HAINAN JINGLIANG HOLDINGS CO. LTD.ANNUAL REPORT 2022

March 2023Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

HAINAN JINGLIANG HOLDINGS CO. LTD.ANNUAL REPORT 2022

Part I Important Notes

The Board of Directors The Supervisory Committee the supervisors and the directors of the Company

guarantee that there are no significant omissions fictitious or misleading statements carried in the Report

and will accept individual and joint responsibilities for the truthfulness accuracy and completeness of the

Report.Chairman Wang Chunli Chief Financial Officer Guan Ying and the head of Accounting Department Cao

Ling hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.All the Company’s Directors have attended the Board meeting for the review of this Report.In order for a full understanding of the Company’s operating results financial position and future

development plans investors should carefully read the annul report which has been disclosed on the media

designated by the China Securities Regulatory Commission (the “CSRC”).Independent auditor’s modified opinion:

□ Applicable □ Not applicable

Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:

□ Applicable □ Not applicable

The Company has no final dividend plan either in the form of cash or stock.Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:

□ Applicable □ Not applicable

This report has been prepared in both Chinese and English. Should there be any discrepancies or

misunderstandings between the two versions the Chinese version shall prevail.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Part II Key Corporate Information

1. Stock Profile

Stock name JLKG JL-B Stock code 000505 200505

Stock exchange for

Shenzhen Stock Exchange

stock listing

Contact information Board Secretary Securities Representative

Name Guan Ying Gao Deqiu

15/F Jing Liang Building NO. 16 East 15/F Jing Liang Building NO. 16 East

Office address Third Ring Middle Road Chaoyang Third Ring Middle Road Chaoyang District

District Beijing Beijing

Fax 010-51672010 010-51672010

Tel. 010-51672270 010-51672029

E-mail address guanying@bjjlkg.cn gaodeqiu@bjjlkg.cn

2. Principal Activities or Products in the Reporting Period

The Company is principally engaged in oils and oilseeds processing and trading as well as food processing.With regard to oils processing and trading the Company refines bottles markets imports and exports raw

oils upon initial pressing. As for oilseeds the Company presses refines bottles markets imports and exports

oilseeds such as sesame soybean corn germ sunflower seeds and peanuts. The Company runs its oils and

oilseeds processing and trading business primarily in Beijing City Tianjin City and Hebei Province under

the brands of “Gu Chuan” “Lv Bao” “Gu Bi” “Huo Niao” etc. with the main products being soybean oil

rapeseed oil sunflower seed oil and sesame oil and paste among others. As for its food processing business

it primarily develops produces and markets snack food and bread under the brands of “Little Prince” “MSDong” “Jianqiang De Tudou” and “Gu Chuan” among others with the main products being potato chips

cakes and pastries and bread. The snack food business covers all provinces and municipalities in China

while the bread business focuses on the Beijing-Tianjin-Hebei region. In this regard the Company is one of

the major suppliers for KFC in North China.According to the Industry Categorization Results of Listed

Companies the Company falls into the major industry category of manufacturing—agri-food processing

industry (code: C13). Specifically the Company operates in the vegetable oil processing segment with its

food processing business accounting for a large proportion in gross profit. With respect to the vegetable oil

processing industry industrial integration has accelerated and differentiation is increasingly evident with

minority oils such as sunflower seed oil tea oil corn oil and rice bran oil seeing fast growth. In terms of the

food processing industry consumer needs have become increasingly diverse resulting in better and richer

product offerings. Nonetheless there are only a handful of major brands in the industry indicating great

potential for industrial integration.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

3. Key Financial Information

(1) Key Financial Information of the Past Three Years

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □ No

Unit: RMB

Change of 31

December 2022 over

31 December 2022 31 December 2021 31 December 2020

31 December 2021

(%)

Total assets 6105144167.96 6046600058.90 0.97% 5695504493.73

Equity attributable to the listed

3061661435.052915802291.055.00%2710571543.53

company’s shareholders

2022-over-2021

202220212020

change (%)

Operating revenue 12857874301.72 11763093835.56 9.31% 8741749912.11

Net profit attributable to the

141411141.28204459771.08-30.84%184846956.70

listed company’s shareholders

Net profit attributable to the

listed company’s shareholders 124297168.33 195422832.45 -36.40% 164037737.59

before exceptional items

Net cash generated from/used in

-533230947.03632240056.44-184.34%-246540910.08

operating activities

Basic earnings per share

0.190.28-32.14%0.26

(RMB/share)

Diluted earnings per share

0.190.28-32.14%0.26

(RMB/share)

Weighted average return on

4.73%7.27%-2.54%7.17%

equity (%)

(2) Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 3024441143.44 2488340126.88 3931892303.79 3413200727.61

Net profit attributable to the

36992676.2535915653.9018632830.2649869980.87

listed company’s shareholders

Net profit attributable to the

listed company’s shareholders 36436748.65 34828990.82 15748627.17 37282801.69

before exceptional items

Net cash generated from/used in

-193652734.0819042324.659679813.98-368300351.58

operating activities

Indicate by tick mark whether any of the quarterly financial data in the table above or their summations

differs materially from what have been disclosed in the Company’s quarterly or interim reports.□ Yes □ NoHainan Jingliang Holdings Co. Ltd. Annual Report 2022

4. Share Capital and Shareholder Information at the Period-End

(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as

well as Holdings of Top 10 Shareholders

Unit: Share

Number of

Number of preferred

preferred shareholders

Number of Number of ordinary

shareholders with resumed

ordinary shareholders at the

68206 67266 with resumed 0 voting rights at 0

shareholders at month-end prior to the

voting rights the month-end

the period-end disclosure of this Report

at the period- prior to the

end disclosure of this

Report

Top 10 shareholders

Total shares Shares in pledge

Nature of Shareholdin

Name of shareholder held at the Restricted shares held marked or frozen

shareholder g percentage

period-end Status Shares

BEIJING GRAIN GROUP State-owned legal

39.68%2884395610

CO. LTD. person

BEIJING STATE-OWNED

CAPITAL OPERATION State-owned legal

6.67%485104600

AND MANAGEMENT person

COMPANY LIMITED

Domestic natural

WANG YUECHENG 5.66% 41159887 41159887

person

Foreign natural

LI SHERYN ZHAN MING 0.42% 3024600 0

person

Domestic natural

MEI JIANYING 0.36% 2604203 0

person

Domestic natural

WANG ZHIQIANG 0.34% 2507123 0

person

Domestic natural

CHEN TING 0.31% 2261069 0

person

Domestic natural

CHEN TIANHUA 0.29% 2101100 0

person

Domestic natural

ZHANG XIAOXIA 0.27% 1949250 0

person

Domestic natural

WANG XIAOXING 0.23% 1654200 0

person

* Beijing State-Owned Capital Operation and Management Company Ltd. owns

an indirect 100% share of Beijing Grain Group Co. Ltd. and Beijing Grain Group

Related or acting-in-concert parties among the Co. Ltd. is the controlling shareholder of the Company (a 39.68% holding). *

shareholders above Wang Yuecheng is a Deputy General Manager of the Company. Apart from that

the Company does not know whether there are any other related parties or acting-

in-concert parties among the top 10 shareholders.Shareholder Chen Tianhua holds 2093500 shares in the Company through his

Shareholders involved in securities margin account of collateral securities for margin trading in Founder Securities Co. Ltd.trading (if any) Shareholder Wang Xiaoxing holds 1654200 shares in the Company through his

account of collateral securities for margin trading in Soochow Securities Co. Ltd.

(2) Number of Preferred Shareholders and Shareholdings of Top 10

□ Applicable □ Not applicable

No preferred shareholders in the Reporting Period.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

(3) Ownership and Control Relations between the Actual Controller and the Company

5. Outstanding Bonds at the Date when this Report Was Authorized for Issue

□ Applicable □ Not applicable

Part III Significant Events

In 2022 various uncertainties and urgency intertwined and became the new normal. In the face of various

external environmental pressures the company adhered to the general tone of seeking progress while

maintaining stability fully promoted the implementation of the “14th Five Year Plan” development plan and

maintained a stable development trend in general. For the year under review the Company recorded

operating revenue of RMB12.858 billion up 9.31% year on year a net profit attributable to the listed

company’s shareholders of RMB141 million down 30.84% year on year.No significant changes occurred to the Company’s operations in the Reporting Period.Part IV Financial StatementsHainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Hainan Jingliang Holdings Co. Ltd.Notes to the 2022 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.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

and the Business License for Enterprise Legal Person was renewed by Industrial & Commerce

Administration Bureau of Hainan Province.On August 17 2006 the reform plan of the split share structure of the Company was implemented. The

Company transferred 49094604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The

original non-tradable shareholders transferred the increased shares to the tradable A-share holders. Beijing

Wanfa Real Estate Development Co. Ltd. reimbursed the consideration shares of the non-tradable

shareholders who have not expressly expressed their opinions. The converted total share capital was

426745404 shares and the original controlling shareholder Beijing Wanfa Real Estate Development Co.

Ltd. held 107993698 shares accounting for 25.31%. Shareholders of non-tradable shares repaid 3289780

shares in consideration of the split share structure in 2007. Shareholders of non-tradable shares repaid

1196000 shares in consideration of the split share structure in 2009.

On 2 September 2016 Beijing Wanfa Real Estate Development Co. Ltd. the original controlling

shareholder transferred all of its 112479478 shares to Beijing Grain Group Co. Ltd. (hereinafter referred

to as "Beijing Grain Group"). Upon completion of the share transfer in September 2016 Beijing Grain Group

Co. Ltd. held 112479478 shares accounting for 26.36% of the total shares of the Company. In November

2016 based on the confidence in the subject matter of the material asset restructuring and the future

development of the Company Beijing Grain Group Co. Ltd. decided to increase its shareholding through

centralized bidding in the secondary market. After the increase it held 123561963 shares of the 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 RMBHainan Jingliang Holdings Co. Ltd. Annual Report 2022

685790364.00. Beijing Grain Group which accounted for 42.06% of the total number of shares became

the largest shareholder of the Company.On November 21 2019 with the approval of Beijing Shounong Food Group Co. Ltd. (Beijing

Shounong Food publish [2019] No. 212) Approval on the Plan of Purchasing Assets by Cash and Issuing

Shares of Hainan Jingliang Holdings Co. Ltd On April 2020 with the approval of Approval of Hainan

Jingliang Holding Co. Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets by China Securities

Regulatory Commission [2020] No. 610 the company shall not issue more than 41159887 new shares in

private offering to raise funds supporting the purchase of assets through the issued shares. The Company and

its subsidiary Beijing Jingliang Food Co. Ltd. purchased the 25.1149% equity stake of Zhejiang Little

Prince by cash and issuance of shares.As of December 31 2022 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

foodstuffs agricultural and sideline products grease oils and leisure foods.

3. The name of the parent company and the ultimate parent company.

The parent company of the company is Beijing Grain Group Co. Ltd. and the ultimate parent company

is Beijing Capital Agribusiness Food Group Co. Ltd.

4. The approval institution and the approval date of the financial statements.

The financial statements have been approved by the Board of Directors of the Company in its resolution

dated March 29 2023.

5. Consolidation scopeHainan Jingliang Holdings Co. Ltd. Annual Report 2022

The consolidated scope of the consolidated financial statements of the company is determined on the

basis of control including the financial statements of the company and all subsidiaries. Subsidiaries refer to

enterprises or entities controlled by the Company.A total of 18 subsidiaries of the Company were included in the scope of consolidation on 31 December

2022 as detailed in Note VIII. "Equitiess in Other Entities". The consolidation scope of the Company for

the current period is changed that is same as the previous period as detailed in Note 7 "Change in

Consolidation Scope" the subsidiary Jingliang Tianyuan Complex Construction and Operation (Xinyi) Co.Ltd. has been cancelled and Jingliang (Beijing) Food Marketing Management Co. Ltd has been newly

established.II. Preparation Basis for Financial Statements

1.Preparation Basis

Based on the assumption of going concern and according to actual transaction events the financial

statements are prepared in accordance with the relevant provisions of Accounting Standard for Business

Enterprises and the following stated Significant Accounting Policies and Estimates.

2. Going concern

The Company has a going concern capability for 12 months from the end of the reporting period and

no material matters affecting the company's going concern capability were found. Therefore the financial

statements are presented on a going concern basis is reasonable.III. Significant Accounting Policies and Estimates

The Company and its subsidiaries are engaged in the processing production and sales of food

agricultural and sideline products grease oil and leisure food. According to the characteristics of actual

production and operation and the provisions of relevant accounting standards for business enterprises the

Company and its subsidiaries have formulated a number of specific accounting policies and accounting

estimates for transactions and events such as revenue recognition. For details please refer to the descriptionsin Note Ⅲ 26 “Revenue". For descriptions of the significant accounting judgments and estimates made bythe management please refer to Note Ⅲ 32 “Significant Accounting Judgments and Estimates"

1. Statement of Compliance of Accounting Standards for Business Enterprises

The financial statements prepared by the Company based on the above preparation basis conform to the

requirements of the Accounting Standards for Business Enterprises and their application guidelines

explanations and other relevant provisions (collectively referred to as "ASBE") and truly and completely

reflect the Company's financial status operating results cash flow and other relevant information.In addition the preparation of this financial report refers to the Rules for Preparation and Reporting

Information Disclosure of Companies Offering Securities to the Public No.15-General Provisions on

Financial Reports revised by China Securities Regulatory Commission in 2014 and the presentation andHainan Jingliang Holdings Co. Ltd. Annual Report 2022

disclosure requirements in Notice on Matters Related to the Implementation of the New Accounting

Standards for Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453)

2. Accounting Period and Business Cycle

The accounting period of the Company is divided into an annual period and an interim period. The

accounting interim period refers to the reporting period shorter than a full accounting year. The fiscal year

of the Company adopts the Gregorian calendar year that is from January 1 to December 31 of each year.The normal business cycle is the period from the time the Company purchases assets for processing to

the time when cash or cash equivalents are realized. The Company uses 12 months as an business cycle and

uses it as a liquidity classification standard for assets and liabilities.

3. Bookkeeping Standard Currency

RMB is the currency in the main economic environment in which the Company and its domestic

subsidiaries operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standard

currency. The offshore subsidiaries of the Company determine USD as their bookkeeping standard currency

based on the currencies in the main economic environment in which they operate. The currency used by the

Company in preparing these financial statements is RMB.

4. The Accounting Treatment of Business Combination under the Same Control and Different

Control

Business Combination refers to the transaction or event in which two or more separate enterprises are

merged to form one reporting entity. Business combination can be divided into business combination under

the same control and business combination under different control.

(1) Business combination under the same control

Enterprises participating in the combination are ultimately controlled by the same party or multiple

parties before and after the combination and the control is not temporary so it is the business combination

under the same control. In case of business combination under the same control the party that obtains control

of other enterprises participating in the combination on the combination date shall be the combination party

and the other enterprises participating in the combination shall be the merged party. The combination date

refers to the date on which the combination party actually acquires control over the merged party.The assets and liabilities acquired by the combination party are measured at the book value of the

merged party at the date of consolidation including goodwill that was formed during acquisition by end

controller . If the difference between the book value of the net assets acquired by the merging party and the

book value of the merged consideration (or the total par value of the issued shares) paid by the merging party

and the capital reserve (share capital premium) shall be adjusted; If the capital reserve (equity premium) is

insufficient to offset the retained earnings shall be adjusted.The direct expenses incurred by the merging party for the purpose of business combination shall beHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 mergerHainan Jingliang Holdings Co. Ltd. Annual Report 2022

are recognized and included in the current profits and losses.Through multi-transaction and step-by-step business combination under different control according to

the Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards

for Business Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business

Enterprises No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 5 (2)

of Note 3) it is determined whether the multiple transactions belong to the "package deal". In the case of a

"package deal" the accounting treatment shall be performed with reference to the description in the

preceding paragraphs of this section and Note 3 13 "Long-term Equity Investments"; If the transaction is

not a "package deal" the accounting treatment shall be distinguished between the individual financial

statements and the consolidated financial statements:

In the individual financial statements the sum of the book value of the equity investment held by the

Purchaser prior to the purchase date and the cost of the new investment at the purchase date shall be taken

as the initial investment cost of the investment; Where the equity of the Purchased held before the date of

purchase involves other comprehensive income the other consolidated income associated with the

investment is accounted for on the same basis as the assets or liabilities directly disposed of by the Purchaser

(i.e. except for the corresponding share in the change caused by the acquisition of the net liability or net

assets of the defined benefit plan remeasured in accordance with the equity method the rest is transferred to

the current investment income).In the consolidated financial statements the equity of the Purchased held prior to the date of purchase

is remeasured according to the fair value of the equity at the date of purchase and the difference between

the fair value and the carrying value is included in the investment income of the current period; Where the

equity of the Purchasee held before the date of purchase involves other comprehensive income other

consolidated income related thereto shall be accounted for on the same basis as the direct disposal of the

relevant assets or liabilities by the Purchaser (i.e. except for the corresponding share in the change caused

by the acquisition of the net liability or net asset of the defined benefit plan remeasured in accordance with

the equity method the rest is converted into the investment income of the current period to which the

acquisition date belongs).

5. Preparation Method of Consolidated Financial Statement

(1) Principles for determining the scope of the consolidated financial statement

The scope of consolidation of the consolidated financial statements is determined on a control basis.Control means that the Company has the authority over the Investee enjoys a variable return by participating

in the relevant activities of the Investee and has the ability to use its authority over the Investee to influence

the amount of such return. The scope of the merger includes the Company and all its subsidiaries. Subsidiary

refers to the main body controlled by the Company.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 results and cash flows of the subsidiaries increased by

consolidation under the same control from the beginning of the consolidation period to the consolidation

date have been appropriately included in the consolidated profit statement and consolidated cash flow

statement and the comparative amount of the consolidated financial statements has been adjusted at the

same time.In the preparation of the consolidated financial statements if the accounting policies or accounting

periods adopted by the subsidiaries are inconsistent with those adopted by the Company necessary

adjustments shall be made to the financial statements of the subsidiaries in accordance with the accounting

policies and accounting periods of the Company. For subsidiaries acquired through business combination

under different control the financial statements shall be adjusted on the basis of the fair value of identifiable

net assets at the date of purchase.All significant transaction balances transactions and unrealized profits within the Company are offset

at the time of preparation of the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by

the Company for the current period are separately presented as minority shareholders' equity and minority

shareholders' profit or loss in the consolidated financial statements under shareholders' equity and net profit.The shares of minority shareholders' equity in the net profits and losses of subsidiaries for the current period

are shown as "minority shareholders' profits and losses" under the net profit item in the consolidated income

statement. Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in

the shareholders' equity of the subsidiary at the beginning of the period and still decrease by a number of

shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity investmentHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 13-Long-term Equity

Investment or Note Ⅲ 9-Financial Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses control

through multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equity

investment in subsidiaries until it loses control belong to a package deal or not. The terms conditions and

economic impact of the transactions for the disposal of equity investments in subsidiaries are in accordance

with one or more of the following circumstances and generally indicate that multiple transactions should be

accounted for as a package deal: * 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 13 of Note Ⅲ) and the "loss of control

over existing subsidiaries as a result of the disposal of part of the equity investments or other reasons" (as

detailed in the preceding paragraph) as appropriate. If the transactions involving the disposal of equity

investments in subsidiaries until the loss of control belong to a package deal the transactions shall be

accounted for as a transaction involving the disposal of subsidiaries and the loss of control; However the

difference between each disposal price and the share of the subsidiary's net assets corresponding to the

disposal investment prior to the loss of control is recognized in the consolidated financial statements as other

consolidated gains and transferred to the profit or loss for the current period of loss of control in the event

of loss of control.

