Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 HAINAN JINGLIANG HOLDINGS CO., LTD. FIRST QUARTERLY REPORT 2021 April 2021 1 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 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 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 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 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 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 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 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 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 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 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 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. 12 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Part IV Financial Statements I Financial Statements 1. Consolidated Balance Sheet Prepared by Hainan Jingliang Holdings Co., Ltd. 31 March 2021 Unit: RMB Item 31 March 2021 31 December 2020 Current assets: Monetary assets 638,272,610.63 335,466,169.61 Settlement reserve Interbank loans granted Held-for-trading financial assets 180,350,671.73 63,478,071.73 Derivative financial assets Notes receivable 348,845.25 456,565.85 Accounts receivable 79,755,021.15 92,245,667.60 Accounts receivable financing Prepayments 352,445,575.71 282,343,218.05 Premiums receivable Reinsurance receivables Receivable reinsurance contract reserve Other receivables 363,447,586.33 541,905,656.97 Including: Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 1,149,368,193.12 1,225,083,742.26 Contract assets Assets held for sale Current portion of non-current assets Other current assets 623,586,751.17 845,450,678.36 13 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Total current assets 3,387,575,255.09 3,386,429,770.43 Non-current assets: Loans and advances to customers Investments in debt obligations Investments in other debt obligations Long-term receivables Long-term equity investments 217,762,487.79 217,762,487.79 Investments in other equity 20,000,000.00 20,000,000.00 instruments Other non-current financial assets Investment property 22,148,688.37 22,560,212.50 Fixed assets 1,109,204,988.73 1,131,143,854.07 Construction in progress 22,405,581.50 28,458,413.67 Productive living assets Oil and gas assets Right-of-use assets 2,484,266.44 Intangible assets 350,415,434.47 354,139,335.32 Development costs Goodwill 191,394,422.51 191,394,422.51 Long-term prepaid expense 20,543,516.72 20,529,601.50 Deferred income tax assets 3,330,952.00 3,346,814.27 Other non-current assets 337,222,341.67 319,739,581.67 Total non-current assets 2,296,912,680.20 2,309,074,723.30 Total assets 5,684,487,935.29 5,695,504,493.73 Current liabilities: Short-term borrowings 1,509,813,010.95 1,497,414,079.05 Borrowings from the central bank Interbank loans obtained Held-for-trading financial liabilities Derivative financial liabilities 204,172,909.98 371,219,136.84 Notes payable Accounts payable 64,823,024.76 75,384,075.39 Advances from customers 1,402,363.91 1,087,874.02 Contract liabilities 439,986,754.33 346,874,260.90 14 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Financial assets sold under repurchase agreements Customer deposits and interbank deposits Payables for acting trading of securities Payables for underwriting of securities Employee benefits payable 13,838,869.45 33,345,136.94 Taxes payable 27,631,015.04 50,884,214.64 Other payables 111,293,858.63 72,292,881.24 Including: Interest payable 21,082,795.47 21,082,795.47 Dividends payable 11,013,302.88 11,013,302.88 Handling charges and commissions payable Reinsurance payables Liabilities directly associated with assets held for sale Current portion of non-current liabilities Other current liabilities 4,956,685.90 8,319,696.79 Total current liabilities 2,377,918,492.95 2,456,821,355.81 Non-current liabilities: Insurance contract reserve Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 2,479,427.07 Long-term payables Long-term employee benefits 5,677,134.00 5,677,134.00 payable Provisions Deferred income 68,243,587.67 68,716,699.34 Deferred income tax liabilities 88,830,153.02 65,115,801.22 Other non-current liabilities 15 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Total non-current liabilities 165,230,301.76 139,509,634.56 Total liabilities 2,543,148,794.71 2,596,330,990.37 Owners’ equity: Share capital 726,950,251.00 726,950,251.