Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2020-065
HAINAN JINGLIANG HOLDINGS CO., LTD.
THIRD QUARTERLY REPORT 2020 (SUMMARY)
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee that the contents of this Report and its
summary are true, accurate and complete and free of any misrepresentations, misleading
statements or material omissions, and collectively and individually accept legal responsibility
for such contents.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Li Shaoling, the Company’s legal representative, Guan Ying, the Company’s head for
financial affairs, and Liu Quanli, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are
truthful, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2020 31 December 2019 Change (%)
Total assets (RMB) 6,057,365,761.06 5,231,266,600.19 15.79%
Equity attributable to the listed
2,645,832,412.43 2,406,039,283.87 9.97%
company’s shareholders (RMB)
Q3 2020 YoY change (%) Q1-Q3 2020 YoY change (%)
Operating revenue (RMB) 1,928,342,701.75 5.67% 5,679,115,769.38 11.18%
Net profit attributable to the listed
40,894,930.95 20.84% 114,657,826.14 34.34%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 32,040,014.29 13.31% 100,035,204.24 44.00%
exceptional gains and losses (RMB)
Net cash generated from/used in
-273,955,632.37 -221.14% -86,859,811.61 -119.44%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.06 20.00% 0.16 33.33%
Diluted earnings per share (RMB/share) 0.06 20.00% 0.16 33.33%
Weighted average return on equity (%) 1.56% 5.41% 4.65% 26.02%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2020 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
-30,020.88
allowance write-offs)
Government grants through profit or loss (exclusive of government grants
given in the Company’s ordinary course of business at fixed quotas or 7,543,633.15
amounts as per the government’s uniform standards)
Gain or loss on fair-value changes on held-for-trading and derivative
financial assets and liabilities & income from disposal of held-for-trading and
13,538,448.19
derivative financial assets and liabilities and other debt investments
(exclusive of the effective portion of hedges that arise in the Company’s
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
ordinary course of business)
Non-operating income and expense other than the above -727,186.58
Less: Income tax effects 5,293,637.02
Non-controlling interests effects (net of tax) 408,614.96
Total 14,622,621.90 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of the
Reporting Period
1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preference
Number of ordinary shareholders 79,532 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Nature of Shareholding Restricted Shares in pledge or frozen
Name of shareholder Total shares held
shareholder percentage shares held Status Shares
BEIJING GRAIN GROUP State-owned
39.68% 288,439,561 164,877,598
CO., LTD. corporation
BEIJING STATE-OWNED
State-owned
CAPITAL OPERATION AND 6.67% 48,510,460 48,510,460
corporation
MANAGEMENT CENTER
Domestic
WANG YUECHENG 5.66% 41,159,887 41,159,887
individual
Foreign
LI SHERYN ZHAN MING 1.23% 8,941,300 0
individual
CHINA DEVELOPMENT State-owned
0.94% 6,849,384 0
BANK CAPITAL CO., LTD. corporation
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT
FUND MANAGEMENT
Other 0.51% 3,684,503 0
CO., LTD.—GOLD
BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
MEI JIANYING Domestic 0.36% 2,604,203 0
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
individual
Domestic
ZHANG XIAOXIA 0.27% 1,949,250 0
individual
Domestic
WANG XIAOXING 0.24% 1,748,400 0
individual
Domestic
ZHU PENG 0.22% 1,577,900 0
individual
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
RMB-denominate
BEIJING GRAIN GROUP CO., LTD. 123,561,963 123,561,963
d ordinary share
Domestically
LI SHERYN ZHAN MING 8,941,300 listed foreign 8,941,300
share
CHINA DEVELOPMENT BANK CAPITAL RMB-denominate
6,849,384 6,849,384
CO., LTD. d ordinary share
GOLD BUFFALO RUNYING (TIANJIN)
EQUITY INVESTMENT FUND RMB-denominate
MANAGEMENT CO., LTD.—GOLD 3,684,503 3,684,503
BUFFALO RUNYING (TIANJIN) EQUITY d ordinary share
INVESTMENT FUND (L.P.)
RMB-denominate
MEI JIANYING 2,604,203 2,604,203
d ordinary share
Domestically
ZHANG XIAOXIA 1,949,250 listed foreign 1,949,250
share
RMB-denominate
WANG XIAOXING 1,748,400 1,748,400
d ordinary share
RMB-denominate
ZHU PENG 1,577,900 1,577,900
d ordinary share
Domestically
ORIENT SECURITIES (HONG KONG)
1,354,500 listed foreign 1,354,500
LIMITED
share
FOSHAN SHUNDE XIHUA RMB-denominate
1,144,000 1,144,000
ELECTRONICS CO., LTD. d ordinary share
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 controlling
Related or acting-in-concert parties among the shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy
shareholders above General Manager of the Company. Apart from the aforesaid, the Company does not
know whether there are any other related parties or acting-in-concert parties among
the top 10 shareholders.
