HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2021
August 2021
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2021
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
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
□ Yes √ No
H1 2021 H1 2020 Change (%)
Operating revenue (RMB) 5,328,246,835.83 3,750,773,067.63 42.06%
Net profit attributable to the listed
88,328,197.91 73,762,895.19 19.75%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 83,273,337.40 67,995,189.95 22.47%
gains and losses (RMB)
Net cash generated from/used in operating
277,850,445.45 187,095,820.76 48.51%
activities (RMB)
Basic earnings per share (RMB/share) 0.12 0.11 9.09%
Diluted earnings per share (RMB/share) 0.12 0.11 9.09%
Weighted average return on equity (%) 3.21% 3.02% 0.19%
30 June 2021 31 December 2020 Change (%)
Total assets (RMB) 6,143,767,415.63 5,695,504,493.73 7.87%
Equity attributable to the listed company’s
2,798,819,294.02 2,710,571,543.53 3.26%
shareholders (RMB)
3. Shareholders and Their Shares at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders with
64,713 0
shareholders resumed voting rights (if
any)
Top 10 shareholders
Pledged, marked or
Nature of Shareholding Number of frozen shares
Name of shareholder Restricted shares
shareholder percentage shares
Status Shares
BEIJING GRAIN GROUP State-owned
39.68% 288,439,561 0
CO., LTD. legal person
BEIJING STATE-OWNED
State-owned
CAPITAL OPERATION AND 6.67% 48,510,460 0
legal person
MANAGEMENT CENTER
Domestic
WANG YUECHENG 5.66% 41,159,887 41,159,887
natural person
Foreign natural
LI SHERYN ZHAN MING 1.23% 8,932,700 0
person
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT
FUND MANAGEMENT
Other 0.40% 2,889,803 0
CO., LTD.—GOLD
BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
Domestic
MEI JIANYING 0.36% 2,604,203 0
natural person
Domestic
ZHANG XIAOXIA 0.27% 1,949,250 0
natural person
Domestic
WANG XIAOXING 0.23% 1,691,200 0
natural person
Domestic
TAN WENQIONG 0.21% 1,550,500 0
natural person
ORIENT SECURITIES Foreign legal 0.18% 1,330,400 0
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(HONG KONG) LIMITED 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 controlling
Connected or acting-in-concert parties among shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy
shareholders above 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 1,691,200 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. Outstanding Bonds at the Date when this Report Was Authorized for Issue
□ Applicable √ Not applicable
Part III Significant Events
2021 marks the commencement of China’s “14th Five-Year Plan”. Against that background, the Company closely
followed the general principle of seeking progress while keeping performance stable, seized market opportunities,
and adhered to the right path of innovation. As a result, the Company saw sound production and operation, effective
anti-pandemic actions, and a stabilizing and improving development momentum. For the Reporting Period, the
Company recorded operating revenue of RMB5.328 billion, up 42.06% year on year; a net profit attributable to its
shareholders of RMB88.3282 million, up 19.75% year on year; and earnings per share of RMB0.12/share, up 9.09%
year on year.
No significant changes occurred to the Company’s operations in the Reporting Period. For further information, see
the full Semi-annual Report 2021.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Part IV. Financial statements (Unaudited)）
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Unit: Yuan
Program June 30th, 2021 December 31st, 2020
Current Assets:
Monetary Capital 779,954,595.57 335,466,169.61
Deposit Reservation for Balance
Lending Funds
Transactional Monetary Assets 363,000,000.00 63,478,071.73
Derivative Financial Assets 75,597,717.39
Notes Receivable 456,565.85
Account Receivable 96,128,277.06 92,245,667.60
Receivables Financing
Advance Payment 580,667,503.17 282,343,218.05
Receivable Premium
Reinsurance Accounts Receivable
Provision of Cession Receivable
Other Receivables 88,750,805.46 541,905,656.97
Including: The Interest Receivable
Dividend Receivable
Redemptory Monetary Capital for
Sale
Inventory 1,599,520,851.27 1,225,083,742.26
Contract Assets
Holding Assets to be Sold.
Non-Current Assets Expiring within
One Year
Other Current Assets 232,671,032.39 845,450,678.36
Total Current Assets 3,816,290,782.31 3,386,429,770.43
Non-current Assets:
offer loans and make advance
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 219,058,997.13 217,762,487.79
Investment in other equity 20,000,000.00 20,000,000.00
instruments
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Other non-current financial assets
Investment Property 21,737,164.27 22,560,212.50
Fixed Assets 1,088,582,627.48 1,131,143,854.07
Construction in progress 35,262,660.08 28,458,413.67
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset 2,472,838.11
Intangible Assets 346,717,866.88 354,139,335.32
Development Expenditure
Goodwill 191,394,422.51 191,394,422.51
Long-term Unamortized Expenses 20,319,161.45 20,529,601.50
Deferred Tax Asset 15,178,448.67 3,346,814.27
Other Non-current Assets 366,752,446.74 319,739,581.67
Non-current Assets in Total 2,327,476,633.32 2,309,074,723.30
Total Assets 6,143,767,415.63 5,695,504,493.73
Current Liability:
Short-term Borrowing 1,722,856,775.38 1,497,414,079.05
Borrowing from the Central Bank
Borrowing Funds
Transactional Monetary Liabilities
Derivative Financial Liabilities 371,219,136.84
Notes Payable
Accounts Payable 134,164,851.58 75,384,075.39
Account Collected in Advance 1,462,678.11 1,087,874.02
Contract Liabilities 533,807,058.54 346,874,260.90
Financial Assets Sold for Repurchase
Deposits from Customers and
Interbank
Receivings from Vicariously Traded
Securities
Receivings from Vicariously Sold
Securities
Employee Pay Payable 13,709,981.41 33,345,136.94
Tax Payable 65,516,363.75 50,884,214.64
Other payables 113,823,953.59 72,292,881.24
Including: The Payable Interest 21,082,795.47 21,082,795.47
Dividends Payable 11,013,302.88 11,013,302.88
Handling Charges and Commissions
Payable
Dividend Payable for Reinsurance
Holding Liabilities to Be Sold
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Non-Current Liabilities Expiring
within One Year
Other current liabilities 132,051,254.57 8,319,696.79
Total Current Liabilities 2,717,392,916.93 2,456,821,355.81
Non-Current Liabilities:
Provision for Insurance Contracts
Long-Term Loan 71,000,000.00
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation 2,425,606.75
Long-term account payable
Long-term employee pay payable 5,677,134.00 5,677,134.00
Anticipation liabilities
Deferred Revenue 67,770,476.00 68,716,699.34
Deferred Income Tax Liabilities 81,969,420.28 65,115,801.22
Other Non-current Liabilities
Total Non-current Liabilities 228,842,637.03 139,509,634.56
Total Liabilities 2,946,235,553.96 2,596,330,990.37
Owners Equity:
Capital stock 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 1,674,828,350.95 1,674,828,350.95
Minus: Treasury Stock
Other Comprehensive Income -443,706.08 -363,258.66
Reasonable Reserve
Surplus reserves 122,122,436.98 122,122,436.98
Generic Risk Reserve
Undistributed profit 275,361,961.17 187,033,763.26
Total equity attributable to the 2,798,819,294.02 2,710,571,543.53
shareholders of parent Company
Minority Equity 398,712,567.65 388,601,959.83
Total owners' equity 3,197,531,861.67 3,099,173,503.36
Total liabilities and owner's equity 6,143,767,415.63 5,695,504,493.73
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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, 2021 December 31st, 2020
Current Assets:
Monetary Capital 732,956.01 1,523,322.79
Transactional Monetary Assets
Derivative Financial Assets
Notes Receivable
Account Receivable 11,784.00 11,784.00
Receivables Financing
Advance Payment 416,276.56 423,679.12
Other Receivables 100,008.26 103,341.26
Including: The Interest Receivable
Dividend Receivable
Inventory 3,775,954.85 3,775,954.85
Contract Assets
Holding Assets to be Sold.
Non-Current Assets Expiring within
One Year
Other Current Assets 2,458,717.81 2,445,772.47
Total Current Assets 7,495,697.49 8,283,854.49
Non-current Assets:
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 2,626,437,846.24 2,626,437,846.24
Investment in other equity 20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment Property 6,051,420.47 6,222,001.73
Fixed Assets 2,381,625.62 2,809,083.51
Construction in progress
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset
Intangible Assets 136,855.34 209,185.10
Development Expenditure
Goodwill
Long-term Unamortized Expenses
Deferred Tax Asset
Other Non-current Assets
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Non-current Assets in Total 2,655,007,747.67 2,655,678,116.58
Total Assets 2,662,503,445.16 2,663,961,971.07
Current Liability:
Short-term Borrowing
Transactional Monetary Liabilities
Derivative Financial Liabilities
Notes Payable
Accounts Payable
Account Collected in Advance 38,896.41 38,896.41
Contract Liabilities
Employee Pay Payable 188,359.24 341,902.14
Tax Payable 960,020.24 1,037,881.62
Other payables 310,664,277.93 309,067,618.99
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
Other current liabilities
Total Current Liabilities 311,851,553.82 310,486,299.16
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 311,851,553.82 310,486,299.16
Owners Equity:
Capital stock 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 2,379,144,900.84 2,379,144,900.84
Minus: Treasury Stock
Other Comprehensive Income
Reasonable Reserve
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Surplus reserves 109,487,064.39 109,487,064.39
Undistributed profit -864,930,324.89 -862,106,544.32
Total owners' equity 2,350,651,891.34 2,353,475,671.91
Total liabilities and owner's equity 2,662,503,445.16 2,663,961,971.07
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
3. Consolidated Income Statement
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Gross Revenue 5,328,246,835.83 3,750,773,067.63
Including: operating income 5,328,246,835.83 3,750,773,067.63
Interest Income
Earned Premium
Handling charges and commissions
income
II. Total Operating Cost 5,293,177,718.70 3,575,140,175.66
Operating costs 5,099,544,988.41 3,356,201,258.06
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 11,363,903.89 8,651,111.37
Selling Expenses 76,677,576.52 106,641,119.14
Administrative Expenses 84,799,700.54 78,032,286.29
Research and Development 5,170,755.15 2,803,717.02
Expenditure
Financial Expenses 15,620,794.19 22,810,683.78
Including: The Interest Expense 19,854,113.81 16,975,042.06
Interest Income 5,408,203.94 5,373,488.21
plus: other income 6,426,061.54 5,046,948.84
Investment income ("-" refers to 31,246,898.08 16,695,925.99
losses)
Of which: Income from investment 25,976,509.34 6,947,778.68
in joint ventures
The financial assets measured at
amortized cost terminates the recognition
of income ( "-" refers to losses)
Exchange Earning ( "-" refers to
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
losses)
Net Open Hedging Income ( "-"
refers to losses)
Income of Fair Value Changes ( "-" 61,697,730.47 -76,876,667.25
refers to losses)
Credit Loss ( "-" refers to losses)
Assets Impairment Loss ( "-" refers
to losses)
Assets Disposal Income ( "-" refers -58,685.83
to losses)
III. Operating Profit ( "-" refers to losses) 134,381,121.39 120,499,099.55
plus: Non-operating income 1,279,113.80 689,439.82
minus: Non-operating expenses 262,695.32 1,418,671.77
IV. Total Profit ( "-" refers to total losses) 135,397,539.87 119,769,867.60
minus: income tax expense 36,958,734.14 24,461,831.86
V. Net Profit ( "-" refers to net losses) 98,438,805.73 95,308,035.74
i. Classified Based on Business
Continuity
1. Net income from continuing 98,438,805.73 95,308,035.74
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 88,328,197.91 73,762,895.19
shareholders of parent Company
2. Minority Interest Income 10,110,607.82 21,545,140.55
VI. Net of Tax of Other Comprehensive -80,447.42 106,731.84
Income
Net of tax of other comprehensive -80,447.42 106,731.84
income attributed to shareholders of
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 -80,447.42 106,731.84
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.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 -80,447.42 106,731.84
Foreign Currency Financial
Statements
7. Others
Net of tax of other comprehensive
income attributed to minority shareholder
VII. Total Comprehensive Income 98,358,358.31 95,414,767.58
Total comprehensive income attributed 88,247,750.49 73,869,627.03
to shareholders of parent Company
Total comprehensive income attributed 10,110,607.82 21,545,140.55
to minority shareholder
VIII. Earnings Per Share:
i. Basic Earnings Per Share 0.12 0.11
ii. Diluted Earnings Per Share 0.12 0.11
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
4. Income Statement of Parent Company
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Operating Income 295,530.28 376,609.17
minus: operating costs 170,581.26 0.00
Tax and Surcharges 98,713.86 2,700.00
Selling Expenses
Administrative Expenses 2,825,749.10 13,524,055.12
Research and Development
Expenditure
Financial Expenses 1,108.86 -5,045.16
Of which: The Interest Expense
Interest Income 1,190.61 8,250.44
plus: other income 37,431.93 50,313.02
Investment income ("-" refers -28,691.03 398,338.36
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)
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Credit Loss ( "-" refers to
losses)
Assets Impairment Loss ( "-"
refers to losses)
Assets Disposal Income ( "-" -31,898.67
refers to losses)
II. Operating Profit ( "-" refers to -2,823,780.57 -12,696,449.41
losses)
plus: Non-operating income 4,001.44
minus: Non-operating expenses 1,000,000.00
III. Total Profit ( "-" refers to total -2,823,780.57 -13,692,447.97
losses)
minus: income tax expense
IV. Net Profit ( "-" refers to net losses) -2,823,780.57 -13,692,447.97
i. Net income from continuing -2,823,780.57 -13,692,447.97
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
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 -2,823,780.57 -13,692,447.97
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 2021
5. Consolidated Statement of Cash Flow
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Cash flow from operating activities:
Cash received for selling goods and providing
5,952,771,752.73 3,900,040,688.18
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 12,662,140.42 6,282,179.39
Other Cash Received Related to Business
1,296,559,208.28 488,634,210.14
Activities
Subtotal of Cash flow of Operating Activities 7,261,993,101.43 4,394,957,077.71
Cash for Purchase of Goods and Labor Services 5,641,229,247.11 3,523,972,309.51
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 160,658,231.05 152,383,335.08
Tax Payments 102,867,757.62 96,716,033.84
Cash Payment of Other Related Business
1,079,387,420.20 434,789,578.52
Activities
Subtotal of Cash Outflow of Operating Activities 6,984,142,655.98 4,207,861,256.95
Net Cash Flow from Operating Activities 277,850,445.45 187,095,820.76
II. Cash Flow from Investment
Cash Received in Disinvestment 948,291,055.30 1,316,317,255.34
Cash Received in Return of Investment 30,129,076.34 5,120,558.91
Net Cash Received from Disposal of Fixed
90,984.78 6,618.58
Assets, Intangible Assets and Other Long-term
Assets
Net Cash Received from Disposal of Subsidiaries 0.00 5,000,000.00
and Other Operating Units
Cash Received Related to Other Business
Activities
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Subtotal of Cash flow of Operating Activities 978,511,116.42 1,326,444,432.83
Net Cash Payment for the Purchase of Fixed
65,875,188.69 11,385,922.53
Assets, Intangible Assets and Other Long-term
Assets
Cash Payment for Investment 1,008,200,000.00 1,709,222,428.58
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 1,074,075,188.69 1,720,608,351.11
Net Cash Flow from Investment Activities -95,564,072.27 -394,163,918.28
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 1,678,422,675.96 1,643,287,048.37
Other Cash Received Related to Financial
Activities
Subtotal of Cash flow of Financial Activities 1,678,422,675.96 1,643,287,048.37
Cash Payment for Debt 1,380,657,882.58 1,385,455,023.02
Cash Paid for Distribution of Dividends, Profits
35,312,822.03 26,157,547.48
or Interests
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 1,415,970,704.61 1,411,612,570.50
Net Cash Flow from Financial Activities 262,451,971.35 231,674,477.87
IV. The Impact of Change in Exchange Rate on
-249,918.57 -9,686,369.41
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 444,488,425.96 14,920,010.94
Plus: Initial Cash and cash Equivalents Balance 334,389,017.41 555,097,777.21
VI. Cash and Cash Equivalents Balance at the End
778,877,443.37 570,017,788.15
of 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 2021 Half year of 2020
I. Cash Flow from Operating Activities:
Cash received for selling goods and providing services 1,930.25
Refunds of Taxes Received 181.72 200.00
Other Cash Received Related to Business Activities 2,459,493.15 24,529,151.07
Subtotal of Cash flow of Operating Activities 2,461,605.12 24,529,351.07
Cash for Purchase of Goods and Labor Services 9,806.64 24,592.17
11
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Cash Paid to and for Employees 1,450,104.47 7,904,980.50
Tax Payments 92,938.64 298,780.02
Cash Payment of Other Related Business Activities 1,664,077.90 18,496,617.45
Subtotal of Cash Outflow of Operating Activities 3,216,927.65 26,724,970.14
Net Cash Flow from Operating Activities -755,322.53 -2,195,619.07
II. Cash Flow from Investment
Cash Received in Disinvestment
Cash Received in Return of Investment
Net Cash Received from Disposal of Fixed Assets,
44,424.78
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 44,424.78
Cash Payment for the Purchase of Fixed Assets,
79,469.03 142,327.44
Intangible Assets and Other Long-term Assets
Cash Payment for Investment
Net Cash Payment of Subsidiaries and Other Business
Units
Cash Payment of Other Activities Related to Investment
Subtotal of Cash Outflow of Investment Activities 79,469.03 142,327.44
Net Cash Flow from Investment Activities -35,044.25 -142,327.44
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Cash Received from Loans 4,000,000.00
Other Cash Received Related to Financial Activities
Subtotal of Cash flow of Financial Activities 4,000,000.00
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
IV. The Impact of Change in Exchange Rate on Cash and
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents -790,366.78 1,662,053.49
Plus: Initial Cash and cash Equivalents Balance 1,523,322.79 3,536,102.19
VI. Cash and Cash Equivalents Balance at the End of the
732,956.01 5,198,155.68
Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
12
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
7. Consolidated Statement of Change in Equity
Unit: Yuan
Half year of 2021
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 726,950,251.00 1,674,828,350.95 -363,258.66 122,122,436.98 187,033,763.26 2,710,571,543.53 388,601,959.83 3,099,173,503.36
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under the
Same Control
Others
II. Beginning Balance of This
726,950,251.00 1,674,828,350.95 -363,258.66 122,122,436.98 187,033,763.26 2,710,571,543.53 388,601,959.83 3,099,173,503.36
Year
III. Changes in This Period ( "-"
-80,447.42 88,328,197.91 88,247,750.49 10,110,607.82 98,358,358.31
refers to losses)
A. Total Comprehensive Income -80,447.42 88,328,197.91 88,247,750.49 10,110,607.82 98,358,358.31
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. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
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
13
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 1,674,828,350.95 -443,706.08 122,122,436.98 275,361,961.17 2,798,819,294.02 398,712,567.65 3,197,531,861.67
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2020
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 1,595,672,048.19 267,628.14 122,122,436.98 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
106,731.84 73,762,895.19 73,869,627.03 21,545,140.55 95,414,767.58
Income
B. Input and Capital Reduction
41,159,887.00 84,161,371.48 125,321,258.48 -237,694,893.39 -112,373,634.91
of 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 0.00 249,017,319.14
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
14
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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
8. Statement of Change in Equity of Parent Company
Unit: Yuan
Half year of 2021
Other equity instruments
Program Other
Perpetual Minus: Treasury Reasonable
Capital stock Preference Capital reserve Comprehensive Surplus reserves Undistributed profit Others Total owners' equity
Capital Others Stock Reserve
Shares Income
Securities
I. Ending Balance of Last Year 726,950,251.00 2,379,144,900.84 109,487,064.39 -862,106,544.32 2,353,475,671.91
Plus: Changes in Accounting
Policies
Early Error Correction
Others
II. Beginning Balance of This Year 726,950,251.00 2,379,144,900.84 109,487,064.39 -862,106,544.32 2,353,475,671.91
III. Changes in This Period ( "-"
-2,823,780.57 -2,823,780.57
refers to losses)
A. Total Comprehensive Income -2,823,780.57 -2,823,780.57
B. Input and Capital Reduction of
Owners
1. Common Stock Invested by the
Owner
15
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 726,950,251.00 2,379,144,900.84 109,487,064.39 -864,930,324.89 2,350,651,891.34
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2020
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 -1,042,605,063.16 1,926,059,833.94
Plus: Changes in Accounting
Policies
Early Error Correction
Others
16
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
II. Beginning Balance of This
685,790,364.00 2,173,387,468.71 109,487,064.39 -1,042,605,063.16 1,926,059,833.94
Year
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
1. Common Stock Invested by the
Owner
2. Invested Capital of Other 41,159,887.00 207,857,432.14 249,017,319.14
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 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
17
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Hainan Jingliang Holdings Co., Ltd.
