HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2022
March 2023
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2022
Part I Important Notes
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company
guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report
and will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the
Report.
Chairman Wang Chunli , Chief Financial Officer Guan Ying, and the head of Accounting Department Cao
Ling hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
All the Company’s Directors have attended the Board meeting for the review of this Report.
In order for a full understanding of the Company’s operating results, financial position and future
development plans, investors should carefully read the annul report, which has been disclosed on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
Independent auditor’s modified opinion:
□ Applicable Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
□ Applicable Not applicable
The Company has no final dividend plan, either in the form of cash or stock.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
□ Applicable Not applicable
This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Part II Key Corporate Information
1. Stock Profile
Stock name JLKG, JL-B Stock code 000505, 200505
Stock exchange for
Shenzhen Stock Exchange
stock listing
Contact information Board Secretary Securities Representative
Name Guan Ying Gao Deqiu
15/F, Jing Liang Building, NO. 16 East 15/F, Jing Liang Building, NO. 16 East
Office address Third Ring Middle Road, Chaoyang Third Ring Middle Road, Chaoyang District,
District, Beijing Beijing
Fax 010-51672010 010-51672010
Tel. 010-51672270 010-51672029
E-mail address guanying@bjjlkg.cn gaodeqiu@bjjlkg.cn
2. Principal Activities or Products in the Reporting Period
The Company is principally engaged in oils and oilseeds processing and trading, as well as food processing.
With regard to oils processing and trading, the Company refines, bottles, markets, imports and exports raw
oils upon initial pressing. As for oilseeds, the Company presses, refines, bottles, markets, imports and exports
oilseeds such as sesame, soybean, corn germ, sunflower seeds and peanuts. The Company runs its oils and
oilseeds processing and trading business primarily in Beijing City, Tianjin City and Hebei Province under
the brands of “Gu Chuan”, “Lv Bao”, “Gu Bi”, “Huo Niao”, etc., with the main products being soybean oil,
rapeseed oil, sunflower seed oil and sesame oil and paste, among others. As for its food processing business,
it primarily develops, produces and markets snack food and bread under the brands of “Little Prince”, “MS
Dong”, “Jianqiang De Tudou” and “Gu Chuan”, among others, with the main products being potato chips,
cakes and pastries and bread. The snack food business covers all provinces and municipalities in China,
while the bread business focuses on the Beijing-Tianjin-Hebei region. In this regard, the Company is one of
the major suppliers for KFC in North China.According to the Industry Categorization Results of Listed
Companies, the Company falls into the major industry category of manufacturing—agri-food processing
industry (code: C13). Specifically, the Company operates in the vegetable oil processing segment, with its
food processing business accounting for a large proportion in gross profit. With respect to the vegetable oil
processing industry, industrial integration has accelerated and differentiation is increasingly evident, with
minority oils such as sunflower seed oil, tea oil, corn oil and rice bran oil seeing fast growth. In terms of the
food processing industry, consumer needs have become increasingly diverse, resulting in better and richer
product offerings. Nonetheless, there are only a handful of major brands in the industry, indicating great
potential for industrial integration.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes No
Unit: RMB
Change of 31
December 2022 over
31 December 2022 31 December 2021 31 December 2020
31 December 2021
(%)
Total assets 6,105,144,167.96 6,046,600,058.90 0.97% 5,695,504,493.73
Equity attributable to the listed
3,061,661,435.05 2,915,802,291.05 5.00% 2,710,571,543.53
company’s shareholders
2022-over-2021
2022 2021 2020
change (%)
Operating revenue 12,857,874,301.72 11,763,093,835.56 9.31% 8,741,749,912.11
Net profit attributable to the
141,411,141.28 204,459,771.08 -30.84% 184,846,956.70
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders 124,297,168.33 195,422,832.45 -36.40% 164,037,737.59
before exceptional items
Net cash generated from/used in
-533,230,947.03 632,240,056.44 -184.34% -246,540,910.08
operating activities
Basic earnings per share
0.19 0.28 -32.14% 0.26
(RMB/share)
Diluted earnings per share
0.19 0.28 -32.14% 0.26
(RMB/share)
Weighted average return on
4.73% 7.27% -2.54% 7.17%
equity (%)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 3,024,441,143.44 2,488,340,126.88 3,931,892,303.79 3,413,200,727.61
Net profit attributable to the
36,992,676.25 35,915,653.90 18,632,830.26 49,869,980.87
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders 36,436,748.65 34,828,990.82 15,748,627.17 37,282,801.69
before exceptional items
Net cash generated from/used in
-193,652,734.08 19,042,324.65 9,679,813.98 -368,300,351.58
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations
differs materially from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes No
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as
well as Holdings of Top 10 Shareholders
Unit: Share
Number of
Number of preferred
preferred shareholders
Number of Number of ordinary
shareholders with resumed
ordinary shareholders at the
68,206 67,266 with resumed 0 voting rights at 0
shareholders at month-end prior to the
voting rights the month-end
the period-end disclosure of this Report
at the period- prior to the
end disclosure of this
Report
Top 10 shareholders
Total shares Shares in pledge,
Nature of Shareholdin
Name of shareholder held at the Restricted shares held marked or frozen
shareholder g percentage
period-end Status Shares
BEIJING GRAIN GROUP State-owned legal
39.68% 288,439,561 0
CO., LTD. person
BEIJING STATE-OWNED
CAPITAL OPERATION State-owned legal
6.67% 48,510,460 0
AND MANAGEMENT person
COMPANY LIMITED
Domestic natural
WANG YUECHENG 5.66% 41,159,887 41,159,887
person
Foreign natural
LI SHERYN ZHAN MING 0.42% 3,024,600 0
person
Domestic natural
MEI JIANYING 0.36% 2,604,203 0
person
Domestic natural
WANG ZHIQIANG 0.34% 2,507,123 0
person
Domestic natural
CHEN TING 0.31% 2,261,069 0
person
Domestic natural
CHEN TIANHUA 0.29% 2,101,100 0
person
Domestic natural
ZHANG XIAOXIA 0.27% 1,949,250 0
person
Domestic natural
WANG XIAOXING 0.23% 1,654,200 0
person
① Beijing State-Owned Capital Operation and Management Company Ltd. owns
an indirect 100% share of Beijing Grain Group Co., Ltd., and Beijing Grain Group
Related or acting-in-concert parties among the Co., Ltd. is the controlling shareholder of the Company (a 39.68% holding). ②
shareholders above Wang Yuecheng is a Deputy General Manager of the Company. Apart from that,
the Company does not know whether there are any other related parties or acting-
in-concert parties among the top 10 shareholders.
Shareholder Chen Tianhua holds 2,093,500 shares in the Company through his
Shareholders involved in securities margin account of collateral securities for margin trading in Founder Securities Co., Ltd.
trading (if any) Shareholder Wang Xiaoxing holds 1,654,200 shares in the Company through his
account of collateral securities for margin trading in Soochow Securities Co., Ltd.
(2) Number of Preferred Shareholders and Shareholdings of Top 10
□ Applicable Not applicable
No preferred shareholders in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
□ Applicable Not applicable
Part III Significant Events
In 2022, various uncertainties and urgency intertwined and became the new normal. In the face of various
external environmental pressures, the company adhered to the general tone of seeking progress while
maintaining stability, fully promoted the implementation of the “14th Five Year Plan” development plan, and
maintained a stable development trend in general. For the year under review, the Company recorded
operating revenue of RMB12.858 billion, up 9.31% year on year, a net profit attributable to the listed
company’s shareholders of RMB141 million, down 30.84% year on year.
No significant changes occurred to the Company’s operations in the Reporting Period.
Part IV Financial Statements
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd.
Notes to the 2022 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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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 holders. 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 December 31, 2022, the company has issued 726,950,251.00 shares, and the company's share
capital is 726,950,251.00 yuan; 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: WangChunli.
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 activities mainly includes: food, beverages, oilseeds and by 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 Capital Agribusiness Food Group Co., Ltd.
4. The approval institution and the approval date of the financial statements.
The financial statements have been approved by the Board of Directors of the Company in its resolution
dated March 29, 2023.
5. Consolidation scope
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 18 subsidiaries of the Company were included in the scope of consolidation on 31 December,
2022, as detailed in Note VIII. "Equitiess in Other Entities". The consolidation scope of the Company for
the current period is changed that is same as the previous period as detailed in Note 7, "Change in
Consolidation Scope" the subsidiary Jingliang Tianyuan Complex Construction and Operation (Xinyi) Co.,
Ltd. has been cancelled and Jingliang (Beijing) Food Marketing Management Co., Ltd has been newly
established.
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 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, 26 “Revenue". For descriptions of the significant accounting judgments and estimates made by
the management, please refer to Note Ⅲ, 32 “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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
The Company will re-evaluate the above control definitions once the relevant facts and circumstances
change, which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the
production and operation decisions into the scope of the merger from the date when the subsidiary is acquired;
Cease to be included in the scope of the merger as of the date of loss of effective control. For the subsidiaries
disposed of, the operating results and cash flows prior to the date of disposal have been appropriately
included in the consolidated income statement and consolidated cash flow statement; For subsidiaries
disposed of in the current period, the opening amount of the consolidated balance sheet is not adjusted. The
operating results and cash flows of subsidiaries increased by consolidation after purchase have been properly
included in the consolidated income statement and consolidated cash flow statement, and the opening and
comparative amounts in the consolidated financial statements have not been adjusted for subsidiaries that
are not under the same control. The operating results and cash flows of the subsidiaries increased by
consolidation under the same control from the beginning of the consolidation period to the consolidation
date have been appropriately included in the consolidated profit statement and consolidated cash flow
statement, and the comparative amount of the consolidated financial statements has been adjusted at the
same time.
In the preparation of the consolidated financial statements, if the accounting policies or accounting
periods adopted by the subsidiaries are inconsistent with those adopted by the Company, necessary
adjustments shall be made to the financial statements of the subsidiaries in accordance with the accounting
policies and accounting periods of the Company. For subsidiaries acquired through business combination
under different control, the financial statements shall be adjusted on the basis of the fair value of identifiable
net assets at the date of purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offset
at the time of preparation of the consolidated financial statements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by
the Company for the current period are separately presented as minority shareholders' equity and minority
shareholders' profit or loss in the consolidated financial statements under shareholders' equity and net profit.
The shares of minority shareholders' equity in the net profits and losses of subsidiaries for the current period
are shown as "minority shareholders' profits and losses" under the net profit item in the consolidated income
statement. Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in
the shareholders' equity of the subsidiary at the beginning of the period, and still decrease by a number of
shareholders' equity.
When the control of the original subsidiary is lost due to the disposal of part of the equity investment
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 operation and joint venture in accordance with the
rights and obligations it enjoys in the joint venture arrangement. A joint operation is a joint arrangement
whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for
the liabilities, relating to the arrangement. A joint venture is a type of joint arrangement whereby the parties
that have joint control of the arrangement have rights to the net assets of the joint venture.
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 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 readily withdrawn
on demand. Cash equivalents are investments held by the Company with a short term (usually maturing
within three months from the date of purchase), high liquidity, readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(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
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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
Financial instruments are the contracts that form the financial assets of one entity, and at the same time
form the financial liabilities or equity instruments of other entities.
(1) Classification, confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow
characteristics of financial assets, the Company divides financial assets into: Financial assets measured at
amortized cost. Financial assets measured at fair value with changes included in other comprehensive income.
Financial assets that are measured at fair value and whose movements are included in the current profits and
losses.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 Group measures financial assets at amortised cost if both of the following conditions are met : the
financial asset is held within a business model with the objective to hold financial assets in order to collect
contractual cash flows; the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding, 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 Group measures financial assets at fair value through other comprehensive income if both of the
following conditions are met: the financial asset is held within a business model with the objective of both
holding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. Interest income of such financial assets is recognised based on effective interest method. 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
assets as financial assets measured at fair value with changes included in current profit and loss. For such
financial assets, the Company adopts fair value for subsequent measurement, and the changes in fair value
are included into the current profit and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at
fair value and whose changes are included in current profits and losses and other financial liabilities. For the
financial liabilities measured at fair value with the changes included into the current profits and losses, the
relevant transaction costs are directly included into the current profits and losses, and the relevant transaction
costs of other financial liabilities are included in the initial recognition amount.
① Financial liabilities at fair value through profit or loss
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
original financial liability (or part thereof), the original financial liability shall be derecognized and a new
financial liability shall be recognized in accordance with the modified terms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference
between its book value and the consideration paid (including transferred non-cash assets or liabilities
assumed) into the current profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial
liabilities, and such legal right is currently enforceable, and the Company plans to settle the financial assets
on a net basis or realize the financial assets and settle the financial liabilities at the same time, the financial
assets and financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition,
financial assets and financial liabilities shall be listed separately in the balance sheet and shall not be offset
against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer
a liability in an orderly transaction on the measurement date. Where there is an active market for financial
instruments, the Company adopts quotations in the active market to determine their fair values. Quoted price
in active market refers to the price easily obtained from exchanges, brokers, industry associations, pricing
service agencies, etc. on a regular basis, and represents the price of market transactions actually occurred in
fair trading. If there is no active market for financial instruments, the Company uses evaluation techniques
to determine their fair values. Evaluation techniques include reference to prices used in recent market
transactions by parties familiar with the situation and willing to trade, reference to current fair values of other
financial instruments that are substantially the same, discounting cash flow technique, option pricing model,
etc. In valuation, the Company adopts valuation techniques that are applicable under 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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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
Commercial acceptance bill
same as the "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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
within the next 12 months or the entire duration.
In addition to the accounts receivable and other receivables that individually assess credit risk, they are
divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Aging portfolio
Portfolio 2 A portfolio of receivables between the ultimate controller and its subordinate units
The portfolio of public maintenance funds and house sales funds deposited in the
Portfolio 3
housing provident fund management center
Portfolio 4 Deposit/margin portfolio
Portfolio 5 The portfolio of reserve fund ledger formed by the Company's staff loan
The accrual method of bad debt reserves for different portfolios:
Item Accrual method
According to the accrual proportion
Aging portfolio
corresponding to the aging period
Portfolio of receivables between the ultimate controlling Referring to the historical credit loss
party and its subordinate units experience, combined with the current
The portfolio of public maintenance funds and house situation and the forecast of future
sales funds deposited into the MPF Management Center economic conditions, the expected credit
Deposit/margin portfolio loss is calculated through the default risk
The portfolio of reserve fund ledger formed by the exposure and the expected credit loss rate
Company's staff loan. within the next 12 months or the entire
duration, and the expected 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 Expected loss rate of Expected loss rate of
Aging
notes receivable (%) accounts receivable (%) other receivables (%)
Within 1 year (including 1 year,
the same below)
Among them: Within the credit
0 0 0
period (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 Expected loss rate of Expected loss rate
Aging of notes receivable accounts receivable of other receivables
(%) (%) (%)
Accounts receivable between the final
0 0 0
controlling party and its subordinate
Public maintenance fund and house sale
fund deposited into MPF Management 0 0 0
Center
Deposit/margin 0 0 0
The reserve fund ledger formed by the
0 0 0
Company's staff loan.
11. Inventory
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(1) Classification of inventory
Inventories mainly include raw materials, work in progress, finished goods, in transit materials
inventory goods, reserve tanker storage commissioned processing, and manufacturing consignment, etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs, processing costs and
other expenditures. The actual cost of inventories upon delivery is calculated using the weighted average
method.
(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
A non-current asset or disposal group is classified as held for sale when its carrying amount will be
recovered principally through a sale transaction rather than through continuous use. The following conditions
need to be simultaneously met to be classified as held for sale: a non-current asset or to-be-disposed portfolio
can be sold immediately under the current conditions based on the practice of selling such asset or to-be-
disposed portfolio in similar transactions; the Company has already decided on the sale plan and obtained
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the
Company has control, joint control or significant influence on the invested entity. The long-term equity
investment of the Company that does not have control, joint control or significant impact on the investee
shall be accounted as a financial asset measured at fair value with its changes included into the current profits
and losses. Among them, if it is non-transactional, the Company may choose to designate it as a financial
asset measured at fair value and its changes are included in the accounting of other comprehensive income
at the time of initial recognition. For details of its accounting policies, please refer to Note 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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,
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
net profit or loss, other comprehensive income and profit distribution of the investee should be transferred
to current investment income when terminating the equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple
transactions until the loss of control. If the above-mentioned transactions are part of a package transaction,
the transactions are treated as a transaction dealing with the equity investment of the subsidiary and losing
control. The difference between the book value of each long-term equity investment corresponding to the
disposal price and the disposal of the equity before loss of control is first recognized as other comprehensive
income, and when the control is lost, it is transferred to the current profit and loss of loss of control.
14．Investment Property
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 canbe 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. 20 “Long-Term Asset Impairment”.
When the self-use property or inventory is converted into investment property or investment property
is converted into self-use property, the book value before conversion is used as the recorded value after
conversion.
When the use of investment property is changed to self-use, the investment property is converted into
fixed assets or intangible assets from the date of change. When the use of self-use property changes to earn
rent or capital appreciation, the fixed assets or intangible assets are converted into investment property from
the date of change. In the case of investment property measured by the cost model when the conversion
occurs, the book value before conversion is used as the entry value after conversion; if it is converted into
investment property measured by the fair value model, the fair value of the conversion date is used as the
entry value after conversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected
to obtain economic benefits from its disposal, the confirmation of the investment real estate shall be
terminated. Disposal income from the sale, transfer, retirement or damage of investment properties is charged
to the current profit and loss after deducting its book value and related taxes and fees.
