HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2023
March 30, 2024
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2023
Part I Important Notes
This Report is based on the full Annual Report of Hainan Jingliang Holdings Co., Ltd. (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a
full understanding of the Company’s operating results, financial position and future development plans,
investors should carefully read the aforesaid full text, which has been disclosed on the media designated by
the China Securities Regulatory Commission (the “CSRC”).
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.
All the Company’s Directors have attended the Board meeting for the review of this Report.
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
Bonus issue from capital reserves
Applicable Not applicable
The Board has approved a final dividend plan as follows: Based on the 726,950,251 Shares on 31
December 2023, a cash dividend for RMB0.71 (tax inclusive) per 10 Shares is to distributed to the
shareholders，with no bonus issue from either profit or capital serves.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
Applicable Not applicable
Part II Key Corporate Information
1. Company Profile
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Stock name JLKG, JL-B Stock code 000505、200505
Stock exchange for stock
Shenzhen Stock Exchange
listing
Contact information Board Secretary Securities Representative
Name Guan Ying Gao Deqiu
8/F, Tower B, Capital Agricultural 8/F, Tower B, Capital Agricultural Science
Science and Innovation Mansion, and Innovation Mansion, Building No.1,
Office address
Building No.1, Community No.8 , Community No.8 , Xinning Street, Daxing
Xinning Street, Daxing District, Beijing District, Beijing
Fax 010-81219987 010-81219987
Tel. 010-81219989 010-81219989
E-mail address guanying@bjjlkg.cn gaodeqiu@bjjlkg.cn
2. Principal Activities or Products in the Reporting Period
(1)Company’s main business
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. Food
processing mainly refers to R&D, production and sales of snack food and bakery products.
(2)Company’s main products
The oils and oilseeds processing business is primarily under the brands of “Gu Chuan”, “Lv Bao”,
“Gu Bi”, “Huo Niao”, etc., with the main products being soybean oil, corn oil, sunflower seed oil, peanut
oil, rapeseed oil, flaxseed oil, olive oil, sesame oil and paste etc. The food processing business is primarily
under the brands of “Little Prince”, “MS Dong”, “Jianqiang de Tudouzai” and “Gu Chuan” etc., with the
main products being potato chips, cakes and pastries and bread.
(3)Emerging Trend in the Industry
The major industry category of the Company is manufacturing,- processing industry of agricultural
and slide-products according to Results of Industry Classification of Listed Companies(code: C13) ，
specifically, the industry belongs to is vegetable oil processing，while gross profit ration is relatively high
for the food processing business. From the perspective of the vegetable oil processing industry, the
minority oils such as sunflower seed oil, tea oil, corn oil and rice bran oil show rapid growth with the
accelerated industrial integration and the increasing accumulation of differentiated competition. From the
perspective of the food processing industry, there is great potential for industrial integration with the
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
diversified consumption demand and the constantly enriched product categories, while there is only a
handful of major brands in the industry.
(4)The Position of the Company in the Industry
The Company has varieties of greater influence brands. Among them, “Gu Chuan” has been awarded
the most influential brand in Beijing several times, ranked 307th overall among the 2023 Top 500 Chinese
Most valuable Brands World Brand Lab, which brand values totaled 310.62 billion Yuan. . “Gu Bi”
sesame oil has been awarded National Sesame Famous Oil Brand, silver award for Beijing International
Catering and Food Expo, gold award for International Brand-name Product etc, with certain competition in
the industry. “Gu Chuan”, “Lv Bao” and “Gu Bi” are time-honored brand in Beijing, “Little Prince”
trademark and Zhejiang Little Prince products have been identified as famous trademark and famous
products in Zhejiang province for many years, with strong competitive in potato chips bulk and individual
packaging segment, top-ranked one in puffed food industry. “Gu Chuan” bread is one of the major supplies
in north China region of Kentucky Fried Chicken, maintaining a certain industry position in Northern
bakery market.
3. Major Accounting Data and Financial Indicators
(1) Key Accounting Data and Financial Indicators 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
31 December 2023 31 December 2022 December 2023 over 31 December 2021
31 December 2022 (%)
Total assets 6,496,782,984.90 6,105,144,167.96 6.41% 6,046,600,058.90
Equity attributable to the
3,167,503,541.44 3,061,661,435.05 3.46% 2,915,802,291.05
listed company’s shareholders
2023-over-2022
2023 2022 2021
change (%)
Operating revenue 11,901,009,211.63 12,857,874,301.72 -7.44% 11,763,093,835.56
Net profit attributable to the
102,348,088.85 141,411,141.28 -27.62% 204,459,771.08
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders 82,678,972.04 124,297,168.33 -33.48% 195,422,832.45
before exceptional items
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Net cash generated from/used
109,486,954.74 -533,230,947.03 120.53% 632,240,056.44
in operating activities
Basic earnings per share
0.14 0.19 -26.32% 0.28
(RMB/share)
Diluted earnings per share
0.14 0.19 -26.32% 0.28
(RMB/share)
Weighted average return on
3.29% 4.73% -1.44% 7.27%
equity (%)
(2) Key Financial Data by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 3,206,922,214.64 1,616,311,993.54 3,217,246,365.63 3,860,528,637.82
Net profit attributable to the listed
37,265,080.42 36,316,714.94 5,095,930.70 23,670,362.79
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 35,596,909.99 22,498,765.62 4,804,225.55 19,779,070.88
exceptional items
Net cash generated from/used in
-94,878,495.30 -42,471,050.49 306,204,203.22 -59,367,702.69
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
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 Number of preferred
ordinary preferred shareholders with
Number of ordinary shareholders at shareholders resumed voting
shareholders at the 58,382 the month-end 58,010 with resumed 0 rights at the 0
period-end prior to the voting rights month-end prior to
disclosure of at the the disclosure of this
this Report period-end Report
Top 10 shareholders(not including through refinancing)
Total shares Shares in pledge, marked
Nature of Shareholding Restricted
Name of shareholder held at the or frozen
shareholder percentage shares held
period-end Status Status
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
BEIJING GRAIN State-owned
39.68% 288,439,561 0 Not applicable 0
GROUP CO., LTD. legal person
BEIJING
STATE-OWNED
CAPITAL State-owned
6.67% 48,510,460 0 Not applicable 0
OPERATION AND legal person
MANAGEMENT
COMPANY LIMITED
Domestic natural Not applicable
WANG YUECHENG 5.43% 39,459,887 30,869,915 0
person
Domestic natural Not applicable
MEI JIANYING 0.36% 2,604,203 0 0
person
Domestic natural Not applicable
WANG ZHIQIANG 0.34% 2,507,123 0 0
person
LISHERYNZHAN Domestic natural Not applicable
0.33% 2,407,700 0 0
MING person
Domestic natural Not applicable
CHEN TIANHUA 0.29% 2,101,100 0 0
person
Domestic natural Not applicable
TONG ZHENZHU 0.27% 1,970,000 0 0
person
Domestic natural Not applicable
ZHANG XIAOXIA 0.27% 1,949,250 0 0
person
Domestic natural Not applicable
WANG XIAOXING 0.23% 1,654,200 0 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 Co., Ltd. is the controlling shareholder of the Company (a
Related or acting-in-concert parties among
39.68% holding). ② Wang Yuecheng is a Deputy General Manager of the
the shareholders above
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 Mei Jianying holds 2,604,203 shares in the Company through his
account of collateral securities for margin trading in Huatai Securities Co.,
Ltd. Shareholder Chen Tianhua holds 2,093,500 shares in the Company
through his account of collateral securities for margin trading in Founder
Shareholders involved in securities margin
Securities Co., Ltd. Shareholder Tong Zhenzhu holds 1,970,000 shares in the
trading (if any)
Company through his account of collateral securities for margin trading in
China Merchants Securities Co.,Ltd.; 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.
Refinancing business participated by the shareholders of top 10
□ Applicable Not applicable
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Changes for the shareholders compared with last-term reporting period
Applicable □Not applicable
Unit: Share
Changes for the shareholders compared with last-term reporting period
Shares of shareholders’ ordinary account,
New Shares of refinancing has not yet been
Name of the credit accounting holding and refinancing
Shareholders/Withd returned at end period
shareholders has not yet been returned at end period
rawing member in
(full name) Proportion of the Proportion of the
the reporting period Number of shares Number of shares
total share capital total share capital
TONG
Addition 0 0.00% 1,970,000 0.27%
ZHENZHU
CHEN TING Withdraw 0 0.00% 236,869 0.03%
(2) Total Preferred Shareholders and Shareholdings of Top 10
□ Applicable Not applicable
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company disclosed as box
chart
5. Outstanding Bonds at the Date when the Report was Authorized for Issue
□ Applicable Not applicable
(1) Basic information of Bond
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Bond Balance(in
Abbreviation Bond Issue Maturity
Name of Bond ten thousands Interest
of Bonds code Date Date
Yuan)
Hainan Jingliang Holdings Co.,
21-22
Ltd 2023 public issuance of 22 Aug
23Jingliang01 148434 Aug 30,000 2.88%
corporate bonds for qualified 2026
2023
investors(1st issue)
Interest payment of corporate bond in the
No
reporting period
(2) Updated follow-up rating and changes of rating on corporate bonds
Corporate credit rating is AA+ in the reporting period.
（3）Major data and financial indicators at the ending of the reporting period for the last two years
Unit: ten thousands Yuan
Item 2023 2022 Increase/decrease year on year
Asset-liability ratio 44.97% 43.28% 1.69%
Net profit after deducting non-recurring gains
8,378.37 14,713.74 -43.06%
and losses
EBITDA’s total debt ratio 18.20% 22.08% -3.88%
Interest cover ratio 3.26 5.90 -44.73%
Part III Significant Events
No significant changes occurred to the Company’s operations in the Reporting Period. For further
information, see the full Annual Report 2023.
Part IV Financial Report
2023 Semi-Annual Financial Report is audited by Independent auditor.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Auditor’s Report
Tianyuanquan Certified Public Accountants [2024] Audit No 000468
All Shareholders of Hainan Jingliang Holdings Co., Ltd.:
I Audit Opinion
We have audited the financial statements of Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as
the "Jingliang Holdings"), which comprise the consolidated balance sheet and balance sheet of parent
company as at December 31, 2023, consolidated income statement and income statement of parent
company, consolidated statement cash flow statement and cash flow statement of parent company,
consolidated statement of changes in shareholders’ equity and statement of changes in shareholders’ equity
of parent company and notes to relevant financial statements in 2023.
In our opinion, the attached financial statements are prepared in accordance with Accounting Standards for
Business Enterprises and Accounting System for Business Enterprises in all major aspects, and fairly
reflect the Jingliang Holdings’s consolidated and parent company's financial position as at December 31,
2023, as well as the consolidated and parent company's operation results and cash flows in 2023.
II Basis of Forming Audit Opinions
We conducted the audit work in accordance with the regulations of Auditing Standards for Chinese
Certified Public Accountant. "Responsibility of Certified Public Accountant for Auditing Financial
Statements", the part of the audit report further elaborated our responsibilities under these standards. In
accordance with the code of professional ethics for the Chinese Certified Public Accountants, we are
independent of Jingliang Holdings and perform other responsibilities in the field of professional ethics. We
believed that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
III Key Audit Matters
We considered that key audit matters are the most important items to audit the current financial statements
according to our professional judgment. These matters shall be dealt with in the context of an audit and
opinion of the financial statements as a whole and we do not comment on these matters in isolation. We
identified the following items as key audit items to be communicated in the audit report.
(I) Revenue confirmation
1. Items Description
In 2023, as stated in the "Note V, (44)" of the financial statements of Jingliang Holdings, the operating
income in the consolidated income statement of Jingliang holdings is RMB11,901,009,211.63, which is
mainly generated from oil and oilseed trading, sales and trade, food production, processing and sales. The
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
occurrence and integrity of operating revenue have a significant impact on the operating results of
Jingliang Holdings. Therefore, we determine the occurrence and integrity of operating revenue as key audit
matters.
2 Audit Response
The main audit procedures we performed are as follows:
(1) Understanding and testing the whole process and relevant system of sales and collection cycle of
Jingliang Holdings, and conducting controlling test on sales and collection cycle and evaluating the
effectiveness of its design and operation;
(2) Checking whether the accounting policies and specific methods of revenue confirmation of Jingliang
Holdings and revenue confirmation timing conform to the requirements of the accounting standards for
business enterprises;
(3) Carrying out the analysis procedure for the operating income, analyzing the rationality of the change of
the gross profit rate of Jingliang Holdings, comparing with the similar indicators in the previous period,
and identifying and investigating the causes of abnormal fluctuations.
(4) Take sampling method to check the contracts, invoices, delivery orders and other original documents
related to revenue confirmation of Jingliang Holdings;
(5) Checking the relevant contracts, invoices, issue order and other revenue recognition documents for the
operating income recognized before and after the balance sheet date of Jingliang Holdings, executing the
cut-off test procedure, and evaluating whether the sales income of Jingliang Holdings is recorded in the
appropriate accounting period;
(6) Performing confirmation procedures for accounts receivable and conducting substitution tests on
unresponded samples.
(II) Goodwill Impairment Provision
1. Items Description
As at December 31, 2023, as stated in "Note V. 18" of consolidated financial statement of Jingliang
Holdings, the goodwill amount in the consolidated balance sheet of the company is RMB 191,394,422.51,
which was generated from acquiring Zhejiang Little Prince Food Co., Ltd. (hereinafter referred to as the
“Zhejiang Little Prince”) in 2015. The management conducted impairment test on the mentioned goodwill
according to the accounting policy of "Note III, (23)" of the financial statements of Jingliang Holdings,
determined the recoverable amount of the asset group containing the goodwill based on the prediction of
present value of the expected future cash flow on the basis of the continuous operation, and considered that
provision for impairment of goodwill is not required.
The key parameters used in the impairment test of goodwill included expected revenue growth rate, pre-tax
operating profit rate, and discount rate etc., which may involve significant accounting estimation and
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
judgment. The management face the risk of preference when selecting assumptions and estimations.
Therefore, we determined the impairment provision of goodwill as a key audit matter.
2. Audit Response
The main audit procedures we performed are as follows:
(1) Understanding and evaluating the design of internal control related to the goodwill impairment test and
effectiveness of key control execution, which includes the adopted key assumptions and parameters and
the relevant internal control;
(2) Evaluating the appropriateness of the goodwill impairment test method adopted by the management.
We evaluate the rationality of the main assessment assumptions and the key parameters used in the
goodwill impairment test, such as the expected income, growth rate, pre-tax operating profit rate, and
discount rate through analyzing of the main economic indicators of past years, interviewing with the
management, considering the market development, and comparing the industry or market data.
(3) Testing the accuracy of the calculation process of goodwill impairment test;
(4) Evaluating the accuracy of the prediction of the realized annual data. For example, comparing the
expected future cash flow of the previous year or acquisition time with the actual business performance in
the current year and considering any management bias that exist in the process of goodwill impairment test
that conducted by management.
(5) For the goodwill impairment test report prepared by the third-party experts employed by the audited
unit, in addition to the audit procedures (1) to (4) above, the audit team also evaluates the competency,
professional quality and objectivity of the third-party experts and records the evaluation results in the audit
draft, which includes obtaining the professional qualification of the third-party experts, such as having the
securities period We have evaluated the accuracy of the forecast data for the year of realization, such as
business license of an appraisal institution with securities and futures qualification and the qualification
certificate of the asset appraiser, etc.
IV Other Information
The management of Jingliang Holdings (hereinafter referred to as management) was responsible for other
information, which includes information covered in Jingliang Holdings 2023 annual report, but not the
financial statements and our audit report.
Our audit opinions on the financial statements didn’t cover other information, and we do not publish any
form of assurance conclusion of other information.
In combination with our audit of the financial statements, our responsibility is to read other information
and consider any material inconsistencies or material misstatement appears between other information and
the financial statements or the situation we learned in the audit process
Based on the work we have performed, we are expected to report the fact of recognized material
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
misstatement in other information. In this respect, we do not have any matters to report.
V Responsibilities of Management and Governance for Financial Statements
The management is responsible for preparing the consolidated financial statements in accordance with the
Accounting Standards for Business Enterprises to achieve fair reflection and to design, implement and
maintain necessary internal controls to ensure that the consolidated financial statements are free from
material misstatement due to fraud or error.
When preparing the financial statements, management is responsible for assessing the sustainable
operation capability of Jingliang Holdings, disclosing matters related to the sustainable operation (if
applicable), and applying the continuing operation assumption, unless management plans to liquidate the
Jingliang Holdings, terminate operations, or have no other realistic options.
The governance is responsible for supervising the financial reporting process of Jingliang Holdings.
VI The Responsibility of Certified Public Accountants for Auditing Financial Statements
Our goal is to obtain reasonable assurance on no material misstatement due to fraud or error in the whole
financial statements and to issue an audit report containing audit opinions. Reasonable assurance was a
high level of assurance, but it does not guarantee that the material misstatement in audit process in
accordance with the audit standards can always be found. Misstatements may result from fraud or error and
are generally considered to be material if the individual or aggregated misstatements are reasonably
expected to affect the economic decisions made by users of the financial statements on the basis of the
consolidated financial statements.
In the process of performing the audit in accordance with the audit standards, we exercise professional
judgment and maintain professional skepticism. Meanwhile, we also implement the following work:
(1) Identifying and assessing the risk of material misstatement in the consolidated financial statements
due to fraud or error, designing and implementing audit procedures to address these risks, and obtaining
sufficient and appropriate audit evidences as the basis for issuing audit opinions. Since fraud may involve
collusion, forgery, willful omission, misrepresentation or overriding internal control, the risk of failing to
recognize a material misstatement resulting from fraud is higher than the risk of failing to recognize a
material misstatement resulting from error.
(2) Understanding internal controls related to audit to design appropriate audit procedures.
(3) Evaluating the appropriateness of accounting policies adopted by management and the rationality of
accounting estimates and relevant disclosures.
(4) Drawing conclusions about the appropriateness of going concern assumption adopted by management.
Meanwhile, drawing conclusions about the matters that may lead to significant doubts about sustainable
operation capacity of Jingliang Holdings or significant uncertainties of situation. If we concluded that
significant uncertainties exist, according to the requirements of the audit standards, we should draw the
attention of statement users to the relevant disclosures in the consolidated financial statements in the audit
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
report. If the disclosure was insufficient, we should express a non-unqualified opinion. Our conclusions
were based on available information as at the audit report date. However, future events or circumstances
may cause the unsustainable operation of the Jingliang Holdings.
(5) Evaluating the overall presentation, structure and content of the consolidated financial statements and
assessing whether the financial statements fairly reflected relevant transactions and events.
(6) Obtaining sufficient and appropriate audit evidences of financial information of entities or business
activities in Jingliang Holdings to issue audit opinions on consolidated financial statements. We are
responsible for guiding, supervising and executing group audits and take full responsibility for audit
opinions.
