Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
HAINAN JINGLIANG HOLDINGS CO., LTD.
THIRD QUARTERLY REPORT 2020
October 2020
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee that the contents of this Report and its
summary are true, accurate and complete and free of any misrepresentations, misleading
statements or material omissions, and collectively and individually accept legal responsibility
for such contents.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Li Shaoling, 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
truthful, 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.
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
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
30 September 2020 31 December 2019 Change (%)
Total assets (RMB) 6,057,365,761.06 5,231,266,600.19 15.79%
Equity attributable to the listed
2,645,832,412.43 2,406,039,283.87 9.97%
company’s shareholders (RMB)
Q3 2020 YoY change (%) Q1-Q3 2020 YoY change (%)
Operating revenue (RMB) 1,928,342,701.75 5.67% 5,679,115,769.38 11.18%
Net profit attributable to the listed
40,894,930.95 20.84% 114,657,826.14 34.34%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 32,040,014.29 13.31% 100,035,204.24 44.00%
exceptional gains and losses (RMB)
Net cash generated from/used in
-273,955,632.37 -221.14% -86,859,811.61 -119.44%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.06 20.00% 0.16 33.33%
Diluted earnings per share (RMB/share) 0.06 20.00% 0.16 33.33%
Weighted average return on equity (%) 1.56% 5.41% 4.65% 26.02%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2020 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
-30,020.88
allowance write-offs)
Government grants through profit or loss (exclusive of government grants
given in the Company’s ordinary course of business at fixed quotas or 7,543,633.15
amounts as per the government’s uniform standards)
Gain or loss on fair-value changes on held-for-trading and derivative
financial assets and liabilities & income from disposal of held-for-trading and
13,538,448.19
derivative financial assets and liabilities and other debt investments
(exclusive of the effective portion of hedges that arise in the Company’s
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
ordinary course of business)
Non-operating income and expense other than the above -727,186.58
Less: Income tax effects 5,293,637.02
Non-controlling interests effects (net of tax) 408,614.96
Total 14,622,621.90 --
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.
II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of the
Reporting Period
1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preference
Number of ordinary shareholders 79,532 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Nature of Shareholding Restricted Shares in pledge or frozen
Name of shareholder Total shares held
shareholder percentage shares held Status Shares
BEIJING GRAIN GROUP State-owned
39.68% 288,439,561 164,877,598
CO., LTD. corporation
BEIJING STATE-OWNED
State-owned
CAPITAL OPERATION AND 6.67% 48,510,460 48,510,460
corporation
MANAGEMENT CENTER
Domestic
WANG YUECHENG 5.66% 41,159,887 41,159,887
individual
Foreign
LI SHERYN ZHAN MING 1.23% 8,941,300 0
individual
CHINA DEVELOPMENT State-owned
0.94% 6,849,384 0
BANK CAPITAL CO., LTD. corporation
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT
FUND MANAGEMENT
Other 0.51% 3,684,503 0
CO., LTD.—GOLD
BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
MEI JIANYING Domestic 0.36% 2,604,203 0
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
individual
Domestic
ZHANG XIAOXIA 0.27% 1,949,250 0
individual
Domestic
WANG XIAOXING 0.24% 1,748,400 0
individual
Domestic
ZHU PENG 0.22% 1,577,900 0
individual
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
RMB-denominate
BEIJING GRAIN GROUP CO., LTD. 123,561,963 123,561,963
d ordinary share
Domestically
LI SHERYN ZHAN MING 8,941,300 listed foreign 8,941,300
share
CHINA DEVELOPMENT BANK CAPITAL RMB-denominate
6,849,384 6,849,384
CO., LTD. d ordinary share
GOLD BUFFALO RUNYING (TIANJIN)
EQUITY INVESTMENT FUND RMB-denominate
MANAGEMENT CO., LTD.—GOLD 3,684,503 3,684,503
BUFFALO RUNYING (TIANJIN) EQUITY d ordinary share
INVESTMENT FUND (L.P.)
