Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
HAINAN JINGLIANG HOLDINGS CO., LTD.
THIRD QUARTER REPORT 2018
October 2018
1
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior managers of Hainan Jingliang Holdings Co., Ltd. (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires)
hereby guarantee the factuality, accuracy and completeness of the contents of this Report and
its summary, and shall be jointly and severally liable for any misrepresentations, misleading
statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
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 and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2018 31 December 2017 Change (%)
Total assets (RMB) 5,580,372,664.55 6,082,383,851.23 -8.25%
Equity attributable to the listed
2,204,056,918.96 2,101,342,683.37 4.89%
company’s shareholders (RMB)
Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)
Operating revenue (RMB) 1,899,805,985.97 -14.91% 5,539,431,965.38 0.44%
Net profit attributable to the listed
42,345,394.93 0.43% 102,264,390.61 0.42%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 42,526,321.21 301.98% 99,885,357.72 133.62%
exceptional items (RMB)
Net cash generated from/used in
-- -- 419,583,694.49 142.19%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.06 -14.29% 0.15 -6.25%
Diluted earnings per share (RMB/share) 0.06 -14.29% 0.15 -6.25%
Weighted average return on equity (%) 2.00% -0.06% 4.75% -0.14%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
-1,796,072.16
impairment allowance write-offs)
Gains/Losses on fair value changes of trading financial assets and
liabilities & investment income from disposal of trading financial
assets and liabilities as well as financial assets available for sale 5,360,397.35
(exclusive of effective hedges related to normal business
operations of the Company)
Non-operating income and expense other than above 885,054.45
Less: Income tax effects 1,112,344.91
Non-controlling interests effects (net of tax) 958,001.84
Total 2,379,032.89 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders with
Number of ordinary shareholders 37,523 0
resumed voting rights (if any)
Top 10 shareholders
Shares in pledge or
Shareholding Number of Restricted frozen
Name of shareholder Nature of shareholder
percentage shares shares
Status Shares
BEIJING GRAIN GROUP CO., LTD. State-owned legal person 42.06% 288,439,561 164,877,598
BEIJING STATE-OWNED CAPITAL
OPERATION AND MANAGEMENT State-owned legal person 7.07% 48,510,460 48,510,460
CENTER
CHINA DEVELOPMENT BANK
State-owned legal person 3.33% 22,828,451 22,828,451
CAPITAL CO., LTD.
GOLD BUFFALO RUNYING
(TIANJIN) EQUITY INVESTMENT
FUND MANAGEMENT CO.,
Other 3.33% 22,828,451 22,828,451
LTD.—GOLD BUFFALO
RUNYING (TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
LI SHERYN ZHAN MING Foreign natural person 3.19% 21,873,700 0
MEI JIANYING Domestic natural person 0.38% 2,604,203 0
DONGYANG HENGDIAN Domestic non-state-owned
0.32% 2,204,976 0
GUARANTY CO., LTD. legal person
HU TIANGAO Domestic natural person 0.30% 2,065,352 0
ZHANG XIAOXIA Domestic natural person 0.28% 1,949,250 0
WANG DAO Domestic natural person 0.28% 1,920,600 0
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
BEIJING GRAIN GROUP CO., LTD. 123,561,963 RMB-denominated ordinary stock 123,561,963
LI SHERYN ZHAN MING 21,873,700 Domestically listed foreign stock 21,873,700
MEI JIANYING 2,604,203 RMB-denominated ordinary stock 2,604,203
DONGYANG HENGDIAN
2,204,976 RMB-denominated ordinary stock 2,204,976
GUARANTY CO., LTD.
HU TIANGAO 2,065,352 RMB-denominated ordinary stock 2,065,352
ZHANG XIAOXIA 1,949,250 Domestically listed foreign stock 1,949,250
WANG DAO 1,920,600 RMB-denominated ordinary stock 1,920,600
WANG XIAOXING 1,808,000 RMB-denominated ordinary stock 1,808,000
ZHANG PENG 1,790,000 RMB-denominated ordinary stock 1,790,000
ZHONG YI 1,727,783 RMB-denominated ordinary stock 1,727,783
Beijing State-Owned Capital Operation And Management Center owns 100% of Beijing
Related or acting-in-concert parties Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is a shareholder of the Company
among shareholders above (a 42.06% holding). 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.