Notes to 2021 Semiannual Financial Statements
(Unless otherwise stated, the amount unit is RMB Yuan)
I. Basic Information of the Company
1. Place of incorporation, form of organization and head office address
Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang Holdings") is
established in accordance with the Hainan Provincial People's Government General Office QFBH (1992) No.1, approved by QY (1992)
SGZ No. 6 Document of the People's Bank of Hainan Province and re-registered by Hainan Pearl River Enterprise Company on January
11, 1992. The Company issued 81,880,000 shares in total upon re-registration, of which 60,793,600 shares were converted from the
net assets of the original Company and 21,086,400 shares were newly issued. And the name of the Company is Hainan Pearl River
Enterprise Co., Ltd. The business license registration number of the joint-stock Company is 20128455-6, and the holding parent
Company Guangzhou Pearl River Enterprise Group holds 36,393,600 shares, accounting for 44.45%. Approved by ZGB (1992) No.
83 Document of the People's Bank of China in December 1992, the additional 21,086,400 shares were listed on the Shenzhen Stock
Exchange for trading. The industry involved is real estate.
On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and SRYFZ (1993) No.099
of Shenzhen Special Economic Zone Branch of the People's Bank of China, the Company increased its share capital by converting the
original share capital into 139,196,000 shares (according to distribution of 10, delivery of 5 and transfer of 2), with the controlling
shareholder Guangzhou Pearl River Enterprises Group holding 48,969,120 shares accounting for 35.18% at the end of 1993.
In 1994, the share capital was increased by 10 to 10, and the total share capital was 278,392,000 shares after the increase. The
controlling shareholder, Guangzhou Pearl River Enterprises Group, holds 97,938,240 shares, accounting for 35.18%.
In 1995, the issuance of 50,000,000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12. The share capital of
the Company was increased by 10:1.5 on the basis of the share capital after the additional B shares were issued, and the share capital
of the Company after the increase was 377,650,800 shares. The holding parent Company, Guangzhou Pearl River Enterprises Group,
held 112,628,976 shares, accounting for 29.82% of the total.
In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares to Beijing Wanfa Real Estate Development
Co., Ltd.. After the transfer of shares was completed in June 1999, Beijing Wanfa Real Estate Development Co., Ltd. held 112,628,976
shares of the Company, accounting for 29.82% of the total shares of the Company, and became the controlling shareholder of the
Company.
On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd. and the Business License
for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau of Hainan Province.
On August 17, 2006, the reform plan of the split share structure of the Company was implemented. The Company transferred
18
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
49,094,604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original non-tradable shareholders transferred the
increased shares to the tradable A-share holder. Beijing Wanfa Real Estate Development Co., Ltd. reimbursed the consideration shares
of the non-tradable shareholders who have not expressly expressed their opinions. The converted total share capital was 426,745,404
shares, and the original controlling shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698 shares, accounting
for 25.31%. Shareholders of non-tradable shares repaid 3,289,780 shares in consideration of the split share structure in 2007.
Shareholders of non-tradable shares repaid 1,196,000 shares in consideration of the split share structure in 2009.
On 2 September 2016, Beijing Wanfa Real Estate Development Co., Ltd., the original controlling shareholder, transferred all of
its 112,479,478 shares to Beijing Grain Group Co., Ltd. (hereinafter referred to as "Beijing Grain Group"). Upon completion of the
share transfer in September 2016, Beijing Grain Group Co., Ltd. held 112,479,478 shares, accounting for 26.36% of the total shares of
the Company. In November 2016, based on the confidence in the subject matter of the material asset restructuring and the future
development of the Company, Beijing Grain Group Co., Ltd. decided to increase its shareholding through centralized bidding in the
secondary market. After the increase, it held 123,561,963 shares of the Company, accounting for 28.95% of the total number of shares,
and became the largest shareholder of the Company.
The Company determined July 31, 2017 as the delivery date of material assets in accordance with the material assets restructuring
plan and the delivery agreement. On September 14, 2017, approved pursuant to the resolution of the Second Extraordinary General
Meeting of Shareholders of the Company on November 18, 2016 and the Approval Reply of the China Securities Regulatory
Commission dated July 28, 2017 On Approval of Hainan Pearl River Holding Co., Ltd. to Purchase Assets and Raise Supporting Funds
from Beijing Grain Group Co., Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original shareholders of
Beijing Grain Food Co., Ltd. (hereinafter referred to as Beijing Grain Food) by issuing 210,079,552 shares of the balance between the
transaction price of the injected assets and the assets to be purchased (the difference between the transaction price of the injected assets
and the assets to be purchased was RMB 1,699.5436 million yuan). The par value in the issuance was RMB 1.00 per share and the
issuance price was RMB 8.09 per share; 2) The Company has issued 48,965,408 non-public shares of the Company to Beijing Grain
Group for the purpose of purchasing the supporting funds raised from the assets of the issuance of shares. The par value per share of
the Company was RMB1.00 and the issuance price was RMB8.82 per share. The shareholder Beijing Grain Group conducted
subscription in monetary funds. Upon completion of the issue, the registered capital was RMB 685,790,364.00 and the share capital
was RMB 685,790,364.00. Beijing Grain Group, which accounted for 42.06% of the total number of shares, became the largest
shareholder of the Company.
On November 21, 2019, with the approval of Beijing Shounong Food Group Co., Ltd. (Beijing Shounong Food publish [2019]
No. 212), Approval on the Plan of Purchasing Assets by Cash and Issuing Shares of Hainan Jingliang Holdings Co., Ltd, On April ,
2020, with the approval of Approval of Hainan Jingliang Holding Co., Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets by
China Securities Regulatory Commission [2020] No. 610, the Company shall not issue more than 41,159,887 new shares in private
offering to raise funds supporting the purchase of assets through the issued shares. The Company and its subsidiary, Beijing Jingliang
Food Co., Ltd., purchased the 25.1149% equity stake of Zhejiang Little Prince by cash and issuance of shares.
As of June 30, 2021, the Company has issued 726,950,251.00 shares, and the Company's share capital is 726,950,251.00 yuan;
19
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Uniform Social Credit Code: 914600002012845568; Registration authority: Hainan Market Supervision Administration; Company
type: Limited Company (Listed, State-controlled); Registered address: F29, Dihao Building, Pearl River Square, Binhai Avenue,
Haikou City; Legal representative: Li Shaoling.
2. The nature of the Company's business and its main business activities
The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main business ativites mainly
includes: food, beverages, agricultural and sideline products, vegetable proteins and their products, organic fertilizers, microbial
fertilizers, production and marketing of agricultural fertilizers; land consolidation, soil remediation; agricultural comprehensive
planting development, animal husbandry and aquaculture, agricultural equipment production and marketing; 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.
The Company and its subsidiaries are principally engaged in the processing, production and sales of foodstuffs, agricultural and
sideline products, grease, oils, and leisure foods.
3. The name of the parent Company and the ultimate parent Company.
The parent Company of the Company is Beijing Grain Group Co., Ltd., and the ultimate parent Company is Beijing shounong
Food Group Co., Ltd.
4. The approval institution and the approval date of the financial statements.
These financial statements have been approved and reported by the Board of Directors of the Company in its resolution dated on
August 23, 2021.
5. Consolidation scope
The consolidated scope of the consolidated financial statements of the Company is determined on the basis of control, including
the financial statements of the Company and all subsidiaries. Subsidiaries refer to enterprises or entities controlled by the Company.
A total of 17 subsidiaries of the Company were included in the scope of consolidation on June 30, 2021, as detailed in Note 8
"Interests in Other Entities". The consolidation scope of the Company for the current period is same as the previous period as detailed
in Note 7, "Change in Consolidation Scope".
II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transaction events, the financial statements are prepared in
accordance with the relevant provisions of Accounting Standard for Business Enterprises and the following stated Significant
Accounting Policies and Estimates.
2. Going concern
The Company has a going concern capability for 12 months from the end of the reporting period and no material matters affecting
20
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
the Company's going concern capability were found. Therefore, the financial statements are presented on a going concern basis is
reasonable.
III. Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing, production and sales of food, agricultural and sideline products,
grease, oil and leisure food. According to the characteristics of actual production and operation and the provisions of relevant
accounting standards for business enterprises, the Company and its subsidiaries have formulated a number of specific accounting
policies and accounting estimates for transactions and events such as revenue recognition. For details, please refer to the descriptions
in Note Ⅲ, 27 “Revenue". For descriptions of the significant accounting judgments and estimates made by the management, please
refer to Note Ⅲ, 33 “Significant Accounting Judgments and Estimates"
1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to the requirements of the
Accounting Standards for Business Enterprises and their application guidelines, explanations and other relevant provisions (collectively
referred to as "ASBE") and truly and completely reflect the Company's financial status, operating results, cash flow and other relevant
information.
In addition, the preparation of this financial report refers to 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 and the presentation and disclosure requirements in Notice on Matters Related to the Implementation of the New
Accounting Standards for Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453)
2. Accounting Period and Business Cycle
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.
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
21
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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 Purchasee. Purchase date means the date on which the Purchaser actually
acquires control of the Purchasee.
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 Purchasee 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 Purchasee 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 Purchasee in the merger, first, the fair value of the identifiable
assets, liabilities and contingent liabilities of the Purchasee 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.
22
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
When the Purchaser acquires the deductible temporary difference of the Purchasee, 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, 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 3), 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 3, 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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 Ⅲ, 13-Long-term Equity Investment or Note Ⅲ, 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" (as detailed in 13 of Note Ⅲ) 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.
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 Ⅲ, 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 an reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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.
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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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. 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: ① The termination of the contractual right
to receive cash flow from the financial asset. ② The 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. ③ The 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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 based on the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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;
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.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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.
②Accounts 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.
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:
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 housing provident
Portfolio 3
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
Aging portfolio
to the aging period
Portfolio of receivables between the ultimate controlling party and Referring to the historical credit loss experience,
its subordinate units combined with the current situation and the forecast
The portfolio of public maintenance funds and house sales funds of future economic conditions, the expected credit
deposited into the MPF Management Center loss is calculated thr-ough the default risk exposure
Deposit/margin portfolio and the expected credit loss rate within the next 12
The portfolio of reserve fund ledger formed by the Company's staff months or the entire duration, and the expected
loan. credit loss rate of the portfolio is zero.
a. In portfolio, the portfolio method of withdrawing bad debt reserves by aging analysis
Expected loss rate of notes Expected loss rate of Expected loss rate of other
Aging
receivable (%) accounts receivable (%) 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
Aging
notes receivable (%) accounts receivable (%) other receivables (%)
Accounts receivable between the final controlling 0 0 0
party and its subordinate u
Public maintenance fund and house sale fund 0 0 0
deposited into MPF Management Center
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Expected loss rate of Expected loss rate of Expected loss rate of
Aging
notes receivable (%) accounts receivable (%) other receivables (%)
Deposit/margin 0 0 0
The reserve fund ledger formed by the Company's 0 0 0
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 by one-off amortization method when they are received; packaging
materials are amortized by one-off amortization method when they are received.
12. Held-for-sale assets and disposal group
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 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-
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
For details of its accounting policies, please refer to Note Ⅲ, 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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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
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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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 Ⅲ.5 .
For the disposal of long-term equity investment in other cases, the difference between the book value of the disposed equity and
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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 recognised
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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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
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 Ⅲ. 21 “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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 Depreciation Net esidual
Category Annual depreciation rate (%)
Method period (Year) rate(%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
straight-line
uipElectronic eqment 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 facility 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 Ⅲ. 21 “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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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 Ⅲ.
21 “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. Right of use assets
Right of use assets refer to the right of the Company, as a lessee, to use the leased assets during the lease term.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(1) Initial measurement: At the beginning of the lease term, the Company shall make the initial measurement of right of use assets
according to the cost. The cost includes the following four items: ①the initial measured amount of the lease liability. ②the amount
of the lease payment made at or before the beginning of the lease term, where there is a lease incentive, the relevant lease incentive
that have been enjoyed shall be deducted.③the incurred initial direct expenses is the incremental costs in the conclusion of the lease.
④the expected costs to dismantle and remove the leased assets, restore the site where the leased assets are located, or the restore of the
leased assets to the agreed status in the lease terms, excluding from having occurred for the production of inventory.
(2) Subsequent measurement: After the beginning of the lease term, the Company adopts the cost model to make subsequent
measurement of the right of use assets, that is, to measure the right of use assets by cost reducing accumulated depreciation and
accumulated impairment losses. The Company shall adjust the book value of the right of use assets as the relevant provision of the
lease guidelines.
From the beginning of the lease term, the Company shall depreciate the assets of the right of use. The right of use assets usually
depreciated at the beginning of the month in the lease term. According to the purpose of the right of use, the amount of depreciation
charge to the cost of the relevant assets or the current profit and loss. In determining the method of deprecation of the right of use assets,
the Company shall make a decision on the manner of expected consumption of the economic benefits associated with the right of use
assets, and shall depreciate the right of use assets in a straight line method. The Company follow the principles on determining the
depreciation life of the right of use assets. If it is reasonable to determine the ownership of the leased assets at the end of the lease term,
deprecation shall be accrued for the remaining service life of the leased assets, and if not, deprecation shall be accrued on the shorter
term between the lease term and the remaining service life of the leased assets.
In the event of impairment of the right of use assets, the Company shall make subsequent depreciation in accordance with the
book value of the right of use assets after deducting the impairment losses.
The Company has chosen not to confirm the right of use assets and lease liabilities for short-term lease (leases with a lease term
of not exceeding 12 months) and low-value asset leases, and to charge the relevant lease payments to the current profit and loss or
related asset costs in a straight line method for each period of the lease term.
19. 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 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.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 Amortization period (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.
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 Ⅲ. 20 “Long-Term Asset
Impairment”.
20. 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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.
21. 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 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.
22. 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 Contribution
Plan, they shall be accounted for Defined Contribution Plan, and otherwise accounted for the Defined Benefit Plan.
22. Lease liabilities
At the beginning of the lease term, the Company recognize the present value of the non-payable lease payment as lease liabilities,
without the short lease and low-value lease assets. On calculating the present of the lease payment, the Company adopt the lessee’s
incremental borrowing rate as the discount rate. The Company calculates the interest expense for each period in the lease term of the
lease liabilities as the discount rate and counts it towards the current profit and loss. The variable lease payments that not included in
the lease liability measurement charge to the current profit and loss on occurring. After the start of the lease term, the Company
remeasures the lease liability at the present value of the changed lease payment amount when there is a change in the actual fixed
payment amount, the index or ratio used to determine the lease payment, the evaluation results of the purchase option, the renewal
option or termination option change.
24. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognized as estimated liabilities: (1)
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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).
25. 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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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,
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 settlememt enterprise
are not the same, then the payment should be recpgnized and measured in their individual financial statements, they should be accounted
for using the above principles
26. 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 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 3, 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.
27. Revenue
The Company's operating income mainly includes income from selling goods, income from providing services, royalty income,
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
interest income, etc. When the Company signs a contract, it evaluates the contract, identifies the individual performance obligations
contained in the contract, and determines whether the individual performance obligations are performed within a certain period of time
or at a certain point of time. When the Company has fulfilled all the performance obligations in the contract, the revenue shall be
recognized respectively according to the transaction price apportioned to the performance obligations.
(1) Revenue recognition for fulfilling performance obligation at a certain time point
Generally, the Company recognizes the revenue from the sales of goods based on the transaction price apportioned to the single
performance obligation when the customer obtains the control right of the relevant goods on the basis of comprehensively considering
the following factors: the Company has the right to receive payment in respect of the goods or services currently, that is, the customer
has the obligation to pay for the goods currently; the Company has transferred the legal ownership of the goods to the customer, that
is, the customer has the legal ownership of the goods; The Company has transferred the physical goods of the commodity to the
Customer or the Customer has obtained the qualification of physical goods right of the commodity. The consideration obtained by the
Company in respect of the transfer of the commodity is likely to be recovered; Other indications that the customer has taken control of
the commodity.
The specific principles of the Company's sales revenue recognition are as follows: when the commodity have been delivered to
the customer and signed by the customer for confirmation, or the ownership certificate of the commodity has been delivered to the
customer, the sales revenue is recognized when the Company has received the payment or obtained the evidence of payment.
(2) Revenue recognition for fulfilling performance obligation within a certain period of time
For the performance obligations performed in a certain period of time, such as the services provided, the Company adopts the
output method or input method to determine the appropriate performance progress, and recognizes the revenue according to the
performance progress in that period of time. On the balance sheet date, the Company shall recognize the current income according to
the total transaction price of the contract multiplied by the progress of performance minus the accumulated recognized income. If one
of the following conditions is satisfied, it is regarded as the performance obligation performed during a certain period of time: the
Customer obtains and consumes the economic benefits arising from the performance of the Company at the same time of the
performance of the Company; Customers can control the goods under construction during the performance of the contract; The products
produced by the Company during the performance of the Contract are of irreplaceable use, and the Company shall be entitled to receive
payment for the accumulated part of the completed performance so far during the whole term of the Contract. Otherwise, the Company
recognizes revenue at the point when the Customer acquires control of the relevant goods or services.
The Company's rights to receive consideration for goods or services transferred to the Customer (and such rights depend on factors
other than the time passage) are presented as contractual assets, which are subject to impairment on the basis of expected credit losses.
The Company's right to collect consideration from customers unconditionally (only depending on the passage of time) is listed as
receivables. The obligation of the Company to transfer goods or services to customers for which consideration has been received or
receivable is presented as a contractual liability.
28. Contract cost
1. Contract performance cost
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
The cost incurred by the Company for the performance of the contract, which does not fall within the scope of other accounting
standards for business enterprises other than the income standard and meets the following conditions at the same time, is recognized
as an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses
(or similar expenses), costs explicitly borne by the customer and other costs incurred solely as a result of the contract;
(2) The cost increases the Company's resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the amortization period has exceeded one
normal operating cycle at the time of its initial recognition.
2. Contract acquisition cost
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall be recognized as an
asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if the Company does not obtain the contract.
3. Amortization of contract costs
The assets related to the contract cost mentioned above shall be amortized at the time of performance of the obligation or according
to the performance progress on the same basis as the income recognition of the commodity or service related to the asset and shall be
recorded into the current profit and loss.
4. Impairment of contract cost
If the book value of the above assets related to the contract cost is higher than the difference between the residual consideration
expected to be obtained by the Company due to the transfer of the goods related to the assets and the estimated cost to be incurred for
the transfer of the relevant goods, the excess part shall be set aside as an impairment provision and recognized as an impairment loss
of the asset.
29. 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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.
The Company will obtain preferential policy loans discount in accordance with the finance will be allocated to the loan bank
discount funds and the finance will be directly allocated to the Company discount funds in two cases:
(1) If the finance department allocates the discount interest funds to the lending bank, and the lending bank provides the loan to
the Company at the policy preferential interest rate, the Company chooses to conduct accounting treatment according to the following
methods: the loan amount actually received shall be taken as the entry value of the loan, and the relevant borrowing costs shall be
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
calculated in accordance with the loan principal and the policy preferential interest rate.
(2) If the finance allocates the discount funds directly to the Company, the Company will offset the corresponding discount against
the relevant borrowing costs.
30. 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 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.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(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 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.
31. Lease
(1) Identification of the lease.
