HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL FINANCIAL REPORT 2021
August 2021
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL FINANCIAL REPORT 2021
(Unaudited)）
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual financial report was not audited.
This semi-annual financial Report has been prepared in both Chinese and English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Unit: Yuan
Program June 30th, 2021 December 31st, 2020
Current Assets:
Monetary Capital 779,954,595.57 335,466,169.61
Deposit Reservation for Balance
Lending Funds
Transactional Monetary Assets 363,000,000.00 63,478,071.73
Derivative Financial Assets 75,597,717.39
Notes Receivable 456,565.85
Account Receivable 96,128,277.06 92,245,667.60
Receivables Financing
Advance Payment 580,667,503.17 282,343,218.05
Receivable Premium
Reinsurance Accounts Receivable
1
Provision of Cession Receivable
Other Receivables 88,750,805.46 541,905,656.97
Including: The Interest Receivable
Dividend Receivable
Redemptory Monetary Capital for
Sale
Inventory 1,599,520,851.27 1,225,083,742.26
Contract Assets
Holding Assets to be Sold.
Non-Current Assets Expiring within
One Year
Other Current Assets 232,671,032.39 845,450,678.36
Total Current Assets 3,816,290,782.31 3,386,429,770.43
Non-current Assets:
offer loans and make advance
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 219,058,997.13 217,762,487.79
Investment in other equity 20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment Property 21,737,164.27 22,560,212.50
Fixed Assets 1,088,582,627.48 1,131,143,854.07
Construction in progress 35,262,660.08 28,458,413.67
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset 2,472,838.11
Intangible Assets 346,717,866.88 354,139,335.32
Development Expenditure
Goodwill 191,394,422.51 191,394,422.51
Long-term Unamortized Expenses 20,319,161.45 20,529,601.50
Deferred Tax Asset 15,178,448.67 3,346,814.27
Other Non-current Assets 366,752,446.74 319,739,581.67
Non-current Assets in Total 2,327,476,633.32 2,309,074,723.30
Total Assets 6,143,767,415.63 5,695,504,493.73
Current Liability:
Short-term Borrowing 1,722,856,775.38 1,497,414,079.05
Borrowing from the Central Bank
Borrowing Funds
2
Transactional Monetary Liabilities
Derivative Financial Liabilities 371,219,136.84
Notes Payable
Accounts Payable 134,164,851.58 75,384,075.39
Account Collected in Advance 1,462,678.11 1,087,874.02
Contract Liabilities 533,807,058.54 346,874,260.90
Financial Assets Sold for Repurchase
Deposits from Customers and
Interbank
Receivings from Vicariously Traded
Securities
Receivings from Vicariously Sold
Securities
Employee Pay Payable 13,709,981.41 33,345,136.94
Tax Payable 65,516,363.75 50,884,214.64
Other payables 113,823,953.59 72,292,881.24
Including: The Payable Interest 21,082,795.47 21,082,795.47
Dividends Payable 11,013,302.88 11,013,302.88
Handling Charges and Commissions
Payable
Dividend Payable for Reinsurance
Holding Liabilities to Be Sold
Non-Current Liabilities Expiring
within One Year
Other current liabilities 132,051,254.57 8,319,696.79
Total Current Liabilities 2,717,392,916.93 2,456,821,355.81
Non-Current Liabilities:
Provision for Insurance Contracts
Long-Term Loan 71,000,000.00
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation 2,425,606.75
Long-term account payable
Long-term employee pay payable 5,677,134.00 5,677,134.00
Anticipation liabilities
Deferred Revenue 67,770,476.00 68,716,699.34
Deferred Income Tax Liabilities 81,969,420.28 65,115,801.22
Other Non-current Liabilities
Total Non-current Liabilities 228,842,637.03 139,509,634.56
3
Total Liabilities 2,946,235,553.96 2,596,330,990.37
Owners Equity:
Capital stock 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 1,674,828,350.95 1,674,828,350.95
Minus: Treasury Stock
Other Comprehensive Income -443,706.08 -363,258.66
Reasonable Reserve
Surplus reserves 122,122,436.98 122,122,436.98
Generic Risk Reserve
Undistributed profit 275,361,961.17 187,033,763.26
Total equity attributable to the 2,798,819,294.02 2,710,571,543.53
shareholders of parent Company
Minority Equity 398,712,567.65 388,601,959.83
Total owners' equity 3,197,531,861.67 3,099,173,503.36
Total liabilities and owner's equity 6,143,767,415.63 5,695,504,493.73
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
2. Balance sheet of parent Company
Unit: Yuan
Program June 30th, 2021 December 31st, 2020
Current Assets:
Monetary Capital 732,956.01 1,523,322.79
Transactional Monetary Assets
Derivative Financial Assets
Notes Receivable
Account Receivable 11,784.00 11,784.00
Receivables Financing
Advance Payment 416,276.56 423,679.12
Other Receivables 100,008.26 103,341.26
Including: The Interest Receivable
Dividend Receivable
Inventory 3,775,954.85 3,775,954.85
Contract Assets
Holding Assets to be Sold.
Non-Current Assets Expiring within
One Year
4
Other Current Assets 2,458,717.81 2,445,772.47
Total Current Assets 7,495,697.49 8,283,854.49
Non-current Assets:
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 2,626,437,846.24 2,626,437,846.24
Investment in other equity 20,000,000.00 20,000,000.00
instruments
Other non-current financial assets
Investment Property 6,051,420.47 6,222,001.73
Fixed Assets 2,381,625.62 2,809,083.51
Construction in progress
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset
Intangible Assets 136,855.34 209,185.10
Development Expenditure
Goodwill
Long-term Unamortized Expenses
Deferred Tax Asset
Other Non-current Assets
Non-current Assets in Total 2,655,007,747.67 2,655,678,116.58
Total Assets 2,662,503,445.16 2,663,961,971.07
Current Liability:
Short-term Borrowing
Transactional Monetary Liabilities
Derivative Financial Liabilities
Notes Payable
Accounts Payable
Account Collected in Advance 38,896.41 38,896.41
Contract Liabilities
Employee Pay Payable 188,359.24 341,902.14
Tax Payable 960,020.24 1,037,881.62
Other payables 310,664,277.93 309,067,618.99
Including: The Payable Interest 21,082,795.47 21,082,795.47
Dividends Payable 3,213,302.88 3,213,302.88
Holding Liabilities to Be Sold
Non-Current Liabilities Expiring
within One Year
Other current liabilities
5
Total Current Liabilities 311,851,553.82 310,486,299.16
Non-Current Liabilities:
Long-Term Loan
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation
Long-term account payable
Long-term employee pay payable
Anticipation liabilities
Deferred Revenue
Deferred Income Tax Liabilities
Other Non-current Liabilities
Total Non-current Liabilities
Total Liabilities 311,851,553.82 310,486,299.16
Owners Equity:
Capital stock 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 2,379,144,900.84 2,379,144,900.84
Minus: Treasury Stock
Other Comprehensive Income
Reasonable Reserve
Surplus reserves 109,487,064.39 109,487,064.39
Undistributed profit -864,930,324.89 -862,106,544.32
Total owners' equity 2,350,651,891.34 2,353,475,671.91
Total liabilities and owner's equity 2,662,503,445.16 2,663,961,971.07
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
3. Consolidated Income Statement
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Gross Revenue 5,328,246,835.83 3,750,773,067.63
Including: operating income 5,328,246,835.83 3,750,773,067.63
Interest Income
Earned Premium
Handling charges and commissions
income
II. Total Operating Cost 5,293,177,718.70 3,575,140,175.66
Operating costs 5,099,544,988.41 3,356,201,258.06
Interest Expenditure
6
Handling Charges and
Commissions Expenditure
Surrender Value
Net Payments for Insurance Claims
Net withdrawal of reserve fund for
insurance contracts
Bond Insurance Expense
Reinsurance Expenses
Tax and Surcharges 11,363,903.89 8,651,111.37
Selling Expenses 76,677,576.52 106,641,119.14
Administrative Expenses 84,799,700.54 78,032,286.29
Research and Development 5,170,755.15 2,803,717.02
Expenditure
Financial Expenses 15,620,794.19 22,810,683.78
Including: The Interest Expense 19,854,113.81 16,975,042.06
Interest Income 5,408,203.94 5,373,488.21
plus: other income 6,426,061.54 5,046,948.84
Investment income ("-" refers to 31,246,898.08 16,695,925.99
losses)
Of which: Income from investment 25,976,509.34 6,947,778.68
in joint ventures
The financial assets measured at
amortized cost terminates the recognition
of income ( "-" refers to losses)
Exchange Earning ( "-" refers to
losses)
Net Open Hedging Income ( "-"
refers to losses)
Income of Fair Value Changes ( "-" 61,697,730.47 -76,876,667.25
refers to losses)
Credit Loss ( "-" refers to losses)
Assets Impairment Loss ( "-" refers
to losses)
Assets Disposal Income ( "-" refers -58,685.83
to losses)
III. Operating Profit ( "-" refers to losses) 134,381,121.39 120,499,099.55
plus: Non-operating income 1,279,113.80 689,439.82
minus: Non-operating expenses 262,695.32 1,418,671.77
IV. Total Profit ( "-" refers to total losses) 135,397,539.87 119,769,867.60
minus: income tax expense 36,958,734.14 24,461,831.86
V. Net Profit ( "-" refers to net losses) 98,438,805.73 95,308,035.74
i. Classified Based on Business
Continuity
1. Net income from continuing 98,438,805.73 95,308,035.74
operation ( "-" refers to net losses)
7
2. Net income from discontinuing
operation ( "-" refers to net losses)
ii. Classified Based on the Attribution of
the Ownership
1. Net income attributed to 88,328,197.91 73,762,895.19
shareholders of parent Company
2. Minority Interest Income 10,110,607.82 21,545,140.55
VI. Net of Tax of Other Comprehensive -80,447.42 106,731.84
Income
Net of tax of other comprehensive -80,447.42 106,731.84
income attributed to shareholders of
parent Company
i. Other Comprehensive Income That
Can't Reclassify Income and Loss
1. Re-measure the change value of
defined benefit pension plans
2. Other comprehensive income
that can not reverse the income and
loss under the equity law.
3. Investment of other equity
instruments in the fair value
changes.
4. The fair value changes of credit
risk of the Company
5. Others
ii. Other Comprehensive Income That -80,447.42 106,731.84
Can Be Re-classified into the Income and
Loss
1. Other comprehensive income
that can reverse the income and
loss under the equity law.
2. Investment of other obligatory
rights in the fair value changes.
3. Financial assets that can be
re-classified into other
comprehensive income
4. Credit impairment reserve for
other creditor's rights investment
5. Cash Flow Hedging Reserve
6. The Balance of Conversion of -80,447.42 106,731.84
Foreign Currency Financial
Statements
7. Others
Net of tax of other comprehensive
income attributed to minority shareholder
VII. Total Comprehensive Income 98,358,358.31 95,414,767.58
Total comprehensive income attributed 88,247,750.49 73,869,627.03
to shareholders of parent Company
Total comprehensive income attributed 10,110,607.82 21,545,140.55
to minority shareholder
VIII. Earnings Per Share:
i. Basic Earnings Per Share 0.12 0.11
ii. Diluted Earnings Per Share 0.12 0.11
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu
Quanli
8
4. Income Statement of Parent Company
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Operating Income 295,530.28 376,609.17
minus: operating costs 170,581.26 0.00
Tax and Surcharges 98,713.86 2,700.00
Selling Expenses
Administrative Expenses 2,825,749.10 13,524,055.12
Research and Development
Expenditure
Financial Expenses 1,108.86 -5,045.16
Of which: The Interest Expense
Interest Income 1,190.61 8,250.44
plus: other income 37,431.93 50,313.02
Investment income ("-" refers -28,691.03 398,338.36
to losses)
Of which: Income from
investment in joint ventures
The financial assets
measured at amortized cost terminates
the recognition of income ( "-" refers to
losses)
Net open hedging income
( "-" refers to losses)
Income of Fair Value Changes
( "-" refers to losses)
Credit Loss ( "-" refers to
losses)
Assets Impairment Loss ( "-"
refers to losses)
Assets Disposal Income ( "-" -31,898.67
refers to losses)
II. Operating Profit ( "-" refers to -2,823,780.57 -12,696,449.41
losses)
plus: Non-operating income 4,001.44
minus: Non-operating expenses 1,000,000.00
III. Total Profit ( "-" refers to total -2,823,780.57 -13,692,447.97
losses)
minus: income tax expense
IV. Net Profit ( "-" refers to net losses) -2,823,780.57 -13,692,447.97
i. Net income from continuing -2,823,780.57 -13,692,447.97
operation ( "-" refers to net losses)
ii. Net income from discontinuing
operation ( "-" refers to net losses)
V. Net of Tax of Other Comprehensive
Income
i. Other comprehensive income
that can't reclassify income and loss
1. Re-measure the change
9
value of defined benefit pension plans
2. Other comprehensive
income that can not reverse the income
and loss under the equity law.
3. Investment of other
equity instruments in the fair value
changes.
4. The fair value changes of
credit risk of the Company
5. Others
ii. Other comprehensive income
that can be re-classified into the income
and loss
1. Other comprehensive
income that can reverse the income and
loss under the equity law.
2. Investment of other
obligatory rights in the fair value
changes.
3. Financial assets that can
be re-classified into other
comprehensive income
4. Credit impairment
reserve for other creditor's rights
investment
5. Cash Flow Hedging
Reserve
6. The Balance of
Conversion of Foreign Currency
Financial Statements
7. Others
VI. Total Comprehensive Income -2,823,780.57 -13,692,447.97
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
5. Consolidated Statement of Cash Flow
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Cash flow from operating activities:
Cash received for selling goods and providing
5,952,771,752.73 3,900,040,688.18
services
Net increase in customer deposits and interbank
deposits
Net increase in borrowing from the Central Bank
Net increase in borrowing from other financial
institutions
Cash received from the premium of the original
insurance contract
Net cash received from reinsurance business
Net increase of insured deposit and investment
Cash charged with interest, handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchase funds
Net Cash Received of Acting Trading Securities
Refunds of Taxes Received 12,662,140.42 6,282,179.39
Other Cash Received Related to Business
1,296,559,208.28 488,634,210.14
Activities
10
Subtotal of Cash flow of Operating Activities 7,261,993,101.43 4,394,957,077.71
Cash for Purchase of Goods and Labor Services 5,641,229,247.11 3,523,972,309.51
Net Increase in Customer Loans and Advances
Net Increase in Deposits in the Central Bank and
Other Banks
Cash for Payment of Original Insurance Contract
Claims
Net Increase of Lending Funds
Cash to Pay the Interest, Handling Fees and
Commissions
Cash to Pay the Policy Dividend
Cash Paid to and for Employees 160,658,231.05 152,383,335.08
Tax Payments 102,867,757.62 96,716,033.84
Cash Payment of Other Related Business
1,079,387,420.20 434,789,578.52
Activities
Subtotal of Cash Outflow of Operating Activities 6,984,142,655.98 4,207,861,256.95
Net Cash Flow from Operating Activities 277,850,445.45 187,095,820.76
II. Cash Flow from Investment
Cash Received in Disinvestment 948,291,055.30 1,316,317,255.34
Cash Received in Return of Investment 30,129,076.34 5,120,558.91
Net Cash Received from Disposal of Fixed
90,984.78 6,618.58
Assets, Intangible Assets and Other Long-term
Assets
Net Cash Received from Disposal of Subsidiaries 0.00 5,000,000.00
and Other Operating Units
Cash Received Related to Other Business
Activities
Subtotal of Cash flow of Operating Activities 978,511,116.42 1,326,444,432.83
Net Cash Payment for the Purchase of Fixed
65,875,188.69 11,385,922.53
Assets, Intangible Assets and Other Long-term
Assets
Cash Payment for Investment 1,008,200,000.00 1,709,222,428.58
Net Increase in Hypothecated Loan
Net Cash Payment of Subsidiaries and Other
Business Units
Cash Payment of Other Activities Related to
Investment
Subtotal of Cash Outflow of Investment Activities 1,074,075,188.69 1,720,608,351.11
Net Cash Flow from Investment Activities -95,564,072.27 -394,163,918.28
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Of which: Cash Received by Subsidiaries in
Absorbing Investment from Minority Shareholders
Cash Received from Loans 1,678,422,675.96 1,643,287,048.37
Other Cash Received Related to Financial
Activities
Subtotal of Cash flow of Financial Activities 1,678,422,675.96 1,643,287,048.37
Cash Payment for Debt 1,380,657,882.58 1,385,455,023.02
11
Cash Paid for Distribution of Dividends, Profits
35,312,822.03 26,157,547.48
or Interests
Of which: Dividends and Profits Paid by
Subsidiaries to Minority Shareholders
Cash Payment of Other Activities Related to
Financial Activities
Subtotal of Cash Outflow of Financial Activities 1,415,970,704.61 1,411,612,570.50
Net Cash Flow from Financial Activities 262,451,971.35 231,674,477.87
IV. The Impact of Change in Exchange Rate on
-249,918.57 -9,686,369.41
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 444,488,425.96 14,920,010.94
Plus: Initial Cash and cash Equivalents Balance 334,389,017.41 555,097,777.21
VI. Cash and Cash Equivalents Balance at the End
778,877,443.37 570,017,788.15
of the Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu
Quanli
6. Statement of Cash Flows of Parent Company
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Cash Flow from Operating Activities:
Cash received for selling goods and providing services 1,930.25
Refunds of Taxes Received 181.72 200.00
Other Cash Received Related to Business Activities 2,459,493.15 24,529,151.07
Subtotal of Cash flow of Operating Activities 2,461,605.12 24,529,351.07
Cash for Purchase of Goods and Labor Services 9,806.64 24,592.17
Cash Paid to and for Employees 1,450,104.47 7,904,980.50
Tax Payments 92,938.64 298,780.02
Cash Payment of Other Related Business Activities 1,664,077.90 18,496,617.45
Subtotal of Cash Outflow of Operating Activities 3,216,927.65 26,724,970.14
Net Cash Flow from Operating Activities -755,322.53 -2,195,619.07
II. Cash Flow from Investment
Cash Received in Disinvestment
Cash Received in Return of Investment
Net Cash Received from Disposal of Fixed Assets,
44,424.78
Intangible Assets and Other Long-term Assets
Net Cash Received from Disposal of Subsidiaries and
Other Operating Units
Cash Received Related to Other Business Activities
Subtotal of Cash flow of Operating Activities 44,424.78
Cash Payment for the Purchase of Fixed Assets,
79,469.03 142,327.44
Intangible Assets and Other Long-term Assets
Cash Payment for Investment
Net Cash Payment of Subsidiaries and Other Business
Units
12
Cash Payment of Other Activities Related to Investment
Subtotal of Cash Outflow of Investment Activities 79,469.03 142,327.44
Net Cash Flow from Investment Activities -35,044.25 -142,327.44
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Cash Received from Loans 4,000,000.00
Other Cash Received Related to Financial Activities
Subtotal of Cash flow of Financial Activities 4,000,000.00
Cash Payment for Debt
Cash Paid for Distribution of Dividends, Profits or
Interests
Cash Payment of Other Activities Related to Financial
Activities
Subtotal of Cash Outflow of Financial Activities
Net Cash Flow from Financial Activities 4,000,000.00
IV. The Impact of Change in Exchange Rate on Cash and
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents -790,366.78 1,662,053.49
Plus: Initial Cash and cash Equivalents Balance 1,523,322.79 3,536,102.19
VI. Cash and Cash Equivalents Balance at the End of the
732,956.01 5,198,155.68
Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu
Quanli
13
7. Consolidated Statement of Change in Equity
Unit: Yuan
Half year of 2021
Ownership interest attributable to the parent Company
Other equity instruments
Program Other Generic Minority Total owners'
Prefere Perpetual Minus: Reasonable Undistributed
Capital stock Capital reserve Comprehensiv Surplus reserves Risk Others In total Equity equity
nce Capital Others Treasury Stock Reserve profit
e Income Reserve
Shares Securities
I. Ending Balance of Last Year 726,950,251.00 1,674,828,350.95 -363,258.66 122,122,436.98 187,033,763.26 2,710,571,543.53 388,601,959.83 3,099,173,503.36
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under the
Same Control
Others
II. Beginning Balance of This
726,950,251.00 1,674,828,350.95 -363,258.66 122,122,436.98 187,033,763.26 2,710,571,543.53 388,601,959.83 3,099,173,503.36
Year
III. Changes in This Period ( "-"
-80,447.42 88,328,197.91 88,247,750.49 10,110,607.82 98,358,358.31
refers to losses)
A. Total Comprehensive Income -80,447.42 88,328,197.91 88,247,750.49 10,110,607.82 98,358,358.31
B. Input and Capital Reduction of
Owners
1. Common Stock Invested by the
Owner
2. Invested Capital of Other
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
Shareholders)
4. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
14
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726,950,251.00 1,674,828,350.95 -443,706.08 122,122,436.98 275,361,961.17 2,798,819,294.02 398,712,567.65 3,197,531,861.67
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2020
Ownership interest attributable to the parent Company
Other equity instruments
Program Minus: Other Total owners'
Preferen Perpetual Reasonable Surplus Generic Risk Undistributed Minority Equity
Capital stock Capital reserve Treasury Comprehensiv Others In total equity
ce Capital Others Reserve reserves Reserve profit
Stock e Income
Shares Securities
I. Ending Balance of Last Year 685,790,364.00 1,595,672,048.19 267,628.14 122,122,436.98 2,186,806.56 2,406,039,283.87 585,056,356.90 2,991,095,640.77
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under
the Same Control
Others
II. Beginning Balance of This
685,790,364.00 1,595,672,048.19 267,628.14 122,122,436.98 2,186,806.56 2,406,039,283.87 585,056,356.90 2,991,095,640.77
Year
III. Changes in This Period ( "-"
41,159,887.00 84,161,371.48 106,731.84 73,762,895.19 199,190,885.51 -218,158,752.84 -18,967,867.33
refers to losses)
A. Total Comprehensive
106,731.84 73,762,895.19 73,869,627.03 21,545,140.55 95,414,767.58
Income
B. Input and Capital Reduction
41,159,887.00 84,161,371.48 125,321,258.48 -237,694,893.39 -112,373,634.91
of Owners
1. Common Stock Invested by
the Owner
2. Invested Capital of Other 41,159,887.00 207,857,432.14 249,017,319.14 0.00 249,017,319.14
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others -123,696,060.66 -123,696,060.66 -237,694,893.39 -361,390,954.05
C. Profit Distribution -2,009,000.00 -2,009,000.00
1. Withdrawal Legal Surplus
2. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
-2,009,000.00 -2,009,000.00
Shareholders)
4. Others
15
D. Internal Carry-over of
Owner's Rights and Interests
1. Conversion of Capital
Reserve to Additional Capital
(Or Equity)
2. Conversion of Surplus
Reserve to Additional Capital
(Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726,950,251.00 1,679,833,419.67 374,359.98 122,122,436.98 75,949,701.75 2,605,230,169.38 366,897,604.06 2,972,127,773.44
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
8. Statement of Change in Equity of Parent Company
Unit: Yuan
Half year of 2021
Other equity instruments
Program Other
Perpetual Minus: Treasury Reasonable
Capital stock Preference Capital reserve Comprehensive Surplus reserves Undistributed profit Others Total owners' equity
Capital Others Stock Reserve
Shares Income
Securities
I. Ending Balance of Last Year 726,950,251.00 2,379,144,900.84 109,487,064.39 -862,106,544.32 2,353,475,671.91
Plus: Changes in Accounting
Policies
Early Error Correction
Others
II. Beginning Balance of This Year 726,950,251.00 2,379,144,900.84 109,487,064.39 -862,106,544.32 2,353,475,671.91
III. Changes in This Period ( "-"
-2,823,780.57 -2,823,780.57
refers to losses)
A. Total Comprehensive Income -2,823,780.57 -2,823,780.57
B. Input and Capital Reduction of
Owners
16
1. Common Stock Invested by the
Owner
2. Invested Capital of Other Equity
Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Distribution of Owners (or
Shareholders)
3. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726,950,251.00 2,379,144,900.84 109,487,064.39 -864,930,324.89 2,350,651,891.34
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2020
Other equity instruments
Program Other
Perpetual Minus: Treasury
Capital stock Preference Capital reserve Comprehensive Reasonable Reserve Surplus reserves Undistributed profit Others Total owners' equity
Capital Others Stock
Shares Income
Securities
I. Ending Balance of Last Year 685,790,364.00 2,173,387,468.71 109,487,064.39 -1,042,605,063.16 1,926,059,833.94
Plus: Changes in Accounting
17
Policies
Early Error Correction
Others
II. Beginning Balance of This
685,790,364.00 2,173,387,468.71 109,487,064.39 -1,042,605,063.16 1,926,059,833.94
Year
III. Changes in This Period ( "-"
41,159,887.00 207,857,432.14 -13,692,447.97 235,324,871.17
refers to losses)
A. Total Comprehensive Income -13,692,447.97 -13,692,447.97
B. Input and Capital Reduction 41,159,887.00 207,857,432.14 249,017,319.14
of Owners
1. Common Stock Invested by
the Owner
2. Invested Capital of Other 41,159,887.00 207,857,432.14 249,017,319.14
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Distribution of Owners (or
Shareholders)
3. Others
D. Internal Carry-over of
Owner's Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus
Reserve to Additional Capital
(Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726,950,251.00 2,381,244,900.85 109,487,064.39 -1,056,297,511.13 2,161,384,705.11
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
18
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Hainan Jingliang Holdings Co., Ltd.
Notes to 2021 Semiannual Financial Statements
(Unless otherwise stated, the amount unit is RMB Yuan)
I. Basic Information of the Company
1. Place of incorporation, form of organization and head office address
Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang
Holdings") is established in accordance with the Hainan Provincial People's Government General Office QFBH
(1992) No.1, approved by QY (1992) SGZ No. 6 Document of the People's Bank of Hainan Province and
re-registered by Hainan Pearl River Enterprise Company on January 11, 1992. The Company issued 81,880,000
shares in total upon re-registration, of which 60,793,600 shares were converted from the net assets of the original
Company and 21,086,400 shares were newly issued. And the name of the Company is Hainan Pearl River Enterprise
Co., Ltd. The business license registration number of the joint-stock Company is 20128455-6, and the holding parent
Company Guangzhou Pearl River Enterprise Group holds 36,393,600 shares, accounting for 44.45%. Approved by
ZGB (1992) No. 83 Document of the People's Bank of China in December 1992, the additional 21,086,400 shares
were listed on the Shenzhen Stock Exchange for trading. The industry involved is real estate.
On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and
SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of the People's Bank of China, the Company
increased its share capital by converting the original share capital into 139,196,000 shares (according to distribution
of 10, delivery of 5 and transfer of 2), with the controlling shareholder Guangzhou Pearl River Enterprises Group
holding 48,969,120 shares accounting for 35.18% at the end of 1993.
In 1994, the share capital was increased by 10 to 10, and the total share capital was 278,392,000 shares after the
increase. The controlling shareholder, Guangzhou Pearl River Enterprises Group, holds 97,938,240 shares,
accounting for 35.18%.
In 1995, the issuance of 50,000,000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12.
The share capital of the Company was increased by 10:1.5 on the basis of the share capital after the additional B
shares were issued, and the share capital of the Company after the increase was 377,650,800 shares. The holding
parent Company, Guangzhou Pearl River Enterprises Group, held 112,628,976 shares, accounting for 29.82% of the
total.
In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares to Beijing Wanfa Real
Estate Development Co., Ltd.. After the transfer of shares was completed in June 1999, Beijing Wanfa Real Estate
Development Co., Ltd. held 112,628,976 shares of the Company, accounting for 29.82% of the total shares of the
19
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Company, and became the controlling shareholder of the Company.
On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd. and the
Business License for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau of
Hainan Province.
On August 17, 2006, the reform plan of the split share structure of the Company was implemented. The
Company transferred 49,094,604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original
non-tradable shareholders transferred the increased shares to the tradable A-share holder. Beijing Wanfa Real Estate
Development Co., Ltd. reimbursed the consideration shares of the non-tradable shareholders who have not expressly
expressed their opinions. The converted total share capital was 426,745,404 shares, and the original controlling
shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698 shares, accounting for 25.31%.
Shareholders of non-tradable shares repaid 3,289,780 shares in consideration of the split share structure in 2007.
Shareholders of non-tradable shares repaid 1,196,000 shares in consideration of the split share structure in 2009.
On 2 September 2016, Beijing Wanfa Real Estate Development Co., Ltd., the original controlling shareholder,
transferred all of its 112,479,478 shares to Beijing Grain Group Co., Ltd. (hereinafter referred to as "Beijing Grain
Group"). Upon completion of the share transfer in September 2016, Beijing Grain Group Co., Ltd. held 112,479,478
shares, accounting for 26.36% of the total shares of the Company. In November 2016, based on the confidence in the
subject matter of the material asset restructuring and the future development of the Company, Beijing Grain Group
Co., Ltd. decided to increase its shareholding through centralized bidding in the secondary market. After the increase,
it held 123,561,963 shares of the Company, accounting for 28.95% of the total number of shares, and became the
largest shareholder of the Company.
The Company determined July 31, 2017 as the delivery date of material assets in accordance with the material
assets restructuring plan and the delivery agreement. On September 14, 2017, approved pursuant to the resolution of
the Second Extraordinary General Meeting of Shareholders of the Company on November 18, 2016 and the
Approval Reply of the China Securities Regulatory Commission dated July 28, 2017 On Approval of Hainan Pearl
River Holding Co., Ltd. to Purchase Assets and Raise Supporting Funds from Beijing Grain Group Co., Ltd. (ZJXK
(2017) No.1391): 1) The Company purchased assets from the original shareholders of Beijing Grain Food Co., Ltd.
(hereinafter referred to as Beijing Grain Food) by issuing 210,079,552 shares of the balance between the transaction
price of the injected assets and the assets to be purchased (the difference between the transaction price of the injected
assets and the assets to be purchased was RMB 1,699.5436 million yuan). The par value in the issuance was RMB
1.00 per share and the issuance price was RMB 8.09 per share; 2) The Company has issued 48,965,408 non-public
shares of the Company to Beijing Grain Group for the purpose of purchasing the supporting funds raised from the
assets of the issuance of shares. The par value per share of the Company was RMB1.00 and the issuance price was
RMB8.82 per share. The shareholder Beijing Grain Group conducted subscription in monetary funds. Upon
completion of the issue, the registered capital was RMB 685,790,364.00 and the share capital was RMB
20
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
685,790,364.00. Beijing Grain Group, which accounted for 42.06% of the total number of shares, became the largest
shareholder of the Company.