We communicated with governance about the planned scope of audit, time arrangement, and the major
audit findings, including the concerned internal control deficiencies that we identified during the auditing
process.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Consolidated Balance Sheet
Dec 31,2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Items Note 31 December 2023 31 December 2022
Current Assets:
Monetary capital V1 1,543,385,751.86 561,013,109.76
Transactional financial assets V2 11,005,983.98
Derivative financial assets V3 31,684,620.00 201,549.12
Notes receivable
Accounts receivable V4 115,780,372.55 77,057,446.86
Receivables financing V5 2,502,308.90
Prepayment V6 87,352,234.48 194,495,648.06
Other receivables V7 303,099,589.59 444,523,698.48
Including: Interest receivable
Dividends receivable
Inventory V8 2,041,860,143.11 2,073,944,683.57
Contract assets
Held-for-sale assets
Non-current assets due within one year V9 22,188,083.34 148,387,894.16
Other current assets V 10 312,336,642.43 632,929,899.75
Total current assets 4,460,189,746.26 4,143,559,913.74
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment V 11 254,922,645.41 243,553,916.98
Other equity instruments investment V 12 20,000,000.00 20,000,000.00
Other non-current financial assets
Investment property V 13 20,045,503.77 19,805,276.24
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Fixed assets V 14 939,548,012.91 1,047,451,810.24
Construction in process V 15 59,094,902.29 22,695,003.52
Productive biological assets
Oil-and-gas assets
Right-of-use assets V 16 99,232,303.78 6,968,426.20
Intangible assets V 17 412,676,845.93 325,044,884.34
Development expenditure
Goodwill V 18 191,394,422.51 191,394,422.51
Long-term deferred expenses V 19 17,655,736.82 16,935,967.92
Deferred income tax assets V 20 8,798,915.22 14,189,763.93
Other non-current assets V 21 13,223,950.00 53,544,782.34
Total non-current assets 2,036,593,238.64 1,961,584,254.22
Total assets 6,496,782,984.90 6,105,144,167.96
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Items Note 31 December 2023 31 December 2022
Current liabilities:
Short-term borrowings V 23 1,163,479,691.67 1,260,543,148.81
Transactional financial liabilities
Derivative financial liabilities V 24 15,805,393.88 111,373,155.00
Notes payable V 25 3,331,333.80
Accounts payable V 26 82,474,823.84 110,911,877.21
Account collected in advance V 27 1,075,801.34 922,982.41
Contract liabilities V 28 411,033,219.08 285,555,581.80
Employee payroll payable V 29 32,702,558.07 43,928,760.76
Taxes payable V 30 11,577,392.47 66,629,054.18
Other payables V 31 79,618,198.78 83,999,685.56
Including: Interest payable V 31 21,082,795.47 21,082,795.47
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Dividends payable V 31 3,213,302.88 3,213,302.88
Held-for-sale liabilities
Non-current liabilities due within one year V 32 175,940,949.28 1,432,706.14
Other current liabilities V 33 60,439,400.68 56,184,255.30
Total current liabilities 2,034,147,429.09 2,024,812,540.97
Non-current liabilities:
Long-term borrowings V 34 400,000,000.00 500,284,166.67
Bonds payable V 35 298,800,000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities V 36 73,241,742.57 704,390.98
Long-term payables
Long-term payable to employees V 37 5,677,134.00 5,677,134.00
Estimated liabilities
Deferred income V 38 62,503,256.67 64,550,917.36
Deferred income tax liabilities V 20 47,082,123.53 46,405,170.70
Other non-current liabilities
Total non-current liabilities 887,304,256.77 617,621,779.71
Total liabilities 2,921,451,685.86 2,642,434,320.68
Owners' equity (or Shareholders' equity):
Paid-in capital V 39 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves V 40 1,681,808,108.07 1,678,678,350.95
Less: treasury stock
Other comprehensive income V 41 1,369,980.92 1,005,720.50
Special reserves
Surplus reserves V 42 129,819,690.00 122,122,436.98
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Undistributed profit V 43 627,555,511.45 532,904,675.62
Owner's Equity (or shareholder's equity)
Attributable to Shareholders of the Parent 3,167,503,541.44 3,061,661,435.05
Company
Minority equity 407,827,757.60 401,048,412.23
Total owners' equity (or shareholders' equity) 3,575,331,299.04 3,462,709,847.28
Total liabilities and owners' equity (or
6,496,782,984.90 6,105,144,167.96
shareholders' equity)
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Balance Sheet of Parent Company
Dec 31,2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Items Notes 31 December 2023 31 December 2022
Current Assets:
Monetary capital 23,743,255.81 15,852,894.21
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment
Other receivables 17.1 950,000,000.00 349,000,000.00
Including: Interest receivable
Dividends receivable 17.1 150,000,000.00
Inventory
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 976,539.93 1,168,502.66
Total current assets 974,719,795.74 366,021,396.87
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 17.2 2,625,657,283.19 2,619,157,283.19
Other equity instruments investment 20,000,000.00 20,000,000.00
Other non-current financial assets
Investment property 5,198,514.17 5,539,676.69
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Fixed assets 5,955,832.27 5,575,316.44
Construction in process
Productive biological assets
Oil-and-gas assets
Right-of-use assets
Intangible assets
Development expenditure
Goodwill
Long-term deferred expenses 495,639.67
Deferred income tax assets
Other non-current assets 2,833,950.00
Total non-current assets 2,660,141,219.30 2,650,272,276.32
Total assets 3,634,861,015.04 3,016,293,673.19
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Items Notes 31 December 2023 31 December 2022
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 15,383.17
Account collected in advance 38,896.41 38,896.41
Contract liabilities
Employee payroll payable 157,166.68 191,137.22
Taxes payable 1,016,682.06 1,548,097.77
Other payables 32,458,140.29 34,559,303.45
Including: Interest payable 21,082,795.47 21,082,795.47
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Dividends payable 3,213,302.88 3,213,302.88
Held-for-sale liabilities
Non-current liabilities due within one year 2,880,000.00
Other current liabilities
Total current liabilities 36,566,268.61 36,337,434.85
Non-current liabilities:
Long-term borrowings
Bonds payable 298,800,000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term payable to employees
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 298,800,000.00
Total liabilities 335,366,268.61 36,337,434.85
Owners' equity (or Shareholders' equity):
Paid-in capital 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 2,386,084,900.84 2,382,994,900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 117,184,317.41 109,487,064.39
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Undistributed profit 69,275,277.18 -239,475,977.89
Total owners' equity (or shareholders' equity) 3,299,494,746.43 2,979,956,238.34
Total liabilities and owners' equity (or
3,634,861,015.04 3,016,293,673.19
shareholders' equity)
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Consolidated Income Statement
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Amount for the Amount for the
Items Note
current period prior period
I. Total operating income 11,901,009,211.63 12,857,874,301.72
Including: Operating income V 44 11,901,009,211.63 12,857,874,301.72
II. Total operating cost 11,986,827,828.36 12,681,617,878.16
Including: Operating cost V 44 11,550,803,067.51 12,237,571,339.31
Tax and surcharges V 45 22,932,382.10 30,485,129.75
Selling expenses V 46 134,700,286.27 163,930,700.04
Administration expenses V 47 213,974,205.09 209,606,764.42
Research and development
V 48 20,897,961.71 14,391,364.17
expenses
Financial expenses V 49 43,519,925.68 25,632,580.47
Including: interest expenses V 49 62,101,542.12 46,001,727.19
Interest income V 49 18,201,145.42 26,078,234.77
Add: Other income V 50 13,332,777.37 15,781,725.63
Income from investment (Losses shall be
V 51 15,930,270.08 13,303,071.64
filled in with “-”)
Including: income from investment on joint
11,368,728.43 12,293,636.95
venture and cooperative enterprise
Income from derecognition of
financial assets measured at amortized cost
Income from net exposure
hedging(Losses shall be filled in with “-”)
Income from changes in fair value
V 52 228,219,839.09 61,032,222.12
(Losses shall be filled in with “-”)
Credit impairment loss(Losses V 53 -5,127,786.33 -2,004,656.44
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
shall be filled in with “-”)
Income from assets
V 54 -29,004,360.66 -43,736,036.29
impairment(Losses shall be filled in with “-”)
Income from asset disposal
V 55 50,283.79 466,027.43
(Losses shall be filled in with “-”)
III. Operating profit (Losses shall be filled in
137,582,406.61 221,098,777.65
with “-”)
Add: non-operating income V 56 6,767,332.70 5,356,230.94
Less: non-operating expenditure V 57 4,017,245.94 1,132,355.35
IV. Total profit (Total losses shall be filled in
140,332,493.37 225,322,653.24
with “-”)
Less: income tax expense V 58 36,879,647.08 61,071,287.26
V. Net profit (Net loss shall be filled in with
103,452,846.29 164,251,365.98
“-”)
(I) Classified by operations continuity
1. Net profit from continuing operations (Net
103,452,846.29 164,251,365.98
loss shall be filled in with “-”)
2. Net profit from discontinuing operations
(Net loss shall be filled in with “-”)
(II) Classified by ownership attribution
1、Net profit attributable to shareholders of
the parent company (Net loss shall be filled in 102,348,088.85 141,411,141.28
with “-”)
2、Minority interest income (Net loss shall be
1,104,757.44 22,840,224.70
filled in with “-”)
VI. Net of tax from other comprehensive
364,260.42 1,688,002.72
income
(I) Net of tax from other comprehensive
364,260.42 1,688,002.72
income attributable to shareholders of the parent
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
company
1.Other comprehensive income that cannot be
reclassified into the profit and loss
(1)Remeasure changes in defined benefit
plans
(2)Other comprehensive income that cannot
be transferred to gains and losses under the
equity method
(3)Changes in fair value of other equity
instrument investments
(4)Changes in the fair value of the company's
own credit risk
(5)Others
2.Other comprehensive income that will be
364,260.42 1,688,002.72
reclassified into the profit and loss
(1)Other comprehensive income that can be
transferred to gains and losses under the equity 460,842.50
method
(2)Changes in fair value of other debt
investments
(3)Reclassification of financial assets
included in other comprehensive income
(4)Provision for credit impairment of other
debt investments
(5)Cash flow hedge reserve
(6)Balance arising from the translation of
364,260.42 1,227,160.22
foreign currency
(7)Others
(II) Net of tax from other comprehensive
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
income attributable to minority shareholder
VII. Total comprehensive income 103,817,106.71 165,939,368.70
(I) Total comprehensive income attributable
102,712,349.27 143,099,144.00
to shareholders of the parent company
(II)Total comprehensive income attributable
1,104,757.44 22,840,224.70
to minority shareholder
VIII. Earnings per share:
(I) Basic earnings per share 0.14 0.19
(II) Diluted earnings per share 0.14 0.19
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Income Statement of Parent Company
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Amount for Amount for
Items Note the current the prior
period period
I. Total operating income 17.3 12,240,221.13 11,768,886.09
Less: Operating cost 17.3 341,162.52 341,162.52
Tax and surcharges 438,568.29 373,093.86
Selling expenses
Administration expenses 11,424,000.59 12,242,752.50
Research and development expenses
Financial expenses -15,865,978.76 -7,075,157.39
Including: interest expenses 3,030,000.00
Interest income 18,899,353.45 7,076,989.67
Add: Other income 2,308.28 23,340.94
Income from investment (Losses shall be filled in with
17.4 300,509,614.85 163,430,984.15
“-”)
Including: income from investment on joint venture and
cooperative enterprise
Income from derecognition of financial assets measured
at amortized cost
Income from net exposure hedging(Losses shall be filled
in with “-”)
Income from changes in fair value (Losses shall be filled
in with “-”)
Credit impairment loss(Losses shall be filled in with “-”) -600.00
Income from assets impairment(Losses shall be filled in
with “-”)
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Income from asset disposal (Losses shall be filled in with
“-”)
II. Operating profit (Losses shall be filled in with “-”) 316,414,391.62 169,340,759.69
Add: non-operating income 61,300.00 1.00
Less: non-operating expenditure 27,183.53 7,270.08
III. Total profit (Total losses shall be filled in with “-”) 316,448,508.09 169,333,490.61
Less: income tax expense
IV. Net profit (Net loss shall be filled in with “-”) 316,448,508.09 169,333,490.61
1. Net profit from continuing operations (Net loss shall be filled
316,448,508.09 169,333,490.61
in with “-”)
2. Net profit from discontinuing operations (Net loss shall be
filled in with “-”)
V. Net of tax from other comprehensive income
1. Other comprehensive income that cannot be reclassified into
the profit and loss
(1)Remeasure changes in defined benefit plans
(2)Other comprehensive income that cannot be transferred to
gains and losses under the equity method
(3)Changes in fair value of other equity instrument investments
(4)Changes in the fair value of the company's own credit risk
(5)Others
2. Other comprehensive income that will be reclassified into the
profit and loss
(1)Other comprehensive income that can be transferred to
gains and losses under the equity method
(2)Changes in fair value of other debt investments
(3)Reclassification of financial assets included in other
comprehensive income
(4)Provision for credit impairment of other debt investments
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
(5)Cash flow hedge reserve
(6)Balance arising from the translation of foreign currency
(7)Others
VI. Total comprehensive income 316,448,508.09 169,333,490.61
VII. Earnings per share:
1. Basic earnings per share
2. Diluted earnings per share
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Consolidated Cash Flow Statement
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Amount for the Amount for the
Items Note
current period prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of
12,936,790,538.49 13,766,962,689.93
Services
Tax Refund Receipts 7,998,752.68 32,076,837.51
Other Cash Receipts Concerning Operating Activities V 60 2,317,880,715.49 2,398,032,376.76
Subtotal of Cash Inflows from Operating Activities 15,262,670,006.66 16,197,071,904.20
Cash Paid for Purchase of Goods and Accepting Services 12,244,383,908.50 12,753,441,435.11
Cash Paid to and for Employees 358,936,454.83 358,394,104.04
Taxes and Fees Paid 186,585,834.21 270,860,576.40
Other Cash Paid Concerning Operating Activities V 60 2,363,276,854.38 3,347,606,735.68
Subtotal of Cash Outflows from Operating Activities 15,153,183,051.92 16,730,302,851.23
Net Cash Flows from Operating Activities 109,486,954.74 -533,230,947.03
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 784,491,129.71 2,394,031,129.22
Cash Receipts from Returns on Investments 4,709,513.37 766,069.50
Net Cash from Disposal of Fixed Assets, Intangible Assets
63,176.00 1,014,639.66
and Other Long-term Assets
Net Cash Received by Disposal of Subsidiaries and Other
Business Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 789,263,819.08 2,395,811,838.38
Cash Paid for Purchase and Construction of Fixed Assets,
105,158,076.17 40,239,869.38
Intangible Assets and Other Long-term Assets
Cash Paid for Investments 200,000,000.00 1,880,998,000.00
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Net Cash Paid for obtaining Subsidiaries and Other
Business Units
Other Cash Paid Concerning Investment Activities V 60 9,772,907.10
Subtotal of Cash Outflows from Investment Activities 314,930,983.27 1,921,237,869.38
Net Cash Flows from Investment Activities 474,332,835.81 474,573,969.00
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment 3,500,000.00
Including: Cash Received by Subsidiaries Absorbing the
3,500,000.00
Investment from Minority Shareholders
Cash Receipts from Borrowings 3,359,242,053.12 4,399,709,228.07
Other Cash Receipts Concerning Financing Activities V 60 3,090,000.00 2,760,000.00
Subtotal of Cash Inflows from Financing Activities 3,365,832,053.12 4,402,469,228.07
Cash Paid for Repayment of Debts 2,795,921,695.12 4,237,019,825.39
Cash Paid for Distribution of Dividends, Profits or
134,747,045.10 64,145,041.16
Repayment of Interests
Including: Dividends and Profits Paid by Subsidiaries to
73,212,000.00 18,143,313.97
Minority Shareholders
Other Cash Paid Concerning Financing Activities V 60 29,652,976.62 1,238,815.56
Subtotal of Cash Outflows from Financing Activities 2,960,321,716.84 4,302,403,682.11
Net Cash Flows from Financing Activities 405,510,336.28 100,065,545.96
IV. Exchange Rate Fluctuation Consequences on Cash
-130,156.95 3,101,731.45
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 989,199,969.88 44,510,299.38
Add: Opening Balance of Cash and Cash Equivalents 551,439,110.07 506,928,810.69
VI. Closing Balance of Cash and Cash Equivalents 1,540,639,079.95 551,439,110.07
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Cash Flow Statement of Parent Company
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Amount for Amount for
Items Note the current the prior
period period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 12,124,704.99 12,170,542.89
Tax Refund Receipts 395,429.81
Other Cash Receipts Concerning Operating Activities 875,745.92 17,881,230.06
Subtotal of Cash Inflows from Operating Activities 13,000,450.91 30,447,202.76
Cash Paid for Purchase of Goods and Accepting Services
Cash Paid to and for Employees 4,197,912.96 3,754,319.13
Taxes and Fees Paid 1,608,964.87 340,553.05
Other Cash Paid Concerning Operating Activities 9,750,891.74 42,879,170.61
Subtotal of Cash Outflows from Operating Activities 15,557,769.57 46,974,042.79
Net Cash Flows from Operating Activities -2,557,318.66 -16,526,840.03
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 11,032,147.20
Cash Receipts from Returns on Investments 470,462,392.63 17,679,400.00
Net Cash from Disposal of Fixed Assets, Intangible Assets and
3,920.00
Other Long-term Assets
Net Cash Received by Disposal of Subsidiaries and Other
Business Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 470,466,312.63 28,711,547.20
Cash Paid for Purchase and Construction of Fixed Assets,
4,258,632.37
Intangible Assets and Other Long-term Assets
Cash Paid for Investments 757,500,000.00 8,000,000.00
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Net Cash Paid for obtaining Subsidiaries and Other Business
Units
Other Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 761,758,632.37 8,000,000.00
Net Cash Flows from Investment Activities -291,292,319.74 20,711,547.20
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Including: Cash Received by Subsidiaries Absorbing the
298,650,000.00
Investment from Minority Shareholders
Cash Receipts from Borrowings 3,090,000.00 10,135,000.00
Other Cash Receipts Concerning Financing Activities 301,740,000.00 10,135,000.00
Subtotal of Cash Inflows from Financing Activities
Cash Paid for Distribution of Dividends, Profits or Repayment
of Interests
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities
Net Cash Flows from Financing Activities 301,740,000.00 10,135,000.00
IV. Exchange Rate Fluctuation Consequences on Cash and
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 7,890,361.60 14,319,707.17
Add: Opening Balance of Cash and Cash Equivalents 15,852,894.21 1,533,187.04
VI. Closing Balance of Cash and Cash Equivalents 23,743,255.81 15,852,894.21
Legal Representative： Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Consolidated Statement of Changes in Equity
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Items
Total
Minority
Other equity instruments shareholders'
Less: Other equity
Special Undistributed equities
Paid-in capital Capital reserve treasury comprehensive Surplus reserve Subtotal
reserve profit
Preferred Perpetual stock income
Others
stock bond
I. Year-end balance of last year 726,950,251.00 1,678,678,350.95 1,005,720.50 122,122,436.98 532,904,675.62 3,061,661,435.05 401,048,412.23 3,462,709,847.28
Add: changes in accounting policies
Correction of prior period errors
Merger of enterprises under the
same control
Other
II. Balance at beginning of current year 726,950,251.00 1,678,678,350.95 1,005,720.50 122,122,436.98 532,904,675.62 3,061,661,435.05 401,048,412.23 3,462,709,847.28
III. Increases and decreases of current
year (Decrease shall be filled in with 3,129,757.12 364,260.42 7,697,253.02 94,650,835.83 105,842,106.39 6,779,345.37 112,621,451.76
“-”)
(I) Total comprehensive income 364,260.42 102,348,088.85 102,712,349.27 1,104,757.44 103,817,106.71
(II) Investment of shareholders and capital
3,129,757.12 3,129,757.12 78,886,587.93 82,016,345.05
reduction
1. Common equity invested by
117,698,300.00 117,698,300.00
shareholders
2. Capital invested by other equity
instruments holders
3. The amount of shares recorded into
the shareholder's equity
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
4. Others 3,129,757.12 3,129,757.12 -38,811,712.07 -35,681,954.95
(III) Distribution of profits 7,697,253.02 -7,697,253.02 -73,212,000.00 -73,212,000.00
1. Withdrawal of surplus reserves 7,697,253.02 -7,697,253.02
2. Distribution to shareholders -73,212,000.00 -73,212,000.00
3. Others
(IV) Inner carrying-over of shareholders'
equities
1. Capital reserve converted into capital
(or capital stock)
2. Surplus public accumulation
converted into capital (or capital stock)
3. Surplus public accumulation loss
remedy
4. Change in defined benefit plan
carried forward to retained earnings
5.Other comprehensive income carried
forward to retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726,950,251.00 1,681,808,108.07 1,369,980.92 129,819,690.00 627,555,511.45 3,167,503,541.44 407,827,757.60 3,575,331,299.04
Legal Representative: Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Consolidated Statement of Changes in Equity
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Other equity instruments
Items Spe Total
Less: Other Minority
cial Undistributed shareholders'
Paid-in capital Capital reserve treasur comprehensiv Surplus reserve Subtotal equity
rese profit equities
Preferr y stock e income
Perpetua Oth rve
ed
l bond ers
stock
I. Year-end
balance of 726,950,251.00 1,675,918,350.95 -682,282.22 122,122,436.98 391,493,534.34 2,915,802,291.05 396,351,501.50 3,312,153,792.55
last year
Add: changes
in accounting
policies
Correctio
n of prior
period errors
Merger of
enterprises
under the
same control
Other
II. Balance at
beginning of 726,950,251.00 1,675,918,350.95 -682,282.22 122,122,436.98 391,493,534.34 2,915,802,291.05 396,351,501.50 3,312,153,792.55
current year
III. Increases
and decreases
of current
year 2,760,000.00 1,688,002.72 141,411,141.28 145,859,144.00 4,696,910.73 150,556,054.73
(Decrease
shall be filled
in with “-”)
(I) Total
comprehensiv 1,688,002.72 141,411,141.28 143,099,144.00 22,840,224.70 165,939,368.70
e income
(II) Investment
of
2,760,000.00 2,760,000.00 2,760,000.00
shareholders
and capital
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
reduction
1. Common
equity
invested by
shareholders
2. Capital
invested by
other equity
instruments
holders
3. The amount
of shares
recorded into
the
shareholder's
equity
4. Others 2,760,000.00 2,760,000.00 2,760,000.00
(III)
Distribution of -18,143,313.97 -18,143,313.97
profits
1. Withdrawal
of surplus
reserves
2. Distribution
to -18,143,313.97 -18,143,313.97
shareholders
3. Others
(IV) Inner
carrying-over
of
shareholders'
equities
1. Capital
reserve
converted into
capital (or
capital stock)
2. Surplus
public
accumulation
converted into
capital (or
capital stock)
3. Surplus
public
accumulation
loss remedy
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
4. Change in
defined benefit
plan carried
forward to
retained
earnings
5.Other
comprehensiv
e income
carried
forward to
retained
earnings
6. Others
(V) Special
reserve
1. Withdrawal
for current
period
2. Use for
current period
(VI) Others
IV. Closing
balance of 726,950,251.00 1,678,678,350.95 1,005,720.50 122,122,436.98 532,904,675.62 3,061,661,435.05 401,048,412.23 3,462,709,847.28
current year
Legal Representative: Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Statement of Changes in Equity of Parent Company
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Current Amount
Items Other equity instruments Less: Other
Special Undistributed
Paid-in capital Capital reserve treasury comprehensive Surplus reserve Subtotal
Preferred Perpetual reserve profit
Others stock income
stock bond
I. Year-end balance of last year 726,950,251.00 2,382,994,900.84 109,487,064.39 -239,475,977.89 2,979,956,238.34
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current year 726,950,251.00 2,382,994,900.84 109,487,064.39 -239,475,977.89 2,979,956,238.34
III. Increases and decreases of current year
3,090,000.00 7,697,253.02 308,751,255.07 319,538,508.09
(Decrease shall be filled in with “-”)
(I) Total comprehensive income 316,448,508.09 316,448,508.09
(II) Investment of shareholders and capital
3,090,000.00 3,090,000.00
reduction
1. Common equity invested by shareholders
2. Capital invested by other equity instruments
holders
3. The amount of shares recorded into the
shareholder's equity
4. Others 3,090,000.00 3,090,000.00
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
(III) Distribution of profits 7,697,253.02 -7,697,253.02
1. Withdrawal of surplus reserves 7,697,253.02 -7,697,253.02
2. Distribution to shareholders
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or
capital stock)
2. Surplus public accumulation converted into
capital (or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried
forward to retained earnings
5.Other comprehensive income carried forward
to retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726,950,251.00 2,386,084,900.84 117,184,317.41 69,275,277.18 3,299,494,746.43
Legal Representative: Chief Financial Officer: Head of Accounting Department:
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Statement of Changes in Equity of Parent Company
Year 2023
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Amount of Last Period
Items Other equity instruments Less: Other
Special Undistributed
Paid-in capital Capital reserve treasury comprehensive Surplus reserve Subtotal
Preferred Perpetual reserve profit
Others stock income
stock bond
I. Year-end balance of last year 726,950,251.00 2,380,234,900.84 109,487,064.39 -408,809,468.50 2,807,862,747.73
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current year 726,950,251.00 2,380,234,900.84 109,487,064.39 -408,809,468.50 2,807,862,747.73
III. Increases and decreases of current
2,760,000.00 169,333,490.61 172,093,490.61
year (Decrease shall be filled in with “-”)
(I) Total comprehensive income 169,333,490.61 169,333,490.61
(II) Investment of shareholders and capital
2,760,000.00 2,760,000.00
reduction
1. Common equity invested by
shareholders
2. Capital invested by other equity
instruments holders
3. The amount of shares recorded into the
shareholder's equity
4. Others 2,760,000.00 2,760,000.00
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
(III) Distribution of profits
1. Withdrawal of surplus reserves
2. Distribution to shareholders
3. Others
(IV) Inner carrying-over of shareholders'
equities
1. Capital reserve converted into capital
(or capital stock)
2. Surplus public accumulation converted
into capital (or capital stock)
3. Surplus public accumulation loss
remedy
4. Change in defined benefit plan carried
forward to retained earnings
5.Other comprehensive income carried
forward to retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726,950,251.00 2,382,994,900.84 109,487,064.39 -239,475,977.89 2,979,956,238.34
Legal Representative: Chief Financial Officer: Head of Accounting Department:
Notes to the Financial Statements
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.
Notes to the Financial Statements
On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd.
and the Business License for Enterprise Legal Person was renewed by Industrial & Commerce
Administration Bureau of Hainan Province.
On August 17, 2006, the reform plan of the split share structure of the Company was implemented.
The Company transferred 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
Notes to the Financial Statements
from the assets of the issuance of shares. The par value per share of the Company was RMB1.00 and the
issuance price was RMB8.82 per share. The shareholder Beijing Grain Group conducted subscription in
monetary funds. Upon completion of the issue, the registered capital was RMB 685,790,364.00 and the
share capital was RMB 685,790,364.00. Beijing Grain Group, which accounted for 42.06% of the total
number of shares, became the largest shareholder of the Company.
On November 21, 2019, with the approval of Beijing Shounong Food Group Co., Ltd. (Beijing
Shounong Food publish [2019] No. 212), Approval on the Plan of Purchasing Assets by Cash and Issuing
Shares of Hainan Jingliang Holdings Co., Ltd, On April , 2020, with the approval of Approval of Hainan
Jingliang Holding Co., Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets by China Securities
Regulatory Commission [2020] No. 610, the company shall not issue more than 41,159,887 new shares in
private offering to raise funds supporting the purchase of assets through the issued shares. The Company
and its subsidiary, Beijing Jingliang Food Co., Ltd., purchased the 25.1149% equity stake of Zhejiang
Little Prince by cash and issuance of shares.
As of December 31, 2023, 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 na ture of the Company' s bus i ness and it s main bus i ness act iv it ies
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
oil and oilseeds, and processing and sales of foodstuffs.
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.
Notes to the Financial Statements
4.Business Cycle
From 22 March 1988 to 20 September 2025
5 .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 28, 2024.
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 oil and
oilseeds, and processing and sales of foodstuffs。. 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,
28 “Revenue".
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.
2. Accounting Period
Notes to the Financial Statements
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.
3. Business Cycle
The normal business cycle is the period from the time the Company purchases assets for processing to
the time when cash or cash equivalents are realized. The Company uses 12 months as an business cycle
and uses it as a liquidity classification standard for assets and liabilities.
4. 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.
5. Materiality Standards Determination Method and Selection Basis
The company follows the materiality principle when preparing and disclosing financial reports. If
disclosure matters involve the judgment of materiality standards. the methods of determining materiality
standards and selection basis are disclosed as follows:
Disclosure matters involve the judgment of Methods of determining materiality standards and selection
materiality standards basis
Impairment test made on individual accounts receivables
Impairment test made on individual
accounting over 10% as total provision for various types of
accounts receivable with significant
bad debts receivablese, and amounts exceeding 5 million
amounts.
yuan
Individual item recovered or reversed accounting over 10%
Significant bad debt reserve for accounts
as total amounts for various types of receivables and
receivable recovered or reversed
exceeding 5 million yuan
Individual write-off amount accounting for over 10% as
Significant receivables actually written off total amounts of various types of bad debts reserve for
receivables, and amounts exceeding 5 million yuan
Individual contractual liabilities with aging over one year
Significant contractual liabilities with aging
accounting over 10% of total amount of contractual
over one year
liabilities, and amounts exceeding 10 million yuan
Significant project under construction Projects with investments exceeding 5 million yuan
Non-wholly owned subsidiaries with individual entity
Significant non-wholly owned subsidiaries revenue and net profit accounting 10% for items related to
the Company's consolidated statements
Notes to the Financial Statements
Disclosure matters involve the judgment of Methods of determining materiality standards and selection
materiality standards basis
Associated enterprise and joint-venture with net profit share
Significant associated enterprise and
recognized in the current period accounting 5% for items
joint-venture.
related to the Company’s consolidated statements
6. 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
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.
Notes to the Financial Statements
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 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 7 (2) of Note Ⅲ), 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 Ⅲ, 15 "Long-term Equity Investments"; If
Notes to the Financial Statements
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).
7. Criteria for the Judgment of Control and Methods for the Preparation of Consolidated Financial
Statements.
(1) Criteria for the Judgment of Control
The scope of consolidation of the consolidated financial statements is determined on a control basis.
Control means that the Company has the authority over the Investee, enjoys a variable return by
participating in the relevant activities of the Investee, and has the ability to use its authority over the
Investee to influence the amount of such return. The scope of the merger includes the Company and all its
subsidiaries. Subsidiary refers to the main body controlled by the Company.
The Company will re-evaluate the above control definitions once the relevant facts and circumstances
change, which results in 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
Notes to the Financial Statements
acquired; Cease to be included in the scope of the merger as of the date of loss of effective control. For the
subsidiaries disposed of, the operating results and cash flows prior to the date of disposal have been
appropriately included in the consolidated income statement and consolidated cash flow statement; For
subsidiaries disposed of in the current period, the opening amount of the consolidated balance sheet is not
adjusted. The operating results and cash flows of subsidiaries increased by consolidation after purchase
have been properly included in the consolidated income statement and consolidated cash flow statement,
and the opening and comparative amounts in the consolidated financial statements have not been adjusted
for subsidiaries that are not under the same control. The operating results and cash flows of the subsidiaries
increased by consolidation under the same control from the beginning of the consolidation period to the
consolidation date have been appropriately included in the consolidated profit statement and consolidated
cash flow statement, and the comparative amount of the consolidated financial statements has been
adjusted at the same time.
In the preparation of the consolidated financial statements, if the accounting policies or accounting
periods adopted by the subsidiaries are inconsistent with those adopted by the Company, necessary
adjustments shall be made to the financial statements of the subsidiaries in accordance with the accounting
policies and accounting periods of the Company. For subsidiaries acquired through business combination
under different control, the financial statements shall be adjusted on the basis of the fair value of
identifiable net assets at the date of purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offset
at the time of preparation of the consolidated financial statements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by
the Company for the current period are separately presented as minority shareholders' equity and minority
shareholders' profit or loss in the consolidated financial statements under shareholders' equity and net
profit. The shares of minority shareholders' equity in the net profits and losses of subsidiaries for the
current period are shown as "minority shareholders' profits and losses" under the net profit item in the
consolidated income statement. Losses shared by minority shareholders in a subsidiary exceed the minority
shareholders' share in the shareholders' equity of the subsidiary at the beginning of the period, and still
decrease by a number of shareholders' equity.
When the control of the original subsidiary is lost due to the disposal of part of the equity investment
or other reasons, the residual equity shall be revalued according to its fair value at the date of loss of
control. The sum of consideration obtained from the disposal of equity and the fair value of the remaining
equity minus the difference between the shares of the net assets of the original subsidiary that shall be
continuously calculated from the purchase date according to the original shareholding proportion shall be
Notes to the Financial Statements
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, 15-Long-term Equity Investment or Note Ⅲ, 11-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 15
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.
8 Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants.
The Company divides the joint venture arrangement into joint 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
Notes to the Financial Statements
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, 15 "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.
9. 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.
