HAINAN JINGLIANG HOLDINGS CO. LTD.ANNUAL REPORT 2024
March 29 2025Hainan Jingliang Holdings Co. Ltd. Annual Report 2024
HAINAN JINGLIANG HOLDINGS CO. LTD.ANNUAL REPORT 2024
Part I Important Notes
This Report is based on the full Annual Report of Hainan Jingliang Holdings Co. Ltd. (together with its
consolidated subsidiaries the “Company” except where the context otherwise requires). In order for a full
understanding of the Company’s operating results financial position and future development plans investors
should carefully read the aforesaid full text which has been disclosed together with this Summary on the media
designated by the China Securities Regulatory Commission (the “CSRC”).This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the Chinese and English versions the Chinese version shall prevail.All the Company’s Directors have attended the Board meeting for the review of this Report and its summary.Independent auditor’s modified opinion:
□ Applicable□ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders during the Reporting Period
□ Applicable □Not applicable
Bonus issue from capital reserves
Applicable□ Not applicable
The Board has approved a final dividend plan as follows: Based on the 726950251 Shares on 31 December
2024 a cash dividend for RMB0.18 (tax inclusive) per 10 Shares is to distributed to the shareholders，with no
bonus issue from either profit or capital serves.Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
Applicable□ Not applicable
Part II Key Corporate Information
1. Company Profile
Stock name JLKG JL-B Stock code 000505、200505
Stock exchange for stock listing Shenzhen Stock ExchangeHainan Jingliang Holdings Co. Ltd. Annual Report 2024
Contact information Board Secretary Securities Representative
Name Guan Ying Gao Deqiu
8/F Tower B Capital Agricultural Science 8/F Tower B Capital Agricultural Science
and Innovation Mansion Building No.1 and Innovation Mansion Building No.1
Office address
Community No.8 Xinning Street Daxing Community No.8 Xinning Street Daxing
District Beijing District Beijing
Fax 010-81219987 010-81219987
Tel. 010-81219989 010-81219989
E-mail address guanying@bjjlkg.cn gaodeqiu@bjjlkg.cn
2. Principal Activities or Products in the Reporting Period
（1）Company’s main business
The Company is principally engaged in oils and oilseeds processing and trading as well as food processing.With regard to oils processing and trading the Company refines bottles markets imports and exports raw oils
upon initial pressing. As for oilseeds the Company presses refines bottles markets imports and exports
oilseeds such as sesame soybean corn germ sunflower seeds and peanuts. Food processing mainly refers to
R&D production and sales of snack food and bakery products.
（2）Company’s main products
The oils and oilseeds processing business is primarily under the brands of “Gu Chuan” “Lv Bao” “Gu Bi”
“Huo Niao” etc. with the main products being soybean oil corn oil sunflower seed oil peanut oil rapeseed oil
flaxseed oil olive oil sesame oil and paste etc. The food processing business is primarily under the brands of
“Xiao Wangzi” “MS Dong” “Jianqiang de Tudouzai” and “Gu Chuan” etc. with the main products being chips
pastries and bread.
（3）Emerging Trend in the Industry
The major industry category of the Company is manufacturing- processing industry of agricultural and slide-products according to the Results of Industry Classification of Listed Companies（code: C13)， specificallythe industry belongs to is vegetable oil processing，while gross profit ration is relatively high for the foodprocessing business. From the perspective of the vegetable oil processing industry the minority oils such as
sunflower seed oil tea oil corn oil and rice bran oil show rapid growth with the accelerated industrial
integration and the increasing accumulation of differentiated competition. From the perspective of the food
processing industry there is great potential for industrial integration with the diversified consumption demand
and the constantly enriched product categories while there is only a handful of major brands in the industry.Hainan Jingliang Holdings Co. Ltd. Annual Report 2024
（4）The Position of the Company in the Industry
The Company has varieties of greater influence brands. Among them “Gu Chuan” has been awarded the most
influential brand in Beijing several times ranked 307th overall among the 2023 Top 500 Chinese Most valuable
Brands World Brand Lab which brand values totaled 310.62 billion Yuan. “Gu Bi” sesame oil has been
awarded National Sesame Famous Oil Brand silver award for Beijing International Catering and Food Expo
gold award for International Brand-name Product etc with certain competition in the industry. “Gu Chuan”
“Lv Bao” and “Gu Bi” are time-honored brand in Beijing “Xiao Wangzi” trademark and Zhejiang Xiaowangzi
products have been identified as famous trademark and famous products in Zhejiang province for many years
with strong competitive in potato chips bulk and individual packaging segment top-ranked one in puffed food
industry. “Gu Chuan” bread is one of the major supplies in north China region of Kentucky Fried Chicken
maintaining a certain industry position in Northern bakery market.
3. Major Accounting Data and Financial Indicators
（1） Key Accounting Data and Financial Indicators of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes□ No
Unit: RMB
Change of 31 December
31 December 2024 31 December 2023 2024 over 31 December 31 December 2022
2023(%)
Total assets 6700959305.96 6496782984.90 3.14% 6105144167.96
Equity attributable to the listed
3143289575.693167503541.44-0.76%3061661435.05
company’s shareholders
2024-over-2023
202420232022
change (%)
Operating revenue 11434843516.27 11901009211.63 -3.92% 12857874301.72
Net profit attributable to the
26130520.86102348088.85-74.47%141411141.28
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders 11095858.98 82678972.04 -86.58% 124297168.33
before exceptional items
Net cash generated from/used in
-109470721.95109486954.74-199.99%-533230947.03
operating activities
Basic earnings per share
0.040.14-71.43%0.19
(RMB/share)
Diluted earnings per share 0.04 0.14 -71.43% 0.19Hainan Jingliang Holdings Co. Ltd. Annual Report 2024
(RMB/share)
Weighted average return on
0.83%3.29%-2.46%4.73%
equity (%)
（2） Key Financial Data by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 3636199231.97 1919707762.17 3937459806.98 1941476715.15
Net profit attributable to the listed company’s
22774154.561284363.513795910.74-1723907.95
shareholders
Net profit attributable to the listed company’s
19657077.15-6366865.783343541.98-5537894.37
shareholders before exceptional items
Net cash generated from/used in operating
10638984.21-231704406.306817466.28104777233.86
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs
materially from what have been disclosed in the Company’s quarterly or interim reports.□ Yes□ No
4. Share Capital and Shareholder Information at the Period End
（1）Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: Share
Number of
Number of Number of preferred
ordinary
preferred shareholders with
Number of ordinary shareholders at
shareholders resumed voting rights
shareholders at the 52981 the month-end 52377 0 0
with resumed at the month-end prior
period-end prior to the
voting rights at to the disclosure of
disclosure of
the period-end this Report
this Report
Top 10 shareholders（not including through refinancing）
Shares in pledge marked or
Nature of Shareholding Total shares held Restricted
Name of shareholder frozen
shareholder percentage at the period-end shares held
Status Status
BEIJING GRAIN State-owned
39.68% 288439561 0 Not applicable 0
GROUP CO. LTD. legal person
BEIJING
STATE-OWNED
State-owned
CAPITAL OPERATION 6.67% 48510460 0 Not applicable 0
legal person
AND MANAGEMENT
COMPANY LIMITEDHainan Jingliang Holdings Co. Ltd. Annual Report 2024
Domestic Not applicable
WANG YUECHENG 5.43% 39459887 39459887 0
natural person
Domestic Not applicable
ZHAO JIN 0.65% 4729021 0 0
natural person
Domestic Not applicable
ZHANG MIN 0.59% 4300100 0 0
natural person
Domestic Not applicable
CHEN TIANHUA 0.29% 2101100 0 0
natural person
Domestic Not applicable
TONG ZHENZHU 0.27% 1975700 0 0
natural person
Domestic Not applicable
ZHANG XIAOXIA 0.27% 1949250 0 0
natural person
Domestic Not applicable
KONG JIEHUA 0.19% 1373400 0 0
natural person
ICBC CREDIT SUISSE Not applicable
AGRICULTURAL
Other 0.18% 1340076 0 0
INDUSTRY STOCK
FUND
* Beijing State-Owned Capital Operation and Management Company Ltd. owns an
indirect 100% share of Beijing Grain Group Co. Ltd. and Beijing Grain Group Co.Ltd. is the controlling shareholder of the Company (a 39.68% holding). * During the
Related or acting-in-concert parties among reporting period Wang Yuecheng resigned from his position as deputy general
the shareholders above manager of the company but continues to work at the company's subsidiary Zhejiang
Xiaowangzi with all his shares in the company locked. Apart from the
aforementioned shareholder relationships the company is unaware whether there are
any affiliations or concerted actions among the top ten shareholders.Shareholder Zhao Jin holds 4729021 shares in the Company through his account of
collateral securities for margin trading in China Merchants Securities Co. Ltd.Shareholder Zhang Min holds 3282100 shares in the Company through the account
of collateral securities for margin trading in Southwest Securities Co. Ltd.Shareholders involved in securities margin Shareholder Chen Tianhua holds 2093500 shares in the Company through the
trading (if any) account of collateral securities for margin trading in Founder Securities Co. Ltd.Shareholder Tong Zhenzhu holds 1975700 shares in the Company through the
account of collateral securities for margin trading in China Merchants Securities Co.Ltd. Shareholder Li Zhongwen 1209900 holds shares in the Company through the
account of collateral securities for margin trading in Debon Securities Co. Ltd.Shareholders holding more than 5% the top 10 shareholders and the top 10 unrestricted public shareholders
participated in the securities lending and borrowing business.□ Applicable□ Not applicable
The top 10 shareholders and the top 10 unrestricted public shareholders experienced changes from the previous
period due to securities lending and borrowing business.□ Applicable□ Not applicableHainan Jingliang Holdings Co. Ltd. Annual Report 2024
（2） Total Preferred Shareholders and Shareholdings of Top 10
□ Applicable□ Not applicable
No preferred shareholders in the Reporting Period.
（3） Ownership and Control Relations between the Actual Controller and the Company disclosed as box chart
5. Outstanding Bonds at the Date when the Report was Authorized for Issue
□ Applicable□ Not applicable
（1） Basic information of BondAbbreviation Bond Issue Maturity Bond Balance（in tenName of Bond Interestof Bonds code Date Date thousands Yuan）
Hainan Jingliang Holdings
Co. Ltd 2023 public 21-22 22 Aug
23Jingliang01 148434 30000 2.88%
issuance of corporate bonds for Aug 2023 2026
qualified investors（1st issue）
Interest payment of corporate bond in the
No
reporting period
（2） Updated follow-up rating and changes of rating on corporate bonds
Corporate credit rating is AA+ in the reporting period.
（3）Major data and financial indicators at the ending of the reporting period for the last two years
Unit: ten thousands Yuan
Item 2024 2023 Increase/decrease year on year
Asset-liability ratio 47.61% 44.97% 2.64%
Net profit after deducting non-recurring gains and losses -1072.27 8378.37 -112.80%
EBITDA’s total debt ratio 8.91% 18.20% -9.29%
Interest cover ratio 0.87 3.26 -73.31%Hainan Jingliang Holdings Co. Ltd. Annual Report 2024
Part III Significant Events
The main reason for the year-on-year decline in company performance during the reporting period is:
The edible oil segment experienced the decline in product prices due to oversupply in the market and increased
processing costs. Intense competition in the branded packaged oil market led to a drop in sales resulting in the
year-on-year reduction in profits for the edible oil business.The food segment saw the decrease in product sales and gross profit margin due to market competition and the
downturn in traditional distribution channels impacting the segment's profit decline.Additionally to accurately reflect the company's financial status and asset value in accordance with the
Enterprise Accounting Standards Shenzhen Stock Exchange Listing Rules and the company's accounting
policies the company has provided for impairment losses on relevant assets that may incur losses and for
estimated liabilities for potential losses in unresolved litigations.北京市海淀区车公庄西路甲 19号国际传播大厦
5层22、23、24、25号房
天 圆 全 会 计 师 事 务 所 Room 22 23 24 25 5th Floor InternationalCommunication Building No. 19 Chegongzhuang West
Road Haidian District Beijing China
TIANYUANQUAN CERTIFIED PUBLIC ACCOUNTANTS LLP 电话（Tel）: (8610)83914188
传真（Fax）: (8610)83915190
邮政编码(Postal Code): 100048
Auditor’s Report
TIANYUANQUAN Certified Public Accountants LLP Audit Report No. [2025] 000397
To: Hainan Jingliang Holdings Co. Ltd.I. Audit Opinion
We have audited the financial statements of Hainan Jingliang
Holdings Co. Ltd. (hereinafter referred to as Jingliang Holdings)
including the consolidated and parent company balance sheets as of
December 31 2024 the consolidated and parent company income
statements cash flow statements changes in equity statements and the
related financial statement notes for the year 2024.In our opinion the attached financial statements have been prepared
in accordance with the Accounting Standards for Enterprises in all
material respects and fairly present the financial position of Jingliang
Holdings as of December 31 2024 as well as the operating results and
cash flows for the year 2024.II. Basis for Forming the Audit Opinion
We conducted our audit in accordance with the auditing standards for
TYQCPA Page 1 of 11TIANYUANQUAN Certified Public Accountants LLP Audit ReportChinese Certified Public Accountants. The section titled “Responsibilityof Certified Public Accountants for Auditing the Financial Statements”
further elaborates our responsibilities under these standards. In
accordance with the Code of Ethics for Professional Accountants in China
we remained independent of Jingliang Holdings and fulfilled our other
professional responsibilities. We believe that the audit evidence we
obtained is sufficient and appropriate to provide a basis for our audit
opinion.III. Key Audit Matters
Key audit matters are those that in our professional judgment are
the most significant in the audit of the financial statements for the period.These matters are addressed in the context of the audit of the financial
statements as a whole and in forming our audit opinion we do not
express an opinion on these matters individually.i. Revenue Recognition
1. Description of the Matter
In 2024 as disclosed in the financial statements note 5 item 43 the
operating revenue of Jingliang Holdings in the consolidated income
statement amounts to RMB 11434843516.27 mainly derived from the
processing sales and trading of oils and fats as well as food processing
TYQCPA Page 2 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
and sales. The occurrence and cutoff of revenue significantly impact
Jingliang Holdings’ operating results making the recognition of revenue
a key audit matter.
2. Audit Response
The key audit procedures performed were as follows:
（1）We reviewed and tested the entire sales and collections cycle of
Jingliang Holdings and the associated internal controls evaluating the
design and operational effectiveness of those controls.
（2）We examined the revenue recognition accounting policies and
methods employed by Jingliang Holdings and verified whether these
were in compliance with the enterprise accounting standards.
（3）We performed analytical procedures on the operating revenue
analyzing the reasonableness of gross margin changes and compared
them to similar indicators from the previous period to identify and
investigate significant fluctuations.（ 4）We performed sampling and examined contracts invoices
delivery notes and other original documents related to revenue
recognition.（ 5）We conducted cutoff testing by reviewing documents for
TYQCPA Page 3 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
revenue recognized before and after the balance sheet date to assess
whether sales were recorded in the appropriate accounting periods.
（6）We performed confirmation procedures for accounts receivable
and revenue and conducted alternative tests for any samples without
confirmations.ii. Impairment of Goodwill
1. Description of the Matter
As of December 31 2024 the goodwill reported on the consolidated
balance sheet of Jingliang Holdings is RMB 191394422.51 arising from
the acquisition of Zhejiang Xiao Wangzi Food Co. Ltd. (hereinafter
referred to as "Zhejiang Xiao Wangzi") in 2015. The management tested
the impairment of this goodwill based on the recoverable amount of the
asset group which is determined using the present value of expected
future cash flows under the going concern assumption. Management
determined that no impairment of goodwill was necessary. Key
assumptions in the impairment testing include expected revenue growth
rate pre-tax operating margin and discount rate which involve
significant accounting estimates and judgments. As there may be biases in
the selection of assumptions and estimates we have determined that the
impairment of goodwill is a key audit matter.TYQCPA Page 4 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
2. Audit Response
The key audit procedures performed were as follows:
（1）We reviewed and evaluated the internal controls related to the
goodwill impairment test including testing the key assumptions and
parameters used as well as the related internal controls.（ 2）We assessed the appropriateness of the impairment testing
method used by management analyzing key parameters like expected
revenue growth rate pre-tax operating margin and discount rate by
reviewing historical data interviewing management and considering
market conditions.（ 3 ） We tested the accuracy of the goodwill impairment test
calculations.
（4）We evaluated the accuracy of the forecasted realized data by
comparing it with actual performance and assessed whether there was any
bias in the impairment testing process by management.（ 5 ） For the goodwill impairment test report prepared by the
third-party expert hired by the audited entity in addition to the
above-mentioned audit procedures (1) to (4) the audit project team also
evaluates the competence professional quality and objectivity of the
TYQCPA Page 5 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
third-party expert and records the evaluation results in the audit working
paper including: obtaining the professional qualification of the
third-party expert such as the business license of the appraisal agency
with securities and futures qualification the qualification certificate of
asset appraiser etc.IV. Other Information
The management of Jingliang Holdings (hereinafter referred to as
"management") is responsible for the other information. The other
information includes information included in the 2024 annual report of
Jingliang Holdings but does not include the financial statements and our
audit report.We do not express any form of assurance on the other information in
connection with our audit of the financial statements.Our responsibility is to read the other information considering
whether it is materially inconsistent with the financial statements or our
knowledge obtained during the audit.Based on the work we have performed if we determine that there is a
material misstatement in the other information we are required to report
that fact. In this regard we have no matters to report.TYQCPA Page 6 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
V. Management and Governance’s Responsibility for the Financial
Statements
The management of Jingliang Holdings is responsible for the
preparation of the financial statements in accordance with the applicable
accounting standards ensuring that they fairly present the company’s
financial position and performance and maintaining effective internal
controls to ensure that the financial statements are free from material
misstatement due to fraud or error.When preparing the financial statements management is responsible
for evaluating the company’s ability to continue as a going concern
disclosing any relevant matters (if applicable) and using the going
concern assumption unless management intends to liquidate the company
cease operations or has no other realistic alternative.The governance level is responsible for overseeing the company’s
financial reporting process.VI. Responsibility of Certified Public Accountants for Auditing the
Financial Statements
Our objective is to obtain reasonable assurance as to whether the
financial statements as a whole are free of material misstatement due to
fraud or error and to issue an audit report that includes an audit opinion.TYQCPA Page 7 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
Reasonable assurance is a high level of assurance but it does not
guarantee that an audit performed in accordance with auditing standards
will always detect a material misstatement when it exists. Misstatements
may be the result of fraud or error and are generally considered material
if they are reasonably expected to be significant either individually or in
aggregate to affect the economic decisions made by users of the financial
statements on the basis of the financial statements.In performing our audit work in accordance with auditing standards
we exercise professional judgment and maintain professional skepticism.At the same time we also perform the following tasks:
(1) Identify and assess the risk of material misstatement of financial
statements due to fraud or error design and implement audit procedures
to address these risks and obtain sufficient and appropriate audit
evidence as the basis for issuing an audit opinion. Because fraud may
involve collusion forgery wilful omission misrepresentation or
overriding of internal controls the risk of failing to detect material
misstatement due to fraud is higher than the risk of failing to detect
material misstatement due to error.
(2) Understand the internal controls related to the audit in order to
design appropriate audit procedures but the purpose is not to express an
opinion on the effectiveness of the internal controls.TYQCPA Page 8 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
(3) evaluate the appropriateness of management's selection of
accounting policies and the reasonableness of accounting estimates and
related disclosures.
(4) conclude on the appropriateness of management's use of the
going concern assumption. At the same time based on the audit evidence
obtained a conclusion is reached as to whether there are material
uncertainties about the matters or circumstances that may give rise to
material doubts about the ability of Jingliang Holdings to continue as a
going concern. If we conclude that there is a material uncertainty the
auditing standards require us to bring the relevant disclosures in the
financial statements to the attention of users of the statements in our audit
report; If the disclosure is insufficient we should issue a non-unqualified
opinion. Our conclusions are based on information available as of the
date of the auditor's report. However future events or circumstances may
cause Jingliang Holdings to be unable to continue as a going concern.
（5）Evaluate the overall presentation structure and content of the
financial statements and evaluate whether the financial statements fairly
reflect relevant transactions and events.
（6）Obtain sufficient and appropriate audit evidence on the financial
information of the entities or business activities in Jingliang Holdings to
express an audit opinion on the financial statements. We are responsible
TYQCPA Page 9 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
for directing supervising and executing Group audits and take full
responsibility for audit opinions.We communicate with governance on matters such as the planned
audit scope timing and significant audit findings including
communicating the internal control deficiencies identified by us in the
audit that are of concern.(There is no text below.)
TYQCPA Page 10 of 11TIANYUANQUAN Certified Public Accountants LLP Audit Report
(This Page contains no text and is a signature page.)