Top 10 shareholders engaged in securities ① Shareholder Wang Xiaoxing held 1,748,400 shares in the Company through his
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
margin trading (if any) account of collateral securities for margin trading in Soochow Securities Co., Ltd.
② Shareholder Zhu Peng held 1,315,200 shares in the Company through his
account of collateral securities for margin trading in China Merchants Securities
Co., Ltd.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Derivative financial assets increased primarily driven by an increase in deposits for futures contracts in the
current period.
2. Prepayments increased primarily driven by an increase in prepayments to suppliers due to new soy bean
purchases for the oils and oilseeds business in the current period.
3. Other non-current assets increased primarily driven by new bank deposits with a term of over one year in the
current period.
4. Short-term borrowings increased primarily driven by bank loan raised for new soy bean purchases for the oils
and oilseeds business in the current period.
5. R&D expense increased primarily driven by the reclassification of certain R&D personnel’s salaries from
administrative expense to R&D expense in the current period.
6. Return on investment increased primarily driven by increases in return on joint venture investments and in
wealth management income.
7. Gain on fair value changes decreased primarily driven by changes in the value of futures contracts.
8. Net profit increased primarily driven by year-on-year increases in both production and sales volume in the oils
pressing business due to a strong market in the current period, boosting revenue and gross profit.
9. Net cash generated from operating activities decreased primarily driven by a year-on-year increase in soy bean
purchases for the oils pressing business in the current period.
10. Net cash generated from financing activities increased primarily driven by bank loan raised for new soy bean
purchases for the oils and oilseeds business in the current period.
II Progress, Influence and Solutions in respect of Significant Events
□ Applicable √ Not applicable
Progress of any share repurchase:
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Relevant Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Financial Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/los
Cumulat
s on
Account ive
fair-valu Purchas Sold in Gain/los
Type of Code of Name of Initial ing Opening fair-valu Closing
e ed in the the s in the Account Funding
securitie securitie securitie investm measure carrying e carrying
changes current current current ing title source
s s s ent cost ment amount changes amount
in the period period period
method through
current
equity
period
Cost 289,900 289,900 30,767. Self-fun
Other 204001 GC001 0.00 Other
method ,000.00 ,000.00 16 ded
Cost 40,000, 40,000, 34,619. Self-fun
Other 204003 GC003 0.00 Other
method 000.00 000.00 73 ded
Cost 50,000, 50,000, Self-fun
Other 204007 GC007 0.00 0.00 Other
method 000.00 000.00 ded
379,900 329,900 65,386. 50,000,
Total 0.00 -- 0.00 0.00 0.00 -- --
,000.00 ,000.00 89 000.00
Disclosure date of the
announcement on the
7 March 2020
Board’s approval of
securities investments
Disclosure date of the
announcement on the
general meeting’s approval
of securities investments (if
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
any)
2. Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Closing investment Actual
Closing
Type of derivative financial amount as % of the gain/loss in
Start date End date investment
instrument Company’s closing the current
amount
net assets period
Agricultural commodity
1 January 2020 30 September 2020 27,395.28 10.35% 2,756.59
futures
Forex forwards 1 January 2020 30 September 2020 42,364.52 16.01% -1,922.48
Forex forwards 14 September 2020 30 November 2020 802.8 0.30% 0
Forex forwards 16 September 2020 31 December 2020 858 0.32% 0
Forex forwards 17 September 2020 31 December 2020 132 0.05% 0
Forex forwards 25 September 2020 31 December 2020 896.4 0.34% 0
Total -- -- 72,449 27.37% 834.11
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of the 7 March 2020
announcement on the Board’s
approval of investments in
28 March 2020
derivative financial
instruments (if any)
Disclosure date of the
announcement on the general
meeting’s approval of 18 April 2020
investments in derivative
financial instruments (if any)
The Company’s conduction of hedging business is not aimed at speculation, but mainly to
Risk analysis and control
effectively avoid the impact of raw material price fluctuation on the Company. However, there will
measures in respect of
be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures
derivative investments held in
market changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be
the Reporting Period
correspondingly brought because the futures trading adopts margin and marking-to-market system;
(including but not limited to
3. Internal control risk: there may be risks due to imperfect internal control system for the high
market risk, liquidity risk,
expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to
credit risk, operational risk,
incomplete computer systems. The Company adopts following risk control measures: 1. Matching
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
legal risk, etc.) the hedging business with the Company’s production and operation so as to maximally reduce the
price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business,
strictly control the hedging fund scale and reasonably plan and use margins; 3. Management System
for Commodity Futures Trading is formulated based on actual situation of the Company and
pursuant to governing stipulations of Guidelines for Standard Operation of Companies Listed in
Shenzhen Stock Exchange which have made clearly stipulations about the amount, variety scope,
approval authority, internal approval procedures, responsible departments and persons, information
isolation measures, internal risk report and related solution process, information disclosure, etc.
