HAINAN JINGLIANG
HOLDINGS CO. LTD.SEMI-ANNUAL
FINANCIAL REPORT
2024
August 2024HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL FINANCIAL REPORT 2024
This Summary has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.Part I Financial Report
Independent auditor’s modified opinion:
□ Applicable □ Not applicable
2024 Semi-Annual Financial Report is not audited by Independent auditor.
Part I I Financial Statement
The unit of financial statements in the financial notes is: Yuan
Editor: Hainan Jingliang Holdings Co. Ltd1.Consolidated Balance Sheet
June 302024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items 30 June 2024 31 December 2023
Current Assets:
Monetary capital 1181398242.40 1543385751.86
Transactional financial assets
Derivative financial assets 31223815.72 31684620.00
Notes receivable
Accounts receivable 109483882.36 115780372.55
Receivables financing 2442328.82 2502308.90
Prepayment 267344829.04 87352234.48
Other receivables 386904030.80 303099589.59
Including: Interest receivable
Dividends receivable
Inventory 2186861592.97 2041860143.11
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 22188083.34
Other current assets 420569321.21 312336642.43
Total current assets 4586228043.32 4460189746.26
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 265798072.29 254922645.41
Other equity instruments investment 20000000.00 20000000.00
Other non-current financial assets
Investment property 19051808.01 20045503.77
Fixed assets 917556139.25 939548012.91
Construction in process 47201479.97 59094902.29
Productive biological assets
Oil-and-gas assets
Right-of-use assets 89304522.73 99232303.78Intangible assets 404165474.64 412676845.93
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 191394422.51 191394422.51
Long-term deferred expenses 17397533.45 17655736.82
Deferred income tax assets 5452387.35 8798915.22
Other non-current assets 13709866.66 13223950.00
Total non-current assets 1991031706.86 2036593238.64
Total assets 6577259750.18 6496782984.90
Current liabilities:
Short-term borrowings 1036717261.11 1163479691.67
Transactional financial liabilities
Derivative financial liabilities 15805393.88
Notes payable
Accounts payable 70607024.80 82474823.84
Account collected in advance 1800138.12 1075801.34
Contract liabilities 619028078.42 411033219.08
Employee payroll payable 16367355.08 32702558.07
Taxes payable 11264377.79 11577392.47
Other payables 71848286.50 79618198.78
Including: Interest payable 20000000.00 21082795.47
Dividends payable 3213342.90 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year 119091031.53 175940949.28
Other current liabilities 58741540.34 60439400.68
Total current liabilities 2005465093.69 2034147429.09
Non-current liabilities:
Long-term borrowings 530000000.00 400000000.00
Bonds payable 299025000.00 298800000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities 75013784.37 73241742.57
Long-term payables
Long-term payable to employees 5677134.00 5677134.00
Estimated liabilities
Deferred income 58483273.07 62503256.67
Deferred income tax liabilities 53548664.14 47082123.53
Other non-current liabilitiesTotal non-current liabilities 1021747855.58 887304256.77
Total liabilities 3027212949.27 2921451685.86
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1681808108.07 1681808108.07
Less: treasury stock
Other comprehensive income 1512111.69 1369980.92
Special reserves
Surplus reserves 129819690.00 129819690.00
Undistributed profit 600000561.70 627555511.45
Owner's Equity (or shareholder's equity) Attributable to
3140090722.463167503541.44
Shareholders of the Parent Company
Minority equity 409956078.45 407827757.60
Total owners' equity (or shareholders' equity) 3550046800.91 3575331299.04
Total liabilities and owners' equity (or shareholders' equity) 6577259750.18 6496782984.90
Legal Representative:Chunli Wang Chief Financial Officer:Ying Guan Head of Accounting Department: Ling
Cao
2.Balance Sheet of Parent Company
Monetary Unit: RMB Yuan
Items 30 June 2024 31 December 2023
Current Assets:
Monetary capital 338721543.73 23743255.81
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment
Other receivables 910000000.00 950000000.00
Including: Interest receivable
Dividends receivable
Inventory
Including: Data resources
Contract assets
Held-for-sale assetsNon-current assets due within one year
Other current assets 404285.14 976539.93
Total current assets 1249125828.87 974719795.74
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 2340799283.19 2625657283.19
Other equity instruments investment 20000000.00 20000000.00
Other non-current financial assets
Investment property 5027932.91 5198514.17
Fixed assets 5892257.07 5955832.27
Construction in process
Productive biological assets
Oil-and-gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses 444366.61 495639.67
Deferred income tax assets
Other non-current assets 3168200.00 2833950.00
Total non-current assets 2375332039.78 2660141219.30
Total assets 3624457868.65 3634861015.04
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 38896.41
Contract liabilities
Employee payroll payable 170825.08 157166.68
Taxes payable 1046047.51 1016682.06Other payables 31176883.86 32458140.29
Including: Interest payable 20000000.00 21082795.47
Dividends payable 3213342.90 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year 7200000.00 2880000.00
Other current liabilities
Total current liabilities 39648036.03 36566268.61
Non-current liabilities:
Long-term borrowings
Bonds payable 299025000.00 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 299025000.00 298800000.00
Total liabilities 338673036.03 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 2386084900.84 2386084900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 117184317.41 117184317.41
Undistributed profit 55565363.37 69275277.18
Total owners' equity (or shareholders' equity) 3285784832.62 3299494746.43
Total liabilities and owners' equity (or shareholders'
3624457868.653634861015.04
equity)
3.Consolidated Income Statement
Monetary Unit: RMB Yuan
Amount for the Amount for the prior
Items
current period period
I. Total operating income 5555906994.14 4823234208.18Including: Operating income 5555906994.14 4823234208.18
II. Total operating cost 5531711172.68 4841383397.31
Including: Operating cost 5332015618.17 4630970469.14
Tax and surcharges 12216026.66 11548673.88
Selling expenses 71736656.94 78437823.61
Administration expenses 85740915.84 92898582.21
Research and development expenses 10402383.93 10262799.97
Financial expenses 19599571.14 17265048.50
Including: Interest expenses 28948644.46 25265021.07
Interest income 8925122.62 5832452.30
Add: Other income 9870484.92 6324214.58
Income from investment (Losses shall be filled in with “-”) 10875426.88 7179282.99
Including: income from investment on joint venture and
10875426.887012296.86
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
-9906096.90143869459.30
with “-”)
Credit impairment loss(Losses shall be filled in with “-”) 1779.74 -115984.57
Income from assets impairment(Losses shall be filled in with
130887.98-25186589.63
“-”)
Income from asset disposal (Losses shall be filled in with
23411.62-2209.46
“-”)
III. Operating profit (Losses shall be filled in with “-”) 35191715.70 113918984.08
Add: non-operating income 10604405.63 3903501.36
Less: non-operating expenditure 4779998.99 527980.44
IV. Total profit (Total losses shall be filled in with “-”) 41016122.34 117294505.00
Less: income tax expense 14829283.42 32518022.92
V. Net profit (Net loss shall be filled in with “-”) 26186838.92 84776482.08
(I) Classified by operations continuity
1. Net profit from continuing operations (Net loss shall be filled
26186838.9284776482.08
in with “-”)
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
24058518.0773581795.36
(Net loss shall be filled in with “-”)
2.Minority interest income (Net loss shall be filled in with “-”) 2128320.85 11194686.72
VI. Net of tax from other comprehensive income 142130.77 730651.63
（一）Net of tax from other comprehensive income
142130.77730651.63
attributable to shareholders of the parent company
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
142130.77730651.63
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 142130.77 730651.63
（7）Others
（二） Net of tax from other comprehensive income
attributable to minority shareholder
VII. Total comprehensive income 26328969.69 85507133.71
(I) Total comprehensive income attributable to shareholders of
24200648.8474312446.99
the parent company
(II)Total comprehensive income attributable to minority
2128320.8511194686.72
shareholder
VIII. Earnings per share:
(I) Basic earnings per share 0.03 0.10
(II) Diluted earnings per share 0.03 0.10
Legal Representative:Chunli Wang Chief Financial Officer:Ying Guan Head of Accounting Department: Ling
Cao
4.Income Statement of Parent Company
Monetary Unit: RMB Yuan
Amount for the Amount for the prior
Items
current period period
I. Total operating income 2047313.31 11839311.03
Less：Operating cost 170581.26 170581.26
Tax and surcharges 204491.36 174413.63
Selling expenses
Administration expenses 3150269.36 3410680.07
Research and development expenses
Financial expenses -9722064.50 -5278290.51
Including: Interest expenses 4545000.00
Interest income 14379702.55 5280177.21
Add: Other income 619000.43 2308.28Income from investment (Losses shall be filled in with
28021459.50150814.85
“-”)
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 “-”) 36884495.76 13515049.71
Add: non-operating income 1082795.47
Less: non-operating expenditure 63737.22 5027.46
IV. Total profit (Total losses shall be filled in with “-”) 37903554.01 13510022.25
Less: income tax expense
V. Net profit (Net loss shall be filled in with “-”) 37903554.01 13510022.25
1. Net profit from continuing operations (Net loss shall be filled
37903554.0113510022.25
in with “-”)
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 37903554.01 13510022.25
VIII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share5.Consolidated Cash Flow Statement
Monetary Unit: RMB Yuan
Amount for the Amount for the prior
Items
current period period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 6226529356.93 5564355172.38
Tax Refund Receipts 3062799.77 3808897.99
Other Cash Receipts Concerning Operating Activities 1514916662.94 1023812040.53
Subtotal of Cash Inflows from Operating Activities 7744508819.64 6591976110.90
Cash Paid for Purchase of Goods and Accepting Services 6051673881.18 5631656925.26
Cash Paid to and for Employees 164888216.07 172318440.15
Taxes and Fees Paid 58944562.42 125238280.62
Other Cash Paid Concerning Operating Activities 1690067582.06 800112010.66
Subtotal of Cash Outflows from Operating Activities 7965574241.73 6729325656.69
Net Cash Flows from Operating Activities -221065422.09 -137349545.79
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 586103235.55
Cash Receipts from Returns on Investments
Net Cash from Disposal of Fixed Assets Intangible Assets and Other
90476.6031605.00
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 90476.60 586134840.55
Cash Paid for Purchase and Construction of Fixed Assets Intangible
19760482.9643140379.93
Assets and Other Long-term Assets
Cash Paid for Investments 145000000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities 1747611.95
Subtotal of Cash Outflows from Investment Activities 21508094.91 188140379.93
Net Cash Flows from Investment Activities -21417618.31 397994460.62
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Including: Cash Received by Subsidiaries Absorbing the Investment
from Minority Shareholders
Cash Receipts from Borrowings 1037734559.68 1818217067.44
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities 1037734559.68 1818217067.44
Cash Paid for Repayment of Debts 1087734559.68 1331768577.44Cash Paid for Distribution of Dividends Profits or Repayment of
70758033.3347016149.43
Interests
Including: Dividends and Profits Paid by Subsidiaries to Minority
Shareholders
Other Cash Paid Concerning Financing Activities 13486733.94 574077.78
Subtotal of Cash Outflows from Financing Activities 1171979326.95 1379358804.65
Net Cash Flows from Financing Activities -134244767.27 438858262.79
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
6088920.99724617.12
Equivalents
V. Net Increase in Cash and Cash Equivalents -370638886.68 700227794.74
Add: Opening Balance of Cash and Cash Equivalents 1540639079.95 551439110.07
VI. Closing Balance of Cash and Cash Equivalents 1170000193.27 1251666904.81
6.Cash Flow Statement of Parent Company
Monetary Unit: RMB Yuan
Amount for the Amount for the prior
Items
current 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 1683080.27 5610597.06
Subtotal of Cash Inflows from Operating Activities 3428267.67 17735302.05
Cash Paid for Purchase of Goods and Accepting Services 635.30
Cash Paid to and for Employees 972050.75 1499566.85
Taxes and Fees Paid 448876.77 324239.47
Other Cash Paid Concerning Operating Activities 2218764.01 164251396.82
Subtotal of Cash Outflows from Operating Activities 3640326.83 166075203.14
Net Cash Flows from Operating Activities -212059.16 -148339901.09
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 324858000.00
Cash Receipts from Returns on Investments 42606181.72 150150814.85
Net Cash from Disposal of Fixed Assets Intangible Assets and
3444.00800.00
Other 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 367467625.72 150151614.85
Cash Paid for Purchase and Construction of Fixed Assets
663805.84459058.44
Intangible Assets and Other Long-term Assets
Cash Paid for Investments
Net Cash Paid for obtaining Subsidiaries and Other Business UnitsOther Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 663805.84 459058.44
Net Cash Flows from Investment Activities 366803819.88 149692556.41
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Cash Receipts from Borrowings
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities
Cash Paid for Repayment of Debts
Cash Paid for Distribution of Dividends Profits or Repayment of
51613472.80
Interests
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities 51613472.80
Net Cash Flows from Financing Activities -51613472.80
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents 314978287.92 1352655.32
Add: Opening Balance of Cash and Cash Equivalents 23743255.81 15852894.21
VI. Closing Balance of Cash and Cash Equivalents 338721543.73 17205549.53
7.Consolidated Statement of Changes in Equity
Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Other equity Other Total
Items instruments Less: compr Spec
Undistri sharehol
Paid-in Capital Minorittreas ehensi ial Surplus ders'
buted Subtotal y equity
capital Prefer Perp Ot reserve ury ve reser reserve profit equities
red etual her stock incom ve
stock bond s e
I. Year-end 35753
7269501681801369129819627555316750407827
balance of last 31299.
251.008108.07980.92690.00511.453541.44757.60
year 04
Add: changes
in accounting
policies
Correction of
prior period
errors
Merger of
enterprises
under the
same control
Other
II. Balance at 35753
7269501681801369129819627555316750407827
beginning of 31299.
251.008108.07980.92690.00511.453541.44757.60
current year 04III. Increases
and decreases
of current - - -
1421321283
period 275549 274128 25284
0.7720.85
(Decrease 49.75 18.98 498.13
shall be filled
in with “-”)
(I) Total
142132405852420062128326328
comprehensiv
0.7718.0748.8420.85969.69
e income
(II)
Investment of
shareholders
and capital
reduction
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
(III) - - -
Distribution 516134 516134 51613
of profits 67.82 67.82 467.82
1. Withdrawal
of surplus
reserves
2. Distribution - - -
to 516134 516134 51613
shareholders 67.82 67.82 467.82
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
earnings5.Other
comprehensiv
e 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 35500
7269501681801512129819600000314009409956
balance of 46800.
251.008108.07111.69690.00561.700722.46078.45
current period 91
Amount of Last Period
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Other equity
Total
Items instruments Less: Other Spe
Undistri sharehol
Paid-in Capital Minority treasu compre cial Surplus ders'
buted Subtotal equity
capital Preferr Perp Ot reserve ry hensive rese reserve equities profit
ed etual her stock income rve
stock bond s
I. Year-end
726950167867100571221225329043061661401048346270
balance of last
251.008350.9520.50436.98675.62435.05412.239847.28
year
Add: changes
in accounting
policies
Correction of
prior period
errors
Merger of
enterprises
under the
same control
Other
II. Balance at
726950167867100571221225329043061661401048346270
beginning of
251.008350.9520.50436.98675.62435.05412.239847.28
current year
III. Increases
and decreases
of current
730657358177431244111946855071
period
1.6395.366.9986.7233.71
(Decrease
shall be filled
in with “-”)
(I) Total
730657358177431244111946855071
comprehensiv
1.6395.366.9986.7233.71
e income
(II) Investment
of
shareholders
and capital
reduction
1. Common
equity
invested by
shareholders2. Capital
invested by
other equity
instruments
holders
3. The amount
of shares
recorded into
the
shareholder's
equity
4. Others
(III)
Distribution of
profits
1. Withdrawal
of surplus
reserves
2. Distribution
to
shareholders
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
comprehensiv
e 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
726950167867173631221226064863135973412243354821
balance of
251.008350.9572.13436.98470.98882.04098.956980.99
current period8.Statement of Changes in Equity of Parent Company
Monetary Unit: RMB Yuan
Current Amount
Other equity
Less: Other
Items instruments
Paid-in Capital treasu compreh Special Surplus Undistribut
Subtotal
capital Prefer Perpet Ot reserve ry ensive reserve reserve ed profit
red ual her stock income
stock bond s
I. Year-end balance 726950 2386084 11718431 69275277. 329949474
of last year 251.00 900.84 7.41 18 6.43
Add: changes in
accounting policies
Correction of prior
period errors
Other
II. Balance at
72695023860841171843169275277.329949474
beginning of current
251.00900.847.41186.43
year
III. Increases and
decreases of current - -
period (Decrease 13709913. 13709913.8
shall be filled in 81 1
with “-”)
(I) Total
37903554.37903554.0
comprehensive
011
income
(II) Investment of
shareholders and
capital reduction
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
--
(III) Distribution of
51613467.51613467.8
profits
822
1. Withdrawal of
surplus reserves
--
2. Distribution to
51613467.51613467.8
shareholders
822
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 726950 2386084 11718431 55565363. 328578483
of current period 251.00 900.84 7.41 37 2.62
Amount of Last Period
Amount of Last Period
Other equity
Items instruments
Other
Less:
Paid-in Capital comprehe Special Surplus Undistribute
treasur Subtotal
capital Prefer Perpe reserve nsive reserve reserve d profit
Oth y stock
red tual income
ers
stock bond
-
I. Year-end balance 726950 2382994 1094870 297995623
239475977
of last year 251.00 900.84 64.39 8.34.89
Add: changes in
accounting policies
Correction of prior
period errors
Other
II. Balance at -
72695023829941094870297995623
beginning of current 239475977
251.00900.8464.398.34
year .89
III. Increases and
decreases of current
13510022.13510022.2
period (Decrease
255
shall be filled in
with “-”)
(I) Total
13510022.13510022.2
comprehensive
255
income
(II) Investment of
shareholders and
capital reduction
1. Common equity
invested by
shareholders
2. Capital invested
by other equity
instruments holders
3. The amount of
shares recorded into
the shareholder's
equity4. Others
(III) Distribution of
profits
1. Withdrawal of
surplus reserves
2. Distribution to
shareholders
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 726950 2382994 1094870 299346626
225965955
of current period 251.00 900.84 64.39 0.59.64Hainan Jingliang Holdings Co. Ltd.Notes to the Semi-Annual of 2024 Financial Statements
(Unless otherwise stated the amount unit is RMB Yuan)
I.Basic Information of the Company
1. Place of incorporation form of organization and head office address
Hainan Jingliang Holdings Co. Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang
Holdings") is established in accordance with the Hainan Provincial People's Government General Office QFBH
(1992) No.1 approved by QY (1992) SGZ No. 6 Document of the People's Bank of Hainan Province and re-
registered by Hainan Pearl River Enterprise Company on January 11 1992. The Company issued 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 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 ofHainan 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 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 thecompany 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.As of June 30 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
August 26th 2024.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 materialmatters 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 the characteristics of actual production and operation and the
provisions of relevant accounting standards for business enterprises the Company and its subsidiaries have
formulated a number of specific accounting policies and accounting estimates for transactions and events such asrevenue recognition. For details please refer to the descriptions in Note Ⅲ 27 “Revenue".