10. 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.
Notes to the Financial Statements
(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
Notes to the Financial Statements
on the date of transaction. The undistributed profit at the beginning of the period shall be the undistributed
profit at the end of the period converted from the previous year; The undistributed profits at the end of the
year shall be calculated and listed according to the converted profits distribution items; The difference
between the converted asset items and the total amount of the liability items and shareholders' equity items
shall be recognized as other comprehensive income as the translation difference in the foreign currency
statements. In case of disposal of overseas operations and loss of control, the balance in translation of the
foreign currency statements related to the overseas operations as shown below in the shareholders' equity
items in the balance sheet shall be transferred to the profits and losses of the disposal period in whole or in
proportion to the disposal of the overseas operations.
Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the
average exchange rate of the current period on the date of occurrence of the cash flows. The effect of
exchange rate changes on cash shall be presented separately in the statement of cash flows as an
reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated
from the prior-period financial statements.
When disposing of all the owner's equity of the Company's overseas operations or losing the control
over overseas operations due to the disposal of part of the equity investment or for other reasons, if the
following items of shareholders' equity in the balance sheet are shown below, the balance in translation of
the foreign currency statement attributable to the owner's equity of the parent company related to the
overseas operation shall be transferred to the profits and losses of the current disposal period.
In the event that the proportion of overseas business interests is reduced due to the disposal of part of
the equity investment or for other reasons, but the control over overseas business operations is not lost, the
balance in the translation of the foreign currency statements related to the disposal of part of overseas
business operations shall be attributed to minority shareholders' interests and shall not be transferred to the
profits and losses of the current period. When disposing of part of the equity of an overseas operation as an
associated enterprise or a joint venture, the balance of the translation of the foreign currency statements
related to the overseas operation shall be transferred into the profits and losses of the current disposal
period in the proportion of the overseas operation disposed of.
11. 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
Notes to the Financial Statements
According to the business mode of managing financial assets and the contractual cash flow
characteristics of financial assets, the Company divides financial assets into: Financial assets measured at
amortized cost. Financial assets measured at fair value with changes included in other comprehensive
income. Financial assets that are measured at fair value and whose movements are included in the current
profits and losses.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair
value and whose changes are included in current profits and losses, relevant transaction costs are directly
included in current profits and losses. For other types of financial assets, relevant transaction costs are
included in the initial recognition amount. Accounts receivable or notes receivable arising from the sale of
products or the provision of labor services that do not contain or take into account significant financing
components shall be initially recognized by the Company in accordance with the amount of consideration
that the Company is expected to be entitled to receive.
1 Financial assets measured at amortized cost
The 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 recognized 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.
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
Notes to the Financial Statements
record the relevant dividend income of such financial assets into the current profits and losses, and the
change of fair value into other comprehensive income. When the financial asset is derecognized, the
accumulated gains or losses previously included in other comprehensive income will be transferred from
other comprehensive income to retained income and will not be included in current profits and losses.
3 Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets
measured at fair value with changes included in other comprehensive income into financial assets
measured at fair value with changes included in current profits and losses. In addition, during initial
recognition, in order to eliminate or significantly reduce accounting mismatch, the Company designated
part of financial assets as financial assets measured at fair value with changes included in current profit and
loss. For such financial assets, the Company adopts fair value for subsequent measurement, and the
changes in fair value are included into the current profit and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at
fair value and whose changes are included in current profits and losses and other financial liabilities. For
the financial liabilities measured at fair value with the changes included into the current profits and losses,
the relevant transaction costs are directly included into the current profits and losses, and the relevant
transaction costs of other financial liabilities are included in the initial recognition amount.
1 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
Notes to the Financial Statements
cause or expand accounting mismatch in profits and losses, the Company will include all profits or losses
of the financial liabilities (including the impact amount of changes in the credit risk of the enterprise itself)
into the current profits and losses.
2 Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financial
assets that do not meet the conditions for termination of recognition or continue to be involved in the
transferred financial assets, other financial liabilities are classified as financial liabilities measured at
amortized cost and subsequently measured at amortized cost. Gains or losses arising from termination of
recognition or amortization are included in current profits and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ① The
termination of the contractual right to receive cash flow from the financial asset. ② The financial asset has
been transferred, and almost all risks and rewards related to the ownership of the financial asset have been
transferred to the transferee. ③ The financial asset has been transferred. Although the enterprise has
neither transferred nor retained almost all risks and rewards in the ownership of the financial asset, it has
given up its control over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the
financial assets, and does not give up the control over the financial assets, the relevant financial assets shall
be recognized according to the extent of continuous involvement in the transferred financial assets, and the
relevant liabilities shall be recognized accordingly. The degree of continuous involvement in the
transferred financial assets refers to the risk level faced by the enterprise due to the change in the value of
the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the
difference between the book value of the transferred financial assets and the sum of the consideration
received due to the transfer and the accumulated amount of changes in fair value originally included in
other comprehensive income shall be included into the current profits and losses.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book
value of the transferred 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.
Notes to the Financial Statements
For financial assets sold by the Company with recourse, or for endorsement and transfer of held
financial assets, it is necessary to determine whether almost all risks and rewards in the ownership of the
financial assets have been transferred. If almost all risks and rewards in the ownership of the financial asset
have been transferred to the transferee, the recognition of the financial asset shall be terminated. If almost
all risks and rewards on the ownership of a financial asset are retained, the recognition of the financial
asset shall not be terminated. If almost all risks and rewards related to the ownership of financial assets
have not been transferred or retained, it shall continue to judge whether the enterprise retains control over
the assets and carry out accounting treatment according to the principles mentioned in the preceding
paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved, the Company
terminates the recognition of the financial liability (or part thereof). The Company (the borrower) and the
lender sign an agreement to replace the original financial liabilities by assuming new financial liabilities. If
the contract terms of the new financial liabilities and the original financial liabilities are substantially
different, the original financial liabilities shall be derecognized and a new financial liability shall be
recognized at the same time. If the Company makes any substantial modification to the contract terms of
the original financial liability (or part thereof), the original financial liability shall be derecognized and a
new financial liability shall be recognized in accordance with the modified terms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference
between its book value and the consideration paid (including transferred non-cash assets or liabilities
assumed) into the current profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and
financial liabilities, and such legal right is currently enforceable, and the Company plans to settle the
financial assets on a net basis or realize the financial assets and settle the financial liabilities at the same
time, the financial assets and financial liabilities are listed in the balance sheet at a net amount after mutual
offset. In addition, financial assets and financial liabilities shall be listed separately in the balance sheet
and shall not be offset against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to
transfer a liability in an orderly transaction on the measurement date. Where there is an active market for
financial instruments, the Company adopts quotations in the active market to determine their fair values.
Quoted price in active market refers to the price easily obtained from exchanges, brokers, industry
Notes to the Financial Statements
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.
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.
12. 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
Notes to the Financial Statements
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 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
Notes to the Financial Statements
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.
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
Notes to the Financial Statements
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
① Notes 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
Commercial acceptance bill
the same as the "receivable" portfolio classification.
As for the notes receivables’ classified as portfolio, the Company referred to the historical credit loss
experience, combined with current situation and forecast for the future economic condition, calculating the
expected credit loss. Through risk exposure at default and lifetime expected credit loss,
② Accounts receivable and other receivables
For receivables that do not contain significant financing components, the Company measures the loss
reserve according to the expected credit loss amount equivalent to the entire duration.
Notes to the Financial Statements
For receivables that contain significant financing components, the Company measures the loss reserve
based on whether the credit risk has increased significantly since the initial recognition, using the amount
of expected credit loss within the next 12 months or the entire duration.
According to whether the credit risk of other receivables has increased significantly since the initial
recognition, the Company measures impairment loss with an amount equivalent to the expected credit loss
within the next 12 months or the entire duration.
In addition to the accounts receivable and other receivables that individually assess credit risk, they
are divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
As for the receivables classified as portfolio, the Company referred to the historical credit loss
experience, combined with current situation and forecast for the future economic condition, calculating the
expected credit loss. Through cross reference table between the aging of receivables and lifetime expected
credit loss. The aging of receivables is calculated on the date of recognition.
The portfolio of other receivable is recognized as follows:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
Portfolio 2 Deposit/margin portfolio
Portfolio 3 The portfolio of reserve fund ledger formed by the Company's staff loan
As for the other receivables classified as portfolio, the Company referred to the historical credit loss
experience, combined with current situation and forecast for the future economic condition, calculating the
expected credit loss. Through risk exposure at default and lifetime expected credit loss in the coming 12
months. For the other receivables classified as aging, is calculated on the date of recognition.
13.Inventory
(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.
Notes to the Financial Statements
(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.
14. Held-for-sale assets and disposal group
(1) Recognition standards and accounting method treatment for 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 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
Notes to the Financial Statements
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.
(2) Standards for Determining and Methods for the Presentation of Discontinued Operations.
Notes to the Financial Statements
A component of an entity that either has been disposed of or is classified as held for sale and:
a) represents a separate major line of business or geographical area of operations,
b) is part of a single co-ordinated plan to dispose of a separate major line of business or geographical
area of operations or
c) is a subsidiary acquired exclusively with a view to resale.
Net profit from continuing operation and Net profit from discontinued Operation are added under the
Item Net Profit of the Profit and Loss Statement, a single amount in the statement of comprehensive
income comprising the total of:i) the post-tax profit or loss of continuing operation and discontinued
operations. Profit and Loss from the discontinued operation shall listed as Discontinued Operation Profit
and Loss, which comprises of the entire reporting period, not only recognized as the reporting period after
the termination of the operation.
15. 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, 11 “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
Notes to the Financial Statements
earnings shall be adjusted. Where the equity securities are issued as merger consideration, the apportioned
share of the book value in the final controller's consolidated financial statements on the combination date
in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment, and the total par value of the issued shares is taken as the share capital. The capital reserve
shall be adjusted subject to the difference between the initial investment cost of the long-term equity
investment and the total par value of the shares issued; if the capital reserve is insufficient for offsetting,
the retained earnings shall be adjusted. Where the equity of combined parties under the same control is
obtained through multiple transactions and a business combination under the same control is formed
finally, it shall be treated differentially based on whether it is a “package deal”: if it belongs to a “package
deal”, all transactions will be treated as a transaction that obtains control. If it is not a “package deal”, the
apportioned share of the book value in the final controller's consolidated financial statements on the
combination date in accordance with the shareholders' equity shall be the initial investment cost of the
long-term equity investment. The capital reserve shall be adjusted subject to the difference between the
initial investment cost of the long-term equity investment and the sum of the book value of long-term
equity investment before combination date and the book value of the new consideration for the new share
on the combination date. If the capital reserve is insufficient for offsetting, the retained earnings shall be
adjusted. The equity investments that are held prior to the combination date and are recognized with equity
recognized or as available-for-sale financial asset as other comprehensive income will not be given
accounting treatment for the moment.
For a long-term equity investment obtained from a combination of businesses not under the same
control, the initial investment cost of the long-term equity investment shall be based on the combination
cost on the purchase date. The combination cost includes the assets paid by purchaser, the liabilities
incurred or assumed, and the sum of the fair value of issued equity securities. Where the equity of
combined parties not under the same control is obtained through multiple transactions and a business
combination under the same control is formed finally, it shall be treated differentially based on whether it
is a “package deal”: if it belongs to a “package deal”, all transactions will be treated as a transaction that
obtains control. If it is not a “package deal”, the initial investment cost of the long-term equity investment
calculated by the cost method shall be calculated based on the sum of the book value of the equity
investment 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.
Notes to the Financial Statements
The equity investments other than formed by business combination shall be initially measured at cost.
The cost will be determined based on the following amount according to different methods of the
acquisition of long-term equity investment: the purchase price in cash actually paid by the Company; the
fair value of the equity securities issued by the Company, the value agreed in relevant investment contract
or agreement; the fair value or original book value of the assets exchanged in non-monetary asset exchange
transaction; the fair value of the long-term equity investment itself. Any expenses, taxes and other
necessary expenses directly related to the acquisition of long-term equity investments shall also be
included in the cost of investment. The cost of long-term equity investment for the additional investment
that can exert significant influence on investee or implement joint control but does not constitute control
shall be the sum of the fair value of the originally held equity investment recognized in accordance with
the Accounting Standards for Business Enterprises No.. 22 – Recognition and Measurement of Financial
Instruments and the cost for new investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control
over the invested entity (except for those constituting joint operators) or have significant impact on the
invested entity. In addition, the company's financial statements use the Cost Method to account for
long-term equity investments, which can control the long-term equity investment of the investee.
① 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.
② 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
Notes to the Financial Statements
the same time. The book value of long-term equity investment is reduced accordingly by calculating the
share that should be enjoyed according to the profit or cash dividend declared by the investee. The book
value of long-term equity investment shall be adjusted and included in the capital reserve for other changes
in the owner's rights and interests of the invested entity other than the net profit and loss, other
comprehensive income and profit distribution. When confirming the share of the net profit and loss of the
investee, the net profit of the investee shall be adjusted and confirmed on the basis of the fair value of the
identifiable assets of the investee at the time of investment. If the accounting policies and periods adopted
by the invested entity are inconsistent with the Company, the financial statements of the invested entity
shall be adjusted in accordance with the accounting policies and periods of the Company, and the
investment income and other comprehensive income shall be confirmed accordingly. For the transactions
between the Company and the associates and joint ventures, the assets invested or sold do not constitute a
business, and the unrealized gains and losses from internal transactions are offset against the portion of the
Company that is attributable to the proportion of the shares, on this basis. investment profit and loss should
be confirmed. However, the unrealized internal transaction losses incurred by the Company and the
investee are not included in the impairment losses of the transferred assets. Where the assets invested by
the Company into a joint venture or an associates constitute a business, if the investor obtains long-term
equity investment but does not control, the fair value of the invested business shall be deemed as the initial
investment cost of the new long-term equity investment, and the difference between the initial investment
cost and the book value of the invested business is fully recognized in the current profits and losses. If the
assets sold by the Company to a joint venture or an associate that constitute a business, the difference
between the consideration value obtained and the book value of the business shall be fully recognized in
the profits and losses of the current period.
When confirming the net loss that incurred by the investee should be shared, the book value of the
long-term 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.
(3) Acquisition of Minority Equity
Notes to the Financial Statements
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.
(4) 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.7 .
For the disposal of long-term equity investment in other cases, the difference between the book value
of the disposed equity and the actual acquisition price shall be included in the current profits and losses.
If the long-term equity investment is accounted for by equity method, the remaining equity after
disposal is still accounted for by equity method, when disposing, the other comprehensive income which
were originally included in shareholder's rights and interests shall be accounted for on the same basis as the
assets or liabilities directly disposed of by the investee. The owner's equity recognized as a result of
changes in the owner's equity of the investee other than net profit or loss, other comprehensive income and
profit distribution, it should be carried forward to the current profit and loss
For the long-term equity investment accounted by Cost Method, the remaining equity is still
accounted by Cost Method after disposal, other comprehensive income that recognized by equity method
accounting or financial instrument recognition and measurement criteria accounting before obtaining
control over the investee shall be accounted for on the same basis as the assets or liabilities directly
disposed of by the investee, and shall be settled to the current profit and loss in proportion. Changes of the
net assets of investee in the owner's equity other than net profit or 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
Notes to the Financial Statements
on the investee, it shall be accounted for according to the relevant provisions of the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the
date of loss of control. It is included in the current profit and loss. Before the Company obtains control
over the investee, other comprehensive income recognized by equity method accounting or financial
instrument recognition and measurement criteria is used to directly dispose of the relevant assets with the
investee, accounting treatment based on the same basis as the investee directly disposes of related assets or
liabilities when the control of the investee is lost, Accounting is treated on the same basis as the liabilities.
Changes in the owner's equity other than net profit or loss, other comprehensive income and profit
distribution of the investee's net assets recognized by the equity method are carried forward to the current
profit or loss when the control of the investee is lost. Among them, the remaining equity after disposal is
accounted for using the equity method. Where the remaining equity after disposal is accounted for by
equity method, other comprehensive income and other owner's equity should be settled by proportion. If
the remaining equity is accounted for using financial instrument recognition and measurement standard, all
of other comprehensive income and other shareholder’s equity should be settled.
If the Company loses its joint control or significant influence on the investee due to the disposal of
part of the equity investment, the remaining equity after disposal shall be accounted for according to the
financial instrument recognition and measurement criteria, and the difference between the fair value and
the book value on the date of loss of joint control or significant influence is recognized in the current profit
or loss. The other comprehensive income recognized in the original equity investment by the equity
method is accounted for on the same basis as the investee's direct disposal of related assets or liabilities
when the equity method is terminated, Owner's equity recognized as a result of changes in other owners'
equity other than net profit or loss, other comprehensive income and profit distribution of the investee
should be transferred to current investment income when terminating the equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple
transactions until the loss of control. If the above-mentioned transactions are part of a package transaction,
the transactions are treated as a transaction dealing with the equity investment of the subsidiary and losing
control. The difference between the book value of each long-term equity investment corresponding to the
disposal price and the disposal of the equity before loss of control is first recognized as other
comprehensive income, and when the control is lost, it is transferred to the current profit and loss of loss of
control.
16. 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
Notes to the Financial Statements
after appreciation, and buildings that have been rented. Investment property is initially measured at cost.
The expenses related to investment property, if the economic benefits related to this asset are highly
probable to flow into the company and the cost can be measured reliably, then the expense will account for
as the cost of investment property. Other expenses are accounted for in profit and loss when incurred.
The Company adopts the cost model to conduct subsequent measurement of investment property and
depreciation or amortization according to the policy consistent with the building or land use rights.
For details of the impairment test method and impairment provision method of property, please refer
to Note Ⅲ. 23 “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.
17. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services,
renting or operating management, and having a service life of more than one fiscal year. Fixed assets are
recognized only when the economic benefits associated with them are likely to flow into the Company and
their costs can be reliably measured. Fixed assets are initially measured at cost and taking into account the
impact of projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Notes to the Financial Statements
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
Machinery equipment 5-28 4、5 3.39—19.20
depreciation
straight-line
Transport facility 5-10 4、5 9.50—19.20
depreciation
straight-line
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. 23 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with
ownership of an asset, and its ownership may or may not be transferred. If it is reasonable to determine the
ownership of the leased asset at the expiration of the lease term, the depreciation shall be calculated within
the useful life of the leased asset; If it is not reasonable to determine the ownership of the leased asset at
the expiration of the lease term, depreciation shall be calculated within a relatively short period of the lease
term and the service life of the leased assets.
(5) Others
The subsequent expenses related to fixed assets, if the economic benefits related to the fixed assets are
likely to flow in and their costs can be reliably measured, are included in the cost of fixed assets and the
book value of the replaced part should be terminated. The subsequent expenditures other than mentioned
as above are recognized in profit or loss in the period in which they are incurred.
Notes to the Financial Statements
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.
18. 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. 23 “Long-Term Asset Impairment”.
19. 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.
Notes to the Financial Statements
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.
20. Right-of-use assets
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.
(1) Initial accountings
At the commencement date of the lease, the Group recognizes 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 company recognizes and measures the above costs under Item 4 in accordance with the
Accounting Standards for Enterprises No.13–Contingencies.
(2) Subsequent accounting
The Company accursed the right-of-use assets according to the Accounting Standards for Enterprises
NO.4-Fixed Assets. Commencement from the date of lease, the Company shall accrue the right-of-use
assets. Generally the right-of-use assets are accrued at the start of the lease date, the expenses of
depreciation accrued shall include into relevant asset cost or profit and loss in the current period based on
the purpose of right-of-use assets. While recognizing the method of right-of-use assets, the Company shall
make decisions on the economic benefit of forecast consumption mode related to the right-of-use assets,
accrues the deprecation by straight-line method. When the Company recognize the depreciation period of
right-of-use assets, maturity of lease period can be determined in a reasonable and well-grounded manner
Notes to the Financial Statements
on the acquisition of the right-of-use assets, accursed the deprecation in its remaining service life. If the
right-of-use lease assets could not be determined reasonably while the service life is mature, depreciation
is applied with the short period of time between the lease term and the remaining useful life of the lease
asset.
If there is impaired right-of-use assets, the Company shall accrue the subsequent deprecation based on
the book value of right-of-use assets after deducting the loss of impairment.
The Company determined not to recognized the right-of-use assets and lease liabilities on the
short-term lease (lease term not exceeding 12 months), and recognizes the relevant lease payment during
the respective lease term in the current profit and loss or cost of assets relevant in straight line
method. Impairment test method and the provision method for diminution in value of right-of-use assets
are detailed in Note III 23 “Long-Term Asset Impairment”
21. 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
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.
(1) Basis for determining the service life, the estimate thereof, and amortization methods and the
procedures for reviewing their service life
When recognizing the service life of the intangible assets, being sourced from any contractual right or
other statutory rights, its service life shall not exceed the life of contractual rights or other statutory rights.
As for the intangible assets not specified either under the contract or legal regulations, the company
combined various situations, such as employing relevant professional persons to undergo the justification
or make comparison with the situation of the same industry and the historical experience of the Company,
determining the future economic benefit service life which is brought by the intangible assets. If the efforts
Notes to the Financial Statements
are made, but could not recognized reasonably that the intangible asset shall bring the economic benefit
service life for the Company, then shall treat this as uncertain service life of the intangible asset.
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
Software 3-10 Straight-line method
Land-use rights 50 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.
Notes to the Financial Statements
If it is impossible to distinguish the expenditures between research phase and development phase, all
research and development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method, please refer to Note Ⅲ.
23 “Long-Term Asset Impairment”.
22. 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.
23. 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.
Notes to the Financial Statements
The book value of the goodwill listed separately in the financial statements is amortized into asset
groups or portfolios that are expected to benefit from the synergies of business combinations when
impairment tests are conducted. The test results show that the recoverable amount of the asset group or
portfolio containing the assessed goodwill is lower than its book value, the corresponding impairment
losses should be confirmed. The amount of impairment loss is first deducted from the book value of the
goodwill amortized to the asset group or portfolio, and then deducted proportionally from the book value
of other assets according to the proportion of the book value of assets other than goodwill in the asset
group or portfolio.
Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value
is restored in the future period.
24. 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
Notes to the Financial Statements
benefits, whichever is earlier, the Company will recognize the employee compensation liabilities arising
from the dismissal benefits, and included in the current profit and loss. However, if the dismissal benefits
are not expected to be fully paid within 12 months after the end of annual reporting period, they shall be
treated in accordance with other long-term employee compensations.
The internal retirement plan for employees shall be treated in the same way as the above-mentioned
dismissal benefits. The company will pay the internal retired staff the salary and the social insurance
premiums from the employee's lay-off to normal retirement, and will include in the current profit and loss
(dismissal benefits) when the conditions of the estimated liabilities are met.
If the other long-term employee benefits provided by the Company to the employees are in line with
the Defined Contribution Plan, they shall be accounted for Defined Contribution Plan, and otherwise
accounted for the Defined Benefit Plan.
25.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.
(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,
Notes to the Financial Statements
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).
26. 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.
① 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.
② 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
Notes to the Financial Statements
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:
① If the settlement enterprise settles with its own equity instrument, the share-based payment
transaction shall be treated as equity-settled share-based payment; otherwise, it shall be treated as a
cash-settled share-based payment.
If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the
long-term equity investment of the serviced enterprise according to the fair value of the equity instrument
at the grant date or the fair value of the liability to be assumed, and the capital reserve (other capital
reserve) or liabilities shall be recognized.
Notes to the Financial Statements
② 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
27. Revenue
The term “revenue” refers to the gross inflow of economic benefits arising in the course of the
ordinary activities of an enterprise, which may increase of the shareholder's equities and is irrelevant to the
capital of the shareholder. 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. A contract with
a customer generally explicitly states the goods or services that an entity promises to transfer to a customer.
The transaction price is the amount of consideration to which an entity expects to be entitled in exchange
for transferring promised goods or services to a customer, excluding amounts collected on behalf of third
parties.
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.
For the performance obligations performed in a certain period of time, such as the services provided,
the company adopts the 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
Notes to the Financial Statements
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.
Where the contract contains two or more performance obligations, an entity shall, on the
commencement date of the contract, allocate the transaction price to each performance obligation
identified in the contract on a relative standalone selling price basis. Except when an entity has observable
evidence that the entire discount relates to only one or more, but not all, performance obligations in a
contract, the entity shall allocate a discount proportionately to all performance obligations in the contract.
Stand-alone selling price refers to the price of the goods or services sold by the Company to the customer
separately. If the stand-alone selling price cannot be directly observed, the Company shall take into
account all relevant information reasonably available and estimate the stand-alone selling price by
observable input values to the maximum extent
As for the sales with quality guarantee, except for it guarantees the product on sale of service meets
the designated standards to the customer, providing a single separate service, this quality guaranteed
composes the single performance obligation. Otherwise, the Company shall treat the accounting method on
quality guarantee obligations in accordance with the Enterprise Accounting Standards No,13-
Contingencies.
If the contract comprised of significant financing elements, the Company shall recognizes the amount
of payables in cash to determine the trading price based on the assumption that the customer obtains the
products or service control rights. The difference between the price stipulated in the contract or agreement
and its contract consideration shall be amortized within the period of the contract or agreement. through
the real interest method. As a practical expedient, an entity need not adjust the promised amount of
consideration for theeffects of a significant financing component if the entity expects, at contract inception,
that the period between when the entity transfers a promised good or service to the customer and when the
customer pays for that good or service will be one year or less.
The Company justifies the trading identity is the major responsible person or on behalf based on
whether it has the control right to the product or the service before transferring the products or service to
Notes to the Financial Statements
the customer. As the major responsible person of the Company, shall recognizes the revenue based on the
total consideration of the amount received or receivable. Otherwise, as the agent of the Company, shall
recognizes the revenue based on the expected right of obtaining the commission or service charge, which is
calculated as the total consideration on the amount received or receivable deducting the net amount
payable to other related parties or recognizes on the amount of commission or proportion etc.
The Company received the amount of products sales or service in advance, shall recognizes it as
liabilities in the first, then accounted as revenue upon fulfilling relevant performance obligations.