RMB-denominate
MEI JIANYING 2,604,203 2,604,203
d ordinary share
Domestically
ZHANG XIAOXIA 1,949,250 listed foreign 1,949,250
share
RMB-denominate
WANG XIAOXING 1,748,400 1,748,400
d ordinary share
RMB-denominate
ZHU PENG 1,577,900 1,577,900
d ordinary share
Domestically
ORIENT SECURITIES (HONG KONG)
1,354,500 listed foreign 1,354,500
LIMITED
share
FOSHAN SHUNDE XIHUA RMB-denominate
1,144,000 1,144,000
ELECTRONICS CO., LTD. d ordinary share
① 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
Related or acting-in-concert parties among the shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy
shareholders above General Manager of the Company. Apart from the aforesaid, the Company does not
know whether there are any other related parties or acting-in-concert parties among
the top 10 shareholders.
Top 10 shareholders engaged in securities ① Shareholder Wang Xiaoxing held 1,748,400 shares in the Company through his
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
margin trading (if any) account of collateral securities for margin trading in Soochow Securities Co., Ltd.
② Shareholder Zhu Peng held 1,315,200 shares in the Company through his
account of collateral securities for margin trading in China Merchants 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.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Derivative financial assets increased primarily driven by an increase in deposits for futures contracts in the
current period.
2. Prepayments increased primarily driven by an increase in prepayments to suppliers due to new soy bean
purchases for the oils and oilseeds business in the current period.
3. Other non-current assets increased primarily driven by new bank deposits with a term of over one year in the
current period.
4. Short-term borrowings increased primarily driven by bank loan raised for new soy bean purchases for the oils
and oilseeds business in the current period.
5. R&D expense increased primarily driven by the reclassification of certain R&D personnel’s salaries from
administrative expense to R&D expense in the current period.
6. Return on investment increased primarily driven by increases in return on joint venture investments and in
wealth management income.
7. Gain on fair value changes decreased primarily driven by changes in the value of futures contracts.
8. Net profit increased primarily driven by year-on-year increases in both production and sales volume in the oils
pressing business due to a strong market in the current period, boosting revenue and gross profit.
9. Net cash generated from operating activities decreased primarily driven by a year-on-year increase in soy bean
purchases for the oils pressing business in the current period.
10. Net cash generated from financing activities increased primarily driven by bank loan raised for new soy bean
purchases for the oils and oilseeds business in the current period.
II Progress, Influence and Solutions in respect of Significant Events
□ Applicable √ Not applicable
Progress of any share repurchase:
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Relevant Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Financial Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/los
Cumulat
s on
Account ive
fair-valu Purchas Sold in Gain/los
Type of Code of Name of Initial ing Opening fair-valu Closing
e ed in the the s in the Account Funding
securitie securitie securitie investm measure carrying e carrying
changes current current current ing title source
s s s ent cost ment amount changes amount
in the period period period
method through
current
equity
period
Cost 289,900 289,900 30,767. Self-fun
Other 204001 GC001 0.00 Other
method ,000.00 ,000.00 16 ded
Cost 40,000, 40,000, 34,619. Self-fun
Other 204003 GC003 0.00 Other
method 000.00 000.00 73 ded
Cost 50,000, 50,000, Self-fun
Other 204007 GC007 0.00 0.00 Other
method 000.00 000.00 ded
379,900 329,900 65,386. 50,000,
Total 0.00 -- 0.00 0.00 0.00 -- --
,000.00 ,000.00 89 000.00
Disclosure date of the
announcement on the
7 March 2020
Board’s approval of
securities investments
Disclosure date of the
announcement on the
general meeting’s approval
of securities investments (if
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
any)
2. Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Closing investment Actual
Closing
Type of derivative financial amount as % of the gain/loss in
Start date End date investment
instrument Company’s closing the current
amount
net assets period
Agricultural commodity
1 January 2020 30 September 2020 27,395.28 10.35% 2,756.59
futures
Forex forwards 1 January 2020 30 September 2020 42,364.52 16.01% -1,922.48
Forex forwards 14 September 2020 30 November 2020 802.8 0.30% 0
Forex forwards 16 September 2020 31 December 2020 858 0.32% 0
Forex forwards 17 September 2020 31 December 2020 132 0.05% 0
Forex forwards 25 September 2020 31 December 2020 896.4 0.34% 0
Total -- -- 72,449 27.37% 834.11
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of the 7 March 2020
announcement on the Board’s
approval of investments in
28 March 2020
derivative financial
instruments (if any)
Disclosure date of the
announcement on the general
meeting’s approval of 18 April 2020
investments in derivative
financial instruments (if any)
