at tax rate 17%.
Beijing Guchuan Bread&Food Co., Ltd., a 3rd tier subsidiary of the Company, is a high-tech enterprise. On
November 30, 2018, it obtained the certificate of high-tech enterprise and the certificate number GR201811007245. It is
valid for three years. It enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rate according
to the relevant provisions of both “Law of the People's Republic of China on Tax Collection and Administration” and
“Rules for the Implementation of the Tax Collection and Administration Law of the People's Republic of China”.
The company level 4 subsidiary Jingliang (Hebei) Oil Industry Co., Ltd., according to the financial department
documents, local taxation bureau in Hebei province, Hebei province document ji caishui [2019] no. 56 "about parts
reserve commodity announcement concerning the tax policy, accounting books shall be exempt from stamp duty for
funds, to undertake business book stand in the process of buying and selling contract commodity reserves shall be
exempt from stamp duty, other parties in the contract should pay the stamp duty shall also be subject to duty-payment
according to the parties. Property tax and land use tax of cities and towns shall be exempted from the property tax and
land use tax of cities and towns that undertake the business of commodity reserve for their own use. The notice will be
executed on January 1, 2019 and will terminate on 31 st December., 2021.
Jingliang (Hebei) Oil Industry Co., Ltd., a 4th subsidiary company of the Company, exempts the sale of edible
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
vegetable oil stored by the government from VAT according to “Notice of the Ministry of Finance and the State
Administration of Taxation on the Levy and Exemption of Value Added Tax for Food Enterprises”（Cai Shui [1999]
No.198）
The company level 3 subsidiary Beijing Tianweikang Grease Diaoxiao Center Co., LTD., according to the national
tax administration of the ministry of finance, the notice about food enterprises exempted from VAT tax word (1999),
article 5, 198, responsible for collection and storage of grain purchase and sale of state-owned grain enterprises and
business duty-free items listed in the notice of other food business, and government reserves edible vegetable oil sales
enterprises, which should be examined by the competent tax authorities deemed tax-exempt status, not reported to the
competent tax authorities where the audit determined that no exemption, From June 1, 2017 to December 31, 1999, the
company will exempt edible vegetable oil stored by the government from VAT.
The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited, according to the
document JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District, Tangshan, affiliated to
State Administration of Taxation, and also followed the rules in Law of the People's Republic of China on the
Administration of Tax Collection, The Implementation Guideline of Law of the People's Republic of China on the
Administration of Tax Collection, the rice under the brand of Tixiang produced by Caofeidian company if exempted
from VAT.
The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited, according to the
rules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86, the rice under the brand of
Tixiang produced by Caofeidian company if exempted from Corporation tax.
VI. Notes on Items in Consolidated Financial Statements
The following annotated items (including annotations of major items in the company's financial statements) refer
to January 1, 2020 at the beginning of the year, June 30th, 2020 at the end of the period, December 31, 2019 at the
beginning of previous period, January to June in 2020 at the current period and January to June in 2019 at the last
period, unless otherwise specified.
1．Monetary Capital
Items Ending Balance Beginning Balance
Cash in Treasury 39,372.21 27,780.31
Bank Deposits 499,567,205.01 555,138,729.05
Other Currency Funds 70,411,210.93 2,002,003.03
Total 570,017,788.15 557,168,512.39
Among them: the total amount of money deposited
13,012,241.56 76,673.88
abroad
2．Transactional financial assets
Items Ending Balance Beginning Balance
Designated as fair value through profit and loss 153,300,000.00 161,300,000.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Ending Balance Beginning Balance
financial asset
Among them: equity instrument investment
Other 153,300,000.00 161,300,000.00
Total 153,300,000.00 161,300,000.00
3．Derivative Financial Assets
Items Ending Balance Beginning Balance
Futures Contracts 120,761,236.80 88,792,254.00
Total 120,761,236.80 88,792,254.00
Note: The company's derivative financial assets are soybean oil, palm oil, vegetable oil and soybean meal futures contracts
purchased.
4．Accounts Receivable
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year 55,429,580.58
Among them: Within 3 months 41,723,732.91
4-12 months 13,705,847.67
1 to 2 years 996,633.00
2 to 3 years 7,621.50
3 to 4 years 33,000.00
4 to 5 years 242,264.00
More than 5 years 177,291.40
Sub total 56,886,390.48
minus: provision for bad debts 1,511,867.96
Total 55,374,522.52
（2）present according to the method of provision for bad debt
Ending Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Receivables with separate provision for bad
1,325,135.40 2.33 1,325,135.40 100.00 -
debts
Accounts Receivable for Bad Debt
— — — — —
Provision Based on Portfolio
Portfolio 1 - Age-based accounts receivable 44,235,597.13 186,732.56 44,048,864.57
Portfolio 2 - Related Party Accounts
11,325,657.95 11,325,657.95
Receivable
Portfolio Total 55,561,255.08 97.67 186,732.56 0.34 55,374,522.52
Total 56,886,390.48 100.00 1,511,867.96 ---- 55,374,522.52
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
（Continued）
Beginning Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Receivables with significant individual
amounts and separate provision for bad 1,325,135.40 1.61 1,325,135.40 100.00
debts
Accounts Receivable for Bad Debt
Provision Based on Credit Risk
Characteristic Portfolio
Portfolio 1 - Age-based accounts receivable 71,459,010.77 186,732.56 71,272,278.21
Portfolio 2 -Related Party Accounts
9,471,708.60 9,471,708.60
Receivable
Portfolio Total 80,930,719.37 98.39 186,732.56 0.23 80,743,986.81
Total 82,255,854.77 100.00 1,511,867.96 ---- 80,743,986.81
① In portfolio, Accounts Receivable with provision for bad debts is calculated by age analysis method
Ending Balance
Aging
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Within 1 Year 44,103,922.63 102,559.83
Among them: Within 3 months 40,310,878.91 0
4-12 months 3,793,043.72 102,559.83 2
1 to 2 years 633.00 262.73 5
2 to 3 years 7,621.50 600.00 20
3 to 4 years 51,420.00 25,710.00 50
4 to 5 years 72,000.00 57,600.00 80
More than 5 years 100
Total 44,235,597.13 186,732.56 —
（Continued）
Beginning Balance
Aging
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Within 1 Year 71,034,407.08 53,078.50
Among them: Within 3 months 68,380,481.82 0
4-12 months 2,653,925.26 53,078.50 2
1 to 2 years 65,951.22 3,297.57 5
2 to 3 years 235,232.47 47,046.49 20
3 to 4 years 51,420.00 25,710.00 50
4 to 5 years 72,000.00 57,600.00 80
More than 5 years 100
Total 71,459,010.77 186,732.56 —
（3） details of bad debt provision
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
The amount changed for the period
Items Beginning Balance Ending Balance
addition Write-off Other deduct
Provision for bad
1,511,867.96 1,511,867.96
debt
Total 1,511,867.96 1,511,867.96
（4）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Ratio of the total ending
total ending balance balance of accounts Ending Balance of Bad
Debtors of accounts receivable Debt Provision
receivable
(%)
Customer #1 5,363,751.27 9.43
Customer #2 4,165,071.89 7.32
Customer #3 3,422,950.00 6.02
Customer #4 2,562,840.26 4.51 46,302.29
Customer #5 1,648,646.50 2.90
Total 17,163,259.92 30.18 46,302.29
5．Advanced Payment
(1) Advances are presented by age
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 Years 602,889,731.58 99.96 138,172,859.10 99.85
1 to 2 years 105,769.00 0.02 183,841.00 0.13
2 to 3 years 140,480.00 0.02 23,100.00 0.02
More than 3 years
Total 603,135,980.58 100.00 138,379,800.10 100.00
Note: The Company has no significant advance payments for more than one year in this year.
(2) Advance payment of the top five Ending Balances by prepaid objects
Ratio of the total ending balance of
Company Name Ending Balance
prepayments (%)
Supplier #1 360,326,725.61 59.74
Supplier #2 56,480,594.65 9.36
Supplier #3 36,750,000.00 6.09
Supplier #4 32,016,000.00 5.31
Supplier #5 22,366,005.08 3.71
Total 507,939,325.34 84.22
6．Other Receivables
Item(s) Ending Balance Beginning Balance
Interest Receivable 1,854,761.12 3,927,438.90
Dividend Receivable
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Item(s) Ending Balance Beginning Balance
Other Receivables 17,177,397.97 15,292,658.44
Total 19,032,159.09 19,220,097.34
（1）Interest Receivable
A. Interest receivable classification
Item(s) Ending Balance Beginning Balance
Time deposit interest 1,854,761.12 3,927,438.90
Sub total 1,854,761.12 3,927,438.90
Minus: provision for bad debts
Total 1,854,761.12 3,927,438.90
（2）Other Receivables
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year 14,178,535.30
Among them: Within 3 months 11,805,146.16
4-12 months 2,373,389.14
1 to 2 years 2,141,517.73
2 to 3 years 369,447.51
3 to 4 years 473,875.27
4 to 5 years 175,922.00
More than 5 years 75,999.99
Sub total 17,415,297.80
minus: provision for bad debts 237,899.83
Total 17,177,397.97
B. Classification of other receivables by nature of funds
Book Balance at Beginning of
Nature of Funds Book Balance at End of Period
Year
Petty Cash (Employee and Department) 223,794.25 114,271.85
Guaranteed Deposit and Deposit 6,052,842.88 5,772,303.92
Intercourse Funds of Units 6,832,548.81 5,736,772.70
Employee Receivables 473,907.36 600,224.88
Tax Refund Receivables 175,922.00 2,366,765.34
Other Receivables 3,607,144.50 913,581.58
Substitute Advance 49,138.00 26,638.00
Sub total 17,415,297.80 15,530,558.27
minus: provision for bad debts 237,899.83 237,899.83
Total 17,177,397.97 15,292,658.44
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
C. Details about bad debt provision
Stage 1 Stage 2 Stage 3
Expected credit loss
Provision for bad debt Expected credit loss for Total
Expected credit loss for the whole period
the whole period (with
in the next 12 months (no credit
credit impairment)
impairment)
Amount on 1st January 2020 187,899.83 50,000.00 237,899.83
Carrying amount of other
receivable on 1st January 2020
that in this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
Provision for the period
Reverse for the period
Transfer for the period
Write off for the period
Other deduct
Carrying amount at the end of
187,899.83 50,000.00 237,899.83
the period
D. Details of bad debt provision
Amount changes for the period
Carrying amount at the Carrying amount at
Type
beginning the end
addition Write off Other deduct
Bad debt provision 237,899.83 237,899.83
Total 237,899.83 237,899.83
E. Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall Ending balance
Balance at End of ending balance of other
Name of Organization Nature of Funds Aging of bad debt
Period receivables (%) reserves
Organization #1 Intercourse Funds of Units 2,779,847.98 Within 3 months 15.96
Organization #2 Guaranteed Deposit 1,189,500.00 Within 1 year 6.83
Organization #3 Intercourse Funds of Units 3,051,279.99 Within 3 months 17.52
Organization #4 Guaranteed Deposit 1,853,125.71 Within 1 year 10.64
Organization #5 Guaranteed Deposit 600,000.00 1-2 years 3.45
Total — 9,473,753.68 — 54.4
7．Inventory
(1) Inventory Category
Items Balance at End of Period
74
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Book Balance Falling Price Reserves Book Value
Raw Materials 172,445,026.46 172,445,026.46
Revolving Materials 5,953,198.76 5,953,198.76
Stock goods 709,250,189.37 170,341.46 709,079,847.91
Developing Costs 16,075,372.26 16,075,372.26
Develop Products 16,497,730.12 11,673,694.67 4,824,035.45
In total 920,221,516.97 11,844,036.13 908,377,480.84
(Continue)
Balance at Beginning of Year
Items
Book Balance Falling Price Reserves Book Value
Raw Materials 186,791,440.87 186,791,440.87
Revolving Materials 6,155,422.13 6,155,422.13
Stock goods 1,191,645,994.73 170,341.46 1,191,475,653.27
Developing Costs 18,909,838.76 18,909,838.76
Develop Products 16,497,730.12 11,673,694.67 4,824,035.45
Processing Commission 4,599,271.17 4,599,271.17
In total 1,424,599,697.78 11,844,036.13 1,412,755,661.65
(2) Inventory Falling Price Reserves
Increased Amounts in the Decreased Amounts in the
Balance at Current Period Current Period
Items Balance at End of Period
Beginning of Year Recover or
Accrual Others Others
Charge Off
Raw Materials
Stock Goods 170,341.46 170,341.46
Develop Products 11,673,694.67 11,673,694.67
In total 11,844,036.13 11,844,036.13
(3) Additional Notes of Inventory
Book value of inventory used for mortgage at end of period is 4,824,035.45 Yuan, seeing Six、52.