6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint OperationHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 13 "Long-term Equity Investment

Accounted by the Equity Method".The Company as a joint venture party recognizes the assets and liabilities held and assumed by the

Company separately and recognizes the assets and liabilities jointly held and assumed by the Company

according to the shares of the Company; recognizes the revenue generated from the sale of the share of joint

operating output enjoyed by the Company; recognizes revenue generated from the sale of output from joint

operations on the basis of the Company's share; confirms the expenses incurred by the Company individually

and the expenses incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute business the

same below) or purchases assets from the joint venture the Company recognizes only the portion of the

profits and losses attributable to the other participants in the joint venture that arises from the transaction

prior to the sale of such assets to a third party. Where such assets are impaired in accordance with the

provisions of Accounting Standards for Business Enterprises No.8-Impairment of Assets the Company shall

fully recognize such losses in the case where the assets are cast or sold by the Company to joint operations;

For the assets purchased by the Company from the joint operation the Company recognizes the losses

according to the shares it assumes.

7. Determining Standards for Cash and Cash Equivalent

Cash and cash equivalents of the Company include cash on hand deposits that can be 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.

8. Foreign Currency Business and Translation of Foreign Currency Statements

(1) Translation method for foreign currency transaction

At the time of initial confirmation the foreign currency transactions occurring in the Company shall be

converted into the bookkeeping functional currency amount at the spot exchange rate on the trading day but

the foreign currency exchange business or transactions involving foreign currency exchange occurring in the

Company shall be converted into the bookkeeping functional currency amount at the actual exchange rate.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

(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 other comprehensive income; When disposing of overseas operations the profits and

losses shall be transferred to the current disposal period.The foreign currency financial statements of overseas operations shall be converted into RMB

statements in the following ways: the assets and liabilities in the balance sheet shall be converted at the spot

exchange rate on the balance sheet date; Except for "undistributed profits" other items of shareholders'

equity shall be converted at the spot exchange rate at the time of occurrence. The income and expense items

in the profit statement shall be converted at the average exchange rate of the current period on the date of

transaction. The undistributed profit at the beginning of the period shall be the undistributed profit at the end

of the period converted from the previous year; The undistributed profits at the end of the year shall beHainan Jingliang Holdings Co. Ltd. Annual Report 2022

calculated and listed according to the converted profits distribution items; The difference between the

converted asset items and the total amount of the liability items and shareholders' equity items shall be

recognized as other comprehensive income as the translation difference in the foreign currency statements.In case of disposal of overseas operations and loss of control the balance in translation of the foreign

currency statements related to the overseas operations as shown below in the shareholders' equity items in

the balance sheet shall be transferred to the profits and losses of the disposal period in whole or in proportion

to the disposal of the overseas operations.Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the

average exchange rate of the current period on the date of occurrence of the cash flows. The effect of

exchange rate changes on cash shall be presented separately in the statement of cash flows as an reconciling

item.Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated

from the prior-period financial statements.When disposing of all the owner's equity of the Company's overseas operations or losing the control

over overseas operations due to the disposal of part of the equity investment or for other reasons if the

following items of shareholders' equity in the balance sheet are shown below the balance in translation of

the foreign currency statement attributable to the owner's equity of the parent company related to the overseas

operation shall be transferred to the profits and losses of the current disposal period.In the event that the proportion of overseas business interests is reduced due to the disposal of part of

the equity investment or for other reasons but the control over overseas business operations is not lost the

balance in the translation of the foreign currency statements related to the disposal of part of overseas

business operations shall be attributed to minority shareholders' interests and shall not be transferred to the

profits and losses of the current period. When disposing of part of the equity of an overseas operation as an

associated enterprise or a joint venture the balance of the translation of the foreign currency statements

related to the overseas operation shall be transferred into the profits and losses of the current disposal period

in the proportion of the overseas operation disposed of.

9. Financial instruments

Financial instruments are the contracts that form the financial assets of one entity and at the same time

form the financial liabilities or equity instruments of other entities.

(1) Classification confirmation and measurement of financial assets

According to the business mode of managing financial assets and the contractual cash flow

characteristics of financial assets the Company divides financial assets into: Financial assets measured at

amortized cost. Financial assets measured at fair value with changes included in other comprehensive income.Financial assets that are 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 fairHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 amortised cost if both of the following conditions are met : the

financial asset is held within a business model with the objective to hold financial assets in order to collect

contractual cash flows; 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 that is the cash flow

generated on a specific date is only the payment of principal and interest based on the unpaid principal

amount. For such financial assets the Company adopts the effective interest rate method and carries out

subsequent measurement according to amortized cost. The profits or losses arising from amortization or

impairment are included into the current profits and losses.* 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 assets

The Company classifies the above financial assets measured at amortized cost and financial assets

measured at fair value with changes included in other comprehensive income into financial assets measured

at fair value with changes included in current profits and losses. In addition during initial recognition in

order to eliminate or significantly reduce accounting mismatch the Company designated part of financialHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 instruments

Financial assets shall be derecognized if they meet one of the following conditions: * The termination

of the contractual right to receive cash flow from the financial asset. * The financial asset has been

transferred and almost all risks and rewards related to the ownership of the financial asset have beenHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 theHainan Jingliang Holdings Co. Ltd. Annual Report 2022

original financial liability (or part thereof) the original financial liability shall be derecognized and a new

financial liability shall be recognized in accordance with the modified terms.If financial liabilities (or part thereof) are derecognized the Company shall include the difference

between its book value and the consideration paid (including transferred non-cash assets or liabilities

assumed) into the current profits and losses.

(5) Offset of financial assets and financial liabilities

When the Company has the legal right to offset the recognized amount of financial assets and financial

liabilities and such legal right is currently enforceable and the Company plans to settle the financial assets

on a net basis or realize the financial assets and settle the financial liabilities at the same time the financial

assets and financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition

financial assets and financial liabilities shall be listed separately in the balance sheet and shall not be offset

against each other.

(6) The fair value determination method of financial assets and financial liabilities

Fair value refers to the price that market participants can receive from selling an asset or pay to transfer

a liability in an orderly transaction on the measurement date. Where there is an active market for financial

instruments the Company adopts quotations in the active market to determine their fair values. Quoted price

in active market refers to the price easily obtained from exchanges brokers industry associations pricing

service agencies etc. on a regular basis and represents the price of market transactions actually occurred in

fair trading. If there is no active market for financial instruments the Company uses evaluation techniques

to determine their fair values. Evaluation techniques include reference to prices used in recent market

transactions by parties familiar with the situation and willing to trade reference to current fair values of other

financial instruments that are 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.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Dividends (including "interest" generated by instruments classified as equity instruments) distributed

by the Company's equity instruments during their existence shall be treated as profit distribution.

10. Impairment of financial assets

The financial assets of the Company that need to confirm the impairment loss are financial assets

measured at amortized cost and debt instrument investment measured at fair value with changes included in

other comprehensive income mainly including notes receivable accounts receivable other receivables debt

investment other debt investment long-term receivables etc. In addition for some financial guarantee

contracts impairment reserves and credit impairment losses are also accrued in accordance with the

accounting policies described in this part.

(1) Recognition method of impairment provision

On the basis of expected credit losses the Company sets aside impairment reserves and recognizes

credit impairment losses for the above items according to the applicable expected credit loss measurement

method (general method or simplified method).Credit loss refers to the difference between all contractual cash flows receivable according to the

contract and all cash flows expected to be collected by the Company discounted according to the original

actual interest rate i.e. the present value of all cash shortages. Among them for the financial assets that have

been purchased or incurred credit impairment the Company discounts them according to the actual interest

rate adjusted by credit.The general method of measuring expected credit loss refers to the Company's assessment of whether

the credit risk of financial assets has increased significantly since the initial recognition on each balance

sheet date. If the credit risk has increased significantly since the initial recognition the Company will

measure the loss reserve by an amount equivalent to the expected credit loss during the entire period. If the

credit risk has not increased significantly since the initial recognition the Company will measure the loss

reserve according to the amount 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 reasonableHainan Jingliang Holdings Co. Ltd. Annual Report 2022

estimate of the change of default risk in the entire duration to determine whether the credit risk has increased

significantly since the initial recognition.Generally if the overdue period is more than 90 days the Company will consider that the credit risk of

the financial instrument has increased significantly unless there is conclusive evidence that the credit risk

of the financial instrument has not increased significantly since the initial recognition.The Company will consider the following factors when evaluating whether the credit risk has increased

significantly

1） Whether there is any significant change in the actual or expected operating results of the debtor;

2） Whether there is any significant adverse change in the regulatory economic or technological

environment of the debtor;

3） Whether there is any significant change in the value of the collateral or the quality of the guarantee

or credit enhancement provided by the third party which are expected to reduce the economic motivation of

the debtor's repayment according to the time limit stipulated in the contract or affect the probability of default;

4） Whether there is any significant change in the expected performance and repayment behavior of

the debtor;

5） Whether there is any significant change in the Company's credit management methods for financial

instruments etc.On the balance sheet date if the Company judges that the financial instrument has only low credit risk

the Company assumes that the credit risk of the financial instrument has not increased significantly since the

initial recognition. If the default risk of a financial instrument is low the borrower's ability to perform its

contractual cash flow obligations in a short period of time is strong and even if there are adverse changes in

the economic situation and operating environment for a long period of time it may not necessarily reduce

the borrower's ability to perform its contractual cash obligations then the financial instrument is considered

to have low credit risk.

(3) Judgment criteria for financial assets with credit impairment:

When one or more events have an adverse impact on the expected future cash flow of a financial asset

the 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.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Credit impairment of financial assets may be caused by the combined action of multiple events but

may not be caused by separately identifiable events.

(4) Portfolio approach to evaluate expected credit risk based on portfolio

The Company evaluates credit risks for financial assets with significantly different credit risks such as:

Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation

or arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment

obligation.In addition to the financial assets with individual credit risk assessment the Company divides the

financial assets into different groups based on the common risk characteristics. The common credit risk

characteristics adopted by the Company include: Credit risk shall be assessed on the basis of the aging

portfolio the receivables portfolio between the final controlling party and its subordinate units the public

maintenance fund and house selling fund portfolio deposited in the housing provident fund management

center the deposit/margin portfolio and the petty cash ledger portfolio formed by the employee loan of the

unit.

(5) Accounting treatment method for impairment of financial assets

At the end of the period the Company calculates the estimated credit losses of various financial assets.If the estimated credit losses are greater than the book amount of its current impairment reserve the

difference is recognized as impairment loss. If it is less than the carrying amount of the current impairment

reserve the difference is recognized as impairment gain.

(6) Methods for determining the credit loss of various financial assets

* 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

Commercial acceptance bill

same as the "receivable" portfolio classification.* 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 lossHainan Jingliang Holdings Co. Ltd. Annual Report 2022

within the next 12 months or the entire duration.In addition to the accounts receivable and other receivables that individually assess credit risk they are

divided into different portfolios based on their credit risk characteristics:

Item Basis for determining portfolio

Portfolio 1 Aging portfolio

Portfolio 2 A portfolio of receivables between the ultimate controller and its subordinate units

The portfolio of public maintenance funds and house sales funds deposited in the

Portfolio 3

housing provident fund management center

Portfolio 4 Deposit/margin portfolio

Portfolio 5 The portfolio of reserve fund ledger formed by the Company's staff loan

The accrual method of bad debt reserves for different portfolios:

Item Accrual method

According to the accrual proportion

Aging portfolio

corresponding to the aging period

Portfolio of receivables between the ultimate controlling Referring to the historical credit loss

party and its subordinate units experience combined with the current

The portfolio of public maintenance funds and house situation and the forecast of future

sales funds deposited into the MPF Management Center economic conditions the expected credit

Deposit/margin portfolio loss is calculated through the default risk

The portfolio of reserve fund ledger formed by the exposure and the expected credit loss rate

Company's staff loan. within the next 12 months or the entire

duration and the expected credit loss rate of

the portfolio is zero.a. In portfolio the portfolio method of withdrawing bad debt reserves by aging analysis

Expected loss rate of Expected loss rate of Expected loss rate of

Aging

notes receivable (%) accounts receivable (%) other receivables (%)

Within 1 year (including 1 year

the same below)

Among them: Within the credit

000

period (within 3 months)

Credit period~1 year 2 2 2

1-2 years 5 5 5

2-3years 20 20 20

3-4years 50 50 50

4-5years 80 80 80

More than 5 years 100 100 100

b. In the portfolio the description of the accrual method for accrual of bad debt reserves by other

methods is given.Expected loss rate Expected loss rate of Expected loss rate

Aging of notes receivable accounts receivable of other receivables

(%)(%)(%)

Accounts receivable between the final

000

controlling party and its subordinate

Public maintenance fund and house sale

fund deposited into MPF Management 0 0 0

Center

Deposit/margin 0 0 0

The reserve fund ledger formed by the

000

Company's staff loan.

11. InventoryHainan Jingliang Holdings Co. Ltd. Annual Report 2022

(1) Classification of inventory

Inventories mainly include raw materials work in progress finished goods in transit materials

inventory goods reserve tanker storage commissioned processing and manufacturing consignment etc..

(2) Valuation method for obtaining and issuing inventory

Inventories are initially measured at cost. Inventory costs include purchase costs processing costs and

other expenditures. The actual cost of inventories upon delivery is calculated using the weighted average

method.

(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve

Net Realizable Value refers to the amount of estimated selling price of inventories minus the estimated

cost till completion estimated expenses for selling activity and related taxes and fees in daily activities.When determining the net realizable value of inventories solid evidence obtained shall be the basis and the

purpose of holding the inventories and the impact of events after the balance sheet date shall be considered.On the balance sheet date inventories shall be measured at lower of cost and net realizable value. When

the net realizable value is lower than the cost the provision for inventory devaluation shall be accrued. The

provision for inventory devaluation shall be accrued based on the difference between the cost of a single

inventory item and its net realizable value. The provision for inventory devaluation of a large number of

inventories with low unit prices shall be based on the type of inventory; for inventories related to the product

range produced and sold in same region having the same or similar end use or purpose and difficult to be

separated from other items for measurement their provision for inventory devaluation can be combined and

accrued.After the provision for inventory devaluation is accrued if the factors cause the previous written-down

inventory value have disappeared and the situation results in the fact that the net realizable value of the

inventories higher than the book value the amount of the provision for inventory devaluation that has been

accrued shall be reversed and included in the current period profit or loss.

(4) The Company adopts perpetual inventory system as its inventory system.

(5) Amortization method of low-value consumables and packaging materials

Low-value consumables are amortized by one-off amortization method when they are received;

packaging materials are amortized by one-off amortization method when they are received.

12. Held-for-sale assets and disposal group

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 obtainedHainan Jingliang Holdings Co. Ltd. Annual Report 2022

confirmed purchase commitment; the sale is scheduled to be completed within one year. Among them a

Disposal Portfolio refers to a group of assets that will be disposed of as a whole through sale or other

approaches in a transaction and the liabilities directly associated with these assets transferred along with the

assets in transaction. If the portfolio of assets or group of portfolios of assets is allocated goodwill acquired

in business merger in accordance with Accounting Standards for Business Enterprises No. 8 - Asset

Impairment the Disposal Portfolio shall include the goodwill allocated to it.In the event that the book value of a non-current asset or to-be-disposed portfolio that has been

designated as held-for-sale category is higher than the net amount of fair value less sales expenses when the

non-current asset or to-be-disposed portfolio is initially measured or measured on the balance sheet date the

book value shall be to the net amount of fair value minus sales expenses and the written-down amount shall

be recognized as asset impairment loss and included in current period profit or loss. The provision for

impairment loss of the held-for-sale asset shall be accrued. For a Disposal Portfolio the confirmed

impairment loss shall deduct the book value of the goodwill in the Disposal Portfolio then deduct the book

value of the non-current assets determined by the measurement on a pro-rata basis in accordance with the

applicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-current assets 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 forgoodwill) determined by the measurement on a pro-rata basis in accordance with the applicable “Guide forHeld-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill that has been deducted

and the impairment loss of the assets recognized before the classification of the held-for-sale non-current

assets in accordance with the applicable “Guide for Held-For-Sale” shall not be reversed.In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio there is no

accrual or amortization for depreciation and the interest from and other expenses from the liabilities in held-

for-sale Disposal Portfolio shall still be recognized.When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale

category non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by

the Company or the non-current asset will be removed from the Held-For-Sale Disposal Portfolio and be

measured based on one of the following two values whichever is lower: (1) The book value before being

classified as held-for-sale category adjusted based on the depreciation amortization or impairment that

should have be confirmed if it is not classified as held-for-sale category; (2) recoverable amount.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

13. Long-term equity investment

The long-term equity investment refers to in this part refers to the long-term equity investment that the

Company has control joint control or significant influence on the invested entity. The long-term equity

investment of the Company that does not have control joint control or significant impact on the investee

shall be accounted as a financial asset measured at fair value with its changes included into the current profits

and losses. Among them if it is non-transactional the Company may choose to designate it as a financial

asset measured at fair value and its changes are included in the accounting of other comprehensive incomeat the time of initial recognition. For details of its accounting policies please refer to Note Ⅲ 9 “FinancialInstruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement

in accordance with relevant agreements and relevant activities of the arrangement can only be decided based

on the consensus of all parties sharing the control rights before making a decision. Significant Influence

refers to power of the Company to participate in the decision-making of the financial and operating policies

of the investee but the Company cannot control or jointly control the development of these policies with

other parties.