The Company’s conduction of hedging business is not aimed at speculation, but mainly to
Risk analysis and control
effectively avoid the impact of raw material price fluctuation on the Company. However, there will
measures in respect of
be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures
derivative investments held in
market changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be
the Reporting Period
correspondingly brought because the futures trading adopts margin and marking-to-market system;
(including but not limited to
3. Internal control risk: there may be risks due to imperfect internal control system for the high
market risk, liquidity risk,
expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to
credit risk, operational risk,
incomplete computer systems. The Company adopts following risk control measures: 1. Matching
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
legal risk, etc.) the hedging business with the Company’s production and operation so as to maximally reduce the
price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business,
strictly control the hedging fund scale and reasonably plan and use margins; 3. Management System
for Commodity Futures Trading is formulated based on actual situation of the Company and
pursuant to governing stipulations of Guidelines for Standard Operation of Companies Listed in
Shenzhen Stock 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
Management System for Commodity Futures Trading; 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 the 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)
Significant changes in
accounting policies and
specific accounting principles
adopted for derivative None
investments in the Reporting
Period compared to the last
reporting period
1. Opinion of independent directors on the Proposal on 2020 Futures Hedging Plan of Jingliang
(Tianjin) Grain and Oil Industry Co., Ltd. and Beijing Jingliang Oils Co., Ltd.: after check, the
Company carried out the business of futures hedging based on normal production and management,
relying on specific business. Under the premise of ensuring normal production and management, the
Company used futures hedging tools to avoid the adverse impacts on the Company’s operation from
the large price fluctuation of raw materials and products, which is not detrimental to the interests of
the Company and all other shareholders, especially minority shareholders. At the same time, the
Opinion of independent
Company formulated relevant systems, and specific operating instructions for the business of
directors on derivative
futures hedging through strengthening internal control and implementing risk prevention measures.
investments and risk control
It is agreed that the Company and its subsidiaries will continue to conduct futures hedging business
according to the relevant regulations.
2. Opinion of independent directors on the Proposal on Conducting Foreign Exchange Derivatives
Trading Business by the Company and Majority-owned Subsidiaries: after check, 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 after verification. Based on
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
normal production and operation, the Company uses foreign exchange derivatives instruments to
reduce exchange rate risks and finance costs, and control business risks. There is no harm to the
interests of 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, and submit to the general meeting for
deliberation.
V Progress of Projects Financed with Raised Funds
√ Applicable □ Not applicable
The Company’s projects financed with raised funds are the intermediary agency fee and transaction tax and fee
project, the technological R&D centre project, and the channel and brand development project. The intermediary
agency fee and transaction tax and fee project has been completed, while the other two projects are in a stage of
adjustment.
VI 2020 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well as
explanation of why:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Bank’s wealth
Self-funded 35,330 8,830 0
management product
Broker’s wealth
Idle raised funds 38,700 28,000 0
management product
Total 74,030 36,830 0
High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
no principal protection:
√ Applicable □ Not applicable
Unit: RMB’0,000
Summ
Type Recov
ary
of Actual ery of Throu
Refere Any and
wealt Invest Expect gain/lo the Impair gh
Way nce plan index
Type h Fundi ment ed ss in gain/lo ment prescri
Princi Start End of annual for to
Trustee of mana ng with return the ss in allowa bed
pal date date payba ized further more
trustee geme source princi (if Report the nce (if proced
ck rate of transa infor
nt pal any) ing Report any) ures
return ctions matio
produ Period ing or not
n (if
ct Period
any)
Anno
Payba uncem
ck of ent
princi No.
China Inco 22 As
Idle 19 pal 2020-
Securitie me Februa contra Unred
Broker 28,000 raised Augus with 2.95% 0 0 Yes Yes 049
s Co., certifi ry ctually eemed
funds t 2020 interes on
Ltd. cate 2020 agreed
t upon www.
maturi cninfo
ty .com.c
n
Total 28,000 -- -- -- -- -- -- 0 0 -- -- -- --
Wealth management transactions with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Hainan Jingliang Holdings Co., Ltd.