8．Other Current Assets
Items Balance at End of Period Balance at Beginning of Year
Financial Products 655,000,000.00 393,198,608.68
Pre-paid Taxes and Fees 11,298,127.81 1,369,643.50
Pending Deduct VAT Input Tax 22,878,087.98 69,764,662.41
Fair Value Changes of Items Trapped at Hedging 10,792,546.20 95,964,318.54
In total 699,968,761.99 560,297,233.13
9．Long-term Equity Investment
（1）Long-term Equity Investment Classification
Carrying amount at the end of the period Carrying among at the beginning of the period
Item
Bad debt Bad debt
Carrying amount Book value Carrying amount Book value
provision provision
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Carrying amount at the end of the period Carrying among at the beginning of the period
Item
Bad debt Bad debt
Carrying amount Book value Carrying amount Book value
provision provision
Investment in Joint
79,353,334.69 79,353,334.69 72,816,569.30 72,816,569.30
Venture
Investment in
125,895,777.78 125,895,777.78 125,484,764.49 125,484,764.49
associates
Total 205,249,112.47 205,249,112.47 198,301,333.79 198,301,333.79
（2）Investment in Joint venture and associates
Increase or Decrease in the Current Period
Balance at Confirmed Profit Adjustment on
Invested Unit Beginning of Additional Negative and Loss on Other Other Changes in
Year Investment Investment Investment under Comprehensive Equity
Equity Law Income
One Cooperative Enterprise
CP Group 72,816,569.30 6,536,765.39
Sub-total 72,816,569.30 6,536,765.39
Two Joint Venture
China Grain Reserves
(Tianjin) Warehouse Logistics 117,636,450.78 411,013.29
Co., Ltd.
Jingliang Miss Me Food
Management (Tianjin) 7,848,313.71
Limited
Sub-total 125,484,764.49
411,013.29
In total 198,301,333.79 6,947,778.68
(Continue)
Increase or Decrease in the Current Period
Announce to Balance at End Ending Balance of
Invested Unit Accrual of
Distribute Case of Period Impairment Reserves
Impairment Others
Dividends or
Reserves
Profits
One Cooperative Enterprise
CP Group 79,353,334.69
Sub-total 79,353,334.69
Two Joint Venture
China Grain Reserves (Tianjin)
118,047,464.07
Warehouse Logistics Co., Ltd.
Jingliang Miss Me Food
7,848,313.71
Management (Tianjin) Limited
Sub-total 125,895,777.78
In total 205,249,112.47
10．Other equity instruments investment
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
（1）Other equity instruments investment
The invested organization Ending Balance Balance at the beginning of Year
Chongqing long jinbao network
20,000,000.00 20,000,000.00
technology co. LTD
Total 20,000,000.00 20,000,000.00
11．Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Projects under
Items Buildings Land Use Right In total
Construction
One Original Book Value
1. Balance at Beginning of Year 42,634,619.63 42,634,619.63
2. Increased Amounts in the Current
Period
3. Decreased Amounts in the Current
7,643,368.25 7,643,368.25
Period
a. Disposal 7,643,368.25 7,643,368.25
4. Balance at End of Period 34,991,251.38 34,991,251.38
Two Accumulated Impairment and
Accumulated Amortization
1. Balance at Beginning of Year 10,399,425.17 10,399,425.17
2. Increased Amounts in the Current Period 806,875.44 806,875.44
(1) Accrual or Amortization 806,875.44 806,875.44
3. Decreased Amounts in the Current
Period
4. Balance at End of Period 11,206,300.61 11,206,300.61
Three Impairment Reserves
1. Balance at Beginning of Year 453,843.72 453,843.72
2. Increased Amounts in the Current Period
3. Decreased Amounts in the Current
Period
4. Balance at End of Period 453,843.72 453,843.72
Four Book Value
1. Book Value at End of Period 23,331,107.05 23,331,107.05
2. Book Value at Beginning of Year 31,781,350.74 31,781,350.74
(2) Instructions of Investment Real Estate
Book value of investment real estate used for mortgage at end of period is 5,429,187.89 Yuan, seeing Six 52.
12．Fixed Assets
Items Balance at End of Period Balance at Beginning of Year
Fixed Assets 1,166,435,679.47 1,210,450,340.22
Disposal of Fixed Assets
In total 1,166,435,679.47 1,210,450,340.22
(1) Fixed Assets
①Fixed Assets Situation
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Machinery Transportation Electronic Office
Items Buildings Others In total
Equipment Equipment Equipment Equipment
One Original
Book Value
1. Balance at
1,072,321,981.43 378,411,230.58 19,545,084.11 14,918,304.67 2,158,897.13 371,548,039.27 1,858,903,537.19
Beginning of Year
2. Increased
Amounts in the - 2,496,790.32 285,065.67 753,467.62 86,637.17 2,691,935.31 6,313,896.09
Current Period
(1) Purchase 1,491,346.45 285,065.67 649,447.54 86,637.17 2,645,272.48 5,157,769.31
(2) Roll-in of
Project under 444,909.60 104,020.08 548,929.68
Construction
(3) Other Roll-ins 560,534.27 46,662.83 607,197.10
3. Decreased
Amounts in the - 1,908,113.23 399,657.00 63,706.41 - 53,262.27 2,424,738.91
Current Period
(1) Disposal or
948,113.23 399,657.00 63,706.41 53,262.27 1,464,738.91
Scrap
(2) Other
960,000.00 960,000.00
Roll-outs
4. Balance at End
1,072,321,981.43 378,999,907.67 19,430,492.78 15,608,065.88 2,245,534.30 374,186,712.31 1,862,792,694.37
of Period
Three
Accumulated
Impairment
1. Balance at
299,179,918.09 153,988,342.69 13,256,657.54 11,374,349.35 1,442,278.04 161,541,068.22 640,782,613.93
Beginning of Year
2. Increased
Amounts in the 19,911,695.06 15,479,762.99 573,648.16 727,258.73 65,181.90 11,970,616.15 48,728,162.99
Current Period
(1) Accrual 19,911,695.06 15,479,762.99 573,648.16 727,258.73 65,181.90 11,970,616.15 48,728,162.99
3. Decreased
Amounts in the - 336,894.41 379,674.15 56,858.00 50,918.49 824,345.05
Current Period
(1) Disposal or
336,894.41 379,674.15 45,861.63 50,918.49 813,348.68
Scrap
(2) Other
10,996.37 10,996.37
Roll-outs
4. Balance at End
319,091,613.15 169,131,211.27 13,450,631.55 12,044,750.08 1,507,459.94 173,460,765.88 688,686,431.87
of Period
Three Impairment
Reserves
1. Balance at
7,499,295.92 171,287.12 7,670,583.04
Beginning of Year
2. Increased
Amounts in the -
Current Period
3. Decreased
Amounts in the -
Current Period
4. Balance at End
7,499,295.92 171,287.12 - - - - 7,670,583.04
of Period
Four Book Value
1. Book Value at 745,731,072.36 209,697,409.29 5,979,861.23 3,563,315.80 738,074.36 200,725,946.43 1,166,435,679.47
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Machinery Transportation Electronic Office
Items Buildings Others In total
Equipment Equipment Equipment Equipment
End of Period
2. Book Value at
765,642,767.42 224,251,600.77 6,288,426.57 3,543,955.32 716,619.09 210,006,971.05 1,210,450,340.22
Beginning of Year
②Temporarily Idle Fixed Assets Situation
Original Book Accumulated Impairment
Items Book Value Notes
Value Impairment Reserves
Buildings 47,708.00 36,401.08 8,921.52 2,385.44
Machinery Equipment 433,476.03 261,171.55 150,630.69 21,673.79
In total 481,184.03 297,572.63 159,552.21 24,059.19
③Other Instructions of Fixed Assets
(1) Book value of fixed assets used for mortgage at end of period is 2,193,847.70 Yuan, seeing Six 52.
(2) Original value of fixed assets that are fully depreciated but continue to use is 36,095,983.06Yuan.
13．Project under Construction
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 13,941,962.47 17,876,177.78
In total 13,941,962.47 17,876,177.78
(1) Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Equipment Installation
5,031,740.53 5,031,740.53 10,314,744.11 10,314,744.11
Engineering Type
Technical
4,068,509.67 4,068,509.67 3,822,472.00 3,822,472.00
Transformation Type
Building Construction
4,841,712.27 4,841,712.27 3,738,961.67 3,738,961.67
Type
In total 13,941,962.47 13,941,962.47 17,876,177.78 17,876,177.78
(2) Change Condition of Important Engineering Projects under Construction in the Current Period
Increased Roll-in Fixed Other Decreased
Balance at Balance at End of
Project Name Amounts in the Assets Amount in Amounts in the
Beginning of Year Period
Current Period the Current Period Current Period
Plant No.2 Walnut Cake
4,457,068.09 548,929.68 3,551,070.32 357,068.09
Production Line
Plant No.2 Chips Production Line 848,372.58 204,243.00 695,500.00 357,115.58
4D Overlaid Corn Flakes
68,000.00 34,781.00 68,000.00 34,781.00
Production Line
Squeezed and Baked Corn Flakes
Production Line 50,000.00 50,000.00
Small Fried Potato Chips
Leisure Plant No.2 Non-fried
Potato Chips Production Line(7 3,800,000.00 3,800,000.00
lines)
Plant No.3 side and slope control 1,887,688.90 1,611,650.51 3,499,339.41
79
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Increased Roll-in Fixed Other Decreased
Balance at Balance at End of
Project Name Amounts in the Assets Amount in Amounts in the
Beginning of Year Period
Current Period the Current Period Current Period
program
New stick product equipment
1,717,083.99 49,322.51 1,766,406.50
input program
Wheat packaging automation and
stater improvement renovation 217,699.11 217,699.11
program
Daily Walnuts 731,292.09 731,292.09
Bread workshop fire facilities 974,577.28 1,102,750.60 2,077,327.88
Bread workshop fire blocking steel
2,764,384.39 2,764,384.39
plates
Total 16,784,874.34 3,734,039.71 548,929.68 8,164,570.32 11,805,414.05
14．Intangible Assets
(1) Intangible Assets Situation
Items Software Land Use Right Trademark Right Others In total
One Original Book Value
1. Balance at Beginning of Year 3,614,817.40 316,407,869.54 154,841,200.00 689,220.00 475,553,106.94
2. Increased Amounts in the
10,619.47 10,619.47
Current Period
(1) Purchase 10,619.47 10,619.47
(3) Others
3. Decreased Amounts in the
Current Period
(1) Disposal
(2) Others
4. Balance at End of Period 3,625,436.87 316,407,869.54 154,841,200.00 689,220.00 475,563,726.41
Two Accumulated Amortization
1. Balance at Beginning of Year 3,376,870.13 55,021,509.60 48,321,445.83 447.00 106,720,272.56
2. Increased Amounts in the
109,720.42 3,427,286.20 3,856,962.93 2,682.00 7,396,651.55
Current Period
(1) Accrual 109,720.42 3,427,286.20 3,856,962.93 2,682.00 7,396,651.55
(2) Others
3. Decreased Amounts in the
Current Period
(1) Disposal
(2) Others
4. Balance at End of Period 3,486,590.55 58,448,795.80 52,178,408.76 3,129.00 114,116,924.11
Three Impairment Reserves
1. Balance at Beginning of Year 662,400.00 662,400.00
2. Increased Amounts in the
Current Period
3. Decreased Amounts in the
Current Period
80
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Software Land Use Right Trademark Right Others In total
4. Balance at End of Period 662,400.00 662,400.00
Four Book Value
1. Book Value at End of Period 138,846.32 257,959,073.75 102,662,791.24 23,691.00 360,784,402.31
2. Book Value at Beginning of
237,947.27 261,386,359.94 106,519,754.17 26,373.00 368,170,434.38
Year
15．Goodwill
(1) Original Book Value of Goodwill
Increase in the Current Period Decrease in the Current Period
Name of Invested Unit or Balance at Balance at End of
Items Forming Goodwill Beginning of Year Formed by Period
Others Disposal Others
Enterprise Merger
Acquire stock shares of
Zhejiang Xiaowangzi Food 191,394,422.51 191,394,422.51
Co., Ltd.
In total 191,394,422.51 191,394,422.51
Note:
(1)The formation of goodwill of company is mainly due to the acquisition the Equity of Zhejiang Xiaowangzi Food Co. Ltd.
(2)The method of impairment loss process, key assumptions and parameters of goodwill impairment test
The company identified all the assets of Zhejiang Little Prince Food Co., Ltd. as an asset group. The recoverable amount of the
asset group was calculated based on the cash flow forecast for the next five years and the present value of the expected future cash
flow of the asset group. In the impairment test, the key data such as the estimated selling price of the product used in the cash flow
forecast, sales cost and other related expenses are determined based on the company's historical experience and the forecast of market
development. The discount rate used in cash flow forecasting is determined with reference to the time value of currency in the current
market and the specific risks of the relevant asset group. The company's test on the recoverable amount of the above-mentioned
goodwill shows that there is no impairment loss on the goodwill.