Top 10 ordinary shareholders 1. Shareholder Wang Xiaoxing holds 1,808,000 shares in the Company through his account
involved in securities margin trading of collateral securities for margin trading in Soochow Securities Co., Ltd.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
(if any) 2. Shareholder Zhong Yi holds 1,727,783 shares in the Company through his account of
collateral securities for margin trading in Fortune Securities Co., Ltd.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
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
5
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Monetary capital declined as at 30 September 2018 compared to 31 December 2017, primarily driven by the
repayment of borrowings during Q1~Q3 2018.
2. Financial assets at fair value through profit or loss declined as at 30 September 2018 compared to 31 December
2017, primarily because fewer futures contracts resulted in smaller margins.
3. Notes and accounts receivable rose as at 30 September 2018 compared to 31 December 2017, primarily because
more customers were allowed to buy on credit to boost sales.
4. Prepayments declined as at 30 September 2018 compared to 31 December 2017, primarily because supplies
associated with certain prepayments were received and such prepayments were thus reclassified as inventories.
5. The current portion of non-current assets declined as at 30 September 2018 compared to 31 December 2017,
primarily driven by a smaller investment in wealth management products.
6. Other current assets rose as at 30 September 2018 compared to 31 December 2017, primarily driven by larger
investments in government securities reverse repurchase and structured deposits.
7. Other non-current assets declined as at 30 September 2018 compared to 31 December 2017, primarily because
equipment associated with certain prepayments were received and installed and such prepayments were thus
reclassified as fixed assets.
8. Notes and accounts payable declined as at 30 September 2018 compared to 31 December 2017, primarily
driven by payments to suppliers.
9. Payroll payable declined as at 30 September 2018 compared to 31 December 2017, primarily driven by the
payment in Q1~Q3 2018 of the 2017 annual performance pay that had been set aside in 2017.
10. Other current liabilities declined as at 30 September 2018 compared to 31 December 2017, primarily driven
by a smaller book loss on hedged items.
11. Taxes and surcharges declined during Q1~Q3 2018 compared to Q1~Q3 2017, primarily because Q1~Q3 2017
had seen a land value added tax on real estate revenue, while there was no such revenue during Q1~Q3 2018.
12. Finance costs rose during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by a larger amount of
bank loans and higher cost of capital.
13. Asset impairment loss declined during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by some
allowances for doubtful accounts in Q1~Q3 2017.
14. Investment income rose during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by the income
generated from investments in government securities reverse repurchase and beneficiary certificates.
15. Gain on changes in fair value declined during Q1~Q3 2018 compared to Q1~Q3 2017, primarily driven by
changes in the fair value of futures positions.
16. Net cash generated from operating activities rose during Q1~Q3 2018 compared to Q1~Q3 2017, primarily
driven by the sales of inventory products.
17. Net cash generated from investing activities declined during Q1~Q3 2018 compared to Q1~Q3 2017,
primarily driven by more investments in reverse repurchase and banks’ wealth management products.
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
18. Net cash generated from financing activities declined during Q1~Q3 2018 compared to Q1~Q3 2017,
primarily driven by a higher amount of bank loan repayment in Q1~Q3 2017.