1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to the
requirements of the Accounting Standards for Business Enterprises and their application guidelines explanations
and other relevant provisions (collectively referred to as "ASBE") and truly and completely reflect the Company's
financial status operating results cash flow and other relevant information.In addition this financial report has been prepared with reference to the presentation and disclosurerequirements of the “Rules Governing the Preparation of Disclosure of Information by Companies Offering PublicSecurities No. 15 - General Provisions on Financial Reporting” (Revised 2023) issued by the Securities and Futures
Commission.
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 a 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 andselection basis are disclosed as follows:
Disclosure matters involve the judgment
Methods of determining materiality standards and selection basis
of materiality standards
Impairment test made on individual Impairment test made on individual accounts receivables accounting
accounts receivable with significant over 10% as total provision for various types of bad debts
amounts. receivables and amounts exceeding 5 million yuan
Significant bad debt reserve for Individual item recovered or reversed accounting over 10% as total
accounts receivable recovered or amounts for various types of receivables and exceeding 5 million
reversed yuan
Individual write-off amount accounting for over 10% as total
Significant receivables actually written
amounts of various types of bad debts reserve for receivables and
off
amounts exceeding 5 million yuan
Individual contractual liabilities with aging over one year accounting
Significant contractual liabilities with
over 10% of total amount of contractual liabilities and amounts
aging over one year
exceeding 10 million yuan
Significant project under construction Projects with investments exceeding 5 million yuan
Non-wholly owned subsidiaries with individual entity revenue and
Significant non-wholly owned
net profit accounting 10% for items related to the Company's
subsidiaries
consolidated statements
Associated enterprise and joint-venture with net profit share
Significant associated enterprise and
recognized in the current period accounting 5% for items related to
joint-venture.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 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 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 bedistinguished between the individual financial statements and the consolidated financial statements:
In the individual financial statements the sum of the book value of the equity investment held by the Purchaser
prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the initial
investment cost of the investment; Where the equity of the Purchased held before the date of purchase involves
other comprehensive income the other consolidated income associated with the investment is accounted for on the
same basis as the assets or liabilities directly disposed of by the Purchaser (i.e. except for the corresponding share
in the change caused by the acquisition of the net liability or net assets of the defined benefit plan remeasured in
accordance with the equity method the rest is transferred to the current investment income).In the consolidated financial statements the equity of the Purchased held prior to the date of purchase is
remeasured according to the fair value of the equity at the date of purchase and the difference between the fair value
and the carrying value is included in the investment income of the current period; Where the equity of the Purchasee
held before the date of purchase involves other comprehensive income other consolidated income related thereto
shall be accounted for on the same basis as the direct disposal of the relevant assets or liabilities by the Purchaser
(i.e. except for the corresponding share in the change caused by the acquisition of the net liability or net asset of
the defined benefit plan remeasured in accordance with the equity method the rest is converted into the investment
income of the current period to which the acquisition date belongs).
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 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 resultsand cash flows of the subsidiaries increased by consolidation under the same control from the beginning of the
consolidation period to the consolidation date have been appropriately included in the consolidated profit statement
and consolidated cash flow statement and the comparative amount of the consolidated financial statements has been
adjusted at the same time.In the preparation of the consolidated financial statements if the accounting policies or accounting periods
adopted by the subsidiaries are inconsistent with those adopted by the Company necessary adjustments shall be
made to the financial statements of the subsidiaries in accordance with the accounting policies and accounting
periods of the Company. For subsidiaries acquired through business combination under different control the
financial statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of purchase.All significant transaction balances transactions and unrealized profits within the Company are offset at the
time of preparation of the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the
Company for the current period are separately presented as minority shareholders' equity and minority shareholders'
profit or loss in the consolidated financial statements under shareholders' equity and net profit. The shares of
minority shareholders' equity in the net profits and losses of subsidiaries for the current period are shown as
"minority shareholders' profits and losses" under the net profit item in the consolidated income statement. Losses
shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders' equity
of the subsidiary at the beginning of the period and still decrease by a number of shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the purchase
date according to the original shareholding proportion shall be included in the investment income of the current
period of loss of control. Other comprehensive income related to the equity investment of the original subsidiary in
the event of loss of control the accounting treatment is performed on the same basis as the direct disposal of the
relevant assets or liabilities by the Purchased (i.e. converted to current investment income except for changes
resulting from the re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the original
subsidiary). Thereafter the residual equity shall be subsequently measured in accordance with the relevant
provisions of Accounting Standards for Business Enterprises No.2-Long-term Equity Investment or Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments as detailed in
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 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.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.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 othercomprehensive income; When disposing of overseas operations the profits and losses shall be transferred to the
current disposal period.The foreign currency financial statements of overseas operations shall be converted into RMB statements in
the following ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the
balance sheet date; Except for "undistributed profits" other items of shareholders' equity shall be converted at the
spot exchange rate at the time of occurrence. The income and expense items in the profit statement shall be converted
at the average exchange rate of the current period on the date of transaction. The undistributed profit at the beginning
of the period shall be the undistributed profit at the end of the period converted from the previous year; The
undistributed profits at the end of the year shall be calculated and listed according to the converted profits
distribution items; The difference between the converted asset items and the total amount of the liability items and
shareholders' equity items shall be recognized as other comprehensive income as the translation difference in the
foreign currency statements. In case of disposal of overseas operations and loss of control the balance in translation
of the foreign currency statements related to the overseas operations as shown below in the shareholders' equity
items in the balance sheet shall be transferred to the profits and losses of the disposal period in whole or in proportion
to the disposal of the overseas operations.Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average
exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate changes
on cash shall be presented separately in the statement of cash flows as a 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 assetsAccording to the business mode of managing financial assets and the contractual cash flow characteristics of
financial assets the Company divides financial assets into: Financial assets measured at amortized cost. Financial
assets measured at fair value with changes included in other comprehensive income. Financial assets that are
measured at fair value and whose movements are included in the current profits and losses.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value and
whose changes are included in current profits and losses relevant transaction costs are directly included in current
profits and losses. For other types of financial assets relevant transaction costs are included in the initial recognition
amount. Accounts receivable or notes receivable arising from the sale of products or the provision of labor services
that do not contain or take into account significant financing components shall be initially recognized by the
Company in accordance with the amount of consideration that the Company is expected to be entitled to receive.* 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 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 assetsThe 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.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 instrumentsFinancial 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 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 financial liability shall be derecognized and a new financial liability shall be recognized in accordance withthe 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 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 comprehensiveincome mainly including notes receivable accounts receivable other receivables debt investment other debt
investment long-term receivables etc. In addition for some financial guarantee contracts impairment reserves and
credit impairment losses are also accrued in accordance with the accounting policies described in this part.
(1) Recognition method of impairment provision
On the basis of expected credit losses the Company sets aside impairment reserves and recognizes credit
impairment losses for the above items according to the applicable expected credit loss measurement method (general
method or simplified method).Credit loss refers to the difference between all contractual cash flows receivable according to the contract and
all cash flows expected to be collected by the Company discounted according to the original actual interest rate i.e.the present value of all cash shortages. Among them for the financial assets that have been purchased or incurred
credit impairment the Company discounts them according to the actual interest rate adjusted by credit.The general method of measuring expected credit loss refers to the Company's assessment of whether the credit
risk of financial assets has increased significantly since the initial recognition on each balance sheet date. If the
credit risk has increased significantly since the initial recognition the Company will measure the loss reserve by an
amount equivalent to the expected credit loss during the entire period. If the credit risk has not increased significantly
since the initial recognition the Company will measure the loss reserve according to the amount 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 environmentof the debtor;
3) Whether there is any significant change in the value of the collateral or the quality of the guarantee or credit
enhancement provided by the third party which are expected to reduce the economic motivation of the debtor's
repayment according to the time limit stipulated in the contract or affect the probability of default;
4) Whether there is any significant change in the expected performance and repayment behavior of the debtor;
5) Whether there is any significant change in the Company's credit management methods for financial
instruments etc.On the balance sheet date if the Company judges that the financial instrument has only low credit risk the
Company assumes that the credit risk of the financial instrument has not increased significantly since the initial
recognition. If the default risk of a financial instrument is low the borrower's ability to perform its contractual cash
flow obligations in a short period of time is strong and even if there are adverse changes in the economic situation
and operating environment for a long period of time it may not necessarily reduce the borrower's ability to perform
its contractual cash obligations then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset the
financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial
assets includes the following observable information:
1) The issuer or debtor has major financial difficulties;
2) The debtor violates the contract such as default or overdue payment of interest or principal etc.;
3) The creditor gives concessions that the debtor will not make under any other circumstances due to economic
or contractual considerations related to the debtor's financial difficulties;
4) The debtor is likely to go bankrupt or undergo other financial restructuring;
5) The active market of the financial assets disappears due to the financial difficulties of the issuer or the debtor;
6) Purchase or generate a financial asset at a substantial discount which reflects the fact that credit losses have
occurred.Credit impairment of financial assets may be caused by the combined action of multiple events but may not
be caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks such as:
Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or
arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment obligation.In addition to the financial assets with individual credit risk assessment the Company divides the financial
assets into different groups based on the common risk characteristics. The common credit risk characteristicsadopted 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 classification it should be the same as the
Commercial acceptance bill
"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
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 portfolioAs 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
Portfolio 3 The portfolio of reserve fund ledger formed by the 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.
13.Inventory
(1) Classification of inventory
Inventories mainly include raw materials revolving materials inventory goods and materials in transit 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 bereversed and included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are received; packaging
materials are amortized by one-off amortization method when they are received.
14. Held-for-sale assets and disposal group
(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-salenon-current assets Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). In the event of an increase of the book value of the held-for-sale Disposal Portfolio minus sales expenses
on the subsequent the balance sheet date the amount previously written down shall be recovered and be reversed
within the mount of the asset impairment loss recognized in the non-current assets measured by the measurement
“Guide for Held-For-Sale” after being classified as held for sale asset the reversal amount shall be included in the
current period profit or loss and the book value of all non-current assets (except for goodwill) determined by the
measurement on a pro-rata basis in accordance with the applicable “Guide for Held-For-Sale” shall be increased on
a pro-rata basis. The book value of the goodwill that has been deducted and the impairment loss of the assetsrecognized before the classification of the held-for-sale non-current assets in accordance with the applicable “Guidefor 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 coordinated 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 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. For detailsof its accounting policies please refer to Note * 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 costFor a long-term equity investment obtained from a combination of businesses under the same control the
apportioned share of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of the
long-term equity investment and the cash paid the non-cash assets transferred and the book value of the debts
assumed; if the capital reserve is insufficient for offsetting the retained earnings shall be adjusted. Where the equity
securities are issued as merger consideration the apportioned share of the book value in the final controller's
consolidated financial statements on the combination date in accordance with the shareholders' equity shall be the
initial investment cost of the long-term equity investment and the total par value of the issued shares is taken as the
share capital. The capital reserve shall be adjusted subject to the difference between the initial investment cost of
the long-term equity investment and the total par value of the shares issued; if the capital reserve is insufficient for
offsetting the retained earnings shall be adjusted. Where the equity of combined parties under the same control is
obtained through multiple transactions and a business combination under the same control is formed finally it shall
be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal” all transactions
will be treated as a transaction that obtains control. If it is not a “package deal” the apportioned share of the book
value in the final controller's consolidated financial statements on the combination date in accordance with the
shareholders' equity shall be the initial investment cost of the long-term equity investment. The capital reserve shall
be adjusted subject to the difference between the initial investment cost of the long-term equity investment and the
sum of the book value of long-term equity investment before combination date and the book value of the new
consideration for the new share on the combination date. If the capital reserve is insufficient for offsetting the
retained earnings shall be adjusted. The equity investments that are held prior to the combination date and are
recognized with equity recognized or as available-for-sale financial asset as other comprehensive income will not
be given accounting treatment for the moment.For a long-term equity investment obtained from a combination of businesses not under the same control the
initial investment cost of the long-term equity investment shall be based on the combination cost on the purchase
date. The combination cost includes the assets paid by purchaser the liabilities incurred or assumed and the sum of
the fair value of issued equity securities. Where the equity of combined parties not under the same control is 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 shareholding that measured using equity
method the relevant other comprehensive income does temporarily not conduct accounting treatment.Intermediary expenses such as for auditing legal services assessment and other related expenses incurred by
a combining party or a purchaser for business combination shall be recognized in current period profit or loss when
incurred.The equity investments other than formed by business combination shall be initially measured at cost. The costwill 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
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 theaccounting policies and periods adopted by the invested entity are inconsistent with the Company the financial
statements of the invested entity shall be adjusted in accordance with the accounting policies and periods of the
Company and the investment income and other comprehensive income shall be confirmed accordingly. For the
transactions between the Company and the associates and joint ventures the assets invested or sold do not constitute
a business and the unrealized gains and losses from internal transactions are offset against the portion of the
Company that is attributable to the proportion of the shares on this basis. investment profit and loss should be
confirmed. However the unrealized internal transaction losses incurred by the Company and the investee are not
included in the impairment losses of the transferred assets. Where the assets invested by the Company into a joint
venture or an associates constitute a business if the investor obtains long-term equity investment but does not
control the fair value of the invested business shall be deemed as the initial investment cost of the new long-term
equity investment and the difference between the initial investment cost and the book value of the invested business
is fully recognized in the current profits and losses. If the assets sold by the Company to a joint venture or an
associate that constitute a business the difference between the consideration value obtained and the book value of
the business shall be fully recognized in the profits and losses of the current period.When confirming the net loss that incurred by the investee should be shared the book value of the long-term
equity investment and other long-term equity that substantially constitutes the net investment of the investee are
reduced to zero. In addition if the Company has an obligation to bear additional losses to the investee the estimated
liabilities shall be recognized according to the estimated obligations and included in the current investment losses.If the investee achieves net profit in the following period the Company shall resume recognizing the share of income
after making up for the unrecognized share of loss.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.it shall be treated in accordance with the relevant accounting policies described in “Notes on the preparation ofconsolidated financial statements” in Note * .7.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 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 comprehensiveincome 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 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
* . 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(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods providing labor services renting
or operating management and having a service life of more than one fiscal year. Fixed assets are recognized only
when the economic benefits associated with them are likely to flow into the Company and their costs can be reliably
measured. Fixed assets are initially measured at cost and taking into account the impact of projected abandonment
costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following
the scheduled availability. The depreciation period estimated net residual value rate and annual depreciation rate of
each category of fixed assets are as follows:
Depreciation period Net salvage rate Annual depreciation
Category Depreciation Method
(Year) (%) rate (%)
Buildings straight-line depreciation 8-50 5 1.90— 11.88
Machinery equipment straight-line depreciation 5-28 4、5 3.39—19.20
Transport facility straight-line depreciation 5-10 4、5 9.50—19.20
Electronic equipment straight-line depreciation 3-10 4、5 9.50—32.00
Office equipment straight-line depreciation 3-10 4、5 9.50—32.00
Other equipment straight-line depreciation 5-28 4、5 3.39—19.20
The estimated net residual value refers to the expected state after the estimated useful life of the fixed assets
has expired and is at the end of its useful life. The amount currently obtained by the Company from the disposal of
the assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets please refer to Note
* . 23 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an
asset and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased
asset at the expiration of the lease term the depreciation shall be calculated within the useful life of the leased asset;
If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term depreciation
shall be calculated within a relatively short period of the lease term and the service life of the leased assets.
(5) Others
The subsequent expenses related to fixed assets if the economic benefits related to the fixed assets are likely
to flow in and their costs can be reliably measured are included in the cost of fixed assets and the book value of the
replaced part should be terminated. The subsequent expenditures other than mentioned as above are recognized in
profit or loss in the period in which they are incurred.The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic
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 * . 23 “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 begun when asset
expenditures have occurred borrowing costs have occurred and the acquisition construction or production
activities necessary to bring the assets to the intended usable or saleable state have begun. And capitalization is
stopped when the assets under construction or production that meet the capitalization conditions are ready for their
intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in which
they are incurred.The interest expenses actually incurred in the current period of special borrowings shall be capitalized after
subtracting the interest income from the unused borrowing funds deposited into the bank or the investment income
obtained from the temporary investment. For the general borrowings according to the accumulated asset
expenditures exceed the special borrowings. The capitalization amount is determined by multiplying the weighted
average of which accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by
the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weighted
average interest rate of general borrowings.During the capitalization period the exchange differences of foreign currency special borrowings are all
capitalized; the exchange differences of foreign currency general borrowings are included in the current profit and
loss.Assets eligible for capitalization refer to assets such as fixed assets investment property and inventories that
require a substantial period of acquisition construction or production activities to achieve the intended use or sale
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
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 termin the current profit and loss or cost of assets relevant in straight line method. Impairment test methodand the provision method for diminution in value of right-of-use assets are detailed in Note III 23 “Long-Term AssetImpairment”.
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 impairment reserve shall be amortized by the straight-line method
during their expected service life. Intangible assets with uncertain service life shall not be amortized.Among them the useful life and amortization method of intellectual property are as follows:
Item Amortization period (year) Amortization method
Trademark 20 Straight-line method
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 lifeare 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.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 assetsFor details of the impairment test method and impairment provision method please refer to Note * . 23 “Long-Term Asset Impairment”.
22. 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.
23. 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 balancesheet 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.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.