16．Long-term Unamortized Expenses
Balance at Increased Other
Amortized Amounts Balance at End of
Items Beginning of Amounts in the Decreased
in the Current Period Period
Year Current Period Amounts
Plant Renovation Expense 15,738,757.99 266,031.92 15,472,726.07
Woodland Rental Expense 5,083,560.00 56,484.00 5,027,076.00
Information Disclosure Expense 86,477.92 86,477.92
Car Rental Fees 117,833.06 59,037.94 58,795.12
In total 21,026,628.97 468,031.78 20,558,597.19
17．Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Details of Deferred Income Tax Assets Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Deductible Temporary Deferred Income Tax Deductible Temporary Deferred Income Tax
Difference Assets Difference Assets
Asset Impairment Reserves 190,997.87 47,749.46 190,997.87 47,749.46
Deductible Loss 24,524,288.08 6,131,072.02 31,275,069.47 7,818,767.37
Valuation of Financial
18,439,257.15 4,609,814.29 8,344,697.92 2,086,174.48
Instruments and Derivative
81
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Financial Instruments
Deferred Income 900,000.00 225,000.00 1,901,363.76 475,340.94
Employee Pay Payable 5,687,080.00 1,421,770.00 5,687,080.00 1,421,770.00
Credit impairment Loss 1,613,752.34 400,338.47 1,613,752.34 400,338.47
In total 51,355,375.44 12,835,744.24 49,012,961.36 12,250,140.72
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items
Taxable Temporary Deferred Income Tax Taxable Temporary Deferred Income Tax
Difference Liabilities Difference Liabilities
Valuation of Financial
Instruments and Derivative 8,347.32 2,086.83 61,988,283.56 15,497,070.89
Financial Instruments
Difference between fair value
of identifiable net asset by
acquiree confirmed by 182,599,834.36 45,649,958.59 187,755,812.28 46,938,953.07
enterprise merger and its book
value of net asset
In total 182,608,181.68 45,652,045.42 249,744,095.84 62,436,023.96
（3）Details of Deferred Income Tax Liabilities after Offset
Carrying amount after
Carrying amount after offsetting amount of
Offsetting amount of offsetting between
offsetting between deferred tax assets and
Item deferred tax assets deferred tax assets and
deferred tax assets and liabilities at the end of
and liabilities liabilities at the end of
liabilities last period
last period
Deferred tax asset 12,835,744.24 9,647,074.34 2,603,066.38
Deferred tax liabilities 45,652,045.42 9,647,074.34 52,788,949.62
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible Loss 29,906.20
91,714,506.30
Deductible temporary differences 80,581,354.00
In total 91,714,506.30 80,611,260.20
(5) Deductible loss on deferred income tax assets not being confirmed will be due at the following years
Year Balance at End of Period Balance at Beginning of Year Notes
2020 5,769,102.97
2021 4,504,020.42 4,504,020.42
2022 4,021,787.39 4,021,787.39
2023 19,123,515.53 19,123,515.53
2024 47,162,927.69 47,162,927.69
2025 16,902,255.27
In Total 91,714,506.30 80,581,354.00
18．Other Non-current Assets
Items Balance at End of Period Balance at Beginning of Year
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Balance at End of Period Balance at Beginning of Year
Equipment and Project Funds 1,005,300.00
Certificates of Deposit 190,000,000.00 150,000,000.00
Less: part due within one year
In total 190,000,000.00 151,005,300.00
19．Short-term Borrowings
(1) Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Guaranteed Loan 81,936,744.95 310,000,000.00
Fiduciary Loan 1,505,133,982.00 1,019,238,701.60
In total 1,587,070,726.95 1,329,238,701.60
20．Notes and Accounts Payable
(1) Accounts Payable Listed by Nature of Funds
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 128,413,739.58 117,367,304.89
Project Funds Payable 298,083.85 5,013,460.24
Equipment Funds Payable 336,522.00 5,511,888.97
Others 1,529,573.38 2,675,759.33
In total 130,577,918.81 130,568,413.43
21．Accounts Collected in Advance
List of Accounts Collected in Advance
Items Balance at End of Period Balance at Beginning of Year
Sales Revenue Collected in Advance 466,156,950.04
Collect rent in advance 983,521.42
Land restoration bonus 13,825,688.07
Others 153,301.88
In total 481,119,461.41
Note: There are no important accounts collected in advance with over one year of aging in the Company this current year.
22．Contract Liability
List of Contract Liability
Items Balance at End of Period Balance at Beginning of Year
Sales Revenue Collected in Advance 289,719,359.19
Collect rent in advance
Land restoration bonus 13,825,688.07
Others 542,105.33
In total 304,087,152.59
Note: Based on Accounting Standards for Enterprises No.14–Revenues (revised in 2017), accounts collected in advance adjust into
contract liability so no balance is listed in the beginning of the year.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
23．Wages Payable
(1) List of Wages Payable
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
One Short-term Compensation 23,995,435.46 128,622,018.93 140,758,771.52 11,858,682.87
Two After-service Welfare-Stated
1,164,705.96 4,379,478.70 3,435,030.79 2,109,153.87
Drawings Plan
Three Dismission Welfare 32,442.16 67,891.00 100,333.16
In total 25,192,583.58 133,069,388.63 144,294,135.47 13,967,836.74
(2) List of Short-term Compensation
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
1. Wage, Bonus, Allowance and Subsidy 20,180,061.36 110,670,841.55 124,132,690.15 6,718,212.76
2. Welfare Expense of Employee 60.00 1,730,319.06 1,698,394.56 31,984.50
3. Social Insurance Expense 846,432.39 7,171,701.09 6,370,425.01 1,647,708.47
Among them: Medical Insurance
562,434.69 5,343,904.74 4,672,034.12 1,234,305.31
Premiums
Industrial Injury Insurance Premiums 139,694.48 539,311.56 351,237.12 327,768.92
Birth Insurance Premiums 50,771.05 309,213.21 308,050.29 51,933.97
Others 93,532.17 979,271.58 1,039,103.48 33,700.27
4. Housing Provident Funds 305,120.07 6,977,671.38 7,057,162.00 225,629.45
5. Labor Union Expense and Personnel
2,663,761.64 2,071,485.85 1,500,099.80 3,235,147.69
Education Fund
In total 23,995,435.46 128,622,018.93 140,758,771.52 11,858,682.87
(3) List of Stated Drawings Plan
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
1. Basic Pension Insurance 1,084,152.50 3,459,083.33 2,547,121.12 1,996,114.71
2. Unemployment Insurance Expense 46,187.77 135,573.96 103,440.52 78,321.21
3. Enterprise Annuity Charges 34,365.69 784,821.41 784,469.15 34,717.95
In Total 1,164,705.96 4,379,478.70 3,435,030.79 2,109,153.87
Notes: The Company joins pension insurance and unemployment insurance programs set by government agencies in accordance
with regulations. According to these programs, the Company deposits expenses of pension insurance program per month based on
14% and 16% of basic employee wage while depositing expenses of pension insurance program per month based on 0.5%, 0.7% and
0.8% of basic employee wage. Except from above expenses deposited monthly, the Company won’t undertake further payment
obligation. Corresponding expenses are charged to costs of profit and loss in the current period or related assets when occurring.
24．Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
VAT 6,398,018.10 9,856,580.09
Urban Maintenance and Construction Tax 535,793.26 780,497.63
Corporate Income Tax 24,910,296.25 25,362,765.03
84
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Balance at End of Period Balance at Beginning of Year
House Property Tax 917,019.76 2,679,468.56
Land Use Tax 278,609.25 466,291.09
Individual Income Tax 137,132.68 7,588,240.51
Educational Surtax 187,525.34 297,757.24
Local Educational Surtax 177,159.95 250,647.90
Stamp Tax 227,747.98 552,502.89
Resources Tax 4,240.00
Others 23,534.64 3,630.47
In total 33,792,837.21 47,842,621.41
25．Other Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 22,529,982.62 24,604,524.69
Dividends Payable 11,013,302.88 11,013,302.88
Other Accounts Payable 106,719,290.69 60,553,568.66
In total 140,262,576.19 96,171,396.23
(1) Interest Payable
Items Balance at End of Period Balance at Beginning of Year
Loan Interest between Enterprises 21,082,795.47 21,082,795.47
Bank Loan Interest 1,447,187.15 3,521,729.22
In total 22,529,982.62 24,604,524.69
(2) Dividends Payable
Items Balance at End of Period Balance at Beginning of Year
Dividend Payable for Corporate Shares 3,213,302.88 3,213,302.88
Dividends Payable for Minority Shareholders 7,800,000.00 7,800,000.00
In total 11,013,302.88 11,013,302.88
(3) Other Accounts Payable
List of Other Accounts Payable by Nature of Funds
Items Balance at End of Period Balance at Beginning of Year
Loan and Interest 11,258,346.00 11,258,346.00
Intercourse Funds of Related Parties 2,992,100.26 7,852,823.90
Intercourse Funds between Units 37,574,608.36 12,791,535.12
Personal Intercourse Funds 4,336,771.43 2,930,547.58
Various Insurances of Employee 2,127,463.59 1,605,759.25
Employee Loan Payable 18,687.02
Guaranteed Deposit and Deposit 40,105,380.44 21,235,322.03
Warehouse and Storage Charges 2,068,351.19 701,645.19
Others 6,237,582.40 2,177,589.59
In total 106,719,290.69 60,553,568.66
26．Other Current Liabilities
Items Balance at End of Period Balance at Beginning of Year
85
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Balance at End of Period Balance at Beginning of Year
Fair Value Changes of Items Trapped at Hedging 30,459,525.96
In total 30,459,525.96
27．Deferred Income
Balance at Increase in the Decrease in the Balance at End of
Items Cause of Formation
Beginning of Year Current Period Current Period Period
Government Subsidy 71,518,169.27 845,880.18 70,672,289.09
Others 107,558.41 107,558.41
In total 71,518,169.27 107,558.41 845,880.18 70,779,847.50 —
Among them， items involving government subsidy
Balance at Increase in the Charge to
Items Receiving Charge to other Balance at End
Beginning of Current Period Non-operating Other Decreases
Subsidy Profits of Period
Year Income
Relocation
4,617,165.78 4,617,165.78
Compensation
Special Subsidy for
Production line’s tech 900,000.00 900,000.00
improvements
Special Subsidy for
11,205,178.95 11,205,178.95
Infrastructure Input
Enterprise Supporting
Infrastructure at
Construction Stage of
“Tianjin Harbor
Industrial Park 50,567,875.69
Administrative 51,206,627.77 638,752.08
Committee”
Tianjin Binhai New
District’s Industrially
Technical Renovation
and Park Construction
2,314,814.69 207,048.10
Funds as well as
Expenditures for 2,107,766.59
Science and
Technology
Fixed Assets Specially
Formed by Science and
Technology 856,227.08 856,227.08
Commission of
Guchuan Edible Oil
Appropriation for Oil
Tank’s Electric Heating 118,585.04 118,585.04
System
Cooking Oil Green and
Cleaning Production
Equipment, Technical
Study as well as 299,569.96 299,569.96
Science and
Technology
Demonstration
In total 71,518,169.27 845,880.18 70,672,289.09
28．Long-term Wage Payable
(1) List of Long-term Wage Payable
86
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Balance at End of Period Balance at Beginning of Year
One Dismission Welfare 43,582.87
Two Other Long-term Welfare 5,720,716.87 5,687,080.00
In total 5,720,716.87 5,730,662.87
29．Share Capital
Changes in the Current Period
Balance at
Share Transfer Balance at End
Items Beginning of Share
New Share Issue of Provident Others Sub-total of Period
Year Donation
Fund
1. Shares with Restricted
Conditions
(1) State Shareholding
(2) State-owned 213,388,058.00
Legal-person 213,388,058.00
Shareholding
(3) Other Domestic 42,459,387.00
1,299,500.00 41,159,887.00 41,159,887.00
Capital Shareholding
Including:
Domestic Legal-person 1,299,500.00
1,299,500.00
Shareholding
Domestic Natural Person 41,159,887.00
41,159,887.00 41,159,887.00
Shareholding
(4) Foreign Shareholding
Including:
Foreign Legal-person
Shareholding
Foreign Natural Person
Shareholding
Total Shares with
214,687,558.00 41,159,887.00 41,159,887.00 255,847,445.00
Restricted Conditions
2. Tradable Shares
without Restricted
Conditions
(1) RMB Ordinary Shares 406,127,806.00 406,127,806.00
(2) Domestically Listed 64,975,000.00
64,975,000.00
Foreign Shares
(3) Listed Foreign Shares -
Overseas
(4) Others -
Total Tradable Shares 471,102,806.00
471,102,806.00
without Restricted
Conditions
In total 685,790,364.00 41,159,887.00 41,159,887.00 726,950,251.00
30．Capital Reserves
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
87
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
Capital Premium (Stock Premium) 1,243,731,683.62 84,161,371.48 1,327,893,055.10
Capital Reserves Roll-in Under Original
112,316,357.36 112,316,357.36
System
Other Capital Reserves 239,624,007.21 239,624,007.21
In total 1,595,672,048.19 84,161,371.48 1,679,833,419.67
Note：Changes of capital reserve is due to acquision of level 3 conmpany: Zhejiang Xiaowangzi Food Co. Ltd (Xiaowangzi
Company for short) 25.1149% minority shareholding.
31．Other Comprehensive Incomes
Amounts Occurred in the Current Period
Less: Other
Amounts
Comprehensive
Balance at Occurred Balance at
Incomes Less: Attributable Attributable
Items Beginning of before End of
Charged at Income to Parent to Minority
Year Income Tax Period
Earlier Stage Tax Company Shareholders
in the
and Current Expense After Tax After Tax
Current
Roll-in Profit
Period
and Loss
One Other
comprehensive
incomes that won’t be
classified into profit
and loss
Two Other
comprehensive
incomes that will be 267,628.14 106,731.84 106,731.84 374,359.98
classified into profit
and loss
Changes in fair value
through profit and loss
-273,702.00 -273,702.00
for available-for-sale
financial assets
Converted difference
between foreign
541,330.14 106,731.84 106,731.84 648,061.98
currency financial
statements
In total 267,628.14 106,731.84 106,731.84 374,359.98
32．Surplus Reserves
Balance at Beginning of Increase in the Decrease in the Current Balance at End of
Items
Year Current Period Period Period
Statutory Surplus Reserves 84,487,609.05 84,487,609.05
Free Surplus Reserves 37,634,827.93 37,634,827.93
In total 122,122,436.98 122,122,436.98
Note: according to the rules in corporation law and articles of association, legal surplus reserve should be collected by 10% of
net profit. It should be stopped collecting when the accumulated amount of surplus reserve reaches 50%.