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as
explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
Accumu
ss on
lated
fair-valu Purchas Gain/los
Beginni fair-valu Sold in
Initial Measure e ed in s in Ending
Security Security Security ng e Reporti Account Funding
investm ment changes Reporti Reporti carrying
type code name carrying changes ng ing title source
ent cost method in ng ng amount
amount charged Period
Reporti Period Period
to
ng
equity
Period
17,709, 17,709,
Cost 2,585,3 Other Self-rais
Other 204001 GC001 600,000 600,000 0.00
method 61.95 assets ed
.00 .00
Cost 388,400 388,400 74,885. Other Self-rais
Other 204002 GC002 0.00
method ,000.00 ,000.00 68 assets ed
Cost 57,800, 57,800, 46,619. Other Self-rais
Other 204003 GC003 0.00
method 000.00 000.00 45 assets ed
Cost 171,800 171,800 101,482 Other Self-rais
Other 204004 GC004 0.00
method ,000.00 ,000.00 .98 assets ed
Cost 606,000 606,000 501,621 Other Self-rais
Other 204007 GC007 0.00
method ,000.00 ,000.00 .73 assets ed
18,933, 18,933,
3,309,9
Total 0.00 -- 0.00 0.00 0.00 600,000 600,000 0.00 -- --
71.79
.00 .00
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Disclosure date of
announcement on Board’s
27 January 2018
consent for securities
investments
Disclosure date of
announcement on general
meeting’s consent for 13 February 2018
securities investments (if
any)
VI Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Wealth management
product purchased from Idle raised 26,000 20,000 0
securities trader
Wealth management
product purchased from Self-funded 6,780 4,280 0
bank
Total 32,780 24,280 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security,
low liquidity, or no protection of the principal:
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Collection Impa Throu
Refere Actual Any Overview
Type of Invest /payment irme gh
Type Fun nce gain/lo plan and index
wealth ment of nt prescri
of Princip ding Start End Way of annual ss in for to more
Trustee manage with gain/loss allo bed
truste al sour date date payback ized Reporti further informati
ment princip in wan proced
e ce return ng entrust on (if
product al Reporting ce (if ure or
(%) Period ment any)
Period any) not
Pay the
principal www.cnin
Idle Agree
Securi Certific 28 and fo.com.cn
CITIC raise 29 ment
ties ation of Septe earnings at :
SECUR 6,000 d June of 4.00% 59.84 Redeemed Yes No
comp trust mber the 2018-044
ITIES capit 2018 contra
any receipt 2018 maturity and
al ct
date of 2018-055
investment
Pay the
principal
Idle Agree
DONG Securi Certific 17 and www.cnin
raise ment
XING ties ation of 4 July Dece earnings at Unredeem fo.com.cn
20,000 d of 4.80% 0 Yes No
SECUR comp trust 2018 mber the ed :
capit contra
ITIES any receipt 2018 maturity 2018-045
al ct
date of
investment
Total 26,000 -- -- -- -- -- -- 59.84 -- -- -- --
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
VII Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Ending investment Actual
Ending as % of the gain/loss in
Type of derivative Start date End date
investment Company’s ending net Reporting
assets Period
Soybean hedging 1 January 2018 30 September 2018 6,271.62 2.28% -4,750.5
Foreign exchange forwards 1 January 2018 30 September 2018 0 0.00% 3,322.53
Agricultural product future
1 January 2018 30 September 2018 2,938.86 1.07% 4,371.86
contract
Agricultural product future
1 January 2018 30 September 2018 1,512.18 0.55% 346.03
contract
Agricultural product future
1 January 2018 30 September 2018 0.1 0.00% -427.76
contract
Agricultural product future
1 September 2018 19 September 2018 0 0.00% 0.04
contract
Total -- -- 10,722.76 3.90% 2,862.2
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of board 13 April 2018
announcement approving
derivative investment (if any) 9 June 2018
Disclosure date of general 11 May 2018
meeting announcement
approving derivative 27 June 2018
investment (if any)
The Company’s conduction of hedging business is not aimed at speculation, but mainly to
effectively avoid the impact of raw material price fluctuation on the Company. However, there will
be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures
market changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be
correspondingly brought because the futures trading adopts margin and marking-to-market system;
3. Internal control risk: there may be risks due to imperfect internal control system for the high
expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to
Analysis of risks and control incomplete computer systems. The Company adopts following risk control measures: 1. Matching
measures associated with the hedging business with the Company’s production and operation so as to maximally reduce the
derivative investments held in price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business,
Reporting Period (including strictly control the hedging fund scale and reasonably plan and use margins; 3. Regulations for
but not limited to market risk, Commodity Futures Trading and Regulations for Futures Business are formulated at the Company
liquidity risk, credit risk, and subsidiaries levels respectively based on actual situation of the Company and pursuant to
operational risk, legal risk, governing stipulations of Guidelines for Standard Operation of Companies Listed in Shenzhen Stock
etc.) Exchange which have made clearly stipulations about the amount, variety scope, approval authority,
internal approval procedures, responsible departments and persons, information isolation measures,
internal risk report and related solution process, information disclosure, etc. regarding hedging
business. The Company will strictly control all sectors in accordance with the two regulations
formulated; 4. Establishing qualified systems for transaction, communication and information
services so as to guarantee the normal operation of the transaction system and smooth proceeding of
transactions. When a wrong order occurs, corresponding measures should be timely taken to reduce
losses.