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves 1,674,828,350.95 1,674,828,350.95 Less: Treasury stock Other comprehensive income -302,976.28 -363,258.66 Specific reserve Surplus reserves 122,122,436.98 122,122,436.98 General reserve Retained earnings 223,618,840.62 187,033,763.26 Total equity attributable to owners of 2,747,216,903.27 2,710,571,543.53 the Company as the parent Non-controlling interests 394,122,237.31 388,601,959.83 Total owners’ equity 3,141,339,140.58 3,099,173,503.36 Total liabilities and owners’ equity 5,684,487,935.29 5,695,504,493.73 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 31 March 2021 31 December 2020 Current assets: Monetary assets 971,206.16 1,523,322.79 Held-for-trading financial assets Derivative financial assets Notes receivable Accounts receivable 11,784.00 11,784.00 Accounts receivable financing Prepayments 423,679.12 423,679.12 16 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Other receivables 100,008.26 103,341.26 Including: Interest receivable Dividends receivable Inventories 3,775,954.85 3,775,954.85 Contract assets Assets held for sale Current portion of non-current assets Other current assets 2,472,089.46 2,445,772.47 Total current assets 7,754,721.85 8,283,854.49 Non-current assets: Investments in debt obligations Investments in other debt obligations Long-term receivables Long-term equity investments 2,626,437,846.24 2,626,437,846.24 Investments in other equity 20,000,000.00 20,000,000.00 instruments Other non-current financial assets Investment property 6,136,711.10 6,222,001.73 Fixed assets 2,643,065.57 2,809,083.51 Construction in progress Productive living assets Oil and gas assets Right-of-use assets Intangible assets 182,183.72 209,185.10 Development costs Goodwill Long-term prepaid expense Deferred income tax assets Other non-current assets Total non-current assets 2,655,399,806.63 2,655,678,116.58 Total assets 2,663,154,528.48 2,663,961,971.07 Current liabilities: Short-term borrowings Held-for-trading financial liabilities 17 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Derivative financial liabilities Notes payable Accounts payable Advances from customers 38,896.41 38,896.41 Contract liabilities Employee benefits payable 188,025.74 341,902.14 Taxes payable 960,020.24 1,037,881.62 Other payables 310,401,556.88 309,067,618.99 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 311,588,499.27 310,486,299.16 Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred 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 311,588,499.27 310,486,299.16 Owners’ equity: Share capital 726,950,251.00 726,950,251.00 Other equity instruments Including: Preferred shares 18 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Perpetual bonds Capital reserves 2,379,144,900.84 2,379,144,900.84 Less: Treasury stock Other comprehensive income Specific reserve Surplus reserves 109,487,064.39 109,487,064.39 Retained earnings -864,016,187.02 -862,106,544.32 Total owners’ equity 2,351,566,029.21 2,353,475,671.91 Total liabilities and owners’ equity 2,663,154,528.48 2,663,961,971.07 3. Consolidated Income Statement Unit: RMB Item Q1 2021 Q1 2020 1. Revenue 2,338,783,061.35 1,719,261,111.71 Including: Operating revenue 2,338,783,061.35 1,719,261,111.71 Interest income Insurance premium income Handling charge and commission income 2. Costs and expenses 2,333,218,041.73 1,658,412,402.25 Including: Cost of sales 2,226,013,163.78 1,544,129,698.32 Interest expense Handling charge and commission expense Surrenders Net insurance claims paid Net amount provided as insurance contract reserve Expenditure on policy dividends Reinsurance premium expense Taxes and surcharges 5,955,781.15 4,029,610.82 Selling expense 48,411,864.19 52,228,754.23 Administrative expense 44,040,201.27 41,898,096.16 19 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 R&D expense 2,417,187.46 526,336.27 Finance costs 6,379,843.88 15,599,906.45 Including: Interest 8,671,148.55 9,935,743.28 expense Interest 2,685,086.53 2,406,568.62 income Add: Other income 3,012,534.83 1,879,509.69 Return on investment (“-” for loss) 4,619,547.66 4,768,109.67 Including: Share of profit or loss 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 (“-” 47,688,252.08 -14,186,448.05 for loss) Credit impairment loss (“-” for loss) Asset impairment loss (“-” for loss) Asset disposal income (“-” for -24,042.07 loss) 3. Operating profit (“-” for loss) 60,861,312.12 53,309,880.77 Add: Non-operating income 489,618.17 512,126.89 Less: Non-operating expense 151,256.17 1,181,483.76 4. Profit before tax (“-” for loss) 61,199,674.12 52,640,523.90 Less: Income tax expense 19,094,319.28 12,926,062.26 5. Net profit (“-” for net loss) 42,105,354.84 39,714,461.64 5.1 By