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 Contribution Plan and a Defined Benefit Plan. If aDefined 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 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 morethan 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 is 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
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 costsor expenses shall be included on the date of grant and the liabilities shall be increased accordingly; if vesting right
is available after the service is completed within the waiting period or met the required performance conditions
based on the best estimate of the vesting rights on each balance sheet date of the waiting period according to the
fair value of the liabilities assumed by the company the services obtained in the current period are included in the
cost or expense and the liabilities are increased accordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the
settlement of the relevant liabilities and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan if the modification increases the fair value of the
equity instruments granted the increase in the fair value of the equity instruments is recognized accordingly. The
increase in the fair value of equity instruments refers to the difference between the fair value of the equity
instruments before and after the modification. If the modification reduces the total fair value of the share-based
payment or adopts other methods that are not conducive to the employee the service obtained shall continue to be
accounted for as if the change has never occurred unless the Company cancels some or all of equity instruments.During the waiting period if the granted equity instrument is cancelled the Company will cancel the granted
equity instrument as an accelerated exercise and the amount to be recognized in the remaining waiting period will
be immediately included in the current profit and loss and the capital reserve will be recognized. If the employee
or other party can choose to meet the non-vesting conditions but fails to meet the waiting period the Company will
treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or Actual
Controllers
In respect of the share-based payment transaction between the company and the shareholders or actual
controllers of the company If one of the settlement enterprise and the service receiving enterprise is in the company
and the other is outside the company it shall be accounted for in the consolidated financial statements of the
company according to the following provisions:
* 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.* 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 andsettlement 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 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 onlyone 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.If the contract comprised of significant financing elements the Company shall recognize 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 the effects 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 provision based on the expected credit loss. The Company has the unconditional rights（only depends 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
The production and processing sales comprise mainly of sales of oils and oilseeds food etc. The Company
recognized the sales revenue when the amounts received or identification obtained upon sales which has beensubmitted 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 cost
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.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 thegovernment free of charge excluding the capital invested by the government as an investor and enjoying the
corresponding owner's rights and interests. Government grants include assets-related grants and revenue-related
grants. The company defines the government grant obtained for the purchase and construction of long-term assets
or for the formation of long-term assets in other ways as the government grant related to assets; the remaining
government grant is defined as the government grant related to income. If the object of grants is not specified in
government documents the grants shall be divided into income-related government grants and assets-related
government grants in the following ways: (1) If the government document clarifies the specific project for which
the grant is targeted the proportion of the expenditure amount of the assets to be formed and the amount of the
expenditures included in the expenses in the budget of the specific project are divided and the proportion of grant
division needs to be reviewed on each balance sheet day and changed if necessary. (2) In government documents
if the purpose is expressed only in general terms and no specific project is specified the grant shall be regarded as
a government grant related to the income. Where a government grant is a monetary asset it shall be measured
according to the amount received or receivable. If the government grants are non-monetary assets they shall be
measured at the fair value; if the fair value cannot be obtained reliably they shall be measured at the nominal amount.Government grants measured in nominal amounts shall be recognized directly in current profits and losses.The Company usually confirms and measures the government grant according to the amount when it is actually
received. However if there is conclusive evidence at the end of the period that the relevant conditions stipulated in
the financial support policy can be met and the financial support funds are expected to be received it shall be
measured according to the amount receivable. Government grants measured in accordance with the amount
receivable shall meet the following conditions at the same time: (1) The amount of the subvention receivable has
been confirmed by the authorized government departments or can be reasonably calculated according to the relevant
provisions of the formally issued financial fund management measures and there is no significant uncertainty in the
amount expected; (2) According to the "Regulations on the Openness of Government Information" that the local
financial department officially released and in accordance with the provisions of the "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 classifiedfor accounting treatment; if it is difficult to distinguish the whole is classified as government grants related to
income.Government grants related to the daily activities of the Company shall be included in other income or cost
deductions according to the nature of the economic business; government subsidies unrelated to daily activities shall
be included in the non-operating revenues and expenses.When the recognized government grants need to be returned if there are relevant deferred earnings balances
the book balance of related deferred earnings shall be deducted and the excess part shall be included in the current
profits and losses or the book value of assets shall be adjusted otherwise the book value of assets shall be directly
included in the current profits and losses.The company will obtain preferential policy loans discount in accordance with the finance will be allocated to
the loan bank discount funds and the finance will be directly allocated to the company discount funds in two cases:
(1) If the finance department allocates the discount interest funds to the lending bank and the lending bank
provides the loan to the Company at the policy preferential interest rate the Company chooses to conduct accounting
treatment according to the following methods: the loan amount actually received shall be taken as the entry value
of the loan and the relevant borrowing costs shall be calculated in accordance with the loan principal and the policy
preferential interest rate.
(2) If the finance allocates the discount funds directly to the company the company will offset the
corresponding discount against the relevant borrowing costs.
30. Deferred Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and previous
periods are measured by the expected amount of income tax payable (or returned) in accordance with the provisions
of the Tax Law. The amount of taxable income on which current income tax expenses are calculated is based on the
corresponding adjustment of pre-tax accounting profits in the reporting period in accordance with the relevant tax
laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis and the temporary
difference between the book value of items that are not recognized as assets and liabilities but which can be
determined as their tax basis according to the tax law are confirmed by the balance sheet liability method.Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of
an asset or liability arising from a transaction that is neither a business combination nor an accounting profit or
taxable income (or deductible loss) relevant deferred income tax liabilities shall not be recognized. In addition for
taxable temporary differences related to investments in subsidiaries associates and joint ventures if the Company
is able to control the turnaround time of temporary differences and the temporary difference is unlikely to be
reversed in the foreseeable future the related deferred income tax liabilities shall not be recognized. Except for theabove exceptions the Company recognizes all other deferred income tax liabilities arising from taxable temporary
differences.Taxable temporary differences which related to the initial recognition of an asset or liability arising from a
transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss)
relevant deferred income tax liabilities shall not be recognized. In addition for taxable temporary differences related
to investments in subsidiaries associates and joint ventures if the temporary difference is unlikely to be reversed
in the foreseeable future or the amount of taxable income used to offset the temporary difference is unlikely to be
obtained in the future the deferred income tax assets concerned shall not be recognized. Except for the above
exceptions the Company recognizes other deferred income tax assets that can offset temporary differences subject
to the amount of taxable income that is likely to be obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years the corresponding
deferred income tax assets are recognized to the extent that it is probable that the future taxable income shall be
used to offset the deductible losses and tax credits.On the balance sheet date the deferred income tax assets and deferred income tax liabilities shall be measured
at the applicable tax rates in the period in which the related assets are recovered or the related liabilities are recovered
in accordance with the tax laws.On the balance sheet date the book value of deferred income tax assets is reviewed. and the book value of
deferred income tax assets is written down if it is likely that sufficient taxable income will not be available to offset
the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient taxable 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 settlethe current income tax assets and liabilities on a net basis or acquire assets and pay off liabilities simultaneously
the deferred the income tax assets and deferred income tax liabilities of the Company shall be presented on a net
basis after offset.
31. Lease
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 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 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 theCompany 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 incurrence.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.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
(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.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. Significant accounting judgments and estimates
There is no significant change on the accounting judgments and estimates.IV. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in
the current period the difference between the sales of goods 1%、3%、5%、6%、
Value Added Tax taxable services and taxable services income calculated in
9%、10%、13%
accordance with the provisions of the Tax Law is the taxable
value-added tax.Urban Maintenance
According to the actual value-added tax 7%、5%
& Construction Tax
Extra charges of
According to the actual value-added tax 3%
education funds
Local Extra
Charges of According to the actual value-added tax 2%
Education FundsTypes Tax Basis Tax Rate
25%、20%、17%、Corporate Taxes According to taxable income
15%
According to 70% of original value of the real estate (or rental
Property Tax income) as the tax base; according to the original value of the 12%、1.2%
real estate deducted 30% at a time.Representation on tax payers of different enterprise income tax rates:
Tax Payers Income Tax Rate
Hangzhou Lin'an Chunmanyuan Agricultural Development Co. Ltd.
20%
Jingliang (Beijing) Food Marketing Management Co. Ltd.Jingliang (Singapore) International Trade Co. Ltd. 17%
Beijing Guchuan Bread Food Co. Ltd. 15%
2. Preferential tax
Beijing Guchuan Bread Food Co. Ltd. a grade-3 subsidiary of the Company is a high-tech enterprise. It enjoys
the preferential tax policy of paying enterprise income tax at the 15% tax rate according to the relevant provisions
of both “Law of the People's Republic of China on Tax Collection and Administration” and “Rules for theImplementation of the Tax Collection and Administration Law of the People's Republic of China”. It obtained the
certificate of high-tech enterprise No. GR202111000657 valid until September 14 2024. According to the
Announcement of the General Administration of Taxation of the Ministry of Finance on the Policy of Value-added
Tax Deduction for Advanced Manufacturing Enterprises Announcement No. 43 of 2023 from January 1 2023 to
December 31 2027 advanced manufacturing enterprises are allowed to deduct 5% of the value-added tax payable
in accordance with the current deductible input tax.Jingliang (Singapore) International Trade Co. Ltd. a grade-3 subsidiary of the Company levies taxes on the
principle of territoriality. The company is taxed on the territoriality principle. According to Singapore's preferential
tax policy the company enjoys tax exemption plan is as follows: for the first SGD$10000 of taxable income amount
the taxable income amount shall be reduced by SGD$7500; for the portion between SGD$10001 and
SGD$200000 the taxable income amount shall be reduced by SGD$95000; For the portion exceeding
SGD$200001 the taxable income amount shall not be reduced. The company shall pay income tax at the rate of
17% on the taxable income amount after exemption.In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation “Noticeon Preferential Enterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai Shui[2009]
No.70) the grade-3 subsidiary Zhejiang Xiao Wang Zi Food Co. Ltd. the grade-4 subsidiary Hangzhou Lin’an
Xiaotianshi Food Co. Ltd. Linqing Xiao Wang Zi Food Co. Ltd. and Liaoning Xiao Wang Zi Food Co. Ltd.:
Where an enterprise employs persons with disabilities on the basis of deduction according to the wages paid to the
disabled workers it may deduct the amount of taxable income according to 100% of the wages paid to the disabled
workers.Hangzhou Lin’an Xiaotianshi Food Co. Ltd. a grade-4 subsidiary company of the Company is a welfareenterprise. Since May 2016 it has enjoyed the preferential VAT policy of immediate refund upon payment in
Preferential Value-Added Tax Policies for Promoting the Employment of Disabled Persons (CaiShui [2016] No.52).The grade-4 subsidiary-Liaoning Xiao Wang ZiFood Co. Ltd. according to the Supplementary Announcement
on Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ No.140 Clause 13
states that public land such as municipal street square public green etc. can be exempted from land use tax when
computing land use tax the area used in the computation is total area less the area for afforest and street.The grade-2 subsidiary Jingliang (Beijing) Food Marketing Management Co. Ltd. and the grade-4 subsidiary
Hangzhou Lin’an Chunmanyuan Agricultural Development Co. Ltd. are applicable to the Announcement on
Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial
Households the State Administration of Taxation Announcement No. 6 2023 the Company meets the conditions
for identification of small and micro enterprises and the applicable preferential policies for 2024 are as follows:
"The part of the annual taxable income of small low-profit enterprises not exceeding 1 million yuan shall be
included in the taxable income amount at a reduced rate of 25% and the enterprise income tax shall be paid at a tax
rate of 20%."
The grade-2 subsidiary Jingliang (Beijing) Food Marketing Management Co. Ltd. and Hangzhou Lin’an
Chunmanyuan Agricultural Development Co. Ltd. are applicable to the fiscal and tax No.12 [2023] issued by the
State Administration of Taxation of the Ministry of Finance on the Further Supporting the Development of Micro
and Small Enterprises and Individual Industrial and Commercial Households (No. 12 [2023]. The company meets
the requirements for identification as a small and micro enterprise and the preferential policies applicable in 2024
are as follows: "For small-scale VAT taxpayers small and low-profit enterprises and individual industrial and
commercial households resource tax (excluding water resource taxation) urban maintenance and construction tax
property tax urban land use tax stamp tax (excluding stamp tax on securities transactions) cultivated land
occupation tax education fee surcharge and local education surcharge may be reduced within the 50% tax range.V. Notes on Items in Consolidated Financial Statements
Note: The ‘Opening Balance’ of the period refers to December 31 2023 and the ‘Closing Balance’ of the period
refers to June 30 2024. The prior period refers to January 1 2023 to June 30 2023 and the current period refers to
January 1 2024 to June 30 2024. The currency unit is RMB Yuan.
1.Monetary funds
Items Closing Balance Opening Balance
Cash on hand 16474.45 9949.26
Bank Deposits 554008559.84 533387412.58
Other Currency Funds 95067211.84 119931760.14
Deposit in the Financial Company 532305996.27 890056629.88
Total 1181398242.40 1543385751.86
Among them: the total amount of money deposited abroad 22458482.24 3113810.752.Derivative financial assets
Items Closing Balance Opening Balance
Hedging instrument floating profit and loss 31223815.72 31684620.00
Total 31223815.72 31684620.00
3.Accounts Receivable
(1) Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 90220633.63 96507223.82
1 to 2 years (including 2 years) 752867.27 762767.27
2 to 3 years (including 3 years) 18497856.00 18497856.00
3 to 4 years (including 4 years) 7499480.04 7499480.04
4 to 5 years (including 5 years)
More than 5 years 328259.50 328259.50
Total 117299096.44 123595586.63
(2) Present according to the method of provision for bad debt
Closing Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for
328259.500.28328259.50100.00
bad debts
Portfolio provision for
116970836.9499.727486954.586.40109483882.36
bad debts
Total 117299096.44 —— 7815214.08 —— 109483882.36
（Continued）
Opening Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%)
Ratio(%)
Separate provision for
328259.500.27328259.50100.00
bad debts
Portfolio provision for
123267327.1399.737486954.586.07115780372.55
bad debts
Total 123595586.63 7815214.08 115780372.55
A. Separate provision for bad debtsClosing Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Fujian Jingxin Industrial Group Co.
151844.00 151844.00 100.00 expected unrecoverable
Ltd
Beijing Guotai Pingan Tianzhu
1809.60 1809.60 100.00 expected unrecoverable
Commercial Development Co. Ltd.Beijing Rongfa Lida Grain and Oil
163143.00 163143.00 100.00 expected unrecoverable
Trade Co. Ltd.Beijing Guotai Pingan Department
10862.90 10862.90 100.00 expected unrecoverable
Store Co. Ltd
Beijing Shunyi Longhua Shopping
600.00 600.00 100.00 expected unrecoverable
Mall
Total 328259.50 328259.50 —— ——
B. Portfolio provision for bad debts
Portfolio provision Items are as follows:
Closing Balance
Name
Accounts receivable Bad Debt Provision Provision Ratio
Credit Risk Portfolio 116970836.94 7486954.58 6.40
Total 116970836.94 7486954.58 6.40
（Continued）
Opening Balance
Name
Accounts receivable Bad Debt Provision Provision Ratio
Credit Risk Portfolio 123267327.13 7486954.58 6.07
Total 123267327.13 7486954.58 6.07
(3) details of bad debt provision
The amount changed for the period
Opening
Items
Balance Withdrawal Other
Closing Balance
Addition Write-off
or reversal changes
Bad debt provision on
328259.50328259.50
individual basis
Credit risk profile portfolio 7486954.58 7486954.58
Total 7815214.08 7815214.08
(4) Accounts Receivable of the Top 5 Balances Collected by Debtors and contractual assets situations at the
End of the PeriodProportion of
Contract Ending Balance
Ending Balance of
Accounts Assets of Receivables Bad Debt
Name of Entity Receivables and
receivable Ending and Contract Provision
Contract Assets
Balance Assets
（%）
Tangshan Caofeidian
25997336.0425997336.0422.167449311.22
District Finance Bureau
Wuhan National Rice
Trading Center Co. 25689600.00 25689600.00 21.90
Ltd.Hebei Luanping Huadu
13145439.0413145439.0411.21
Food Co. Ltd
Zhejiang Lvqin Supply
Chain Management Co. 8717018.25 8717018.25 7.43
Ltd
C.P. Raw Material
4507632.844507632.843.84
Supply Co. Ltd.Total 78057026.17 78057026.17 66.54 7449311.22
4.Accounts receivable Financing
(1) Presented and sorted by category
Item Closing Balance Opening Balance
Notes receivable 2442328.82 2502308.90
Total 2442328.82 2502308.90
(2) The ending notes receivable that have been endorsed or discounted and not expired on balance sheet date
Amount derecognized as at the end of Amount not derecognized as at the end of
Item
the reporting period the reporting period.Banker's Acceptance 1307900.00
Total 1307900.00
5.Advanced Payment
(1) Advances are presented by age
Closing Balance Opening Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 267344829.04 100.00 87352234.48 100.00
Total 267344829.04 100.00 87352234.48 100.00
(2) Advance payment of the top five Closing Balances by prepaid objects
Ratio of the total Closing Balance
Debtor Name Closing Balance
of prepayments (%)
Tianjin Lingang Customs of the People's
63996755.0723.94
Republic of China
Bangji (Dongguan) Grain and Oil Co. Ltd. 40184621.14 15.03
Jiangsu Jianghai Grease & Oil Group Co. Ltd. 28767869.40 10.76Ratio of the total Closing Balance
Debtor Name Closing Balance
of prepayments (%)
Xiamen ITG Agricultural Products Co. Ltd. 23464521.74 8.78
SINOGRAIN OILS Corporation 21163895.76 7.92
Total 177577663.11 66.43
6.Other Receivables
Item(s) Closing Balance Opening Balance
Other Receivables 386904030.80 303099589.59
Total 386904030.80 303099589.59
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 385104921.29 301234542.67
1 to 2 years (including 2 years) 490899.52 641412.67
2 to 3 years (including 3 years) 216525.79 144888.00
3 to 4 years (including 4 years) 417658.21 459888.00
4 to 5 years (including 5 years) 92026.00 88638.00
More than 5 years 581999.99 531999.99
Total 386904030.80 303101369.33
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Deposit and Guaranteed Deposit 382297330.22 301372189.38
Intercourse Funds of Units 2128121.60 502432.60
Employee Receivables 962353.24 840868.84
Tax Refund Receivables 1182669.16
Others 333556.58 385878.51
Total 386904030.80 303101369.33
C. Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Expected credit
Provision for bad debt for the whole period for the whole period Total
loss in the next
(no credit (with credit
12 months
impairment) impairment)
Amount on 1st January 2024 1779.74 1779.74Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Expected credit
Provision for bad debt for the whole period for the whole period Total
loss in the next
(no credit (with credit
12 months
impairment) impairment)
Carrying amount on 1st January
2024 that in this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
Provision for the period -1779.74 -1779.74
Reverse for the period
Transfer for the period
Write off for the period
Other changes
Amount on June 30th 2024
D. Details of bad debt provision
Amount changes for the period Carrying
Carrying amount
Type Withdrawal or Write- Other amount at at the beginning Addition
reversal off changes
the end
Credit Risk
1779.74 -1779.74 Portfolio
Total 1779.74 -1779.74
E. Other receivables according to top five of balance at end of period collected by debtors
Proportion in Closing
Balance at End overall Closing Nature of Balance of Name of Organization Aging
of Period Balance of other Funds bad debt
receivables (%) reserves
Zhongtian Futures Co. Guaranteed Within 1
114029471.8529.47
Ltd Deposit year
Guaranteed Within 1
CITIC Futures Co. Ltd. 89893896.44 23.23
Deposit year
China Grain Storage and Guaranteed Within 1
80283920.0020.75
Transportation Co. Ltd. Deposit year
Guaranteed Within 1
Haitong Futures Co. Ltd 40716550.69 10.52
Deposit year
Beijing Capital Futures Guaranteed Within 1
25761664.506.66
Co. Ltd Deposit year
Total 350685503.48 90.64
7.Inventory(1) Inventory Category
Closing Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Raw Materials 272754976.75 23955.82 272731020.93
Inventory goods 1085540832.20 170341.46 1085370490.74
Revolving Materials 4976986.93 4976986.93
Goods and materials in transit 823783094.37 823783094.37
Total 2187055890.25 194297.28 2186861592.97
（Continued）
Opening Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Raw Materials 324815755.86 82063.38 324733692.48
Inventory goods 1122785703.06 1743754.31 1121041948.75
Revolving Materials 5049542.63 5049542.63
Goods and materials in
591034959.25591034959.25
transit
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
Inventory Goods 1743754.31
In total 1825817.69
(Continued)
Decreased Amounts in the Current Period
Items Balance at End of Period
Recover or Charge Off Others
Raw material 58107.56 23955.82
Inventory Goods 1573412.85 170341.46
In total 1631520.41 194297.28
(3) Inventory Goods listed by major product typeClosing Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1069557817.71 170341.46 1069387476.25
Food 15983014.49 15983014.49
Total 1085540832.20 170341.46 1085370490.74
(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
Items Balance at End of Period Balance at Beginning of Period
One-year term deposits 22188083.34
In total 22188083.34
9.Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Pending Deduct VAT Input Tax 52271021.82 57549582.61
Pre-paid Taxes and Fees 37642598.24 16226031.95
Input Tax to Be Certified 42301.32 202103.63
Fair Value Changes of Items Trapped at Hedging 330613399.83 238358924.24
In total 420569321.21 312336642.43
10.Long-term Equity Investment
Details
Increase or Decrease in the Current Period
Confirmed Adjustment
Balance at
Invested Entity Profit and Loss of other Other
Beginning of Year Additional Negative on Investment comprehen changes
Investment Investment
under Equity sive in equity
Method income
1. Cooperative
128393543.262313991.99
Enterprise
Beijing CHIA TAI
Feedmill 128393543.26 2313991.99
Co. Limited
Sub-total 128393543.26 2313991.992. Joint Venture 126529102.15 8561434.89
China Grain
Reserves (Tianjin)
Warehouse 120176935.53 8606185.99
Logistics Co.Ltd.Jingliang Missme
Catering
6352166.62-44751.10
Management
(Beijing) Co. Ltd.