Changes in market prices or
fair value of derivative
investments in Reporting The value of the Company’s future contracts changed according to the contract prices declared by
Period (fair value analysis the future exchange, which were broadly representative. And the fair value of the Company’s future
should include measurement contracts was executed in strict compliance with the future exchange’s settlement methods.
method and related
assumptions and parameters)
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Major changes in accounting
policies and specific
accounting principles adopted
N/A
for derivative investments in
Reporting Period compared to
last reporting period
The relevant decision-making procedures for the Company and its majority-owned subsidiaries to
conduct foreign exchange derivatives trading business are in compliance with relevant national
laws, regulations and the governing provisions of the Articles of Association. Based on normal
Opinion of independent
production and operation, the Company uses foreign exchange derivatives instruments to reduce
directors on derivative
exchange rate risks and finance costs, and control business risks. There is no harm to the interests of
investments and risk control
the Company and all other shareholders, especially minority shareholders. It is agreed that the
Company and its majority-owned subsidiaries will conduct foreign exchange derivative trading
business within the consideration amount.
VIII 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.
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
10
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Hainan Jingliang Holdings Co., Ltd.
30 September 2018
Unit: RMB
Item 30 September 2018 31 December 2017
Current assets:
Monetary capital 675,664,075.75 1,014,438,663.43
Settlement reserve
Interbank loans granted
Financial assets at fair value through profit or loss 122,746,473.30 176,699,298.60
Derivative financial assets
Notes and accounts receivable 145,203,498.55 75,165,127.11
Including: Notes receivable
Accounts receivable
Prepayments 293,268,069.36 912,843,489.70
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 88,438,332.04 75,722,139.87
Financial assets purchased under resale agreements
Inventories 1,412,314,191.90 1,393,958,764.07
Assets classified as held for sale
Current portion of non-current assets 21,000,000.00 51,000,000.00
Other current assets 658,143,211.20 165,867,238.70
Total current assets 3,416,777,852.10 3,865,694,721.48
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 20,000,000.00 20,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 185,589,701.74 174,589,701.74
Investment property 33,798,539.49 35,008,852.62
Fixed assets 1,284,346,034.52 1,333,410,146.38
Construction in progress 9,196,483.50 12,737,673.01
Productive living assets
Oil and gas assets
Intangible assets 387,044,956.90 398,844,032.07
R&D expense
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Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Goodwill 191,394,422.51 191,394,422.51
Long-term prepaid expense 36,216,267.37 33,247,595.28
Deferred income tax assets 16,008,406.42 14,179,072.07
Other non-current assets 3,277,634.07
Total non-current assets 2,163,594,812.45 2,216,689,129.75
Total assets 5,580,372,664.55 6,082,383,851.23
Current liabilities:
Short-term borrowings 1,772,635,314.81 2,007,171,362.73
Borrowings from central bank
Customer deposits and interbank deposits
Interbank loans obtained
Financial liabilities at fair value through profit or
loss
Derivative financial liabilities
Notes and accounts payable 262,470,835.87 400,693,157.47
Advances from customers 154,657,322.35 212,124,147.38
Financial assets sold under repurchase agreements
Handling charges and commissions payable
Payroll payable 14,742,261.81 30,762,031.53
Taxes payable 30,242,573.77 36,855,139.18
Other payables 412,744,319.51 541,399,822.67
Reinsurance payables
Insurance contract reserve
Payables for acting trading of securities
Payables for underwriting of securities
Liabilities directly associated with assets classified
as held for sale
Current portion of non-current liabilities
Other current liabilities 13,004,507.08 90,215,292.43
Total current liabilities 2,660,497,135.20 3,319,220,953.39
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables 33,778,247.87 27,592,835.11
Long-term payroll payable
Provisions
Deferred income 77,689,781.40 78,961,972.67
Deferred income tax liabilities 52,333,976.95 56,185,676.15
Other non-current liabilities
Total non-current liabilities 163,802,006.22 162,740,483.93
Total liabilities 2,824,299,141.42 3,481,961,437.32
Owners’ equity:
Share capital 685,790,364.00 685,790,364.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