15. Fixed Assets
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services,
renting or operating management, and having a service life of more than one fiscal year. Fixed assets are
recognized only when the economic benefits associated with them are likely to flow into the Company and
their costs can be reliably measured. Fixed assets are initially measured at cost and taking into account the
impact of projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month
following the scheduled availability. The depreciation period, estimated net residual value rate and annual
depreciation rate of each category of fixed assets are as follows:
Depreciation Depreciation Net salvage Annual depreciation
Category
Method period (Year) rate(%) rate (%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
straight-line 4、5
Machinery equipment 5-28 3.39—19.20
depreciation
straight-line 4、5
Transport facility 5-10 9.50—19.20
depreciation
straight-line
Electronic equipment 3-10 4、5 9.50—32.00
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
book value of the replaced part should be terminated. The subsequent expenditures other than mentioned as
above are recognized in profit or loss in the period in which they are incurred.
The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate
economic benefits by using or disposal. The difference between the disposal income from the sale, transfer,
retirement or damage of the fixed assets less the carrying amount and related taxes is recognized in profit or
loss for the current period.
The Company reviews the useful life, estimated net residual value and depreciation method of fixed
assets at least at the end of the year, and changes as an accounting estimate if changes occur.
16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure, including
various project 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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 (applicable from 1 January 2021)
Right-of-use assets of the Group mainly consist of buildings, power generation and transmission
equipment, plant, machinery and equipment, motor vehicles, furniture and fixtures and others.
At the commencement date of the lease, the Group recognises the right to use the leased assets during
the lease term as a right-of-use asset, including: the initial measurement amount of the lease liability; the
amount of lease payment paid on or before the beginning of the lease term, the amount of lease incentive
already enjoyed shall be deducted if there is a lease incentive; initial direct expenses incurred by the lessee;
the costs that the lessee is expected to incur in order to dismantle and remove the leased asset, restore the
leased asset to the site or restore the leased asset to the state agreed upon in the lease terms. The right-of-use
assets are depreciated on a straight-line basis subsequently by the Group. If the Group is reasonably certain
that the ownership of the underlying asset will be transferred to the Group at the end of the lease term, the
Group depreciates the asset from the commencement date to the end of the useful life of the asset. Otherwise,
the Group depreciates the assets from the commencement date to the earlier of the end of the useful life of
the asset or the end of the lease term.
The Group remeasures the lease liability at the present value of the revised lease payments and adjusts
the carrying amount of the right-of-use assets accordingly, when the carrying amount of the right-of-use
asset is reduced to zero, and there is a further reduction in the measurement of the lease liability, the Group
recognises the remaining amount of the remeasurement in profit or loss for the current period.
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. However, the intangible assets acquired through business combination not
involving enterprises under common control should be measured at fair value separately as intangible assets
when their fair values can be reliably measured.
The acquired land use rights are usually accounted for as intangible assets. The related land use rights
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
and building construction costs of self-developed and constructed buildings are accounted for as intangible
assets and fixed assets, respectively. In the case of purchased houses and buildings, the relevant price is
distributed between the land use rights and the buildings. If it is difficult to allocate them reasonably, all of
them are treated as fixed assets.
Since the intangible assets with limited useful life are available for use, the original value minus the
estimated net residual value and the accumulated amount of impairment reserve shall be amortized by the
straight-line method during their expected service life. Intangible assets with uncertain service life shall not
be amortized.
Among them, the useful life and amortization method of intellectual property are as follows:
Item 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
For details of the impairment test method and impairment provision method, please refer to Note Ⅲ.
21 “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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
23. Lease liabilities (applicable from 1 January 2019)
At the commencement date of the lease period, the Group recognises the present value of outstanding
lease payments as a lease liability, excluding short-term leases and leases of low-value assets. The Group
adopts the interest rate implicit in the lease as the discount rate to calculate the present value of the lease
payments. Where the interest rate implicit in the lease cannot be determined, the incremental borrowing rate
of the lessee shall be used as the discount rate. The Group calculates the interest expense of the lease liability
during each period of the lease term in accordance with the constant periodic rate of interest and recognises
it in profit and loss for the current period, except otherwise stipulated in the cost of related assets. The
variable lease payment that is not included in the measurement of lease liabilities is recognised in the profit
and loss for the current period when it actually occurs, except that it is otherwise stipulated to be included in
the cost of relevant assets.
After a lease term commences, when there is a change in the amount of in-substance fixed lease
payments, a change in the amounts expected to be payable under a residual value guarantee, a change in
future lease payments resulting from a change in an index or a rate used to determine those payments, a
change in assessment of an option to purchase the underlying asset, renew or terminate the lease, or change
in the actual exercise of an option, the Group remeasures the carrying amount of the lease liability by
discounting the revised lease payments
24. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognized
as contingent liabilities: (1) The obligation is the present 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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(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 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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the long-
term equity investment of the serviced enterprise according to the fair value of the equity instrument at the
grant date or the fair value of the liability to be assumed, and the capital reserve (other capital reserve) or
liabilities shall be recognized.
b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity
instruments, the share payment transaction shall be treated as equity-settled share payment; if the serviced
enterprise has settlement obligation and grants its employees other than its own equity instruments, the share
payment transaction shall be treated as a cash-settled share payment.
For the share based payment incurred between companies within the group, if the serviced enterprise
and settlement enterprise are not the same, then the payment should be recognized and measured in their
individual financial statements, they should be accounted for using the above principles
26. Revenue
The company's operating income mainly includes income from selling goods, income from providing
services, royalty income, 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,
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
27. Contract cost
1. Contract performance cost
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
28. Government grants
Government grant refers to the company's acquisition of monetary and non-monetary assets from the
government free of charge, excluding the capital invested by the government as an investor and enjoying the
corresponding owner's rights and interests. Government grants include assets-related grants and revenue-
related grants. The company defines the government grant obtained for the purchase and construction of
long-term assets or for the formation of long-term assets in other ways as the government grant related to
assets; the remaining government grant is defined as the government grant related to income. If the object
of grants is not specified in government documents, the grants shall be divided into income-related
government grants and assets-related government grants in the following ways: (1) If the government
document clarifies the specific project for which the grant is targeted, the proportion of the expenditure
amount of the assets to be formed and the amount of the expenditures included in the expenses in the budget
of the specific project are divided, and the proportion of grant division needs to be reviewed on each balance
sheet day and changed if necessary. (2) In government documents, if the purpose is expressed only in general
terms and no specific project is specified, the grant shall be regarded as a government grant related to the
income. Where a government grant is a monetary asset, it shall be measured according to the amount received
or receivable. If the government grants are non-monetary assets, they shall be measured at the fair value; if
the fair value cannot be obtained reliably, they shall be measured at the nominal amount. Government grants
measured in nominal amounts shall be recognized directly in current profits and losses.
The Company usually confirms and measures the government grant according to the amount when it is
actually received. However, if there is conclusive evidence at the end of the period that the relevant
conditions stipulated in the financial support policy can be met and the financial support funds are expected
to be received, it shall be measured according to the amount receivable. Government grants measured in
accordance with the amount receivable shall meet the following conditions at the same time: (1) The amount
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 calculated in accordance
with the loan principal and the policy preferential interest rate.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(2) If the finance allocates the discount funds directly to the company, the company will offset the
corresponding discount against the relevant borrowing costs.
29. 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
measured at the applicable tax rates in the period in which the related assets are recovered or the related
liabilities are recovered in accordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value
of deferred income tax assets is written down if it is likely that sufficient taxable income will not be available
to offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient
taxable income, the amount written down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.
In addition to recognizing that the current income tax and deferred income tax related to other
transactions and matters directly included in shareholder's rights and interests shall be recognized in other
comprehensive income or shareholder's rights and interests, and the book value of adjusted goodwill from
deferred income tax resulting from the merger of enterprises, the other current income tax and deferred
income tax expenses or gains shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time, the company's current income tax assets and current income
tax liabilities shall be presented on a net basis after the offset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a net
basis, and 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.
30. Lease
Finance lease is a lease that essentially transfers all risks and rewards related to the ownership of assets.
Its ownership may or may not be transferred eventually. Leases other than finance leases are operating leases.
(1) The Company records operating lease business as a lessee.
Rental expenses for operating leases shall be included in the related asset costs or current profits and
losses in the straight-line method during each period of the lease period. The initial direct costs shall be
included in the current profits and losses. Contingent rentals shall be recognized in profits and losses when
incurred.
(2) The company records operating lease business as a lessor
The rental income of operating lease shall be recognized as current profit and loss according to the
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
straight-line method during each period of the lease period. The larger initial direct expenses are capitalized
when occurring, and the profits and losses of the current period shall be recorded in stages on the same basis
as the recognized rental income during the whole lease period; the smaller initial direct expenses shall be
recorded in the profits and losses of the current period when occurring. Contingent rentals shall be included
in current profits and losses when actually occurring.
(3) The company records finance lease business as a lessee
At the beginning of the lease period, the lower of the fair value of the leased assets and the present value
of the minimum lease payment on the lease start date is regarded as the entry value of the leased assets, and
the lowest lease payment shall be regarded as the entry value of the long-term payables, and the difference
shall be regarded as the unrecognized financing cost. In addition, the initial direct costs attributable to the
lease project shall also be included in the value of the leased assets when they occur during the lease
negotiation and the signing of the lease contract. The balance of the minimum lease payment after deducting
the unrecognized financing costs shall be presented as long-term liabilities and long-term liabilities due
within one year, respectively.
The unrecognized financing cost shall be calculated by the real interest rate method during the lease
period. Contingent rentals shall be included in current profits and losses when actually occurring.
(4) The company records finance lease business as a lessor
At the beginning of the lease period, the sum of the minimum lease receipt and the initial direct cost on
the lease start date is regarded as the entry value of the financial lease receivable, and the unsecured balance
shall be recorded. The difference between the sum of the minimum lease receivable, the initial direct cost
and the unsecured balance and the sum of its present value is recognized as the unrealized financing income.
The balance of the receivable financial lease after deducting the unrealized financial income shall be
presented as long-term claims and long-term claims maturing within one year, respectively.
The unrealized financing income shall be calculated and confirmed by the real interest rate method
during the lease period. Contingent rentals shall be recognized in current profits and losses when actually
occurring.
31. 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: ① This
component represents an independent major business or a separate major business area. ② This component
is part of an associated plan to dispose of an independent major business or a separate major business area.
③ This component is a subsidiary company acquired specifically for resale.
For the accounting treatment methods for termination of operations, please refer to the relevant
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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.
(3)Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or losses
arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the
non-trading equity instrument investment (or its components) that is measured at fair value and whose
changes are included in other comprehensive income, the gains and losses generated by the hedging
instrument are included in other comprehensive income. The profit or loss of the hedged item due to the
hedged risk exposure shall be included into the current profits and losses, and the book value of the hedged
item shall be adjusted at the same time. If the hedged item is measured at fair value, the gain or loss of the
hedged item due to the hedged risk does not need to adjust the book value of the hedged item, and the relevant
gains and losses are included into the current profits and losses or other comprehensive income.
When the Company cancels the designation of the hedging relationship, the hedging instrument has
expired or been sold, the contract has been terminated or exercised, or no longer meets the conditions for the
application of hedge accounting, the application of hedge accounting shall be terminated.
32. Significant accounting judgments and estimates
In the process of applying accounting policies, due to the inherent uncertainty of business activities, the
Company needs to judge, estimate and assume the book value of statement items that cannot be accurately
measured. These judgments, estimates and assumptions are based on the Company's management's past
historical experience and other relevant factors. These judgments, estimates and assumptions will affect the
reported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities at the
balance sheet date. However, the actual results caused by the uncertainty of these estimates may be different
from the current estimates of the Company's management, resulting in a significant adjustment to the
carrying amount of the assets or liabilities affected in the future.
The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on the
basis of going concern. If the change of accounting estimates only affects the current period of change, the
number of impacts shall be recognized in the current period of change. If the change affects both the current
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 1%、3%、
in the current period, the difference between the sales of 5%、6%、
Value Added Tax goods, taxable services and taxable services income
calculated in accordance with the provisions of the Tax Law 9%、10%、
is the taxable value-added tax. 13%
Urban Maintenance & 7%、5%
According to the actual value-added tax
Construction Tax
Extra charges of According to value added tax and consumption tax on the
3%
education funds basis of actual payment
Local Extra Charges According to value added tax and consumption tax on the
2%
of Education Funds basis of actual payment
25%、20%、
Corporate Taxes According to taxable income
17%、15%
According to 70% of original value of the real estate (or
Property Tax rental income) as the tax base; according to the original value 12%、1.2%
of the real estate deducted 30% at a time.
Representation on tax payers of different enterprise income tax rates:
Tax Payers Income Tax Rate
Hangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd. 20%
Jingliang (Singapore) International Trade Co., Ltd. 17%
Beijing Guchuan Bread Food Co., Ltd. 15%
2. Important preferential tax policies and basis
Hangzhou Linan Little Angel Food Co., Ltd., a grade-4 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(CaiShui [2016] No.52).
The grade-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 grade-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 is exempted from Corporation tax.
Beijing Guchuan Bread&Food Co., Ltd., a grade-3 subsidiary of the Company, is a high-tech
enterprise. 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”. It obtained the certificate of high-tech enterprise No. GR202111000657, valid
until September 14, 2024.
The grade-3 subsidiary Beijing Tianweikang grease Distribution center Co., Ltd., is exempt from
stamp duty on the capital account book in accordance with the Announcement on the Continuation of the
Preferential Tax Policies of Part of the National Commodity Reserves issued by Beijing Municipal Bureau
of Finance and the State Taxation Bureau of Beijing Municipal Taxation Bureau (Beijing Finance Taxation
Bureau [2022] No. 1230) (No. 8 2022). Stamp duty shall be exempted from the purchase and sale contracts
signed in the course of undertaking commodity reserve business, and stamp duty payable by other parties
to the contract shall be levied according to the regulations. Property tax and urban land use tax shall be
exempted from the property tax and urban land use tax for the self-use of the property and land that
undertakes commodity reserve business. The notice will be enforced from January 1, 2022 to December
31, 2023.
Jingliang (Singapore) International Trade Co., Ltd., a grade-3 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
SGD$10,000 of taxable income amount the taxable income amount shall be reduced by SGD$7,500; for
the portion between SGD$10,001 and SGD$200,000, the taxable income amount shall be reduced by
SGD$95,000; For the portion exceeding SGD$200,001, 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.
In accordance with the relevant provisions of Ministry of Finance and State Administration of
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 grade-4 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.
The grade-3 subsidiary Zhejiang Xiaowangzi Foodstuff Co., Ltd. and the grade-4 subsidiary
company-Hangzhou Linan Little Angel Food Co., Ltd. ,are entitled to enjoy the urban land use tax
reduction policy of unified implementation of classification and grading for taxpayers in the manufacturing
industry within the province (including Ningbo City) according to the provisions of the General Office of
the People's Government of Zhejiang Province Document No. 62 of 2019, and enjoy 100% and 80%
reduction of urban land use tax for Class A and Class B enterprises respectively until December 31, 2022,
with the maximum reduction of 100% and 80% of the urban land use tax payable by the Unit for the year.
Linqing Little Prince Food Co., Ltd., a grade-4 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 announcement No.10, 2018 issued
by Shandong Provincial Tax Bureau. The base of stamp duty payable in 2022 shall be calculated according
to 50% of the sales revenue.
The grade-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.
The grade-4 subsidiary-Hangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd. ,
according to the Announcement of the State Administration of Taxation on Matters Relating to the
Implementation of Preferential Income Tax Policies to Support the Development of Small and Micro-profit
Enterprises and Individual Entrepreneurs and State Administration of Taxation Announcement No. 8 of
2021, from January 1, 2021 to December 31, 2022, for small and micro-profit enterprises with annual
taxable income not exceeding RMB1 million The part of the annual taxable income of small and medium-
sized enterprises shall be reduced by 12.5% of the taxable income and the enterprise income tax shall be
calculated at a tax rate of 20%.
Jingliang (Hebei) Oil Industry Co., LTD., the grade-4 subsidiary of the Company, according to the
Announcement of the State Administration of Taxation of the Ministry of Finance No. 8 of 2022, the
Announcement of the State Administration of Taxation of the Ministry of Finance on the Continuation of
the Preferential Tax Policies of some National Commodity Reserves, andJi Fiscal and Taxation No. 8, the
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Notice of Hebei Province on Organizing and carrying out the Tax-free Qualification Declaration of Local
Commodity Storage Enterprises, Stamp duty shall be exempted for the account books of funds, for the
purchase and sale contracts signed in the course of undertaking commodity reserve business, and for the
stamp duty payable by the other parties to the contract according to the regulations. Property tax and urban
land use tax shall be exempted from the property tax and urban land use tax for the self-use of the property
and land that undertakes commodity reserve business. The notice will be enforced from January 1, 2022 to
December 31, 2023. Jingliang (Hebei) Oil Industry Co., LTD., the grade-4 subsidiary of the company, is
exempt from VAT on the sale of government reserve edible vegetable oil in accordance with the Notice of
the State Administration of Taxation of the Ministry of Finance on the Issue of VAT Collection and
Exemption for Grain Enterprises (Fiscal and Taxation No. 198).
The grade-2 subsidiary, Jingliang (Beijing) Food Marketing Management Co., LTD., the grade-4
subsidiary, Linqing Little Prince Food Co., LTD.,and Hangzhou Linan Chunmanyuan Agricultural
Development Co., LTD., are applicable to the fiscal and tax No.10 [2022] issued by the State
Administration of Taxation of the Ministry of Finance on the Further Implementation of the "Six Taxes and
two Fees" Reduction Policy for small and micro Enterprises in this period. The company meets the
requirements for identification as a small and micro enterprise, and the preferential policies applicable in
2022 are as follows: "To be determined by the people's governments of provinces, autonomous regions and
municipalities directly under the Central Government in light of their actual conditions and the need for
macro-control, For small-scale VAT taxpayers, small and low-profit enterprises and individual industrial
and commercial households, resource tax, urban maintenance and construction tax, property tax, urban
land use tax, stamp tax (excluding stamp tax on securities transactions), cultivated land occupation tax,
education fee surcharge and local education surcharge may be reduced within the 50% tax range.