Sub-total 126529102.15 8561434.89
Total 254922645.41 10875426.88
(Continued)
Increase or Decrease in the Current Period Closing
Announce to Accrual of Balance at End Balance of invested entity
Distribute Case Impairment Others of Period Impairment
Dividends or Profits Reserves Reserves
1. Cooperative
130707535.25
Enterprise
Beijing CHIA TAI
130707535.25
Feedmill Co. Limited
Sub-total 130707535.25
2. Joint Venture 135090537.04
China Grain Reserves
(Tianjin) Warehouse 128783121.52
Logistics Co. Ltd.Jingliang Missme
Catering Management 6307415.52
(Beijing) Co. Ltd.
Sub-total 135090537.04
Total 265798072.29
11.Other equity instruments investment
Details
Changes in the Current Period
Profits Losses
Opening included in included in Disi O
other other Closing Item Balance Additional nve th
comprehensiv comprehensiv Balance
Investment stm er
e income in e income in
ent s
the current the current
period. period.Chongqing long
20000000.0
jinbao network 20000000.00 0
technology Co.LTD
20000000.0
Total 20000000.00
0
(Continued)
Designated at Fair
Dividend . Accumulated prof . Accumulated loss
Value Measurement and
revenue it recognized in es recognized in
Item Reasons on Changes
recognized in other comprehensive other comprehensive
included in Other
current period income income
Comprehensive Income
Chongqing long
jinbao network Non-trading equity
technology Co. instrument
LTD
Total /
12.Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Items Buildings Land Use Right Total
One. Original Book Value
1.Balance at Beginning of Year 62845234.00 576510.00 63421744.00
2.Increased Amounts in the Current Period
—Inventory\Fixed Assets Construction in progress
transferred into
3.Decreased Amounts in the Current Period
—Business Combination Decrease
4.Balance at End of Period 62845234.00 576510.00 63421744.00
Two. Accumulated Impairment and Accumulated
Amortization
1. Balance at Beginning of Year 32579939.08 208504.45 32788443.53
2. Increased Amounts in the Current Period 987930.66 5765.10 993695.76
—Accrual or Amortization 987930.66 5765.10 993695.76
—Others
3. Decreased Amounts in the Current Period
—Business Combination Decrease
4. Balance at End of Period 33567869.74 214269.55 33782139.29
Three. Impairment Reserves
1. Balance at Beginning of Year 10587796.70 10587796.70
2. Balance at End of Period 10587796.70 10587796.70
Four. Book Value1. Book Value at End of Period 18689567.56 362240.45 19051808.01
2. Book Value at Beginning of Year 19677498.22 368005.55 20045503.77
13.Fixed Assets
Items Balance at End of Period Balance at Beginning of Period
Fixed Assets 917556139.25 939548012.91
Disposal of Fixed Assets
In total 917556139.25 939548012.91
Fixed Assets Situation
Machinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
One. Original Book
Value
1. Balance at 795460322.5
1064558047.2120074431.0714133767.597545793.531385077.431903157439.40
Beginning of Year 7
2. Increased Amounts
1216887.2623443233.90812127.60276319.61174321.0525922889.42
in the Current Period
(1) Purchase 91284.40 2884547.80 812127.60 242458.23 98214.86 4128632.89
(2) Roll-in of
Project under 1125602.86 20558686.10 33861.38 76106.19 21794256.53
Construction
3. Decreased Amounts
1699296.901553250.61267996.513260.003523804.02
in the Current Period
(1) Disposal or
1699296.901553250.61267996.513260.003523804.02
Scrap
Decrease on Business
Combination Scope
Other transferred out
4. Balance at End of 817204259.5
1065774934.4719333308.0614142090.697716854.581385077.431925556524.80
Period 7
Two. Accumulated
Impairment
1. Balance at 487687828.6
440697875.2611852350.939595147.994305164.06350995.94954489362.87
Beginning of Year 9
2. Increased Amounts
18983479.3826195647.62930855.08651955.82387431.1134300.5947183669.60
in the Current Period
(1) Accrual 18983479.38 26195647.62 930855.08 651955.82 387431.11 34300.59 47183669.60
3. Decreased Amounts
1059428.811475588.08254596.653097.002792710.54
in the Current Period
(1) Disposal or
1059428.811475588.08254596.653097.002792710.54
Scrap
Decrease on Business
Combination Scope
Other transferred out
4. Balance at End of 512824047.5
459681354.6411307617.939992507.164689498.17385296.53998880321.93
Period 0
Three. Impairment
Reserves
1. Balance at
9047959.1372104.499120063.62
Beginning of Year
4. Balance at End of
9047959.1372104.499120063.62
Period
Four. Book ValueMachinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
1. Book Value at End 304308107.5
597045620.708025690.134149583.533027356.41999780.90917556139.25
of Period 8
2. Book Value at 307700389.3
614812212.828222080.144538619.603240629.471034081.49939548012.91
Beginning of Year 9
14.Project under Construction
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 47201479.97 59094902.29
Total 47201479.97 59094902.29
(1) Project under Construction
A. Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Caofeidian
comprehensive
bonded zone
feed processing 7786834.64 7786834.64 7773303.43 7773303.43
project
automation line
project
Soybean
extruding and
rumen soybean
24935424.2024935424.2023078937.3423078937.34
meal
processing
project
production line
of fried potato 8392300.91 8392300.91
chips
Slope treatment
project of No.3 6969126.85 6969126.85 6969126.85 6969126.85
plant
The 3rd
recreation
factory baked
potato No.5
Flexible
2556466.472556466.47
Packing
Automation
Line
Transformation
Project
The
1strecreation
factory baked 2497033.51 2497033.51
potato No.3
FlexibleBalance at End of Period Balance at Beginning of Year
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Packing
Automation
Line
Transformation
Project
The 1st
recreation
factory baked
potato No.4
Flexible
1619325.551619325.55
Packing
Automation
Line
Transformation
Project
Odor control
1585321.111585321.111585321.111585321.11
project
The 3rd
recreation
factory baked
potato No.8 1240093.10 1240093.10
Line Oven
Transformation
Project
Jingliang
Hainan Yang
Pu Grease & 1823718.65 1823718.65 434369.04 434369.04
Oil Processing
Project
Snowcone
Workshop
Category 833714.41 833714.41
Expansion
Program
Others 3267340.11 3267340.11 2948624.98 2948624.98
Total 47201479.97 47201479.97 59094902.29 59094902.29
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Other
Roll-in
Increased Decreased
Balance at Fixed Assets
Budget Amounts in Amounts Balance at
Project Name Beginning of Amount in
Amount the Current in the End of Period
Year the Current
Period Current
Period
Period
Caofeidian
comprehensive
bonded zone 7184400.00 7773303.43 13531.21 7786834.64
feed processing
projectOther
Roll-in
Increased Decreased
Balance at Fixed Assets
Budget Amounts in Amounts Balance at
Project Name Beginning of Amount in
Amount the Current in the End of Period
Year the Current
Period Current
Period
Period
automation line
Soybean
extruding and
rumen soybean 23078937.3 1856486.8
49429300.0024935424.20
meal 4 6
processing
project
Production line
of fried potato 9700000.00 8392300.91 71735.48 8464036.39
chips
Slope treatment
project of No.3 17110000.00 6969126.85 6969126.85
plant
Jingliang
Hainan Yang
661324100.0
Pu Grease & 434369.04 1389349.6 1823718.65
0
Oil Processing 1
Project
46648037.53331103.1
Total —— 8464036.39 41515104.34
76
(Continued)
Proportion of
Accumula Including: Interest
accumulated
ted Interest Capitalizati
input of the Progress
Amount of Capitalization on Rate in Sources of
Project Name project on of the
Interest Amount the Current Capital
Budgeted Project
Capitalizat occurred in Period
Amount
ion Current Period （%）
（%）
Caofeidian
comprehensive bonded
Equity
zone feed processing 108.39 99.00%
Fund
project automation
line
Soybean extruding and
Equity
rumen soybean meal 50.45 85.00%
Fund
processing project
Production line of Equity
87.26100.00%
fried potato chips Fund
Slope treatment Equity
40.7380.00%
project of No.3 plant Fund
Jingliang Hainan Yang Enterprise
Pu Grease & Oil 0.28 0.28% Self-
Processing Project funded
Total —— —— —— ——
15.Right-of-use Asset
DetailsLand Use Transportation
Items Buildings In total
Right Equipment
One Original Book Value
1. Balance at Beginning of Year 121031786.76 5648400.00 607367.22 127287553.98
2. Increased Amounts in the Current
2414106.372414106.37
Period
(1) Lease 2414106.37 2414106.37
3. Decreased Amounts in the Current
2098724.662098724.66
Period
(1) Expiration of the lease or change the
2098724.662098724.66
lease term
4. Balance at End of Period 121347168.47 5648400.00 607367.22 127602935.69
Two Accumulated Depreciation
1. Balance at Beginning of Year 26870944.28 1016712.00 167593.92 28055250.20
2. Increased Amounts in the Current
12238164.1656484.0047239.2612341887.42
Period
(1) Accrual 12238164.16 56484.00 47239.26 12341887.42
3. Decreased Amounts in the Current
2098724.662098724.66
Period
—Disposal 2098724.66 2098724.66
—Other Transferred Out
4. Balance at End of Period 37010383.78 1073196.00 214833.18 38298412.96
Three Impairment Reserves
Four Book Value
1. Book Value at End of Period 84336784.69 4575204.00 392534.04 89304522.73
2. Book Value at Beginning of Year 94160842.48 4631688.00 439773.30 99232303.78
16.Intangible Assets
Intangible Assets Situation
Items Land Use Right Software Trademark Right In total
One Original Book Value
575929649.2
1. Balance at Beginning of Year 415718033.78 5370415.44 154841200.00
2
2. Increased Amounts in the Current
17735.8517735.85
Period
(1) Purchase 17735.85 17735.85
—Others
3. Decreased Amounts in the Current
Period
—Business Combination DecreaseItems Land Use Right Software Trademark Right In total
—Other Transferred Out
575947385.0
4. Balance at End of Period 415718033.78 5388151.29 154841200.00
7
Two Accumulated Amortization
163252803.2
1. Balance at Beginning of Year 79667120.07 4408533.97 79177149.25
9
2. Increased Amounts in the Current
4542322.72129821.463856962.968529107.14
Period
(1) Accrual 4542322.72 129821.46 3856962.96 8529107.14
3. Decreased Amounts in the Current
Period
— Business Combination Decrease
— Other Transferred Out
171781910.4
4. Balance at End of Period 84209442.79 4538355.43 83034112.21
3
Three Impairment Reserves
Four Book Value
404165474.6
1. Book Value at End of Period 331508590.99 849795.86 71807087.79
4
412676845.9
2. Book Value at Beginning of Year 336050913.71 961881.47 75664050.75
3
17.Goodwill
(1) Original Book Value of Goodwill
Increase in the Current Decrease in the
Balance at
Name of Invested Entity or Period Current Period Balance at End
Beginning of
Items Forming Goodwill Formed by Enterprise of Period Year Disposal
Merger
Acquire stock shares of
191394422.5
Zhejiang Xiaowangzi 191394422.51
Food Co. Ltd.
191394422.5
In total 191394422.51
1
(2) Relevant information about the group or groups of assets that include goodwill
Whether
Composition and Basis of Group of Assets Operation Segment and
Name consistent with
or Group belongs Basis belongs
Prior Period
Acquire stock Group of Assets comprises of Goodwill
Assets mainly used food
shares of Zhejiang related assets，the flow-in cash generatedprocessing belong to the Yes
Xiaowangzi Food shall be independent of those by other
Food Segment
Co. Ltd. group assets.