After collecting legal surplus reserve, the company can collect random surplus reserve. Random surplus reserve can be used to
compensate the losses of the previous years or increase capital after approval.
33．Undistributed Profit
88
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Amounts in the Current Period Amounts in the Prior Period
Adjustment on undistributed profit at end of last year 2,186,806.56 -131,155,119.19
Adjustment on total number of undistributed profit at
beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 2,186,806.56 -131,155,119.19
Add: net profit attributable to parent company in the current
73,762,895.19 51,510,904.41
period
Less: withdrawal legal surplus reserves
Withdrawal free surplus reserves
Withdrawal general risk reserves
Ordinary stock dividends payable
Ordinary stock dividends transferred to capital
Undistributed profit at end of period 75,949,701.75 -79,644,214.78
34．Minority Interest
Items Balance at End of Period Balance at Beginning of Period
Sinograin Oils Corporation 256,302,159.58 247,200,159.58
Wang Yuecheng and other minority shareholders of
36,847,296.93 262,136,908.18
Zhejiang Xiaowangzi Food Co., Ltd.
Hebei Provincial Oil Pool Co., Ltd. 35,628,350.84 37,432,892.43
Tangshan Caofeidian Agricultural Development Group
23,931,556.33 24,033,762.48
Co., Ltd.
Xinyi Yaowan Tourism Industrial Park Development Co.,
8,686,677.78 8,726,102.59
Ltd.
Beijing Grain Xinniu Runying Equity Investment Fund
1,447,779.63 1,454,350.43
(Limited Partnership)
Shanghai Heheng Management Consulting Co., Ltd. 4,053,782.97 4,072,181.21
In total 366,897,604.06 585,056,356.90
35．Operation Revenue and Operation Cost
Amounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Prime Business 3,737,897,021.63 3,352,581,703.86 3,257,865,991.64 3,035,952,555.86
Other Business 12,876,046.00 3,619,554.20 25,411,733.75 4,726,185.28
In total 3,750,773,067.63 3,356,201,258.06 3,283,277,725.39 3,040,678,741.14
(1) Prime Business (Industry and Business-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Industry (or Business)
Revenue Cost Revenue Cost
Oil 3,288,905,719.04 3,046,368,506.47 2,806,393,935.07 2,729,552,663.26
Food Processing 448,991,302.59 306,213,197.39 451,472,056.57 306,399,892.60
In total 3,737,897,021.63 3,352,581,703.86 3,257,865,991.64 3,035,952,555.86
(2) Prime Business (Region-classified)
89
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Amounts in the Current Period Amounts in the Prior Period
Name of Region
Revenue Cost Revenue Cost
North China 3,324,692,828.54 3,069,424,264.71 2,877,861,106.26 2,780,606,295.60
East China 345,482,036.95 233,630,691.51 317,198,978.31 208,643,288.47
Northeast China 67,722,156.14 49,526,747.64 62,805,907.07 46,702,971.79
In total 3,737,897,021.63 3,352,581,703.86 3,257,865,991.64 3,035,952,555.86
36．Tariff And Annex
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 2,548,143.53 2,461,913.37
Educational Surtax 1,122,628.97 1,087,154.91
Local Educational Surtax 748,419.33 724,769.95
House Property tax 2,283,241.92 4,677,651.66
Land Use Tax 697,236.79 1,313,154.94
Vehicle and Vessel Use Tax 18,449.10 20,390.50
Stamp Tax 1,184,227.85 1,223,926.02
Resources Tax 4,790.20 24,644.00
Other Taxes and Fees 43,973.68 66,958.29
In total 8,651,111.37 11,600,563.64
Note: calculation and payment standard of various taxes and surcharges sees details of Appendix Five Tax.
37．Sales Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 30,679,537.79 26,278,771.73
Advertising Expenses 50,943.40 11,032,656.69
Repair Costs 196,031.21 268,787.39
Packing Expenses 377,669.68 521,273.55
Transportation Fees 15,690,237.64 9,731,907.07
Terminal Charges 733,797.56 814,392.75
Water and Electricity Fees 537,197.29 617,732.44
Vehicle Fees 288,457.98 510,991.71
Warehousing Fees 15,404,986.89 10,118,318.32
Test and Detection Fees 92,866.07 133,936.52
Commercial Insurance Expenses 9,305.33 10,435.78
Sales Promotion Expenses 15,146,952.23 12,619,447.62
Business Entertainment Expenses 12,124.00 90,324.45
Labor Protection Fees 2,041,919.09 2,501,255.24
Commodity Wastage 2,607,074.83 3,324,432.17
Sample and Product Losses 10,799,781.87 6,424,598.55
90
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Amounts in the Current Period Amounts in the Prior Period
Sales and Service Fees 1,189,380.88
Impairment Costs 8,297,585.79 8,329,518.71
Travel Expenses 32,550.49 3,584,743.56
Operation Expenses 19,872.00 51,371.72
Other Expenses 3,622,228.00 3,076,861.42
In total 106,641,119.14 101,231,138.27
38．Administration Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 39,515,162.11 43,327,621.22
Workers Insurance Expenses 191,201.44 401,623.47
Company Expenses 4,048,286.09 4,790,871.80
Commercial Insurance Expenses 249,530.18 335,106.88
Vehicle Fees 1,171,579.21 1,842,062.94
Impairment Costs 8,780,269.70 7,123,583.86
Repair Costs 315,031.15 922,490.45
Taxes in Expenses 124,708.21
Amortization of Assets 7,640,013.04 10,030,497.46
Material Consumption 178,299.87 345,488.89
Fees of Employing Agent 6,913,392.38 3,525,514.48
Information Network Fees 546,524.14 504,859.82
Labor Protection Fees 250,202.03 91,851.64
Environmental Protection Fees 202,183.63 275,063.52
Security Protection Fees 362,895.58 397,403.41
Conference Expenses 1,150,999.94 2,089,180.89
Business Entertainment Expenses 530,321.82 831,498.05
Travel Expenses 168,024.21 717,873.17
Office Expenses 379,182.90 448,964.24
Lease Fees 2,300,085.56 1,544,749.18
Water and Electricity Fees 74,558.04 97,764.85
Other Expenses 3,064,543.27 1,529,449.94
In total 78,032,286.29 81,298,228.37
39．Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
R&D Expenses 2,803,717.02 531,066.00
In total 2,803,717.02 531,066.00
91
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
40．Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 16,975,042.06 22,981,293.07
Less: Interest Income 5,373,488.21 4,120,628.58
Exchange Profit and Loss 10,647,837.51 -707,452.18
Service Charges 561,292.42 321,276.88
In total 22,810,683.78 18,474,489.19
41．Other Profits
Amounts Charged to
Amounts in the Current Amounts in the Prior
Items Non-recurring Profit and
Period Period
Loss in the Current Period
Government Subsidy Related to Daily
4,891,100.00 9,871,098.22 452,231.23
Corporate Activities
Return of Service Charges of Withholding
155,848.84 155,568.84
Individual Income Tax
In total 5,046,948.84 9,871,098.22 607,800.07
42．Investment Income
Amounts in the Current Amounts in the Prior
Items
Period Period
Long-term equity investment income accounted with equity method 6,947,778.68 2,824,933.21
Investment income generated from disposing long-term equity investment
Investment income from wealth management products 7,828,824.60 6,512,884.43
Investment income of financial assets that are measured as per fair value and for
which the changes are included in the current profit and loss during the holding —— -158,515.55
period
Investment income of disposing financial assets that are measured as per fair
—— ——
value and for which the changes are included in the current profit and loss
Investment income obtained during the holding of transactional financial assets 1,919,322.71
Investment income of disposing financial products
In total 16,695,925.99 9,179,302.09
43．Profits on Changes in Fair Value
Amounts in the Current
Source of generating income with changes in fair value Amounts in the Prior Period
Period
Financial assets that are measured as per fair value and for which the
-76,876,667.25 26,158,281.22
changes are included in the current profit and loss
Including: income with changes in fair value generated by derivative
-76,876,667.25 26,158,281.22
financial instruments
In total -76,876,667.25 26,158,281.22
44．Loss from Asset Devaluation
Items Amounts in the Current Period Amounts in the Prior Period
Loss on Bad Debts -197,695.56
Loss on Inventory Price Drop
In total -197,695.56
45．Assets Disposal Income
92
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Amounts Charged to
Items Amounts in the Current Period Amounts in the Prior Period Non-recurring Profit and
Loss
Gains or losses on disposal of fixed assets 11,997,518.40
Gains or losses on disposal of intangible
assets
In total 11,997,518.40
46．Non-operating Income
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit
Current Period Prior Period
and Loss
Claim Compensation Income 45,892.72 12,256.67 45,892.72
Relocation Compensation 127,712.82 88,793.40 127,712.82
Other Gains 417,842.66 1,576,474.10 417,842.66
Donation Gains 10,000.00 10,000.00
Government Subsidy Irrelevant to Daily Operation Activities 87,991.62 38,919.42 87,991.62
In total 689,439.82 1,716,443.59 689,439.82
47．Non-operating Expenses
Amounts Charged to
Amounts in the Current
Items Amounts in the Prior Period Non-recurring Profit and
Period
Loss
Assets Damage and Abandonment Loss 125,166.92 9,041.80 125,166.92
Including: Fix Assests 125,166.92 9,041.80 125,166.92
External Donation Expenses 43,940.54 4,000.00 43,940.54
Amercement Outlay 500.00 500.00
Compensation and Default Money 1,015,309.53 1,015,309.53
Relocation Loss 117,085.86 85,950.31 117,085.86
Others 116,668.92 723,426.51 116,668.92
In total 1,418,671.77 822,418.62 1,418,671.77
48．Income Tax Expenses
(1) List of Income Tax Expenses
Amounts in the Current
Amounts in the Current Period Amounts in the Prior Period
Period
Income Tax Expenses of the Current Period 40,543,901.19 9,220,010.91
Deferred Income Tax Expenses -16,082,069.33 12,901,765.21
Others 24,461,831.86 22,121,776.12
(2) Accounting Profit and Income Tax Expense Adjustment Process
Items Amounts in the Prior Period
Total Profits 119,769,867.60
Income tax expenses calculated by statutory/applicable tax rate 21,377,859.59
Effect of subsidiary corporations being applicable to different tax rates -163,343.19
93
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Items Amounts in the Prior Period
Adjustment on effect of income tax in the prior period
Effect of Non-taxable Incomes -818,108.22
Effect of Non-deductible cost, expense and loss
Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior
period
Effect of deductible temporary difference or deductible loss on unconfirmed deferred income
4,068,635.64
tax in the current period
Effect of income tax deductions
Effect of R & D deduction
Effect of disability wage deductions
Effect of business combinations not under common control
Tax rate adjustments cause changes in deferred income tax assets / liabilities at the beginning
of the year
Others -3,211.96
Income Tax Expenses 24,461,831.86
49．Other Comprehensive Incomes
See details of Appendix Six, 31.