The Company has transferred the products or service to its clients and has rights to obtain the
considerations (and this rights is obliged to other elements of passing time) listed as the contractual assets.
Contractual assets are accrued the devaluation provision based on the expected credit loss. The Company
has the unconditional rights (only depends on the passing of time) to its customer for obtaining the
considerations, listed as item receivables. The consideration of amount received or receivable, which is
obtained to its customer, shall transfer product or service obligation to them, listed as contractual
liabilities.
The detailed accounting policies related to the major activities of obtaining the revenue of the
Company
(1) Sales processing
The production and processing sales comprise mainly of sales of oils an oilseeds, food etc. The
Company recognized the sales revenue when the amounts received or identification obtained upon sales,
which has been submitted and signed by the customer.
(2) Trading Revenue
If the Company obtained the product control rights from the third party and transferred to the client,
assumed the significant obligations under the transaction of transferring the products to the client. i.e.
inventory risk, and has rights to determine the price of the products oneself. The identity of the Company
under the transaction is the major responsible person, recognizing the trading revenue based on the
expected rights for obtaining the total consideration stipulated on the contract. The Company made
commitment to arrange others to provide specific products, but has no control rights on this before
providing the specific products to clients. The identity of the Company under the transaction is agent,
recognizing the revenue on the commission obtained or service amount for arranging others to provide the
specific products to clients.
28. Contract cost
Contract cost comprises contract performance cost and contract acquisition cost.
Notes to the Financial Statements
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.
If the incremental cost incurred by the company to obtain the contract is expected to be recovered, it
shall be recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will
not occur if the company does not obtain the contract.
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.
If the book value of the above assets related to the contract cost is higher than the difference between
the residual consideration expected to be obtained by the company due to the transfer of the goods related
to the assets and the estimated cost to be incurred for the transfer of the relevant goods, the excess part
shall be set aside as an impairment provision and recognized as an impairment loss of the asset.
29. Government grants
Government grant refers to the company's acquisition of monetary and non-monetary assets from the
government free of charge, excluding the capital invested by the government as an investor and enjoying
the corresponding owner's rights and interests. Government grants include assets-related grants and
revenue-related grants. The company defines the government grant obtained for the purchase and
construction of long-term assets or for the formation of long-term assets in other ways as the government
grant related to assets; the remaining government grant is defined as the government grant related to
income. If the object of grants is not specified in government documents, the grants shall be divided into
income-related government grants and assets-related government grants in the following ways: (1) If the
government document clarifies the specific project for which the grant is targeted, the proportion of the
expenditure amount of the assets to be formed and the amount of the expenditures included in the expenses
in the budget of the specific project are divided, and the proportion of grant division needs to be reviewed
Notes to the Financial Statements
on each balance sheet day and changed if necessary. (2) In government documents, if the purpose is
expressed only in general terms and no specific project is specified, the grant shall be regarded as a
government grant related to the income. Where a government grant is a monetary asset, it shall be
measured according to the amount received or receivable. If the government grants are non-monetary
assets, they shall be measured at the fair value; if the fair value cannot be obtained reliably, they shall be
measured at the nominal amount. Government grants measured in nominal amounts shall be recognized
directly in current profits and losses.
The Company usually confirms and measures the government grant according to the amount when it
is actually received. However, if there is conclusive evidence at the end of the period that the relevant
conditions stipulated in the financial support policy can be met and the financial support funds are
expected to be received, it shall be measured according to the amount receivable. Government grants
measured in accordance with the amount receivable shall meet the following conditions at the same time:
(1) The amount of the subvention receivable has been confirmed by the authorized government
departments, or can be reasonably calculated according to the relevant provisions of the formally issued
financial fund management measures, and there is no significant uncertainty in the amount expected; (2)
According to the "Regulations on the Openness of Government Information" that the local financial
department officially released and in accordance with the provisions of the "Regulations on the Openness
of Government Information," the financial support project and its financial fund management measures
should be inclusive (any 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.
Notes to the Financial Statements
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.
(2) If the finance allocates the discount funds directly to the company, the company will offset the
corresponding discount against the relevant borrowing costs.
30. Deferred Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and
previous periods are measured by the expected amount of income tax payable (or returned) in accordance
with the provisions of the Tax Law. The amount of taxable income on which current income tax expenses
are calculated is based on the corresponding adjustment of pre-tax accounting profits in the reporting
period in accordance with the relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis, and the
temporary difference between the book value of items that are not recognized as assets and liabilities but
which can be determined as their tax basis according to the tax law, are confirmed by the balance sheet
liability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initial
recognition of an asset or liability arising from a transaction that is neither a business combination nor an
Notes to the Financial Statements
accounting profit or taxable income (or deductible loss), relevant deferred income tax liabilities shall not
be recognized. In addition, for taxable temporary differences related to investments in subsidiaries,
associates and joint ventures, if the Company is able to control the turnaround time of temporary
differences, and the temporary difference is unlikely to be reversed in the foreseeable future, the related
deferred income tax liabilities shall not be recognized. Except for the above exceptions, the Company
recognizes all other deferred income tax liabilities arising from taxable temporary differences.
Taxable temporary differences which related to the initial recognition of an asset or liability arising
from a transaction that is neither a business combination nor an accounting profit or taxable income (or
deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for taxable
temporary differences related to investments in subsidiaries, associates and joint ventures, if the temporary
difference is unlikely to be reversed in the foreseeable future, or the amount of taxable income used to
offset the temporary difference is unlikely to be obtained in the future, the deferred income tax assets
concerned shall not be recognized. Except for the above exceptions, the Company recognizes other
deferred income tax assets that can offset temporary differences, subject to the amount of taxable income
that is likely to be obtained to offset temporary differences.
For deductible losses and tax credits that can be carried forward in subsequent years, the
corresponding deferred income tax assets are recognized to the extent that it is probable that the future
taxable income shall be used to offset the deductible losses and tax credits.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates in the period in which the related assets are recovered or the related
liabilities are recovered in accordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book
value of deferred income tax assets is written down if it is likely that sufficient taxable income will not be
available to offset the benefits of deferred income tax assets in the future. When it is possible to obtain
sufficient taxable income, the amount written down shall be reversed.
(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.
Notes to the Financial Statements
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis, and intends to settle on a net basis or
acquire assets and pay off liabilities at the same time, the company's current income tax assets and current
income tax liabilities shall be presented on a net basis after the offset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a
net basis, and deferred income tax assets and deferred income tax liabilities are related to the income tax
levied by the same tax administration department on the same tax payer or to different tax payers, but in
the future, during each important period of deferred income tax assets and liabilities being reversed, the
taxpayer involved intends to settle the current income tax assets and liabilities on a net basis, or acquire
assets and pay off liabilities simultaneously, the deferred the income tax assets and deferred income tax
liabilities of the Company shall be presented on a net basis after offset.
31. Lease
On the commencement date of a contract, an enterprise shall assess whether the contract is a lease or
includes a lease. Where a party to a contract transfers the right to control the use of one or more identified
assets for a certain period of time in return for consideration, the contract is a lease or includes a lease. To
determine whether the right to control the use of identified assets within a certain period of time under a
contract has been transferred, an enterprise shall assess whether a client in the contract has the right to use
almost all of the economic benefits arising from the use of the identified assets during the period of use,
and has the right to dominate the use of identified assets during this period of use.
Where a contract concurrently contains multiple separate leases, the lessee and lessor shall split the
contract and conduct accounting treatment respectively for all separate leases.
Where the following conditions are concurrently met, use of the rights of identified assets shall
constitute a separate lease in a contract:
①A lessee may earn profits from separate use of the assets or joint use with other resources readily
available.
②There is no high dependence or high correlation between the assets and other assets in the contract.
Where a contract concurrently includes both leased and non-leased parts, the Company, as the lessee
and lessor, shall split the leased and non-leased parts to conduct accounting treatment.
(1) The Company records operating lease business as a lessee.
The main types of leased assets of the company include houses and buildings, transportation
equipment and land use rights etc.
Notes to the Financial Statements
1) Initial measurement
At the beginning of the lease period, the Company recognizes its right to use the leased assets during
the lease period as a right-of-use asset, recognition of the present value of outstanding lease payments as
lease liabilities, except short-term and low-value asset leases. In calculating the present value of the lease
payment, the Company uses the interest rate included in the lease as the discount rate. Where the interest
rate included in the lease cannot be determined, the Company uses the incremental borrowing rate as the
discount rate
The lease period is the irrevocable period during which the Company is entitled to use the lease assets.
Where the Company has the option to renew the lease, that is, the right to choose to renew the lease of the
asset, and reasonably determines that the option will be exercised, The lease period also includes the
period covered by the lease renewal option. The Company has the option to terminate the lease, that is, the
right to terminate the lease of the asset, Provided that it is reasonably determined that the option will not be
exercised, the lease period includes the period covered by the option to terminate the lease. Where a
material event or change within the control of the Company occurs and affects whether the Company
reasonably determines that the appropriate option will be exercised... The Company will determine to
exercise the option of renewing the lease, re-evaluation of the option to purchase or not to exercise the
option to terminate the leas on its reasonability.
2) Subsequent measurement
The Company adopts the straight-line method to depreciate the right to use assets. Where it is
reasonable to determine that the leased assets are to be owned upon expiry of the lease term, the Company
shall calculate the leased assets within the remaining useful life of the leased assets. If the ownership of the
leased assets upon expiry of the lease term is unable to be reasonably determined, the Company shall
accrue depreciation within a short period of time between the lease term and the remaining useful life of
the leased assets. The interest expenses of the lease liabilities for each period of the lease term at the
discount rate is recognized by the Company and shall be included into the current profit or loss. Variable
lease payments that are not included in the leasehold liability measure are included in the current profit and
loss at the time of actual incurance.
After commencement of the lease period, when there is a change in the amount of substantial fixed
payments and the amount due to which the guarantee balance is expected, changes in indices or ratios used
to determine rental payments, where the assessment of purchase options, the renewal option or termination
option or actual exercise of the option changes, the Company re-measures the lease liabilities according to
the present value of the change in lease payments, and adjust the book value of the right to use assets
accordingly. If the book value of the right to use assets has been reduced to zero, but the lease liability still
needs to be further reduced, the Company will record the remaining amount in the current profit or loss.
Notes to the Financial Statements
3) Lease change
Lease modification refers to the modification of the lease scope, lease consideration and lease term
beyond the terms of the original contract, including increasing or terminating the right to use one or more
leased assets, extending or shortening the lease term specified in the contract, etc.
If the lease changes and the following conditions are met, the Company will account for the lease
change as a separate lease:
① The lease change expands the scope of the lease by adding the right to use one or more leased
assets;
② The increased consideration is equivalent to the separate price for the extended portion of the lease,
adjusted for the circumstances of the contract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Company redetermines the lease term and discounts the changed lease payment at the revised discount
rate to remeasure the lease liability. In calculating the present value of the lease payment after the change,
the Company uses the inherent interest rate of the lease during the remaining lease term as the discount
rate; If the inherent interest rate of the lease for the remaining lease term cannot be determined, the
Company's incremental borrowing rate on the effective date of the lease change shall be used as the
discount rate.
The Company accounts for the impact of the above adjustment of lease liabilities in the following
cases:
① If the lease change results in the reduction of the lease scope or the shortening of the lease term,
the Company shall reduce the book value of the right of use assets to reflect the partial or complete
termination of the lease. The Company recognises gains or losses related to partial or complete termination
of the lease in profit or loss for the current period.
② For other lease changes, the company shall adjust the book value of the right to use assets
accordingly
4) Short-term leases and leases of low value assets
The Company will consider a lease for a period not exceeding 12 months and excluding a purchase
option as a short-term lease on the commencement date of the lease term; A lease with a lower value when
a single leased asset is a new asset is identified as a low-value asset lease. Where the Company subleases
or intends to sublease leased assets, the original lease is not deemed to be a low-value asset lease. The
relevant asset cost or current profit or loss is recognised on a straight-line basis during each period of the
lease term, and the contingent rent is recognised in current profit or loss when actually incurred
Notes to the Financial Statements
(2) The company records operating lease business as a lessor
The lease commencement date essentially transfers almost all the risks and rewards associated with
the ownership of the leased asset to finance leases, and all other leases are operating leases
1) Operating lease
The rental income of operating lease shall be recognized as current profit and loss according to the
straight-line method during each period of the lease period. The larger initial direct expenses are
capitalized when occurring, and the profits and losses of the current period shall be recorded in stages on
the same basis as the recognized rental income during the whole lease period; the smaller initial direct
expenses shall be recorded in the profits and losses of the current period when occurring. Contingent
rentals shall be included in current profits and losses when actually occurring.
2) Finance lease
At the beginning date of the lease term, the Company recognizes the financial lease payment
receivable for the financial lease and terminates the recognition of the financial lease assets. When the
Company makes the initial measurement of the financial lease receivable, the net lease investment is taken
as the recorded value of the financial lease receivable. The net lease investment is the sum of the unsecured
balance and the present value of the lease proceeds not yet received at the commencement date of the lease
term, discounted at the intrinsic interest rate of the lease. The Company calculates and recognizes interest
income for each period of the lease term based on the inherent interest rate of the lease.
The Company presents financial lease receivables as long-term receivables, and financial lease
receivables received within one year (including one year) from the balance sheet date are presented as
non-current assets maturing within one year.
32. Other important accounting policies and accounting estimates
(1) 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.
(2)Fair value hedging
Notes to the Financial Statements
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.
33. Significant accounting judgments and estimates
There is no significant change on the accounting judgments and estimates
IV. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in
the current period, the difference between the sales of goods, 1%、3%、5%、
Value Added Tax taxable services and taxable services income calculated in 6%、9%、
accordance with the provisions of the Tax Law is the taxable 10%、13%
value-added tax.
Urban Maintenance &
According to the actual value-added tax 7%、5%
Construction Tax
Extra charges of According to value added tax and consumption tax on the basis
3%
education funds of actual payment
Local Extra Charges of According to value added tax and consumption tax on the basis
2%
Education Funds of actual payment
25%、20%、
Corporate Taxes According to taxable income
17%、15%
According to 70% of original value of the real estate (or rental
Property Tax income) as the tax base; according to the original value of the 12%、1.2%
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.,
20%
Ltd.
Jingliang (Singapore) International Trade Co., Ltd. 17%
Beijing Guchuan Bread Food Co., Ltd. 15%
Notes to the Financial Statements
2. Preferential 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.
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
(CaiShui [2016] No.52).
In accordance with the relevant provisions of Ministry of Finance and State Administration of
Taxation “Notice on Preferential Enterprise Income Tax Policies for Employment of Persons with
Disabilities”(Cai Shui[2009] No.70), Hangzhou Linan Little Angel Food Co., Ltd. , a grade-4 subsidiary
company of the Company: Where an enterprise employs persons with disabilities, on the basis of
Notes to the Financial Statements
deduction according to the wages paid to the disabled workers, it may deduct the amount of taxable
income according to 100% of the wages paid to the disabled workers.
Linqing Little Prince Food Co., Ltd., a 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 2023 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. 6
[2023]). The company meets the requirements for identification as a small and micro enterprise, and the
preferential policies applicable in 2023 are as follows: for 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 25% of the taxable income and the enterprise income tax shall be calculated at a tax
rate of 20%.
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.
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.12 [2023] issued by the State
Administration of Taxation of the Ministry of Finance on the Further Supporting the Development of
Notes to the Financial Statements
Micro and Small Enterprises and Individual Industrial and Commercial Households (No. 12 [2023],. The
company meets the requirements for identification as a small and micro enterprise, and the preferential
policies applicable in 2023 are as follows: "For small-scale VAT taxpayers, small and low-profit
enterprises and individual industrial and commercial households, resource tax (excluding water resource
taxation), 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.
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.
V. Notes on Items in Consolidated Financial Statements
Note: The ‘Opening Balance’ of the period refers to January 1, 2023 and the ‘Closing Balance’ of the
period refers to December 31, 2023. The prior period refers to the year 2022 and the current period refers
to the year 2023.
1. Monetary funds
Items Closing Balance Opening Balance
Cash 9,949.26 10,693.10
Bank Deposits 533,387,412.58 201,602,248.02
Other Currency Funds 119,931,760.14 19,913,001.31
Deposit in the Financial Company 890,056,629.88 339,487,167.33
Total 1,543,385,751.86 561,013,109.76
Among them: the total amount of money
3,113,810.75 16,585,678.20
deposited abroad
Notes to the Financial Statements
2. Transactional financial assets
Items Closing Balance Opening Balance
Financial assets measured at fair value with changes
11,005,983.98
included in current profits and losses
Among them: debt instrument investment 11,005,983.98
Total 11,005,983.98
3. Derivative financial assets
Items Closing Balance Opening Balance
Hedging instrument floating profit and loss 31,684,620.00 201,549.12
Total 31,684,620.00 201,549.12
4. Accounts Receivable
(1) Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 96,507,223.82 53,353,692.33
1 to 2 years (including 2 years) 762,767.27 18,692,634.64
2 to 3 years (including 3 years) 18,497,856.00 7,499,480.04
3 to 4 years (including 4 years) 7,499,480.04
4 to 5 years (including 5 years)
More than 5 years 328,259.50 328,259.50
Total 123,595,586.63 79,874,066.51
(2) Present according to the method of provision for bad debt
Closing Balance
Type(s) Book Balance Bad Debt Provision
Book Value
Amount Ratio(%) Amount Provision Ratio(%)
Separate provision
328,259.50 0.27 328,259.50 100.00
for bad debts
Portfolio provision
123,267,327.13 99.73 7,486,954.58 6.07 115,780,372.55
for bad debts
Total 123,595,586.63 7,815,214.08 115,780,372.55
(Continued)
Notes to the Financial Statements
Opening Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%)
Ratio(%)
Separate provision for
328,259.50 0.41 328,259.50 100.00
bad debts
Portfolio provision
79,545,807.01 99.59 2,488,360.15 3.13 77,057,446.86
for bad debts
Total 79,874,066.51 —— 2,816,619.65 —— 77,057,446.86
A. Separate provision for bad debts
Closing Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Fujian Jingxin Industrial
151,844.00 151,844.00 100.00 expected unrecoverable
Group Co., Ltd
Beijing Guotai Pingan
Tianzhu Commercial 1,809.60 1,809.60 100.00 expected unrecoverable
Development Co., Ltd.
Beijing Rongfa Lida Grain
163,143.00 163,143.00 100.00 expected unrecoverable
and Oil Trade Co., Ltd.
Beijing Guotai Pingan
10,862.90 10,862.90 100.00 expected unrecoverable
Department Store Co., Ltd
Beijing Shunyi Longhua
600.00 600.00 100.00 expected unrecoverable
Shopping Mall
Total 328,259.50 328,259.50 —— ——
B. Portfolio provision for bad debts
Portfolio provision Items are as follows:
Closing Balance
Name
Accounts receivable Bad Debt Provision Provision Ratio
Credit Risk Portfolio 123,267,327.13 7,486,954.58 6.07
Total 123,267,327.13 7,486,954.58 6.07
(Continued)
Opening Balance
Name
Accounts receivable Bad Debt Provision Provision Ratio
Credit Risk Portfolio 79,545,807.01 2,488,360.15 3.13
Notes to the Financial Statements
Total 79,545,807.01 2,488,360.15 3.13
(3) details of bad debt provision
The amount changed for the period
Opening Closing
Items Withdrawal Other
Balance Addition Write-off Balance
or reversal changes
Bad debt provision on
328,259.50 127,412.16 127,412.16 328,259.50
individual basis
Credit impairment loss 2,488,360.15 4,998,594.43 7,486,954.58
Total 2,816,619.65 5,126,006.59 127,412.16 7,815,214.08
(4) Accounts receivable actually written off in the current period
Items Write-off amount
Actual write-off of accounts receivable 127,412.16
(5) Acounts Receivable of the Top 5 Balances Collected by Debtors and contractual assets situations at the
End of the Period
Ending Proportion of
Contract
Balance of Ending Balance of
Accounts Assets Bad Debt
Name of Entity Receivables Receivables and
receivable Ending Provision
and Contract Contract
Balance
Assets Assets(%)
Nanhai Oil & Grease
42,571,623.60 42,571,623.60 34.44
(Chiwan)Co., Ltd.
Tangshan Caofeidian
District Finance 25,997,336.04 25,997,336.04 21.03 7,449,311.22
Bureau
Zhejiang Lvqin Supply
Chain Management 8,306,036.47 8,306,036.47 6.72
Co., Ltd
Beijing Yangu
Grease&Oil purchase 6,587,142.65 6,587,142.65 5.33
and sale Co.,Ltd.
Hebei Luanping Huadu
3,619,958.60 3,619,958.60 2.93
Food Co., Ltd
Total 87,082,097.36 87,082,097.36 70.45 7,449,311.22
Note: Nanhai Oil & Grease (Chiwan) Co., Ltd, has received Rmb42,571,623.60 of receivables in this
period in Jan 2024
5. Accounts receivable Financing
(1) Presented and sorted by category
Notes to the Financial Statements
Item Closing Balance Opening Balance
Notes receivable 2,502,308.90
Total 2,502,308.90
(2)The ending notes receivable that have been endorsed or discounted and not expired on balance sheet
date.
Item Amount derecognized as at the end Amount not derecognized as at the end
of the reporting period of the reporting period.
Banker's Acceptance 23,902,737.88
Total 23,902,737.88
6. Advanced Payment
(1) Advances are presented by age
Closing Balance Opening Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 87,352,234.48 100.00 194,490,369.48 100.00
1 to 2 years (including 2 years) 5,278.58
Total 87,352,234.48 100.00 194,495,648.06 100.00
(2) Advance payment of the top five Closing Balances by prepaid objects
Ratio of the total Closing Balance
Debtor Name Closing Balance
of prepayments (%)
Tianjin Lingang Customs of the
35,030,503.37 40.10
People's Republic of China
Tuofu International Trade
25,329,796.12 29.00
(Shanghai)Co.Ltd.
Louis Dreyfus (Tianjin) International
9,095,649.83 10.41
Trade Co., Ltd
China Grains Reserve Zhenjiang Grain
8,192,403.18 9.38
and Oil Co., Ltd
Jiangsu Jianghai Grease & Oil Group
5,106,000.00 5.85
Co. Ltd.
Total 82,754,352.50 94.74
Notes to the Financial Statements
7. Other Receivables
Item(s) Closing Balance Opening Balance
Other Receivables 303,099,589.59 444,523,698.48
Total 303,099,589.59 444,523,698.48
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 301,234,542.67 435,828,243.19
1 to 2 years (including 2 years) 641,412.67 7,333,429.30
2 to 3 years (including 3 years) 144,888.00 741,388.00
3 to 4 years (including 4 years) 459,888.00 88,638.00
4 to 5 years (including 5 years) 88,638.00 101,999.99
More than 5 years 531,999.99 430,000.00
Total 303,101,369.33 444,523,698.48
B. Classification of other receivables by nature of funds
Book Balance at End of
Nature of Funds Book Balance at Beginning of Year
Period
Deposit and Guaranteed Deposit 301,372,189.38 436,908,577.53
Intercourse Funds of Units 502,432.60 5,728,584.30
Employee Receivables 840,868.84 1,051,023.02
Tax Refund Receivables 548,483.77
Others 385,878.51 287,029.86
Total 303,101,369.33 444,523,698.48
C. Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected Expected credit loss Expected credit loss
Provision for bad debt credit loss in for the whole for the whole Total
the next 12 period (no credit period (with credit
months impairment) impairment)
Amount on 1st January 2023
Carrying amount on 1st January
2023 that in this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
Notes to the Financial Statements
Stage 1 Stage 2 Stage 3
Expected Expected credit loss Expected credit loss
Provision for bad debt credit loss in for the whole for the whole Total
the next 12 period (no credit period (with credit
months impairment) impairment)
——Get back to Stage 1
Provision for the period 1,779.74 1,779.74
Reverse for the period
Transfer for the period
Write off for the period
Other changes
Amount on 31st December 2023 1,779.74 1,779.74
D. Details of bad debt provision
Carrying Amount changes for the period Carrying
Type amount at the Withdrawal or Write- Other amount at
beginning Addition the end
reversal off changes
Credit
impairment 1,779.74 1,779.74
loss
Total 1,779.74 1,779.74
E. Other receivables according to top five of balance at end of period collected by debtors
Proportion in Closing
Name of Balance at End of overall Closing Nature of Balance of
Aging
Organization Period Balance of other Funds bad debt
receivables (%) reserves
Zhongtian Futures Futures Within 1
149,616,973.10 49.36
Co. Ltd margin year
R.J. O’Brien & Futures Within 1
60,753,187.26 20.04
Associates, LLC margin year
Haitong Futures Futures Within 1
60,223,948.50 19.87
Co., Ltd margin year
Beijing Capital Futures Within 1
18,094,235.00 5.97
Futures Co., Ltd margin year
SDIC Capital Futures Within 1
8,050,064.90 2.66
Co.,Ltd. margin year
Total 296,738,408.76 97.90
8. Inventory
(1) Inventory Category
Items Closing Balance
Notes to the Financial Statements
Inventory Falling Price
Reserves/ Provision for
Book Balance Book Value
impairment of contract
performance cost.
Raw Materials 324,815,755.86 82,063.38 324,733,692.48
Inventory goods 1,122,785,703.06 1,743,754.31 1,121,041,948.75
Revolving Materials 5,049,542.63 5,049,542.63
Goods and materials in
591,034,959.25 591,034,959.25
transit
Total 2,043,685,960.80 1,825,817.69 2,041,860,143.11
(Continued)
Opening Balance
Inventory Falling Price
Items Reserves/ Provision for
Book Balance Book Value
impairment of contract
performance cost.