Ⅴ. Changes in accounting policies, accounting estimates, and explanation of corrections to
previous errors
1. Changes in accounting policies
(1)The company adopted the relevant provisions of the Accounting Standards for Enterprises
Interpretation No. 16 (Accounting and Accounting [2022] No. 31) from January 1, 2022. This change in
accounting policy has been no effect on the company's statements.
(2) The company adopted the relevant provisions of Accounting Standards for Business Enterprises
Interpretation No. 15 (Finance and Accounting (2021) No. 35) from January 1, 2022, "Accounting treatment
of products or by-products produced before fixed assets reach the predetermined usable state or in the process
of research and development" and "judgment on loss-making contracts". This change in accounting policy
has been no effect on the company's statements.
2. Changes in accounting estimates
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
There is no change in accounting estimate during the reporting period.
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.
Ⅵ. Notes on Items in Consolidated Financial Statements
Note: The ‘beginning’ of the period refers to January 1, 2022 and the ‘end’ of the period refers to
December 31, 2022. The previous period refers to the year 2021and the current period refers to the year 2022.
1. Monetary funds
(1) Classification list
Items Ending Balance Beginning Balance
Cash 10,693.10 15,012.17
Bank Deposits 541,089,415.35 465,853,913.24
Other Currency Funds 19,913,001.31 41,275,743.04
Total 561,013,109.76 507,144,668.45
Among them: the total amount of money deposited abroad 16,585,678.20 16,432,706.23
(2) At the end of the period, there are 9,573,999.69 yuan of freezing and other restricted funds.
Mainly margin for foreign exchange derivatives business.
(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
11,005,983.98 40,377,048.08
included in current profits and losses
Among them: debt instrument investment 11,005,983.98 40,377,048.08
Total 11,005,983.98 40,377,048.08
3. Derivative financial assets
Items Ending Balance Beginning Balance
Hedging instrument floating profit
201,549.12
and loss
Total 201,549.12
4. Accounts Receivable
(1)Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 53,353,692.33
Among them: Within the credit (within 3 months) 50,652,171.97
Credit period to 1 year 2,701,520.36
1 to 2 years (including 2 years) 18,692,634.64
2 to 3 years (including 3 years) 7,499,480.04
3 to 4 years (including 4 years)
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Aging Ending Balance
4 to 5 years (including 5 years)
More than 5 years 328,259.50
Sub-total 79,874,066.51
Less Bad Debt provision 2,816,619.65
Total 77,057,446.86
（2）Present according to the method of provision for bad debt
Ending Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 328,259.50 0.41 328,259.50 100.00
Portfolio provision for bad debts 79,545,807.01 99.59 2,488,360.15 3.13 77,057,446.86
Among them: portfolio 1 67,813,844.17 84.90 2,488,360.15 3.67 65,325,484.02
portfolio 2 11,731,962.84 14.69 11,731,962.84
Total 79,874,066.51 100.00 2,816,619.65 77,057,446.86
（Continued）
Beginning Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1,324,259.50 1.57 1,324,259.50 100.00
Portfolio provision for bad debts 83,278,298.33 98.43 584,203.71 0.70 82,694,094.62
Among them: portfolio 1 74,329,280.51 87.86 584,203.71 0.79 73,745,076.80
portfolio 2 8,949,017.82 10.58 8,949,017.82
Total 84,602,557.83 100.00 1,908,463.21 82,694,094.62
A. Separate provision for bad debts
Ending Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Beijing Rongfa Lida Grain and Oil expected
163,143.00 163,143.00 100.00
Trade Co., Ltd. unrecoverable
Fujian Jingxin Industrial Group Co., expected
151,844.00 151,844.00 100.00
Ltd unrecoverable
expected
Others 13,272.50 13,272.50 100.00
unrecoverable
Total 328,259.50 328,259.50
B. Portfolio provision for bad debts
1. Portfolio provision: aging portfolio
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year
41,621,729.49 53,832.41 65,611,523.16 34,531.93
(including 1 year)
Among them: Within
the credit (within 3 38,930,117.33 0 63,884,932.01 0
months)
Credit period to 1
2,691,612.16 53,832.41 2 1,726,591.15 34,531.93 2
year
1 to 2 years
18,692,634.64 934,631.73 5 8,594,045.46 429,702.27 5
(including 2 years)
2 to 3 years
7,499,480.04 1,499,896.01 20
(including 3 years)
3 to 4 years
(including 4 years)
4 to 5 years
18,711.89 14,969.51 80
(including 5 years)
More than 5 years 105,000.00 105,000.00 100
Total 67,813,844.17 2,488,360.15 74,329,280.51 584,203.71
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
11,731,962.84 8,949,017.82
portfolio
Total 11,731,962.84 8,949,017.82
（3） details of bad debt provision
The amount changed for the period
Beginning Ending
Items Withdrawal Other
Balance Addition Write-off Balance
or reversal changes
Bad debt
provision on 1,324,259.50 996,000.00 328,259.50
individual basis
Credit
584,203.71 2,012,156.44 108,000.00 2,488,360.15
impairment loss
Total 1,908,463.21 2,012,156.44 1,104,000.00 2,816,619.65
（4）Accounts receivable actually written off in the current period
Items Write-off amount
Beijing Xidan Spicy Temptation Catering Co., Ltd 996,000.00
Hainan Pearl River Pipe Pile Co., Ltd 108,000.00
During the period, the manager's office meeting approved to write off the uncollectible receivables.
（5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Ratio of
Accounts Whether Bad Debt
Debtors totalaccounts Aging
receivable related Provision
receivable (%)
Tangshan Caofeidian District 1-2 years，2-3
25,997,336.04 32.55 No 2,424,788.81
Finance Bureau years
Hangzhou Holmes Food Co., Within 3
4,581,685.96 5.74 No
Ltd. months
Within 3
Shanghai Laiyifen Co.,Ltd. 4,016,604.11 5.03 No
months
Hebei Luanping Huadu Food
3,548,214.00 4.44 4-12 months Yes
Co., Ltd
Zhejiang Lvqin Supply Chain Within 3
3,446,942.24 4.32 No
Management Co., Ltd months
Total 41,590,782.35 52.08 2,424,788.81
5. Advanced Payment
(1) Advances are presented by age
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 194,490,369.48 99.99 87,713,762.15 99.90
1 to 2 years (including 2 years) 5,278.58 0.01 90,000.00 0.10
2 to 3 years (including 3 years)
More than 3 years
Total 194,495,648.06 100.00 87,803,762.15 100.00
(2) Advance payment of the top five Ending Balances by prepaid objects
Ratio of the total ending
Debtor Name Ending Balance balance of prepayments
(%)
China Grains and Oils Co., Ltd 127,549,301.83 65.58
Tianjin Lingang Customs of the People's Republic of China 39,989,746.37 20.56
Xiamen Xiangyu Agricultural Products Co., Ltd 9,658,353.04 4.97
China Grains Reserve Zhenjiang Grain and Oil Co., Ltd 4,117,228.54 2.12
Louis Dreyfus (Tianjin) International Trade Co., Ltd 3,229,405.46 1.66
Total 184,544,035.24 94.89
6. Other Receivables
1.Overview
(1)Classification
Item(s) Ending Balance Beginning Balance
Interest Receivable
Dividend Receivable
Other Receivables 444,523,698.48 284,756,636.27
Total 444,523,698.48 284,756,636.27
2.Other Receivables
A. Disclosed according to aging
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Aging Ending Balance
Within 1 Year (including 1 year) 435,828,243.19
Among them: Within the credit (within 3 months) 435,268,072.23
Credit period to 1 year 560,170.96
1 to 2 years (including 2 years) 7,333,429.30
2 to 3 years (including 3 years) 741,388.00
3 to 4 years (including 4 years) 88,638.00
4 to 5 years (including 5 years) 101,999.99
More than 5 years 430,000.00
Sub-Total 444,523,698.48
Less Bad Debt provision
Total 444,523,698.48
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Guaranteed Deposit and Deposit 436,908,577.53 277,445,730.08
Intercourse Funds of Units 5,728,584.30 6,142,777.03
Employee Receivables 1,051,023.02 755,783.37
Tax Refund Receivables 548,483.77 363,103.93
Personal Intercourse Funds
Others 287,029.86 149,939.71
Total 444,523,698.48 284,857,334.12
C. Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected
loss for the loss for the
Provision for bad debt credit loss in Total
whole period whole period
the next 12
(no credit (with credit
months
impairment) impairment)
Amount on 1st January 2022 100,697.85 100,697.85
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 7,500.00 7,500.00
Transfer for the period
Write off for the period 93,197.85 93,197.85
Other changes
Amount on 31st December 2022
D. Details of bad debt provision
Carrying Amount changes for the period Carrying
Type amount at amount
Addition Withdrawal Write- Other
the at the
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
beginning or reversal off changes end
Credit
impairment 100,697.85 7,500.00 93,197.85
loss
Total 100,697.85 7,500.00 93,197.85
E. Other receivables actually written off in the current period
Items Write-off amount
Actual amount 93,197.85
During the period, t the manager's office meeting approved to write off the uncollectible receivables
F. Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall Ending balance
Name of Nature of Balance at End of
Aging ending balance of other of bad debt
Organization Funds Period
receivables (%) reserves
Zhongtian Futures Futures 269,474,623.60 Within 1 60.62
Co. Ltd margin year
Haitong Futures Futures 111,810,836.00 Within 1 25.15
Co., Ltd margin year
Futures 24,376,100.00 Within 1 5.48
ADM International margin year；1-2
Sarl
years
Sdic Cgog Futures Futures 15,750,181.20 Within 1 3.54
Co., Ltd. margin year
GAVILON CHINA Futures 6,964,600.00 Within 1 1.57
(HK) LIMITED margin year
Total 428,376,340.80 96.36
G. Receivables related to government grants
Name of Aging at the Time, amount and
Carrying amount
Name of the grant company government end of the evidence of expected
at the end
grants period collection
Tax Bureau of Linan All amount will be
Within 3
DIatrict, Hangzhou, Refund of VAT 548,483.77 collected in February
months
Zhejiang Province 2023
Total 548,483.77
7. Inventory
(1) Inventory Category
Ending Balance Beginning Balance
Falling
Items Falling Price
Book Balance Book Value Book Balance Price Book Value
Reserves
Reserves
Raw Materials 445,721,945.85 4,599.51 445,717,346.34 120,983,829.85 120,997.67 120,862,832.18
Revolving
5,267,896.63 5,267,896.63 5,247,229.29 5,247,229.29
Materials
Goods and
materials in 337,276,381.65 337,276,381.65 522,101,505.11 522,101,505.11
transit
Inventory goods 1,081,693,725.26 44,208,166.31 1,037,485,558.95 1,007,319,237.46 355,731.86 1,006,963,505.60
Qil reserve 248,197,500.00 248,197,500.00 248,197,500.00 248,197,500.00
Total 2,118,157,449.39 44,212,765.82 2,073,944,683.57 1,903,849,301.71 476,729.53 1,903,372,572.18
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Decreased Amounts in the
Increased Amounts in
Balance at
the Current Period Current Period Balance at End
Items Beginning of
Recover or of Period
Year Accrual Others Others
Charge Off
Stock Goods 355,731.86 44,037,824.85 185,390.40 44,208,166.31
Raw material 120,997.67 4,599.51 120,997.67 4,599.51
In total 476,729.53 44,042,424.36 306,388.07 44,212,765.82
Note: the basis for the provision of depreciation is the public market quotation.
(3)Stock Goods listed by major product type
Ending Balance Beginning Balance
Items Falling
Falling Price
Book Balance Book Value Book Balance Price Book Value
Reserves
Reserves
Grease
1,048,142,485.94 44,023,263.60 1,004,119,222.34 975,554,568.82 170,341.46 975,384,227.36
and oils
Food 33,551,239.32 184,902.71 33,366,336.61 31,764,668.64 185,390.40 31,579,278.24
Total 1,081,693,725.26 44,208,166.31 1,037,485,558.95 1,007,319,237.46 355,731.86 1,006,963,505.60
8. Non-current assets due within one year
Items Balance at End of Period Balance at Beginning of Period
Three-year term deposits 148,387,894.16 156,139,100.00
In total 148,387,894.16 156,139,100.00
9. Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Financial Products 405,999,000.00 742,800,000.00
Pre-paid Taxes and Fees 15,477,676.61 1,192,806.93
Pending Deduct VAT Input Tax 45,572,085.33 13,930,489.13
Fair Value Changes of Items Trapped
165,881,137.81 62,577,325.41
at Hedging
In total 632,929,899.75 820,500,621.47
10. Long-term Equity Investment
Increase or Decrease in the Current Period
Balance at
Invested Unit Beginning of Confirmed Profit and Loss
Additional Negative
Year on Investment under Equity
Investment Investment
Method
1. Cooperative
Enterprise
Beijing CHIA TAI
112,016,416.64 9,128,159.96
FeedmillCo. ,Limited
Sub-total 112,016,416.64 9,128,159.96
2. Joint Venture
China Grain Reserves
(Tianjin) Warehouse 111,894,762.89 3,612,066.17
Logistics Co., Ltd.
Jingliang 6,888,258.00 -446,589.18
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Increase or Decrease in the Current Period
Balance at
Invested Unit Beginning of Confirmed Profit and Loss
Additional Negative
Year on Investment under Equity
Investment Investment
Method
Missme Catering
Management
(Beijing) Co., Ltd.