18.Long-term Unamortized ExpensesIncreased Amortized Other
Balance at Balance at
Items Amounts in the Amounts in the Decreased
Beginning of Year End of Period
Current Period Current Period Amounts
Reconstruction of
12865755.89337094.0412528661.85
majuqiao plant
Maintenance of
2085375.4372650.942012724.49
leased assets
Factory compartment
760612.4249206.89101490.12708329.19
maintenance
Housing renovation 1943993.08 394180.68 190355.84 2147817.92
Total 17655736.82 443387.57 701590.94 17397533.45
19.Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Deductible Deductible Deferred Income Deferred Income
Temporary Temporary
Tax Assets Tax Assets
Difference Difference
Asset Impairment
290095.2872523.811906843.70476710.92
Reserves
Deductible Loss 196701038.40 49175259.60 190924419.06 47731104.76
Lease liabilities 84702417.52 21175604.38 95982927.96 23995732.00
Credit impairment Loss 7777570.72 1944392.67 7816993.82 1954248.46
Deferred Income 12600638.84 3150159.71 12600638.84 3150159.71
Wages payable 5677134.00 1419283.50 5677134.00 1419283.50
Valuation of Financial
Instruments and
12433441.203108360.30
Derivative Financial
Instruments
Rebate on contracts 1112100.00 278025.00 1112100.00 278025.00
In total 308860994.76 77215248.67 328454498.58 82113624.65
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Taxable Deferred Income Tax Taxable Temporary Deferred Income Tax
Temporary
Liabilities Difference Liabilities
Difference
Valuation of Financial
Instruments and
288957465.7972239366.45252306904.7063076726.18
Derivative Financial
Instruments
Valuation and
appreciation of assets in
129963606.6832490901.67135119584.5833779896.15
merger of enterprises
not under the sameBalance at End of Period Balance at Beginning of Year
Items Taxable Deferred Income Tax Taxable Temporary Deferred Income Tax
Temporary
Liabilities Difference Liabilities
Difference
control
Use right assets 82325029.38 20581257.34 94160842.48 23540210.63
Total 501246101.85 125311525.46 481587331.76 120396832.96
(3) Details of Deferred Income Tax Liabilities after Offset
offset amount of Carrying amount after
Offset amount of Carrying amount
deferred tax assets offsetting between
deferred tax after offsetting
Items and liabilities at deferred tax assets and
assets and between deferred tax
the end of last liabilities at the end of
liabilities assets and liabilities
period last period
Deferred tax asset 71762861.32 5452387.35 73314709.43 8798915.22
Deferred tax
71762861.3253548664.1473314709.4347082123.53
liabilities
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible temporary differences 19626834.31 19626834.31
Deductible Loss 278526782.97 243290588.25
In total 298153617.28 262917422.56
(5) Deductible loss on deferred income tax assets not being confirmed will be due at the following years
Year Balance at End of Period Balance at Beginning of Year
202428130103.9738012198.48
202525114592.0525114592.05
202637744225.6437744225.64
202762607514.0963628940.88
202878790631.2078790631.20
202946139716.02
Total 278526782.97 243290588.25
20.Other Non-current Assets
Closing Balance Opening Balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
software purchase
3168200.003168200.002833950.002833950.00
advancement
Three-year term
10541666.6610541666.6610390000.0010390000.00
depositTotal 13709866.66 13709866.66 13223950.00 13223950.00
21.Asset items where the ownership or the right of use is restricted
Ending Balance
Items
Book balance Book value Restricted type ' Constraints
Freezing amount due to Freezing amount due to
11398049.1
Monetary Funds 11398049.13 lawsuit Banker's letter of lawsuit Banker's letter of
3
guarantee deposit etc. guarantee deposit etc.Freezing amount due to Freezing amount due to
Fixed Assets 21719189.02 4787783.94
lawsuit lawsuit
Investment Real Freezing amount due to Freezing amount due to
19594735.465027932.91
Estates lawsuit lawsuit
21213765.9
/ / In total 52711973.61
8
(Continued)
Beginning Balance
Item
Book balance Book value Restricted type ' Constraints
Banker's letter of Banker's letter of
Monetary Funds 2746671.91 2746671.91
guarantee deposit etc. guarantee deposit etc.Freezing amount due to Freezing amount due to
Fixed Assets 21719189.02 4994664.88
lawsuit lawsuit
Investment Real Freezing amount due to Freezing amount due to
19594735.465198514.17
Estates lawsuit lawsuit
12939850.9
In total 44060596.39 / /
6
22.Short-term Borrowings
Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Debt of honour 1036717261.11 1163479691.67
In total 1036717261.11 1163479691.67
23.Derivative financial liability
Item Closing Balance Opening Balance
Changes in fair value of hedging instruments 15805393.88
Total 15805393.88
24.Accounts Payable
Accounts Payable Presentation
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 54559950.19 67912958.96Project Funds Payable 1312278.91 3013449.11
Equipment Funds Payable 4266240.40 3002660.91
Consultancy Services 2563467.22 3283467.22
Rental Fee 1378125.00 650000.00
Storage Charge 5129772.80 2752000.00
Others 1397190.28 1860287.64
In total 70607024.80 82474823.84
25.Advance payment
Advance payment Presented
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1800138.12 1075801.34
In total 1800138.12 1075801.34
26.Contract liabilities
Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 619028078.42 411012990.81
Services 19801.98
Others 426.29
In total 619028078.42 411033219.08
27.Wages Payable
(1) Wages Payable Presented
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Short-term Compensation 30758435.00 133390483.35 149971192.38 14177725.97
After-service Welfare-
1944123.0719183912.2018938406.162189629.11
Set up ESP liabilities
Dismission Welfare 76791.04 76791.04
In total 32702558.07 152651186.59 168986389.58 16367355.08
(2) Short-term Compensation Presented
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Wage Bonus
Allowance and 26776551.56 105190699.26 122292867.29 9674383.53
SubsidyBalance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
2. Welfare Expense of
18700.003608971.823432745.50194926.32
Employee
3. Social Insurance
932905.6210685246.6410559280.301058871.96
Expense
Among them: Medical
863418.279729586.479622039.65970965.09
Insurance Premiums
Industrial Injury
53651.72773377.55756613.5070415.77
Insurance Premiums
Birth Insurance
15835.63182282.62180627.1517491.10
Premiums
4. Housing Provident
114997.498417025.008420512.00111510.49
Funds
5. Labor Union
Expense and Personnel 2695150.33 2306336.92 2231611.29 2769875.96
Education Fund
6.Other Short-term
220130.003182203.713034176.00368157.71
wages
In total 30758435.00 133390483.35 149971192.38 14177725.97
(3) Stated Drawings Plan Presented
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Basic Pension
1848825.7016517674.9516291473.912075026.74
Insurance
2. Unemployment
49574.79541507.67535896.5355185.93
Insurance Expense
3. Enterprise Annuity
45722.582124729.582111035.7259416.44
Charges
Total 1944123.07 19183912.20 18938406.16 2189629.11
28.Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
VAT 3672452.79 1535814.90
Corporate Income Tax 4822889.67 4643368.25
Urban Maintenance and Construction Tax 357425.10 184732.38
House Property Tax 976287.01 2317671.84
Land Use Tax 370587.69 985671.07
Individual Income Tax 494925.66 1655912.41
Stamp Tax 344887.74 152358.18
Educational Surtax (Including local educational
222410.1299058.19surcharge）
Environmental protection tax 2512.01 2805.25Items Balance at End of Period Balance at Beginning of Year
In total 11264377.79 11577392.47
29.Other Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 20000000.00 21082795.47
Dividends Payable 3213342.90 3213302.88
Other Accounts Payable 48634943.60 55322100.43
In total 71848286.50 79618198.78
(1) Interest Payable
Items Balance at End of Period Balance at Beginning of Year
Loan Interest between Enterprises 20000000.00 21082795.47
In total 20000000.00 21082795.47
(2) Dividends Payable
Items Balance at End of Period Balance at Beginning of Year
Others 3213342.90 3213302.88
In total 3213342.90 3213302.88
(3) Other Accounts Payable
Other Accounts Payable by Nature of Funds Presented
Items Balance at End of Period Balance at Beginning of Year
Intercourse Funds of Related Parties 4606890.00 3687264.48
Guaranteed Deposit and Deposit 23721815.28 27614619.18
Intercourse Funds between Units 7963932.31 9684592.82
Personal Intercourse Funds 3295630.45 3731133.46
Various Insurances of Employee 2649275.00 3688119.63
Storage Charge 2873402.86 2832948.18
Hebei Jiliang Oil and Fat Co. Ltd.Gains and Losses Divestment during 1747611.95
transition
Others 3523997.70 2335810.73
In total 48634943.60 55322100.43
30.Non-current liabilities due within one year
Item End balance Opening Balance
Long-term Loans due Within One Year 100000000.00 150000000.00Item End balance Opening Balance
Lease Liability due Within One Year 11891031.53 22741185.39
Long-term Loans Interest due Within One Year 319763.89
Bond Interest Payable due Within One Year 7200000.00 2880000.00
Total 119091031.53 175940949.28
31.Other current liability
Item End balance Opening Balance
Value-added tax to be written off 58741540.34 45928019.48
Changes of the Fair Value of the Hedged Item 14511381.20
Total 58741540.34 60439400.68
32.Long term borrowing
Item End balance Opening Balance
Debt of honour 530000000.00 400000000.00
Total 530000000.00 400000000.00
33.Bonds payable
(1) Bonds payable
Item Ending Balance Opening Balance
Corporate Bond 299025000.00 298800000.00
Total 299025000.00 298800000.00
(2) Bond payable situation (not including other financial instruments i.e. the Financial Liabilities preference
shares perpetuities etc)
Coupon The
Release Bond Opening
Name of Bond Face Value rate Issuing Amount Issua
（%） Date Period Balance nce
23 Jingliang
21Aug-
01301680000.0
300000000.00 2.88 22 Aug 3 years 300000000.00
Corporate 0
2023
Bond
301680000.0
Total ∕ ∕ ∕ ∕ 300000000.00
0
(Continued)
Interest Amortization of Repayment
Other Ending Whether
Name of Bond accrued at Premiums or in the
Direct Fees Balance in default
face value Discounts Period
23 Jingliang 01
4320000.00-225000.00306225000.00
Corporate Bond
Total 4320000.00 -225000.00 306225000.00 ∕
34.Lease liabilityItem End balance Opening Balance
Lease Payment 92871464.76 103803204.86
Less: unrecognized Financing Cost 5966648.86 7820276.90
Reclassified as non-current liabilities due within One year 11891031.53 22741185.39
Net Lease Liabilities 75013784.37 73241742.57
35.Long term wage payable
Long-term wage payable presented
Items Balance at End of Period Balance at Beginning of Year
Other Long-term Welfare 5677134.00 5677134.00
In total 5677134.00 5677134.00
36.Deferred Income
Balance at Increase in the Decrease in the Balance at End of Cause of
Items
Beginning of Year Current Period Current Period Period Formation
Government
62503256.674019983.6058483273.07
Subsidy
In total 62503256.67 4019983.60 58483273.07
Among them items involving government subsidy are as follows:
Increase Amount rolled in
Balance at Refund Other Reasons Asset related
Items Receiving in the Charge to non-operating Balance at
Beginning of in this Chan on / income Subsidy Current other Profits income in the End of Period
Year Period ges Refund related
Period current period.Edible Oil
Renewable Clean
Production
Assets
Equipment and 111999.68 28000.02 83999.66
related
Oil Tank Electric
Heating System
Project
Grain & Oil
processing key
technology
Assets
research and 544871.72 38919.42 505952.30
related
industrialization
project forming
fixed assets
Tianjin Binhai
New Zone
industrialized tec
hnological
Assets
transformationand 1425925.73 111111.13 1314814.60
related
zone construction
fund and scientific
technology
expenses
Enterprise
foundation
supporting in the
construction stage Assets
46096611.13638752.0845457859.05
of "Tianjin related
Lingang Industrial
Zone Management
Committee"
Subsidized by Assets
Beijing Municipal 2272477.03 125090.45 2147386.58 related
Food and StrategicIncrease Amount rolled in
Balance at Refund Other Reasons Asset related
Items Receiving in the Charge to non-operating Balance at
Beginning of in this Chan on / income
Subsidy Current other Profits income in the End of Period
Year Period ges Refund related
Period current period.Reserves Bureau
for "Tank
Expansion and
Winterization
Renovation
Project
The relocation 3078110.5 Assets
3078110.50
compensation 0 related
Special subsidy
Assets
for infrastructure 8973260.88 8973260.88
related
investment
4019983.6
In total 62503256.67 58483273.07 —— ——
0
37.Share Capital
Changes in the Current Period（+、-）
Balance at Share Balance at End
Items
Beginning of Year New Share Transfer of of Period
Share Others Sub-total
Donation Provident
Issue
Fund
1. Shares with Restricted -
30869915.00-1275000.0029594915.00
Conditions 1275000.00
(1) State Shareholding
(2) State-owned Legal-person
Shareholding
(3) Other Domestic Capital -
30869915.00-1275000.0029594915.00
Shareholding 1275000.00
Including: Domestic Legal-
person Shareholding
Domestic Natural Person -
30869915.00-1275000.0029594915.00
Shareholding 1275000.00
(4) Foreign Shareholding
Including: Foreign Legal-person
Shareholding
Foreign Natural Person
Shareholding
2. Tradable Shares without
696080336.001275000.001275000.00697355336.00
Restricted Conditions
(1) RMB Ordinary Shares 631105336.00 1275000.00 1275000.00 632380336.00
(2) Domestically Listed Foreign
64975000.0064975000.00
Shares
(3) Listed Foreign Shares
Overseas
(4) Others
In total 726950251.00 726950251.00
38.Capital Reserves
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Capital Premium (Stock
1322887986.381322887986.38
Premium)
Capital Reserves Roll-in Under
112316357.36112316357.36
Original SystemOther Capital Reserves 246603764.33 246603764.33
In total 1681808108.07 1681808108.07
39.Other Comprehensive Incomes
Amounts Occurred in the Current Period
Balance at Less: Other Less: included in other Amounts
Items Beginning of Comprehensive comprehensive income Attributable to Attributable to
Balance at
Occurred
Year Incomes Charged in the previous period Less: Income Parent Minority
End of Period
before Income
at Earlier Stage and transferred to Tax Expense Company Shareholders
Tax in the
and Current Roll- retained income in the After Tax After Tax
Current Period
in Profit and Loss current period
One Other
comprehensive
incomes that won’t be
classified into profit
and loss
Two Other
comprehensive
incomes that will be 1369980.92 142130.77 142130.77 1512111.69
classified into profit
and loss
Including: Converted
difference between
1369980.92142130.77142130.771512111.69
foreign currency
financial statements
Total 1369980.92 142130.77 142130.77 1512111.69
40.Surplus Reserves
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Statutory Surplus
92184862.0792184862.07
Reserves
Free Surplus Reserves 37634827.93 37634827.93
In total 129819690.00 129819690.00
41.Undistributed Profit
Amounts in the Amounts in the Prior
Items
Current Period Period
Adjustment on undistributed profit at end of last year 627555511.45 532904675.62
Adjustment on total number of undistributed profit at
beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 627555511.45 532904675.62
Add: net profit attributable to parent company in the current
24058518.0773581795.36
period
Less: withdrawal statutory surplus reserves
Less: distribution to shareholders 51613467.82
Undistributed profit at end of period 600000561.70 606486470.98
42.Operation Revenue and Operation Cost
(1) Operation Revenue and Operation CostAmounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Prime Business 5543192577.80 5317117982.23 4792494443.33 4604819197.36
Other Business 12714416.34 14897635.94 30739764.85 26151271.78
In total 5555906994.14 5332015618.17 4823234208.18 4630970469.14
(2) Operation revenue and operation cost presented
Contract Category Operation Revenue Operation Cost
Industry and Business-classified
Including: Oil and Oil Seeds 5102927349.82 4970240307.32
Food 440265227.98 346877674.91
Others 12714416.34 14897635.94
Region-classified
Including: North China 2898283251.48 2802952823.15
East China 1322719192.37 1232829464.07
South China 485970049.77 475601613.53
Northeast China 355266820.98 333933488.58
Abroad 249601523.13 249383597.05
Central China 125839395.10 122666307.34
Others 118226761.31 114648324.45
Time for the transfer of commodities classified
Revenue recognition at a given time 5555906994.14 5332015618.17
Sales channel-classified
Including: Direct 3400859827.75 3317529873.23
Distribution 2142332750.05 1999588109.00
Others 12714416.34 14897635.94
In total 5555906994.14 5332015618.17
(3) Performance obligations explanation
Quality
Nature of the Expected assurance
Whether
Time of Important commitment to refund to the category
main
Item performance payment transfer customer by provided by
responsib
obligations terms commodities by the the Company
le person
the company Company and relevant
obligations
Processingsales Mainly Mainly sales of
Upon Statutory
and trading of oil payment oil and oilsees Yes No delivery guarantees
and oilseeds as first snack foodwell as foodstuffs
Note: Company and distributors adopt the payment first method certain credit lines offered by the company
to partial distributors with long-term cooperation and good reputation. For settlement partial direct sale customers
and supermarkets shall be proceeded on agreed payment terms in accordance with the contract
(4) Amortization on remaining performance obligations explanation
Contract has been signed at end reporting period; however the corresponding amount is RMB 619028078.42
for the outstanding obligations or obligations not yet complete fulfilled. The revenue shall be recognized in 2024.
43.Tariff And Annex
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 1930404.14 2164523.24
House Property tax 2996889.52 3040839.14
Land Use Tax 1110300.54 914015.59
Educational Surtax 1367095.51 1563231.46
Vehicle and Vessel Use Tax 18756.16 20323.53
Environmental Protection Fees 54450.43 15744.17
Stamp Tax 4631570.93 3825650.53
Other Taxes and Fees 106559.43 4346.22
In total 12216026.66 11548673.88
44.Sales Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 30377531.25 25300609.41
Sales Promotion Expenses 9624316.03 7282685.02
Warehousing Fees 9713134.98 14257898.37
Depreciation 8454450.87 7985937.31
Material consumption sample and product cost 2868577.30 3712801.42
Repair Costs 281101.68 115097.47
Water and Electricity Fees 553716.94 547038.39
Lease fee 1460132.81 1514904.94
Vehicle Fees 420329.68 481627.88
Packing Expenses 194466.00 251296.30
Terminal Charges 18771.23 146400.18
Travel Expenses 2827900.27 3070763.08
Test and Detection Fees 80186.87 133279.64Items Amounts in the Current Period Amounts in the Prior Period
Others 4862041.03 13637484.20
Total 71736656.94 78437823.61
45.Administration Expenses
Amounts in the Current Amounts in the Prior
Items
Period Period
Employee Compensation 50395828.76 50938225.39
Impairment Costs 12012948.46 13240946.13
Amortization of Assets 3946432.50 3687167.40
Fees of Employing Agent 2806410.34 3545562.82
Repair Costs 1025293.49 1485217.53
Company Expenses 2734054.99 1694907.02
Lease fee 1635076.96 1437456.70
Vehicle Fees 914805.66 922140.12
Security Protection Fees 501625.64 822264.35
Amortization of long-term prepayments 701590.94 549813.65
Information Network Fees 57119.80 41734.11
Commercial Insurance Expenses Workers Insurance
521959.67896801.93
Expense
Travel Expenses 611737.08 413136.56
Business Entertainment Expenses 451086.09 433247.37
Business Entertainment Expenses 518825.54 475656.29
Material Consumption 555492.73 487704.84
Company Expenses 384965.26 301685.55
Labor Protection Fees 155649.15 27309.72
Other Expenses 5810012.78 11497604.73
In total 85740915.84 92898582.21
46.Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Salary 6050611.00 5106613.56
Material fee 3159584.65 4254432.69
Fuel and Power Fee 221731.83 3461.18
Depreciation and amortization 574493.03 179206.98
Design expense 8000.00 9708.74Equipment Cost 14946.90
Transportation Expense 33717.43 10517.31
Others 339299.09 698859.51
In total 10402383.93 10262799.97
47.Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 28960078.11 25265021.07
Less: Interest Income 8925122.62 5832452.30
Exchange Gain or Loss -1401234.64 -2719736.45
Service Charges 965850.29 552216.18
In total 19599571.14 17265048.50
48.Other Profits
Items Amounts in the Current Period Amounts in the Prior Period
Government Subsidy 9669801.08 6149861.75
Return of Service Charges of Withholding
200683.84156397.49
Individual Income Tax
Others 17955.34
In total 9870484.92 6324214.58
49.Investment Income
Items Amounts in the Current Period Amounts in the Prior Period
Long-term equity investment income
10875426.887012296.86
accounted with equity method
Investment income from disposal of wealth
management products
Investment income of disposing trading
financial assets
Investment income obtained during the
169707.51
holding of transactional financial assets
Others -2721.38
In total 10875426.88 7179282.99
50.Profits on Changes in Fair Value
Amounts in the Amounts in the Prior
Source of generating income with changes in fair value
Current Period Period
Trading Financial assets -9906096.90 143869459.30
Including: income with changes in fair value generated by
-9906096.90143869459.30
hedging instruments and hedged item
In total -9906096.90 143869459.30
51.Credit impairment lossAmounts in the Current
Items Amounts in the Prior Period
Period
Accounts receivable bad debt loss -115984.57
Other receivables bad debt loss 1779.74
Total 1779.74 -115984.57
52.Loss from Asset Devaluation
Amounts in the Current Amounts in the Prior
Items
Period Period
Loss on Inventory Price Loss & Impairment loss on
130887.98-25186589.63
contract performance costs
In total 130887.98 -25186589.63
53.Assets Disposal Income
Items Amounts in the Current Period Amounts in the Prior Period
Gains or losses on disposal of fixed assets 23411.62 -2209.46