On November 21, 2019, with the approval of Beijing Shounong Food Group Co., Ltd. (Beijing Shounong Food
publish [2019] No. 212), Approval on the Plan of Purchasing Assets by Cash and Issuing Shares of Hainan Jingliang
Holdings Co., Ltd, On April , 2020, with the approval of Approval of Hainan Jingliang Holding Co., Ltd. Issuance
Shares to Wang Yuecheng to Purchase Assets by China Securities Regulatory Commission [2020] No. 610, the
Company shall not issue more than 41,159,887 new shares in private offering to raise funds supporting the purchase
of assets through the issued shares. The Company and its subsidiary, Beijing Jingliang Food Co., Ltd., purchased the
25.1149% equity stake of Zhejiang Little Prince by cash and issuance of shares.
As of June 30, 2021, the Company has issued 726,950,251.00 shares, and the Company's share capital is
726,950,251.00 yuan; Uniform Social Credit Code: 914600002012845568; Registration authority: Hainan Market
Supervision Administration; Company type: Limited Company (Listed, State-controlled); Registered address: F29,
Dihao Building, Pearl River Square, Binhai Avenue, Haikou City; Legal representative: Li Shaoling.
2. The nature of the Company's business and its main business activities
The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main business
ativites mainly includes: food, beverages, agricultural and sideline products, vegetable proteins and their
products, organic fertilizers, microbial fertilizers, production and marketing of agricultural fertilizers; land
consolidation, soil remediation; agricultural comprehensive planting development, animal husbandry and
aquaculture, agricultural equipment production and marketing; computer network technology, investment in
communication projects, research and development and application of high-tech products; investment and
consultation of environmental protection projects; animation, graphic design; import and export trade in goods and
technology; rental of own premises.
The Company and its subsidiaries are principally engaged in the processing, production and sales of foodstuffs,
agricultural and sideline products, grease, oils, and leisure foods.
3. The name of the parent Company and the ultimate parent Company.
The parent Company of the Company is Beijing Grain Group Co., Ltd., and the ultimate parent Company is
Beijing shounong Food Group Co., Ltd.
4. The approval institution and the approval date of the financial statements.
These financial statements have been approved and reported by the Board of Directors of the Company in its
resolution dated on August 23, 2021.
5. Consolidation scope
The consolidated scope of the consolidated financial statements of the Company is determined on the basis of
21
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
control, including the financial statements of the Company and all subsidiaries. Subsidiaries refer to enterprises or
entities controlled by the Company.
A total of 17 subsidiaries of the Company were included in the scope of consolidation on June 30, 2021, as
detailed in Note 8 "Interests in Other Entities". The consolidation scope of the Company for the current period is
same as the previous period as detailed in Note 7, "Change in Consolidation Scope".
II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transaction events, the financial statements
are prepared in accordance with the relevant provisions of Accounting Standard for Business Enterprises and the
following stated Significant Accounting Policies and Estimates.
2. Going concern
The Company has a going concern capability for 12 months from the end of the reporting period and no material
matters affecting the Company's going concern capability were found. Therefore, the financial statements are
presented on a going concern basis is reasonable.
III. Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing, production and sales of food, agricultural
and sideline products, grease, oil and leisure food. According to the characteristics of actual production and
operation and the provisions of relevant accounting standards for business enterprises, the Company and its
subsidiaries have formulated a number of specific accounting policies and accounting estimates for transactions
and events such as revenue recognition. For details, please refer to the descriptions in Note Ⅲ, 27 “Revenue". For
descriptions of the significant accounting judgments and estimates made by the management, please refer to Note
Ⅲ, 33 “Significant Accounting Judgments and Estimates"
1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to the
requirements of the Accounting Standards for Business Enterprises and their application guidelines, explanations
and other relevant provisions (collectively referred to as "ASBE") and truly and completely reflect the Company's
financial status, operating results, cash flow and other relevant information.
In addition, the preparation of this financial report refers to the Rules for Preparation and Reporting Information
Disclosure of Companies Offering Securities to the Public No.15-General Provisions on Financial Reports revised
by China Securities Regulatory Commission in 2014 and the presentation and disclosure requirements in Notice on
Matters Related to the Implementation of the New Accounting Standards for Enterprises by Listed Companies
(Accounting Department Letter [2018] No. 453)
22
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
2. Accounting Period and Business Cycle
The accounting period of the Company is divided into an annual period and an interim period. The accounting
interim period refers to the reporting period shorter than a full accounting year. The fiscal year of the Company
adopts the Gregorian calendar year, that is, from January 1 to December 31 of each year.
The normal business cycle is the period from the time the Company purchases assets for processing to the time
when cash or cash equivalents are realized. The Company uses 12 months as an business cycle and uses it as a
liquidity classification standard for assets and liabilities.
3. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries
operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore
subsidiaries of the Company determine USD as their bookkeeping standard currency based on the currencies in the
main economic environment in which they operate. The currency used by the Company in preparing these financial
statements is RMB.
4. The Accounting Treatment of Business Combination under the Same Control and Different Control
Business Combination refers to the transaction or event in which two or more separate enterprises are merged to
form one reporting entity. Business combination can be divided into business combination under the same control
and business combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties
before and after the combination, and the control is not temporary, so it is the business combination under the same
control. In case of business combination under the same control, the party that obtains control of other enterprises
participating in the combination on the combination date shall be the combination party, and the other enterprises
participating in the combination shall be the merged party. The combination date refers to the date on which the
combination party actually acquires control over the merged party.
The assets and liabilities acquired by the combination party are measured at the book value of the merged party
at the date of consolidation, including goodwill that was formed during acquisition by end controller . If the
difference between the book value of the net assets acquired by the merging party and the book value of the merged
consideration (or the total par value of the issued shares) paid by the merging party, and the capital reserve (share
capital premium) shall be adjusted; If the capital reserve (equity premium) is insufficient to offset, the retained
earnings shall be adjusted.
The direct expenses incurred by the merging party for the purpose of business combination shall be included in
the profits and losses of the current period when they are incurred.
(2) Business combination under different control
23
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties
before and after the merger, the enterprise merger is not under the same control. In case of business combination
under different control, the party that obtains control of other enterprises participating in the combination on the date
of purchase shall be the Purchaser, and the other enterprises participating in the combination shall be the Purchasee.
Purchase date means the date on which the Purchaser actually acquires control of the Purchasee.
For business combination under different control, the merger cost includes the assets, liabilities and fair value of
equity securities issued by the Purchaser in order to obtain the control over the Purchasee on the date of purchase,
and the intermediary fees such as audit, legal service, appraisal and consultation and other management fees for the
enterprise merger are used to record into the profits and losses of the current period when incurred. The transaction
costs of equity or debt securities issued by the Purchaser as a merger consideration are included in the initial
recognition amount of the equity or debt securities. Contingent consideration involved shall be included in the
consolidation cost at its fair value at the purchase date, and the consolidation goodwill shall be adjusted accordingly
if new or further evidence of the existence of circumstances at the purchase date appears within 12 months after the
purchase date and the adjustment or consideration is required. The consolidation cost incurred by the Purchaser and
the identifiable net assets acquired during the consolidation are measured at the fair value at the date of purchase.
The difference between the merger costs and the fair value shares of the identifiable net assets of the Purchasee at the
purchase date obtained in the merger is recognized as goodwill. If the combined cost is less than the fair value of the
identifiable net assets of the Purchasee in the merger, first, the fair value of the identifiable assets, liabilities and
contingent liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked. If the
consolidation cost is still smaller than the fair value share of the identifiable net assets of the Purchased obtained in
the consolidation after the re-check, the difference shall be recorded into the profits and losses of the current period.
When the Purchaser acquires the deductible temporary difference of the Purchasee, if it fails to recognize the
deferred income tax assets on the date of purchase because it does not meet the recognition conditions for the
deferred income tax, and within 12 months of the date of purchase, new or further information is obtained indicating
that the relevant circumstances at the purchase date already exist and the economic benefits from the temporary
difference deductible by the purchaser on the purchase date are expected to be realized, the relevant deferred income
tax assets shall be recognized, and the goodwill shall be reduced. If the goodwill is not sufficiently offset, the
difference shall be recognized as the current profit or loss; In addition to the above circumstances, the deferred
income tax assets related to the enterprise merger are recognized and included in the current profits and losses.
Through multi-transaction and step-by-step business combination under different control, according to the
Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for Business
Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business Enterprises
No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 5 (2) of Note 3), it is
determined whether the multiple transactions belong to the "package deal". In the case of a "package deal", the
24
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
accounting treatment shall be performed with reference to the description in the preceding paragraphs of this section
and Note 3, 13 "Long-term Equity Investments"; If the transaction is not a "package deal", the accounting treatment
shall be distinguished between the individual financial statements and the consolidated financial statements:
In the individual financial statements, the sum of the book value of the equity investment held by the Purchaser
prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the initial
investment cost of the investment; Where the equity of the Purchased held before the date of purchase involves other
comprehensive income, the other consolidated income associated with the investment is accounted for on the same
basis as the assets or liabilities directly disposed of by the Purchaser (i.e., except for the corresponding share in the
change caused by the acquisition of the net liability or net assets of the defined benefit plan remeasured in
accordance with the equity method, the rest is transferred to the current investment income).
In the consolidated financial statements, the equity of the Purchased held prior to the date of purchase is
remeasured according to the fair value of the equity at the date of purchase, and the difference between the fair value
and the carrying value is included in the investment income of the current period; Where the equity of the Purchasee
held before the date of purchase involves other comprehensive income, other consolidated income related thereto
shall be accounted for on the same basis as the direct disposal of the relevant assets or liabilities by the Purchaser (i.e.,
except for the corresponding share in the change caused by the acquisition of the net liability or net asset of the
defined benefit plan remeasured in accordance with the equity method, the rest is converted into the investment
income of the current period to which the acquisition date belongs).
5. Preparation Method of Consolidated Financial Statement
(1) Principles for determining the scope of the consolidated financial statement
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control
means that the Company has the authority over the Investee, enjoys a variable return by participating in the relevant
activities of the Investee, and has the ability to use its authority over the Investee to influence the amount of such
return. The scope of the merger includes the Company and all its subsidiaries. Subsidiary refers to the main body
controlled by the Company.
The Company will re-evaluate the above control definitions once the relevant facts and circumstances change,
which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production and
operation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be included
in the scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of, the operating
results and cash flows prior to the date of disposal have been appropriately included in the consolidated income
statement and consolidated cash flow statement; For subsidiaries disposed of in the current period, the opening
25
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
amount of the consolidated balance sheet is not adjusted. The operating results and cash flows of subsidiaries
increased by consolidation after purchase have been properly included in the consolidated income statement and
consolidated cash flow statement, and the opening and comparative amounts in the consolidated financial statements
have not been adjusted for subsidiaries that are not under the same control. The operating results and cash flows of
the subsidiaries increased by consolidation under the same control from the beginning of the consolidation period to
the consolidation date have been appropriately included in the consolidated profit statement and consolidated cash
flow statement, and the comparative amount of the consolidated financial statements has been adjusted at the same
time.
In the preparation of the consolidated financial statements, if the accounting policies or accounting periods
adopted by the subsidiaries are inconsistent with those adopted by the Company, necessary adjustments shall be
made to the financial statements of the subsidiaries in accordance with the accounting policies and accounting
periods of the Company. For subsidiaries acquired through business combination under different control, the
financial statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offset at the
time of preparation of the consolidated financial statements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the
Company for the current period are separately presented as minority shareholders' equity and minority shareholders'
profit or loss in the consolidated financial statements under shareholders' equity and net profit. The shares of
minority shareholders' equity in the net profits and losses of subsidiaries for the current period are shown as
"minority shareholders' profits and losses" under the net profit item in the consolidated income statement. Losses
shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders' equity of
the subsidiary at the beginning of the period, and still decrease by a number of shareholders' equity.
When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons, the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the purchase
date according to the original shareholding proportion shall be included in the investment income of the current
period of loss of control. Other comprehensive income related to the equity investment of the original subsidiary, in
the event of loss of control, the accounting treatment is performed on the same basis as the direct disposal of the
relevant assets or liabilities by the Purchased (i.e. converted to current investment income, except for changes
resulting from the re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the original
subsidiary). Thereafter, the residual equity shall be subsequently measured in accordance with the relevant
provisions of Accounting Standards for Business Enterprises No.2-Long-term Equity Investment or Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, as detailed in
26
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Note Ⅲ, 13-Long-term Equity Investment or Note Ⅲ, 9-Financial Instruments.
If the Company disposes of the equity investment in subsidiaries step by step until it loses control through
multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equity investment in
subsidiaries until it loses control belong to a package deal or not. The terms, conditions and economic impact of the
transactions for the disposal of equity investments in subsidiaries are in accordance with one or more of the
following circumstances and generally indicate that multiple transactions should be accounted for as a package deal:
① These transactions were entered into simultaneously or taking into account each other's influence; ② Only when
these transactions are taken together can a complete business result be achieved; ③ The occurrence of one
transaction depends on the occurrence of at least one other transaction; ④ It is not economical to consider a
transaction alone, but it is economical to consider it in conjunction with other transactions. For transactions that are
not part of the package deal, each transaction shall be accounted for in accordance with the principles applicable to
the "partial disposal of long-term equity investments in subsidiaries without loss of control" (as detailed in 13 of
Note Ⅲ) and the "loss of control over existing subsidiaries as a result of the disposal of part of the equity investments
or other reasons" (as detailed in the preceding paragraph), as appropriate. If the transactions involving the disposal of
equity investments in subsidiaries until the loss of control belong to a package deal, the transactions shall be
accounted for as a transaction involving the disposal of subsidiaries and the loss of control; However, the difference
between each disposal price and the share of the subsidiary's net assets corresponding to the disposal investment
prior to the loss of control is recognized in the consolidated financial statements as other consolidated gains and
transferred to the profit or loss for the current period of loss of control in the event of loss of control.
6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The
Company divides the joint venture arrangement into joint ventures and joint ventures in accordance with the rights
and obligations it enjoys in the joint venture arrangement. Joint operation refers to the joint venture arrangement in
which the Company enjoys the assets related to the arrangement and assumes the liabilities related to the
arrangement. A joint venture refers to a joint venture arrangement in which the Company only has rights over the net
assets of the arrangement.
The Company's investment in the joint venture is accounted for using the equity method, and shall be treated in
accordance with the accounting policy described in Note Ⅲ, 13 "Long-term Equity Investment Accounted by the
Equity Method".
The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by the Company
separately, and recognizes the assets and liabilities jointly held and assumed by the Company according to the shares
of the Company; recognizes the revenue generated from the sale of the share of joint operating output enjoyed by the
Company; recognizes revenue generated from the sale of output from joint operations on the basis of the Company's
share; confirms the expenses incurred by the Company individually and the expenses incurred by the joint operation
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
according to the shares of the Company.
When the Company invests or sells assets as a joint venture (such assets do not constitute business, the same
below), or purchases assets from the joint venture, the Company recognizes only the portion of the profits and losses
attributable to the other participants in the joint venture that arises from the transaction prior to the sale of such assets
to a third party. Where such assets are impaired in accordance with the provisions of Accounting Standards for
Business Enterprises No.8-Impairment of Assets, the Company shall fully recognize such losses in the case where
the assets are cast or sold by the Company to joint operations; For the assets purchased by the Company from the
joint operation, the Company recognizes the losses according to the shares it assumes.
7. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand, deposits that can be used for payment at any
time, and investments held by the Company with a short term (usually maturing within three months from the date of
purchase), high liquidity, easy conversion into cash of a known amount, and little risk of value change.
8. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation, the foreign currency transactions occurring in the Company shall be
converted into the bookkeeping functional currency amount at the spot exchange rate on the trading day, but the
foreign currency exchange business or transactions involving foreign currency exchange occurring in the Company
shall be converted into the bookkeeping functional currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency
non-monetary item
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the
balance sheet date, and the exchange difference arising therefrom shall be: ① The exchange difference arising from
the special foreign currency borrowings related to the acquisition and construction of assets eligible for
capitalization shall be handled in accordance with the principle of capitalization of borrowing costs; ② The
exchange difference of the hedging instruments used for effective hedging of the net investment in overseas
operations (the difference is included in other comprehensive income, and is not recognized as current profit or loss
until the net investment is disposed of); ③ Except for the amortized cost, the exchange differences arising from the
changes in the book balance of the available-for-sale monetary items in foreign currencies shall be included in the
other comprehensive income, and shall be included in the profits and losses of the current period.
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign
currency monetary items constituting net investment in overseas operations, the exchange differences arising from
exchange rate changes shall be included in other comprehensive income; When disposing of overseas operations, the
profits and losses shall be transferred to the current disposal period.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Non-monetary items in foreign currencies measured at historical cost shall still be measured at the bookkeeping
amount in functional currency translated at the spot exchange rate on the transaction date. For non-monetary items in
foreign currencies measured at fair value, the spot exchange rate at the date of fair value determination shall be
adopted for conversion. The difference between the converted amount in functional currency and the amount in
original functional currency shall be treated as the change in fair value (including the change in exchange rate), and
shall be recorded into the profits and losses of the current period or recognized as other comprehensive income.
(3) Translation method for financial statements in foreign currencies
Where the preparation of the consolidated financial statements involves overseas operations, if there are
foreign currency monetary items constituting net investment in overseas operations, the exchange differences
arising from exchange rate changes shall be as "foreign currency report conversion difference" and be confirmed
as other comprehensive income; When disposing of overseas operations, the profits and losses shall be transferred
to the current disposal period.
The foreign currency financial statements of overseas operations shall be converted into RMB statements in
the following ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on
the balance sheet date; Except for "undistributed profits", other items of shareholders' equity shall be converted at
the spot exchange rate at the time of occurrence. The income and expense items in the profit statement shall be
converted at the average exchange rate of the current period on the date of transaction. The undistributed profit at
the beginning of the period shall be the undistributed profit at the end of the period converted from the previous
year; The undistributed profits at the end of the year shall be calculated and listed according to the converted
profits distribution items; The difference between the converted asset items and the total amount of the liability
items and shareholders' equity items shall be recognized as other comprehensive income as the translation
difference in the foreign currency statements. In case of disposal of overseas operations and loss of control, the
balance in translation of the foreign currency statements related to the overseas operations as shown below in the
shareholders' equity items in the balance sheet shall be transferred to the profits and losses of the disposal period in
whole or in proportion to the disposal of the overseas operations.
Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average
exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate
changes on cash shall be presented separately in the statement of cash flows as an reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the
prior-period financial statements.
When disposing of all the owner's equity of the Company's overseas operations or losing the control over
overseas operations due to the disposal of part of the equity investment or for other reasons, if the following items
of shareholders' equity in the balance sheet are shown below, the balance in translation of the foreign currency
statement attributable to the owner's equity of the parent Company related to the overseas operation shall be
transferred to the profits and losses of the current disposal period.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
In the event that the proportion of overseas business interests is reduced due to the disposal of part of the
equity investment or for other reasons, but the control over overseas business operations is not lost, the balance in
the translation of the foreign currency statements related to the disposal of part of overseas business operations
shall be attributed to minority shareholders' interests and shall not be transferred to the profits and losses of the
current period. When disposing of part of the equity of an overseas operation as an associated enterprise or a joint
venture, the balance of the translation of the foreign currency statements related to the overseas operation shall be
transferred into the profits and losses of the current disposal period in the proportion of the overseas operation
disposed of.
9. Financial instruments
A financial asset or financial liability is recognized when the Company becomes a party to a financial
instrument contract.
(1) Classification, confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow characteristics of
financial assets, the Company divides financial assets into: Financial assets measured at amortized cost. Financial
assets measured at fair value with changes included in other comprehensive income. Financial assets that are
measured at fair value and whose movements are included in the current profits and losses.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value
and whose changes are included in current profits and losses, relevant transaction costs are directly included in
current profits and losses. For other types of financial assets, relevant transaction costs are included in the initial
recognition amount. Accounts receivable or notes receivable arising from the sale of products or the provision of
labor services that do not contain or take into account significant financing components shall be initially
recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.
① Financial assets measured at amortized cost
The Company's business model of managing financial assets measured in amortized cost is aimed at
collecting contractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent
with the basic lending arrangements, that is, the cash flow generated on a specific date is only the payment of
principal and interest based on the unpaid principal amount. For such financial assets, the Company adopts the
effective interest rate method and carries out subsequent measurement according to amortized cost. The profits or
losses arising from amortization or impairment are included into the current profits and losses.
② Financial assets measured at fair value with changes included in other comprehensive
income
The Company's business model for managing such financial assets is to collect and sell contractual cash flow,
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures these financial assets at fair value and their changes are included in other
comprehensive income, but impairment loss or gain, exchange gain or loss and interest income calculated
according to the effective interest rate method are included into the current profit and loss.
In addition, the Company designates some non tradable equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company shall record the
relevant dividend income of such financial assets into the current profits and losses, and the change of fair value
into other comprehensive income. When the financial asset is derecognized, the accumulated gains or losses
previously included in other comprehensive income will be transferred from other comprehensive income to
retained income and will not be included in current profits and losses.
③ Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured
at fair value with changes included in other comprehensive income into financial assets measured at fair value with
changes included in current profits and losses. In addition, during initial recognition, in order to eliminate or
significantly reduce accounting mismatch, the Company designated part of financial assets as financial assets
measured at fair value with changes included in current profit and loss. For such financial assets, the Company
adopts fair value for subsequent measurement, and the changes in fair value are included into the current profit and
loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair
value and whose changes are included in current profits and losses and other financial liabilities. For the financial
liabilities measured at fair value with the changes included into the current profits and losses, the relevant
transaction costs are directly included into the current profits and losses, and the relevant transaction costs of other
financial liabilities are included in the initial recognition amount.
① Fair value through Profit and Loss Financial liabilities
Financial liabilities measured at fair value with changes included in current profits and losses, which include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated to be measured at fair value with changes included in current profits and losses at initial recognition.
Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to their fair values. Except for those related to hedge accounting, changes in fair values are
included in current profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits and losses.
Changes in the fair value of this liability caused by changes in the Company's own credit risk are included in other
comprehensive income. When the liability is derecognized, the accumulated change in fair value caused by
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
changes in its own credit risk included in other comprehensive income is transferred to retained earnings. Changes
in fair value are accounted into current profits and losses. If the above-mentioned treatment of the impact of
changes in the credit risk of these financial liabilities will cause or expand accounting mismatch in profits and
losses, the Company will include all profits or losses of the financial liabilities (including the impact amount of
changes in the credit risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that
do not meet the conditions for termination of recognition or continue to be involved in the transferred financial
assets, other financial liabilities are classified as financial liabilities measured at amortized cost and subsequently
measured at amortized cost. Gains or losses arising from termination of recognition or amortization are included in
current profits and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ① The termination of
the contractual right to receive cash flow from the financial asset. ② The financial asset has been transferred, and
almost all risks and rewards related to the ownership of the financial asset have been transferred to the transferee.
③ The financial asset has been transferred. Although the enterprise has neither transferred nor retained almost all
risks and rewards in the ownership of the financial asset, it has given up its control over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financial
assets, and does not give up the control over the financial assets, the relevant financial assets shall be recognized
according to the extent of continuous involvement in the transferred financial assets, and the relevant liabilities
shall be recognized accordingly. The degree of continuous involvement in the transferred financial assets refers to
the risk level faced by the enterprise due to the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference
between the book value of the transferred financial assets and the sum of the consideration received due to the
transfer and the accumulated amount of changes in fair value originally included in other comprehensive income
shall be included into the current profits and losses.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of
the transferred financial assets shall be apportioned according to its relative fair value between the derecognized
part and the non derecognized part, and the difference between the sum of the consideration received due to the
transfer and the accumulated change in fair value originally included in other comprehensive income that shall be
apportioned to the derecognized part and the allocated aforesaid book amount shall be included into the current
profits and losses.
For financial assets sold by the Company with recourse, or for endorsement and transfer of held financial
assets, it is necessary to determine whether almost all risks and rewards in the ownership of the financial assets
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
have been transferred. If almost all risks and rewards in the ownership of the financial asset have been transferred
to the transferee, the recognition of the financial asset shall be terminated. If almost all risks and rewards on the
ownership of a financial asset are retained, the recognition of the financial asset shall not be terminated. If almost
all risks and rewards related to the ownership of financial assets have not been transferred or retained, it shall
continue to judge whether the enterprise retains control over the assets and carry out accounting treatment
according to the principles mentioned in the preceding paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved, the Company terminates
the recognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an
agreement to replace the original financial liabilities by assuming new financial liabilities. If the contract terms of
the new financial liabilities and the original financial liabilities are substantially different, the original financial
liabilities shall be derecognized and a new financial liability shall be recognized at the same time. If the Company
makes any substantial modification to the contract terms of the original financial liability (or part thereof), the
original financial liability shall be derecognized and a new financial liability shall be recognized in accordance
with the modified terms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference between its
book value and the consideration paid (including transferred non-cash assets or liabilities assumed) into the current
profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial
liabilities, and such legal right is currently enforceable, and the Company plans to settle the financial assets on a
net basis or realize the financial assets and settle the financial liabilities at the same time, the financial assets and
financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition, financial assets
and financial liabilities shall be listed separately in the balance sheet and shall not be offset against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a
liability in an orderly transaction on the measurement date. Where there is an active market for financial
instruments, the Company adopts quotations in the active market to determine their fair values. Quoted price in
active market refers to the price easily obtained from exchanges, brokers, industry associations, pricing service
agencies, etc. on a regular basis, and represents the price of market transactions actually occurred in fair trading. If
there is no active market for financial instruments, the Company uses evaluation techniques to determine their fair
values. Evaluation techniques include reference to prices used in recent market transactions by parties familiar
with the situation and willing to trade, reference to current fair values of other financial instruments that are
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
substantially the same, discounting cash flow technique, option pricing model, etc. In valuation, the Company
adopts valuation techniques that are applicable under current circumstances and are supported by sufficient
available data and other information, selects input values that are consistent with the characteristics of assets or
liabilities considered by market participants in transactions related to assets or liabilities, and gives priority to the
use of relevant observable input values as much as possible. If the relevant observable input value cannot be
obtained or it is not impracticable to obtain it, the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments
by the Company are treated as changes in equity, and transaction costs related to equity transactions are deducted
from equity. The Company does not recognize changes in the fair value of equity instruments.
Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the
Company's equity instruments during their existence shall be treated as profit distribution.
10. Impairment of financial assets
The financial assets of the Company that need to confirm the impairment loss are financial assets measured at
amortized cost and debt instrument investment measured at fair value with changes included in other
comprehensive income, mainly including notes receivable, accounts receivable, other receivables, debt investment,
other debt investment, long-term receivables, etc. In addition, for some financial guarantee contracts, impairment
reserves and credit impairment losses are also accrued in accordance with the accounting policies described in this
part.
(1) Recognition method of impairment provision
On the basis of expected credit losses, the Company sets aside impairment reserves and recognizes credit
impairment losses for the above items according to the applicable expected credit loss measurement method
(general method or simplified method).
Credit loss refers to the difference between all contractual cash flows receivable according to the contract and
all cash flows expected to be collected by the Company discounted according to the original actual interest rate, i.e.
the present value of all cash shortages. Among them, for the financial assets that have been purchased or incurred
credit impairment, the Company discounts them according to the actual interest rate adjusted by credit.
The general method of measuring expected credit loss refers to the Company's assessment of whether the
credit risk of financial assets has increased significantly since the initial recognition on each balance sheet date. If
the credit risk has increased significantly since the initial recognition, the Company will measure the loss reserve
by an amount equivalent to the expected credit loss during the entire period. If the credit risk has not increased
significantly since the initial recognition, the Company will measure the loss reserve according to the amount
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
equivalent to the expected credit loss in the next 12 months. In assessing the expected credit loss, the Company
takes into account all reasonable and evidence-based information, including forward-looking information.
For financial instruments with low credit risk on the balance sheet date, the Company measures the loss
reserve based on the expected credit loss amount within the next 12 months or the entire duration according to
whether the credit risk has increased significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognition
If the default probability of a certain financial asset in the expected duration determined at the balance sheet
date is significantly higher than the default probability in the expected duration determined at the time of initial
recognition, it indicates that the credit risk of the financial asset is significantly increased. Except for special
circumstances, the Company uses the change of default risk in the next 12 months as a reasonable estimate of the
change of default risk in the entire duration to determine whether the credit risk has increased significantly since
the initial recognition.
Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk of the
financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.
The Company will consider the following factors when evaluating whether the credit risk has increased
significantly
1） Whether there is any significant change in the actual or expected operating results of the debtor;
2） Whether there is any significant adverse change in the regulatory, economic or technological
environment of the debtor;
3） Whether there is any significant change in the value of the collateral or the quality of the guarantee or
credit enhancement provided by the third party, which are expected to reduce the economic motivation of the
debtor's repayment according to the time limit stipulated in the contract or affect the probability of default;
4） Whether there is any significant change in the expected performance and repayment behavior of the
debtor;
5） Whether there is any significant change in the Company's credit management methods for financial
instruments, etc.
On the balance sheet date, if the Company judges that the financial instrument has only low credit risk, the
Company assumes that the credit risk of the financial instrument has not increased significantly since the initial
recognition. If the default risk of a financial instrument is low, the borrower's ability to perform its contractual cash
flow obligations in a short period of time is strong, and even if there are adverse changes in the economic situation
and operating environment for a long period of time, it may not necessarily reduce the borrower's ability to
perform its contractual cash obligations, then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset, the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial
assets includes the following observable information:
1）The issuer or debtor has major financial difficulties;
2）The debtor violates the contract, such as default or overdue payment of interest or principal, etc.;
3）The creditor gives concessions that the debtor will not make under any other circumstances due to
economic or contractual considerations related to the debtor's financial difficulties;
4）The debtor is likely to go bankrupt or undergo other financial restructuring;
5）The active market of the financial assets disappears due to the financial difficulties of the issuer or the
debtor;
6）Purchase or generate a financial asset at a substantial discount, which reflects the fact that credit losses
have occurred.
Credit impairment of financial assets may be caused by the combined action of multiple events, but may not
be caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks, such as:
Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or
arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment
obligation.
In addition to the financial assets with individual credit risk assessment, the Company divides the financial
assets into different groups based on the common risk characteristics. The common credit risk characteristics
adopted by the Company include: Credit risk shall be assessed on the basis of the aging portfolio, the receivables
portfolio between the final controlling party and its subordinate units, the public maintenance fund and house
selling fund portfolio deposited in the housing provident fund management center, the deposit/margin portfolio,
and the petty cash ledger portfolio formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the
estimated credit losses are greater than the book amount of its current impairment reserve, the difference is
recognized as impairment loss. If it is less than the carrying amount of the current impairment reserve, the
difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
①Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount
equivalent to the entire duration. Based on the credit risk characteristics of bills receivable, they are divided into
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
According to the acceptor's credit risk classification, it should be the same
Commercial acceptance bill
as the "receivable" portfolio classification.
②Accounts receivable and other receivables
For receivables that do not contain significant financing components, the Company measures the loss reserve
according to the expected credit loss amount equivalent to the entire duration.