30 September 2020
Unit: RMB
Item 30 September 2020 31 December 2019
Current assets:
Monetary assets 720,149,456.50 557,168,512.39
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 121,300,000.00 161,300,000.00
Derivative financial assets 273,952,800.00 88,792,254.00
Notes receivable
Accounts receivable 89,221,674.32 80,743,986.81
Receivables financing
Prepayments 636,843,733.07 138,379,800.10
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 19,439,812.76 19,220,097.34
Including: Interest receivable 1,854,761.12 3,927,438.90
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1,308,878,985.35 1,412,755,661.65
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 668,986,307.59 560,297,233.13
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Total current assets 3,838,772,769.59 3,018,657,545.42
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 208,701,333.79 198,301,333.79
Investments in other equity
20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment property 22,927,669.32 31,781,350.74
Fixed assets 1,143,126,883.39 1,210,450,340.22
Construction in progress 17,745,104.13 17,876,177.78
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 357,094,187.52 368,170,434.38
Development costs
Goodwill 191,394,422.51 191,394,422.51
Long-term prepaid expense 20,325,416.09 21,026,628.97
Deferred income tax assets 7,277,974.72 2,603,066.38
Other non-current assets 230,000,000.00 151,005,300.00
Total non-current assets 2,218,592,991.47 2,212,609,054.77
Total assets 6,057,365,761.06 5,231,266,600.19
Current liabilities:
Short-term borrowings 2,070,991,982.00 1,329,238,701.60
Borrowings from the central bank
Loans from other banks and financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 68,346,520.70
Accounts payable 151,338,619.76 130,568,413.43
Advances from customers 481,119,461.41
Contract liabilities 427,501,912.35
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Financial assets sold under
repurchase agreements
Customer deposits and deposits from
other banks and financial institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 11,721,759.04 25,192,583.58
Taxes and levies payable 37,554,687.45 47,842,621.41
Other payables 124,220,692.02 96,171,396.23
Including: Interest payable 21,686,584.31 24,604,524.69
Dividends payable 11,013,302.88 11,013,302.88
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 28,340,190.00
Total current liabilities 2,920,016,363.32 2,110,133,177.66
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
5,720,716.87 5,730,662.87
payable
Provisions
Deferred income 70,249,608.46 71,518,169.27
Deferred income tax liabilities 45,560,808.12 52,788,949.62
Other non-current liabilities
Total non-current liabilities 121,531,133.45 130,037,781.76
Total liabilities 3,041,547,496.77 2,240,170,959.42
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Owners’ equity:
Share capital 726,950,251.00 685,790,364.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 1,679,833,419.67 1,595,672,048.19
Less: Treasury stock
Other comprehensive income 81,672.08 267,628.14
Specific reserve
Surplus reserves 122,122,436.98 122,122,436.98
General reserve
Retained earnings 116,844,632.70 2,186,806.56
Total equity attributable to owners of
2,645,832,412.43 2,406,039,283.87
the Company as the parent
Non-controlling interests 369,985,851.86 585,056,356.90
Total owners’ equity 3,015,818,264.29 2,991,095,640.77
Total liabilities and owners’ equity 6,057,365,761.06 5,231,266,600.19
Legal representative: Li Shaoling 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 2020 31 December 2019
Current assets:
Monetary assets 17,409,976.16 5,606,837.37
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 42,510.00 42,510.00
Receivables financing
Prepayments 467,482.14 532,843.92
Other receivables 19,277,199.41 12,612,756.48
Including: Interest receivable
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Dividends receivable
Inventories 4,824,035.45 4,824,035.45
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 2,410,159.49 2,114,765.22
Total current assets 44,431,362.65 25,733,748.44
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,626,437,846.24 2,377,420,527.10
Investments in other equity
