Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) Stock Code: 000505, 200505 Stock Name: JLKG, JL-B Announcement No. 2021-025 HAINAN JINGLIANG HOLDINGS CO., LTD. FIRST QUARTERLY REPORT 2021 (SUMMARY) 1 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) 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 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. 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 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. First Quarterly Report 2021 (Summary) 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 Q1 2021 Q1 2020 Change (%) Operating revenue (RMB) 2,338,783,061.35 1,719,261,111.71 36.03% Net profit attributable to the listed 36,585,077.36 27,655,045.32 32.29% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before exceptional 32,694,567.66 23,730,342.72 37.78% items (RMB) Net cash generated from/used in operating 274,757,224.16 328,948,834.32 -16.47% activities (RMB) Basic earnings per share (RMB/share) 0.05 0.04 25.00% Diluted earnings per share (RMB/share) 0.05 0.04 25.00% Weighted average return on equity (%) 1.34% 1.14% 0.20% 31 March 2021 31 December 2020 Change (%) Total assets (RMB) 5,684,487,935.29 5,695,504,493.73 -0.19% Equity attributable to the listed company’s 2,747,216,903.27 2,710,571,543.53 1.35% shareholders (RMB) Exceptional gains and losses: √ Applicable □ Not applicable Unit: RMB Item Q1 2021 Note Gain or loss on disposal of non-current assets (inclusive of 123,210.12 impairment allowance write-offs) Government grants through profit or loss (exclusive of government grants given in the Company’s ordinary course of business at fixed 406,977.39 quotas or 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 4,619,547.66 held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of the effective portion of hedges 3 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) that arise in the Company’s ordinary course of business) Non-operating income and expense other than the above 97,845.34 Project confirmed with the definition of non-recurring gains and 28,548.78 losses Less: Income tax effects 1,319,032.32 Non-controlling interests effects (net of tax) 66,587.27 Total 3,890,509.70 -- 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 Shareholders at 31 March 2021 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 resumed Number of ordinary shareholders at the period-end 68,418 0 voting rights at the period-end (if any) Top 10 shareholders Nature of Shareholdin Total shares Restricted Shares in pledge or frozen Name of shareholder shareholder g percentage held shares held Status Shares BEIJING GRAIN GROUP CO., State-owned 39.68% 288,439,561 164,877,598 LTD. legal person BEIJING STATE-OWNED State-owned CAPITAL OPERATION AND 6.67% 48,510,460 0 legal person MANAGEMENT CENTER Domestic WANG YUECHENG 5.66% 41,159,887 41,159,887 natural person Foreign LI SHERYN ZHAN MING 1.23% 8,930,000 0 natural person GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND Other 0.40% 2,889,803 0 MANAGEMENT CO., LTD.—GOLD BUFFALO 4 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) RUNYING (TIANJIN) EQUITY INVESTMENT FUND (L.P.) Domestic MEI JIANYING 0.36% 2,604,203 0 natural person Domestic ZHANG XIAOXIA 0.27% 1,949,250 0 natural person Domestic WANG XIAOXING 0.23% 1,691,200 0 natural person Domestic TAN WENQIONG 0.20% 1,474,700 0 natural person ORIENT SECURITIES ( HONG Foreign 0.18% 1,330,400 0 KONG) LIMITED corporation Top 10 unrestricted shareholders Shares by type Name of shareholder Unrestricted shares held Type Shares RMB-denominate BEIJING GRAIN GROUP CO., LTD. 123,561,963 123,561,963 d ordinary stock BEIJING STATE-OWNED CAPITAL RMB-denominate 48,510,460 48,510,460 OPERATION AND MANAGEMENT CENTER d ordinary stock Domestically LI SHERYN ZHAN MING 8,930,000 listed foreign 8,930,000 stock GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND MANAGEMENT RMB-denominate 2,889,803 2,889,803 CO., LTD.—GOLD BUFFALO RUNYING d ordinary stock (TIANJIN) EQUITY INVESTMENT FUND (L.P.) RMB-denominate MEI JIANYING 2,604,203 2,604,203 d ordinary stock Domestically ZHANG XIAOXIA 1,949,250 listed foreign 1,949,250 stock RMB-denominate WANG XIAOXING 1,691,200 1,691,200 d ordinary stock RMB-denominate TAN WENQIONG 1,474,700 1,474,700 d ordinary stock Domestically ORIENT SECURITIES ( HONG KONG ) 1,330,400 listed foreign 1,330,400 LIMITED stock RMB-denominate YANG SHULING 1,122,900 1,122,900 d ordinary stock Related or acting-in-concert parties among the ① Beijing State-Owned Capital Operation and Management Center owns 5 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) shareholders above 100% of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is the controlling shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy 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. Shareholder Wang Xiaoxing held 1,691,200 shares in the Company through Top 10 shareholders engaged in securities margin his account of collateral securities for margin trading in Soochow Securities trading (if any) 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 Preferred Shareholders and Shareholdings of Top 10 of Them □ Applicable √ Not applicable 6 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) Part III Significant Events I Changes in Key Financial Statement Line Items and Explanation of why √ Applicable □ Not applicable 1. Monetary assets increased primarily driven by an increase in sales revenue received in the oils business in the current period. 