Sub-total 118,783,020.89 3,165,476.99
Total 230,799,437.53 12,293,636.95
(Continued)
Increase or Decrease in the Current Period Balance at End Ending
Adjustment of Other Announce to Accrual of Others of Period Balance of
other changes Distribute Case Impairme Impairment
comprehensive in equity Dividends or nt Reserves
income Profits Reserves
460,842.50 121,605,419.10
460,842.50 121,605,419.10
115,506,829.06
6,441,668.82
121,948,497.88
460,842.50 243,553,916.98
11. Other equity instruments investment
Item Ending Balance Beginning Balance
Chongqing long jinbao network technology co. LTD 20,000,000.00 20,000,000.00
China Net Technology Investment Co., Ltd
Total 20,000,000.00 20,000,000.00
12. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Land Use
Items Buildings Total
Right
One. Original Book Value
1. Balance at Beginning of Year 53,844,801.60 53,844,801.60
2. Increased Amounts in the Current Period 978,420.00 978,420.00
(1) Outsourcing
(2) Inventory transfer 978,420.00 978,420.00
(3) Others
3. Decreased Amounts in the Current Period 131,640.00 131,640.00
(1) Disposal
(2) Other transfer out 131,640.00 131,640.00
4. Balance at End of Period 54,691,581.60 54,691,581.60
Two. Accumulated Impairment and Accumulated
Amortization
1. Balance at Beginning of Year 22,331,321.34 22,331,321.34
2. Increased Amounts in the Current Period 2,034,786.32 2,034,786.32
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Land Use
Items Buildings Total
Right
(1) Accrual or Amortization 2,034,786.32 2,034,786.32
3. Decreased Amounts in the Current Period 67,599.00 67,599.00
(1) Disposal
(2) Other transfer out 67,599.00 67,599.00
4. Balance at End of Period 24,298,508.66 24,298,508.66
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
(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 19,805,276.24 19,805,276.24
2. Book Value at Beginning of Year 20,925,683.56 20,925,683.56
13. Fixed Assets
1.Overview
(1)Classification
Items Balance at End of Period Balance at Beginning of Year
Fixed Assets 1,047,451,810.24 1,120,758,409.49
Disposal of Fixed Assets
1,047,451,810.24 1,120,758,409.49
In total
2.Fixed Assets
(1)Fixed Assets Situation
Transportat
Machinery Electronic Office
Items Buildings ion Others Total
Equipment Equipment Equipment
Equipment
One. Original Book
Value
1. Balance at
1,119,870,541.94 788,852,320.80 21,026,928.92 12,402,490.91 7,137,610.08 1,641,296.49 1,950,931,189.14
Beginning of Year
2. Increased
Amounts in the 4,189,847.87 19,975,874.69 1,231,887.12 768,444.03 278,814.60 2,800.00 26,447,668.31
Current Period
(1) Purchase 3,305,780.29 16,136,570.52 1,214,963.12 768,444.03 278,814.60 2,800.00 21,707,372.56
(2) Roll-in of
4,723,371.75
Project under 884,067.58 3,839,304.17
Construction
(3) Roll-in of
16,924.00 16,924.00
inventory
3. Decreased
Amounts in the 1,290,762.00 4,002,972.96 1,800,951.76 140,132.09 400,939.36 7,635,758.17
Current Period
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Transportat
Machinery Electronic Office
Items Buildings ion Others Total
Equipment Equipment Equipment
Equipment
(1) Disposal or
1,290,762.00 4,002,972.96 1,800,951.76 140,132.09 400,939.36 7,635,758.17
Scrap
4. Balance at End
1,122,769,627.81 804,825,222.53 20,457,864.28 13,030,802.85 7,015,485.32 1,644,096.49 1,969,743,099.28
of Period
Two. Accumulated
Impairment
1. Balance at
378,851,324.94 414,055,308.60 13,724,476.80 8,323,942.98 5,502,808.17 592,046.43 821,049,907.92
Beginning of Year
2. Increased
Amounts in the 39,582,154.04 55,390,041.87 1,468,931.52 1,351,336.96 508,694.10 60,051.60 98,361,210.09
Current Period
(1) Accrual 39,582,154.04 55,390,041.87 1,468,931.52 1,351,336.96 508,694.10 60,051.60 98,361,210.09
3. Decreased
Amounts in the 636,122.76 3,667,460.06 1,456,015.76 133,321.41 346,972.60 6,239,892.59
Current Period
(1) Disposal or
636,122.76 3,667,460.06 1,456,015.76 133,321.41 346,972.60 6,239,892.59
Scrap
4. Balance at End
417,797,356.22 465,777,890.41 13,737,392.56 9,541,958.53 5,664,529.67 652,098.03 913,171,225.42
of Period
Three. Impairment
Reserves
1. Balance at
9,047,959.13 74,912.60 9,122,871.73
Beginning of Year
2. Increased
Amounts in the
Current Period
(1) Accrual
(2) Roll-in of
inventory
3. Decreased
Amounts in the 2,808.11 2,808.11
Current Period
(1) Disposal or
2,808.11 2,808.11
Scrap
4. Balance at End
9,047,959.13 72,104.49 9,120,063.62
of Period
Four. Book Value
1. Book Value at
695,924,312.46 338,975,227.63 6,720,471.72 3,488,844.32 1,350,955.65 991,998.46 1,047,451,810.24
End of Period
2. Book Value at
731,971,257.87 374,722,099.60 7,302,452.12 4,078,547.93 1,634,801.91 1,049,250.06 1,120,758,409.49
Beginning of Year
(2)Fixed assets without property right certificate
Project Book Value Reasons for failure to complete certificate of title
Buildings 2,236,948.76 No title certificate for auxiliary assets
14. Project under Construction
1.Overview
(1)Classification
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 22,695,003.52 11,220,840.10
Total 22,695,003.52 11,220,840.10
2.Project under Construction
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(1)Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Impairme
Items Impairmen
Book Balance nt Book Value Book Balance Book Value
t Reserves
Reserves
1. Slope treatment
5,244,356.21 5,244,356.21 3,584,245.07 3,584,245.07
project of No.3 plant
2. Comprehensive
bonded zone feed
processing project 5,224,681.81 5,224,681.81 113,207.54 113,207.54
automation line
project
3. Walnut cake
production line of 4,238,844.00 4,238,844.00 4,234,344.00 4,234,344.00
No.2 plant
4. Konjac test
1,787,067.94 1,787,067.94 364,763.09 364,763.09
facilities
5. Soybean extruding
and rumen soybean
1,618,517.50 1,618,517.50
meal processing
project
6. The second factory
baked potato
953,600.00 953,600.00
matching automation
line
7. Thermal energy
recovery and 856,263.58 856,263.58
utilization project
8. Odor control
792,660.56 792,660.56
project
9. Soy snacks test
542,214.80 542,214.80
facilities
10.West yard
leaching workshop 344,775.86 344,775.86
decoration project
11. New production
line of fried potato 2,038,825.39 2,038,825.39
chips
12. Others 1,092,021.26 1,092,021.26 885,455.01 885,455.01
Total 22,695,003.52 22,695,003.52 11,220,840.10 11,220,840.10
(2) Change Condition of Important Engineering Projects under Construction in the Current Period
Other
Roll-in Fixed Decreased
Balance at Increased
Assets Amount Amounts Balance at End
Project Name Beginning of Amounts in the
in the Current in the of Period
Year Current Period
Period Current
Period
Production line of fried
2,038,825.39 1,840,509.66 3,879,335.05
potato chips
Slope treatment project
3,584,245.07 1,660,111.14 5,244,356.21
of No.3 plant
Walnut cake production
4,234,344.00 4,500.00 4,238,844.00
line of No.2 plant
Konjac test facilities 364,763.09 1,422,304.85 1,787,067.94
Soybean extruding and 1,618,517.50 1,618,517.50
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Other
Roll-in Fixed Decreased
Balance at Increased
Assets Amount Amounts Balance at End
Project Name Beginning of Amounts in the
in the Current in the of Period
Year Current Period
Period Current
Period
rumen soybean meal
processing project
Comprehensive bonded
zone feed processing
113,207.54 5,111,474.27 5,224,681.81
project automation line
project
Total 10,335,385.09 11,657,417.42 3,879,335.05 18,113,467.46
15. Right-of-use asset
Transportation
Items Buildings Land Use Right In total
Equipment
One Original Book Value
1. Balance at Beginning
4,423,305.76 202,276.99 4,970,592.00 9,596,174.75
of Year
2. Increased Amounts in
536,845.51 536,845.51
the Current Period
(1) Lease 536,845.51 536,845.51
3. Decreased Amounts in
108,248.00 108,248.00
the Current Period
(1) Expiration of the lease
108,248.00 108,248.00
or change the lease term
4. Balance at End of
4,423,305.76 630,874.50 4,970,592.00 10,024,772.26
Period
Two Accumulated
Depreciation
1. Balance at Beginning
1,337,882.83 99,917.64 112,968.00 1,550,768.47
of Year
2. Increased Amounts in
1,395,904.55 88,029.04 112,968.00 1,596,901.59
the Current Period
(1) Accrual 1,395,904.55 88,029.04 112,968.00 1,596,901.59
3. Decreased Amounts in
91,324.00 91,324.00
the Current Period
(1)Lease expiration or
91,324.00 91,324.00
change
4. Balance at End of
2,733,787.38 96,622.68 225,936.00 3,056,346.06
Period
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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Transportation
Items Buildings Land Use Right In total
Equipment
4. Balance at End of
Period
Four Book Value
1. Book Value at End of
1,689,518.38 534,251.82 4,744,656.00 6,968,426.20
Period
2. Book Value at
3,085,422.93 102,359.35 4,857,624.00 8,045,406.28
Beginning of Year
16. Intangible Assets
(1) Intangible Assets Situation
Trademark Others
Items Software Land Use Right In total
Right
One Original Book
Value
1. Balance at
4,993,743.75 316,407,869.54 154,841,200.00 662,400.00 476,905,213.29
Beginning of Year
2. Increased Amounts
178,530.09 178,530.09
in the Current Period
(1) Purchase 178,530.09 178,530.09
3. Decreased Amounts
268,565.58 662,400.00 930,965.58
in the Current Period
(1) Disposal 268,565.58 268,565.58
(2)Write-off 662,400.00 662,400.00
4. Balance at End of
5,172,273.84 316,139,303.96 154,841,200.00 476,152,777.80
Period
Two Accumulated
Amortization
1. Balance at
3,882,572.92 68,640,464.95 63,749,297.55 136,272,335.42
Beginning of Year
2. Increased Amounts
294,101.49 6,941,148.03 7,713,925.86 14,949,175.38
in the Current Period
(1) Accrual 294,101.49 6,941,148.03 7,713,925.86 14,949,175.38
3. Decreased Amounts
113,617.34 113,617.34
in the Current Period
(1) Disposal 113,617.34 113,617.34
4. Balance at End of
4,176,674.41 75,467,995.64 71,463,223.41 151,107,893.46
Period
Three Impairment
Reserves
1. Balance at
662,400.00 662,400.00
Beginning of Year
2. Increased Amounts
in the Current Period
(1) Accrual
3. Decreased Amounts
662,400.00 662,400.00
in the Current Period
(1) Disposal
(2)Write-off 662,400.00 662,400.00
4. Balance at End of
Period
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Trademark Others
Items Software Land Use Right In total
Right
Four Book Value
1. Book Value at End
995,599.43 240,671,308.32 83,377,976.59 325,044,884.34
of Period
2. Book Value at
1,111,170.83 247,767,404.59 91,091,902.45 339,970,477.87
Beginning of Year
17. Goodwill
1. Original Book Value of Goodwill
Decrease in the
Name of Invested Balance at Increase in the Current Period
Current Period Balance at End of
Unit or Items Beginning of
Formed by Period
Forming Goodwill Year Others Disposal Others
Enterprise Merger
Acquire stock
shares of Zhejiang
191,394,422.51 191,394,422.51
Xiaowangzi Food
Co., Ltd.
In total 191,394,422.51 191,394,422.51
2. Relevant information about the group or groups of assets that include goodwill
Asset group or portfolio of asset groups
Book value of Main components Book value Determinatio Is there any
goodwill n method change in the
current period
Fixed assets, intangible Income
191,394,422.51 752,620,949.71 No
assets, etc method
Note: Taking December 31, 2022 as the base date of evaluation, Beijing Jingliang Food Co., Ltd.
conducted impairment tests on the goodwill formed by the acquisition of the equity of Zhejiang Little Prince
Food Co., Ltd. The book value of the asset group including goodwill was 752.62 million yuan, and the
recoverable amount was no less than 829.16 million yuan.
The component of group or groups of assets: impairment test for goodwill related asset as group of
asset, main cash in is independent from cash in of other group of assets, this group of assets should be
consistent with the group of assets that was recognized in the impairment test of goodwill on acquisition date
and previous years.
3. Recognition method of goodwill impairment loss and process, key assumptions and key
parameters of goodwill test
1) At the end of the period, the company performed an impairment test on the asset group related to
goodwill. When performing an impairment test on a related asset group or asset group combination that
includes goodwill, if there is an impairment of the asset group or asset group combination related to goodwill
If there are signs, an impairment test is performed on the asset group or combination of asset groups that
does not include goodwill, and the recoverable amount is calculated and compared with the book value to
confirm the corresponding impairment loss. Then perform an impairment test on the asset group or asset
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
group combination that includes goodwill, and compare the book value of the asset group or asset group
combination that contains the distributed goodwill with its recoverable amount. If the relevant asset group
or asset group combination is recoverable, The amount is lower than its book value, and the impairment loss
of goodwill is recognized.
2) Important key assumptions adopted and their basis: 1. As for the actual situation of assets on the
evaluation base date, it is assumed that the company continues to operate; 2. Assume that the cash inflows
rated as units after the evaluation base date are uniform inflows, and cash outflows are uniform outflows;
3.On the basis of the existing management methods and management levels, the company's business scope
and methods are consistent with the current direction; 4. There will be no major changes in the interest rates,
exchange rates, taxation benchmarks and tax rates, and policy levy fees; 5. The management of the unit being
assessed is responsible, stable and capable of performing its duties.
3）Key parameter
Revenue growth Revenue growth
Forecast Pre-tax
Item rate over the rate over the Profit margin
period discount rate
forecast period stable period
Zhejiang Little Calculated based on
Prince Food Co., 2023 to 2026 1.86% 0% forecasted revenue, 16.29%
Ltd. costs, expenses, etc.
4. Impact of goodwill impairment test
After testing, the company's goodwill formed by the acquisition of the operating asset group of
Zhejiang Little Prince Food Co., Ltd. is not impaired.
18. Long-term Unamortized Expenses
Increased
Balance at Amortized Other
Amounts in Balance at End
Items Beginning of Amounts in the Decreased
the Current of Period
Year Current Period Amounts
Period
Reconstruction of
14,214,132.05 674,188.08 13,539,943.97
majuqiao plant
Amortization of
laboratory decoration 1,811,130.71 546,236.69 126,690.09 2,230,677.31
costs
Workshop renovation
579,973.43 63,637.44 516,335.99
and decoration
Factory No.3
compartment 604,558.74 604,558.74
maintenance
Housing renovation 753,996.91 104,986.26 649,010.65
Total 17,383,818.41 1,126,210.12 1,574,060.61 16,935,967.92
19. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1)Deferred Income Tax Assets Not Being Offset
Balance at End of Period Balance at Beginning of Year
Deductible Deductible
Items Deferred Income Tax Deferred Income Tax
Temporary Temporary
Assets Assets
Difference Difference
Asset Impairment 44,268,191.18 11,067,047.80 560,563.61 140,140.91
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Reserves
Lease liabilities 167,668.58 41,917.15 196,089.81 49,022.46
Deductible Loss 1,383,480.84 345,870.21
Credit impairment
3,811,842.32 952,960.58 1,808,563.08 452,140.67
Loss
Deferred Income 11,824,538.36 2,956,134.59 12,097,654.47 3,024,413.62
Wages payable 5,677,134.00 1,419,283.50 5,677,134.00 1,419,283.50
Valuation of Financial
Instruments and
211,060.00 52,765.00 33,944,248.10 8,486,062.03
Derivative Financial
Instruments
Rebate on contracts 3,215,300.44 803,825.11
In total 70,559,215.72 17,639,803.94 54,284,253.07 13,571,063.19
(2)Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Taxable TemporaryDeferred Income Tax Taxable Temporary Deferred Income Tax
Difference Liabilities Difference Liabilities
Valuation and
appreciation of assets
in merger of 144,667,350.88 36,166,837.72 154,787,977.45 38,696,994.37
enterprises not under
the same control
Valuation of Financial
Instruments and
Derivative Financial 54,719,042.81 13,679,760.70 26,215,702.16 6,553,925.54
Instruments
Use right assets 34,449.15 8,612.29
Total 199,420,842.84 49,855,210.71 181,003,679.61 45,250,919.91
(3)Details of Deferred Income Tax Liabilities after Offset
offset amount of Carrying amount after
Carrying amount after
Offset amount of deferred tax assets offsetting between
offsetting between
Items deferred tax assets and liabilities at deferred tax assets and
deferred tax assets and
and liabilities the end of last liabilitie at the end of
liabilities
period last period
Deferred tax asset 3,450,040.01 14,189,763.93 13,571,063.19
Deferred tax
3,450,040.01 46,405,170.70 45,250,919.91
liabilities
(4)Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible temporary differences 200,597.85
Deductible Loss 160,184,970.56 107,793,038.93
In total 160,184,970.56 107,993,636.78
(5)Deductible loss on deferred income tax assets not being confirmed will be due at the following
years
Balance at End of
Year Balance at Beginning of Year Notes
Period
2022 4,021,787.39
2023 9,688,448.81 19,123,515.53
2024 47,153,825.45 47,153,825.45
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Balance at End of
Year Balance at Beginning of Year Notes
Period
2025 25,114,592.05 25,114,592.05
2026 12,221,704.26 12,379,318.51
2027 66,006,399.99
Total 160,184,970.56 107,793,038.93
20. Other Non-current Assets
Ending Balance Beginning Balance
Items Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Three-
year
53,544,782.34 53,544,782.34 189,741,996.74 189,741,996.74
term
deposit
Total 53,544,782.34 53,544,782.34 189,741,996.74 189,741,996.74
21. Short-term Borrowings
1.Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Guaranteed Loan 23,262,063.93
Fiduciary Loan 1,260,543,148.81 1,498,407,537.42
In total 1,260,543,148.81 1,521,669,601.35
22. Derivative financial liability
Item Ending balance Beginning balance
Changes in fair value of hedging instruments 111,373,155.00 70,305,871.37
Total 111,373,155.00 70,305,871.37
23. Notes payable
Items Balance at End of Period Balance at Beginning of Year
Banker's acceptance 3,331,333.80
In total 3,331,333.80
24. Accounts Payable