20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment property 5,249,530.28 5,476,357.73
Fixed assets 2,912,507.86 3,028,013.69
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 22,350.00 94,800.66
Development costs
Goodwill
Long-term prepaid expense 15,723.16 86,477.92
Deferred income tax assets
Other non-current assets
Total non-current assets 2,654,637,957.54 2,406,106,177.10
Total assets 2,699,069,320.19 2,431,839,925.54
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Accounts payable
Advances from customers 38,896.41
Contract liabilities 38,896.41
Employee benefits payable 275,537.37 480,445.28
Taxes and levies payable 1,017,410.80 1,709,752.97
Other payables 339,863,112.10 503,550,996.94
Including: Interest payable 21,082,795.47 21,082,795.47
Dividends payable 3,213,302.88 3,213,302.88
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 341,194,956.68 505,780,091.60
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 341,194,956.68 505,780,091.60
Owners’ equity:
Share capital 726,950,251.00 685,790,364.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 2,381,244,900.85 2,173,387,468.71
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Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Less: Treasury stock
Other comprehensive income
Specific reserve
Surplus reserves 109,487,064.39 109,487,064.39
Retained earnings -859,807,852.73 -1,042,605,063.16
Total owners’ equity 2,357,874,363.51 1,926,059,833.94
Total liabilities and owners’ equity 2,699,069,320.19 2,431,839,925.54
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2020 Q3 2019
1. Revenues 1,928,342,701.75 1,824,886,529.92
Including: Operating revenue 1,928,342,701.75 1,824,886,529.92
Interest income
Insurance premium income
Fee and commission
income
2. Costs and expenses 1,896,429,445.83 1,764,674,515.46
Including: Cost of sales 1,799,452,877.93 1,652,610,736.57
Interest expense
Fee and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 5,605,278.41 5,490,323.70
Selling expense 43,982,894.87 50,699,252.02
Administrative expense 43,872,344.26 47,487,578.68
R&D expense 3,662,915.86 703,632.42
Finance costs -146,865.50 7,682,992.07
Including: Interest
1,944,727.32 13,489,855.34
expense
20
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Interest
2,266,888.66 5,935,578.64
income
Add: Other income 4,209,110.12 1,908,875.68
Return on investment (“-” for loss) 9,660,149.23 1,089,429.46
Including: Share of profit or loss
3,457,423.01
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
18,961,468.85 -512,728.81
for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for loss) 40,000.00 1,193.30
Asset disposal income (“-” for
-30,020.88 -733,109.31
loss)
3. Operating profit (“-” for loss) 64,753,963.24 61,965,674.78
Add: Non-operating income 162,376.14 539,843.22
Less: Non-operating expense 151,689.36 1,127,254.62
4. Gross profit (“-” for loss) 64,764,650.02 61,378,263.38
Less: Income tax expense 19,076,844.38 15,853,529.76
5. Net profit (“-” for net loss) 45,687,805.64 45,524,733.62
5.1 By operating continuity
5.1.1 Net profit from continuing
45,687,805.64 45,524,733.62
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
40,894,930.95 33,840,967.80
owners of the Company as the parent
5.2.1 Net profit attributable to
4,792,874.69 11,683,765.82
non-controlling interests
6. Other comprehensive income, net of
-292,687.90 190,287.74
tax
Attributable to owners of the Company
-292,687.90 190,287.74
as the parent
21
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
-292,687.90 190,287.74
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
other debt investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for other debt investments
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from the
translation of foreign
-292,687.90 190,287.74
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income 45,395,117.74 45,715,021.36
Attributable to owners of the Company
40,602,243.05 34,031,255.54
as the parent
Attributable to non-controlling
4,792,874.69 11,683,765.82
interests
8. Earnings per share
8.1 Basic earnings per share 0.06 0.05
8.2 Diluted earnings per share 0.06 0.05
22
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB , with the amount for the same period of last year being RMB .
