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