For receivables that contain significant financing components, the Company measures the loss reserve based
on whether the credit risk has increased significantly since the initial recognition, using the amount of expected
credit loss within the next 12 months or the entire duration.
According to whether the credit risk of other receivables has increased significantly since the initial
recognition, the Company measures impairment loss with an amount equivalent to the expected credit loss within
the next 12 months or the entire duration.
In addition to the accounts receivable and other receivables that individually assess credit risk, they are
divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Aging portfolio
Portfolio 2 A portfolio of receivables between the ultimate controller and its subordinate units
The portfolio of public maintenance funds and house sales funds deposited in the housing
Portfolio 3
provident fund management center
Portfolio 4 Deposit/margin portfolio
Portfolio 5 The portfolio of reserve fund ledger formed by the Company's staff loan
The accrual method of bad debt reserves for different portfolios:
Item Accrual method
According to the accrual proportion corresponding
Aging portfolio
to the aging period
Portfolio of receivables between the ultimate controlling party and Referring to the historical credit loss experience,
its subordinate units combined with the current situation and the forecast
The portfolio of public maintenance funds and house sales funds of future economic conditions, the expected credit
deposited into the MPF Management Center loss is calculated thr-ough the default risk exposure
Deposit/margin portfolio and the expected credit loss rate within the next 12
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Item Accrual method
The portfolio of reserve fund ledger formed by the Company's staff months or the entire duration, and the expected
loan. credit loss rate of the portfolio is zero.
a. In portfolio, the portfolio method of withdrawing bad debt reserves by aging analysis
Expected loss rate of Expected loss rate of Expected loss rate of other
Aging
notes receivable (%) accounts receivable (%) receivables (%)
Within 1 year (including 1 year, the
same below)
Among them: Within the credit period 0 0 0
(within 3 months)
Credit period~1 year 2 2 2
1-2 years 5 5 5
2-3years 20 20 20
3-4years 50 50 50
4-5years 80 80 80
More than 5 years 100 100 100
b. In the portfolio, the description of the accrual method for accrual of bad debt reserves by other methods is
given.
Expected loss rate
Expected loss rate of Expected loss rate of
Aging of notes receivable
accounts receivable (%) other receivables (%)
(%)
Accounts receivable between the final 0 0 0
controlling party and its subordinate u
Public maintenance fund and house sale fund 0 0 0
deposited into MPF Management Center
Deposit/margin 0 0 0
The reserve fund ledger formed by the 0 0 0
Company's staff loan.
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, turnover materials, developed products, in transit materials
inventory goods, reserve tanker storage commissioned processing, and manufacturing consignment, etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are valued at actual cost when they are acquired. Inventory costs include purchase costs,
processing costs and other costs. They are valued with weighted average method when they are used and issued.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve
Net Realizable Value refers to the amount of estimated selling price of inventories minus the estimated cost
till completion, estimated expenses for selling activity and related taxes and fees in daily activities. When
determining the net realizable value of inventories, solid evidence obtained shall be the basis, and the purpose of
holding the inventories and the impact of events after the balance sheet date shall be considered.
On the balance sheet date, inventories shall be measured at lower of cost and net realizable value. When the
net realizable value is lower than the cost, the provision for inventory devaluation shall be accrued. The provision
for inventory devaluation shall be accrued based on the difference between the cost of a single inventory item and
its net realizable value. The provision for inventory devaluation of a large number of inventories with low unit
prices shall be based on the type of inventory; for inventories related to the product range produced and sold in
same region, having the same or similar end use or purpose, and difficult to be separated from other items for
measurement, their provision for inventory devaluation can be combined and accrued.
After the provision for inventory devaluation is accrued, if the factors cause the previous written-down
inventory value have disappeared, and the situation results in the fact that the net realizable value of the inventories
higher than the book value, the amount of the provision for inventory devaluation that has been accrued shall be
reversed and included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are
received; packaging materials are amortized by one-off amortization method when they are
received.
12. Held-for-sale assets and disposal group
If the book value of a non-current asset or to-be-disposed portfolio is recovered by the Company mainly
through sale activities (including the exchange of non-monetary assets with commercial nature, the same below),
the non-current asset or to-be-disposed portfolio falls into held-for-sale category. The specific criteria: both of the
following conditions shall be satisfied: a non-current asset or to-be-disposed portfolio can be sold immediately
under the current conditions based on the practice of selling such asset or to-be-disposed portfolio in similar
transactions; the Company has already decided on the sale plan and obtained confirmed purchase commitment; the
sale is scheduled to be completed within one year. Among them, a Disposal Portfolio refers to a group of assets
that will be disposed of as a whole through sale or other approaches in a transaction, and the liabilities directly
associated with these assets transferred along with the assets in transaction. If the portfolio of assets or group of
portfolios of assets is allocated goodwill acquired in business merger in accordance with Accounting Standards for
Business Enterprises No. 8 - Asset Impairment, the Disposal Portfolio shall include the goodwill allocated to it.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated as
held-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset or
to-be-disposed portfolio is initially measured or measured on the balance sheet date, the book value shall be to the
net amount of fair value minus sales expenses, and the written-down amount shall be recognized as asset
impairment loss and included in current period profit or loss. The provision for impairment loss of the held-for-sale
asset shall be accrued. For a Disposal Portfolio, the confirmed impairment loss shall deduct the book value of the
goodwill in the Disposal Portfolio, then deduct the book value of the non-current assets determined by the
measurement on a pro-rata basis in accordance with the applicable Accounting Standards for Business Enterprises
No. 42 held-for-sale non-current assets, Disposal Portfolio and Termination of Operations (hereinafter referred to
as the “Guide for Held-For-Sale”). In the event of an increase of the book value of the held-for-sale Disposal
Portfolio minus sales expenses on the subsequent the balance sheet date, the amount previously written down shall
be recovered and be reversed within the mount of the asset impairment loss recognized in the non-current assets
measured by the measurement “Guide for Held-For-Sale” after being classified as held for sale asset, the reversal
amount shall be included in the current period profit or loss, and the book value of all non-current assets (except
for goodwill) determined by the measurement on a pro-rata basis in accordance with the applicable “Guide for
Held-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill that has been deducted and
the impairment loss of the assets recognized before the classification of the held-for-sale non-current assets in
accordance with the applicable “Guide for Held-For-Sale” shall not be reversed.
In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio, there is no accrual
or amortization for depreciation, and the interest from and other expenses from the liabilities in held-for-sale
Disposal Portfolio shall still be recognized.
When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category,
non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or
the non-current asset will be removed from the Held-For-Sale Disposal Portfolio, and be measured based on one of
the following two values, whichever is lower: (1) The book value before being classified as held-for-sale category
adjusted based on the depreciation, amortization or impairment that should have be confirmed if it is not classified
as held-for-sale category; (2) recoverable amount.
13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the
Company has control, joint control or significant influence on the invested entity. The long-term equity investment
of the Company that does not have control, joint control or significant impact on the investee shall be accounted as
a financial asset measured at fair value with its changes included into the current profits and losses. Among them,
if it is non-transactional, the Company may choose to designate it as a financial asset measured at fair value and its
changes are included in the accounting of other comprehensive income at the time of initial recognition. For details
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
of its accounting policies, please refer to Note Ⅲ, 9 “Financial Instruments".
Joint control refers to the control that the Company shares with other party/parties for an arrangement in
accordance with relevant agreements, and relevant activities of the arrangement can only be decided based on the
consensus of all parties sharing the control rights before making a decision. Significant Influence refers to power
of the Company to participate in the decision-making of the financial and operating policies of the investee, but the
Company cannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control, the
apportioned share of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the
long-term equity investment and the cash paid, the non-cash assets transferred, and the book value of the debts
assumed; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the
equity securities are issued as merger consideration, the apportioned share of the book value in the final
controller's consolidated financial statements on the combination date in accordance with the shareholders' equity
shall be the initial investment cost of the long-term equity investment, and the total par value of the issued shares is
taken as the share capital. The capital reserve shall be adjusted subject to the difference between the initial
investment cost of the long-term equity investment and the total par value of the shares issued; if the capital
reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity of combined parties
under the same control is obtained through multiple transactions and a business combination under the same
control is formed finally, it shall be treated differentially based on whether it is a “package deal”: if it belongs to a
“package deal”, all transactions will be treated as a transaction that obtains control. If it is not a “package deal”, the
apportioned share of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the
long-term equity investment and the sum of the book value of long-term equity investment before combination
date and the book value of the new consideration for the new share on the combination date. If the capital reserve
is insufficient for offsetting, the retained earnings shall be adjusted. The equity investments that are held prior to
the combination date and are recognized with equity recognized or as available-for-sale financial asset as other
comprehensive income will not be given accounting treatment for the moment.
For a long-term equity investment obtained from a combination of businesses not under the same control, the
initial investment cost of the long-term equity investment shall be based on the combination cost on the purchase
date. The combination cost includes the assets paid by purchaser, the liabilities incurred or assumed, and the sum
of the fair value of issued equity securities. Where the equity of combined parties not under the same control is
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
obtained through multiple transactions and a business combination under the same control is formed finally, it shall
be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal”, all transactions
will be treated as a transaction that obtains control. If it is not a “package deal”, the initial investment cost of the
long-term equity investment calculated by the cost method shall be calculated based on the sum of the book value
of the equity investment in the original holder and the new investment cost. The original share holding that
measured using equity method, the relevant other comprehensive income does temporarily not conduct accounting
treatment.
Intermediary expenses such as for auditing, legal services, assessment and other related expenses incurred by
a combining party or a purchaser for business combination shall be recognized in current period profit or loss
when incurred.
The equity investments other than formed by business combination shall be initially measured at cost. The
cost will be determined based on the following amount according to different methods of the acquisition of
long-term equity investment: the purchase price in cash actually paid by the Company; the fair value of the equity
securities issued by the Company, the value agreed in relevant investment contract or agreement; the fair value or
original book value of the assets exchanged in non-monetary asset exchange transaction; the fair value of the
long-term equity investment itself. Any expenses, taxes and other necessary expenses directly related to the
acquisition of long-term equity investments shall also be included in the cost of investment. The cost of long-term
equity investment for the additional investment that can exert significant influence on investee or implement joint
control but does not constitute control shall be the sum of the fair value of the originally held equity investment
recognized in accordance with the Accounting Standards for Business Enterprises No.. 22 – Recognition and
Measurement of Financial Instruments and the cost for new investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control over the
invested entity (except for those constituting joint operators) or have significant impact on the invested entity. In
addition, the Company's financial statements use the Cost Method to account for long-term equity investments,
which can control the long-term equity investment of the investee.
a. Long-term equity investment based on Cost Method
When accounting with Cost Method, long-term equity investment is priced at the initial investment cost, and
the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the
actual payment at the time of obtaining investment or the cash dividends or profits included in the consideration
but not yet issued, the current investment income shall be recognized according to the cash dividends or profits
declared by the investee.
b. Long-term equity investment accounted for by Equity Method
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
When accounting with Equity Method, if the initial investment cost of a long-term equity investment is
greater than the fair value share of the identifiable net assets of the investee when investing, and the initial
investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less than
the fair value share of the identifiable net assets of the investee when investing, the difference shall be included in
the current profit and loss, and the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method, the investment income and other comprehensive income are
recognized separately according to the shares of the net profit or loss and other comprehensive income that should
be enjoyed or shared, and the book value of the long-term equity investment should be adjusted at the same time.
The book value of long-term equity investment is reduced accordingly by calculating the share that should be
enjoyed according to the profit or cash dividend declared by the investee. The book value of long-term equity
investment shall be adjusted and included in the capital reserve for other changes in the owner's rights and interests
of the invested entity other than the net profit and loss, other comprehensive income and profit distribution. When
confirming the share of the net profit and loss of the investee, the net profit of the investee shall be adjusted and
confirmed on the basis of the fair value of the identifiable assets of the investee at the time of investment. If the
accounting policies and periods adopted by the invested entity are inconsistent with the Company, the financial
statements of the invested entity shall be adjusted in accordance with the accounting policies and periods of the
Company, and the investment income and other comprehensive income shall be confirmed accordingly. For the
transactions between the Company and the associates and joint ventures, the assets invested or sold do not
constitute a business, and the unrealized gains and losses from internal transactions are offset against the portion of
the Company that is attributable to the proportion of the shares, on this basis. investment profit and loss should be
confirmed. However, the unrealized internal transaction losses incurred by the Company and the investee are not
included in the impairment losses of the transferred assets. Where the assets invested by the Company into a joint
venture or an associates constitute a business, if the investor obtains long-term equity investment but does not
control, the fair value of the invested business shall be deemed as the initial investment cost of the new long-term
equity investment, and the difference between the initial investment cost and the book value of the invested
business is fully recognized in the current profits and losses. If the assets sold by the Company to a joint venture or
an associate that constitute a business, the difference between the consideration value obtained and the book value
of the business shall be fully recognized in the profits and losses of the current period.
When confirming the net loss that incurred by the investee should be shared, the book value of the long-term
equity investment and other long-term equity that substantially constitutes the net investment of the investee are
reduced to zero. In addition, if the Company has an obligation to bear additional losses to the investee, the
estimated liabilities shall be recognized according to the estimated obligations and included in the current
investment losses. If the investee achieves net profit in the following period, the Company shall resume
recognizing the share of income after making up for the unrecognized share of loss.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
For the long-term equity investment in the joint ventures and associates held by the Company for the first
time before the implementation of the new accounting standards, if there is a debit balance of equity investments
related to the investment, the current profits and losses shall be accounted for by the straight-line amortization of
the original remaining period.
c. Acquisition of Minority Equity
In the preparation of the consolidated financial statements, if the difference between the long-term equity
investment added by purchasing minority shares and the net assets share that should be continuously calculated by
the subsidiary Company from the purchase date (or the consolidation date) is calculated according to the
proportion of newly added shares, the retained earnings shall be adjusted; and if the capital reserve is insufficient
to offset, the retained earnings shall be adjusted.
d. Disposal of long-term equity investment
In the consolidated financial statements, the parent Company partially of disposes of the long-term equity
investment of the subsidiary without losing control, the difference of the corresponding net assets in the subsidiary
between the disposal price and the disposal of the long-term equity investment is included in the shareholders'
equity. it shall be treated in accordance with the relevant accounting policies described in “Notes on the
preparation of consolidated financial statements” in Note Ⅲ.5 .
For the disposal of long-term equity investment in other cases, the difference between the book value of the
disposed equity and the actual acquisition price shall be included in the current profits and losses.
If the long-term equity investment is accounted for by equity method, the remaining equity after disposal is
still accounted for by equity method, when disposing, the other comprehensive income which were originally
included in shareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities
directly disposed of by the investee. The owner's equity recognized as a result of changes in the owner's equity of
the investee other than net profit or loss, other comprehensive income and profit distribution, it should be carried
forward to the current profit and loss
For the long-term equity investment accounted by Cost Method, the remaining equity is still accounted by
Cost Method after disposal, other comprehensive income that recognized by equity method accounting or financial
instrument recognition and measurement criteria accounting before obtaining control over the investee shall be
accounted for on the same basis as the assets or liabilities directly disposed of by the investee, and shall be settled
to the current profit and loss in proportion. Changes of the net assets of investee in the owner's equity other than
net profit or loss, other comprehensive income and profit distribution 's that recognized by equity method shall be
settled to the current profit and loss in proportion.
Where the Company loses control over the investee due to disposal of part of its equity investment, when
preparing individual financial statements, if the remaining equity after disposal can exercise joint control or exert
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
significant influence on the investee, it shall be accounted for by equity method instead, and the remaining equity
shall be adjusted by accounting by equity method when it is deemed to be acquired. If the remaining equity after
disposal cannot be jointly controlled or exerts significant influence on the investee, it shall be accounted for
according to the relevant provisions of the financial instrument recognition and measurement criteria, and the
difference between the fair value and the book value on the date of loss of control. It is included in the current
profit and loss. Before the Company obtains control over the investee, other comprehensive income recognized by
equity method accounting or financial instrument recognition and measurement criteria is used to directly dispose
of the relevant assets with the investee, accounting treatment based on the same basis as the investee directly
disposes of related assets or liabilities when the control of the investee is lost, Accounting is treated on the same
basis as the liabilities. Changes in the owner's equity other than net profit or loss, other comprehensive income and
profit distribution of the investee's net assets recognized by the equity method are carried forward to the current
profit or loss when the control of the investee is lost. Among them, the remaining equity after disposal is accounted
for using the equity method. Where the remaining equity after disposal is accounted for by equity method, other
comprehensive income and other owner's equity should be settled by proportion. If the remaining equity is
accounted for using financial instrument recognition and measurement standard, all of other comprehensive
income and other shareholder’s equity should be settled.
If the Company loses its joint control or significant influence on the investee due to the disposal of part of the
equity investment, the remaining equity after disposal shall be accounted for according to the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the date of
loss of joint control or significant influence is recognised in the current profit or loss. The other comprehensive
income recognized in the original equity investment by the equity method is accounted for on the same basis as the
investee's direct disposal of related assets or liabilities when the equity method is terminated, Owner's equity
recognized as a result of changes in other owners' equity other than net profit or loss, other comprehensive income
and profit distribution of the investee should be transferred to current investment income when terminating the
equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions
until the loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are
treated as a transaction dealing with the equity investment of the subsidiary and losing control. The difference
between the book value of each long-term equity investment corresponding to the disposal price and the disposal
of the equity before loss of control is first recognized as other comprehensive income, and when the control is lost,
it is transferred to the current profit and loss of loss of control.
14．Investment Property
Investment Property refers to property held for the purpose of earning rent or capital appreciation, or both,
including land use rights that have been leased, land use rights that are held and prepared for transfer after
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
appreciation, and buildings that have been rented. Investment property is initially measured at cost. The expenses
related to investment property, if the economic benefits related to this asset are highly probable to flow into the
Company and the cost can be measured reliably, then the expense will account for as the cost of investment
property. Other expenses are accounted for in profit and loss when incurred.
The Company adopts the cost model to conduct subsequent measurement of investment property and
depreciation or amortization according to the policy consistent with the building or land use rights.
For details of the impairment test method and impairment provision method of property, please refer to Note
Ⅲ. 21 “Long-Term Asset Impairment”.
When the self-use property or inventory is converted into investment property or investment property is
converted into self-use property, the book value before conversion is used as the recorded value after conversion.
When the use of investment property is changed to self-use, the investment property is converted into fixed
assets or intangible assets from the date of change. When the use of self-use property changes to earn rent or
capital appreciation, the fixed assets or intangible assets are converted into investment property from the date of
change. In the case of investment property measured by the cost model when the conversion occurs, the book
value before conversion is used as the entry value after conversion; if it is converted into investment property
measured by the fair value model, the fair value of the conversion date is used as the entry value after conversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected to
obtain economic benefits from its disposal, the confirmation of the investment real estate shall be terminated.
Disposal income from the sale, transfer, retirement or damage of investment properties is charged to the current
profit and loss after deducting its book value and related taxes and fees.
15. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services, renting
or operating management, and having a service life of more than one fiscal year. Fixed assets are recognized only
when the economic benefits associated with them are likely to flow into the Company and their costs can be
reliably measured. Fixed assets are initially measured at cost and taking into account the impact of projected
abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following
the scheduled availability. The service life, estimated net residual value and annual depreciation rate of various
fixed assets are as follows:
Depreciation Depreciation Net esidual Annual depreciation rate
Category
Method period (Year) rate(%) (%)
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Depreciation Depreciation Net esidual Annual depreciation rate
Category
Method period (Year) rate(%) (%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
straight-line
uipElectronic eqment 3-10 4、5 9.50—32.00
depreciation
straight-line
Machinery equipment 5-28 4、5 3.39—19.20
depreciation
straight-line
Transport facility 5-10 4、5 9.50—19.20
depreciation
straight-line
Office equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Other equipment 5-28 4、5 3.39—19.20
depreciation
The estimated net residual value refers to the expected state after the estimated useful life of the fixed assets
has expired and is at the end of its useful life. The amount currently obtained by the Company from the disposal of
the assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets, please refer to Note
Ⅲ. 21 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an
asset, and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased
asset at the expiration of the lease term, the depreciation shall be calculated within the useful life of the leased
asset; If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term,
depreciation shall be calculated within a relatively short period of the lease term and the service life of the leased
assets.
(5) Others
The subsequent expenses related to fixed assets, if the economic benefits related to the fixed assets are likely
to flow in and their costs can be reliably measured, are included in the cost of fixed assets and the book value of
the replaced part should be terminated. The subsequent expenditures other than mentioned as above are recognized
in profit or loss in the period in which they are incurred.
The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
benefits by using or disposal. The difference between the disposal income from the sale, transfer, retirement or
damage of the fixed assets less the carrying amount and related taxes is recognized in profit or loss for the current
period.
The Company reviews the useful life, estimated net residual value and depreciation method of fixed assets at
least at the end of the year, and changes as an accounting estimate if changes occur.
16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure, including various
project expenditures incurred during the construction period, capitalized borrowing costs before the project reaches
the expected usable status, and other related expenses. Construction in progress is carried forward to fixed assets
when it is ready for its intended use.
For details of the impairment test method and impairment provision method for construction in progress,
please refer to Note Ⅲ. 21 “Long-Term Asset Impairment”.
17. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses,
and exchange differences arising from foreign currency borrowings. Borrowing costs directly attributable to the
acquisition, construction or production of assets eligible for capitalization, capitalization is began when asset
expenditures have occurred, borrowing costs have occurred, and the acquisition, construction or production
activities necessary to bring the assets to the intended usable or saleable state have begun. And capitalization is
stopped when the assets under construction or production that meet the capitalization conditions are ready for their
intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in which
they are incurred.
The interest expenses actually incurred in the current period of special borrowings shall be capitalized after
subtracting the interest income from the unused borrowing funds deposited into the bank or the investment income
obtained from the temporary investment. For the general borrowings, according to the accumulated asset
expenditures exceed the special borrowings. The capitalization amount is determined by multiplying the weighted
average of which accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by
the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weighted
average interest rate of general borrowings.
During the capitalization period, the exchange differences of foreign currency special borrowings are all
capitalized; the exchange differences of foreign currency general borrowings are included in the current profit and
loss.
Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventories that
require a substantial period of acquisition, construction or production activities to achieve the intended use or sale
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
status.
If the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or
production process and the interruption period lasts for more than 3 months, the capitalization of the borrowing
costs shall be suspended until the acquisition, construction or production of the assets resumes.
18. Right of use assets
Right of use assets refer to the right of the Company, as a lessee, to use the leased assets during the lease term.
(1) Initial measurement: At the beginning of the lease term, the Company shall make the initial measurement
of right of use assets according to the cost. The cost includes the following four items: ①the initial measured
amount of the lease liability. ②the amount of the lease payment made at or before the beginning of the lease term,
where there is a lease incentive, the relevant lease incentive that have been enjoyed shall be deducted.③the
incurred initial direct expenses is the incremental costs in the conclusion of the lease. ④the expected costs to
dismantle and remove the leased assets, restore the site where the leased assets are located, or the restore of the
leased assets to the agreed status in the lease terms, excluding from having occurred for the production of
inventory.
(2) Subsequent measurement: After the beginning of the lease term, the Company adopts the cost model to
make subsequent measurement of the right of use assets, that is, to measure the right of use assets by cost reducing
accumulated depreciation and accumulated impairment losses. The Company shall adjust the book value of the
right of use assets as the relevant provision of the lease guidelines.
From the beginning of the lease term, the Company shall depreciate the assets of the right of use. The right of
use assets usually depreciated at the beginning of the month in the lease term. According to the purpose of the right
of use, the amount of depreciation charge to the cost of the relevant assets or the current profit and loss. In
determining the method of deprecation of the right of use assets, the Company shall make a decision on the
manner of expected consumption of the economic benefits associated with the right of use assets, and shall
depreciate the right of use assets in a straight line method. The Company follow the principles on determining the
depreciation life of the right of use assets. If it is reasonable to determine the ownership of the leased assets at the
end of the lease term, deprecation shall be accrued for the remaining service life of the leased assets, and if not,
deprecation shall be accrued on the shorter term between the lease term and the remaining service life of the leased
assets.
In the event of impairment of the right of use assets, the Company shall make subsequent depreciation in
accordance with the book value of the right of use assets after deducting the impairment losses.
The Company has chosen not to confirm the right of use assets and lease liabilities for short-term lease (leases
with a lease term of not exceeding 12 months) and low-value asset leases, and to charge the relevant lease
payments to the current profit and loss or related asset costs in a straight line method for each period of the lease
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
term.
19. Intangible assets
(1) Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the
Company.
Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost
of intangible assets if the relevant economic benefits are likely to flow to the Company and its costs can be
measured reliably. Expenditure on other items other than this is recognized in profit and loss when incurred.
The acquired land use rights are usually accounted for as intangible assets. The related land use rights and
building construction costs of self-developed and constructed buildings are accounted for as intangible assets and
fixed assets, respectively. In the case of purchased houses and buildings, the relevant price is distributed between
the land use rights and the buildings. If it is difficult to allocate them reasonably, all of them are treated as fixed
assets.
Since the intangible assets with limited useful life are available for use, the original value minus the estimated
net residual value and the accumulated amount of impairment reserve shall be amortized by the straight-line
method during their expected service life. Intangible assets with uncertain service life shall not be amortized.
Among them, the useful life and amortization method of intellectual property are as follows:
Item Amortization period (year) Amortization method
Trademark 20 Straight-line method
At the end of the period, the useful life and amortization methods of intangible assets with limited useful life
are reviewed, and if any change occurs, it is treated as a change of accounting estimate. In addition, the useful life
of intangible assets with uncertain service life is also reviewed. If there is evidence that the period for which the
intangible assets bring economic benefits to the enterprise is foreseeable, the useful life of intangible assets is
estimated and amortized according to the amortization policy of intangible assets with limited useful life
(2) Research and development expenditure
The Company's expenditure for internal research and development project is divided into research phase
expenditure and development phase expenditure.
Expenditures for the research phase shall be recognized in profit or loss when incurred.
Expenditures for the development phase that meet the following conditions shall be recognized as intangible
assets, and expenditures in the development stage that fail to meet the following conditions are included in current
profit and loss:
a. It is technically feasible to complete the intangible asset to enable it to be used or sold.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
b. The intent to complete the intangible asset and use or sell it;
c. The way in which intangible assets generate economic benefits, including the ability to prove that the
products produced from the intangible assets having a market or the intangible assets having a market, and the
intangible assets will be used internally, which can prove its usefulness;
d. sufficient technical, financial resources and other resources for supporting the development of the
intangible assets and the ability to use or sell the intangible assets.
e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.
If it is impossible to distinguish the expenditures between research phase and development phase, all research
and development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method, please refer to Note Ⅲ. 20
“Long-Term Asset Impairment”.
20. Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting
period and subsequent periods with amortization period of more than one year. The Company's long-term deferred
expenses mainly include lease of land use right and renovation costs of factory building. Long-term deferred
expenses are amortized on a straight-line basis over the estimated benefit period.
21. Long-term assets impairment
For fixed assets, construction in progress, intangible assets with limited useful life, investment property
measured by cost model, and non-current non-financial assets such as long-term equity investments in subsidiaries,
joint ventures and associates, the Company determines whether there is any indication of impairment on the
balance sheet date. If there is any indication of impairment, the recoverable amount is estimated and the
impairment test is carried out. Goodwill, intangible assets with uncertain service life and intangible assets that not
yet ready for use are tested for impairment annually, regardless of whether there is any indication of impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book
value, the impairment provision is made based on the difference and is included in the impairment loss. The
recoverable amount is the higher of the fair value of the asset less the disposal expense and the present value of the
estimated future cash flow of the asset. The fair value of assets is determined according to the sale agreement price
in a fair transaction. If there is no sales agreement but there is an active market for the asset, the fair value is
determined according to the buyer's bid for the asset; if there is neither sales agreement nor active market for
assets, the fair value of assets shall be estimated based on the best information available. Asset disposal expenses
include legal fee, taxes, transportation expenses and direct expenses incurred to make assets saleable. The present
value of the estimated future cash flow of an asset is determined by the appropriate discount rate discounting and
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
the estimated future cash flow generated by the asset during its continuous use and final disposal. The asset
impairment provision is calculated and confirmed based on individual assets. If it is difficult to estimate the
recoverable amount of an individual asset, the recoverable amount of the asset is determined by the asset group
which the asset belongs to. An asset group is the smallest portfolio of assets that can generate cash inflows
independently.
The book value of the goodwill listed separately in the financial statements is amortized into asset groups or
portfolios that are expected to benefit from the synergies of business combinations when impairment tests are
conducted. The test results show that the recoverable amount of the asset group or portfolio containing the assessed
goodwill is lower than its book value, the corresponding impairment losses should be confirmed. The amount of
impairment loss is first deducted from the book value of the goodwill amortized to the asset group or portfolio, and
then deducted proportionally from the book value of other assets according to the proportion of the book value of
assets other than goodwill in the asset group or portfolio.
Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value is
restored in the future period.
22. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration,
Post-employment Benefits, Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages, bonuses, allowances and subsidies, employee
welfare fees, medical insurance premiums, maternity insurance premiums, work injury insurance premiums,
housing fund, labor union funds, employee education funds, and non-monetary benefits. The Company recognizes
the actual short-term employee's remuneration as a liability in the accounting period in which employees provide
services to the Company and recognizes them in profit or loss or related asset costs. Non-monetary benefits are
measured at fair value.
Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities.
The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a
Defined Contribution Plan is adopted, the corresponding amount of the deposit shall be included in the relevant
asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability based
on a fixed fee paid to an independent fund and is included in the current profit and loss or related asset costs; (2)
The Defined Benefit Plan is accounted for using the expected cumulative benefits unit method Specifically, the
Company will convert the welfare obligation arising from the Defined Benefit Plan into the final value of the
departure time according to the formula determined by the expected cumulative benefits unit method; then it is
attributed to the employee's in-service period and is included in the current profit and loss or related asset cost.
If the labor relationship with the employee is terminated before the employee's labor contract expires, or if the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
employee is encouraged to accept the reduction voluntarily, when cannot withdrawing unilaterally the dismissal
benefits provided by the termination of the labor relationship plan or the reduction proposal, and when confirming
the costs associated with the restructuring involving the payment of the dismissal benefits, whichever is earlier, the
Company will recognize the employee compensation liabilities arising from the dismissal benefits, and included in
the current profit and loss. However, if the dismissal benefits are not expected to be fully paid within 12 months
after the end of annual reporting period, they shall be treated in accordance with other long-term employee
compensations.
The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal
benefits. The Company will pay the internal retired staff the salary and the social insurance premiums from the
employee's lay-off to normal retirement, and will include in the current profit and loss (dismissal benefits) when
the conditions of the estimated liabilities are met.
If the other long-term employee benefits provided by the Company to the employees are in line with the
Defined Contribution Plan, they shall be accounted for Defined Contribution Plan, and otherwise accounted for the
Defined Benefit Plan.