Raw Materials 445,721,945.85 4,599.51 445,717,346.34
Inventory goods 1,081,693,725.26 44,208,166.31 1,037,485,558.95
Oil reserve 248,197,500.00 248,197,500.00
Revolving Materials 5,267,896.63 5,267,896.63
Goods and materials in
337,276,381.65 337,276,381.65
transit
Total 2,118,157,449.39 44,212,765.82 2,073,944,683.57
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
Increased Amounts in the Current Period
Items Balance at Beginning of Year
Accrual Others
Raw material 4,599.51 82,063.38
Stock Goods 44,208,166.31 29,104,942.87
In total 44,212,765.82 29,187,006.25
(Continued)
Decreased Amounts in the Current Period
Items Balance at End of Period
Recover or Charge Off Others
Raw material 4,599.51 82,063.38
Stock Goods 71,569,354.87 1,743,754.31
In total 71,573,954.38 1,825,817.69
(3) Stock Goods listed by major product type
Notes to the Financial Statements
Closing Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1,097,527,087.36 1,598,094.34 1,095,928,993.02
Food 25,258,615.70 145,659.97 25,112,955.73
Total 1,122,785,703.06 1,743,754.31 1,121,041,948.75
(Continued)
Opening Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1,048,142,485.94 44,023,263.60 1,004,119,222.34
Food 33,551,239.32 184,902.71 33,366,336.61
Total 1,081,693,725.26 44,208,166.31 1,037,485,558.95
9. Non-current assets due within one year
Items Balance at End of Period Balance at Beginning of Period
One-year term deposits 22,188,083.34 148,387,894.16
In total 22,188,083.34 148,387,894.16
10. Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Pending Deduct VAT Input Tax 57,549,582.61 45,572,085.33
Pre-paid Taxes and Fees 16,226,031.95 15,477,676.61
Input Tax to Be Certified 202,103.63
Fair Value Changes of Items Trapped at
238,358,924.24 165,881,137.81
Hedging
Financial Products 405,999,000.00
In total 312,336,642.43 632,929,899.75
Notes to the Financial Statements
11. Long-term Equity Investment
Details
Increase or Decrease in the Current Period
Balance at Beginning Confirmed Profit and Other
Invested Entity Additional Negative Adjustment of other
of Year Loss on Investment changes in
Investment Investment comprehensive income
under Equity Method equity
1. Cooperative Enterprise 121,605,419.10 6,788,124.16
Beijing CHIA TAI Feedmill
121,605,419.10 6,788,124.16
Co. ,Limited
Sub-total 121,605,419.10 6,788,124.16
2. Joint Venture 121,948,497.88 4,580,604.27
China Grain Reserves (Tianjin)
115,506,829.06 4,670,106.47
Warehouse Logistics Co., Ltd.
Jingliang Missme Catering
6,441,668.82 -89,502.20
Management (Beijing) Co., Ltd.
Sub-total 121,948,497.88 4,580,604.27
Total 243,553,916.98 11,368,728.43
(Continued)
Notes to the Financial Statements
Increase or Decrease in the Current Period
Announce to Closing Balance of
invested entity Accrual of Impairment Balance at End of Period
Distribute Case Others Impairment Reserves
Reserves
Dividends or Profits
1. Cooperative Enterprise 128,393,543.26
Beijing CHIA TAI Feedmill
128,393,543.26
Co. ,Limited
Sub-total 128,393,543.26
2. Joint Venture 126,529,102.15
China Grain Reserves (Tianjin)
120,176,935.53
Warehouse Logistics Co., Ltd.
Jingliang Missme Catering
6,352,166.62
Management (Beijing) Co., Ltd.
Sub-total 126,529,102.15
Total 254,922,645.41
Notes to the Financial Statements
12. Other equity instruments investment
Details
Changes in the Current Period
Opening Profits included in other Losses included in other Closing
Item Additional
Balance Disinvestment comprehensive income in the comprehensive income in the Others Balance
Investment
current period. current period.
Chongqing long
jinbao network 20,000,000.00 20,000,000.00
technology Co. LTD
Total 20,000,000.00 20,000,000.00
(Continued)
Dividend revenue Designated at Fair Value Measurement
. Accumulated profit recognized . Accumulated losses recognized
Item recognized in and Reasons on Changes included in
in other comprehensive income in other comprehensive income
current period Other Comprehensive Income
Chongqing long jinbao
network technology Non-trading equity instrument
Co. LTD
Total /
Notes to the Financial Statements
13. 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 54,691,581.60 54,691,581.60
2. Increased Amounts in the Current
Period 9,000,432.40 576,510.00 9,576,942.40
—Inventory\Fixed Assets
9,000,432.40 576,510.00 9,576,942.40
Construction in progress transferred into
3. Decreased Amounts in the Current
Period 846,780.00 846,780.00
—Business Combination Decreasion 846,780.00 846,780.00
4.Balance at End of Period 62,845,234.00 576,510.00 63,421,744.00
Two. Accumulated Impairment and
Accumulated Amortization
1. Balance at Beginning of Year 24,298,508.66 24,298,508.66
2. Increased Amounts in the Current
8,689,044.37 208,504.45 8,897,548.82
Period
—Accrual or Amortization 1,702,684.23 6,725.95 1,709,410.18
—Others 6,986,360.14 201,778.50 7,188,138.64
3. Decreased Amounts in the Current
407,613.95 407,613.95
Period
—Business Combination Decreasion 407,613.95 407,613.95
4. Balance at End of Period 32,579,939.08 208,504.45 32,788,443.53
Three. Impairment Reserves
1. Balance at Beginning of Year 10,587,796.70 10,587,796.70
2. Balance at End of Period 10,587,796.70 10,587,796.70
Four. Book Value
1. Book Value at End of Period 19,677,498.22 368,005.55 20,045,503.77
2. Book Value at Beginning of Year 19,805,276.24 19,805,276.24
Notes to the Financial Statements
14. Fixed Assets
Items Balance at End of Period Balance at Beginning of Period
Fixed Assets 939,548,012.91 1,047,451,810.24
Disposal of Fixed Assets
In total 939,548,012.91 1,047,451,810.24
Fixed Assets Situation
Machinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
One. Original Book Value
1. Balance at Beginning of Year 1,122,769,627.81 804,825,222.53 20,457,864.28 13,030,802.85 7,221,945.92 1,437,635.89 1,969,743,099.28
2. Increased Amounts in the Current
13,492,760.23 34,348,380.82 3,341,783.38 2,677,081.72 2,699,311.67 211,496.30 56,770,814.12
Period
(1) Purchase 6,616,186.68 21,083,983.65 3,341,783.38 2,506,949.77 2,689,711.67 211,496.30 36,450,111.45
(2) Roll-in of Project under
6,876,573.55 13,264,397.17 170,131.95 9,600.00 20,320,702.67
Construction
3. Decreased Amounts in the
71,704,340.83 43,713,280.78 3,725,216.59 1,574,116.98 2,375,464.06 264,054.76 123,356,474.00
Current Period
(1) Disposal or Scrap 336,775.12 11,695,050.45 3,192,236.39 599,483.37 1,070,063.61 16,893,608.94
Decreasion on Business
62,345,633.31 26,556,104.58 532,980.20 767,199.98 206,175.15 264,054.76 90,672,147.98
Combination Scope
Other transferred out 9,021,932.40 5,462,125.75 207,433.63 1,099,225.30 15,790,717.08
4. Balance at End of Period 1,064,558,047.21 795,460,322.57 20,074,431.07 14,133,767.59 7,545,793.53 1,385,077.43 1,903,157,439.40
Notes to the Financial Statements
Machinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
Two. Accumulated Impairment
1. Balance at Beginning of Year 417,797,356.22 465,777,890.41 13,737,392.56 9,541,958.53 5,801,480.29 515,147.41 913,171,225.42
2. Increased Amounts in the Current
39,733,621.12 50,331,349.23 1,512,158.81 1,491,361.67 665,545.62 45,188.19 93,779,224.64
Period
(1) Accrual 39,733,621.12 50,331,349.23 1,512,158.81 1,491,361.67 665,545.62 45,188.19 93,779,224.64
3. Decreased Amounts in the
16,833,102.08 28,421,410.95 3,397,200.44 1,438,172.21 2,161,861.85 209,339.66 52,461,087.19
Current Period
(1) Disposal or Scrap 317,515.91 10,089,700.58 3,103,312.42 569,189.09 1,007,828.57 15,087,546.57
Decreasion on Business
9,516,529.34 13,629,565.20 293,888.02 671,921.17 121,719.73 209,339.66 24,442,963.12
Combination Scope
Other transferred out 6,999,056.83 4,702,145.17 197,061.95 1,032,313.55 12,930,577.50
4. Balance at End of Period 440,697,875.26 487,687,828.69 11,852,350.93 9,595,147.99 4,305,164.06 350,995.94 954,489,362.87
Three. Impairment Reserves
1. Balance at Beginning of Year 9,047,959.13 72,104.49 9,120,063.62
4. Balance at End of Period 9,047,959.13 72,104.49 9,120,063.62
Four. Book Value
1. Book Value at End of Period 614,812,212.82 307,700,389.39 8,222,080.14 4,538,619.60 3,240,629.47 1,034,081.49 939,548,012.91
2. Book Value at Beginning of Year 695,924,312.46 338,975,227.63 6,720,471.72 3,488,844.32 1,420,465.63 922,488.48 1,047,451,810.24
Notes to the Financial Statements
15. Project under Construction
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 59,094,902.29 22,695,003.52
Total 59,094,902.29 22,695,003.52
(1) Project under Construction
A. Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Caofeidian comprehensive bonded zone feed
7,773,303.43 7,773,303.43 5,224,681.81 5,224,681.81
processing project automation line project
Soybean extruding and rumen soybean meal
23,078,937.34 23,078,937.34 1,618,517.50 1,618,517.50
processing project
production line of fried potato chips 8,392,300.91 8,392,300.91
Slope treatment project of No.3 plant 6,969,126.85 6,969,126.85 5,244,356.21 5,244,356.21
The 3rd recreation factory baked potato No.5
Flexible Packing Automation Line 2,556,466.47 2,556,466.47
Transformation Project
The 1strecreation factory baked potato No.3
Flexible Packing Automation Line 2,497,033.51 2,497,033.51
Transformation Project
The 1st recreation factory baked potato No.4
Flexible Packing Automation Line 1,619,325.55 1,619,325.55
Transformation Project
Notes to the Financial Statements
Balance at End of Period Balance at Beginning of Year
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Odor control project 1,585,321.11 1,585,321.11 792,660.56 792,660.56
The 3 recreation factory baked potato No.8
rd
1,240,093.10 1,240,093.10
Line Oven Transformation Project
Others 3,382,994.02 3,382,994.02 9,814,787.44 9,814,787.44
Total 59,094,902.29 59,094,902.29 22,695,003.52 22,695,003.52
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Increased Roll-in Fixed Other Decreased
Balance at Balance at End
Project Name Budget Amount Amounts in the Assets Amount in Amounts in the
Beginning of Year of Period
Current Period the Current Period Current Period
Caofeidian comprehensive bonded zone
7,184,400.00 5,224,681.81 2,548,621.62 7,773,303.43
feed processing project automation line
Soybean extruding and rumen soybean
49,429,300.00 1,618,517.50 21,460,419.84 23,078,937.34
meal processing project
Production line of fried potato chips 9,700,000.00 8,392,300.91 8,392,300.91
Slope treatment project of No.3 plant 17,110,000.00 5,244,356.21 1,724,770.64 6,969,126.85
Jingliang Hainan Yang Pu Grease & Oil
661,324,100.00 434,369.04 434,369.04
Processing Project
Total —— 12,087,555.52 34,560,482.05 46,648,037.57
(Continued)
Notes to the Financial Statements
Proportion of Accumulated Including: Interest Interest
accumulated input of Progress of Amount of Capitalization Capitalization Rate Sources of
Project Name
the project on the Project Interest Amount occurred in the Current Capital
Budgeted Amount(%) Capitalization in Current Period Period(%)
Caofeidian comprehensive bonded zone
108.20 99.00% Equity Fund
feed processing project automation line
Soybean extruding and rumen soybean
46.69 85.00% Equity Fund
meal processing project
Production line of fried potato chips 86.52 50.00% Equity Fund
Slope treatment project of No.3 plant 40.73 80.00% Equity Fund
Jingliang Hainan Yang Pu Grease & Oil Enterprise
0.07 0.07%
Processing Project Self-funded
Total —— —— —— ——
Notes to the Financial Statements
16. Right-of-use Asset
Details
Land Use Transportatio
Items Buildings In total
Right n Equipment
One Original Book Value
1. Balance at Beginning of
4,423,305.76 5,648,400.00 607,367.22 10,679,072.98
Year
2. Increased Amounts in
117,043,974.80 117,043,974.80
the Current Period
(1) Lease 117,043,974.80 117,043,974.80
3. Decreased Amounts in
435,493.80 435,493.80
the Current Period
(1) Expiration of the lease
435,493.80 435,493.80
or change the lease term
4. Balance at End of Period 121,031,786.76 5,648,400.00 607,367.22 127,287,553.98
Two Accumulated
Depreciation
1. Balance at Beginning of
2,733,787.38 903,744.00 73,115.40 3,710,646.78
Year
2. Increased Amounts in
24,572,650.70 112,968.00 94,478.52 24,780,097.22
the Current Period
(1) Accrual 24,572,650.70 112,968.00 94,478.52 24,780,097.22
3. Decreased Amounts in
435,493.80 435,493.80
the Current Period
—Disposal 202,742.29 202,742.29
—Other Transferred Out 232,751.51 232,751.51
4. Balance at End of Period 26,870,944.28 1,016,712.00 167,593.92 28,055,250.20
Three Impairment
Reserves
Four Book Value
1. Book Value at End of
94,160,842.48 4,631,688.00 439,773.30 99,232,303.78
Period
2. Book Value at
1,689,518.38 4,744,656.00 534,251.82 6,968,426.20
Beginning of Year
Notes to the Financial Statements
17. Intangible Assets
Intangible Assets Situation
Trademark
Items Land Use Right Software In total
Right
One Original Book Value
1. Balance at Beginning
316,139,303.96 5,172,273.84 154,841,200.00 476,152,777.80
of Year
2. Increased Amounts in
113,371,253.98 198,141.60 113,569,395.58
the Current Period
(1) Purchase 5,430,549.36 198,141.60 5,628,690.96
—Others 107,940,704.62 107,940,704.62
3. Decreased Amounts in
13,792,524.16 13,792,524.16
the Current Period
—Business
13,216,014.16 13,216,014.16
Combination Decresion
—Other Transferred
576,510.00 576,510.00
Out
4. Balance at End of
415,718,033.78 5,370,415.44 154,841,200.00 575,929,649.22
Period
Two Accumulated
Amortization
1. Balance at Beginning
75,467,995.64 4,176,674.41 71,463,223.41 151,107,893.46
of Year
2. Increased Amounts in
7,360,055.85 231,859.56 7,713,925.84 15,305,841.25
the Current Period
(1) Accrual 7,360,055.85 231,859.56 7,713,925.84 15,305,841.25
3. Decreased Amounts in
3,160,931.42 3,160,931.42
the Current Period
— Business
2,959,152.92 2,959,152.92
Combination Decresion
— Other Transferred
201,778.50 201,778.50
Out
4. Balance at End of
79,667,120.07 4,408,533.97 79,177,149.25 163,252,803.29
Period
Three Impairment
Reserves
Four Book Value
1. Book Value at End of
336,050,913.71 961,881.47 75,664,050.75 412,676,845.93
Period
2. Book Value at
240,671,308.25 995,599.43 83,377,976.66 325,044,884.34
Beginning of Year
Notes to the Financial Statements
18. Goodwill
(1) Original Book Value of Goodwill
Decrease in
Increase in the
Name of Invested Balance at the Current
Current Period Balance at End
Entity or Items Beginning of Period
of Period
Forming Goodwill Year Formed by
Disposal
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
Whether
Composition and Basis of Group of Operation Segment consistent
Name
Assets or Group belongs and Basis belongs with Prior
Period
Acquire stock
Group of Assets comprises of Goodwill Assets mainly used
shares of
related assets，the flow-in cash generated food processing,
Zhejiang Yes
shall be independent of those by other belong to the Food
Xiaowangzi
group assets. Processing Segment
Food Co., Ltd.
Notes to the Financial Statements
(3) The method for the determination of the recoverable amount of the asset group
The recoverable amounts determined according to the current value of future cash flows as predicted by the asset group
Monetary in RMB10,000 Yuan
Asset Period of
Book Recoverable Key Parameters of Key Parameter of the Recognition Basis for the Key
Item Devaluation Forecast
Value Amount Forecast Period Stable Period Parameters of Stable Period
Amount
Pre-tax discount rate recognized
Acquire stock Revenue Increase
Average Revenue based on Risk-free rate of return,
shares of Year 2024 rate is 0% during the
increase rate of Forecast Market Risk premium, risk
Zhejiang 75,383.59 76,266.12 to Year stable period, pre-tax
Period is 3.11%, Pre-tax coefficient, Cost
Xiaowangzi Food 2027 discount rate is
Discount Rate is 16.77% of Equity Capital and
Co., Ltd 16.77%
Income Tax Rate
Total 75,383.59 76,266.12 —— —— —— ——
19. Long-term Unamortized Expenses
Balance at Beginning of Increased Amounts in the Amortized Amounts in the Other Decreased Balance at End of
Items
Year Current Period Current Period Amounts Period
Reconstruction of
13,539,943.97 674,188.08 12,865,755.89
majuqiao plant
Maintenance of leased
2,230,677.31 145,301.88 2,085,375.43
assets
Factory compartment
516,335.99 409,466.67 165,190.24 760,612.42
maintenance
Housing renovation 649,010.65 1,956,777.35 661,794.92 1,943,993.08
Total 16,935,967.92 2,366,244.02 1,646,475.12 17,655,736.82
Notes to the Financial Statements
20. 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
Items Deductible Deferred Deductible
Deferred Income
Temporary Income Tax Temporary
Tax Assets
Difference Assets Difference
Asset Impairment
1,906,843.70 476,710.92 44,268,191.21 11,067,047.80
Reserves
Deductible Loss 190,924,419.06 47,731,104.76 1,383,480.84 345,870.21
Lease liabilities 95,982,927.96 23,995,732.00 167,668.58 41,917.15
Credit impairment
7,816,993.82 1,954,248.46 3,811,842.32 952,960.58
Loss
Deferred Income 12,600,638.84 3,150,159.71 11,824,538.36 2,956,134.59
Wages payable 5,677,134.00 1,419,283.50 5,677,134.00 1,419,283.50
Valuation of
Financial
Instruments and 12,433,441.20 3,108,360.30 211,060.00 52,765.00
Derivative Financial
Instruments
Rebate on contracts 1,112,100.00 278,025.00 3,215,300.44 803,825.11
In total 328,454,498.58 82,113,624.65 70,559,215.75 17,639,803.94
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Taxable Taxable
Deferred Income Deferred Income
Temporary Temporary
Tax Liabilities Tax Liabilities
Difference Difference
Valuation of
Financial
Instruments and
252,306,904.70 63,076,726.18 54,719,042.81 13,679,760.70
Derivative
Financial
Instruments
Valuation and
appreciation of
assets in merger of
135,119,584.58 33,779,896.15 144,667,350.88 36,166,837.72
enterprises not
under the same
control
Use right assets 94,160,842.48 23,540,210.63 34,449.15 8,612.29
Total 481,587,331.76 120,396,832.96 199,420,842.84 49,855,210.71
(3) Details of Deferred Income Tax Liabilities after Offset
Notes to the Financial Statements
Carrying amount offset amount of Carrying amount
Offset amount after offsetting deferred tax after offsetting
of deferred tax between assets and between deferred tax
Items
assets and deferred tax liabilities at the assets and liabilities
liabilities assets and end of last at the end of last
liabilities period period
Deferred tax
73,314,709.43 8,798,915.22 3,450,040.01 14,189,763.93
asset
Deferred tax
73,314,709.43 47,082,123.53 3,450,040.01 46,405,170.70
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 19,626,834.31 19,626,834.31
Deductible Loss 243,290,588.25 183,422,192.19
In total 262,917,422.56 203,049,026.50
(5) Deductible loss on deferred income tax assets not being confirmed will be due at the
following years
Year Balance at End of Period Balance at Beginning of Year Notes
2023 —— 9,688,448.81
2024 38,012,198.48 47,153,825.45
2025 25,114,592.05 25,114,592.05
2026 37,744,225.64 37,836,385.00
2027 63,628,940.88 63,628,940.88
2028 78,790,631.20
Total 243,290,588.25 183,422,192.19 ——
21. Other Non-current Assets
Closing Balance Opening Balance
Items Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
software
purchase 2,833,950.00 2,833,950.00
advancement
Three-year
10,390,000.00 10,390,000.00 53,544,782.34 53,544,782.34
term deposit
Total 13,223,950.00 13,223,950.00 53,544,782.34 53,544,782.34
Notes to the Financial Statements
22. Asset items where the ownership or the right of use is restricted
Ending Balance
Items
Book balance Book value Restricted type ' Constraints
Banker's letter of Banker's letter
Cash and cash
2,746,671.91 2,746,671.91 guarantee deposit of guarantee
equivalents
etc. deposit etc.
Freezing
Freezing amount
Fixed Assets 21,719,189.02 4,994,664.88 amount due to
due to lawsuit
lawsuit
Investment Real Feezing amount Feezing amount
19,594,735.46 5,198,514.17
Estates due to lawsuit due to lawsuit
In total 44,060,596.39 12,939,850.96 / /
(Continued)
Beginning Balance
Item
Book balance Book value Restricted type ' Constraints
Cash and cash Foreign exchange Foreign exchange
9,573,999.69 9,573,999.69
equivalents derivatives deposit derivatives deposit
Freezing amount Freezing amount
Fixed Assets 21,719,189.02 5,408,424.76
due to lawsuit due to lawsuit
Investment Freezing amount Freezing amount
19,594,735.46 5,539,676.69
Real Estates due to lawsuit due to lawsuit
In total 50,887,924.17 20,522,101.14 / /
23. Short-term Borrowings
Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Fiduciary Loan 1,163,479,691.67 1,260,543,148.81
In total 1,163,479,691.67 1,260,543,148.81
24. Derivative financial liability
Item Closing Balance Opening Balance
Changes in fair value of hedging
15,805,393.88 111,373,155.00
instruments
Total 15,805,393.88 111,373,155.00
Notes to the Financial Statements
25. 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
26. Accounts Payable
Accounts Payable Presentation
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 67,912,958.96 99,975,435.40
Project Funds Payable 3,013,449.11 4,362,006.50
Equipment Funds Payable 3,002,660.91 284,311.31
Consultancy Services 3,283,467.22 2,540,367.22
Rental Fee 650,000.00
Storage Charge 2,752,000.00 2,568,000.00
Others 1,860,287.64 1,181,756.78
In total 82,474,823.84 110,911,877.21
27. Advance payment
Advance payment Presented
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1,075,801.34 922,982.41
In total 1,075,801.34 922,982.41
28. Contract liabilities
Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 411,012,990.81 285,555,581.80
Services 19,801.98
Others 426.29
In total 411,033,219.08 285,555,581.80
Notes to the Financial Statements
29. Wages Payable
(1) Wages Payable Presented
Balance at
Increase in the Decrease in the Balance at End
Items Beginning of
Current Period Current Period of Period
Year
Short-term
42,220,454.37 313,000,055.98 324,462,075.35 30,758,435.00
Compensation
After-service
Welfare- Set up ESP 1,708,306.39 35,038,036.41 34,802,219.73 1,944,123.07
liabilities
Dismission Welfare 630,487.11 630,487.11
In total 43,928,760.76 348,668,579.50 359,894,782.19 32,702,558.07
(2) Short-term Compensation Presented
Balance at
Increase in the Decrease in the Balance at End
Items Beginning of
Current Period Current Period of Period
Year
1. Wage, Bonus,
Allowance and 38,119,437.46 253,205,580.89 264,548,466.79 26,776,551.56
Subsidy
2. Welfare Expense
6,920.00 8,700,155.00 8,688,375.00 18,700.00
of Employee
3. Social Insurance
832,783.50 20,201,823.68 20,101,701.56 932,905.62
Expense
Among them:
Medical Insurance 750,291.67 18,690,378.95 18,577,252.35 863,418.27
Premiums
Industrial Injury
66,211.98 1,171,666.66 1,184,226.92 53,651.72
Insurance Premiums
Birth Insurance
16,279.85 339,778.07 340,222.29 15,835.63
Premiums
4. Housing
146,594.49 17,134,890.70 17,166,487.70 114,997.49
Provident Funds
5. Labor Union
Expense and
3,114,718.92 5,620,995.92 6,040,564.51 2,695,150.33
Personnel Education
Fund
6、Other Short-term
8,136,609.79 7,916,479.79 220,130.00
wages
In total 42,220,454.37 313,000,055.98 324,462,075.35 30,758,435.00
(3) Stated Drawings Plan Presented
Balance at
Increase in the Decrease in the Balance at End
Items Beginning of
Current Period Current Period of Period
Year
1. Basic Pension
1,616,949.93 30,105,991.33 29,874,115.56 1,848,825.70
Insurance
Notes to the Financial Statements
Balance at
Increase in the Decrease in the Balance at End
Items Beginning of
Current Period Current Period of Period
Year
2. Unemployment
42,937.75 997,640.80 991,003.76 49,574.79
Insurance Expense
3. Enterprise
48,418.71 3,934,404.28 3,937,100.41 45,722.58
Annuity Charges
Total 1,708,306.39 35,038,036.41 34,802,219.73 1,944,123.07
30. Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
VAT 1,535,814.90 18,489,749.05
Corporate Income Tax 4,643,368.25 39,893,369.93
Urban Maintenance and
184,732.38 1,352,280.58
Construction Tax
House Property Tax 2,317,671.84 2,316,064.99
Land Use Tax 985,671.07 150,746.89
Individual Income Tax 1,655,912.41 2,331,343.41
Stamp Tax 152,358.18 1,135,833.99
Educational Surtax (Including
99,058.19 955,932.66
local educational surcharge)
Environmental protection tax 2,805.25 3,732.68
In total 11,577,392.47 66,629,054.18
31. Other Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 21,082,795.47 21,082,795.47
Dividends Payable 3,213,302.88 3,213,302.88
Other Accounts Payable 55,322,100.43 59,703,587.21
In total 79,618,198.78 83,999,685.56
(1) Interest Payable
Items Balance at End of Period Balance at Beginning of Year
Loan Interest between
21,082,795.47 21,082,795.47
Enterprises
In total 21,082,795.47 21,082,795.47
(2) Dividends Payable
Notes to the Financial Statements
Items Balance at End of Period Balance at Beginning of Year
Others 3,213,302.88 3,213,302.88
In total 3,213,302.88 3,213,302.88
(3) Other Accounts Payable
Other Accounts Payable by Nature of Funds Presented
Balance at End of Balance at Beginning
Items
Period of Year
Intercourse Funds of Related Parties 3,687,264.48 3,070,641.51
Guaranteed Deposit and Deposit 27,614,619.18 18,847,429.40
Intercourse Funds between Units 9,684,592.82 23,301,024.10
Personal Intercourse Funds 3,731,133.46 3,829,316.55
Various Insurances of Employee 3,688,119.63 2,507,094.75
Storage Charge 2,832,948.18 4,432,553.96
Hebei Grease and Oil Gains and Losses
1,747,611.95
Divestment during transition
Others 2,335,810.73 3,715,526.94
In total 55,322,100.43 59,703,587.21
32. Non-current liabilities due within one year
Item End balance Opening Balance
Long-term Loans due Within One Year 150,000,000.00
Lease Liability due Within One Year 22,741,185.39 1,432,706.14
Long-term Loans Interest due Within One
319,763.89
Year
Bond Interest Payable due Within One Year 2,880,000.00
Total 175,940,949.28 1,432,706.14
33. Other current liability
Item End balance Opening Balance
Value-added tax to be written off 45,928,019.48 55,982,706.18
Changes of the Fair Value of the
14,511,381.20 201,549.12
Hedged Item
Total 60,439,400.68 56,184,255.30
Notes to the Financial Statements
34. Long term borrowing
Item End balance Opening Balance
Debt of honour 400,000,000.00 500,284,166.67
Total 400,000,000.00 500,284,166.67
35. Bonds payable
(1) Bonds payable
Item Ending Balance Opening Balance
Corporate Bond 298,800,000.00
Total 298,800,000.00
Notes to the Financial Statements
(2) Bond payable situation (not including other financial instruments i.e. the Financial Liabilities preference shares perpetuities etc)
Opening The
Name of Bond Face Value Coupon rate(%) Release Date Bond Period Issuing Amount
Balance Issuance
23 Jingliang 01 Corporate Bond 300,000,000.00 2.88 21Aug-22 Aug 2023 3 years 300,000,000.00
Total ∕ ∕ ∕ ∕ 300,000,000.00
(Continued)
Interest accrued at Amortization of Repayment in the Whether in
Name of Bond Other Direct Fees Ending Balance
face value Premiums or Discounts Period default
23 Jingliang 01 Corporate
2,880,000.00 1,200,000.00 301,680,000.00
Bond
Total 2,880,000.00 1,200,000.00 301,680,000.00 ∕
Notes to the Financial Statements
36. Lease liability
Item End balance Opening Balance
Lease Payment 103,803,204.86 2,216,669.37
Less: unrecognized Financing Cost 7,820,276.90 79,572.25
Reclassified as non-current liabilities due within
22,741,185.39 1,432,706.14
One year
Net Lease Liabilities 73,241,742.57 704,390.98
37. Long term wage payable
Long-term wage payable presented
Items Balance at End of Period Balance at Beginning of Year
Other Long-term Welfare 5,677,134.00 5,677,134.00
In total 5,677,134.00 5,677,134.00
38. Deferred Income
Balance at Decrease in
Increase in the Balance at End Cause of
Items Beginning of the Current
Current Period of Period Formation
Year Period
Government
64,550,917.36 1,304,400.00 3,352,060.69 62,503,256.67
Subsidy
In total 64,550,917.36 1,304,400.00 3,352,060.69 62,503,256.67
Notes to the Financial Statements
Among them, items involving government subsidy are as follows:
Amount rolled
Balance at Increase in Refund Reasons
Items Receiving Charge to in non-operating Other Balance at End Asset related /
Beginning of the Current in this on
Subsidy other Profits income in the Changes of Period income related
Year Period Period Refund
current period.