2. Held-for-trading financial assets increased primarily driven by the purchase of wealth management products with part of the amount arising from the redemption of investments in cash management products upon maturity in the current period. 3. Derivative financial liabilities decreased primarily driven by changes in the fair value of hedge instruments in the Current Period. 4. Total revenues increased primarily driven by rising product prices and unit sales in the Current Period. 5. R&D expense increased primarily driven the cost rising by more new product development projects in the Current Period. 6. Finance costs decreased primarily driven by decreases in exchange losses and interest expense in the Current Period. 7. Other income increased primarily driven by an increase in VAT rebates in the Current Period. 8. Gain on fair value changes increased primarily driven by changes in the value of futures contracts in the current period. 9. Net cash generated from investing activities decreased primarily driven by an increase in investments in wealth management products. 10. Net cash generated from financing activities decreased primarily driven by a decrease in new borrowings in the current period. II Progress, Influence and Solutions with regard to Significant Events √ Applicable □ Not applicable Summary of the significant event Disclosure date Index to the related announcement The Company signed the Joint Venture and Cooperation Announcement No. 2021-004 of Hainan 5 January 2021 Agreement on Yueyang Oil Processing Project and the Articles of Jingliang Holdings Co., Ltd. on Progress 7 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) Association of Jingliang (Yueyang) Grains & Oils Industries Co., of Yueyang Oil Base Project disclosed on Ltd. with Sinograin Oils Co., Ltd. on 31 December 2020. This www.cninfo.com.cn. external investment has been approved by Beijing Capital Agribusiness & Foods Group Co., Ltd. During the Reporting Period, Sinograin Oils Co., Ltd., upon internal decisions, obtained the approval of China Grain Reserves Group Ltd. Company. Subsequently, both parties will actively go through the paper work for the establishment of the joint venture. On 6 April 2021, the Company signed the Cooperation Framework Agreement with SDIC Traffic Holding Co., Ltd. and Announcement No. 2021-020 of Hainan China Grain Reserves Group Ltd. Guangzhou Branch in Beijing, Jingliang Holdings Co., Ltd. on Signing 8 April 2021 reaching an agreement on cooperation in grain storage, logistics the Cooperation Framework Agreement and processing at SDIC Yangpu Port, Yangpu Economic disclosed on www.cninfo.com.cn. Development Zone, Hainan Province. Progress of any share repurchases: □ Applicable √ Not applicable 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 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 Initi s on Accoun Begin ive Type al fair-valu Gain/los Code of ting ning fair-valu Purchased in Sold in the Ending Accou Fundin of Name of inve e s in the securitie measur carryi e the current current carrying nting g securit securities stme changes current s ement ng changes period period value title source ies nt in the period model value through cost current equity period 8 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) Cost 1,980,700,00 1,980,700,00 275,836 Self-ra Other 204001 GC001 0.00 Other method 0.00 0.00 .11 ised 1,980,700,00 1,980,700,00 275,836 Total 0.00 -- 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 .11 Disclosure date of announcement on Board’s 27 March 2021 consent for securities investment Disclosure date of announcement on shareholders’ meeting’s N/A consent for securities investment (if any) 2. Investments in Derivative Financial Instruments √ Applicable □ Not applicable Unit: RMB’0,000 Ending investment as % Type of derivative Beginning Ending Actual gain/loss in Start date End date of the Company’s ending financial instrument investment investment Reporting Period net assets Agricultural product 1 January 31 March 25,014.36 23,798.9 8.66% -20,727.38 future contract 2021 2021 Foreign exchange 1 January 31 March 13,336.81 40,543.15 14.76% -18.51 forwards 2021 2021 Total -- -- 38,351.17 64,342.05 23.42% -20,745.89 The Company's own funds are used in commodity derivatives transactions; in foreign exchange derivatives Funding source transactions, the Company's comprehensive bank credit line or margin for trading is mainly used. Principal delivery or differential delivery is adopted at maturity. Legal matters involved N/A (if applicable) Disclosure date of the announcement about