Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2021-012
HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2020 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 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 position 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”).
Director Qingmei Pingcuo didn’t attend the Board Meeting in person due to a business trip, and authorized
director Guan Ying to attend and vote on her behalf. Other directors attended the Board Meeting for reviewing of
this Report and its summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
□ Applicable √ Not applicable
The Company has no final dividend plan, either in the form of cash or stock.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period :
□ Applicable √ Not applicable
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.
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 Guan Ying Gao Deqiu
15/F, Jing Liang Building, NO. 16 East 15/F, Jing Liang Building, NO. 16 East
Address Third Ring Middle Road, Chaoyang Third Ring Middle Road, Chaoyang
District, Beijing District, Beijing
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
Fax 010-51672010 010-51672010
Tel. 010-51672130 010-51672029
Email address 1124387865@qq.com gaodeqiu_jl@163.com
2. Principal Activities or Products in the Reporting Period
The Company is principally engaged in oils and oilseeds processing and trading, as well as food production. It
runs its oils and oilseeds processing and trading business primarily in Beijing City, Tianjin City and Hebei
Province under the brands of “Gu Chuan”, “Lv Bao”, “Gu Bi” and “Huo Niao”, with the main products being
soybean oil, rapeseed oil, sunflower seed oil and sesame oil and paste, among others. As for its food production
business, it primarily develops, produces and markets snack food and bread under the brands of “Little Prince”,
“MS Dong”, “Jianqiang De Tudou” and “Gu Chuan”, among others, with the main products being potato chips,
cakes and pastries and bread. The snack food business covers all provinces and municipalities in China, while the
bread business focuses on the Beijing-Tianjin-Hebei region. In this regard, the Company is one of the major
suppliers for KFC in North China.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
2020-over-2019
2020 2019 2018
change (%)
Operating revenue 8,741,749,912.11 7,440,286,465.54 17.49% 7,409,124,303.41
Net profit attributable to the listed
184,846,956.70 133,341,925.75 38.63% 167,956,581.15
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 164,037,737.59 104,483,092.09 57.00% 127,425,177.20
exceptional items
Net cash generated from/used in
-246,540,910.08 297,366,794.05 -182.91% 850,167,551.24
operating activities
Basic earnings per share
0.26 0.19 36.84% 0.24
(RMB/share)
Diluted earnings per share
0.26 0.19 36.84% 0.24
(RMB/share)
Weighted average return on equity
7.17% 5.70% 1.47% 7.69%
(%)
Change of 31
31 December
31 December 2020 31 December 2019 December 2020 over
2018
31 December 2019 (%)
Total assets 5,695,504,493.73 5,231,266,600.19 8.87% 4,917,148,996.28
Equity attributable to the listed
2,710,571,543.53 2,406,039,283.87 12.66% 2,272,469,925.43
company’s shareholders
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 1,719,261,111.71 2,031,511,955.92 1,928,342,701.75 3,062,634,142.73
Net profit attributable to the
27,655,045.32 46,107,849.87 40,894,930.95 70,189,130.56
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders 23,730,342.72 44,264,847.23 32,040,014.29 64,002,533.35
before exceptional items
Net cash generated from/used in
328,948,834.32 -141,853,013.56 -273,955,632.37 -159,681,098.47
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs
materially from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of
Number of
preferred
preferred
Number of Number of ordinary shareholders with
shareholders
ordinary shareholders at the resumed voting
71,627 68,899 with resumed 0 0
shareholders at month-end prior to the rights at the
voting rights
the period-end disclosure of this Report month-end prior
at the
to the disclosure
period-end
of this Report
Top 10 shareholders
Shares in pledge or
Shareholdi Total shares frozen
Nature of
Name of shareholder ng held at the Restricted shares held
shareholder Share
percentage period-end Status
s
BEIJING GRAIN GROUP State-owned
39.68% 288,439,561 164,877,598
CO., LTD. legal person
BEIJING STATE-OWNED
CAPITAL OPERATION State-owned
6.67% 48,510,460
AND MANAGEMENT legal person
CENTER
Domestic
WANG YUECHENG natural 5.66% 41,159,887 41,159,887
person
Foreign
LI SHERYN ZHAN MING natural 1.23% 8,939,300
person
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT Other 0.51% 3,684,503
FUND MANAGEMENT
CO., LTD.—GOLD
BUFFALO RUNYING
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
(TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
Domestic
MEI JIANYING natural 0.36% 2,604,203
person
Domestic
ZHANG XIAOXIA natural 0.27% 1,949,250
person
Domestic
WANG XIAOXING natural 0.24% 1,748,400
person
Domestic
TAN WENQIONG natural 0.20% 1,419,700
person
ORIENT SECURITIES Foreign legal
0.19% 1,354,500
（HONG KONG） LIMITED person
① Beijing State-Owned Capital Operation and Management Center owns
100% of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is
Related or acting-in-concert parties among the the controlling shareholder of the Company (a 39.68% holding). ② Wang
shareholders above Yuecheng is a Deputy General Manager of the Company. 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.