12
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Capital reserves 1,592,541,582.73 1,592,541,582.73
Less: Treasury stock
Other comprehensive income 449,844.98
Specific reserve
Surplus reserves 122,122,436.98 122,122,436.98
General reserve
Retained earnings -196,847,309.73 -299,111,700.34
Total equity attributable to owners of the Company as
2,204,056,918.96 2,101,342,683.37
the parent
Non-controlling interests 552,016,604.17 499,079,730.54
Total owners’ equity 2,756,073,523.13 2,600,422,413.91
Total liabilities and owners’ equity 5,580,372,664.55 6,082,383,851.23
Legal representative: Wang Guofeng Head for financial affairs: Guan Ying Head of the financial department: Liu Quanli
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2018 31 December 2017
Current assets:
Monetary capital 15,426,423.97 15,360,177.32
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 106,626.00 109,389.00
Including: Notes receivable
Accounts receivable
Prepayments
Other receivables 57,946,415.19 60,576,292.62
Inventories 4,824,035.45 4,824,035.45
Assets classified as held for sale
Current portion of non-current assets
Other current assets 1,954,976.06 2,905,667.38
Total current assets 80,258,476.67 83,775,561.77
Non-current assets:
Available-for-sale financial assets 20,000,000.00 20,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 2,375,639,964.05 2,336,639,964.05
Investment property 5,854,403.48 6,081,230.93
Fixed assets 3,348,428.40 3,589,144.87
Construction in progress
Productive living assets
Oil and gas assets
Intangible assets 196,729.56
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets
Other non-current assets
13
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Total non-current assets 2,405,039,525.49 2,366,310,339.85
Total assets 2,485,298,002.16 2,450,085,901.62
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through profit or
loss
Derivative financial liabilities
Notes and accounts payable 2,482,949.70 2,482,949.70
Advances from customers 38,896.41 38,896.41
Payroll payable 326,765.16 2,017,684.57
Taxes payable 972,437.66 2,557,993.95
Other payables 513,668,222.16 449,510,029.34
Liabilities directly associated with assets classified
as held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 517,489,271.09 456,607,553.97
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 517,489,271.09 456,607,553.97
Owners’ equity:
Share capital 685,790,364.00 685,790,364.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,173,387,468.71 2,173,387,468.71
Less: Treasury stock
Other comprehensive income
Specific reserve
Surplus reserves 109,487,064.39 109,487,064.39
Retained earnings -1,000,856,166.03 -975,186,549.45
Total owners’ equity 1,967,808,731.07 1,993,478,347.65
Total liabilities and owners’ equity 2,485,298,002.16 2,450,085,901.62
3. Consolidated Income Statement for Q3
Unit: RMB
14
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Item Q3 2018 Q3 2017
1. Revenue 1,899,805,985.97 2,232,700,520.70
Including: Operating revenue 1,899,805,985.97 2,232,700,520.70
Interest income
Premium income
Handling charge and commission income
2. Operating costs and expenses 1,807,110,268.05 2,167,977,012.70
Including: Cost of sales 1,703,299,548.14 2,038,295,230.88
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 4,706,132.09 14,277,726.11
Selling expense 48,195,311.31 40,680,538.06
Administrative expense 52,378,722.27 33,632,981.69
R&D expense 349,299.58 626,504.24
Finance costs -2,022,277.92 11,712,245.37
Including: Interest expense
Interest income
Asset impairment loss 203,532.58 28,751,786.35
Add: Other income 3,420,131.60 1,606,288.34
Investment income (“-” for loss) 5,574,816.04 2,267,152.41
Including: Share of profit or loss of joint
ventures and associates
Gain on changes in fair value (“-” for loss) -36,001,451.60 -5,151,289.48
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss) -1,607,843.98 -74,102.52
3. Operating profit (“-” for loss) 64,081,369.98 63,371,556.75
Add: Non-operating income 983,957.85 11,333,584.99
Less: Non-operating expense 276,289.34 1,989,190.94
4. Profit before tax (“-” for loss) 64,789,038.49 72,715,950.80
Less: Income tax expense 9,498,223.59 26,083,375.95
5. Net profit (“-” for net loss) 55,290,814.90 46,632,574.85
5.1 Net profit from continuing operations (“-” for
55,290,814.90 46,632,574.85
net loss)
5.2 Net profit from discontinued operations (“-” for
net loss)
Net profit attributable to owners of the Company as
42,345,394.93 42,164,080.63
the parent
Net profit attributable to non-controlling interests 12,945,419.97 4,468,494.22
6. Other comprehensive income, net of tax 264,437.23 0.00
Attributable to owners of the Company as the parent 264,437.23 0.00