Legal representative: Li Shaoling 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 2020 Q3 2019
1. Operating revenue 657,313.52 0.00
Less: Cost of sales 0.00 0.00
Taxes and levies 98,534.78 33,908.40
Selling expense
Administrative expense 10,108,313.15 10,567,161.77
R&D expense
Finance costs -7,460.77 4,064,326.05
Including: Interest expense 4,067,234.62
Interest income 8,657.77 3,054.57
Add: Other income
Return on investment (“-” for
206,002,223.87
loss)
Including: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 196,460,150.23 -14,665,396.22
23
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Add: Non-operating income 29,508.17
Less: Non-operating expense
3. Gross profit (“-” for loss) 196,489,658.40 -14,665,396.22
Less: Income tax expense
4. Net profit (“-” for net loss) 196,489,658.40 -14,665,396.22
4.1 Net profit from continuing
196,489,658.40 -14,665,396.22
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 caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
other debt investments
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for other debt investments
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
24
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
5.2.7 Other
6. Total comprehensive income 196,489,658.40 -14,665,396.22
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 2020 Q1~Q3 2019
1. Revenues 5,679,115,769.38 5,108,164,255.31
Including: Operating revenue 5,679,115,769.38 5,108,164,255.31
Interest income
Insurance premium income
Fee and commission
income
2. Costs and expenses 5,471,569,621.49 5,018,488,742.07
Including: Cost of sales 5,155,654,135.99 4,693,289,477.71
Interest expense
Fee and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 14,256,389.78 17,090,887.34
Selling expense 150,624,014.01 151,930,390.29
Administrative expense 121,904,630.55 128,785,807.05
R&D expense 6,466,632.88 1,234,698.42
Finance costs 22,663,818.28 26,157,481.26
Including: Interest
18,919,769.38 36,471,148.41
expense
Interest
7,640,376.87 10,056,207.22
income
25
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Add: Other income 9,256,058.96 11,779,973.90
Return on investment (“-” for loss) 26,356,075.22 10,268,731.55
Including: Share of profit or loss
10,405,201.69 4,824,933.21
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-57,915,198.40 25,645,552.41
for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for loss) 40,000.00 -196,502.26
Asset disposal income (“-” for
-30,020.88 11,264,409.09
loss)
3. Operating profit (“-” for loss) 185,253,062.79 148,437,677.93
Add: Non-operating income 851,815.96 2,256,286.81
Less: Non-operating expense 1,570,361.13 1,949,673.24
4. Gross profit (“-” for loss) 184,534,517.62 148,744,291.50
Less: Income tax expense 43,538,676.24 37,975,305.88
5. Net profit (“-” for net loss) 140,995,841.38 110,768,985.62
5.1 By operating continuity
5.1.1 Net profit from continuing
140,995,841.38 110,768,985.62
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
114,657,826.14 85,351,872.21
owners of the Company as the parent
5.2.1 Net profit attributable to
26,338,015.24 25,417,113.41
non-controlling interests
6. Other comprehensive income, net of
-185,956.06 241,232.26
tax
Attributable to owners of the Company
-185,956.06 241,232.26
as the parent
6.1 Items that will not be
reclassified to profit or loss
26
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
-185,956.06 241,232.26
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
other debt investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for other debt investments
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from the
translation of foreign
-185,956.06 241,232.26
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income 140,809,885.32 111,010,217.88
Attributable to owners of the Company
114,471,870.08 85,593,104.47
as the parent
Attributable to non-controlling
26,338,015.24 25,417,113.41
interests
8. Earnings per share
8.1 Basic earnings per share 0.16 0.12
8.2 Diluted earnings per share 0.16 0.12
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB , with the amount for the same period of last year being RMB .
27
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Legal representative: Li Shaoling Head for financial affairs: Guan Ying
Head of the financial department: Liu Quanli
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2020 Q1~Q3 2019
1. Operating revenue 1,033,922.69 0.00
Less: Cost of sales 0.00 0.00
Taxes and levies 101,234.78 102,985.20
Selling expense
Administrative expense 23,632,368.27 24,078,567.37
R&D expense
Finance costs -12,505.93 11,629,290.32
Including: Interest expense 11,638,818.11
Interest income 16,908.21 14,138.40
Add: Other income 50,313.02
Return on investment (“-” for
206,400,562.23
loss)
Including: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for
-4,344.16
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 183,763,700.82 -35,815,187.05
Add: Non-operating income 33,509.61
Less: Non-operating expense 1,000,000.00 469,440.00
3. Gross profit (“-” for loss) 182,797,210.43 -36,284,627.05
28
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Less: Income tax expense
4. Net profit (“-” for net loss) 182,797,210.43 -36,284,627.05
4.1 Net profit from continuing
182,797,210.43 -36,284,627.05
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 caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
other debt investments
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for other debt investments
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 182,797,210.43 -36,284,627.05
7. Earnings per share