Shareholder Wang Xiaoxing holds 1,748,400 shares in the Company through
Shareholders involved in securities margin
his account of collateral securities for margin trading in Soochow Securities
trading (if any)
Co., Ltd.
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company
The State-Owned Assets Supervision and
Administration Commission of the People’s
Government of Beijing Municipality
100%
Beijing State-Owned Capital Operation
and Management Center
100%
Beijing Capital Agribusiness Group Co.,
Ltd.
100%
Beijing Grain Group Co., Ltd.
39.68%
Hainan Jingliang Holdings Co., Ltd.
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
5. Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding
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 the Reporting Period
(1) Overall Performance
The year 2020 saw sudden, perplexing and tremendous changes in macroeconomic conditions. Facing the impact
of the Covid-19 pandemic, the China-United Sates (US) trade war, the economic slowdown and other negative
factors, we withstood the pressure and responded swiftly. We strengthened operation and management while
making unremitting efforts in pandemic control and prevention. As a public company, we explored and analyzed
new means to increase our profitability while strengthening the internal control and regulatory compliance as the
foundation of operational stability and long-term development. Finally, we finished the year with steady growth in
operating performance. For the year under review, the Company recorded operating revenue of RMB8.742 billion,
up 17.49% year on year; a gross profit of RMB285 million, up 9.87% year on year; a net profit attributable to the
listed company’s shareholders of RMB185 million, up 38.63% year on year; and earnings per share of RMB0.26,
up 36.84% year on year. As such, the objectives for the year were successfully accomplished.
(II) Major Results Achieved
1. The Oils and Oilseeds Division: Stable development in a positive direction
The Oils and Oilseeds Division effectively resisted the impact of the China-US trade war and the Covid-19
pandemic by leveraging the advantages of the oils and oilseeds industry chain. The Division recorded a total profit
of RMB136 million during the Reporting Period. Adhering to the operation mode of "Hedging + Basis Trading +
Inventory Rotation" and leveraging its experience in coping with the China-US trade war, Jingliang Tianjin made
science-based analyses and judgments and planned preemptively, finally securing a stable operating profit. The
annual output of soybean oil hit a new record high, exceeding the target set for the year. Adopting a hedging mode,
Jingliang Oils and Oilseeds strengthened the research and development of new product categories and
implemented more rigorous market analysis, focusing on categories with stable demand and small impact from the
pandemic, such as domestic soybean, sunflower seed oil and non-genetically modified rapeseed oil. The annual
sales of oils and oilseeds hit a new record high. Through the trusteeship of Hongjingyuan, Guchuan Edible Oil
innovated the mode of Beijing-Inner Mongolia industry assistance, as the trusteeship is a win-win cooperation
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
between two companies of complementary advantages and the new mode is expected to produce a greater poverty
alleviation effect. In addition, by developing the Group's trade union benefits platform, the Division made all-out
efforts to promote the sales of all categories of products and implement online promotions. Tianweikang
continued to develop its warehousing services platform, strengthened the management of edible oil reserves,
improved the level of warehousing services, improved the inventory rotation efficiency and implemented
emergency stock allocation tasks.
2. The Foods Division: Stable growth
Due to the pandemic-induced sluggish market demand, the Foods Division recorded a total profit of RMB174
million in the Reporting Period. Zhejiang Xiaowangzi actively worked to develop new products and explore new
channels. The 4D Corn Roll, a new product, has been launched on the top three platforms, namely, Be & Cheery,
Lyfen and Three Squirrels. The sales volume has grown significantly. With the "in-store special-shaped island
booth" strategy implemented in Yonghui, RT-Mart, Walmart and other hypermarkets, the average sales per store
has grown significantly. Thanks to the growing sales of new products and stable sales of old products, a good
momentum has been maintained. Taking advantage of the stabilizing domestic situation of the pandemic, Guchuan
Bread increased sales at KFC and Green Tea stores, increasing the proportion of sales at Green Tea stores and
distributors and further optimizing the customer/channel structure.