Lease refers to a contract in which the lessor cedes the right to use the right of asset to use to the lessee for a period. At the
beginning date of the contract, the Company evaluates whether it is a lease or include in the contract, which one of the contracts parties
cedes the right to control one or more identified assets in a certain period to exchange for a price. To determine whether the contract
cedes the right to control the identified assets in a certain period, the Company evaluates whether the customer in the contract is entitled
to almost all financial benefits occurred by the identified assets and to dominate the use of identified assets during the period of use. If
the contract contains many separate leases, the Company will break up the contract and make each lease accounting treatment separately.
If the contract includes both the lease and non-lease portions, the Company shall separate the lease and non-lease parts for accounting
treatment.
(2) The Company as a lessee
1) Lease Confirmation. On the beginning of the lease term, the Company recognizes the right of use assets and lease liabilities for
the lease. Recognition and measurement of use rights assets and lease liabilities Notes III, (18) "Right of use assets" and notes 3 and
(23) "Lease liabilities".
2) Lease modifications. Lease modification refer to modifications in lease scope, lease value, lease term out of the contract,
including the addition or termination of the right to use one or more lease assets, the extension or shortening of the lease term stipulated
in the contract. The effective date of the lease modifications refer to the date on which the parties agree on the lease modifications. The
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Company treats the lease modification as a separate lease for accounting when lease occurs to modify and meet the followings: ①The
lease modification extends the lease scope or the lease term by adding the right to use one or more lease assets. ②The increased value
is equivalent to the amount adjusted for the separate price of the extended scope and term as the circumstance of the contract.. Lease
modification is accounted as a separate lease
Contingent rentals shall be included in current profits and losses when actually occurring. On the effective date of the lease
modification, the Company shall, in accordance with the relevant provisions of the lease guidelines, apportion the value of the changed
contract and re-determine the lease term afterwards. The revised discount rate is used to discount the changed lease payment in order
to re-measure the lease liability.
In calculating the present value of the lease payment after the modification, the Company shall use the lease-included interest rate
for the remaining lease period as the discount rate, and if it is unable to determine the lease-included interest rate for the remaining
lease period, the Company shall use the incremental loan rate of the lessee as the discount rate on the effective date of the lease
modification. With regard to the impact of the above lease liability adjustment, the Company shall deal with the followings: ①If the
lease modification results in a reduction in the lease scope or in the lease term, the lessee shall reduce the book value of the right of use
assets and include in the profit or loss related to the partial or complete termination of the lease as a profit or loss in the current period.
②If other lease modifications result in remeasuring of lease liabilities, the lessee adjusts the book value of the right of use assets
accordingly.
3) Short-term leases and low-value asset leases The Company has chosen not to recognize right of use assets and lease liabilities
for short-term leases and low-value asset leases where the lease term is not more than 12 months and single lease assets are brand new
assets. The Company shall charge the relevant asset costs or current profits and losses in accordance with the straight-line method or
other systematic reasonable methods for each period of the lease term
(3) The Company as a lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Company, as a lessor, divides the lease into a financial
lease and an operating lease at the beginning of the lease. If a lease essentially transfers almost all the risks and rewards associated with
ownership of the leased assets, the lessor classifies the lease as a financial lease and a lease other than a financial lease as an operating
lease. A lease is usually classified as a financial lease if it has one or more of the following circumstances: ① At the end of the lease
term, the ownership of the leased assets is transferred to the lessee; ② the lessee has the option to purchase the leased assets, and the
purchase price is sufficiently low compared to the fair value of the leased assets at the time of the expected exercise of the option, and
thus ③the lease term accounts for the majority of the life of the leased asset (not less than 75 per cent of the lease asset life) ; ④ at
the commencement date of the lease, although the ownership of the asset is not transferred, may reasonably be established at the
beginning of the lease, The present value of the lease receipts is almost equal to the fair value of the leased assets (not less than 90 per
cent of the fair value of the leased assets); ⑤ The nature of the leased assets is special, and if no major renovation is made, only the
lessee can use them. The Company may also classify a lease as a financial lease if there are one or more of the following indications:
① If the lessee cancels the lease, the loss caused by the cancellation of the lease to the lessor shall be borne by the lessee; ② the
profits or losses arising from fluctuations in the fair value of the residual value of the assets shall belong to the lessee; and ③ the
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
lessee shall be able to continue the lease until the next period at a rent well below the market level.
1) Accounting treatment of financial lease. The initial measurement is made at the beginning of the lease period when the Company
recognizes the financial lease receivable for the financial lease and terminates the recognition of the financial lease assets. When the
Company makes initial measurement of the receivable financial lease, the net investment in the lease shall be used as the recorded
value of the receivable financial lease. The net lease investment is the sum of the unsecured residual value and the lease receipts not
yet received at the lease term start date at the present value discounted at the interest rate included in the lease. The amount of the lease
receipt refers to the amount that the lessor shall collect from the lessee as a result of the transfer of the right to use the leased assets
during the lease term, including: (1) the fixed payment amount and the substantial fixed payment amount to be paid by the lessee (2)
depends on the amount of the variable lease payment for the index or ratio, which is determined at the time of initial measurement on
the basis of the index or ratio at the beginning of the lease term, and (3) the exercise price of the option to purchase, provided that it is
reasonably determined that the lessee will exercise that option ;(4) The amount to be paid by the lessee in the exercise of the option to
terminate the lease, provided that the lease period reflects the lessee's option to terminate the lease, and (5) the residual value of the
security provided by the lessee, the party associated with the lessee and an independent third party with the financial capacity to perform
the security obligation. The Company calculates and recognizes interest income for each period of the lease term at a fixed periodic
interest rate. The cyclical interest rate refers to determining that the net rental investment is subject to an inclusive discount rate (in the
case of subletting, if the lease inclusion interest rate cannot be determined, the discount rate of the original lease (adjusted for the initial
direct costs associated with the subletting), or that the change in the financial lease is not accounted for as a separate lease, and that if
the change takes effect on the lease date, the lease will be classified as a revised discount rate as determined by the relevant provisions
at the time of the lease.
If a financial lease changes and meets the following conditions, the Company shall treat the change as a separate lease (1) the
change expands the lease by adding the right to use one or more leased assets, and (2) the increased value is equivalent to the amount
adjusted for the expansion of the lease as the contract. If a change in a financial lease is not accounted for as a separate lease and if the
change is met on the commencement of the lease, the lease will be classified as operating the lease conditions, the Company shall, from
the effective date of the lease change, treat it as a new lease and take the net lease investment prior to the effective date of the lease
change as the book value of the leased assets.
2）Accounting treatment of operating leases
During each period of the lease term, the Company uses a straight-line method to recognize the lease receipts for operating leases
as rental income. Where the incentive provided provides a rent-free period, the Company shall allocate the total amount of rent
according to the straight-line method during the entire lease period without deducting the rent-free period, and the rental income shall
be recognized during the rent-free period. If the Company bears certain expenses of the lessee, the expense shall be deducted from the
total rental income and distributed according to the balance of the rent income after deduction during the lease period.
The initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost of the
assets under lease and shall be included in the current profit and loss in instalments during the lease term on the same basis as the rental
income. For fixed assets in operating leased assets, the Company shall use a depreciation policy of similar assets to charge depreciation,
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
and for other operating leased assets, amortize them in a systematic and reasonable manner. Variable lease payments obtained by the
Company in connection with the operating lease that are not included in the lease receipts shall be included in the current profit and
loss when they actually occur. In the event of a change in an operating lease, the Company shall, as of the effective date of the change,
treat it as a new lease for accounting, and the amount of the pre-receivable or receivable lease receivable in connection with the pre-
change lease shall be deemed to be the amount receivable for the new lease.
32 .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 3, 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.
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 has meet the conditions for the application of hedge accounting, the application
of hedge accounting shall be terminated.
33. Significant accounting judgments and estimates
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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
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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 Company works closely with
qualified external appraisers to determine the appropriate valuation techniques and inputs to the relevant models
IV. 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, taxable 1%，3%、5%、6%、9%、、
Value Added Tax
services and taxable services income calculated in accordance with the 13%
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 of actual
3%
funds payment
Local Extra Charges of According to value added tax and consumption tax on the basis of actual
2%
Education Funds payment
Corporate Taxes According to taxable income 15%、17%、25%
According to 70% of original value of the real estate (or rental income)
Property Tax as the tax base; according to the original value of the real estate deducted 1.2%、12%
30% at a time.
The Company conducts VAT taxable sales or imports goods. 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 (2019) 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.
Representation 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%
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
2. Important preferential tax policies and basis
Hangzhou Linan Little Angel Food Co., Ltd., a 4th tier subsidiary Company of the Company, is a welfare enterprise. 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), 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.
Linqing Little Prince Food Co., Ltd., a fourth-level subsidiary of the Company, shall be subject to 50% of the sales revenue on
the basis of the stamp tax payable in the industrial procurement link and sales link in the purchase and sale contract of industrial
enterprises according to the annountment No.10, 2018 issued by Shandong Provincial Tax Bureau. The base of stamp duty payable in
2021 shall be calculated according to 50% of the sales 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. The Company is taxed on the territoriality principle. According to Singapore's preferential tax policy, the Company enjoys
tax exemption plan is as follows: for the first SGD10,000 of taxable income amount the taxable income amount shall be reduced by
75%; for the portion between SGD$10,001 and SGD$200,000, the taxable income amount shall be reduced by 50%; For the portion
exceeding SGD$200,000, the taxable income amount shall not be reduced. The Company shall pay income tax at the rate of 17% on
the taxable income amount after exemption.
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
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 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 day weikang 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.
Ⅴ. Changes in accounting policies, accounting estimates, and explanation of corrections to previous errors
1. Changes in accounting policies
On December 7, 2018, the Ministry of Finance issued the "Notice on the Amendment and Printing of the ‘Accounting Standards
for Business Enterprises No. 21 – lease' " (Finance and Accounting [2018] No. 35). Based on the accounting standard revision and the
requirements of the notice of the Ministry of Finance, Jingliang Holdings shall implement the new lease standards as of January 1,
2021. For all leases, the Company shall recognize the right of use assets and lease liabilities (except short-term leases and low-value
asset leases) and recognize depreciation and interest expense, respectively. For short-term leases and low-value asset leases, the
Company shall not recognize the right of use assets and lease liabilities. In accordance with the requirements set out in the new lease
guidelines, the Company has chosen not to re-evaluate whether a contract that exists before January 1, 2021 is a lease or includes a
lease. In the case of the Company as a lessee, it has chosen to simplify the retroactive adjustment method to bridge the process by
adjusting only the amounts of the "use rights assets" and "lease liabilities" items in the Financial Statements of January 1, 2021, and
not the comparable period information for other items on the balance sheet.
2. Changes in accounting estimates
There is no change in accounting estimate during the reporting period.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.
4. The first time to implement the new lease standard adjustment and the first time to implement the financial statements at the
beginning of the year related items
Consolidated Balance Sheet
Monetary Unit: RMB Yuan
Items 30 June 2021 1 January 2021 Adjustments
Current Assets:
Monetary capital 335,466,169.61 335,466,169.61
Transactional financial assets 63,478,071.73 63,478,071.73
Derivative financial assets - -
Notes receivable 456,565.85 456,565.85
Accounts receivable 92,245,667.60 92,245,667.60
Receivables financing - -
Prepayment 282,343,218.05 282,234,970.05 -108,248.00
Other receivables 541,905,656.97 541,905,656.97
Including: Interest receivable
Dividends receivable
Inventory 1,225,083,742.26 1,225,083,742.26
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 845,450,678.36 845,450,678.36
Total current assets 3,386,429,770.43 3,386,321,522.43 -108,248.00
Non-current assets:
Long-term equity investment 217,762,487.79 217,762,487.79
Other equity instruments investment 20,000,000.00 20,000,000.00
Other non-current financial assets
Investment property 22,560,212.50 22,560,212.50
Fixed assets 1,131,143,854.07 1,131,143,854.07
Construction in process 28,458,413.67 28,458,413.67
Right of use assets 2,722,789.09 2,722,789.09
Intangible assets 354,139,335.32 354,139,335.32
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items 30 June 2021 1 January 2021 Adjustments
Development expenditure
Goodwill 191,394,422.51 191,394,422.51
Long-term deferred expenses 20,529,601.50 20,529,601.50
Deferred income tax assets 3,346,814.27 3,346,814.27
Other non-current assets 319,739,581.67 319,739,581.67
Total non-current assets 2,309,074,723.30 2,311,797,512.39 2,722,789.09
Total assets 5,695,504,493.73 5,698,119,034.82 2,614,541.09
Current liabilities:
Short-term borrowings 1,497,414,079.05 1,497,414,079.05
Derivative financial liabilities 371,219,136.84 371,219,136.84
Accounts payable 75,384,075.39 75,384,075.39
Account collected in advance 1,087,874.02 1,087,874.02
Contract liabilities 346,874,260.90 346,874,260.90
Employee payroll payable 33,345,136.94 33,345,136.94
Taxes payable 50,884,214.64 50,884,214.64
Other payables 72,292,881.24 72,292,881.24
Including: Interest payable 21,082,795.47 21,082,795.47
Dividends payable 11,013,302.88 11,013,302.88
Other Liabilities 8,319,696.79 8,319,696.79
Total current liabilities 2,456,821,355.81 2,456,821,355.81
Non-current liabilities:
Long-term borrowings
Lease liabilities 2,614,541.09 2,614,541.09
Long-term payable to employees 5,677,134.00 5,677,134.00
Estimated liabilities
Deferred income 68,716,699.34 68,716,699.34
Deferred income tax liabilities 65,115,801.22 65,115,801.22
Other non-current liabilities
Total non-current liabilities 139,509,634.56 142,124,175.65 2,614,541.09
Total liabilities 2,596,330,990.37 2,598,945,531.46 2,614,541.09
Owners' equity (or Shareholders' equity):
Capital stock 726,950,251.00 726,950,251.00
Other equity instruments
65
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items 30 June 2021 1 January 2021 Adjustments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1,674,828,350.95 1,674,828,350.95
Less: treasury stock
Other comprehensive income -363,258.66 -363,258.66
Special reserves
Surplus reserves 122,122,436.98 122,122,436.98
Undistributed profit 187,033,763.26 187,033,763.26
Total equity attributable to the parent Company 2,710,571,543.53 2,710,571,543.53
Minority equity 388,601,959.83 388,601,959.83
Total owners' equity (or shareholders' equity) 3,099,173,503.36 3,099,173,503.36
Total liabilities and owners' equity (or shareholders' equity) 5,695,504,493.73 5,698,119,034.82 2,614,541.09
Parent Company balance sheet
Monetary Unit: RMB Yuan
Items 30 June 2021 1 January 2021 Adjustments
Current Assets:
Monetary capital 1,523,322.79 1,523,322.79
Accounts receivable 11,784.00 11,784.00
Prepayment 423,679.12 423,679.12
Other receivables 103,341.26 103,341.26
Including: Interest receivable
Dividends receivable
Inventory 3,775,954.85 3,775,954.85
Other current assets 2,445,772.47 2,445,772.47
Total current assets 8,283,854.49 8,283,854.49
Non-current assets:
Long-term equity investment 2,626,437,846.24 2,626,437,846.24
Other equity instruments investment 20,000,000.00 20,000,000.00
Investment property 6,222,001.73 6,222,001.73
Fixed assets 2,809,083.51 2,809,083.51
Intangible assets 209,185.10 209,185.10
66
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items 30 June 2021 1 January 2021 Adjustments
Long-term deferred expenses
Total non-current assets 2,655,678,116.58 2,655,678,116.58
Total assets 2,663,961,971.07 2,663,961,971.07
Current liabilities:
Short-term borrowings
Accounts payable
Account collected in advance 38,896.41 38,896.41
Contract liabilities
Employee payroll payable 341,902.14 341,902.14
Taxes payable 1,037,881.62 1,037,881.62
Other payables 309,067,618.99 309,067,618.99
Including: Interest payable 21,082,795.47 21,082,795.47
Dividends payable 3,213,302.88 3,213,302.88
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 310,486,299.16 310,486,299.16
Non-current liabilities:
Long-term borrowings
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 310,486,299.16 310,486,299.16
Owners' equity (or Shareholders' equity):
Capital stock 726,950,251.00 726,950,251.00
Capital reserves 2,379,144,900.84 2,379,144,900.8
Less: treasury stock
Surplus reserves 109,487,064.39 109,487,064.39
Undistributed profit -862,106,544.32 -862,106,544.32
Total owners' equity (or shareholders' equity) 2,353,475,671.91 2,353,475,671.91
Total liabilities and owners' equity (or shareholders' equity) 2,663,961,971.07 2,663,961,971.07
Ⅵ. Notes on Items in Consolidated Financial Statements
67
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Note: The ‘beginning’ of the period refers to January 1, 2021 and the ‘end’ of the period refers to June 30, 2021. The previous
period refers to the half of year 2020 and the current period refers to the half of year 2021.
1. Monetary funds
(1) Classification list
Items Ending Balance Beginning Balance
Cash 90,718.49 16,761.72
Bank Deposits 649,756,766.18 299,235,964.61
Other Currency Funds 130,107,110.90 36,213,443.28
Total 779,954,595.57 335,466,169.61
Among them: the total amount of money deposited abroad 11,807,029.94 3,153,447.17
(2) At the end of the period, there are 1,077,152.20 yuan of freezing which is restricted funds, and the fund has been released
freezing on July 9th,2021
(3) At the end of the period, there is no funds deposited abroad and the return of funds is restricted.
2. Transactional financial assets
Items Ending Balance Beginning Balance
Financial assets measured at fair value with changes included
363,000,000.00 63,478,071.73
in current profits and losses
Among them: debt instrument investment 363,000,000.00 63,478,071.73
Designated as financial assets measured at fair value with
changes included in current profits and losses
Among them: debt instrument investment
equity instrument investment
others
Total 363,000,000.00 63,478,071.73
3. Derivative Financial Assets
Items Ending Balance Beginning Balance
Changes in fair value of hedging instruments 75,597,717.39
Total 75,597,717.39
Note: The Company hedges the inventory and expected transactions corresponding to the varieties involved in production, operation
and trade, and the hedging instruments are listed in the items in this table.
4. Notes receivable
(1) Classification list
68
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Ending Balance Beginning Balance
Bank acceptance bill 456,565.85
Commercial acceptance bill
Total 456,565.85
5. Accounts Receivable
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 94,405,127.19
Among them: Within the credit (within 3 months) 78,698,131.72
Credit period to 1 year 15,706,995.47
1 to 2 years (including 2 years) 2,702,539.46
2 to 3 years (including 3 years) 5,254.50
3 to 4 years (including 4 years) 45,270.42
4 to 5 years (including 5 years) 51,420.00
More than 5 years 400,259.50
Total 97,609,871.07
（2）Present according to the method of provision for bad debt
Ending Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1,325,135.40 1.36 1,325,135.40 100.00
Portfolio provision for bad debts 96,284,735.67 98.64 156,458.61 0.16 96,128,277.06
Among them: aging portfolio 83,138,909.27 85.17 156,458.61 0.19 82,982,450.66
related parties portfolio 13,145,826.40 13.47 0.00 13,145,826.40
Total 97,609,871.07 ---- 1,481,594.01 ---- 96,128,277.06
（Continued）
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1,325,135.40 1.41 1,325,135.40 100.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Portfolio provision for bad debts 92,402,126.21 98.59 156,458.61 0.17 92,245,667.60
Among them: aging portfolio 69,364,375.49 74.01 156,458.61 0.23 69,207,916.88
related parties portfolio 23,037,750.72 24.58 23,037,750.72
Total 93,727,261.61 一一 1,481,594.01 一一 92,245,667.60
A. Separate provision for bad debts
Ending Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Expected unrecoverable
Beijing Xidan spicy town food limited 996,000.00 996,000.00 100.00
on claim
Expected unrecoverable
Beijing Rongfa Lida Grain and Oil Trade Co., Ltd. 163,143.00 163,143.00 100.00
on claim
Expected unrecoverable
Fujian Jingxin Industrial Group Co., Ltd 151,844.00 151,844.00 100.00
on claim
Expected unrecoverable
Beijing Guotai Ping'an Department Store Co., Ltd. 10,862.90 10,862.90 100.00
on claim
Beijing Guotai Ping'an Tianzhu Commercial Expected unrecoverable
1,809.60 1,809.60 100.00
on claim
Development Co., Ltd.