(1) Determination of investment cost

For a long-term equity investment obtained from a combination of businesses under the same control

the apportioned share of the book value in the final controller's consolidated financial statements on the

combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-

term equity investment. The capital reserve shall be adjusted subject to the difference between the initial

investment cost of the long-term equity investment and the cash paid the non-cash assets transferred and

the book value of the debts assumed; if the capital reserve is insufficient for offsetting the retained earnings

shall be adjusted. Where the equity securities are issued as merger consideration the apportioned share of

the book value in the final controller's consolidated financial statements on the combination date in

accordance with the shareholders' equity shall be the initial investment cost of the long-term equity

investment and the total par value of the issued shares is taken as the share capital. The capital reserve shall

be adjusted subject to the difference between the initial investment cost of the long-term equity investment

and the total par value of the shares issued; if the capital reserve is insufficient for offsetting the retained

earnings shall be adjusted. Where the equity of combined parties under the same control is obtained through

multiple transactions and a business combination under the same control is formed finally it shall be treated

differentially based on whether it is a “package deal”: if it belongs to a “package deal” all transactions will

be treated as a transaction that obtains control. If it is not a “package deal” the apportioned share of the book

value in the final controller's consolidated financial statements on the combination date in accordance with

the shareholders' equity shall be the initial investment cost of the long-term equity investment. The capitalHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 “packagedeal” the initial investment cost of the long-term equity investment calculated by the cost method shall be

calculated based on the sum of the book value of the equity investment in the original holder and the new

investment cost. The original share holding that measured using equity method the relevant other

comprehensive income does temporarily not conduct accounting treatment.Intermediary expenses such as for auditing legal services assessment and other related expenses

incurred by a combining party or a purchaser for business combination shall be recognized in current period

profit or loss when incurred.The equity investments other than formed by business combination shall be initially measured at cost.The cost will be determined based on the following amount according to different methods of the acquisition

of long-term equity investment: the purchase price in cash actually paid by the Company; the fair value of

the equity securities issued by the Company the value agreed in relevant investment contract or agreement;

the fair value or original book value of the assets exchanged in non-monetary asset exchange transaction;

the fair value of the long-term equity investment itself. Any expenses taxes and other necessary expenses

directly related to the acquisition of long-term equity investments shall also be included in the cost of

investment. The cost of long-term equity investment for the additional investment that can exert significant

influence on investee or implement joint control but does not constitute control shall be the sum of the fair

value of the originally held equity investment recognized in accordance with the Accounting Standards for

Business Enterprises No.. 22 – Recognition and Measurement of Financial Instruments and the cost for new

investment.

(2) Follow-up measurement and confirmation methods for profit and loss

The Equity Method shall be used to account for long-term equity investments that have joint controlHainan Jingliang Holdings Co. Ltd. Annual Report 2022

over the invested entity (except for those constituting joint operators) or have significant impact on the

invested entity. In addition the company's financial statements use the Cost Method to account for long-term

equity investments which can control the long-term equity investment of the investee.a. Long-term equity investment based on Cost Method

When accounting with Cost Method long-term equity investment is priced at the initial investment cost

and the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except

for the actual payment at the time of obtaining investment or the cash dividends or profits included in the

consideration but not yet issued the current investment income shall be recognized according to the cash

dividends or profits declared by the investee.b. Long-term equity investment accounted for by Equity Method

When accounting with Equity Method if the initial investment cost of a long-term equity investment is

greater than the fair value share of the identifiable net assets of the investee when investing and the initial

investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less

than the fair value share of the identifiable net assets of the investee when investing the difference shall be

included in the current profit and loss and the cost of the long-term equity investment shall be adjusted

When accounting with Equity Method the investment income and other comprehensive income are

recognized separately according to the shares of the net profit or loss and other comprehensive income that

should be enjoyed or shared and the book value of the long-term equity investment should be adjusted at

the same time. The book value of long-term equity investment is reduced accordingly by calculating the

share that should be enjoyed according to the profit or cash dividend declared by the investee. The book

value of long-term equity investment shall be adjusted and included in the capital reserve for other changes

in the owner's rights and interests of the invested entity other than the net profit and loss other comprehensive

income and profit distribution. When confirming the share of the net profit and loss of the investee the net

profit of the investee shall be adjusted and confirmed on the basis of the fair value of the identifiable assets

of the investee at the time of investment. If the accounting policies and periods adopted by the invested entity

are inconsistent with the Company the financial statements of the invested entity shall be adjusted in

accordance with the accounting policies and periods of the Company and the investment income and other

comprehensive income shall be confirmed accordingly. For the transactions between the Company and the

associates and joint ventures the assets invested or sold do not constitute a business and the unrealized gains

and losses from internal transactions are offset against the portion of the Company that is attributable to the

proportion of the shares on this basis. investment profit and loss should be confirmed. However the

unrealized internal transaction losses incurred by the Company and the investee are not included in the

impairment losses of the transferred assets. Where the assets invested by the Company into a joint venture

or an associates constitute a business if the investor obtains long-term equity investment but does not controlHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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.c. Acquisition of Minority Equity

In the preparation of the consolidated financial statements if the difference between the long-term

equity investment added by purchasing minority shares and the net assets share that should be continuously

calculated by the subsidiary company from the purchase date (or the consolidation date) is calculated

according to the proportion of newly added shares the retained earnings shall be adjusted; and if the capital

reserve is insufficient to offset the retained earnings shall be adjusted.d. Disposal of long-term equity investment

In the consolidated financial statements the parent company partially of disposes of the long-term

equity investment of the subsidiary without losing control the difference of the corresponding net assets in

the subsidiary between the disposal price and the disposal of the long-term equity investment is included in

the shareholders' equity. it shall be treated in accordance with the relevant accounting policies described in

“Notes on the preparation of consolidated financial statements” in Note Ⅲ.5 .For the disposal of long-term equity investment in other cases the difference between the book value

of the disposed equity and the actual acquisition price shall be included in the current profits and losses.If the long-term equity investment is accounted for by equity method the remaining equity after

disposal is still accounted for by equity method when disposing the other comprehensive income which

were originally included in shareholder's rights and interests shall be accounted for on the same basis as the

assets or liabilities directly disposed of by the investee. The owner's equity recognized as a result of changes

in the owner's equity of the investee other than net profit or loss other comprehensive income and profitHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 recognised in the current profit or loss.The other comprehensive income recognized in the original equity investment by the equity method is

accounted for on the same basis as the investee's direct disposal of related assets or liabilities when the equity

method is terminated Owner's equity recognized as a result of changes in other owners' equity other thanHainan Jingliang Holdings Co. Ltd. Annual Report 2022

net profit or loss other comprehensive income and profit distribution of the investee should be transferred

to current investment income when terminating the equity method

The Company disposes of the equity investment in the subsidiaries step by step through multiple

transactions until the loss of control. If the above-mentioned transactions are part of a package transaction

the transactions are treated as a transaction dealing with the equity investment of the subsidiary and losing

control. The difference between the book value of each long-term equity investment corresponding to the

disposal price and the disposal of the equity before loss of control is first recognized as other comprehensive

income and when the control is lost it is transferred to the current profit and loss of loss of control.

14．Investment Property

Investment Property refers to property held for the purpose of earning rent or capital appreciation or

both including land use rights that have been leased land use rights that are held and prepared for transfer

after 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 canbe measured reliably then the expense will account for as the cost of

investment property. Other expenses are accounted for in profit and loss when incurred.The Company adopts the cost model to conduct subsequent measurement of investment property and

depreciation or amortization according to the policy consistent with the building or land use rights.For details of the impairment test method and impairment provision method of property please refer to

Note Ⅲ. 20 “Long-Term Asset Impairment”.When the self-use property or inventory is converted into investment property or investment property

is converted into self-use property the book value before conversion is used as the recorded value after

conversion.When the use of investment property is changed to self-use the investment property is converted into

fixed assets or intangible assets from the date of change. When the use of self-use property changes to earn

rent or capital appreciation the fixed assets or intangible assets are converted into investment property from

the date of change. In the case of investment property measured by the cost model when the conversion

occurs the book value before conversion is used as the entry value after conversion; if it is converted into

investment property measured by the fair value model the fair value of the conversion date is used as the

entry value after conversion.When an investment real estate is disposed of or permanently withdrawn from use and is not expected

to obtain economic benefits from its disposal the confirmation of the investment real estate shall be

terminated. Disposal income from the sale transfer retirement or damage of investment properties is charged

to the current profit and loss after deducting its book value and related taxes and fees.

15. Fixed AssetsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

(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 Depreciation Net salvage Annual depreciation

Category

Method period (Year) rate(%) rate (%)

straight-line

Buildings 8-50 5 1.90— 11.88

depreciation

straight-line

Machinery equipment 5-28 4、5 3.39—19.20

depreciation

straight-line

Transport facility 5-10 4、5 9.50—19.20

depreciation

straight-line

Electronic equipment 3-10 4、5 9.50—32.00

depreciation

straight-line

Office equipment 3-10 4、5 9.50—32.00

depreciation

straight-line

Other equipment 5-28 4、5 3.39—19.20

depreciation

The estimated net residual value refers to the expected state after the estimated useful life of the fixed

assets has expired and is at the end of its useful life. The amount currently obtained by the Company from

the disposal of the assets after deducting the estimated disposal expenses.

(3) Impairment test method and Impairment provision method for fixed assets

For details of Impairment test method and impairment provision method for fixed assets please refer

to Note Ⅲ. 21 “Long-Term Asset Impairment”.

(4) Recognition basis and valuation method of fixed assets acquired by finance lease

A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership

of an asset and its ownership may or may not be transferred. If it is reasonable to determine the ownership

of the leased asset at the expiration of the lease term the depreciation shall be calculated within the useful

life of the leased asset; If it is not reasonable to determine the ownership of the leased asset at the expiration

of the lease term depreciation shall be calculated within a relatively short period of the lease term and the

service life of the leased assets.

(5) Others

The subsequent expenses related to fixed assets if the economic benefits related to the fixed assets are

likely to flow in and their costs can be reliably measured are included in the cost of fixed assets and theHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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.

16. Construction in progress

The cost of construction in progress is determined based on actual project expenditure including

various project expenditures incurred during the construction period capitalized borrowing costs before the

project reaches the expected usable status and other related expenses. Construction in progress is carried

forward to fixed assets when it is ready for its intended use.For details of the impairment test method and impairment provision method for construction in progress

please refer to Note Ⅲ. 21 “Long-Term Asset Impairment”.

17. Borrowing Costs

Borrowing costs include interest on borrowings amortization of discounts or premiums ancillary

expenses and exchange differences arising from foreign currency borrowings. Borrowing costs directly

attributable to the acquisition construction or production of assets eligible for capitalization capitalization

is began when asset expenditures have occurred borrowing costs have occurred and the acquisition

construction or production activities necessary to bring the assets to the intended usable or saleable state

have begun. And capitalization is stopped when the assets under construction or production that meet the

capitalization conditions are ready for their intended use or saleable status. The remaining borrowing costs

are recognized as an expense in the period in which they are incurred.The interest expenses actually incurred in the current period of special borrowings shall be capitalized

after subtracting the interest income from the unused borrowing funds deposited into the bank or the

investment income obtained from the temporary investment. For the general borrowings according to the

accumulated asset expenditures exceed the special borrowings. The capitalization amount is determined by

multiplying the weighted average of which accumulated asset expenditure exceeds the asset expenditure of

the special borrowing portion by the capitalization rate of the general borrowings used. The capitalization

rate is determined based on the weighted average interest rate of general borrowings.During the capitalization period the exchange differences of foreign currency special borrowings are

all capitalized; the exchange differences of foreign currency general borrowings are included in the current

profit and loss.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

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.

18. Right-of-use assets (applicable from 1 January 2021)

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.At the commencement date of the lease the Group recognises 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 Group remeasures the lease liability at the present value of the revised lease payments and adjusts

the carrying amount of the right-of-use assets accordingly when the carrying amount of the right-of-use

asset is reduced to zero and there is a further reduction in the measurement of the lease liability the Group

recognises the remaining amount of the remeasurement in profit or loss for the current period.

19. Intangible assets

(1) Intangible assets

Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled

by the Company.Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in

the cost of intangible assets if the relevant economic benefits are likely to flow to the Company and its costs

can be measured reliably. 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 rightsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

and building construction costs of self-developed and constructed buildings are accounted for as intangible

assets and fixed assets respectively. In the case of purchased houses and buildings the relevant price is

distributed between the land use rights and the buildings. If it is difficult to allocate them reasonably all of

them are treated as fixed assets.Since the intangible assets with limited useful life are available for use the original value minus the

estimated net residual value and the accumulated amount of impairment reserve shall be amortized by the

straight-line method during their expected service life. Intangible assets with uncertain service life shall not

be amortized.Among them the useful life and amortization method of intellectual property are as follows:

Item Amortization period (year) Amortization method

Trademark 20 Straight-line method

At the end of the period the useful life and amortization methods of intangible assets with limited useful

life are reviewed and if any change occurs it is treated as a change of accounting estimate. In addition the

useful life of intangible assets with uncertain service life is also reviewed. If there is evidence that the period

for which the intangible assets bring economic benefits to the enterprise is foreseeable the useful life of

intangible assets is estimated and amortized according to the amortization policy of intangible assets with

limited useful life

(2) Research and development expenditure

The company's expenditure for internal research and development project is divided into research phase

expenditure and development phase expenditure.Expenditures for the research phase shall be recognized in profit or loss when incurred.Expenditures for the development phase that meet the following conditions shall be recognized as

intangible assets and expenditures in the development stage that fail to meet the following conditions are

included in current profit and loss:

a. It is technically feasible to complete the intangible asset to enable it to be used or sold.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 assetsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

For details of the impairment test method and impairment provision method please refer to Note Ⅲ.

21 “Long-Term Asset Impairment”.

20．Long-term Deferred Expenses

The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting

period and subsequent periods with amortization period of more than one year. The company's long-term

deferred expenses mainly include lease of land use right and renovation costs of factory building. Long-term

deferred expenses are amortized on a straight-line basis over the estimated benefit period.

21. Long-term assets impairment

For fixed assets construction in progress intangible assets with limited useful life investment property

measured by cost model and non-current non-financial assets such as long-term equity investments in

subsidiaries joint ventures and associates the Company determines whether there is any indication of

impairment on the balance sheet date. If there is any indication of impairment the recoverable amount is

estimated and the impairment test is carried out. Goodwill intangible assets with uncertain service life and

intangible assets that not yet ready for use are tested for impairment annually regardless of whether there is

any indication of impairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its

book value the impairment provision is made based on the difference and is included in the impairment loss.The recoverable amount is the higher of the fair value of the asset less the disposal expense and the present

value of the estimated future cash flow of the asset. The fair value of assets is determined according to the

sale agreement price in a fair transaction. If there is no sales agreement but there is an active market for the

asset the fair value is determined according to the buyer's bid for the asset; if there is neither sales agreement

nor active market for assets the fair value of assets shall be estimated based on the best information available.Asset disposal expenses include legal fee taxes transportation expenses and direct expenses incurred to

make assets saleable. The present value of the estimated future cash flow of an asset is determined by the

appropriate discount rate discounting and 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 goodwillHainan Jingliang Holdings Co. Ltd. Annual Report 2022

amortized to the asset group or portfolio and then deducted proportionally from the book value of other

assets according to the proportion of the book value of assets other than goodwill in the asset group or

portfolio.Once the above asset impairment loss is confirmed it will not be reversed to the part where the value

is restored in the future period.

22. Employee Compensation

The Company's employee compensation mainly includes short-term employee remuneration Post-

employment Benefits Termination Benefits and benefits for other long-term employee. Among them:

Short-term employees remuneration mainly includes wages bonuses allowances and subsidies

employee welfare fees medical insurance premiums maternity insurance premiums work injury insurance

premiums housing fund labor union funds employee education funds and non-monetary benefits. The

Company recognizes the actual short-term employee's remuneration as a liability in the accounting period in

which employees provide services to the Company and recognizes them in profit or loss or related asset

costs. Non-monetary benefits are measured at fair value.Post-employment Benefits mainly include basic retirement security unemployment insurance and

annuities. The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit

Plan. If a Defined Contribution Plan is adopted the corresponding amount of the deposit shall be included

in the relevant asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan is

recognized as a liability based on a fixed fee paid to an independent fund and is included in the current profit

and loss or related asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulative

benefits unit method Specifically the Company will convert the welfare obligation arising from the Defined

Benefit Plan into the final value of the departure time according to the formula determined by the expected

cumulative benefits unit method; then it is attributed to the employee's in-service period and is included in

the current profit and loss or related asset cost.If the labor relationship with the employee is terminated before the employee's labor contract expires

or if the 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 insuranceHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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.

23. Lease liabilities (applicable from 1 January 2019)

At the commencement date of the lease period the Group recognises the present value of outstanding

lease payments as a lease liability excluding short-term leases and leases of low-value assets. The Group

adopts the interest rate implicit in the lease as the discount rate to calculate the present value of the lease

payments. Where the interest rate implicit in the lease cannot be determined the incremental borrowing rate

of the lessee shall be used as the discount rate. The Group calculates the interest expense of the lease liability

during each period of the lease term in accordance with the constant periodic rate of interest and recognises

it in profit and loss for the current period except otherwise stipulated in the cost of related assets. The

variable lease payment that is not included in the measurement of lease liabilities is recognised in the profit

and loss for the current period when it actually occurs except that it is otherwise stipulated to be included in

the cost of relevant assets.After a lease term commences when there is a change in the amount of in-substance fixed lease

payments a change in the amounts expected to be payable under a residual value guarantee a change in

future lease payments resulting from a change in an index or a rate used to determine those payments a

change in assessment of an option to purchase the underlying asset renew or terminate the lease or change

in the actual exercise of an option the Group remeasures the carrying amount of the lease liability by

discounting the revised lease payments

24. 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.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

(1) Loss Contract

A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur

more than the expected economic benefit. If the contract to be executed becomes a loss contract and the

obligation arising from the loss contract satisfies the conditions for the recognition of the above-mentioned

estimated liabilities the portion of the contract's estimated loss that exceeds the recognized impairment loss

(if any) of the contracted asset is recognized as the estimated liability.

(2) Restructuring Obligations

For restructuring plans that are detailed formal and have been announced to the public the amount of

the estimated liabilities are determined based on the direct expenses related to the reorganization subject to

the recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to the

part of business sold the obligation related to the reorganization is confirmed only when the company

promises to sell part of the business (that is when the binding sale agreement is signed).

