HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
Stock Code: 000505, 200505 Stock Name: Pearl River A, Pearl River B Announcement No.: 2017-068
HAINAN PEARL RIVER HOLDINGS CO., LTD.
THIRD QUARTER REPORT 2017 (SHORT FORM)
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
Sectio I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and senior
management staff of HaiNan Pearl River Holdings Co., Ltd. (hereinafter referred to as “the
Company”) warrant that the information carried in this report is factual, accurate and
complete, without any false record, misleading statement or material omission. And they shall
be jointly and severally liable for that.
Director Xue Chunlei didn’t attend the board session in person due to the cause of work,
authorizing director Zhao Yinhu to attend and vote. Other directors have attended the board
session for reviewing this report in person.
Wang Chunli, Company Prinpal, Guan Ying, cheif of the accounting work and Guan Ying,
head of the accounting department (head of accounting) of the Company, hereby confirm that
the Financial Report carried in this Report is factual, accurate and complete.
This Report is prepared in both Chinese and English. Should there be any discrepancy
between the two versions, the Chinese version shall prevail.
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
Section II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
√Yes □No
Reason:
Business merger under the same control
December 31, 2016 Change
September 30, 2017
Before adjustment After adjustment After adjustment
Total assets (RMB) 4,747,421,920.84 1,385,469,635.17 5,007,343,324.00 -5.19%
Equity attributable to owners of the
1,680,315,717.61 65,088,302.88 2,032,242,890.44 -17.32%
parent (RMB)
January-September
July-September 2017 YoY change YoY change
2017
Net sales (RMB) 2,232,700,520.70 -22.04% 5,515,262,797.63 -7.79%
Net margin attributable to
shareholders of the Company 42,164,080.63 14.41% 113,833,212.48 60.02%
(RMB)
Net margin attributable to
shareholders of the Company
-18,544,858.72 -148.90% 5,766,539.70 116.35%
before exceptional gains and losses
(RMB)
Net cash from operating activities
-- -- -1,071,443,766.31 -278.96%
(RMB)
Basic earnings per share
0.07 16.67% 0.18 63.64%
(RMB/share)
Diluted earnings per share
0.07 16.67% 0.18 63.64%
(RMB/share)
Weighted average return on equity
2.05% -0.08% 5.45% 1.38%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Capital occupation charges on non-financial enterprises that are
16,810,053.35
charged to the profit/loss for the Reporting Period
Reporting Period net profit/loss of subsidiaries acquired through
business mergers under the same control from period-beginnings 117,422,986.25
to merger dates
Non-operating income and expense other than above -1,007,624.03
Minority interests effects (after tax) 25,158,742.79
Total 108,066,672.78 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gains and
Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of preference
Total number of common
30,806 shareholders with resumed voting 0
shareholders at period-end
rights at period-end (if any)
Top 10 shareholders
Shareholdi Total shares Pledged or frozen shares
Nature of Restricted shares
Name of shareholder ng held at
shareholder held at period-end Status Number
percentage period-end
BEIJING GRAIN GROUP CO., State-owned
28.95% 123,561,963
LTD. corporation
Foreign
LI SHERYN ZHAN MING 4.99% 21,282,800
individual
Domestic
MEI JIANYING 0.61% 2,583,803
individual
Foreign
YAO LIYUAN 0.46% 1,950,000
individual
Domestic
ZHANG XIAOXIA 0.46% 1,949,250
individual
Domestic
WANG XIAOXING 0.43% 1,836,500
individual
Domestic
CHEN OUQIN 0.39% 1,652,679
individual
Domestic
WANG DAO 0.38% 1,633,300
individual
Domestic
ZHONG YI 0.38% 1,604,283
individual
Domestic
XU ZHEN 0.37% 1,595,000
individual
Top 10 non-restricted shareholders
Non-restricted shares held at Type of stock
Name of shareholder
period-end Type Number
BEIJING GRAIN GROUP CO.,
123,561,963 RMB common stock 123,561,963
LTD.