22. Lease liabilities
At the beginning of the lease term, the Company recognize the present value of the non-payable lease
payment as lease liabilities, without the short lease and low-value lease assets. On calculating the present of the
lease payment, the Company adopt the lessee’s incremental borrowing rate as the discount rate. The Company
calculates the interest expense for each period in the lease term of the lease liabilities as the discount rate and
counts it towards the current profit and loss. The variable lease payments that not included in the lease liability
measurement charge to the current profit and loss on occurring. After the start of the lease term, the Company
remeasures the lease liability at the present value of the changed lease payment amount when there is a change in
the actual fixed payment amount, the index or ratio used to determine the lease payment, the evaluation results of
the purchase option, the renewal option or termination option change.
24. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognized as
estimated liabilities: (1) The obligation is the current obligation assumed by the Company; (2) The performance of
this obligation is likely to result in the outflow of economic benefits; (3) The amount of the obligation can be
reliably measured.
On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money
related to contingencies, the estimated liabilities are measured in accordance with the best estimate of the
expenditure required to perform the relevant current obligations.
If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
the third party, the compensation amount will be separately recognized as an asset when it is basically determined
to be received, and the confirmed compensation amount does not exceed the book value of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more
than the expected economic benefit. If the contract to be executed becomes a loss contract, and the obligation
arising from the loss contract satisfies the conditions for the recognition of the above-mentioned estimated
liabilities, the portion of the contract's estimated loss that exceeds the recognized impairment loss (if any) of the
contracted asset is recognized as the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed, formal, and have been announced to the public, the amount of the
estimated liabilities are determined based on the direct expenses related to the reorganization, subject to the
recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of
business sold, the obligation related to the reorganization is confirmed only when the Company promises to sell
part of the business (that is, when the binding sale agreement is signed).
25. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined
based on an equity instrument in order to obtain services from employees or other parties. Share-based Payments
include equity-settled share payment and cash-settled share payment.
a) Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value of
the granting of employees' equity instruments at the grant date. If the fair value is vested in the completion of the
waiting period of service or the fulfillment of the required performance conditions, during the waiting period, the
amount of the fair value is calculated by the straight-line method into the relevant costs or expenses based on the
best estimate of the number of vesting equity instruments; Or If the vesting right is granted immediately after the
grant, the calculation of the amount of the fair value is included in the relevant cost or expense on the grant date,
and the capital reserve is increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate based on the
latest information on the changes in the number of employees with vesting rights and corrects the number of equity
instruments that are expected to be vested. The impact of the above estimates shall be included in the current
related costs or expenses, and the capital reserve is adjusted accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of
other parties' services can be reliably measured, the fair value of other services shall be measured at the fair value
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
on the date of acquisition; If the fair value of the other party's services cannot be measured reliably, the fair value
shall be measured at the fair value of the equity instrument at the date the service is acquired, and is included in the
relevant cost or expense, which increases the shareholders' equity accordingly.
b) Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company
based on shares or other equity instruments. If the vesting right is available immediately after the grant, the
relevant costs or expenses shall be included on the date of grant, and the liabilities shall be increased accordingly;
if vesting right is available after the service is completed within the waiting period or met the required
performance conditions, based on the best estimate of the vesting rights on each balance sheet date of the waiting
period, according to the fair value of the liabilities assumed by the Company, the services obtained in the current
period are included in the cost or expense, and the liabilities are increased accordingly.
The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the
settlement of the relevant liabilities, and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan, if the modification increases the fair value of the
equity instruments granted, the increase in the fair value of the equity instruments is recognized accordingly. The
increase in the fair value of equity instruments refers to the difference between the fair value of the equity
instruments before and after the modification. If the modification reduces the total fair value of the share-based
payment or adopts other methods that are not conducive to the employee, the service obtained shall continue to be
accounted for, as if the change has never occurred, unless the Company cancels some or all of equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the granted
equity instrument as an accelerated exercise, and the amount to be recognized in the remaining waiting period will
be immediately included in the current profit and loss, and the capital reserve will be recognized. If the employee
or other party can choose to meet the non-vesting conditions but fails to meet the waiting period, the Company will
treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or
Actual Controllers
In respect of the share-based payment transaction between the Company and the shareholders or actual
controllers of the Company, If one of the settlement enterprise and the service receiving enterprise is in the
Company and the other is outside the Company, it shall be accounted for in the consolidated financial statements
of the Company according to the following provisions:
a.) If the settlement enterprise settles with its own equity instrument, the share-based payment transaction
shall be treated as equity-settled share-based payment; otherwise, it shall be treated as a cash-settled share-based
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
payment.
If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the long-term
equity investment of the serviced enterprise according to the fair value of the equity instrument at the grant date or
the fair value of the liability to be assumed, and the capital reserve (other capital reserve) or liabilities shall be
recognized.
b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments,
the share payment transaction shall be treated as equity-settled share payment; if the serviced enterprise has
settlement obligation and grants its employees other than its own equity instruments, the share payment transaction
shall be treated as a cash-settled share payment.
For the share based payment incurred between companies within the group, if the serviced enterprise and
settlememt enterprise are not the same, then the payment should be recpgnized and measured in their individual
financial statements, they should be accounted for using the above principles
26. Preferred Stock, Perpetual Capital Securities and Other Financial Instruments
(1) Distinction between perpetual capital securities and Preferred Stock
Financial instruments such as perpetual bonds and preferred stocks issued by the Company, as well as
meeting the following conditions, shall be used as equity instruments:
a.) The financial instrument does not include contractual obligations to deliver cash or other financial assets to
other parties or to exchange financial assets or financial liabilities with other parties under potentially adverse
conditions.
b.) In the case of the financial instrument is to be settled or available with the Company's own equity
instruments in the future, if the financial instrument is a non-derivative, it does not include the contractual
obligation to deliver a variable amount of its own equity instruments; if it is a derivative, the Company can only
settle the financial instrument by exchanging a fixed amount of cash or other financial assets with a fixed amount
of its own equity instruments.
Except for financial instruments that can be classified under the above conditions, other financial instruments
issued by the Company should be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they are recognized
as a liability based on the fair value of the liability component, and are recognized as “other equity instruments”
based on the amount actually received after deducting the fair value of the liability component. The transaction
costs incurred in issuing a compound financial instrument are apportioned in proportion to their respective total
issue price between the liability component and the equity component.
(2) Accounting treatment methods such as perpetual capital securities and preferred stocks
Related interest, dividends, gains or losses of financial instruments such as perpetual capital securities and
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
preferred stocks classified as financial liabilities, and gains or losses arising from redemption or refinancing, are
included in the current profits and losses except for borrowing costs that meet the capitalization conditions (see
Note 3, 17 “Borrowing Fees”).
When financial instruments such as perpetual capital securities and preferred stocks classified as equity
instruments are issued (including refinancing), repurchased, sold or cancelled, the Company shall treat it as a
change in equity, and related transaction costs are also deducted from equity. The Company's allocation of equity
instrument holders is treated as profit distribution.
The Company does not recognize changes in the fair value of equity instruments.
27. Revenue
The Company's operating income mainly includes income from selling goods, income from providing
services, royalty income, interest income, etc. When the Company signs a contract, it evaluates the contract,
identifies the individual performance obligations contained in the contract, and determines whether the individual
performance obligations are performed within a certain period of time or at a certain point of time. When the
Company has fulfilled all the performance obligations in the contract, the revenue shall be recognized respectively
according to the transaction price apportioned to the performance obligations.
(1) Revenue recognition for fulfilling performance obligation at a certain time point
Generally, the Company recognizes the revenue from the sales of goods based on the transaction price
apportioned to the single performance obligation when the customer obtains the control right of the relevant goods
on the basis of comprehensively considering the following factors: the Company has the right to receive payment
in respect of the goods or services currently, that is, the customer has the obligation to pay for the goods currently;
the Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
ownership of the goods; The Company has transferred the physical goods of the commodity to the Customer or the
Customer has obtained the qualification of physical goods right of the commodity. The consideration obtained by
the Company in respect of the transfer of the commodity is likely to be recovered; Other indications that the
customer has taken control of the commodity.
The specific principles of the Company's sales revenue recognition are as follows: when the commodity have
been delivered to the customer and signed by the customer for confirmation, or the ownership certificate of the
commodity has been delivered to the customer, the sales revenue is recognized when the Company has received
the payment or obtained the evidence of payment.
(2) Revenue recognition for fulfilling performance obligation within a certain period of time
For the performance obligations performed in a certain period of time, such as the services provided, the
Company adopts the output method or input method to determine the appropriate performance progress, and
recognizes the revenue according to the performance progress in that period of time. On the balance sheet date, the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Company shall recognize the current income according to the total transaction price of the contract multiplied by
the progress of performance minus the accumulated recognized income. If one of the following conditions is
satisfied, it is regarded as the performance obligation performed during a certain period of time: the Customer
obtains and consumes the economic benefits arising from the performance of the Company at the same time of the
performance of the Company; Customers can control the goods under construction during the performance of the
contract; The products produced by the Company during the performance of the Contract are of irreplaceable use,
and the Company shall be entitled to receive payment for the accumulated part of the completed performance so
far during the whole term of the Contract. Otherwise, the Company recognizes revenue at the point when the
Customer acquires control of the relevant goods or services.
The Company's rights to receive consideration for goods or services transferred to the Customer (and such
rights depend on factors other than the time passage) are presented as contractual assets, which are subject to
impairment on the basis of expected credit losses. The Company's right to collect consideration from customers
unconditionally (only depending on the passage of time) is listed as receivables. The obligation of the Company to
transfer goods or services to customers for which consideration has been received or receivable is presented as a
contractual liability.
28. Contract cost
1. Contract performance cost
The cost incurred by the Company for the performance of the contract, which does not fall within the scope of
other accounting standards for business enterprises other than the income standard and meets the following
conditions at the same time, is recognized as an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs explicitly borne by the customer and other costs incurred
solely as a result of the contract;
(2) The cost increases the Company's resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the amortization period
has exceeded one normal operating cycle at the time of its initial recognition.
2. Contract acquisition cost
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall be
recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if the
Company does not obtain the contract.
3. Amortization of contract costs
The assets related to the contract cost mentioned above shall be amortized at the time of performance of the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
obligation or according to the performance progress on the same basis as the income recognition of the commodity
or service related to the asset and shall be recorded into the current profit and loss.
4. Impairment of contract cost
If the book value of the above assets related to the contract cost is higher than the difference between the
residual consideration expected to be obtained by the Company due to the transfer of the goods related to the assets
and the estimated cost to be incurred for the transfer of the relevant goods, the excess part shall be set aside as an
impairment provision and recognized as an impairment loss of the asset.
29. Government grants
Government grant refers to the Company's acquisition of monetary and non-monetary assets from the
government free of charge, excluding the capital invested by the government as an investor and enjoying the
corresponding owner's rights and interests. Government grants include assets-related grants and revenue-related
grants. The Company defines the government grant obtained for the purchase and construction of long-term assets
or for the formation of long-term assets in other ways as the government grant related to assets; the remaining
government grant is defined as the government grant related to income. If the object of grants is not specified in
government documents, the grants shall be divided into income-related government grants and assets-related
government grants in the following ways: (1) If the government document clarifies the specific project for which
the grant is targeted, the proportion of the expenditure amount of the assets to be formed and the amount of the
expenditures included in the expenses in the budget of the specific project are divided, and the proportion of grant
division needs to be reviewed on each balance sheet day and changed if necessary. (2) In government documents,
if the purpose is expressed only in general terms and no specific project is specified, the grant shall be regarded as
a government grant related to the income. Where a government grant is a monetary asset, it shall be measured
according to the amount received or receivable. If the government grants are non-monetary assets, they shall be
measured at the fair value; if the fair value cannot be obtained reliably, they shall be measured at the nominal
amount. Government grants measured in nominal amounts shall be recognized directly in current profits and
losses.
The Company usually confirms and measures the government grant according to the amount when it is
actually received. However, if there is conclusive evidence at the end of the period that the relevant conditions
stipulated in the financial support policy can be met and the financial support funds are expected to be received, it
shall be measured according to the amount receivable. Government grants measured in accordance with the
amount receivable shall meet the following conditions at the same time: (1) The amount of the subvention
receivable has been confirmed by the authorized government departments, or can be reasonably calculated
according to the relevant provisions of the formally issued financial fund management measures, and there is no
significant uncertainty in the amount expected; (2) According to the "Regulations on the Openness of Government
Information" that the local financial department officially released and in accordance with the provisions of the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
"Regulations on the Openness of Government Information," the financial support project and its financial fund
management measures should be inclusive (any eligible enterprise can apply for them), rather than being
specifically tailored to specific companies; (3) The relevant grant approval has clearly promised the payment
period, and the allocation of the payment is guaranteed by the corresponding budget, so it can be reasonably ensure
that it can be received within the prescribed time limit; (4) Other relevant conditions (if any) to be met in
accordance with the specific circumstances of the Company and the grants.
Government grants related to assets are recognized as deferred earnings and are divided into current profits
and losses in a reasonable and systematic way during the service life of the assets concerned. The government
grants related to revenue, which are used to compensate for the related cost or loss in the subsequent period, shall
be recognized as deferred income, and shall be recognized in profit or loss in the period in which the related costs
or losses are recognized; if it is used to compensate the related costs or losses that has occurred, it shall be directly
recognized in the current profit and loss.
It includes government grants related to both assets and income, and different parts are separately classified
for accounting treatment; if it is difficult to distinguish, the whole is classified as government grants related to
income.
Government grants related to the daily activities of the Company shall be included in other income or cost
deductions according to the nature of the economic business; government subsidies unrelated to daily activities
shall be included in the non-operating revenues and expenses.
When the recognized government grants need to be returned, if there are relevant deferred earnings balances,
the book balance of related deferred earnings shall be deducted, and the excess part shall be included in the current
profits and losses or the book value of assets shall be adjusted, otherwise, the book value of assets shall be directly
included in the current profits and losses.
The Company will obtain preferential policy loans discount in accordance with the finance will be allocated
to the loan bank discount funds and the finance will be directly allocated to the Company discount funds in two
cases:
(1) If the finance department allocates the discount interest funds to the lending bank, and the lending bank
provides the loan to the Company at the policy preferential interest rate, the Company chooses to conduct
accounting treatment according to the following methods: the loan amount actually received shall be taken as the
entry value of the loan, and the relevant borrowing costs shall be calculated in accordance with the loan principal
and the policy preferential interest rate.
(2) If the finance allocates the discount funds directly to the Company, the Company will offset the
corresponding discount against the relevant borrowing costs.
30. Deferred Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous
periods are measured by the expected amount of income tax payable (or returned) in accordance with the
provisions of the Tax Law. The amount of taxable income on which current income tax expenses are calculated is
based on the corresponding adjustment of pre-tax accounting profits in the reporting period in accordance with the
relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis, and the temporary
difference between the book value of items that are not recognized as assets and liabilities but which can be
determined as their tax basis according to the tax law, are confirmed by the balance sheet liability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition
of an asset or liability arising from a transaction that is neither a business combination nor an accounting profit or
taxable income (or deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for
taxable temporary differences related to investments in subsidiaries, associates and joint ventures, if the Company
is able to control the turnaround time of temporary differences, and the temporary difference is unlikely to be
reversed in the foreseeable future, the related deferred income tax liabilities shall not be recognized. Except for the
above exceptions, the Company recognizes all other deferred income tax liabilities arising from taxable temporary
differences.
Taxable temporary differences which related to the initial recognition of an asset or liability arising from a
transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss),
relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences
related to investments in subsidiaries, associates and joint ventures, if the temporary difference is unlikely to be
reversed in the foreseeable future, or the amount of taxable income used to offset the temporary difference is
unlikely to be obtained in the future, the deferred income tax assets concerned shall not be recognized. Except for
the above exceptions, the Company recognizes other deferred income tax assets that can offset temporary
differences, subject to the amount of taxable income that is likely to be obtained to offset temporary differences.
For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding
deferred income tax assets are recognized to the extent that it is probable that the future taxable income shall be
used to offset the deductible losses and tax credits.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured
at the applicable tax rates in the period in which the related assets are recovered or the related liabilities are
recovered in accordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value of
deferred income tax assets is written down if it is likely that sufficient taxable income will not be available to
offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient taxable
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
income, the amount written down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.
In addition to recognizing that the current income tax and deferred income tax related to other transactions
and matters directly included in shareholder's rights and interests shall be recognized in other comprehensive
income or shareholder's rights and interests, and the book value of adjusted goodwill from deferred income tax
resulting from the merger of enterprises, the other current income tax and deferred income tax expenses or gains
shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the Company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time, the Company's current income tax assets and current income tax
liabilities shall be presented on a net basis after the offset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis,
and deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same
tax administration department on the same tax payer or to different tax payers, but in the future, during each
important period of deferred income tax assets and liabilities being reversed, the taxpayer involved intends to settle
the current income tax assets and liabilities on a net basis, or acquire assets and pay off liabilities simultaneously,
the deferred the income tax assets and deferred income tax liabilities of the Company shall be presented on a net
basis after offset.
31. Lease
(1) Identification of the lease.
Lease refers to a contract in which the lessor cedes the right to use the right of asset to use to the lessee for a
period. At the beginning date of the contract, the Company evaluates whether it is a lease or include in the contract,
which one of the contracts parties cedes the right to control one or more identified assets in a certain period to
exchange for a price. To determine whether the contract cedes the right to control the identified assets in a certain
period, the Company evaluates whether the customer in the contract is entitled to almost all financial benefits
occurred by the identified assets and to dominate the use of identified assets during the period of use. If the
contract contains many separate leases, the Company will break up the contract and make each lease accounting
treatment separately. If the contract includes both the lease and non-lease portions, the Company shall separate the
lease and non-lease parts for accounting treatment.
(2) The Company as a lessee
1) Lease Confirmation. On the beginning of the lease term, the Company recognizes the right of use assets
and lease liabilities for the lease. Recognition and measurement of use rights assets and lease liabilities Notes III,
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
(18) "Right of use assets" and notes 3 and (23) "Lease liabilities".
2) Lease modifications. Lease modification refer to modifications in lease scope, lease value, lease term out
of the contract, including the addition or termination of the right to use one or more lease assets, the extension or
shortening of the lease term stipulated in the contract. The effective date of the lease modifications refer to the date
on which the parties agree on the lease modifications. The Company treats the lease modification as a separate
lease for accounting when lease occurs to modify and meet the followings: ①The lease modification extends the
lease scope or the lease term by adding the right to use one or more lease assets. ②The increased value is
equivalent to the amount adjusted for the separate price of the extended scope and term as the circumstance of the
contract.. Lease modification is accounted as a separate lease
Contingent rentals shall be included in current profits and losses when actually occurring. On the effective
date of the lease modification, the Company shall, in accordance with the relevant provisions of the lease
guidelines, apportion the value of the changed contract and re-determine the lease term afterwards. The revised
discount rate is used to discount the changed lease payment in order to re-measure the lease liability.
In calculating the present value of the lease payment after the modification, the Company shall use the
lease-included interest rate for the remaining lease period as the discount rate, and if it is unable to determine the
lease-included interest rate for the remaining lease period, the Company shall use the incremental loan rate of the
lessee as the discount rate on the effective date of the lease modification. With regard to the impact of the above
lease liability adjustment, the Company shall deal with the followings: ①If the lease modification results in a
reduction in the lease scope or in the lease term, the lessee shall reduce the book value of the right of use assets
and include in the profit or loss related to the partial or complete termination of the lease as a profit or loss in the
current period. ②If other lease modifications result in remeasuring of lease liabilities, the lessee adjusts the book
value of the right of use assets accordingly.
3) Short-term leases and low-value asset leases The Company has chosen not to recognize right of use assets
and lease liabilities for short-term leases and low-value asset leases where the lease term is not more than 12
months and single lease assets are brand new assets. The Company shall charge the relevant asset costs or current
profits and losses in accordance with the straight-line method or other systematic reasonable methods for each
period of the lease term.
(2) The Company as a lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Company, as a lessor, divides the
lease into a financial lease and an operating lease at the beginning of the lease. If a lease essentially transfers
almost all the risks and rewards associated with ownership of the leased assets, the lessor classifies the lease as a
financial lease and a lease other than a financial lease as an operating lease. A lease is usually classified as a
financial lease if it has one or more of the following circumstances: ① At the end of the lease term, the
ownership of the leased assets is transferred to the lessee; ② the lessee has the option to purchase the leased
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
assets, and the purchase price is sufficiently low compared to the fair value of the leased assets at the time of the
expected exercise of the option, and thus ③the lease term accounts for the majority of the life of the leased asset
(not less than 75 per cent of the lease asset life) ; ④ at the commencement date of the lease, although the
ownership of the asset is not transferred, may reasonably be established at the beginning of the lease, The present
value of the lease receipts is almost equal to the fair value of the leased assets (not less than 90 per cent of the fair
value of the leased assets); ⑤ The nature of the leased assets is special, and if no major renovation is made, only
the lessee can use them. The Company may also classify a lease as a financial lease if there are one or more of the
following indications: ① If the lessee cancels the lease, the loss caused by the cancellation of the lease to the
lessor shall be borne by the lessee; ② the profits or losses arising from fluctuations in the fair value of the
residual value of the assets shall belong to the lessee; and ③ the lessee shall be able to continue the lease until the
next period at a rent well below the market level.
1) Accounting treatment of financial lease. The initial measurement is made at the beginning of the lease
period when the Company recognizes the financial lease receivable for the financial lease and terminates the
recognition of the financial lease assets. When the Company makes initial measurement of the receivable financial
lease, the net investment in the lease shall be used as the recorded value of the receivable financial lease. The net
lease investment is the sum of the unsecured residual value and the lease receipts not yet received at the lease term
start date at the present value discounted at the interest rate included in the lease. The amount of the lease receipt
refers to the amount that the lessor shall collect from the lessee as a result of the transfer of the right to use the
leased assets during the lease term, including: (1) the fixed payment amount and the substantial fixed payment
amount to be paid by the lessee (2) depends on the amount of the variable lease payment for the index or ratio,
which is determined at the time of initial measurement on the basis of the index or ratio at the beginning of the
lease term, and (3) the exercise price of the option to purchase, provided that it is reasonably determined that the
lessee will exercise that option ;(4) The amount to be paid by the lessee in the exercise of the option to terminate
the lease, provided that the lease period reflects the lessee's option to terminate the lease, and (5) the residual value
of the security provided by the lessee, the party associated with the lessee and an independent third party with the
financial capacity to perform the security obligation. The Company calculates and recognizes interest income for
each period of the lease term at a fixed periodic interest rate. The cyclical interest rate refers to determining that
the net rental investment is subject to an inclusive discount rate (in the case of subletting, if the lease inclusion
interest rate cannot be determined, the discount rate of the original lease (adjusted for the initial direct costs
associated with the subletting), or that the change in the financial lease is not accounted for as a separate lease, and
that if the change takes effect on the lease date, the lease will be classified as a revised discount rate as determined
by the relevant provisions at the time of the lease.
If a financial lease changes and meets the following conditions, the Company shall treat the change as a
separate lease (1) the change expands the lease by adding the right to use one or more leased assets, and (2) the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
increased value is equivalent to the amount adjusted for the expansion of the lease as the contract. If a change in a
financial lease is not accounted for as a separate lease and if the change is met on the commencement of the lease,
the lease will be classified as operating the lease conditions, the Company shall, from the effective date of the lease
change, treat it as a new lease and take the net lease investment prior to the effective date of the lease change as the
book value of the leased assets.
2）Accounting treatment of operating leases
During each period of the lease term, the Company uses a straight-line method to recognize the lease receipts
for operating leases as rental income. Where the incentive provided provides a rent-free period, the Company shall
allocate the total amount of rent according to the straight-line method during the entire lease period without
deducting the rent-free period, and the rental income shall be recognized during the rent-free period. If the
Company bears certain expenses of the lessee, the expense shall be deducted from the total rental income and
distributed according to the balance of the rent income after deduction during the lease period.
The initial direct expenses incurred by the Company in connection with the operating lease shall be
capitalized to the cost of the assets under lease and shall be included in the current profit and loss in instalments
during the lease term on the same basis as the rental income. For fixed assets in operating leased assets, the
Company shall use a depreciation policy of similar assets to charge depreciation, and for other operating leased
assets, amortize them in a systematic and reasonable manner. Variable lease payments obtained by the Company in
connection with the operating lease that are not included in the lease receipts shall be included in the current profit
and loss when they actually occur. In the event of a change in an operating lease, the Company shall, as of the
effective date of the change, treat it as a new lease for accounting, and the amount of the pre-receivable or
receivable lease receivable in connection with the pre-change lease shall be deemed to be the amount receivable
for the new lease.
32 Other important accounting policies and accounting estimates
(1) Termination of business
Termination of operation refers to a component that meets one of the following conditions, can be separately
distinguished and has been disposed of or classified as held for sale by the Company: ①This component
represents an independent major business or a separate major business area. ②This component is part of an
associated plan to dispose of an independent major business or a separate major business area. ③This component
is a subsidiary Company acquired specifically for resale.
For the accounting treatment methods for termination of operations, please refer to the relevant descriptions
in Note 3, 12 “Assets held for sale and disposal group".
(2) Hedge accounting
In order to avoid some risks, the Company hedges some financial instruments as hedging instruments. For the
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
hedges meeting the specified conditions, the Company adopts the hedge accounting method for treatment. The
hedging of the Company is fair value hedging.
At the beginning of hedging, the Company formally designates hedging instruments and hedged items, and
prepares written documents on hedging relationship and risk management strategy and risk management objectives
of the Company engaged in hedging. In addition, the Company will continuously evaluate the effectiveness of
hedging at the beginning and after the hedging.
Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or losses
arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the
non-trading equity instrument investment (or its components) that is measured at fair value and whose changes are
included in other comprehensive income, the gains and losses generated by the hedging instrument are included in
other comprehensive income. The profit or loss of the hedged item due to the hedged risk exposure shall be
included into the current profits and losses, and the book value of the hedged item shall be adjusted at the same
time. If the hedged item is measured at fair value, the gain or loss of the hedged item due to the hedged risk does
not need to adjust the book value of the hedged item, and the relevant gains and losses are included into the current
profits and losses or other comprehensive income.
When the Company cancels the designation of the hedging relationship, the hedging instrument has expired
or been sold, the contract has been terminated or exercised, or no longer has meet the conditions for the application
of hedge accounting, the application of hedge accounting shall be terminated.
33. Significant accounting judgments and estimates
In the process of applying accounting policies, due to the inherent uncertainty of business activities, the
Company needs to judge, estimate and assume the book value of statement items that cannot be accurately
measured. These judgments, estimates and assumptions are based on the Company's management's past historical
experience and other relevant factors. These judgments, estimates and assumptions will affect the reported
amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities at the balance sheet
date. However, the actual results caused by the uncertainty of these estimates may be different from the current
estimates of the Company's management, resulting in a significant adjustment to the carrying amount of the assets
or liabilities affected in the future.
The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on the basis of
going concern. If the change of accounting estimates only affects the current period of change, the number of
impacts shall be recognized in the current period of change. If the change affects both the current and future
periods, the number of impacts will be confirmed in the current and future periods of the change.
On the balance sheet date, the Company needs to judge, estimate and assume the amount of financial
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
statement items in the following important areas:
1. Impairment of financial assets
The Company uses the expected credit loss model to evaluate the impairment of financial instruments. The
application of the expected credit loss model requires significant judgment and estimation, and all reasonable and
basis information, including forward-looking information, shall be considered. In making these judgments and
estimates, the Company deduces the expected changes in the debtor's credit risk based on historical data and
combined with economic policies, macroeconomic indicators, industry risks, external market environment,
technological environment, changes in customer conditions and other factors.
2. Inventory falling price reserves
According to the inventory accounting policy, the Company measures according to the lower of cost and net
realizable value. For the inventory whose cost is higher than net realizable value and which is obsolete and
unsalable, the Company makes provision for inventory falling price. Impairment of inventories to net realizable
value is based on the evaluation of the marketability of inventories and their net realizable value. The appraisal of
impairment of inventories requires the management to make judgment and estimation on the basis of obtaining
conclusive evidence and considering factors such as the purpose of holding inventories and the influence of events
after the balance sheet date. The difference between the actual result and the original estimate will affect the book
value of inventory and the accrual or reversal of inventory depreciation reserve during the period when the
estimate is changed.
3. Provision for impairment of long-term assets
On the balance sheet date, the Company judges whether there are signs of possible impairment for
non-current assets other than financial assets. For intangible assets with uncertain service life, in addition to the
annual impairment test, the impairment test is also carried out when there are signs of impairment. Other
non-current assets other than financial assets shall be tested for impairment when there are indications that their
book amounts are not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the higher of
the net amount of the fair value minus the disposal expenses and the present value of the estimated future cash flow,
it indicates that an impairment has occurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the sales
agreement price or observable market price of similar assets in fair transactions, and deducting the incremental
cost directly attributable to the disposal of such assets.
When estimating the present value of future cash flow, it is necessary to make a significant judgment on the
output, sales price, related operating costs and the discount rate used in the calculation of the present value of the
asset (or asset group). In estimating the recoverable amount, the Company will use all relevant information
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
available, including forecasts of production, selling price and related operating costs based on reasonable and
supportable assumptions.
The Company shall test whether goodwill is impaired at least every year. This requires an estimate of the
present value of the future cash flows of the asset group or portfolio of asset groups to which goodwill has been
allocated. When predicting the present value of future cash flow, the Company needs to predict the cash flow
generated by the future asset group or asset group portfolio, and at the same time, select the appropriate discount
rate to determine the present value of future cash flow.
4. Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, the Company
will accrue depreciation and amortization on a straight-line basis during their service lives. The Company reviews
the service life regularly to determine the amount of depreciation and amortization expenses to be included in each
reporting period. The service life is determined by the Company based on the past experience of similar assets and
in portfolio with the expected technological updates. If there is a significant change in previous estimates, the
depreciation and amortization charges will be adjusted in the future.
5. Deferred income tax assets
To the extent that there is likely to be sufficient taxable profits to offset the losses, the Company recognizes
deferred income tax assets for all unused tax losses. This requires the Company's management to use a large
number of judgments to estimate the time and amount of future taxable profits, combined with tax planning
strategies, to determine the amount of deferred income tax assets to be recognized.
6. Income tax
In the normal business activities of the Company, there are certain uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be paid before tax requires the approval of the tax
authorities. If there is a difference between the final determination result of these tax matters and the amount
initially estimated, the difference will have an impact on the current income tax and deferred income tax during the
final determination period.
7. Accrued liabilities
According to the terms of the contract, existing knowledge and historical experience, the Company estimates
and makes corresponding provision for product quality assurance, estimated contract losses, liquidated damages
for delayed delivery, etc. In the event that such contingencies have formed a current obligation and the
performance of the current obligations is likely to result in outflow of economic benefits from the Company, the
Company recognizes the contingencies as estimated liabilities based on the best estimate of the expenditure
required to perform the relevant current obligations. The recognition and measurement of the estimated liabilities
depend to a large extent on the judgment of the management. In the process of judgment, the Company needs to
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
evaluate the risks, uncertainties, time value of money and other factors related to these contingencies.