25. Share-based Payments

(1) Accounting Treatment of Share-based Payments

A share-based payment is a transaction that grants an equity instrument or assumes a liability

determined based on an equity instrument in order to obtain services from employees or other parties. Share-

based Payments include equity-settled share payment and cash-settled share payment.a) Equity-settled Share Payment

The equity-settled share payment in exchange for the services from employee is measured at the fair

value of the granting of employees' equity instruments at the grant date. If the fair value is vested in the

completion of the waiting period of service or the fulfillment of the required performance conditions during

the waiting period the amount of the fair value is calculated by the straight-line method into the relevant

costs or expenses based on the best estimate of the number of vesting equity instruments; Or If the vesting

right is granted immediately after the grant the calculation of the amount of the fair value is included in the

relevant cost or expense on the grant date and the capital reserve is increased accordingly.On each balance sheet date during the waiting period the Company makes the best estimate based on

the latest information on the changes in the number of employees with vesting rights and corrects the number

of equity instruments that are expected to be vested. The impact of the above estimates shall be included in

the current related costs or expenses and the capital reserve is adjusted accordingly.In the case of equity-settled share-based payments in exchange for other parties' services if the fair

value of other parties' services can be reliably measured the fair value of other services shall be measured

at the fair value 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.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

b) Cash-settled Share Payment

The cash-settled share payment is measured at the fair value of the liabilities determined by the

Company based on shares or other equity instruments. If the vesting right is available immediately after the

grant the relevant costs or expenses shall be included on the date of grant and the liabilities shall be

increased accordingly; if vesting right is available after the service is completed within the waiting period or

met the required performance conditions based on the best estimate of the vesting rights on each balance

sheet date of the waiting period according to the fair value of the liabilities assumed by the company the

services obtained in the current period are included in the cost or expense and the liabilities are increased

accordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date

before the settlement of the relevant liabilities and the changes shall be recorded in the profit and loss of the

current period.

(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination

When the Company modifies the share-based payment plan if the modification increases the fair value

of the equity instruments granted the increase in the fair value of the equity instruments is recognized

accordingly. The increase in the fair value of equity instruments refers to the difference between the fair

value of the equity instruments before and after the modification. If the modification reduces the total fair

value of the share-based payment or adopts other methods that are not conducive to the employee the service

obtained shall continue to be accounted for as if the change has never occurred unless the Company cancels

some or all of equity instruments.During the waiting period if the granted equity instrument is cancelled the Company will cancel the

granted equity instrument as an accelerated exercise and the amount to be recognized in the remaining

waiting period will be immediately included in the current profit and loss and the capital reserve will be

recognized. If the employee or other party can choose to meet the non-vesting conditions but fails to meet

the waiting period the Company will treat it as a cancellation of the equity instrument.

(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders

or Actual Controllers

In respect of the share-based payment transaction between the company and the shareholders or actual

controllers of the company If one of the settlement enterprise and the service receiving enterprise is in the

company and the other is outside the company it shall be accounted for in the consolidated financial

statements of the company according to the following provisions:

a.) If the settlement enterprise settles with its own equity instrument the share-based payment

transaction shall be treated as equity-settled share-based payment; otherwise it shall be treated as a cash-

settled share-based payment.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

If the settlement enterprise is an investor of a serviced enterprise it shall be recognized as the long-

term equity investment of the serviced enterprise according to the fair value of the equity instrument at the

grant date or the fair value of the liability to be assumed and the capital reserve (other capital reserve) or

liabilities shall be recognized.b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity

instruments the share payment transaction shall be treated as equity-settled share payment; if the serviced

enterprise has settlement obligation and grants its employees other than its own equity instruments the share

payment transaction shall be treated as a cash-settled share payment.For the share based payment incurred between companies within the group if the serviced enterprise

and settlement enterprise are not the same then the payment should be recognized and measured in their

individual financial statements they should be accounted for using the above principles

26. Revenue

The company's operating income mainly includes income from selling goods income from providing

services royalty income interest income etc. When the company signs a contract it evaluates the contract

identifies the individual performance obligations contained in the contract and determines whether the

individual performance obligations are performed within a certain period of time or at a certain point of time.When the company has fulfilled all the performance obligations in the contract the revenue shall be

recognized respectively according to the transaction price apportioned to the performance obligations.

(1) Revenue recognition for fulfilling performance obligation at a certain time point

Generally the company recognizes the revenue from the sales of goods based on the transaction price

apportioned to the single performance obligation when the customer obtains the control right of the relevant

goods on the basis of comprehensively considering the following factors: the company has the right to

receive payment in respect of the goods or services currently that is the customer has the obligation to pay

for the goods currently; the company has transferred the legal ownership of the goods to the customer that

is the customer has the legal ownership of the goods; The Company has transferred the physical goods of

the commodity to the Customer or the Customer has obtained the qualification of physical goods right of the

commodity. The consideration obtained by the Company in respect of the transfer of the commodity is likely

to be recovered; Other indications that the customer has taken control of the commodity.The specific principles of the company's sales revenue recognition are as follows: when the commodity

have been delivered to the customer and signed by the customer for confirmation or the ownership certificate

of the commodity has been delivered to the customer the sales revenue is recognized when the company

has received the payment or obtained the evidence of payment.

(2) Revenue recognition for fulfilling performance obligation within a certain period of time

For the performance obligations performed in a certain period of time such as the services providedHainan Jingliang Holdings Co. Ltd. Annual Report 2022

the company adopts the output method or input method to determine the appropriate performance progress

and recognizes the revenue according to the performance progress in that period of time. On the balance

sheet date the company shall recognize the current income according to the total transaction price of the

contract multiplied by the progress of performance minus the accumulated recognized income. If one of the

following conditions is satisfied it is regarded as the performance obligation performed during a certain

period of time: the Customer obtains and consumes the economic benefits arising from the performance of

the Company at the same time of the performance of the Company; Customers can control the goods under

construction during the performance of the contract; The products produced by the Company during the

performance of the Contract are of irreplaceable use and the Company shall be entitled to receive payment

for the accumulated part of the completed performance so far during the whole term of the Contract.Otherwise the Company recognizes revenue at the point when the Customer acquires control of the relevant

goods or services.The Company's rights to receive consideration for goods or services transferred to the Customer (and

such rights depend on factors other than the time passage) are presented as contractual assets which are

subject to impairment on the basis of expected credit losses. The company's right to collect consideration

from customers unconditionally (only depending on the passage of time) is listed as receivables. The

obligation of the Company to transfer goods or services to customers for which consideration has been

received or receivable is presented as a contractual liability.

27. Contract cost

1. Contract performance cost

The cost incurred by the company for the performance of the contract which does not fall within the

scope of other accounting standards for business enterprises other than the income standard and meets the

following conditions at the same time is recognized as an asset as the contract performance cost:

(1) The cost is directly related to a current or expected contract including direct labor direct materials

manufacturing expenses (or similar expenses) costs explicitly borne by the customer and other costs incurred

solely as a result of the contract;

(2) The cost increases the company's resources for fulfilling its performance obligations in the future;

(3) The cost is expected to be recovered.

The assets are presented in inventory or other non-current assets according to whether the amortization

period has exceeded one normal operating cycle at the time of its initial recognition.

2.Contract acquisition cost

If the incremental cost incurred by the company to obtain the contract is expected to be recovered itHainan Jingliang Holdings Co. Ltd. Annual Report 2022

shall be recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will

not occur if the company does not obtain the contract.

3.Amortization of contract costs

The assets related to the contract cost mentioned above shall be amortized at the time of performance

of the obligation or according to the performance progress on the same basis as the income recognition of

the commodity or service related to the asset and shall be recorded into the current profit and loss.

4.Impairment of contract cost

If the book value of the above assets related to the contract cost is higher than the difference between

the residual consideration expected to be obtained by the company due to the transfer of the goods related to

the assets and the estimated cost to be incurred for the transfer of the relevant goods the excess part shall be

set aside as an impairment provision and recognized as an impairment loss of the asset.

28. Government grants

Government grant refers to the company's acquisition of monetary and non-monetary assets from the

government free of charge excluding the capital invested by the government as an investor and enjoying the

corresponding owner's rights and interests. Government grants include assets-related grants and revenue-

related grants. The company defines the government grant obtained for the purchase and construction of

long-term assets or for the formation of long-term assets in other ways as the government grant related to

assets; the remaining government grant is defined as the government grant related to income. If the object

of grants is not specified in government documents the grants shall be divided into income-related

government grants and assets-related government grants in the following ways: (1) If the government

document clarifies the specific project for which the grant is targeted the proportion of the expenditure

amount of the assets to be formed and the amount of the expenditures included in the expenses in the budget

of the specific project are divided and the proportion of grant division needs to be reviewed on each balance

sheet day and changed if necessary. (2) In government documents if the purpose is expressed only in general

terms and no specific project is specified the grant shall be regarded as a government grant related to the

income. Where a government grant is a monetary asset it shall be measured according to the amount received

or receivable. If the government grants are non-monetary assets they shall be measured at the fair value; if

the fair value cannot be obtained reliably they shall be measured at the nominal amount. Government grants

measured in nominal amounts shall be recognized directly in current profits and losses.The Company usually confirms and measures the government grant according to the amount when it is

actually received. However if there is conclusive evidence at the end of the period that the relevant

conditions stipulated in the financial support policy can be met and the financial support funds are expected

to be received it shall be measured according to the amount receivable. Government grants measured in

accordance with the amount receivable shall meet the following conditions at the same time: (1) The amountHainan Jingliang Holdings Co. Ltd. Annual Report 2022

of the subvention receivable has been confirmed by the authorized government departments or can be

reasonably calculated according to the relevant provisions of the formally issued financial fund management

measures and there is no significant uncertainty in the amount expected; (2) According to the "Regulations

on the Openness of Government Information" that the local financial department officially released and in

accordance with the provisions of the "Regulations on the Openness of Government Information" the

financial support project and its financial fund management measures should be inclusive (any eligible

enterprise can apply for them) rather than being specifically tailored to specific companies; (3) The relevant

grant approval has clearly promised the payment period and the allocation of the payment is guaranteed by

the corresponding budget so it can be reasonably ensure that it can be received within the prescribed time

limit; (4) Other relevant conditions (if any) to be met in accordance with the specific circumstances of the

Company and the grants.Government grants related to assets are recognized as deferred earnings and are divided into current

profits and losses in a reasonable and systematic way during the service life of the assets concerned. The

government grants related to revenue which are used to compensate for the related cost or loss in the

subsequent period shall be recognized as deferred income and shall be recognized in profit or loss in the

period in which the related costs or losses are recognized; if it is used to compensate the related costs or

losses that has occurred it shall be directly recognized in the current profit and loss.It includes government grants related to both assets and income and different parts are separately

classified for accounting treatment; if it is difficult to distinguish the whole is classified as government

grants related to income.Government grants related to the daily activities of the Company shall be included in other income or

cost deductions according to the nature of the economic business; 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.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

(2) If the finance allocates the discount funds directly to the company the company will offset the

corresponding discount against the relevant borrowing costs.

29. 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 the above exceptions the Company recognizes all other

deferred income tax liabilities arising from taxable temporary differences.Taxable temporary differences which related to the initial recognition of an asset or liability arising

from a transaction that is neither a business combination nor an accounting profit or taxable income (or

deductible loss) relevant deferred income tax liabilities shall not be recognized. In addition for taxable

temporary differences related to investments in subsidiaries associates and joint ventures if the temporary

difference is unlikely to be reversed in the foreseeable future or the amount of taxable income used to offset

the temporary difference is unlikely to be obtained in the future the deferred income tax assets concerned

shall not be recognized. Except for the above exceptions the Company recognizes other deferred income

tax assets that can offset temporary differences subject to the amount of taxable income that is likely to be

obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years the corresponding

deferred income tax assets are recognized to the extent that it is probable that the future taxable income shall

be used to offset the deductible losses and tax credits.On the balance sheet date the deferred income tax assets and deferred income tax liabilities shall beHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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 settle the current income tax assets and liabilities on a net basis or acquire assets and

pay off liabilities simultaneously the deferred the income tax assets and deferred income tax liabilities of

the Company shall be presented on a net basis after offset.

30. Lease

Finance lease is a lease that essentially transfers all risks and rewards related to the ownership of assets.Its ownership may or may not be transferred eventually. Leases other than finance leases are operating leases.

(1) The Company records operating lease business as a lessee.

Rental expenses for operating leases shall be included in the related asset costs or current profits and

losses in the straight-line method during each period of the lease period. The initial direct costs shall be

included in the current profits and losses. Contingent rentals shall be recognized in profits and losses when

incurred.

(2) The company records operating lease business as a lessor

The rental income of operating lease shall be recognized as current profit and loss according to theHainan Jingliang Holdings Co. Ltd. Annual Report 2022

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.

(3) The company records finance lease business as a lessee

At the beginning of the lease period the lower of the fair value of the leased assets and the present value

of the minimum lease payment on the lease start date is regarded as the entry value of the leased assets and

the lowest lease payment shall be regarded as the entry value of the long-term payables and the difference

shall be regarded as the unrecognized financing cost. In addition the initial direct costs attributable to the

lease project shall also be included in the value of the leased assets when they occur during the lease

negotiation and the signing of the lease contract. The balance of the minimum lease payment after deducting

the unrecognized financing costs shall be presented as long-term liabilities and long-term liabilities due

within one year respectively.The unrecognized financing cost shall be calculated by the real interest rate method during the lease

period. Contingent rentals shall be included in current profits and losses when actually occurring.

(4) The company records finance lease business as a lessor

At the beginning of the lease period the sum of the minimum lease receipt and the initial direct cost on

the lease start date is regarded as the entry value of the financial lease receivable and the unsecured balance

shall be recorded. The difference between the sum of the minimum lease receivable the initial direct cost

and the unsecured balance and the sum of its present value is recognized as the unrealized financing income.The balance of the receivable financial lease after deducting the unrealized financial income shall be

presented as long-term claims and long-term claims maturing within one year respectively.The unrealized financing income shall be calculated and confirmed by the real interest rate method

during the lease period. Contingent rentals shall be recognized in current profits and losses when actually

occurring.

31. Other important accounting policies and accounting estimates

(1) Termination of business

Termination of operation refers to a component that meets one of the following conditions can be

separately distinguished and has been disposed of or classified as held for sale by the Company: * This

component represents an independent major business or a separate major business area. * This component

is part of an associated plan to dispose of an independent major business or a separate major business area.* This component is a subsidiary company acquired specifically for resale.For the accounting treatment methods for termination of operations please refer to the relevantHainan Jingliang Holdings Co. Ltd. Annual Report 2022descriptions in Note 3 12 “Assets held for sale and disposal group".

(2) Hedge accounting

In order to avoid some risks the Company hedges some financial instruments as hedging instruments.For the 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.

(3)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.

32. Significant accounting judgments and estimates

In the process of applying accounting policies due to the inherent uncertainty of business activities the

Company needs to judge estimate and assume the book value of statement items that cannot be accurately

measured. These judgments estimates and assumptions are based on the Company's management's past

historical experience and other relevant factors. These judgments estimates and assumptions will affect the

reported amounts of income expenses assets and liabilities and the disclosure of contingent liabilities at the

balance sheet date. However the actual results caused by the uncertainty of these estimates may be different

from the current estimates of the Company's management resulting in a significant adjustment to the

carrying amount of the assets or liabilities affected in the future.The Company reviews the aforesaid judgments estimates and assumptions on a regular basis on the

basis of going concern. If the change of accounting estimates only affects the current period of change the

number of impacts shall be recognized in the current period of change. If the change affects both the currentHainan Jingliang Holdings Co. Ltd. Annual Report 2022

and future periods the number of impacts will be confirmed in the current and future periods of the change.On the balance sheet date the Company needs to judge estimate and assume the amount of financial

statement items in the following important areas:

1. Impairment of financial assets

The Company uses the expected credit loss model to evaluate the impairment of financial instruments.The application of the expected credit loss model requires significant judgment and estimation and all

reasonable and basis information including forward-looking information shall be considered. In making

these judgments and estimates the Company deduces the expected changes in the debtor's credit risk based

on historical data and combined with economic policies macroeconomic indicators industry risks external

market environment technological environment changes in customer conditions and other factors.

2. Inventory falling price reserves

According to the inventory accounting policy the Company measures according to the lower of cost

and net realizable value. For the inventory whose cost is higher than net realizable value and which is

obsolete and unsalable the Company makes provision for inventory falling price. Impairment of inventories

to net realizable value is based on the evaluation of the marketability of inventories and their net realizable

value. The appraisal of impairment of inventories requires the management to make judgment and estimation

on the basis of obtaining conclusive evidence and considering factors such as the purpose of holding

inventories and the influence of events after the balance sheet date. The difference between the actual result

and the original estimate will affect the book value of inventory and the accrual or reversal of inventory

depreciation reserve during the period when the estimate is changed.

3. Provision for impairment of long-term assets

On the balance sheet date the Company judges whether there are signs of possible impairment for non-

current assets other than financial assets. For intangible assets with uncertain service life in addition to the

annual impairment test the impairment test is also carried out when there are signs of impairment. Other

non-current assets other than financial assets shall be tested for impairment when there are indications that

their book amounts are not recoverable.When the book value of an asset or asset group is higher than the recoverable amount that is the higher

of the net amount of the fair value minus the disposal expenses and the present value of the estimated future

cash flow it indicates that an impairment has occurred

The net amount of the fair value less the disposal expenses shall be determined by referring to the sales

agreement price or observable market price of similar assets in fair transactions and deducting the

incremental cost directly attributable to the disposal of such assets.When estimating the present value of future cash flow it is necessary to make a significant judgment

on the output sales price related operating costs and the discount rate used in the calculation of the presentHainan Jingliang Holdings Co. Ltd. Annual Report 2022

value of the asset (or asset group). In estimating the recoverable amount the Company will use all relevant

information available including forecasts of production selling price and related operating costs based on

reasonable and supportable assumptions.The Company shall test whether goodwill is impaired at least every year. This requires an estimate of

the present value of the future cash flows of the asset group or portfolio of asset groups to which goodwill

has been allocated. When predicting the present value of future cash flow the Company needs to predict the

cash flow generated by the future asset group or asset group portfolio and at the same time select the

appropriate discount rate to determine the present value of future cash flow.

4. Depreciation and amortization

After considering the residual value of investment real estate fixed assets and intangible assets the

Company will accrue depreciation and amortization on a straight-line basis during their service lives. The

Company reviews the service life regularly to determine the amount of depreciation and amortization

expenses to be included in each reporting period. The service life is determined by the Company based on

the past experience of similar assets and in portfolio with the expected technological updates. If there is a

significant change in previous estimates the depreciation and amortization charges will be adjusted in the

future.

