Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary)
Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2019-054
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2019 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2019 Semi-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 condition and future development
plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary
on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All the Company’s Directors have attended the Board meeting for the review of this Report and its summary.
This Summary has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
Part II Key Corporate Information
1. Stock Profile
Stock name JLKG, JL-B Stock code 000505, 200505
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Zhao Yinhu
Jing Liang Building, 16 East Third Ring
Office address M iddle Road, Chaoyang District, Beijing
Tel. 010-51672029
E-mail address 593374748@qq.com
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary)
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2019 H1 2018 Change (%)
Operating revenue (RM B) 3,283,277,725.39 3,639,625,979.41 -9.79%
Net profit attributable to the listed
51,510,904.41 59,918,995.68 -14.03%
company’s shareholders (RM B)
Net profit attributable to the listed
company’s shareholders before exceptional 41,194,473.59 57,359,036.51 -28.18%
gains and losses (RM B)
Net cash generated from/used in operating
220,592,294.21 45,694,542.88 382.75%
activities (RM B)
Basic earnings per share (RM B/share) 0.08 0.09 -11.11%
Diluted earnings per share (RM B/share) 0.08 0.09 -11.11%
Weighted average return on equity (%) 2.24% 2.73% -0.49%
30 June 2019 31 December 2018 Change (%)
Total assets (RMB) 5,173,875,154.65 4,917,148,996.28 5.22%
Equity attributable to the listed company ’s
2,324,031,774.36 2,272,469,925.43 2.27%
shareholders (RM B)
3. Shareholders and Their Shares at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders 40,642 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Nature of Shareholding Restricted Pledged or frozen shares
Name of shareholder Number of shares
shareholder percentage shares Status Shares
BEIJING GRAIN GROUP State-owned
42.06% 288,439,561 164,877,598
CO., LTD. legal person
BEIJING STATE-OWNED
State-owned
CAPITAL OPERATION AND 7.07% 48,510,460 48,510,460
legal person
MANAGEM ENT CENTER
CHINA DEVELOPM ENT State-owned
2.97% 20,393,051 0
BANK CAPITAL CO., LTD. legal person
Foreign natural
LI SHERYN ZHAN M ING 2.69% 18,443,600 0
person
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTM ENT
FUND MANAGEM ENT
Other 2.20% 15,116,472 0
CO., LTD.—GOLD
BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTM ENT FUND (L.P.)
Domestic
M EI JIANYING 0.38% 2,604,203 0
natural person
Domestic
HU TIANGAO 0.34% 2,356,052 0
natural person
Domestic
ZHANG XIAOXIA 0.28% 1,949,250 0
natural person
Domestic
WANG XIAOXING 0.25% 1,742,700 0
natural person
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary)
Domestic
WANG HANGYI 0.24% 1,666,000 0
natural person
Beijing State-Owned Capital Operation and M anagement Center owns 100%
ownership of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd.
Connected or acting-in-concert parties among
owns 42.06% shares of the company.. Apart from that, the Company does not
shareholders above
know whether there are any other related parties or acting-in-concert parties
among the top 10 shareholders.
1. Shareholder Wang Xiaoxing holds 1,742,700 shares in the Company through
his account of collateral securities for margin trading in Soochow Securities Co.,
Ltd.
2. Shareholder Hu Tiangao holds 338,000 shares in the Company through his
account of collateral securities for margin trading in Zheshang Securities Co.,
Shareholders conducting margin trading (if any) Ltd., and 2,018,052 shares in the Company through his ordinary securities
account.
3. Shareholder Wang Hangyi holds 333,000 shares in the Company through his
account of collateral securities for margin trading in Zheshang Securities Co.,
Ltd., and 1,333,000 shares in the Company through his ordinary securities
account.