Among them, the Company will make an estimated liability for the after-sales quality maintenance
commitments provided to customers for the sale, maintenance and renovation of the goods sold. The Company's
recent maintenance experience data have been taken into account when estimating liabilities, but the recent
maintenance experience may not reflect the future maintenance situation. Any increase or decrease in this
provision may affect the profit and loss in the future years.
8. Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. When
estimating the fair value of an asset or liability, the Company adopts the available observable market data available.
If the first level input value cannot be obtained, the Company will employ a qualified third-party appraiser to
perform the appraisal. The Company works closely with qualified external appraisers to determine the appropriate
valuation techniques and inputs to the relevant models
IV. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in
the current period, the difference between the sales of goods, 1%，3%、5%、6%、
Value Added Tax taxable services and taxable services income calculated in
accordance with the provisions of the Tax Law is the taxable 9%、、13%
value-added tax.
Urban Maintenance &
According to the actual value-added tax 5%、7%
Construction Tax
Extra charges of According to value added tax and consumption tax on the
3%
education funds basis of actual payment
Local Extra Charges of According to value added tax and consumption tax on the
2%
Education Funds basis of actual payment
Corporate Taxes According to taxable income 15%、17%、25%
According to 70% of original value of the real estate (or rental
Property Tax income) as the tax base; according to the original value of the 1.2%、12%
real estate deducted 30% at a time.
The Company conducts VAT taxable sales or imports goods. According to the announcement issued by
Ministry of Finance, State Administration of Taxation and China Custom about the policy relating to deepening
VAT reform (Announcement by Ministry of Finance, State Administration of Taxation and China Custom (2019)
No.39), from 1st April 2019 onwards, the applicable rates are adjusted to 13%/9%. Meanwhile, the Company can
deduct VAT by additional deductible rate of 10% from 1st April 2019 to 31st December 2021 because of its
business nature as service provider.
Representation on tax payers of different enterprise income tax rates:
Tax Payers Income Tax Rate
69
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Tax Payers Income Tax Rate
Jingliang (Singapore) International Trade Co., Ltd. 17%
Beijing Guchuan Bread Food Co., Ltd. 15%
2. Important preferential tax policies and basis
Hangzhou Linan Little Angel Food Co., Ltd., a 4th tier subsidiary Company of the Company, is a welfare
enterprise. Since May 2016, it has enjoyed the preferential VAT policy of immediate refund upon payment in
Preferential Value-Added Tax Policies for Promoting the Employment of Disabled Persons (CaiShui [2016]
No.52).
In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation
“Notice on Preferential Enterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai
Shui[2009] No.70), Hangzhou Linan Little Angel Food Co., Ltd. , a 4th tier subsidiary Company of the Company:
Where an enterprise employs persons with disabilities, on the basis of deduction according to the wages paid to the
disabled workers, it may deduct the amount of taxable income according to 100% of the wages paid to the disabled
workers.
Linqing Little Prince Food Co., Ltd., a fourth-level subsidiary of the Company, shall be subject to 50% of the
sales revenue on the basis of the stamp tax payable in the industrial procurement link and sales link in the purchase
and sale contract of industrial enterprises according to the annountment No.10, 2018 issued by Shandong
Provincial Tax Bureau. The base of stamp duty payable in 2021 shall be calculated according to 50% of the sales
revenue.
Company’s level 4 subsidiary-Liaoning Xiaowangzi Food Limited, according to the Supplementary
Announcement on Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ
No.140 Clause 13 states that public land such as municipal street, square, public green etc. can be exempted from
land use tax, when computing land use tax, the area used in the computation is total area less the area for afforest
and street.
Jingliang (Singapore) International Trade Co., Ltd., a 3rd tier subsidiary of the Company, levies taxes on the
principle of territoriality. The Company is taxed on the territoriality principle. According to Singapore's
preferential tax policy, the Company enjoys tax exemption plan is as follows: for the first SGD10,000 of taxable
income amount the taxable income amount shall be reduced by 75%; for the portion between SGD$10,001 and
SGD$200,000, the taxable income amount shall be reduced by 50%; For the portion exceeding SGD$200,000, the
taxable income amount shall not be reduced. The Company shall pay income tax at the rate of 17% on the taxable
income amount after exemption.
Beijing Guchuan Bread&Food Co., Ltd., a 3rd tier subsidiary of the Company, is a high-tech enterprise. On
November 30, 2018, it obtained the certificate of high-tech enterprise and the certificate number GR201811007245.
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
It is valid for three years. It enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rate
according to the relevant provisions of both “Law of the People's Republic of China on Tax Collection and
Administration” and “Rules for the Implementation of the Tax Collection and Administration Law of the People's
Republic of China”.
The Company level 4 subsidiary Jingliang (Hebei) Oil Industry Co., Ltd., according to the financial
department documents, local taxation bureau in hebei province, hebei province document ji caishui [2019] no. 56
"about parts reserve commodity announcement concerning the tax policy, accounting books shall be exempt from
stamp duty for funds, to undertake business book stand in the process of buying and selling contract commodity
reserves shall be exempt from stamp duty, other parties in the contract should pay the stamp duty shall also be
subject to duty-payment according to the parties. Property tax and land use tax of cities and towns shall be
exempted from the property tax and land use tax of cities and towns that undertake the business of commodity
reserve for their own use. The notice will be executed on January 1, 2019 and will terminate on 31 st December,
2021.
Jingliang (Hebei) Oil Industry Co., Ltd., a 4th subsidiary Company of the Company, exempts the sale of
edible vegetable oil stored by the government from VAT according to “Notice of the Ministry of Finance and the
State Administration of Taxation on the Levy and Exemption of Value Added Tax for Food Enterprises”（Cai Shui
[1999] No.198）
The Company level 3 subsidiary Beijing day weikang grease DiaoXiao center co., LTD., according to the
national tax administration of the ministry of finance, the notice about food enterprises exempted from VAT tax
word (1999), article 5, 198, responsible for collection and storage of grain purchase and sale of state-owned grain
enterprises and business duty-free items listed in the notice of other food business, and government reserves edible
vegetable oil sales enterprises, which should be examined by the competent tax authorities deemed tax-exempt
status, not reported to the competent tax authorities where the audit determined that no exemption, From June 1,
2017 to December 31, 1999, the Company will exempt edible vegetable oil stored by the government from VAT.
The level 2 subsidiary of the Company-Jingliang Caofeidian Agricultural Development Limited, according to
the document JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District, Tangshan,
affiliated to State Administration of Taxation, and also followed the rules in Law of the People's Republic of China
on the Administration of Tax Collection, The Implementation Guideline of Law of the People's Republic of China
on the Administration of Tax Collection, the rice under the brand of Tixiang produced by Caofeidian Company if
exempted from VAT.
The level 2 subsidiary of the Company-Jingliang Caofeidian Agricultural Development Limited, according to
the rules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86, the rice under the brand
of Tixiang produced by Caofeidian Company if exempted from Corporation tax.
Ⅴ. Changes in accounting policies, accounting estimates, and explanation of corrections to previous
71
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
errors
1. Changes in accounting policies
On December 7, 2018, the Ministry of Finance issued the "Notice on the Amendment and Printing of the
‘Accounting Standards for Business Enterprises No. 21 – lease' " (Finance and Accounting [2018] No. 35). Based
on the accounting standard revision and the requirements of the notice of the Ministry of Finance, Jingliang
Holdings shall implement the new lease standards as of January 1, 2021. For all leases, the Company shall
recognize the right of use assets and lease liabilities (except short-term leases and low-value asset leases) and
recognize depreciation and interest expense, respectively. For short-term leases and low-value asset leases, the
Company shall not recognize the right of use assets and lease liabilities. In accordance with the requirements set
out in the new lease guidelines, the Company has chosen not to re-evaluate whether a contract that exists before
January 1, 2021 is a lease or includes a lease. In the case of the Company as a lessee, it has chosen to simplify the
retroactive adjustment method to bridge the process by adjusting only the amounts of the "use rights assets" and
"lease liabilities" items in the Financial Statements of January 1, 2021, and not the comparable period information
for other items on the balance sheet.
2. Changes in accounting estimates
There is no change in accounting estimate during the reporting period.
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.
4. The first time to implement the new lease standard adjustment and the first time to implement the
financial statements at the beginning of the year related items
Consolidated Balance Sheet
Monetary Unit: RMB Yuan
Items 30 June 2021 1 January 2021 Adjustments
Current Assets:
Monetary capital 335,466,169.61 335,466,169.61
Transactional financial assets 63,478,071.73 63,478,071.73
Derivative financial assets - -
Notes receivable 456,565.85 456,565.85
Accounts receivable 92,245,667.60 92,245,667.60
Receivables financing - -
Prepayment 282,343,218.05 282,234,970.05 -108,248.00
Other receivables 541,905,656.97 541,905,656.97
Including: Interest receivable
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items 30 June 2021 1 January 2021 Adjustments
Dividends receivable
Inventory 1,225,083,742.26 1,225,083,742.26
Contract assets
Held-for-sale assets
Non-current assets due within one year
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 investment 217,762,487.79 217,762,487.79
Other equity instruments investment 20,000,000.00 20,000,000.00
Other non-current financial assets
Investment property 22,560,212.50 22,560,212.50
Fixed assets 1,131,143,854.07 1,131,143,854.07
Construction in process 28,458,413.67 28,458,413.67
Right of use assets 2,722,789.09 2,722,789.09
Intangible assets 354,139,335.32 354,139,335.32
Development expenditure
Goodwill 191,394,422.51 191,394,422.51
Long-term deferred expenses 20,529,601.50 20,529,601.50
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
Derivative financial liabilities 371,219,136.84 371,219,136.84
Accounts payable 75,384,075.39 75,384,075.39
Account collected in advance 1,087,874.02 1,087,874.02
Contract liabilities 346,874,260.90 346,874,260.90
Employee payroll payable 33,345,136.94 33,345,136.94
Taxes payable 50,884,214.64 50,884,214.64
Other payables 72,292,881.24 72,292,881.24
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items 30 June 2021 1 January 2021 Adjustments
Including: Interest payable 21,082,795.47 21,082,795.47
Dividends payable 11,013,302.88 11,013,302.88
Other 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:
Long-term borrowings
Lease liabilities 2,614,541.09 2,614,541.09
Long-term payable to employees 5,677,134.00 5,677,134.00
Estimated liabilities
Deferred income 68,716,699.34 68,716,699.34
Deferred income tax liabilities 65,115,801.22 65,115,801.22
Other non-current 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 (or Shareholders' equity):
Capital stock 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1,674,828,350.95 1,674,828,350.95
Less: treasury stock
Other comprehensive income -363,258.66 -363,258.66
Special reserves
Surplus reserves 122,122,436.98 122,122,436.98
Undistributed profit 187,033,763.26 187,033,763.26
Total equity attributable to the parent Company 2,710,571,543.53 2,710,571,543.53
Minority equity 388,601,959.83 388,601,959.83
Total owners' equity (or shareholders' equity) 3,099,173,503.36 3,099,173,503.36
Total liabilities and owners' equity (or
5,695,504,493.73 5,698,119,034.82 2,614,541.09
shareholders' equity)
Parent Company balance sheet
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Monetary Unit: RMB Yuan
Items 30 June 2021 1 January 2021 Adjustments
Current Assets:
Monetary capital 1,523,322.79 1,523,322.79
Accounts receivable 11,784.00 11,784.00
Prepayment 423,679.12 423,679.12
Other receivables 103,341.26 103,341.26
Including: Interest receivable
Dividends receivable
Inventory 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 investment 2,626,437,846.24 2,626,437,846.24
Other equity instruments investment 20,000,000.00 20,000,000.00
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
Long-term deferred expenses
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:
Short-term borrowings
Accounts payable
Account collected in advance 38,896.41 38,896.41
Contract liabilities
Employee 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 payable 21,082,795.47 21,082,795.47
Dividends payable 3,213,302.88 3,213,302.88
Held-for-sale liabilities
Non-current liabilities due within one year
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Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items 30 June 2021 1 January 2021 Adjustments
Other current liabilities
Total current liabilities 310,486,299.16 310,486,299.16
Non-current liabilities:
Long-term borrowings
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 310,486,299.16 310,486,299.16
Owners' equity (or Shareholders' equity):
Capital stock 726,950,251.00 726,950,251.00
Capital reserves 2,379,144,900.84 2,379,144,900.8
Less: treasury stock
Surplus reserves 109,487,064.39 109,487,064.39
Undistributed profit -862,106,544.32 -862,106,544.32
Total owners' equity (or shareholders' equity) 2,353,475,671.91 2,353,475,671.91
Total liabilities and owners' equity (or shareholders'
2,663,961,971.07 2,663,961,971.07
equity)
Ⅵ. Notes on Items in Consolidated Financial Statements
Note: The ‘beginning’ of the period refers to January 1, 2021 and the ‘end’ of the period refers to June 30,
2021. The previous period refers to the half of year 2020 and the current period refers to the half of year 2021.
1. Monetary funds
(1) Classification list
Items Ending Balance Beginning Balance
Cash 90,718.49 16,761.72
Bank Deposits 649,756,766.18 299,235,964.61
Other Currency Funds 130,107,110.90 36,213,443.28
Total 779,954,595.57 335,466,169.61
Among them: the total amount of money deposited abroad 11,807,029.94 3,153,447.17
(2) At the end of the period, there are 1,077,152.20 yuan of freezing which is restricted funds, and the fund
has been released freezing on July 9th,2021
(3) At the end of the period, there is no funds deposited abroad and the return of funds is restricted.
76
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
2. Transactional financial assets
Items Ending Balance Beginning Balance
Financial assets measured at fair value with changes
363,000,000.00 63,478,071.73
included in current profits and losses
Among them: debt instrument investment 363,000,000.00 63,478,071.73
Designated as financial assets measured at fair value with
changes included in current profits and losses
Among them: debt instrument investment
equity instrument investment
others
Total 363,000,000.00 63,478,071.73
3. Derivative Financial Assets
Items Ending Balance Beginning Balance
Changes in fair value of hedging instruments 75,597,717.39
Total 75,597,717.39
Note: The Company hedges the inventory and expected transactions corresponding to the varieties involved in
production, operation and trade, and the hedging instruments are listed in the items in this table.
4. Notes receivable
(1) Classification list
Items Ending Balance Beginning Balance
Bank acceptance bill 456,565.85
Commercial acceptance bill
Total 456,565.85
5. Accounts Receivable
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 94,405,127.19
Among them: Within the credit (within 3 months) 78,698,131.72
Credit period to 1 year 15,706,995.47
1 to 2 years (including 2 years) 2,702,539.46
2 to 3 years (including 3 years) 5,254.50
3 to 4 years (including 4 years) 45,270.42
77
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Aging Ending Balance
4 to 5 years (including 5 years) 51,420.00
More than 5 years 400,259.50
Total 97,609,871.07
（2）Present according to the method of provision for bad debt
Ending Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1,325,135.40 1.36 1,325,135.40 100.00
Portfolio provision for bad debts 96,284,735.67 98.64 156,458.61 0.16 96,128,277.06
Among them: aging portfolio 83,138,909.27 85.17 156,458.61 0.19 82,982,450.66
related parties portfolio 13,145,826.40 13.47 0.00 13,145,826.40
Total 97,609,871.07 ---- 1,481,594.01 ---- 96,128,277.06
（Continued）
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1,325,135.40 1.41 1,325,135.40 100.00
Portfolio provision for bad debts 92,402,126.21 98.59 156,458.61 0.17 92,245,667.60
Among them: aging portfolio 69,364,375.49 74.01 156,458.61 0.23 69,207,916.88
related parties portfolio 23,037,750.72 24.58 23,037,750.72
Total 93,727,261.61 一一 1,481,594.01 一一 92,245,667.60
A. Separate provision for bad debts
Ending Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Expected
Beijing Xidan spicy town food limited 996,000.00 996,000.00 100.00 unrecoverable on
claim
78
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Ending Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Expected
Beijing Rongfa Lida Grain and Oil Trade
163,143.00 163,143.00 100.00 unrecoverable on
Co., Ltd. claim
Expected
Fujian Jingxin Industrial Group Co., Ltd 151,844.00 151,844.00 100.00 unrecoverable on
claim
Expected
Beijing Guotai Ping'an Department Store
10,862.90 10,862.90 100.00 unrecoverable on
Co., Ltd. claim
Expected
Beijing Guotai Ping'an Tianzhu
1,809.60 1,809.60 100.00 unrecoverable on
Commercial Development Co., Ltd. claim
Expected
Carrefour (Shanghai) Supply Chain
875.90 875.90 100.00 unrecoverable on
Management Co., Ltd. Tianjin Branch claim
Expected
Beijing Shunyi Longhua Shopping Center 600.00 600.00 100.00 unrecoverable on
claim
Total 1,325,135.40 1,325,135.40 －－ －－
B. Portfolio provision for bad debts
1. Portfolio provision: aging portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year (including 1 81,264,049.89 69,026,628.09 7,466.13
year)
Among them: Within the
67,340,203.17 0 68,653,321.59 0
credit (within 3 months)
Credit period to 1 year 13,923,846.72 2 373,306.50 7,466.13 2
1 to 2 years (including 2 1,674,379.46 14,329.50 5 137,267.48 6,863.37 5
years)
2 to 3 years (including 3 31,789.50 6,357.90 20 31,789.50 6,357.90 20
years)
3 to 4 years (including 4 45,270.42 22,635.21 50 45,270.42 22,635.21 50
years)
79
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
4 to 5 years (including 5 51,420.00 41,136.00 80 51,420.00 41,136.00 80
years)
More than 5 years 72,000.00 72,000.00 100 72,000.00 72,000.00 100
Total 83,138,909.27 156,458.61 69,364,375.49 156,458.61
2. Portfolio provision: related parties portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Related parties portfolio 13,145,826.40 23,037,750.72
Total 13,145,826.40 23,037,750.72
（3） details of bad debt provision
Items Beginning The amount changed for the period Ending Balance
Balance Addition Withdrawal Write-off Other
or reversal changes
Credit impairment loss 1,481,594.01 1,481,594.01
Total 1,481,594.01 1,481,594.01
（4）Accounts receivable actually written off in the current period
The Company has no accounts receivable written off during the reporting period.
（5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Bad
Ratio of
Accounts Whethe Debt
Debtors totalaccounts Aging
receivable r related Provisio
receivable (%)
n
Xilin Gol League Within 3
13,098,446.48 13.42 No
hongjingyuan Oil Co., Ltd months
Tangshan Caofeidian Within
12,329,480.04 12.63 No
District Finance Bureau 1 year f
Within 3
Shanghai Laiyifen Co., Ltd 4,930,665.60 5.05 No
months
Zhejiang Lvqin Supply Within 3
Chain Management Co., 4,841,919.36 4.96 months No
Ltd
Beijing Ershang Wangzhihe Within 3
4,439,008.84 4.55 No
Food Co., Ltd months
80
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Bad
Ratio of
Accounts Whethe Debt
Debtors totalaccounts Aging
receivable r related Provisio
receivable (%)
n
Total 39,639,520.32 40.61
6. Advanced Payment
(1) Advances are presented by age
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 580,122,848.03 99.91 282,123,364.15 99.96
1 to 2 years (including 2 years) 521,555.14 0.09 88,505.90 0.03
2 to 3 years (including 3 years) 0.00 0.00 0.00 0.00
More than 3 years 23,100.00 0.00 23,100.00 0.01
Total 580,667,503.17 100.00 282,234,970.05 100.00
(2) Advance payment of the top five Ending Balances by prepaid objects
Ratio of the total ending balance
Debtor Name Ending Balance
of prepayments (%)
Hong Kong Yuheng Industrial Co., Ltd 217,529,005.27 37.46
SINO Grain Oil Co., Ltd 128,113,768.73 22.06
Tianjin Port Customs of the People's Republic of China 42,576,851.75 7.33
APICAL (MALAYSIA) SDN. BHD. 38,609,493.90 6.65
Anhui Anliang International Development Co., Ltd 22,476,160.00 3.87
Total 449,305,279.65 77.38
7. Other Receivables
(1) Overview
A Classification
Item(s) Ending Balance Beginning Balance
Interest Receivable
Dividend Receivable
Other Receivables 88,750,805.46 541,905,656.97
Total 88,750,805.46 541,905,656.97
(2) Other Receivable
A. Disclosed according to aging
81
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Aging Ending Balance
Within 1 Year (including 1 year) 87,538,405.21
Among them: Within the credit (within 3 months) 27,554,116.61
Credit period to 1 year 59,984,288.60
1 to 2 years (including 2 years) 273,797.85
2 to 3 years (including 3 years) 452,400.00
3 to 4 years (including 4 years) 162,665.99
4 to 5 years (including 5 years) 30,000.00
More than 5 years 350,000.00
Total 88,807,269.05
B. Classification by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Guaranteed Deposit and Deposit 51,999,954.07 535,330,041.21
Intercourse Funds of Units 35,905,866.03 5,472,834.58
Tax Refund Receivables 302,433.21
Employee Receivables 535,230.87 532,115.87
Personal Intercourse Funds 50,000.00 50,000.00
Others 316,218.08 274,695.69
Total 88,807,269.05 541,962,120.56
C. Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss
Expected credit
Provision for bad debt loss for the whole for the whole period Total
loss in the next 12
period (no credit (with credit
months
impairment) impairment)
Amount on 1st January 2021 6,463.59 50,000.00 56,463.59
Carrying amount on 1st
January 2021 that in this
period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
82
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss
Expected credit
Provision for bad debt loss for the whole for the whole period Total
loss in the next 12
period (no credit (with credit
months
impairment) impairment)
Provision for the period
Reverse for the period
Transfer for the period
Write off for the period
Other changes
Amount on 31st June 2021 6,463.59 50,000.00 56,463.59
D. Details of bad debt provision
Type Carrying Amount changes for the period Carrying
amount at Addition Withdrawal Write-off Other amount
the or reversal changes at the
beginning end
Credit 56,463.59 56,463.59
impairment
loss
Total 56,463.59 56,463.59
E. Other receivables actually written off in the current period
The Company has no other receivables actually written off during the reporting period.
F. Other receivables according to top five of balance at end of period collected by debtors
Proportion in
Ending
Balance at End of overall ending
Name of Organization Nature of Funds Aging balance of bad
Period balance of other
debt reserves
receivables (%)
Guaranteed
Dalian Commodity
Deposit and 26,911,000.00 Within 1 year 30.30
Exchange
storage fees
Intercourse
CITIC Securities Co. Ltd 20,200,000.00 Within 3 months 22.75
Funds of Units
China Chemical
Construction
Engineering Fourth 8,280,628.80 Within 1 year 9.32
fund
Construction Co., Ltd
Zhongtian Futures Co. Ltd Futures margin 6,796,618.40 Within 3 months 7.65
Guaranteed
ADM International Sarl 6,457,800.00 Within 3 months 7.27
Deposit
83
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Total — 68,646,047.20 — 77.29
8. Inventory
(1) Inventory Category
Ending Balance Beginning Balance
Falling Falling
Items Book
Book Balance Price Book Value Price Book Value
Balance
Reserves Reserves
Raw
292,709,433.37 0.00 292,709,433.37 303,448,302.51 303,448,302.51
Materials
Revolving
5,427,075.29 0.00 5,427,075.29 5,520,559.22 5,520,559.22
Materials
Goods and
materials in 136,142,338.47 0.00 136,142,338.47 36,413,482.38 36,413,482.38
transit
Inventory
981,446,939.15 233,790.56 981,213,148.59 622,783,856.56 233,790.56 622,550,066.00
goods
Development
5,671,355.03 0.00 5,671,355.03 2,415,243.42 2,415,243.42
costs
Developing
5,315,696.54 1,539,741.69 3,775,954.85 5,315,696.54 1,539,741.69 3,775,954.85
commodities
Commission
5,410,589.00 0.00 5,410,589.00 2,762,633.88 2,762,633.88
processing
Replacement
169,170,956.67 0.00 169,170,956.67 248,197,500.00 248,197,500.00
of oil reserve
1,226,857,274.5
Total 1,601,294,383.52 1,773,532.25 1,599,520,851.27 1,773,532.25 1,225,083,742.26
1
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
Increased Amounts
Decreased Amounts in the
in the Current
Balance at Beginning of Current Period Balance at End of
Items Period
Year Period
Recover or
Accrual Others Others
Charge Off
Inventory
233,790.56 233,790.56
goods
Developing
1,539,741.69 1,539,741.69
commodities
In total 1,773,532.25 1,773,532.25
(3) Stock Goods listed by major product type
Items Ending Balance Beginning Balance
84
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Falling Falling
Book Balance Price Book Value Book Balance Price Book Value
Reserves Reserves
Grease
967,544,017.24 233,790.56 967,310,226.68 594,886,731.71 233,790.56 594,652,941.15
and oils
Food 13,872,860.49 13,872,860.49 27,880,182.78 27,880,182.78
Others 30,061.42 30,061.42 16,942.07 16,942.07
Total 981,446,939.15 233,790.56 981,213,148.59 622,783,856.56 233,790.56 622,550,066.00
9. Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Financial Products 280,000,000.00
Pre-paid Taxes and Fees 36,255,131.26 16,921,026.50
Pending Deduct VAT Input Tax 42,987,706.38 46,701,271.74
Fair Value Changes of Items Trapped at
153,428,194.75 501,828,380.12
Hedging
In total 232,671,032.39 845,450,678.36
10 Long-term Equity Investment
Increase or Decrease in the Current Period
Balance at
Invested Unit Additional Negative Confirmed Profit and Loss on
Beginning of Year
Investment Investment Investment under Equity Law
1.Cooperative Enterprise
CP Group 90,824,898.49 10,149,043.57
Sub-total 90,824,898.49 10,149,043.57
2. Joint Venture
China Grain Reserves (Tianjin)
119,601,316.43 15,827,465.77
Warehouse Logistics Co., Ltd.
Jingliang Miss Me Food
7,336,272.87
Management (Tianjin) Limited
Sub-total 126,937,589.30 15,827,465.77
Total 217,762,487.79 25,976,509.34
(Continued)
Increase or Decrease in the Current Period
Ending
Adjustment of Announce to
Other Accrual of Balance at End Balance of
other Distribute Case
changes Impairment Others of Period Impairment
comprehensive Dividends or
in equity Reserves Reserves
income Profits
85
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
100,973,942.06
100,973,942.06
-24,680,000.00
110,748,782.20
7,336,272.87
-24,680,000.00 118,085,055.07
-24,680,000.00
219,058,997.13
11. Other equity instruments investment
Ending Beginning
Item
Balance Balance
20,000,000. 20,000,000.
