Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
Stock Symbol: 000505, 200505 Stock Name: JLKG, JL-B Announcement No.: 2018-028
HAINAN JINGLIANG HOLDINGS CO., LTD.
FIRST QUARTER REPORT 2018 (SHORT VERSION)
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (together with its
consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent
Company”, except where the context otherwise requires) hereby guarantee the actuality,
accuracy and completeness of the contents of this Report, and shall be jointly and severally
liable for any misrepresentations, misleading statements or material omissions in this Report.
All the Company’s Directors have attended the Board meeting for the review of this Report.
Wang Guofeng, the Company’s legal representative, Guan Ying, the Company’s head for
financial affairs, and Liu Quanli, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
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.
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
January-March 2018 January-March 2017 Change
Sales revenue (RMB) 1,866,527,190.78 1,545,437,876.41 20.78%
Net income attributable to shareholders of
31,041,912.71 29,668,391.83 4.63%
the listed company (RMB)
Net income attributable to shareholders of
the listed company before nonrecurring 29,930,951.86 13,757,116.56 117.57%
gains and losses (RMB)
Net cash flows from operating activities
671,468,699.31 -124,811,091.49 637.99%
(RMB)
Basic earnings per share (RMB/share) 0.05 0.05 0.00%
Diluted earnings per share (RMB/share) 0.05 0.05 0.00%
Weighted average return on equity (%) 1.47% 2.12% -0.65%
March 31, 2018 December 31, 2017 Change
Total assets (RMB) 5,768,367,292.00 6,082,383,851.23 -5.16%
Equity attributable to shareholders of the
2,132,238,478.06 2,101,342,683.37 1.47%
listed company (RMB)
Nonrecurring gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2018 Note
Non-operating income and expense other than above 2,071,983.76
Less: Income tax effects 517,995.94
Non-controlling interests effects (net of tax) 443,026.97
Total 1,110,960.85 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
II Total Number of Shareholders and Top 10 Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Preferred shareholders with resumed voting
Common shareholders at period-end 33,650 0
rights at period-end (if any)
Top 10 shareholders
Nature of Shareholding percentage Pledged or frozen shares
Name of shareholder Shares Restricted shares
shareholder at period-end (%) Status Shares
BEIJING GRAIN State-owned
42.06% 288,439,561 164,877,598
GROUP CO., LTD. juridical person
BEIJING
STATE-OWNED
CAPITAL State-owned
7.07% 48,510,460 48,510,460
OPERATION AND juridical person
MANAGEMENT
CENTER
LI SHERYN ZHAN Foreign natural
3.41% 23,394,100 0
MING person
CHINA
DEVELOPMENT State-owned
3.33% 22,828,451 22,828,451
BANK CAPITAL juridical person
CO., LTD.
GOLD BUFFALO
RUNYING
(TIANJIN) EQUITY Other 3.33% 22,828,451 22,828,451
INVESTMENT
FUND (L.P.)
Domestic
MEI JIANYING 0.38% 2,597,803 0
natural person
Domestic
ZHANG XIAOXIA 0.28% 1,949,250 0
natural person
Domestic
WANG XIAOXING 0.27% 1,836,500 0
natural person
Domestic
ZHONG YI 0.25% 1,730,083 0
natural person
Domestic
WU LING 0.25% 1,723,600 0
natural person
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
Top 10 non-restricted shareholders
Type of shares
Name of shareholder Non-restricted shares held at period-end
Type Shares
BEIJING GRAIN GROUP CO., LTD. 123,561,963 RMB common stock 123,561,963
Domestically listed stock
LI SHERYN ZHAN MING 23,394,100 23,394,100
for foreign investors
MEI JIANYING 2,597,803 RMB common stock 2,597,803
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
ZHONG YI 1,730,083 RMB common stock 1,730,083
WU LING 1,723,600 RMB common stock 1,723,600
WANG DAO 1,694,000 RMB common stock 1,694,000
CHEN OUQIN 1,652,679 RMB common stock 1,652,679
YAN GUANGYAN 1,629,600 RMB common stock 1,629,600
Beijing State-Owned Capital Operation And Management Center owns 100% of Beijing
Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is the controlling shareholder
Related or acting-in-concert parties
of the Company (a 42.06% holding). Apart from that, the Company does not know
among shareholders above
whether there are any other related parties or acting-in-concert parties among the top 10
shareholders.
1. Shareholder Wang Xiaoxing holds 1,836,500 shares in the Company through an
account of collateral securities for margin trading in Soochow Securities Co., Ltd.
2. Shareholder Zhong Yi holds 1,730,083 shares in the Company through an account of
collateral securities for margin trading in Fortune Securities Co., Ltd.