5. Deferred income tax assets

To the extent that there is likely to be sufficient taxable profits to offset the losses the Company

recognizes deferred income tax assets for all unused tax losses. This requires the Company's management to

use a large number of judgments to estimate the time and amount of future taxable profits combined with

tax planning strategies to determine the amount of deferred income tax assets to be recognized.

6. Income tax

In the normal business activities of the Company there are certain uncertainties in the final tax treatment

and calculation of some transactions. Whether some items can be paid before tax requires the approval of

the tax authorities. If there is a difference between the final determination result of these tax matters and the

amount initially estimated the difference will have an impact on the current income tax and deferred income

tax during the final determination period.

7. Accrued liabilities

According to the terms of the contract existing knowledge and historical experience the Company

estimates and makes corresponding provision for product quality assurance estimated contract losses

liquidated damages for delayed delivery etc. In the event that such contingencies have formed a current

obligation and the performance of the current obligations is likely to result in outflow of economic benefits

from the Company the Company recognizes the contingencies as estimated liabilities based on the best

estimate of the expenditure required to perform the relevant current obligations. The recognition andHainan Jingliang Holdings Co. Ltd. Annual Report 2022

measurement of the estimated liabilities depend to a large extent on the judgment of the management. In the

process of judgment the Company needs to evaluate the risks uncertainties time value of money and other

factors related to these contingencies.Among them the Company will make an estimated liability for the after-sales quality maintenance

commitments provided to customers for the sale maintenance and renovation of the goods sold. The

Company's recent maintenance experience data have been taken into account when estimating liabilities but

the recent maintenance experience may not reflect the future maintenance situation. Any increase or decrease

in this provision may affect the profit and loss in the future years.

8. Fair value measurement

Certain assets and liabilities of the Company are measured at fair value in the financial statements.When estimating the fair value of an asset or liability the Company adopts the available observable market

data available. If the first level input value cannot be obtained the Company will employ a qualified third-

party appraiser to perform the appraisal. The Company works closely with qualified external appraisers to

determine the appropriate valuation techniques and inputs to the relevant models

IV. Taxes

1. Main Taxes and Tax Rates

Types Tax Basis Tax Rate

After deducting the allowable amount of input tax deducted 1%、3%、

in the current period the difference between the sales of

5%、6%、Value Added Tax goods taxable services and taxable services income

calculated in accordance with the provisions of the Tax Law 9%、10%、

is the taxable value-added tax. 13%

Urban Maintenance &

According to the actual value-added tax 7%、5%

Construction Tax

Extra charges of According to value added tax and consumption tax on the

3%

education funds basis of actual payment

Local Extra Charges According to value added tax and consumption tax on the

2%

of Education Funds basis of actual payment

25%、20%、Corporate Taxes According to taxable income

17%、15%

According to 70% of original value of the real estate (or

Property Tax rental income) as the tax base; according to the original value 12%、1.2%

of the 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 (Singapore) International Trade Co. Ltd. 17%

Beijing Guchuan Bread Food Co. Ltd. 15%

2. Important preferential tax policies and basis

Hangzhou Linan Little Angel Food Co. Ltd. a grade-4 subsidiary company of the Company is a

welfare enterprise. Since May 2016 it has enjoyed the preferential VAT policy of immediate refund upon

payment in Preferential Value-Added Tax Policies for Promoting the Employment of Disabled PersonsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

(CaiShui [2016] No.52).

The grade-2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited

according to the document JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian

District Tangshan affiliated to State Administration of Taxation and also followed the rules in Law of the

People's Republic of China on the Administration of Tax Collection The Implementation Guideline of

Law of the People's Republic of China on the Administration of Tax Collection the rice under the brand of

Tixiang produced by Caofeidian company if exempted from VAT.The grade-2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited

according to the rules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86 the

rice under the brand of Tixiang produced by Caofeidian company is exempted from Corporation 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 rateaccording to the relevant provisions of both “Law of the People's Republic of China on Tax Collection andAdministration” and “Rules for the Implementation of the Tax Collection and Administration Law of thePeople's Republic of China”. It obtained the certificate of high-tech enterprise No. GR202111000657 valid

until September 14 2024.The grade-3 subsidiary Beijing Tianweikang grease Distribution center Co. Ltd. is exempt from

stamp duty on the capital account book in accordance with the Announcement on the Continuation of the

Preferential Tax Policies of Part of the National Commodity Reserves issued by Beijing Municipal Bureau

of Finance and the State Taxation Bureau of Beijing Municipal Taxation Bureau (Beijing Finance Taxation

Bureau [2022] No. 1230) (No. 8 2022). Stamp duty shall be exempted from the purchase and sale contracts

signed in the course of undertaking commodity reserve business and stamp duty payable by other parties

to the contract shall be levied according to the regulations. Property tax and urban land use tax shall be

exempted from the property tax and urban land use tax for the self-use of the property and land that

undertakes commodity reserve business. The notice will be enforced from January 1 2022 to December

312023.

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 ofHainan Jingliang Holdings Co. Ltd. Annual Report 2022Taxation “Notice on Preferential Enterprise Income Tax Policies for Employment of Persons withDisabilities”(Cai Shui[2009] No.70) Hangzhou Linan Little Angel Food Co. Ltd. a grade-4 subsidiary

company of the Company: Where an enterprise employs persons with disabilities on the basis of deduction

according to the wages paid to the disabled workers it may deduct the amount of taxable income

according to 100% of the wages paid to the disabled workers.The grade-3 subsidiary Zhejiang Xiaowangzi Foodstuff Co. Ltd. and the grade-4 subsidiary

company-Hangzhou Linan Little Angel Food Co. Ltd. are entitled to enjoy the urban land use tax

reduction policy of unified implementation of classification and grading for taxpayers in the manufacturing

industry within the province (including Ningbo City) according to the provisions of the General Office of

the People's Government of Zhejiang Province Document No. 62 of 2019 and enjoy 100% and 80%

reduction of urban land use tax for Class A and Class B enterprises respectively until December 31 2022

with the maximum reduction of 100% and 80% of the urban land use tax payable by the Unit for the year.Linqing Little Prince Food Co. Ltd. a grade-4 subsidiary of the company shall be subject to 50% of

the sales revenue on the basis of the stamp tax payable in the industrial procurement link and sales link in

the purchase and sale contract of industrial enterprises according to the announcement No.10 2018 issued

by Shandong Provincial Tax Bureau. The base of stamp duty payable in 2022 shall be calculated according

to 50% of the sales revenue.The grade-4 subsidiary-Liaoning Xiaowangzi Food Limited according to the Supplementary

Announcement on Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89)

GSDZ No.140 Clause 13 states that public land such as municipal street square public green etc. can be

exempted from land use tax when computing land use tax the area used in the computation is total area

less the area for afforest and street.The grade-4 subsidiary-Hangzhou Lin'an Chunmanyuan Agricultural Development Co. Ltd.according to the Announcement of the State Administration of Taxation on Matters Relating to the

Implementation of Preferential Income Tax Policies to Support the Development of Small and Micro-profit

Enterprises and Individual Entrepreneurs and State Administration of Taxation Announcement No. 8 of

2021 from January 1 2021 to December 31 2022 for small and micro-profit enterprises with annual

taxable income not exceeding RMB1 million The part of the annual taxable income of small and medium-

sized enterprises shall be reduced by 12.5% of the taxable income and the enterprise income tax shall be

calculated at a tax rate of 20%.Jingliang (Hebei) Oil Industry Co. LTD. the grade-4 subsidiary of the Company according to the

Announcement of the State Administration of Taxation of the Ministry of Finance No. 8 of 2022 the

Announcement of the State Administration of Taxation of the Ministry of Finance on the Continuation of

the Preferential Tax Policies of some National Commodity Reserves andJi Fiscal and Taxation No. 8 theHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Notice of Hebei Province on Organizing and carrying out the Tax-free Qualification Declaration of Local

Commodity Storage Enterprises Stamp duty shall be exempted for the account books of funds for the

purchase and sale contracts signed in the course of undertaking commodity reserve business and for the

stamp duty payable by the other parties to the contract according to the regulations. Property tax and urban

land use tax shall be exempted from the property tax and urban land use tax for the self-use of the property

and land that undertakes commodity reserve business. The notice will be enforced from January 1 2022 to

December 31 2023. Jingliang (Hebei) Oil Industry Co. LTD. the grade-4 subsidiary of the company is

exempt from VAT on the sale of government reserve edible vegetable oil in accordance with the Notice of

the State Administration of Taxation of the Ministry of Finance on the Issue of VAT Collection and

Exemption for Grain Enterprises (Fiscal and Taxation No. 198).The grade-2 subsidiary Jingliang (Beijing) Food Marketing Management Co. LTD. the grade-4

subsidiary Linqing Little Prince Food Co. LTD.and Hangzhou Linan Chunmanyuan Agricultural

Development Co. LTD. are applicable to the fiscal and tax No.10 [2022] issued by the State

Administration of Taxation of the Ministry of Finance on the Further Implementation of the "Six Taxes and

two Fees" Reduction Policy for small and micro Enterprises in this period. The company meets the

requirements for identification as a small and micro enterprise and the preferential policies applicable in

2022 are as follows: "To be determined by the people's governments of provinces autonomous regions and

municipalities directly under the Central Government in light of their actual conditions and the need for

macro-control For small-scale VAT taxpayers small and low-profit enterprises and individual industrial

and commercial households resource tax 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. Changes in accounting policies accounting estimates and explanation of corrections to

previous errors

1. Changes in accounting policies

(1)The company adopted the relevant provisions of the Accounting Standards for Enterprises

Interpretation No. 16 (Accounting and Accounting [2022] No. 31) from January 1 2022. This change in

accounting policy has been no effect on the company's statements.

(2) The company adopted the relevant provisions of Accounting Standards for Business Enterprises

Interpretation No. 15 (Finance and Accounting (2021) No. 35) from January 1 2022 "Accounting treatment

of products or by-products produced before fixed assets reach the predetermined usable state or in the process

of research and development" and "judgment on loss-making contracts". This change in accounting policy

has been no effect on the company's statements.

2. Changes in accounting estimatesHainan Jingliang Holdings Co. Ltd. Annual Report 2022

There is no change in accounting estimate during the reporting period.

3. Correction of previous accounting errors

There is no previous accounting error correction in this reporting period.Ⅵ. Notes on Items in Consolidated Financial Statements

Note: The ‘beginning’ of the period refers to January 1 2022 and the ‘end’ of the period refers to

December 31 2022. The previous period refers to the year 2021and the current period refers to the year 2022.

1. Monetary funds

(1) Classification list

Items Ending Balance Beginning Balance

Cash 10693.10 15012.17

Bank Deposits 541089415.35 465853913.24

Other Currency Funds 19913001.31 41275743.04

Total 561013109.76 507144668.45

Among them: the total amount of money deposited abroad 16585678.20 16432706.23

(2) At the end of the period there are 9573999.69 yuan of freezing and other restricted funds.

Mainly margin for foreign exchange derivatives business.

(3) At the end of the period there is no funds deposited abroad and the return of funds is restricted.

2. Transactional financial assets

Items Ending Balance Beginning Balance

Financial assets measured at fair value with changes

11005983.9840377048.08

included in current profits and losses

Among them: debt instrument investment 11005983.98 40377048.08

Total 11005983.98 40377048.08

3. Derivative financial assets

Items Ending Balance Beginning Balance

Hedging instrument floating profit

201549.12

and loss

Total 201549.12

4. Accounts Receivable

(1)Disclosed according to aging

Aging Ending Balance

Within 1 Year (including 1 year) 53353692.33

Among them: Within the credit (within 3 months)

50652171.97

Credit period to 1 year

2701520.36

1 to 2 years (including 2 years) 18692634.64

2 to 3 years (including 3 years) 7499480.04

3 to 4 years (including 4 years)Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Aging Ending Balance

4 to 5 years (including 5 years)

More than 5 years 328259.50

Sub-total 79874066.51

Less Bad Debt provision 2816619.65

Total 77057446.86

（2）Present according to the method of provision for bad debt

Ending Balance

Type(s) Book Balance Bad Debt Provision

Provision Book Value

Amount Ratio(%) Amount

Ratio(%)

Separate provision for bad debts 328259.50 0.41 328259.50 100.00

Portfolio provision for bad debts 79545807.01 99.59 2488360.15 3.13 77057446.86

Among them: portfolio 1 67813844.17 84.90 2488360.15 3.67 65325484.02

portfolio 2 11731962.84 14.69 11731962.84

Total 79874066.51 100.00 2816619.65 77057446.86

（Continued）

Beginning Balance

Type(s) Book Balance Bad Debt Provision

Provision Book Value

Amount Ratio(%) Amount

Ratio(%)

Separate provision for bad debts 1324259.50 1.57 1324259.50 100.00

Portfolio provision for bad debts 83278298.33 98.43 584203.71 0.70 82694094.62

Among them: portfolio 1 74329280.51 87.86 584203.71 0.79 73745076.80

portfolio 2 8949017.82 10.58 8949017.82

Total 84602557.83 100.00 1908463.21 82694094.62

A. Separate provision for bad debts

Ending Balance

Name Accounts Bad Debt Provision

Provision Reason

Receivable Provision Ratio

Beijing Rongfa Lida Grain and Oil expected

163143.00163143.00100.00

Trade Co. Ltd. unrecoverable

Fujian Jingxin Industrial Group Co. expected

151844.00151844.00100.00

Ltd unrecoverable

expected

Others 13272.50 13272.50 100.00

unrecoverable

Total 328259.50 328259.50

B. Portfolio provision for bad debts

1. Portfolio provision: aging portfolioHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Ending Balance Beginning Balance

Name Accounts Bad Debt Provision Accounts Bad Debt Provision

receivable Provision Ratio receivable Provision Ratio

Within 1 Year

41621729.4953832.4165611523.1634531.93

(including 1 year)

Among them: Within

the credit (within 3 38930117.33 0 63884932.01 0

months)

Credit period to 1

2691612.1653832.4121726591.1534531.932

year

1 to 2 years

18692634.64934631.7358594045.46429702.275

(including 2 years)

2 to 3 years

7499480.041499896.0120

(including 3 years)

3 to 4 years

(including 4 years)

4 to 5 years

18711.8914969.5180

(including 5 years)

More than 5 years 105000.00 105000.00 100

Total 67813844.17 2488360.15 74329280.51 584203.71

2. Portfolio provision: related parties portfolio

Ending Balance Beginning Balance

Name Accounts Bad Debt Provision Accounts Bad Debt Provision

receivable Provision Ratio receivable Provision Ratio

Related parties

11731962.848949017.82

portfolio

Total 11731962.84 8949017.82

（3） details of bad debt provision

The amount changed for the period

Beginning Ending

Items

Balance Withdrawal Other Addition Write-off Balance

or reversal changes

Bad debt

provision on 1324259.50 996000.00 328259.50

individual basis

Credit

584203.712012156.44108000.002488360.15

impairment loss

Total 1908463.21 2012156.44 1104000.00 2816619.65

（4）Accounts receivable actually written off in the current period

Items Write-off amount

Beijing Xidan Spicy Temptation Catering Co. Ltd 996000.00

Hainan Pearl River Pipe Pile Co. Ltd 108000.00

During the period the manager's office meeting approved to write off the uncollectible receivables.

（5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the PeriodHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Ratio of

Accounts Whether Bad Debt

Debtors totalaccounts Aging

receivable related Provision

receivable (%)

Tangshan Caofeidian District 1-2 years，2-3

25997336.04 32.55 No 2424788.81

Finance Bureau years

Hangzhou Holmes Food Co. Within 3

4581685.96 5.74 No

Ltd. months

Within 3

Shanghai Laiyifen Co.Ltd. 4016604.11 5.03 No

months

Hebei Luanping Huadu Food

3548214.00 4.44 4-12 months Yes

Co. Ltd

Zhejiang Lvqin Supply Chain Within 3

3446942.24 4.32 No

Management Co. Ltd months

Total 41590782.35 52.08 2424788.81

5. Advanced Payment

(1) Advances are presented by age

Ending Balance Beginning Balance

Aging

Amount Ratio(%) Amount Ratio(%)

Within 1 year (including 1 year) 194490369.48 99.99 87713762.15 99.90

1 to 2 years (including 2 years) 5278.58 0.01 90000.00 0.10

2 to 3 years (including 3 years)

More than 3 years

Total 194495648.06 100.00 87803762.15 100.00

(2) Advance payment of the top five Ending Balances by prepaid objects

Ratio of the total ending

Debtor Name Ending Balance balance of prepayments

(%)

China Grains and Oils Co. Ltd 127549301.83 65.58

Tianjin Lingang Customs of the People's Republic of China 39989746.37 20.56

Xiamen Xiangyu Agricultural Products Co. Ltd 9658353.04 4.97

China Grains Reserve Zhenjiang Grain and Oil Co. Ltd 4117228.54 2.12

Louis Dreyfus (Tianjin) International Trade Co. Ltd 3229405.46 1.66

Total 184544035.24 94.89

6. Other Receivables

1.Overview

(1)Classification

Item(s) Ending Balance Beginning Balance

Interest Receivable

Dividend Receivable

Other Receivables 444523698.48 284756636.27

Total 444523698.48 284756636.27

2.Other Receivables

A. Disclosed according to agingHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Aging Ending Balance

Within 1 Year (including 1 year) 435828243.19

Among them: Within the credit (within 3 months) 435268072.23

Credit period to 1 year 560170.96

1 to 2 years (including 2 years) 7333429.30

2 to 3 years (including 3 years) 741388.00

3 to 4 years (including 4 years) 88638.00

4 to 5 years (including 5 years) 101999.99

More than 5 years 430000.00

Sub-Total 444523698.48

Less Bad Debt provision

Total 444523698.48

B. Classification of other receivables by nature of funds

Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year

Guaranteed Deposit and Deposit 436908577.53 277445730.08

Intercourse Funds of Units 5728584.30 6142777.03

Employee Receivables 1051023.02 755783.37

Tax Refund Receivables 548483.77 363103.93

Personal Intercourse Funds

Others 287029.86 149939.71

Total 444523698.48 284857334.12

C. Details about allowance for bad debt

Stage 1 Stage 2 Stage 3

Expected credit Expected credit

Expected

loss for the loss for the

Provision for bad debt credit loss in Total

whole period whole period

the next 12

(no credit (with credit

months

impairment) impairment)

Amount on 1st January 2022 100697.85 100697.85

Carrying amount on 1st January 2021

that in this period:

——Get into Stage 2

——Get into Stage 3

——Get back to Stage 2

——Get back to Stage 1

Provision for the period

Reverse for the period 7500.00 7500.00

Transfer for the period

Write off for the period 93197.85 93197.85

Other changes

Amount on 31st December 2022

D. Details of bad debt provision

Carrying Amount changes for the period Carrying

Type amount at amount

Addition Withdrawal Write- Other

the at theHainan Jingliang Holdings Co. Ltd. Annual Report 2022

beginning or reversal off changes end

Credit

impairment 100697.85 7500.00 93197.85

loss

Total 100697.85 7500.00 93197.85

E. Other receivables actually written off in the current period

Items Write-off amount

Actual amount 93197.85

During the period t the manager's office meeting approved to write off the uncollectible receivables

F. Other receivables according to top five of balance at end of period collected by debtors

Proportion in overall Ending balance

Name of Nature of Balance at End of

Aging ending balance of other of bad debt

Organization Funds Period

receivables (%) reserves

Zhongtian Futures Futures 269474623.60 Within 1 60.62

Co. Ltd margin year

Haitong Futures Futures 111810836.00 Within 1 25.15

Co. Ltd margin year

Futures 24376100.00 Within 1 5.48

ADM International

margin year；1-2

Sarl

years

Sdic Cgog Futures Futures 15750181.20 Within 1 3.54

Co. Ltd. margin year

GAVILON CHINA Futures 6964600.00 Within 1 1.57

(HK) LIMITED margin year

Total 428376340.80 96.36

G. Receivables related to government grants

Name of Aging at the Time amount and

Carrying amount

Name of the grant company government end of the evidence of expected

at the end

grants period collection

Tax Bureau of Linan All amount will be

Within 3

DIatrict Hangzhou Refund of VAT 548483.77 collected in February

months

Zhejiang Province 2023

Total 548483.77

7. Inventory

(1) Inventory Category

Ending Balance Beginning Balance

Falling

Items Falling Price

Book Balance Book Value Book Balance Price Book Value

Reserves

Reserves

Raw Materials 445721945.85 4599.51 445717346.34 120983829.85 120997.67 120862832.18

Revolving

5267896.635267896.635247229.295247229.29

Materials

Goods and

materials in 337276381.65 337276381.65 522101505.11 522101505.11

transit

Inventory goods 1081693725.26 44208166.31 1037485558.95 1007319237.46 355731.86 1006963505.60

Qil reserve 248197500.00 248197500.00 248197500.00 248197500.00

Total 2118157449.39 44212765.82 2073944683.57 1903849301.71 476729.53 1903372572.18

(2) Inventory Falling Price Reserves and provision for impairment of contract performance costsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Increased Amounts in Decreased Amounts in the

Balance at

the Current Period Current Period Balance at End

Items Beginning of

Recover or of Period

Year Accrual Others Others

Charge Off

Stock Goods 355731.86 44037824.85 185390.40 44208166.31

Raw material 120997.67 4599.51 120997.67 4599.51

In total 476729.53 44042424.36 306388.07 44212765.82

Note: the basis for the provision of depreciation is the public market quotation.

(3)Stock Goods listed by major product type

Ending Balance Beginning Balance

Items Falling

Falling Price

Book Balance Book Value Book Balance Price Book Value

Reserves

Reserves

Grease

1048142485.9444023263.601004119222.34975554568.82170341.46975384227.36

and oils

Food 33551239.32 184902.71 33366336.61 31764668.64 185390.40 31579278.24

Total 1081693725.26 44208166.31 1037485558.95 1007319237.46 355731.86 1006963505.60

8. Non-current assets due within one year

Items Balance at End of Period Balance at Beginning of Period

Three-year term deposits 148387894.16 156139100.00

In total 148387894.16 156139100.00

9. Other Current Assets

Items Balance at End of Period Balance at Beginning of Period

Financial Products 405999000.00 742800000.00

Pre-paid Taxes and Fees 15477676.61 1192806.93

Pending Deduct VAT Input Tax 45572085.33 13930489.13

Fair Value Changes of Items Trapped

165881137.8162577325.41

at Hedging

In total 632929899.75 820500621.47

10. Long-term Equity Investment

Increase or Decrease in the Current Period

Balance at

Invested Unit Beginning of Confirmed Profit and Loss Additional Negative

Year on Investment under Equity Investment Investment

Method

1. Cooperative

Enterprise

Beijing CHIA TAI

112016416.649128159.96

FeedmillCo. Limited

Sub-total 112016416.64 9128159.96

2. Joint Venture

China Grain Reserves

(Tianjin) Warehouse 111894762.89 3612066.17

Logistics Co. Ltd.Jingliang 6888258.00 -446589.18Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Increase or Decrease in the Current Period

Balance at

Invested Unit Beginning of Confirmed Profit and Loss Additional Negative

Year on Investment under Equity Investment Investment

Method

Missme Catering

Management

(Beijing) Co. Ltd.

Sub-total 118783020.89 3165476.99

Total 230799437.53 12293636.95

(Continued)

Increase or Decrease in the Current Period Balance at End Ending

Adjustment of Other Announce to Accrual of Others of Period Balance of

other changes Distribute Case Impairme Impairment

comprehensive in equity Dividends or nt Reserves

income Profits Reserves

460842.50121605419.10

460842.50121605419.10

115506829.06

6441668.82

121948497.88

460842.50243553916.98

11. Other equity instruments investment

Item Ending Balance Beginning Balance

Chongqing long jinbao network technology co. LTD 20000000.00 20000000.00

China Net Technology Investment Co. Ltd

Total 20000000.00 20000000.00

12. Investment Real Estate

(1) Investment Real Estate Adopting Cost Measurement Model

Land Use

Items Buildings Total

Right

One. Original Book Value

1. Balance at Beginning of Year 53844801.60 53844801.60

2. Increased Amounts in the Current Period 978420.00 978420.00

(1) Outsourcing

(2) Inventory transfer 978420.00 978420.00

(3) Others

3. Decreased Amounts in the Current Period 131640.00 131640.00

(1) Disposal

(2) Other transfer out 131640.00 131640.00

4. Balance at End of Period 54691581.60 54691581.60

Two. Accumulated Impairment and Accumulated

Amortization

1. Balance at Beginning of Year 22331321.34 22331321.34

2. Increased Amounts in the Current Period 2034786.32 2034786.32Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Land Use

Items Buildings Total

Right

(1) Accrual or Amortization 2034786.32 2034786.32

3. Decreased Amounts in the Current Period 67599.00 67599.00

(1) Disposal

(2) Other transfer out 67599.00 67599.00

4. Balance at End of Period 24298508.66 24298508.66

Three. Impairment Reserves

1. Balance at Beginning of Year 10587796.70 10587796.70

2. Increased Amounts in the Current Period

(1) Accrual

(2) Inventory transfer

3. Decreased Amounts in the Current Period

(1) Disposal

(2) Other transfer out

4. Balance at End of Period 10587796.70 10587796.70

Four. Book Value

1. Book Value at End of Period 19805276.24 19805276.24

2. Book Value at Beginning of Year 20925683.56 20925683.56

13. Fixed Assets

1.Overview

(1)Classification

Items Balance at End of Period Balance at Beginning of Year

Fixed Assets 1047451810.24 1120758409.49

Disposal of Fixed Assets

1047451810.241120758409.49

In total

2.Fixed Assets

(1)Fixed Assets Situation

Transportat

Machinery Electronic Office

Items Buildings ion Others Total

Equipment Equipment Equipment

Equipment

One. Original Book

Value

1. Balance at

1119870541.94788852320.8021026928.9212402490.917137610.081641296.491950931189.14

Beginning of Year

2. Increased

Amounts in the 4189847.87 19975874.69 1231887.12 768444.03 278814.60 2800.00 26447668.31

Current Period

(1) Purchase 3305780.29 16136570.52 1214963.12 768444.03 278814.60 2800.00 21707372.56

(2) Roll-in of

4723371.75

Project under 884067.58 3839304.17

Construction

(3) Roll-in of

16924.0016924.00

inventory

3. Decreased

Amounts in the 1290762.00 4002972.96 1800951.76 140132.09 400939.36 7635758.17

Current PeriodHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Transportat

Machinery Electronic Office

Items Buildings ion Others Total

Equipment Equipment Equipment

Equipment

(1) Disposal or

1290762.004002972.961800951.76140132.09400939.367635758.17

Scrap

4. Balance at End

1122769627.81804825222.5320457864.2813030802.857015485.321644096.491969743099.28

of Period

Two. Accumulated

Impairment

1. Balance at

378851324.94414055308.6013724476.808323942.985502808.17592046.43821049907.92

Beginning of Year

2. Increased

Amounts in the 39582154.04 55390041.87 1468931.52 1351336.96 508694.10 60051.60 98361210.09

Current Period

(1) Accrual 39582154.04 55390041.87 1468931.52 1351336.96 508694.10 60051.60 98361210.09

3. Decreased

Amounts in the 636122.76 3667460.06 1456015.76 133321.41 346972.60 6239892.59

Current Period

(1) Disposal or

636122.763667460.061456015.76133321.41346972.606239892.59

Scrap

4. Balance at End

417797356.22465777890.4113737392.569541958.535664529.67652098.03913171225.42

of Period

Three. Impairment

Reserves

1. Balance at

9047959.1374912.609122871.73

Beginning of Year

2. Increased

Amounts in the

Current Period

(1) Accrual

(2) Roll-in of

inventory

3. Decreased

Amounts in the 2808.11 2808.11

Current Period

(1) Disposal or

2808.112808.11

Scrap

4. Balance at End

9047959.1372104.499120063.62

of Period

Four. Book Value

1. Book Value at

695924312.46338975227.636720471.723488844.321350955.65991998.461047451810.24

End of Period

2. Book Value at

731971257.87374722099.607302452.124078547.931634801.911049250.061120758409.49

Beginning of Year

(2)Fixed assets without property right certificate

Project Book Value Reasons for failure to complete certificate of title

Buildings 2236948.76 No title certificate for auxiliary assets

14. Project under Construction

1.Overview

(1)Classification

Items Balance at End of Period Balance at Beginning of Year

Project under Construction 22695003.52 11220840.10

Total 22695003.52 11220840.10

2.Project under ConstructionHainan Jingliang Holdings Co. Ltd. Annual Report 2022

(1)Situation of Project under Construction

Balance at End of Period Balance at Beginning of Year

Impairme

Items Impairmen

Book Balance nt Book Value Book Balance Book Value

t Reserves

Reserves

1. Slope treatment

5244356.215244356.213584245.073584245.07

project of No.3 plant

2. Comprehensive

bonded zone feed

processing project 5224681.81 5224681.81 113207.54 113207.54

automation line

project

3. Walnut cake

production line of 4238844.00 4238844.00 4234344.00 4234344.00

No.2 plant

4. Konjac test

1787067.941787067.94364763.09364763.09

facilities

5. Soybean extruding

and rumen soybean

1618517.501618517.50

meal processing

project

6. The second factory

baked potato

953600.00953600.00

matching automation

line

7. Thermal energy

recovery and 856263.58 856263.58

utilization project

8. Odor control

792660.56792660.56

project

9. Soy snacks test

542214.80542214.80

facilities

10.West yard

leaching workshop 344775.86 344775.86

decoration project

11. New production

line of fried potato 2038825.39 2038825.39

chips

12. Others 1092021.26 1092021.26 885455.01 885455.01

Total 22695003.52 22695003.52 11220840.10 11220840.10

(2) Change Condition of Important Engineering Projects under Construction in the Current Period

Other

Roll-in Fixed Decreased

Balance at Increased

Assets Amount Amounts Balance at End

Project Name Beginning of Amounts in the

in the Current in the of Period

Year Current Period

Period Current

Period

Production line of fried

2038825.391840509.663879335.05

potato chips

Slope treatment project

3584245.071660111.145244356.21

of No.3 plant

Walnut cake production

4234344.004500.004238844.00

line of No.2 plant

Konjac test facilities 364763.09 1422304.85 1787067.94

Soybean extruding and 1618517.50 1618517.50Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Other

Roll-in Fixed Decreased

Balance at Increased

Assets Amount Amounts Balance at End

Project Name Beginning of Amounts in the

in the Current in the of Period

Year Current Period

Period Current

Period

rumen soybean meal

processing project

Comprehensive bonded

zone feed processing

113207.545111474.275224681.81

project automation line

project

Total 10335385.09 11657417.42 3879335.05 18113467.46

15. Right-of-use asset

Transportation

Items Buildings Land Use Right In total

Equipment

One Original Book Value

1. Balance at Beginning

4423305.76202276.994970592.009596174.75

of Year

2. Increased Amounts in

536845.51536845.51

the Current Period

(1) Lease 536845.51 536845.51

3. Decreased Amounts in

108248.00108248.00

the Current Period

(1) Expiration of the lease

108248.00108248.00

or change the lease term

4. Balance at End of

4423305.76630874.504970592.0010024772.26

Period

Two Accumulated

Depreciation

1. Balance at Beginning

1337882.8399917.64112968.001550768.47

of Year

2. Increased Amounts in

1395904.5588029.04112968.001596901.59

the Current Period

(1) Accrual 1395904.55 88029.04 112968.00 1596901.59

3. Decreased Amounts in

91324.0091324.00

the Current Period

(1)Lease expiration or

91324.0091324.00

change

4. Balance at End of

2733787.3896622.68225936.003056346.06

Period

Three Impairment

Reserves

1. Balance at Beginning

of Year

2. Increased Amounts in

the Current Period

(1) Accrual

3. Decreased Amounts in

the Current Period

(1) DisposalHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Transportation

Items Buildings Land Use Right In total

Equipment

4. Balance at End of

Period

Four Book Value

1. Book Value at End of

1689518.38534251.824744656.006968426.20

Period

2. Book Value at

3085422.93102359.354857624.008045406.28

Beginning of Year

16. Intangible Assets

(1) Intangible Assets Situation

Trademark Others

Items Software Land Use Right In total

Right

One Original Book

Value

1. Balance at

4993743.75316407869.54154841200.00662400.00476905213.29

Beginning of Year

2. Increased Amounts

178530.09178530.09

in the Current Period

(1) Purchase 178530.09 178530.09

3. Decreased Amounts

268565.58662400.00930965.58

in the Current Period

(1) Disposal 268565.58 268565.58

(2)Write-off 662400.00 662400.00

4. Balance at End of

5172273.84316139303.96154841200.00476152777.80

Period

Two Accumulated

Amortization

1. Balance at

3882572.9268640464.9563749297.55136272335.42

Beginning of Year

2. Increased Amounts

294101.496941148.037713925.8614949175.38

in the Current Period

(1) Accrual 294101.49 6941148.03 7713925.86 14949175.38

3. Decreased Amounts

113617.34113617.34

in the Current Period

(1) Disposal 113617.34 113617.34

4. Balance at End of

4176674.4175467995.6471463223.41151107893.46

Period

Three Impairment

Reserves

1. Balance at

662400.00662400.00

Beginning of Year

2. Increased Amounts

in the Current Period

(1) Accrual

3. Decreased Amounts

662400.00662400.00

in the Current Period

(1) Disposal

(2)Write-off 662400.00 662400.00

4. Balance at End of

PeriodHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Trademark Others

Items Software Land Use Right In total

Right

Four Book Value

1. Book Value at End

995599.43240671308.3283377976.59325044884.34

of Period

2. Book Value at

1111170.83247767404.5991091902.45339970477.87

Beginning of Year

17. Goodwill

1. Original Book Value of Goodwill

Decrease in the

Name of Invested Balance at Increase in the Current Period

Current Period Balance at End of

Unit or Items Beginning of

Formed by Period

Forming Goodwill Year Others Disposal Others

Enterprise Merger

Acquire stock

shares of Zhejiang

191394422.51191394422.51

Xiaowangzi Food

Co. Ltd.In total 191394422.51 191394422.51

2. Relevant information about the group or groups of assets that include goodwill

Asset group or portfolio of asset groups

Book value of Main components Book value Determinatio Is there any

goodwill n method change in the

current period

Fixed assets intangible Income

191394422.51 752620949.71 No

assets etc method

Note: Taking December 31 2022 as the base date of evaluation Beijing Jingliang Food Co. Ltd.conducted impairment tests on the goodwill formed by the acquisition of the equity of Zhejiang Little Prince

Food Co. Ltd. The book value of the asset group including goodwill was 752.62 million yuan and the

recoverable amount was no less than 829.16 million yuan.The component of group or groups of assets: impairment test for goodwill related asset as group of

asset main cash in is independent from cash in of other group of assets this group of assets should be

consistent with the group of assets that was recognized in the impairment test of goodwill on acquisition date

and previous years.

3. Recognition method of goodwill impairment loss and process key assumptions and key

parameters of goodwill test

1) At the end of the period the company performed an impairment test on the asset group related to

goodwill. When performing an impairment test on a related asset group or asset group combination that

includes goodwill if there is an impairment of the asset group or asset group combination related to goodwill

If there are signs an impairment test is performed on the asset group or combination of asset groups that

does not include goodwill and the recoverable amount is calculated and compared with the book value to

confirm the corresponding impairment loss. Then perform an impairment test on the asset group or assetHainan Jingliang Holdings Co. Ltd. Annual Report 2022

group combination that includes goodwill and compare the book value of the asset group or asset group

combination that contains the distributed goodwill with its recoverable amount. If the relevant asset group

or asset group combination is recoverable The amount is lower than its book value and the impairment loss

of goodwill is recognized.

2) Important key assumptions adopted and their basis: 1. As for the actual situation of assets on the

evaluation base date it is assumed that the company continues to operate; 2. Assume that the cash inflows

rated as units after the evaluation base date are uniform inflows and cash outflows are uniform outflows;

3.On the basis of the existing management methods and management levels the company's business scope

and methods are consistent with the current direction; 4. There will be no major changes in the interest rates

exchange rates taxation benchmarks and tax rates and policy levy fees; 5. The management of the unit being

assessed is responsible stable and capable of performing its duties.

3）Key parameter

Revenue growth Revenue growth

Forecast Pre-tax

Item rate over the rate over the Profit margin

period discount rate

forecast period stable period

Zhejiang Little Calculated based on

Prince Food Co. 2023 to 2026 1.86% 0% forecasted revenue 16.29%

Ltd. costs expenses etc.

4. Impact of goodwill impairment test

After testing the company's goodwill formed by the acquisition of the operating asset group of

Zhejiang Little Prince Food Co. Ltd. is not impaired.