In total 23411.62 -2209.46
54.Non-operating Income
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit and
Current Period Prior Period
Loss
Non-current assets retirement gains 10274.33
Fines liquidated damages late fees
9309450.433636895.419309450.43
compensation income
Payable amounts not required to be paid 1190843.15 13284.33 1190843.15
Waste disposal gains 49231.02 98808.18 49231.02
Others 54881.03 144239.11 54881.03
In total 10604405.63 3903501.36 10604405.63
55.Non-operating Expenses
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit and
Current Period Prior Period
Loss
Total loss on scrap of non-current assets 83271.40 67613.57 83271.40
Penalty expenditure 4288497.08 65.46 4288497.08
Others 408230.51 460301.41 408230.51
Total 4779998.99 527980.44 4779998.99
56.Income Tax Expenses
(1) List of Income Tax ExpensesItems Amounts in the Current Period Amounts in the Prior Period
Income Tax Expenses of the Current Period 5016214.94 7333690.17
Deferred Income Tax Expenses 9813068.48 25184332.75
Total 14829283.42 32518022.92
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the Current
Items
Period
Total Profits 41016122.34
Income tax expenses calculated by statutory/applicable tax rate 10254030.59
Effect of subsidiary corporations being applicable to different tax rates -377296.99
Adjustment on effect of income tax in the prior period 250584.99
Effect of Non-taxable Incomes
Effect of Non-deductible cost expense and loss 169877.34
Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior
-2623737.65
period
Effect of deductible temporary difference or deductible loss on unconfirmed deferred
11534929.01
income tax in the current period
Effect of Research expenses disables weighted deduction -930668.99
Effect of asset depreciation reserve write-off or reversal -130887.98
Effect of non-taxable investment income -2718856.73
Others -598690.17
Income Tax Expenses 14829283.42
57.Other comprehensive income items and their income tax impact and transferred to profit and loss
See details of‘Appendix V Notes on Items in Consolidated Financial Statements 39. Other Comprehensive
Incomes’
58.Notes to items related cash flow statement
(1) Cash related to operating activities
A. Receiving other cash related to operation activities
Items Amounts in the Current Period Amounts in the Prior Period
Security Deposit 1454397995.52 879899688.90
Intercourse Funds of Other Units 33138626.70 129523949.12
Interest Income 9529738.72 5111702.84
Intercourse Funds of Related Parties 7215785.96 2409511.39
Non-operating Income and other income 8976653.99 4937540.00Items Amounts in the Current Period Amounts in the Prior Period
Others 1657862.05 1929648.28
Total 1514916662.94 1023812040.53
(2) Cash related to investment activities
Other cash payment related to investment activities
Amounts in the Amounts in the
Items
Current Period Prior Period
Transitional gains and losses etc. returned to Hebei Jiliang Oil and Fat
1747611.95
Co. Ltd.In total 1747611.95
(3) Cash related to financing activities
A. Other cash paid related to financing activities
Items Amounts in the Current Period Amounts in the Prior Period
Lease payment amount 13486733.94 574077.78
In total 13486733.94 574077.78
B. Various liability change situation From Financing Activities
Increase in this period Decrease in this period
Beginning
Item Ending Balance
Balance Non-cash Non-cash
Cash Movement Cash Movement
Movement Movement
Short-term borrowing 1163479691.67 907734559.68 17262148.84 1051759139.08 1036717261.11
Long-term borrowing 550319763.89 130000000.00 4800222.22 55119986.11 630000000.00
Bond Payable 301680000.00 4545000.00 306225000.00
Lease Liability 95982927.96 4408621.88 13486733.94 86904815.90
Total 2111462383.52 1037734559.68 31015992.94 1120365859.13 2059847077.01
Note: amount presented above includes that of reclassification to non-current liabilities due in one year
59.Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Amounts in the
Supplementary Materials
Current Period Prior Period
1. Adjusting net accounting profit to operating cash flow —— ——
Net Profit 26186838.92 84776482.08
Add: Assets Impairment Reserves -130887.98 25186589.63
Credit impairment loss -1779.74 115984.57
Fixed Assets Depreciation Oil-and-gas Assets Depreciation and Productive Biological Assets Depreciation 44390959.06 50006678.17
Right-of-use assets depreciation 10243162.76 727090.29Amortization of Intangible Assets 8529107.14 7453613.22
Amortization of Long-term Deferred Expenses 701590.94 549813.65
Losses on Disposal of Fixed Assets Intangible Assets and Other Long-term Assets (Fill in profit with symbol
-23411.622009.46
“－”)
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) 60624.57
Losses on Changes in Fair Value (Fill in profit with symbol “－”) 9906096.90 -143869459.30
Financial Expenses (Fill in profit with symbol “－”) 19144560.53 17265048.50
Investment Losses (Fill in profit with symbol “－”) -10875426.88 -7179282.99
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) 3346527.87 934516.78
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) 6466540.61 24249815.98
Decrease in Inventory (Fill in increase with symbol “－”) -145001449.86 -114286861.49
Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) -344857880.05 -360191592.16
Increase in Items of Operating Receivables (Fill in decrease with symbol “－”) 150910029.31 276849383.25
Net Cash Flows from Operating Activities -221065422.09 -137349545.79
2. Major investment and financing activities that do not involve cash payments —— ——
3. Net change conditions in cash and cash equivalents
Cash balance at end of period 1170000193.27 1251666904.81
Less: cash balance at beginning of period 1540639079.95 551439110.07
Cash and cash equivalent net increase -370638886.68 700227794.74
(2) Composition of cash and cash equivalents
Balance at End of Balance at Beginning
Items
Period of Period
One. Cash 1170000193.27 1540639079.95
Including: Cash on hand 16474.45 9949.26
Bank deposit available for payment at any time 1077499569.76 1423321137.06
Other currency funds available for payment at any time 92484149.06 117307993.63
Two. Cash Equivalents
Three. Balance of Cash and Cash Equivalents at End of Period 1170000193.27 1540639079.95
60.Monetary Items of Foreign Currency
Monetary Items of Foreign Currency
Balance of Foreign Currency at Exchange Rate Balance of Converting to
Items
End of Period Convert RMB at End of Period
Monetary fund —— —— 141976671.98
Including: US Dollars 19921517.65 7.1268 141976671.98
Accounts receivable —— —— 592736.91Balance of Foreign Currency at Exchange Rate Balance of Converting to
Items
End of Period Convert RMB at End of Period
Including: US Dollars 83170.13 7.1268 592736.91
61. Lease
(1) As Lessee
Item Amount
Interest cost on the lease liability 1901742.24
Short-term lease expenses for simplified processing of related asset costs or profit
3494753.60
or loss in the current period
Total Cash Outflow related to lease 13860930.58
(2) As Lessor
Operating lease as lessor
Including: Income related to variable lease payments
Item Leasehold income
not included in lease income
Leasehold income 1077492.03
Total 1077492.03
VI Research and Development Expenses
Disclosed by nature of expenses
Item Amount in current period Amount in prior period
Salary 6050611.00 5106613.56
Material expense 3159584.65 4254432.69
Fuel & Power expenses 221731.83 3461.18
Depreciation and Amortization Fee 574493.03 179206.98
Design Fee 8000.00 9708.74
Equipment cost 14946.90
Travel expense 33717.43 10517.31
Others 339299.09 698859.51
Total 10402383.93 10262799.97
Including: R&D expenditure 10402383.93 10262799.97
Capitalized R&D expenditure
VII Change in Consolidation Scope
1.There were no changes in the scope of consolidation for the company during the reporting period
VIII Equities in Other Entities
1. Equities in Subsidiaries(1) Composition of the Company
Registered
Principle Shareholding Ratio (%)Capital（In ten Registered Nature of Mode ofName of Subsidiary Place of
thousands Place Business Acquisition
BusinessYuan） Direct Indirect
Agricultural
Jingliang (Tianjin) Grain Product and By Merger under the
Tianjin 56000.00 Tianjin 70.00
and Oil Industry Co. Ltd. Product same control
Processing
Beijing Jingliang Oil and Grain and oil Merger under the
Beijing 5000.00 Beijing 100.00
Fat Co. Ltd. trade same control
Beijing Guchuan Edible Oil Grain and oil Merger under the
Beijing 12558.46 Beijing 100.00
Co. Ltd. trade same control
Agricultural
Beijing Eisen-Lubao Oil Product and By Merger under the
Beijing 5050.00 Beijing 100.00
Co. Ltd. Product same control
Processing
Beijing Tianweikang Oil
Merger under the
Distribution Center Co. Beijing 500.00 Beijing Warehousing 100.00
same control
Ltd.Beijing Guchuan Bread Merger under the
Beijing 5550.00 Beijing Food Processing 100.00
Food Co. Ltd. same control
Combination not
Zhejiang Xiao Wang Zi
Hangzhou 5156.00 Hangzhou Food Processing 17.6794 77.2072 under same
Food Co. Ltd.control
Hangzhou Lin'an
Hangzhou 4900.00 Hangzhou Food Processing 17.6794 77.2072 ditto
Xiaotianshi Food Co. Ltd.Liaoning Xiao Wang Zi
Liaoning 3000.00 Liaoning Food Processing 17.6794 77.2072 ditto
Food Co. Ltd.Linqing Xiao Wang Zi Food
Linqing 2132.50 Linqing Food Processing 17.6794 77.2072 ditto
Co. Ltd.Hangzhou Lin'an
Chunmanyuan Agricultural Hangzhou 600.00 Hangzhou Food Processing 17.6794 77.2072 ditto
Development Co. Ltd.Jingliang (Singapore) Invest in the
Singapore 643.35 Singapore Grain trade 100.00
International Trade Co. Ltd. establishment
Beijing jingliang gubi oil Grain and oil Invest in the
Beijing 5000.00 Beijing 100.00
and grease co. LTD trade establishment
Beijing Jingliang Food Investment Merger under the
Beijing 105658.96 Beijing 100.00
Co. Ltd. management same control
Jingliang (Caofeidian)
Invest in the
Agricultural Development Tangshan 5000.00 Tangshan Plantation 51.00
establishment
Co. Ltd.Jingliang (Yueyang) Grain Agricultural Invest in the
Hunan 68000.00 Hunan 65.00
and Oil Industry Co. Ltd. products establishment
Jingliang (Beijing) Food
Commercial Invest in the
Marketing Management Beijing 800.00 Beijing 100.00
services establishment
Co. Ltd
Agricultural
Jingliang (Yangpu) Grain Product and By Invest in the
Hainan 50000.00 Hainan 65.00
and Oil Industry Co. Ltd. Product establishment
Processing
(2) Major non-wholly-owned subsidiaries
Shareholding Profit And Loss Attributable Dividends Distributed to Balance of Minority
Name of Subsidiary Ratio of Minority to Minority Shareholders for Minority Shareholders for the Shareholder's Equity at
Shareholders (%) the Current Period Current Period the End of the Period
Jingliang (Tianjin) Grain and Oil
30.00%677459.84222943883.54
Industry Co. Ltd.Zhejiang Xiao Wang Zi Food Co.
5.11%2303461.0046752334.36
Ltd.
(3) Important financial information on major non-wholly-owned subsidiariesClosing Balance
Name of Subsidiary
Non-current Current Non-current
Current Assets Total Assets Total Liabilities Assets Liabilities Liabilities
Jingliang (Tianjin) Grain and
1979394102.08 692588050.46 2671982152.54 1534023560.02 394812314.02 1928835874.04 Oil Industry Co. Ltd.
Zhejiang Xiao Wang Zi Food
580424113.52323527826.28903951939.8083043388.6114650394.8897693783.49
Co. Ltd.
(Continued)
Opening Balance
Name of Subsidiary
Non-current Current Non-current
Current Assets Total Assets Total Liabilities Assets Liabilities Liabilities
Jingliang (Tianjin) Grain and
1690703873.13 715120631.78 2405824504.91 1401536126.49 263400299.40 1664936425.89 Oil Industry Co. Ltd.
Zhejiang Xiao Wang Zi Food
556236641.71333141896.19889378537.90103727129.3817728505.38121455634.76
Co. Ltd.
(Continued)
Amount incurred in the current period
Name of Subsidiary Total Cash Flow from Operating
Net Profit Comprehensive Operating
Income
Income Activities
Jingliang (Tianjin) Grain and Oil
1948859877.072258199.482258199.48-339856449.70
Industry Co. Ltd.Zhejiang Xiao Wang Zi Food Co.
377946737.7738335253.1738335253.1712319557.86
Ltd.
(Continued)
Amount incurred in the prior period
Name of Subsidiary Total Cash Flow from Operating
Net Profit Comprehensive Operating
Income
Income Activities
Jingliang (Tianjin) Grain and Oil
2364528344.2325638449.6025638449.60568809524.65
Industry Co. Ltd.Zhejiang Xiao Wang Zi Food Co.
428413574.8246252797.7746252797.77-2843845.04
Ltd.
2. Equity in Joint Ventures or Affiliates
(1) Important Joint Ventures or Affiliates
Shareholding Accounting
Principle Ratio (%) Treatment Methods
Name of Joint Venture or Registered Nature of
Place of for Investment in
Affiliate Place Business
Business Direct Indirect Joint Ventures or
Affiliates
Beijing Zhengda Feed Co.Beijing Beijing Manufacturer 50.00 Equity method
Ltd.SINOGRAIN (Tianjin) Transportation
Warehousing Logistics Tianjin Tianjin and 30.00 Equity method
Co. Ltd. warehousing
Jingliang Missme Catering
Beijing Beijing Manufacturer 48.00 Equity method
Management (Beijing) Co.Ltd.
(2) Important financial information on major joint ventures
Closing Balance/Current Opening Balance/Last Term
Amount Amount
Item
Beijing Zhengda Feed Co. Beijing Zhengda Feed Co.Ltd. Ltd.Current assets 318764832.62 319779538.52
Including: cash and cash equivalents 10014848.50 12804613.72
Non-current assets 19836156.12 19900378.39
Total assets 338600988.74 339679916.91
Current liabilities 56845400.96 58198209.39
Non-current liabilities 20340517.28 24694621.01
Total liabilities 77185918.24 82892830.40
Minority shareholder's equity
Shareholders' equity attributable to the parent
261415070.50256787086.51
company
Share of net assets based on shareholding ratio 130707535.25 128393543.26
Book value of equity investment in joint
130707535.25128393543.26
ventures
Operating income 141505276.76 164726777.97
Financial costs -4813744.60 -3959367.67
Income tax expense 1414888.95 2271436.27
Net profit 3976901.01 6478834.60
Dividends received from joint ventures in the
current period
(3) Important financial information on major affiliates
Opening Balance/Last Term
Closing Balance/Current Amount
Amount
Item
SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co. Ltd. Warehousing Logistics Co. Ltd.Current assets 59998800.78 59019697.43
Non-current assets 955410475.33 886062609.97
Total assets 1015409276.11 945082307.40
Current liabilities 32028004.29 33964613.24
Non-current liabilities 554104200.08 506182569.64
Total liabilities 586132204.37 540147182.88
Minority shareholder's equity
Shareholders' equity attributable to 429277071.74 404935124.52Opening Balance/Last Term
Closing Balance/Current Amount
Amount
Item
SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co. Ltd. Warehousing Logistics Co. Ltd.the parent company
Share of net assets based on
128783121.52121480537.36
shareholding ratio
Book value of equity investment in
128783121.52121480537.36
affiliates
Fair value of equity investment in
affiliates with open offers
Operating income 46973215.82 31195596.27
Net profit 24341947.22 12576265.20
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 24341947.22 12576265.20
Dividends received from affiliates
in the current period
(4) Non-important aggregated financial information on affiliates
Closing Balance/Current Opening Balance/Last
Item
Amount Term Amount
Associated enterprises ： Jingliang Missme
Catering Management (Beijing) Co. Ltd.Total of Investment Book Value 6307415.52 6352166.62
Items calculated according to shareholding ratio
-- Net profit -44751.10
-- Other comprehensive income
-- Total comprehensive income -44751.10
IX Government Subsidies
Government subsidy included in current profit or loss
Item Current Amount Last Term Amount
VAT refunds 4245468.93 2909904.59
Supporting subsidy during the establishment phase for Tianjin
638752.08638752.08
Lingang Industrial zone management committee
Special subsidy for infrastructure input 1304400.00
Compensation for demolition and relocation 3078110.50
The disabled employment subsidy 194719.10 75262.57
Development zone extension supporting bonus 261643.00Item Current Amount Last Term Amount
Beijing Municipal Food and Material Reserve Bureau "Oil Tank
274970.45125090.45
Expansion and Winter Transformation Project" subsidy fund
Subsidy for job stabilization/University student employment
156055.9922207.22
subsidy/Social security subsidy
Tianjin Binhai New Area industrial technological transformation and
111111.13111111.12
park construction funds and science and technology expenditure
Tieling Mayor qualification bonus 200000.00
Urban land use tax refund 101200.00
Tianjin Port Free Trade Zone Development and Reform Bureau 2020
71000.00
the 1st to 4th batch of Tianjin energy saving special funds
Special Funds for Intelligent Manufacturing Issued by the Bureau of
Science Technology and Industrial Innovation of Tianjin Port Free 100000.00
Trade Zone (District Portion)
Personal Tax Handling Fee Refund 200638.84Bureau of Economic and Information Technology “ seize the
60000.00opportunity to fight for the economy” subsidies
Incentive Funds for Promoting Accelerated Development of Financial
600000.00
Industry in Hainan Province
Beijing Economic Development Zone "ShouShengGui" Reward 300000.00
Others 70657.90 169290.72
In total 9870484.92 6149861.75
X Risks Related to Financial Instruments
1. Risks Related to Financial Instruments
The Company's principal financial instruments include equity investment creditors' investment borrowing
accounts receivable accounts payable etc. The primary purpose of these financial instruments is to finance the
operations of the Company. The Company has a variety of other financial assets and liabilities directly arising from
its operations such as accounts receivable and accounts payable.The main risks caused by the Company's financial instruments are credit risk liquidity risk and market risk.
(1) Classification of financial instruments
* Book value of various financial assets on the balance sheet date
A. June 30 2024
Financial assets
Financial assets
measured at fair
Financial assets measured at fair value
value and the
Financial asset items measured at and the changes Total
changes recorded in
amortized cost recorded in other
current profits and
comprehensive income
losses
Monetary funds 1181398242.40 1181398242.40Financial assets
Financial assets
measured at fair
Financial assets measured at fair value
value and the
Financial asset items measured at and the changes Total
changes recorded in
amortized cost recorded in other
current profits and
comprehensive income
losses
Derivative financial
31223815.7231223815.72
assets
Accounts receivables 109483882.36 109483882.36
Accounts receivable
2442328.822442328.82
financing
Other receivables 386904030.80 386904030.80
Investment in other
20000000.0020000000.00
equity instruments
Other current assets 330613399.83 330613399.83
Other non-current
10541666.6610541666.66
assets
B. December 31 2023
Financial assets Financial assets
Financial assets measured at fair measured at fair value
Financial asset
measured at value and the changes and the changes Total
items
amortized cost recorded in current recorded in other
profits and losses comprehensive income
Monetary funds 1543385751.86 1543385751.86
Derivative
31684620.0031684620.00
financial assets
Accounts
115780372.55115780372.55
receivables
Accounts
receivable 2502308.90 2502308.90
financing
Other receivables 303099589.59 303099589.59
Investment in other
20000000.0020000000.00
equity instruments
Non-current assets
22188083.3422188083.34
due within 1 year
Other current
238358924.24238358924.24
assets
Other non-current
10390000.0010390000.00
assets
* Book value of various financial liabilities on the balance sheet date
A. June 30 2024Financial liabilities
measured at fair value and Other financial
Financial liability items Total
changes included in current liability
profits and losses
Short term loans 1036717261.11 1036717261.11
Accounts payable 70607024.80 70607024.80
Other Payables 71848286.50 71848286.50
Long term loans 530000000.00 530000000.00
Notes payable 299025000.00 299025000.00
Non-current liability due within one year 100000000.00 100000000.00
B. December 31 2023
Financial liabilities
measured at fair value and Other financial
Financial liability items Total
changes included in liability
current profits and losses
Short term loans 1163479691.67 1163479691.67
Derivative financial liability 15805393.88 15805393.88
Accounts payable 82474823.84 82474823.84
Other Payables 79618198.78 79618198.78
Long term loans 400000000.00 400000000.00
Notes payable 298800000.00 298800000.00
Non-current liability due within one year 153199763.89 153199763.89
(2) Credit Risk
On June 30 2024 the largest credit risk exposure that may cause financial loss to the Company mainly comes
from the loss on financial assets of the Company due to the failure of the other party to perform its obligations
including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument measured
at fair value its book value reflects its risk exposure instead of their biggest risk exposure and its biggest risk
exposure may vary with the change of its future fair value.In order to reduce the credit risk the Company sets relevant policies to control its exposure sets corresponding
credit periods based on customer’s financial position possibility of obtaining guarantees from third parties credit
records and other factors such as current market conditions and other credit qualifications for customer assessment
and implements other monitoring procedures to ensure that necessary measures are taken to recover overdue credits.In addition the Company reviews the collection of individual account receivables on each balance sheet date in
order to make sufficient provision for bad debts for collectable amounts. Therefore the Company's management
believes that the Company's credit risk has been greatly reduced.The liquidity funds of the Company are deposited in banks and other financial institutions with high creditrating so the credit risk of liquidity funds is low.