6.1 Items that will not be reclassified to profit or
loss
15
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
6.1.1 Changes in net liabilities or assets caused
by remeasurements on defined benefit pension
schemes
6.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be reclassified to
264,437.23 0.00
profit or loss
6.2.1 Share of other comprehensive income of
investees that will be reclassified to profit or loss
under equity method
6.2.2 Gain/Loss on changes in fair value of
available-for-sale financial assets
6.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale
financial assets
6.2.4 Effective gain/loss on cash flow hedges
6.2.5 Differences arising from translation of
264,437.23 0.00
foreign currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests
7. Total comprehensive income 55,555,252.13 46,632,574.85
Attributable to owners of the Company as the parent 42,609,832.16 42,164,080.63
Attributable to non-controlling interests 12,945,419.97 4,468,494.22
8. Earnings per share
8.1 Basic earnings per share 0.06 0.07
8.2 Diluted earnings per share 0.06 0.07
Legal representative: Wang Guofeng Head for financial affairs: Guan Ying Head of the financial department: Liu Quanli
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2018 Q3 2017
1. Operating revenue 0.00 0.00
Less: Cost of sales 75,609.15 100,812.20
Taxes and surcharges 32,242.73 145,225.03
Selling expense
Administrative expense 8,498,118.65 2,984,720.67
R&D expense
Finance costs 3,587,578.96 -10,284,711.37
Including: Interest expense 3,588,242.50 2,771,987.50
Interest income 2,774.94 13,670,637.08
Asset impairment loss 580.00 96,843,906.63
Add: Other income
Investment income (“-” for loss) 0.00 -141,966.40
Including: Share of profit or loss of joint
0.00 2,205,283.12
ventures and associates
Gain on changes in fair value (“-” for loss)
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) -12,194,129.49 -89,931,919.56
Add: Non-operating income
Less: Non-operating expense
3. Profit before tax (“-” for loss) -12,194,129.49 -89,931,919.56
16
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Less: Income tax expense
4. Net profit (“-” for net loss) -12,194,129.49 -89,931,919.56
4.1 Net profit from continuing operations (“-” for
net loss)
4.2 Net profit from discontinued operations (“-” for
net loss)
5. Other comprehensive income, net of tax
5.1 Items that will not be reclassified to profit or
loss
5.1.1 Changes in net liabilities or assets caused
by remeasurements on defined benefit pension
schemes
5.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss
under equity method
5.2 Items that may subsequently be reclassified to
profit or loss
5.2.1 Share of other comprehensive income of
investees that will be reclassified to profit or loss
under equity method
5.2.2 Gain/Loss on changes in fair value of
available-for-sale financial assets
5.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale
financial assets
5.2.4 Effective gain/loss on cash flow hedges
5.2.5 Differences arising from translation of
foreign currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income -12,194,129.49 -89,931,919.56
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Revenue 5,539,431,965.38 5,515,262,797.63
Including: Operating revenue 5,539,431,965.38 5,515,262,797.63
Interest income
Premium income
Handling charge and commission
income
2. Operating costs and expenses 5,367,497,218.29 5,325,251,308.02
Including: Cost of sales 5,038,627,672.46 4,946,577,567.18
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
17
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Taxes and surcharges 19,018,278.45 40,345,029.56
Selling expense 139,821,320.67 133,704,147.54
Administrative expense 135,753,834.87 156,614,807.20
R&D expense 1,072,960.08 1,123,501.16
Finance costs 33,482,038.92 23,373,101.68
Including: Interest expense
Interest income
Asset impairment loss -278,887.16 23,513,153.70
Add: Other income 8,937,425.37 7,920,871.71
Investment income (“-” for loss) 16,487,429.06 11,766,061.71
Including: Share of profit or loss of joint
ventures and associates
Gain on changes in fair value (“-” for loss) -22,110,484.16 -13,904,516.93
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss) -1,796,072.16 -25,199.59
3. Operating profit (“-” for loss) 173,453,045.20 195,768,706.51
Add: Non-operating income 10,781,378.60 13,821,293.02
Less: Non-operating expense 9,896,461.65 5,528,315.74
4. Profit before tax (“-” for loss) 174,337,962.15 204,061,683.79
Less: Income tax expense 44,488,495.00 57,511,192.19
5. Net profit (“-” for net loss) 129,849,467.15 146,550,491.60
5.1 Net profit from continuing operations (“-” for
129,849,467.15 133,828,422.33
net loss)
5.2 Net profit from discontinued operations (“-” for