50．Item related to cash flows statement
(1) Receiving other cash related to operation activities
Amounts in the Current
Items Amounts in the Prior Period
Period
Intercourse Funds of Related Parties 21,078,496.81 569,937.02
Intercourse Funds of Other Units 463,379,309.67 342,920,924.84
Non-operating Income 818,480.79 1,475,758.10
Others 3,357,922.87 3,137,920.94
In total 488,634,210.14 348,104,540.90
(2) Other Cash Payment Related to Operation Activities
Amounts in the Current
Items Amounts in the Prior Period
Period
Intercourse Funds of Related Parties 1,285,132.00 1,045,623.70
Intercourse Funds of Other Units 385,951,971.50 297,279,937.27
Payment for Administration Expenses 11,735,512.89 13,042,670.47
Payment for Operating Expenses 28,815,251.90 22,095,807.54
Non-operating Expenses 1,089,682.49 558,429.32
Petty Cash Paid 302,932.58 499,480.07
Bank Charges 563,721.88 321,755.60
Others 5,045,373.28 4,920,214.42
94
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Amounts in the Current
Items Amounts in the Prior Period
Period
In total 434,789,578.52 339,763,918.39
51．Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Supplementary Materials Amounts in the Current Amounts in the Prior
Period Period
1. Adjusting net accounting profit to operating cash flow
Net Profit 95,308,035.74 65,244,252.00
Add: Assets Impairment Reserves 197,695.56
Credit impairment loss
Fixed Assets Depreciation, Oil-and-gas Assets Depreciation and Productive
48,728,162.99 46,664,713.52
Biological Assets Depreciation
Amortization of Intangible Assets 7,396,651.55 4,679,361.81
Amortization of Long-term Deferred Expenses 468,031.78 11,510,733.39
Losses on Disposal of Fixed Assets, Intangible Assets and Other
-11,997,518.40
Long-term Assets (Fill in profit with symbol “－”)
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) 125,166.92 9,041.80
Losses on Changes in Fair Value (Fill in profit with symbol “－”) 76,876,667.25 -26,158,281.22
Financial Expenses (Fill in profit with symbol “－”) 27,622,879.57 22,273,840.89
Investment Losses (Fill in profit with symbol “－”) -16,695,925.99 -9,179,302.09
Decrease in Deferred Income Tax Assets (Fill in increase with symbol
-10,232,677.86 -15,242,389.19
“－”)
Increase in Deferred Income Tax Reliabilities (Fill in decrease with
-7,136,904.20 11,314,155.51
symbol “－”)
Decrease in Inventory (Fill in increase with symbol “－”) 504,378,180.81 127,246,418.19
Decrease in Items of Operating Receivables (Fill in increase with symbol
-408,709,949.07 -39,843,479.45
“－”)
Increase in Items of Operating Receivables (Fill in decrease with symbol
-131,032,498.73 49,764,970.19
“－”)
Others -15,891,918.30
Net Cash Flows from Operating Activities 187,095,820.76 220,592,294.21
2. Major investment and financing activities that do not involve cash
payments
Conversion of Debt into Capital
Convertible Bonds Due Within One Year
Fixed Assets under Financing Lease
3. Net change conditions in cash and cash equivalents
Cash balance at end of period 570,017,788.15 625,128,759.14
Less: cash balance at beginning of period 555,097,777.21 867,870,016.78
Add: balance of the cash equivalents at end of period
Less: balance of the cash equivalents at beginning of period
Cash and cash equivalent net increase quota 14,920,010.94 -242,741,257.64
(2) Composition of cash and cash equivalents
Balance at Beginning of
Items Balance at End of Period
Period
One Cash 570,017,788.15 555,097,777.21
95
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Balance at Beginning of
Items Balance at End of Period
Period
Including: cash in stock 39,372.21 27,780.31
Bank deposit available for payment at any time 499,567,205.01 553,067,993.87
Other currency funds available for payment at any time 70,411,210.93 2,002,003.03
Two Cash Equivalents
Including: bond investment maturing within three months
Three Balance of Cash and Cash Equivalents at End of Period 570,017,788.15 555,097,777.21
Including: restricted cash and cash equivalents used by parent company
or intra-group affiliates
52．Assets with restricted ownership or right to use
Book Value at End of
Items Reasons being Restricted
Period
Inventory 4,824,035.45 Loan Mortgage
Investment Real Estate 5,429,187.89 Loan Mortgage
Fixed Assets 2,193,847.70 Loan Mortgage
In total 12,447,071.04 ——
53．Monetary Items of Foreign Currency
(1) Monetary Items of Foreign Currency
Balance of Foreign Balance of Converting to RMB
Items Exchange Rate Convert
Currency at End of Period at End of Period
Currency Funds 1,944,653.62 7.08 13,768,147.63
Including: US Dollars 1,944,653.62 7.08 13,768,147.63
Accounts in advance 37,424.00 7.08 264,943.21
Including: US Dollars 37,424.00 7.08 264,943.21
Short-term Borrowings 1,686,100.00 7.08 11,936,744.95
Including: US Dollars 1,686,100.00 7.08 11,936,744.95
Other payable 41,964.06 7.08 297,084.56
Including: US Dollars 41,964.06 7.08 297,084.56
(2) Instruction of Operational Entity Overseas
The registrant and operating unit of the Company is Beijing Grain (Singapore) International Trade Co., Ltd. with main business
place of Singapore and recording currency of US Dollars.
54．Hedging
Please refer to 3 Derivative Financial Assets under Section VI of the Notes.
55．Government Subsidies
（1）Basic conditions of government grants
Amount recorded in profit and
Type Amount Presentation item
loss
Enterprise infrastructure from committee of
Lingang industrial district in Tianjin during 638,752.08 Other income 638,752.08
construction stage
Technology improvement, park contracture fund 207,048.10 Other income 207,048.10
and scientific expense from Binhai district of
96
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Amount recorded in profit and
Type Amount Presentation item
loss
Tianjin
Steady post refund income
Subsidy from Linan bureau of commerce 131,200.00 Other income 131,200.00
Grants for patents 2,000.00 Other income 2,000.00
VAT refund income 3,345,073.38 Other income 3,345,073.38
Tech service fee of taxation controlling system 280.00 Other income 280.00
Subsidy for boiler modification 200,000.00 Other income 200,000.00
Grants for commercial harbor construction fee
114,147.00 Other income 114,147.00
from Tianjin bureau of commerce
Specific grant for smart manufacture from
130,000.00 Other income 130,000.00
committee of free trade zone in Tianjin harbor
Grants for job stabilization from Tianjin bureau
121,209.44 Other income 121,209.44
of social security
Information supervising fee of food & oil market
1,390.00 Other income 1,390.00
in Binhai district in Tianjin
4,891,100.00 4,891,100.00
Total
VII. Change in Consolidation Scope
None.
VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Group
Principle Shareholding
Registered Ratio (%) Mode of
Name of Subsidiary Place of Nature of Business
Place Acquisition
Business Direct Indirect
Investment Merger under the
Beijing Jingliang Food Co., Ltd. Beijing Beijing 100
Company same control
Agricultural Product
Jingliang (Tianjin) Grain and Oil Industry Merger under the
Tianjin Tianjin and By Product 70
Co., Ltd. same control
Processing
Merger under the
Beijing Jingliang Oil and Fat Co., Ltd. Beijing Beijing Grain and oil trade 100
same control
Farm and Sideline Merger under the
Jingliang (Hebei) Oil Industry Co., Ltd. Hebei Hebei 51
Food Processing same control
Merger under the
Beijing Guchuan Edible Oil Co., Ltd. Beijing Beijing Grain and oil trade 100
same control
Farm and Sideline Merger under the
Beijing Eisen-Lubao Oil Co., Ltd. Beijing Beijing 100
Food Processing same control
Beijing Tianweikang Oil Distribution Center Merger under the
Beijing Beijing Warehousing 100
Co., Ltd. same control
Merger under the
Beijing Guchuan Bread Food Co., Ltd. Beijing Beijing Food Processing 100
same control
Combination not
Zhejiang Xiao Wang Zi Food Co., Ltd. Hangzhou Hangzhou Food Processing 94.8865
under same control
94.8865 Combination not
Hangzhou Lin'an Xiaotianshi Food Co., Ltd. Hangzhou Hangzhou Food Processing
under same control
94.8865 Combination not
Liaoning Xiao Wang Zi Food Co., Ltd. Liaoning Liaoning Food Processing
under same control
94.8865 Combination not
Linqing Xiao Wang Zi Food Co., Ltd. Linqing Linqing Food Processing
under same control
Lin'an Chunmanyuan Agricultural Hangzhou Hangzhou Food Processing 94.8865 Combination not
97
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Principle Shareholding
Registered Ratio (%) Mode of
Name of Subsidiary Place of Nature of Business
Place Acquisition
Business Direct Indirect
Development Co., Ltd. under same control
Jingliang (Singapore) International Trade Co., Establishment by
Singapore Singapore Grain trade 100
Ltd. investment
Jingliang Rural Complex Construction and Establishment by
Xinyi Xinyi Land remediation 51
Operations (Xinyi) Co., Ltd. investment
Jingliang (Caofeidian) Agricultural Establishment by
Tangshan Tangshan Plantation 51
Development Co., Ltd. investment
Beijing jingliang guyuan oil and grease co. Establishment by
Beijing Beijing Business services 100
LTD investment
(2) Major non-wholly-owned subsidiaries
Shareholding Profit And Loss Dividends
Ratio of Attributable to Distributed to Balance of Minority
Name of Subsidiary Minority Minority Minority Shareholder's Equity at the End
Shareholders Shareholders for the Shareholders for the of the Period
(%) Current Period Current Period
Jingliang (Tianjin) Grain and Oil
30 9,102,000.00 256,302,159.58
Industry Co., Ltd.
Zhejiang Xiao Wang Zi Food Co., Ltd. 5.1135 12,405,282.14 36,847,296.93
(3) Important financial information on major non-wholly-owned subsidiaries
Ending Balance
Name of Subsidiary Non-current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Jingliang (Tianjin) Grain
and Oil Industry Co., 868,916,266.47 802,914,922.70 1,671,831,189.17 764,721,524.34 52,771,579.26 817,493,103.60
Ltd.
Zhejiang Xiao Wang Zi
393,685,059.04 525,358,320.39 919,043,379.4 3 111,560,247.80 22,399,478.73 133,959,726.53
Food Co., Ltd.
(Continued)
Beginning balance
Name of Subsidiary Non-Current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Jingliang (Tianjin)
Grain and Oil Industry 649,743,907.75 818,631,677.47 1,468,375,585.22 587,965,574.01 56,409,479.27 644,375,053.28
Co., Ltd.
Zhejiang Xiao Wang Zi
361,264,401.11 509,389,952.91 870,654,354.02 122,737,979.36 22,409,424.73 145,147,404.09
Food Co., Ltd.
(Continued)
Amount This Year
Name of Subsidiary Total comprehensive Cash flow from
Operating income Net profit
income operating activities
Jingliang (Tianjin) Grain and Oil Industry
1,588,794,595.18 30,337,553.63 30,337,553.63 -226,038,764.17
Co., Ltd.
Zhejiang Xiao Wang Zi Food Co., Ltd. 414,085,161.70 59,576,702.97 59,576,702.97 68,355,787.51
(Continued)
Name of Subsidiary Last Term Amount
98
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Total
Cash Flow from
Operating Income Net Profit Comprehensive
Operating Activities
Income
Jingliang (Tianjin) Grain and Oil Industry
1,463,348,174.86 -17,419,056.07 -17,419,056.07 47,286,961.09
Co., Ltd.
Zhejiang Xiao Wang Zi Food Co., Ltd. 404,961,227.15 65,702,534.89 65,702,534.89 61,504,068.82
2. The share of owner's equity in the subsidiary has changed and it still controls the transactions of the subsidiary.
None.
3. Equity in Joint Ventures or Affiliates
(1) Important Joint Ventures or Affiliates
Shareholding Ratio (%) Accounting Treatment
Name of Joint Principle Place Nature of Methods for Investment
Registered Place
Venture or Affiliate of Business Business Direct Indirect in Joint Ventures or
Affiliates
Niulan Mountain,
Beijing Zhengda Feed
Beijing Shunyi District, Manufacturer 50.00 Equity method
Co., Ltd.
Beijing
SINOGRAIN No. 1, Lingang
Transportation
(Tianjin) Economic Zone,
Tianjin and 30.00 Equity method
Warehousing Binhai New Area of
warehousing
Logistics Co., Ltd. Tianjin
(2) Important financial information on major joint ventures
Beijing Zhengda Feed Co., Ltd. Beijing Zhengda Feed Co., Ltd.
Item
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Current assets 39,259,263.44 38,402,384.29
Including: cash and cash equivalents 2,649,918.78 2,851,108.24
Non-current assets 179,516,327.41 166,838,127.64
Total assets 218,775,590.85 205,240,511.93
Current liabilities 65,905,097.73 65,443,549.59
Non-current liabilities
Total liabilities 65,905,097.73 65,443,549.59
Minority shareholder's equity
Shareholders' equity attributable to the
152,870,493.12 139,796,962.34
parent company
Share of net assets based on shareholding
76,435,246.56 69,898,481.17
ratio
Adjustments 2,918,088.13 2,918,088.13
-- Goodwill
-- Unrealized profits from internal
transactions
-- Other 2,918,088.13 2,918,088.13
Book value of equity investment in joint
79,353,334.69 72,816,569.30
ventures
Fair value of equity investment in joint
ventures with open offers
Operating income 153,872,389.59 128,269.508.30
Financial costs -1,308,088.38 -1,228,641.61
Income tax expense 4,456,502.35 1,752,379.24
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Beijing Zhengda Feed Co., Ltd. Beijing Zhengda Feed Co., Ltd.
Item
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Net profit 13,073,530.78 5,292,107.72
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 13,073,530.78 5,292,107.72
Dividends received from joint ventures in
the current period
(3) Important financial information on major affiliates
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item SINOGRAIN (Tianjin) Warehousing Logistics SINOGRAIN (Tianjin) Warehousing Logistics
Co., Ltd. Co., Ltd.
Current assets 81,393,707.22 97,971,129.85
Non-current assets 387,789,026.67 384,616,624.25
Total assets 469,182,733.89 482,587,754.10
Current liabilities 2,920,457.21 10,362,807.69
Non-current liabilities 72,770,729.78 80,103,443.80
Total liabilities 75,691,186.99 90,466,251.49
Minority shareholder's equity
Shareholders' equity attributable
393,491,546.90 392,121,502.61
to the parent company
Share of net assets based on
118,047,464.07 117,636,450.78
shareholding ratio
Adjustments
-- Goodwill
-- Unrealized profits from internal
transactions
-- Other
Book value of equity investment
118,047,464.07 117,636,450.78
in affiliates
Fair value of equity investment in
affiliates with open offers
Operating income 6,383,017.42 2,896,792.95
Net profit 1,370,044.29 654,547.84
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 1,370,044.29 654,547.84
Dividends received from affiliates
in the current period
IX. Risks Related to Financial Instruments
The Company's principal financial instruments include equity investment, creditors' investment, borrowing, accounts receivable,
accounts payable, etc. See relevant items under Section VI of the Notes for details about financial instruments. The risks associated
with these financial instruments and the risk management policies adopted by the Company to reduce such risks are described below.
The Company's management manages and monitors these risk exposures to ensure that such risks are controlled within the restricted
range.
The Company adopts the sensitivity analysis technology to analyze the possible influences of reasonable and possible changes
100
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
of risk variables on current profits and losses or shareholders' equity. Since a risk variable seldom changes by itself and the
correlation between variables will have a significant impact on the final amount of change caused by a risk variable, the following
content is based on the assumption that each variable changes independently.