Shareholders conducting securities 3. Shareholder Wang Dao holds 327,500 shares in the Company through an account of
margin trading (if any) collateral securities for margin trading in Cinda Securities Co., Ltd., as well as another
1,366,500 shares in the Company through a common stock account.
4. Shareholder Yan Guangyan holds 1,370,100 shares in the Company through an
account of collateral securities for margin trading in Shanxi Securities Co., Ltd., as well
as another 259,500 shares in the Company through a common stock account.
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. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
Part III Significant Events
I Changes in Selected Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
1. Derivative financial assets at the end of the Reporting Period decreased from the opening amount, primarily
driven by less future margins of subsidiary Jingliang Oils as a result of its decreased future contracts.
2. Prepayments at the end of the Reporting Period decreased from the opening amount, primarily driven by the
deliveries previously paid for shifting to inventories.
3. Inventories at the end of the Reporting Period decreased from the opening amount, primarily driven by the sale
of some inventories.
4. Current portion of non-current assets at the end of the Reporting Period increased from the opening amount,
primarily driven by a larger amount in wealth management.
5. Other current assets at the end of the Reporting Period increased from the opening amount, primarily driven by
the increase in national debt reverse repo investments.
6. Construction in progress at the end of the Reporting Period decreased from the opening amount, primarily
driven by the completed production line of subsidiary Xiaowangzi shifting to property, plant and equipment.
7. Notes payable at the end of the Reporting Period decreased from the opening amount, primarily driven by the
settlement of letters of credit issued at the beginning of the year for imports.
8. Accounts payable at the end of the Reporting Period decreased from the opening amount, primarily driven by
the payments made to suppliers.
9. Advances from customers at the end of the Reporting Period increased from the current Advances from
customers .
10. Payroll payable at the end of the Reporting Period decreased from the opening amount, primarily because the
annual performance remuneration for the prior year was paid in the Current Period.
11. Other current liabilities at the end of the Reporting Period decreased from the opening amount, was primarily
driven by decreases in certain floating losses on hedging.
12. Taxes and surtaxes of the Reporting Period decreased from the same period of last year, primarily because
there was land value added tax on real estate revenue in the same period of last year, while there was no real estate
revenue in the Current Period.
13. Finance costs of the Reporting Period increased from the same period of last year, primarily driven by the
increase in bank loans.
14. The impairment loss of assets during the Reporting Period decreased from the same period of last year, was
primarily driven by doubtful account allowances in the same period of last year.
15. Net cash flows from operating activities of the Reporting Period increased from the same period of last year,
was primarily caused by the Inventories decreased and the cash in-flowed from sales.
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
16. Net cash flows from investing activities of the Reporting Period decreased from the same period of last year,
primarily driven by a larger investment amount in reserve repo and bank’s wealth management.
17. Net cash flows from financing activities of the Reporting Period increased from the same period of last year,
primarily driven by a larger loan repayment amount to bank in the same period of last year.
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Summary of significant event Disclosure date Index to related announcement
On January 26, 2018, the Company signed Cooperation Agreement
with Tangshan Caofeidian Agricultural Development Group Co.,
Ltd (hereinafter referred to as “CAD Group”), where the Company
paid RMB25.5 million in monetary to increase capital to Jingliang
(Caofeidian) Agricultural Development Co., Ltd (hereinafter http://www.cninfo.com.cn:
referred to as “Jingliang AD Company”), the wholly-owned Announcement on Capital
subsidiary of CAD Group. After the capital increase, the registered Increase of the Company to
capital of Jingliang AD Company is RMB50 million, and the Jingliang (Caofeidian)
shareholding ration of the Company and CAD Group is respectively Agricultural Development Co.,
01/27/2018
51% and 49%.Based on the land reserves of freshwater aquaculture Ltd to Launch the Project of
in Caofeidian District, the Company conducts land remediation year Land Remediation in
by year, which forms the indicator of requisition-compensation Caofeidian, Tangshan (No.
balance to implement the project of agriculture industrialization 2018-005 )
based on marketization. The management and operation of the
Company improve the utility efficiency of land, at the same time,
boost the development of agriculture industry, forming the new
pattern of integrative development for integration of the first,
second, and third industry.
In order to further expand financing channels, reduce financial costs,
improve capital usage efficiency, and achieve the benefits to the
http://www.cninfo.com.cn:
maximum, the Company signed Agreement of Financial Services in
Announcement on Agreement
Beijing with and Beijing Grain Group Finance Co., Ltd. (Hereinafter
of Financial Services Signed
referred to as “Finance Company”) on January 26, 2018. According
01/27/2018 with Beijing Grain Group
to the Agreement, Finance Company provided the Company with a
Finance Co., Ltd and Related
series of financial services within its business scope, including but
Transactions (No. 2018-008)
not limited to deposit service, settlement service, comprehensive
credit service, and other business that Finance Company can engage
in approved by CBRC.