operating continuity 5.1.1 Net profit from continuing 42,105,354.84 39,714,461.64 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 36,585,077.36 27,655,045.32 shareholders of the Company as the 20 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 parent 5.2.2 Net profit attributable to 5,520,277.48 12,059,416.32 non-controlling interests 6. Other comprehensive income, net of 60,282.38 112,438.44 tax Attributable to owners of the Company 60,282.38 112,438.44 as the parent 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 60,282.38 112,438.44 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 investments in other debt obligations 6.2.3 Other comprehensive income arising from the reclassification of financial assets 6.2.4 Credit impairment allowance for investments in other debt obligations 6.2.5 Reserve for cash flow hedges 6.2.6 Differences arising from the translation of foreign 60,282.38 112,438.44 currency-denominated financial statements 6.2.7 Other Attributable to non-controlling 21 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 interests 7. Total comprehensive income 42,165,637.22 39,826,900.08 Attributable to owners of the Company 36,645,359.74 27,767,483.76 as the parent Attributable to non-controlling 5,520,277.48 12,059,416.32 interests 8. Earnings per share 8.1 Basic earnings per share 0.05 0.04 8.2 Diluted earnings per share 0.05 0.04 Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before the combinations was RMBXXX, with the amount for the same period of last year being RMBXXX. 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 Unit: RMB Item Q1 2021 Q1 2020 1. Operating revenue 147,765.14 0.00 Less: Cost of sales 85,290.63 0.00 Taxes and surcharges 50,806.93 2,700.00 Selling expense Administrative expense 1,926,595.42 6,328,612.55 R&D expense Finance costs 1,022.57 -3,113.45 Including: Interest expense Interest income 771.43 3,963.45 Add: Other income Return on investment (“-” for 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 (“-” 22 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 for loss) Gain on changes in fair value (“-” for loss) Credit impairment loss (“-” for loss) Asset impairment loss (“-” for loss) Asset disposal income (“-” for -24,042.07 loss) 2. Operating profit (“-” for loss) -1,939,992.48 -6,328,199.10 Add: Non-operating income 30,349.78 Less: Non-operating expense 1,000,000.00 3. Profit before tax (“-” for loss) -1,909,642.70 -7,328,199.10 Less: Income tax expense 4. Net profit (“-” for net loss) -1,909,642.70 -7,328,199.10 4.1 Net profit from continuing -1,909,642.70 -7,328,199.10 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 pension 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 of the company’s credit risks 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 investments in other debt obligations 23 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 5.2.3 Other comprehensive income arising from the reclassification of financial assets 5.2.4 Allowance for credit impairments in investments in other debt obligations 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 -1,909,642.70 -7,328,199.10 7. Earnings per share 7.1 Basic earnings per share 7.2 Diluted earnings per share 5. Consolidated Cash Flow Statement Unit: RMB Item Q1 2021 Q1 2020 1. Cash flows from operating activities: Proceeds from sale of commodities 2,723,222,764.35 1,881,294,907.03 and rendering of services Net increase in customer deposits and interbank deposits 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, handling charges and commissions received Net increase in interbank loans obtained Net increase in proceeds from repurchase transactions 24 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Net proceeds from acting trading of securities Tax rebates 2,397,841.07 3,888,658.17 Cash generated from other operating 500,143,601.78 322,173,357.74 activities Subtotal of cash generated from 3,225,764,207.20 2,207,356,922.94 operating activities Payments for commodities and 2,302,395,084.62 1,512,095,916.20 services Net increase in loans and advances to customers Net increase in deposits in the central bank and in interbank loans granted Payments for claims on original insurance contracts Net increase in interbank loans granted Interest, handling charges and commissions paid Policy dividends paid Cash paid to and for employees 92,696,571.12 90,315,621.12 Taxes paid 68,496,499.66 48,656,100.30 Cash used in other operating 487,418,827.64 227,340,451.00 activities Subtotal of cash used in operating 2,951,006,983.04 1,878,408,088.62 activities Net cash generated from/used