Carrefour (Shanghai) Supply Chain Management Co., Expected unrecoverable
875.90 875.90 100.00
on claim
Ltd. Tianjin Branch
Expected unrecoverable
Beijing Shunyi Longhua Shopping Center 600.00 600.00 100.00
on claim
Total 1,325,135.40 1,325,135.40 －－ －－
B. Portfolio provision for bad debts
1. Portfolio provision: aging portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year (including 1 year) 81,264,049.89 69,026,628.09 7,466.13
Among them: Within the credit
67,340,203.17 0 68,653,321.59 0
(within 3 months)
Credit period to 1 year 13,923,846.72 2 373,306.50 7,466.13 2
1 to 2 years (including 2 years) 1,674,379.46 14,329.50 5 137,267.48 6,863.37 5
2 to 3 years (including 3 years) 31,789.50 6,357.90 20 31,789.50 6,357.90 20
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
3 to 4 years (including 4 years) 45,270.42 22,635.21 50 45,270.42 22,635.21 50
4 to 5 years (including 5 years) 51,420.00 41,136.00 80 51,420.00 41,136.00 80
More than 5 years 72,000.00 72,000.00 100 72,000.00 72,000.00 100
Total 83,138,909.27 156,458.61 69,364,375.49 156,458.61
2. Portfolio provision: related parties portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Related parties portfolio 13,145,826.40 23,037,750.72
Total 13,145,826.40 23,037,750.72
（3） details of bad debt provision
Beginning The amount changed for the period Ending Balance
Items Balance Addition Withdrawal Write-off Other
or reversal changes
Credit impairment loss 1,481,594.01 1,481,594.01
Total 1,481,594.01 1,481,594.01
（4）Accounts receivable actually written off in the current period
The Company has no accounts receivable written off during the reporting period.
（5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Accounts Ratio of totalaccounts Whether Bad Debt
Debtors Aging
receivable receivable (%) related Provision
Xilin Gol League hongjingyuan Within 3
13,098,446.48 13.42 No
Oil Co., Ltd months
Tangshan Caofeidian District Within
12,329,480.04 12.63 No
Finance Bureau 1 year f
Within 3
Shanghai Laiyifen Co., Ltd 4,930,665.60 5.05 No
months
Zhejiang Lvqin Supply Chain Within 3
4,841,919.36 4.96 No
Management Co., Ltd months
Beijing Ershang Wangzhihe Food Within 3
4,439,008.84 4.55 No
Co., Ltd months
Total 39,639,520.32 40.61
6. Advanced Payment
(1) Advances are presented by age
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 580,122,848.03 99.91 282,123,364.15 99.96
71
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
1 to 2 years (including 2 years) 521,555.14 0.09 88,505.90 0.03
2 to 3 years (including 3 years) 0.00 0.00 0.00 0.00
More than 3 years 23,100.00 0.00 23,100.00 0.01
Total 580,667,503.17 100.00 282,234,970.05 100.00
(2) Advance payment of the top five Ending Balances by prepaid objects
Ratio of the total ending balance of
Debtor Name Ending Balance
prepayments (%)
Hong Kong Yuheng Industrial Co., Ltd 217,529,005.27 37.46
SINO Grain Oil Co., Ltd 128,113,768.73 22.06
Tianjin Port Customs of the People's Republic of China 42,576,851.75 7.33
APICAL (MALAYSIA) SDN. BHD. 38,609,493.90 6.65
Anhui Anliang International Development Co., Ltd 22,476,160.00 3.87
Total 449,305,279.65 77.38
7. Other Receivables
(1) Overview
A Classification
Item(s) Ending Balance Beginning Balance
Interest Receivable
Dividend Receivable
Other Receivables 88,750,805.46 541,905,656.97
Total 88,750,805.46 541,905,656.97
(2) Other Receivable
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 87,538,405.21
Among them: Within the credit (within 3 months) 27,554,116.61
Credit period to 1 year 59,984,288.60
1 to 2 years (including 2 years) 273,797.85
2 to 3 years (including 3 years) 452,400.00
3 to 4 years (including 4 years) 162,665.99
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Aging Ending Balance
4 to 5 years (including 5 years) 30,000.00
More than 5 years 350,000.00
Total 88,807,269.05
B. Classification by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Guaranteed Deposit and Deposit 51,999,954.07 535,330,041.21
Intercourse Funds of Units 35,905,866.03 5,472,834.58
Tax Refund Receivables 302,433.21
Employee Receivables 535,230.87 532,115.87
Personal Intercourse Funds 50,000.00 50,000.00
Others 316,218.08 274,695.69
Total 88,807,269.05 541,962,120.56
C. Details about allowance for bad debt
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 2021 6,463.59 50,000.00 56,463.59
Carrying amount on 1st January
2021 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 changes
Amount on 31st June 2021 6,463.59 50,000.00 56,463.59
D. Details of bad debt provision
Carrying Amount changes for the period Carrying
73
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
amount at the Addition Withdrawal or Write- Other amount at
Type beginning reversal off changes the end
Credit impairment 56,463.59 56,463.59
loss
Total 56,463.59 56,463.59
E. Other receivables actually written off in the current period
The Company has no other receivables actually written off during the reporting period.
F. Other receivables according to top five of balance at end of period collected by debtors
Proportion in
Ending balance
Balance at End of overall ending
Name of Organization Nature of Funds Aging of bad debt
Period balance of other
reserves
receivables (%)
Guaranteed
Dalian Commodity Exchange Deposit and 26,911,000.00 Within 1 year 30.30
storage fees
CITIC Securities Co. Ltd Intercourse Funds
of Units 20,200,000.00 Within 3 months 22.75
China Chemical Engineering Construction fund
Fourth Construction Co., Ltd 8,280,628.80 Within 1 year 9.32
Zhongtian Futures Co. Ltd Futures margin
6,796,618.40 Within 3 months 7.65
ADM International Sarl Guaranteed
Deposit 6,457,800.00 Within 3 months 7.27
Total — 68,646,047.20 — 77.29
8. Inventory
(1) Inventory Category
Ending Balance Beginning Balance
Items
Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Raw Materials 292,709,433.37 0.00 292,709,433.37 303,448,302.51 303,448,302.51
Revolving
Materials 5,427,075.29 0.00 5,427,075.29 5,520,559.22 5,520,559.22
Goods and
materials in 136,142,338.47 0.00 136,142,338.47 36,413,482.38 36,413,482.38
transit
Inventory
goods 981,446,939.15 233,790.56 981,213,148.59 622,783,856.56 233,790.56 622,550,066.00
Development
costs 5,671,355.03 0.00 5,671,355.03 2,415,243.42 2,415,243.42
Developing
commodities 5,315,696.54 1,539,741.69 3,775,954.85 5,315,696.54 1,539,741.69 3,775,954.85
Commission
processing 5,410,589.00 0.00 5,410,589.00 2,762,633.88 2,762,633.88
Replacement of
oil reserve 169,170,956.67 0.00 169,170,956.67 248,197,500.00 248,197,500.00
Total 1,601,294,383.52 1,773,532.25 1,599,520,851.27 1,226,857,274.51 1,773,532.25 1,225,083,742.26
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
74
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Increased Amounts in Decreased Amounts in the Current
the Current Period Period
Items Balance at Beginning of Year Balance at End of Period
Recover or
Accrual Others Others
Charge Off
Inventory goods 233,790.56 233,790.56
Developing
commodities 1,539,741.69 1,539,741.69
In total 1,773,532.25 1,773,532.25
(3) Stock Goods listed by major product type
Ending Balance Beginning Balance
Items Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Grease
967,544,017.24 233,790.56 967,310,226.68 594,886,731.71 233,790.56 594,652,941.15
and oils
Food 13,872,860.49 13,872,860.49 27,880,182.78 27,880,182.78
Others 30,061.42 30,061.42 16,942.07 16,942.07
Total 981,446,939.15 233,790.56 981,213,148.59 622,783,856.56 233,790.56 622,550,066.00
9. Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Financial Products 280,000,000.00
Pre-paid Taxes and Fees 36,255,131.26 16,921,026.50
Pending Deduct VAT Input Tax 42,987,706.38 46,701,271.74
Fair Value Changes of Items Trapped at
Hedging 153,428,194.75 501,828,380.12
In total 232,671,032.39 845,450,678.36
10 Long-term Equity Investment
Increase or Decrease in the Current Period
Balance at
Invested Unit Additional Confirmed Profit and Loss on
Beginning of Year Negative Investment
Investment Investment under Equity Law
1.Cooperative Enterprise
CP Group 90,824,898.49 10,149,043.57
Sub-total 90,824,898.49 10,149,043.57
2. Joint Venture
China Grain Reserves (Tianjin)
119,601,316.43 15,827,465.77
Warehouse Logistics Co., Ltd.
Jingliang Miss Me Food
7,336,272.87
Management (Tianjin) Limited
Sub-total 126,937,589.30 15,827,465.77
Total 217,762,487.79 25,976,509.34
(Continued)
Increase or Decrease in the Current Period Balance at End Ending Balance
75
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
of Period of Impairment
Adjustment of other Other Announce to Accrual of
Reserves
comprehensive changes in Distribute Case Impairment Others
income equity Dividends or Profits Reserves
100,973,942.06
100,973,942.06
-24,680,000.00 110,748,782.20
7,336,272.87
-24,680,000.00 118,085,055.07
-24,680,000.00 219,058,997.13
11. Other equity instruments investment
Beginning
Item
Ending Balance Balance
Chongqing long jinbao network technology co. LTD
20,000,000.00 20,000,000.00
Total
20,000,000.00 20,000,000.00
12. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Projects under
Items Buildings Land Use Right Total
Construction
One. Original Book Value 53,844,801.60 53,844,801.60
1. Balance at Beginning of Year 53,844,801.60 53,844,801.60
2. Increased Amounts in the Current Period
(1) Outsourcing
(2) Inventory transfer
(3) Others
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 53,844,801.60 53,844,801.60
Two. Accumulated Impairment and Accumulated
Amortization
1. Balance at Beginning of Year 20,696,792.40 20,696,792.40
2. Increased Amounts in the Current Period 823,048.23 823,048.23
(1) Accrual or Amortization 823,048.23 823,048.23
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 21,519,840.63 21,519,840.63
Three. Impairment Reserves
1. Balance at Beginning of Year 10,587,796.70 10,587,796.70
2. Increased Amounts in the Current Period
(1) Accrual
(2) Inventory transfer
3. Decreased Amounts in the Current Period
(1) Disposal
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(2) Other transfer out
4. Balance at End of Period 10,587,796.70 10,587,796.70
Four. Book Value
1. Book Value at End of Period 21,737,164.27 21,737,164.27
2. Book Value at Beginning of Year 22,560,212.50 22,560,212.50
13. Fixed Assets
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Fixed Assets 1,088,582,627.48 1,131,143,854.07
Disposal of Fixed Assets
In total 1,088,582,627.48 1,131,143,854.07
(2) Fixed Assets
A. Fixed Assets Situation
Machinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
One. Original Book Value
1. Balance at
1,077,152,030.43 375,930,011.58 19,483,651.03 18,604,521.98 2,162,857.53 376,615,641.86 1,869,948,714.41
Beginning of Year
2. Increased Amounts in the
585,466.98 4,676,884.95 1,960,562.82 595,093.67 1,368,780.61 1,401,446.00 10,588,235.03
Current Period
(1) Purchase 558,116.55 2,398,808.93 746,700.89 595,093.67 164,981.74 753,006.08 5,216,707.86
(2) Roll-in of Project under
0.00 0.00 0.00 0.00 0.00 554,778.74 554,778.74
Construction
(3) Others 27,350.43 2,278,076.02 1,213,861.93 0.00 1,203,798.87 93,661.18 4,816,748.43
3. Decreased Amounts in the
0.00 1,318,786.00 2,083,989.00 5,278,360.42 50,079 501,019.21 9,232,233.63
Current Period
(1) Disposal or Scrap 0.00 1,318,786.00 2,083,989.00 5,278,360.42 50,079 501,019.21 9,232,233.63
4. Balance at End of Period 1,077,737,497.41 379,288,110.53 19,360,224.85 13,921,255.23 3,481,559.14 377,516,068.65 1,871,304,715.81
Two. Accumulated
Impairment
1. Balance at Beginning of
338,617,240.31 180,649,435.37 13,179,762.44 12,411,204.09 1,554,574.37 184,807,601.28 731,219,817.86
Year
2. Increased Amounts in the
19,931,006.66 16,894,163.19 1,274,573.68 809,355.87 1,072,538.63 11,460,465.81 51,442,103.84
Current Period
(1) Accrual 19,931,006.66 16,894,163.19 1,274,573.68 809,355.87 1,072,538.63 11,460,465.81 51,442,103.84
3. Decreased Amounts in the
0.00 1,089,276.48 1,952,600.89 4,227,808.92 48913.03 204,364.09 7,522,963.41
Current Period
(1) Disposal or Scrap 0.00 1,089,276.48 1,952,600.89 4,227,808.92 48913.03 204,364.09 7,522,963.41
4. Balance at End of Period 358,548,246.97 196,454,322.08 12,501,735.23 8,992,751.04 2,578,199.97 196,063,703.00 775,138,958.29
Three. Impairment Reserves
1. Balance at Beginning of
7,499,295.92 85,746.56 0.00 0.00 0.00 0.00 7,585,042.48
Year
2. Increased Amounts in the
8,921.52 0.00 0.00 0.00 0.00 0.00 8,921.52
Current Period
(1) Accrual 8,921.52 0.00 0.00 0.00 0.00 0.00 8,921.52
3. Decreased Amounts in the
0.00 10,833.96 0.00 0.00 0.00 0.00 10,833.96
Current Period
(1) Disposal or Scrap 0.00 10,833.96 0.00 0.00 0.00 0.00 10,833.96
4. Balance at End of Period 7,508,217.44 74,912.60 0.00 0.00 0.00 0.00 7,583,130.04
Four. Book Value
1. Book Value at End of
711,681,033.00 182,758,875.85 6,858,489.62 4,928,504.19 903,359.17 181,452,365.65 1,088,582,627.48
Period
2. Book Value at Beginning of
731,035,494.20 195,194,829.65 6,303,888.59 6,193,317.89 608,283.16 191,808,040.58 1,131,143,854.07
Year
77
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(2) Fixed assets without property right certificate
Project Book Value Reasons for failure to complete certificate of title
Buildings 6,755,694.68 No title certificate for auxiliary assets
14. Project under Construction
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
35,262,660.08 28,458,413.67
Project under Construction
Engineering materials
35,262,660.08 28,458,413.67
Total
(2) Project under Construction
A. Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items Impairme
Impairment
Book Balance nt Book Value Book Balance Book Value
Reserves
Reserves
1. roasted potato supporting automation
7,062,391.71 7,062,391.71 6,986,820.05 6,986,820.05
line project
2. Walnut cake production line of No.2
1,427,450.33 1,427,450.33 4,780,643.33 4,780,643.33
plant
3. slope treatment project of No.3 plant 3,565,377.15 3,565,377.15 3,565,377.15 3,565,377.15
4. add two 4D Corn Flake production
830,116.22 830,116.22 3,207,668.25 3,207,668.25
lines
5. 32,400 tons of oil tank and terminal oil
17,697,673.43 17,697,673.43 2,869,993.38 2,869,993.38
pipeline project
6. 2600bph project of packaging oil 10L
2,809,734.52 2,809,734.52 2,809,734.52 2,809,734.52
production line
7. New production line of small fried
compound potato chips in leisure No.1 408,286.49 408,286.49 1,784,537.82 1,784,537.82
Factory
8. Fried potato chips automation
1,461,630.23 1,461,630.23 2,453,639.17 2,453,639.17
transformation project and others
In total 35,262,660.08 35,262,660.08 28,458,413.67 28,458,413.67
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Balance at Increased Roll-in Fixed Other Decreased
Balance at End of
Project Name Beginning of Amounts in the Assets Amount in Amounts in the
Period
Year Current Period the Current Period Current Period
Walnut cake production line of
4,780,643.33 14,807.00 3,368,000.00 1,427,450.33
No.2 factory
Slope treatment project of No.3
3,565,377.15 3,565,377.15
Factory
Two new 4D Corn Flake
3,207,668.25 532,967.97 2,910,520.00 830,116.22
production lines
32400 ton oil tank and wharf oil
2,869,993.38 14,827,680.05 17,697,673.43
pipeline project
2600bph project of packaging oil
2,809,734.52 2,809,734.52
10L production line
78
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Renovation project of Maishao
packaging automation and blasting 226,950.63 226,950.63
machine
Total 17,460,367.26 15,375,455.02 6,278,520.00 26,557,302.28
15. Right of Use Assets
Items Buildings Others Total
One. Original Book Value
1. Balance at Beginning of Year 2,614,541.09 108,248.00 2,722,789.09
2. Increased Amounts in the Current Period 232,751.51 232,751.51
(1) Lease 232,751.51 232,751.51
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period 2,847,292.60 108,248.00 2,955,540.60
Two. Accumulated Impairment
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period 444,497.31 38,205.18 482,702.49
(1) Accrual 444,497.31 38,205.18 482,702.49
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period 444,497.31 38,205.18 482,702.49
Three. Impairment Reserves
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period
(1) Accrual
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period
Four. Book Value
1. Book Value at End of Period 2,402,795.29 70,042.82 2,472,838.11
2. Book Value at Beginning of Year 2,614,541.09 108,248.00 2,722,789.09
16. 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 4,333,374.75 316,407,869.54 154,841,200.00 689,220.00 476,271,664.29
2. Increased Amounts in the Current Period 36,253.96 36,253.96
(1) Purchase 36,253.96 36,253.96
(2) Internal R&D
(3) Business mergers increased
3. Decreased Amounts in the Current Period
(1) Disposal 26,820.00 26,820.00
4. Balance at End of Period 4,369,628.71 316,407,869.54 154,841,200.00 662,400.00 476,281,098.25
Two Accumulated Amortization
79
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Software Land Use Right Trademark Right Others In total
1. Balance at Beginning of Year 3,597,758.64 61,830,987.64 56,035,371.69 5,811.00 121,469,928.97
2. Increased Amounts in the Current Period 403,006.92 3,176,743.55 3,856,962.93 7,436,713.40
(1) Accrual 403,006.92 3,176,743.55 3,856,962.93 7,436,713.40
3. Decreased Amounts in the Current Period 5,811.00 5,811.00
(1) Disposal 5,811.00 5,811.00
4. Balance at End of Period 4,000,765.56 65,007,731.19 59,892,334.62 128,900,831.37
Three Impairment Reserves
1. Balance at Beginning of Year 662,400.00 662,400.00
2. Increased Amounts in the Current Period
(1) Accrual
3. Decreased Amounts in the Current Period
(1) Disposal
4. Balance at End of Period 662,400.00 662,400.00
Four Book Value
1. Book Value at End of Period 368,863.15 251,400,138.35 94,948,865.38 346,717,866.88
2. Book Value at Beginning of Year 735,616.11 254,576,881.90 98,805,828.31 21,009.00 354,139,335.32
17. Goodwill
(1) Original Book Value of Goodwill
Balance at Increase in the Current Period Decrease in the Current Period
Name of Invested Unit or Balance at End of
Beginning of
Items Forming Goodwill Formed by Enterprise Period
Year Others Disposal Others
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
The reputation is mainly formed by the equity acquisition of Zhejiang Little Prince Food Co., Ltd, which is
made of fixed assets, investment real estate, intangible assets, construction in process, ect.