Domestically listed stock
LI SHERYN ZHAN MING 21,282,800 21,282,800
for foreign investors
MEI JIANYING 2,583,803 RMB common stock 2,583,803
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
Domestically listed stock
YAO LIYUAN 1,950,000 1,950,000
for foreign investors
Domestically listed stock
ZHANG XIAOXIA 1,949,250 1,949,250
for foreign investors
WANG XIAOXING 1,836,500 RMB common stock 1,836,500
CHEN OUQIN 1,652,679 RMB common stock 1,652,679
WANG DAO 1,633,300 RMB common stock 1,633,300
ZHONG YI 1,604,283 RMB common stock 1,604,283
XU ZHEN 1,595,000 RMB common stock 1,595,000
Among shareholders above, there exists no related-party relationship between the principal
shareholder and other shareholders of the Company. Nor they are parties with concerted
Related or acting-in-concert parties action as prescribed in the Information Disclosure Administrative Methods for Changes in
among shareholders above Shareholding of Shareholders of Listed Companies. And it is unknown whether there is
related-party relationship among other shareholders and whether they are prescribed parties
with concerted action.
Shareholder Wang Xiaoxing held 1,836,500 shares in the Company through the account of
collateral securities for margin trading in Soochow Securities Co., Ltd.
Top 10 common shareholders Shareholder Zhong Yi held 1,604,283 shares in the Company through the account of
conducting securities margin trading collateral securities for margin trading in Eastmoney Securities Co., Ltd.
(if any) Shareholder Wang Dao held 301,900 shares in the Company through his account of collateral
securities for margin trading and held 1,331,400 shares in the Company through his common
stock account in Cinda Securities Co., Ltd.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
Section III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
1. Accounts receivable on September 30, 2017 (3.68% of the net sales during the period from July to September
2017) increased by RMB0.12 billion (143.50%) from the December 31, 2016 due to RMB0.12 billion of accounts
receivables recognized in September 2017 from new strategic customers in the southern markets. As of October
19, 2017, these accounts receivable had all been settled.
2. Prepayments on September 30, 2017 increased by RMB0.25 billion (187.2%) from the December 31, 2016 due
primarily to the arrival at the end of September 2017 of the two shipments of soybean purchased by the subsidiary
Jingliang (Tianjin) Grain & Oil Industry CO. Ltd, which has all been accepted by the end of October 2017 and is
being processed for sale.
3. Interest receivable on September 30, 2017 decreased 67.83% from the December 31, 2016 due primarily to the
interest receivable at the end of 2016 along with the Assets Transfer.
4. Dividends receivable on September 30, 2017 decreased 100% from the December 31, 2016 due primarily to the
dividends receivable at the end of 2016 along with the Assets Transfer.
5. Other current assets on September 30, 2017 decreased 62.66% from the December 31, 2016 due primarily to
decrease in bank wealth management products.
6. Available-for-sale financial assets on September 30, 2017 decreased by RMB10.82 million (35.12%) from the
December 31, 2016 due primarily to the Assets Transfer.
7. Construction in progress on September 30, 2017 decreased 88.99% from the December 31, 2016 due primarily
to the transfer of assets and the shift of Zhejiang Xiaowangzi Food Share Co., Ltd. (“Xiaowangzi Food”)’s
completed production line to fixed assets.
8. Other non-current assets on September 30, 2017 decreased by RMB 4.52 million (100%) from the December 31,
2016 due primarily to the Assets Transfer.
9. Short-term borrowings on September 30, 2017 increased 2113.90% from the December 31, 2016 due primarily
to the borrowings obtained for the purchases in the grease business line for the second half of the year according
to production needs and the market situation.
10. Notes payable on September 30, 2017 increased 66.87% from the December 31, 2016 due primarily to more
letters of credit issued for the more imports’.
11. Accounts payable on September 30, 2017 decreased 84.92% from the December 31, 2016 due primarily to a
decrease of approximately RMB80 million in accounts payable along with the transfer of the related assets, as
well as caused by RMB0.31 billion of accounts payable to suppliers.
12. Advances received on September 30, 2017 decreased 47.01% from the December 31, 2016 amount due
primarily to the Assets Transfer.
13. Payroll payable on September 30, 2017 decreased 90.65% from the December 31, 2016 due primarily to a
decrease in payroll payable along with the Assets Replacement, as well as the payment of last year’s annual
performance salaries in the current year.
14. Taxes payable on September 30, 2017 decreased 96.64% from the December 31, 2016 amount due primarily
to payment of taxes in the current year.
15. Non-current liabilities due within one year on September 30, 2017 decreased 100% from the December 31,
2016 due primarily to repayment of due long-term bank loans.
16. Long-term borrowings on September 30, 2017 decreased 100% from the December 31, 2016 due primarily to
the early repayment of long-term bank loans.