TIANYUANQUAN CERTIFIED Chinese Certified Public
PUBLICACCOUNTANTS LLP Accountant:
(Engagement partner)
Chinese Certified Public
Accountant:
Beijing P.R.China March 27 2025
TYQCPA Page 11 of 11Consolidated Balance Sheet
2024-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note 31 December 2024 31 December 2023
Current Assets:
Monetary capital V、1 1417025694.30 1543385751.86
Transactional financial assets
Derivative financial assets V、2 70947839.67 31684620.00
Notes receivable
Accounts receivable V、3 91439895.13 115780372.55
Receivables financing V、4 2502308.90
Prepayment V、5 198722011.47 87352234.48
Other receivables V、6 455148011.66 303099589.59
Including: Interest receivable
Dividends receivable
Inventory V、7 2357805420.92 2041860143.11
Contract assets
Held-for-sale assets
Non-current assets due within one year V、8 10694166.66 22188083.34
Other current assets V、9 161383945.34 312336642.43
Total current assets 4763166985.15 4460189746.26
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment V、10 267505468.02 254922645.41
Other equity instruments investment V、11 20000000.00
Other non-current financial assets
Investment property V、12 18277387.65 20045503.77
Fixed assets V、13 891221864.74 939548012.91
Construction in process V、14 50058378.98 59094902.29
Productive biological assets
Oil-and-gas assets
Right-of-use assets V、15 76970493.53 99232303.78
Intangible assets V、16 395680430.82 412676845.93
Development expenditure
Goodwill V、17 191394422.51 191394422.51
Long-term deferred expenses V、18 17403238.18 17655736.82
Deferred income tax assets V、19 23598603.98 8798915.22
Other non-current assets V、20 5682032.40 13223950.00
Total non-current assets 1937792320.81 2036593238.64
Total assets 6700959305.96 6496782984.90
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Balance Sheet
2024-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Ending Balance Beginning Balance
Current liabilities:
Short-term borrowings V、22 1311609177.78 1163479691.67
Transactional financial liabilities
Derivative financial liabilities V、23 30979464.00 15805393.88
Notes payable
Accounts payable V、24 127879265.40 82474823.84
Account collected in advance V、25 1122982.13 1075801.34
Contract liabilities V、26 522267254.98 411033219.08
Employee payroll payable V、27 27703136.66 32702558.07
Taxes payable V、28 19999374.52 11577392.47
Other payables V、29 58529914.31 79618198.78
Including: Interest payable 20000000.00 21082795.47
Dividends payable 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year V、30 543665629.94 175940949.28
Other current liabilities V、31 97380074.75 60439400.68
Total current liabilities 2741136274.47 2034147429.09
Non-current liabilities:
Long-term borrowings V、32 400000000.00
Bonds payable V、33 299250000.00 298800000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities V、34 50700060.93 73241742.57
Long-term payables
Long-term payable to employees V、35 5627134.00 5677134.00
Estimated liabilities V、36 5146800.00
Deferred income V、37 56731497.62 62503256.67
Deferred income tax liabilities 31415012.33 47082123.53
Other non-current liabilities
Total non-current liabilities 448870504.88 887304256.77
Total liabilities 3190006779.35 2921451685.86
Owners' equity (or Shareholders' equity):
Paid-in capital V、38 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves V、39 1682684026.76 1681808108.07
Less: treasury stock
Other comprehensive income V、40 1763043.44 1369980.92
Special reserves
Surplus reserves V、41 137418617.07 129819690.00
Undistributed profit V、42 594473637.42 627555511.45
Owner's Equity (or shareholder's equity) Attributable to 3143289575.69 3167503541.44
Shareholders of the Parent Company
Minority equity 367662950.92 407827757.60
Total owners' equity (or shareholders' equity) 3510952526.61 3575331299.04
Total liabilities and owners' equity (or shareholders' equity) 6700959305.96 6496782984.90
Legal Representative： Chief Financial Officer: Head of Accounting Department:Balance Sheet of Parent Company
2024-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Notes 31 December 2024 31 December 2023
Current Assets:
Monetary capital 343402502.17 23743255.81
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment
Other receivables XVII、1 948000000.00 950000000.00
Including: Interest receivable
Dividends receivable 18000000.00
Inventory
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 342287.50 976539.93
Total current assets 1291744789.67 974719795.74
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment XVII、2 2340799283.19 2625657283.19
Other equity instruments investment 20000000.00
Other non-current financial assets
Investment property 4858318.61 5198514.17
Fixed assets 5533490.67 5955832.27
Construction in process
Productive biological assets
Oil-and-gas assets
Right-of-use assets
Intangible assets
Development expenditure
Goodwill
Long-term deferred expenses 393093.55 495639.67
Deferred income tax assets
Other non-current assets 5035082.40 2833950.00
Total non-current assets 2356619268.42 2660141219.30
Total assets 3648364058.09 3634861015.04
Legal Representative： Chief Financial Officer: Head of Accounting Department:Balance Sheet of Parent Company
2024-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Ending Balance Beginning Balance
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 15383.17 15383.17
Account collected in advance 38896.41
Contract liabilities
Employee payroll payable 151075.75 157166.68
Taxes payable 89545.33 1016682.06
Other payables 21267504.53 32458140.29
Including: Interest payable 20000000.00 21082795.47
Dividends payable 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year 2880000.00 2880000.00
Other current liabilities
Total current liabilities 24403508.78 36566268.61
Non-current liabilities:
Long-term borrowings
Bonds payable 299250000.00 298800000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term payable to employees
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 299250000.00 298800000.00
Total liabilities 323653508.78 335366268.61
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 2386924900.84 2386084900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 124783244.48 117184317.41
Undistributed profit 86052152.99 69275277.18
Total owners' equity (or shareholders' equity) 3324710549.31 3299494746.43
Total liabilities and owners' equity (or shareholders' equity) 3648364058.09 3634861015.04
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Income Statement
Year 2024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the current Amount for the prior
period period
I. Total operating income V、43 11434843516.27 11901009211.63
Including: Operating income 11434843516.27 11901009211.63
II. Total operating cost V、43 11355705803.09 11986827828.36
Including: Operating cost 10914648084.71 11550803067.51
Tax and surcharges V、44 30945038.63 22932382.10
Selling expenses V、45 140518419.42 134700286.27
Administration expenses V、46 199231019.64 213974205.09
Research and development expenses V、47 24982468.62 20897961.71
Financial expenses V、48 45380772.07 43519925.68
Including: interest expenses 60492426.83 62101542.12
Interest income 17628504.01 18201145.42
Add: Other income V、49 19031421.09 13332777.37
Income from investment (Losses shall be filled in with “-”) V、50 12546903.92 15930270.08
Including: income from investment on joint venture and cooperative enterprise 12546903.92 11368728.43
income from derecognition of financial assets measured at amortized cost
Income from net exposure hedging(Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”) V、51 -116999895.87 228219839.09
Credit impairment loss(Losses shall be filled in with “-”) V、52 6735814.75 -5127786.33
Income from assets impairment(Losses shall be filled in with “-”) V、53 -13819833.62 -29004360.66
Income from asset disposal (Losses shall be filled in with “-”) V、54 63830.72 50283.79
III. Operating profit (Losses shall be filled in with “-”) -13304045.83 137582406.61
Add: non-operating income V、55 11249072.43 6767332.70
Less: non-operating expenditure V、56 5595403.68 4017245.94
IV. Total profit (Total losses shall be filled in with “-”) -7650377.08 140332493.37
Less: income tax expense V、57 -11962291.26 36879647.08
V. Net profit (Net loss shall be filled in with “-”) 4311914.18 103452846.29
(I) Classified by operations continuity
1. Net profit from continuing operations (Net loss shall be filled in with “-”) 4311914.18 103452846.29
2. Net profit from discontinuing operations (Net loss shall be filled in with “-”)
(II) Classified by ownership attribution
1、Net profit attributable to shareholders of the parent company (Net loss shall be 26130520.86 102348088.85
filled in with “-”)
2、Minority interest income (Net loss shall be filled in with “-”) -21818606.68 1104757.44
VI. Net of tax from other comprehensive income 393062.52 364260.42
（一）Net of tax from other comprehensive income attributable to shareholders of
the parent company 393062.52 364260.42
1.Other comprehensive income that cannot be reclassified into the profit and loss
（1）Remeasure changes in defined benefit plans
（2）Other comprehensive income that cannot be transferred to gains and losses
under the equity method
（3）Changes in fair value of other equity instrument investments
（4）Changes in the fair value of the company's own credit risk
（5）Others
2.Other comprehensive income that will be reclassified into the profit and loss 393062.52 364260.42
（1）Other comprehensive income that can be transferred to gains and losses
under the equity method
（2）Changes in fair value of other debt investments
（3）Reclassification of financial assets included in other comprehensive income
（4）Provision for credit impairment of other debt investments
（5）Cash flow hedge reserve
（6）Balance arising from the translation of foreign currency 393062.52 364260.42
（7）Others
（二） Net of tax from other comprehensive income attributable to minority
shareholder
VII. Total comprehensive income 4704976.70 103817106.71
(I) Total comprehensive income attributable to shareholders of the parent company 26523583.38 102712349.27
(II)Total comprehensive income attributable to minority shareholder -21818606.68 1104757.44
VIII. Earnings per share:
(I) Basic earnings per share 0.04 0.14
(II) Diluted earnings per share 0.04 0.14
Legal Representative： Chief Financial Officer: Head of Accounting Department:Income Statement of Parent Company
Year 2024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the Amount for the current period prior period
I. Total operating income XVII、3 2448223.41 12240221.13
Less：Operating cost XVII、3 340195.56 341162.52
Tax and surcharges 419211.65 438568.29
Selling expenses
Administration expenses 7077381.80 11424000.59
Research and development expenses
Financial expenses -6510160.02 -15865978.76
Including: interest expenses 9090000.00 3030000.00
Interest income 15714019.68 18899353.45
Add: Other income 619000.43 2308.28
Income from investment (Losses shall be filled in with “-”) XVII、4 63700859.50 300509614.85
Including: income from investment on joint venture and cooperative enterprise
Income from derecognition of financial assets measured at amortized cost
Income from net exposure hedging(Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”)
Credit impairment loss(Losses shall be filled in with “-”)
Income from assets impairment(Losses shall be filled in with “-”)
Income from asset disposal (Losses shall be filled in with “-”)
III. Operating profit (Losses shall be filled in with “-”) 65441454.35 316414391.62
Add: non-operating income 10611984.69 61300.00
Less: non-operating expenditure 64168.34 27183.53
IV. Total profit (Total losses shall be filled in with “-”) 75989270.70 316448508.09
Less: income tax expense
V. Net profit (Net loss shall be filled in with “-”) 75989270.70 316448508.09
1. Net profit from continuing operations (Net loss shall be filled in with “-”) 75989270.70 316448508.09
2. Net profit from discontinuing operations (Net loss shall be filled in with “-”)
V. Net of tax from other comprehensive income
1.Other comprehensive income that cannot be reclassified into the profit and loss
（1）Remeasure changes in defined benefit plans
（2）Other comprehensive income that cannot be transferred to gains and losses under
the equity method
（3）Changes in fair value of other equity instrument investments
（4）Changes in the fair value of the company's own credit risk
（5）Others
2 .Other comprehensive income that will be reclassified into the profit and loss
（1）Other comprehensive income that can be transferred to gains and losses under the
equity method
（2）Changes in fair value of other debt investments
（3）Reclassification of financial assets included in other comprehensive income
（4）Provision for credit impairment of other debt investments
（5）Cash flow hedge reserve
（6）Balance arising from the translation of foreign currency
（7）Others
VII. Total comprehensive income 75989270.70 316448508.09
VIII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Cash Flow Statement
Year 2024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the Amount for the prior
current period period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 12599938049.04 12936790538.49
Tax Refund Receipts 13810514.51 7998752.68
Other Cash Receipts Concerning Operating Activities V、59 7455484587.56 2317880715.49
Subtotal of Cash Inflows from Operating Activities 20069233151.11 15262670006.66
Cash Paid for Purchase of Goods and Accepting Services 12272299857.43 12244383908.50
Cash Paid to and for Employees 341197234.02 358936454.83
Taxes and Fees Paid 101781987.32 186585834.21
Other Cash Paid Concerning Operating Activities V、59 7463424794.29 2363276854.38
Subtotal of Cash Outflows from Operating Activities 20178703873.06 15153183051.92
Net Cash Flows from Operating Activities -109470721.95 109486954.74
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 82188083.34 784491129.71
Cash Receipts from Returns on Investments 156138.88 4709513.37
Net Cash from Disposal of Fixed Assets Intangible Assets and Other Long-term 658029.92 63176.00
Assets
Net Cash Received by Disposal of Subsidiaries and Other Business Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 83002252.14 789263819.08
Cash Paid for Purchase and Construction of Fixed Assets Intangible Assets and 47507672.28 105158076.17
Other Long-term Assets
Cash Paid for Investments 200000000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities 1747611.95 9772907.10
Subtotal of Cash Outflows from Investment Activities 49255284.23 314930983.27
Net Cash Flows from Investment Activities 33746967.91 474332835.81
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment 3500000.00
Including: Cash Received by Subsidiaries Absorbing the Investment from 3500000.00
Minority Shareholders
Cash Receipts from Borrowings 3897716986.18 3359242053.12
Other Cash Receipts Concerning Financing Activities 840000.00 3090000.00
Subtotal of Cash Inflows from Financing Activities 3898556986.18 3365832053.12
Cash Paid for Repayment of Debts 3808716986.18 2795921695.12
Cash Paid for Distribution of Dividends Profits or Repayment of Interests 128096325.56 134747045.10
Including: Dividends and Profits Paid by Subsidiaries to Minority Shareholders 18346200.00 73212000.00
Other Cash Paid Concerning Financing Activities 15224400.00 29652976.62
Subtotal of Cash Outflows from Financing Activities 3952037711.74 2960321716.84
Net Cash Flows from Financing Activities -53480725.56 405510336.28
IV. Exchange Rate Fluctuation Consequences on Cash and Cash -15914853.58 -130156.95
Equivalents
V. Net Increase in Cash and Cash Equivalents -145119333.18 989199969.88
Add: Opening Balance of Cash and Cash Equivalents 1540639079.95 551439110.07
VI. Closing Balance of Cash and Cash Equivalents 1395519746.77 1540639079.95
Legal Representative： Chief Financial Officer: Head of Accounting Department:Cash Flow Statement of Parent Company
Year 2024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the current Amount for the prior
period period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 1745187.40 12124704.99
Tax Refund Receipts
Other Cash Receipts Concerning Operating Activities 5058125.87 875745.92
Subtotal of Cash Inflows from Operating Activities 6803313.27 13000450.91
Cash Paid for Purchase of Goods and Accepting Services 932.98
Cash Paid to and for Employees 2305621.57 4197912.96
Taxes and Fees Paid 1067505.83 1608964.87
Other Cash Paid Concerning Operating Activities 6930232.03 9750891.74
Subtotal of Cash Outflows from Operating Activities 10304292.41 15557769.57
Net Cash Flows from Operating Activities -3500979.14 -2557318.66
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 372687877.46
Cash Receipts from Returns on Investments 32455704.26 470462392.63
Net Cash from Disposal of Fixed Assets Intangible Assets and Other 3444.00 3920.00
Long-term Assets
Net Cash Received by Disposal of Subsidiaries and Other Business Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 405147025.72 470466312.63
Cash Paid for Purchase and Construction of Fixed Assets Intangible 2573332.40 4258632.37
Assets and Other Long-term Assets
Cash Paid for Investments 20000000.00 757500000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 22573332.40 761758632.37
Net Cash Flows from Investment Activities 382573693.32 -291292319.74
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Including: Cash Received by Subsidiaries Absorbing the Investment from 298650000.00
MCaisnho rRiteyc eSihpatsre fhroolmde Brsorrowings 840000.00 3090000.00
Other Cash Receipts Concerning Financing Activities 840000.00 301740000.00
Subtotal of Cash Inflows from Financing Activities
Cash Paid for Distribution of Dividends Profits or Repayment of Interests 60253467.82
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities 60253467.82
Net Cash Flows from Financing Activities -59413467.82 301740000.00
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
VEq. uNievta Ilennctrsease in Cash and Cash Equivalents 319659246.36 7890361.60
Add: Opening Balance of Cash and Cash Equivalents 23743255.81 15852894.21
VI. Closing Balance of Cash and Cash Equivalents 343402502.17 23743255.81
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Statement of Changes in Equity
Year 2024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Items Total Other equity instruments Less:
Paid-in capital Capital reserve treasury Other comprehensive Special income reserve Surplus reserve Undistributed profit Subtotal
Minority equity shareholders'
Preferre Perpetua Others stock equities
d stock l bond
I. Year-end balance of last year 726950251.00 1681808108.07 1369980.92 129819690.00 627555511.45 3167503541.44 407827757.60 3575331299.04
Add: changes in accounting policies
Correction of prior period errors
Merger of enterprises under the same control
Other
II. Balance at beginning of current year 726950251.00 1681808108.07 1369980.92 129819690.00 627555511.45 3167503541.44 407827757.60 3575331299.04
III. Increases and decreases of current year 875918.69 393062.52 7598927.07 -33081874.03 -24213965.75 -40164806.68 -64378772.43
(Decrease shall be filled in with “-”)
(I) Total comprehensive income 393062.52 26130520.86 26523583.38 -21818606.68 4704976.70
(II) Investment of shareholders and capital reduction 875918.69 875918.69 875918.69
1. Common equity invested by shareholders
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the shareholder's
equity
4. Others 875918.69 875918.69 875918.69
(III) Distribution of profits 7598927.07 -59212394.89 -51613467.82 -18346200.00 -69959667.82
1. Withdrawal of surplus reserves 7598927.07 -7598927.07
2. Distribution to shareholders -51613467.82 -51613467.82 -18346200.00 -69959667.82
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
stock)
2. Surplus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 1682684026.76 1763043.44 137418617.07 594473637.42 3143289575.69 367662950.92 3510952526.61
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Statement of Changes in Equity
Year 2024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Items Other equity instruments Less: Other
Total
Paid-in capital Capital reserve treasury comprehensive Special reserve Surplus reserve Undistributed profit Subtotal
Minority equity shareholders'
Preferre Perpetua Other stock income equities
d stock l bond s
I. Year-end balance of last year 726950251.00 1678678350.95 1005720.50 122122436.98 532904675.62 3061661435.05 401048412.23 3462709847.28
Add: changes in accounting policies
Correction of prior period errors
Merger of enterprises under the same control
Other
II. Balance at beginning of current year 726950251.00 1678678350.95 1005720.50 122122436.98 532904675.62 3061661435.05 401048412.23 3462709847.28
III. Increases and decreases of current year 3129757.12 364260.42 7697253.02 94650835.83 105842106.39 6779345.37 112621451.76
(Decrease shall be filled in with “-”)
(I) Total comprehensive income 364260.42 102348088.85 102712349.27 1104757.44 103817106.71
(II) Investment of shareholders and capital reduction 3129757.12 3129757.12 78886587.93 82016345.05
1. Common equity invested by shareholders 117698300.00 117698300.00
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the shareholder's
equity
4. Others 3129757.12 3129757.12 -38811712.07 -35681954.95
(III) Distribution of profits 7697253.02 -7697253.02 -73212000.00 -73212000.00
1. Withdrawal of surplus reserves 7697253.02 -7697253.02
2. Distribution to shareholders -73212000.00 -73212000.00
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
stock)
2. Surplus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 1681808108.07 1369980.92 129819690.00 627555511.45 3167503541.44 407827757.60 3575331299.04
Legal Representative： Chief Financial Officer: Head of Accounting Department:Statement of Changes in Equity of Parent Company
2024/12/31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Current Amount
Other
Items Other equity instruments Less:
Paid-in capital Capital reserve treasury compreh Special ensive reserve Surplus reserve Undistributed profit SubtotalPreferre Perpetua Other stock
d stock l bond s income
I. Year-end balance of last year 726950251.00 2386084900.84 117184317.41 69275277.18 3299494746.43
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current year 726950251.00 2386084900.84 117184317.41 69275277.18 3299494746.43
III. Increases and decreases of current year 840000.00 7598927.07 16776875.81 25215802.88
(Decrease shall be filled in with “-”)
(I) Total comprehensive income 75989270.70 75989270.70
(II) Investment of shareholders and capital reduction 840000.00 840000.00
1. Common equity invested by shareholders
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the shareholder's
equity
4. Others 840000.00 840000.00
(III) Distribution of profits 7598927.07 -59212394.89 -51613467.82
1. Withdrawal of surplus reserves 7598927.07 -7598927.07
2. Distribution to shareholders -51613467.82 -51613467.82
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
s2t.o Scukr)plus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 2386924900.84 124783244.48 86052152.99 3324710549.31
Legal Representative： Chief Financial Officer: Head of Accounting Department:Statement of Changes in Equity of Parent Company
2024/12/31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Amount of Last Period
Other
Items Other equity instruments Less:
Paid-in capital Capital reserve treasury compreh Special
Preferre Perpetua Othe stock ensive reserve
Surplus reserve Undistributed profit Subtotal
d stock l bond rs income
I. Year-end balance of last year 726950251.00 2382994900.84 109487064.39 -239475977.89 2979956238.34
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current year 726950251.00 2382994900.84 109487064.39 -239475977.89 2979956238.34
III. Increases and decreases of current year 3090000.00 7697253.02 308751255.07 319538508.09
(Decrease shall be filled in with “-”)
(I) Total comprehensive income 316448508.09 316448508.09
(II) Investment of shareholders and capital reduction 3090000.00 3090000.00
1. Common equity invested by shareholders
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the shareholder's
equity
4. Others 3090000.00 3090000.00
(III) Distribution of profits 7697253.02 -7697253.02
1. Withdrawal of surplus reserves 7697253.02 -7697253.02
2. Distribution to shareholders
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
2st.o Scukr)plus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 2386084900.84 117184317.41 69275277.18 3299494746.43
Legal Representative： Chief Financial Officer: Head of Accounting Department:Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Hainan Jingliang Holdings Co. Ltd.2024 Financial
Statement Notes
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 81880000 shares in total upon re-registration of which
60793600 shares were converted from the net assets of the original company and
21086400 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 36393600 shares accounting for 44.45%.Approved by ZGB (1992) No. 83 Document of the People's Bank of China in
December 1992 the additional 21086400 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 139196000 shares (according
to distribution of 10 delivery of 5 and transfer of 2) with the controlling
shareholder Guangzhou Pearl River Enterprises Group holding 48969120 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
278392000 shares after the increase. The controlling shareholder Guangzhou
Pearl River Enterprises Group holds 97938240 shares accounting for 35.18%.In 1995 the issuance of 50000000 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
Page 1 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 377650800 shares. The
holding parent company Guangzhou Pearl River Enterprises Group held
112628976 shares accounting for 29.82% of the total.
In 1999 Guangzhou Pearl River Enterprises Group transferred all 112628976
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 112628976 shares of the Company accounting for 29.82% of the total
shares of the 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 49094604 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 holders. 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 426745404 shares and the original controlling
shareholder Beijing Wanfa Real Estate Development Co. Ltd. held 107993698
shares accounting for 25.31%. Shareholders of non-tradable shares repaid
3289780 shares in consideration of the split share structure in 2007. Shareholders
of non-tradable shares repaid 1196000 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 112479478 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 112479478 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 123561963 shares of the
Page 2 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 210079552 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
1699.5436 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
48965408 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 685790364.00 and the share capital was RMB 685790364.00. 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 41159887 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.Page 3 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
As of December 31 2024 the company has issued 726950251.00 shares and the
company's share capital is 726950251.00 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: WangChunli.
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 activities mainly includes: food beverages oilseeds and
by 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 oil and oilseeds and processing and sales of foodstuffs.
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 Capital Agribusiness Food Group Co. Ltd.
4. Business Cycle
From 22 March 1988 to 20 September 2025
5. The approval institution and the approval date of the financial
statements
The financial statements have been approved by the Board of Directors of the
Company in its resolution dated March 27 2025.Page 4 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 oil and oilseeds and processing and sales of foodstuffs。. According to thecharacteristics 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 thedescriptions in Note Ⅲ 27 “Revenue".
1. Statement of Compliance with Enterprise Accounting
Standards
The financial statements prepared by the company comply with the requirements
of the Enterprise Accounting Standards and fairly and completely reflect the
company's and consolidated financial position as of December 31 2024 as well as
the company's and consolidated operating results changes in shareholders' equity
and cash flows for 2024.Additionally these financial statements are prepared with reference to the
disclosure and reporting requirements outlined in the China Securities Regulatory
Commission’s "Regulations on the Preparation of Information Disclosure Reports
for Publicly Issued Securities No. 15 - General Provisions on Financial Reports"
(revised in 2023).Page 5 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
2. Accounting Period
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.
3. Business Cycle
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.
4. 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.
5. Materiality Standards Determination Method and Selection Basis
The company follows the materiality principle when preparing and disclosing
financial reports. If disclosure matters involve the judgment of materiality
standards. the methods of determining materiality standards and selection basis are
disclosed as follows:
Methods of determining
Disclosure matters involve the judgment of materiality standards materiality standards and selection
basis
Impairment test made on
individual accounts receivables
Impairment test made on individual accounts receivable with significant accounting over 10% as total
amounts. provision for various types of bad
debts receivablese and amounts
exceeding 5 million yuan
Individual item recovered or
reversed accounting over 10% as
Significant bad debt reserve for accounts receivable recovered or
total amounts for various types of
reversed
receivables and exceeding 5
million yuan
Page 6 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Methods of determining
Disclosure matters involve the judgment of materiality standards materiality standards and selection
basis
Individual write-off amount
accounting for over 10% as total
Significant receivables actually written off amounts of various types of bad
debts reserve for receivables and
amounts exceeding 5 million yuan
Individual contractual liabilities
with aging over one year
accounting over 10% of total
Significant contractual liabilities with aging over one year
amount of contractual liabilities
and amounts exceeding 10 million
yuan
Projects with investments
Significant project under construction
exceeding 5 million yuan
Non-wholly owned subsidiaries
with individual entity revenue and
Significant non-wholly owned subsidiaries net profit accounting 10% for
items related to the Company's
consolidated statements
Associated enterprise and joint-
venture with net profit share
recognized in the current period
Significant associated enterprise and joint-venture.accounting 5% for items related to
the Company’s consolidated
statements
6. 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
Page 7 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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
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
Page 8 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 7 (2)
of Note Ⅲ) it is determined whether the multiple transactions belong to the "package
deal". In the case of a "package deal" the accounting treatment shall be performed with
reference to the description in the preceding paragraphs of this section and Note Ⅲ 15
"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
Page 9 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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).
7. Criteria for the Judgment of Control and Methods for the
Preparation of Consolidated Financial Statements
(1) Criteria for the Judgment of Control
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
Page 10 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
subsidiaries disposed of in the current period the opening 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
Page 11 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 Note Ⅲ 15-
Long-term Equity Investment or Note Ⅲ 11-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: * These transactions were
entered into simultaneously or taking into account each other's influence; * Only when
these transactions are taken together can a complete business result be achieved; * The
occurrence of one transaction depends on the occurrence of at least one other
transaction; * 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 15 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
Page 12 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.
8. 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 operation
and joint venture in accordance with the rights and obligations it enjoys in the joint
venture arrangement. A joint operation is a joint arrangement whereby the parties that
have joint control of the arrangement have rights to the assets and obligations for the
liabilities relating to the arrangement. A joint venture is a type of joint arrangement
whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint venture.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 15
"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 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.Page 13 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
9. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand deposits that can be
readily withdrawn on demand. Cash equivalents are investments held by the Company
with a short term (usually maturing within three months from the date of purchase)
high liquidity readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
10. 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: * 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; * 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); * 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.Page 14 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.Page 15 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.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.
11. Financial Instruments
Financial instruments are the contracts that form the financial assets of one entity
and at the same time form the financial liabilities or equity instruments of other entities.