18. Long-term Unamortized Expenses
Increased Other
Balance at Amortized Amounts Balance at End of
Items Amounts in the Decreased
Beginning of Year in the Current Period Period
Current Period Amounts
Reconstruction of Majuqiao plant 14,888,320.13 337,094.04 14,551,226.09
Linan spring garden woodland rental
4,970,592.00 56,484.00 4,914,108.00
fees
Aisen green treasure Company housing
141,020.52 8,819.34 132,201.18
renovation
Ancient coin branch car rental fee 94,028.99 11,753.64 82,275.35
Amortization of laboratory decoration
431,242.20 240,594.06 32,485.43 639,350.83
costs
Office decoration 4,397.66 4,397.66 0.00
Total 20,529,601.50 240,594.06 451,034.11 20,319,161.45
19. Deferred Income Tax Assets/Deferred Income Tax Liabilities
80
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(1) 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 329,661.60 82,415.40 254,446.99 63,611.73
Deductible Loss 5,789,804.01 1,447,451.00 30,360,671.96 7,590,167.99
Credit impairment Loss 1,229,052.40 307,263.10 1,368,158.01 341,929.04
Deferred Income 10,722,337.40 2,680,584.35 10,722,337.40 2,680,584.35
Valuation of Financial Instruments and
5,677,134.00 1,419,283.50
Derivative Financial Instruments
Credit impairment Loss 47,389,986.68 11,847,496.67 5,677,134.00 1,419,283.50
In total 71,137,976.09 17,784,494.02 48,382,748.36 12,095,576.61
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items
Taxable TemporaryDeferred Income TaxTaxable TemporaryDeferred Income Tax
Difference Liabilities Difference Liabilities
Valuation and appreciation of
assets in merger of enterprises
159,693,033.00 39,923,258.25 164,849,010.97 41,212,252.73
not under the same control
Valuation of Financial
Instruments and Derivative
178,608,829.52 44,652,207.38 130,600,895.97 32,652,310.83
Financial Instruments
In total 338,301,862.52 84,575,465.63 295,449,906.94 73,864,563.56
(3) Details of Deferred Income Tax Liabilities after Offset
Carrying amount after
Carrying amount after offseting amount of
Offseting amount of offsetting between
offsetting between deferred tax assets and
Items deferred tax assets deferred tax assets and
deferred tax assets and liabilities at the end of last
and liabilities liabilitie at the end of last
liabilities period
period
Deferred tax asset 2,606,045.35 15,178,448.67 8,748,762.34 3,346,814.27
Deferred tax liabilities 2,606,045.35 81,969,420.28 8,748,762.34 65,115,801.22
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible Loss 33,884.15 33,884.15
Deductible temporary differences 100,604,379.80 100,248,841.85
In total 100,638,263.95 100,282,726.00
(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
2021 4,504,020.42
2022 4,030,889.63 4,030,889.63
2023 19,123,515.53 19,123,515.53
2024 47,484,926.46 47,484,926.46
2025 25,105,489.81 25,105,489.81
2026 4,859,558.37
81
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Year Balance at End of Period Balance at Beginning of Year Notes
Total 100,604,379.80 100,248,841.85
20. Other Non-current Assets
Ending Balance Beginning Balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Equipment and
2,517,240.00 2,517,240.00
Project Funds
Three-year term
366,752,446.74 366,752,446.74 317,222,341.67 317,222,341.67
deposit
Total 366,752,446.74 366,752,446.74 319,739,581.67 319,739,581.67
21. Short-term Borrowings
(1) Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Pledge loan
Mortgage loan
Guaranteed Loan 105,088,229.17
Fiduciary Loan 1,722,856,775.38 1,392,325,849.88
In total 1,722,856,775.38 1,497,414,079.05
22. Derivative financial liability
Item
Ending balance Beginning balance
Changes in fair value of hedging instruments
371,219,136.84
Total
371,219,136.84
23. Accounts Payable
(1). Accounts Payable Listed
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 125,240,425.73 60,908,293.40
Project Funds Payable 4,432,983.56 12,181,233.26
Equipment Funds Payable 820,054.00 1,182,750.00
Short-term rental rent payable 1,055,100.00
Storage Fee 951,999.90
Others 1,664,288.39 1,111,798.73
In total 134,164,851.58 75,384,075.39
24. Account Collected in Advance
(1) Account Collected in Advance list
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1,462,678.11 1,087,874.02
82
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Balance at End of Period Balance at Beginning of Year
In total 1,462,678.11 1,087,874.02
25. Contract liabilities
(1) Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 528,793,781.94 341,860,984.30
Service payment 5,013,276.60 5,013,276.60
In total 533,807,058.54 346,874,260.90
26. Wages Payable
(1) List of Wages Payable
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
One Short-term Compensation 32,098,807.71 132,482,495.06 152,429,453.01 12,151,849.76
Two After-service Welfare- Set up ESP
1,246,329.23 13,954,391.98 13,642,589.56 1,558,131.65
liabilities
Three Dismission Welfare 449,429.50 449,429.50
Four Other benefits due within one year
In total 33,345,136.94 146,886,316.54 166,521,472.07 13,709,981.41
(2) List of Short-term Compensation
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Wage, Bonus, Allowance and
28,101,795.99 103,722,699.31 123,807,432.05 8,017,063.25
Subsidy
2. Welfare Expense of Employee 20.00 3,763,650.36 3,626,269.36 137,401.00
3. Social Insurance Expense 683,142.38 9,208,899.95 9,095,940.17 796,102.16
Among them: Medical Insurance
579,700.06 8,415,916.25 8,293,916.35 701,699.96
Premiums
Industrial Injury Insurance Premiums 52,319.34 464,299.02 458,458.64 58,159.72
Birth Insurance Premiums 50,718.04 214,872.75 229,753.25 35,837.54
Others 404.94 113,811.93 113,811.93 404.94
4. Housing Provident Funds 328,343.85 7,254,473.25 7,405,536.25 177,280.85
5. Labor Union Expense and Personnel
2,985,505.49 2,189,541.97 2,365,705.63 2,809,341.83
Education Fund
6. Short-term Compensated Absences
7. Short-term profit sharing plan
8. Other short-term remuneration 6,343,230.22 6,128,569.55 214,660.67
In total 32,098,807.71 132,482,495.06 152,429,453.01 12,151,849.76
(3) List of Stated Drawings Plan
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Basic Pension Insurance 1,173,795.55 12,475,630.78 12,179,730.08 1,469,696.25
2. Unemployment Insurance Expense 36,450.79 476,575.29 470,248.04 42,778.04
3. Enterprise Annuity Charges 36,082.89 1,001,685.91 992,111.44 45,657.36
4. Other 500.00 500.00
83
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Total 1,246,329.23 13,954,391.98 13,642,589.56 1,558,131.65
27. Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
Corporate Income Tax 41,280,422.13 21,972,563.71
VAT 18,335,520.37 20,557,653.24
Urban Maintenance and Construction Tax 1,323,227.73 1,662,803.83
House Property Tax 2,054,119.79 2,330,072.39
Land Use Tax 1,021,504.39 1,203,859.39
Individual Income Tax 180,633.69 1,681,176.51
Educational Surtax 521,545.35 663,399.57
Local Educational Surtax 399,839.96 494,409.45
Stamp Tax 396,419.42 314,395.32
Environmental protection tax 3,130.92 3,737.44
Water conservancy construction fee 143.79
In total 65,516,363.75 50,884,214.64
28. Other Accounts Payable
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 21,082,795.47 21,082,795.47
Dividends Payable 11,013,302.88 11,013,302.88
Other Accounts Payable 81,727,855.24 40,196,782.89
In total 113,823,953.59 72,292,881.24
(2) Interest Payable
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Interest on long-term loans with interest paid by
installments and principal paid at maturity
Interest payable on short term loans
Loan Interest between Enterprises 21,082,795.47 21,082,795.47
In total 21,082,795.47 21,082,795.47
(3) Dividends Payable
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Common stock dividends 7,800,000.00 7,800,000.00
Others 3,213,302.88 3,213,302.88
In total 11,013,302.88 11,013,302.88
(4) Other Accounts Payable
A. List of Other Accounts Payable by Nature of Funds
Items Balance at End of Period Balance at Beginning of Year
Intercourse Funds of Related Parties 2,708,699.21 1,831,079.90
Intercourse Funds between Units 43,159,282.35 13,468,108.09
Personal Intercourse Funds 3,352,982.86 4,025,881.59
Guaranteed Deposit and Deposit 30,430,944.78 16,271,518.35
Various Insurances of Employee 1,539,145.44 2,102,370.03
84
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Balance at End of Period Balance at Beginning of Year
Others 536,800.60 2,497,824.93
In total 81,727,855.24 40,196,782.89
29. Other current liability
(1) Other current liability statement
Item End balance Beginning balance
Value-added tax to be written off 30,305,027.90 8,319,696.79
Changes in the fair value of hedging hedged
items 101,746,226.67
Total 132,051,254.57 8,319,696.79
30. Long-term loan
Items Balance at End of Period Balance at Beginning of Year
Pledge borrowing
Mortgage borrowing
Guaranteed borrowing
Credit borrowing 71,000,000.00
In total 71,000,000.00
31. Lease Liabilities
Items Balance at End of Period Balance at Beginning of Year
Accounts Payable of operating lease
2,425,606.75 2,614,541.09
In total
2,425,606.75 2,614,541.09
32. Long term wage payable
(1) List of long-term wage payable
Items Balance at End of Period Balance at Beginning of Year
Net liabilities of defined benefit plan in
post employment benefits
Dismission Welfare
Other Long-term Welfare 5,677,134.00 5,677,134.00
In total 5,677,134.00 5,677,134.00
33. Deferred Income
Balance at Beginning Increase in the Decrease in the Cause of
Items Balance at End of Period
of Year Current Period Current Period Formation
Government Subsidy 68,716,699.34 946,223.34 67,770,476.00
In total 68,716,699.34 946,223.34 67,770,476.00 --
Among them， items involving government subsidy
Asset
Balance at Increase in Charge to Non-
Charge to Other Balance at related /
Items Receiving Subsidy Beginning of the Current operating
other Profits changes End of Period income
Year Period Income
related
Enterprise foundation
supporting in the construction
Asset
stage of "Tianjin Lingang 49,929,123.61 638,752.08 49,290,371.53
related
Industrial Zone Management
Committee"
Special subsidy for 10,296,486.90 10,296,486.90 Asset
85
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Asset
Balance at Increase in Charge to Non-
Charge to Other Balance at related /
Items Receiving Subsidy Beginning of the Current operating
other Profits changes End of Period income
Year Period Income
related
infrastructure investment related
Asset
The relocation compensation 4,232,401.96 4,232,401.96
related
Tianjin Binhai New District’s
Industrially Technical
Renovation and Park Asset
2,092,592.45 111,111.12 1,981,481.33
Construction Funds as well as related
Expenditures for Science and
Technology
Special subsidies for technical Asset
450,000.00 450,000.00
upgrading of production lines related
Key technology research and
industrialization project of Asset
778,388.24 38,919.42 739,468.82
"moderate processing" of grain related
and oil
Construction of provincial grain
reserve information Asset
633,746.30 100,343.16 533,403.14
management system to form related
asset entry project
Research and technology
demonstration of green and Asset
243,569.92 28,000.02 215,569.90
clean production equipment and related
process for edible oil
Design of electric heating Asset
60,389.96 29,097.54 31,292.42
system for oil tank related
In total 68,716,699.34 946,223.34 67,770,476.00 --
34. Share Capital
Changes in the Current Period（+、-）
Balance at Share Balance at End of
Items Beginning of New Share Share Transfer of
Others Sub-total Period
Year Issue Donation Provident
Fund
1. Shares with
207,336,985.00 -164,877,598.00 -164,877,598.00 42,459,387.00
Restricted Conditions
(1) State Shareholding
(2) State-owned
Legal-person 164,877,598.00 -164,728,098.00 -164,728,098.00 149,500.00
Shareholding
(3) Other Domestic
42,459,387.00 -149,500.00 -149,500.00 42,309,887.00
Capital Shareholding
Including: Domestic
Legal-person 1,299,500.00 -149,500.00 -149,500.00 1,150,000.00
Shareholding
Domestic Natural
41,159,887.00 41,159,887.00
Person Shareholding
(4) Foreign
Shareholding
Including: Foreign
Legal-person
Shareholding
Foreign Natural
Person Shareholding
2. Tradable Shares
without Restricted 519,613,266.00 164,877,598.00 164,877,598.00 684,490,864.00
Conditions
86
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Changes in the Current Period（+、-）
Balance at Share Balance at End of
Items Beginning of New Share Share Transfer of
Others Sub-total Period
Year Issue Donation Provident
Fund
(1) RMB Ordinary
454,638,266.00 164,877,598.00 164,877,598.00 619,515,864.00
Shares
(2) Domestically
64,975,000.00 64,975,000.00
Listed Foreign Shares
(3) Listed Foreign
Shares Overseas
(4) Others
In total 726,950,251.00 0.00 0.00 726,950,251.00
35. Capital Reserves
Balance at Beginning of Increase in the Current Decrease in the Current Balance at End of
Items
Year Period Period Period
Capital Premium (Stock
1,322,887,986.38 1,322,887,986.38
Premium)
Other Capital Reserves 351,940,364.57 351,940,364.57
In total 1,674,828,350.95 1,674,828,350.95
36. Other Comprehensive Incomes
Amounts Occurred in the Current Period
Amou Less: included
nts in other
Less: Other
Occur comprehensiv
Comprehensiv Attributa
red e income in Less:
e Incomes Attributabl ble to
Balance at before the previous Income Balance at
Items Charged at e to Parent Minority
Beginning Incom period and Tax End of
Earlier Stage Company Sharehol
of Year e Tax transferred to Expens Period
and Current After Tax ders
in the retained e
Roll-in Profit After Tax
Curre income in the
and Loss
nt current period
Period
One Other
comprehensiv
e incomes that
won’t be
classified into
profit and loss
1. Remeasure
and set the
change
amount of
benefit plan
2. Other
comprehensiv
e income that
cannot be
transferred to
profits and
losses under
the equity
method
3. Changes in
the fair value
of other equity
instrument
investments
87
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Amounts Occurred in the Current Period
Amou Less: included
nts in other
Less: Other
Occur comprehensiv
Comprehensiv Attributa
red e income in Less:
e Incomes Attributabl ble to
Balance at before the previous Income Balance at
Items Charged at e to Parent Minority
Beginning Incom period and Tax End of
Earlier Stage Company Sharehol
of Year e Tax transferred to Expens Period
and Current After Tax ders
in the retained e
Roll-in Profit After Tax
Curre income in the
and Loss
nt current period
Period
4. Changes in
fair value of
the
enterprise's
own credit
risk
Two Other
comprehensiv
e incomes that
-363,258.66 -80,447.42 -443,706.08
will be
classified into
profit and loss
1. Other
comprehensiv
e income
transferable to -355,212.00 -355,212.00
profit and loss
under the
equity method
2. Changes in
the fair value
of other debt
investments
3. Amount of
financial
assets
reclassified
into other
comprehensiv
e income
4. Provision
for credit
impairment of
other debt
investment
5. Effective
part of cash
flow hedging
6. Converted
difference
between
foreign -8,046.66 -80,447.42 -88,494.08
currency
financial
statements
Total -363,258.66 -80,447.42 -443,706.08
37. Surplus Reserves
Items Balance at Beginning of Year Increase in the Current Period Decrease in the Current Period Balance at End of Period
Statutory
Surplus 84,487,609.05 84,487,609.05
Reserves
88
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Balance at Beginning of Year Increase in the Current Period Decrease in the Current Period Balance at End of Period
Free Surplus
37,634,827.93 37,634,827.93
Reserves
In total 122,122,436.98 122,122,436.98
38. Undistributed Profit
Amounts in
Amounts in the
Items the Prior
Current Period
Period
Adjustment on undistributed profit at end of last year 187,033,763.26 2,186,806.56
Adjustment on total number of undistributed profit at beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 187,033,763.26 2,186,806.56
Add: net profit attributable to parent Company in the current period 88,328,197.91 73,762,895.19
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 275,361,961.17 75,949,701.75
39. Operation Revenue and Operation Cost
(1) Operation Revenue and Operation Cost
Amounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Prime Business 5,314,299,316.84 5,095,458,647.50 3,737,897,021.63 3,352,581,703.86
Other Business 13,947,518.99 4,086,340.91 12,876,046.00 3,619,554.20
In total 5,328,246,835.83 5,099,544,988.41 3,750,773,067.63 3,356,201,258.06
(2) 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 and Oil Seeds 4,869,341,487.59 4,764,017,743.17 3,288,905,719.04 3,046,368,506.47
Food Processing 444,957,829.25 331,440,904.33 448,991,302.59 306,213,197.39
In total 5,314,299,316.84 5,095,458,647.50 3,737,897,021.63 3,352,581,703.86
(3) Prime Business (Region-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Region
Revenue Cost Revenue Cost
North China 4,914,886,135.81 4,796,869,662.51 3,324,692,828.54 3,069,424,264.71
East China 334,001,372.42 245,689,750.46 345,482,036.95 233,630,691.51
Northeast 65,411,808.61 52,899,234.53 67,722,156.14 49,526,747.64
In total 5,314,299,316.84 5,095,458,647.50 3,737,897,021.63 3,352,581,703.86
40. Tariff and Annex
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 3,913,915.24 2,548,143.53
Educational Surtax 1,707,476.99 1,122,628.97
Local Educational Surtax 1,138,317.97 748,419.33
House Property tax 2,381,706.84 2,283,241.92
Land Use Tax 494,944.34 697,236.79
Stamp Tax 1,688,284.40 1,184,227.85
Vehicle and Vessel Use Tax 13,396.03 18,449.10
Resources Tax 4,790.20
Other Taxes and Fees 25,862.08 43,973.68
In total 11,363,903.89 8,651,111.37
41. Sales Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation (including social security, etc) 31,765,392.17 30,679,537.79
Sales Promotion Expenses 14,691,957.83 25,997,677.50
Transportation Fees 0.00 15,690,237.64
Warehousing Fees 6,167,549.59 15,404,986.89
Depreciation 6,696,732.33 8,297,585.79
Material consumption, sample and product cost 2,485,399.23 2,607,074.83
Travel Expenses 3,258,440.43 32,550.49
Repair Costs 306,168.70 196,031.21
Loading and Unloading Fees 715,023.09 733,797.56
Water and Electricity Fees 661,247.68 537,197.29
Vehicle Fees 483,097.45 288,457.98
Packing Expenses 87,852.52 377,669.68
Test and Detection Fees 82,360.64 92,866.07
Business Entertainment Expenses 130,610.36 12,124.00
Others 9,145,744.50 5,693,324.42
Total 76,677,576.52 106,641,119.14
42. Administration Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation (including social security, etc) 43,851,104.43 39,515,162.11
Impairment Costs 11,973,858.13 8,780,269.70
Amortization of Assets 4,901,086.37 7,640,013.04
Hiring an intermediary fee 3,847,980.48 6,913,392.38
Company Expenses 1,404,552.02 5,653,026.97
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Items Amounts in the Current Period Amounts in the Prior Period
Repair Costs 817,744.13 315,031.15
Lease fee 1,891,512.26 2,300,085.56
Vehicle Fees 1,204,195.24 1,171,579.21
Information Network Fees 213,966.44 546,524.14
Business Entertainment Expenses 602,406.43 530,321.82
Environmental Protection Fees 452,173.78 202,183.63
Commercial Insurance Expenses 419,856.67 249,530.18
Workers Insurance Expenses 364,967.31 191,201.44
Security Protection Fees 371,966.61 362,895.58
Labor Protection Fees 198,526.82 250,202.03
Material Consumption 183,533.95 178,299.87
Travel Expenses 498,287.95 168,024.21
Hire an intermediary fee Other Expenses 11,601,981.52 3,064,543.27
In total 84,799,700.54 78,032,286.29
43. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Research fees 5,170,755.15 2,803,717.02
In total 5,170,755.15 2,803,717.02
44. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 19,854,113.81 16,975,042.06
Less: Interest Income 5,408,203.94 5,373,488.21
Exchange Profit and Loss 25,480.77 10,647,837.51
Service Charges 1,149,403.55 561,292.42
In total 15,620,794.19 22,810,683.78
45. Other Profits
Amounts in the Current Amounts in the Prior
Items
Period Period
Government Subsidy Related to Daily Corporate Activities 5,839,070.44 4,891,100.00
Return of Service Charges of Withholding Individual Income Tax 586,991.10 155,848.84
In total 6,426,061.54 5,046,948.84
46. Investment Income
Amounts in the Current Amounts in the Prior
The source of the return on investment
Period Period
Long-term equity investment income accounted with equity method 25,976,509.34 6,947,778.68
The investment income of a financial asset measured at fair value and whose
changes are included in the current profit and loss during the holding period
Investment income obtained during the holding of transactional financial assets 607,342.87 1,919,322.71
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Amounts in the Current Amounts in the Prior
The source of the return on investment