in 274,757,224.16 328,948,834.32 operating activities 2. Cash flows from investing activities: Proceeds from disinvestment 553,344,218.29 430,158,276.12 Return on investment 4,786,581.45 4,513,448.35 Net proceeds from the disposal of fixed assets, intangible assets and other 85,994.78 2,500.00 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 558,216,794.52 439,674,224.47 investing activities Payments for the acquisition of fixed 16,999,069.25 4,848,818.22 25 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 assets, intangible assets and other long-lived assets Payments for investments 510,000,000.00 238,280,000.00 Net increase in pledged loans granted Net payments for the acquisition of subsidiaries and other business units Cash used in other investing activities Subtotal of cash used in investing 526,999,069.25 243,128,818.22 activities Net cash generated from/used in 31,217,725.27 196,545,406.25 investing activities 3. Cash flows from financing activities: Capital contributions received Including: Capital contributions by non-controlling interests to subsidiaries Borrowings obtained 921,639,571.50 1,223,077,644.38 Cash generated from other financing activities Subtotal of cash generated from 921,639,571.50 1,223,077,644.38 financing activities Repayments of borrowings 908,547,195.60 1,174,444,005.01 Payments for interest and dividends 16,299,326.30 16,033,923.34 Including: Dividends paid by subsidiaries to non-controlling interests Cash used in other financing activities Subtotal of cash used in financing 924,846,521.90 1,190,477,928.35 activities Net cash generated from/used in -3,206,950.40 32,599,716.03 financing activities 4. Effect of foreign exchange rate 38,441.99 -7,811,914.24 changes on cash and cash equivalents 5. Net increase in cash and cash 302,806,441.02 550,282,042.36 equivalents Add: Cash and cash equivalents, 334,389,017.41 555,097,777.21 beginning of the period 6. Cash and cash equivalents, end of the 637,195,458.43 1,105,379,819.57 period 26 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 6. Cash Flow Statement of the Company as the Parent Unit: RMB Item Q1 2021 Q1 2020 1. Cash flows from operating activities: Proceeds from sale of commodities 1,930.25 and rendering of services Tax rebates 200.00 Cash generated from other operating 1,657,348.13 4,596,500.27 activities Subtotal of cash generated from 1,659,278.38 4,596,700.27 operating activities Payments for commodities and 9,688.23 6,089.61 services Cash paid to and for employees 1,131,342.20 4,536,346.77 Taxes paid 45,031.71 296,186.19 Cash used in other operating 1,069,757.65 4,678,032.18 activities Subtotal of cash used in operating 2,255,819.79 9,516,654.75 activities Net cash generated from/used in -596,541.41 -4,919,954.48 operating activities 2. Cash flows from investing activities: Proceeds from disinvestment Return on investment Net proceeds from the disposal of fixed assets, intangible assets and other 44,424.78 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 44,424.78 investing activities Payments for the acquisition of fixed assets, intangible assets and other long-lived assets Payments for investments Net payments for the acquisition of subsidiaries and other business units Cash used in other investing 27 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 activities Subtotal of cash used in investing activities Net cash generated from/used in 44,424.78 investing activities 3. Cash flows from financing activities: Capital contributions received Borrowings obtained 4,000,000.00 Cash generated from other financing activities Subtotal of cash generated from 4,000,000.00 financing activities Repayments of borrowings Payments for interest and dividends Cash used in other financing activities Subtotal of cash used in financing activities Net cash generated from/used in 4,000,000.00 financing activities 4. Effect of foreign exchange rate changes on cash and cash equivalents 5. Net increase in cash and cash -552,116.63 -919,954.48 equivalents Add: Cash and cash equivalents, 1,523,322.79 3,536,102.19 beginning of the period 6. Cash and cash equivalents, end of the 971,206.16 2,616,147.71 period II Adjustments to the Financial Statements 1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the New Standards Governing Leases from 2021 √ Applicable □ Not applicable Whether the Company needs to adjust items in balance sheets at the beginning of the year √ Yes □ No Consolidated Balance Sheet Unit: RMB Item 31 December 2020 1 January 2021 Adjusted 28 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Current assets: Monetary