the board’s consent for the 27 March 2021 securities investment (if any) Disclosure date of the announcement about the 17 April 2021 general meeting’s consent for the securities 9 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) investment (if any) The Company's main purpose of conducting commodity derivatives transactions and foreign exchange derivatives transactions is to hedge and lock in exchange rates, other than for speculation purposes. Existing risks include but are not limited to market risk, liquidity risk, price fluctuation risk and internal Risk analysis and control control risk. In this regard, the Company has adopted the following risk control measures: 1) The measures in respect of development of derivatives trading business is based on normal production and operation; 2) the Company derivative investments has formulated the Management Policy of Hainan Jingliang Holdings Co., Ltd. on Commodity Derivatives held in the Reporting Transactions and the Management Policy of Hainan Jingliang Holdings Co., Ltd. on Financial Derivatives Period (including but not Transactions to control transaction risks; 3) own funds are reasonably allocated for hedging business. In limited to market risk, principle, the Company purchases options contracts only. The asset scale of futures and options is strictly liquidity risk, credit risk, controlled. The margin is planned and used reasonably; 4) the Company is only allowed to conduct foreign operational risk, legal exchange derivatives trading business with banks and financial institutions that are approved by regulatory risk, etc.) authorities and eligible for foreign exchange derivatives trading business, other than with other organizations or individuals, so as to prevent customer default risks. During the Reporting Period, gains and losses of commodity derivatives transactions offset the gains and losses of hedged items (spot agricultural products). Changes in market prices or fair value of derivative investments in the Reporting Period The value of the Company’s future contracts changed according to the contract prices declared by the (fair value analysis future exchange, which were broadly representative. And the fair value of the Company’s future contracts should include was executed in strict compliance with the future exchange’s settlement methods. measurement method and related assumptions and parameters) Significant changes in accounting policies and specific accounting principles adopted for N/A derivative investments in the Reporting Period compared to the last reporting period Opinion of independent directors on commodity derivatives transactions: the Company has formulated the Management Policy of Hainan Jingliang Holdings Co., Ltd. on Commodity Derivatives Transactions, which can effectively normalize commodity derivatives transaction behaviors and control transaction risks. Opinion of independent Based on normal production and operation, the Company properly uses derivative financial instruments to directors on derivative effectively offset operation risks. It is agreed that the Company will conduct commodity derivatives investments and risk transactions in 2021. control Opinion of independent directors on foreign exchange derivatives trading business: 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 normal production 10 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) and operation, the Company uses foreign exchange derivatives instruments to reduce exchange rate risks and help to enhance financial soundness. There is no harm to the interests of the Company and all other shareholders, especially minority shareholders. The Company has established the Management Policy of Hainan Jingliang Holdings Co., Ltd. on Financial Derivatives Transactions, which helps to enhance the trading risks control. It is agreed that the Company and its majority-owned subsidiaries will conduct foreign exchange derivative trading business within the consideration amount. V Progress of Projects Financed with Raised Funds □ Applicable √ Not applicable VI Operating Performance Forecast for January-June 2021 Warning of a forecast loss on or a forecast significant year-on-year change in the accumulative net profit from the beginning of the year to the end of the next reporting period, 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 Type Funding source Amount Undue amount Unrecovered overdue amount Bank’s wealth management product Self-funded 2,300 1,000 0 Broker’s wealth management product Idle raised funds 28,000 0 0 Total 30,300 1,000 0 High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or no principal protection: □ Applicable √ Not applicable Wealth management transactions with possible impairments including an expectedly unrecoverable principal: □ Applicable √ Not applicable 11 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 (Summary) 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. 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. Hainan Jingliang Holdings Co., Ltd. 28 April 2021 12