(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
Page 16 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.* Financial assets measured at amortized cost
The Group measures financial assets at fair value through other comprehensive
income if both of the following conditions are met: the financial asset is held within a
business model with the objective of both holding to collect contractual cash flows and
selling; the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding. Interest income of such financial assets is recognized based on effective
interest method. 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.* Financial assets measured at fair value with changes included in other
comprehensive income
The Group measures financial assets at fair value through other comprehensive
income if both of the following conditions are met: the financial asset is held within a
business model with the objective of both holding to collect contractual cash flows and
selling; the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding. Interest income of such financial assets is recognised based on effective
interest method. The Company measures these financial assets at fair value and their
changes are included in other comprehensive income but impairment loss or gain
Page 17 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.* 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.* Financial liabilities at fair value through profit or loss
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.Page 18 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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.* 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:
* The termination of the contractual right to receive cash flow from the financial asset.* 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. * 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
Page 19 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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
Page 20 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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
Page 21 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.
12. 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
Page 22 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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
Page 23 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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
Page 24 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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
* Notes 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 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
Commercial acceptance bill classification it should be the same as the
"receivable" portfolio classification.As for the notes receivables’ classified as portfolio the Company referred to the
historical credit loss experience combined with current situation and forecast for the
future economic condition calculating the expected credit loss. Through risk exposure
at default and lifetime expected credit loss
* Accounts receivable and other receivables
Page 25 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 Credit portfolio
As for the receivables classified as portfolio the Company referred to the historical
credit loss experience combined with current situation and forecast for the future
economic condition calculating the expected credit loss. Through cross reference table
between the aging of receivables and lifetime expected credit loss. The aging of
receivables is calculated on the date of recognition.The portfolio of other receivable is recognized as follows:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
Portfolio 2 Deposit/margin portfolio
The portfolio of reserve fund ledger formed by the
Portfolio 3
Company's staff loan
As for the other receivables classified as portfolio the Company referred to the
historical credit loss experience combined with current situation and forecast for the
future economic condition calculating the expected credit loss. Through risk exposure
at default and lifetime expected credit loss in the coming 12 months. For the other
receivables classified as aging is calculated on the date of recognition.Page 26 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
13. Inventory
(1) Classification of inventory
Inventories mainly include raw materials work in progress finished goods in transit
materials inventory goods reserve tanker storage commissioned processing and
manufacturing consignment etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs
processing costs and other expenditures. The actual cost of inventories upon delivery is
calculated using the weighted average method.
(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
Page 27 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.
14. Non-current assets or disposal groups held for sale
(1) Recognition standards and accounting method treatment for Held-for-sale assets
and disposal group
A non-current asset or disposal group is classified as held for sale when its carrying
amount will be recovered principally through a sale transaction rather than through
continuous use. The following conditions need to be simultaneously met to be classified
as held for sale: 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.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 DisposalPortfolio 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
Page 28 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.
(2) Standards for Determining and Methods for the Presentation of Discontinued
Operations.A component of an entity that either has been disposed of or is classified as held for
sale and:
a) represents a separate major line of business or geographical area of operations
b) is part of a single co-ordinated plan to dispose of a separate major line of business
or geographical area of operations or
c) is a subsidiary acquired exclusively with a view to resale.Net profit from continuing operation and Net profit from discontinued Operation are
added under the Item Net Profit of the Profit and Loss Statement a single amount in
the statement of comprehensive income comprising the total of:i) the post-tax profit or
Page 29 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
loss of continuing operation and discontinued operations. Profit and Loss from the
discontinued operation shall listed as Discontinued Operation Profit and Loss which
comprises of the entire reporting period not only recognized as the reporting period
after the termination of the operation.
15. 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. Fordetails of its accounting policies please refer to Note Ⅲ 11 “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-
Page 30 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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.Page 31 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.* 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.* Long-term equity investment accounted for by Equity Method
Page 32 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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
Page 33 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.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.
(3) 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.
(4) 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. itshall be treated in accordance with the relevant accounting policies described in “Noteson the preparation of consolidated financial statements” in Note Ⅲ.7 .Page 34 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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
Page 35 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 recognized 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.
16. 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 appreciation and buildings that have been
rented. Investment property is initially measured at cost. The expenses related to
Page 36 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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. 23 “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.
17. Fixed Assets
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.Page 37 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Fixed assets are initially measured at cost and taking into account the impact of
projected abandonment costs.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 depreciation period estimated net
residual value rate and annual depreciation rate of each category of fixed assets are as
follows:
Depreciation Net Annual
Depreciation
Category period salvage depreciation rate
Method
(Year) rate(%) (%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
Machinery straight-line
5-284、53.39—19.20
equipment depreciation
straight-line
Transport facility 5-10 4、5 9.50—19.20
depreciation
Electronic straight-line
3-104、59.50—32.00
equipment 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.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. 22 “Long-Term Asset Impairment”.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
Page 38 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.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 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.
18. 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. 22 “Long-Term Asset Impairment”.
19. 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
Page 39 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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.
20. Right-of-use assets
Right-of-use assets of the Group mainly consist of buildings power generation and
transmission equipment plant machinery and equipment motor vehicles furniture and
fixtures and others.
(1) Initial accountings
At the commencement date of the lease the Group recognizes the right to use the leased
assets during the lease term as a right-of-use asset including: the initial measurement
amount of the lease liability; the amount of lease payment paid on or before the
beginning of the lease term the amount of lease incentive already enjoyed shall be
Page 40 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
deducted if there is a lease incentive; initial direct expenses incurred by the lessee; the
costs that the lessee is expected to incur in order to dismantle and remove the leased
asset restore the leased asset to the site or restore the leased asset to the state agreed
upon in the lease terms. The right-of-use assets are depreciated on a straight-line basis
subsequently by the Group. If the Group is reasonably certain that the ownership of the
underlying asset will be transferred to the Group at the end of the lease term the Group
depreciates the asset from the commencement date to the end of the useful life of the
asset. Otherwise the Group depreciates the assets from the commencement date to the
earlier of the end of the useful life of the asset or the end of the lease term.The company recognizes and measures the above costs under Item 4 in accordance with
the Accounting Standards for Enterprises No.13–Contingencies.
(2) Subsequent accounting
The Company accursed the right-of-use assets according to the Accounting Standards
for Enterprises NO.4-Fixed Assets. Commencement from the date of lease the
Company shall accrue the right-of-use assets. Generally the right-of-use assets are
accrued at the start of the lease date the expenses of depreciation accrued shall include
into relevant asset cost or profit and loss in the current period based on the purpose of
right-of-use assets. While recognizing the method of right-of-use assets the Company
shall make decisions on the economic benefit of forecast consumption mode related to
the right-of-use assets accrues the deprecation by straight-line method. When the
Company recognize the depreciation period of right-of-use assets maturity of lease
period can be determined in a reasonable and well-grounded manner on the acquisition
of the right-of-use assets accursed the deprecation in its remaining service life. If the
right-of-use lease assets could not be determined reasonably while the service life is
mature depreciation is applied with the short period of time between the lease term and
the remaining useful life of the lease asset.If there is impaired right-of-use assets the Company shall accrue the subsequent
deprecation based on the book value of right-of-use assets after deducting the loss of
impairment.The Company determined not to recognized the right-of-use assets and lease liabilities
on the short-term lease (lease term not exceeding 12 months) and recognizes the
relevant lease payment during the respective lease term in the current profit and loss or
cost of assets relevant in straight line method. Impairment test method
Page 41 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
and the provision method for diminution in value of right-of-use assets are detailed in
Note III 23 “Long-Term Asset Impairment”
21. 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. However
the intangible assets acquired through business combination not involving
enterprises under common control should be measured at fair value separately as
intangible assets when their fair values can be reliably measured.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.
(1) Basis for determining the service life the estimate thereof and amortization
methods and the procedures for reviewing their service life
When recognizing the service life of the intangible assets being sourced from any
contractual right or other statutory rights its service life shall not exceed the life of
contractual rights or other statutory rights. As for the intangible assets not specified
either under the contract or legal regulations the company combined various
situations such as employing relevant professional persons to undergo the
justification or make comparison with the situation of the same industry and the
historical experience of the Company determining the future economic benefit
service life which is brought by the intangible assets. If the efforts are made but
could not recognized reasonably that the intangible asset shall bring the economic
benefit service life for the Company then shall treat this as uncertain service life of
the intangible asset.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
Page 42 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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:
Amortization period
Item Amortization method
(year)
Trademark 20 Straight-line method
Software 3-10 Straight-line method
Land-use rights 50 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.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.Page 43 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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. 22 “Long-Term Asset Impairment”.
22. 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 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.Page 44 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.
23. 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. If the long-term
amortized expense item cannot benefit the company in subsequent accounting periods
the amortized value of the item that has not yet been amortized will be transferred to
the current profit or loss.
24. 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
Page 45 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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.
25. Estimated liabilities
When the obligations related to the contingencies meet the following conditions they
are recognized as contingent liabilities: (1) The obligation is the present obligation
assumed by the Company; (2) The performance of this obligation is likely to result in
Page 46 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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).
26. 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.* Equity-settled Share Payment
Page 47 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 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.* 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.Page 48 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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:
* 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 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.Page 49 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
* 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 settlement enterprise are not the same then the payment should
be recognized and measured in their individual financial statements they should be
accounted for using the above principles
27. Revenue
The term “revenue” refers to the gross inflow of economic benefits arising in the course
of the ordinary activities of an enterprise which may increase of the shareholder's
equities and is irrelevant to the capital of the shareholder. 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. A contract with a customer generally explicitly states
the goods or services that an entity promises to transfer to a customer. The transaction
price is the amount of consideration to which an entity expects to be entitled in
exchange for transferring promised goods or services to a customer excluding amounts
collected on behalf of third parties.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
Page 50 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
likely to be recovered; Other indications that the customer has taken control of the
commodity.For the performance obligations performed in a certain period of time such as the
services provided the company adopts the 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 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.Where the contract contains two or more performance obligations an entity shall on
the commencement date of the contract allocate the transaction price to each
performance obligation identified in the contract on a relative standalone selling price
basis. Except when an entity has observable evidence that the entire discount relates to
only one or more but not all performance obligations in a contract the entity shall
allocate a discount proportionately to all performance obligations in the contract. Stand-
alone selling price refers to the price of the goods or services sold by the Company to
the customer separately. If the stand-alone selling price cannot be directly observed the
Company shall take into account all relevant information reasonably available and
estimate the stand-alone selling price by observable input values to the maximum extent
As for the sales with quality guarantee except for it guarantees the product on sale of
service meets the designated standards to the customer providing a single separate
service this quality guaranteed composes the single performance obligation. Otherwise
the Company shall treat the accounting method on quality guarantee obligations in
accordance with the Enterprise Accounting Standards No13- Contingencies.Page 51 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
If the contract comprised of significant financing elements the Company shall
recognizes the amount of payables in cash to determine the trading price based on the
assumption that the customer obtains the products or service control rights. The
difference between the price stipulated in the contract or agreement and its contract
consideration shall be amortized within the period of the contract or agreement. through
the real interest method. As a practical expedient an entity need not adjust the promised
amount of consideration for theeffects of a significant financing component if the entity
expects at contract inception that the period between when the entity transfers a
promised good or service to the customer and when the customer pays for that good or
service will be one year or less.The Company justifies the trading identity is the major responsible person or on behalf
based on whether it has the control right to the product or the service before transferring
the products or service to the customer. As the major responsible person of the
Company shall recognizes the revenue based on the total consideration of the amount
received or receivable. Otherwise as the agent of the Company shall recognizes the
revenue based on the expected right of obtaining the commission or service charge
which is calculated as the total consideration on the amount received or receivable
deducting the net amount payable to other related parties or recognizes on the amount
of commission or proportion etc.The Company received the amount of products sales or service in advance shall
recognizes it as liabilities in the first then accounted as revenue upon fulfilling relevant
performance obligations.The Company has transferred the products or service to its clients and has rights to
obtain the considerations (and this rights is obliged to other elements of passing time)
listed as the contractual assets. Contractual assets are accrued the devaluation provisionbased on the expected credit loss. The Company has the unconditional rights （onlydepends on the passing of time） to its customer for obtaining the considerations listed
as item receivables. The consideration of amount received or receivable which is
obtained to its customer shall transfer product or service obligation to them listed as
contractual liabilities.The detailed accounting policies related to the major activities of obtaining the revenue
of the Company
(1) Sales processing
Page 52 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
The production and processing sales comprise mainly of sales of oils an oilseeds food
etc. The Company recognized the sales revenue when the amounts received or
identification obtained upon sales which has been submitted and signed by the
customer.
(2) Trading Revenue
If the Company obtained the product control rights from the third party and transferred
to the client assumed the significant obligations under the transaction of transferring
the products to the client. i.e. inventory risk and has rights to determine the price of the
products oneself. The identity of the Company under the transaction is the major
responsible person recognizing the trading revenue based on the expected rights for
obtaining the total consideration stipulated on the contract. The Company made
commitment to arrange others to provide specific products but has no control rights on
this before providing the specific products to clients. The identity of the Company under
the transaction is agent recognizing the revenue on the commission obtained or service
amount for arranging others to provide the specific products to clients.
28. Contract costs
Contract cost comprises contract performance cost and contract acquisition 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.Page 53 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.The assets related to the contract cost mentioned above shall be amortized at the time
of performance of the 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.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.Page 54 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 "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;
Page 55 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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 tax assets/deferred tax liabilities
(1) Current Income Tax
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.Page 56 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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
Page 57 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
tax assets in the future. When it is possible to obtain sufficient taxable 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. Leasing
On the commencement date of a contract an enterprise shall assess whether the
contract is a lease or includes a lease. Where a party to a contract transfers the right to
control the use of one or more identified assets for a certain period of time in return for
consideration the contract is a lease or includes a lease. To determine whether the right
to control the use of identified assets within a certain period of time under a contract
has been transferred an enterprise shall assess whether a client in the contract has the
right to use almost all of the economic benefits arising from the use of the identified
Page 58 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
assets during the period of use and has the right to dominate the use of identified assets
during this period of use.Where a contract concurrently contains multiple separate leases the lessee and
lessor shall split the contract and conduct accounting treatment respectively for all
separate leases.Where the following conditions are concurrently met use of the rights of identified
assets shall constitute a separate lease in a contract:
* A lessee may earn profits from separate use of the assets or joint use with other
resources readily available.* There is no high dependence or high correlation between the assets and other
assets in the contract.Where a contract concurrently includes both leased and non-leased parts the
Company as the lessee and lessor shall split the leased and non-leased parts to conduct
accounting treatment.
(1) The Company records operating lease business as a lessee.
The main types of leased assets of the company include houses and buildings
transportation equipment and land use rights etc.
1) Initial measurement
At the beginning of the lease period the Company recognizes its right to use the
leased assets during the lease period as a right-of-use asset recognition of the present
value of outstanding lease payments as lease liabilities except short-term and low-value
asset leases. In calculating the present value of the lease payment the Company uses
the interest rate included in the lease as the discount rate. Where the interest rate
included in the lease cannot be determined the Company uses the incremental
borrowing rate as the discount rate
The lease period is the irrevocable period during which the Company is entitled to
use the lease assets. Where the Company has the option to renew the lease that is the
right to choose to renew the lease of the asset and reasonably determines that the option
will be exercised The lease period also includes the period covered by the lease renewal
option. The Company has the option to terminate the lease that is the right to terminate
the lease of the asset Provided that it is reasonably determined that the option will not
Page 59 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
be exercised the lease period includes the period covered by the option to terminate the
lease. Where a material event or change within the control of the Company occurs and
affects whether the Company reasonably determines that the appropriate option will be
exercised... The Company will determine to exercise the option of renewing the lease
re-evaluation of the option to purchase or not to exercise the option to terminate the leas
on its reasonability.
2) Subsequent measurement
The Company adopts the straight-line method to depreciate the right to use assets.Where it is reasonable to determine that the leased assets are to be owned upon expiry
of the lease term the Company shall calculate the leased assets within the remaining
useful life of the leased assets. If the ownership of the leased assets upon expiry of the
lease term is unable to be reasonably determined the Company shall accrue
depreciation within a short period of time between the lease term and the remaining
useful life of the leased assets. The interest expenses of the lease liabilities for each
period of the lease term at the discount rate is recognized by the Company and shall be
included into the current profit or loss. Variable lease payments that are not included in
the leasehold liability measure are included in the current profit and loss at the time of
actual incurance.After commencement of the lease period when there is a change in the amount of
substantial fixed payments and the amount due to which the guarantee balance is
expected changes in indices or ratios used to determine rental payments where the
assessment of purchase options the renewal option or termination option or actual
exercise of the option changes the Company re-measures the lease liabilities according
to the present value of the change in lease payments and adjust the book value of the
right to use assets accordingly. If the book value of the right to use assets has been
reduced to zero but the lease liability still needs to be further reduced the Company
will record the remaining amount in the current profit or loss.
3) Lease change
Lease modification refers to the modification of the lease scope lease
consideration and lease term beyond the terms of the original contract including
increasing or terminating the right to use one or more leased assets extending or
shortening the lease term specified in the contract etc.Page 60 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
If the lease changes and the following conditions are met the Company will
account for the lease change as a separate lease:
* The lease change expands the scope of the lease by adding the right to use one
or more leased assets;
* The increased consideration is equivalent to the separate price for the extended
portion of the lease adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of
the lease change the Company redetermines the lease term and discounts the changed
lease payment at the revised discount rate to remeasure the lease liability. In calculating
the present value of the lease payment after the change the Company uses the inherent
interest rate of the lease during the remaining lease term as the discount rate; If the
inherent interest rate of the lease for the remaining lease term cannot be determined the
Company's incremental borrowing rate on the effective date of the lease change shall
be used as the discount rate.The Company accounts for the impact of the above adjustment of lease liabilities
in the following cases:
* If the lease change results in the reduction of the lease scope or the shortening
of the lease term the Company shall reduce the book value of the right of use assets to
reflect the partial or complete termination of the lease. The Company recognises gains
or losses related to partial or complete termination of the lease in profit or loss for the
current period.* For other lease changes the company shall adjust the book value of the right
to use assets accordingly
4) Short-term leases and leases of low value assets
The Company will consider a lease for a period not exceeding 12 months and
excluding a purchase option as a short-term lease on the commencement date of the
lease term; A lease with a lower value when a single leased asset is a new asset is
identified as a low-value asset lease. Where the Company subleases or intends to
sublease leased assets the original lease is not deemed to be a low-value asset lease.The relevant asset cost or current profit or loss is recognised on a straight-line basis
during each period of the lease term and the contingent rent is recognised in current
profit or loss when actually incurred
Page 61 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
(2) The company records operating lease business as a lessor
The lease commencement date essentially transfers almost all the risks and
rewards associated with the ownership of the leased asset to finance leases and all other
leases are operating leases
1) Operating lease
The rental income of operating lease shall be recognized as current profit and loss
according to the straight-line method during each period of the lease period. The larger
initial direct expenses are capitalized when occurring and the profits and losses of the
current period shall be recorded in stages on the same basis as the recognized rental
income during the whole lease period; the smaller initial direct expenses shall be
recorded in the profits and losses of the current period when occurring. Contingent
rentals shall be included in current profits and losses when actually occurring.
2) Finance lease
At the beginning date of the lease term the Company recognizes the financial lease
payment receivable for the financial lease and terminates the recognition of the financial
lease assets. When the Company makes the initial measurement of the financial lease
receivable the net lease investment is taken as the recorded value of the financial lease
receivable. The net lease investment is the sum of the unsecured balance and the present
value of the lease proceeds not yet received at the commencement date of the lease term
discounted at the intrinsic interest rate of the lease. The Company calculates and
recognizes interest income for each period of the lease term based on the inherent
interest rate of the lease.The Company presents financial lease receivables as long-term receivables and
financial lease receivables received within one year (including one year) from the
balance sheet date are presented as non-current assets maturing within one year.
32. . Other important accounting policies and accounting estimates
(1) Hedge accounting
In order to avoid some risks the Company hedges some financial instruments as
hedging instruments. For the hedges meeting the specified conditions the Company
adopts the hedge accounting method for treatment. The hedging of the Company is fair
value hedging.Page 62 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
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.
(2)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 meets the conditions for the application of hedge accounting the application
of hedge accounting shall be terminated.
33. Changes in Significant Accounting Policies and Accounting
Estimates
The Company did not have any significant changes in accounting policies and
accounting estimates during the reporting period.IV. Taxes
1. Major types of taxes and tax rates
Taxes Tax basis Tax rate
The difference between the 1%、3%、5%、6%、9%、
VAT income from the sale of goods
taxable services and taxable 10%、13%
Page 63 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Taxes Tax basis Tax rate
services calculated in
accordance with the provisions
of the tax law is taxable value-
added tax after deducting the
input tax allowed to be
deducted in the current period
It is calculated and levied
Urban Maintenance
according to the actual VAT 7%、5%
Construction Tax
paid
It is calculated and levied
Educational fee
according to the actual VAT 3%
surcharge
paid
It is calculated and levied
Local Education
according to the actual VAT 2%
Add-on
paid
Corporate income According to the taxable
25%、20%、17%、15%
tax income
70% of the original value of the
property is the tax basis and
30% is deducted according to
Property tax 12%、1.2%
the original value of the
property; Rental income is used
as the tax basis
If there are taxpayers with different enterprise income tax rates the
disclosure shall be explained:
Name of the taxpayer Income tax rate
Hangzhou Lin'an Chunmanyuan
Agricultural Development Co. Ltd
20%
Jingliang (Beijing) Food Marketing
Management Co. Ltd
Jingliang (Singapore) International Trade
17%
Co. Ltd
Beijing Guchuan Bread Food Co. Ltd 15%
2. Tax incentives
Beijing Guchuan Bread & Food Co. Ltd. a third-level subsidiary of the Company
is a high-tech enterprise which enjoys the preferential tax policy of paying enterprise
income tax at a rate of 15% in accordance with the relevant provisions of the Law of
the People's Republic of China on the Administration of Tax Collection and Collection
Page 64 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
and the Detailed Rules for the Implementation of the Law of the People's Republic of
China on the Administration of Tax Collection and the certificate number of the high-
tech enterprise is GR202411003833 which is valid until October 29 2027. According
to Announcement No. 43 of 2023 of the Ministry of Finance and the State
Administration of Taxation on the VAT Plus Deduction Policy for Advanced
Manufacturing Enterprises from January 1 2023 to December 31 2027 advanced
manufacturing enterprises are allowed to deduct the VAT payable by adding 5% of the
deductible input tax in the current period.The company's third-level subsidiary Jingliang (Singapore) International Trade Co.Ltd. is taxed according to the territorial principle. Based on Singapore's tax exemption
policy the company is eligible for the following tax exemptions:
1. The first SGD 10000 of taxable income is exempted by SGD 7500. For the
portion of taxable income between SGD 10001 and SGD 200000 a 95%
exemption is granted. The portion exceeding SGD 200000 is not eligible for
exemption. The company will pay income tax at a 17% rate based on the taxable
income after applying the exemptions.
2. For the 2024 Year of Assessment (YA) all taxable companies (regardless of
whether they are tax residents) will receive a rebate equivalent to 50% of the
corporate tax payable with a total rebate amount of SGD 40000.Zhejiang Little Prince Food Co. Ltd. a third-level subsidiary of the Company
Hangzhou Lin'an Little Angel Food Co. Ltd. Linqing Little Prince Food Co. Ltd. and
Liaoning Little Prince Food Co. Ltd. a third-level subsidiary of the Company in
accordance with the relevant provisions of the Notice of the Ministry of Finance and
the State Administration of Taxation on Issues Concerning the Preferential Policies of
Enterprise Income Tax Related to the Employment of Disabled Persons (CS (2009) No.
70). An additional deduction of 100% of the wages paid to the disabled employee can
be made in the calculation of taxable income.Hangzhou Lin'an Little Angel Food Co. Ltd. a fourth-level subsidiary of the
Company is a welfare enterprise and has been enjoying the preferential policy of VAT
refund in the Notice on Promoting the Employment of Disabled Persons (CS [2016] No.
52) since May 2016.