regarding hedging business. The Company will strictly control all sectors in accordance with
Management System for Commodity Futures Trading; 4. Establishing qualified systems for
transaction, communication and information services so as to guarantee the normal operation of the
transaction system and smooth proceeding of transactions. When a wrong order occurs,
corresponding measures should be timely taken to reduce losses.
Changes in market prices or
fair value of derivative
investments in the Reporting The value of the Company’s future contracts changed according to the contract prices declared by
Period (fair value analysis the future exchange, which were broadly representative. And the fair value of the Company’s future
should include measurement contracts was executed in strict compliance with the future exchange’s settlement methods.
method and related
assumptions and parameters)
Significant changes in
accounting policies and
specific accounting principles
adopted for derivative None
investments in the Reporting
Period compared to the last
reporting period
1. Opinion of independent directors on the Proposal on 2020 Futures Hedging Plan of Jingliang
(Tianjin) Grain and Oil Industry Co., Ltd. and Beijing Jingliang Oils Co., Ltd.: after check, the
Company carried out the business of futures hedging based on normal production and management,
relying on specific business. Under the premise of ensuring normal production and management, the
Company used futures hedging tools to avoid the adverse impacts on the Company’s operation from
the large price fluctuation of raw materials and products, which is not detrimental to the interests of
the Company and all other shareholders, especially minority shareholders. At the same time, the
Opinion of independent
Company formulated relevant systems, and specific operating instructions for the business of
directors on derivative
futures hedging through strengthening internal control and implementing risk prevention measures.
investments and risk control
It is agreed that the Company and its subsidiaries will continue to conduct futures hedging business
according to the relevant regulations.
2. Opinion of independent directors on the Proposal on Conducting Foreign Exchange Derivatives
Trading Business by the Company and Majority-owned Subsidiaries: after check, the relevant
decision-making procedures for the Company and its majority-owned subsidiaries to conduct
foreign exchange derivatives trading business are in compliance with relevant national laws,
regulations and the governing provisions of the Articles of Association after verification. Based on
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
normal production and operation, the Company uses foreign exchange derivatives instruments to
reduce exchange rate risks and finance costs, and control business risks. There is no harm to the
interests of the Company and all other shareholders, especially minority shareholders. It is agreed
that the Company and its majority-owned subsidiaries will conduct foreign exchange derivative
trading business within the consideration amount, and submit to the general meeting for
deliberation.
V Progress of Projects Financed with Raised Funds
√ Applicable □ Not applicable
The Company’s projects financed with raised funds are the intermediary agency fee and transaction tax and fee
project, the technological R&D centre project, and the channel and brand development project. The intermediary
agency fee and transaction tax and fee project has been completed, while the other two projects are in a stage of
adjustment.
VI 2020 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as
explanation of why:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Bank’s wealth
Self-funded 35,330 8,830 0
management product
Broker’s wealth
Idle raised funds 38,700 28,000 0
management product
Total 74,030 36,830 0
High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
no principal protection:
√ Applicable □ Not applicable
Unit: RMB’0,000
Summ
Type Recov
ary
of Actual ery of Throu
Refere Any and
wealt Invest Expect gain/lo the Impair gh
Way nce plan index
Type h Fundi ment ed ss in gain/lo ment prescri
Princi Start End of annual for to
Trustee of mana ng with return the ss in allowa bed
pal date date payba ized further more
trustee geme source princi (if Report the nce (if proced
ck rate of transa infor
nt pal any) ing Report any) ures
return ctions matio
produ Period ing or not
n (if
ct Period
any)
Anno
Payba uncem
ck of ent
princi No.
China Inco 22 As
Idle 19 pal 2020-
Securitie me Februa contra Unred
Broker 28,000 raised Augus with 2.95% 0 0 Yes Yes 049
s Co., certifi ry ctually eemed
funds t 2020 interes on
Ltd. cate 2020 agreed
t upon www.
maturi cninfo
ty .com.c
n
Total 28,000 -- -- -- -- -- -- 0 0 -- -- -- --
Wealth management transactions with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020 (Summary)
XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd.
24 October 2020
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