1. Accounts Payable Listed
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 99,975,435.40 176,725,835.45
Project Funds Payable 8,989,252.43 7,291,515.18
Equipment Funds Payable 765,432.60 1,746,573.40
Others 1,181,756.78 984,822.39
In total 110,911,877.21 186,748,746.42
25. Advance payment
1. Advance payment Listed
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 922,982.41 996,173.41
In total 922,982.41 996,173.41
26. Contract liabilities
1. Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 285,555,581.80 520,816,995.93
In total 285,555,581.80 520,816,995.93
27. Wages Payable
1.List of Wages Payable
Balance at
Increase in the Decrease in the Balance at End of
Items Beginning of
Current Period Current Period Period
Year
Short-term Compensation 40,757,672.48 325,933,902.86 324,471,120.97 42,220,454.37
After-service Welfare- Set up
1,372,978.01 33,710,293.18 33,374,964.80 1,708,306.39
ESP liabilities
Dismission Welfare 548,018.27 548,018.27
In total 42,130,650.49 360,192,214.31 358,394,104.04 43,928,760.76
2.List of Short-term Compensation
Balance at
Increase in the Decrease in the Balance at End of
Items Beginning of
Current Period Current Period Period
Year
1. Wage, Bonus, Allowance and
36,829,352.40 276,915,211.10 275,625,126.04 38,119,437.46
Subsidy
2. Welfare Expense of Employee 20.00 7,631,838.31 7,624,938.31 6,920.00
3. Social Insurance Expense 867,037.88 19,740,023.85 19,774,278.23 832,783.50
Among them: Medical Insurance
766,979.62 18,057,299.33 18,073,987.28 750,291.67
Premiums
Industrial Injury Insurance
65,373.41 1,210,260.23 1,209,421.66 66,211.98
Premiums
Birth Insurance Premiums 34,684.85 320,462.93 338,867.93 16,279.85
Others 152,001.36 152,001.36
4. Housing Provident Funds 129,165.23 16,047,776.66 16,030,347.40 146,594.49
5. Labor Union Expense and
2,932,096.97 5,599,052.94 5,416,430.99 3,114,718.92
Personnel Education Fund
In total 40,757,672.48 325,933,902.86 324,471,120.97 42,220,454.37
3.List of Stated Drawings Plan
Balance at
Increase in the Decrease in the Balance at End of
Items Beginning of
Current Period Current Period Period
Year
1. Basic Pension Insurance 1,281,915.76 29,242,321.17 28,907,287.00 1,616,949.93
2. Unemployment Insurance
44,475.16 963,409.54 964,946.95 42,937.75
Expense
3. Enterprise Annuity Charges 46,587.09 3,504,562.47 3,502,730.85 48,418.71
Total 1,372,978.01 33,710,293.18 33,374,964.80 1,708,306.39
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
28. Taxes and Fees Payable
Balance at Beginning of
Items Balance at End of Period
Year
Corporate Income Tax 39,893,369.93 74,174,903.15
VAT 18,489,749.05 23,320,246.23
Urban Maintenance and Construction Tax 1,352,280.58 1,876,669.91
House Property Tax 2,316,064.99 2,302,350.63
Land Use Tax 150,746.89 176,087.89
Individual Income Tax 2,331,343.41 671,107.90
Educational Surtax 542,273.76 760,843.86
Local Educational Surtax 413,658.90 559,372.28
Stamp Tax 1,135,833.99 500,830.44
Environmental protection tax 3,732.68 5,193.36
Water conservancy construction fee 247.04
In total 66,629,054.18 104,347,852.69
29. Other Accounts Payable
1. Overview
(1)Classification
Balance at Beginning of
Items Balance at End of Period
Year
Interest Payable 21,082,795.47 21,082,795.47
Dividends Payable 3,213,302.88 3,213,302.88
Other Accounts Payable 59,703,587.21 49,689,488.04
In total 83,999,685.56 73,985,586.39
2.Interest Payable
(1)Classification
Items Balance at End of Period Balance at Beginning of Year
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
(1)Classification
Items Balance at End of Period Balance at Beginning of Year
Common stock dividends
Others 3,213,302.88 3,213,302.88
In total 3,213,302.88 3,213,302.88
4.Other Accounts Payable
(1)List of Other Accounts Payable by Nature of Funds
Items Balance at End of Period Balance at Beginning of Year
Guaranteed Deposit and Deposit 18,847,429.40 25,053,238.93
Intercourse Funds between Units 27,733,578.06 9,931,464.29
Intercourse Funds of Related Parties 3,070,641.51 5,722,550.45
Personal Intercourse Funds 3,829,316.55 4,032,688.22
Various Insurances of Employee 2,507,094.75 2,768,202.89
Others 3,715,526.94 2,181,343.26
In total 59,703,587.21 49,689,488.04
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
30. Non-current liabilities due within one year
Item End balance Beginning balance
Current portion of lease liability 1,432,706.14 1,582,978.69
Total 1,432,706.14 1,582,978.69
31. Other current liability
1.Other current liability statement
Item End balance Beginning balance
Value-added tax to be written off 56,184,255.30 22,994,553.60
Total 56,184,255.30 22,994,553.60
32. Long term borrowing
Item End balance Beginning balance Interest Rate
Guaranteed Loan 500,284,166.67 71,000,000.00 2.40%；3.51%
Total 500,284,166.67 71,000,000.00
33. Lease liability
Item End balance Beginning balance
Lease liability 704,390.98 1,694,702.62
34. 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
35. Deferred Income
Balance at Increase in Decrease in
Balance at
Items Beginning of the Current the Current Cause of Formation
End of Period
Year Period Period
Government Subsidy 65,244,499.48 2,626,900.00 3,320,482.12 64,550,917.36
In total 65,244,499.48 2,626,900.00 3,320,482.12 64,550,917.36
Among them, items involving government subsidy are as follows:
Asset
Balance at Increase in
Items Receiving Charge to Other Balance at related /
Beginning of the Current
Subsidy other Profits changes End of Period income
Year Period
related
Enterprise foundation
supporting in the
construction stage of
Asset
"Tianjin Lingang 48,651,619.45 1,277,504.16 47,374,115.29
related
Industrial Zone
Management
Committee"
Special subsidy for
Asset
infrastructure 9,387,794.81 867,756.91 8,520,037.90
related
investment
The relocation Asset
3,847,638.14 384,763.82 3,462,874.32
compensation related
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Asset
Balance at Increase in
Items Receiving Charge to Other Balance at related /
Beginning of the Current
Subsidy other Profits changes End of Period income
Year Period
related
Subsidized by Beijing
Municipal Food and
Strategic Reserves
Asset
Bureau for "Tank 2,626,900.00 104,242.06 2,522,657.94
related
Expansion and
Winterization
Renovation Project
Tianjin Binhai New
District’s Industrially
Technical Renovation
and Park Construction Asset
1,870,370.21 222,222.24 1,648,147.97
Funds as well as related
Expenditures for
Science and
Technology
Key technology
research and
industrialization Asset
700,549.40 77,838.84 622,710.56
project of "moderate related
processing" of grain
and oil
Construction of
provincial grain
reserve information Asset
433,059.98 200,686.32 232,373.66
management system to related
form asset entry
project
Design of electric
Asset
heating system for oil 223,999.76 56,000.04 167,999.72
related
tank
Special subsidies for
Beijing Reserve Asset
129,467.73 129,467.73
Granary Facility related
Maintenance
In total 65,244,499.48 2,626,900.00 3,191,014.39 129,467.73 64,550,917.36
36. Share Capital
Balance at
Changes in the Current Period（+、-）
End of Period
Balance at
Items Beginning of Share
New Share
Year Transfer of
Share Donati Others Sub-total
Provident
Issue on
Fund
1. Shares with
Restricted 42,459,387.00 -1,299,500.00 -1,299,500.00 41,159,887.00
Conditions
(1) State
Shareholding
(2) State-
owned Legal-
149,500.00 -149,500.00 -149,500.00
person
Shareholding
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Balance at
Changes in the Current Period（+、-）
End of Period
Balance at
Items Beginning of Share
New Share
Year Transfer of
Share Donati Others Sub-total
Provident
Issue on
Fund
(3) Other
Domestic
42,309,887.00 -1,150,000.00 -1,150,000.00 41,159,887.00
Capital
Shareholding
Including:
Domestic
1,150,000.00 -1,150,000.00 -1,150,000.00
Legal-person
Shareholding
Domestic
Natural Person 41,159,887.00 41,159,887.00
Shareholding
(4) Foreign
Shareholding
Including:
Foreign Legal-
person
Shareholding
Foreign
Natural Person
Shareholding
2. Tradable
Shares without
684,490,864.00 1,299,500.00 1,299,500.00 685,790,364.00
Restricted
Conditions
(1) RMB
Ordinary 619,515,864.00 1,299,500.00 1,299,500.00 620,815,364.00
Shares
(2)
Domestically
64,975,000.00 64,975,000.00
Listed Foreign
Shares
(3) Listed
Foreign Shares
Overseas
(4) Others
In total 726,950,251.00 726,950,251.00
37. Capital Reserves
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Capital Premium (Stock Premium) 1,322,887,986.38 1,322,887,986.38
Capital Reserves Roll-in Under
112,316,357.36 112,316,357.36
Original System
Other Capital Reserves 240,714,007.21 2,760,000.00 243,474,007.21
In total 1,675,918,350.95 2,760,000.00 1,678,678,350.95
Note: The increase of capital reserve was due to the funds received from the parent company, Beijing
Capital Agriculture Group, for technology projects of RMB2.76 million.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
38. Other Comprehensive Incomes
Amounts Occurred in the Current Period
Less: included in
Less: Other
Amounts other comprehensive
Comprehensive Less: Attributable to Attributable to
Balance at Occurred income in the Balance at
Items Incomes Charged at Income Parent Minority
Beginning before Income previous period and End of
Earlier Stage and Tax Company Shareholders
of Year Tax in the transferred to Period
Current Roll-in Expense After Tax After Tax
Current Period retained income in
Profit and Loss
the current period
One Other
comprehensive
incomes that won’t
be classified into
profit and loss
1. Remeasure and
set the change
amount of benefit
plan
2. Other
comprehensive
income that cannot
be transferred to
profits and losses
under the equity
method
3. Changes in the
fair value of other
equity instrument
investments
4. Changes in fair
value of the
enterprise's own
credit risk
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Two Other
comprehensive
incomes that will -682,282.22 1,688,002.72 1,688,002.72 1,005,720.50
be classified into
profit and loss
1. Other
comprehensive
income transferable
-460,842.50 460,842.50 460,842.50
to 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
comprehensive
income
4. Provision for
credit impairment
of other debt
investment
5. Effective part of
cash flow hedging
6. Converted
difference between
-221,439.72 1,227,160.22 1,227,160.22 1,005,720.50
foreign currency
financial statements
Total -682,282.22 1,688,002.72 1,688,002.72 1,005,720.50
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
39. Surplus Reserves
Balance at Increase in the Decrease in the
Items Balance at End of Period
Beginning of Year Current Period Current Period
Statutory
Surplus 84,487,609.05 84,487,609.05
Reserves
Free Surplus
37,634,827.93 37,634,827.93
Reserves
In total 122,122,436.98 122,122,436.98
40. Undistributed Profit
Amounts in the Current Amounts in the Prior
Items
Period Period
Adjustment on undistributed profit at end of last year 391,493,534.34 187,033,763.26
Adjustment on total number of undistributed profit at
beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 391,493,534.34 187,033,763.26
Add: net profit attributable to parent company in the
141,411,141.28 204,459,771.08
current period
Less: withdrawal legal surplus reserves
Withdrawal free surplus reserves
Withdrawal general risk reserves
Ordinary stock dividends payable
Ordinary stock dividends transferred to capital
Undistributed profit at end of period 532,904,675.62 391,493,534.34
41. 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 12,814,528,584.23 12,224,032,469.41 11,728,067,785.65 11,016,949,345.82
Other Business 43,345,717.49 13,538,869.90 35,026,049.91 20,205,123.68
In total 12,857,874,301.72 12,237,571,339.31 11,763,093,835.56 11,037,154,469.50
2.Prime Business (Industry and Business-classified)
Name of Industry (or Amounts in the Current Period Amounts in the Prior Period
Business) Revenue Cost Revenue Cost
Oil and Oil Seeds 11,857,382,115.06 11,472,403,697.44 10,791,474,243.86 10,317,711,108.68
Food Processing 929,325,889.95 726,226,631.28 920,002,290.84 694,188,764.74
Others 27,820,579.22 25,402,140.69 16,591,250.95 5,049,472.40
In total 12,814,528,584.23 12,224,032,469.41 11,728,067,785.65 11,016,949,345.82
3. Prime Business (Region-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Region
Revenue Cost Revenue Cost
North China 11,243,581,219.52 10,865,636,507.46 10,123,343,396.24 9,651,908,242.01
East China 708,145,491.41 548,423,074.04 686,657,679.09 512,187,178.67
Northeast China 144,611,739.42 117,785,852.01 137,074,930.91 111,781,498.62
South East 718,190,133.88 692,187,035.90 780,991,779.41 741,072,426.52
In total 12,814,528,584.23 12,224,032,469.41 11,728,067,785.65 11,016,949,345.82
42. Tariff And Annex
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction
8,392,378.68 8,123,144.87
Tax
Educational Surtax 3,624,619.60 3,533,840.85
Local Educational Surtax 2,416,413.04 2,355,895.48
House Property tax 7,348,144.90 5,496,760.45
Land Use Tax 1,257,836.62 247,528.32
Stamp Tax 7,306,545.73 3,952,317.43
Vehicle and Vessel Use Tax 45,180.14 40,100.87
Other Taxes and Fees 94,011.04 39,411.60
In total 30,485,129.75 23,788,999.87
43. Sales Expenses
Amounts in the Amounts in the
Items
Current Period Prior Period
Employee Compensation (including social security, etc) 74,865,384.05 77,384,564.22
Warehousing Fees 25,934,599.40 11,180,870.38
Depreciation 15,817,872.17 13,626,528.80
Sales Promotion Expenses 15,397,370.72 24,192,308.99
Operation Expenses 13,233,177.70 3,122,152.06
Travel Expenses 5,280,805.02 6,561,854.51
Lease fee 3,070,223.37 2,000,200.72
Repair Costs 1,987,578.98 1,600,732.45
Terminal Charges 1,724,015.11 1,123,800.00
Water and Electricity Fees 1,378,704.72 1,225,185.96
Material consumption, sample and product cost 1,153,510.24 2,171,906.30
Commodity Wastage 775,915.68 116,599.55
Vehicle Fees 682,797.65 992,762.32
Commercial Insurance Expenses 289,252.25 14,344.90
Test and Detection Fees 177,247.52 226,300.00
Packing Expenses 109,762.53 300,227.81
Business Entertainment Expenses 24,672.00 212,052.40
Labor Protection Fees 139,738.67 185,886.35
Others 1,888,072.26 1,077,840.52
Total 163,930,700.04 147,316,118.24
44. Administration Expenses
Amounts in the Amounts in the
Items
Current Period Prior Period
Employee Compensation (including social security, etc) 138,464,028.57 121,587,427.82
Impairment Costs 18,159,768.04 18,237,865.60
Amortization of Assets 15,771,966.91 15,563,814.96
Fees of Employing Agent 8,709,204.04 13,163,766.91
Company Expenses 7,631,234.58 7,442,124.18
Repair Costs 3,334,959.13 3,259,784.08
Lease fee 3,882,289.68 3,039,488.99
Vehicle Fees 2,145,027.56 2,675,743.19
Security Protection Fees 1,242,530.60 1,469,824.47
Information Network Fees 1,229,220.31 1,312,483.04
Environmental Protection Fees 1,257,895.61 1,304,184.21
Business Entertainment Expenses 665,034.02 1,089,431.81
Commercial Insurance Expenses 1,008,045.58 995,916.41
Workers Insurance Expenses 951,043.23 956,937.28
Travel Expenses 513,023.38 713,609.91
Material Consumption 602,254.49 616,035.77
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Amounts in the Amounts in the
Items
Current Period Prior Period
Labor Protection Fees 468,689.86 489,960.00
Taxes in Expenses 283,703.44 222,145.86
Other Expenses 3,286,845.39 4,627,347.70
In total 209,606,764.42 198,767,892.19
45. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Salary 9,938,209.22 8,705,588.81
Material consumption 3,195,077.96 2,434,367.21
Design expense 566,037.72 391,188.30
Transportation Expense 35,350.00 35,559.99
Others 656,689.27 483,243.65
In total 14,391,364.17 12,049,947.96
46. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 46,001,727.19 42,302,007.06
Less: Interest Income 26,078,234.77 26,216,178.46
Exchange Profit and Loss 1,135,096.75 82,807.14
Service Charges 4,573,991.30 4,954,473.93
In total 25,632,580.47 21,123,109.67
47. Other Profits
Amounts in the Amounts in the
Items
Current Period Prior Period
Government Subsidy Related to Daily Corporate Activities 15,640,947.01 13,801,864.25
Return of Service Charges of Withholding Individual Income Tax 140,778.62 642,939.07
Refund of VAT and surtax 90,280.00
In total 15,781,725.63 14,535,083.32
48. Investment Income
Amounts in the Current Amounts in the
Items
Period Prior Period
Long-term equity investment income accounted with equity
12,293,636.95 37,822,580.24
method
Investment income from disposal of wealth management
5,161,567.20
products
Investment income of disposing trading financial asssets 267,083.33 672,498.85
Investment income obtained during the holding of
751,411.16 387,257.58
transactional financial assets
Others -9,059.80 -4,126.16
In total 13,303,071.64 44,039,777.71
49. Profits on Changes in Fair Value
Amounts in the Amounts in the Prior
Source of generating income with changes in fair value
Current Period Period
Financial assets that are measured as per fair value and for
which the changes are included in the current profit and 61,032,222.12 -66,667,420.88
loss
Including: income with changes in fair value generated by
61,032,222.12 -66,667,420.88
derivative financial instruments
Trading financial liabilities
Investment real estate measured by fair value
In total 61,032,222.12 -66,667,420.88
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
50. Credit impairment loss
Amounts in the Amounts in the Prior
Items
Current Period Period
Accounts receivable bad debt loss -2,012,156.44 -445,289.20
Other receivables bad debt loss 7,500.00 -94,234.26
Total -2,004,656.44 -539,523.46
51. Loss from Asset Devaluation
Items Amounts in the Current Period Amounts in the Prior Period
Loss on Bad Debts
Loss on Inventory Price Drop -43,736,036.29 -306,388.07
In total -43,736,036.29 -306,388.07
52. Assets Disposal Income
Amounts in the Current Amounts in the Prior
Items
Period Period
Gains or losses on disposal of fixed assets 466,027.43 -208,369.12
In total 466,027.43 -208,369.12
53. Non-operating Income
1.Classification
Amounts
Amounts in the Amounts in the Charged to Non-
Items
Current Period Prior Period recurring Profit
and Loss
Total non current assets retirement gains: 2,057.52 72,098.18 2,057.52
Including: fixed assets scrap profit 2,057.52 72,098.18 2,057.52