The company's fourth-level subsidiary Liaoning Little Prince Food Co. Ltd. is
subject to the regulations in Article 13 of the Ministry of Finance and the State
Administration of Taxation's "Notice on the Issuance of Supplementary Provisions on
Several Specific Issues of Land Use Tax" (89 Guo Shui Di Zi No. 140). According to
this regulation "public lands such as municipal streets squares and greenbelts" are
exempt from land use tax. When calculating the land use tax the area used for green
Page 65 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
space and roads can be subtracted from the total land area to determine the taxable area.The company's fourth-level subsidiary Hangzhou Lin'an Little Angel Food Co. Ltd.benefits from a tax reduction according to the Zhejiang Provincial Local Taxation
Bureau's Announcement (2014 No. 8). For companies where the average number of
disabled employees in a tax year exceeds 25% (including 25%) of the total number of
on-duty employees and the actual number of disabled employees exceeds 10 (including
10) the company may upon approval from the local tax department enjoy a reduction
in urban land use tax. The reduction is RMB 2000 per person per year based on the
annual average number of disabled employees with the maximum reduction limited to
the total amount of urban land use tax payable by the company for that year.According to the Announcement on Preferential Income Tax Policies for Small
and Micro Enterprises and Individual Industrial and Commercial Households
(Announcement No. 6 of 2023 of the State Administration of Taxation) the Company
meets the conditions for the recognition of small and micro enterprises and the
preferential policies applicable in 2024 are as follows: "For the part of the annual
taxable income of small and low-profit enterprises not exceeding 1 million yuan the
part of the annual taxable income of small and low-profit enterprises shall be included
in the taxable income at a reduced rate of 25% and the taxable income shall be included
at 20% the rate of corporate income tax".The company's second-level subsidiaries Jingliang (Beijing) Food Marketing
Management Co. Ltd. Jingliang (Yangpu) Grain and Oil Industry Co. Ltd. and fourth-
level subsidiaries Linqing Little Prince Food Co. Ltd. and Hangzhou Lin'an Chun
Manyuan Agricultural Development Co. Ltd. are subject to the policies issued by the
Ministry of Finance and the State Taxation Administration in the Announcement on
Further Supporting the Development of Small and Micro Enterprises and Individual
Industrial and Commercial Households (Cai Shui [2023] No. 12). The company meets
the criteria for recognition as a small or micro enterprise and will apply the following
preferential policies for the 2024 fiscal year: "For small-scale VAT taxpayers small
and low-profit enterprises and individual industrial and commercial households the
following taxes will be levied at half the normal rate: resource tax (excluding water
resource tax) urban maintenance and construction tax property tax urban land use tax
stamp duty (excluding securities transaction stamp duty) cultivated land occupation tax
education fee surcharge and local education surcharge."
The company's third-level subsidiary Beijing Tianweikang Oil Adjustment Center
Co. Ltd. is subject to the policies outlined in the document "Announcement on
Continuing the Implementation of Certain National Commodity Reserves Tax
Preferential Policies" (Announcement No. 48 2023) issued by the Beijing Municipal
Finance Bureau and the State Taxation Administration. According to this document
Page 66 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
commodity reserve management companies and their directly affiliated warehouses are
exempt from stamp duty on their business account books. They are also exempt from
stamp duty on purchase and sale contracts signed during the course of their commodity
reserve business. However the stamp duty owed by other parties to the contract will be
collected according to the law. Additionally commodity reserve management
companies and their directly affiliated warehouses are exempt from property tax and
urban land use tax on real estate and land used for their commodity reserve business.This policy is effective from January 1 2024 to December 31 2027.V. Notes to Items in the Consolidated Financial
Statements
Unless otherwise specified the financial statements disclosed below refer to the
financial statements as at the end of the period as at 31 December 2024 the term "at the
beginning of the period" as at 31 December 2023 the term "current" as at 1 January to
31 December 2024 and the "previous period" as at 1 January to 31 December 2023
with the currency unit RMB yuan.
1. Monetary funds
Period-End Beginning
Projects
Balance Balance
Cash on hand 10717.74 9949.26
Bank deposits 503613151.53 533387412.58
Funds in other currencies 72691131.78 119931760.14
Deposit of financial company deposits 840710693.25 890056629.88
Total 1417025694.30 1543385751.86
Among them: the total amount of money
23966791.893113810.75
deposited abroad
2. Derivative financial assets
Project Period-End Balance Beginning Balance
Floating profit and loss of hedging
70947839.6731684620.00
instruments
Total 70947839.67 31684620.00
Page 67 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
3. Accounts receivable
（1）Disclosure by ageing
Aging Period-End Balance Beginning Balance
Within 1 year 91439947.43 96507223.82
1 to 2 years 762767.27
2 to 3 years 752867.27 18497856.00
3 to 4 years 7499480.04
4 to 5 years
More than 5 years 328259.50 328259.50
Total 92521074.20 123595586.63
（2） Classified disclosure according to the method of bad debt
provision
End of period
Provision for Bad
Book Balance
Debts
Category Provi
Propor Book Value
sion
Amount tion Amount
Ratio
(%)
(%)
Provision for
bad debts by 328259.50 0.35 328259.50 100.00
item
Portfolio by
credit risk 92192814.70 99.65 752919.57 0.82 91439895.13
characteristics
Total 92521074.20 —— 1081179.07 —— 91439895.13
（Continuing Table）
Page 68 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning period
Provision for Bad
Book Balance
Debts
Category Provisi Book Value
Proportio on
Amount Amount
n (%) Ratio
(%)
Provision for
bad debts by 328259.50 0.27 328259.50 100.00
item
Portfolio by
credit risk
123267327.1399.737486954.586.07115780372.55
characteristi
cs
Total 123595586.63 —— 7815214.08 —— 115780372.55
（3） Bad debt provisions
Change in the Period
oth
Beginning resale
Category repossessi er
Period-End
Balance or Accrual on or cha Balance
write-
reversal nge
off
s
Provisio
n for bad 328259.50 328259.50
debts
Credit
risk 7486954.58 -6734035.01 752919.57
portfolio
Total 7815214.08 -6734035.01 1081179.07
* Accounts receivable for which provision for bad debts is made separately at
the end of the period
Expected
Provision
Book credit Provision
Debtor's name for bad Aging
balance loss ratio Reason
debts
(%)
Fujian Jingxin More Expected to
Industrial Group 151844.00 151844.00 100.00 than 5 be
Co. Ltd. years unrecoverable
Beijing Guotai
Ping'an Tianzhu More Expected to
Commercial 1809.60 1809.60 100.00 than 5 be
Development Co. years unrecoverable
Ltd.Page 69 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Expected
Provision
Book credit Provision
Debtor's name for bad Aging
balance loss ratio Reason
debts
(%)
Beijing Rongfalida More Expected to
Grain and Oil 163143.00 163143.00 100.00 than 5 be
Trading Co. Ltd. years unrecoverable
Beijing Guotai Ping More Expected to
An Department 10862.90 10862.90 100.00 than 5 be
Store Co. Ltd. years unrecoverable
Beijing Shunyi More Expected to
Longhua Shopping 600.00 600.00 100.00 than 5 be
Center years unrecoverable
Total 328259.50 328259.50 —— —— ——
* Items for Group-Based Provisioning of Bad Debt Allowances:
Period-End Balance
Name Accounts receivable Provision for bad Accrual ratio
debts （%）
Credit Risk
92192814.70752919.570.82
Portfolio
Total 92192814.70 752919.57 0.82
（Continuing Table）
Beginning Balance
Name Accounts Provision for bad Accrual ratio
receivable debts （%）
Credit Risk
123267327.137486954.586.07
Portfolio
Total 123267327.13 7486954.58 6.07
（4） Accounts receivable and contract assets of the top five end-
of-term balances collected by the debtor
Proportion
of accounts
receivable
Debtor's name Book balance and contract Provision for bad debts
assets
combined
（%）
Hebei Luanping Huadu
28001392.0730.26
Food Co. Ltd.Page 70 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Proportion
of accounts
receivable
Debtor's name Book balance and contract Provision for bad debts
assets
combined
（%）
Feed Branch of Beijing
Sanyuan Seed Technology 6108044.61 6.60
Co. Ltd.Beijing Yangu Grain and
Oil Purchase and Sales Co. 5648805.64 6.11
Ltd.China Grain and Oil Co.
4775680.645.16
Ltd.COFCO Donghai Grain
and Oil Industry 3946160.50 4.27
(Zhangjiagang) Co. Ltd.Total 48480083.46 52.40
4. Receivables financing
（1）Accounts receivable financing is listed by category
Item Period-End Balance Beginning Balance
Notes receivable 2502308.90
Total 2502308.90
（2） Receivables financing that the company has endorsed or discounted and
which has not yet matured as of the balance sheet date.Item Period-End Derecognized Period-End Non-Derecognized
Amount Amount
Bank Acceptance
1376500.00
Bills
Total 1376500.00
5. Prepayments
（1）Prepayments Classified by Aging
Page 71 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Period-End Balance Beginning Balance
Aging Percentage Percentage
Amount Amonut
(%)(%)
Within 1 year 198688387.53 99.98 87352234.48 100.00
1 to 2 years 33623.94 0.02
Total 198722011.47 100.00 87352234.48 100.00
（2）Prepayment status of the top five prepaid balances at the end of the
period grouped by prepayment object
Percentage
Book of Total Bad Debt
Debtor Name Balance Prepayme Provision
nts（%）
Tianjin Lingang Customs PRC 54901366.57 27.63
Jiangsu Jianghai Grain and Oil
25112689.6212.64
Group Co.Shanghai Shounong Investment
18949338.609.54
Holding Co.Bangji (Taixing) Grain and Oil Co. 16805108.43 8.46
Bangji Zhengda (Tianjin) Grain and
11214000.005.64
Oil Co.Total 126982503.22 63.91
6. Other Receivables
Item Period-End Balance Beginning Balance
Other Receivables 455148011.66 303099589.59
Total 455148011.66 303099589.59
（1）Other Receivables
1) By aging
Aging Period-End Balance Beginning Balance
Within 1 year 433032730.72 301234542.67
1 to 2 years 20961921.58 641412.67
2 to 3 years 435859.37 144888.00
3 to 4 years 86000.00 459888.00
Page 72 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Aging Period-End Balance Beginning Balance
4 to 5 years 12500.00 88638.00
Over 5 years 618999.99 531999.99
Total 455148011.66 303101369.33
2) Classification by Nature of Receivables
Nature of
Period-End Balance Beginning Balance
Receivable
Deposits and
452531490.90301372189.38
Guarantees
Company
389804.08502432.60
Transactions
Employee
784435.04840868.84
Receivables
Tax Refund
1370551.74
Receivables
Others 71729.90 385878.51
Total 455148011.66 303101369.33
3) Bad Debt Provision by Method of Provisioning
Period-End Balance
Bad Debt
Book Balance
Provision
Expect
Category ed Book value
Percentage Amoun Credit
Amount
(%) t Loss
Rate
(%)
Individuall
y
Provisions
for Bad
Debt
Group-
Based
Provisions 455148011.66 100.00 455148011.66
for Credit
Risk
Total 455148011.66 —— —— 455148011.66
（Continuing Table）
Page 73 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Balance
Book Balance Bad Debt Provision
Expect
Category ed
Percentage Credit Book value
Amount Amount
(%) Loss
Rate(
%)
Individuall
y
Provisions
for Bad
Debt
Group-
Based
Provisions 303101369.33 100.00 1779.74 303099589.59
for Credit
Risk
Total 303101369.33 —— 1779.74 —— 303099589.59
4) Provision for Bad Debt Using the General Expected Credit Loss Model
Bad Debt Provision First Second Third To tal
Stage Stage Stage
12- Lifetime Lifetime
Month Expected Expected
Expected Credit Loss Credit
Credit (No Loss
Loss Impairment (Impairme
) nt
Occurred)
Opening Balance 1779.74 1779.74
Opening Balance in Current —— —— —— ——
Period
--Transferred to Second Stage
--Transferred to Third Stage
--Transferred Back to Second
Stage
--Transferred Back to First
Stage
Accrual for the current period -1779.74 -1779.74
Current Period Reversal
Current Period Write-Off
Current Period Derecognition
Other Changes
Page 74 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Bad Debt Provision First Second Third To tal
Stage Stage Stage
12- Lifetime Lifetime
Month Expected Expected
Expected Credit Loss Credit
Credit (No Loss
Loss Impairment (Impairme
) nt
Occurred)
Closing Balance
5) Bad Debt Provision Situation
Current Period Changes
Beginnin Revers
Closing
Category Write-Off or Other
g Balance al or
Balanc
Accrual Derecognitio Change
Transf e
n s
er
Individuall
y
Provisions
for Bad
Debt
Credit Risk
1779.74-1779.74
Portfolio
Group-
Related
Total 1779.74 -1779.74
6) Top Five Other Receivables by Debtor Name
Percentage
of Total Bad
Receivab Book Balance Other Debt Debtor Name Aging
le Nature
Receivabl Provi
siones（%）
Haitong Futures Co. Futures Within
91979528.2020.21
Ltd. Margin 1 year
Galaxy Futures Co. Futures Within
86980488.1019.11
Ltd. Margin 1 year
CITIC Futures Co. Futures Within
79101705.4017.38
Ltd. Margin 1 year
Zhongchu Grain Futures Within
44179380.009.71
(Xiong'an) Margin 1 year
Zhongtian Futures Futures Within
33795720.007.42
Co. Ltd. Margin 1 year
Total —— 336036821.70 —— 73.83
Page 75 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
7. Inventory
（1）Inventory Classification
Period-End Balance
Provision for
Inventory
Item Impairment/Co
Book Balance Book Value
ntract
Fulfillment
Cost Provision
Raw Materials 413059280.53 413059280.53
Self-made Semi-finished
Products & Work in 25015.91 25015.91
Progress
Finished Goods 1155820490.28 234235.76 1155586254.52
Turnover Materials 5044840.04 5044840.04
Goods in Transit 797976857.22 13886827.30 784090029.92
Total 2371926483.98 14121063.06 2357805420.92
（Continuing Table）
Beginning Balance
Provision for
Item Inventory
Book Balance Impairment/Contra Book Value
ct Fulfillment Cost
Provision
Raw Materials 324815755.86 82063.38 324733692.48
Finished Goods 1122785703.06 1743754.31 1121041948.75
Turnover Materials 5049542.63 5049542.63
Goods in Transit 591034959.25 591034959.25
Total 2043685960.80 1825817.69 2041860143.11
(2) Inventory Falling Price Reserves and provision for impairment of contract
performance costs
Increased Amounts in the Current Period
Items Balance at Beginning of Year
Accrual Others
Raw material 82063.38
Stock Goods 1743754.31 63894.30
Goods in Transit 13886827.30
Page 76 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Increased Amounts in the Current Period
Items Balance at Beginning of Year
Accrual Others
In total 1825817.69 13950721.60
(Continued)
Decreased Amounts in the Current Period Balance at End of
Items
Recover or Charge Off Others Period
Raw material 82063.38
Stock Goods 1573412.85 234235.76
Goods in Transit 13886827.30
In total 1655476.23 14121063.06
(3) Stock Goods listed by major product type
Closing Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1134402697.01 170341.46 1134232355.55
Food 21417793.27 63894.30 21353898.97
Total 1155820490.28 234235.76 1155586254.52
(Continued)
Opening Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1097527087.36 1598094.34 1095928993.02
Food 25258615.70 145659.97 25112955.73
Total 1122785703.06 1743754.31 1121041948.75
8. Non-current Assets Due Within One Year
Item Period-End Balance Beginning Balance
Term Deposits Due Within One
10694166.6622188083.34
Year
Total 10694166.66 22188083.34
Page 77 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
9. Other Current Assets
Item Period-End Balance Beginning Balance
VAT to be deducted 75132953.17 57549582.61
Prepaid Taxes 6584449.99 16226031.95
VAT to be certified 285763.13 202103.63
Fair Value Changes of Hedged Items 79380779.05 238358924.24
Total 161383945.34 312336642.43
10. Long-Term Equity Investments
（1）Long-Term Equity Investment Classification
Curr
Beginning Current ent Period-End
Item
Balance Increase Decr Balance
ease
Investment in Joint
128393543.265576720.97133970264.23
Ventures
Investment in Associates 126529102.15 7006101.64 133535203.79
Total 254922645.41 12582822.61 267505468.02
（2） Details of Joint Ventures and Associates
Current Changes
Re
Addi Other
duc
Invested Investment Beginning tiona Equity Comprehed
Entity Cost Balance l Method ensive Inv
Inve Investment Income
est
stme Income Adjustm
me
nt ent
nt
Total 119825100.64 254922645.41 12546903.92
1. Joint
26232442.61128393543.265576720.97
Ventures
Beijing
Zhengda
Feedstuff 26232442.61 128393543.26 5576720.97
Limited
Company
Page 78 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Changes
Re
Addi Other
duc
Invested Investment Beginning tiona Equity Comprehed
Entity Cost Balance l Method ensive Inv
Inve Investment Income
est
stme Income Adjustm
me
nt ent
nt
2. Associates 93592658.03 126529102.15 6970182.95
Zhongchu
Grain
(Tianjin)
84000000.00120176935.537055788.59
Storage &
Logistics Co.Ltd.Jingliang
Misi Catering
Management 9592658.03 6352166.62 -85605.64
(Beijing) Co.
Ltd.
（Continuing Table）
Current Changes
Declarat Impairm
ent
Investment ion of Other Impairme Period-End Provisio
Entity Cash OtheEquity nt Balance
Dividen r n
Changes Provision
ds or Balance
Profits
Total 35918.69 267505468.02
1. Joint
133970264.23
Venture
Beijing
Zhengda
Feedstuff 133970264.23
Limited
Company
2.
35918.69133535203.79
Associate
Zhongchu
Grain
(Xiong'an)
35918.69127268642.81
Storage &
Logistics
Co. Ltd.Jingliang
Misi
6266560.98
Catering
Manageme
Page 79 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Changes
Declarat Impairm
ion of ent Investment Other Impairme Period-End Provisio
Entity Cash OtheEquity nt Balance
Dividen r n
Changes Provision
ds or Balance
Profits
nt (Beijing)
Co. Ltd.
11. Other Equity Instruments Investment
（1）Other Equity Instruments Investment Situation
Current Changes
Gains
Add
Recogn Losses
Beginning ition
Item ized in Recognized
Balance al Decrease in OthOther in Other
Inve Investment er
Compre Comprehen
stme
hensive sive Income
nt
Income
Chongqi
ng
Longjinb
ao
20000000.0020000000.00
Network
Technolo
gy Co.Ltd.Total 20000000.00 20000000.00
(Continuing Table)
Reason for
Cumulative Cumulative
Dividend Designation
Period Income Gains Losses as Fair Value
-End Recogniz Recognized Recognized
Item through
Balan ed in in Other in Other Other
ce Current Comprehensi Comprehensi
Period Comprehensive Income ve Income
ve Income
Chongqin
g
Longjinb
ao
Page 80 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Reason for
Cumulative Cumulative
Dividend Designation
Period Income Gains Losses as Fair Value
-End Recogniz Recognized Recognized
Item through
Balan ed in in Other in Other Other
ce Current Comprehensi Comprehensi
Period Comprehensive Income ve Income
ve Income
Network
Technolo
gy Co.Ltd.Total
12. Investment Properties
（1）Investment Properties Measured at Cost
Buildings and Land Use Construction
Item Total
Structures Rights in Progress
I. Beginning Book
Value
1. Beginning
62845234.00576510.0063421744.00
Balance
2. Current Period
Increase
3. Current Period
Decrease
4. Period-End
62845234.00576510.0063421744.00
Balance
II. Accumulated
Depreciation and
Amortization
1. Beginning
32579939.08208504.4532788443.53
Balance
2. Current Period
1756585.9211530.201768116.12
Increase
—Depreciation
1756585.9211530.201768116.12
or Amortization
3. Current Period
Decrease
4. Period-End
34336525.00220034.6534556559.65
Balance
III. Impairment
Provision
Page 81 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Buildings and Land Use Construction
Item Total
Structures Rights in Progress
1. Beginning
10587796.7010587796.70
Balance
2. Current Period
Increase
3、Current Period
Decrease
4. Period-End
10587796.7010587796.70
Balance
IV. Book Value
1. Period-End Book
17920912.30356475.3518277387.65
Value
2. Beginning Book
19677498.22368005.5520045503.77
Value
Page 82 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
13. Fixed Assets
Item Period-End Book Value Beginning Book Value
Fixed Assets 891221864.74 939548012.91
Total 891221864.74 939548012.91
（1）Fixed Asset Situation
Buildings & Machinery & Transportation Electronic Office Other
Item Total
Structures Equipment Tools Equipment Equipment Equipment
I.Original
Cost
1.
Beginning 1064558047.21 795460322.57 20074431.07 14133767.59 7545793.53 1385077.43 1903157439.40
Balance
2.
Additions
4559814.1846136811.24934392.34659072.10407971.4552698061.31
This
Period
—
2953357.0124695577.75934392.34659072.10331865.2629574264.46
Purchase
—
Transfers 1606457.17 21441233.49 76106.19 23123796.85
from
Page 83 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Buildings & Machinery & Transportation Electronic Office Other
Item Total
Structures Equipment Tools Equipment Equipment Equipment
Constructi
on in
Progress
3.
Reduction
17862421.922160799.121204611.61147475.8821375308.53
s This
Period
—
Disposals 17862421.92 2160799.12 1204611.61 147475.88 21375308.53
or Scrap
4.
Period-
1069117861.39823734711.8918848024.2913588228.087806289.101385077.431934480192.18
End
Balance
II.Depreciati
on or
Amortizati
on
1.
Beginning 440697875.26 487687828.69 11852350.93 9595147.99 4305164.06 350995.94 954489362.87
Balance
2.
Additions
38097319.7854712907.911798030.381325446.19762568.0468601.2796764873.57
This
Period
Page 84 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Buildings & Machinery & Transportation Electronic Office Other
Item Total
Structures Equipment Tools Equipment Equipment Equipment
—
38097319.7854712907.911798030.381325446.19762568.0468601.2796764873.57
Provision
3.
Reduction
13896984.121943711.621134064.87139462.1417114222.75
s This
Period
—
Disposals 13896984.12 1943711.62 1134064.87 139462.14 17114222.75
or Scrap
4.
Period-
478795195.04528503752.4811706669.699786529.314928269.96419597.211034140013.69
End
Balance
III.Impairme
nt
Provision
1.
Beginning 9047959.13 72104.49 9120063.62
Balance
2.
Current
Period
Increase
3.
1749.871749.87
Current
Page 85 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Buildings & Machinery & Transportation Electronic Office Other
Item Total
Structures Equipment Tools Equipment Equipment Equipment
Period
Decrease
—
Disposal
1749.871749.87
or
Scrapping
4.
Period-
9047959.1370354.629118313.75
End
Balance
IV.Book
Value
1.
Period-
581274707.22295160604.797141354.603801698.772878019.14965480.22891221864.74
End Book
Value
2.