(1) Risk Management Objectives and Policies
The Company's engagement in risk management is aimed at striking a proper balance between risk and profit, minimizing the
negative impact of risk on the Company's operating performance and maximizing the interests of shareholders and other equity
investors. In view of the above objectives of risk management, the Company's basic strategy for risk management is to identify and
analyze all risks faced by the Company, establish the appropriate bottom line for risk tolerance and conduct risk management, carry
out timely and reliable supervision of risks and thus control the risks within a limited range.
1. Market Risks
(1) Foreign Exchange Risk
Foreign exchange risk refers to the risk of loss caused by exchange rate movements. The Company's foreign exchange risk is
mainly related to US dollar. Apart from the Company's several subsidiaries that settle their purchasing and selling businesses in US
dollar, the Company's other main business activities are settled in RMB. As of June 30th, 2020, the assets and liabilities of the
Company are settled in RMB, except that the assets or liabilities mentioned in the following table are settled in US dollar. Foreign
exchange risks arising from assets and liabilities settled in such foreign currencies may have an impact on the Company's operating
performance.
Item Ending Balance Opening Balance
Cash and cash equivalents 13,768,147.63 6,768,083.00
Accounts receivable 1,590,894.85
Accounts payable 134,399.21
Prepaid accounts 264,943.21
Other receivable 297,084.56
Short-term loans 11,936,744.95
Note: The Company pays close attention to the impact of exchange rate movements on the Group.
(2) Sensitivity analysis on foreign exchange risk:
The Company adopts the sensitivity analysis technology to analyze the possible influences of reasonable and possible changes
of risk variables on current profits and losses or owner's equity. Since a risk variable seldom changes by itself and the correlation
between variables will have a significant impact on the final amount of change caused by a risk variable, the following content is
based on the assumption that each variable changes independently.
On the assumption that foreign currency assets and liabilities remain relatively stable and other variables remain unchanged, the
possible reasonable changes in exchange rates have the following after-tax influences on current profits and losses and equities:
Current period
Item Change in Exchange Rate
Influence on Shareholders'
Influence on Profits
Equity
All foreign currencies Appreciate by 5% against RMB 89,963.07 89,963.07
All foreign currencies Depreciate by 5% against RMB -89,963.07 -89,963.07
2. Credit Risk
On June 30th, 2020, the largest credit risk exposure that may cause financial loss to the Company mainly comes from the loss on
financial assets of the Company due to the failure of the other party to perform its obligations, including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument measured at fair value, its
book value reflects its risk exposure instead of their biggest risk exposure, and its biggest risk exposure may vary with the change of
its future fair value.
In order to reduce the credit risk, the Company sets relevant policies to control its exposure, sets corresponding credit periods
based on customer’s financial position, possibility of obtaining guarantees from third parties, credit records and other factors such as
current market conditions and other credit qualifications for customer assessment, and implements other monitoring procedures to
ensure that necessary measures are taken to recover overdue credits. In addition, the Company reviews the collection of individual
account receivables on each balance sheet date in order to make sufficient provision for bad debts for uncollectable amounts.
Therefore, the Company's management believes that the Company's credit risk has been greatly reduced.
The liquidity funds of the Company are deposited in banks with high credit rating, so the credit risk of liquidity funds is low.
3. Liquidity Risk
When managing liquidity risk, the Company keeps and monitors adequate cash and cash equivalents approved by its
management in order to meet the Company's business needs and reduce the influences of cash flow fluctuations. The Company's
management monitors the use of bank loans and ensures the performance of loan agreements.
As of June 30, 2020, the undiscounted cash flow of Company's financial assets and liabilities under contracts is shown below by
due date:
Item Ending Balance
101
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Original Book 1 To 2 Above Five
Net Book Value Within One Year 2 To 5 Years
Value Years Years
Monetary funds 570,017,788.15 570,017,788.15 570,017,788.15
Transactional
153,300,000.00 153,300,000.00 153,300,000.00
financial assets
Derivative
120,761,236.80 120,761,236.80 120,761,236.80
financial assets
Accounts
55,374,522.52 56,886,390.48 55,429,580.58 996,633.00 282,885.50 177,291.40
receivables
Other
19,032,159.09 19,270,058.92 16,033,296.42 2,141,517.73 1,019,244.78 75,999.99
receivables
Investment in
other equity 20,000,000.00 30,500,000.00 30,500,000.00
instruments
Subtotal 938,485,706.56 950,735,474.35 946,041,901.95 3,138,150.73 1,302,130.28 253,291.39
Short-term
1,587,070,726.95 1,587,070,726.95 1,587,070,726.95
loans
Accounts
130,577,918.81 130,577,918.81 130,577,918.81
payable
Other payables 140,262,576.19 140,262,576.19 140,262,576.19
Subtotal 1,857,911,221.95 1,857,911,221.95 1,857,911,221.95
(Continued)
Beginning balance
Item Original Book Above Five
Net Book Value Within One Year 1 to 2 Years 2 to 5 Years
Value Years
Monetary funds 557,168,512.39 557,168,512.39 557,168,512.39
Transactional
161,300,000.00 161,300,000.00 161,300,000.00
financial assets
Derivative financial
88,792,254.00 88,792,254.00 88,792,254.00
assets
Accounts receivables 80,743,986.81 82,255,854.77 81,502,115.68 65,951.22 510,496.47 177,291.40
Other receivables 19,220,097.34 19,457,997.17 12,853,916.80 936,934.75 1,662,306.72 77,400.00
Available-for-sale
20,000,000.00 30,500,000.00 30,500,000.00
financial assets
Subtotal 927,224,850.54 939,474,618.33 932,116,798.87 1,002,885.97 2,172,803.19 254,691.40
Short-term loans 1,329,238,701.60 1,329,238,701.60 1,329,238,701.60
Notes payable and
130,568,413.43 130,568,413.43 130,568,413.43
accounts payable
Other payables 96,171,396.23 96,171,396.23 96,171,396.23
Subtotal 1,555,978,511.26 1,555,978,511.26 1,555,978,511.26
4. Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest rates bring the
Company the interest rate risk on cash flow, while the financial liabilities at fixed interest rates bring the Company the interest rate
risk on fair value. The Company decides the relative proportion of fixed interest rate contracts and floating interest rate contracts
according to the current market environment.
As of June 30th, 2020, the Company's interest-bearing liabilities under floating rate contracts denominated in RMB amounted to
RMB 229,490,000 and those under fixed rate contracts denominated in RMB amounted to RMB 1,357,580,726.95.
X. Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
Item Fair Values at the End of the Period
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
First Level Fair Second Level Third Level Fair
Value Fair Value Value Total
Measurement Measurement Measurement
I. Continuous fair value measurement
（一）Transactional financial assets 274,061,236.80 274,061,236.80
(I) Financial assets that are measured at fair
value and whose changes are included in the 120,761,236.80 120,761,236.80
current profits and losses
(1) Investment in debt Instruments
(2) Investment in equity instruments
(3)Derivative financial assets 120,761,236.80 120,761,236.80
(II) Financial assets designated as fair value
153,300,000.00 153,300,000.00
through profit or loss
(1) Investment in debt Instruments
(2) Investment in equity instruments
(3) Others 153,300,000.00 153,300,000.00
( 二 ) Other investments in equity
20,000,000.00 20,000,000.00
instruments
Total assets continuously measured at fair
294,061,236.80 294,061,236.80
value
2. Basis for determining market prices of continuous and non-continuous first level fair value measurement items
Note: The Company makes offers for first level fair value measurement according to open contracts of the futures exchange and
the quote from the bank on financial product at the end of the period.
XI. Related Parties and Related-Party Transactions
1. Parent Company of the Company
Registered Proportion of Proportion of
Capital Shares Held by Voting Power Held
Registered
Name of Parent Company Nature of Business Parent Company by Parent Company
Place (ten thousand in the Company in the Company
Yuan) (%) (%)
Investment
Beijing Grain Group Co. Ltd. Beijing 90,000.00 39.68 39.68
Management
Note: The ultimate controlling party of the Company is Beijing Capital Agribusiness Group Co., Ltd.
2. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
3. Joint Ventures and Affiliates of the Company
Equity in Joint Ventures or Affiliates under Section VIII of the Notes 32 for details on major joint ventures or
affiliates.
The information on other joint ventures or affiliates that have related party transactions with the Company in the
current period or have balances of related party transactions with the Company in the previous period is as follows:
Name of Joint Venture or Affiliate Relationship with the Company
Beijing Zhengda Feed Co., Ltd. Joint venture
SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. Affiliate
4. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Dahongmen Grain Purchasing & Storage Warehouse Controlled by the ultimate controlling party
Beijing Daxing National Grain Purchasing & Storage Warehouse Controlled by the ultimate controlling party
Beijing Southeast Suburb Grain Warehouse Controlled by the ultimate controlling party
103
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Name of Other Related Party Relationship with the Company
Beijing Guchuan Fuxing Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Rice Industry Co., Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Hongyuanli Rations Supply Station Controlled by the ultimate controlling party
Beijing Jingliang Dacang Grain and Oil Trade Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Dagu Grain and Oil Trade Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang E-commerce Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trade Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Gurun Trade Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Biotechnology Industry Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Logistics Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Yunhe Grain and Oil Trade Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Property Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingmen Liangshi State-owned Asset Management Co., Ltd. Controlled by the ultimate controlling party
Beijing Juncheng Nuoyuan Grain and Oil Purchase and Sale Co., Ltd. Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co., Ltd. Controlled by the ultimate controlling party
Beijing Grain Group Finance Co., Ltd. Controlled by the ultimate controlling party
Beijing Grain Group Co., LTd Controlled by the ultimate controlling party
Beijing Longde Business Management Co., Ltd. Controlled by the ultimate controlling party
Beijing Nanjiao Agricultural Production Management Co., Ltd. Controlled by the ultimate controlling party
Beijing Niannian Haohe Rations Supply Station Controlled by the ultimate controlling party
Beijing Sanyuan Petroleum Co., Ltd. Controlled by the ultimate controlling party
Beijing Sanyuan Seed Technology Co., Ltd. Feed Branch Controlled by the ultimate controlling party
Beijing Dahongmen Grain Purchasing & Storage Warehouse Co., Ltd. Controlled by the ultimate controlling party
Beijing Dahongmen Oil Plant Controlled by the ultimate controlling party
Beijing Haidian West Suburb Grain and Oil Supply Station Controlled by the ultimate controlling party
Beijing Jingcheng Auto Driving Technical School Controlled by the ultimate controlling party
Beijing Liangguan Grain and Oil Supply Station Controlled by the ultimate controlling party
Beijing Institute of Food Science Controlled by the ultimate controlling party
Beijing Longqing Xiadu Rations Supply Station Controlled by the ultimate controlling party
Beijing Maliandao Grain and Oil Special Supply Station Controlled by the ultimate controlling party
Beijing South Suburb Grain Purchasing & Storage Warehouse Controlled by the ultimate controlling party
Beijing Nanyuan Vegetable Oil Plant Controlled by the ultimate controlling party
Beijing Pinggu Grain and Oil Industry and Trade Co., Ltd. Controlled by the ultimate controlling party
Beijing Food Supply Department No. 34 Supply Section Controlled by the ultimate controlling party
Beijing Shunyi Grain and Oil Co., Ltd. Controlled by the ultimate controlling party
104
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Name of Other Related Party Relationship with the Company
Beijing Tiangu Grain and Oil Trade Co., Ltd. Controlled by the ultimate controlling party
Supply Station of Beijing Tongzhou Grain and Oil Trading Company Controlled by the ultimate controlling party
Beijing Nouthwest Suburb Grain Warehouse Controlled by the ultimate controlling party
Beijing Northwest Suburb Grain Purchasing & Storage Warehouse Controlled by the ultimate controlling party
Beijing Sesame Oil Plant Controlled by the ultimate controlling party
Beijing Yonghe Xincheng Grain and Oil Supply Co., Ltd. Controlled by the ultimate controlling party
Beijing Assistant Rations Supply Station Controlled by the ultimate controlling party
Beijing Army Grain and Oil Supply Station Controlled by the ultimate controlling party
Beijing Shounong Animal Husbandry Development Co., Ltd. Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd. Controlled by the ultimate controlling party
Beijing Xingshishang Trade Center Controlled by the ultimate controlling party
Beijing Yuma Motor Vehicle Training Ground Co., Ltd. Controlled by the ultimate controlling party
Beijing Yuanjishun Rations Supply Station Controlled by the ultimate controlling party
Beijing Zhibohui Architectural Design Institute Co., Ltd. Controlled by the ultimate controlling party
Hebei Shounong Modern Agricultural Technology Co., Ltd. Controlled by the ultimate controlling party
Jingliang (Tianjin) E-commerce Co., Ltd. Controlled by the ultimate controlling party
Jingliang (Tianjin) Trade Development Co., Ltd. Controlled by the ultimate controlling party
Jingliang Huayuan (Beijing) Agricultural High-tech Co., Ltd. Controlled by the ultimate controlling party
Shandong Fukuan Bioengineering Co., Ltd. Controlled by the ultimate controlling party
China Integrated Research Center for Meat Products Controlled by the ultimate controlling party
5. Related-party Transactions
(1) Related-party transactions for purchase and sale of goods and provision and acceptance of labor services
① Purchase of goods or acceptance of labor services
Related Party Related-party Transaction Current Amount Last Term Amount
Beijing Beishui Food Industry Limited Purchase of goods 2,664.00
Beijing Er Shang Dahongmen Meat Food Limited Purchase of goods 260,599.00 23,465.91
Beijing Er Shang Jinghua Tea Limited Purchase of goods 20,128.00
Beijing Er Shang Longhe Food Limited Purchase of goods 54.00
Beijing Er Shang Moqi Zhonghong Food Linited Purchase of goods 13,034.40
Beijing Er Shang Wangzhihe Food Limited Purchase of goods 177,803.60
Beijing Guchuan Rice Industry Co., Ltd. Purchase of goods 134,268.00 1,080,320.62
Beijing Guchuan Food Co., Ltd. Purchase of goods 7,662,781.80 6,712,357.05
Beijing Jingliang E-commerce Co., Ltd. Purchase of goods 5,000.00
Beijing Jingliang Dongfang Grain and Oil Trade
Purchase of goods 266,693.50 62,306.04
Co., Ltd.