profit from scrap of intangible assets
Penalty income 4,251,520.44 994,966.56 4,251,520.44
Payable amounts not required to be paid 487,200.03 487,265.26 487,200.03
Government Subsidy 4,502.00 174,221.00 4,502.00
Relocation Compensation 98,462.04 144,789.85 98,462.04
Other Gains 512,488.91 194,032.35 512,488.91
In total 5,356,230.94 2,067,373.20 5,356,230.94
2.Government Subsidy Charged to Non-recurring Profit and Loss
Amounts in the Amounts in the Asset related /
Subsidy projects
Current Period Prior Period income related
Relocation Compensation 119,121.00 Income related
Incentive Funds 45,100.00 Income related
Special subsidies for the activities of "two new" Income related
10,000.00
organisations
Party fee of Jinnan Street Working Committee Income related
4,502.00
Party construction signage production fee
Total 4,502.00 174,221.00 -
54. Non-operating Expenses
Amounts
Amounts in the Amounts in the Charged to Non-
Items
Current Period Prior Period recurring Profit
and Loss
Total loss on scrap of non current assets 114,754.83 157,143.75 114,754.83
Including: loss on scrap of fixed assets 114,754.83 157,143.75 114,754.83
Penalty expenditure 24,500.00
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Amounts
Amounts in the Amounts in the Charged to Non-
Items
Current Period Prior Period recurring Profit
and Loss
Others 1,017,600.52 146,997.54 1,017,600.52
Total 1,132,355.35 328,641.29 1,132,355.35
55. Income Tax Expenses
(1) List of Income Tax Expenses
Amounts in the Prior Amounts in the Current
Amounts in the Current Period
Period Period
Income Tax Expenses of the Current Period 59,796,486.70 106,340,597.83
Deferred Income Tax Expenses 1,274,800.56 -30,089,130.23
Total 61,071,287.26 76,251,467.60
(2)Accounting Profit and Income Tax Expense Adjustment Process
Items Amounts in the Current Amounts in the Prior
Period Period
Total Profits 225,322,653.24 315,485,189.54
Income tax expenses calculated by
56,330,663.31 78,871,297.39
statutory/applicable tax rate
Effect of subsidiary corporations being applicable
104,073.45 -1,844,755.24
to different tax rates
Adjustment on effect of income tax in the prior
-224,302.58 2,489,564.19
period
Effect of Non-taxable Incomes -1,455,172.84 -5,760,010.74
Effect of Non-deductible cost, expense and loss -628,063.16 -879,902.43
Effect of deductible loss on usage of unconfirmed
-4,808,099.36 -5,363,511.97
deferred income tax assets in the prior period
Effect of deductible temporary difference or
deductible loss on unconfirmed deferred income 15,394,079.34 9,498,499.81
tax in the current period
Effect of deductions -3,641,890.90 -795,213.37
Others 35,499.96
Income Tax Expenses 61,071,287.26 76,251,467.60
56. 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, 38 Other
Comprehensive Incomes’
57. Notes to items related cash flow statement
(1) Receiving other cash related to operation activities
Amounts in the Amounts in the Prior
Items
Current Period Period
Future Margins 1,820,481,225.64 1,459,292,560.77
Intercourse Funds of Other Units 534,241,370.31 106,778,161.58
Interest Income 26,078,234.77 17,053,537.35
Intercourse Funds of Related Parties 3,821,301.49 3,304,968.87
Non-operating Income and other income 10,776,175.29 4,106,124.86
Others 2,634,069.26 3,238,949.73
Total 2,398,032,376.76 1,593,774,303.16
(2) Other Cash Payment Related to Operation Activities
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Amounts in the Amounts in the Prior
Items
Current Period Period
Future Margins 2,497,012,200.80 1,594,071,648.75
Payment for Administration Expenses 36,287,576.64 43,378,783.81
Intercourse Funds of Other Units 738,586,568.78 13,893,169.13
Payment for Operating Expenses 59,884,525.22 56,305,025.22
Intercourse Funds of Related Parties 3,542,441.19 7,669,514.72
Bank Charges 4,573,991.30 4,879,506.88
Petty Cash Paid 198,860.83
Non-operating Expenses 319,994.72 90,694.64
Others 7,399,437.03 6,689,174.26
In total 3,347,606,735.68 1,727,176,378.24
(3) Other cash received related to financing activities
Amounts in the Amounts in the Prior
Items
Current Period Period
Subsidies related to R&D from Beijing Capital
2,760,000.00 1,090,000.00
Agriculture Group
In total 2,760,000.00 1,090,000.00
(4) Other cash paid related to financing activities
Amounts in the Amounts in the Prior
Items
Current Period Period
Lease payment amount 1,238,815.56 937,516.52
In total 1,238,815.56 937,516.52
58. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Amounts in the
Supplementary Materials
Current Period Prior Period
1. Adjusting net accounting profit to operating cash
flow
Net Profit 164,251,365.98 239,233,721.94
Add: Assets Impairment Reserves 43,736,036.29 306,388.07
Credit impairment loss 2,004,656.44 539,523.46
Fixed Assets Depreciation, Oil-and-gas Assets
Depreciation and Productive Biological Assets 101,992,898.00 98,490,827.18
Depreciation
Amortization of Intangible Assets 14,949,175.38 14,810,005.45
Amortization of Long-term Deferred Expenses 1,574,060.61 798,985.59
Losses on Disposal of Fixed Assets, Intangible Assets and
Other Long-term Assets (Fill in profit with symbol “－”) -311,079.19 208,369.12
Losses on Retirement of Fixed Assets (Fill in profit with
112,697.31 85,045.57
symbol “－”)
Losses on Changes in Fair Value (Fill in profit with
symbol “－”) -61,032,222.12 66,667,420.88
Financial Expenses (Fill in profit with symbol “－”) 46,001,727.19 42,302,007.06
Investment Losses (Fill in profit with symbol “－”) -13,303,071.64 -44,039,777.71
Decrease in Deferred Income Tax Assets (Fill in increase
-618,700.74 -10,224,248.92
with symbol “－”)
Increase in Deferred Income Tax Reliabilities (Fill in
decrease with symbol “－”) 1,154,250.79 -19,864,881.31
Decrease in Inventory (Fill in increase with symbol “－”) -214,308,147.68 -682,307,723.74
Decrease in Items of Operating Receivables (Fill in
-261,629,758.95 461,225,511.97
increase with symbol “－”)
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Amounts in the Amounts in the
Supplementary Materials
Current Period Prior Period
Increase in Items of Operating Receivables (Fill in
decrease with symbol “－”) -357,804,834.70 464,008,881.83
Others
Net Cash Flows from Operating Activities -533,230,947.03 632,240,056.44
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 551,439,110.07 506,928,810.69
Less: cash balance at beginning of period 506,928,810.69 334,389,017.41
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 44,510,299.38 172,539,793.28
(2) Composition of cash and cash equivalents
Balance at End of Balance at Beginning
Items
Period of Period
One Cash 551,439,110.07 506,928,810.69
Including: cash in stock 10,693.10 15,012.17
Bank deposit available for payment at any time 531,515,415.66 465,650,779.09
Other currency funds available for payment at any time 19,913,001.31 41,263,019.43
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
551,439,110.07 506,928,810.69
Period
Including: restricted cash and cash equivalents used by
parent company or intra-group affiliates
59. Assets with restricted ownership or right to use
Items Book Value at End of Period Reasons being Restricted
Currency Funds 9,573,999.69 use restriction
Investment Real Estate 5,539,676.69 Litigation Freeze
Fixed Assets 5,408,424.76 Litigation Freeze
In total 20,522,101.14
60. Monetary Items of Foreign Currency
(1) Monetary Items of Foreign Currency
Balance of Foreign
Balance of Converting to
Items Currency at End of Exchange Rate Convert
RMB at End of Period
Period
Monetary fund 3,744,396.83 6.9646 26,078,226.16
Including: US Dollars 3,744,396.83 6.9646 26,078,226.16
Short-term borrowing 30,000,000.00 6.9646 208,938,000.00
Including: US Dollars 30,000,000.00 6.9646 208,938,000.00
(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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
61. Hedging items and related hedging instruments
Please refer to 22. Derivative financial liability under Section VI of the Notes.
62. Government Subsidies
（1）Basic conditions of government grants
Amount recorded in
Type Amount Presentation item
profit and loss
VAT refunds 8,038,527.08 Other income 8,038,527.08
Special subsidy funds for infrastructure Deferred
support fees 63,130,000.00 income、Other 1,277,504.16
income
Special subsidy for infrastructure input 18,176,788.00 Deferred income 867,756.91
Lin'an Economic Information Bureau
840,000.00 Other income 840,000.00
technical transformation subsidy
One-off training allowance for workers 678,600.00 Other income 678,600.00
Subsidy for job stabilization 720,380.96 Other income 720,380.96
Tianjin Port Free Trade Zone
Development and Reform Bureau 2020
522,000.00 Other income 522,000.00
the first to fourth batch of Tianjin special
fund for energy conservation
Lin 'an employment management
403,625.43 Other income 403,625.43
unemployment compensation
Compensation for demolition and Deferred
relocation 7,695,276.34 income、Other 384,763.82
income
Tianjin Binhai New Area industrial Deferred
technological transformation and park
4,000,000.00 income、Other 222,222.24
construction funds and science and
technology expenditure income
Provincial grain reserve information Deferred
management system construction 633,746.30 income、Other 200,686.32
income
Subsidy for the operation of the home for
339,186.70 Other income 339,186.70
the disabled
Training subsidies 180,000.00 Other income 180,000.00
Absorb the VAT credit for the employment
162,000.00 Other income 162,000.00
of ex-soldiers
Economic and Information Bureau Project
150,000.00 Other income 150,000.00
Subsidy
Beijing Municipal Food and Material Deferred
Reserve Bureau "Oil Tank Expansion and income、Other
2,626,900.00 104,242.06
Winter Transformation Project" subsidy
fund income
Transfer training subsidies 87,000.00 Other income 87,000.00
Tianjin Port Free Trade Zone Finance
Bureau Intelligent Manufacturing Special 80,000.00 Other income 80,000.00
Fund (municipal part)
Oil and fat enzymatic moderate refining Deferred
sets of equipment 1,089,743.60 income、Other 77,838.84
income
Research and technology demonstration of
green and clean production equipment and 70,040.65 Other income 70,040.65
technology of edible oil
Green cleaning and oil tank electric 855,179.48 Deferred 56,000.04
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Amount recorded in
Type Amount Presentation item
profit and loss
heating income、Other
income
Tianjin Port Free Trade Zone Finance
Bureau Intelligent Manufacturing Special 50,000.00 Other income 50,000.00
Fund (district-level part)
Security work funds 25,000.00 Other income 25,000.00
The first batch of municipal special funds
for intelligent manufacturing in 2021 by
20,000.00 Other income 20,000.00
the Finance Bureau of Tianjin Port Free
Trade Zone
The top ten tax payers in 2021 20,000.00 Other income 20,000.00
Logistics subsidies for industrial
15,359.00 Other income 15,359.00
enterprises under the financial pull-out
Subsidies for building a food security
15,000.00 Other income 15,000.00
system in 2021
Food emergency fund 15,000.00 Other income 15,000.00
The disabled employment subsidy 12,060.00 Other income 12,060.00
CPC Jinnan Street Working Committee
Non-operating
Party construction sign production fee 4,502.00 4,502.00
income
subsidy
Allocate funds for employment assistance 3,000.00 Other income 3,000.00
Lin 'an District employment
1,500.00 Other income 1,500.00
administration employment subsidy
“Xiaoshushuo” packaging patent subsid 1,000.00 Other income 1,000.00
Tianjin Binhai New Area Development
and Reform Commission market 652.80 Other income 652.80
monitoring information fee
In total 110,662,068.34 15,645,449.01
VII. Change in Consolidation Scope
During this reporting period, the company newly invested and established Jingliang (Beijing) Food
Marketing Management Co., Ltd., and cancelled Jingliang Rural Complex Construction and Operations
(Xinyi) Co., Ltd.,. A total of 18 subsidiaries of the Company were included in the scope of consolidation
on 31 December, 2022
VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Shareholding Voting
Principle
Name of Registered Nature of Ratio (%) rights Mode of
Place of
Subsidiary Place Business ratio Acquisition
Business Direct Indirect
(%)
Beijing Merger under
Investment
Jingliang Food Beijing Beijing 100 100 the same
management
Co., Ltd. control
Jingliang
Agricultural
(Tianjin) Grain Merger under
Product and
and Oil Tianjin Tianjin 70 70 the same
By Product
Industry Co., control
Processing
Ltd.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Shareholding Voting
Principle
Name of Registered Nature of Ratio (%) rights Mode of
Place of
Subsidiary Place Business ratio Acquisition
Business Direct Indirect
(%)
Beijing
Merger under
Jingliang Oil Grain and oil
Beijing Beijing 100.00 100.00 the same
and Fat Co., trade
control
Ltd.
Jingliang Agricultural
Merger under
(Hebei) Oil Product and
Hebei Hebei 51.00 51.00 the same
Industry Co., By Product
control
Ltd. Processing
Beijing Merger under
Grain and oil
Guchuan Edible Beijing Beijing 100.00 100.00 the same
trade
Oil Co., Ltd. control
Agricultural
Beijing Eisen- Merger under
Product and
Lubao Oil Co., Beijing Beijing 100.00 100.00 the same
By Product
Ltd. control
Processing
Beijing
Merger under
Tianweikang
Beijing Beijing Warehousing 100.00 100.00 the same
Oil Distribution
control
Center Co., Ltd.
Beijing Merger under
Food
Guchuan Bread Beijing Beijing 100.00 100.00 the same
Processing
Food Co., 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.
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 100.00 100.00
International by investment
Trade Co., Ltd.
Jingliang Rural
Complex
Construction Land Establishment
Xinyi Xinyi 51.00 51.00
and Operations remediation by investment
(Xinyi) Co.,
Ltd.
Jingliang
(Caofeidian)
Establishment
Agricultural Tangshan Tangshan Plantation 51.00 51.00
by investment
Development
Co., Ltd.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Shareholding Voting
Principle
Name of Registered Nature of Ratio (%) rights Mode of
Place of
Subsidiary Place Business ratio Acquisition
Business Direct Indirect
(%)
Beijing
jingliang gubi Grain and oil Establishment
Beijing Beijing 100 100
oil and grease trade by investment
co. LTD
Jingliang
(Yueyang)
Agricultural Establishment
Grain and Oil Hunan Hunan 65.00 65.00
products by investment
Industry Co.,
Ltd.
Jingliang
(Beijing) Food
Commercial 100.00 Establishment
Marketing Beijing Beijing 100.00
services by investment
Management
Co., Ltd
Note:Jingliang Rural Complex Construction and Operations (Xinyi) Co., Ltd has been cancelled during
this reporting period.
(2)Major non-wholly-owned subsidiaries
Profit And Loss Dividends Balance of
Shareholding Voting rights
Attributable to Distributed to Minority
Ratio of ratio of
Name of Minority Minority Shareholder's
Minority Minority
Subsidiary Shareholders Shareholders Equity at the
Shareholders Shareholders
for the Current for the Current End of the
(%) (%)
Period Period Period
Zhejiang Xiao
Wang Zi Food 5.1134 5.1134 4,725,053.79 5,113,400.00 52,252,502.68
Co., Ltd.
Jingliang
(Tianjin)
Grain and Oil 30 30 17,397,621.09 284,008,095.75
Industry Co.,
Ltd.
Jingliang
(Hebei) Oil
49 49 1,221,358.63 2,430,400.00 37,740,640.31
Industry Co.,
Ltd.
Jingliang
(Caofeidian)
Agricultural 49 49 -1,253,708.09 26,623,337.13
Development
Co., Ltd.
(3) Important financial information on major non-wholly-owned subsidiaries
Ending balance or Amount incurred in the current period
Jingliang
Zhejiang Xiao Jingliang (Tianjin) Jingliang (Hebei) (Caofeidian)
Items
Wang Zi Food Co., Grain and Oil Oil Industry Co., Agricultural
Ltd. Industry Co., Ltd. Ltd. Development Co.,
Ltd.
Current Assets 694,319,525.47 1,765,160,961.33 300,661,982.97 52,730,171.41
Non-current
344,517,064.82 729,047,006.26 78,258,110.59 6,473,916.95
Assets
Total Assets 1,038,836,590.29 2,494,207,967.59 378,920,093.56 59,204,088.36
Current 154,188,477.46 1,184,852,881.71 301,666,004.97 4,870,747.28
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Ending balance or Amount incurred in the current period
Jingliang
Zhejiang Xiao Jingliang (Tianjin) Jingliang (Hebei) (Caofeidian)
Items
Wang Zi Food Co., Grain and Oil Oil Industry Co., Agricultural
Ltd. Industry Co., Ltd. Ltd. Development Co.,
Ltd.
Liabilities
Non-current
17,660,046.22 362,661,433.41 232,373.66
Liabilities
Total Liabilities 171,848,523.68 1,547,514,315.12 301,898,378.63 4,870,747.28
Operating
856,340,284.62 6,622,948,465.03 477,411,579.82 2,805.00
Income
Net Profit (Loss) 102,525,949.60 57,992,070.30 2,492,568.63 -2,558,587.94
Total
Comprehensive 102,525,949.60 57,992,070.30 2,492,568.63 -2,558,587.94
Income
Cash Flow from
Operating 17,184,906.38 -838,336,853.05 -13,671,746.40 -4,948,561.32
Activities
(Continued)
Beginning balance or Amount incurred in the prior period
Jingliang
Jingliang
Zhejiang Xiao Jingliang (Tianjin) (Caofeidian)
Items (Hebei) Oil
Wang Zi Food Grain and Oil Agricultural
Industry Co.,
Co., Ltd. Industry Co., Ltd. Development
Ltd.
Co., Ltd.
Current Assets 545,563,045.64 1,393,747,379.61 272,382,537.61 63,924,854.13
Non-current
496,391,615.83 782,065,202.69 81,817,706.52 677,625.84
Assets
Total Assets 1,041,954,661.47 2,175,812,582.30 354,200,244.13 64,602,479.97
Current
158,579,977.51 1,235,715,663.77 274,199,358.63 7,710,550.95
Liabilities
Non-current
18,912,566.95 51,395,336.36 511,739.20
Liabilities
Total Liabilities 177,492,544.46 1,287,111,000.13 274,711,097.83 7,710,550.95
Operating
827,007,026.15 4,636,677,763.70 399,581,771.45 18,556,537.62
Income
Net Profit (Loss) 106,691,266.57 87,588,683.12 6,610,073.09 5,470,896.35
Total
Comprehensive 106,691,266.57 87,588,683.12 6,610,073.09 5,470,896.35
Income
Cash Flow from
Operating 116,629,645.06 724,136,543.87 108,028,487.75 -3,617,581.51
Activities
2. Equity in Joint Ventures or Affiliates
1. Important Joint Ventures or Affiliates
Name of Joint Principle Shareholding Accounting Treatment
Registered Nature of
Venture or Place of Ratio (%) Methods for Investment in
Place Business
Affiliate Business Direct Indirect Joint Ventures or Affiliates
One Joint
Ventures
1. Beijing
Zhengda Feed Beijing Beijing Manufacturer 50.00 Equity method
Co., Ltd.