Beginning
614812212.82307700389.398222080.144538619.603240629.471034081.49939548012.91
Book
Value
Page 86 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
14. Construction in Progress
Item Period-End Book Value Beginning Book Value
Construction in Progress 50058378.98 59094902.29
Total 50058378.98 59094902.29
1) Construction in Progress Situation
Period-End Balance Beginning Balance
Impairm Impairm
Item ent ent
Book Balance Book Value Book Balance Book Value
Provisio Provisio
n n
Expanding Soybeans and Rumen
14863819.2914863819.2923078937.3423078937.34
Soybean Meal Project
Jingliang Hainan Yangpu Oil
6288251.736288251.73434369.04434369.04
Processing Project
Caofeidian Free Trade Zone Feed
7858573.817858573.817773303.437773303.43
Processing Project
Slope Stabilization Project at
6996706.066996706.066969126.856969126.85
Factory No. 3
Rice Product Workshop
2749716.182749716.18339024.06339024.06
Relocation Project
First Snack Factory Fried Chips
2866434.872866434.87-
Line 6 Flex Automation Project
Page 87 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Period-End Balance Beginning Balance
Impairm Impairm
Item ent ent
Book Balance Book Value Book Balance Book Value
Provisio Provisio
n n
Second Snack Factory Baked
1750171.231750171.23-
Chips Refining System Project
Snow Cake Workshop Category
1347952.961347952.96-
Expansion Investment Project
Second Snack Factory East
Selection Baked Chips Expansion 1166784.33 1166784.33 -
Project
Odor Treatment Project - - 1585321.11 1585321.11
Baked Chips Production Line
--8392300.918392300.91
Project
Third Snack Factory Roasted
Potato Packaging Automation - - 2556466.47 2556466.47
Project No. 5
First Snack Factory Potato Chips
Workshop Line 3 Packaging - - 2497033.51 2497033.51
Automation Project
First Snack Factory Potato Chips
Workshop Line 4 Packaging - - 1619325.55 1619325.55
Automation Project
Third Snack Factory Roasted
Potato Line 8 Furnace Renovation - - 1240093.10 1240093.10
Project
Other Projects 4169968.52 4169968.52 2609600.92 - 2609600.92
Page 88 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Period-End Balance Beginning Balance
Impairm Impairm
Item ent ent
Book Balance Book Value Book Balance Book Value
Provisio Provisio
n n
Total 50058378.98 - 50058378.98 59094902.29 - 59094902.29
2) Major Changes in Construction in Progress This Period
Beginning Increase This Transfer to Fixed Period-End
Project Name Budget Amount Balance Period Assets Balance
Jingliang Hainan Yangpu Oil Processing
661324100.00434369.045853882.69-6288251.73
Project
Caofeidian Free Trade Zone Feed
7184400.007773303.385270.38-7858573.81
Processing Project
Expanding Soybeans and Rumen
49429300.0023078937.342925761.9511140880.0014863819.29
Soybean Meal Processing Project
Slope Stabilization Project at Factory
17107500.006969126.8527579.21-6996706.06
No. 3
Baked Chips Production Line Project 9700000.00 8392300.91 247133.62 8639434.53
Total —— 46648037.57 9139627.85 19780314.53 36007350.89
（Continuing Table）
Page 89 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Budge of Capitalized
Cumulative Current Period Project Interest Capitalization
Project Name Investment Capitalized Funding Source Progress Accumulated Rate（%）
Interest
（%） Amount
Jingliang Hainan Yangpu Oil Company Self-Funded
0.950.95%
Processing Project
Caofeidian Free Trade Zone Feed Company Self-Funded
109.3899.00%
Processing Project
Expanding Soybeans and Rumen Company Self-Funded
52.6195.00%
Soybean Meal Processing Project
Slope Stabilization Project at Company Self-Funded
40.9090.00%
Factory No. 3
Baked Chips Production Line Company Self-Funded
89.07100.00%
Project
Total —— —— —— ——
Page 90 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
15. Right-of-Use Assets
（1）Situation of Right-of-Use Assets
Buildings & Transportation Land Use
Item Total
Structures Tools Rights
I. Original Cost
1. Beginning
121031786.76607367.225648400.00127287553.98
Balance
2. Additions for the
2416490.862416490.86
Period
— Leased 2416490.86 2416490.86
3. Reductions for the
2673655.51139476.522813132.03
Period
— Contract Expiry 2673655.51 139476.52 2813132.03
4. Ending Balance 120774622.11 467890.70 5648400.00 126890912.81
II. Accumulated
Depreciation
1. Beginning
26870944.28167593.921016712.0028055250.20
Balance
2. Additions for the
24477123.2288209.89112968.0024678301.11
Period
— Depreciation 24477123.22 88209.89 112968.00 24678301.11
3. Reductions for the
2673655.51139476.522813132.03
Period
— Disposal 68954.81 68954.81
— Other Transfers 2673655.51 70521.71 2744177.22
4. Ending Balance 48674411.99 116327.29 1129680.00 49920419.28
III. Impairment
Provision
IV. Book value
1. Ending Book
72100210.12351563.414518720.0076970493.53
Value
2. Beginning Book
94160842.48439773.304631688.0099232303.78
Value
16. Intangible Assets
（1）Intangible Asset Situation
Page 91 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Item Software Land Use Rights Trademark Rights Total
I. Original Cost
1. Beginning
5370415.44415718033.78154841200.00575929649.22
Balance
2. Additions for
17735.8517735.85
the Period
— Purchase 17735.85 17735.85
3. Reductions for
the Period
4. Ending Balance 5388151.29 415718033.78 154841200.00 575947385.07
II. Accumulated
Amortization
1. Beginning
4408533.9779667120.0779177149.25163252803.29
Balance
2. Additions for
260673.909039551.147713925.9217014150.96
the Period
— Amortization 260673.90 9039551.14 7713925.92 17014150.96
3. Reductions for
the Period
4. Ending Balance 4669207.87 88706671.21 86891075.17 180266954.25
III. Impairment
Provision
IV. Book Value
1. Ending Book
718943.42327011362.5767950124.83395680430.82
Value
2. Beginning
961881.47336050913.7175664050.75412676845.93
Book Value
17. Goodwill
（1）Goodwill Original Value
Current Period Current Period Ending
Investe Increase Decrease Balance
d Unit
Forme
or Curre Curre
d by
Matter Beginning nt nt
Busin Ot Dis
Formin Balance Period Period Oth
ess he pos
g Adjus Adjus er
Comb r al
Goodw tment tment
inatio
ill s s
n
Acquisi
tion of 191394422.51 191394422.51
Zhejian
Page 92 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Current Period Ending
Investe Increase Decrease Balance
d Unit
or Forme Curre Curre
Matter Beginning d by nt nt
Formin Balance Busin Ot DisPeriod Period Oth
g ess he pos
Adjus Adjus er
Goodw Comb r al tment tment
ill inatio s s
n
g Xiao
Wangzi
Food
Co.Ltd.Total 191394422.51 191394422.51
（2）Relevant Information of the Asset Group or Asset Group
Combination Containing Goodwill
Business Consistency
Composition and Basis of the
Name Division and with Previous
Asset Group or Combination
Basis Years
Acquisition The asset is
of Zhejiang The asset group contains assets mainly used in
Xiao related to goodwill and its cash food processing
Yes
Wangzi inflow is independent of other belonging to the
Food Co. asset groups. food processing
Ltd. division.
（3）Specific Determination Method for Recoverable Amount
The recoverable amount is determined based on the present value of future cash
flows.Unit: Ten thousand yuan
Basis for
Forec
Imp Key Key Determin
ast
airm Paramet Paramet ing Key
Book Recoverab Perio
Item ent ers for ers for Paramete
Value le Amount d
Amo Forecast Stable rs for
(Year
unt Period Period Stable
s)
Period
Acquisit Average Stable Pre-tax
ion of 2025- revenue period discount
73155.3580196.79
Zhejiang 2029 growth revenue rate
Xiao rate growth calculate
Page 93 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Basis for
Forec
Imp Key Key Determin
ast
airm Paramet Paramet ing Key
Book Recoverab Perio
Item ent ers for ers for Paramete
Value le Amount d
Amo Forecast Stable rs for
(Year
unt Period Period Stable
s)
Period
Wangzi 4.06% rate 0% d based
Food pre-tax pre-tax on risk-
Co. Ltd. discount discount free rate
rate rate of return
13.68% 13.68% market
risk
premium
risk
coefficie
nt cost
of equity
capital
and tax
rate
Total 73155.35 80196.79 —— —— —— ——
18. Long-Term Deferred Expenses
Current
Beginning Current Ending
Item Amortizatio
Balance Increase Balance
n
Factory Renovation
12865755.89674188.0812191567.81
(Majuqiao)
Leased Asset
Maintenance & 2085375.43 145301.97 1940073.46
Renovation
Workshop
Renovation 760612.42 187952.08 214982.69 733581.81
Maintenance
Building
Renovation & 1943993.08 1005903.41 411881.39 2538015.10
Modification
Total 17655736.82 1193855.49 1446354.13 17403238.18
19. Deferred Tax Assets/Deferred Tax Liabilities
（1）Deferred Tax Assets Not Offset
Page 94 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Ending Balance Beginning Balance
Item Deductible Deductible Deferred Tax Deferred Tax
Temporary Temporary
Assets Assets
Differences Differences
Asset
Impairment 14200339.20 3550084.80 1906843.70 476710.92
Provision
Deductible
Temporary 124470315.23 31117578.79 190924419.06 47731104.76
Differences
Lease Liabilities 74957822.23 18739455.57 95982927.96 23995732.00
Credit
Impairment 1081179.07 270294.77 7816993.82 1954248.46
Losses
Deferred
14203242.123550810.5312600638.843150159.71
Revenue
Payable
Employee 5627134.00 1406783.50 5677134.00 1419283.50
Compensation
Financial
Instruments
Derivative
12433441.203108360.30
Financial
Instruments
Valuation
Contract
823272.82205818.211112100.00278025.00
Rebates
Expected
5146800.001286700.00
Liabilities
Total 240510104.67 60127526.17 328454498.58 82113624.65
（2） Deferred Tax Liabilities Not Offset
Ending Balance Beginning Balance
Item Taxable Taxable Deferred Tax Deferred Tax
Temporary Temporary
Liabilities Liabilities
Differences Differences
Trading
Financial
Instruments
Derivative 73663915.05 18415978.76 252306904.70 63076726.18
Financial
Instruments
Valuation
Non-Same
125660049.3231415012.33135119584.5833779896.15
Control
Page 95 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Ending Balance Beginning Balance
Item Taxable Taxable Deferred Tax Deferred Tax
Temporary Temporary
Liabilities Liabilities
Differences Differences
Business
Combination
Asset
Valuation
Increment
Right-of-Use
72451773.6718112943.4394160842.4823540210.63
Assets
Total 271775738.04 67943934.52 481587331.76 120396832.96
（3） Net Deferred Tax Assets or Liabilities After Offsetting
Ending Balance Beginning Balance
Deferred Tax Net Deferred Deferred Tax Net Deferred
Item Assets Tax Assets Assets Tax Assets
Offsetting (After Offsetting (After
Amount Offsetting) Amount Offsetting)
I.Deferred 36528922.19 23598603.98 73314709.43 8798915.22
tax assets
II.Deferred 36528922.19 31415012.33 73314709.43 47082123.53
tax
liabilities
（4） Unrecognized Deferred Tax Assets
Item Ending Balance Beginning Balance
Deductible Temporary Differences 19626834.31 19626834.31
Deductible Losses 228482429.72 243290674.65
Total 248109264.03 262917508.96
（5） Unrecognized Deferred Tax Asset Deductible Losses Maturity
Year Ending Balance Beginning Balance Remarks
2024——38012198.48
202525114592.0525114592.05
202637690527.6537744225.64
Page 96 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Year Ending Balance Beginning Balance Remarks
202758679866.7858679866.78
202883739791.7083739791.70
202923257651.54
Total 228482429.72 243290674.65 ——
20. Other Non-Current Assets
Ending Balance
Item Impairment
Book balance Book Value
Provision
Prepaid Long-Term Asset
5682032.405682032.40
Purchases
Total 5682032.40 5682032.40
（Continuing Table）
Beginning Balance
Item Book
Book balance Book Value
balance
Prepaid Long-Term Asset
2833950.002833950.00
Purchases
Three-Year Term
10390000.0010390000.00
Deposits
Total 13223950.00 13223950.00
21. Assets with restricted ownership or right of use
Ending-period
Item Restriction
Book balance Book value Type
Situation
Guarantee Guarantee
Cash 21505947.53 21505947.53
Deposit Deposit
Fixed Assets 21719189.02 4580904.04 Legal Freeze Legal Freeze
Investment
19594735.46 4858318.61 Legal Freeze Legal Freeze
Properties
Total 62819872.01 30945170.18 —— ——
（Continuing Table）
Beginning-period
Item Restriction
Book balance Book value Type
Situation
Guarantee Guarantee
Cash 2746671.91 2746671.91
Deposit Deposit
Page 97 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning-period
Item Restriction
Book balance Book value Type
Situation
Fixed Assets 21719189.02 4994664.88 Legal Freeze Legal Freeze
Investment
19594735.46 5198514.17 Legal Freeze Legal Freeze
Properties
Total 44060596.39 12939850.96 —— ——
22. Short-Term Borrowings
（1）Short-term borrowings by category
Item Ending Balance Beginning Balance
Credit Loans 1311609177.78 1163479691.67
Total 1311609177.78 1163479691.67
23. Derivative Financial Liabilities
Item Ending Balance Beginning Balance
Fair Value Changes in Hedging
30979464.0015805393.88
Instruments
Total 30979464.00 15805393.88
24. Accounts Payable
（1）Breakdown of Accounts Payable
Item Ending Balance Beginning Balance
Payable for Materials 116601554.59 67912958.96
Payable for
1765477.003013449.11
Engineering
Payable for
1964645.003002660.91
Equipment
Consulting Service
Fee 496573.78 3283467.22
Leasing Fee 3694464.27 650000.00
Storage Fee 2016713.57 2752000.00
Other 1339837.19 1860287.64
Page 98 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Item Ending Balance Beginning Balance
Total 127879265.40 82474823.84
25. Advances from Customers
（1）Breakdown of Advances
Beginning
Item Ending Balance
Balance
Prepaid Rent 1122982.13 1075801.34
Total 1122982.13 1075801.34
26. Contract Liabilities
（1）Breakdown of Contract Liabilities
Ending Beginning
Item
Balance Balance
Loan 522256930.34 411012990.81
Service Fees 9900.99 19801.98
Other 423.65 426.29
Total 522267254.98 411033219.08
27. Employee Compensation Payable
（1）Breakdown of Employee Compensation Payable
Beginning Ending
Item Increase Decrease
Balance Balance
I. Short-Term
30758435.00302691530.71308244258.3825205707.33
Compensation
II. Post-
Employment 1944123.07 38547511.04 37994204.78 2497429.33
Benefits
III.Termination 425495.04 425495.04
Benefits
IV. Other 15043.98 15043.98
Total 32702558.07 341679580.77 346679002.18 27703136.66
Page 99 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
（2） Breakdown of Short-Term Compensation
Beginning Ending
Item Increase Decrease
Balance Balance
I 、 Salary
Bonuses 26776551.56 243833825.05 249584256.61 21026120.00
Allowances
II、Employee
18700.007317864.977289164.9747400.00
Welfare Fees
III 、 Social
932905.6221436022.1221267275.981101651.76
Insurance Fees
- Medical
863418.2719578579.1619453146.45988850.98
Insurance
- Maternity
15835.63231947.37230297.3217485.68
Insurance
- Work Injury
Insurance 53651.72 1625495.59 1583832.21 95315.10
IV 、 Housing
114997.4917099800.6117085929.35128868.75
Provident Fund
V、Union and
Employee 2695150.33 5535683.65 5553455.67 2677378.31
Education
VI 、 Other
Short-Term 220130.00 7468334.31 7464175.80 224288.51
Compensation
Total 30758435.00 302691530.71 308244258.38 25205707.33
（3） Breakdown of Post-Employment Benefit Plans
Beginning Ending
Item Increase Decrease
Balance Balance
I. Basic Pension
1848825.7033074.395.4532529050.692394170.46
Insurance
II. Unemployment
49574.791079594.381072702.3556466.82
Insurance
III. Corporate
45722.584393521.214.392.451.7446792.05
Pension Payment
Total 1944123.07 38547511.04 37994204.78 2497429.33
Page 100 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
28. Taxes Payable
Beginning
Item Ending Balance
Balance
Value Added Tax 6437878.04 1535814.90
Corporate Income Tax 2742466.65 4643368.25
City Maintenance and Construction Tax 361760.50 184732.38
Property Tax 7464168.71 2317671.84
Land Use Tax 996814.98 985671.07
Personal Income Tax 1515360.06 1655912.41
Education Fee Surcharge (including Local
296495.5899058.19
Education Fee)
Other Taxes 184430.00 155163.43
Total 19999374.52 11577392.47
29. Other Payables
Item Ending Balance Beginning Balance
Interest Payable 20000000.00 21082795.47
Dividends Payable 3213302.88
Other Payables 38529914.31 55322100.43
Total 38529914.31 79618198.78
（1） Interest Payable
Ending Beginning
Item
Balance Balance
Interest on Intercompany Loans 20000000.00 21082795.47
Total 20000000.00 21082795.47
（2） Dividends Payable
Item Ending Balance Beginning Balance
Other 3213302.88
Total 3213302.88
（3）Other Payables
Page 101 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
1) Breakdown of Other Payables by Nature
Item Ending Balance Beginning Balance
Related Party Transactions 3669472.80 3687264.48
Deposits and Guarantees 26389861.74 27614619.18
Interunit Transactions 2527587.55 9684592.82
Personal Transactions 651768.84 3731133.46
Employee Insurance 1892167.70 3688119.63
Storage Fees 1595833.71 2832948.18
Loss on Divestment of Hebei Oils 1747611.95
Others 1803221.97 2335810.73
Total 38529914.31 55322100.43
30. Non-current Liabilities Due Within One Year
Item Ending Balance Beginning Balance
Long-term Loans Due Within One Year 529000000.00 150000000.00
Lease Liabilities Due Within One Year 11512646.62 22741185.39
Interest on Long-term Loans Due Within
272983.32319763.89
One Year
Interest on Bonds Due Within One Year 2880000.00 2880000.00
Total 543665629.94 175940949.28
31. Other Current Liabilities
Item Ending Balance Beginning Balance
Sales Tax Payable to be Written Off 53414020.52 45928019.48
Fair Value Changes on Hedging Items 43966054.23 14511381.20
Total 97380074.75 60439400.68
32. Long-term Loans
Amount Due
Ending Book
Item Within One Ending Balance Value
Year
Credit Loans 529000000.00 529000000.00
Total 529000000.00 529000000.00
（Continuing Table）
Page 102 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Book Amount Due Beginning
Item
Value Within One Year Balance
Credit Loans 550000000.00 150000000.00 400000000.00
Total 550000000.00 150000000.00 400000000.00
Page 103 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
33. Bonds Payable
（1）Bonds Payable
Item Ending Balance Beginning Balance
Corporate Bonds 299250000.00 298800000.00
Total 299250000.00 298800000.00
（2） Details of Bonds Payable (Excluding Preferred Stocks Perpetual Bonds and Other Financial Instruments
Classified as Financial Liabilities)
Coupon Amount
Bond Rate Bond Due Face Value Issue Date Issue Amount Beginning Book Value
Name Term Within
（%）
One Year
23
Jingliang
3
01300000000.002.882023.8.21-8.22300000000.00298800000.00
years
Corporate
Bond
Total —— —— —— —— 300000000.00 298800000.00
Page 104 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
（Continuing Table）
Amount Amount
Bond Issued Interest Accrued Amortization of Repayment This Due Default
Ending Book Value
Name This (Face Value) Premium/Discount Period Within Status
Period One Year
23
Jingliang
018640000.00-450000.008640000.00299250000.00
Corporate
Bond
Total 8640000.00 -450000.00 8640000.00 299250000.00 ——
Page 105 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
34. Lease Liabilities
Beginning
Item Ending Balance
Balance
Lease Payment Amount 66639136.63 103803204.86
Less: Unrecognized Financing Costs 4426429.08 7820276.90
Reclassified to Non-current Liabilities Due
11512646.6222741185.39
Within One Year
Net Lease Liabilities 50700060.93 73241742.57
35. Long-term Employee Benefits Payable
（1）Table of Long-term Employee Benefits Payable
Item Ending Balance Beginning Balance
Other Long-term Benefits 5627134.00 5677134.00
Total 5627134.00 5677134.00
36. Provisions
Endging Beginning
Item Reason for Fromation
Balance Balance
Pending Letigation 5146800.00 Zhejiang Little Prince lawsuit
Total 5146800.00 ——
37. Deferred Income
Reas
Beginning Increase This Decrease Ending on for
Item
Balance Period This Period Balance Form
ation
Government
62503256.67101200.005872959.0556731497.62
Subsidy
Total 62503256.67 101200.00 5872959.05 56731497.62 ——
Details of Government Subsidies：
Page 106 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current
Transferred
Period Transferred
Beginning to Non-
Subsidy Project New to Other
Balance operating
Subsidy Income
Income
Amount
Tianjin Binhai New
Area Industrial
1425925.73222222.24
Transformation and
Park Construction Fund
"Tianjin Lingang
Industrial Area
Management 46096611.13 1277504.16
Committee"
Infrastructure Subsidy
Beijing Grain and
Materials Reserves
Bureau "Oil Tank
2272477.03250180.92
Expansion and
Winterization Project"
Subsidy
Edible Oil Green
Cleaning Production 111999.68 56000.04
Equipment Subsidy
Grain and Oil
"Moderate Processing"
Key Technology 544871.72 77838.84
Research Project Fixed
Asset Formation
Beijing Grain and
Materials Reserves
Bureau 2024 Grain 101200.00
Warehouse Facility
Repair Fund
Relocation
3078110.503078110.50
Compensation
Infrastructure
Investment Special 8973260.88 911102.35
Subsidy
Total 62503256.67 101200.00 5872959.05
（Continuing Table）
Page 107 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Curre
nt
Othe Refu
Period Year-End Asset related r nd
Subsidy Project Refun / income
Cha
d Balance
Reas
related
nges on
Amou
nt
Tianjin Binhai New
Area Industrial
Assets
Transformation and 1175744.81
related
Park Construction
Fund
"Tianjin Lingang
Industrial Area
Assets
Management 44819106.97
related
Committee"
Infrastructure Subsidy
Beijing Grain and
Materials Reserves
Bureau "Oil Tank Assets
2050254.79
Expansion and related
Winterization Project"
Subsidy
Edible Oil Green Assets
Cleaning Production 55999.64 related
Equipment Subsidy
Grain and Oil Assets
"Moderate Processing" related
Key Technology 467032.88
Research Project Fixed
Asset Formation
Beijing Grain and Assets
Materials Reserves related
Bureau 2024 Grain 101200.00
Warehouse Facility
Repair Fund
Relocation Assets
Compensation related
Infrastructure Assets
Investment Special 8062158.53 related
Subsidy
Total 56731497.62
Page 108 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
38. Share Capital
Changes This Period (+ -)
Issua
Shareh Capital
Beginning nce Bon Su
older Reserve of us Oth bt Ending Balance Balance
Name ConversiNew Shar er ota
on to
Share es l
Shares
s
Total
726950251.00726950251.00
Shares
39. Capital Surplus
Decreas
Increase This Ending
Item Beginning Balance e This
Period Balance
Period
Capital (Share
Capital) 1435204343.74 1435204343.74
Premium
Other Capital
246603764.33875918.69247479683.02
Surplus
Total 1681808108.07 875918.69 1682684026.76
40. Other Comprehensive Income
Current Period Amount
Less: Amount
Less: Amount
Transferred
Transferred Less:
Item Beginning Balance Tax from Other from Other Income
Before Comprehensive
Comprehensive Tax
Period Income to
Income to Expenses
Retained
Profit or Loss
Earnings
1.Other
Comprehensive
Income Not
Reclassifiable
to Profit or
Loss
2.Other
Comprehensive
1369980.92393062.52
Income
Reclassifiable
Page 109 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Amount
Less: Amount
Less: Amount
Transferred
Transferred Less:
Item Beginning Balance Tax from Other from Other Income
Before Comprehensive
Comprehensive Tax
Period Income to
Income to Expenses
Retained
Profit or Loss
Earnings
to Profit or
Loss
Foreign
Currency
1369980.92393062.52
Translation
Differences
Total other
comprehensive 1369980.92 393062.52
income
（Continuing Table）
Current Period Amount
After-Tax
After-Tax
Income Amount
Item Amount Tax Effect Attributable Ending Balance
Attributable
for the to the
to Minority
Period Parent
Shareholders
Company
I. Other
Comprehensive
Income that will not be
reclassified to profit or
loss.II. Other
Comprehensive
Income that will be 393062.52 393062.52 1763043.44
reclassified to profit or
loss.Foreign
Currency Translation 393062.52 393062.52 1763043.44
Differences
Total Other
Comprehensive 393062.52 393062.52 1763043.44
Income
Page 110 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
41. Surplus Reserves
Beginning Decr
Item Increase Ending Balance
Balance ease
Statutory Surplus
92184862.077598927.0799783789.14
Reserve
Discretionary Surplus
37634827.9337634827.93
Reserve
Total 129819690.00 7598927.07 137418617.07
42. Undistributed Profits
Previous
Item Current Amount
Amount
Adjusted Undistributed Profit at Beginning
627555511.45532904675.62
of the Period
Adjusted Undistributed Profit at Ending of
627555511.45532904675.62
the Period
Plus: Net Profit Attributable to Parent
26130520.86102348088.85
Company for the Period
Less: Statutory Surplus Reserve 7598927.07 7697253.02
Dividends Payable on Common Stock 51613467.82
Ending Undistributed Profit 594473637.42 627555511.45
43. Operating Revenue and Operating Costs
（1）Operating Revenue and Operating Costs
Current Period Amount Previous Period Amount
Item
Revenue Cost Revenue Cost
Main
Busines 11335771143.52 10902532360.75 11844929514.32 11501631237.44
s
Other
Busines 99072372.75 12115723.96 56079697.31 49171830.07
s
Total 11434843516.27 10914648084.71 11901009211.63 11550803067.51
（2）Breakdown of Operating Revenue and Costs
Page 111 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
By Contract Classification Revenue Cost
The type of product
-Oil 10486763113.09 10234876135.34
-Food 849008030.43 667656225.41
-Other 99072372.75 12115723.96
By Operating Region
- North 6148377682.00 5942593232.22
- East 2386082402.44 2208260161.96
-Northeast 1301161999.37 1263704875.87
-Southeast 6878594.13 6802120.15
-South 589317442.57 582980307.74
-Southwest 516011751.31 514563396.67
-Others 487013644.45 395743990.10
By Timing of Recognition of Revenue
- At a specific point in time 11434843516.27 10914648084.71
The classification by sales channel
- Direct sales 6612218955.25 6321276580.05
- Distributors 4723552188.27 4581255780.70
- Others 99072372.75 12115723.96
Total 11434843516.27 10914648084.71
（3）Explanation of Performance Obligations
Type of
Quality
Amount Guarante
Performan Nature of Primary Expecte
ce Key Goods Obligatio d to be e
Item Obligation Payment Committ n Returned Provided
Fulfillmen Terms ed to Responsib to &
t Time Transfer le Party Custome Related
rs Obligatio
ns
Primari Mainly
Oils and
ly sales of
Fats and Upon Statutory
advanc oils delivery Yes None warranty Food
e fats and
Processi
paymen snacks
Page 112 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Type of
Quality
Amount Guarante
Performan Nature of Primary Expecte
ce Key Goods Obligatio d to be e
Item Obligation Payment Committ n Returned Provided
Fulfillmen Terms ed to Responsib to &
t Time Transfer le Party Custome Related
rs Obligatio
ns
ng Sales t before
Trade deliver
y
Note: In terms of settlement methods the company and its distributors primarily
use the advance payment before delivery method. For some long-term
cooperative and creditworthy distributors the company provides a certain credit
limit. Some direct sales customers and supermarkets settle according to the
contractual agreed payment period.