3. Stable expansion through acquisition and trusteeship
Following the plan of "implement a batch", "improve a batch" and "expand a batch", acquisition and restructuring
were implemented in a layer-by-layer, step-by-step approach. During the Reporting Period, we successfully
acquired the remaining equities of Zhejiang Xiaowangzi. Through this project, we gained experience and laid a
foundation for future acquisition and restructuring projects. We improved the management of the two companies
under the Company's trusteeship, Hongjingyuan and Shanghai Sunlon, by providing standardized guidance and
professional management, improving their corporate governance structures and streamlining their operation
processes. The preset targets for the trusteeships have been achieved.
4. Solid and effective efforts in pandemic control and prevention
We actively responded to the severe challenges posed by the Covid-19 pandemic, implementing targeted control
and preventive actions in a well-planned manner. Promptly responding to the calls from government authorities,
we established a pandemic control and prevention leadership team and a pandemic control and prevention
inspection team, established a pandemic control and prevention system and implemented various pandemic
control and prevention measures in a strictly disciplined and thoroughly planned manner. We actively worked to
use the financial support policies for pandemic relief to reduce the Company's cost of capital.
5. Continuous improvement in management level
First, with the implementation of an online office platform, the power of execution has been improved, better
ensuring the implementation of the Company's policies and plans. Second, a personnel development system has
been established and improved, which has served to promote multi-directional communication and upper-lower
interaction. The Jingliang Holdings Forum was created as a means to improve the overall quality of the
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
Company's middle and senior managers, promote their market-consciousness and share their management
experience. Third, pilot efforts were made to drive regulatory compliance. We investigated our headquarters and
subsidiaries for regulatory compliance batch by batch, reviewed the regulatory compliance policies, liabilities and
risks of our major businesses and updated the checklist of regulatory compliance risks associated with our equity
investments, thereby laying a solid foundation for regulatory compliance and improving the regulatory
compliance management level.
2. Significant Change to Principal Activities in the Reporting Period
□ Yes √ No
3. Product Category Contributing over 10% of Principal Business Revenue or Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Product Gross profit
Operating revenue Operating profit operating operating profit gross profit
category margin
revenue (%) (%) margin (%)
Oils and
7,799,378,959.10 136,231,943.72 4.64% 20.90% 52.85% 0.15%
oilseeds
Food
898,193,522.11 174,173,301.85 29.46% -4.52% -6.77% -2.18%
processing
4. Business Seasonality that Calls for Special Attention
□ Yes √ No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable to the Listed
Company’s Ordinary Shareholders or Their Compositions
√ Applicable □ Not applicable
Net profit attributable to the listed company’s ordinary shareholders increased year on year primarily driven by a
greater processing volume as a result of recovery in market demand, the increase in both revenue and profit due to
a rising profit from the oils pressing business, as well as the acquisition of non-controlling interests, in the current
period.
6. Delisting
□ Applicable √ Not applicable
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Hainan Jingliang Holdings Co., Ltd. Annual Report 2020 (Summary)
7. Matters Related to Financial Reporting
(1) YoY Changes to Accounting Policies, Accounting Estimates or Measurement Methods
√ Applicable □ Not applicable
On 5 July 2017, the Ministry of Finance (MOF) issued the Notice on Revising and Implementing the Accounting
Standards No. 14: Revenues (Caikuai [2017] No. 22). According to the revised version of the accounting
standards and the requirements laid down in the notice of the MOF, the Company started implementing the new
revenue accounting standards on 1 January 2020. According to requirements for the transition from the old to the
new accounting standards, the Company started implementing the new standards on 1 January 2020 but only
adjusted the description and amount of relevant items of the year-beginning financial statements, made no
adjustments to comparable within-period information and made no retrospective adjustments to the financial
statements of the Company's previous fiscal years.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY Changes to the Scope of Consolidated Financial Statements
□ Applicable √ Not applicable
No such cases.
Hainan Jingliang Holdings Co., Ltd.
27 March 2021
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