12,722,069.27
net loss)
Net profit attributable to owners of the Company as
102,264,390.61 101,833,212.48
the parent
Net profit attributable to non-controlling interests 27,585,076.54 44,717,279.12
6. Other comprehensive income, net of tax 449,844.98 0.00
Attributable to owners of the Company as the
449,844.98 0.00
parent
6.1 Items that will not be reclassified to profit or
loss
6.1.1 Changes in net liabilities or assets caused
by remeasurements on defined benefit pension
schemes
6.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be reclassified
449,844.98 0.00
to profit or loss
6.2.1 Share of other comprehensive income of
investees that will be reclassified to profit or loss
under equity method
6.2.2 Gain/Loss on changes in fair value of
available-for-sale financial assets
6.2.3 Gain/Loss arising from reclassification
of held-to-maturity investments to available-for-sale
financial assets
6.2.4 Effective gain/loss on cash flow hedges
6.2.5 Differences arising from translation of
449,844.98 0.00
foreign currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests
7. Total comprehensive income 130,299,312.13 146,550,491.60
18
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Attributable to owners of the Company as the
102,714,235.59 101,833,212.48
parent
Attributable to non-controlling interests 27,585,076.54 44,717,279.12
8. Earnings per share
8.1 Basic earnings per share 0.15 0.16
8.2 Diluted earnings per share 0.15 0.16
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Operating revenue 0.00 2,857.14
Less: Cost of sales 226,827.45 252,030.50
Taxes and surcharges 1,046,593.89 212,753.35
Selling expense
Administrative expense 14,511,777.95 10,807,855.19
R&D expense
Finance costs 9,982,985.70 -8,270,296.34
Including: Interest expense 10,929,291.28 7,144,759.73
Interest income 954,302.98 16,810,053.35
Asset impairment loss -98,668.41 91,226,030.51
Add: Other income
Investment income (“-” for loss) 0.00 74,749,139.55
Including: Share of profit or loss of joint
0.00 1,276,389.07
ventures and associates
Gain on changes in fair value (“-” for loss)
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) -25,669,516.58 -19,476,376.52
Add: Non-operating income 0.00 920.00
Less: Non-operating expense 100.00 811,971.93
3. Profit before tax (“-” for loss) -25,669,616.58 -20,287,428.45
Less: Income tax expense
4. Net profit (“-” for net loss) -25,669,616.58 -20,287,428.45
4.1 Net profit from continuing operations (“-” for
net loss)
4.2 Net profit from discontinued operations (“-” for
net loss)
5. Other comprehensive income, net of tax
5.1 Items that will not be reclassified to profit or
loss
5.1.1 Changes in net liabilities or assets caused
by remeasurements on defined benefit pension
schemes
5.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss
under equity method
5.2 Items that may subsequently be reclassified to
profit or loss
5.2.1 Share of other comprehensive income of
investees that will be reclassified to profit or loss
under equity method
5.2.2 Gain/Loss on changes in fair value of
available-for-sale financial assets
19
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
5.2.3 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale
financial assets
5.2.4 Effective gain/loss on cash flow hedges
5.2.5 Differences arising from translation of
foreign currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income -25,669,616.58 -20,287,428.45
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering
6,089,990,408.11 5,822,570,435.19
of services
Net increase in customer deposits and interbank
deposits
Net increase in borrowings from central bank
Net increase in loans from other financial
institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy
holders
Net increase in proceeds from disposal of financial
assets at fair value through profit or loss
Interest, handling charges and commissions
received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase
transactions
Tax rebates 11,907,624.39 9,136,150.48
Cash generated from other operating activities 1,766,762,056.68 1,245,333,510.27
Subtotal of cash generated from operating activities 7,868,660,089.18 7,077,040,095.94
Payments for commodities and services 5,488,803,432.64 6,237,205,329.97
Net increase in loans and advances to customers
Net increase in deposits in central bank and in
interbank loans granted
Payments for claims on original insurance contracts
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 215,823,143.63 316,577,321.67
Taxes paid 149,429,869.38 250,975,642.80
Cash used in other operating activities 1,595,019,949.04 1,266,821,118.63
Subtotal of cash used in operating activities 7,449,076,394.69 8,071,579,413.07