Chongqing long jinbao network technology co. LTD
00 00
Total 20,000,000.00 20,000,000.00
12. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Land Use Projects under
Items Buildings Total
Right Construction
One. Original Book Value 53,844,801.60 53,844,801.60
1. Balance at Beginning of Year 53,844,801.60 53,844,801.60
2. Increased Amounts in the Current Period
(1) Outsourcing
(2) Inventory transfer
(3) Others
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 53,844,801.60 53,844,801.60
Two. Accumulated Impairment and
Accumulated Amortization
1. Balance at Beginning of Year 20,696,792.40 20,696,792.40
2. Increased Amounts in the Current Period 823,048.23 823,048.23
(1) Accrual or Amortization 823,048.23 823,048.23
86
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
21,519,840.63
4. Balance at End of Period
21,519,840.63
Three. Impairment Reserves
1. Balance at Beginning of Year 10,587,796.70 10,587,796.70
2. Increased Amounts in the Current Period
(1) Accrual
(2) Inventory transfer
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 10,587,796.70 10,587,796.70
Four. Book Value
1. Book Value at End of Period 21,737,164.27 21,737,164.27
2. Book Value at Beginning of Year 22,560,212.50 22,560,212.50
13. Fixed Assets
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Fixed Assets 1,088,582,627.48 1,131,143,854.07
Disposal of Fixed Assets
In total 1,088,582,627.48 1,131,143,854.07
(2) Fixed Assets
A. Fixed Assets Situation
Machinery Transportatio Electronic Office
Items Buildings Others Total
Equipment n Equipment Equipment Equipment
One. Original Book
Value
1. Balance at
1,077,152,030.43 375,930,011.58 19,483,651.03 18,604,521.98 2,162,857.53 376,615,641.86 1,869,948,714.41
Beginning of Year
2. Increased Amounts in
585,466.98 4,676,884.95 1,960,562.82 595,093.67 1,368,780.61 1,401,446.00 10,588,235.03
the Current Period
(1) Purchase 558,116.55 2,398,808.93 746,700.89 595,093.67 164,981.74 753,006.08 5,216,707.86
87
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Machinery Transportatio Electronic Office
Items Buildings Others Total
Equipment n Equipment Equipment Equipment
(2) Roll-in of Project
0.00 0.00 0.00 0.00 0.00 554,778.74 554,778.74
under Construction
(3) Others 27,350.43 2,278,076.02 1,213,861.93 0.00 1,203,798.87 93,661.18 4,816,748.43
3. Decreased Amounts in
0.00 1,318,786.00 2,083,989.00 5,278,360.42 50,079 501,019.21 9,232,233.63
the Current Period
(1) Disposal or Scrap 0.00 1,318,786.00 2,083,989.00 5,278,360.42 50,079 501,019.21 9,232,233.63
4. Balance at End of
1,077,737,497.41 379,288,110.53 19,360,224.85 13,921,255.23 3,481,559.14 377,516,068.65 1,871,304,715.81
Period
Two. Accumulated
Impairment
1. Balance at Beginning
338,617,240.31 180,649,435.37 13,179,762.44 12,411,204.09 1,554,574.37 184,807,601.28 731,219,817.86
of Year
2. Increased Amounts in
19,931,006.66 16,894,163.19 1,274,573.68 809,355.87 1,072,538.63 11,460,465.81 51,442,103.84
the Current Period
(1) Accrual 19,931,006.66 16,894,163.19 1,274,573.68 809,355.87 1,072,538.63 11,460,465.81 51,442,103.84
3. Decreased Amounts in
0.00 1,089,276.48 1,952,600.89 4,227,808.92 48913.03 204,364.09 7,522,963.41
the Current Period
(1) Disposal or Scrap 0.00 1,089,276.48 1,952,600.89 4,227,808.92 48913.03 204,364.09 7,522,963.41
4. Balance at End of
358,548,246.97 196,454,322.08 12,501,735.23 8,992,751.04 2,578,199.97 196,063,703.00 775,138,958.29
Period
Three. Impairment
Reserves
1. Balance at Beginning
7,499,295.92 85,746.56 0.00 0.00 0.00 0.00 7,585,042.48
of Year
2. Increased Amounts in
8,921.52 0.00 0.00 0.00 0.00 0.00 8,921.52
the Current Period
(1) Accrual 8,921.52 0.00 0.00 0.00 0.00 0.00 8,921.52
3. Decreased Amounts in
0.00 10,833.96 0.00 0.00 0.00 0.00 10,833.96
the Current Period
(1) Disposal or Scrap 0.00 10,833.96 0.00 0.00 0.00 0.00 10,833.96
4. Balance at End of
7,508,217.44 74,912.60 0.00 0.00 0.00 0.00 7,583,130.04
Period
Four. Book Value
1. Book Value at End of
711,681,033.00 182,758,875.85 6,858,489.62 4,928,504.19 903,359.17 181,452,365.65 1,088,582,627.48
Period
2. Book Value at
731,035,494.20 195,194,829.65 6,303,888.59 6,193,317.89 608,283.16 191,808,040.58 1,131,143,854.07
Beginning of Year
(2) Fixed assets without property right certificate
88
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Project Book Value Reasons for failure to complete certificate of title
Buildings 6,755,694.68 No title certificate for auxiliary assets
14. Project under Construction
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 35,262,660.08 28,458,413.67
Engineering materials
Total 35,262,660.08 28,458,413.67
(2) Project under Construction
A. Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Impairm
Items Impairmen
Book Balance ent Book Value Book Balance Book Value
t Reserves
Reserves
1. roasted potato supporting
7,062,391.71 7,062,391.71 6,986,820.05 6,986,820.05
automation line project
2. Walnut cake production line of
1,427,450.33 1,427,450.33 4,780,643.33 4,780,643.33
No.2 plant
3. slope treatment project of No.3
3,565,377.15 3,565,377.15 3,565,377.15 3,565,377.15
plant
4. add two 4D Corn Flake
830,116.22 830,116.22 3,207,668.25 3,207,668.25
production lines
5. 32,400 tons of oil tank and
17,697,673.43 17,697,673.43 2,869,993.38 2,869,993.38
terminal oil pipeline project
6. 2600bph project of packaging oil
2,809,734.52 2,809,734.52 2,809,734.52 2,809,734.52
10L production line
7. New production line of small
fried compound potato chips in 408,286.49 408,286.49 1,784,537.82 1,784,537.82
leisure No.1 Factory
8. Fried potato chips automation
1,461,630.23 1,461,630.23 2,453,639.17 2,453,639.17
transformation project and others
In total 35,262,660.08 35,262,660.08 28,458,413.67 28,458,413.67
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Balance at Increased Roll-in Fixed Other Decreased
Balance at
Project Name Beginning of Amounts in the Assets Amount in Amounts in the
End of Period
Year Current Period the Current Period Current Period
Walnut cake production
4,780,643.33 14,807.00 3,368,000.00 1,427,450.33
line of No.2 factory
89
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Slope treatment project of
3,565,377.15 3,565,377.15
No.3 Factory
Two new 4D Corn Flake
3,207,668.25 532,967.97 2,910,520.00 830,116.22
production lines
32400 ton oil tank and
2,869,993.38 14,827,680.05
17,697,673.43
wharf oil pipeline project
2600bph project of
packaging oil 10L 2,809,734.52 2,809,734.52
production line
Renovation project of
Maishao packaging
226,950.63 226,950.63
automation and blasting
machine
Total 17,460,367.26 15,375,455.02 6,278,520.00 26,557,302.28
15. Right of Use Assets
Items Buildings Others Total
One. Original Book Value
1. Balance at Beginning of Year 2,614,541.09 108,248.00 2,722,789.09
2. Increased Amounts in the Current Period 232,751.51 232,751.51
(1) Lease 232,751.51 232,751.51
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period 2,847,292.60 108,248.00 2,955,540.60
Two. Accumulated Impairment
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period 444,497.31 38,205.18 482,702.49
(1) Accrual 444,497.31 38,205.18 482,702.49
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period 444,497.31 38,205.18 482,702.49
Three. Impairment Reserves
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period
(1) Accrual
90
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Buildings Others Total
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period
Four. Book Value
1. Book Value at End of Period 2,402,795.29 70,042.82 2,472,838.11
2. Book Value at Beginning of Year 2,614,541.09 108,248.00 2,722,789.09
16. Intangible Assets
(1) Intangible Assets Situation
Trademark
Items Software Land Use Right Others In total
Right
One Original Book Value
1. Balance at Beginning of Year 4,333,374.75 316,407,869.54 154,841,200.00 689,220.00 476,271,664.29
2. Increased Amounts in the
36,253.96 36,253.96
Current Period
(1) Purchase 36,253.96 36,253.96
(2) Internal R&D
(3) Business mergers increased
3. Decreased Amounts in the
Current Period
(1) Disposal 26,820.00 26,820.00
4. Balance at End of Period 4,369,628.71 316,407,869.54 154,841,200.00 662,400.00 476,281,098.25
Two Accumulated Amortization
1. Balance at Beginning of Year 3,597,758.64 61,830,987.64 56,035,371.69 5,811.00 121,469,928.97
2. Increased Amounts in the
403,006.92 3,176,743.55 3,856,962.93 7,436,713.40
Current Period
(1) Accrual 403,006.92 3,176,743.55 3,856,962.93 7,436,713.40
3. Decreased Amounts in the
5,811.00 5,811.00
Current Period
(1) Disposal 5,811.00 5,811.00
4. Balance at End of Period 4,000,765.56 65,007,731.19 59,892,334.62 128,900,831.37
Three Impairment Reserves
1. Balance at Beginning of Year 662,400.00 662,400.00
2. Increased Amounts in the
Current Period
(1) Accrual
3. Decreased Amounts in the
Current Period
(1) Disposal
91
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Trademark
Items Software Land Use Right Others In total
Right
4. Balance at End of Period 662,400.00 662,400.00
Four Book Value
1. Book Value at End of Period 368,863.15 251,400,138.35 94,948,865.38 346,717,866.88
2. Book Value at Beginning of
735,616.11 254,576,881.90 98,805,828.31 21,009.00 354,139,335.32
Year
17. Goodwill
(1) Original Book Value of Goodwill
Decrease in the Current
Name of Invested Unit Balance at Increase in the Current Period
Period Balance at End
or Items Forming Beginning of
Formed by of Period
Goodwill Year Others Disposal Others
Enterprise Merger
Acquire stock shares of
Zhejiang Xiaowangzi 191,394,422.51 191,394,422.51
Food Co., Ltd.
In total 191,394,422.51 191,394,422.51
The reputation is mainly formed by the equity acquisition of Zhejiang Little Prince Food Co.,
Ltd, which is made of fixed assets, investment real estate, intangible assets, construction in
process, ect.
18. Long-term Unamortized Expenses
Increased
Balance at Amortized Other
Amounts in Balance at End
Items Beginning of Amounts in the Decreased
the Current of Period
Year Current Period Amounts
Period
Reconstruction of Majuqiao
14,888,320.13 337,094.04 14,551,226.09
plant
Linan spring garden woodland
4,970,592.00 56,484.00 4,914,108.00
rental fees
Aisen green treasure Company
141,020.52 8,819.34 132,201.18
housing renovation
Ancient coin branch car rental
94,028.99 11,753.64 82,275.35
fee
Amortization of laboratory
431,242.20 240,594.06 32,485.43 639,350.83
decoration costs
Office decoration 4,397.66 4,397.66 0.00
Total 20,529,601.50 240,594.06 451,034.11 20,319,161.45
19. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Being Offset
92
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Balance at End of Period Balance at Beginning of Year
Deductible Deductible
Items Deferred Income Deferred Income
Temporary Temporary
Tax Assets Tax Assets
Difference Difference
Asset Impairment Reserves 329,661.60 82,415.40 254,446.99 63,611.73
Deductible Loss 5,789,804.01 1,447,451.00 30,360,671.96 7,590,167.99
Credit impairment Loss 1,229,052.40 307,263.10 1,368,158.01 341,929.04
Deferred Income 10,722,337.40 2,680,584.35 10,722,337.40 2,680,584.35
Valuation of Financial Instruments
and Derivative Financial 5,677,134.00 1,419,283.50
Instruments
Credit impairment Loss 47,389,986.68 11,847,496.67 5,677,134.00 1,419,283.50
In total 71,137,976.09 17,784,494.02 48,382,748.36 12,095,576.61
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Taxable TemporaryDeferred Income TaxTaxable TemporaryDeferred Income Tax
Difference Liabilities Difference Liabilities
Valuation and appreciation
of assets in merger of
159,693,033.00 39,923,258.25 164,849,010.97 41,212,252.73
enterprises not under the
same control
Valuation of Financial
Instruments and
178,608,829.52 44,652,207.38 130,600,895.97 32,652,310.83
Derivative Financial
Instruments
In total 338,301,862.52 84,575,465.63 295,449,906.94 73,864,563.56
(3) Details of Deferred Income Tax Liabilities after Offset
Carrying amount after
Offseting amount Carrying amount after offseting amount of
offsetting between
of deferred tax offsetting between deferred tax assets
Items deferred tax assets
assets and deferred tax assets and liabilities at the
and liabilitie at the
liabilities and liabilities end of last period
end of last period
Deferred tax asset 2,606,045.35 15,178,448.67 8,748,762.34 3,346,814.27
Deferred tax liabilities 2,606,045.35 81,969,420.28 8,748,762.34 65,115,801.22
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
93
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Balance at End of Period Balance at Beginning of Year
Deductible Loss 33,884.15 33,884.15
Deductible temporary differences 100,604,379.80 100,248,841.85
In total 100,638,263.95 100,282,726.00
(5) Deductible loss on deferred income tax assets not being confirmed will be due at the following years
Year Balance at End of Period Balance at Beginning of Year Notes
2021 4,504,020.42
2022 4,030,889.63 4,030,889.63
2023 19,123,515.53 19,123,515.53
2024 47,484,926.46 47,484,926.46
2025 25,105,489.81 25,105,489.81
2026 4,859,558.37
Total 100,604,379.80 100,248,841.85
20. Other Non-current Assets
Ending Balance Beginning Balance
Provisi Provis
Items on for ion for
Book balance Book value Book balance Book value
impair impair
ment ment
Equipment
and Project 2,517,240.00 2,517,240.00
Funds
Three-year
366,752,446.74 366,752,446.74 317,222,341.67 317,222,341.67
term deposit
Total 366,752,446.74 366,752,446.74 319,739,581.67 319,739,581.67
21. Short-term Borrowings
(1) Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Pledge loan
Mortgage loan
Guaranteed Loan 105,088,229.17
Fiduciary Loan 1,722,856,775.38 1,392,325,849.88
In total 1,722,856,775.38 1,497,414,079.05
22. Derivative financial liability
Item Ending balance Beginning balance
94
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Item Ending balance Beginning balance
Changes in fair value of hedging instruments 371,219,136.84
Total 371,219,136.84
23. Accounts Payable
(1). Accounts Payable Listed
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 125,240,425.73 60,908,293.40
Project Funds Payable 4,432,983.56 12,181,233.26
Equipment Funds Payable 820,054.00 1,182,750.00
Short-term rental rent payable 1,055,100.00
Storage Fee 951,999.90
Others 1,664,288.39 1,111,798.73
In total 134,164,851.58 75,384,075.39
24. Account Collected in Advance
(1) Account Collected in Advance list
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1,462,678.11 1,087,874.02
In total 1,462,678.11 1,087,874.02
25. Contract liabilities
(1) Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 528,793,781.94 341,860,984.30
Service payment 5,013,276.60 5,013,276.60
In total 533,807,058.54 346,874,260.90
26. Wages Payable
(1) List of Wages Payable
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
One Short-term Compensation 32,098,807.71 132,482,495.06 152,429,453.01 12,151,849.76
Two After-service Welfare- Set up
1,246,329.23 13,954,391.98 13,642,589.56 1,558,131.65
ESP liabilities
Three Dismission Welfare 449,429.50 449,429.50
Four Other benefits due within one
year
In total 33,345,136.94 146,886,316.54 166,521,472.07 13,709,981.41
(2) List of Short-term Compensation
95
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Wage, Bonus, Allowance and
28,101,795.99 103,722,699.31 123,807,432.05 8,017,063.25
Subsidy
2. Welfare Expense of Employee 20.00 3,763,650.36 3,626,269.36 137,401.00
3. Social Insurance Expense 683,142.38 9,208,899.95 9,095,940.17 796,102.16
Among them: Medical Insurance
579,700.06 8,415,916.25 8,293,916.35 701,699.96
Premiums
Industrial Injury Insurance Premiums 52,319.34 464,299.02 458,458.64 58,159.72
Birth Insurance Premiums 50,718.04 214,872.75 229,753.25 35,837.54
Others 404.94 113,811.93 113,811.93 404.94
4. Housing Provident Funds 328,343.85 7,254,473.25 7,405,536.25 177,280.85
5. Labor Union Expense and Personnel
2,985,505.49 2,189,541.97 2,365,705.63 2,809,341.83
Education Fund
6. Short-term Compensated Absences
7. Short-term profit sharing plan
8. Other short-term remuneration 6,343,230.22 6,128,569.55 214,660.67
In total 32,098,807.71 132,482,495.06 152,429,453.01 12,151,849.76
(3) List of Stated Drawings Plan
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Basic Pension Insurance 1,173,795.55 12,475,630.78 12,179,730.08 1,469,696.25
2. Unemployment Insurance Expense 36,450.79 476,575.29 470,248.04 42,778.04
3. Enterprise Annuity Charges 36,082.89 1,001,685.91 992,111.44 45,657.36
4. Other 500.00 500.00
Total 1,246,329.23 13,954,391.98 13,642,589.56 1,558,131.65
27. Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
Corporate Income Tax 41,280,422.13 21,972,563.71
VAT 18,335,520.37 20,557,653.24
Urban Maintenance and Construction Tax 1,323,227.73 1,662,803.83
House Property Tax 2,054,119.79 2,330,072.39
Land Use Tax 1,021,504.39 1,203,859.39
Individual Income Tax 180,633.69 1,681,176.51
Educational Surtax 521,545.35 663,399.57
Local Educational Surtax 399,839.96 494,409.45
Stamp Tax 396,419.42 314,395.32
Environmental protection tax 3,130.92 3,737.44
Water conservancy construction fee 143.79
96
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Balance at End of Period Balance at Beginning of Year
In total 65,516,363.75 50,884,214.64
28. Other Accounts Payable
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 21,082,795.47 21,082,795.47
Dividends Payable 11,013,302.88 11,013,302.88
Other Accounts Payable 81,727,855.24 40,196,782.89
In total 113,823,953.59 72,292,881.24
(2) Interest Payable
A. Classification
Balance at End of Balance at Beginning
Items
Period of Year
Interest on long-term loans with interest paid by installments and
principal paid at maturity
Interest payable on short term loans
Loan Interest between Enterprises 21,082,795.47 21,082,795.47
In total 21,082,795.47 21,082,795.47
(3) Dividends Payable
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Common stock dividends 7,800,000.00 7,800,000.00
Others 3,213,302.88 3,213,302.88
In total 11,013,302.88 11,013,302.88
(4) Other Accounts Payable
A. List of Other Accounts Payable by Nature of Funds
Items Balance at End of Period Balance at Beginning of Year
Intercourse Funds of Related Parties 2,708,699.21 1,831,079.90
Intercourse Funds between Units 43,159,282.35 13,468,108.09
Personal Intercourse Funds 3,352,982.86 4,025,881.59
Guaranteed Deposit and Deposit 30,430,944.78 16,271,518.35
Various Insurances of Employee 1,539,145.44 2,102,370.03
Others 536,800.60 2,497,824.93
In total 81,727,855.24 40,196,782.89
29. Other current liability
(1) Other current liability statement
Item End balance Beginning balance
97
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Value-added tax to be written off 30,305,027.90 8,319,696.79
Changes in the fair value of hedging
101,746,226.67
hedged items
Total 132,051,254.57 8,319,696.79
30. Long-term loan
Items Balance at End of Period Balance at Beginning of Year
Pledge borrowing
Mortgage borrowing
Guaranteed borrowing
Credit borrowing 71,000,000.00
In total 71,000,000.00
31. Lease Liabilities
Items Balance at End of Period Balance at Beginning of Year
Accounts Payable of operating lease 2,425,606.75 2,614,541.09
In total 2,425,606.75 2,614,541.09
32. Long term wage payable
(1) List of long-term wage payable
Items Balance at End of Period Balance at Beginning of Year
Net liabilities of defined benefit
plan in post employment benefits
Dismission Welfare
Other Long-term Welfare 5,677,134.00 5,677,134.00
In total 5,677,134.00 5,677,134.00
33. Deferred Income
Increase in
Balance at Decrease in the Balance at End of Cause of
Items the Current
Beginning of Year Current Period Period Formation
Period
Government Subsidy 68,716,699.34 946,223.34 67,770,476.00
In total 68,716,699.34 946,223.34 67,770,476.00 --
Among them， items involving government subsidy
Asset
Balance at Increase in Charge to Charge to Balance at
Other related /
Items Receiving Subsidy Beginning of the Current Non-operating other End of
changes income
Year Period Income Profits Period
related
Enterprise foundation Asset
49,929,123.61 638,752.08 49,290,371.53
supporting in the related
98
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Asset
Balance at Increase in Charge to Charge to Balance at
Other related /
Items Receiving Subsidy Beginning of the Current Non-operating other End of
changes income
Year Period Income Profits Period
related
construction stage of
"Tianjin Lingang Industrial
Zone Management
Committee"
Special subsidy for Asset
10,296,486.90 10,296,486.90
infrastructure investment related
The relocation Asset
4,232,401.96 4,232,401.96
compensation related
Tianjin Binhai New
District’s Industrially
Technical Renovation and Asset
2,092,592.45 111,111.12 1,981,481.33
Park Construction Funds as related
well as Expenditures for
Science and Technology
Special subsidies for
Asset
technical upgrading of 450,000.00 450,000.00
related
production lines
Key technology research
and industrialization project Asset
778,388.24 38,919.42 739,468.82
of "moderate processing" of related
grain and oil
Construction of provincial
grain reserve information Asset
633,746.30 100,343.16 533,403.14
management system to related
form asset entry project
Research and technology
demonstration of green and Asset
243,569.92 28,000.02 215,569.90
clean production equipment related
and process for edible oil
Design of electric heating Asset
60,389.96 29,097.54 31,292.42
system for oil tank related
In total 68,716,699.34 946,223.34 67,770,476.00 --
34. Share Capital
Changes in the Current Period（+、-）
Balance at Share Balance at End
Items Beginning of New Share Transfer of
Share Others Sub-total of Period
Year Donation Provident
Issue
Fund
1. Shares with
Restricted 207,336,985.00 -164,877,598.00 -164,877,598.00 42,459,387.00
Conditions
99
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Changes in the Current Period（+、-）
Balance at Share Balance at End
Items Beginning of New Share Transfer of
Share Others Sub-total of Period
Year Donation Provident
Issue
Fund
(1) State
Shareholding
(2) State-owned
Legal-person 164,877,598.00 -164,728,098.00 -164,728,098.00 149,500.00
Shareholding
(3) Other
Domestic Capital 42,459,387.00 -149,500.00 -149,500.00 42,309,887.00
Shareholding
Including:
Domestic
1,299,500.00 -149,500.00 -149,500.00 1,150,000.00
Legal-person
Shareholding
Domestic Natural
Person 41,159,887.00 41,159,887.00
Shareholding
(4) Foreign
Shareholding
Including: Foreign
Legal-person
Shareholding
Foreign Natural
Person
Shareholding
2. Tradable Shares
without Restricted 519,613,266.00 164,877,598.00 164,877,598.00 684,490,864.00
Conditions
(1) RMB Ordinary
454,638,266.00 164,877,598.00 164,877,598.00 619,515,864.00
Shares
(2) Domestically
Listed Foreign 64,975,000.00 64,975,000.00
Shares
(3) Listed Foreign
Shares Overseas
(4) Others
In total 726,950,251.00 0.00 0.00 726,950,251.00
35. Capital Reserves
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
Capital Premium (Stock
1,322,887,986.38 1,322,887,986.38
Premium)
Other Capital Reserves 351,940,364.57 351,940,364.57
In total 1,674,828,350.95 1,674,828,350.95
36. Other Comprehensive Incomes
Items Amounts Occurred in the Current Period
100
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Less: Less:
Other included in
Attrib
Amounts Compreh other
Less utable
Occurred ensive comprehensi
: Attributab to
before Incomes ve income in
Balance at Inco le to Minori Balance at
Income Charged the previous
Beginning me Parent ty End of
Tax in at Earlier period and
of Year Tax Company Shareh Period
the Stage and transferred to
Exp After Tax olders
Current Current retained
ense After
Period Roll-in income in the
Tax
Profit and current
Loss period
One Other
comprehensive
incomes that
won’t be
classified into
profit and loss
1. Remeasure
and set the
change amount
of benefit plan
2. Other
comprehensive
income that
cannot be
transferred to
profits and
losses under the
equity method
3. Changes in
the fair value of
other equity
instrument
investments
4. Changes in
fair value of the
enterprise's own
credit risk
Two Other
comprehensive
-363,258.66 -80,447.42 -443,706.08
incomes that
will be
101
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Amounts Occurred in the Current Period
Less: Less:
Other included in
Attrib
Amounts Compreh other
Less utable
Occurred ensive comprehensi
: Attributab to
before Incomes ve income in
Balance at Inco le to Minori Balance at
Items Income Charged the previous
Beginning me Parent ty End of
Tax in at Earlier period and
of Year Tax Company Shareh Period
the Stage and transferred to
Exp After Tax olders
Current Current retained
ense After
Period Roll-in income in the
Tax
Profit and current
Loss period
classified into
profit and loss
1. Other
comprehensive
income
transferable to -355,212.00 -355,212.00
profit and loss
under the equity
method
2. Changes in
the fair value of
other debt
investments
3. Amount of
financial assets
reclassified into
other
comprehensive
income
4. Provision for
credit
impairment of
other debt
investment
5. Effective part
of cash flow
hedging
102
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Amounts Occurred in the Current Period
Less: Less:
Other included in
Attrib
Amounts Compreh other
Less utable
Occurred ensive comprehensi
: Attributab to
before Incomes ve income in
Balance at Inco le to Minori Balance at
Items Income Charged the previous
Beginning me Parent ty End of
Tax in at Earlier period and
of Year Tax Company Shareh Period
the Stage and transferred to
Exp After Tax olders
Current Current retained
ense After
Period Roll-in income in the
Tax
Profit and current
Loss period
6. Converted
difference
between foreign
currency -8,046.66 -80,447.42 -88,494.08
financial
statements
Total -363,258.66 -80,447.42 -443,706.08
37. Surplus Reserves
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
Statutory Surplus Reserves 84,487,609.05 84,487,609.05
Free Surplus Reserves 37,634,827.93 37,634,827.93
In total 122,122,436.98 122,122,436.98
38. Undistributed Profit
Items Amounts in the Current Period Amounts in the Prior Period
Adjustment on undistributed profit at end of last
187,033,763.26 2,186,806.56
year
Adjustment on total number of undistributed
profit at beginning of period (increase+ and
decrease-)
Adjusted undistributed profit at beginning of
187,033,763.26 2,186,806.56
period
Add: net profit attributable to parent Company
88,328,197.91 73,762,895.19
in the current period
Less: withdrawal legal surplus reserves
Withdrawal free surplus reserves
103
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Amounts in the Current Period Amounts in the Prior Period
Withdrawal general risk reserves
Ordinary stock dividends payable
Ordinary stock dividends transferred to capital
Undistributed profit at end of period 275,361,961.17 75,949,701.75
39. Operation Revenue and Operation Cost
(1) Operation Revenue and Operation Cost
Amounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Prime Business 5,314,299,316.84 5,095,458,647.50 3,737,897,021.63 3,352,581,703.86
Other Business 13,947,518.99 4,086,340.91 12,876,046.00 3,619,554.20
In total 5,328,246,835.83 5,099,544,988.41 3,750,773,067.63 3,356,201,258.06
(2) Prime Business (Industry and Business-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Industry (or Business)
Revenue Cost Revenue Cost
Oil and Oil Seeds 4,869,341,487.59 4,764,017,743.17 3,288,905,719.04 3,046,368,506.47
Food Processing 444,957,829.25 331,440,904.33 448,991,302.59 306,213,197.39
In total 5,314,299,316.84 5,095,458,647.50 3,737,897,021.63 3,352,581,703.86
(3) Prime Business (Region-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Region
Revenue Cost Revenue Cost
North China 4,914,886,135.81 4,796,869,662.51 3,324,692,828.54 3,069,424,264.71
East China 334,001,372.42 245,689,750.46 345,482,036.95 233,630,691.51
Northeast 65,411,808.61 52,899,234.53 67,722,156.14 49,526,747.64
In total 5,314,299,316.84 5,095,458,647.50 3,737,897,021.63 3,352,581,703.86
40. Tariff and Annex
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 3,913,915.24 2,548,143.53
Educational Surtax 1,707,476.99 1,122,628.97
Local Educational Surtax 1,138,317.97 748,419.33
House Property tax 2,381,706.84 2,283,241.92
Land Use Tax 494,944.34 697,236.79
Stamp Tax 1,688,284.40 1,184,227.85
Vehicle and Vessel Use Tax 13,396.03 18,449.10
Resources Tax 4,790.20
Other Taxes and Fees 25,862.08 43,973.68
104
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Amounts in the Current Period Amounts in the Prior Period
In total 11,363,903.89 8,651,111.37
41. Sales Expenses
Amounts in the Prior
Items Amounts in the Current Period
Period
Employee Compensation (including social security, etc) 31,765,392.17 30,679,537.79
Sales Promotion Expenses 14,691,957.83 25,997,677.50
Transportation Fees 0.00 15,690,237.64
Warehousing Fees 6,167,549.59 15,404,986.89
Depreciation 6,696,732.33 8,297,585.79
Material consumption, sample and product cost 2,485,399.23 2,607,074.83
Travel Expenses 3,258,440.43 32,550.49
Repair Costs 306,168.70 196,031.21
Loading and Unloading Fees 715,023.09 733,797.56
Water and Electricity Fees 661,247.68 537,197.29
Vehicle Fees 483,097.45 288,457.98
Packing Expenses 87,852.52 377,669.68
Test and Detection Fees 82,360.64 92,866.07
Business Entertainment Expenses 130,610.36 12,124.00
Others 9,145,744.50 5,693,324.42
Total 76,677,576.52 106,641,119.14
42. Administration Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation (including social security,
43,851,104.43 39,515,162.11
etc)
Impairment Costs 11,973,858.13 8,780,269.70
Amortization of Assets 4,901,086.37 7,640,013.04
Hiring an intermediary fee 3,847,980.48 6,913,392.38
Company Expenses 1,404,552.02 5,653,026.97
Repair Costs 817,744.13 315,031.15
Lease fee 1,891,512.26 2,300,085.56
Vehicle Fees 1,204,195.24 1,171,579.21
Information Network Fees 213,966.44 546,524.14
Business Entertainment Expenses 602,406.43 530,321.82
Environmental Protection Fees 452,173.78 202,183.63
Commercial Insurance Expenses 419,856.67 249,530.18
Workers Insurance Expenses 364,967.31 191,201.44
105
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Amounts in the Current Period Amounts in the Prior Period
Security Protection Fees 371,966.61 362,895.58
Labor Protection Fees 198,526.82 250,202.03
Material Consumption 183,533.95 178,299.87
Travel Expenses 498,287.95 168,024.21
Hire an intermediary fee Other Expenses 11,601,981.52 3,064,543.27
In total 84,799,700.54 78,032,286.29
43. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Research fees 5,170,755.15 2,803,717.02
In total 5,170,755.15 2,803,717.02
44. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 19,854,113.81 16,975,042.06
Less: Interest Income 5,408,203.94 5,373,488.21
Exchange Profit and Loss 25,480.77 10,647,837.51
Service Charges 1,149,403.55 561,292.42
In total 15,620,794.19 22,810,683.78
45. Other Profits
Amounts in the Amounts in the Prior
Items
Current Period Period
Government Subsidy Related to Daily Corporate Activities 5,839,070.44 4,891,100.00
Return of Service Charges of Withholding Individual Income Tax 586,991.10 155,848.84
In total 6,426,061.54 5,046,948.84
46. Investment Income
Amounts in the Amounts in the Prior
The source of the return on investment
Current Period Period
Long-term equity investment income accounted with equity method 25,976,509.34 6,947,778.68
The investment income of a financial asset measured at fair value and
whose changes are included in the current profit and loss during the
holding period
Investment income obtained during the holding of transactional
607,342.87 1,919,322.71
financial assets
Investment income from disposal of wealth management products 4,663,045.87 7,828,824.60
Investment income of disposing trading financial assets
Others
Total 31,246,898.08 16,695,925.99
106
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
47. Profits on Changes in Fair Value
Amounts in the Current Amounts in the Prior
Source of generating income with changes in fair value
Period Period
Trading financial assets 61,697,730.47 -76,876,667.25
Including: income with changes in fair value generated by
61,697,730.47 -76,876,667.25
derivative financial instruments
Trading financial liabilities
Investment real estate measured by fair value
In total 61,697,730.47 -76,876,667.25
48. Assets Disposal Income
Amounts in the Current
Items Amounts in the Prior Period
Period
Gains or losses on disposal of fixed assets -58,126.00
Gains or losses on disposal of intangible assets -559.83
In total -58,685.83
49. Non-operating Income
(1) Classification
Amounts Charged
Amounts in the Amounts in the
Items to Non-recurring
Current Period Prior Period
Profit and Loss
Total non-current assets scrap gains: 63,990.38 63,990.38
Including: fixed assets scrap profit 63,990.38 63,990.38
profit from scrap of intangible assets
Donation Gains 10,000.00
Government Subsidy 87,991.62
Asset Inventory Surplus Gains
Relocation Compensation 49,231.02 127,712.82 49,231.02
Demand Compensation Income 1,040,420.14 45,892.72 1,040,420.14
Other Gains 125,472.26 417,842.66 125,472.26
In total 1,279,113.80 689,439.82 1,279,113.80
50. Non-operating Expenses
Amounts Charged to
Amounts in the Current Amounts in the Prior
Items Non-recurring Profit
Period Period
and Loss
Total loss on scrap of non current assets 174,235.08 125,166.92 174,235.08
Including: loss on scrap of fixed assets 174,235.08 125,166.92 174,235.08
107
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Amounts Charged to
Amounts in the Current Amounts in the Prior
Items Non-recurring Profit
Period Period
and Loss
loss on scrap of intangible assets
Donation Expenses 43,940.54
Inventory losses 24,500.00 24,500.00
Relocation Loss 51,705.77 117,085.86 51,705.77
Penalty expenditure 11,410.09 500.00 11,410.09
Compensation 1,015,309.53
Others 844.38 116,668.92 844.38
Total 262,695.32 1,418,671.77 262,695.32
51. Income Tax Expenses
(1) List of Income Tax Expenses
Amounts in the Prior Amounts in the Current
Amounts in the Current Period
Period Period
Income Tax Expenses of the Current Period 30,647,755.00 40,543,901.19
Deferred Income Tax Expenses 6,310,979.14 -16,082,069.33
Total 36,958,734.14 24,461,831.86
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the Amounts in the Prior
Items
Current Period Period
Total Profits 135,397,539.87 119,769,867.60
Income tax expenses calculated by statutory/applicable tax rate 33,849,384.97 21,377,859.59
Effect of subsidiary corporations being applicable to different
-205,910.89 -163,343.19
tax rates
Adjustment on effect of income tax in the prior period 69,840.82
Effect of Non-taxable Incomes -5,206,628.35 -818,108.22
Effect of Non-deductible cost, expense and loss 11,964.14
Effect of deductible loss on usage of unconfirmed deferred
income tax assets in the prior period
Effect of deductible temporary difference or deductible loss on
8,487,990.35 4,068,635.64
unconfirmed deferred income tax in the current period
Effect of addition
Others -47,906.90 -3,211.96
Income Tax Expenses 36,958,734.14 24,461,831.86
108
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
52. Other comprehensive income items and their income tax impact and transferred to profit and loss
See details of ‘Appendix Six Notes on Items in Consolidated Financial Statements, 36 Other Comprehensive
Incomes’
53. Notes to items related cash flow statement
(1) Receiving other cash related to operation activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 21,322,392.80 21,078,496.81
Intercourse Funds of Other Units 68,948,398.19 126,023,625.30
Non-operating Income and other income 461,551.34 818,480.79
Interest Income 4,224,691.03 4,197,572.37
Future Margins 1,194,590,311.77 333,158,112.00
Others 7,011,863.15 3,357,922.87
Total 1,296,559,208.28 488,634,210.14
(2) Other Cash Payment Related to Operation Activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 1,581,282.06 1,285,132.00
Intercourse Funds of Other Units 1,036,471,337.77 385,951,971.50
Payment for Administration Expenses 12,020,073.04 11,735,512.89
Payment for Operating Expenses 17,754,375.04 28,815,251.90
Non-operating Expenses 108,141.65 1,089,682.49
Petty Cash Paid 478,289.75 302,932.58
Bank Charges 1,125,306.40 563,721.88
Others 9,848,614.49 5,045,373.28
In total 1,079,387,420.20 434,789,578.52
54. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Amounts in the Prior
Supplementary Materials
Current Period Period
1. Adjusting net accounting profit to operating cash flow
Net Profit 98,438,805.73 95,308,035.74
Add: Assets Impairment Reserves
Credit impairment loss
Fixed Assets Depreciation, Oil-and-gas Assets Depreciation
52,265,152.07 48,728,162.99
and Productive Biological Assets Depreciation
Amortization of Intangible Assets 7,436,713.40 7,396,651.55
Amortization of Long-term Deferred Expenses 451,034.11 468,031.78
Losses on Disposal of Fixed Assets, Intangible Assets and
58,685.83
Other Long-term Assets (Fill in profit with symbol “－”)
109
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Losses on Retirement of Fixed Assets (Fill in profit with
-174,235.08 125,166.92
symbol “－”)
Losses on Changes in Fair Value (Fill in profit with symbol
-61,697,730.47 76,876,667.25
“－”)
Financial Expenses (Fill in profit with symbol “－”) 19,879,594.58 27,622,879.57
Investment Losses (Fill in profit with symbol “－”) -31,246,898.08 -16,695,925.99
Decrease in Deferred Income Tax Assets (Fill in increase with
-11,734,401.87 -10,232,677.86
symbol “－”)
Increase in Deferred Income Tax Reliabilities (Fill in decrease
16,853,619.06 -7,136,904.20
with symbol “－”)
Decrease in Inventory (Fill in increase with symbol “－”) -374,437,109.01 504,378,180.81
Decrease in Items of Operating Receivables (Fill in increase
206,404,522.78 -408,709,949.07
with symbol “－”)
Increase in Items of Operating Receivables (Fill in decrease
355,352,692.40 -131,032,498.73
with symbol “－”)
Others
Net Cash Flows from Operating Activities 277,850,445.45 187,095,820.76
2. Major investment and financing activities that do not
involve cash payments
Conversion of Debt into Capital
Convertible Bonds Due Within One Year
Fixed Assets under Financing Lease
3. Net change conditions in cash and cash equivalents
Cash balance at end of period 778,877,443.37 570,017,788.15
Less: cash balance at beginning of period 334,389,017.41 555,097,777.21
Add: balance of the cash equivalents at end of period
Less: balance of the cash equivalents at beginning of period
Cash and cash equivalent net increase quota 444,488,425.96 14,920,010.94
(2) Composition of cash and cash equivalents
Items Balance at End of Period Balance at Beginning of Period
One Cash 778,877,443.37 334,389,017.41
Including: cash in stock 90,718.49 16,761.72
Bank deposit available for payment at any time 648,679,613.98 298,158,812.41
Other currency funds available for payment at any
130,107,110.90 36,213,443.28
time
Deposits with central bank available for payment
Interbank deposit
Interbank placements
Two Cash Equivalents
Including: bond investment maturing within three
months
110
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Items Balance at End of Period Balance at Beginning of Period
Three Balance of Cash and Cash Equivalents at
778,877,443.37 334,389,017.41
End of Period
Including: restricted cash and cash equivalents
used by parent Company or intra-group affiliates
55. Assets with restricted ownership or right to use
Items Book Value at End of Period Reasons being Restricted
Currency Funds 1,077,152.20 Arbitration freezing
Inventory 3,775,954.85 Loan Mortgage
Investment Real Estate 6,051,420.47 Loan Mortgage
Fixed Assets 1,926,344.90 Loan Mortgage
In total 12,830,872.42
Note: There is currency fund RMB 1,077,152.20 which has unfrozen on July 9th,2021
56. Monetary Items of Foreign Currency
(1) Monetary Items of Foreign Currency
Balance of Foreign
Balance of Converting to
Items Currency at End of Exchange Rate Convert
RMB at End of Period
Period
Monetary fund 6,072,048.30 6.4601 39,226,039.22
Including: US Dollars 6,072,048.30 6.4601 39,226,039.22
Accounts receivable 613,962.28 6.4601 3,966,257.73
Including: US Dollars 613,962.28 6.4601 3,966,257.73
Advanced payment 11,668,087.35 6.4601 75,377,011.09
Including: US Dollars 11,668,087.35 6.4601 75,377,011.09
Other receivalbe 1,000,000.00 6.4601 6,460,100.00
Including: US Dollars 1,000,000.00 6.4601 6,460,100.00
Short-term loan 4,385,478.81 6.4601 28,330,631.66
Including: US Dollars 4,385,478.81 6.4601 28,330,631.66
Accounts Payable 83,790.00 6.4601 541,291.78
Including: US Dollars 83,790.00 6.4601 541,291.78
Contract Liabilities 3,014,448.97 6.4601 19,473,641.79
Including: US Dollars 3,014,448.97 6.4601 19,473,641.79
Other Payables 273,332.79 6.4601 1,765,757.16
Including: US Dollars 273,332.79 6.4601 1,765,757.16
(2) Instruction of Operational Entity Overseas
The registrant and operating unit of the Company is Beijing Grain (Singapore) International Trade Co., Ltd.