Beijing Liubiju Food Limited Purchase of goods 26,809.40
Beijing Sanyuan Food Co. Ltd Purchase of goods 1,459,486.60 83,449.82
Beijing WuhuanShuntong Supply Chain Purchase of goods 11,895.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Related Party Related-party Transaction Current Amount Last Term Amount
management Limited
Beijing Yueshengzhai Halal Food Limited Purchase of goods 520,850.50 10,116.37
Shandong Fukuan Bioengineering Co., Ltd. Purchase of goods 248,829.00 564,670.00
In total 10,810,896.80 8,536,685.81
Note: The price of a related-party transaction shall be equal to the price charged for a unrelated-party transaction that is
same as or similar to such related-party transaction.
② Sale of goods/provision of labor services
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Baijiayi Food Limited Sale of goods 131,284.00 233,920.76
Beijing Beifang Jingtang Wine Sale Limited Sale of goods 27,364.00 47,762.71
Beijing Damofang Flour Limited Sale of goods 2,075.00 2,244.51
Beijing Daxing State Grain Reserves Sale of goods 18,927.28
Beijing Dongcheng Sugar Tobacco and Alcohol Co., Ltd. Sale of goods 15,207.54
Beijing Dongfeng International Sports Culture Co., Ltd. Sale of goods 1,755.00
Beijing Er Shang Dahongmen Poultry Food Limited Sale of goods 2,800.00
Beijing Er Shang Fuyue Food Limited Sale of goods 7,460.00
Beijing Er Shang Gongyifu Food Limited Sale of goods 17,256.88 56,719.07
Beijing Er Shang Longhe Food Limited Sale of goods 15,270.00 9,185.51
Beijing Er Shang Wangzhihe Food Limited Sale of goods 25,766,349.73
Beijing Guchuan Rice Industry Co., Ltd. Sale of goods 429,869.06 380,345.69
Beijing Guchuan Food Co., Ltd. Sale of goods 1,089,789.39 1,120,065.36
Beijing Hongyuanli Army Grain and Oil Supply Station Sale of goods 377,490.82 290,155.12
Beijing Jingliang E-commerce Co., Ltd. Sale of goods 333,956.73 556,667.87
Beijing Jingliang Dongfang Grain and Oil Trade Co., Ltd. Sale of goods 1,855,631.79 3,098,779.64
Beijing Jingliang Biotechnology Industry Co. , Ltd. Sale of goods 8,886.11
Beijing Jingliang Taihe Real Estate Limited Sale of goods 4,980.00 4,489.04
Beijing Jingliang Taixing Real Estate Limited Sale of goods 2,075.00
Beijing Jingliang Taiyu Real Estate Limited Sale of goods 3,320.00 2,244.51
Beijing Jingliang Logistics Co., Ltd. Sale of goods 226,577.57 4,628.78
Beijing Jingliang Xinda Property Management Co. , Ltd. Sale of goods 11,205.00 12,120.37
Beijing Jingliang Xingye Asset Management Co. , Ltd. Sale of goods 7,885.00
Beijing Jinigliang Yunhe Grain and Oil Trade Co. , Ltd Sale of goods 122,729.05 98,066.30
Beijing Jingliang Property Co., Ltd Sale of goods 174,056.74 135,032.85
Beijing Jingmen Liangshi state-owned Assets Management Sale of goods
363,200.00
Co., Ltd.
Bejing Juncheng Nuoyuan Grain and Oil Sale Limited Sale of goods 306,990.83 1,138,782.32
Beijing Lanfeng Vegetable Distribution Co., Ltd. Sale of goods 3,380.00
Beijing Liubiju Food Co., Ltd. Sale of goods 2,750.00 2,727.27
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Longde Business Management Co. , Ltd. Sale of goods 77,727.27
Beijing Maisui Hotel Management Co., Ltd. Sale of goods 31,955.00 31,872.10
Beijing Nanjiao Agricultural Production Management Co., Sale of goods
64,726.61
Ltd..
Beijing Automobile Service Co., Ltd. Sale of goods 18,600.00
Beijing Sanyuan Taxi Co., Ltd. Sale of goods 44,400.00
Beijing Sanyuan Petroleum Co., Ltd. Sale of goods 286.24 569.88
Beijing Sanyuan Food Co., Ltd. Sale of goods 527,348.00 86,318.19
Beijing Sanyuan Seed Technology Co., Ltd. Feed Branch Sale of goods 14,185,704.49 14,515,875.28
Beijing Dahongmen Grain Storage Co., Ltd. Sale of goods 15,355.00
Beijing Desheng Hotel Sale of goods 102,900.00
Beijing Dongjiao Farm Co., Ltd. Sale of goods 13,585.00
Beijing Haidian District Xijiao Grain and Oil Supply Station Sale of goods
7,327,448.82 5,797,596.22
Co., Ltd.
Beijing Hongbaoyuan Trade Co., Ltd. Sale of goods 1,872.00
Beijing Huacheng Trade Co., Ltd. Sale of goods 2,502.00 5,863.63
Beijing Jingcheng Automobile Driving Technical School Sale of goods 13,200.00
Beijing Jingliang Shengyuan Grain and Oil Sales Co. , Ltd. Sale of goods 72,318.18
Beijing Academy of Grain Science Sale of goods 6,771.72
Beijing Longqing Xiadu Military Grains Supply Limited Sale of goods 379,651.38 363,175.15
Beijing Maliandao Grain and Oil Special Supply Station Sale of goods 1,311,822.02 1,299,552.22
Beijing Nanyuan Vegetable Oil Plant Sale of goods 7,055.00
Beijing Milk Co., Ltd. Sale of goods 1,946.00
Beijing Pinggu District Grain and Oil Industry & Trade Co. , Sale of goods
2,672.73
Ltd.
Beijing Food Supply No. 34 Supply Department Sale of goods 1,399,738.14 1,056,193.89
Beijing Shunyi Grain & Oils Co., Ltd. Sale of goods 4,920.00
Beijing Sidaokou Aquatic Products Co., Ltd. Sale of goods 176.00
Beijing Yanqing Farm Co., Ltd. Sale of goods 6,000.00 3,000.00
Beijing Yonghe Xincheng Grain and Oil Supply Co., Ltd. Sale of goods 748,622.16
Beijing Zidibing Grain and Oil Supply Co., Ltd. Sale of goods 1,676,047.71 1,578,420.33
Beijing Shounong Animal Husbandry Development Co., Ltd. Sale of goods 3,522.95 7,013.85
Beijing Shounong Supply Chain Management Co., Ltd. Sale of goods 2,469,496.69 26,877.71
Beijing Shounong Commercial Chain Co., Ltd. Hebei Sale of goods
41,834.86
Xiong'an Branch
Beijing Capital Agribusiness Group Co., Ltd. Sale of goods 3,154.10 13,027.59
Beijing Shounong Xiangshan Convention Center Sale of goods 13,100.00 21,834.86
Beijing Shuangta Lvgu Agriculture Co., Ltd. Sale of goods 107,775.70
Beijing Aquatic Products Co., Ltd. Sale of goods 6,380.00 5,727.27
Beijing Sugar Tobacco and Alcohol Group Co., Ltd. Sale of goods 26,280.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Wuhuan Shuntong Supply Chain Management Co., Sale of goods
1,344,372.42 1,089,576.75
Ltd.
Beijing Xicheng Sugar Tobacco and Alcohol Co., Ltd. Sale of goods 8,370.00
Beijing Xingshishang Trade Co., Ltd. Sale of goods 8,181.82
Beijing Great Wall Danyu Livestock Co., Ltd. Sale of goods 411.01
Beijing Zhibohui Architectural Design Institute Co., Ltd Sale of goods
9,545.45
Union
Beijing Zhujun Grain and Oil Supply Co., Ltd. Sale of goods 2,196,158.88 3,014,819.43
Hebei Shounong Modern Agricultural Technology Co., Ltd. Sale of goods 7,867,155.54 10,975,282.69
Jinghai Petrochemical (Tianjin) Co., Ltd. Sale of goods 2,112.00
Jingliang (Tianjin) E-Commerce Co., Ltd. Sale of goods 41,993.91 68,685.10
Jingliang (Tianjin) Trade Development Co., Ltd. Sale of goods 10,560.00
Jingliang Century Cloud Technology Co., Ltd. Sale of goods 830.00
Tianjin Hongda International Freight Forwarding Company Sale of goods 3,520.00
China Meat Research Center Sale of goods 5,437.16
Beijing Jingliang E-Commerce Co., Ltd. Provision of Service 766,509.38
Beijing Jingliang Dagu Grain and Oil Trading Co., Ltd. Provision of Service 177,900.00
In Total 73,528,174.97 48,117,520.71
Note: The price of a related-party transaction shall be equal to the price charged for an unrelated-party transaction that
is same as or similar to such related-party transaction.
(2) Related-party lease
① If the Company is the lessor,
Lease Income Recognized in Lease Income Recognized
Name of Lessee Type of Leased Asset
the Current Period in the Prior Period
Beijing Jingliang E-commerce Co., Ltd. Housing 766,509.38
Beijing Guchuan Food Co., Ltd. Housing 9,523,809.50
Beijing Jingliang E-commerce Co., Ltd Vehicle leasing 12,729.60
In Total 779,238.98 9,523,809.50
② If the Company is the lessee,
Lease fee recognized in the Lease fee recognized in the
Name of Lessor Type of Leased Asset
current period prior period
Beijing Jingliang Property Co. Ltd. House leasing 578,628.78
Beijing Daxing National Grain Purchasing & House leasing
1,055,100.00 1,055,100.00
Storage Warehouse
Beijing Grain Group Co., Ltd House leasing 280,000.00 700,000.00
Beijing Dahongmen Grain Purchasing & House leasing
956,592.00
Storage Warehouse
Beijing Dahongmen Plant Oil Factory House leasing 340,000.00
In Total 1,913,728.78 3,051,692.00
(3) Related-party guarantee
The Company has no related-party guarantee expect for the subsidiary guarantees within the scope of the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
consolidated financial statements at this period
(4) Related-party assets transfer and debt restructuring
The Company has no related-party assets transfer and debt restructuring at this period.
(5) Remuneration for key management staff
Unit: ten thousand yuan
Item Current Amount Last Term Amount
Remuneration for Key Management Staff 89.05 78.26
(6) Other related-party transaction
Related Party Related-party Transaction Current Amount Last Term Amount
Beijing Guchuan Food Co., Ltd. Income from utility costs 1,544,536.20 1,380,188.90
6. Related-party Receivables and Payables
(1) Receivables
Ending Balance Beginning Balance
Item Book Balance Provision for Book Balance Provision for Bad
Bad Debts Debts
Monetary funds
Beijing Grain Group Finance Co. Ltd. 183,314,973.33 326,474,443.01
Total 183,314,973.33 - 326,474,443.01
Receivables:
Beijing Baijiayi Food Limited 110,400.00
Beijing Beishui Yongxing Seafood Sales Limited 882.00
Beijing Er Shang Gongyifu Food Co., Ltd. 13,860.00 17,226.00
Beijing Er Shang Wangzhihe Food Co., Ltd. 3,422,950.00
Beijing Guchuan Rice Co., Ltd 82,674.00 11,397.00
Beijing Guchuan Food Co., Ltd. 4,900.00 139,100.00
Beijing Jingliang E-commerce Co., Ltd. 7,848.00 238,918.00
Beijing Jingliang Dongfang Grain and Oil Trade Co.,
448,954.00 1,122,310.00
Ltd.
Beijing Jingliang Logistics Co., Ltd. 5,302.00
Beijing Jingliang Property Co., Ltd. 120,765.00
Beijing Juncheng Nuoyuan Purchase and Sale Co.,
334,620.00 148,800.00
Ltd.
Beijing Sanyuan Seed Industry Technology Co., Ltd.
2,704,158.65 1,938,842.06
Feed Branch
Beijing Beishui Jialun Seafood Market Co. Ltd 2,856.00
Beijing Haidian West Suburb Grain and Oil Supply
2,062,648.00 7,800.00
Station Co., Ltd.
Beijing Longqing Xiadu Army Food Supply Co., Ltd. 166,320.00
Beijing Maliandao Special Grain & Oil Supply
505,400.00
Station Co, Ltd
Beijing Zhujun Grain & Oil Supply Station 981,204.00
Beijing Army Grain & Oil Supply Co, Ltd. 332,400.00
Beijing Shounong Supply Chain Management Co.
302,318.30 2,880,252.00
Ltd.