Edible Oil
Renewable Clean
Production
Equipment and Oil 167,999.72 56,000.04 111,999.68 Assets related
Tank Electric
Heating System
Project
Grain & Oil
processing key
technology research
622,710.56 77,838.84 544,871.72 Assets related
and industrialization
project, forming
fixed assets
Information
monitoring 232,373.66 200,686.32 31,687.34 Assets related
equipment
Tianjin Binhai New
Zone
industrialized techn
ological
1,648,147.97 222,222.24 1,425,925.73 Assets related
transformationand
zone construction
fund and scientific
technology expenses
Enterprise
47,374,115.29 1,277,504.16 46,096,611.13 Assets related
foundation
Notes to the Financial Statements
Amount rolled
Balance at Increase in Refund Reasons
Items Receiving Charge to in non-operating Other Balance at End Asset related /
Beginning of the Current in this on
Subsidy other Profits income in the Changes of Period income related
Year Period Period Refund
current period.
supporting in the
construction stage of
"Tianjin Lingang
Industrial Zone
Management
Committee"
Subsidized by
Beijing Municipal
Food and Strategic
Reserves Bureau for 2,522,657.94 250,180.91 2,272,477.03 Assets related
"Tank Expansion and
Winterization
Renovation Project
The relocation
3,462,874.32 384,763.82 3,078,110.50 Assets related
compensation
Special subsidy for
infrastructure 8,520,037.90 1,304,400.00 851,177.02 8,973,260.88 Assets related
investment
In total 64,550,917.36 1,304,400.00 3,320,373.35 31,687.34 62,503,256.67 —— ——
Notes to the Financial Statements
39. Share Capital
Changes in the Current Period(+、-)
Balance at
Share Transfer Balance at End
Items Beginning of New Share Share
of Provident Others Sub-total of Period
Year Issue Donation
Fund
1. Shares with Restricted Conditions 41,159,887.00 -10,289,972.00 -10,289,972.00 30,869,915.00
(1) State Shareholding
(2) State-owned Legal-person Shareholding
(3) Other Domestic Capital Shareholding 41,159,887.00 -10,289,972.00 -10,289,972.00 30,869,915.00
Including: Domestic Legal-person
Shareholding
Domestic Natural Person Shareholding 41,159,887.00 -10,289,972.00 -10,289,972.00 30,869,915.00
(4) Foreign Shareholding
Including: Foreign Legal-person
Shareholding
Foreign Natural Person Shareholding
2. Tradable Shares without Restricted
685,790,364.00 10,289,972.00 10,289,972.00 696,080,336.00
Conditions
(1) RMB Ordinary Shares 620,815,364.00 10,289,972.00 10,289,972.00 631,105,336.00
(2) Domestically Listed Foreign Shares 64,975,000.00 64,975,000.00
(3) Listed Foreign Shares Overseas
(4) Others
In total 726,950,251.00 726,950,251.00
Notes to the Financial Statements
40. Capital Reserves
Balance at Beginning of Decrease in the
Items Increase in the Current Period Balance at End of Period
Year Current Period
Capital Premium (Stock Premium) 1,322,887,986.38 1,322,887,986.38
Capital Reserves Roll-in Under Original System 112,316,357.36 112,316,357.36
Other Capital Reserves 243,474,007.21 3,129,757.12 246,603,764.33
In total 1,678,678,350.95 3,129,757.12 1,681,808,108.07
41. Other Comprehensive Incomes
Amounts Occurred in the Current Period
Less: included in other Attributab
Balance at Amounts Less: Other Balance at
comprehensive income Less: Attributable le to
Items Beginning of Occurred Comprehensive Incomes End of
in the previous period Income to Parent Minority
Year before Income Charged at Earlier Stage Period
and transferred to Tax Company Sharehold
Tax in the and Current Roll-in
retained income in the Expense After Tax ers After
Current Period Profit and Loss
current period Tax
One Other comprehensive incomes
that won’t be classified into profit and
loss
Two Other comprehensive incomes
that will be classified into profit and 1,005,720.50 364,260.42 364,260.42 1,369,980.92
loss
Including；Converted difference
between foreign currency financial 1,005,720.50 364,260.42 364,260.42 1,369,980.92
statements
Total 1,005,720.50 364,260.42 364,260.42 1,369,980.92
Notes to the Financial Statements
42. Surplus Reserves
Decrease in
Balance at Increase in the Balance at End of
Items the Current
Beginning of Year Current Period Period
Period
Statutory Surplus
84,487,609.05 7,697,253.02 92,184,862.07
Reserves
Free Surplus
37,634,827.93 37,634,827.93
Reserves
In total 122,122,436.98 7,697,253.02 129,819,690.00
43. Undistributed Profit
Amounts in the Amounts in the
Items
Current Period Prior Period
Adjustment on undistributed profit at end of last year 532,904,675.62 391,493,534.34
Adjustment on total number of undistributed profit at
beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 532,904,675.62 391,493,534.34
Add: net profit attributable to parent company in the
102,348,088.85 141,411,141.28
current period
Less: withdrawal statutory surplus reserves 7,697,253.02
Undistributed profit at end of period 627,555,511.45 532,904,675.62
44. 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
11,844,929,514.32 11,501,631,237.44 12,814,528,584.23 12,224,032,469.41
Business
Other
56,079,697.31 49,171,830.07 43,345,717.49 13,538,869.90
Business
In total 11,901,009,211.63 11,550,803,067.51 12,857,874,301.72 12,237,571,339.31
(2) Operation revenue and operation cost presented
Contract Category Operation Revenue Operation Cost
Industry and Business-classified
Oil and Oil Seeds 10,909,755,649.64 10,787,126,093.80
Food 935,173,864.68 714,505,143.64
Notes to the Financial Statements
Contract Category Operation Revenue Operation Cost
Others 56,079,697.31 49,171,830.07
Region-classified
Including North China 7,583,746,566.94 7,527,901,048.81
East China 2,067,768,342.61 1,863,278,162.20
Northeast China 578,965,142.42 534,996,808.22
South East 446,348,295.62 430,387,752.47
South China 462,142,367.94 444,888,403.88
Southwest 666,177,336.48 661,874,710.24
Others 95,861,159.62 87,476,181.69
Time for the transfer of commodities classified
Revenue recognition at a given time 11,901,009,211.63 11,550,803,067.51
Sales channel-classified
including direct 5,347,742,492.82 5,129,822,894.48
Distribution 6,497,187,021.50 6,371,808,342.96
Others 56,079,697.31 49,171,830.07
In total 11,901,009,211.63 11,550,803,067.51
(3) Performance obligations explanation
Nature of Expecte Quality
the d refund assurance
Time of Importa Whether
commitment to the category
performan nt main
Item to transfer custome provided by
ce payment responsib
commoditie r by the the Company
obligations terms le person
s by the Compan and relevant
company y obligations
Processing, sales
Mainly sales
and trading of
Mainly of oil and
oil and Upon Statutory
payment oilsees, Yes No
oilseeds, as delivery guarantees
first snack
well as
food
foodstuffs
Note: Company and distributors adopt the payment first method, certain credit lines offered by the
company to partial distributors with long-term cooperation and good reputation. For settlement,
partial direct sale customers and supermarkets shall be proceeded on agreed payment terms in
accordance with the contract
(4) Amortization on remaining performance obligations explanation
Contract has been signed at end reporting period, however the corresponding amount is
Rmb456,904,778.71 for the outstanding obligations or obligations not yet complete fulfilled. The
revenue shall be recognized in 2024.
Notes to the Financial Statements
45. Tariff And Annex
Amounts in the Current Amounts in the Prior
Items
Period Period
Urban Maintenance and Construction
3,395,501.76 8,392,378.68
Tax
House Property tax 7,295,069.14 7,348,144.90
Land Use Tax 2,290,615.80 1,257,836.62
Educational Surtax 2,456,291.23 6,041,032.64
Vehicle and Vessel Use Tax 41,512.47 45,180.14
Environmental Protection Fees 30,843.03 25,928.59
Stamp Tax 7,421,881.18 7,306,545.73
Other Taxes and Fees 667.49 68,082.45
In total 22,932,382.10 30,485,129.75
46. Sales Expenses
Amounts in the Current Amounts in the Prior
Items
Period Period
Employee Compensation 64,636,913.79 74,865,384.05
Sales Promotion Expenses 18,442,554.57 15,397,370.72
Warehousing Fees 16,512,288.34 25,934,599.40
Depreciation 16,173,229.17 15,817,872.17
Sales Promotion Expenses 2,616,904.12 13,233,177.70
Material consumption, sample and
2,485,434.87 1,929,425.92
product cost
Repair Costs 2,090,173.34 1,987,578.98
Water and Electricity Fees 1,280,862.67 1,378,704.72
Lease fee 1,239,720.46 3,070,223.37
Insurance 445,587.43 289,252.25
Vehicle Fees 410,149.86 682,797.65
Packing Expenses 364,375.51 109,762.53
Terminal Charges 320,767.29 1,724,015.11
Travel Expenses 6,096,249.43 5,280,805.02
Test and Detection Fees 264,296.91 177,247.52
Labor Protection Fees 131,844.93 139,738.67
Business Entertainment Expenses 255,312.36 24,672.00
Notes to the Financial Statements
Amounts in the Current Amounts in the Prior
Items
Period Period
Others 933,621.22 1,888,072.26
Total 134,700,286.27 163,930,700.04
47. Administration Expenses
Amounts in the Current Amounts in the Prior
Items
Period Period
Employee Compensation 137,027,182.45 138,464,028.57
Impairment Costs 17,485,332.22 18,141,539.50
Amortization of Assets 14,787,451.81 15,771,966.91
Fees of Employing Agent 7,625,327.29 8,709,204.04
Repair Costs 6,467,541.44 3,334,959.13
Company Expenses 4,897,271.51 1,800,883.30
Lease fee 3,211,730.12 3,882,289.68
Vehicle Fees 2,184,227.98 2,145,027.56
Security Protection Fees 1,772,654.96 1,242,530.60
Amortization of long-term prepayments 1,610,265.81 18,228.54
Information Network Fees 1,423,703.10 1,229,220.31
Commercial Insurance Expenses Workers
1,407,380.46 1,959,088.81
Insurance Expense
Travel Expenses 1,198,460.18 513,023.38
Business Entertainment Expenses 942,076.90 1,257,895.61
Business Entertainment Expenses 934,893.63 665,034.02
Material Consumption 657,054.96 602,254.49
Company Expenses 609,846.94 5,777,472.22
Labor Protection Fees 413,741.50 468,689.86
Meeting Expenses 89,343.12 52,879.06
Taxes in Expenses 56,657.81 283,703.44
Other Expenses 9,172,060.90 3,286,845.39
In total 213,974,205.09 209,606,764.42
48. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Salary 10,986,790.95 9,938,209.22
Notes to the Financial Statements
Material fee 3,839,190.78 20,350.20
Material Consumption 2,565,948.18 3,195,077.96
Fuel and Power Fee 670,315.44 8,610.00
Depreciation and amortization 590,080.30 1,118.16
Design expense 566,037.74 566,037.72
Equipment Cost 105,418.94 258,395.57
Transportation Expense 103,961.21 14,999.80
Others 1,470,218.17 388,565.54
In total 20,897,961.71 14,391,364.17
49. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 62,101,542.12 46,001,727.19
Less: Interest Income 18,201,145.42 26,078,234.77
Service Charges 1,119,817.26 4,573,991.30
Exchange Loss 922,278.26 1,101,362.76
Less：Exchange Profit 2,424,915.08 -33,733.99
Others 2,348.54
In total 43,519,925.68 25,632,580.47
50. Other Profits
Items Amounts in the Current Period Amounts in the Prior Period
Government Subsidy 13,150,019.76 15,640,947.01
Return of Service Charges of
Withholding Individual Income 181,917.61 140,778.62
Tax
Others 840.00
In total 13,332,777.37 15,781,725.63
51. Investment Income
Amounts in the Amounts in the Prior
Items
Current Period Period
Long-term equity investment income accounted
11,368,728.43 12,293,636.95
with equity method
Notes to the Financial Statements
Investment income from disposal of wealth
3,987,862.90
management products
Investment income of disposing trading financial
211,777.70 751,411.16
assets
Investment income obtained during the holding of
374,460.84 267,083.33
transactional financial assets
Others -12,559.79 -9,059.80
In total 15,930,270.08 13,303,071.64
52. Profits on Changes in Fair Value
Source of generating income with changes in fair Amounts in the Amounts in the Prior
value Current Period Period
Trading Financial assets 228,219,839.09 61,032,222.12
Including: income with changes in fair value
228,219,839.09 61,032,222.12
generated by hedging instruments and hedged item
In total 228,219,839.09 61,032,222.12
53. Credit impairment loss
Amounts in the Current Amounts in the Prior
Items
Period Period
Accounts receivable bad debt loss -5,126,006.59 -2,012,156.44
Other receivables bad debt loss -1,779.74 7,500.00
Total -5,127,786.33 -2,004,656.44
54. Loss from Asset Devaluation
Amounts in the Amounts in the
Items
Current Period Prior Period
Loss on Bad Debts & Loss on Inventory Price Loss -29,004,360.66 -43,736,036.29
In total -29,004,360.66 -43,736,036.29
55. Assets Disposal Income
Amounts in the Current Amounts in the Prior
Items
Period Period
Gains or losses on disposal of fixed assets 50,283.79 466,027.43
In total 50,283.79 466,027.43
Notes to the Financial Statements
56. Non-operating Income
Amounts Charged
Amounts in the Amounts in the
Items to Non-recurring
Current Period Prior Period
Profit and Loss
Non current assets retirement gains: 16,682.16 2,057.52 16,682.16
Government subsidies related to
4,502.00
non-routines of enterprise
Fines/penalty income, late fee,
6,143,722.18 4,251,520.44 6,143,722.18
compensation
Payable amounts not required to be
251,522.70 487,200.03 251,522.70
paid
Waste disposal gains 119,317.42 119,317.42
Others 236,088.24 610,950.95 236,088.24
In total 6,767,332.70 5,356,230.94 6,767,332.70
57. Non-operating Expenses
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit and
Current Period Prior Period
Loss
Total loss on scrap of
318,231.18 114,754.83 318,231.18
non current assets
Public welfare donation 50,000.00 86,722.08 50,000.00
Penalty expenditure 3,438,439.46 105,996.54 3,438,439.46
Others 210,575.30 824,881.90 210,575.30
Total 4,017,245.94 1,132,355.35 4,017,245.94
58. 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 30,811,845.54 59,796,486.70
Deferred Income Tax Expenses 6,067,801.54 1,274,800.56
Total 36,879,647.08 61,071,287.26
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the
Items
Current Period
Total Profits 140,332,493.37
Notes to the Financial Statements
Amounts in the
Items
Current Period
Income tax expenses calculated by statutory/applicable tax rate 35,083,123.34
Effect of subsidiary corporations being applicable to different tax rates -742,229.61
Adjustment on effect of income tax in the prior period 880,903.85
Effect of Non-taxable Incomes -1,930,792.57
Effect of Non-deductible cost, expense and loss 170,669.41
Effect of deductible loss on usage of unconfirmed deferred income tax assets
-4,730,551.02
in the prior period
Effect of deductible temporary difference or deductible loss on unconfirmed
19,376,336.69
deferred income tax in the current period
Effect of Research expenses, disables weighted deduction -4,670,460.86
Effect of asset depreciation reserve write-off or reversal -218,861.12
Effect of non-taxable investment income -2,861,417.71
Effect of initial recognition of deferred tax assets refund 248,999.87
Effect of deductible temporary differences o not recognized for deferred
-5,181.05
income tax asset during the prior period
Policy move, fixed assets one-time depreciation -3,644,604.60
Others -76,287.54
Income Tax Expenses 36,879,647.08
59. Other comprehensive income items and their income tax impact and transferred to
profit and loss
See details of ‘Appendix V Notes on Items in Consolidated Financial Statements 41 Other
Comprehensive Incomes’
60. Notes to items related cash flow statement
(1) Cash related to operating activities
A. Receiving other cash related to operation activities
Amounts in the Current
Items Amounts in the Prior Period
Period
Intercourse Funds of Related
26,969,822.02 3,821,301.49
Parties
Deposit security 2,178,381,623.73 1,820,481,225.64
Intercourse Funds of Other Units 89,136,407.24 534,241,370.31
Interest Income 13,316,019.01 26,078,234.77
Non-operating Income and other 6,418,418.92 10,776,175.29
Notes to the Financial Statements
Amounts in the Current
Items Amounts in the Prior Period
Period
income
Others 3,658,424.57 2,634,069.26
Total 2,317,880,715.49 2,398,032,376.76
B. Other Cash Payment Related to Operation Activities
Items Amounts in the Current Period Amounts in the Prior Period
Expenses 104,347,063.80 101,066,087.88
Intercourse Funds of Other Units 57,986,662.42 738,586,568.78
Intercourse Funds of Related
11,939,808.97 3,542,441.19
Parties
Petty Cash Paid 138,317.53
Deposit security 2,180,753,383.10 2,497,012,200.80
Others 8,111,618.56 7,399,437.03
In total 2,363,276,854.38 3,347,606,735.68
(2) Cash related to investment activities
Other cash payment related to investment activities
Amounts in the Amounts in the
Items
Current Period Prior Period
Hebei Grease & Oil Cash and cash equivalents 9,772,907.10
In total 9,772,907.10
(3) Cash related to financing activities
A. 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
3,090,000.00 2,760,000.00
Agriculture Group
In total 3,090,000.00 2,760,000.00
B. Other cash paid related to financing activities
Items Amounts in the Current Period Amounts in the Prior Period
Lease payment amount 29,652,976.62 1,238,815.56
In total 29,652,976.62 1,238,815.56
Notes to the Financial Statements
C. Various liability change situation From Financing Activities
Increase in this period Decrease in this period
Item Beginning Balance Ending Balance
Cash Movement Non-cash Movement Cash Movement Non-cash Movement
Short-term
1,260,543,148.81 2,440,722,851.78 44,637,869.17 2,334,699,934.09 247,724,244.00 1,163,479,691.67
borrowing
Long-term
500,284,166.67 122,625,124.00 16,351,578.29 66,315,981.07 22,625,124.00 550,319,763.89
borrowing
Bond Payable 298,650,000.00 3,030,000.00 301,680,000.00
Lease Liability 2,137,097.12 121,066,634.33 27,220,803.49 95,982,927.96
Total 1,762,964,412.60 2,861,997,975.78 185,086,081.79 2,428,236,718.65 270,349,368.00 2,111,462,383.52
Note: amount presented above includes that of reclassification to non-current liabilities due in one year
Notes to the Financial Statements
61. 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 103,452,846.29 164,251,365.98
Add: Assets Impairment Reserves 29,004,360.66 43,736,036.29
Credit impairment loss 5,127,786.33 2,004,656.44
Fixed Assets Depreciation, Oil-and-gas Assets
Depreciation and Productive Biological Assets 95,114,999.37 100,395,996.41
Depreciation
Right-of-use assets depreciation 24,780,097.22 1,596,901.59
Amortization of Intangible Assets 14,871,472.21 14,949,175.38
Amortization of Long-term Deferred Expenses 1,646,475.12 1,574,060.61
Losses on Disposal of Fixed Assets, Intangible
Assets and Other Long-term Assets (Fill in profit with -50,283.79 -311,079.19
symbol “－”)
Losses on Retirement of Fixed Assets (Fill in profit
301,549.02 112,697.31
with symbol “－”)
Losses on Changes in Fair Value (Fill in profit with
-228,219,839.09 -61,032,222.12
symbol “－”)
Financial Expenses (Fill in profit with symbol “－”) 64,730,900.89 46,001,727.19
Investment Losses (Fill in profit with symbol “－”) -15,930,270.08 -13,303,071.64
Decrease in Deferred Income Tax Assets (Fill in
5,390,848.71 -618,700.74
increase with symbol “－”)
Increase in Deferred Income Tax Reliabilities (Fill in
676,952.83 1,154,250.79
decrease with symbol “－”)
Decrease in Inventory (Fill in increase with symbol
-253,552,786.31 -214,308,147.68
“－”)
Decrease in Items of Operating Receivables (Fill in
368,727,261.20 -261,629,758.95
increase with symbol “－”)
Increase in Items of Operating Receivables (Fill in
-106,585,415.84 -357,804,834.70
decrease with symbol “－”)
Net Cash Flows from Operating Activities 109,486,954.74 -533,230,947.03
2. Major investment and financing activities that do
—— ——
not involve cash payments
3. Net change conditions in cash and cash equivalents —— ——
Cash balance at end of period 1,540,639,079.95 551,439,110.07
Less: cash balance at beginning of period 551,439,110.07 506,928,810.69
Cash and cash equivalent net increase 989,199,969.88 44,510,299.38
Notes to the Financial Statements
(2) Net cash received from disposal of subsidiaries
Item Amount
Cash and cash equivalents received from disposal of subsidiaries in the current
period.
Less: Cash and cash equivalents held by subsidiaries on the date of loss of control 9,772,907.10
Including: Jingliang (Hebei) Grease Industry Co., Ltd. 9,772,907.10
Add: Cash or cash equivalents received in the current period for disposal of
subsidiaries in prior periods.