Net cash generated from/used in operating activities 419,583,694.49 -994,539,317.13
2. Cash flows from investing activities:
Proceeds from disinvestment 1,647,338,090.45 642,702,070.16
Investment income 22,660,696.79 19,125,768.85
20
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Net proceeds from disposal of fixed assets,
624,362.84 43,621,239.95
intangible assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other
business units
Cash generated from other investing activities 94,375,000.00 303,828,188.53
Subtotal of cash generated from investing activities 1,764,998,150.08 1,009,277,267.49
Payments for acquisition of fixed assets, intangible
44,298,838.25 29,376,357.42
assets and other long-lived assets
Payments for investments 1,944,330,000.00 461,400,000.00
Net increase in pledged loans granted
Net payments for acquisition of subsidiaries and
47,954,985.00 212,344,900.00
other business units
Cash used in other investing activities 289,112,694.38 464,013,928.02
Subtotal of cash used in investing activities 2,325,696,517.63 1,167,135,185.44
Net cash generated from/used in investing activities -560,698,367.55 -157,857,917.95
3. Cash flows from financing activities:
Capital contributions received 126,553,500.00 19,553,070.16
Including: Capital contributions by
non-controlling interests to subsidiaries
Increase in borrowings obtained 1,705,500,818.73 1,630,729,869.53
Net proceeds from issuance of bonds
Cash generated from other financing activities 4,857,675,313.61 6,783,876,765.24
Subtotal of cash generated from financing activities 6,689,729,632.34 8,434,159,704.93
Repayment of borrowings 1,917,644,873.55 385,954,732.20
Payments for interest and dividends 98,022,459.14 63,040,361.51
Including: Dividends paid by subsidiaries to
non-controlling interests
Cash used in other financing activities 4,891,136,552.93 6,735,878,759.62
Subtotal of cash used in financing activities 6,906,803,885.62 7,184,873,853.33
Net cash generated from/used in financing activities -217,074,253.28 1,249,285,851.60
4. Effect of foreign exchange rate changes on cash and
19,414,338.66 252,498.89
cash equivalents
5. Net increase in cash and cash equivalents -338,774,587.68 97,141,115.41
Add: Cash and cash equivalents, beginning of the
1,014,438,663.43 505,477,847.81
period
6. Cash and cash equivalents, end of the period 675,664,075.75 602,618,963.22
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering
of services
Tax rebates 750.00 0.00
Cash generated from other operating activities 58,581,113.47 15,215,693.63
Subtotal of cash generated from operating activities 58,581,863.47 15,215,693.63
Payments for commodities and services 87,700.45 0.00
Cash paid to and for employees 12,261,894.85 3,898,308.75
Taxes paid 5,670,439.48 27,309,480.98
Cash used in other operating activities 57,497,384.43 8,470,741.08
Subtotal of cash used in operating activities 75,517,419.21 39,678,530.81
21
Hainan Jingliang Holdings Co., Ltd. Third Quarter Report 2018
Net cash generated from/used in operating activities -16,935,555.74 -24,462,837.18
2. Cash flows from investing activities:
Proceeds from disinvestment 0.00 10,000,000.00
Investment income
Net proceeds from disposal of fixed assets,
-34,427.35 35,000,000.00
intangible assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other
business units
Cash generated from other investing activities 0.00 240,582.60
Subtotal of cash generated from investing activities -34,427.35 45,240,582.60
Payments for acquisition of fixed assets, intangible
214,550.26 0.00
assets and other long-lived assets
Payments for investments 39,000,000.00 0.00
Net payments for acquisition of subsidiaries and
other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 39,214,550.26 0.00
Net cash generated from/used in investing activities -39,248,977.61 45,240,582.60
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained 75,900,000.00 29,000,000.00
Net proceeds from issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities 75,900,000.00 29,000,000.00
Repayment of borrowings 16,000,000.00 76,469,598.52
Payments for interest and dividends 3,649,220.00 1,659,125.50
Cash used in other financing activities 0.00 1,720,000.00
Sub-total of cash used in financing activities 19,649,220.00 79,848,724.02
Net cash generated from/used in financing activities 56,250,780.00 -50,848,724.02
4. Effect of foreign exchange rate changes on cash
and cash equivalents
5. Net increase in cash and cash equivalents 66,246.65 -30,070,978.60
Add: Cash and cash equivalents, beginning of the
15,360,177.32 33,952,786.37
period
6. Cash and cash equivalents, end of the period 15,426,423.97 3,881,807.77
II Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
Hainan Jingliang Holdings Co., Ltd.
23 October 2018
22