18. Long-term Unamortized Expenses

Increased

Balance at Amortized Other

Amounts in Balance at End

Items Beginning of Amounts in the Decreased

the Current of Period

Year Current Period Amounts

Period

Reconstruction of

14214132.05674188.0813539943.97

majuqiao plant

Amortization of

laboratory decoration 1811130.71 546236.69 126690.09 2230677.31

costs

Workshop renovation

579973.4363637.44516335.99

and decoration

Factory No.3

compartment 604558.74 604558.74

maintenance

Housing renovation 753996.91 104986.26 649010.65

Total 17383818.41 1126210.12 1574060.61 16935967.92

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

Deductible Deductible

Items Deferred Income Tax Deferred Income Tax

Temporary Temporary

Assets Assets

Difference Difference

Asset Impairment 44268191.18 11067047.80 560563.61 140140.91Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Reserves

Lease liabilities 167668.58 41917.15 196089.81 49022.46

Deductible Loss 1383480.84 345870.21

Credit impairment

3811842.32952960.581808563.08452140.67

Loss

Deferred Income 11824538.36 2956134.59 12097654.47 3024413.62

Wages payable 5677134.00 1419283.50 5677134.00 1419283.50

Valuation of Financial

Instruments and

211060.0052765.0033944248.108486062.03

Derivative Financial

Instruments

Rebate on contracts 3215300.44 803825.11

In total 70559215.72 17639803.94 54284253.07 13571063.19

(2)Details of Deferred Income Tax Liabilities Not Being Offset

Balance at End of Period Balance at Beginning of Year

Items Taxable TemporaryD eferred Income Tax Taxable Temporary Deferred Income Tax

Difference Liabilities Difference Liabilities

Valuation and

appreciation of assets

in merger of 144667350.88 36166837.72 154787977.45 38696994.37

enterprises not under

the same control

Valuation of Financial

Instruments and

Derivative Financial 54719042.81 13679760.70 26215702.16 6553925.54

Instruments

Use right assets 34449.15 8612.29

Total 199420842.84 49855210.71 181003679.61 45250919.91

(3)Details of Deferred Income Tax Liabilities after Offset

offset amount of Carrying amount after

Carrying amount after

Offset amount of deferred tax assets offsetting between

offsetting between

Items deferred tax assets and liabilities at deferred tax assets and

deferred tax assets and

and liabilities the end of last liabilitie at the end of

liabilities

period last period

Deferred tax asset 3450040.01 14189763.93 13571063.19

Deferred tax

3450040.0146405170.7045250919.91

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 200597.85

Deductible Loss 160184970.56 107793038.93

In total 160184970.56 107993636.78

(5)Deductible loss on deferred income tax assets not being confirmed will be due at the following

years

Balance at End of

Year Balance at Beginning of Year Notes

Period

20224021787.39

20239688448.8119123515.53

2024 47153825.45 47153825.45Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Balance at End of

Year Balance at Beginning of Year Notes

Period

202525114592.0525114592.05

202612221704.2612379318.51

202766006399.99

Total 160184970.56 107793038.93

20. Other Non-current Assets

Ending Balance Beginning Balance

Items Provision Provision

Book balance for Book value Book balance for Book value

impairment impairment

Three-

year

53544782.3453544782.34189741996.74189741996.74

term

deposit

Total 53544782.34 53544782.34 189741996.74 189741996.74

21. Short-term Borrowings

1.Classification of Short-term Borrowings

Items Balance at End of Period Balance at Beginning of Year

Guaranteed Loan 23262063.93

Fiduciary Loan 1260543148.81 1498407537.42

In total 1260543148.81 1521669601.35

22. Derivative financial liability

Item Ending balance Beginning balance

Changes in fair value of hedging instruments 111373155.00 70305871.37

Total 111373155.00 70305871.37

23. Notes payable

Items Balance at End of Period Balance at Beginning of Year

Banker's acceptance 3331333.80

In total 3331333.80

24. Accounts Payable

1. Accounts Payable Listed

Items Balance at End of Period Balance at Beginning of Year

Material Funds Payable 99975435.40 176725835.45

Project Funds Payable 8989252.43 7291515.18

Equipment Funds Payable 765432.60 1746573.40

Others 1181756.78 984822.39

In total 110911877.21 186748746.42

25. Advance payment

1. Advance payment ListedHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Items Balance at End of Period Balance at Beginning of Year

Advance collection of rent 922982.41 996173.41

In total 922982.41 996173.41

26. Contract liabilities

1. Classification of contract liabilities

Items Balance at End of Period Balance at Beginning of Year

Loans 285555581.80 520816995.93

In total 285555581.80 520816995.93

27. Wages Payable

1.List of Wages Payable

Balance at

Increase in the Decrease in the Balance at End of

Items Beginning of

Current Period Current Period Period

Year

Short-term Compensation 40757672.48 325933902.86 324471120.97 42220454.37

After-service Welfare- Set up

1372978.0133710293.1833374964.801708306.39

ESP liabilities

Dismission Welfare 548018.27 548018.27

In total 42130650.49 360192214.31 358394104.04 43928760.76

2.List of Short-term Compensation

Balance at

Increase in the Decrease in the Balance at End of

Items Beginning of

Current Period Current Period Period

Year

1. Wage Bonus Allowance and

36829352.40276915211.10275625126.0438119437.46

Subsidy

2. Welfare Expense of Employee 20.00 7631838.31 7624938.31 6920.00

3. Social Insurance Expense 867037.88 19740023.85 19774278.23 832783.50

Among them: Medical Insurance

766979.6218057299.3318073987.28750291.67

Premiums

Industrial Injury Insurance

65373.411210260.231209421.6666211.98

Premiums

Birth Insurance Premiums 34684.85 320462.93 338867.93 16279.85

Others 152001.36 152001.36

4. Housing Provident Funds 129165.23 16047776.66 16030347.40 146594.49

5. Labor Union Expense and

2932096.975599052.945416430.993114718.92

Personnel Education Fund

In total 40757672.48 325933902.86 324471120.97 42220454.37

3.List of Stated Drawings Plan

Balance at

Increase in the Decrease in the Balance at End of

Items Beginning of

Current Period Current Period Period

Year

1. Basic Pension Insurance 1281915.76 29242321.17 28907287.00 1616949.93

2. Unemployment Insurance

44475.16963409.54964946.9542937.75

Expense

3. Enterprise Annuity Charges 46587.09 3504562.47 3502730.85 48418.71

Total 1372978.01 33710293.18 33374964.80 1708306.39Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

28. Taxes and Fees Payable

Balance at Beginning of

Items Balance at End of Period

Year

Corporate Income Tax 39893369.93 74174903.15

VAT 18489749.05 23320246.23

Urban Maintenance and Construction Tax 1352280.58 1876669.91

House Property Tax 2316064.99 2302350.63

Land Use Tax 150746.89 176087.89

Individual Income Tax 2331343.41 671107.90

Educational Surtax 542273.76 760843.86

Local Educational Surtax 413658.90 559372.28

Stamp Tax 1135833.99 500830.44

Environmental protection tax 3732.68 5193.36

Water conservancy construction fee 247.04

In total 66629054.18 104347852.69

29. Other Accounts Payable

1. Overview

(1)Classification

Balance at Beginning of

Items Balance at End of Period

Year

Interest Payable 21082795.47 21082795.47

Dividends Payable 3213302.88 3213302.88

Other Accounts Payable 59703587.21 49689488.04

In total 83999685.56 73985586.39

2.Interest Payable

(1)Classification

Items Balance at End of Period Balance at Beginning of Year

Loan Interest between Enterprises 21082795.47 21082795.47

In total 21082795.47 21082795.47

3.Dividends Payable

(1)Classification

Items Balance at End of Period Balance at Beginning of Year

Common stock dividends

Others 3213302.88 3213302.88

In total 3213302.88 3213302.88

4.Other Accounts Payable

(1)List of Other Accounts Payable by Nature of Funds

Items Balance at End of Period Balance at Beginning of Year

Guaranteed Deposit and Deposit 18847429.40 25053238.93

Intercourse Funds between Units 27733578.06 9931464.29

Intercourse Funds of Related Parties 3070641.51 5722550.45

Personal Intercourse Funds 3829316.55 4032688.22

Various Insurances of Employee 2507094.75 2768202.89

Others 3715526.94 2181343.26

In total 59703587.21 49689488.04Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

30. Non-current liabilities due within one year

Item End balance Beginning balance

Current portion of lease liability 1432706.14 1582978.69

Total 1432706.14 1582978.69

31. Other current liability

1.Other current liability statement

Item End balance Beginning balance

Value-added tax to be written off 56184255.30 22994553.60

Total 56184255.30 22994553.60

32. Long term borrowing

Item End balance Beginning balance Interest Rate

Guaranteed Loan 500284166.67 71000000.00 2.40%；3.51%

Total 500284166.67 71000000.00

33. Lease liability

Item End balance Beginning balance

Lease liability 704390.98 1694702.62

34. Long term wage payable

1.List of long-term wage payable

Items Balance at End of Period Balance at Beginning of Year

Net liabilities of defined benefit

plan in post employment benefits

Dismission Welfare

Other Long-term Welfare 5677134.00 5677134.00

In total 5677134.00 5677134.00

35. Deferred Income

Balance at Increase in Decrease in

Balance at

Items Beginning of the Current the Current Cause of Formation

End of Period

Year Period Period

Government Subsidy 65244499.48 2626900.00 3320482.12 64550917.36

In total 65244499.48 2626900.00 3320482.12 64550917.36

Among them items involving government subsidy are as follows:

Asset

Balance at Increase in

Items Receiving Charge to Other Balance at related /

Beginning of the Current

Subsidy other Profits changes End of Period income

Year Period

related

Enterprise foundation

supporting in the

construction stage of

Asset

"Tianjin Lingang 48651619.45 1277504.16 47374115.29

related

Industrial Zone

Management

Committee"

Special subsidy for

Asset

infrastructure 9387794.81 867756.91 8520037.90

related

investment

The relocation Asset

3847638.14384763.823462874.32

compensation relatedHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Asset

Balance at Increase in

Items Receiving Charge to Other Balance at related /

Beginning of the Current

Subsidy other Profits changes End of Period income

Year Period

related

Subsidized by Beijing

Municipal Food and

Strategic Reserves

Asset

Bureau for "Tank 2626900.00 104242.06 2522657.94

related

Expansion and

Winterization

Renovation Project

Tianjin Binhai New

District’s Industrially

Technical Renovation

and Park Construction Asset

1870370.21222222.241648147.97

Funds as well as related

Expenditures for

Science and

Technology

Key technology

research and

industrialization Asset

700549.4077838.84622710.56

project of "moderate related

processing" of grain

and oil

Construction of

provincial grain

reserve information Asset

433059.98200686.32232373.66

management system to related

form asset entry

project

Design of electric

Asset

heating system for oil 223999.76 56000.04 167999.72

related

tank

Special subsidies for

Beijing Reserve Asset

129467.73129467.73

Granary Facility related

Maintenance

In total 65244499.48 2626900.00 3191014.39 129467.73 64550917.36

36. Share Capital

Balance at

Changes in the Current Period（+、-）

End of Period

Balance at

Items Beginning of Share New Share

Year Transfer of Share Donati Others Sub-total

Provident

Issue on

Fund

1. Shares with

Restricted 42459387.00 -1299500.00 -1299500.00 41159887.00

Conditions

(1) State

Shareholding

(2) State-

owned Legal-

149500.00-149500.00-149500.00

person

ShareholdingHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Balance at

Changes in the Current Period（+、-）

End of Period

Balance at

Items Beginning of Share New Share

Year Transfer of Share Donati Others Sub-total

Provident

Issue on

Fund

(3) Other

Domestic

42309887.00-1150000.00-1150000.0041159887.00

Capital

Shareholding

Including:

Domestic

1150000.00-1150000.00-1150000.00

Legal-person

Shareholding

Domestic

Natural Person 41159887.00 41159887.00

Shareholding

(4) Foreign

Shareholding

Including:

Foreign Legal-

person

Shareholding

Foreign

Natural Person

Shareholding

2. Tradable

Shares without

684490864.001299500.001299500.00685790364.00

Restricted

Conditions

(1) RMB

Ordinary 619515864.00 1299500.00 1299500.00 620815364.00

Shares

(2)

Domestically

64975000.0064975000.00

Listed Foreign

Shares

(3) Listed

Foreign Shares

Overseas

(4) Others

In total 726950251.00 726950251.00

37. 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 Premium) 1322887986.38 1322887986.38

Capital Reserves Roll-in Under

112316357.36112316357.36

Original System

Other Capital Reserves 240714007.21 2760000.00 243474007.21

In total 1675918350.95 2760000.00 1678678350.95

Note: The increase of capital reserve was due to the funds received from the parent company Beijing

Capital Agriculture Group for technology projects of RMB2.76 million.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

38. Other Comprehensive Incomes

Amounts Occurred in the Current Period

Less: included in

Less: Other

Amounts other comprehensive

Comprehensive Less: Attributable to Attributable to

Balance at Occurred income in the Balance at

Items Incomes Charged at Income Parent Minority

Beginning before Income previous period and End of

Earlier Stage and Tax Company Shareholders

of Year Tax in the transferred to Period

Current Roll-in Expense After Tax After Tax

Current Period retained income in

Profit and Loss

the current period

One Other

comprehensive

incomes that won’t

be classified into

profit and loss

1. Remeasure and

set the change

amount of benefit

plan

2. Other

comprehensive

income that cannot

be transferred to

profits and losses

under the equity

method

3. Changes in the

fair value of other

equity instrument

investments

4. Changes in fair

value of the

enterprise's own

credit riskHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Two Other

comprehensive

incomes that will -682282.22 1688002.72 1688002.72 1005720.50

be classified into

profit and loss

1. Other

comprehensive

income transferable

-460842.50460842.50460842.50

to profit and loss

under the equity

method

2. Changes in the

fair value of other

debt investments

3. Amount of

financial assets

reclassified into

other

comprehensive

income

4. Provision for

credit impairment

of other debt

investment

5. Effective part of

cash flow hedging

6. Converted

difference between

-221439.721227160.221227160.221005720.50

foreign currency

financial statements

Total -682282.22 1688002.72 1688002.72 1005720.50Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

39. Surplus Reserves

Balance at Increase in the Decrease in the

Items Balance at End of Period

Beginning of Year Current Period Current Period

Statutory

Surplus 84487609.05 84487609.05

Reserves

Free Surplus

37634827.9337634827.93

Reserves

In total 122122436.98 122122436.98

40. Undistributed Profit

Amounts in the Current Amounts in the Prior

Items

Period Period

Adjustment on undistributed profit at end of last year 391493534.34 187033763.26

Adjustment on total number of undistributed profit at

beginning of period (increase+ and decrease-)

Adjusted undistributed profit at beginning of period 391493534.34 187033763.26

Add: net profit attributable to parent company in the

141411141.28204459771.08

current period

Less: withdrawal legal surplus reserves

Withdrawal free surplus reserves

Withdrawal general risk reserves

Ordinary stock dividends payable

Ordinary stock dividends transferred to capital

Undistributed profit at end of period 532904675.62 391493534.34

41. Operation Revenue and Operation Cost

1.Operation Revenue and Operation Cost

Amounts in the Current Period Amounts in the Prior Period

Items

Revenue Cost Revenue Cost

Prime Business 12814528584.23 12224032469.41 11728067785.65 11016949345.82

Other Business 43345717.49 13538869.90 35026049.91 20205123.68

In total 12857874301.72 12237571339.31 11763093835.56 11037154469.50

2.Prime Business (Industry and Business-classified)

Name of Industry (or Amounts in the Current Period Amounts in the Prior Period

Business) Revenue Cost Revenue Cost

Oil and Oil Seeds 11857382115.06 11472403697.44 10791474243.86 10317711108.68

Food Processing 929325889.95 726226631.28 920002290.84 694188764.74

Others 27820579.22 25402140.69 16591250.95 5049472.40

In total 12814528584.23 12224032469.41 11728067785.65 11016949345.82

3. Prime Business (Region-classified)

Amounts in the Current Period Amounts in the Prior Period

Name of Region

Revenue Cost Revenue Cost

North China 11243581219.52 10865636507.46 10123343396.24 9651908242.01

East China 708145491.41 548423074.04 686657679.09 512187178.67

Northeast China 144611739.42 117785852.01 137074930.91 111781498.62

South East 718190133.88 692187035.90 780991779.41 741072426.52

In total 12814528584.23 12224032469.41 11728067785.65 11016949345.82

42. Tariff And AnnexHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Items Amounts in the Current Period Amounts in the Prior Period

Urban Maintenance and Construction

8392378.688123144.87

Tax

Educational Surtax 3624619.60 3533840.85

Local Educational Surtax 2416413.04 2355895.48

House Property tax 7348144.90 5496760.45

Land Use Tax 1257836.62 247528.32

Stamp Tax 7306545.73 3952317.43

Vehicle and Vessel Use Tax 45180.14 40100.87

Other Taxes and Fees 94011.04 39411.60

In total 30485129.75 23788999.87

43. Sales Expenses

Amounts in the Amounts in the

Items

Current Period Prior Period

Employee Compensation (including social security etc) 74865384.05 77384564.22

Warehousing Fees 25934599.40 11180870.38

Depreciation 15817872.17 13626528.80

Sales Promotion Expenses 15397370.72 24192308.99

Operation Expenses 13233177.70 3122152.06

Travel Expenses 5280805.02 6561854.51

Lease fee 3070223.37 2000200.72

Repair Costs 1987578.98 1600732.45

Terminal Charges 1724015.11 1123800.00

Water and Electricity Fees 1378704.72 1225185.96

Material consumption sample and product cost 1153510.24 2171906.30

Commodity Wastage 775915.68 116599.55

Vehicle Fees 682797.65 992762.32

Commercial Insurance Expenses 289252.25 14344.90

Test and Detection Fees 177247.52 226300.00

Packing Expenses 109762.53 300227.81

Business Entertainment Expenses 24672.00 212052.40

Labor Protection Fees 139738.67 185886.35

Others 1888072.26 1077840.52

Total 163930700.04 147316118.24

44. Administration Expenses

Amounts in the Amounts in the

Items

Current Period Prior Period

Employee Compensation (including social security etc) 138464028.57 121587427.82

Impairment Costs 18159768.04 18237865.60

Amortization of Assets 15771966.91 15563814.96

Fees of Employing Agent 8709204.04 13163766.91

Company Expenses 7631234.58 7442124.18

Repair Costs 3334959.13 3259784.08

Lease fee 3882289.68 3039488.99

Vehicle Fees 2145027.56 2675743.19

Security Protection Fees 1242530.60 1469824.47

Information Network Fees 1229220.31 1312483.04

Environmental Protection Fees 1257895.61 1304184.21

Business Entertainment Expenses 665034.02 1089431.81

Commercial Insurance Expenses 1008045.58 995916.41

Workers Insurance Expenses 951043.23 956937.28

Travel Expenses 513023.38 713609.91

Material Consumption 602254.49 616035.77Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Amounts in the Amounts in the