Net cash received for disposal of subsidiaries -9,772,907.10
(3) Composition of cash and cash equivalents
Balance at
Balance at End
Items Beginning of
of Period
Period
One. Cash 1,540,639,079.95 551,439,110.07
Including: cash in stock 9,949.26 10,693.10
Bank deposit available for payment at any time 1,423,321,137.06 531,515,415.66
Other currency funds available for payment at any time 117,307,993.63 19,913,001.31
Two. Cash Equivalents
Three .Balance of Cash and Cash Equivalents at End of
1,540,639,079.95 551,439,110.07
Period
62. Monetary Items of Foreign Currency
Monetary Items of Foreign Currency
Balance of Foreign Currency Exchange Balance of Converting
Items
at End of Period Rate Convert to RMB at End of Period
Monetary fund —— —— 132,735,270.36
Including: US Dollars 18,740,772.64 7.0827 132,735,270.36
Other receivables —— —— 60,753,187.26
Including: US Dollars 8,577,687.50 7.0827 60,753,187.26
63. Lease
(1) As Lessee
Item Amount
Interest cost on the lease liability 4,021,828.22
Short-term lease expenses for simplified processing of related asset
1,191,590.32
costs or profit or loss in the current period
Total Cash Outflow related to lease 30,083,699.70
Notes to the Financial Statements
(2) As Lessor
Operating lease as lessor
Including: Income related to variable lease
Item Leasehold income
payments not included in lease income
Leasehold income 1,669,556.10
Total 1,669,556.10
VI Research and Development Expenses
Disclosed by nature of expenses
Amount in current
Item Amount in prior period
period
Salary 10,986,790.95 9,938,209.22
Material expense 3,839,190.78 20,350.20
Material consumption 2,565,948.18 3,195,077.96
Fuel & Power expenses 670,315.44 8,610.00
Depreciation and Amortization Fee 590,080.30 1,118.16
Design Fee 566,037.74 566,037.72
Equipment cost 105,418.94 258,395.57
Travel expense 103,961.21 14,999.80
Others 1,470,218.17 388,565.54
Total 20,897,961.71 14,391,364.17
Including: R&D expenditure 20,897,961.71 14,391,364.17
Capitalized R&D expenditure
VII Change in Consolidation Scope
During this reporting period, the company newly invested and established Jingliang
(Yangpu) Grease & Oil Co., Ltd., and cancelled Jingliang (Hebei) Grain & Oil Industry Co.,
Ltd.,. A total of 18 subsidiaries of the Company were included in the scope of consolidation on
31 December, 2023
Notes to the Financial Statements
VIII Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Principle Place Registered Capital(In Registered Shareholding Ratio (%) Mode of
Name of Subsidiary Nature of Business
of Business ten thousands Yuan) Place Direct Indirect Acquisition
Agricultural
Jingliang (Tianjin) Grain and Oil Merger under
Tianjin 56,000.00 Tianjin Product and By 70.00
Industry Co., Ltd. the same control
Product Processing
Beijing Jingliang Oil and Fat Co., Merger under
Beijing 5,000.00 Beijing Grain and oil trade 100.00
Ltd. the same control
Beijing Guchuan Edible Oil Co., Merger under
Beijing 12,558.46 Beijing Grain and oil trade 100.00
Ltd. the same control
Agricultural
Merger under
Beijing Eisen-Lubao Oil Co., Ltd. Beijing 5,050.00 Beijing Product and By 100.00
the same control
Product Processing
Beijing Tianweikang Oil Merger under
Beijing 500.00 Beijing Warehousing 100.00
Distribution Center Co., Ltd. the same control
Beijing Guchuan Bread Food Co., Merger under
Beijing 5,550.00 Beijing Food Processing 100.00
Ltd. the same control
Combination not
Zhejiang Xiao Wang Zi Food Co.,
Hangzhou 5,156.00 Hangzhou Food Processing 17.6794 77.2072 under same
Ltd.
control
Hangzhou Lin'an Xiaotianshi Food
Hangzhou 4,900.00 Hangzhou Food Processing 17.6794 77.2072 ditto
Co., Ltd.
Notes to the Financial Statements
Principle Place Registered Capital(In Registered Shareholding Ratio (%) Mode of
Name of Subsidiary Nature of Business
of Business ten thousands Yuan) Place Direct Indirect Acquisition
Liaoning Xiao Wang Zi Food Co.,
Liaoning 3,000.00 Liaoning Food Processing 17.6794 77.2072 ditto
Ltd.
Linqing Xiao Wang Zi Food Co.,
Linqing 2,132.50 Linqing Food Processing 17.6794 77.2072 ditto
Ltd.
Lin'an Chunmanyuan Agricultural
Hangzhou 600.00 Hangzhou Food Processing 17.6794 77.2072 ditto
Development Co., Ltd.
Jingliang (Singapore) International Invest in the
Singapore 643.35 Singapore Grain trade 100.00
Trade Co., Ltd. establishment
Beijing jingliang gubi oil and Invest in the
Beijing 5,000.00 Beijing Grain and oil trade 100.00
grease co. LTD establishment
Jingliang (Hebei) Grain & Oil Agricultural Merger under
Hebei 6,500.00 Hebei 51.00
Industry Co., Ltd. products the same control
Investment Merger under
Beijing Jingliang Food Co., Ltd. Beijing 134,144.76 Beijing 100.00
management the same control
Jingliang (Caofeidian) Agricultural Invest in the
Tangshan 5,000.00 Tangshan Plantation 51.00
Development Co., Ltd. establishment
Jingliang (Yueyang) Grain and Oil Agricultural Invest in the
Hunan 68,000.00 Hunan 65.00
Industry Co., Ltd. products establishment
Jingliang (Beijing) Food Marketing Commercial Invest in the
Beijing 800.00 Beijing 100.00
Management Co., Ltd services establishment
Agricultural
Jingliang (Yangpu) Grain and Oil Invest in the
Hainan 50,000.00 Hainan Product and By 65.00
Industry Co., Ltd. establishment
Product Processing
Notes to the Financial Statements
Note: Beijing Grain & Oil Co., Ltd. has withdrawed the capital from Jingliang (Hebei) Grain & Oil Industry Co., Ltd l during this reporting period.
(2) Major non-wholly-owned subsidiaries
Shareholding Ratio Profit And Loss Attributable to Dividends Distributed to Minority Balance of Minority
Name of Subsidiary of Minority Minority Shareholders for the Shareholders for the Current Shareholder's Equity at the
Shareholders (%) Current Period Period End of the Period
Jingliang (Tianjin) Grain and Oil
30.00% -1,483,442.04 62,985,200.00 222,266,423.70
Industry Co., Ltd.
Zhejiang Xiao Wang Zi Food Co., Ltd. 5.11% 21,115,388.05 45,585,600.00 198,129,283.97
(3) Important financial information on major non-wholly-owned subsidiaries
Closing Balance
Name of Subsidiary Non-current Non-current
Current Assets Total Assets Current Liabilities Total Liabilities
Assets Liabilities
Jingliang (Tianjin) Grain and Oil
1,690,703,873.13 715,120,631.78 2,405,824,504.91 1,401,536,126.49 263,400,299.40 1,664,936,425.89
Industry Co., Ltd.
Zhejiang Xiao Wang Zi Food Co.,
556,236,641.71 333,141,896.19 889,378,537.90 103,727,129.38 17,728,505.38 121,455,634 .76
Ltd.
(Continued)
Name of Subsidiary Opening Balance
Notes to the Financial Statements
Non-current Non-current
Current Assets Total Assets Current Liabilities Total Liabilities
Assets Liabilities
Jingliang (Tianjin) Grain and Oil
1,765,160,961.33 729,047,006.26 2,494,207,967.59 1,184,852,881.71 362,661,433.41 1,547,514,315.12
Industry Co., Ltd.
Zhejiang Xiao Wang Zi Food Co.,
694,319,525.47 344,517,064.82 1,038,836,590.29 154,188,477.46 17,660,046.22 171,848,523.68
Ltd.
(Continued)
Amount incurred in the current period
Name of Subsidiary Total Comprehensive Cash Flow from Operating
Operating Income Net Profit
Income Activities
Jingliang (Tianjin) Grain and Oil Industry Co.,
5,567,060,384.67 9,084,326.55 9,084,326.55 341,687,731.49
Ltd.
Zhejiang Xiao Wang Zi Food Co., Ltd. 801,501,276.72 100,934,836.53 100,934,836.53 47,904,799.55
(Continued)
Amount incurred in the prior period
Name of Subsidiary Total Comprehensive Cash Flow from Operating
Operating Income Net Profit
Income Activities
Jingliang (Tianjin) Grain and Oil Industry Co.,
6,622,948,465.03 57,992,070.30 57,992,070.30 -838,336,853.05
Ltd.
Zhejiang Xiao Wang Zi Food Co., Ltd. 856,340,284.62 102,525,949.60 102,525,949.60 17,184,906.38
Notes to the Financial Statements
2. Equity in Joint Ventures or Affiliates
(1). Important Joint Ventures or Affiliates
Shareholding Accounting
Ratio (%) Treatment
Name of Joint Principle
Registered Nature of Methods for
Venture or Place of
Place Business Investment in
Affiliate Business Direct Indirect
Joint Ventures
or Affiliates
Beijing Zhengda
Beijing Beijing Manufacturer 50.00 Equity method
Feed Co., Ltd.
SINOGRAIN
Transportation
(Tianjin)
Tianjin Tianjin and 30.00 Equity method
Warehousing
warehousing
Logistics Co., Ltd.
Jingliang Missme
Catering
Beijing Beijing Manufacturer 48.00 Equity method
Management
(Beijing) Co., Ltd.
(2). Important financial information on major joint ventures
Closing Balance/Current Opening Balance/Last
Amount Term Amount
Item
Beijing Zhengda Feed Beijing Zhengda Feed
Co., Ltd. Co., Ltd.
Current assets 319,779,538.52 301,420,356.94
Including: cash and cash equivalents 12,804,613.72 21,778,758.99
Non-current assets 19,900,378.39 21,331,443.39
Total assets 339,679,916.91 322,751,800.33
Current liabilities 58,198,209.39 75,869,110.91
Non-current liabilities 24,694,621.01 4,593,536.23
Total liabilities 82,892,830.40 80,462,647.14
Minority shareholder's equity
Shareholders' equity attributable to the
256,787,086.51 242,289,153.19
parent company
Share of net assets based on
128,393,543.26 121,144,576.60
shareholding ratio
Book value of equity investment in 128,393,543.26 121,144,576.60
Notes to the Financial Statements
Closing Balance/Current Opening Balance/Last
Amount Term Amount
Item
Beijing Zhengda Feed Beijing Zhengda Feed
Co., Ltd. Co., Ltd.
joint ventures
Operating income 333,814,764.22 333,958,015.25
Financial costs -8,260,978.56 -6,897,167.49
Income tax expense 4,783,324.60 8,234,800.46
Net profit 13,840,755.05 24,398,297.21
Dividends received from joint ventures
13,840,755.05 24,398,297.21
in the current period
(3) Important financial information on major affiliates
Closing Balance/Current Opening Balance/Last Term
Amount Amount
Item SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co., Warehousing Logistics Co.,
Ltd. Ltd.
Current assets 59,019,697.43 122,303,388.75
Non-current assets 886,062,609.97 816,481,284.48
Total assets 945,082,307.40 938,784,673.23
Current liabilities 33,964,613.24 110,559,868.69
Non-current liabilities 506,182,569.64 438,856,701.56
Total liabilities 540,147,182.88 549,416,570.25
Minority shareholder's equity
Shareholders' equity
attributable to the parent 404,935,124.52 389,368,102.98
company
Share of net assets based on
121,480,537.36 116,810,430.89
shareholding ratio
Adjustments
Book value of equity
121,480,537.36 116,810,430.89
investment in affiliates
Fair value of equity
investment in affiliates with
open offers
Operating income 48,403,561.21 73,584,532.63
Net profit 15,567,021.54 12,040,220.56
Notes to the Financial Statements
Closing Balance/Current Opening Balance/Last Term
Amount Amount
Item SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co., Warehousing Logistics Co.,
Ltd. Ltd.
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 15,567,021.54 12,040,220.56
Dividends received from
affiliates in the current period
(4) Non-important aggregated financial information on affiliates
Closing Opening
Item Balance/Current Balance/Last Term
Amount Amount
Associated enterprises：Jingliang Missme
Catering Management (Beijing) Co., Ltd.
Total of Investment Book Value 6,352,166.62 6,441,668.82
Items calculated according to shareholding ratio
-- Net profit -89,502.20 -446,589.18
-- Other comprehensive income
-- Total comprehensive income -89,502.20 -446,589.18
IX Government Subsidies
Government subsidy included in current profit or loss
Item Current Amount Last Term Amount
VAT refunds 7,349,068.91 8,038,527.08
Supporting subsidy during the establishment phase for
1,277,504.16 1,277,504.16
Tianjin Lingang Industrial zone management committee
Special subsidy for infrastructure input 767,281.55 867,756.91
Increase 8000 ton Corn food production line technical
470,000.00
innovation project subsidy fund
Imported soybean financial subsidies 400,000.00
Compensation for demolition and relocation 384,763.82 384,763.82
The disabled employment subsidy 295,659.73 421,287.35
Development zone extension supporting bonus 261,643.00
Notes to the Financial Statements
Item Current Amount Last Term Amount
Beijing Municipal Food and Material Reserve Bureau
"Oil Tank Expansion and Winter Transformation Project" 250,180.91 104,242.06
subsidy fund
Subsidy for job stabilization 229,425.94 720,380.96
Tianjin Binhai New Area industrial technological
transformation and park construction funds and science 222,222.24 222,222.24
and technology expenditure
informationization monitoring equipment 200,686.32 200,686.32
Tieling Mayor qualification bonus 200,000.00
Industrial Reunification zone policy subsidy in 2023 150,000.00
2021-2022 Urban land use tax refund 101,200.00
Tianjin Port Free Trade Zone Development and Reform
100,000.00 672,000.00
Bureau Intelligent Manufacturing Special Fund
Provide work subsidy 267,000.00
Linan Economic information Bureau Technical
840,000.00
Innovation subsidy
included demobilized soldiers employment VAT
162,000.00
deduction
One-off training allowance for workers 678,600.00
Bureau of economy and information technology water
150,000.00
balance project subsidy
Lin 'an employment management unemployment
405,125.43
compensation
Others 490,383.18 228,850.68
In total 13,150,019.76 15,640,947.01
X Risks Related to Financial Instruments
1. 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.
Notes to the Financial Statements
(1)Classification of financial instruments
① Book value of various financial assets on the balance sheet date
A. December 31, 2023
Financial assets Financial assets measured at fair Financial assets measured at fair
Financial asset items measured at amortized value and the changes recorded in value and the changes recorded in Total
cost current profits and losses other comprehensive income
Monetary funds 1,543,385,751.86 1,543,385,751.86
Derivative financial assets 31,684,620.00 31,684,620.00
Accounts receivables 115,780,372.55 115,780,372.55
Accounts receivable financing 2,502,308.90 2,502,308.90
Other receivables 303,099,589.59 303,099,589.59
Investment in other equity
20,000,000.00 20,000,000.00
instruments
non-current assets due within
22,188,083.34 22,188,083.34
one-year
Other current assets 238,358,924.24 238,358,924.24
Other non-current assets 10,390,000.00 10,390,000.00
B. December 31, 2022
Notes to the Financial Statements
Financial assets measured at fair Financial assets measured at fair value
Financial assets measured at
Financial asset items value and the changes recorded in and the changes recorded in other Total
amortized cost
current profits and losses comprehensive income
Monetary funds 561,013,109.76 561,013,109.76
Transactional financial
11,005,983.98 11,005,983.98
assets
Derivative financial assets 201,549.12 201,549.12
Accounts receivables 77,057,446.86 77,057,446.86
Other receivables 444,523,698.48 444,523,698.48
Investment in other equity
20,000,000.00 20,000,000.00
instruments
Non-current assets due
148,387,894.16 148,387,894.16
within 1 year
Other current assets 405,999,000.00 165,881,137.81 571,880,137.81
Other non-current assets 53,544,782.34 53,544,782.34
② Book value of various financial liabilities on the balance sheet date
A. December 31, 2023
Financial liabilities measured at fair value and
Financial liability items Other financial liability Total
changes included in current profits and losses
Short term loans 1,163,479,691.67 1,163,479,691.67
Derivative financial liability 15,805,393.88 15,805,393.88
Notes payable 82,474,823.84 82,474,823.84
Notes to the Financial Statements
Financial liabilities measured at fair value and
Financial liability items Other financial liability Total
changes included in current profits and losses
Accounts payable 79,618,198.78 79,618,198.78
Other Payables 400,000,000.00 400,000,000.00
Long term loans 298,800,000.00 298,800,000.00
Non-current liability due within one year 153,199,763.89 153,199,763.89
B. December 31, 2022
Financial liabilities measured at fair value and
Financial liability items Other financial liability Total
changes included in current profits and losses
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 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
Notes to the Financial Statements
(2) Credit Risk
On December 31, 2023, 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, 2023
Item One To Five Above
Within One Year Total
Years Five Years
Short term loans 1,163,479,691.67 1,163,479,691.67
Derivative financial
15,805,393.88 15,805,393.88
liability
Accounts payable 82,474,823.84 82,474,823.84
Notes to the Financial Statements
December 31, 2023
Item One To Five Above
Within One Year Total
Years Five Years
Other Payables 79,618,198.78 79,618,198.78
Long-term Borrowing 400,000,000.00 400,000,000.00
Notes payable 298,800,000.00 298,800,000.00
Non-current liability
153,199,763.89 153,199,763.89
due within one year
(Continued)
December 31, 2022
Item
One To Five Above Five
Within One Year Total
Years Years
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
Accounts payable 106,405,184.62 4,506,692.59 110,911,877.21
(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.
A. 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, 2023, the Company's interest-bearing liabilities under floating rate
contracts denominated in RMB amounted to RMB550,000,000.00 and those under fixed rate
contracts denominated in RMB amounted to RMB 1,462,279,691.67.
B. Exchange Rate Risk
Notes to the Financial Statements
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, 2023, 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 Closing Balance Opening Balance
Monetary funds 132,735,270.36 26,078,226.16
Other Payable 60,753,187.26
Short-term borrowing 208,938,000.00
The company adopts sensitivity analysis technology to analyze the possible impact of
reasonable and possible changes of risk variables on current profit and loss or owner's equity. As
any risk variable rarely changes in isolation, and the correlation between variables will have a
significant effect on the final impact amount of a risk variable change, the following content is
carried out under the assumption that the change of each variable is independent.
On the assumption that foreign currency assets and foreign currency liabilities remain
relatively stable and other variables remain unchanged, the after-tax impact of possible
reasonable changes in exchange rate on current profits and losses and rights and interests is as
follows:
Current period
Item [US dollar] Gross profit/net Increase/(decrease)
Exchange rate profit increase in shareholders'
Increase /(decrease) /(decrease) equity
The RMB yuan depreciated
5% 9,674,422.88 9,674,422.88
against the US dollar
The RMB yuan appreciated
-5% -9,674,422.88 -9,674,422.88
against the US dollar
(Continued)
Notes to the Financial Statements
Prior period
Item [US dollar] Exchange Gross profit/net Increase/(decrease)
rate Increase / profit increase in shareholders'
(decrease) /(decrease) equity
The RMB yuan
depreciated against the US 5% -9,142,988.69 -9,142,988.69
dollar
The RMB yuan
appreciated against the US -5% 9,142,988.69 9,142,988.69
dollar
Notes to the Financial Statements
2. Hedging
(1) The Company undertake risk management through hedging operation
Expected
Effects of risk
Corresponding risk The economic relationship between the effective
Qualitative and quantitative exposure from the
Item management strategy and hedged project & relevant hedged achievement of
information on hedged risk relevant hedged
target instruments risk management
activities
objectives
Using the hedging function Expected Fair value or cash flow due
Qualitative: non-credit risk,
of futures instruments to to the hedged risk of hedged project The target of
including basis risk, substitute
carry out hedging business, and relevant hedging instruments move expected risk
Grease & risk, supply-demand risk etc. Effectively avoid
effectively avoid the risk of in opposite direction management has
Oil/Oilseed Quantitative: market price risk exposure
market price fluctuations, in By the Changes with the same base been basically
fluctuation for the hedged
order to achieve stable variable or similar base variable that is achieved
project and instruments
management economically relevant
Notes to the Financial Statements
(2) The company conducts eligible hedging business and applies hedging accounting
Basis for adopting hedge accounting, including an itemized explanation of all hedged items
under the fair value hedge, cash flow hedge, and the hedge of net investment in an overseas
operation, as well as the corresponding hedging instruments, the risks to be hedged, the
accounting period in which such hedging relationship is specified, the standards for determining
the effectiveness of hedge, etc. The hedge accounting treatment methods shall be specified.
Hedging Adjustments
on book value of Effect of
Book value Hedging
hedged item which hedging
related to the validity and
has been recognized, accounting on
Item hedged Item sources of
in which comprises of the company's
and hedging
hedged item financial
instruments invalidity aspect
accumulated fair statements
value
Hedging Risk Type
Risk to changes
Effective
in the fair value 223,847,543.04 223,847,543.04 63,432,818.33
Hedging
of hedging
Hedging Type
Fair value Effective
15,879,226.12 15,879,226.12 63,432,818.33
hedging Hedging
XI 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
Second
First Level Third Level
Item Level Fair
Fair Value Fair Value Total
Value
Measurement Measurement
Measurement
One. Continuous fair value
measurement
Ⅰ. Transactional financial assets 31,684,620.00 31,684,620.00
1. Financial assets that are
measured at fair value and
31,684,620.00 31,684,620.00
whose changes are included in
the current profits and losses
(1) Investment in debt
instruments
Notes to the Financial Statements
Fair Values at the End of the Period
Second
First Level Third Level
Item Level Fair
Fair Value Fair Value Total
Value
Measurement Measurement
Measurement
(2) Investment in equity
instruments
(3) Derivative financial assets 31,684,620.00 31,684,620.00
2. Financial assets designated
as fair value through profit or
loss
(1) Investment in debt
instruments
(2) Investment in equity
instruments
(3) Others
Ⅱ. Other debt investment
Ⅲ. Investment in other equity
20,000,000.00 20,000,000.00
instruments
Total assets continuously
31,684,620.00 20,000,000.00 51,684,620.00
measured at fair value
Ⅵ.Transactional financial
15,805,393.88 15,805,393.88
liabilities
1. Financial liabilities
measured at fair value with
15,805,393.88 15,805,393.88
changes included in current
profits and losses
Including: transactional bonds
issued
derivative financial
15,805,393.88 15,805,393.88
liability
others
2. Financial liabilities
designated as fair value
through profit or loss
Total liabilities continuously
15,805,393.88 15,805,393.88
measured at fair value
2. Basis for determining market prices of continuous and non-continuous first level fair
value measurement items
Notes to the Financial Statements
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.
XII Related Parties and Related Party Transactions
1. Parent Company of the Company
Proportion of
Proportion of
Registered Voting Power
Name of Shares Held by
Registered Nature of Capital Held by Parent
Parent Parent
Place Business (ten thousand Company in
Company Company in the
Yuan) the Company
Company (%)
(%)
Beijing Grain
Investment
Group Co. Beijing 90,000.00 39.68 39.68
Management
Ltd.
Note: The ultimate controlling party is Beijing State-owned Capital Operation Management
Co.,Ltd.
2. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.。
3. Joint Ventures and Affiliates of the Company
See 2. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.
4. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Sugar Cigarette And Wine Group Co.,Ltd. Controlled by the ultimate controlling
Sugar Management Branch party
Notes to the Financial Statements
Name of Other Related Party Relationship with the Company
Controlled by the ultimate controlling
Beijing Ershang Group Co., Ltd
party
Controlled by the ultimate controlling
Beijing Guchuan Food Co., Ltd.
party
Controlled by the ultimate controlling
Shandong Fukuan Bioengineering Co., Ltd
party
Beijing Jingliang Dongfang Grain and Oil Trading Controlled by the ultimate controlling
Co., Ltd. party
Controlled by the ultimate controlling
Beijing Food Group Co;, Ltd.
party
Controlled by the ultimate controlling
Beijing Shounong Development Co.,Ltd.
party
Controlled by the ultimate controlling
Beijing Huayu Food Co., Ltd
party
Controlled by the ultimate controlling
Shanghai Shounong Investment Holdings Co., Ltd
party
Beijing Centennial Liyuan Ecological Agriculture Controlled by the ultimate controlling
Co., Ltd party
Controlled by the ultimate controlling
Beijing Changyang Farming Co., Ltd.
party
Beijing Southern Rural Agricultural Production and Controlled by the ultimate controlling
Operation Management Co., Ltd. party
Controlled by the ultimate controlling
Beijing Sanyuan Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Ailai Faxi Food Co., Ltd
party
Beijing Jingtang Shengshi Meili Hua Trading Co., Controlled by the ultimate controlling
Ltd. party
Controlled by the ultimate controlling
Beijing Beishui Yongxing Product Sales Co.,Ltd.
party
Controlled by the ultimate controlling
Beijing Ershang Jinghua Tea Industry Co., Ltd.
party
Controlled by the ultimate controlling
Beijing Liubiju Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Ershang Moqi Zhonghong Food Co., Ltd.
party
Controlled by the ultimate controlling
Beijing Vegetable Co., Ltd.
party
Controlled by the ultimate controlling
Beijing Yueshengzhai Qingzhen Food Co., Ltd.
party
Beijing Yanxi Yueshengzhai Qingzhen Food Co., Controlled by the ultimate controlling
Ltd. party
Notes to the Financial Statements
Name of Other Related Party Relationship with the Company
Beijing Ershang Dahongmen Five Meat Union Food Controlled by the ultimate controlling
Co. Ltd party
Beijing Ershang Muxiangyuan Qingzhen Meat Food Controlled by the ultimate controlling
Co. Ltd. party
Beijing Shounong Dian to Net Commercial Chain Controlled by the ultimate controlling
Co., Ltd party
Controlled by the ultimate controlling
Beijing Ancient Ship Rice Industry Co., Ltd
party
Beijing Shuangtong Huihe Agricultural Science and Controlled by the ultimate controlling
Technology Development Co., Ltd party
Beijing Heiliu Animal Husbandry Technology Co., Controlled by the ultimate controlling
Ltd party
Beijing Heiliu Animal Husbandry Technology Co., Controlled by the ultimate controlling
Ltd Food Centre party
Heilongjiang Gannan Shuanghe Rice Industry Co. Controlled by the ultimate controlling
Ltd. party
Controlled by the ultimate controlling
Beijing Huadu Sales Co. Ltd.
party
Controlled by the ultimate controlling
Beijing Shounong Grain Reserve Co., Ltd
party
Beijing Food Supply Department No. 34 Supply Controlled by the ultimate controlling
Department Co., Ltd party
Beijing Wuhuan Shuntong Supply Chain Controlled by the ultimate controlling
Management Co., Ltd party
Controlled by the ultimate controlling
Beijing Shounong Commercial Chain Co., Ltd
party
Controlled by the ultimate controlling
Hebei Anping Dahongmen Food Co., Ltd.
party
Controlled by the ultimate controlling
Kaifeng Dahongmmen Meat Food Co., Ltd.
party
Controlled by the ultimate controlling
Beijing Jingliang Biotechnology Group Co., Ltd
party
Controlled by the ultimate controlling
Beijing Xing Fashion Trading Co., Ltd
party
Controlled by the ultimate controlling
Beijing Shounong Food Group Co., Ltd
party
Controlled by the ultimate controlling
Hebei Luanping Huadu Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Cailanzi Group Co., Ltd
party
Controlled by the ultimate controlling
Beijing Shoucheng Shanshui Real Estate Co., Ltd
party
Notes to the Financial Statements
Name of Other Related Party Relationship with the Company
Controlled by the ultimate controlling
Beijing Baijiayi Food Co., Ltd
party
Controlled by the ultimate controlling
Hebei Sanyuan Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Beifang Jingtang Yangjiu Sales Co. , Ltd.
party
Controlled by the ultimate controlling
Beijing Haiyunxing shuichan Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Liubiju Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Lanfeng Vegetable Distribution Co., Ltd
party
Controlled by the ultimate controlling
Tianjin Xincheng Kangda Pharmaceutical Co., Ltd
party
Controlled by the ultimate controlling
Beijing Jingliang Taiyu Real Estate Co., Ltd
party
Controlled by the ultimate controlling
Beijing Grain Science Research Institute Co., Ltd
party
Controlled by the ultimate controlling
Beijing Zhangxin Grain Reserve Co., Ltd
party
Beijing Haidian West Suburb Grain and Oil Supply Controlled by the ultimate controlling
Station Co., Ltd party
Beijing Jingmen Lianshi Asset Operation Controlled by the ultimate controlling
Management Co. Ltd. party
Beijing Sanjiadian Grain Collection and Storage Co., Controlled by the ultimate controlling
Ltd party
Beijing Jingdu Jinggu Grain Purchase and Sales Co., Controlled by the ultimate controlling
Ltd. party
Controlled by the ultimate controlling
Beijing Taoshan Grain Reserve Co., Ltd
party
Beijing Longqing Xiadu Military Food Supply Co., Controlled by the ultimate controlling
Ltd party
Controlled by the ultimate controlling
Beijing Shounong Food Group Finance Co., Ltd
party
Controlled by the ultimate controlling
Beijing Shenghua Sihe Asset Management Co., Ltd
party
Controlled by the ultimate controlling
Beijing Desheng Hotel Co., Ltd
party
Beijing Shounong Consumption Poverty Alleviation Controlled by the ultimate controlling
and Innovation Center Co., Ltd party
Beijing Shounong Commercial Chain Co., Ltd. Controlled by the ultimate controlling
Yanqing Branch party
Notes to the Financial Statements
Name of Other Related Party Relationship with the Company
Beijing Shounong Xiangshan Conference Centre Controlled by the ultimate controlling
Co., Ltd. party
Controlled by the ultimate controlling
Beijing Shounong Xiangshan Commercial Co., Ltd.
party
Controlled by the ultimate controlling
Beijing Beijiao Farm Co., Ltd
party
Controlled by the ultimate controlling
Beijing Yanqing Farm Co., Ltd
party
Controlled by the ultimate controlling
Beijing Jingtang Dingsheng Trading Co., Ltd.
party
Controlled by the ultimate controlling
Beijing Jingliang E-Commerce Co., Ltd
party
Controlled by the ultimate controlling
Beijing Wang Zhihe Food Co., Ltd
party
Beijing Sanyuan Seed Industry Technology Co., Ltd Controlled by the ultimate controlling
Feeding Co., Ltd. party
Hebei Shounong Modern Agricultural Technology Controlled by the ultimate controlling
Co., Ltd party
Controlled by the ultimate controlling
Beijing Shounong Weiye Group Co., Ltd
party
Controlled by the ultimate controlling
Beijing Ershang Xijie Food Co., Ltd
party
Controlled by the ultimate controlling
Beijing Zhujun Grain and Oil Supply Co., Ltd
party
Controlled by the ultimate controlling
Beijing Children soldiers grain and oil supply Co., L
party
Beijing Shounong University Kitchen Supply Chain Controlled by the ultimate controlling
Management Group Co., Ltd party
Beijing Hongyuan Lijun Grain and Oil Supply Co., Controlled by the ultimate controlling
Ltd party
Controlled by the ultimate controlling
Beijing Food Group Co., Ltd
party
Controlled by the ultimate controlling
Beijing Nanyuan Plant Oil Factory.
party
Beijing Shounong Emergency Security Centre Controlled by the ultimate controlling
Co.,Ltd. party
Controlled by the ultimate controlling
Beijing Dahongmen Grain Storage Co., Ltd
party
Controlled by the ultimate controlling
Beijing Xinanjiao Food Co. Ltd.
party
Controlled by the ultimate controlling
Jingliang Dian to Net (Beijing) Commerce Co., Ltd.
party
Notes to the Financial Statements
Name of Other Related Party Relationship with the Company
Beijing Yunong Quality Agricultural Products Controlled by the ultimate controlling
Planting Co., Ltd. party
Controlled by the ultimate controlling
Beijing Guchuan Bread Food Co., Ltd.
party
Beijing Etshang Group Co., Ltd Taikang Cultural Controlled by the ultimate controlling
Branch party
Note：Beijing Zhujun Grain and Oil Supply Co., Ltd，Beijing Hongyuan Lijun Grain and
Oil Supply Co., Ltd. and Beijing Children soldiers grain and oil supply Co., Ltd.have been
cancelled.
5. Related-party Transactions
(1) Related-party transactions for purchasing and selling goods and provision and
acceptance of labor services
Purchase of goods or acceptance of labor services
Amount of Whether
transactions the
Related-party Current Last Term
Related Party approved(in ten transaction
Transaction Amount Amount
thousands limit is
Yuan) exceeded
Beijing
Ancient Ship Purchase of
14,292,852.94 1,800.00 No 6,710,236.13
Rice Industry goods
Co., Ltd
Shanghai
Shounong
Purchase of
Investment 539,708,185.60 65,000.00 No
goods
Holdings Co.,
Ltd
Other related Purchase of
5,247,471.99 1,400.00 No 12,256,382.94
entities goods
Acceptance
Other related
of labor 720,000.00 50.00 Yes 631,603.77
entities
services
Sale of goods/ provision of labor services
Notes to the Financial Statements
Related-party Current Last Term
Related Party
Transaction Amount Amount
Beijing Shounong Development Co.,Ltd. Sale of goods 630,970.43
Beijing Shounong Dian to Net Commercial
Sale of goods 218,197.97
Chain Co., Ltd
Beijing Changyang Farming Co., Ltd Sale of goods 203,934.49
Beijing Food Supply Department No. 34
Sale of goods 2,470,489.49 1,933,686.47
Supply Department Co., Ltd
Beijing Ershang Dahongmen Five Meat
Sale of goods 294,726.60
Union Food Co. Ltd
Hebei Anping Dahongmen Food Co., Ltd. Sale of goods 990,192.64
Hebei Luanping Huadu Food Co., Ltd Sale of goods 41,460,731.02 24,869,269.53
Beijing Baijiayi Food Co., Ltd Sale of goods 2,949,855.06 1,634,422.04
Beijing Wuhuan Shuntong Supply Chain
Sale of goods 1,655,185.55 2,807,417.64
Management Co., Ltd
Beijing Sanyuan Food Co., Ltd Sale of goods 555,614.68
Beijing Ailai Faxi Food Co., Ltd Sale of goods 262,055.00
Hebei Sanyuan Food Co., Ltd Sale of goods 1,104,504.04 3,936,383.48
Beijing Liubiju Food Co., Ltd Sale of goods 6,806,152.29 5,233,334.94
Beijing Lanfeng Vegetable Distribution Co.,
Sale of goods 434,845.88 773,434.88
Ltd
Beijing Guchuan Food Co., Ltd Sale of goods 467,677.57 1,398,392.53
Beijing Jingliang East Grain & Oil Trade Co.
Sale of goods 4,599,856.82 5,706,941.17
Ltd,
Beijing Zhangxin Grain Reserve Co., Ltd Sale of goods 1,873,412.84 1,487,322.95
Beijing Haidian West Suburb Grain and Oil
Sale of goods 3,683,775.23 4,977,243.14
Supply Station Co., Ltd
Beijing JIngdu Jinggu Grain Purchase and
Sale of goods 1,582,317.43 1,168,807.35
Sales Co., Ltd
Beijing Longqing Xiadu Military Food
Sale of goods 409,541.28
Supply Co., Ltd
Beijing Shounong Consumption Poverty
Sale of goods 10,551,761.44 12,896,905.51
Alleviation and Innovation Center Co., Ltd
Beijing Shounong Xiangshan Commercial
Sale of goods 632,073.40
Co., Ltd.
Shanghai Shounong Investment Holdings
Sale of goods 431,726,713.75 214,613,311.32
Co., Ltd
Beijing Wang Zhihe Food Co., Ltd Sale of goods 22,972,286.89 66,830,285.30
Beijing Sanyuan Seed Industry Technology
Sale of goods 57,986,292.75 57,112,231.88
Co., Ltd Feeding Co., Ltd.
Notes to the Financial Statements
Related-party Current Last Term
Related Party
Transaction Amount Amount
Hebei Shounong Modern Agricultural
Sale of goods 18,014,186.33 19,281,001.32
Technology Co., Ltd
Beijing Shounong Weiye Group Co., Ltd Sale of goods 17,523,217.37
Beijing Ershang Xijie Food Co., Ltd Sale of goods 7,764,752.62
Beijing Zhujun Grain and Oil Supply Co.,
Sale of goods 2,589,779.81
Ltd
Beijing Children soldiers grain and oil supply
Sale of goods 1,790,825.70
Co., L
Beijing Shounong University Kitchen Supply
Sale of goods 927,483.93
Chain Management Group Co., Ltd
Beijing Hongyuan Lijun Grain and Oil
Sale of goods 202,752.29
Supply Co., Ltd
Other-related entities Sale of goods 1,119,432.14 2,799,826.98
Provision of
Beijing Capital Agribusiness & Foods Group 11,438,400.93 11,113,947.81
services
Shanghai Shounong Investment Holdings Provision of
16,755,090.46 5,392,403.90
Co., Ltd services
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
If the Company is the lessor
Lease Income Lease Income
Type of Leased
Name of Lessee Recognized in the Recognized in the Prior
Asset
Current Period Period
Beijing Jingliang
Vehicle 22,530.26 22,530.26
E-commerce Co., Ltd.
If the Company is the lessee
Rental cost of simplified Variable lease payment not
Type treatment of short-term lease included in the calculation of
Name of of and low-value lease asset lease liabilities
Lessee Leased Lease Expense Lease Lease Expense Lease
Asset Recognized in Expense Recognized in Expense
the Current Recognized in the Current Recognized
Notes to the Financial Statements
Period the Prior Period in the Prior
Period Period
Beijing Grain Group House
792,986.42 1,048,715.69
Co., Ltd. leasing
Beijing Nanyuan House
323,809.52 331,694.32
Plant Oil Factory leasing
Beijing Shounong
House
Food Emergency 2,408,256.88 2,339,449.54
leasing
Security Centre
Beijing Shounong
House
Development Co., 2,747,664.01
leasing
Ltd.
Beijing Dahongmen
House
Grain Storage Co., 417,672.07 626,936.95
leasing
Ltd
Beijing Xinanjiao House
44,036.70
Food Co. Ltd. leasing
Beijing Grain
House
Science Research
leasing
Institute Co., Ltd
(Continued )
Interest expense Increase in right-of-use
Payment of rent
on lease liabilities assets
Leas
Lease
e
Expe
Expe
Lease nse
Name of Lease nse
Lease Expense Expense Lease Expense Reco
Lessee Expense Reco
Recognized in Recognized Recognized in gnize
Recognized gnize
the Current in the the Current d in
in the Prior d in
Period Current Period the
Period the
Period Prior
Prior
Perio
Perio
d
d
Beijing
Grain
860,000.00
Group Co.,
Ltd.
Beijing
Nanyuan
340,000.00 348,279.04
Plant Oil
Factory
Notes to the Financial Statements
Interest expense Increase in right-of-use
Payment of rent
on lease liabilities assets
Leas
Lease
e
Expe
Expe
Lease nse
Name of Lease nse
Lease Expense Expense Lease Expense Reco
Lessee Expense Reco
Recognized in Recognized Recognized in gnize
Recognized gnize
the Current in the the Current d in
in the Prior d in
Period Current Period the
Period the
Period Prior
Prior
Perio
Perio
d
d
Beijing
Shounong
Emergency
2,625,000.00 2,550,000.00
Security
Centre
Co.,Ltd.
Beijing
Shounong
2,994,953.76
Developme
nt Co., Ltd.
Beijing
Dahongme
n Grain 438,555.67 658,283.79
Storage
Co., Ltd
Beijing
Xinanjiao
48,000.00
Food Co.
Ltd.
Beijing
Grain
Science
28,080,000.00 3,970,789.04 - 117,043,974.80
Research
Institute
Co., Ltd
(3) Remuneration for key management staff
Current Amount (Unit: ten Last Term Amount (Unit:
Item
thousand yuan) ten thousand yuan)
Notes to the Financial Statements
Remuneration for Key
1,074.56 1,168.45
Management Staff
(4) Other Related-party Transactions
Related-party Current Last Term
Guaranteed Party
Transaction Amount Amount
Beijing Dahongmen Foodstuff Heating cost, cleaning
84,663.79
Storage service, electricity fees
Beijing Shounong Development
Utilities, property fees 129,970.81
Co., Ltd.
Beijing Shounong Xiangshan
Conference service fees 44,130.38
Conference Centre Co., Ltd.
Beijing Shounong Food Group
Interest income 5,553,229.60 2,295,571.07
Finance Co., Ltd.
Beijing Guchuan Food Co., Ltd. Brand royalty 2,168,860.67 2,601,649.71
Beijing Guchuan Rice Co., Ltd. Brand royalty 148,171.96 140,583.79
Beijing Jingliang Dongfang
Brand royalty 1,205.83 2,996.50
Grain and Oil Trading Co., Ltd.
6. Related party Receivables and Payables
(1) Receivables
Closing Balance Opening Balance
Provision Provision
Item Related-party
Book Balance for Bad Book Balance for Bad
Debts Debts
Beijing shounong
Monetary
Food Group Finance 890,056,629.88 339,487,167.33
funds
Co., Ltd
Beijing Food Supply
Department No. 34
Receivables 67,680.00 279,035.00
Supply Department
Co., Ltd
Beijing Ershang
Dahongmen Five
Receivables 477.00
Meat Union Food
Co. Ltd
Hebei Anping
Receivables Dahongmen Food 86,000.00
Co., Ltd.
Notes to the Financial Statements
Closing Balance Opening Balance
Provision Provision
Item Related-party
Book Balance for Bad Book Balance for Bad
Debts Debts
Kaifeng
Receivables Dahongmmen Meat 64,500.00
Food Co., Ltd.
Beijing Shounong
Dian to Net
Receivables 53,886.00 95,120.40
Commercial Chain
Co., Ltd
Hebei Luanping
Receivables 3,619,958.60 3,548,214.00
Huadu Food Co., Ltd
Beijing baijiayi Food
Receivables 228,000.00 180,695.00
Co., Ltd
Beijing Sanyuan
Receivables 112,290.00
Food Co., Ltd
Beijing Lanfeng
Receivables Vegetable 36,765.00 84,200.00
Distribution Co., Ltd
Beijing Ershang
Receivables 13,200.00
Group Co., Ltd
Beijing Jingliang
Receivables Dongfang Grain and 212,077.75 1,198,484.00
Oil Trading Co., Ltd.
Beijing Zhangxin
Receivables Grain Reserve Co., 99,000.00 665,000.00
Ltd
Beijing Shounong
Consumption
Assistance
Receivables 399,500.00 1,737,500.00
Innovation and
Entrepreneurship
Center Co., Ltd.
Shanghai Sunlon
Receivables Investment 677,093.11
HOLDINGS Ltd.
Feed Branch of
Beijing Sanyuan
Receivables 2,271,574.62 2,056,939.44
Seed Technology
Co., Ltd
Notes to the Financial Statements
Closing Balance Opening Balance
Provision Provision
Item Related-party
Book Balance for Bad Book Balance for Bad
Debts Debts
Hebei Shounong
Receivables Modern Agricultural 1,047,816.96
Technology Co., Ltd
Hebei Sanyuan Food
Receivables 1,685,000.00
Co., Ltd
Beijing Guchun Food
Receivables 82,800.00
Co., Ltd
Beijing Haidian West
Suburb Grain and Oil
Receivables 82,500.00
Supply Station Co.,
Ltd
Beijing Shoucheng
Receivables Shanshui Real Estate 33,355.00
Co., Ltd
Beijing Yunong
Quality Agricultural
Receivables 3,120.00
Products Planting
Co., Ltd
Other Beijing Guchuan
50,000.00 50,000.00
Receivables Rice Industry Co. Ltd
Beijing Dahongmen
Other
Grain Storage Co., 55,232.00
Receivables
Ltd
(2) Payables
Closing Opening
Item Related-party
Balance Balance
Beijing Nanjiao Agricultural Production
Payables 410.00
Operation Management Co. Ltd.
Beijing Sugar Cigarette And
Payables Wine Group Co.,Ltd. Sugar 3,763.10
Management Branch
Payables Beijing Ershang Meat Group Co., Ltd 3,633.06
Beijing Ershang Dahongmen Five Meat
Payables 96.79 19,115.04
Union Food Co. Ltd
Payables Beijing Shounong Development Co.,Ltd 559,500.00
Notes to the Financial Statements
Closing Opening
Item Related-party
Balance Balance
Beijing Shounong Grain Reserve Co.,
Payables 720,000.00
Ltd
Payables Beijing Guchun Food Co., Ltd 464,000.00 240,000.00
Beijing Heiliu Animal Husbandry
Payables 2,826.00
Technology Co., Ltd
Beijing Centennial Liyuan Ecological
Payables 110.00
Agriculture Co., Ltd
Payables Beijing Sanyuan Food Co., Ltd 50.48
Beijing Etshang Group Co., Ltd Taikang
Other payables 210.00
Cultural Branch
Other payables Beijing Grain Group Co., Ltd. 3,456,200.00 2,862,750.30
Other payables Hebei Sanyuan Food Co., Ltd 140,000.00
Other payables Beijing Jingliang E-Commerce Co., Ltd 42,432.00 67,891.21
Shanghai Sunlon Investment
Other payables 188,422.48
HOLDINGS Ltd.
Beijing Shuangtong Huihe Agricultural
Contract liability Science and Technology Development 2,201.83
Co., Ltd
Shanghai Sunlon Investment
Contract liability 7,259,750.24 3,448,410.37
HOLDINGS Ltd.
Contract liability Beijing Liubiju Food Co., Ltd 59,300.00
Beijing Jingliang Dongfang Grain and
Contract liability 15,088.20
Oil Trading Co., Ltd.
Beijing Wuhuan Shuntong Supply
Contract liability 3,192.54
Chain Management Co., Ltd
Beijing Shounong Commercial Chain
Contract liability 293.20
Co., Ltd
Beijing Shuangtong Huihe Agricultural
Other payables Science and Technology Development 198.17
Co., Ltd
Shanghai Sunlon Investment
Other payables 653,377.52
HOLDINGS Ltd.
XIII Share based payment
There are no share based payments incurred this year for the company.
XIV Commitments and Contingencies
Notes to the Financial Statements
By the end of this report, the company and its holding subsidiaries have approved the
amount of guarantee 5.359 billion yuan, and the actual amount of guarantee of the company and
its holding subsidiaries is 1.167 billion yuan, accounting for 36.84% 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.
XV Events after the Balance Sheet Date
Distribution of Profits
Proposed allocation of dividends
0.71
(yuan) per every 10 shares
Dividends (yuan) declared after review
0.71
and approval per every 10 shares
The Company held 11th meeting of 10th session board
of directors on 28 March 2024, considering the adoption
Year 2023 Annual Profit Distribution Plan, agreed to
issue cash bonus in total of 51,613,467.82 yuan, at
0.71yuan (including tax) per 10 shares for all
Profit distribution plan shareholders, which is based on the total shares of
726,950,251.00 on 31 Dec 2023, therefore the total
payout ratio therefore amounting to
50.43%. The schemes of distribution of profits shall
distribute cash dividends without bonus shares issuing or
conversion of capital reserve funds to share capital.
XVI Other Important Matters
1. Annuity Plan
Basic information of annuity: Beijing Jingliang Food Co., Ltd., Jingliang (Tianjin) grain
and Oil Industry 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 Division
Notes to the Financial Statements
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing, oil and grease and so on according
to its internal organizational structure, management requirements and internal reporting system.
The Company's management regularly evaluates the operating results of these divisions to
determine the allocation of resources to them and evaluate their performance. The information
reported by divisions should be disclosed according to the accounting policies and measurement
standards adopted by such divisions when they are reporting to the management. These
measurement bases should be consistent with the accounting and measurement bases for
preparation of financial statements.
(2) Reporting of the financial information of divisions
Food Offset Among
Item Oil & Grease Total
Processing Divisions
Operating income 935,184,271.41 10,909,755,649.64 10,406.73 11,844,929,514.32
Operating costs 714,515,550.37 10,787,126,093.80 10,406.73 11,501,631,237.44
Total assets 982,747,268.12 5,875,035,716.78 361,000,000.00 6,496,782,984.90
Total liabilities 130,404,007.61 3,152,047,678.25 361,000,000.00 2,921,451,685.86
XVII Notes to Main Financial Statement Items of Parent Company
1. Other Receivable
Item Closing Balance Opening Balance
Dividends receivable 150,000,000.00
Other receivables 950,000,000.00 199,000,000.00
Total 950,000,000.00 349,000,000.00
(1) Dividend Receivable
Item(s) Closing Balance Opening Balance
Dividend receivable accounting age Within 1 Year 150,000,000.00
Including (1)Beijing Jingliang Food Co., Ltd. 150,000,000.00
Total 150,000,000.00
(2) Other Receivables
A. Disclosed according to aging
Notes to the Financial Statements
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 800,000,000.00 29,000,000.00
1 to 2 years (including 2 years) 29,000,000.00 170,000,000.00
2 to 3 years (including 3 years) 121,000,000.00
Total 950,000,000.00 199,000,000.00
B. Classification of other receivables by nature of funds
Book Balance at End of Book Balance at Beginning of
Nature of Funds
Period Year
Intercourse Funds of Entities 950,000,000.00 199,000,000.00
Total 950,000,000.00 199,000,000.00
C. Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall Closing
Name of Balance at End Closing Balance of Nature of Balance of
Aging
Organization of Period other receivables Funds bad debt
(%)%) reserves
Beijing Related
Within
Jingliang Food 950,000,000.00 100.00 party
3 years
Co., Ltd. borrowing
Total 950,000,000.00 100.00
2. Long-term Equity Investment
Closing Balance
Item
Book Balance Provision for Impairment Book Value
Investment in subsidiaries 2,625,657,283.19 2,625,657,283.19
Total 2,625,657,283.19 2,625,657,283.19
(Continued)
Opening Balance
Item
Book Balance Provision for Impairment Book Value
Investment in subsidiaries 2,619,157,283.19 2,619,157,283.19
Total 2,619,157,283.19 2,619,157,283.19
Notes to the Financial Statements
Investment in subsidiaries
Current Closing Balance of
Invested Entity Opening Balance Current Increase Current Decrease Closing Balance Provision for Provision for
Impairment Impairment
Beijing Jingliang Food Co.,
2,336,639,964.05 2,336,639,964.05
Ltd.
Zhejiang little prince Food
249,017,319.14 249,017,319.14
Co., Ltd
Jingliang (Yangpu) Grain and
6,500,000.00 6,500,000.00
Oil Industry Co., Ltd.
Jingliang (Caofeidian)
Agricultural Development 25,500,000.00 25,500,000.00
Co., Ltd.
Jingliang (Beijing) Food
Marketing Management Co., 8,000,000.00 8,000,000.00
Ltd
Total 2,619,157,283.19 6,500,000.00 2,625,657,283.19
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
3. Operating Income and Operating costs
Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Other businesses 12,240,221.13 341,162.52 11,768,886.09 341,162.52
Total 12,240,221.13 341,162.52 11,768,886.09 341,162.52
4. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated by
300,509,614.85 163,430,984.15
cost method
Total 300,509,614.85 163,430,984.15
XVIII.Supplementary Information
1. Details of non-recurring profit and loss in the reporting period
Details of non-recurring profit and loss Amount Note
Gains and losses on disposal of non current assets， including
3,689,977.61
provision for asset impairment write-off portion
Government subsidies included in the current profits and losses
(closely related to the business of the enterprise, except the
4,051,043.54
government subsidies enjoyed according to the national unified
standard quota or quantitative)
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 the holding of financial assets and financial 586,238.54
liabilities by non-financial enterprises,as well as the investment
income from the disposal of financial assets and financial liabilities
Income from custodial fees obtained from entrusted operations 11,438,400.93
Other non-operating income and expenses other than the above 3,098,255.84
Other profit and loss items that meet the definition of non recurring
profit and loss
Less: amount affected by income tax 2,545,032.87
Non recurring profit and loss attributable to minority
649,766.78
shareholders (after tax)
Total 19,669,116.81
2. Return on equity and earnings per share
Hainan Jingliang Holdings Co., Ltd. Annual Report 2023
Situation on return on equity and earnings per share
Weighted Return EPS
Current Profit on Average Equity
Basic EPS Diluted EPS
(ROAE) (%)
Net profit attributable to the
3.29 0.14 0.14
Company's common shareholders
Net profit attributable to common
shareholders after deduction of 2.65 0.11 0.11
non-recurring gains and losses
Hainan Jingliang Holdings Co., Ltd.
30 March 2024