（4）Explanation of Remaining Performance Obligations
Item Amount
Revenue corresponding to signed contracts that have
not yet been fulfilled or completed by the end of this 308429732.04
reporting period
—Expected revenue to be recognized in 2025 308429732.04
44. Taxes and Surcharges
Current Period
Item Amount Previous Period Amount
Urban Construction and
Maintenance Tax 3636611.72 3395501.76
Property Tax 13097397.94 7295069.14
Land Use Tax 2446590.59 2290615.80
Education Fee Surcharge 2741190.20 2456291.23
Page 113 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period
Item Amount Previous Period Amount
Vehicle and Vessel Usage Tax 38109.50 41512.47
Environmental Protection Tax 66365.17 30843.03
Stamp Duty 8918488.40 7421881.18
Other Taxes and Fees 285.11 667.49
Total 30945038.63 22932382.10
45. Sales Expenses
Previous Period
Item Current Period Amount Amount
Employee Compensation 70273163.60 64636913.79
Warehousing and Storage Fees 19229919.38 16512288.34
Depreciation Expense 16866196.27 16173229.17
Promotion Expenses 14968467.76 18442554.57
Material Consumption and Losses 4558864.92 2485434.87
Travel Expenses 4214616.80 6415908.18
Lease Expenses 2174672.28 1239720.46
Office Expenses 1484310.25 1617807.11
Repair Expenses 1444300.03 2090173.34
Utilities 1229238.36 1280862.67
Vehicle Expenses 871730.11 909465.03
Business Reception Expenses 509618.37 315369.36
Insurance Expenses 364354.71 445587.43
Packaging Expenses 341091.01 364375.51
Inspection and Testing Expenses 206603.46 264296.91
Loading and Unloading Expenses 118856.33 320767.29
Labor Protection Expenses 93474.09 131844.93
Other Expenses 1568941.69 1053687.31
Total 140518419.42 134700286.27
Page 114 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
46. Administrative Expenses
Current Period Previous Period
Item
Amount Amount
Employee Compensation 127972209.14 137027182.45
Depreciation Expense 16226625.52 17485332.22
Amortization of Intangible Assets 14323916.32 14787451.81
Office Expenses 7395582.62 4897271.51
Lease Expenses 5977264.11 3211730.12
Fees for Engaging Intermediaries 6438726.56 7625327.29
Repair Expenses 4034279.79 6467541.44
Security and Protection Expenses 1401532.72 1772654.96
Travel Expenses 1258181.33 1198460.18
Information and Network
1147485.111423703.10
Expenses
Insurance Expenses 1135356.00 1407380.46
Business Reception Expenses 1101072.91 934893.63
Environmental Protection
913233.20942076.90
Expenses
Amortization of Prepaid Expenses 887684.08 1610265.81
Director’s Expenses 299999.88 299999.88
Vehicle Expenses 690796.45 2184227.98
Material Consumption 560692.04 657054.96
Labor Protection Expenses 103200.04 413741.50
Conference Expenses 64892.64 89343.12
Court Expenses 505290.56
Other Expenses 6792998.62 9538565.77
Total 199231019.64 213974205.09
47. Research and Development Expenses
Current Period Previous Period
Item
Amount Amount
Salary 13594553.19 10986790.95
Material Costs 5544119.46 3839190.78
Page 115 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Previous Period
Item
Amount Amount
Material Consumption 1268715.98 2565948.18
Depreciation and
1289462.62590080.30
Amortization
Fuel and Power Costs 779758.88 670315.44
Travel Expenses 72184.10 103961.21
Equipment Costs 14946.90 105418.94
Design Fees - 566037.74
Other 2418727.49 1470218.17
Total 24982468.62 20897961.71
48. Financial Expenses
Item Current Period Amount Previous Period Amount
Interest Expenses 60492426.83 62101542.12
Less: Interest Income 17628504.01 18201145.42
Fees and Charges 1740795.52 1119817.26
Exchange Losses 980593.83 922278.26
Less: Exchange Gains 204540.10 2424915.08
Other 2348.54
Total 45380772.07 43519925.68
49. Other Income
Item Current Period Amount Previous Period Amount
Government
18808559.9613150019.76
subsidy
Individual income
tax handling fee 222588.13 181917.61
refund
Other 273.00 840.00
Total 19031421.09 13332777.37
Page 116 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
50. Investment Income
Current Period Previous Period
Investment Income
Amount Amount
Equity Method Investment Income 12546903.92 11368728.43
Investment Income from Disposal of Long-
3987862.90
Term Equity Investments
Investment Income from Trading Financial
211777.70
Assets
Investment Income from Disposal of
374460.84
Trading Financial Assets
Other -12559.79
Total 12546903.92 15930270.08
51. Fair Value Change Gains
Previous
Current Period
Source of Fair Value Change Gains Period
Amount Amount
Trading Financial Assets -116999895.87 228219839.09
Of which: Fair Value Change of Hedging
-116999895.87228219839.09
Instruments and Hedged Items
Total -116999895.87 228219839.09
52. Credit Impairment Losses
Current Period Previous Period
Item
Amount Amount
Bad Debt Losses on Accounts
6734035.01-5126006.59
Receivable
Bad Debt Losses on Other
Receivables 1779.74 -1779.74
Total 6735814.75 -5127786.33
53. Asset Impairment Losses
Current Period Previous Period
Item
Amount Amount
Inventory Write-down Loss -13819833.62 -29004360.66
Page 117 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Previous Period
Item
Amount Amount
Total -13819833.62 -29004360.66
54. Gains on Asset Disposal
Amount
Included in
Current Period Previous Period Non-
Item
Amount Amount Recurring
Gains and
Losses
Profit from Disposal
63830.7250283.7963830.72
of Fixed Assets
Total 63830.72 50283.79 63830.72
55. Non-Operating Income
Amount
Included in
Current Previous
Non-
Item Period Period
Operating
Amount Amount
Gains and
Losses
Non-Current Asset Destruction or
131658.8216682.16131658.82
Scrap Gain
Fines Penalties Late Fees and
53728.006143722.1853728.00
Compensation Income
Payables Not Due for Payment 9952534.05 251522.70 9952534.05
Scrap Disposal Income 60218.08 119317.42 60218.08
Other 1050933.48 236088.24 1050933.48
Total 11249072.43 6767332.70 11249072.43
56. Non-Operating Expenses
Amount
Included in
Current Previous
Non-
Item Period Period
Operating
Amount Amount
Gains and
Losses
Non-Current Asset Destruction or
163623.76318231.18163623.76
Scrap Loss
Page 118 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Amount
Included in
Current Previous
Non-
Item Period Period
Operating
Amount Amount
Gains and
Losses
Public Welfare Donations 50000.00
Late Fees 9166.34 9166.34
Inventory Loss 7970.33 7970.33
Penalties Compensation 336961.15 3438439.46 336961.15
Litigation Compensation Expenses 5000000.00 5000000.00
Other 77682.10 210575.30 77682.10
Total 5595403.68 4017245.94 5595403.68
57. Income Tax Expense
（1）Income Tax Expense Table
Item Current Period Amount Previous Period Amount
Current Income Tax Expense 18504508.70 30811845.54
Deferred Income Tax
Adjustment -30466799.96 6067801.54
Total -11962291.26 36879647.08
（2） Reconciliation of Accounting Profit and Income Tax Expense
Current Period
Item
Amount
Total Profit -7650377.08
Income Tax Expense Calculated at Statutory/Applicable Tax Rate -1912594.27
Effect of Different Tax Rates for Subsidiaries -767027.17
Effect of Adjustments to Prior Period Income Tax 200845.33
Effect of Non-Taxable Income -1831011.83
Effect of Non-Deductible Costs Expenses and Losses 568136.98
Effect of Using Unrecognized Deferred Tax Assets on Deductible
-9487494.50
Losses from Previous Periods
Page 119 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period
Item
Amount
Effect of Unrecognized Deferred Tax Assets on Deductible Losses in
4879462.21
the Current Period
Effect of R&D Expenses and Disability Employment Deduction -4721969.93
Effect of Impairment Loss Reversal or Write-off -3693.00
Effect of Small Enterprise Tax Preferences 4695.08
Effect of Non-Taxable Investment Income 3799341.99
Effect of Reversal of Deferred Tax Assets Recognized in the
893.59
Previous Period
Effect of Accelerated Depreciation of Fixed Assets -2341718.53
Effect of Singapore Policy Tax Exemption -210525.66
Other -139631.55
Income Tax Expense -11962291.26
58. Other Comprehensive Income
Please refer to Note "V. 40. Other Comprehensive Income" for detailed
information.
59. Cash Flow Statement Items
（1）Cash Related to Operating Activities
1) Cash Received from Other Operating Activities
Previous Period
Item Current Period Amount
Amount
Related Party Transactions 10190180.58 26969822.02
Deposits and Guarantees 4775548384.38 2178381623.73
Other Unit Transactions 68187505.79 89136407.24
Interest Income 13207645.63 13316019.01
Non-Operating Income &
8810598.646418418.92
Other Gains
Collections for Others 2549941162.71
Other 29599109.83 3658424.57
Total 7455484587.56 2317880715.49
2) Cash Paid for Other Operating Activities
Page 120 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Expense Payments 74785966.59 104347063.80
Other Unit Transactions 46871640.12 57986662.42
Related Party
15379839.8511939808.97
Transactions
Petty Cash 90000.00 138317.53
Deposits and
4692659820.382180753383.10
Guarantees
Collections for Others 2549941162.71
Other 83696364.64 8111618.56
Total 7463424794.29 2363276854.38
（2）Cash Related to Investing Activities
1) Cash Paid for Other Investing Activities
Previous Period
Item Current Period Amount
Amount
Hebei Oilseed Investment
Withdrawal 1747611.95 9772907.10
Total 1747611.95 9772907.10
（3） Cash Related to Financing Activities
1) Cash Received from Other Financing Activities
Current Period Previous Period
Item
Amount Amount
Capital Contribution from
Shunong Group for Research 840000.00 3090000.00
Subsidies
Total 840000.00 3090000.00
2) Cash Paid for Other Financing Activities
Item Current Period Amount Previous Period Amount
Lease Payments 15224400.00 29652976.62
Total 15224400.00 29652976.62
Page 121 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
3) Changes in Liabilities Arising from Financing Activities
Period-Increase Period-Decrease
Item Beginning Balance Non-Cash Non-Cash Ending Balance
Cash Changes Cash Changes
Changes Changes
Short-Term
Borrowings 1163479691.67 1830000000.00 28973783.36 1710844297.25 1311609177.78
Long-Term
550319763.89130000000.0015074800.00166121580.57529272983.32
Borrowings
Bonds
301680000.009090000.008640000.00302130000.00
Payable
Lease
95982927.965985537.3413994289.8725761467.8862212707.55
Liabilities
Dividends 51613467.82 51613467.82
Payable
Total 2111462383.52 1960000000.00 110737588.52 1951213635.51 25761467.88 2205224868.65
Note: The amounts listed above include the amounts reclassified to non-current liabilities due within one year.Page 122 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
60. Supplementary Information for the Cash Flow
Statement
（1）Supplemental Information to the Cash Flow Statement
Supplemental Information Current period Previous period
1. Adjusting Net Profit to Operating
————
Activities' Cash Flow：
Net profit 4311914.18 103452846.29
Add: Asset impairment loss 13819833.62 29004360.66
Credit impairment loss -6735814.75 5127786.33
Depreciation of fixed assets oil
98532989.6995114999.37
and gas assets and biological assets
Depreciation of right-of-use assets 24678301.11 24780097.22
Amortization of intangible assets 14407936.72 14871472.21
Amortization of long-term prepaid
1446354.131646475.12
expenses
Loss (or gain) on disposal of fixed
assets intangible assets and other long- -63830.72 -50283.79
term assets
Loss on retirement of fixed assets
31964.94301549.02
(income is listed with a "-" sign)
Fair value change loss (Gain is
marked with "-".) 116999895.87 -228219839.09
columns)
Finance expenses (income is
77015661.7764730900.89
indicated with a "-")
Investment losses (gains are listed
-12546903.92-15930270.08
with a "-" sign)
Deferred tax assets decreased
(increased with a "-" sign -14799688.76 5390848.71
Fill in the columns)
Deferred tax liabilities increased
(decreased by "-".) -15667111.20 676952.83
Fill in the columns)
Decrease in inventories (increase
-329668276.06-253552786.31
by "-")
Decrease in operating receivables
(increase with "-"). -76364386.07 368727261.20
Fill in the columns)
Page 123 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Supplemental Information Current period Previous period
Increase in operating payables
(decrease by "-".) -4869562.50 -106585415.84
Fill in the columns)
Net cash flow from operating activities -109470721.95 109486954.74
2. Significant investment and financing
activities that do not involve cash receipts —— ——
and expenditures:
3. Net change in cash and cash
————
equivalents:
The closing balance of cash 1395519746.77 1540639079.95
Less: The opening balance of cash 1540639079.95 551439110.07
Net increase in cash and cash
-145119333.18989199969.88
equivalents
（2） Composition of Cash and Cash Equivalents
Item Ending balance Beginning balance
I. Cash 1395519746.77 1540639079.5
Cash in hand 10717.74 9949.26
Bank deposits available for
1325403161.841423321137.06
immediate use:
Other funds available for
70105867.19117307993.63
immediate use:
II. Cash equivalents
III. Closing cash and cash equivalents
1395519746.771540639079.95
balances
61. Monetary items in foreign currencies
（1）Monetary items in foreign currency
Translation
Closing Foreign Translation at the end
Item Exchange
Currency Balance of the period
Rate
Monetary funds —— —— 87168294.60
Including: USD 12126244.31 7.1884 87168294.60
Other receivables —— —— 16141102.93
Including: USD 2245437.50 7.1884 16141102.93
Page 124 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
62. Lease
（1）Tenant information
Item Amount
Interest expense on lease liabilities 1256958.15
Simplified short-term lease charges including cost of related
4407568.51
assets or current profit or loss
Total lease-related cash outflows 19590203.65
（2）Operating lease as lessor
Including: income related
to variable lease
Item Lease income
payments that are not
included in lease receipts
Rental income 56609024.03
Total 56609024.03
VI. R&D expenditure
1. Listed by nature of fees
Amount incurred in the Amount incurred in the
Item
current period previous period
Salary 13594553.19 10986790.95
Material cost 5544119.46 3839190.78
Material consumption 1268715.98 2565948.18
Depreciation and
1289462.62590080.30
amortization expense
Fuel power cost 779758.88 670315.44
Travel costs 72184.10 103961.21
Equipment cost 14946.90 105418.94
Design fee - 566037.74
Others 2418727.49 1470218.17
Total 24982468.62 20897961.71
Page 125 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Amount incurred in the Amount incurred in the
Item
current period previous period
Among them: expensed
24982468.6220897961.71
R&D expenditure
Capitalize R&D
expenditures
VII. Change in the scope of consolidation
There was no change in the scope of consolidation during the reporting period.Page 126 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
VIII. Interests in Other Entities
1. Equity Interests in Subsidiaries
（1）Composition of the Corporate Group
Registered Shareholding ratio（%）
Primary Capital (in
Registered Business
Subsidiary Name Business Ten
Location Nature Direct Indirect
Acquisition Method
Location Thousand Shareholding Shareholding
Yuan)
Agricultural Same control
Jingliang (Tianjin) Grain and Oil
Tianjin Tianjin product 70.00 merger
Industry Co. Ltd. 56000.00
processing
Beijing B eijing Grain and oil Same control
Beijing Jingliang Oil Co. Ltd. 100.00
5000.00 trade merger
Beijing Beijing Grain and oil Same control
Beijing Guchuan Oil Co. Ltd. 100.00
12558.46 trade merger
Beijing Beijing Agricultural Same control
Beijing Aisen Lvbao Oil Co.product 100.00 merger
Ltd. 5050.00
processing
Beijing Tianweikang Oil Beijing B e ijing Same control
Warehousing 100.00
Marketing Center Co. Ltd. 500.00 merger
Beijing Guchuan Bread Food Beijing B eijing Food Same control
100.00
Co. Ltd. 5550.00 processing merger
Page 127 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Registered Shareholding ratio（%）
Primary Capital (in
Subsidiary Name Business
Registered Business
Ten Acquisition Method
Location Location Nature
Direct Indirect
Thousand Shareholding Shareholding
Yuan)
Zhejiang Little Prince Food Co. Hangzhou H angzhou Food Non-same control
Ltd. 5156.00 processing
17.6794 77.2072 merger
Hangzhou Lin'an Little Angel Hangzhou H angzhou Food Non-same control
17.679477.2072
Food Co. Ltd. 4900.00 processing merger
Liaoning Little Prince Food Co. Food Non-same control
Liaoning Liaoning 17.6794 77.2072
Ltd. 3000.00 processing merger
Linqing Little Prince Food Co. Food Non-same control
Linqing Linqing 17.6794 77.2072
Ltd. 2132.50 processing merger
Hangzhou Lin'an Chunmanyuan Food
Non-same control
Agricultural Development Co. Hangzhou Hangzhou processing 17.6794 77.2072
600.00 merger
Ltd.Jingliang (Singapore) Investment
Singapore Singapore Grain trade 100.00
International Trade Co. Ltd. 643.35 establishment
Beijing Jingliang Guyuan Oil Grain and oil Investment
Beijing Beijing 100.00
Co. Ltd 5000.00 trade establishment
Beijing Jing Grain Products Co. Investment Same control
Beijing Beijing 100.00
Ltd 105658.96 management merger
Jingliang (Caofeidian) Investment
Agricultural Development Co. Tangshan Tangshan Agriculture 51.00 establishment
5000.00
Ltd
Agricultural Investment
Jingliang (Yueyang) Grain and
Hunan Hunan product 65.00 establishment
Oil Industry Co. Ltd 68000.00
processing
Page 128 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Jingliang (Caofeidian) Investment
Agricultural Development Co. Tangshan Tangshan Agriculture 51.00 establishment
5000.00
Ltd
Jingliang (Beijing) Food Beijing B e i jing Commercial Investment 100.00
Marketing Management Co. Ltd 800.00 services establishment
Agricultural Investment
Jingliang (Yangpu) Grain and Oil
Hainan Hainan product 65.00 establishment
Industry Co. Ltd 50000.00
processing
（2）Important Non-Wholly-Owned Subsidiaries
Loss Attributable to Minority
Minority Dividends Declared to Minority Minority Shareholders’
Subsidiary Name Shareholders in Current
Shareholding Shareholders Equity at Period End
Period
Jingliang (Tianjin)
Grain and Oil 30.00% -24424203.49 13232800.00 184609420.21
Industry Co. Ltd
Zhejiang Little Prince
5.11%14479832.0022792800.00189816315.97
Food Co. Ltd
（3）Main Financial Information of Important Non-Wholly-Owned Subsidiaries
Page 129 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Ending Balance
Subsidiary Name Non-current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Jingliang (Tianjin) Grain
1860100669.62685396396.292545497065.911882087225.2948045106.571930132331.86
and Oil Industry Co. Ltd
Zhejiang Little Prince
530330845.53310413253.53840744099.0683362355.3518836092.53102198447.88
Food Co. Ltd
（Continuing Table）
Beginning Balance
Subsidiary Name Non-current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Jingliang (Tianjin) Grain
1690703873.13715120631.782405824504.911401536126.49263400299.401664936425.89
and Oil Industry Co. Ltd
Zhejiang Little Prince Food
556236641.71333141896.19889378537.90103727129.3817728505.38121455634.76
Co. Ltd
（Continuing Table）
Current Period
Subsidiary Name Total Cash Flow from
Operating Income Net Profit Comprehensive
Operating Activities
Income
Jingliang (Tianjin) Grain and Oil Industry
4610312602.62-81414144.97-81414144.97-227746332.44
Co. Ltd
Zhejiang Little Prince Food Co. Ltd 726127696.17 70622748.04 70622748.04 30154130.18
（Continuing Table）
Page 130 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Previous Period
Subsidiary Name Total Cash Flow from
Operating Income Net Profit Comprehensive
Operating Activities
Income
Jingliang (Tianjin) Grain and Oil Industry
5567060384.679084326.559084326.55341687731.49
Co. Ltd
Zhejiang Little Prince Food Co. Ltd 801501276.72 100934836.53 100934836.53 47904799.55
Page 131 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
2. Equity Interests in Joint Ventures or Associates
（1）Important Joint Ventures or Associates
Shareholding ratio Accounti
（%） ng
Treatmen
Primar
Joint t Method y
Venture Register for Busine Business
or ed Direct Indirect Investme
Associat ss Nature Location Shareholdi Shareholdi nt in
e Name Locati ng ng Joint
on
Venture
or
Associate
Beijing
Zhengda
Feedstuff Manufacturi Equity
Beijing Beijing 50.00
Limited ng method
Compan
y
Zhongch
u Grain
(Tianjin)
Tianjin Warehousi Equity
Warehou Tianjing 30.00
g ng & method
se and Transport
Logistics
Co. Ltd.