assets 335,466,169.61 335,466,169.61 Held-for-trading financial 63,478,071.73 63,478,071.73 assets Notes receivable 456,565.85 456,565.85 Accounts receivable 92,245,667.60 92,245,667.60 Prepayments 282,343,218.05 282,234,970.05 -108,248.00 Other receivables 541,905,656.97 541,905,656.97 Inventories 1,225,083,742.26 1,225,083,742.26 Other current assets 845,450,678.36 845,450,678.36 Total current assets 3,386,429,770.43 3,386,321,522.43 -108,248.00 Non-current assets: Long-term equity 217,762,487.79 217,762,487.79 investments Investments in other equity 20,000,000.00 20,000,000.00 instruments Investment property 22,560,212.50 22,560,212.50 Fixed assets 1,131,143,854.07 1,131,143,854.07 Construction in progress 28,458,413.67 28,458,413.67 Use rights assets 2,722,789.09 2,722,789.09 Intangible assets 354,139,335.32 354,139,335.32 Goodwill 191,394,422.51 191,394,422.51 Long-term prepaid 20,529,601.50 20,529,601.50 expense Deferred income tax assets 3,346,814.27 3,346,814.27 Other non-current assets 319,739,581.67 319,739,581.67 Total non-current assets 2,309,074,723.30 2,311,797,512.39 2,722,789.09 Total assets 5,695,504,493.73 5,698,119,034.82 2,614,541.09 Current liabilities: Short-term borrowings 1,497,414,079.05 1,497,414,079.05 Held-for-trading financial 371,219,136.84 371,219,136.84 liabilities Accounts payable 75,384,075.39 75,384,075.39 Advances from customers 1,087,874.02 1,087,874.02 Contractual liabilities 346,874,260.90 346,874,260.90 Payroll payable 33,345,136.94 33,345,136.94 29 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Taxes payable 50,884,214.64 50,884,214.64 Other payables 72,292,881.24 72,292,881.24 Including: Interest 21,082,795.47 21,082,795.47 payable Dividends 11,013,302.88 11,013,302.88 payable Other current liabilities 8,319,696.79 8,319,696.79 Total current liabilities 2,456,821,355.81 2,456,821,355.81 Non-current liabilities: Lease liabilities 2,614,541.09 2,614,541.09 Long-term payroll payable 5,677,134.00 5,677,134.00 Deferred income 68,716,699.34 68,716,699.34 Deferred income tax 65,115,801.22 65,115,801.22 liabilities Total non-current liabilities 139,509,634.56 142,124,175.65 2,614,541.09 Total liabilities 2,596,330,990.37 2,598,945,531.46 2,614,541.09 Owners’ equity: Share capital 726,950,251.00 726,950,251.00 Capital reserves 1,674,828,350.95 1,674,828,350.95 Other comprehensive -363,258.66 -363,258.66 income Surplus reserves 122,122,436.98 122,122,436.98 Retained earnings 187,033,763.26 187,033,763.26 Total equity attributable to owners of the Company as 2,710,571,543.53 2,710,571,543.53 the parent Non-controlling interests 388,601,959.83 388,601,959.83 Total owners’ equity 3,099,173,503.36 3,099,173,503.36 Total liabilities and owners’ 5,695,504,493.73 5,698,119,034.82 2,614,541.09 equity Balance sheet of the company as the parent Unit: RMB Item 31 December 2020 1 January 2021 Adjusted Current assets: Monetary assets 1,523,322.79 1,523,322.79 Accounts receivable 11,784.00 11,784.00 30 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 Prepayments 423,679.12 423,679.12 Other receivables 103,341.26 103,341.26 Inventories 3,775,954.85 3,775,954.85 Other current assets 2,445,772.47 2,445,772.47 Total current assets 8,283,854.49 8,283,854.49 Non-current assets: Long-term equity 2,626,437,846.24 2,626,437,846.24 investments Investments in other equity 20,000,000.00 20,000,000.00 instruments Investment property 6,222,001.73 6,222,001.73 Fixed assets 2,809,083.51 2,809,083.51 Intangible assets 209,185.10 209,185.10 Total non-current assets 2,655,678,116.58 2,655,678,116.58 Total assets 2,663,961,971.07 2,663,961,971.07 Current liabilities: Advances from customers 38,896.41 38,896.41 Payroll payable 341,902.14 341,902.14 Taxes payable 1,037,881.62 1,037,881.62 Other payables 309,067,618.99 309,067,618.99 Including: Interest 21,082,795.47 21,082,795.47 payable Dividends 3,213,302.88 3,213,302.88 payable Total current liabilities 310,486,299.16 310,486,299.16 Non-current liabilities: Total liabilities 310,486,299.16 310,486,299.16 Owners’ equity: Share capital 726,950,251.00 726,950,251.00 Capital reserves 2,379,144,900.84 2,379,144,900.84 Surplus reserves 109,487,064.39 109,487,064.39 Retained earnings -862,106,544.32 -862,106,544.32 Total owners’ equity 2,353,475,671.91 2,353,475,671.91 Total liabilities and owners’ 2,663,961,971.07 2,663,961,971.07 equity 31 Hainan Jingliang Holdings Co., Ltd. First Quarterly Report 2021 2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the New Standards Governing Leases from 2021 □ 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. 28 April 2021 32