with main business place of Singapore and recording currency of US Dollars.
111
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
57. Hedging items and related hedging instruments
Please refer to 3. Derivative financial liability under Section VI of the Notes.
58. Government Subsidies
(1) Basic conditions of government grants
Presentation Amount recorded in
Type Amount
item profit and loss
VAT return 4,016,218.89 Other income 4,016,218.89
Enterprise infrastructure supporting on
construction stage by Tianjin Harbor Industry 638,752.08 Other income 638,752.08
Zone Management Committee
Subsidies for training workers 389,400.00 Other income 389,400.00
Subsidies for employment stabilization 387,281.08 Other income 387,281.08
Fund on industury technology improvement &
Park construction by Tianjin Binhai New Area 111,111.12 Other income 111,111.12
and Expenditure on science technology
Asset account formed by provincial grain reserve
100,343.16 Other income 100,343.16
management information system
Job subsidy for the employment center of the
88,717.13 Other income 88,717.13
Disabled Union
Industrial project on key-tech research of grain
38,919,42 Other income 38,919.42
and oil “processing adaptation”
Allotment on Electric Heating System for Oil
29,097.54 Other income 29,097.54
Tank System
Green cleaning producing equipment for edible oil
28,000.02 Other income 28,000.02
and tech-research and science demonstration
Subsidies for social insurance 9,600.00 Other income 9,600.00
Subsidies for grain and oil market testing 1,350.00 Other income 1,350.00
Preferential tax control system 280.00 Other income 280.00
Total 5,839,070.44 5,839,070.44
VII. Change in Consolidation Scope
The Company has no change in the scope of merger during this reporting period.
VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Shareholding Ratio Voting
Principle
Name of Registered Nature of (%) rights Mode of
Place of
Subsidiary Place Business ratio Acquisition
Business Direct Indirect
(%)
112
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Beijing Merger under
Investment
Jingliang Food Beijing Beijing 100 100 the same
management
Co., Ltd. control
Jingliang Agricultural
Merger under
(Tianjin) Grain Product and
Tianjin Tianjin 70 70 the same
and Oil Industry By Product
control
Co., Ltd. Processing
Beijing Merger under
Grain and oil
Jingliang Oil Beijing Beijing 100 100 the same
trade
and Fat Co., Ltd. control
Jingliang
Farm and Merger under
(Hebei) Oil
Hebei Hebei Sideline Food 51 51 the same
Industry Co.,
Processing control
Ltd.
Beijing Guchuan Merger under
Grain and oil
Edible Oil Co., Beijing Beijing 100 100 the same
trade
Ltd. control
Beijing Farm and Merger under
Eisen-Lubao Oil Beijing Beijing Sideline Food 100 100 the same
Co., Ltd. Processing control
Beijing
Merger under
Tianweikang Oil
Beijing Beijing Warehousing 100 100 the same
Distribution
control
Center Co., Ltd.
Beijing Guchuan Merger under
Food
Bread Food Co., Beijing Beijing 100 100 the same
Processing
Ltd. control
Zhejiang Xiao Combination
Food
Wang Zi Food Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Processing
Co., Ltd. same control
Hangzhou
Combination
Lin'an Food
Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Xiaotianshi Processing
same control
Food Co., Ltd.
Liaoning Xiao Combination
Food
Wang Zi Food Liaoning Liaoning 17.6794 77.2072 94.8866 not under
Processing
Co., Ltd. same control
Linqing Xiao Combination
Food
Wang Zi Food Linqing Linqing 17.6794 77.2072 94.8866 not under
Processing
Co., Ltd. same control
113
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Lin'an
Chunmanyuan Combination
Food
Agricultural Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Processing
Development same control
Co., Ltd.
Jingliang
(Singapore) Establishment
Singapore Singapore Grain trade 100 100
International by investment
Trade Co., Ltd.
Jingliang Rural
Complex
Land Establishment
Construction Xinyi Xinyi 51 51
remediation by investment
and Operations
(Xinyi) Co., Ltd.
Jingliang
(Caofeidian)
Establishment
Agricultural Tangshan Tangshan Plantation 51 51
by investment
Development
Co., Ltd.
Beijing jingliang
Grain and oil Establishment
gubi oil and Beijing Beijing 100 100
trade by investment
grease co. LTD
(2) Major non-wholly-owned subsidiaries
Profit And Loss Dividends Balance of
Shareholding Voting rights
Attributable to Distributed to Minority
Ratio of ratio of
Name of Minority Minority Shareholder's
Minority Minority
Subsidiary Shareholders for Shareholders for Equity at the
Shareholders Shareholders
the Current the Current End of the
(%) (%)
Period Period Period
Zhejiang Xiao
Wang Zi Food 5.1134 5.1134 2,525,198.34 50,994,568.52
Co., Ltd.
Jingliang
(Tianjin) Grain
and Oil Industry 30 30 7,779,000.00 273,039,839.72
Co., Ltd.
(3) Important financial information on major non-wholly-owned subsidiaries
Ending balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.
Current Assets
366,155,906.90 1,452,913,188.33
Non-current Assets
625,771,532.39 776,598,031.40
Total Assets
991,927,439.29 2,229,511,219.73
Current Liabilities 105,125,445.57 1,227,294,364.60
Non-current Liabilities
20,656,022.86 92,084,211.66
Total Liabilities
125,781,468.43 1,319,378,576.26
Operating Income
400,535,661.71 2,066,464,701.05
Net Profit (Loss)
42,774,753.04 25,929,844.42
Total Comprehensive
42,774,753.04 25,929,844.42
114
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Ending balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.
Income
Cash Flow from Operating
21,727,662.43 424,430,320.67
Activities
(Continued)
Beginning balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co., Ltd. Jingliang (Tianjin) Grain and Oil Industry Co., Ltd.
Current Assets
348,212,958.32 1,451,014,894.50
Non-current Assets
636,041,329.78 784,620,786.80
Total Assets
984,254,288.10 2,235,635,681.30
Current Liabilities 140,227,047.42 1,283,603,409.67
Non-current Liabilities
20,656,022.86 67,829,472.58
Total Liabilities
160,883,070.28 1,351,432,882.25
Operating Income
414,085,161.70 1,588,794,595.18
Net Profit (Loss)
59,576,702.97 30,337,553.63
Total Comprehensive
59,576,702.97 30,337,553.63
Income
Cash Flow from Operating
68,355,787.51 -226,038,764.17
Activities
2. Equity in Joint Ventures or Affiliates
(1) Important Joint Ventures or Affiliates
Shareholding Ratio Accounting
Principle (%) Treatment Methods
Name of Joint Nature of
Place of Registered Place for Investment in
Venture or Affiliate Business
Business Direct Indirect Joint Ventures or
Affiliates
One Joint Ventures
1. Beijing Zhengda
Beijing Beijing Manufacturer 50.00 Equity method
Feed Co., Ltd.
Two Affiliates
1. SINOGRAIN
Transportation
(Tianjin)
Tianjin Tianjin and 30.00 Equity method
Warehousing
warehousing
Logistics Co., Ltd.
(2) Important financial information on major joint ventures
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item
Beijing Zhengda Feed Co., Ltd. Beijing Zhengda Feed Co., Ltd.
115
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item
Beijing Zhengda Feed Co., Ltd. Beijing Zhengda Feed Co., Ltd.
Current assets 232,509,285.82 228,921,574.13
Including: cash and cash
21,994,875.27 95,186,696.60
equivalents
Non-current assets 22,867,202.06 25,478,642.09
Total assets 255,376,487.88 254,400,216.22
Current liabilities 55,315,530.88 73,979,867.51
Non-current liabilities 3,989,987.44 4,076,166.52
Total liabilities 59,305,518.32 78,056,034.03
Minority shareholder's equity
Shareholders' equity attributable to
196,070,969.56 176,344,182.19
the parent Company
Share of net assets based on
98,035,484.78 88,172,091.10
shareholding ratio
Adjustments 2,938,457.28 2,652,807.39
-- Goodwill
-- Unrealized profits from internal
transactions
-- Other 2,938,457.28 2,652,807.39
Book value of equity investment in
100,973,942.06 90,824,898.49
joint ventures
Fair value of equity investment in
joint ventures with open offers
Operating income 185,991,526.96 153,872,389.59
Financial costs -2,549,556.75 -1,308,088.38
Income tax expense 6,749,196.01 4,456,502.35
Net profit 20,298,087.13 13,073,530.78
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 20,298,087.13 13,073,530.78
(3) Important financial information on major affiliates
Beginning Balance/Last Term
Ending Balance/Current Amount
Amount
Item
SINOGRAIN (Tianjin) Warehousing SINOGRAIN (Tianjin) Warehousing
Logistics Co., Ltd. Logistics Co., Ltd.
Current assets 84,470,838.52 87,560,108.46
Non-current assets 427,139,154.95 407,888,087.68
Total assets 511,609,993.47 495,448,196.14
116
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Current liabilities 7,256,263.20 24,167,311.59
Non-current liabilities 135,191,122.94 72,609,829.76
Total liabilities 142,447,386.14 96,777,141.35
Minority shareholder's equity
Shareholders' equity attributable to the
369,162,607.33 398,671,054.79
parent Company
Share of net assets based on
110,748,782.20 119,601,316.43
shareholding ratio
Adjustments
-- Goodwill
-- Unrealized profits from internal
transactions
-- Others
Book value of equity investment in
110,748,782.20 119,601,316.43
affiliates
Fair value of equity investment in
affiliates with open offers
Operating income 28,434,555.09 6,383,017.42
Net profit 4,116,892.01 1,370,044.29
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 4,116,892.01 1,370,044.29
Dividends received from affiliates in
24,680,000.00
the current period
IX. Risks Related to Financial Instruments
The Company's principal financial instruments include equity investment, creditors' investment, borrowing,
accounts receivable, accounts payable, etc. The primary purpose of these financial instruments is to finance the
operations of the Company. The Company has a variety of other financial assets and liabilities directly arising from
its operations, such as accounts receivable and accounts payable.
The main risks caused by the Company's financial instruments are credit risk, liquidity risk and market risk.
1. Classification of financial instruments
(1) Book value of various financial assets on the balance sheet date
A. June 30, 2021
Financial assets measured Financial assets measured
Financial assets
Financial asset at fair value and the at fair value and the
measured at Total
items changes recorded in changes recorded in other
amortized cost
current profits and losses comprehensive income
Monetary
779,954,595.57 779,954,595.57
funds
Transactional
363,000,000.00 363,000,000.00
financial assets
Derivative
75,597,717.39 75,597,717.39
financial assets
Notes
0.00
receivables
117
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Financial assets measured Financial assets measured
Financial assets
Financial asset at fair value and the at fair value and the
measured at Total
items changes recorded in changes recorded in other
amortized cost
current profits and losses comprehensive income
Accounts
96,128,277.06 96,128,277.06
receivables
Other
88,750,805.46 88,750,805.46
receivables
Investment in
other equity 20,000,000.00 20,000,000.00
instruments
Other
non-current 366,752,446.74 366,752,446.74
assets
B. Jaunary 1, 2021
Financial assets
Financial assets measured
Financial assets measured at fair value
Financial asset at fair value and the
measured at and the changes Total
items changes recorded in other
amortized cost recorded in current
comprehensive income
profits and losses
Monetary funds 335,466,169.61 335,466,169.61
Transactional
63,478,071.73 63,478,071.73
financial assets
Derivative
0.00
financial assets
Notes
456,565.85 456,565.85
receivables
Accounts
92,245,667.60 92,245,667.60
receivables
Other
541,905,656.97 541,905,656.97
receivables
Investment in
other equity 20,000,000.00 20,000,000.00
instruments
Other
non-current 319,739,581.67 319,739,581.67
assets
(2) Book value of various financial liabilities on the balance sheet date
A. June 30, 2021
Financial Financial liabilities measured at fair value and
Other financial liability Total
liability items changes included in current profits and losses
Short term
1,722,856,775.38 1,722,856,775.38
loans
Derivative
financial 0.00
liability
Accounts
134,164,851.58 134,164,851.58
payable
Other Payables 113,823,953.59 113,823,953.59
Long-term
71,000,000.00 71,000,000.00
Loan
B. January 1, 2021
Financial Financial liabilities measured at fair value and
Other financial liability Total
liability items changes included in current profits and losses
Short term
1,497,414,079.05 1,497,414,079.05
loans
Derivative
financial 371,219,136.84 371,219,136.84
liability
118
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Financial Financial liabilities measured at fair value and
Other financial liability Total
liability items changes included in current profits and losses
Accounts
75,384,075.39 75,384,075.39
payable
Other Payables 72,292,881.24 72,292,881.24
Long-term
0.00
Loan
2. Credit Risk
On June 30, 2021, the largest credit risk exposure that may cause financial loss to the Company mainly comes
from the loss on financial assets of the Company due to the failure of the other party to perform its obligations,
including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument
measured at fair value, its book value reflects its risk exposure instead of their biggest risk exposure, and its
biggest risk exposure may vary with the change of its future fair value.
In order to reduce the credit risk, the Company sets relevant policies to control its exposure, sets
corresponding credit periods based on customer’s financial position, possibility of obtaining guarantees from third
parties, credit records and other factors such as current market conditions and other credit qualifications for
customer assessment, and implements other monitoring procedures to ensure that necessary measures are taken to
recover overdue credits. In addition, the Company reviews the collection of individual account receivables on each
balance sheet date in order to make sufficient provision for bad debts for collectable amounts. Therefore, the
Company's management believes that the Company's credit risk has been greatly reduced.
The liquidity funds of the Company are deposited in banks with high credit rating, so the credit risk of
liquidity funds is low.
3. Liquidity Risk
When managing liquidity risk, the Company keeps and monitors adequate cash and cash equivalents
approved by its management in order to meet the Company's business needs and reduce the influences of cash flow
fluctuations. The Company's management monitors the use of bank loans and ensures the performance of loan
agreements.
Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
June 30, 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term
1,722,856,775.38 1,722,856,775.38
loans
Accounts
134,164,851.58 134,164,851.58
payable
Other
113,823,953.59 113,823,953.59
Payables
Long-term
71,000,000.00 71,000,000.00
Loan
(Continued)
January 1, 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term
1,497,414,079.05 1,497,414,079.05
loans
Accounts
371,219,136.84 371,219,136.84
payable
Other
72,075,894.39 3,308,181.00 75,384,075.39
Payables
119
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
January 1, 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Long-term
72,292,881.24 72,292,881.24
Loan
4. Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due
to the change of market price. Market risk mainly includes interest rate risk, foreign exchange risk and other price
risks, such as equity instrument investment price risk.
(1) Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest
rates bring the Company the interest rate risk on cash flow, while the financial liabilities at fixed interest rates
bring the Company the interest rate risk on fair value. The Company decides the relative proportion of fixed
interest rate contracts and floating interest rate contracts according to the current market environment.
As of June 30, 2021, the Company's interest-bearing liabilities under floating rate contracts denominated in
RMB amounted to RMB 70,000,000.00, and those under fixed rate contracts denominated in RMB amounted to
RMB 1,694,204,046.67, and USD amounted to USD 4,385,478.81.
(2) Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities
(when revenues and expenditures are settled in foreign currencies other than the Company's accounting standard
currency) and its net investments in its overseas subsidiaries. The Company's exposure to foreign exchange risks is
mainly related to US dollars. Except that some of the Company's subsidiaries purchase and sell in US dollars, other
major business activities of the Company are priced and settled in RMB.As at June 30, 2021, the Company's assets
and liabilities are in RMB, except the assets or liabilities described in the table below are in US dollars. The
foreign exchange risks arising from the assets and liabilities of such foreign currency balances may have an impact
on the Company's operating results.
Items Ending Balance Beginning Balance
Monetary funds 39,226,039.22 5,056,624.13
Accounts receivable 3,966,257.73 1,044,832.24
Advanced payment 75,377,011.09
Other receivables 6,460,100.00
Short-term Loan 28,330,631.66
Accounts payables 541,291.78
Contract liabilities 19,473,641.79
Other payables 1,765,757.16 381,054.16
Note: The Company pays close attention to the impact of exchange rate fluctuations on the Company.
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profit and loss or owner's equity. As any risk variable rarely changes
in isolation, and the correlation between variables will have a significant effect on the final impact amount of a risk
variable change, the following content is carried out under the assumption that the change of each variable is
independent.
120
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and
other variables remain unchanged, the after-tax impact of possible reasonable changes in exchange rate on current
profits and losses and rights and interests is as follows:
Current period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
The yuan depreciated
5% 579,852.37 579,852.37
against the US dollar
The yuan appreciated
-5% -578,852.37 -578,852.37
against the US dollar
(Continue)
Prior period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
The yuan depreciated
5% 89,963.07 89,963.07
against the US dollar
The yuan appreciated
-5% -89,963.07 -89,963.07
against the US dollar
X. Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
Fair Values at the End of the Period
First Level Fair Second Level Third Level
Item
Value Fair Value Fair Value Total
Measurement Measurement Measurement
One. Continuous fair value
measurement
Ⅰ. Transactional financial assets 438,597,717.39 438,597,717.39
1. Financial assets that are measured
at fair value and whose changes are
363,000,000.00 363,000,000.00
included in the current profits and
losses
(1) Investment in debt instruments 363,000,000.00 363,000,000.00
(2) Investment in equity instruments
(3) Derivative financial assets 75,597,717.39 75,597,717.39
2. Financial assets designated as fair
value through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Others
Ⅱ. Other debt investment
Ⅲ. Investment in other equity
20,000,000.00 20,000,000.00
instruments
Total assets continuously
438,597,717.39 20,000,000.00 458,597,717.39
measured at fair value
2. Basis for determining market prices of continuous and non-continuous first level fair value
121
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
measurement items
The Company makes offers for first level fair value measurement according to open contracts of the futures
exchange and the quote from the bank on financial product at the end of the period.
3. Continuous and non-continuous third-level fair value measurement items adopt valuation techniques
and qualitative and quantitative information of important parameters
The Company‘s investment in other equity instruments of the third level fair value measurement project is
the ”three noes“ equity investment that without control, joint control and significant influence held by the
Company. On the basis of analyzing the operation status of the invested enterprise and combining with relevant
situations, the Company takes the investment cost as the fair value of other equity instrument investment for
measurement at the end of the period.
XI. Related Parties and Related-Party Transactions
1. Identification criteria of related parties
If one party controls, jointly controls or exerts significant influence on the other party, and two or more
parties are controlled, jointly controlled or significantly influenced by the same party, they constitute related
parties.
2. Parent Company of the Company
Registered
Registered Legal Nature of Capital
Name of Parent Company Company type
Place representative Business (ten thousand
Yuan)
Wholly
Investment
Beijing Grain Group Co. Ltd. state-owned Beijing Zhang Lijun 90,000.00
Management
enterprise
(Continue)
Proportion of Shares Held by Proportion of Voting Power
The ultimate controlling
Parent Company in the Held by Parent Company in Organization code
party of the Company
Company (%) the Company (%)
Beijing State-owned
39.68 39.68 Capital Operation and 683551038
Management Center
3. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
4. Joint Ventures and Affiliates of the Company
See 3. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.
5. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Guchun Food Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Food Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Yueshengzhai Halal Food Co., Ltd Controlled by the ultimate controlling party
122
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Name of Other Related Party Relationship with the Company
Beijing ershang dahongmen Meat Food Co., Ltd Controlled by the ultimate controlling party
Shandong Fukuan Bioengineering Co., Ltd Controlled by the ultimate controlling party
Beijing Guchun rice Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Wangzhihe Food Co., Ltd Controlled by the ultimate controlling party
Beijing heiliu animal husbandry technology Co., Ltd Controlled by the ultimate controlling party
Beijing Yanqi Yueshengzhai Halal Food Co., Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co., Ltd Controlled by the ultimate controlling party
Beijing Liubiju Food Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Moqi Zhonghong Food Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Jinghua Tea Co., Ltd Controlled by the ultimate controlling party
Beijing Huayu Food Co., Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd Controlled by the ultimate controlling party
Beijing Huadu liquor Marketing Co., Ltd Controlled by the ultimate controlling party
Beijing Beishui Food Industry Co., Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Venus duck industry Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain e-commerce Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang Longhe Food Co., Ltd Controlled by the ultimate controlling party
Beijing Changyang farm Co., Ltd Controlled by the ultimate controlling party
Beijing hundred year old Liyuan Ecological Agriculture Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang palace Yifu Food Co., Ltd Controlled by the ultimate controlling party
Feed branch of Beijing Sanyuan Seed Industry Technology Co.,
Controlled by the ultimate controlling party
Ltd
Beijing shounong Supply Chain Management Co., Ltd Controlled by the ultimate controlling party
Hebei shounong Modern Agricultural Technology Co., Ltd Controlled by the ultimate controlling party
Beijing Haidian Xijiao grain and oil supply station Co., Ltd Controlled by the ultimate controlling party
Beijing Zhujun grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Beijing first agricultural consumption poverty alleviation and
Controlled by the ultimate controlling party
Entrepreneurship Center Co., Ltd
Beijing Children soldiers grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Liangguan grain and oil supply station of Beijing Controlled by the ultimate controlling party
Beijing maliandou special supply station Co., Ltd Controlled by the ultimate controlling party
Beijing junchengyuan grain and oil purchase and Marketing Co.,
Controlled by the ultimate controlling party
Ltd
Beijing food supply office No.34 supply department Co., Ltd Controlled by the ultimate controlling party
Beijing Longqing Xiadu military grain supply Co., Ltd Controlled by the ultimate controlling party
Beijing baijiayi Food Co., Ltd Controlled by the ultimate controlling party
Beijing Hongyuan Lijun grain and oil supply Co., Ltd Controlled by the ultimate controlling party
123
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Name of Other Related Party Relationship with the Company
Beijing Desheng Hotel Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Logistics Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain canal grain and Oil Trade Co., Ltd Controlled by the ultimate controlling party
Beijing Shuangta Green Valley Agriculture Co., Ltd Controlled by the ultimate controlling party
Beijing southern suburb agricultural production and Management
Controlled by the ultimate controlling party
Co., Ltd
Beijing Dongcheng sugar industry tobacco and Wine Co., Ltd Controlled by the ultimate controlling party
Beijing North Beijing sugar wine sales Co., Ltd Controlled by the ultimate controlling party
Beijing shounong commercial chain Co., Ltd. Hebei xiong'an
Controlled by the ultimate controlling party
branch
Beijing Sanyuan Taxi Co., Ltd Controlled by the ultimate controlling party
Beijing Business School Controlled by the ultimate controlling party
Beijing maisui Hotel Management Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Xiangshan Conference Center Co., Ltd Controlled by the ultimate controlling party
Beijing sugar industry tobacco & Wine Group Co., Ltd Controlled by the ultimate controlling party
Beijing grain (Tianjin) e-commerce Co., Ltd Controlled by the ultimate controlling party
Beijing Automobile Service Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Food Group Finance Co., Ltd Controlled by the ultimate controlling party
Beijing dahongmen grain storage Co., Ltd Controlled by the ultimate controlling party
Beijing Dongjiao farm Co., Ltd Controlled by the ultimate controlling party
Beijing aquatic products Co., Ltd Controlled by the ultimate controlling party
Beijing Beijing automobile driving technical school Controlled by the ultimate controlling party
Beijing grain (Tianjin) Trade Development Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Xinda Property Management Co., Ltd Controlled by the ultimate controlling party
Beijing Beishui Jialun water products market Co., Ltd Controlled by the ultimate controlling party
Beijing Xicheng sugar industry tobacco and Wine Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Industrial Asset Management Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang Fuyue Food Co., Ltd Controlled by the ultimate controlling party
Beijing Yanqing farm Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Taihe Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing capital agricultural Pinggu agricultural science and
Controlled by the ultimate controlling party
technology innovation investment and Development Co., Ltd
Beijing Shunyi grain and Oil Co., Ltd Controlled by the ultimate controlling party
Beijing Longsheng Zhongwang breakfast Co., Ltd Controlled by the ultimate controlling party
Beijing shounong Animal Husbandry Development Co., Ltd Controlled by the ultimate controlling party
Tianjin Hongda international freight forwarding Company Controlled by the ultimate controlling party
124
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Name of Other Related Party Relationship with the Company
Beijing Lanfeng Vegetable Distribution Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Taiyu Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing xingfashion Trade Co., Ltd Controlled by the ultimate controlling party
Beijing zhongdairich Property Management Co., Ltd Controlled by the ultimate controlling party
Beijing Huacheng Trading Co., Ltd Controlled by the ultimate controlling party
Beijing haipetrochemical (Tianjin) Co., Ltd Controlled by the ultimate controlling party
Beijing daimo flour Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Taixing Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing milk Co., Ltd Controlled by the ultimate controlling party
Beijing hongbaoyuan Trading Co., Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co., Ltd Controlled by the ultimate controlling party
Beijing Dongfeng International Sports Culture Co., Ltd Controlled by the ultimate controlling party
Beijing grain century cloud Technology Co., Ltd Controlled by the ultimate controlling party
China Ocean Real Estate Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Oil Co., Ltd Controlled by the ultimate controlling party
Beijing sidaokou aquatic products Co., Ltd Controlled by the ultimate controlling party
Beijing Yonghe Xincheng grain and oil supply Co., Ltd Controlled by the ultimate controlling party
Beijing Longde Business Management Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Shengyuan grain and Oil Sales Co., Ltd Controlled by the ultimate controlling party
Beijing Daxing National Food Reserve Co., Ltd Controlled by the ultimate controlling party
China Meat Food Research Center Controlled by the ultimate controlling party
Beijing Pinggu grain and oil industry and Trade Co., Ltd Controlled by the ultimate controlling party
Beijing Academy of Food Science Controlled by the ultimate controlling party
Beijing jinggrain Biotechnology Industry Co., Ltd Controlled by the ultimate controlling party
Beijing zhibohui Architectural Design Institute Co., Ltd Controlled by the ultimate controlling party
Beijing Beishui Yongxing water products Sales Co., Ltd Controlled by the ultimate controlling party
Beijing ershang Group Co., Ltd Controlled by the ultimate controlling party
Beijing Er Shang Yihe Sunshine Property Management Co., Ltd Controlled by the ultimate controlling party
Beijing Beijiao farm Co., Ltd Controlled by the ultimate controlling party
Beijing Great Wall Danyu animal products Co., Ltd Controlled by the ultimate controlling party
Beijing grain point to net (Beijing) commerce Co., Ltd Controlled by the ultimate controlling party
Beijing jinggrain Dagu grain and Oil Trade Co., Ltd Controlled by the ultimate controlling party
Shanghai shounong Investment Holding Co., Ltd Controlled by the ultimate controlling party
Beijing Daxing national grain storage Co., Ltd Controlled by the ultimate controlling party
Beijing Nanyuan vegetable oil factory Co., Ltd Controlled by the ultimate controlling party
Feed branch of Beijing Sanyuan Seed Industry Technology Co., Controlled by the ultimate controlling party
125
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Name of Other Related Party Relationship with the Company
Ltd
Hebei shounong Modern Agricultural Technology Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Meet Food. Co, Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Pastoral Technology Co., Ltd. Food Center Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co., Ltd Controlled by the ultimate controlling party
Beijing Sugar Industry Tobacco and Alcohol Group Co., Ltd.