Period Period
Investment income from disposal of wealth management products 4,663,045.87 7,828,824.60
Investment income of disposing trading financial assets
Others
Total 31,246,898.08 16,695,925.99
47. 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
Trading financial assets 61,697,730.47 -76,876,667.25
Including: income with changes in fair value generated by derivative
61,697,730.47 -76,876,667.25
financial instruments
Trading financial liabilities
Investment real estate measured by fair value
In total 61,697,730.47 -76,876,667.25
48. Assets Disposal Income
Items Amounts in the Current Period Amounts in the Prior Period
Gains or losses on disposal of fixed assets -58,126.00
Gains or losses on disposal of intangible assets -559.83
In total -58,685.83
49. Non-operating Income
(1) Classification
Amounts Charged to
Amounts in the Amounts in the Prior
Items Non-recurring Profit
Current Period Period
and Loss
Total non-current assets scrap gains: 63,990.38 63,990.38
Including: fixed assets scrap profit 63,990.38 63,990.38
profit from scrap of intangible assets
Donation Gains 10,000.00
Government Subsidy 87,991.62
Asset Inventory Surplus Gains
Relocation Compensation 49,231.02 127,712.82 49,231.02
Demand Compensation Income 1,040,420.14 45,892.72 1,040,420.14
Other Gains 125,472.26 417,842.66 125,472.26
In total 1,279,113.80 689,439.82 1,279,113.80
50. Non-operating Expenses
Amounts in the Current Amounts Charged to Non-
Items Amounts in the Prior Period
Period recurring Profit and Loss
Total loss on scrap of non current assets 174,235.08 125,166.92 174,235.08
Including: loss on scrap of fixed assets 174,235.08 125,166.92 174,235.08
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Amounts in the Current Amounts Charged to Non-
Items Amounts in the Prior Period
Period recurring Profit and Loss
loss on scrap of intangible assets
Donation Expenses 43,940.54
Inventory losses 24,500.00 24,500.00
Relocation Loss 51,705.77 117,085.86 51,705.77
Penalty expenditure 11,410.09 500.00 11,410.09
Compensation 1,015,309.53
Others 844.38 116,668.92 844.38
Total 262,695.32 1,418,671.77 262,695.32
51. 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 30,647,755.00 40,543,901.19
Deferred Income Tax Expenses 6,310,979.14 -16,082,069.33
Total 36,958,734.14 24,461,831.86
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the Current Amounts in the Prior
Items
Period Period
Total Profits 135,397,539.87 119,769,867.60
Income tax expenses calculated by statutory/applicable tax rate 33,849,384.97 21,377,859.59
Effect of subsidiary corporations being applicable to different tax rates -205,910.89 -163,343.19
Adjustment on effect of income tax in the prior period 69,840.82
Effect of Non-taxable Incomes -5,206,628.35 -818,108.22
Effect of Non-deductible cost, expense and loss 11,964.14
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
8,487,990.35 4,068,635.64
unconfirmed deferred income tax in the current period
Effect of addition
Others
-47,906.90 -3,211.96
Income Tax Expenses 36,958,734.14 24,461,831.86
52. Other comprehensive income items and their income tax impact and transferred to profit and loss
See details of ‘Appendix Six Notes on Items in Consolidated Financial Statements, 36 Other Comprehensive Incomes’
53. Notes to items related cash flow statement
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(1) Receiving other cash related to operation activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 21,322,392.80 21,078,496.81
Intercourse Funds of Other Units 68,948,398.19 126,023,625.30
Non-operating Income and other income 461,551.34 818,480.79
Interest Income 4,224,691.03 4,197,572.37
Future Margins 1,194,590,311.77 333,158,112.00
Others 7,011,863.15 3,357,922.87
Total 1,296,559,208.28 488,634,210.14
(2) Other Cash Payment Related to Operation Activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 1,581,282.06 1,285,132.00
Intercourse Funds of Other Units 1,036,471,337.77 385,951,971.50
Payment for Administration Expenses 12,020,073.04 11,735,512.89
Payment for Operating Expenses 17,754,375.04 28,815,251.90
Non-operating Expenses 108,141.65 1,089,682.49
Petty Cash Paid 478,289.75 302,932.58
Bank Charges 1,125,306.40 563,721.88
Others 9,848,614.49 5,045,373.28
In total 1,079,387,420.20 434,789,578.52
54. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Current Amounts in the Prior
Supplementary Materials
Period Period
1. Adjusting net accounting profit to operating cash flow
Net Profit 98,438,805.73 95,308,035.74
Add: Assets Impairment Reserves
Credit impairment loss
Fixed Assets Depreciation, Oil-and-gas Assets Depreciation and Productive
52,265,152.07 48,728,162.99
Biological Assets Depreciation
Amortization of Intangible Assets 7,436,713.40 7,396,651.55
Amortization of Long-term Deferred Expenses 451,034.11 468,031.78
Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term
58,685.83
Assets (Fill in profit with symbol “－”)
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) -174,235.08 125,166.92
Losses on Changes in Fair Value (Fill in profit with symbol “－”) -61,697,730.47 76,876,667.25
Financial Expenses (Fill in profit with symbol “－”) 19,879,594.58 27,622,879.57
Investment Losses (Fill in profit with symbol “－”) -31,246,898.08 -16,695,925.99
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) -11,734,401.87 -10,232,677.86
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol
16,853,619.06 -7,136,904.20
“－”)
Decrease in Inventory (Fill in increase with symbol “－”) -374,437,109.01 504,378,180.81
Decrease in Items of Operating Receivables (Fill in increase with symbol
206,404,522.78 -408,709,949.07
“－”)
Increase in Items of Operating Receivables (Fill in decrease with symbol
355,352,692.40 -131,032,498.73
“－”)
Others
Net Cash Flows from Operating Activities 277,850,445.45 187,095,820.76
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
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 778,877,443.37 570,017,788.15
Less: cash balance at beginning of period 334,389,017.41 555,097,777.21
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 444,488,425.96 14,920,010.94
(2) Composition of cash and cash equivalents
Items Balance at End of Period Balance at Beginning of Period
One Cash 778,877,443.37 334,389,017.41
Including: cash in stock 90,718.49 16,761.72
Bank deposit available for payment at any time 648,679,613.98 298,158,812.41
Other currency funds available for payment at any time 130,107,110.90 36,213,443.28
Deposits with central bank available for payment
Interbank deposit
Interbank placements
Two Cash Equivalents
Including: bond investment maturing within three months
Three Balance of Cash and Cash Equivalents at End of Period 778,877,443.37 334,389,017.41
Including: restricted cash and cash equivalents used by parent
Company or intra-group affiliates
55. Assets with restricted ownership or right to use
Items Book Value at End of Period Reasons being Restricted
Currency Funds 1,077,152.20 Arbitration freezing
Inventory 3,775,954.85 Loan Mortgage
Investment Real Estate 6,051,420.47 Loan Mortgage
Fixed Assets 1,926,344.90 Loan Mortgage
In total 12,830,872.42
Note: There is currency fund RMB 1,077,152.20 which has unfrozen on July 9th,2021
56. 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
Monetary fund 6,072,048.30 6.4601 39,226,039.22
Including: US Dollars 6,072,048.30 6.4601 39,226,039.22
Accounts receivable 613,962.28 6.4601 3,966,257.73
Including: US Dollars 613,962.28 6.4601 3,966,257.73
Advanced payment 11,668,087.35 6.4601 75,377,011.09
Including: US Dollars 11,668,087.35 6.4601 75,377,011.09
Other receivalbe 1,000,000.00 6.4601 6,460,100.00
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Balance of Foreign Balance of Converting to RMB
Items Exchange Rate Convert
Currency at End of Period at End of Period
Including: US Dollars 1,000,000.00 6.4601 6,460,100.00
Short-term loan 4,385,478.81 6.4601 28,330,631.66
Including: US Dollars 4,385,478.81 6.4601 28,330,631.66
Accounts Payable 83,790.00 6.4601 541,291.78
Including: US Dollars 83,790.00 6.4601 541,291.78
Contract Liabilities 3,014,448.97 6.4601 19,473,641.79
Including: US Dollars 3,014,448.97 6.4601 19,473,641.79
Other Payables 273,332.79 6.4601 1,765,757.16
Including: US Dollars 273,332.79 6.4601 1,765,757.16
(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.
57. Hedging items and related hedging instruments
Please refer to 3. Derivative financial liability under Section VI of the Notes.
58. Government Subsidies
(1) Basic conditions of government grants
Amount recorded in profit and
Type Amount Presentation item
loss
VAT return 4,016,218.89 Other income 4,016,218.89
Enterprise infrastructure supporting on
construction stage by Tianjin Harbor Industry 638,752.08 Other income 638,752.08
Zone Management Committee
Subsidies for training workers 389,400.00 Other income 389,400.00
Subsidies for employment stabilization 387,281.08 Other income 387,281.08
Fund on industury technology improvement &
Park construction by Tianjin Binhai New Area 111,111.12 Other income 111,111.12
and Expenditure on science technology
Asset account formed by provincial grain reserve
management information system 100,343.16 Other income 100,343.16
Job subsidy for the employment center of the
Disabled Union 88,717.13 Other income 88,717.13
Industrial project on key-tech research of grain
and oil “processing adaptation” 38,919,42 Other income 38,919.42
Allotment on Electric Heating System for Oil
Tank System 29,097.54 Other income 29,097.54
Green cleaning producing equipment for edible
oil and tech-research and science demonstration 28,000.02 Other income 28,000.02
Subsidies for social insurance 9,600.00 Other income 9,600.00
Subsidies for grain and oil market testing 1,350.00 Other income 1,350.00
Preferential tax control system 280.00 Other income 280.00
Total 5,839,070.44 5,839,070.44
VII. Change in Consolidation Scope
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
The Company has no change in the scope of merger during this reporting period.
VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Principle Shareholding Ratio (%)
Name of Registered Nature of Voting rights Mode of
Place of
Subsidiary Place Business Direct Indirect ratio (%) Acquisition
Business
Beijing Merger under
Investment
Jingliang Food Beijing Beijing 100 100 the same
management
Co., Ltd. control
Jingliang Agricultural
Merger under
(Tianjin) Grain Product and
Tianjin Tianjin 70 70 the same
and Oil Industry By Product
control
Co., Ltd. Processing
Beijing Merger under
Grain and oil
Jingliang Oil Beijing Beijing 100 100 the same
trade
and Fat Co., Ltd. control
Jingliang
Farm and Merger under
(Hebei) Oil
Hebei Hebei Sideline Food 51 51 the same
Industry Co.,
Processing control
Ltd.
Beijing Guchuan Merger under
Grain and oil
Edible Oil Co., Beijing Beijing 100 100 the same
trade
Ltd. control
Beijing Eisen- Farm and Merger under
Lubao Oil Co., Beijing Beijing Sideline Food 100 100 the same
Ltd. Processing control
Beijing
Merger under
Tianweikang Oil
Beijing Beijing Warehousing 100 100 the same
Distribution
control
Center Co., Ltd.
Beijing Guchuan Merger under
Food
Bread Food Co., Beijing Beijing 100 100 the same
Processing
Ltd. control
Zhejiang Xiao Combination
Food
Wang Zi Food Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Processing
Co., Ltd. same control
Hangzhou
Combination
Lin'an Food
Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Xiaotianshi Processing
same control
Food Co., Ltd.
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Liaoning Xiao Combination
Food
Wang Zi Food Liaoning Liaoning 17.6794 77.2072 94.8866 not under
Processing
Co., Ltd. same control
Linqing Xiao Combination
Food
Wang Zi Food Linqing Linqing 17.6794 77.2072 94.8866 not under
Processing
Co., Ltd. same control
Lin'an
Chunmanyuan Combination
Food
Agricultural Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Processing
Development same control
Co., Ltd.
Jingliang
(Singapore) Establishment
Singapore Singapore Grain trade 100 100
International by investment
Trade Co., Ltd.
Jingliang Rural
Complex
Land Establishment
Construction Xinyi Xinyi 51 51
remediation by investment
and Operations
(Xinyi) Co., Ltd.
Jingliang
(Caofeidian)
Establishment
Agricultural Tangshan Tangshan Plantation 51 51
by investment
Development
Co., Ltd.
Beijing
jingliang gubi Grain and oil Establishment
Beijing Beijing 100 100
oil and grease trade by investment
co. LTD
(2) Major non-wholly-owned subsidiaries
Profit And Loss Dividends
Balance of Minority
Shareholding Voting rights ratio Attributable to Distributed to
Name of Shareholder's
Ratio of Minority of Minority Minority Minority
Subsidiary Equity at the End of
Shareholders (%) Shareholders (%) Shareholders for Shareholders for
the Period
the Current Period the Current Period
Zhejiang Xiao
Wang Zi Food 5.1134 5.1134 2,525,198.34 50,994,568.52
Co., Ltd.
Jingliang (Tianjin)
Grain and Oil 30 30 7,779,000.00 273,039,839.72
Industry Co., Ltd.
(3) Important financial information on major non-wholly-owned subsidiaries
Ending balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.
Current Assets
366,155,906.90 1,452,913,188.33
Non-current Assets
625,771,532.39 776,598,031.40
Total Assets
991,927,439.29 2,229,511,219.73
Current Liabilities 105,125,445.57 1,227,294,364.60
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Ending balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.
Non-current Liabilities
20,656,022.86 92,084,211.66
Total Liabilities
125,781,468.43 1,319,378,576.26
Operating Income
400,535,661.71 2,066,464,701.05
Net Profit (Loss)
42,774,753.04 25,929,844.42
Total Comprehensive Income
42,774,753.04 25,929,844.42
Cash Flow from Operating
Activities 21,727,662.43 424,430,320.67
(Continued)
Beginning balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.
Current Assets
348,212,958.32 1,451,014,894.50
Non-current Assets
636,041,329.78 784,620,786.80
Total Assets
984,254,288.10 2,235,635,681.30
Current Liabilities 140,227,047.42 1,283,603,409.67
Non-current Liabilities
20,656,022.86 67,829,472.58
Total Liabilities
160,883,070.28 1,351,432,882.25
Operating Income
414,085,161.70 1,588,794,595.18
Net Profit (Loss)
59,576,702.97 30,337,553.63
Total Comprehensive Income
59,576,702.97 30,337,553.63
Cash Flow from Operating
Activities 68,355,787.51 -226,038,764.17
2. Equity in Joint Ventures or Affiliates
(1) Important Joint Ventures or Affiliates
Shareholding Ratio (%) Accounting Treatment
Name of Joint Venture or Principle Place Nature of Methods for Investment
Registered Place
Affiliate of Business Business Direct Indirect in Joint Ventures or
Affiliates
One Joint Ventures
1. Beijing Zhengda Feed
Beijing Beijing Manufacturer 50.00 Equity method
Co., Ltd.
Two Affiliates
1. SINOGRAIN Transportation
(Tianjin) Warehousing Tianjin Tianjin and 30.00 Equity method
Logistics Co., Ltd. warehousing
(2) Important financial information on major joint ventures
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item
Beijing Zhengda Feed Co., Ltd. Beijing Zhengda Feed Co., Ltd.
Current assets 232,509,285.82 228,921,574.13
Including: cash and cash equivalents 21,994,875.27 95,186,696.60
Non-current assets 22,867,202.06 25,478,642.09
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item
Beijing Zhengda Feed Co., Ltd. Beijing Zhengda Feed Co., Ltd.
Total assets 255,376,487.88 254,400,216.22
Current liabilities 55,315,530.88 73,979,867.51
Non-current liabilities 3,989,987.44 4,076,166.52
Total liabilities 59,305,518.32 78,056,034.03
Minority shareholder's equity
Shareholders' equity attributable to the
196,070,969.56 176,344,182.19
parent Company
Share of net assets based on shareholding
98,035,484.78 88,172,091.10
ratio
Adjustments 2,938,457.28 2,652,807.39
-- Goodwill
-- Unrealized profits from internal
transactions
-- Other 2,938,457.28 2,652,807.39
Book value of equity investment in joint
100,973,942.06 90,824,898.49
ventures
Fair value of equity investment in joint
ventures with open offers
Operating income 185,991,526.96 153,872,389.59
Financial costs -2,549,556.75 -1,308,088.38
Income tax expense 6,749,196.01 4,456,502.35
Net profit 20,298,087.13 13,073,530.78
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 20,298,087.13 13,073,530.78
(3) Important financial information on major affiliates
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item SINOGRAIN (Tianjin) Warehousing SINOGRAIN (Tianjin) Warehousing
Logistics Co., Ltd. Logistics Co., Ltd.
Current assets 84,470,838.52 87,560,108.46
Non-current assets 427,139,154.95 407,888,087.68
Total assets 511,609,993.47 495,448,196.14
Current liabilities 7,256,263.20 24,167,311.59
Non-current liabilities 135,191,122.94 72,609,829.76
Total liabilities 142,447,386.14 96,777,141.35
Minority shareholder's equity
Shareholders' equity attributable to the parent
369,162,607.33 398,671,054.79
Company
Share of net assets based on shareholding
110,748,782.20 119,601,316.43
ratio
Adjustments
-- Goodwill
-- Unrealized profits from internal
transactions
-- Others
Book value of equity investment in affiliates 110,748,782.20 119,601,316.43
Fair value of equity investment in affiliates
with open offers
Operating income 28,434,555.09 6,383,017.42
Net profit 4,116,892.01 1,370,044.29
Net profit from discontinued operations
100
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Other comprehensive income
Total comprehensive income 4,116,892.01 1,370,044.29
Dividends received from affiliates in the
24,680,000.00
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. The primary purpose of these financial instruments is to finance the operations of the Company. The Company
has a variety of other financial assets and liabilities directly arising from its operations, such as accounts receivable and accounts
payable.
The main risks caused by the Company's financial instruments are credit risk, liquidity risk and market risk.
1. Classification of financial instruments
(1) Book value of various financial assets on the balance sheet date
A. June 30, 2021
Financial assets measured at Financial assets measured at
Financial assets
Financial asset fair value and the changes fair value and the changes
measured at Total
items recorded in current profits and recorded in other
amortized cost
losses comprehensive income
Monetary funds 779,954,595.57 779,954,595.57
Transactional
363,000,000.00 363,000,000.00
financial assets
Derivative
75,597,717.39 75,597,717.39
financial assets
Notes receivables 0.00
Accounts
96,128,277.06 96,128,277.06
receivables
Other receivables 88,750,805.46 88,750,805.46
Investment in
other equity 20,000,000.00 20,000,000.00
instruments
Other non-
366,752,446.74 366,752,446.74
current assets
B. Jaunary 1, 2021
Financial assets measured at
Financial assets Financial assets measured at fair
Financial asset fair value and the changes
measured at value and the changes recorded Total
items recorded in current profits and
amortized cost in other comprehensive income
losses
Monetary funds 335,466,169.61 335,466,169.61
Transactional
63,478,071.73 63,478,071.73
financial assets
Derivative
0.00
financial assets
Notes receivables 456,565.85 456,565.85
Accounts
92,245,667.60 92,245,667.60
receivables
Other receivables 541,905,656.97 541,905,656.97
Investment in
other equity 20,000,000.00 20,000,000.00
instruments
Other non-current
319,739,581.67 319,739,581.67
assets
(2) Book value of various financial liabilities on the balance sheet date
A. June 30, 2021
Financial liability Financial liabilities measured at fair value and
Other financial liability Total
items changes included in current profits and losses
Short term loans 1,722,856,775.38 1,722,856,775.38
Derivative
0.00
financial liability
Accounts
134,164,851.58 134,164,851.58
payable
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Financial liability Financial liabilities measured at fair value and
Other financial liability Total
items changes included in current profits and losses
Other Payables 113,823,953.59 113,823,953.59
Long-term Loan 71,000,000.00 71,000,000.00
B. January 1, 2021
Financial liability Financial liabilities measured at fair value and
Other financial liability Total
items changes included in current profits and losses
Short term loans 1,497,414,079.05 1,497,414,079.05
Derivative
371,219,136.84 371,219,136.84
financial liability
Accounts
75,384,075.39 75,384,075.39
payable
Other Payables 72,292,881.24 72,292,881.24
Long-term Loan 0.00
2. Credit Risk
On June 30, 2021, 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 collectable 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.
Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
June 30, 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term
1,722,856,775.38 1,722,856,775.38
loans
Accounts
134,164,851.58 134,164,851.58
payable
Other
113,823,953.59 113,823,953.59
Payables
Long-term
71,000,000.00 71,000,000.00
Loan
(Continued)
January 1, 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term
1,497,414,079.05 1,497,414,079.05
loans
Accounts
371,219,136.84 371,219,136.84
payable
Other
72,075,894.39 3,308,181.00 75,384,075.39
Payables
Long-term
72,292,881.24 72,292,881.24
Loan
4. Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to the change of
market price. Market risk mainly includes interest rate risk, foreign exchange risk and other price risks, such as equity instrument
102
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
investment price risk.
(1) 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 30, 2021, the Company's interest-bearing liabilities under floating rate contracts denominated in RMB amounted to
RMB 70,000,000.00, and those under fixed rate contracts denominated in RMB amounted to RMB 1,694,204,046.67, and USD
amounted to USD 4,385,478.81.
(2) Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities (when revenues and
expenditures are settled in foreign currencies other than the Company's accounting standard currency) and its net investments in its
overseas subsidiaries. The Company's exposure to foreign exchange risks is mainly related to US dollars. Except that some of the
Company's subsidiaries purchase and sell in US dollars, other major business activities of the Company are priced and settled in
RMB.As at June 30, 2021, the Company's assets and liabilities are in RMB, except the assets or liabilities described in the table below
are in US dollars. The foreign exchange risks arising from the assets and liabilities of such foreign currency balances may have an
impact on the Company's operating results.
Items Ending Balance Beginning Balance
Monetary funds 39,226,039.22 5,056,624.13
Accounts receivable 3,966,257.73 1,044,832.24
Advanced payment 75,377,011.09
Other receivables 6,460,100.00
Short-term Loan 28,330,631.66
Accounts payables 541,291.78
Contract liabilities 19,473,641.79
Other payables 1,765,757.16 381,054.16
Note: The Company pays close attention to the impact of exchange rate fluctuations on the Company.
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and possible changes of risk
variables on current profit and loss or owner's equity. As any risk variable rarely changes in isolation, and the correlation between
variables will have a significant effect on the final impact amount of a risk variable change, the following content is carried out under
the assumption that the change of each variable is independent.
On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and other variables remain
unchanged, the after-tax impact of possible reasonable changes in exchange rate on current profits and losses and rights and interests
is as follows:
Current period
Item [US dollar] Exchange rate Gross profit/net profit increase Increase/(decrease) in
Increase / (decrease) /(decrease) shareholders' equity
The yuan depreciated against
5% 579,852.37 579,852.37
the US dollar
The yuan appreciated against
-5% -578,852.37 -578,852.37
the US dollar
(Continue)
Prior period
Item [US dollar] Exchange rate Gross profit/net profit increase Increase/(decrease) in
Increase / (decrease) /(decrease) shareholders' equity
The yuan depreciated against
5% 89,963.07 89,963.07
the US dollar
The yuan appreciated against
-5% -89,963.07 -89,963.07
the US dollar
X. Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Fair Values at the End of the Period
Second Level Third Level Fair
Item First Level Fair
Fair Value Value Total
Value Measurement
Measurement Measurement
One. Continuous fair value measurement
Ⅰ. Transactional financial assets 438,597,717.39 438,597,717.39
1. Financial assets that are measured at
fair value and whose changes are included 363,000,000.00 363,000,000.00
in the current profits and losses
(1) Investment in debt instruments 363,000,000.00 363,000,000.00
(2) Investment in equity instruments
(3) Derivative financial assets 75,597,717.39 75,597,717.39
2. Financial assets designated as fair value
through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Others
Ⅱ. Other debt investment
Ⅲ. Investment in other equity instruments 20,000,000.00 20,000,000.00
Total assets continuously measured at
438,597,717.39 20,000,000.00 458,597,717.39
fair value
2. Basis for determining market prices of continuous and non-continuous first level fair value measurement items
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.
3. Continuous and non-continuous third-level fair value measurement items adopt valuation techniques and qualitative
and quantitative information of important parameters
The Company‘s investment in other equity instruments of the third level fair value measurement project is the ”three noes“ equity
investment that without control, joint control and significant influence held by the Company. On the basis of analyzing the operation
status of the invested enterprise and combining with relevant situations, the Company takes the investment cost as the fair value of
other equity instrument investment for measurement at the end of the period.
XI. Related Parties and Related-Party Transactions
1. Identification criteria of related parties
If one party controls, jointly controls or exerts significant influence on the other party, and two or more parties are controlled,
jointly controlled or significantly influenced by the same party, they constitute related parties.
2. Parent Company of the Company
Legal Nature of Registered Capital
Name of Parent Company Company type Registered Place
representative Business (ten thousand Yuan)
Wholly state- Investment
Beijing Grain Group Co. Ltd. Beijing Zhang Lijun 90,000.00
owned enterprise Management
(Continue)
Proportion of Voting Power Held
Proportion of Shares Held by Parent The ultimate controlling party of
by Parent Company in the Organization code
Company in the Company (%) the Company
Company (%)
Beijing State-owned Capital
39.68 39.68 Operation and Management 683551038
Center
3. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
4. Joint Ventures and Affiliates of the Company
See 3. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.
5. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Guchun Food Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Food Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Yueshengzhai Halal Food Co., Ltd Controlled by the ultimate controlling party
Beijing ershang dahongmen Meat Food Co., Ltd Controlled by the ultimate controlling party
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Shandong Fukuan Bioengineering Co., Ltd Controlled by the ultimate controlling party
Beijing Guchun rice Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Wangzhihe Food Co., Ltd Controlled by the ultimate controlling party
Beijing heiliu animal husbandry technology Co., Ltd Controlled by the ultimate controlling party
Beijing Yanqi Yueshengzhai Halal Food Co., Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co., Ltd Controlled by the ultimate controlling party
Beijing Liubiju Food Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Moqi Zhonghong Food Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Jinghua Tea Co., Ltd Controlled by the ultimate controlling party
Beijing Huayu Food Co., Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd Controlled by the ultimate controlling party
Beijing Huadu liquor Marketing Co., Ltd Controlled by the ultimate controlling party
Beijing Beishui Food Industry Co., Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Venus duck industry Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain e-commerce Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang Longhe Food Co., Ltd Controlled by the ultimate controlling party
Beijing Changyang farm Co., Ltd Controlled by the ultimate controlling party
Beijing hundred year old Liyuan Ecological Agriculture Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang palace Yifu Food Co., Ltd Controlled by the ultimate controlling party
Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Supply Chain Management Co., Ltd Controlled by the ultimate controlling party
Hebei shounong Modern Agricultural Technology Co., Ltd Controlled by the ultimate controlling party
Beijing Haidian Xijiao grain and oil supply station Co., Ltd Controlled by the ultimate controlling party
Beijing Zhujun grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Beijing first agricultural consumption poverty alleviation and
Controlled by the ultimate controlling party
Entrepreneurship Center Co., Ltd
Beijing Children soldiers grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Liangguan grain and oil supply station of Beijing Controlled by the ultimate controlling party
Beijing maliandou special supply station Co., Ltd Controlled by the ultimate controlling party
Beijing junchengyuan grain and oil purchase and Marketing Co., Ltd Controlled by the ultimate controlling party
Beijing food supply office No.34 supply department Co., Ltd Controlled by the ultimate controlling party
Beijing Longqing Xiadu military grain supply Co., Ltd Controlled by the ultimate controlling party
Beijing baijiayi Food Co., Ltd Controlled by the ultimate controlling party
Beijing Hongyuan Lijun grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Beijing Desheng Hotel Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Logistics Co., Ltd Controlled by the ultimate controlling party
105
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Beijing jinggrain canal grain and Oil Trade Co., Ltd Controlled by the ultimate controlling party
Beijing Shuangta Green Valley Agriculture Co., Ltd Controlled by the ultimate controlling party
Beijing southern suburb agricultural production and Management Co., Ltd Controlled by the ultimate controlling party
Beijing Dongcheng sugar industry tobacco and Wine Co., Ltd Controlled by the ultimate controlling party
Beijing North Beijing sugar wine sales Co., Ltd Controlled by the ultimate controlling party
Beijing shounong commercial chain Co., Ltd. Hebei xiong'an branch Controlled by the ultimate controlling party
Beijing Sanyuan Taxi Co., Ltd Controlled by the ultimate controlling party
Beijing Business School Controlled by the ultimate controlling party
Beijing maisui Hotel Management Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Xiangshan Conference Center Co., Ltd Controlled by the ultimate controlling party
Beijing sugar industry tobacco & Wine Group Co., Ltd Controlled by the ultimate controlling party
Beijing grain (Tianjin) e-commerce Co., Ltd Controlled by the ultimate controlling party
Beijing Automobile Service Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Food Group Finance Co., Ltd Controlled by the ultimate controlling party
Beijing dahongmen grain storage Co., Ltd Controlled by the ultimate controlling party
Beijing Dongjiao farm Co., Ltd Controlled by the ultimate controlling party
Beijing aquatic products Co., Ltd Controlled by the ultimate controlling party
Beijing Beijing automobile driving technical school Controlled by the ultimate controlling party
Beijing grain (Tianjin) Trade Development Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Xinda Property Management Co., Ltd Controlled by the ultimate controlling party
Beijing Beishui Jialun water products market Co., Ltd Controlled by the ultimate controlling party
Beijing Xicheng sugar industry tobacco and Wine Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Industrial Asset Management Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang Fuyue Food Co., Ltd Controlled by the ultimate controlling party
Beijing Yanqing farm Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Taihe Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing capital agricultural Pinggu agricultural science and technology Controlled by the ultimate controlling party
innovation investment and Development Co., Ltd
Beijing Shunyi grain and Oil Co., Ltd Controlled by the ultimate controlling party
Beijing Longsheng Zhongwang breakfast Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Animal Husbandry Development Co., Ltd Controlled by the ultimate controlling party
Tianjin Hongda international freight forwarding Company Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Taiyu Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing xingfashion Trade Co., Ltd Controlled by the ultimate controlling party
Beijing zhongdairich Property Management Co., Ltd Controlled by the ultimate controlling party
Beijing Huacheng Trading Co., Ltd Controlled by the ultimate controlling party
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Beijing haipetrochemical (Tianjin) Co., Ltd Controlled by the ultimate controlling party
Beijing daimo flour Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Taixing Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing milk Co., Ltd Controlled by the ultimate controlling party
Beijing hongbaoyuan Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co., Ltd Controlled by the ultimate controlling party
Beijing Dongfeng International Sports Culture Co., Ltd Controlled by the ultimate controlling party
Beijing grain century cloud Technology Co., Ltd Controlled by the ultimate controlling party
China Ocean Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Oil Co., Ltd Controlled by the ultimate controlling party
Beijing sidaokou aquatic products Co., Ltd Controlled by the ultimate controlling party
Beijing Yonghe Xincheng grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Beijing Longde Business Management Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Shengyuan grain and Oil Sales Co., Ltd Controlled by the ultimate controlling party
Beijing Daxing National Food Reserve Co., Ltd Controlled by the ultimate controlling party
China Meat Food Research Center Controlled by the ultimate controlling party
Beijing Pinggu grain and oil industry and Trade Co., Ltd Controlled by the ultimate controlling party
Beijing Academy of Food Science Controlled by the ultimate controlling party
Beijing jinggrain Biotechnology Industry Co., Ltd Controlled by the ultimate controlling party
Beijing zhibohui Architectural Design Institute Co., Ltd Controlled by the ultimate controlling party
Beijing Beishui Yongxing water products Sales Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Group Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang Yihe Sunshine Property Management Co., Ltd Controlled by the ultimate controlling party
Beijing Beijiao farm Co., Ltd Controlled by the ultimate controlling party
Beijing Great Wall Danyu animal products Co., Ltd Controlled by the ultimate controlling party
Beijing grain point to net (Beijing) commerce Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Dagu grain and Oil Trade Co., Ltd Controlled by the ultimate controlling party
Shanghai shounong Investment Holding Co., Ltd Controlled by the ultimate controlling party
Beijing Daxing national grain storage Co., Ltd Controlled by the ultimate controlling party
Beijing Nanyuan vegetable oil factory Co., Ltd Controlled by the ultimate controlling party
Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd Controlled by the ultimate controlling party
Hebei shounong Modern Agricultural Technology Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Meet Food. Co, Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Pastoral Technology Co., Ltd. Food Center Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co., Ltd Controlled by the ultimate controlling party
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Beijing Sugar Industry Tobacco and Alcohol Group Co., Ltd. Sugar Controlled by the ultimate controlling party
Management Branch
Beijing Ershang Xijie Food Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Jingshen Seafood Co., Ltd Controlled by the ultimate controlling party
Beijing Jingmen Liangshi State-owned Asset Management Co., Ltd Controlled by the ultimate controlling party
Beijing Liubiju Food Co., Ltd. Huairou Brewing Plant Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co., Ltd Controlled by the ultimate controlling party
Beijing Theron International Cultural Development Co., Ltd Controlled by the ultimate controlling party
Beijing Liangguan Grain and Oil Supply Co., Ltd Controlled by the ultimate controlling party
Beijing Capital & Agricultural Food Group Co., Ltd Controlled by the ultimate controlling party
6. Related-party Transactions
(1) Related-party transactions for purchasing and sale goods and provision and acceptance of labor services
A. Purchase of goods or acceptance of labor services
Related Party Related-party Transaction Current Amount Last Term Amount
Beijing hundred year old Liyuan Ecological Agriculture
Purchase of goods 8,536.00
Co., Ltd
Beijing Beishui Food Industry Co., Ltd Purchase of goods 12,976.00 2,664.00
Beijing Ershang dahongmen Meat Food Co., Ltd Purchase of goods 260,599.00
Beijing Ershang Jinghua Tea Co., Ltd Purchase of goods 20,128.00
Beijing Ershang Longhe Food Co., Ltd Purchase of goods 54.00
Beijing Ershang Moqizhonghong Food Co., Ltd Purchase of goods 345.60 13,034.40
Beijing Ershang Meat Food Group Co., Ltd Purchase of goods 303,970.00
Beijing Ershang Wangzhihe Food Co., Ltd Purchase of goods 11,760.00 177,803.60
Beijing Guchuan Rice Co., Ltd Purchase of goods 31,372.00 134,268.00
Beijing Guchuan Food Co., Ltd Purchase of goods 7,084,342.52 7,662,781.80
Beijing Heiliu Pastoral Technology Co., Ltd. 89,111.30
Beijing Heiliu Pastoral Technology Co., Ltd. Food Center Purchase of goods 23,951.90
Beijing Huadu Wine Marketing Co., Ltd Purchase of goods 136,320.00
Beijing Huayu Food Co., Ltd Purchase of goods 14,850.00
Beijing jingliang E-Commerce Co., Ltd Purchase of goods 5,000.00
Beijng Jingliang Dongfang Grain and Oil Trading Co., Ltd Purchase of goods 246,304.00 266,693.50
Beijing Liubiju Food Co., Ltd Purchase of goods 15,320.00 26,809.40
Beijing Longmen Vinegar Co., Ltd Purchase of goods 290.00
Beijing Sanyuan Meiyuan Food Co., Ltd Purchase of goods 24,883.20
Beijing Sanyuan Food Co., Ltd Purchase of goods 196,816.00 1,459,486.60
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Related Party Related-party Transaction Current Amount Last Term Amount
Beijing Changyang Farm Co., Ltd Purchase of goods 1,470.00
Beijing Sugar Industry Tobacco and Alcohol Group Co.,
Purchase of goods 430.90
Ltd. Sugar Management Branch
Beijing Wuhuan Shuntong Supply Chain Management
Purchase of goods 11,895.00
Co., Ltd
Beijing Yiji Yueshengzhai Halal Food Co., Ltd Purchase of goods 280,682.00
Beijing Yueshengzhai Halal Food Co., Ltd Purchase of goods 520,850.50
Shandong Fuguang Bioengineering Co., Ltd Purchase of goods 248,829.00
Total 8,483,731.42 10,810,896.80
B. Sale of goods/ provision of labor services
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Baijiayi Food Co., Ltd Sale of goods 468,970.00 131,284.00
Beijing North Jingtang Wine Sales Co., Ltd Sale of goods 21,959.00 27,364.00
Beijing Great Mill Flour Co., Ltd Sale of goods 2,075.00
Beijing Dongcheng Sugar Industry Tobacco and Alcohol
Sale of goods 15,207.54
Co., Ltd
Beijing Dongfeng International Sports Culture Co., Ltd 1,755.00
Beijing Wangzhihe Food Co., Ltd Sale of goods 43,848,848.09 25,766,349.73
Beijing Ershang Xijie Food Co., Ltd Sale of goods 928,990.83
Beijing Ershang Fuyue Food Co., Ltd Sale of goods 7,460.00
Beijing Ershang Gongyifu Food Co., Ltd Sale of goods 17,256.88
Beijing Jingshen Seafood Co., Ltd 53,592.00
Beijing Ershang Longhe Food Co., Ltd Sale of goods 15,270.00
Beijing Ershang Yihe Sunshine Property Management Co.,
Sale of goods 23,880.00
Ltd
Beijing Guchuan Rice Co., Ltd Sale of goods 631,349.72 429,869.06
Beijing Guchuan Food Co., Ltd Sale of goods 5,727,639.42 1,089,789.39
Beijing Hongyuanli Military Grain and Oil Supply Co.,
Sale of goods 417,500.00 377,490.82
Ltd
Beijing Jingliang Dagu Oil and Grain Trading Food Co.,
Sale of goods 177,900.00
Ltd
Beijing Jingliang E-commerce Co., Ltd Sale of goods 723,045.08 1,100,466.11
Beijing Jingliang East Oil and Grain Trading Food Co., Ltd Sale of goods 4,665,430.59 1,855,631.79
Beijing Jiangliang Taihe Property Co., Ltd Sale of goods 4,980.00
Beijing Jiangliang Taixing Property Co., Ltd Sale of goods 2,075.00
Beijing Jiangliang Taiyu Property Co., Ltd Sale of goods 3,320.00
Beijing Jiangliang Logistics Co., Ltd Sale of goods 86,554.91 226,577.57
Beijing Jingliang Cinda Property Management Co., Ltd Sale of goods 11,205.00
Beijing Jingliang Xingye Asset Management Co., Ltd Sale of goods 7,885.00
Beijing Jingliang Canal Grain and Oil Trading Co., Ltd Sale of goods 119,432.07 122,729.05
Beijing Jingliang Real Estate Co., Ltd Sale of goods 174,056.74
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Jingmen Liangshi State-owned Asset Management
Sale of goods 363,200.00
Co., Ltd
Beijing Junyuan Rain and Oil Purchase and Sales Co., Ltd Sale of goods 624,175.00 306,990.83
Beijing Lanfeng Vegetable Distribution Co., Ltd Sale of goods 3,380.00
Beijing Liubiju Food Co., Ltd Sale of goods 2,750.00
Beijing Liubiju Food Co., Ltd Huairou Brewing Plant Sale of goods 231,300.00
Beijing Longmen Vinegar Co., Ltd Sale of goods 6,600.00
Beijing Longsheng Zhongwang Breakfast Co., Ltd Sale of goods 20,633.00
Beijing Wheat Hotel Management Co., Ltd Sale of goods 31,955.00
Beijing Southern Suburbs Agricultural Production
Sale of goods 64,726.61
Management Co., Ltd
Beijing Automotive Services Co., Ltd Sale of goods 18,600.00
Beijing Theron International Cultural Development Co.,
Sale of goods 275.00
Ltd
Beijing Sanyuan Taxi Co., Ltd Sale of goods 44,400.00
Beijing Sanyuan Petroleum Co., Ltd Sale of goods 286.24
Beijing Sanyuan Food Co., Ltd Sale of goods 492,000.00 527,348.00
Beijing Sanyuan Seed Industry Technology Co., Ltd. feed
Sale of goods 27,347,850.05 14,185,704.49
branch
Beijing Northern Suburbs Farm Co., Ltd Sale of goods 1,000.00
Beijing Dahongmen Grain Storage Co., Ltd Sale of goods 15,355.00
Beijing Desheng Hotel Co., Ltd Sale of goods 32,557.03 102,900.00
Beijing Eastern Suburbs Farm Co., Ltd Sale of goods 13,585.00
Beijing Haidian Western Suburbs Grain and Oil Supply
Sale of goods 1,799,085.28 7,327,448.82
Station Co., Ltd
Beijing Hongbaoyuan Trading Co., Ltd Sale of goods 1,872.00
Beijing Huacheng Trading Co., Ltd Sale of goods 5,319.00 2,502.00
Beijing Jingcheng Automotive Driving Technical School Sale of goods 13,200.00
Beijing Liangguan Grain and Oil Supply Co., Ltd Sale of goods 12,500.92
Beijing Longqing Xiadu Military Food Supply Co., Ltd Sale of goods 95,200.00 379,651.38
Beijing Ma Liandao Grain and Oil Special-need Supply
Sale of goods 77,000.00 1,311,822.02
Station Co., Ltd
Beijing Nanyuan Vegetable Oil Plant Co., Ltd Sale of goods 7,055.00
Beijing Milk Co., Ltd Sale of goods 3,546.00 1,946.00
Beijing Food Supply Department No. 34 Supply
Sale of goods 2,497,733.27 1,399,738.14
Department Co., Ltd
Beijing Shunyi Grain and Oil Co., Ltd Sale of goods 4,920.00
Beijing Sidaokou Spitting Production Co., Ltd Sale of goods 176.00
110
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Yanqing Farm Co., Ltd Sale of goods 6,000.00
Beijing Soldiers Grain and Oil Supply Co., Ltd Sale of goods 971,200.00 1,676,047.71
Beijing Shounong Livestock Development Co., Ltd Sale of goods 3,522.95
Beijing Shounong Supply Chain Management Co., Ltd Sale of goods 2,469,496.69
Hebei Xiong'an Branch of Beijing Shounong Commercial
Sale of goods 41,834.86
Chain Co., Ltd
Sale of goods 6,160.00
Beijing Capital & Agriculture Group Finance Co., Ltd
Beijing Capital & Agriculture Group Co., Ltd Sale of goods 637,256.86 3,154.10
Beijing Shounong Xiangshan Convention Center Co., Ltd Sale of goods 5,328.00 13,100.00
Beijing Shounong Consumption Double-creation center of
Sale of goods 5,051,520.00
Poverty & Alleviation Co., Ltd
Beijing Twin Towers Green Valley Agriculture Co., Ltd Sale of goods 15,816.51 107,775.70
Beijing Aquatic Co., Ltd Sale of goods 6,380.00
Beijing Sugar Industry Tobacco and Alcohol Group Co.,
Sale of goods 4,400.00 26,280.00
Ltd
Beijing Wuhuan Shuntong Supply Chain Management
Sale of goods 670,442.20 1,344,372.42
Co., Ltd
Beijing West City Sugar Industry Tobacco and Alcohol
Sale of goods 8,370.00
Co., Ltd
Beijing Aid Army Grain and Oil Supply Co., Ltd Sale of goods 960,383.95 2,196,158.88
Hebei Luanping Huadu Food Co., Ltd Sale of goods 2,399,477.40
Hebei Shounong Modern Agricultural Technology Co.,
Sale of goods 10,400,433.52 7,867,155.54
Ltd
Jinghai Petrochemical (Tianjin) Co., Ltd Sale of goods 2,112.00
Jiangliang (Tianjin) E-Commerce Co., Ltd Sale of goods 41,993.91
Jiangliang (Tianjin) Trade Development Co., Ltd Sale of goods 10,560.00
Jingliang Diandao Network (Beijing) Trading Co., Ltd Sale of goods 7,884.00
Jingliang Century Cloud Technology Co., Ltd Sale of goods 830.00
Shanghai Shounong Investment Holdings Co., Ltd Sale of goods 139,402.80
Tianjin HTC International Freight Forwarder Sale of goods 3,520.00
Total Sale of goods 112,233,671.50 73,528,174.97
Related-party transactions for purchasing and saling goods and provision and acceptance of labor services: 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.