Two Affiliates
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Name of Joint Principle Shareholding Accounting Treatment
Registered Nature of
Venture or Place of Ratio (%) Methods for Investment in
Place Business
Affiliate Business Direct Indirect Joint Ventures or Affiliates
1. SINOGRAIN
(Tianjin)
Transportation
Warehousing Tianjin Tianjin 30.00 Equity method
and warehousing
Logistics Co.,
Ltd.
2. Jingliang
Missme
Catering
Beijing Beijing Manufacturer 48.00 Equity method
Management
(Beijing) Co.,
Ltd.
2. Important financial information on major joint ventures
Ending Balance/Current Beginning Balance/Last Term
Amount Amount
Item
Beijing Zhengda Feed Co.,
Beijing Zhengda Feed Co., Ltd.
Ltd.
Current assets 301,420,356.94 259,094,822.42
Including: cash and cash equivalents 21,778,758.99 30,509,860.94
Non-current assets 21,331,443.39 24,949,630.10
Total assets 322,751,800.33 284,044,452.52
Current liabilities 75,869,110.91 59,463,197.04
Non-current liabilities 4,593,536.23 5,112,214.50
Total liabilities 80,462,647.14 64,575,411.54
Minority shareholder's equity
Shareholders' equity attributable to the
242,289,153.19 219,469,040.98
parent company
Share of net assets based on shareholding
121,144,576.60 109,734,520.49
ratio
Adjustments
-- Goodwill
-- Unrealized profits from internal
transactions
-- Other
Book value of equity investment in joint
121,144,576.60 109,734,520.49
ventures
Fair value of equity investment in joint
ventures with open offers
Operating income 333,958,015.25 369,615,151.09
Financial costs -6,897,167.49 -5,587,491.34
Income tax expense 8,234,800.46 14,082,117.12
Net profit 24,398,297.21 43,173,099.79
Net profit from discontinued operations
Other comprehensive income -178,185.00 -211,261.00
Total comprehensive income 24,220,112.21 42,961,838.79
Dividends received from joint ventures in
the current period
3. Important financial information on major affiliates
Beginning Balance/Last Term
Ending Balance/Current Amount
Amount
Item
SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co., Ltd. Warehousing Logistics Co., Ltd.
Current assets 122,303,388.75 104,812,139.17
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Beginning Balance/Last Term
Ending Balance/Current Amount
Amount
Item
SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co., Ltd. Warehousing Logistics Co., Ltd.
Non-current assets 816,481,284.48 555,196,631.04
Total assets 938,784,673.23 660,008,770.21
Current liabilities 110,559,868.69 32,099,278.71
Non-current liabilities 438,856,701.56 250,581,609.08
Total liabilities 549,416,570.25 282,680,887.79
Minority shareholder's equity
Shareholders' equity attributable
389,368,102.98 377,327,882.42
to the parent company
Share of net assets based on
116,810,430.89 113,198,364.73
shareholding ratio
Adjustments
-- Goodwill
-- Unrealized profits from
internal transactions
-- Others
Book value of equity investment
116,810,430.89 113,198,364.73
in affiliates
Fair value of equity investment
in affiliates with open offers
Operating income 73,584,532.63 52,065,840.85
Net profit 12,040,220.56 7,936,827.63
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 12,040,220.56 7,936,827.63
Dividends received from
24,680,000.00
affiliates in the current period
IX. Risks Related to Financial Instruments
The Company's principal financial instruments include equity investment, creditors' investment,
borrowing, accounts receivable, accounts payable, etc. 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. December 31, 2022
Financial assets
Financial assets
measured at fair
Financial assets measured at fair value
Financial asset value and the changes
measured at and the changes Total
items recorded in other
amortized cost recorded in current
comprehensive
profits and losses
income
Monetary funds 561,013,109.76 561,013,109.76
Transactional
11,005,983.98 11,005,983.98
financial assets
Derivative
201,549.12 201,549.12
financial assets
Accounts 77,057,446.86 77,057,446.86
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Financial assets
Financial assets
measured at fair
Financial assets measured at fair value
Financial asset value and the changes
measured at and the changes Total
items recorded in other
amortized cost recorded in current
comprehensive
profits and losses
income
receivables
Other
444,523,698.48 444,523,698.48
receivables
Investment in
other equity 20,000,000.00 20,000,000.00
instruments
Current portion
of non-current 148,387,894.16 148,387,894.16
assets
Other current
405,999,000.00 165,881,137.81 571,880,137.81
assets
Other non-
53,544,782.34 53,544,782.34
current assets
B. December 31, 2021
Financial assets Financial assets
measured at fair measured at fair value
Financial assets
Financial asset value and the and the changes
measured at Total
items changes recorded in recorded in other
amortized cost
current profits and comprehensive
losses income
Monetary funds 507,144,668.45 507,144,668.45
Transactional
40,377,048.08 40,377,048.08
financial assets
Derivative
financial assets
Accounts
82,694,094.62 82,694,094.62
receivables
Other
284,756,636.27 284,756,636.27
receivables
Investment in
other equity 20,000,000.00 20,000,000.00
instruments
Current portion
of non-current 156,139,100.00 156,139,100.00
assets
Other current
742,800,000.00 62,577,325.41 805,377,325.41
assets
Other non-
189,741,996.74 189,741,996.74
current assets
(2) Book value of various financial liabilities on the balance sheet date
A. December 31, 2022
Financial liabilities measured
at fair value and changes Other financial
Financial liability items Total
included in current profits and liability
losses
Short term loans 1,260,543,148.81 1,260,543,148.81
Derivative financial
111,373,155.00 111,373,155.00
liability
Notes payable 3,331,333.80 3,331,333.80
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Financial liabilities measured
at fair value and changes Other financial
Financial liability items Total
included in current profits and liability
losses
Accounts payable 110,911,877.21 110,911,877.21
Other Payables 83,999,685.56 83,999,685.56
Long term loans 500,284,166.67 500,284,166.67
B. December 31, 2021
Financial liabilities measured at
Other financial
Financial liability items fair value and changes included Total
liability
in current profits and losses
Short term loans 1,521,669,601.35 1,521,669,601.35
Derivative financial liability 70,305,871.37 70,305,871.37
Accounts payable 186,748,746.42 186,748,746.42
Other Payables 73,985,586.39 73,985,586.39
Long term loans 71,000,000.00 71,000,000.00
2. Credit Risk
On December 31, 2022, 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:
December 31, 2022
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term loans 1,260,543,148.81 1,260,543,148.81
Derivative financial liability 111,373,155.00 111,373,155.00
Notes payable 3,331,333.80 3,331,333.80
Accounts payable 106,405,184.62 4,506,692.59 110,911,877.21
Other Payables 83,999,685.56 83,999,685.56
(Continued)
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
December 31, 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term loans 1,521,669,601.35 1,521,669,601.35
Derivative financial liability 70,305,871.37 70,305,871.37
Accounts payable 185,082,028.27 1,666,718.15 186,748,746.42
Other Payables 73,985,586.39 73,985,586.39
Long term loans 71,000,000.00 71,000,000.00
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 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 December 31, 2022, the Company's interest-bearing liabilities under floating rate contracts
denominated in RMB amounted to RMB 1,110,543,148.81 and those under fixed rate contracts
denominated in RMB amounted to RMB 150,000,000.00.
(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 December 31, 2022, 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 26,078,226.16 23,046,783.19
Short-term borrowing 208,938,000.00 802,427,368.52
Accounts payable 595,286.36
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.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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
[US dollar] Exchange
Item Gross profit/net profit Increase/(decrease) in
rate Increase
increase /(decrease) shareholders' equity
/(decrease)
The yuan
depreciated against the 5% -9,142,988.69 -9,142,988.69
US dollar
The yuan appreciated
-5% 9,142,988.69 9,142,988.69
against the US dollar
Prior period
Item [US dollar] Exchange
Gross profit/net profit Increase/(decrease) in
rate Increase /
increase /(decrease) shareholders' equity
(decrease)
The yuan depreciated
5% -38,998,793.58 -38,998,793.58
against the US dollar
The yuan appreciated
-5% 38,998,793.58 38,998,793.58
against 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
Fair Values at the End of the Period
First Level Fair Second Level Third Level Fair
Item
Value Fair Value Value Total
Measurement Measurement Measurement
One. Continuous fair value
measurement
Ⅰ. Transactional financial
11,005,983.98 11,005,983.98
assets
1. Financial assets that are
measured at fair value and
whose changes are 11,005,983.98 11,005,983.98
included in the current
profits and losses
(1) Investment in debt
11,005,983.98 11,005,983.98
instruments
(2) Investment in equity
instruments
(3) Derivative financial
assets
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
20,000,000.00 20,000,000.00
equity instruments
Total assets continuously
11,005,983.98 20,000,000.00 31,005,983.98
measured at fair value
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Fair Values at the End of the Period
First Level Fair Second Level Third Level Fair
Item
Value Fair Value Value Total
Measurement Measurement Measurement
Ⅵ.Transactional financial
111,373,155.00 111,373,155.00
liabilities
1. Financial liabilities
measured at fair value with
111,373,155.00 111,373,155.00
changes included in current
profits and losses
Including: transactional
bonds issued
derivative financial liability 111,373,155.00 111,373,155.00
others
2. Financial liabilities
designated as fair value
through profit or loss
Total liabilities
continuously measured at 111,373,155.00 111,373,155.00
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 notes“ 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
Registered
Name of Parent Registered Legal Capital
Company type Nature of Business
Company Place representative (ten thousand
Yuan)
Beijing Grain Wholly state-owned Investment
Beijing Zhang Lijun 90,000.00
Group Co. Ltd. enterprise Management
(Continued)
Proportion of Shares
Proportion of Voting Power
Held by Parent The ultimate controlling
Held by Parent Company in Organization code
Company in the party of the Company
the Company (%)
Company (%)
Beijing State-owned
39.68 39.68 Capital Operation and 91110000700224507H
Management Center
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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 Liubiju Food Co., Ltd Controlled by the ultimate controlling party
Shanghai Shounong Investment Holdings Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co., Ltd Controlled by the ultimate controlling party
Beijing Dahongmen Grain Storage Co., Ltd Controlled by the ultimate controlling party
Beijing Guzhou Food Co., Ltd Controlled by the ultimate controlling party
Hebei Sanyuan Food Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang E-Commerce Co., Ltd Controlled by the ultimate controlling party
Beijing Centennial Liyuan Ecological Agriculture Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Food Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Dahongmen Five Meat Union Food Co., Ltd Controlled by the ultimate controlling party
Beijing Heiliu Animal Husbandry Technology Co., Ltd Controlled by the ultimate controlling party
Beijing Ancient Ship Rice Industry Co., Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co., Ltd Controlled by the ultimate controlling party
Beijing Shoucheng Shanshui Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing Baijiayi Food Co., Ltd Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co., Ltd Controlled by the ultimate controlling party
Beijing Jinggrain Oriental Grain and Oil Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Zhangxin Grain Reserve Co., Ltd Controlled by the ultimate controlling party
Beijing Haidian West Suburb Grain and Oil Supply Station
Controlled by the ultimate controlling party
Co., Ltd
Beijing Food Supply Department No. 34 Supply Department
Controlled by the ultimate controlling party
Co., Ltd
Beijing grain point to net (Beijing) Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co., Ltd Controlled by the ultimate controlling party
Beijing Shounong Commercial Chain Co., Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co.,
Controlled by the ultimate controlling party
Ltd
Beijing Shounong Consumption Poverty Alleviation and
Controlled by the ultimate controlling party
Innovation Center Co., Ltd
Beijing Yunong Quality Agricultural Products Planting Co.,
Controlled by the ultimate controlling party
Ltd
Beijing Shounong Weiye Group Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Xijie Food Co., Ltd Controlled by the ultimate controlling party
Beijing Wang Zhihe Food Co., Ltd Controlled by the ultimate controlling party
Hebei Shounong Modern Agricultural Technology Co., Ltd Controlled by the ultimate controlling party
Shanghai Shouyu Commercial Management Co., Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Group Finance Co., Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Group Co., Ltd Controlled by the ultimate controlling party
Shandong Fukuan Bioengineering Co., Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Jinxing Duck Industry Co., Ltd Controlled by the ultimate controlling party
Beijing Xinderun Agricultural Tourism Development Co.,
Controlled by the ultimate controlling party
Ltd
Beijing Ailai Faxi Food Co., Ltd Controlled by the ultimate controlling party
Beijing North Jing Sugar and Wine Sales Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Jardine Sunshine Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing Shounong University Kitchen Supply Chain
Controlled by the ultimate controlling party
Management Group Co., Ltd
Beijing Jingliang Taiyu Real Estate Co., Ltd Controlled by the ultimate controlling party
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Name of Other Related Party Relationship with the Company
Beijing Grain Science Research Institute Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Green Valley Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Zhujun Grain and Oil Supply Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Logistics Co., Ltd Controlled by the ultimate controlling party
Beijing Sanjiadian Grain Collection and Storage Co., Ltd Controlled by the ultimate controlling party
Beijing Hongyuan Lijun Grain and Oil Supply Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Canal Grain and Oil Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Kyoto Jingu Grain Purchase and Sales Co., Ltd Controlled by the ultimate controlling party
Beijing Children soldiers grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Beijing Longqing Xiadu Military Food Supply Co., Ltd Controlled by the ultimate controlling party
Beijing Desheng Hotel Co., Ltd Controlled by the ultimate controlling party
Beijing Shuangtong Huihe Agricultural Science and Controlled by the ultimate controlling party
Technology Development Co., Ltd
Beijing Shounong Xiangshan Conference Center Co., Ltd Controlled by the ultimate controlling party
Beijing Beijiao Farm Co., Ltd Controlled by the ultimate controlling party
Beijing Yanqing Farm Co., Ltd Controlled by the ultimate controlling party
Beijing Longmen Vinegar Industry Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Biotechnology Group Co., Ltd Controlled by the ultimate controlling party
Tianjin Xincheng Kangda Pharmaceutical Co., Ltd Controlled by the ultimate controlling party
Beijing Xing Fashion Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Taoshan Grain Reserve Co., Ltd Controlled by the ultimate controlling party
Beijing Shenghua Sihe Asset Management Co., Ltd Controlled by the ultimate controlling party
Beijing Grain Co., Ltd Controlled by the ultimate controlling party
Beijing Shounong Grain Reserve Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Gurun Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Emergency Security Center Co., Ltd Controlled by the ultimate controlling party
6. Related-party Transactions
1. Related-party transactions for purchasing and selling goods and provision and acceptance of
labor services
(1) Purchase of goods or acceptance of labor services
Related-party Last Term
Related Party Current Amount
Transaction Amount
Beijing Guzhou Food Co., Ltd Purchase of goods 6,710,236.13 17,625,723.68
Beijing Ancient Ship Rice Industry Co., Ltd Purchase of goods 3,858,763.79
Beijing Huadu Liquor Marketing Co., Ltd Purchase of goods 3,467,637.93
Beijing Yueshengzhai Halal Food Co., Ltd
Purchase of goods 1,108,183.58 562,891.05
Beijing Jinggrain Oriental Grain and Oil
Purchase of goods 654,830.57 405,452.28
Trading Co., Ltd
Beijing Shounong Grain Reserve Co., Ltd Storage fees 631,603.77 493,822.64
Beijing Food Supply Department No. 34
Purchase of goods 361,095.16
Supply Department Co., Ltd
Beijing Sanyuan Food Co., Ltd Purchase of goods 317,488.99 280,809.77
Shandong Fukuan Bioengineering Co., Ltd Purchase of goods 1,117,661.96 780,495.67
Beijing Ershang Meat and Food Group Co.,
Purchase of goods 175,954.99 394,945.43
Ltd
Beijing Wuhuan Shuntong Supply Chain
Purchase of goods 147,448.46
Management Co., Ltd
Shanghai Shounong Investment Holdings Co.,
Purchase of goods 65,000,554.51
Ltd
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Related-party Last Term
Related Party Current Amount
Transaction Amount
Beijing heiliu Animal Husbandry Technology
Purchase of goods 44,080.83 203,640.70
Co., Ltd
Other related units Purchase of goods 371,632.91 306,797.14
(2) Sale of goods/ provision of labor services
Related-party
Related Party Current Amount Last Term Amount
Transaction
Shanghai shounong Investment Holding Co.,
Sale of goods 214,613,311.32 639,999,993.00
Ltd
Beijing Wang Zhihe Food Co., Ltd Sale of goods 66,830,285.30
Hebei Luanping Huadu Foodstuff Co., Ltd. Sale of goods 24,869,269.53 9,820,008.43
Hebei shounong Modern Agricultural
Sale of goods 19,281,001.32 17,038,071.30
Technology Co., Ltd
Beijing Ershang Wangzhihe Food Co.,
Sale of goods 17,523,217.37 62,085,307.44
Ltd.
Beijing Capital Agriculture Group Co., Ltd Provision of
11,113,947.81 599,999.98
services
Shanghai Sunlon Investment Holding Co., Ltd Provision of
5,392,403.90 12,533,333.63
services
Beijing Ershang Xijie Foodstuff Co.,
Sale of goods 7,764,752.62 9,367,917.44
Ltd.