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
17. The year-over-year decrease of 7.79% in net sales during the period，primarily because the net sales during the
corresponding period of last year had included combined revenue of RMB1.997 billion from 14 trade subsidiaries,
which were all transferred in the current period. Regardless of the effects of the said trade subsidiaries, net sales
increased by RMB1.530 billion (38.46%) during the period January through September 2017 compared to the
same period of last year.
18. The year-over-year increase of 97.25% in taxes and surtaxes during the period primarily resulted from the
reclassification of taxes under “administrative expense” as “taxes and surtaxes” according to the Notice of the
Ministry of Finance (Financial Accounting [2016] No. 22) on Printing and Issuing of VAT Accounting Rules.
19. The year-over-year decrease of 71.11% in finance costs compared to the same period of last year primarily
resulted from significantly decreased loan interest as a result of the repayment of loans with high interest rates.
20. The year-over-year increase of RMB21.90 million (1356.34%) in asset impairment losses during the period
January through September 2017 primarily resulted from the bad-debt provisions made, out of prudence, for the
creditor’s rights associated with the assets transferred by the Company during the transition period, as well as the
reversal into capital reserve at the time of the Asset Transfer.
21. The year-over-year decrease of 86.79% in investment income during the period January through September
2017 primarily resulted from the transfer of equity interests in Heilongjiang Longshi Pearl River Media Co., Ltd.
by the Company and the transfer of 14 trade subsidiaries by BGG Food in last year.
22. The year-over-year decrease of 66.27% in non-operating income during the period January through September
2017 primarily resulted from last year’s relocation compensation income.
23. The year-over-year decrease of 70.66% in non-operating expense during the period January through
September 2017 primarily resulted from last year’s relocation expense.
24. The year-over-year decrease of 278.96% in net cash from operating activities during the period January
through September 2017 primarily resulted from the cash used for the purchases in the grease business line for the
second half of the year according to production needs and the market situation.
25. The year-over-year increase of 52.42% in net cash from investing activities during the period January through
September 2017 primarily resulted from BGG Food’s acquisition of a 19% stake in Xiaowangzi Food.
26. The year-over-year increase of 250.43% in net cash from financing activities during the period January
through September 2017 primarily resulted from the borrowings obtained from bank for the purchases in the
grease business line for the second half of the year according to production needs and the market situation.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Announcement of significant event Disclosure date Disclosure website
The major assets restructuring of the Company got
Reply from China Securities Regulatory Commission to
HaiNan Pearl River Holdings Co., Ltd.’s Issuing Announcement No. 2017-047 on
08/01/2017
Shares, Purchasing Assets and Raising Supporting www.cninfo.com.cn
Funds to Beijing Grain Group Co., Ltd. etc. on July
28, 2017.
On September 14, 2017, Beijing Grain Food Co., Ltd.
became the wholly-owned subsidiary of the Company
Announcement No. 2017-059 on
after completing the transfer procedures of assets 09/30/2017
www.cninfo.com.cn
planned to be put in in the major assets restructuring.
As of September 30, 2017, the delivery of assets
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
planned to be put out excluding a small number of
assets whose transfer procedures are still in progress
has been finished. The total amount of assets that have
been settled (including liabilities) accounts for 93.46%
of that of assets (including liabilities) planned to be put
out at this time.
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of
the current year through the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB'0,000
Proportion of closing Actual
Closing
investment amount in the gain/loss in
Type of derivative investment Beginning date Ending date investment
Company’s closing net Reporting
amount
assets (%) Period
Futures of agricultural products 01/01/2017 09/30/2017 30,241.88 18.00% 7,161.1
Capital source for derivative
Self-raised funds
investment
Lawsuit (if applicable) Naught
Analysis on risks and control
In the Reporting Period, the Company possessed the cash for hedging in futures. All cash has
measures of derivative products held
the physical correspondence which is distributed in forward contracts with good liquidity.
in the Reporting Period (including
The credit risk is low and there will be no default risk. In addition, there will be no risk
but not limited to market risk,
concerning operation and laws because of regulated transactions, rigorous decisions on
liquidity risk, credit risk, operation
futures and strict operation process.
risk, law risk, etc.)
Changes of market prices or fair
values in the Reporting Period of the
The value of futures contracts held by the Company is changing with the price of the
invested derivatives. And the analysis
futures exchange. The price of the futures exchange is broadly representative. And the fair
on the fair value of the derivatives
value of futures contracts will be measured in strict accordance with the settlement methods
should include the specific use
issued by the exchange.
methods and the relevant
assumptions and parameters.
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HaiNan Pearl River Holdings Co., Ltd. Third Quarter Report 2017 (Short Form)
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
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