29
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
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 2020 Q1~Q3 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities
6,130,501,668.95 5,561,175,595.39
and rendering of services
Net increase in customer deposits and
deposits from other banks and financial
institutions
Net increase in borrowings from the
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
Interest, fees and commissions
received
Net increase in loans from other
banks and financial institutions
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax and levy rebates 13,983,951.32 8,511,133.41
Cash generated from other operating
981,039,681.44 1,018,233,943.12
activities
Subtotal of cash generated from
7,125,525,301.71 6,587,920,671.92
operating activities
Payments for commodities and
5,873,912,623.39 4,955,576,528.87
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and other banks and financial
institutions
30
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Payments for claims on original
insurance contracts
Net increase in loans to other banks
and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 231,484,488.18 225,542,724.31
Taxes and levies paid 141,181,130.25 113,872,002.20
Cash used in other operating
965,806,871.50 846,183,684.46
activities
Subtotal of cash used in operating
7,212,385,113.32 6,141,174,939.84
activities
Net cash generated from/used in
-86,859,811.61 446,745,732.08
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 2,021,317,255.39 1,451,236,691.57
Return on investment 13,741,859.72 24,608,980.29
Net proceeds from the disposal of
fixed assets, intangible assets and other 128,368.58 69,211.68
long-lived assets
Net proceeds from the disposal of
5,000,000.00
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
2,040,187,483.69 1,475,914,883.54
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 22,088,912.56 41,645,608.65
long-lived assets
Payments for investments 2,351,915,689.04 1,921,580,563.05
Net increase in pledged loans granted
Net payments for the acquisition of
104,730,266.66
subsidiaries and other business units
Cash used in other investing
578,813.60 752.21
activities
Subtotal of cash used in investing
2,479,313,681.86 1,963,226,923.91
activities
Net cash generated from/used in
-439,126,198.17 -487,312,040.37
investing activities
3. Cash flows from financing activities:
31
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised 2,371,670,609.65 1,633,175,871.20
Cash generated from other financing
activities
Subtotal of cash generated from
2,371,670,609.65 1,633,175,871.20
financing activities
Repayment of borrowings 1,639,317,329.25 1,929,842,758.45
Interest and dividends paid 34,506,528.74 75,821,378.17
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
1,673,823,857.99 2,005,664,136.62
activities
Net cash generated from/used in
697,846,751.66 -372,488,265.42
financing activities
4. Effect of foreign exchange rates
-6,809,062.59 3,782,563.49
changes on cash and cash equivalents
5. Net increase in cash and cash
165,051,679.29 -409,272,010.22
equivalents
Add: Cash and cash equivalents,
555,097,777.21 867,870,016.78
beginning of the period
6. Cash and cash equivalents, end of the
720,149,456.50 458,598,006.56
period
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2020 Q1~Q3 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services
Tax and levy rebates 200.00 1,800.00
Cash generated from other operating
57,136,167.69 33,566,371.69
activities
Subtotal of cash generated from
57,136,367.69 33,568,171.69
operating activities
Payments for commodities and
26,731.99 25,453.09
services
32
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Cash paid to and for employees 16,823,531.12 17,908,969.70
Taxes and levies paid 350,168.29 105,317.14
Cash used in other operating
20,396,962.02 52,051,442.98
activities
Subtotal of cash used in operating
37,597,393.42 70,091,182.91
activities
Net cash generated from/used in
19,538,974.27 -36,523,011.22
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment 205,893,687.32
Net proceeds from the disposal of
fixed assets, intangible assets and other
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
205,893,687.32 0.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 158,787.62 187,564.80
long-lived assets
Payments for investments 1,780,563.05
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
158,787.62 1,968,127.85
activities
Net cash generated from/used in
205,734,899.70 -1,968,127.85
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 4,000,000.00 28,700,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
4,000,000.00 28,700,000.00
financing activities
Repayment of borrowings 215,400,000.00
Interest and dividends paid
33
Hainan Jingliang Holdings Co., Ltd. Third Quarterly Report 2020
Cash used in other financing
activities
Subtotal of cash used in financing
215,400,000.00
activities
Net cash generated from/used in
-211,400,000.00 28,700,000.00
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash
13,873,873.97 -9,791,139.07
equivalents
Add: Cash and cash equivalents,
3,536,102.19 13,597,659.66
beginning of the period
6. Cash and cash equivalents, end of the
17,409,976.16 3,806,520.59
period
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the New
Accounting Standards Governing Revenue and Leases
□ Applicable √ Not applicable
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020
of the New Accounting Standards Governing Revenue and Leases
□ Applicable √ Not applicable
III 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.
24 October 2020
34