Beijing Seafood Limited 2,688.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Ending Balance Beginning Balance
Item Book Balance Provision for Book Balance Provision for Bad
Bad Debts Debts
Beijing Wuhuan Shuntong Supply Chain
45,540.00 289,880.00
Management Co. Ltd.
Beijing Zhujun Grain & Oil Supply Co, Ltd. 765,000.00
Hebei Shounong Modern Agriculture Technology Co.
1,579,153.54
Ltd.
Total 11,325,657.95 - 9,471,708.60
Advance receipts:
Beijing Er Shang Wangzhihe Food Limited 10,718.00
Total 10,718.00
(2) Payables
Item Ending Balance Beginning balance
Short-term Borrowings:
Beijing Capital Agribusiness Group Co., Ltd 170,000,000.00
Total 170,000,000.00
Payables:
Beijing Guchuan Food Co. Ltd. 61,600.00
Beijing Er Shang Moqi Zhonghong Food Co. Ltd.. 204.00
Beijing Er Shang Da Hong Men Meat Food Co. Ltd. 11,176.11
Beijing Wuhuan Shuntong Supply Chain Management Co.
10,495.41
Ltd.
Total 61,804.00 21,671.52
Advance receipts:
Beijing Jingliang E-Commerce Limited 153,301.88
Beijing Wuhuan Shuntong Supply Chain Management Co.
7,524.00
Ltd.
Total 160,825.88
Other payables:
Beijing Grain Group Co. Ltd. 1,137,030.30 1,137,030.30
Beijing Jingliang E-commerce Co., Ltd. 431,539.20 444,268.80
Beijing Dahongmen Oil Plant 1,055,100.00
Beijing nanyuan plant oil factory 107,596.56 50,360.92
Beijing Guchuan Food Co. Ltd. 260,834.20
Total 2,992,100.26 1,631,660.02
7. Related-party Commitments
The Company has no related-party commitments this year.
XII. Share based payment
There are no share based payments incurred this year for the company.
XIII. Commitments and Contingencies
As of June 30, 2020, the Company has no commitments and contingencies to disclose.
XIV. Events after the Balance Sheet Date
1. Major Non-Adjusting Events
As of the financial report date, the company has no important non-adjustment matters that need to be disclosed.
XV. Other Important Matters
1. Annuity Plan
On November 18, 2013, the controlling shareholder of Beijing Grain Group Co., Ltd. (hereinafter referred to as
"BGG") received Reply of the State-owned Assets Supervision and Administration Commission of the People's
110
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Government of Beijing Municipality to the Establishment of Enterprise Annuity Plan of Beijing Grain Group Co., Ltd.
(Beijing State-owned Asset [2013] No. 224), providing that BGG's Request for Reporting of Enterprise Annuity (BGG
Enterprise [2013] No. 258) complies with the requirements of Provisional Measures for Trial Implementation of
Enterprise Annuity (Decree No. 20 of the Ministry of Labor and Social Security) and Guiding Opinions for the Trial
Implementation of Enterprise Annuity System by State-owned Enterprises in Beijing (Beijing State-owned Asset Audit
[2006] No. 77) and approving that the supplementary old-age insurance and various commercial insurance established
by the Company before the implementation of the annuity plan should be terminated automatically and all employees
who have participated in the annuity plan will no longer enjoy social benefits outside of overall planning after
retirement.
On November 20, 2013,BGG received Reply to the Filing of Annuity Plan of Beijing Grain Group Co., Ltd.
(Xicheng Human & Social [2013] No. 71) from Beijing Xicheng District Human Resources and Social Security Bureau,
requesting that BGG should strictly implement payment scope and standards and relevant democratic procedures
stipulated in the plan and actively cooperate in supervision and inspection of relevant departments after filing.
On March 14, 2014, the Company obtained the Certificate of Enterprise Annuity Participation Plan from Ping An
Pension Insurance Co., Ltd. The details on the Certificate is listed as follows:
The Company's basic information: Name of Enterprise: Beijing Jingliang Food Co., Ltd.; Enterprise Annuity No.:
C0156482005; the Time of Participation Plan: November 18, 2013; Effective Time of the Plan: March 13, 2014; Plan
No. of the Superior Enterprise: C0156482000; Name of the Superior Enterprise: Beijing Jingliang Food Co., Ltd.
Basic information of Annuity Plan: Name of the Plan: Ping An-CITIC Splendid Life Enterprise Annuity Plan;
Trustee and Account Manager: Ping An Pension Insurance Co., Ltd; Trustee: CHINA CITIC BANK CORPORATION
LIMITED; Annuity Plan Registration No.: 99JH20120041; Annuity Plan No.: P0807; Plan Type: Collective Plan.
Portfolio: Portfolio Code: 9155; Name of Portfolio: Ping An-CITIC Splendid Life Bond Enhanced Portfolio;
Investment Proportion: 100%; Investment Manager: CITIC Securities Co., Ltd.
2 Information on Divisions
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing, oil and grease and so on according to its internal
organizational structure, management requirements and internal reporting system. The Company's management
regularly evaluates the operating results of these divisions to determine the allocation of resources to them and evaluate
their performance. The information reported by divisions should be disclosed according to the accounting policies and
measurement standards adopted by such divisions when they are reporting to the management. These measurement
bases should be consistent with the accounting and measurement bases for preparation of financial statements.
(2) Reporting of the financial information on divisions
Offset Among
Item Oil & Grease Food Processing Other Total
Divisions
Operating income 3,493,823,723.60 448,991,302.59 12,636,556.69 -204,678,515.25 3,750,773,067.63
Operating costs 3,233,319,539.16 306,213,197.39 4,937,017.00 -188,268,495.49 3,356,201,258.06
Operating profit 63,302,227.40 79,871,192.87 -15,618,391.87 -7,055,928.85 120,499,099.55
Net profit attributable to
56,519,781.89 60,965,120.07 -16,614,390.26 -27,107,616.51 73,762,895.19
parent company
Total assets 3,055,453,601.15 1,009,966,756.63 6,284,258,452.23 -5,015,179,852.33 5,334,498,957.68
Total liabilities 1,698,388,631.09 142,723,285.44 1,659,994,917.10 -1,138,735,649.39 2,362,371,184.24
XVI. Notes to Main Financial Statement Items of Parent Company
1. Accounts Receivable
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year
Among them: Within 3 months
4-12 months
1 to 2 years
2 to 3 years 3,000.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Aging Ending Balance
3 to 4 years 51,420.00
4 to 5 years 72,000.00
More than 5 years
Sub total 126,420.00
minus: provision for bad debts 83,910.00
Total 42,510.00
（2）present according to the method of provision for bad debt
Ending Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Receivables with separate provision for bad
debts
Accounts Receivable for Bad Debt
Provision Based on Portfolio
Portfolio 1 - Age-based accounts receivable 126,420.00 83,910.00 42,510.00
Portfolio 2 - Related Party Accounts
Receivable
Portfolio Total 126,420.00 100.00 83,910.00 66.37 42,510.00
Total 126,420.00 —— 83,910.00 —— 42,510.00
（Continued）
Beginning Balanc
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Receivables with significant individual
amounts and separate provision for bad
debts
Accounts Receivable for Bad Debt
Provision Based on Credit Risk
Characteristic Portfolio
Portfolio 1 - Age-based accounts receivable 126,420.00 83,910.00 42,510.00
Portfolio 2 - Related Party Accounts
Receivable
Portfolio Total 126,420.00 100.00 83,910.00 66.37 42,510.00
Receivables with minor amounts but
separate provision for bad debts
Total 126,420.00 —— 83,910.00 —— 42,510.00
A. In portfolio, Accounts Receivable with provision for bad debts is calculated by age analysis method
Ending Balance
Aging
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Within 1 Year
112
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Ending Balance
Aging
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Among them: Within 3 months 0
4-12 months 2
1 to 2 years 5
2 to 3 years 3,000.00 600.00 20
3 to 4 years 51,420.00 25,710.00 50
4 to 5 years 72,000.00 57,600.00 80
More than 5 years 100
Total 126,420.00 83,910.00 ——
（Continued）
Beginning Balanc
Aging
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Within 1 Year
Among them: Within 3 months 0
4-12 months 2
1 to 2 years 5
2 to 3 years 3,000.00 600.00 20
3 to 4 years 51,420.00 25,710.00 50
4 to 5 years 72,000.00 57,600.00 80
More than 5 years 100
Total 126,420.00 83,910.00 -----
（3） Details of bad debt provision
The amount changed for the period
Items Beginning Balance Ending Balance
addition Write-off Other deduct
Provision for bad
83,910.00 83,910.00
debt
Total 83,910.00 83,910.00
（4）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
total ending balance Ratio of the total ending
Ending Balance of Bad
Debtors of accounts balance of accounts
Debt Provision
receivable receivable(%)
Hainan pearl river pipe pile co. LTD 108,000.00 85.43 74,700.00
Ceibs agricultural Qinhuangdao development
18,420.00 14.57 9,210.00
co. LTD
Total 126,420.00 100.00 83,910.00
2. Other Receivables
Item Ending Balance Beginning Balance
113
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Item Ending Balance Beginning Balance
Interest receivable
Dividends receivable
Other receivables 12,307,166.41 12,612,756.48
Total 12,307,166.41 12,612,756.48
（1）Other Receivables
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year 109,271.85
Among them: Within 3 months 4,000.00
4-12 months 105,271.85
1 to 2 years 12,200,000.00
2 to 3 years
3 to 4 years
4 to 5 years
More than 5 years 50,000.00
Sub total 12,359,271.85
minus: provision for bad debts 52,105.44
Total 12,307,166.41
B. Classification by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Transactions between related parties 12,200,000.00 12,200,000.00
Pretty cash (for employees, departments) 105,271.85 105,271.85
Receivables for employees 18,590.07
Other accounts 54,000.00 341,000.00
Sub total 12,359,271.85 12,664,861.92
minus: provision for bad debts 52,105.44 52,105.44
Total 12,307,166.41 12,612,756.48
C. Details about bad debt provision
Stage 1 Stage 2 Stage 3
Expected credit loss
Provision for bad debt Expected credit loss for Total
Expected credit loss for the whole period
the whole period (with
in the next 12 months (no credit
credit impairment)
impairment)
Amount on 1st January 2020 2,105.44 50,000.00 52,105.44
Carrying amount of other
receivable on 1st January 2020
that in this period:
——Get into Stage 2
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Stage 1 Stage 2 Stage 3
Expected credit loss
Provision for bad debt Expected credit loss for Total
Expected credit loss for the whole period
the whole period (with
in the next 12 months (no credit
credit impairment)
impairment)
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
Provision for the period
Reverse for the period
Transfer for the period
Write off for the period
Other deduct
Carrying amount at the end of
2,105.44 50,000.00 52,105.44
the period
3. Long-term Equity Investment
(1) Classification of long-term equity investment
Ending Balance Beginning Balance
Item Provision Provision
Book Balance for Book Value Book Balance for Book Value
Impairment Impairment
Investment in subsidiaries 2,626,437,846.24 0.00 2,626,437,846.24 2,377,420,527.10 2,377,420,527.10
Total 2,626,437,846.24 0.00 2,626,437,846.24 2,377,420,527.10 2,377,420,527.10
(2) Investment in subsidiaries
Current Ending Balance
Beginning Current Current Ending
Invested Entity Provision for of Provision for
Balance Increase Decrease Balance
Impairment Impairment
Beijing Jingliang Food Co., Ltd. 2,336,639,964.05 249,017,319.14 2,585,657,283.19
Jingliang Rural Complex
Construction and Operations 15,280,563.05 15,280,563.05
(Xinyi) Co., Ltd.
Jingliang (Caofeidian)
Agricultural Development Co., 25,500,000.00 25,500,000.00
Ltd.
Total 2,377,420,527.10 249,017,319.14 2,626,437,846.24
4. Operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Other Businesses 376,609.17
Total 376,609.17
XVII. Additional Information
1. Statement of Current Non-recurring Gains and Losses
Item Amount Description
Profit and loss from disposal of non-current assets
Government subsidies included into the current profits and losses (closely related to the
Company's businesses, except for those that should be enjoyed in accordance with national 607,800.07
unified standard quota or fixed quantity)
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2020
Item Amount Description
Funds occupation fees charged to non-financial enterprises which are included in current
profits and losses
Profit or loss arising from fair value changes due to trading financial assets and trading
financial liabilities, and investment income from disposal of trading financial assets, trading 7,957,284.73
financial liabilities and available-for-sale financial assets, except for the effective hedging
business related to the Company's normal business activities.
Other non-operating income and expenditure other than the above items -729,231.95
Subtotal 7,835,852.85
Change in income tax -1,954,161.27
Change in minority shareholder's equity (after tax) -113,986.34
Total 5,767,705.24
Note: For the figures in the non-recurring profit and loss items, “+” indicates profit and income, and “-” indicates loss
or expenditure.
2. Return on Equity and Earnings per Share
Weighted Return on EPS
Current Profit Average Equity (ROAE)
Basic EPS Diluted EPS
Net profit attributable to the Company's common shareholders 3.02 0.11 0.11
Net profit attributable to common shareholders after deduction
of non-recurring gains and losses 2.79 0.10 0.10
Legal Representative:LI Shaoling Chief Accounting Officer:Guan Ying Leader of the Accounting Body:Liu Quanli
Hainan Jingliang Holdings Co., Ltd.
August 22, 2020
116