Controlled by the ultimate controlling party
Sugar Management Branch
Beijing Ershang Xijie Food Co., Ltd Controlled by the ultimate controlling party
Beijing Ershang Jingshen Seafood Co., Ltd Controlled by the ultimate controlling party
Beijing Jingmen Liangshi State-owned Asset Management Co.,
Controlled by the ultimate controlling party
Ltd
Beijing Liubiju Food Co., Ltd. Huairou Brewing Plant Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co., Ltd Controlled by the ultimate controlling party
Beijing Theron International Cultural Development Co., Ltd Controlled by the ultimate controlling party
Beijing Liangguan Grain and Oil Supply Co., Ltd Controlled by the ultimate controlling party
Beijing Capital & Agricultural Food Group Co., Ltd Controlled by the ultimate controlling party
6. Related-party Transactions
(1) Related-party transactions for purchasing and sale goods and provision and acceptance of labor services
A. Purchase of goods or acceptance of labor services
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing hundred year old Liyuan Ecological
Purchase of goods 8,536.00
Agriculture Co., Ltd
Beijing Beishui Food Industry Co., Ltd Purchase of goods 12,976.00 2,664.00
Beijing Ershang dahongmen Meat Food Co.,
Purchase of goods 260,599.00
Ltd
Beijing Ershang Jinghua Tea Co., Ltd Purchase of goods 20,128.00
Beijing Ershang Longhe Food Co., Ltd Purchase of goods 54.00
Beijing Ershang Moqizhonghong Food Co., Ltd Purchase of goods 345.60 13,034.40
Beijing Ershang Meat Food Group Co., Ltd Purchase of goods 303,970.00
Beijing Ershang Wangzhihe Food Co., Ltd Purchase of goods 11,760.00 177,803.60
Beijing Guchuan Rice Co., Ltd Purchase of goods 31,372.00 134,268.00
Beijing Guchuan Food Co., Ltd Purchase of goods 7,084,342.52 7,662,781.80
Beijing Heiliu Pastoral Technology Co., Ltd. 89,111.30
Beijing Heiliu Pastoral Technology Co., Ltd.
Purchase of goods 23,951.90
Food Center
126
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Huadu Wine Marketing Co., Ltd Purchase of goods 136,320.00
Beijing Huayu Food Co., Ltd Purchase of goods 14,850.00
Beijing jingliang E-Commerce Co., Ltd Purchase of goods 5,000.00
Beijng Jingliang Dongfang Grain and Oil
Purchase of goods 246,304.00 266,693.50
Trading Co., Ltd
Beijing Liubiju Food Co., Ltd Purchase of goods 15,320.00 26,809.40
Beijing Longmen Vinegar Co., Ltd Purchase of goods 290.00
Beijing Sanyuan Meiyuan Food Co., Ltd Purchase of goods 24,883.20
Beijing Sanyuan Food Co., Ltd Purchase of goods 196,816.00 1,459,486.60
Beijing Changyang Farm Co., Ltd Purchase of goods 1,470.00
Beijing Sugar Industry Tobacco and Alcohol
Purchase of goods 430.90
Group Co., Ltd. Sugar Management Branch
Beijing Wuhuan Shuntong Supply Chain
Purchase of goods 11,895.00
Management Co., Ltd
Beijing Yiji Yueshengzhai Halal Food Co., Ltd Purchase of goods 280,682.00
Beijing Yueshengzhai Halal Food Co., Ltd Purchase of goods 520,850.50
Shandong Fuguang Bioengineering Co., Ltd Purchase of goods 248,829.00
Total 8,483,731.42 10,810,896.80
B. Sale of goods/ provision of labor services
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Baijiayi Food Co., Ltd Sale of goods 468,970.00 131,284.00
Beijing North Jingtang Wine Sales Co., Ltd Sale of goods 21,959.00 27,364.00
Beijing Great Mill Flour Co., Ltd Sale of goods 2,075.00
Beijing Dongcheng Sugar Industry Tobacco and
Sale of goods 15,207.54
Alcohol Co., Ltd
Beijing Dongfeng International Sports Culture
1,755.00
Co., Ltd
Beijing Wangzhihe Food Co., Ltd Sale of goods 43,848,848.09 25,766,349.73
Beijing Ershang Xijie Food Co., Ltd Sale of goods 928,990.83
Beijing Ershang Fuyue Food Co., Ltd Sale of goods 7,460.00
Beijing Ershang Gongyifu Food Co., Ltd Sale of goods 17,256.88
Beijing Jingshen Seafood Co., Ltd 53,592.00
Beijing Ershang Longhe Food Co., Ltd Sale of goods 15,270.00
Beijing Ershang Yihe Sunshine Property
Sale of goods 23,880.00
Management Co., Ltd
127
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Guchuan Rice Co., Ltd Sale of goods 631,349.72 429,869.06
Beijing Guchuan Food Co., Ltd Sale of goods 5,727,639.42 1,089,789.39
Beijing Hongyuanli Military Grain and Oil
Sale of goods 417,500.00 377,490.82
Supply Co., Ltd
Beijing Jingliang Dagu Oil and Grain Trading
Sale of goods 177,900.00
Food Co., Ltd
Beijing Jingliang E-commerce Co., Ltd Sale of goods 723,045.08 1,100,466.11
Beijing Jingliang East Oil and Grain Trading
Sale of goods 4,665,430.59 1,855,631.79
Food Co., Ltd
Beijing Jiangliang Taihe Property Co., Ltd Sale of goods 4,980.00
Beijing Jiangliang Taixing Property Co., Ltd Sale of goods 2,075.00
Beijing Jiangliang Taiyu Property Co., Ltd Sale of goods 3,320.00
Beijing Jiangliang Logistics Co., Ltd Sale of goods 86,554.91 226,577.57
Beijing Jingliang Cinda Property Management
Sale of goods 11,205.00
Co., Ltd
Beijing Jingliang Xingye Asset Management
Sale of goods 7,885.00
Co., Ltd
Beijing Jingliang Canal Grain and Oil Trading
Sale of goods 119,432.07 122,729.05
Co., Ltd
Beijing Jingliang Real Estate Co., Ltd Sale of goods 174,056.74
Beijing Jingmen Liangshi State-owned Asset
Sale of goods 363,200.00
Management Co., Ltd
Beijing Junyuan Rain and Oil Purchase and
Sale of goods 624,175.00 306,990.83
Sales Co., Ltd
Beijing Lanfeng Vegetable Distribution Co., Ltd Sale of goods 3,380.00
Beijing Liubiju Food Co., Ltd Sale of goods 2,750.00
Beijing Liubiju Food Co., Ltd Huairou Brewing
Sale of goods 231,300.00
Plant
Beijing Longmen Vinegar Co., Ltd Sale of goods 6,600.00
Beijing Longsheng Zhongwang Breakfast Co.,
Sale of goods 20,633.00
Ltd
Beijing Wheat Hotel Management Co., Ltd Sale of goods 31,955.00
Beijing Southern Suburbs Agricultural
Sale of goods 64,726.61
Production Management Co., Ltd
Beijing Automotive Services Co., Ltd Sale of goods 18,600.00
Beijing Theron International Cultural
Sale of goods 275.00
Development Co., Ltd
Beijing Sanyuan Taxi Co., Ltd Sale of goods 44,400.00
Beijing Sanyuan Petroleum Co., Ltd Sale of goods 286.24
Beijing Sanyuan Food Co., Ltd Sale of goods 492,000.00 527,348.00
Beijing Sanyuan Seed Industry Technology Co., Sale of goods 27,347,850.05 14,185,704.49
128
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Related-party
Related Party Current Amount Last Term Amount
Transaction
Ltd. feed branch
Beijing Northern Suburbs Farm Co., Ltd Sale of goods 1,000.00
Beijing Dahongmen Grain Storage Co., Ltd Sale of goods 15,355.00
Beijing Desheng Hotel Co., Ltd Sale of goods 32,557.03 102,900.00
Beijing Eastern Suburbs Farm Co., Ltd Sale of goods 13,585.00
Beijing Haidian Western Suburbs Grain and Oil
Sale of goods 1,799,085.28 7,327,448.82
Supply Station Co., Ltd
Beijing Hongbaoyuan Trading Co., Ltd Sale of goods 1,872.00
Beijing Huacheng Trading Co., Ltd Sale of goods 5,319.00 2,502.00
Beijing Jingcheng Automotive Driving
Sale of goods 13,200.00
Technical School
Beijing Liangguan Grain and Oil Supply Co.,
Sale of goods 12,500.92
Ltd
Beijing Longqing Xiadu Military Food Supply
Sale of goods 95,200.00 379,651.38
Co., Ltd
Beijing Ma Liandao Grain and Oil Special-need
Sale of goods 77,000.00 1,311,822.02
Supply Station Co., Ltd
Beijing Nanyuan Vegetable Oil Plant Co., Ltd Sale of goods 7,055.00
Beijing Milk Co., Ltd Sale of goods 3,546.00 1,946.00
Beijing Food Supply Department No. 34 Supply
Sale of goods 2,497,733.27 1,399,738.14
Department Co., Ltd
Beijing Shunyi Grain and Oil Co., Ltd Sale of goods 4,920.00
Beijing Sidaokou Spitting Production Co., Ltd Sale of goods 176.00
Beijing Yanqing Farm Co., Ltd Sale of goods 6,000.00
Beijing Soldiers Grain and Oil Supply Co., Ltd Sale of goods 971,200.00 1,676,047.71
Beijing Shounong Livestock Development Co.,
Sale of goods 3,522.95
Ltd
Beijing Shounong Supply Chain Management
Sale of goods 2,469,496.69
Co., Ltd
Hebei Xiong'an Branch of Beijing Shounong
Sale of goods 41,834.86
Commercial Chain Co., Ltd
Beijing Capital & Agriculture Group Finance
Sale of goods 6,160.00
Co., Ltd
129
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Capital & Agriculture Group Co., Ltd Sale of goods 637,256.86 3,154.10
Beijing Shounong Xiangshan Convention
Sale of goods 5,328.00 13,100.00
Center Co., Ltd
Beijing Shounong Consumption
Double-creation center of Poverty & Alleviation Sale of goods 5,051,520.00
Co., Ltd
Beijing Twin Towers Green Valley Agriculture
Sale of goods 15,816.51 107,775.70
Co., Ltd
Beijing Aquatic Co., Ltd Sale of goods 6,380.00
Beijing Sugar Industry Tobacco and Alcohol
Sale of goods 4,400.00 26,280.00
Group Co., Ltd
Beijing Wuhuan Shuntong Supply Chain
Sale of goods 670,442.20 1,344,372.42
Management Co., Ltd
Beijing West City Sugar Industry Tobacco and
Sale of goods 8,370.00
Alcohol Co., Ltd
Beijing Aid Army Grain and Oil Supply Co.,
Sale of goods 960,383.95 2,196,158.88
Ltd
Hebei Luanping Huadu Food Co., Ltd Sale of goods 2,399,477.40
Hebei Shounong Modern Agricultural
Sale of goods 10,400,433.52 7,867,155.54
Technology Co., Ltd
Jinghai Petrochemical (Tianjin) Co., Ltd Sale of goods 2,112.00
Jiangliang (Tianjin) E-Commerce Co., Ltd Sale of goods 41,993.91
Jiangliang (Tianjin) Trade Development Co.,
Sale of goods 10,560.00
Ltd
Jingliang Diandao Network (Beijing) Trading
Sale of goods 7,884.00
Co., Ltd
Jingliang Century Cloud Technology Co., Ltd Sale of goods 830.00
Shanghai Shounong Investment Holdings Co.,
Sale of goods 139,402.80
Ltd
Tianjin HTC International Freight Forwarder Sale of goods 3,520.00
Total Sale of goods 112,233,671.50 73,528,174.97
Related-party transactions for purchasing and saling goods and provision and acceptance of labor services:
130
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
The price of a related-party transaction shall be equal to the price charged for a unrelated-party transaction that is
same as or similar to such related-party transaction.
(2) Related-party lease
A. If the Company is the lessor,
Lease Income Lease Income
Type of Leased Pricing basis of
Name of Lessee Recognized in the Recognized in the Prior
Asset rental income
Current Period Period
Beijing Jingliang E-commerce
Warehouse leasing Market price 766,509.38
Co., Ltd.
Beijing Jingliang E-commerce
Vehicle leasing Market price 12,729.60
Co., Ltd
Total -- -- 0.00 779,238.98
B. If the Company is the lessee,
Lease Expense Lease Expense
Type of Leased Pricing basis of
Name of Lessee Recognized in the Recognized in the
Asset rleasing fee
Current Period Prior Period
Beijing Grain Group Co.
House leasing Market price 580,000.00 280,000.00
Ltd.
Beijing Daxing National
Grain Purchasing & House leasing Market price 1,055,100.00 1,055,100.00
Storage Warehouse
Beijing Nanyuan Plant Oil
House leasing Market price 340,000.00
Factory
Beijing Dahongmen Grain
House leasing Market price 309,577.33
Storage Co., Ltd
Beijing Shounong
House leasing Market price 255,583.71
Development Co., Ltd
Beijing Jingliang Real
House leasing Market price 578,628.78
Estate Co., Ltd
Total 2,540,261.04 1,913,728.78
(3) Related-party guarantee
None.
(4) Remuneration for key management staff
Current Amount (Unit: ten Last Term Amount (Unit: ten
Item
thousand yuan) thousand yuan)
Remuneration for Key Management Staff 122.27 89.05
(5) Other related- parties
Item Related-party content Current Amoun Last Term Amount
Purchase water and
Beijing Guchuan Food. Co., Ltd 1,769,382.93 1,544,536.20
electricity
131
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
7. Related-party Receivables and Payables
(1) Receivables
Ending Balance Beginning Balance
Book Balance Provision Book Balance Provision
Item Related-party
for Bad for Bad
Debts Debts
Monetary Beijing shounong Food Group
167,000,000.00 158,585,719.53
funds Finance Co., Ltd
Total 167,000,000.00 158,585,719.53
Beijing ershang Wangzhihe Food
Receivables 4,439,008.84 8,584,555.70
Co., Ltd
Beijing shounong consumption
poverty alleviation and Innovation 127,558.00 3,178,672.00
Center Co., Ltd
Beijing shounong Supply Chain
396,373.85 1,965,569.85
Management Co., Ltd
Feed branch of Beijing Sanyuan Seed
1,222,661.87 1,544,618.10
Technology Co., Ltd
Hebei shounong Modern Agricultural
1,531,449.52 1,473,919.32
Technology Co., Ltd
Beijing Haidian Xijiao grain and oil
970,468.40 1,420,904.00
supply station Co., Ltd
Beijing Zhujun grain and oil supply
388,800.00 1,598,080.00
Co., Ltd
Beijing Junyuan grain and oil
1,009,912.00
purchasing and Marketing Co., Ltd
Beijing Jingliang Dongfang grain and
1,036,571.00 914,231.75
Oil Trading Co., Ltd
Beijing Liangguan grain and oil
1,200.00 672,100.00
supply Co., Ltd
Beijing Guchun Food Co., Ltd 788,395.00 330,872.00
Beijing Wuhuan Shuntong Supply
147,000.00
Chain Management Co., Ltd
Beijing food supply department
853,306.80 83,260.00
No.34 supply department Co., Ltd
Beijing Jingliang e-commerce Co.,
56,600.00
Ltd
Beijing Solders Grain and Oil supply
368,000.00 29,106.00
Co., Ltd
Beijing baijiayi Food Co., Ltd 23,100.00
Beijing shounong Xiangshan
5,250.00
Conference Center Co., Ltd
132
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Ending Balance Beginning Balance
Book Balance Provision Book Balance Provision
Item Related-party
for Bad for Bad
Debts Debts
Beijing jingliang Logistics Co., Ltd 2,704.00
Beijing Longsheng Hope Breakfast
2,635.00
Co., Ltd
Beijing Theron International Cultural
275.00
Development Co., Ltd
Shanghai Capital&Agricultural
3,819.12
Investment Holdings Co., Ltd
Beijing Ershang Jiexi Food Co., Ltd 1,012,600.00
Total 13,145,826.40 23,037,750.72
(2) Payables
Item Related-party Ending Balance Beginning balance
Payables Beijing Guchuan Food Co., Ltd 73,467.89 293,871.55
Beijing Jingliang Dongfang grain and Oil
33,679.50 20,674.03
Trading Co., Ltd
Beijing Sanyuan Food Co., Ltd 13,677.70
Beijing Yanxi Yueshengzhai Halal Food Co.,
1,922.50
Ltd
Beijing Changyang farm Co., Ltd 1,470.00
Beijing Sugar Industry Tobacco and Alcohol
430.90
Group Co., Ltd. Sugar Management Branch
Beijing Ershang Moqi zhonghong Food Co.,
345.60
Ltd
Beijing Daxing National Food Reserve 1,055,100.00
Total 1,163,023.89 331,615.78
Other
2,292,270.30 1,712,270.30
payables Beijing Grain Group Co., Ltd
Beijing Jingliang e-commerce Co., Ltd 118,809.60 118,809.60
Beijing Guchuan Food Co., Ltd 297,619.31
Total 2,708,699.21 1,831,079.90
8. Related-party Commitments
The Company has no related-party commitments this year.
XII. Share based payment
There are no share based payments to disclose for the Company.
XIII. Contingencies
There is a total of RMB4.1207 billion guarantee for the Company and his holding subsidiaries (of which the
133
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
total amount of the business guarantee is RMB 1.5207 billion and the total amount of the credit guarantee is
RMB2.6 billion). As of the date of this financial report, There is a total of RMB3.216 billion guarantee for the
Company and his holding subsidiaries (of which the total amount of the business guarantee is RMB 1.5207 billion
and the total amount of the credit guarantee is RMB1.6953 billion), of which the above guarantees were guarantees
between the holding subsidiaries of the Company.
XIV. Events after the Balance Sheet Date
1. Important non-adjustment matters
As of the financial report date of the Company, there is no important non-adjustment matters to disclose for
the company.
XV. Other Important Matters
1. Annuity Plan
Basic information of annuity: The company subsidiaries of Beijing Jingliang Food Co., Ltd., Beijing Guchun
Oil Co., Ltd., Beijing Eisen Lubao Oil Co., Ltd., Beijing Jingliang Oil Co., Ltd. and Beijing Guchun Bread Food
Co., Ltd. participated in the enterprise annuity plan of Beijing Capital&Agriculture Group Co., Ltd., and
formulated the implementation rules of their respective enterprises under the annuity plan. The name of the annuity
plan is Ping An Jinxiu life enterprise annuity plan; the trustee and account manager are ping an Endowment
Insurance Co., Ltd.; the trustee is China CITIC Bank Co., Ltd.
2. Information of Divisions
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing, oil and grease and so on according to its internal
organizational structure, management requirements and internal reporting system. The Company's management
regularly evaluates the operating results of these divisions to determine the allocation of resources to them and
evaluate their performance. The information reported by divisions should be disclosed according to the accounting
policies and measurement standards adopted by such divisions when they are reporting to the management. These
measurement bases should be consistent with the accounting and measurement bases for preparation of financial
statements.
(2) Reporting of the financial information of divisions
Offset Among
Item Food Processing Oil & Grease Other Total
Dvisions
Operating income 445,877,330.91 4,881,811,652.44 557,852.48 0.00 5,328,246,835.83
Operating costs 331,265,649.95 4,767,883,364.10 395,974.36 0.00 5,099,544,988.41
Operating profit 59,351,982.88 78,634,472.17 -3,605,333.66 0.00 34,381,121.39
Net profit
attributable to parent 45,422,226.10 46,152,837.75 -3,653,565.94 406,700.00 88,328,197.91
Company
Total assets 1,079,115,761.79 5,245,743,628.66 2,757,304,920.53 -2,938,396,895.35 6,143,767,415.63
Total liabilities 131,712,508.58 2,795,864,191.65 330,617,902.84 -311,959,049.11 2,946,235,553.96
XVI. Notes to Main Financial Statement Items of Parent Company
1. Accounts Receivable
(1) Disclosed according to aging
Aging Ending Balance
134
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Aging Ending Balance
Within 1 Year (including 1 year)
Among them: Within credit period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years)
2 to 3 years (including 3 years)
3 to 4 years (including 4 years) 3,000.00
4 to 5 years (including 5 years) 51,420.00
More than 5 years 72,000.00
Total 126,420.00
(2) Disclosed according to the method of provision for bad debt
Ending Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts
Portfolio provision for bad debts 126,420.00 100.00 114,636.00 90.68 11,784.00
Among them: aging portfolio 126,420.00 100.00 114,636.00 90.68 11,784.00
Total 126,420.00 -- 114,636.00 -- 11,784.00
（Continued）
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts
Portfolio provision for bad debts 126,420.00 100.00 114,636.00 90.68 11,784.00
Among them: aging portfolio 126,420.00 100.00 114,636.00 90.68 11,784.00
Total 126,420.00 -- 114,636.00 -- 11,784.00
Portfolio provision for bad debts:
Portfolio provision item: aging portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year (including 1
year)
Among them: Within the
credit period (within 3
135
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
months)
Credit period to 1 year
1 to 2 years (including 2
years)
2 to 3 years (including 3
years)
3 to 4 years (including 4
3,000.00 1,500.00 50.00 3,000.00 1,500.00 50.00
years)
4 to 5 years (including 5
51,420.00 41,136.00 80.00 51,420.00 41,136.00 80.00
years)
More than 5 years 72,000.00 72,000.00 100.00 72,000.00 72,000.00 100.00
Total 126,420.00 114,636.00 126,420.00 114,636.00
(3) Details of bad debt provision
Type Carrying amount Amount changes for the period Carrying amount
at the beginning Addition Withdrawal Write-off Other changes at the end
or reversal
Bad debt
114,636.00 114,636.00
provision
Total 114,636.00 114,636.00
(4) Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Ratio of the total balance
Bad debt
Debtors Book balance of accounts Aging Is it related
provision
receivable(%)
Hainan Pearl River 3-4 years, 4-5 years,
108,000.00 85.43 No 99,900.00
Pipe Pile Co. Ltd more than 5 years
Ceibs Agricultural
Qinhuangdao 18,420.00 14.57 4-5years No 14,736.00
Ddevelopment Co. Ltd
Total 126,420.00 100.00
2. Other Receivables
(1) Overview
A. Classification
Item Ending Balance Beginning Balance
Interest receivable
Dividends receivable
136
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Item Ending Balance Beginning Balance
Other receivables 100,008.26 103,341.26
Total 100,008.26 103,341.26
(2) Other Receivables
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
Among them: Within credit period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years) 105,271.85
2 to 3 years (including 3 years)
3 to 4 years (including 4 years)
4 to 5 years (including 5 years)
More than 5 years 50,000.00
Total 155,271.85
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Intercourse Funds of Units 3,333.00
Employee Receivables
Personal Intercourse Funds 50,000.00 50,000.00
Petty Cash 105,271.85 105,271.85
Others
Total 155,271.85 158,604.85
(3) Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Provision for bad debt Expected credit loss in loss for the whole loss for the whole Total
the next 12 months period (no credit period (with credit
impairment) impairment)
Amount on January 1, 2020 5,263.59 50,000.00 55,26
3.59
Carrying amount on January
1, 2020 during this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
137
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Provision for bad debt Expected credit loss in loss for the whole loss for the whole Total
the next 12 months period (no credit period (with credit
impairment) impairment)
——Get back to Stage 1
Provision for the period
Reverse for the period
Transfer for the period
Write off for the period
Other changes
Carrying amount at the end 55,26
5,263.59 50,000.00
of the period 3.59
(4) Details of bad debt provision
Carrying Amount changes for the period
Carrying amount at
Type amount at the Withdrawal or Other
Addition Write-off the end
beginning reversal changes
Bad debt 55,263.59 55,263.59
provision
Total 55,263.59 55,263.59
(5) Other receivables actually written off in the current period
The Company has no other receivables actually written off in the current period.
(6) Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall
Balance at End Ending balance of
Name of Organization Nature of Funds Aging ending balance of
of Period bad debt reserves
other receivables (%)
Personal More than
Song Wang 50,000.00 32.20 50,000.00
payments 5 years
Yan Yan Reserve fund 46,000.00 1-2 years 29.63 2,300.00
Pai Feng Reserve fund 26,671.80 1-2 years 17.18 1,333.59
Zhongwei Cui Reserve fund 14,007.40 1-2 years 9.02 700.37
Guangjie Huang Reserve fund 10,005.00 1-2 years 6.44 500.25
146,684.2
Total —— —— 94.47 54,834.21
0
3. Long-term Equity Investment
Item Ending Balance Beginning Balance
138
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Provisi Provisi
on for on for
Book Balance Book Value Book Balance Book Value
Impair Impair
ment ment
Investment
in 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24
subsidiaries
Total 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24 2,626,437,846.24
(1) Investment in subsidiaries
Ending
Current
Balance of
Beginning Current Current Provision
Invested Entity Ending Balance Provision
Balance Increase Decrease for
for
Impairment
Impairment
Beijing Jingliang
2,336,639,964.05 2,336,639,964.05
Food Co., Ltd.
Zhejiang little
prince Food Co., 249,017,319.14 249,017,319.14
Ltd
Jingliang rural
complex
construction and 15,280,563.05 15,280,563.05
operation (Xinyi)
Co., Ltd
Jingliang
(Caofeidian)
Agricultural 25,500,000.00 25,500,000.00
Development Co.,
Ltd.
Total 2,626,437,846.24 2,626,437,846.24
4. Operating income and operating costs
(1) Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Core business
Other businesses 295,530.28 170,581.26 376,609.17
Total 295,530.28 170,581.26 376,609.17
5. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated by
cost method
Others -28,691.03 398,338.36
Total -28,691.03 398,338.36
XVII. Supplementary Information
1. According to the requirements of the CSRC's "Explanatory Announcement on Information
Disclosure of Companies Publicly Issuing Securities No. 1 - Non-recurring Gains and Losses", the
non-recurring gains and losses during the reporting period shall be reported
(1) Details of non-recurring profit and loss in the reporting period
139
Hainan Jingliang Holdings Co., Ltd. Notes to 2021 Semi-annual Financial Reports
Details of non-recurring profit and loss Amouont Note
(1) Gains and losses on disposal of non current assets -58,685.83
(2) Government subsidies included in the current profits and losses
(closely related to the business of the enterprise, except the government
797,061.63
subsidies enjoyed according to the national unified standard quota or
quantitative)
(3) In addition to the effective hedging business related to the normal
business of the Company, the profit and loss from changes in fair value
arising from holding trading financial assets, derivative financial assets,
trading financial liabilities and derivative financial liabilities, as well as 5,299,079.77
the investment income from the disposal of trading financial assets,
derivative financial assets, trading financial liabilities, derivative
financial liabilities and other debt investments
(4) Other non-operating income and expenses other than the above 1,016,418.48
(5) Other profit and loss items that meet the definition of non recurring
37.36
profit and loss
Total non recurring profit and loss 7,053,911.41
Less: amount affected by income tax 1,763,477.85
Non recurring profit and loss after deducting the influence of income
5,290,433.56
tax
Including: non recurring profit and loss attributable to the owner of the
5,054,860.51
parent Company
Non recurring profit and loss attributable to minority shareholders 235,573.05
2. Return on equity and earnings per share
Weighted Return on EPS
Average Equity (ROAE)
Current Profit
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
3.21 0.12 0.12
common shareholders
Net profit attributable to common
shareholders after deduction of 3.03 0.11 0.11
non-recurring gains and losses
Legal Representative:LI Shaoling Chief Accounting Officer:Guan Ying Leader of the Accounting Body:Liu Quanli
Hainan Jingliang Holdings Co., Ltd.
August 23, 2021
140