（2）Main Financial Information of Important Joint Ventures
Beginning Period
Period End Balance /
Balance / Previous
Current Period Amount
Period Amount
Item Beijing Zhengda
Beijing Zhengda
Feedstuff Limited Feedstuff Limited
Company
Company
Current Assets 327856522.69 319779538.52
Page 132 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Period
Period End Balance /
Balance / Previous
Current Period Amount
Period Amount
Item Beijing Zhengda
Beijing Zhengda
Feedstuff Limited Feedstuff Limited
Company
Company
Cash and Cash Equivalents 13344582.35 12804613.72
Non-Current Assets 21750027.11 19900378.39
Total Assets 349606549.80 339679916.91
Current Liabilities 56698809.23 58198209.39
Non-Current Liabilities 24967212.11 24694621.01
Total Liabilities 81666021.34 82892830.40
Minority Interest
Equity Attributable to Parent
267940528.46256787086.51
Shareholders
Share of Net Assets
133970264.23128393543.26
Attributable to Parent
Book Value of Investment in
133970264.23128393543.26
Joint Venture
Operating Revenue 298495469.15 333814764.22
Financial Expenses -9914634.19 -8260978.56
Income Tax Expenses 3775596.96 4783324.60
Net Profit 11054824.97 13840755.05
Dividends Received from
Joint Venture
（3）Main Financial Information of Important Associates
Beginning Period
Period End Balance /
Balance / Previous
Current Period Amount
Period Amount
Item
Zhongchu Grain Zhongchu Grain
(Tianjin) Warehouse (Tianjin) Warehouse
and Logistics Co. Ltd. and Logistics Co. Ltd.Current Assets 107422998.85 59019697.43
Non-Current Assets 929833741.73 886062609.97
Total Assets 1037256740.58 945082307.40
Current Liabilities 42972048.52 33964613.24
Non-Current Liabilities 570055882.68 506182569.64
Total Liabilities 613027931.20 540147182.88
Page 133 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Period
Period End Balance /
Balance / Previous
Current Period Amount
Period Amount
Item
Zhongchu Grain Zhongchu Grain
(Tianjin) Warehouse (Tianjin) Warehouse
and Logistics Co. Ltd. and Logistics Co. Ltd.Minority Interest
Equity Attributable to Parent
424228809.38404935124.52
Shareholders
Share of Net Assets
127268642.81121480537.36
Attributable to Parent
Book Value of Investment in
127268642.81121480537.36
Associate
The fair value of equity
investments in associates with
publicly quoted prices.Operating Revenue 97832532.36 48403561.21
Net Profit 19173955.86 15567021.54
Total Comprehensive Income 19173955.86 15567021.54
Dividends Received from
Associate
（4）Summary Financial Information of Non-Significant Joint
Ventures and Associates
Period End Balance / Current
Item
Period Amount
Associates：
Total Book Value of Investments 6266560.98 6352166.62
The total amount calculated based on the
————
shareholding ratio for the following items.-- Net Profit -85605.64 -89502.20
-- Total Comprehensive Income -85605.64 -89502.20
Page 134 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
IX. Government Grants
1. Liabilities Related to Government Grants
Amo
unt
Recor
Oth
ded
er
in
Cha Asset
Financia New Grant Non- Transferred
nge /Inco
l Beginning Amount opera to Other Ending
s me
Stateme Balance for the ting Income for Balance
for Relat
nt Item Period Inco the Period
the ed
me
Peri
for
od
the
Perio
d
Deferre
Relat
d
62503256.67 101200.00 5872959.05 56731497.62 ed to
Revenu
assets
e
Total 62503256.67 101200.00 5872959.05 56731497.62 ——
2. Government Grants Recorded in Current Profit or Loss
Item
Current Period Previous Period Reported
Item
Amount Amount Item
VAT
Immediate 7385224.08 7349068.91 Other income
Refund
Relocation
3078110.50 384763.82 Other income
Compensation
Import
Soybean
2165900.00 400000.00 Other income
Financial
Subsidy
Infrastructure
Support
Subsidy for
Enterprises in
the 1277504.16 1277504.16 Other income
Construction
Phase of the
Tianjin
Lingang
Page 135 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Previous Period Reported
Item
Amount Amount Item
Industrial
Zone
Administrativ
e Committee
Subsidy for
Infrastructure
767281.55 767281.55 Other income
Construction
Equipment
Job
Stabilization 611411.81 229425.94 Other income
Subsidy
Government
Support for
Debt 600000.00 Other income
Financing
Reward
First Upgrade
to Standard in
the Economic 300000.00 - Other income
Development
Zone Reward
Quality Award
Subsidy
(Market 300000.00 - Other income
Regulatory
Bureau)
2024 Grain
Production
and Marketing
298800.00 - Other income
Cooperation
Project
Subsidy
Beijing Grain
and Material
Reserve
Bureau "Oil
Tank
250180.92 250180.91 Other income
Expansion and
Winterization
Renovation
Project"
Subsidy
Tianjin Binhai
New Area
Industrial 222222.24 222222.24 Other income
Technology
Reform and
Page 136 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Previous Period Reported
Item
Amount Amount Item
Park
Construction
Funds and
Scientific and
Technological
Expenditures
2024 Grain
Production
and Marketing
206100.00 - Other income
Cooperation
Project
Subsidy
Subsidy for
Tax Incentive
Policies for
200200.00 - Other income
Key Groups
(January to
November)
Key Sub-
Brand Reward 200000.00 - Other income
Fund
Grain and
Reserve
Bureau
Allocated
149880.00 - Other income
Grain Storage
Facility
Maintenance
Fund
Subsidy for
Expanding
Potato Chip 143820.80 83895.47 Other income
Production
Line Project
Disability-
Related 210972.16 295659.73 Other income
Subsidies
Subsidy for the
Technical
Renovation of
the New 8000
470000.00 Other income
Tons Corn-
based Food
Production
Line Project
Development
261643.00 Other income
Zone
Page 137 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Previous Period Reported
Item
Amount Amount Item
Expansion
Support Bonus
Information
Technology
200686.32 Other income
Monitoring
Equipment
Tieling City
Mayor’s
200000.00 Other income
Quality Award
Bonus
2023 Industry
Revitalization
150000.00 Other income
Zone Policy
Subsidy
Urban Land
101200.00 Other income
Use Tax
Refund
Tianjin Port
Free Trade
Zone
Development
and Reform
Bureau 2020 100000.00 Other income
Tianjin Smart
Manufacturing
Special Fund
(District Level
Portion)
Others 440951.74 406487.71 Other income
Total 18808559.96 13150019.76
X. Risks Related to Financial Instruments
1. Risks of Financial Instruments
The company's main financial instruments include equity investments debt
investments loans accounts receivable accounts payable etc. The primary purpose of
these financial instruments is to finance the company's operations. The company has
various other financial assets and liabilities directly arising from operations such as
accounts receivable and accounts payable.Page 138 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
The primary risks associated with 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 as of the Balance Sheet Date
a. December 31 2024
Measured at
Measured at
Fair Value
Financial Measured at Fair Value
Through Other Total
Asset Item Amortized Cost Through
Comprehensive
Profit or Loss
Income
Cash and
Cash 1417025694.30 1417025694.30
Equivalents
Derivative
Financial 70947839.67 70947839.67
Assets
Accounts
91439895.1391439895.13
Receivable
Other
455148011.66455148011.66
Receivables
Non-
Current
Assets Due 10694166.66 10694166.66
Within One
Year
Other
Current 79380779.05 79380779.05
Assets
b. December 31 2023
Measured at
Measured at
Fair Value
Financial Measured at Fair Value
Through Other Total
Asset Item Amortized Cost Through Profit
Comprehensive
or Loss
Income
Cash and
Cash 1543385751.86 1543385751.86
Equivalents
Derivative
Financial 31684620.00 31684620.00
Assets
Accounts
115780372.55115780372.55
Receivable
Page 139 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Measured at
Measured at
Fair Value
Financial Measured at Fair Value
Through Other Total
Asset Item Amortized Cost Through Profit
Comprehensive
or Loss
Income
Receivables
2502308.902502308.90
Financing
Other
303099589.59303099589.59
Receivables
Other
Equity 20000000.00 20000000.00
Instruments
Non-
Current
Assets Due 22188083.34 22188083.34
Within One
Year
Other
Current 238358924.24 238358924.24
Assets
Other Non-
Current 10390000.00 10390000.00
Assets
2） Book Value of Various Financial Liabilities as of the Balance Sheet Date
a. December 31 2024
Measured at
Fair Value Other
Financial Liability Item Through Financial Total
Profit or Liabilities
Loss
Short-term Borrowings 1311609177.78 1311609177.78
Derivative Financial Liabilities 30979464.00 30979464.00
Accounts Payable 127879265.40 127879265.40
Other Payables 58555373.51 58555373.51
Long-term Borrowings
Non-Current Liabilities Due 532152983.32 532152983.32
Within One Year
b. December 31 2023
Page 140 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Measured at
Fair Value Other
Financial Liability Item Through Financial Total
Profit or Liabilities
Loss
Short-term Borrowings 1163479691.67 1163479691.67
Derivative Financial Liabilities 15805393.88 15805393.88
Bills Payable 82474823.84 82474823.84
Accounts Payable 79618198.78 79618198.78
Other Payables 400000000.00 400000000.00
Long-term Borrowings 298800000.00 298800000.00
Non-Current Liabilities Due 153199763.89 153199763.89
Within One Year
（2） Credit Risk
As of December 31 2024 the maximum credit risk exposure that could cause
financial loss to the company mainly arises from the possibility that the counterparty
may fail to fulfill its obligations leading to losses in the company’s financial assets.Specifically this includes:
The book value of financial assets recognized in the consolidated balance sheet;
for financial instruments measured at fair value the book value reflects its risk exposure
but not the maximum risk exposure. The maximum risk exposure will change as the
fair value fluctuates in the future.To mitigate credit risk the company has established relevant policies to control
credit risk exposure including evaluating the creditworthiness of customers based on
factors such as their financial condition the possibility of obtaining third-party
guarantees credit history and current market conditions. The company sets appropriate
credit periods and implements other monitoring procedures to ensure necessary actions
are taken to recover overdue receivables. Furthermore the company reviews the
recovery status of each receivable as of each balance sheet date to ensure adequate
provisions for bad debts are made for uncollectible amounts. Therefore the
management believes the credit risk undertaken by the company has been significantly
reduced.The company's liquidity funds are held in banks with high credit ratings thus the
credit risk associated with liquidity funds is low.
（3） Liquidity Risk
Page 141 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
When managing liquidity risk the company maintains what the management
considers to be sufficient cash and cash equivalents which are monitored to meet the
company’s operational needs and reduce the impact of cash flow fluctuations. The
management monitors the use of bank borrowings and ensures compliance with loan
agreements.An analysis of the maturity of financial liabilities based on the undiscounted
contract cash flows:
December 31 2024
Item Over 5
Within 1 year 1 to 5 Years Years Total
Short-term
1311609177.781311609177.78
borrowings
Derivative
financial 30979464.00 30979464.00
liabilities
Accounts
124440132.933439132.47127879265.40
payable
Other
58555373.5158555373.51
payables
Long-term
borrowings
Bonds 299250000.00
payable
Non-current
liabilities
532152983.32
due within
one year
（Continuing Table）
December 31 2023
Over Item
Within 1 year 5 1 to 5 Years Total
Years
Short-term
1163479691.671163479691.67
borrowings
Derivative
financial 15805393.88 15805393.88
liabilities
Accounts payable 82474823.84 82474823.84
Other payables 79618198.78 79618198.78
Page 142 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
December 31 2023
Over
Item
Within 1 year 5 1 to 5 Years Total
Years
Long-term
400000000.00400000000.00
borrowings
Bonds payable 298800000.00 298800000.00
Non-current
liabilities due 153199763.89 153199763.89
within one year
（4） Market Risk
Market risk refers to the risk that the fair value or future cash flows of financial
instruments will fluctuate due to changes in market prices. Market risk mainly includes
interest rate risk exchange rate risk and other price risks such as equity instrument
investment price risk.
1）Interest Rate Risk
The company’s interest rate risk primarily arises from bank borrowings and other
financial liabilities. Floating rate financial liabilities expose the company to cash flow
interest rate risk while fixed rate financial liabilities expose the company to fair value
interest rate risk. The company determines the relative proportions of fixed and floating
rate contracts based on the current market environment.As of December 31 2024 the company’s interest-bearing debt includes floating-
rate contracts in RMB amounting to ￥1110000000.00 and fixed-rate contracts in
RMB amounting to ￥1029859177.78.
2） Exchange Rate Risk
The company is exposed to foreign exchange risk primarily due to its business
activities (when income and expenses are settled in currencies other than the company’s
functional currency) and its net investment in foreign subsidiaries. The company faces
foreign exchange risk mainly related to the US dollar. Except for certain subsidiaries
purchasing and selling goods in US dollars the company’s other major business
activities are denominated in RMB. As of December 31 2024 except for the assets or
liabilities denominated in USD as outlined below the company’s assets and liabilities
are denominated in RMB. The foreign exchange risk associated with these foreign
currency-denominated assets and liabilities may affect the company’s operating
performance.Page 143 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Item Ending Balance Beginning Balance
Cash and Cash
87168294.60132735270.36
Equivalents
Other Receivables 16141102.93 60753187.26
The company uses sensitivity analysis techniques to assess the potential impact of
reasonable and possible changes in risk variables on the current period’s profit or loss
or shareholders’ equity. Since risk variables rarely change in isolation and the
correlation between variables significantly affects the final impact of a change in a
specific risk variable the following content is based on the assumption that changes in
each variable are independent.Under the assumption that foreign currency assets and liabilities remain relatively
stable and other variables remain unchanged the potential reasonable changes in
exchange rates could have the following after-tax impact on profit or loss and equity
for the current period:
Ending Foreign Exchange Ending Converted RMB
Item
Currency Balance Rate Balance
Cash and Cash
————87168294.60
Equivalents
- USD 12126244.31 7.1884 87168294.60
Other
————16141102.93
Receivables
- USD 2245437.50 7.1884 16141102.93
（Continuing Table）
Current Period
Item USD Exchange Total Profit/Net Gross Profit/Net Profit
Rate Profit
Increase/(Decrease)
Increase/(Decrease) Increase/(Decrease)
RMB
Depreciation 5% 5165469.88 5165469.88
vs USD
RMB
Appreciation -5% -5165469.88 -5165469.88
vs USD
2. Hedging
（1） Company’s Hedging Activities for Risk Management
Page 144 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Hedged
Qualitative
Relevant Project and Effectiveness Impact of
and
Risk Economic of Expected Hedging
Quantitative
Item Management Relationship Risk Activity
Information
Strategies with Management on Risk
on Hedged
and Goals Hedging Goal Exposure
Risk
Instruments
Hedged
project and
Use of related
Hedged risk
futures hedging
is price
contracts for instruments
volatility Expected
hedging change in
risk mainly risk Effectively
Oilseed purposes to fair value in arising from management mitigates
Hedging avoid market opposite basis risk goal is risk
price direction to
substitute mostly exposure.volatility the change
risk supply- achieved.achieving in market
demand risk
stable prices or
etc.operations. correlated
economic
variables.
（2） The company engages in qualifying hedging activities and applies hedge
accounting
Cumulative fair The impact
Carrying
value hedge Source of of hedge
value related
adjustments hedge accounting
to the hedged
Item included in the effectiveness on the
items and
carrying value of and company’s
hedging
the recognized ineffectiveness financial
instruments
hedged items statements
Types of hedging risks
Commodity
price risk -
79380779.0579380779.05
Other current
assets The
Commodity correlation
price risk - between the -
8572177.288572177.28
Other current hedged items 98071812.06
liabilities and hedging
Exchange rate instruments
risk - Other
35393876.9535393876.95
current
liabilities
Hedge category
Page 145 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Cumulative fair The impact
Carrying
value hedge Source of of hedge
value related
adjustments hedge accounting
to the hedged
Item included in the effectiveness on the
items and
carrying value of and company’s
hedging
the recognized ineffectiveness financial
instruments
hedged items statements
Fair value
hedge -
Derivative 10291362.72
financial
assets
The
Fair value
correlation
hedge -
between the -
Derivative 35393876.95
hedged items 98071812.06
financial
and hedging
assets
instruments
Fair value
hedge -
Derivative 30979464.00
financial
liabilities
（3） The company engages in hedging activities for risk management and
expects to achieve the risk management objectives but has not applied hedge
accounting.Reason for not applying hedge Impact on the financial
Item
accounting statements
Due to market reasons some hedging
Commodity
activities did not achieve the intended 26208622.84
futures hedge
risk hedging objectives
3. Transfer of Financial Assets
（1）Transfer Methods Classification
Transferred
Transferred Derecognition
Transfer Financial Derecognition
Financial Basis for
Met hod Asset Status Asset Nature Judgment
Amount
Accounts Transferred
Bill
Receivable 1376500.00 Derecognized almost all risks
Endorsement
Financing and rewards
Page 146 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Transferred
Transferred Derecognition
Transfer Financial Derecognition
Financial Basis for
Met hod Asset Status Asset Nature Judgment
Amount
Total —— 1376500.00 —— ——
（2）Derecognized Financial Assets due to Transfer
Derecognized
Gain or Loss Related to
Item Transfer Method Financial Asset
Derecognition
Amount
Accounts Bill Endorsement 1376500.00
Receivable
Financing
Total —— 1376500.00
XI. Fair Value Disclosures
1. Fair Value Measurement of Assets and Liabilities at Period
End
Ending Fair Value
Level 3
Level 2
Item Level 1 Fair Fair Fair Value
Value Value Total
Measurem
Measurement Measure
ent
ment
I. Assets Measured at
Fair Value on a
Continuing Basis
(A) Trading
70947839.6770947839.67
Financial Assets
1. Financial Assets
Measured at Fair
70947839.6770947839.67
Value with Changes
in Profit and Loss（ 1 ） Debt
Instruments（ 2 ） Equity
Instruments（ 3 ） Derivative
70947839.6770947839.67
Financial Assets
Page 147 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Ending Fair Value
Level 3
Level 2
Item Level 1 Fair Fair Fair Value
Value Value Total
Measurem
Measurement Measure
ent
ment
2. Financial Assets
Designated at Fair
Value with Changes
in Profit and Loss（ 1 ） Debt
Instruments（ 2 ） Equity
Instruments（ B ） Other Debt
Investments
（C）Other Equity
Instruments（ D ） Investment
Properties（ E ） Biological
Assets
Total Assets
Measured at Fair
70947839.6770947839.67
Value on a
Continuing Basis（ F ） Trading
30979464.0030979464.00
Financial Liabilities
Financial Liabilities
Measured at Fair
30979464.0030979464.00
Value with Changes
in Profit and Loss
- Issued Trading
Bonds
- Derivative
30979464.0030979464.00
Financial Liabilities
- Other
2. Financial
Liabilities
Designated at Fair
Value with Changes
in Profit and Loss
Total Liabilities
Measured at Fair
30979464.0030979464.00
Value on a
Continuing Basis
Page 148 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
2. Determination Basis for Market Price of Level 1 Fair Value
Measurement Items on a Continuing and Non-Continuing
Basis
The Company's Level 1 fair value measurement is based on the public contract
quotations of the futures exchange.XII. Related Parties and Related Transactions
1. Parent Company Information
Parent
Parent Comp
Compa any's
ny's Votin
Shareho g
lding Rights
Parent Company Registered Business Registered Percent Percen
Name Location Nature Capital age in tage in
the the
Compa Comp
ny any（%）（%）
900
Beijing Grain Beijing Investment
million 39.68 39.68
Group Co. Ltd. China Management
RMB
The ultimate controlling party of the company is Beijing State-owned Capital
Operation and Management Co. Ltd.
2. Subsidiary Information
The information about the subsidiaries of the company is detailed in Note 8 Item
1 "Equity in Subsidiaries."
Page 149 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
3. Joint Ventures and Associates Information
The information about the significant joint ventures or associates of the company
is detailed in Note 8 Item 2 "Equity in Joint Ventures or Associates."
4. Other Related Parties
Relationship with the
Other Related Party Name
Company
Controlled by the same
Beijing Guchuan Food Co. Ltd.ultimate controlling party
Controlled by the same
Shanghai Shounong Investment Holding Co. Ltd.ultimate controlling party
Beijing Sugar Industry Tobacco Group Co. Ltd. Controlled by the same
Sugar Business Division ultimate controlling party
Controlled by the same
Beijing Grain Group Co. Ltd.ultimate controlling party
Beijing Shounong Development Co. Ltd. Controlled by the same
ultimate controlling party
Beijing Huayu Food Co. Ltd. Controlled by the same
ultimate controlling party
Beijing Century Chestnut Garden Ecological Controlled by the same
Agriculture Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Changyang Farm Co. Ltd.ultimate controlling party
Beijing Nanjiao Agricultural Production and Controlled by the same
Operation Management Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Ailafa Food Co. Ltd.ultimate controlling party
Beijing Jingtang Shengshi Meilihua Trading Co. Controlled by the same
Ltd. ultimate controlling party
Beijing Beishui Yongxing Aquatic Products Sales Controlled by the same
Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Ershang Jinghua Tea Industry Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Liubiju Food Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Ershang Moqi Zhonghong Food Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Caishu Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Yanqi Yueshengzhai Halal Food Co. Ltd.ultimate controlling party
Beijing Ershang Dahongmen Wurou Lian Food Co. Controlled by the same
Ltd. ultimate controlling party
Page 150 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Relationship with the
Other Related Party Name
Company
Beijing Ershang Muxiangyuan Halal Meat Products Controlled by the same
Co. Ltd. ultimate controlling party
Beijing Shounong Diandao Network E-Commerce Controlled by the same
Co. Ltd. ultimate controlling party
Beijing Shuangtong Huihe Agricultural Technology Controlled by the same
Development Co. Ltd. ultimate controlling party
Beijing Heiliu Animal Husbandry Technology Co. Controlled by the same
Ltd. Food Center ultimate controlling party
Heilongjiang Province Gannan County Shuanghe Controlled by the same
Rice Industry Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Ershang Meat Products Group Co. Ltd.ultimate controlling party
Controlled by the same
Shandong Fukuan Bioengineering Co. Ltd.ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trading Controlled by the same
Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Sanyuan Food Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Yueshengzhai Halal Food Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Guchuan Rice Industry Co. Ltd.ultimate controlling party
Beijing Heiliu Animal Husbandry Technology Co. Controlled by the same
Ltd. ultimate controlling party
Controlled by the same
Beijing Shounong Grain Storage Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Grain Science Research Institute Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Wang Zhihé Food Co. Ltd.ultimate controlling party
Beijing Food Supply Bureau No. 34 Supply Controlled by the same
Department Co. Ltd. ultimate controlling party
Beijing Shounong Food Emergency Guarantee Controlled by the same
Center Co. Ltd. ultimate controlling party
Beijing Shounong Xiangshan Conference Center Controlled by the same
Co. Ltd. ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Controlled by the same
Management Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Shounong Commercial Chain Co. Ltd.ultimate controlling party
Controlled by the same
Hebei Anping Dahongmen Food Co. Ltd.ultimate controlling party
Controlled by the same
Kaifeng Dahongmen Meat Products Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Jingliang Biotechnology Group Co. Ltd.ultimate controlling party
Page 151 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Relationship with the
Other Related Party Name
Company
Controlled by the same
Beijing Xing Shishang Trading Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Shounong Food Group Co. Ltd.ultimate controlling party
Controlled by the same
Hebei Luanping Huadu Food Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Cailanzi Group Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Shoucheng Shanshui Real Estate Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Baijia Yi Food Co. Ltd.ultimate controlling party
Controlled by the same
Hebei Sanyuan Food Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Beifang Jingtang Yangjiu Sales Co. Ltd.ultimate controlling party
Beijing Haijun Xing Aquatic Products Food Co. Controlled by the same
Ltd. ultimate controlling party
Beijing Liubiju Food Co. Ltd. Huairou Brewing Controlled by the same
Factory ultimate controlling party
Controlled by the same
Beijing Lanfeng Vegetable Distribution Co. Ltd.ultimate controlling party
Controlled by the same
Tianjin Xincheng Kangda Pharmaceutical Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Jingliang Taiyu Real Estate Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Zhangxin Grain Storage Co. Ltd.ultimate controlling party
Beijing Haidian Xijiao Grain and Oil Supply Station Controlled by the same
Co. Ltd. ultimate controlling party
Beijing Jingmen Liangshi State-Owned Assets Controlled by the same
Operation Management Co. Ltd. ultimate controlling party
Beijing Sanyadian Grain Storage Warehouse Co. Controlled by the same
Ltd. ultimate controlling party
Beijing Jingdu Jingu Grain Purchase and Sales Co. Controlled by the same
Ltd. ultimate controlling party
Controlled by the same
Beijing Taoshan Grain Storage Co. Ltd.ultimate controlling party
Beijing Longqing Xiadu Military Food Supply Co. Controlled by the same
Ltd. ultimate controlling party
Controlled by the same
Beijing Shounong Food Group Finance Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Shenghua Sihé Asset Management Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Desheng Hotel Co. Ltd.ultimate controlling party
Page 152 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Relationship with the
Other Related Party Name
Company
Beijing Shounong Consumption Assistance and Controlled by the same
Double Innovation Center Co. Ltd. ultimate controlling party
Beijing Shounong Commercial Chain Co. Ltd. Controlled by the same
Yanqing Branch ultimate controlling party
Controlled by the same
Beijing Shounong Xiangshan Commercial Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Beijiao Farm Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Yanqing Farm Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Jingtang Dingsheng Trading Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Jingliang E-Commerce Co. Ltd.ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co. Controlled by the same
Ltd. Feed Branch ultimate controlling party
Hebei Shounong Modern Agricultural Technology Controlled by the same
Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Huazhong Material Co. Ltd.ultimate controlling party
Controlled by the same
Wang Zhihé (Fujian) Food Co. Ltd.ultimate controlling party
Beijing Shounong Animal Husbandry Development Controlled by the same
Co. Ltd. ultimate controlling party
Beijing Shounong Animal Husbandry Development Controlled by the same
Co. Ltd. ultimate controlling party
Controlled by the same
Beijing Grain Co. Ltd.ultimate controlling party
Beijing Shounong Animal Husbandry Development Controlled by the same
Co. Ltd. Xingtai Branch ultimate controlling party
Controlled by the same
Beijing Runyu Real Estate Development Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Taiyu Property Management Co. Ltd.ultimate controlling party
Beijing Xinderun Hotel Management Co. Ltd. Controlled by the same
Fresh Supermarket First Branch ultimate controlling party
Controlled by the same
Beijing Jingliang Green Valley Trading Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Liubiju Huairou Food Co. Ltd.ultimate controlling party
Beijing Dahongmen Grain Storage Warehouse Co. Controlled by the same
Ltd. ultimate controlling party
Controlled by the same
Beijing Nanyuan Vegetable Oil Plant Co. Ltd.ultimate controlling party
Controlled by the same
Beijing Grain Group Co. Ltd.ultimate controlling party
Page 153 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Relationship with the
Other Related Party Name
Company
Beijing Ershang Group Co. Ltd. Kangtai Culture Controlled by the same
Branch ultimate controlling party
5. Related Party Transactions
（1）Purchase and Sale of Goods Provision and Receipt of
Services
Purchase of Goods/Receipt of Services：
Current Approved Exceeded
Related Previous
Related Period Transaction Transaction
Transaction Period Amount
Party Amount Limit Limit
Content (CNY)
(CNY) (CNY) (Yes/No)
Beijing
Guchuan Purchase of
14450217.76 1800.00 No 14292852.94
Food Co. goods
Ltd.Shanghai
Shounong
Purchase of
Investment 55530880.00 1200.00 Yes 539708185.60
goods
Holding
Co. Ltd.Other
Purchase of
related 4274096.76 Yes 5247471.99
goods
units
Other
Receipt of
related 116255.16 580.00 No 720000.00
services
units
Sale of Goods/Provision of Services：
Related Current Period Previous
Related Party Transaction Amount Period Amount
Content (CNY) (CNY)
Shanghai Shounong Investment Sale of
311641692.68431726713.75
Holding Co. Ltd. goods
Hebei Shounong Modern Sale of
17871902.0718014186.33
Agricultural Technology Co. Ltd. goods
Page 154 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Related Current Period Previous
Related Party Transaction Amount Period Amount
Content (CNY) (CNY)
Hebei Luanping Huadu Food Co. Sale of
88182730.2141460731.02
Ltd. goods
Beijing Sanyuan Seed Industry
Sale of
Technology Co. Ltd. Feed 58393255.17 57986292.75
goods
Branch
Beijing Wang Zhihé Food Co. Sale of
13829319.3722972286.89
Ltd. goods
Beijing Shounong Consumption
Sale of
Assistance and Double Innovation 8722272.45 10551761.44
goods
Center Co. Ltd.Beijing Shounong Animal
Sale of
Husbandry Development Co. 5980427.56
goods
Ltd.Beijing Jingliang Dongfang Grain Sale of
2936536.674599856.82
and Oil Trading Co. Ltd. goods
Beijing Food Supply Bureau No. Sale of
2546073.082470489.49
34 Supply Department Co. Ltd. goods
Beijing Wuhuan Shuntong Supply Sale of
2141115.901655185.55
Chain Management Co. Ltd. goods
Beijing Zhangxin Grain Storage Sale of
1953412.401873412.84
Co. Ltd. goods
Sale of
Beijing Baijia Yi Food Co. Ltd. 1907018.32 2949855.06
goods
Beijing Jingdu Jingu Grain Sale of
1736146.781582317.43
Purchase and Sales Co. Ltd. goods
Beijing Shounong Animal
Sale of
Husbandry Development Co. 1820322.38
goods
Ltd. Xingtai Branch
Beijing Guchuan Rice Industry Sale of
1377817.4576715.60
Co. Ltd. goods
Beijing Haidian Xijiao Grain and Sale of
1324036.683683775.23
Oil Supply Station Co. Ltd. goods
Hebei Anping Dahongmen Food Sale of
753718.30990192.64
Co. Ltd. goods
Beijing Shounong Development Sale of
585779.12630970.43
Co. Ltd. goods
Beijing Lanfeng Vegetable Sale of
505685.23434845.88
Distribution Co. Ltd. goods
Beijing Shounong Xiangshan Sale of
342868.3185412.85
Conference Center Co. Ltd. goods
Beijing Longqing Xiadu Military Sale of
277431.20409541.28
Food Supply Co. Ltd. goods
Sale of
Beijing Guchuan Food Co. Ltd. 251753.39 467677.57
goods
Sale of
Beijing Ailafa Food Co. Ltd. 233097.82 262055.00
goods
Page 155 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Related Current Period Previous
Related Party Transaction Amount Period Amount
Content (CNY) (CNY)
Sale of
Other related units 1202072.47 10772507.16
goods
Shanghai Shounong Investment Provision
3837338.6116755090.46
Holding Co. Ltd. of services
Beijing Shounong Food Group Provision
1646403.2111438400.93
Co. Ltd. of services
Provision
Other related units 49397.36
of services
Explanation of the purchase and sale of goods provision and receipt of services: The
transaction prices are based on the prices charged for the same or similar business
activities between unrelated parties.