(3) Liquidity Risk
When managing liquidity risk the Company keeps and monitors adequate cash and cash equivalents approved
by its management in order to meet the Company's business needs and reduce the influences of cash flow
fluctuations. The Company's management monitors the use of bank loans and ensures the performance of loan
agreements.Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
June 30 2024
Item One To Five Above
Within One Year Total
Years Five Years
Short term loans 1036717261.11 1036717261.11
Accounts payable 70607024.80 70607024.80
Other Payables 71848286.50 71848286.50
Long term loans 530000000.00 530000000.00
Notes payable 299025000.00 299025000.00
Non-current liability due
100000000.00100000000.00
within one year
(Continued)
December 31 2023
Item One To Five Above
Within One Year Total
Years Five Years
Short term loans 1163479691.67 1163479691.67
Derivative financial liability 15805393.88 15805393.88
Accounts payable 82474823.84 82474823.84
Other Payables 79618198.78 79618198.78
Long term loans 400000000.00 400000000.00
Notes payable 298800000.00 298800000.00
Non-current liability due
153199763.89153199763.89
within one year
(4) Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due
to the change of market price. Market risk mainly includes interest rate risk foreign exchange risk and other price
risks such as equity instrument investment price risk.A. Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest
rates bring the Company the interest rate risk on cash flow while the financial liabilities at fixed interest rates bringthe Company the interest rate risk on fair value. The Company decides the relative proportion of fixed interest rate
contracts and floating interest rate contracts according to the current market environment.As of June 30 2024 the Company's interest-bearing liabilities under floating rate contracts denominated in
RMB amounted to RMB 550000000.00 and those under fixed rate contracts denominated in RMB amounted to
RMB 1415742261.11.B. Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities
(when revenues and expenditures are settled in foreign currencies other than the Company's accounting standard
currency) and its net investments in its overseas subsidiaries.The Company's exposure to foreign exchange risks is mainly related to US dollars. Except that some of the
Company's subsidiaries purchase and sell in US dollars other major business activities of the Company are priced
and settled in RMB.As on June 30 2024 the Company's assets and liabilities are in RMB except the assets or liabilities described
in the table below are in US dollars.The foreign exchange risks arising from the assets and liabilities of such foreign currency balances may have
an impact on the Company's operating results.Items Closing Balance Opening Balance
Monetary funds 141976671.98 132735270.36
Accounts Receivables 592736.91
Other Receivables 60753187.26
The company adopts sensitivity analysis technology to analyze the possible impact of reasonable and possible
changes of risk variables on current profit and loss or owner's equity. As any risk variable rarely changes in isolation
and the correlation between variables will have a significant effect on the final impact amount of a risk variable
change the following content is carried out under the assumption that the change of each variable is independent.On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and
other variables remain unchanged the after-tax impact of possible reasonable changes in exchange rate on current
profits and losses and rights and interests is as follows:
Current period
Item [US dollar] Exchange Gross profit/net profit Increase/(decrease) in
rate Increase
increase /(decrease) shareholders' equity
/(decrease)
The RMB yuan depreciated
5%1000234.391000234.39
against the US dollar
The RMB yuan appreciated
-5%-1000234.39-1000234.39
against the US dollar
（Continued）Prior period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
The RMB yuan depreciated
5%237923.56237923.56
against the US dollar
The RMB yuan appreciated
-5%-237923.56-237923.56
against the US dollar
2. Hedging
(1) The Company undertake risk management through hedging operation
Effects of
Expected
The economic risk
Qualitative and effective
Corresponding risk relationship between exposure
quantitative achievement
Item management the hedged project & from the
information on of risk
strategy and target relevant hedged relevant
hedged risk management
instruments hedged
objectives
activities
Expected Fair value or
Using the hedging Qualitative: non- cash flow due to the
function of futures credit risk hedged risk of hedged
instruments to carry including basis risk project and relevant The target of
out hedging substitute risk hedging instruments expected risk
Oil and Effectively
business effectively supply-demand risk move in opposite management
Oil avoid risk
avoid the risk of etc. direction has been
Seeds exposure
market price Quantitative: market By the Changes with basically
fluctuations in price fluctuation for the same base variable achieved
order to achieve the hedged project or similar base
stable management and instruments variable that is
economically relevant
(2) The company conducts eligible hedging business and applies hedging accounting
Hedging Adjustments
on book value of Effect of
Book value hedged item which hedging
Hedging validity and
related to the has been recognized accounting on
Item sources of hedging
hedged Item in which comprises of the company's
invalidity aspect
and instruments hedged item financial
accumulated fair statements
value
Hedging Risk Type
The invalidated portion of
Risk to changes in
fair value hedges during
the fair value of 330613399.83 330613399.83 Note 1
the financial statement
hedging
period is not material.Hedging Type
The invalidated portion of
Fair value hedging 31223815.72 31223815.72 fair value hedges during Note 1
the financial statement
period is notmaterial.Effective
Hedging
Note 1: The Company is engaged in the production and processing of imported soybeans and related products.In order to hedge the risk of changes in the prices of imported soybeans and other products the Company uses the
following futures contracts to manage the commodity price risk faced by its holdings of inventory and unrecognized
firm purchase commitment.The Company uses standard soybean meal and soybean oil futures contracts on the Dalian Commodity
Exchange to hedge the Company's holdings of soybean meal and soybean oil inventories as well as its unrecognized
firm purchase commitments as a means of hedging the Company's exposure to the risk of changes in fair value
arising from fluctuations in the market price of imported soybeans; the use of standard futures contracts for soybeans
palm oil soybean oil rapeseed oil and other futures contracts on the Dalian Commodity Exchange and Zhengzhou
Commodity Exchange Hedging of certain inventories of domestic soybeans palm oil soybean oil rapeseed oil and
other Oil and Oil Seeds held by the Company as well as unrecognized firm purchase commitment as a means of
hedging the risk of changes in fair value arising from fluctuations in the market prices of domestic soybeans palm
oil soybean oil rapeseed oil and other Oil and Oil Seeds borne by the Company.The changes in market prices of soybean meal and soybean oil produced by the Company's processing of
imported soybeans contain a risk component associated with the standard soybean meal and soybean oil futures
contracts which the Company designates as the hedged item and the standard soybean meal and soybean oil futures
contracts as the hedging instruments. There is a correlation between the economic relationship between the hedged
item and the hedging instrument such that the soybean meal and soybean oil futures contracts and the value of the
soybean meal and soybean oil squeezed from imported soybeans change in opposite directions and are correlated
because they are exposed to the same hedged risk. The movements in the market prices of domestic soybeans palm
oil soybean oil rapeseed oil and other Oil and Oil Seeds operated by the Company contain a risk component
associated with the standard soybean palm oil soybean oil rapeseed oil and other Oil and Oil Seeds futures
contracts respectively and the Company designates this risk component as the hedged item and the standard
soybean palm oil soybean oil and rapeseed oil and other Oil and Oil Seeds futures contracts as hedging instruments.Through qualitative analysis the Company determined that the ratio of the number of hedging instruments to the
number of hedged items should not exceed 0.9:1.The Company utilizes fair value hedges for these types of hedges and the specific hedging arrangements are
as follows:
Hedged Items Hedging Instruments Hedging Methods
Risk components in inventories and Soybean oil soybean meal standard
Use of commodity
unrecognized firm purchase commitments soybean palm oil rapeseed oil and
futures contracts to lock
(soybean oil soybean meal domestically other Oil and Oil Seeds futures
in price fluctuations for
produced soybeans palm oil rapeseed oil contracts on the Dalian and
spot and unrecognized
and other Oil and Oil Seeds) Zhengzhou Commodity Exchangefirm purchase
commitment
During the reporting period the Company's hedging instruments hedged the gains and losses of the hedged
items and the realized gains and losses from the combination of futures and spot amounted to RMB143892300.XI Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
Fair Values at the End of the Period
Item First Level Second Level Third Level
Fair Value Fair Value Fair Value Total
Measurement Measurement Measurement
One. Continuous fair value measurement
Ⅰ. Transactional financial assets 31223815.72 31223815.72
1. Financial assets that are measured at fair
value and whose changes are included in 31223815.72 31223815.72
the current profits and losses
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Derivative financial assets 31223815.72 31223815.72
2. Financial assets designated as fair value
through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Others
Ⅱ. Other debt investment
Ⅲ. Investment in other equity instruments 20000000.00 20000000.00
Total assets continuously measured at
31223815.7220000000.0051223815.72
fair value
Ⅵ.Transactional financial liabilities
1. Financial liabilities measured at fair
value with changes included in current
profits and losses
Including: transactional bonds issued
derivative financial liability
others
2. Financial liabilities designated as fair
value through profit or loss
Total liabilities continuously measured
at fair value
2.Basis for determining market prices of continuous and non-continuous first level fair valuemeasurement items
The Company makes offers for first level fair value measurement according to open contracts of the futures
exchange and the quote from the bank on financial product at the end of the period.
3.Continuous and non-continuous third-level fair value measurement items adopt valuation techniques
and qualitative and quantitative information of important parameters
The company's investment in other equity instruments of the third level fair value measurement project is the
“three notes”equity investment that without control joint control and significant influence held by the company.On the basis of analyzing the operation status of the invested enterprise and combining with relevant situations the
company takes the investment cost as the fair value of other equity instrument investment for measurement at the
end of the period.XII Related Parties and Related Party Transactions
1. Parent Company of the Company
Registered Proportion of Proportion of
Capital Shares Held by Voting Power Name of Parent Registere Nature of
Parent Company Held by Parent
Company d Place Business (ten thousand in the Company Company in the
Yuan) (%) Company (%)
Beijing Grain Group Investment
Beijing 90000.00 39.68 39.68
Co. Ltd. Management
Note: The ultimate controlling party is Beijing State-owned Capital Operation Management Co.Ltd.
2. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
3. Joint Ventures and Affiliates of the Company
See 2. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.
4. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Liubiju Foods Co.Ltd Controlled by the ultimate controlling party
Shanghai Shounong Investment Holding Co.Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co.Ltd Controlled by the ultimate controlling party
Beijing Dahongmen Grain Storage Co.Ltd Controlled by the ultimate controlling party
Beijing Gushun Foods Co.Ltd Controlled by the ultimate controlling party
Hebei Sanyuan Foods Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang E-commerce Co.Ltd Controlled by the ultimate controlling party
Beijing Hundred Years Chestnut Garden Ecological
Controlled by the ultimate controlling party
Agriculture Co.LtdName of Other Related Party Relationship with the Company
Beijing Sanyuan Foods Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Dahongmen Wulinlian Food Co.Ltd Controlled by the ultimate controlling party
Beijing Heiliu Herding Technology Co.Ltd Controlled by the ultimate controlling party
Beijing Ancient Boat Rice Co.Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co.Ltd Controlled by the ultimate controlling party
Beijing Shucheng Shanshui Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Bai Jiayi Food Co.Ltd Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trading Co.Ltd Controlled by the ultimate controlling party
Beijing Zhangxin Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Haidian Xijiao Grain and Oil Supply Station Co.Ltd Controlled by the ultimate controlling party
Beijing No.34 Food Supply Department Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Dot-to-Dot E-commerce Co.Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Commercial Chain Co.Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management
Controlled by the ultimate controlling party
Co.Ltd
Beijing Shounong Consumption and Poverty Alleviation
Controlled by the ultimate controlling party
Double Creation Center Co.Ltd
Beijing Yunong Quality Agricultural Products Cultivation
Controlled by the ultimate controlling party
Co.Ltd
Beijing Shounong Taste Group Co.Ltd Controlled by the ultimate controlling party
Beijing Wang Zhihe Food Co.Ltd Controlled by the ultimate controlling party
Hebei Shounong Modern Agriculture Technology Co.Ltd Controlled by the ultimate controlling party
Shanghai Shounong Commercial Management Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Group Finance Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Group Co.Ltd Controlled by the ultimate controlling party
Shandong Fukuan Biological Engineering Co.Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Jinxing Duck Industry Co.Ltd Controlled by the ultimate controlling party
Beijing Xinderun Agricultural Tourism Development Co.Ltd Controlled by the ultimate controlling party
Beijing Ailai Fahi Foods Co.Ltd Controlled by the ultimate controlling party
Beijing North Beijing Sugar & Wine Sales Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Yihe Sunshine Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Big Kitchen Supply Chain Management
Controlled by the ultimate controlling party
Group Co.LtdName of Other Related Party Relationship with the Company
Beijing Jinggou Taiyu Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Municipal Grain Research Institute Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Green Valley trading Co. LTD Controlled by the ultimate controlling party
Beijing Jinggong Logistics Co.Ltd Controlled by the ultimate controlling party
Beijing Sanjiadian Grain Storage Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Canal Grain and Oil Trading Co.Ltd Controlled by the ultimate controlling party
Beijing Jingjing Jingu Grain Purchasing and Marketing
Controlled by the ultimate controlling party
Co.Ltd
Beijing Longqing Xiadu Military Grain Supply Co.Ltd Controlled by the ultimate controlling party
Beijing Desheng Hotel Co.Ltd Controlled by the ultimate controlling party
Beijing Shuangtong Huihe Agricultural Science and
Controlled by the ultimate controlling party
Technology Development Co.Ltd
Beijing Shounong Xiangshan Conference Center Co.Ltd Controlled by the ultimate controlling party
Beijing Beijiao Farm Co.Ltd Controlled by the ultimate controlling party
Beijing Yanqing Farm Co.Ltd Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Biotechnology Group Co.Ltd Controlled by the ultimate controlling party
Tianjin Xincheng Kanda Pharmaceutical Co.Ltd Controlled by the ultimate controlling party
Beijing Xing Fashion Trade Co.Ltd Controlled by the ultimate controlling party
Beijing Taoshan Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Shenghua Sihe Asset Management Co.Ltd Controlled by the ultimate controlling party
Beijing Municipal Grain Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Gurun Trade Ltd. Controlled by the ultimate controlling party
Beijing Shounong Food Emergency Security Center Co.Ltd Controlled by the ultimate controlling party
Beijing Yue Sheng Zhai Halal Food Co.Ltd Controlled by the ultimate controlling party
Beijing Yanqi Yue Sheng Zhai Halal Food Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Meat Food Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Yunong Quality Agricultural Products Cultivation
Controlled by the ultimate controlling party
Co.Ltd Huairou Branch
Beijing Shounong Development Co.Ltd. Controlled by the ultimate controlling party
Beijing Nanyuan Plant Oil Factory. Controlled by the ultimate controlling party
Beijing Liubiju Food Co. Ltd. Huairou Brewery Controlled by the ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co.Ltd Feed
Controlled by the ultimate controlling party
BranchName of Other Related Party Relationship with the Company
Beijing Sugar Cigarette And Wine Group Co.Ltd. Sugar
Controlled by the ultimate controlling party
Management Branch
Beijing Changyang Farming Co. Ltd. Controlled by the ultimate controlling party
Beijing Southern Rural Agricultural Production and
Controlled by the ultimate controlling party
Operation Management Co. Ltd.Beijing Beishui Yongxing Aquatic Products Sales Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Jinghua Tea Industry Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Moqi Zhonghong Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Vegetable Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Muxiangyuan Qingzhen Meat Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Herding Technology Co.Ltd Food Center Controlled by the ultimate controlling party
Beijing Huadu Sales Co. Ltd. Controlled by the ultimate controlling party
Hebei Anping Dahongmen Food Co. Ltd. Controlled by the ultimate controlling party
Kaifeng Dahongmmen Meat Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Haiyunxing shuichan Food Co. Ltd Controlled by the ultimate controlling party
Beijing Jingmen Lianshi Asset Operation Management Co.Controlled by the ultimate controlling party
Ltd.Beijing Shounong Commercial Chain Co. Ltd. Yanqing
Controlled by the ultimate controlling party
Branch
Beijing Shounong Xiangshan Commercial Co. Ltd. Controlled by the ultimate controlling party
Beijing Xinanjiao Grain Stroage Co. Ltd. Controlled by the ultimate controlling party
Kangtai Culture Branch of Beijing Ershang Group Co. Ltd Controlled by the ultimate controlling party
Beijing Cailanzi Group Co. Ltd Controlled by the ultimate controlling party
Beijing Ershang Jingshen Seafood Co. Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co. Ltd Controlled by the ultimate controlling party
Beijing Changhua Property Service Center Co. Ltd Controlled by the ultimate controlling party
Beijing Huanong Materials Co. Ltd Controlled by the ultimate controlling party
Beijing Sidaokou Aquatic Products Trading Market Co. Ltd Controlled by the ultimate controlling party
Fruit Business Branch of Beijing Nankou Farm Co. Ltd. Controlled by the ultimate controlling party
Beijing Taiyu Property Management Co. Ltd Controlled by the ultimate controlling party
Fresh Supermarket First Branch of Beijing Xinderun Hotel
Controlled by the ultimate controlling party
Management Co. Ltd.Fengzhen DahongmenAgri-animal Husbandry Co. Ltd Controlled by the ultimate controlling party
Huai'an Jingliang Lvgu Food Co. Ltd Controlled by the ultimate controlling party
Shanghai Sanyuan Dairy Co. Ltd Controlled by the ultimate controlling party
Tongliao Dacang Grain Trading Co. Ltd Controlled by the ultimate controlling partyName of Other Related Party Relationship with the Company
Wang Zhihe (Fujian) Food Co. Ltd Controlled by the ultimate controlling party
Beijing Jingtang Dingsheng Trading Co. Ltd Controlled by the ultimate controlling party
Beijing Baiyu Food Co. Ltd Controlled by the ultimate controlling party
Beijing Haidian District two business vocational skills
Controlled by the ultimate controlling party
training school
5. Related-party Transactions
(1) Related-party transactions for purchasing and selling goods and provision and acceptance of labor services
Purchase of goods or acceptance of labor services
Amount of
transactions Whether the
Related-party CurrentRelated Party approved（in tentransaction Last Term
Transaction Amount limit is Amount
thousands
exceededYuan）
Beijing Gushun
Purchase of goods 7564498.25 1800.00 No 6462585.18
Foods Co.Ltd
Other related
Purchase of goods 9794747.08 1200.00 No 177280899.93
entities
Other related Acceptance of labor
580.00 No
entities services
Sale of goods/ provision of labor services
Related-party Last Term
Related Party Current Amount
Transaction Amount
Beijing Bai Jiayi Food Co.Ltd Sale of goods 956697.25 2028592.00
Beijing Ancient Boat Rice Co.Ltd Sale of goods 573980.75 77187.02
Beijing Jingliang Dongfang Grain and Oil Trading
Sale of goods 1341520.28 1578881.67
Co.Ltd
Beijing Lanfeng Vegetable Distribution Co.Ltd Sale of goods 348547.63 286494.00
Beijing Liubiju Food Co. Ltd. Huairou Brewery Sale of goods 54495.41 6684323.12
Beijing Sanyuan Seed Industry Technology Co.Ltd
Sale of goods 26911055.50 29995064.69
Feed Branch
Beijing Haidian Xijiao Grain and Oil Supply Station
Sale of goods 874862.38 1738000.00
Co.Ltd
Beijing Jingjing Jingu Grain Purchasing and
Sale of goods 1008073.39 655540.00
Marketing Co.Ltd
Beijing No.34 Food Supply Department Co.Ltd Sale of goods 1283674.22 1488023.46
Beijing Zhangxin Grain Reserve Co.Ltd Sale of goods 804587.15 1356413.11
Beijing Shounong Development Co.Ltd. Sale of goods 488546.78 30838.00
Beijing Shounong Consumption and Poverty
Sale of goods 4945882.56 5309640.00
Alleviation Double Creation Center Co.LtdRelated-party Last Term
Related Party Current Amount
Transaction Amount
Beijing Wang Zhihe Food Co.Ltd Sale of goods 13829319.37 15469952.89
Beijing Wuhuan Shuntong Supply Chain
Sale of goods 1081550.08 570548.64
Management Co.Ltd
Fengzhen DahongmenAgri-animal Husbandry Co.Sale of goods 243453.21
Ltd
Hebei Anping Dahongmen Food Co. Ltd. Sale of goods 233410.08 621651.37
Hebei Luanping Huadu Food Co.Ltd Sale of goods 22679467.01 21221360.94
Hebei Shounong Modern Agriculture Technology
Sale of goods 9595145.59 7153219.41
Co.Ltd
Shanghai Shounong Investment Holding Co.Ltd Sale of goods 221340202.14 216123328.83
Hebei Sanyuan Foods Co.Ltd Sale of goods 994300.00
Other-related entities Sale of goods 1389957.38 1542690.43
Provision of
Beijing Shounong Food Group Co.Ltd 1745187.40 11438400.93
services
Provision of
Shanghai Shounong Investment Holding Co.Ltd 112517.83 4677494.81
services
Provision of
Beijing Gushun Foods Co.Ltd 55691.22
services
Related-party transactions for purchasing and selling goods and provision and acceptance of labor services:
The price of a related-party transaction shall be equal to the price charged for an unrelated-party transaction that is
same as or similar to such related-party transaction.