The Company finished the significant assets restructuring on
November 2017, and the main businesses were converted from http://www.cninfo.com.cn:
development of real estate, hotel tourism, and property management Announcement on Industry
01/31/2018
into processing of vegetable oil, food manufacturing and land Change of the Company (No.
remediation. In accordance with the relevant regulations of Index of 2018-010)
Industry Classification of Listed Companies, when the proportion of
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
operating revenues of a business is larger than or equal to 50%, then
it shall be classified into the category corresponding to the business.
The industry of the Company was changed into: manufacturing
industry-farm and sideline food processing industry (Code C13)
after being confirmed by Committee of Experts of Industry
Classification of Association of Chinese Listed Companies and
approved and issued by CSRC (for details, see the Results on
Industry Classification of Listed Companies in the 4th Quarter of
2017 disclosed on the website of CSRC).
Since the main business of the Company has been changed, the
existing name of the Company and stock name can’t embody the
future development strategy and the current actual business
characteristics accurately and comprehensively. In order to reflect
http://www.cninfo.com.cn:
more accurately the business situations, and be in line with the
Announcement on Changes in
future development strategy layout, the name of the Company was 03/13/2018
the Company’s Name and
changed into Hainan Jingliang Holdings Co., Ltd, which will be
Stock name (No. 2018-017)
easier for investors to understand. After the approval of Shenzhen
Stock Exchange, stock names of Company were changed into
“JLKG” and “JL-B” from March 13, 2018. The stock symbols
remained the same, still was “000505” and “200505”.
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 Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as
explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Initial
Variety Symbol Name Opening Opening Closing Closing Gain/loss in
investment Closing book Reporting Accounting
of of of holding holding holding holding Source
cost value (RMB) Period title
security security security (share) percentage (share) percentage (RMB)
(RMB)
Other
Other 204001 GC001 0.00 0.00% 3,546,000 354,600,000.00 1,123,327.08 -
current
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
assets
Other
Other 204002 GC002 0.00 0.00% 35,392.23 current -
assets
Other
Other 204003 GC003 0.00 0.00% 46,619.45 current -
assets
Other
Other 204004 GC004 0.00 0.00% 39,346.08 current -
assets
Other
Other 204007 GC007 0.00 0.00% 288,648.72 current -
assets
Total 0.00 0 -- 3,546,000 -- 354,600,000.00 1,533,333.56 -- --
Disclosure date of
announcement on Board’s
01/27/2018
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s 02/13/2018
consent for securities
investment (if any)
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Closing investment as
Actual gain/loss
Closing a percentage of the
Type of derivative Starting date Ending date in Reporting
investment Company’s closing
Period
net asset value
Agricultural product future contract 01/01/2018 03/31/2018 2,547.33 0.98% 1,669.68
Agricultural product future contract 01/01/2018 03/31/2018 1,494.59 0.57% 155.87
Agricultural product future contract 01/01/2018 03/31/2018 2,338.46 0.90% -195.07
Soybean hedging 01/01/2018 03/31/2018 11,634.88 4.47% -3,830.14
Total — — 18,015.26 6.92% -2,199.66
Source of money used for investment The Company’s own money
Legal matters involved (if applicable) N/A
Analysis of risks and control measures During the Reporting Period, the Company held future hedging positions, which were
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Hainan Jingliang Holdings Co., Ltd. First Quarter Report 2018 (Short Version)
associated with derivative investments held all connected to material objects with forward contracts with high liquidity. The credit
in Reporting Period (including but not risk was low with no default risk. The deals were conducted in a regulated manner with
limited to market risk, liquidity risk, credit strict decision-making and operational procedures, which would result no operational or
risk, operational risk, legal risk, etc.) legal risk.
Changes in market prices or fair value of The value of the Company’s future contracts changed according to the contract prices
derivative investments in Reporting Period declared by the future exchange, which were broadly representative. And the fair value
(fair value analysis should include of the Company’s future contracts was executed in strict compliance with the future
measurement method and related exchange’s settlement methods.
assumptions and parameters)
Significant changes in accounting policies
and specific accounting principles adopted
No significant changes
for derivative investments in Reporting
Period compared to last reporting period
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
See The Sheet of Investor Relations
03/12/2018 By one-on-one meeting Institution Activities of Hainan Jingliang Holdings
Co., Ltd. (No. 2018-01)
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Money by Its Controlling Shareholder or Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd.
April 16, 2018
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