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Numbers of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue
before the date of this Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
(1) Overall Performance
In the first half of 2019, the company faces a serious operating enviroment. On one hand, the oils and oilseeds
division of the Company took a heavier hit from the China-U.S trade war, with tough operating desicions and
increasing operating cost. On the another hand, as for the African swine fever (ASF), SBM market demand is
weak, which directly impact on the performance of oils and oilseed division with relatively low sales. For this
period, the Company recorded operating revenue of RMB3,283 million, down 9.79% year-on-year; and profits of
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary)
RMB87.37 million, representing a 20.25% decline from a year ago. By operating division, the food division
reported operating revenue of RMB452 million (a year-on-year growth of 7.60%) and profits of RMB88.99
million (a 31.84% year-on-year expansion); and the oils and oilseeds divis ion generated operating revenue of
RMB2,831 million (an 11.61% year-on-year decrease) and profits of RMB9.18 million (an 86.62% year-on-year
decrease).
(2) Performance of the Oils and Oilseeds Division
With effect on the China-U.S. trade war and ASF, especially oil crushing business,the Company had to turn to
imports from South America and reserved soybeans for raw materials for its oils pressing business due to the trade
war. Meanwhile, the decreasing domestic prices of soybean oil and meal severely squeezed profit of the oils
processing business and caused a loss in this business, which had a direct impact on the performanc e of the oils
and oilseeds division. Sale of oils in small packages and oils and oilseeds trading progressed steadily as planned
by the Board of the Company at the beginning of the year, with stable sales volumes of high added value products
such as sunflower seed oil, camelina seed oil, olive oil and non-GMO soybean oil, as well as a further optimized
product mix.
(3) Performance of the Food Production Division
The food production division achieved a profit of RMB88.99 million, increasing 31.84% year -on-year despite the
continuous influx of strategic competing products and the increased competition in the retail sales market,
maintaining a steady development momentum. The snack food business adhered to the “differentiated asymmetric
competing strategy”, deepened the model of “professional production + cultural creativity + Internet”, and made
great effort on the strategy of quality products and product transitions. During the Reporting Period, this business
realized operating revenue of RMB405 million, increasing 4.80% year-on-year, and a profit of RMB85.91 million,
increasing 30.32% year-on-year. The baking business focused on expanding custom and branded products to keep
pace with market demand. During the Reporting Period, this business realized operating revenue of RMB48.02
million, increasing 38.94% year-on-year, and a profit of RMB3.08 million, increasing 97.47% year-on-year.
(4) Performance of the Land Restoration Division
The Company is currently engaged in two land restoration projects, namely, the Jiangsu Xinyi Yaowan Town
project and the Tangshan Caofeidian project. After the ownership change, the Xinyi Yaowan Town project started
a new round of research and analysis on the project planning. The Tangshan Caofeidian project went on smoothly.
Currently in the construction stage, this project is expected to include another 1,183 mu of farmland.
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last
Accounting Period
√ Applicable □ Not applicable
① The Ministry of Finance issued from 31 March 2017 the revised versions of certain accounting standards,
including the Accounting Standard No. 22 for Business Enterprises—Recognition and Measurement of Financial
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Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2019 (Summary)
Instruments (CK [2017] No. 7), the Accounting Standard No. 23 for Business Enterprises —Transfer of Financial
Assets (CK [2017] No. 8), the Accounting Standard No. 24 for Business Enterprises —Hedge Accounting (CK
[2017] No. 9), and the Accounting Standard No. 37 for Business Enterprises—Presentation of Financial
Instruments (CK [2017] No. 14), which were required to be applied, from 1 January 2019, to enterprises listed
domestically in China.
② The Ministry of Finance issued in May 2019 the revised versions of the Accounting Standard No. 7 for
Bus iness Enterprises—Exchange of Non-Monetary Assets (CK [2019] No. 8) and the Accounting Standard No. 12
for Business Enterprises—Debt Restructuring (CK [2019] No. 9), which were required to be applied, from 10 and
17 June 2019 respectively, to enterprises adopting China’s Accounting Standards for Business Enterprises.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
√ Applicable □ Not applicable
As reviewed by the 27th meeting of the 8th Board of the Company, the Company’s wholly-owned subsidiary
Beijing Jingliang Food Co., Ltd. was agreed to incorporate Beijing Jingliang Gu Bi Oils Co., Ltd. with RMB50
million. Beijing Jingliang Gu Bi Oils Co., Ltd. was registered with the industrial and commercial administration
on 7 May 2019 and therefore included in the consolidated financial statements of the Reporting Period.
Hainan Jingliang Holdings Co., Ltd.
17 August 2019
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