(2) Related-party lease
If the Company is the lessee
Rental cost of simplified treatment Variable lease payment not
of short-term lease and low-value included in the calculation
lease asset of lease liabilities
Type of
Name of Name of
Leased Lease Lease
Lessee Lessor Lease Expense
Asset Lease Expense Expense Expense Recognized in
Recognized in Recognized Recognized
the Current
the Prior Period in the Current in the Prior
Period
Period Period
Beijing
Beijing Grain
Guchuan House
Group 580000.00
Edible Oil leasing
Co.Ltd
Co. Ltd.Beijing Beijing
Guchuan Nanyuan House
323809.52323809.52
Edible Oil Plant Oil leasing
Co. Ltd. Factory.Beijing Beijing
House
Jingliang Municipal 1618878.70 leasing
Food Co. GrainLtd. Research
Institute
Co.Ltd
Beijing
Beijing Grain
jingliang gubi House
Group 1150480.00
oil and grease leasing
Co.Ltd
co. LTD
Beijing
Beijing
Dahongmen
Jingliang Oil House
Grain 311324.36
and Fat Co. leasing
Storage
Ltd.Co.Ltd
Beijing
Beijing
Shounong
Tianweikang
Food
Oil House
Emergency 1378125.00 1312500.00
Distribution leasing
Security
Center Co.Center
Ltd.Co.Ltd
（Continued ）
Interest expense
Payment of rent Increase in right-of-use assets
on lease liabilities
Lease Lease
Name of Lessee Lease Lease Lease Expense Expense Lease Expense
Expense Expense Expense
Recognized Recognized Recognized in
Recognized in Recognized Recognized
in the in the the Prior
the Current in the Prior in the Prior
Current Current Period
Period Period Period
Period Period
Beijing
Guchuan Edible
Oil Co. Ltd.Beijing
Guchuan Edible 323809.52 323809.52
Oil Co. Ltd.Beijing
Jingliang Food 12880733.94 1842194.39
Co. Ltd.Beijing
jingliang gubi
oil and grease
co. LTD
Beijing
Jingliang Oil
311324.36
and Fat Co.Ltd.Beijing
TianweikangInterest expense
Payment of rent Increase in right-of-use assets
on lease liabilities
Lease Lease
Name of Lessee Lease Lease Lease Expense Expense Lease Expense
Expense Expense Expense
Recognized Recognized Recognized in
Recognized in Recognized Recognized
in the in the the Prior
the Current in the Prior in the Prior
Current Current Period
Period Period Period
Period Period
Oil Distribution
Center Co. Ltd.
(3) Remuneration for key management staff
Current Amount (Unit: ten thousand Last Term Amount (Unit: ten
Item
yuan) thousand yuan)
Remuneration for Key Management
249.88223.83
Staff
(4) Other Related-party Transactions
Last Term
Guaranteed Party Related-party Transaction Current Amount
Amount
Beijing Gushun Foods Co.Ltd Brand royalty income 1497800.00
Beijing Haidian District two business
Training expenses 1650.00
vocational skills training school
Beijing Municipal Grain Research
Telephone income 19163.48
Institute Co.Ltd
Beijing Shounong Food Emergency
Electricity and other expenses 92671.26 63518.42
Security Center Co.Ltd
Beijing Shounong Food Group
Interest income 3888582.97 2066407.44
Finance Co.Ltd
Beijing Shounong Xiangshan
Conference and other expenses 24801.89 4433.97
Conference Center Co.Ltd
6. Related party Receivables and Payables
(1) Receivables
Closing Balance Opening Balance
Item Related-party Provision Provision for
Book Balance for Bad Book Balance
Bad Debts
Debts
Monetary Beijing Shounong Food
532305996.27890056629.88
funds Group Finance Co.Ltd
Beijing Ailai Fahi Foods
Receivables 21289.60
Co.Ltd
Beijing Bai Jiayi Food
Receivables 191250.00 228000.00
Co.LtdClosing Balance Opening Balance
Item Related-party Provision Provision for
Book Balance for Bad Book Balance
Bad Debts
Debts
Beijing Ershang Meat
Receivables 16825.00 13200.00
Food Group Co. Ltd.Beijing Ancient Boat Rice
Receivables 295520.00
Co.Ltd
Beijing Gushun Foods
Receivables 1500635.00
Co.Ltd
Beijing Jingliang
Receivables Dongfang Grain and Oil 285663.50 212077.75
Trading Co.Ltd
Beijing Jinggou Taiyu
Receivables 69600.00
Real Estate Co.Ltd
Beijing Lanfeng
Receivables Vegetable Distribution 56250.00 36765.00
Co.Ltd
Beijing Sanyuan Seed
Receivables Industry Technology 3825909.02 2271574.62
Co.Ltd Feed Branch
Beijing Huanong
Receivables 3223.00
Materials Co. Ltd
Beijing Jingjing Jingu
Receivables Grain Purchasing and 300800.00
Marketing Co.Ltd
Beijing No.34 Food
Receivables Supply Department 67680.00
Co.Ltd
Beijing Zhangxin Grain
Receivables 246000.00 99000.00
Reserve Co.Ltd
Beijing Shucheng
Receivables Shanshui Real Estate 6730.00
Co.Ltd
Beijing Shounong Dot-to-
Receivables 53886.00
Dot E-commerce Co.Ltd
Beijing Shounong
Receivables Commercial Chain 658.00
Co.Ltd
Beijing Shounong
Receivables Xiangshan Commercial 48325.00
Co. Ltd.Beijing Shounong
Consumption and Poverty
Receivables 2088600.00 399500.00
Alleviation Double
Creation Center Co.Ltd
Beijing Wuhuan
Receivables Shuntong Supply Chain 326612.50
Management Co.LtdClosing Balance Opening Balance
Item Related-party Provision Provision for
Book Balance for Bad Book Balance
Bad Debts
Debts
Hebei Anping
Receivables Dahongmen Food Co. 178200.00 86000.00
Ltd.Hebei Luanping Huadu
Receivables 13145439.04 3619958.60
Food Co.Ltd
Hebei Shounong Modern
Receivables Agriculture Technology 1176790.58 1047816.96
Co.Ltd
Kaifeng Dahongmmen
Receivables 64500.00
Meat Food Co. Ltd.Beijing Sanyuan Foods
Receivables 112290.00
Co.Ltd
Shanghai Shounong
Receivables Investment Holding 677093.11
Co.Ltd
Beijing Ershang
Receivables Dahongmen Wulinlian 477.00
Food Co.Ltd
Beijing Baiyu Food Co.Prepayment 550.00
Ltd
Other Beijing Ancient Boat Rice
50000.00
Receivables Co.Ltd
(2) Payables
Item Related-party Closing Balance Opening Balance
Payables Beijing Ershang Meat Food Group Co. Ltd. 79497.34 3633.06
Payables Beijing Ancient Boat Rice Co.Ltd 64711.01
Payables Beijing Gushun Foods Co.Ltd 153137.62 464000.00
Payables Beijing Liubiju Foods Co.Ltd 458.76
Beijing Southern Rural Agricultural Production
Payables 660.00 410.00
and Operation Management Co. Ltd.Beijing Shounong Food Emergency Security
Payables 1378125.00
Center Co.Ltd
Beijing Sugar Cigarette And Wine Group
Payables 775.22 3763.10
Co.Ltd. Sugar Management Branch
Beijing Yanqi Yue Sheng Zhai Halal Food
Payables 50.45
Co.Ltd
Payables Beijing Shounong Grain Reserve Co.Ltd 720000.00
Beijing Ershang Dahongmen Wulinlian Food
Payables 96.79
Co.Ltd
Payables Beijing Shounong Development Co.Ltd. 559500.00Item Related-party Closing Balance Opening Balance
Kangtai Culture Branch of Beijing Ershang
Other payables 210.00 210.00
Group Co. Ltd
Other payables Beijing Jingliang E-commerce Co.Ltd 42432.00
Other payables Beijing Grain Group Co.Ltd 4606680.00 3456200.00
Shanghai Shounong Investment Holding
Other payables 188422.48
Co.Ltd
Contract liability Beijing Shucheng Shanshui Real Estate Co.Ltd 3091.74
Contract liability Beijing Shounong Development Co.Ltd. 49082.57
Beijing Shuangtong Huihe Agricultural Science
Contract liability 2201.83
and Technology Development Co.Ltd
Shanghai Shounong Investment Holding
Contract liability 3341866.73 7259750.24
Co.Ltd
Other current Beijing Shuangtong Huihe Agricultural Science
198.17
liability and Technology Development Co.Ltd
Other current Shanghai Shounong Investment Holding
300768.01653377.52
liability Co.Ltd
Other current
Beijing Shucheng Shanshui Real Estate Co.Ltd 278.26
liability
Other current
Beijing Shounong Development Co.Ltd. 4417.43
liability
Account collected
Beijing Jingliang E-commerce Co.Ltd 42432.00
in advance
XIII Share based payment
There are no share-based payments incurred this year for the company.XIV Commitments and Contingencies
By the end of this report the actual amount of guarantee of the company and its holding subsidiaries is 1.589
billion yuan accounting for 50.62% of the company's audited net assets attributable to the parent company in the
latest period which are all guarantees between the company and its holding subsidiaries. There is no guarantee
provided by the Company and its holding subsidiary to any entity other than the consolidated statement and there
is no delay in external guarantee guarantee involving litigation or loss due to the judgment of loss due to guarantee.XV Events after the Balance Sheet Date
1. Distribution of Profits
As of the date of this financial report the company has no important non adjustment matters that need to be
disclosed.XVI Other Important Matters
1. Annuity Plan
Basic information of annuity: Beijing Jingliang Food Co. Ltd. Jingliang (Tianjin) grain and Oil Industry Co.Ltd. Beijing Guchuan Oil Co. Ltd. Beijing Eisen Lubao Oil Co. Ltd. Beijing Jingliang Oil Co. Ltd. Beijing
Guchuan Bread Food Co. Ltd. and Beijing Tianweikang Oil Distribution Center Co. Ltd. of the company
participated in the enterprise annuity plan of Beijing shounong Food Group Co. Ltd. and formulated the
implementation rules of their respective enterprises under the annuity plan. The name of the annuity plan is Ping
An Jinxiu life enterprise annuity plan; the trustee and account manager are ping an Endowment Insurance Co. Ltd.;
the trustee is China CITIC Bank Co. Ltd.
2. Information of Division
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing oil and grease and so on according to its internal
organizational structure management requirements and internal reporting system. The Company's management
regularly evaluates the operating results of these divisions to determine the allocation of resources to them and
evaluate their performance. The information reported by divisions should be disclosed according to the accounting
policies and measurement standards adopted by such divisions when they are reporting to the management. These
measurement bases should be consistent with the accounting and measurement bases for preparation of financial
statements.
(2) Reporting of the financial information of divisions
Offset Among
Item Food Processing Oil & Grease Total
Divisions
Operating income 437380249.12 5118555457.42 28712.40 5555906994.14
Operating costs 344064429.13 4987979901.44 28712.40 5332015618.17
Total assets 999091734.40 6010168087.78 432000072.00 6577259750.18
Total liabilities 107509630.38 3351703390.89 432000072.00 3027212949.27
XVII Notes to Main Financial Statement Items of Parent Company
1. Monetary funds
Item Closing Balance Opening Balance
Cash on hand
Bank Deposits 338712954.06 23734670.48
Other Currency Funds 8589.67 8585.33
Total 338721543.73 23743255.81
2. Other Receivable
Item Closing Balance Opening Balance
Dividends receivable
Other receivables 910000000.00 950000000.00
Total 910000000.00 950000000.00(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 290000000.00 800000000.00
1 to 2 years (including 2 years) 510000000.00 29000000.00
2 to 3 years (including 3 years) 29000000.00 121000000.00
3 to 4 years (including 4 years) 81000000.00
Total 910000000.00 950000000.00
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Intercourse Funds of Entities 910000000.00 950000000.00
Total 910000000.00 950000000.00
C. Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall
Closing
Name of Balance at End of Closing Balance of Nature of
Aging Balance of bad
Organization Period other receivables Funds
debt reserves(%)%）
Related
Beijing Jingliang Within
910000000.00 100.00 party
Food Co. Ltd. 4 years
borrowing
Total 910000000.00 100.00
3. Long-term Equity Investment
Closing Balance
Item
Book Balance Provision for Impairment Book Value
Investment in subsidiaries 2340799283.19 2340799283.19
Total 2340799283.19 2340799283.19
(Continued)
Opening Balance
Item
Book Balance Provision for Impairment Book Value
Investment in subsidiaries 2625657283.19 2625657283.19
Total 2625657283.19 2625657283.19
Investment in subsidiariesCurrent Closing
Provision Balance of
Invested Current Current
Opening Balance Closing Balance for Provision
Entity Increase Decrease
Impairmen for
t Impairment
Beijing
Jingliang 2051781964.0
2336639964.05284858000.00
Food Co. 5
Ltd.Zhejiang
little prince
249017319.14249017319.14
Food Co.Ltd
Jingliang
(Yangpu)
Grain and 6500000.00 6500000.00
Oil Industry
Co. Ltd.Jingliang
(Caofeidian
)
25500000.0025500000.00
Agricultural
Developme
nt Co. Ltd.Jingliang
(Beijing)
Food
8000000.008000000.00
Marketing
Managemen
t Co. Ltd
2340799283.1
Total 2625657283.19 284858000.00
9
4. Operating Income and Operating costs
Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Other businesses 2047313.31 170581.26 11839311.03 170581.26
Total 2047313.31 170581.26 11839311.03 170581.26
5. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated
191582.04150814.85
by cost method
Investment income from disposal of long-term
27829877.46
equity investments
Total 28021459.50 150814.85
XVIII Supplementary Information1. Details of non-recurring profit and loss in the reporting period
Details of non-recurring profit and loss Amount Note
Gains and losses on disposal of non current assets， including provision for asset-59859.78
impairment write-off portion
Government subsidies included in the current profits and losses (closely related to the
business of the enterprise except the government subsidies enjoyed according to the 5876740.78
national unified standard quota or quantitative)
In addition to the effective hedging business related to the normal business of the
company the profit and loss from changes in fair value arising from the holding of
financial assets and financial liabilities by non-financial enterprisesas well as the
investment income from the disposal of financial assets and financial liabilities
Income from custodial fees obtained from entrusted operations 1646403.21
Other non-operating income and expenses other than the above 5907678.04
Other profit and loss items that meet the definition of non recurring profit and loss
Less: amount affected by income tax 1166874.83
Non recurring profit and loss attributable to minority shareholders (after tax) 1435780.72
Total 10768306.70
2. Return on equity and earnings per share
Situation on return on equity and earnings per share
Weighted Return on EPS
Current Profit Average Equity
(ROAE) (%) Basic EPS Diluted EPS
Net profit attributable to the Company's common
0.760.030.03
shareholders
Net profit attributable to common shareholders after
0.420.020.02
deduction of non-recurring gains and losses
Hainan Jingliang Holdings Co. Ltd.
26 August 2024
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