Beijing Jingliang Dongfang grain and Oil
Sale of goods 5,706,941.17 7,259,668.09
Trading Co., Ltd
Beijing Haidian Xijiao grain and oil supply
Sale of goods 4,977,243.14 3,014,544.41
station Co., Ltd
Beijing Guchun Food Co., Ltd Sale of goods 1,398,392.53 15,317,021.38
Beijing Sanyuan Food Co., Ltd Sale of goods 3,936,383.48 747,433.70
Huairou Brewing Factory of Beijing Liubiju
Sale of goods 3,014,449.53 5,207,793.60
Food Co., Ltd
Beijing Wuhuan Shuntong Supply Chain
Sale of goods 2,807,417.64 1,604,476.13
Management Co., Ltd
Beijing Zhujun grain and oil supply Co., Ltd Sale of goods 2,589,779.81 2,406,903.69
Beijing Liubiju Food Co., Ltd Sale of goods 2,218,885.41
Beijing food supply office No.34 supply
Sale of goods 1,933,686.47 4,825,987.13
department Co., Ltd
Beijing Children soldiers grain and oil supply
Sale of goods 1,790,825.70 2,219,449.54
Co., Ltd
Beijing baijiayi Food Co., Ltd Sale of goods 1,634,422.04 1,172,768.81
Beijing Zhangxin Grain Reserve Co., Ltd Sale of goods 1,487,322.95
Beijing Kyoto Jingu Grain Purchase and Sales
Sale of goods 1,168,807.35
Co., Ltd
Beijing Shounong University Kitchen Supply
Sale of goods 927,483.93
Chain Management Group Co., Ltd
Beijing Lanfeng Vegetable Distribution Co.,
Sale of goods 773,434.88
Ltd
Feed branch of Beijing Sanyuan Seed
Sale of goods 57,112,231.88 47,175,363.45
Industry Technology Co., Ltd
Beijing Shounong Consumption Assistance
Innovation and Entrepreneurship Center Co., Sale of goods 12,896,905.51 15,515,188.10
Ltd.
Beijing shounong Supply Chain Management
Sale of goods 2,427,623.76
Co., Ltd
Beijing Guchun rice Co., Ltd Sale of goods 159,450.49 1,267,478.96
Beijing Jingliang e-commerce Co., Ltd Sale of goods 682,187.95
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing junchengyuan grain and oil purchase
Sale of goods 618,123.86
and Marketing Co., Ltd
Beijing Hongyuan Lijun grain and oil supply
Sale of goods 202,752.29 492,201.84
Co., Ltd
Beijing maliandou special supply station Co.,
Sale of goods 70,642.20
Ltd
Beijing Liangguan Grain and Oil Supply Co.
Sale of goods 11,559.64
Ltd
Beijing Guchuan Food Co., Ltd Provision of
23,691.32
services
Other-related units Sale of goods 2,640,376.49 2,215,034.03
Related-party transactions for purchasing and selling 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.
2. Related-party lease
(1) If the Company is the lessor,
Pricing Lease Income
Type of Lease Income
Lease start Lease basis of Recognized in
Name of Lessee Leased Recognized in
date termination date rental the Current
Asset the Prior Period
income Period
Beijing Until the date on
Vehic
Jingliang E- March1, which the lessee Market
le 22,530.26 11,265.13
commerce Co., 2014 is eligible to price
rental
Ltd. purchase a car
Total 22,530.26 11,265.13
(2)If the Company is the lessee,
Lease Expense Lease Expense
Type of Leased Pricing basis of
Name of Lessee Recognized in the Recognized in the
Asset releasing fee
Current Period Prior Period
Beijing Daxing
National Grain
Purchasing & House leasing Market price 2,339,449.54 1,935,963.30
Storage
Warehouse
Beijing
Shounong
House leasing Market price 2,747,664.01 1,803,247.58
Development
Co., Ltd.
Beijing
Dahongmen
House leasing Market price 626,936.95 623,474.62
Foodstuff
Storage
Beijing Grain
House leasing Market price 1,048,715.69 555,229.36
Group Co., Ltd.
Beijing
Nanyuan Plant House leasing Market price 331,694.32 311,926.61
Oil Factory
Beijing Grain
Group Head House leasing Market price 44,036.70 33,027.52
Company
Total 7,138,497.21 5,262,868.99
3. Other Related-party Transactions
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Related-party Last Term
Guaranteed Party Current Amount
Transaction Amount
Heating fee, cleaning fee,
Beijing Dahongmen Foodstuff Storage 84,663.79 177,183.60
electricity fee
Beijing Shounong Development Co.,
Utilities, property fees 129,970.81 98,847.10
Ltd.
Beijing Haidian Xiangshan Rest House Conference service fees 44,130.38 20,654.60
Beijing Shounong Food Group Finance
Interest income 2,295,571.07 1,589,080.65
Co., Ltd.
Beijing Guchuan Food Co., Ltd.
Brand royalty 2,601,649.71 2,561,865.51
Beijing Guchuan Rice Co., Ltd. Brand royalty 140,583.79 186,540.99
Beijing Jingliang Dongfang Grain and
Brand royalty 2,996.50 2,230.47
Oil Trading Co., Ltd.
Tianjin Juxiang Technology Co., Ltd. Technical Service Fee 1,582.20
4. Remuneration for key management staff
Current Amount (Unit: ten Last Term Amount (Unit: ten
Item
thousand yuan) thousand yuan)
Remuneration for Key
1,168.45 624.05
Management Staff
7. Related-party Receivables and Payables
(1) Receivables
Ending Balance Beginning Balance
Book Balance Provision Book Balance Provision
Item Related-party
for Bad for Bad
Debts Debts
Monetary Beijing shounong Food
339,487,166.55 167,000,000.00
funds Group Finance Co., Ltd
Hebei Luanping Huadu
Receivables 3,548,214.00
Food Co., Ltd
Feed Branch of Beijing
Sanyuan Seed 2,056,939.44 3,000,236.98
Technology Co., Ltd.
Beijing Shounong
Consumption Assistance
Innovation and 1,737,500.00 1,359,375.00
Entrepreneurship Center
Co., Ltd.
Hebei Sanyuan Food
1,685,000.00
Co., Ltd
Beijing Jingliang
Dongfang grain and Oil 1,198,484.00 584,491.00
Trading Co., Ltd
Beijing Zhangxin Grain
665,000.00
Reserve Co., Ltd
Beijing Food Supply
Department No. 34
279,035.00
Supply Department Co.,
Ltd
Beijing baijiayi Food
180,695.00 196,800.00
Co., Ltd
Beijing Grain Dianto Net
(Beijing) Trading Co., 95,120.40
LTD
Beijing Lanfeng 84,200.00
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Ending Balance Beginning Balance
Book Balance Provision Book Balance Provision
Item Related-party
for Bad for Bad
Debts Debts
Vegetable Distribution
Co., Ltd
Beijing Guchun Food
82,800.00 1,260,000.00
Co., Ltd
Beijing Haidian West
Suburb Grain and Oil 82,500.00
Supply Station Co., Ltd
Beijing Shoucheng
Shanshui Real Estate 33,355.00
Co., Ltd
Beijing Yunong Quality
Agricultural Products 3,120.00
Planting Co., Ltd
Shanghai Sunlon
Investment HOLDINGS 1,002,945.54
Ltd.
Beijing Ershang Xijie
621,830.00
Foodstuff Co., Ltd.
Hebei Shounong Modern
Agricultural Technology 369,525.30
Co., Ltd.
Beijing Zhujun grain and
261,500.00
oil supply Co., Ltd
Beijing Dongfang
Agricultural Group
161,106.00
Supply Chain
Management Co., Ltd.
Beijing Guchun rice Co.,
72,688.00
Ltd
Beijing Junyuan grain
and oil purchasing and 43,000.00
Marketing Co., Ltd
Beijing Ershang Yihe
Sunshine Real Estate 15,520.00
Co., Ltd.
Other Beijing Dahongmen
55,232.00
Receivables Grain Storage Co., Ltd
Beijing Guchuan Rice
50,000.00
Industry Co. Ltd
(2) Payables
Item Related-party Ending Balance Beginning balance
Shanghai Sunlon Investment
Contract liability 3,448,410.37 3,943,587.12
HOLDINGS Ltd.
Beijing Liubiju Food Co., Ltd 59,300.00
Beijing Jinggrain Oriental Grain
15,088.20
and Oil Trading Co., Ltd
Beijing Wuhuan Shuntong Supply
3,192.54
Chain Management Co., Ltd
Beijing Shounong Commercial
293.20
Chain Co., Ltd
Payables Beijing Guchun Food Co., Ltd 240,000.00 358,762.54
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Beijing Ershang Dahongmen Five
19,115.04
Meat Union Food Co., Ltd
Beijing Heiliu Animal Husbandry
2,826.00
Technology Co., Ltd
Beijing Centennial Liyuan
110.00
Ecological Agriculture Co., Ltd
Beijing Sanyuan Food Co., Ltd 50.48
Beijing Er Shang Mo Qi Zhong
382.30
Hong Foods Co., Ltd.
Beijing Jingliang Dongfang grain
294.51
and Oil Trading Co., Ltd
Beijing Sunnyum Foods Co.,
31.19
Ltd.
Other payables Beijing Grain Group Co., Ltd. 2,862,750.30 2,819,620.39
Hebei Sanyuan Food Co., Ltd 140,000.00
Beijing Jingliang E-Commerce Co.,
67,891.21
Ltd
Shanghai Sunlon Investment
2,591,003.45
HOLDINGS Ltd.
Beijing Nanyuan vegetable oil
311,926.61
factory Co., Ltd
8. Related-party Commitments
The Company has no related-party commitments this year.
XII. Share based payment
There are no share based payments incurred this year for the company.
XIII. Commitments and Contingencies
By the end of this report, the company and its holding subsidiaries have approved the amount of
guarantee 7.557 billion yuan, and the actual amount of guarantee of the company and its holding
subsidiaries is 1.692 billion yuan, accounting for 55.25% of the company's audited net assets
attributable to the parent company in the latest period, which are all guarantees between the company
and its holding subsidiaries. There is no guarantee provided by the Company and its holding
subsidiary to any entity other than the consolidated statement, and there is no delay in external
guarantee, guarantee involving litigation or loss due to the judgment of loss due to guarantee.
XIV. Events after the Balance Sheet Date
1. Distribution of Profits
As of the financial report date of the company, the 4th meeting of the tenth board of directors in 2023
approved that no profit distribution will be conducted in 2022, which still needs to be approved by the general
meeting of shareholders.
XV. Other Important Matters
1. Annuity Plan
Basic information of annuity: Beijing Jingliang Food Co., Ltd., Beijing Guchuan Oil Co., Ltd., Beijing
Eisen Lubao Oil Co., Ltd., Beijing Jingliang Oil Co., Ltd. and Beijing Guchuan Bread Food Co., Ltd. of the
company participated in the enterprise annuity plan of Beijing shounong Food 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
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
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
Offset Among
Item Food Processing Oil & Grease Other Total
Divisions
Operating
934,354,631.83 17,678,873,948.35 22,309,668.18 -5,777,663,946.64 12,857,874,301.72
income
Operating
728,241,410.75 17,245,110,349.36 21,659,551.22 -5,757,439,972.02 12,237,571,339.31
costs
Operating
123,414,781.16 392,682,828.27 -3,317,815.96 -291,681,015.82 221,098,777.65
profit
Net profit
attributable
96,670,652.60 358,068,801.86 -2,558,587.94 -310,769,725.24 141,411,141.28
to parent
company
Total assets 1,127,860,966.95 10,764,915,919.36 59,204,088.36 -5,846,836,806.71 6,105,144,167.96
Total
179,483,468.37 4,423,841,929.01 4,870,747.28 -1,965,761,823.98 2,642,434,320.68
liabilities
3. Lease
The lessee shall disclose the following information in relation with the lease.
Item Amount
Interest expense 103,722.54
Short-term lease payments charged to current profit or
6,239,496.93
loss
Lease costs for low-value assets recognized in current
profit or loss
Variable lease payments not included in the
measurement of lease liabilities
Income from sublease of right-to-use assets
Total cash outflows related to leases 8,293,070.04
Gains and losses related to sale and leaseback
transactions
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)
4 to 5 years (including 5 years)
More than 5 years
Sub-total
Less: Allowance for bad debts
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Aging Ending Balance
Total
（2）Disclosed 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
Portfolio provision for bad
debts
Among them: Portfolio 1
Total
（Continued）
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts
Portfolio provision for bad debts 108,000.00 100.00 107,400.00 99.44 600.00
Among them: Portfolio 1 108,000.00 100.00 107,400.00 99.44 600.00
Total 108,000.00 107,400.00 600.00
Portfolio provision for bad debts:
Portfolio provision item: aging portfolio
Ending Balance Beginning Balance
Provisi
Name Accounts Bad Debt Accounts Bad Debt Provisio
on
receivable Provision receivable Provision n Ratio
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)
4 to 5 years (including 5
3,000.00 2,400.00 80.00
years)
More than 5 years 105,000.00 105,000.00 100.00
Total 108,000.00 107,400.00
(3) Details of bad debt provision
Carrying Amount changes for the period Carrying
Type amount at the Addition Withdrawal Write-off Other amount at the
beginning or reversal changes end
Bad debt
provision 107,400.00 600.00 108,000.00
Total 107,400.00 600.00 108,000.00
(4) Receivables actually written off in the current period
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Item Amount
Hainan Pearl River Pipe Pile Co. Ltd 108,000.00
During the period, the manager's office meeting approved to write off the uncollectible receivables.
2. Other Receivables
a. Overview
(1) Classification
Item Ending Balance Beginning Balance
Interest receivable
Dividends receivable 150,000,000.00
Other receivables 199,000,000.00 180,000,000.00
Total 349,000,000.00 180,000,000.00
b. Other Receivables
(1) Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 29,000,000.00
Among them: Within credit period (within 3 months) 20,000,000.00
Credit period to 1 year 9,000,000.00
1 to 2 years (including 2 years) 170,000,000.00
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
Sub-total 199,000,000.00
Less: Allowance for bad debts
Total 199,000,000.00
(2) Classification of other receivables by nature of funds
Book Balance at End of Book Balance at
Nature of Funds
Period Beginning of Year
Intercourse Funds of Units 199,000,000.00 180,000,000.00
Petty Cash 93,197.85
Total 199,000,000.00 180,093,197.85
（3）Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected Expected credit loss Expected credit
Provision for bad debt credit loss in for the whole period loss for the whole Total
the next 12 (no credit period (with credit
months impairment) impairment)
Amount on January 1,
93,197.85 93,197.85
2022
Carrying amount on
January 1, 2022 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 93,197.85 93,197.85
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Stage 1 Stage 2 Stage 3
Expected Expected credit loss Expected credit
Provision for bad debt credit loss in for the whole period loss for the whole Total
the next 12 (no credit period (with credit
months impairment) impairment)
Other changes
Balance at December 31,
2022
(4) Details of bad debt provision
Carrying Amount changes for the period
Carrying
amount at Other
Type Addi Withdrawal amount
the Write-off change
tion or reversal at the end
beginning s
Bad debt
93,197.85 93,197.85
provision
Total 93,197.85 93,197.85
(5)Other receivables actually written off in the current period
Item Amount
Employee related funds 93,197.85
During the period, t the manager's office meeting approved to write off the uncollectible receivables
(6) Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall Ending
Name of Balance at End
Nature of Funds Aging ending balance of balance of bad
Organization of Period
other receivables (%) debt reserves
Within 1
Beijing Grain Stock Related party
199,000,000.00 years；1- 100.00
Co., Ltd. borrowing
2years
Total 199,000,000.00
c. Dividend Receivable
Item(s) Ending Balance Beginning Balance
Beijing Jingliang Food Co., Ltd. 150,000,000.00
Total 150,000,000.00
3. Long-term Equity Investment
Ending Balance Beginning Balance
Item Provision for Provision for
Book Balance Book Value Book Balance Book Value
Impairment Impairment
Investment in
2,619,157,283.19 2,619,157,283.19 2,626,437,846.24 2,626,437,846.24
subsidiaries
Total 2,619,157,283.19 2,619,157,283.19 2,626,437,846.24 2,626,437,846.24
(1)Investment in subsidiaries
Ending
Current
Balance of
Invested Beginning Current Current Provision
Ending Balance Provision
Entity Balance Increase Decrease for
for
Impairment
Impairment
Beijing
Jingliang 2,336,639,964.05 2,336,639,964.05
Food Co., Ltd.
Zhejiang little
prince Food 249,017,319.14 249,017,319.14
Co., Ltd
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Jingliang rural
complex
construction
15,280,563.05 15,280,563.05
and operation
(Xinyi) Co.,
Ltd
Jingliang
(Caofeidian)
Agricultural 25,500,000.00 25,500,000.00
Development
Co., Ltd.
Jingliang
(Beijing)
Food
8,000,000.00 8,000,000.00
Marketing
Management
Co., Ltd
Total 2,626,437,846.24 8,000,000.00 15,280,563.05 2,619,157,283.19
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 11,768,886.09 341,162.52 591,060.56 341,162.52
Total 11,768,886.09 341,162.52 591,060.56 341,162.52
5. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income
163,430,984.15 461,597,751.35
calculated by cost method
Total 163,430,984.15 461,597,751.35
XVII. Supplementary Information
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 Amount Note
(1) Gains and losses on disposal of non current assets 308,271.08
(2) Government subsidies included in the current profits and
losses (closely related to the business of the enterprise, except the
7,606,921.93
government subsidies enjoyed 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
1,018,494.49
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)Income from custodial fees obtained from entrusted operations 11,061,512.95
(5) Other non-operating income and expenses other than the
4,374,321.83
above
(6) Other profit and loss items that meet the definition of non
recurring profit and loss
Total non recurring profit and loss 24,369,522.28
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Details of non-recurring profit and loss Amount Note
Less: amount affected by income tax 6,047,575.48
Non recurring profit and loss after deducting the influence of
18,321,946.80
income tax
Including: non recurring profit and loss attributable to the owner
17,113,972.95
of the parent company
Non recurring profit and loss attributable to minority shareholders 1,207,973.85
2. Return on equity and earnings per share
Weighted Return on EPS
Current Profit Average Equity
Basic EPS Diluted EPS
(ROAE) (%)
Net profit attributable to the Company's common
4.73 0.19 0.19
shareholders
Net profit attributable to common shareholders 4.16 0.17 0.17
after deduction of non-recurring gains and losses
Hainan Jingliang Holdings Co., Ltd.
31 March 2023