111
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
(2) Related-party lease
A. If the Company is the lessor,
Lease Income Lease Income
Type of Leased Pricing basis of
Name of Lessee Recognized in the Current Recognized in the Prior
Asset rental income
Period Period
Beijing Jingliang E-
Warehouse leasing Market price 766,509.38
commerce Co., Ltd.
Beijing Jingliang E-
Vehicle leasing Market price 12,729.60
commerce Co., Ltd
Total -- -- 0.00 779,238.98
B. If the Company is the lessee,
Lease Expense Lease Expense
Pricing basis of rleasing
Name of Lessee Type of Leased Asset Recognized in the Recognized in the Prior
fee
Current Period Period
Beijing Grain Group Co. Ltd. House leasing Market price 580,000.00 280,000.00
Beijing Daxing National Grain
Purchasing & Storage House leasing Market price 1,055,100.00 1,055,100.00
Warehouse
Beijing Nanyuan Plant Oil
House leasing Market price 340,000.00
Factory
Beijing Dahongmen Grain
House leasing Market price 309,577.33
Storage Co., Ltd
Beijing Shounong Development
House leasing Market price 255,583.71
Co., Ltd
Beijing Jingliang Real Estate
House leasing Market price 578,628.78
Co., Ltd
Total 2,540,261.04 1,913,728.78
(3) Related-party guarantee
None.
(4) Remuneration for key management staff
Current Amount (Unit: ten Last Term Amount (Unit: ten
Item
thousand yuan) thousand yuan)
Remuneration for Key Management Staff 122.27 89.05
(5) Other related- parties
Item Related-party content Current Amoun Last Term Amount
Purchase water and
Beijing Guchuan Food. Co., Ltd 1,769,382.93 1,544,536.20
electricity
7. Related-party Receivables and Payables
(1) Receivables
Ending Balance Beginning Balance
Item Related-party Book Balance Provision Book Balance Provision
for Bad for Bad
Debts Debts
Monetary Beijing shounong Food Group Finance Co.,
167,000,000.00 158,585,719.53
funds Ltd
Total 167,000,000.00 158,585,719.53
Beijing ershang Wangzhihe Food Co., Ltd
Receivables 4,439,008.84 8,584,555.70
Beijing shounong consumption poverty
127,558.00 3,178,672.00
alleviation and Innovation Center Co., Ltd
Beijing shounong Supply Chain Management
396,373.85 1,965,569.85
Co., Ltd
Feed branch of Beijing Sanyuan Seed
1,222,661.87 1,544,618.10
Technology Co., Ltd
Hebei shounong Modern Agricultural
1,531,449.52 1,473,919.32
Technology Co., Ltd
112
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Ending Balance Beginning Balance
Item Related-party Book Balance Provision Book Balance Provision
for Bad for Bad
Debts Debts
Beijing Haidian Xijiao grain and oil supply
970,468.40 1,420,904.00
station Co., Ltd
Beijing Zhujun grain and oil supply Co., Ltd
388,800.00 1,598,080.00
Beijing Junyuan grain and oil purchasing and
1,009,912.00
Marketing Co., Ltd
Beijing Jingliang Dongfang grain and Oil
1,036,571.00 914,231.75
Trading Co., Ltd
Beijing Liangguan grain and oil supply Co.,
1,200.00 672,100.00
Ltd
Beijing Guchun Food Co., Ltd
788,395.00 330,872.00
Beijing Wuhuan Shuntong Supply Chain
147,000.00
Management Co., Ltd
Beijing food supply department No.34 supply
853,306.80 83,260.00
department Co., Ltd
Beijing Jingliang e-commerce Co., Ltd
56,600.00
Beijing Solders Grain and Oil supply Co., Ltd
368,000.00 29,106.00
Beijing baijiayi Food Co., Ltd
23,100.00
Beijing shounong Xiangshan Conference
5,250.00
Center Co., Ltd
Beijing jingliang Logistics Co., Ltd
2,704.00
Beijing Longsheng Hope Breakfast Co., Ltd
2,635.00
Beijing Theron International Cultural
275.00
Development Co., Ltd
Shanghai Capital&Agricultural Investment
3,819.12
Holdings Co., Ltd
Beijing Ershang Jiexi Food Co., Ltd
1,012,600.00
Total
13,145,826.40 23,037,750.72
(2) Payables
Beginning balance
Item Related-party Ending Balance
Beijing Guchuan Food Co., Ltd
Payables 73,467.89 293,871.55
Beijing Jingliang Dongfang grain and Oil Trading
33,679.50 20,674.03
Co., Ltd
Beijing Sanyuan Food Co., Ltd
13,677.70
Beijing Yanxi Yueshengzhai Halal Food Co., Ltd
1,922.50
Beijing Changyang farm Co., Ltd
1,470.00
Beijing Sugar Industry Tobacco and Alcohol
430.90
Group Co., Ltd. Sugar Management Branch
345.60
Beijing Ershang Moqi zhonghong Food Co., Ltd
1,055,100.00
Beijing Daxing National Food Reserve
Total 1,163,023.89 331,615.78
Other payables 2,292,270.30 1,712,270.30
Beijing Grain Group Co., Ltd
118,809.60 118,809.60
Beijing Jingliang e-commerce Co., Ltd
113
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
297,619.31
Beijing Guchuan Food Co., Ltd
Total 2,708,699.21 1,831,079.90
8. Related-party Commitments
The Company has no related-party commitments this year.
XII. Share based payment
There are no share based payments to disclose for the Company.
XIII. Contingencies
There is a total of RMB4.1207 billion guarantee for the Company and his holding subsidiaries (of which the total amount of the
business guarantee is RMB 1.5207 billion and the total amount of the credit guarantee is RMB2.6 billion). As of the date of this financial
report, There is a total of RMB3.216 billion guarantee for the Company and his holding subsidiaries (of which the total amount of the
business guarantee is RMB 1.5207 billion and the total amount of the credit guarantee is RMB1.6953 billion), of which the above
guarantees were guarantees between the holding subsidiaries of the Company.
XIV. Events after the Balance Sheet Date
1. Important non-adjustment matters
As of the financial report date of the Company, there is no important non-adjustment matters to disclose for the company.
XV. Other Important Matters
1. Annuity Plan
Basic information of annuity: The company subsidiaries of Beijing Jingliang Food Co., Ltd., Beijing Guchun Oil Co., Ltd.,
Beijing Eisen Lubao Oil Co., Ltd., Beijing Jingliang Oil Co., Ltd. and Beijing Guchun Bread Food Co., Ltd. participated in the
enterprise annuity plan of Beijing Capital&Agriculture Group Co., Ltd., and formulated the implementation rules of their respective
enterprises under the annuity plan. The name of the annuity plan is Ping An Jinxiu life enterprise annuity plan; the trustee and account
manager are ping an Endowment Insurance Co., Ltd.; the trustee is China CITIC Bank Co., Ltd.
2. Information of 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 of divisions
Item Food Processing Oil & Grease Other Offset Among Dvisions Total
Operating income 445,877,330.91 4,881,811,652.44 557,852.48 0.00 5,328,246,835.83
Operating costs 331,265,649.95 4,767,883,364.10 395,974.36 0.00 5,099,544,988.41
Operating profit 59,351,982.88 78,634,472.17 -3,605,333.66 0.00 34,381,121.39
Net profit attributable to
45,422,226.10 46,152,837.75 -3,653,565.94 406,700.00 88,328,197.91
parent Company
Total assets 1,079,115,761.79 5,245,743,628.66 2,757,304,920.53 -2,938,396,895.35 6,143,767,415.63
Total liabilities 131,712,508.58 2,795,864,191.65 330,617,902.84 -311,959,049.11 2,946,235,553.96
XVI. Notes to Main Financial Statement Items of Parent Company
1. Accounts Receivable
(1) Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
Among them: Within credit period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years)
2 to 3 years (including 3 years)
3 to 4 years (including 4 years) 3,000.00
4 to 5 years (including 5 years) 51,420.00
More than 5 years 72,000.00
114
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Aging Ending Balance
Total 126,420.00
(2) Disclosed 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(%)
Separate provision for bad debts
Portfolio provision for bad debts 126,420.00 100.00 114,636.00 90.68 11,784.00
Among them: aging portfolio 126,420.00 100.00 114,636.00 90.68 11,784.00
Total 126,420.00 -- 114,636.00 -- 11,784.00
（Continued）
Beginning Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts
Portfolio provision for bad debts 126,420.00 100.00 114,636.00 90.68 11,784.00
Among them: aging portfolio 126,420.00 100.00 114,636.00 90.68 11,784.00
Total 126,420.00 -- 114,636.00 -- 11,784.00
Portfolio provision for bad debts:
Portfolio provision item: aging portfolio
Beginning Balance
Ending Balance
Name
Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year (including 1 year)
Among them: Within the credit
period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years)
2 to 3 years (including 3 years)
3 to 4 years (including 4 years) 3,000.00 1,500.00 50.00 3,000.00 1,500.00 50.00
4 to 5 years (including 5 years) 51,420.00 41,136.00 80.00 51,420.00 41,136.00 80.00
More than 5 years 72,000.00 72,000.00 100.00 72,000.00 72,000.00 100.00
Total 126,420.00 114,636.00 126,420.00 114,636.00
(3) Details of bad debt provision
Type Carrying Amount changes for the period Carrying
amount at the amount at the end
Addition Withdrawal Write- Other
beginning
or reversal off changes
115
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Bad
debt 114,636.00 114,636.00
provision
Total 114,636.00 114,636.00
(4) Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Ratio of the total balance of Bad debt
Debtors Book balance Aging Is it related
accounts receivable(%) provision
Hainan Pearl River Pipe 3-4 years, 4-5 years,
108,000.00 85.43 No 99,900.00
Pile Co. Ltd more than 5 years
Ceibs Agricultural
Qinhuangdao 18,420.00 14.57 4-5years No 14,736.00
Ddevelopment Co. Ltd
126,420.00 100.00
Total
2. Other Receivables
(1) Overview
A. Classification
Item Ending Balance Beginning Balance
Interest receivable
Dividends receivable
Other receivables 100,008.26 103,341.26
Total 100,008.26 103,341.26
(2) Other Receivables
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
Among them: Within credit period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years) 105,271.85
2 to 3 years (including 3 years)
3 to 4 years (including 4 years)
4 to 5 years (including 5 years)
More than 5 years 50,000.00
Total 155,271.85
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Intercourse Funds of Units 3,333.00
Employee Receivables
Personal Intercourse Funds 50,000.00 50,000.00
Petty Cash 105,271.85 105,271.85
Others
Total 155,271.85 158,604.85
(3) Details about allowance for bad debt
116
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Provision for bad debt Expected credit loss in the for the whole period for the whole period Total
next 12 months (no credit (with credit
impairment) impairment)
Amount on January 1, 2020 5,263.59 50,000.00 55,263.59
Carrying amount on January 1,
2020 during 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 changes
Carrying amount at the end of the
5,263.59 50,000.00 55,263.59
period
(4) Details of bad debt provision
Carrying Amount changes for the period
Carrying amount
Type amount at the Withdrawal Write- Other
Addition at the end
beginning or reversal off changes
Bad debt 55,263.59 55,263.59
provision
Total 55,263.59 55,263.59
(5) Other receivables actually written off in the current period
The Company has no other receivables actually written off in the current period.
(6) Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall
Balance at End of Ending balance of
Name of Organization Nature of Funds Aging ending balance of other
Period bad debt reserves
receivables (%)
More than 5
Song Wang Personal payments 50,000.00 32.20 50,000.00
years
Yan Yan Reserve fund 46,000.00 1-2 years 29.63 2,300.00
Pai Feng Reserve fund 26,671.80 1-2 years 17.18 1,333.59
Zhongwei Cui Reserve fund 14,007.40 1-2 years 9.02 700.37
117
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Proportion in overall
Balance at End of Ending balance of
Name of Organization Nature of Funds Aging ending balance of other
Period bad debt reserves
receivables (%)
Guangjie Huang Reserve fund 10,005.00 1-2 years 6.44 500.25
Total —— 146,684.20 —— 94.47 54,834.21
3. Long-term Equity Investment
Ending Balance Beginning Balance
Provisio Provisio
Item n for n for
Book Balance Book Value Book Balance Book Value
Impair Impair
ment ment
Investment in
2,626,437,846.24 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24
subsidiaries
Total 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24
(1) Investment in subsidiaries
Ending
Current
Beginning Current Current Balance of
Invested Entity Ending Balance Provision for
Balance Increase Decrease Provision for
Impairment
Impairment
Beijing Jingliang
2,336,639,964.05 2,336,639,964.05
Food Co., Ltd.
Zhejiang little
prince Food Co., 249,017,319.14 249,017,319.14
Ltd
Jingliang rural
complex
construction and 15,280,563.05 15,280,563.05
operation (Xinyi)
Co., Ltd
Jingliang
(Caofeidian)
Agricultural 25,500,000.00 25,500,000.00
Development Co.,
Ltd.
Total 2,626,437,846.24 2,626,437,846.24
4. Operating income and operating costs
(1) Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Core business
Other businesses 295,530.28 170,581.26 376,609.17
Total 295,530.28 170,581.26 376,609.17
5. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated by cost method
Others -28,691.03 398,338.36
Total -28,691.03 398,338.36
XVII. Supplementary Information
118
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
1. According to the requirements of the CSRC's "Explanatory Announcement on Information Disclosure of Companies
Publicly Issuing Securities No. 1 - Non-recurring Gains and Losses", the non-recurring gains and losses during the reporting
period shall be reported
(1) Details of non-recurring profit and loss in the reporting period
Details of non-recurring profit and loss Amouont Note
(1) Gains and losses on disposal of non current assets -58,685.83
(2) Government subsidies included in the current profits and losses (closely related
to the business of the enterprise, except the government subsidies enjoyed 797,061.63
according to the national unified standard quota or quantitative)
(3) In addition to the effective hedging business related to the normal business of
the Company, the profit and loss from changes in fair value arising from holding
trading financial assets, derivative financial assets, trading financial liabilities and
5,299,079.77
derivative financial liabilities, as well as the investment income from the disposal
of trading financial assets, derivative financial assets, trading financial liabilities,
derivative financial liabilities and other debt investments
(4) Other non-operating income and expenses other than the above 1,016,418.48
(5) Other profit and loss items that meet the definition of non recurring profit and
37.36
loss
Total non recurring profit and loss 7,053,911.41
Less: amount affected by income tax 1,763,477.85
Non recurring profit and loss after deducting the influence of income tax 5,290,433.56
Including: non recurring profit and loss attributable to the owner of the parent
5,054,860.51
Company
Non recurring profit and loss attributable to minority shareholders 235,573.05
2. Return on equity and earnings per share
Weighted Return on Average EPS
Current Profit Equity (ROAE) (%)
Basic EPS Diluted EPS
Net profit attributable to the Company's common
3.21 0.12 0.12
shareholders
Net profit attributable to common shareholders after
3.03 0.11 0.11
deduction of non-recurring gains and losses
Legal Representative:LI Shaoling Chief Accounting Officer:Guan Ying Leader of the Accounting Body:Liu Quanli
Hainan Jingliang Holdings Co., Ltd.
25 August 2021
119