（2）Related Lease Transactions
As Lessor：
Lease Income Lease Income
Lease Asset Recognized in Recognized in
Lessee Name
Type Current Period Previous Period
(CNY) (CNY)
Beijing Jingliang E-Commerce
Vehicles 22530.27 22530.26
Co. Ltd.Beijing Grain Group Co. Ltd. Properties 53333333.34
As Lessee：
Lease Payments
Simplified Short-Term Not Included in
Lease and Low-Value Asset Lease Liability
Lease Rent (CNY) Measurement
Lessor Name Asset (CNY)
Type Current Previous Current Previous
Period Period Period Period
Amount Amount Amount Amount
(CNY) (CNY) (CNY) (CNY)
Beijing Grain
Properties 196300.00 792986.42
Group Co. Ltd.Beijing Shounong Properties
Food Emergency
2528669.722408256.88
Guarantee Center
Co. Ltd.Page 156 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Lease Payments
Simplified Short-Term Not Included in
Lease and Low-Value Asset Lease Liability
Lease Rent (CNY) Measurement
Lessor Name Asset (CNY)
Type Current Previous Current Previous
Period Period Period Period
Amount Amount Amount Amount
(CNY) (CNY) (CNY) (CNY)
Beijing Properties
Dahongmen Grain 417672.07
Storage Warehouse
Co. Ltd.Beijing Nanyuan Properties
Vegetable Oil Plant 323809.52
Co. Ltd.Beijing Grain Properties
Science Research
Institute Co. Ltd.
（Continuing Table）
Increase in Right-
Lease Liability Interest
Rent Paid (CNY) of-Use Assets
Expense (CNY)
(CNY)
Cu
rre
Lessor
nt
Name Current Previous Current Previous Previous
Per
Period Period Period Period Period
iod
Amount Amount Amount Amount Amount
A
mo
unt
Beijing
Grain
Group
Co.Ltd.Beijing
Shouno
ng
Food
Emerge
ncy 2756250.00 2625000.00
Guarant
ee
Center
Co.Ltd.Page 157 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Increase in Right-
Lease Liability Interest
Rent Paid (CNY) of-Use Assets
Expense (CNY)
(CNY)
Cu
Lessor rre
Name nt Current Previous Current Previous Previous
Per
Period Period Period Period Period
iod
Amount Amount Amount Amount Amount
A
mo
unt
Beijing
Dahong
men
Grain
Storage 438555.67
Wareho
use
Co.Ltd.Beijing
Nanyua
n
Vegeta 340000.00
ble Oil
Plant
Co.Ltd.Beijing
Grain
Science
Researc
14040000.0028080000.001150310.753970789.04117043974.80
h
Institut
e Co.Ltd.
（3）Key Management Personnel Remuneration
Item Current Period Previous Period Amount
Amount
Key Management Personnel
8495700.0010745600.00
Remuneration
（4）Other Related Party Transactions:
Page 158 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Related Current Period Previous
Related Party Transaction Amount Period Amount
Content (CNY) (CNY)
Beijing Shounong Food Group Interest Income
7046721.435553229.60
Financial Co. Ltd.Beijing Shounong Food Group Interest Expense
2610416.67
Financial Co. Ltd.Beijing Guchuan Food Co. Ltd. Trademark Usage Fee 1946502.22 2168860.67
Beijing Guchuan Rice Industry Trademark Usage Fee
200353.23148171.96
Co. Ltd.Beijing Jingliang Dongfang Grain Trademark Usage Fee
1439.811205.83
and Oil Trading Co. Ltd.
6. Receivables and Payables from Related Parties and
Unsettled Items
（1）Receivables
Beginning Balance
Ending Balance (CNY)
(CNY)
Project Related Bad Bad
Name Party Debt Debt
Book Balance Book Balance
Provisi Provisi
on on
Beijing
Shounong
Cash Food Group 840710693.25 890056629.88
Financial
Co. Ltd.Shanghai
Prepayment Shounong
s Investment 18949338.60
Holding
Co. Ltd.Accounts Hebei
Receivable Luanping
28001392.073619958.60
Huadu Food
Co. Ltd.Accounts Beijing
Receivable Sanyuan
Seed
6108044.612271574.62
Industry
Technology
Co. Ltd.Page 159 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Balance
Ending Balance (CNY)
(CNY)
Project Related Bad Bad
Name Party Debt Debt
Book Balance Book Balance
Provisi Provisi
on on
Feed
Branch
Accounts Hebei
Receivable Shounong
Modern
1945602.361047816.96
Agricultural
Technology
Co. Ltd.Accounts Beijing
Receivable Shounong
Consumptio
n Assistance
371250.00399500.00
and
Innovation
Center Co.Ltd.Accounts Beijing
Receivable Shounong
Animal
Husbandry
332181.38
Developme
nt Co. Ltd.Xingtai
Branch
Accounts Beijing
Receivable Jingliang
Dongfang
319534.75212077.75
Grain and
Oil Trading
Co. Ltd.Accounts Beijing
Receivable Baijia Yi
160250.00228000.00
Food Co.Ltd.Accounts Hebei
Receivable Anping
Dahongmen 156000.00 86000.00
Food Co.Ltd.Accounts Beijing
Receivable Zhangxin 119717.50 99000.00
Grain
Page 160 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Balance
Ending Balance (CNY)
(CNY)
Project Related Bad Bad
Name Party Debt Debt
Book Balance Book Balance
Provisi Provisi
on on
Storage Co.Ltd.Accounts Beijing
Receivable Lanfeng
Vegetable 26000.00 36765.00
Distribution
Co. Ltd.Accounts Beijing
Receivable Guchuan
24012.00
Food Co.Ltd.Accounts Beijing
Receivable Ershang
Meat
17075.0013200.00
Products
Group Co.Ltd.Accounts Beijing
Receivable Shounong
Didao
10468.0053886.00
Network E-
Commerce
Co. Ltd.Accounts Shanghai
Receivable Shounong
Investment 677093.11
Holding
Co. Ltd.Accounts Beijing
Receivable Sanyuan 112290.00
Food Co.Ltd.Accounts Beijing
Receivable Food
Supply
Bureau No. 67680.00
34 Supply
Department
Co. Ltd.Accounts Kaifeng
Receivable Dahongmen 64500.00
Meat
Page 161 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning Balance
Ending Balance (CNY)
(CNY)
Project Related Bad Bad
Name Party Debt Debt
Book Balance Book Balance
Provisi Provisi
on on
Products
Co. Ltd.Accounts Beijing
Receivable Ershang
Dahongmen 477.00
Five Meat
Union Food
Co. Ltd.Other Beijing
Receivables Guchuan
Rice 50000.00
Industry
Co. Ltd.
（2）Payables
Beginning
Project Ending Balance
Related Party Balance
Name (CNY)
(CNY)
Accounts Shanghai Shounong Investment
845410.83
Payable Holding Co. Ltd.Accounts
Beijing Guchuan Food Co. Ltd. 275504.58 464000.00
Payable
Accounts Beijing Shounong Grain Reserve 720000.00
Payable Co. Ltd.Accounts Beijing Shounong Development 559500.00
Payable Co. Ltd.Accounts Beijing Sugar and Wine Group 3763.10
Payable Co. Ltd.Accounts Beijing Ershang Meat Products 3633.06
Payable Group Co. Ltd.Beijing Nanjiao Agricultural
Accounts
Production Management Co. 410.00
Payable
Ltd.Accounts Beijing Ershang Dahongmen 96.79
Payable Five Meat Union Food Co. Ltd.Other Beijing Ershang Group Co. Ltd. 210.00
Payables Kangtai Culture Division
Other
Beijing Grain Group Co. Ltd. 3652500.00 3456200.00
Payables
Other Beijing Jingliang E-Commerce
16972.8042432.00
Payables Co. Ltd.Page 162 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Beginning
Project Ending Balance
Related Party Balance
Name (CNY)
(CNY)
Other Shanghai Shounong Investment 188422.48
Payables Holding Co. Ltd.Contract Beijing Shuangtong Huihe
Liabilities Agricultural Science and 2201.83
Technology Development Co.Ltd.Contract Shanghai Shounong Investment
13947007.527259750.24
Liabilities Holding Co. Ltd.Other Beijing Shuangtong Huihe
Current Agricultural Science and 198.17
Liabilities Technology Development Co.Ltd.Other
Shanghai Shounong Investment
Current 653377.52
Holding Co. Ltd.Liabilities
XIII. Share-based Payments
The company does not have any share-based payments that need to be disclosed.XIV. Commitments and Contingencies
(1) As of the end of this reporting period the company and its subsidiaries have an
approved guarantee quota of 6.368 billion yuan. The actual guarantees used by the
company and its subsidiaries amount to 1.105 billion yuan which accounts for 35.16%
of the company's latest audited net assets attributable to the parent company. All these
guarantees are between the company and its subsidiaries. The company and its
subsidiaries do not provide guarantees for entities outside the consolidated financial
statements.
(2) The company’s subsidiary Zhejiang Little Prince Food Co. Ltd. (hereinafter
referred to as “Zhejiang Little Prince”) received a civil judgment from the Jinan
Intermediate People’s Court of Shandong Province recently with the case number
(2024) Lu 01 Zhi Min Chu 709 (hereinafter referred to as the “First Instance Judgment”).
According to the first instance judgment Zhejiang Little Prince is required to
compensate the plaintiff Zhejiang Wangwang Food Co. Ltd. for economic losses and
reasonable expenses totaling 20 million yuan. Zhejiang Little Prince has filed an appeal
within the legal timeframe. The first instance judgment has not yet taken effect and the
second instance appeal is currently under review.
(3) The company’s wholly-owned subsidiary Beijing Jingliang Oils Co. Ltd.
(hereinafter referred to as "Jingliang Oils") purchased 6608 tons of sesame from
Page 163 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
MARS FARMER LIMITED a company based in Hong Kong (Chinese name: 火星农
夫公司) with the country of origin being Senegal. The contract amount was 8130360
USD and the full payment has been made. The goods arrived at the port by the end of
December 2024 and the company conducted an inspection of some of the arrived goods
finding discrepancies with the items. The company has developed a litigation plan that
involves both civil and criminal legal actions in mainland China and Hong Kong and
is actively advancing related work making some progress. The company will do its
utmost to recover the losses and protect its legal rights according to the law.XV. Subsequent Events
1. Profit Distribution
The proposed dividend per
10 shares (RMB) 0.18
The dividend per 10 shares
as approved and declared 0.18
(RMB)
The company held the 17th meeting of the 10th board
of directors on March 27 2025 reviewed and approved
the "2024 Profit Distribution Plan" and agreed to
distribute a cash dividend of 0.18 yuan (tax included)
to all shareholders for every 10 shares based on the total
Profit Distribution Plan share capital of 726950251.00 shares on December
31 2024 and the proposed cash dividend is
13085104.52 yuan accounting for 50.08% of the net
profit attributable to shareholders of the listed company
in the consolidated statements. There will be no bonus
shares for this profit distribution and no capital reserve
will be used to increase share capital.XVI. Other Important Matters
1. Pension Plans
Pension Plan Overview: The companies under the group including Beijing
Jingliang Food Co. Ltd. Jingliang (Tianjin) Grain and Oil Industry Co. Ltd. Beijing
Guchuan Oil Co. Ltd. Beijing Aisen Greenbao Oil Co. Ltd. Beijing Jingliang Oils
Co. Ltd. Beijing Guchuan Bread and Food Co. Ltd. and Beijing Tianweikang Oil
Adjustment Center Co. Ltd. participate in the pension plan of Beijing Shounong Food
Group Co. Ltd. Each company has established its own implementation rules for the
pension plan. The pension plan is named "Ping An Jinxiu Life Corporate Pension Plan."
Page 164 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
The trustee and account manager are both Ping An Pension Insurance Co. Ltd. and the
custodian is CITIC Bank Co. Ltd.
2. Segment Information
（1）Basis for Determining Reportable Segments and Accounting
Policies
Based on the company's internal organizational structure management
requirements and internal reporting system the company's business operations are
divided into segments such as food processing oilseeds and oil-related operations. The
company’s management regularly evaluates the operating results of these segments to
allocate resources and assess their performance. The segment reporting information is
disclosed based on the accounting policies and measurement standards used by the
management to report to the board and these measurement bases are consistent with
those used in the preparation of the financial statements.
（2）Financial Information of Reportable Segments
Food Inter-Segment
Oilseeds and Oils
Item Processing Eliminations Total (CNY)
(CNY)
(CNY) (CNY)
Operating
842874899.6110493582736.28686492.3711335771143.52
Revenue
Operating
661521207.8010241676574.52665421.5710902532360.75
Cost
Total
934160300.886118873372.05352074366.976699681163.33
Assets
Total
121752012.073420329134.25352074366.973190032238.55
Liabilities
Page 165 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
XVII. Notes to the Financial Statements of the Parent
Company
1. Other Receivables
Item Ending Balance Beginning Balance
Interest Receivable
Dividend Receivable 18000000.00
Other Receivables 930000000.00 950000000.00
Total 948000000.00 950000000.00
（1）Other Receivables
1) Receivables by Age
Age Ending Balance Beginning Balance
Within 1 Year 930000000.00 800000000.00
1 to 2 Years 29000000.00
2 to 3 Years 121000000.00
Total 930000000.00 950000000.00
2) Receivables by Nature
Nature Ending Balance Beginning Balance
Inter-company
930000000.00950000000.00
Receivables
Total 930000000.00 950000000.00
3) Bad Debt Provision
End of Period
Provision for Bad
Book Value
Debts
Category Expected
Book Value
Ratio Amou Credit
Amount
(%) nt Loss Rate
(%)
Individual
Bad Debt
Page 166 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
End of Period
Provision for Bad
Book Value
Debts
Category Expected Book Value
Ratio Amou Credit
Amount
(%) nt Loss Rate
(%)
Provision for
Other
Receivables
Bad Debt
Provision for
Other
Receivables
930000000.00100.00930000000.00
Grouped by
Credit Risk
Characteristic
s
Total 930000000.00 —— —— 930000000.00
（Continuing Table）
Beginning of Period
Provision for Bad
Book Value
Debts
Expec
Category ted
Book Value
Ratio Credit
Amount Amount
(%) Loss
Rate
(%)
Other
receivables
for which
provision for
bad debts is
made
individually
Other
receivables
for which
provision for
bad debts is 950000000.00 100.00 950000000.00
made based
on credit risk
characteristi
cs grouping
Total 950000000.00 —— —— 950000000.00
Page 167 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
4) Receivables by Debtor Top 5 Receivables by Debtor at End of Period:
Proportio
n of Total
Debtor Receivab
Book Value Age Other
Bad Debt
Name le Nature Receivabl Provisiones（%）
Beijing
Jinglian Within 3
Loan 930000000.00 100.00
g Food Years
Co.Ltd.Total —— 930000000.00 —— 100.00
2. Long-term Equity Investments
（3）The situation of Long-term Equity Investments
* Long-term Equity Investment Classification:
Curr
ent
Peri Current Period
Project Beginning Balance Ending Balance
od Decrease
Incr
ease
Investment
in 2625657283.19 284858000.00 2340799283.19
Subsidiaries
Total 2625657283.19 284858000.00 2340799283.19
* Subsidiary Details
Impairm
Current
Invested Beginning Current Period Ending
ent Ending
Period Balance Provisio ImpairmenUnit Balance Decrease
Increase n for the t Provision
Period
Beijing
Jinglia
2336639964.05284858000.002051781964.05
ng
Food
Page 168 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Impairm
Current ent Ending
Invested Beginning Current Period Ending
Period
Unit Balance Decrease Balance
Provisio Impairmen
Increase n for the t Provision
Period
Co.Ltd.Zhejian
g Little
Prince 249017319.14 249017319.14
Food
Co. Ltd.Jinglian
g
(Yangp
u) Grain 6500000.00 6500000.00
and Oil
Industry
Co. Ltd.Jinglian
g
(Caofei
dian)
Agricult 25500000.00 25500000.00
ural
Develop
ment
Co. Ltd.Jinglian
g
(Beijing
) Food
Marketi 8000000.00 8000000.00
ng
Manage
ment
Co. Ltd.Total 2625657283.19 284858000.00 2340799283.19
3. Operating Revenue and Operating Costs
1) Operating Revenue and Costs
Page 169 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Current Period Previous Period
Item
Revenue Cost Revenue Cost
Other
2448223.41340195.5612240221.13341162.52
Business
Total 2448223.41 340195.56 12240221.13 341162.52
4. Investment Income
Current
Previous
Source Period
Period Amount
Amount
Investment income from long-term equity
35870982.04300509614.85
investments accounted for using the cost method.Investment income generated from the disposal of
27829877.46
long-term equity investments.Total 63700859.50 300509614.85
XVIII. Supplementary Information
1. Non-recurring Gain and Loss Details
Item Amount Description
Non-current asset disposal gains and losses
including the reversal of asset impairment 31865.78
provisions
Government subsidies recognized in the
current period but not closely related to normal
business operations and those that have a 8762599.21
continuous impact on the company's profit and
loss
Fair value changes of financial assets and
liabilities held by non-financial enterprises as
well as gains and losses from the disposal of
financial assets and liabilities excluding
effective hedging activities related to the
company's normal business operations
Occupation fees for funds collected from non-
financial enterprises
Profit or loss on entrusting others to invest or
manage assets
Profit or loss from external entrusted loans
Loss of assets due to force majeure such as
natural disasters
Page 170 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
Item Amount Description
Reversal of impairment charges for receivables
that are tested separately for impairment
The investment cost of the subsidiary associate
and joint venture is less than the income
generated by the fair value of the investee's
identifiable net assets when the investment is
obtained
Net profit or loss for the period from the
beginning of the period to the date of
consolidation of subsidiaries arising from a
business combination under the same control
Gains or losses on the exchange of non-
monetary assets
Debt restructuring gains and losses
One-time expenses incurred by the enterprise
due to the cessation of relevant business
activities such as expenses for the placement
of employees etc
One-time impact on profit or loss for the
current period due to adjustments to laws and
regulations such as taxation and accounting
Share-based payment expenses recognized at
one time due to cancellation or modification of
the equity incentive plan
For cash-settled share-based payments gains
or losses arising from changes in the fair value
of employee remuneration payable after the
vesting date
Gains and losses arising from changes in the
fair value of investment real estate that are
subsequently measured using the fair value
model
Proceeds from transactions where the price of
the transaction is clearly unfair
Profit or loss arising from contingencies
unrelated to the normal operation of the
company
Custody fee income obtained from entrusted
1646403.21
operations
Other non-operating income and expenses
5685633.69
other than those listed above
Other profit or loss items that meet the
definition of non-recurring profit or loss
Less: Income tax impact 621365.26
Impact of Minority Interest (After-Tax) 470474.75
Total 15034661.88 ——
Page 171 of 172Hainan Jingliang Holdings Co. Ltd. 2024 Financial Statement Notes
2. Return on Equity and Earnings per Share
Weighted Average Earnings Per Share
Report Period Profit Return on Equity Diluted
（%） Basic EPS EPS
Net profit attributable to ordinary
0.830.040.04
shareholders of the company
Deducting non-recurring gains and
losses net profit attributable to
0.350.020.02
ordinary shareholders of the
company
Hainan Jingliang Holdings Co. Ltd.March 29 2025
Page 172 of 172
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