Items

Current Period Prior Period

Labor Protection Fees 468689.86 489960.00

Taxes in Expenses 283703.44 222145.86

Other Expenses 3286845.39 4627347.70

In total 209606764.42 198767892.19

45. Research and Development Expenses

Items Amounts in the Current Period Amounts in the Prior Period

Salary 9938209.22 8705588.81

Material consumption 3195077.96 2434367.21

Design expense 566037.72 391188.30

Transportation Expense 35350.00 35559.99

Others 656689.27 483243.65

In total 14391364.17 12049947.96

46. Financial Expenses

Items Amounts in the Current Period Amounts in the Prior Period

Interest Expenses 46001727.19 42302007.06

Less: Interest Income 26078234.77 26216178.46

Exchange Profit and Loss 1135096.75 82807.14

Service Charges 4573991.30 4954473.93

In total 25632580.47 21123109.67

47. Other Profits

Amounts in the Amounts in the

Items

Current Period Prior Period

Government Subsidy Related to Daily Corporate Activities 15640947.01 13801864.25

Return of Service Charges of Withholding Individual Income Tax 140778.62 642939.07

Refund of VAT and surtax 90280.00

In total 15781725.63 14535083.32

48. Investment Income

Amounts in the Current Amounts in the

Items

Period Prior Period

Long-term equity investment income accounted with equity

12293636.9537822580.24

method

Investment income from disposal of wealth management

5161567.20

products

Investment income of disposing trading financial asssets 267083.33 672498.85

Investment income obtained during the holding of

751411.16387257.58

transactional financial assets

Others -9059.80 -4126.16

In total 13303071.64 44039777.71

49. 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

Financial assets that are measured as per fair value and for

which the changes are included in the current profit and 61032222.12 -66667420.88

loss

Including: income with changes in fair value generated by

61032222.12-66667420.88

derivative financial instruments

Trading financial liabilities

Investment real estate measured by fair value

In total 61032222.12 -66667420.88Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

50. Credit impairment loss

Amounts in the Amounts in the Prior

Items

Current Period Period

Accounts receivable bad debt loss -2012156.44 -445289.20

Other receivables bad debt loss 7500.00 -94234.26

Total -2004656.44 -539523.46

51. Loss from Asset Devaluation

Items Amounts in the Current Period Amounts in the Prior Period

Loss on Bad Debts

Loss on Inventory Price Drop -43736036.29 -306388.07

In total -43736036.29 -306388.07

52. Assets Disposal Income

Amounts in the Current Amounts in the Prior

Items

Period Period

Gains or losses on disposal of fixed assets 466027.43 -208369.12

In total 466027.43 -208369.12

53. Non-operating Income

1.Classification

Amounts

Amounts in the Amounts in the Charged to Non-

Items

Current Period Prior Period recurring Profit

and Loss

Total non current assets retirement gains: 2057.52 72098.18 2057.52

Including: fixed assets scrap profit 2057.52 72098.18 2057.52

profit from scrap of intangible assets

Penalty income 4251520.44 994966.56 4251520.44

Payable amounts not required to be paid 487200.03 487265.26 487200.03

Government Subsidy 4502.00 174221.00 4502.00

Relocation Compensation 98462.04 144789.85 98462.04

Other Gains 512488.91 194032.35 512488.91

In total 5356230.94 2067373.20 5356230.94

2.Government Subsidy Charged to Non-recurring Profit and Loss

Amounts in the Amounts in the Asset related /

Subsidy projects

Current Period Prior Period income related

Relocation Compensation 119121.00 Income related

Incentive Funds 45100.00 Income related

Special subsidies for the activities of "two new" Income related

10000.00

organisations

Party fee of Jinnan Street Working Committee Income related

4502.00

Party construction signage production fee

Total 4502.00 174221.00 -

54. Non-operating Expenses

Amounts

Amounts in the Amounts in the Charged to Non-

Items

Current Period Prior Period recurring Profit

and Loss

Total loss on scrap of non current assets 114754.83 157143.75 114754.83

Including: loss on scrap of fixed assets 114754.83 157143.75 114754.83

Penalty expenditure 24500.00Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Amounts

Amounts in the Amounts in the Charged to Non-

Items

Current Period Prior Period recurring Profit

and Loss

Others 1017600.52 146997.54 1017600.52

Total 1132355.35 328641.29 1132355.35

55. Income Tax Expenses

(1) List of Income Tax Expenses

Amounts in the Prior Amounts in the Current

Amounts in the Current Period

Period Period

Income Tax Expenses of the Current Period 59796486.70 106340597.83

Deferred Income Tax Expenses 1274800.56 -30089130.23

Total 61071287.26 76251467.60

(2)Accounting Profit and Income Tax Expense Adjustment Process

Items Amounts in the Current Amounts in the Prior

Period Period

Total Profits 225322653.24 315485189.54

Income tax expenses calculated by

56330663.3178871297.39

statutory/applicable tax rate

Effect of subsidiary corporations being applicable

104073.45-1844755.24

to different tax rates

Adjustment on effect of income tax in the prior

-224302.582489564.19

period

Effect of Non-taxable Incomes -1455172.84 -5760010.74

Effect of Non-deductible cost expense and loss -628063.16 -879902.43

Effect of deductible loss on usage of unconfirmed

-4808099.36-5363511.97

deferred income tax assets in the prior period

Effect of deductible temporary difference or

deductible loss on unconfirmed deferred income 15394079.34 9498499.81

tax in the current period

Effect of deductions -3641890.90 -795213.37

Others 35499.96

Income Tax Expenses 61071287.26 76251467.60

56. Other comprehensive income items and their income tax impact and transferred to profit

and loss

See details of ‘Appendix Six Notes on Items in Consolidated Financial Statements 38 Other

Comprehensive Incomes’

57. Notes to items related cash flow statement

(1) Receiving other cash related to operation activities

Amounts in the Amounts in the Prior

Items

Current Period Period

Future Margins 1820481225.64 1459292560.77

Intercourse Funds of Other Units 534241370.31 106778161.58

Interest Income 26078234.77 17053537.35

Intercourse Funds of Related Parties 3821301.49 3304968.87

Non-operating Income and other income 10776175.29 4106124.86

Others 2634069.26 3238949.73

Total 2398032376.76 1593774303.16

(2) Other Cash Payment Related to Operation ActivitiesHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Amounts in the Amounts in the Prior

Items

Current Period Period

Future Margins 2497012200.80 1594071648.75

Payment for Administration Expenses 36287576.64 43378783.81

Intercourse Funds of Other Units 738586568.78 13893169.13

Payment for Operating Expenses 59884525.22 56305025.22

Intercourse Funds of Related Parties 3542441.19 7669514.72

Bank Charges 4573991.30 4879506.88

Petty Cash Paid 198860.83

Non-operating Expenses 319994.72 90694.64

Others 7399437.03 6689174.26

In total 3347606735.68 1727176378.24

(3) Other cash received related to financing activities

Amounts in the Amounts in the Prior

Items

Current Period Period

Subsidies related to R&D from Beijing Capital

2760000.001090000.00

Agriculture Group

In total 2760000.00 1090000.00

(4) Other cash paid related to financing activities

Amounts in the Amounts in the Prior

Items

Current Period Period

Lease payment amount 1238815.56 937516.52

In total 1238815.56 937516.52

58. 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 164251365.98 239233721.94

Add: Assets Impairment Reserves 43736036.29 306388.07

Credit impairment loss 2004656.44 539523.46

Fixed Assets Depreciation Oil-and-gas Assets

Depreciation and Productive Biological Assets 101992898.00 98490827.18

Depreciation

Amortization of Intangible Assets 14949175.38 14810005.45

Amortization of Long-term Deferred Expenses 1574060.61 798985.59

Losses on Disposal of Fixed Assets Intangible Assets and

－ -311079.19 208369.12 Other Long-term Assets (Fill in profit with symbol “ ”)

Losses on Retirement of Fixed Assets (Fill in profit with

－ 112697.31 85045.57 symbol “ ”)

Losses on Changes in Fair Value (Fill in profit with

－ -61032222.12 66667420.88 symbol “ ”)

Financial Expenses (Fill in profit with symbol “－”) 46001727.19 42302007.06

Investment Losses (Fill in profit with symbol “－”) -13303071.64 -44039777.71

Decrease in Deferred Income Tax Assets (Fill in increase

with symbol “－ -618700.74 -10224248.92 ”)

Increase in Deferred Income Tax Reliabilities (Fill in

－ 1154250.79 -19864881.31 decrease with symbol “ ”)

Decrease in Inventory (Fill in increase with symbol “－”) -214308147.68 -682307723.74

Decrease in Items of Operating Receivables (Fill in

-261629758.95461225511.97

increase with symbol “－”)Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Amounts in the Amounts in the

Supplementary Materials

Current Period Prior Period

Increase in Items of Operating Receivables (Fill in

－ -357804834.70 464008881.83 decrease with symbol “ ”)

Others

Net Cash Flows from Operating Activities -533230947.03 632240056.44

2. Major investment and financing activities that do

not involve cash payments

Conversion of Debt into Capital

Convertible Bonds Due Within One Year

Fixed Assets under Financing Lease

3. Net change conditions in cash and cash equivalents

Cash balance at end of period 551439110.07 506928810.69

Less: cash balance at beginning of period 506928810.69 334389017.41

Add: balance of the cash equivalents at end of period

Less: balance of the cash equivalents at beginning of

period

Cash and cash equivalent net increase quota 44510299.38 172539793.28

(2) Composition of cash and cash equivalents

Balance at End of Balance at Beginning

Items

Period of Period

One Cash 551439110.07 506928810.69

Including: cash in stock 10693.10 15012.17

Bank deposit available for payment at any time 531515415.66 465650779.09

Other currency funds available for payment at any time 19913001.31 41263019.43

Deposits with central bank available for payment

Interbank deposit

Interbank placements

Two Cash Equivalents

Including: bond investment maturing within three months

Three Balance of Cash and Cash Equivalents at End of

551439110.07506928810.69

Period

Including: restricted cash and cash equivalents used by

parent company or intra-group affiliates

59. Assets with restricted ownership or right to use

Items Book Value at End of Period Reasons being Restricted

Currency Funds 9573999.69 use restriction

Investment Real Estate 5539676.69 Litigation Freeze

Fixed Assets 5408424.76 Litigation Freeze

In total 20522101.14

60. Monetary Items of Foreign Currency

(1) Monetary Items of Foreign Currency

Balance of Foreign

Balance of Converting to

Items Currency at End of Exchange Rate Convert

RMB at End of Period

Period

Monetary fund 3744396.83 6.9646 26078226.16

Including: US Dollars 3744396.83 6.9646 26078226.16

Short-term borrowing 30000000.00 6.9646 208938000.00

Including: US Dollars 30000000.00 6.9646 208938000.00

(2) Instruction of Operational Entity Overseas

The registrant and operating unit of the Company is Beijing Grain (Singapore) International Trade

Co. Ltd. with main business place of Singapore and recording currency of US Dollars.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

61. Hedging items and related hedging instruments

Please refer to 22. Derivative financial liability under Section VI of the Notes.

62. Government Subsidies

（1）Basic conditions of government grants

Amount recorded in

Type Amount Presentation item

profit and loss

VAT refunds 8038527.08 Other income 8038527.08

Special subsidy funds for infrastructure Deferred

support fees 63130000.00 income、Other 1277504.16

income

Special subsidy for infrastructure input 18176788.00 Deferred income 867756.91

Lin'an Economic Information Bureau

840000.00 Other income 840000.00

technical transformation subsidy

One-off training allowance for workers 678600.00 Other income 678600.00

Subsidy for job stabilization 720380.96 Other income 720380.96

Tianjin Port Free Trade Zone

Development and Reform Bureau 2020

522000.00 Other income 522000.00

the first to fourth batch of Tianjin special

fund for energy conservation

Lin 'an employment management

403625.43 Other income 403625.43

unemployment compensation

Compensation for demolition and Deferred

relocation 7695276.34 income、Other 384763.82

income

Tianjin Binhai New Area industrial

Deferred

technological transformation and park

4000000.00 income、Other 222222.24

construction funds and science and

income

technology expenditure

Provincial grain reserve information Deferred

management system construction 633746.30 income、Other 200686.32

income

Subsidy for the operation of the home for

339186.70 Other income 339186.70

the disabled

Training subsidies 180000.00 Other income 180000.00

Absorb the VAT credit for the employment

162000.00 Other income 162000.00

of ex-soldiers

Economic and Information Bureau Project

150000.00 Other income 150000.00

Subsidy

Beijing Municipal Food and Material

Deferred

Reserve Bureau "Oil Tank Expansion and

2626900.00 income、Other 104242.06

Winter Transformation Project" subsidy

income

fund

Transfer training subsidies 87000.00 Other income 87000.00

Tianjin Port Free Trade Zone Finance

Bureau Intelligent Manufacturing Special 80000.00 Other income 80000.00

Fund (municipal part)

Oil and fat enzymatic moderate refining Deferred

sets of equipment 1089743.60 income、Other 77838.84

income

Research and technology demonstration of

green and clean production equipment and 70040.65 Other income 70040.65

technology of edible oil

Green cleaning and oil tank electric 855179.48 Deferred 56000.04Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Amount recorded in

Type Amount Presentation item

profit and loss

heating income、Other

income

Tianjin Port Free Trade Zone Finance

Bureau Intelligent Manufacturing Special 50000.00 Other income 50000.00

Fund (district-level part)

Security work funds 25000.00 Other income 25000.00

The first batch of municipal special funds

for intelligent manufacturing in 2021 by

20000.00 Other income 20000.00

the Finance Bureau of Tianjin Port Free

Trade Zone

The top ten tax payers in 2021 20000.00 Other income 20000.00

Logistics subsidies for industrial

15359.00 Other income 15359.00

enterprises under the financial pull-out

Subsidies for building a food security

15000.00 Other income 15000.00

system in 2021

Food emergency fund 15000.00 Other income 15000.00

The disabled employment subsidy 12060.00 Other income 12060.00

CPC Jinnan Street Working Committee

Non-operating

Party construction sign production fee 4502.00 4502.00

income

subsidy

Allocate funds for employment assistance 3000.00 Other income 3000.00

Lin 'an District employment

1500.00 Other income 1500.00

administration employment subsidy

“Xiaoshushuo” packaging patent subsid 1000.00 Other income 1000.00

Tianjin Binhai New Area Development

and Reform Commission market 652.80 Other income 652.80

monitoring information fee

In total 110662068.34 15645449.01

VII. Change in Consolidation Scope

During this reporting period the company newly invested and established Jingliang (Beijing) Food

Marketing Management Co. Ltd. and cancelled Jingliang Rural Complex Construction and Operations

(Xinyi) Co. Ltd.. A total of 18 subsidiaries of the Company were included in the scope of consolidation

on 31 December 2022

VIII. Equities in Other Entities

1. Equities in Subsidiaries

(1) Composition of the Company

Shareholding Voting

Principle

Name of Registered Nature of Ratio (%) rights Mode of

Place of

Subsidiary Place Business ratio Acquisition

Business Direct Indirect

(%)

Beijing Merger under

Investment

Jingliang Food Beijing Beijing 100 100 the same

management

Co. Ltd. control

Jingliang

Agricultural

(Tianjin) Grain Merger under

Product and

and Oil Tianjin Tianjin 70 70 the same

By Product

Industry Co. control

Processing

Ltd.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Shareholding Voting

Principle

Name of Registered Nature of Ratio (%) rights Mode of

Place of

Subsidiary Place Business ratio Acquisition

Business Direct Indirect

(%)

Beijing

Merger under

Jingliang Oil Grain and oil

Beijing Beijing 100.00 100.00 the same

and Fat Co. trade

control

Ltd.Jingliang Agricultural

Merger under

(Hebei) Oil Product and

Hebei Hebei 51.00 51.00 the same

Industry Co. By Product

control

Ltd. Processing

Beijing Merger under

Grain and oil

Guchuan Edible Beijing Beijing 100.00 100.00 the same

trade

Oil Co. Ltd. control

Agricultural

Beijing Eisen- Merger under

Product and

Lubao Oil Co. Beijing Beijing 100.00 100.00 the same

By Product

Ltd. control

Processing

Beijing

Merger under

Tianweikang

Beijing Beijing Warehousing 100.00 100.00 the same

Oil Distribution

control

Center Co. Ltd.Beijing Merger under

Food

Guchuan Bread Beijing Beijing 100.00 100.00 the same

Processing

Food Co. Ltd. control

Zhejiang Xiao Combination

Food

Wang Zi Food Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under

Processing

Co. Ltd. same control

Hangzhou

Combination

Lin'an Food

Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under

Xiaotianshi Processing

same control

Food Co. Ltd.Liaoning Xiao Combination

Food

Wang Zi Food Liaoning Liaoning 17.6794 77.2072 94.8866 not under

Processing

Co. Ltd. same control

Linqing Xiao Combination

Food

Wang Zi Food Linqing Linqing 17.6794 77.2072 94.8866 not under

Processing

Co. Ltd. same control

Lin'an

Chunmanyuan Combination

Food

Agricultural Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under

Processing

Development same control

Co. Ltd.Jingliang

(Singapore) Establishment

Singapore Singapore Grain trade 100.00 100.00

International by investment

Trade Co. Ltd.Jingliang Rural

Complex

Construction Land Establishment

Xinyi Xinyi 51.00 51.00

and Operations remediation by investment

(Xinyi) Co.Ltd.Jingliang

(Caofeidian)

Establishment

Agricultural Tangshan Tangshan Plantation 51.00 51.00

by investment

Development

Co. Ltd.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Shareholding Voting

Principle

Name of Registered Nature of Ratio (%) rights Mode of

Place of

Subsidiary Place Business ratio Acquisition

Business Direct Indirect

(%)

Beijing

jingliang gubi Grain and oil Establishment

Beijing Beijing 100 100

oil and grease trade by investment

co. LTD

Jingliang

(Yueyang)

Agricultural Establishment

Grain and Oil Hunan Hunan 65.00 65.00

products by investment

Industry Co.Ltd.Jingliang

(Beijing) Food

Commercial 100.00 Establishment

Marketing Beijing Beijing 100.00

services by investment

Management

Co. Ltd

Note:Jingliang Rural Complex Construction and Operations (Xinyi) Co. Ltd has been cancelled during

this reporting period.

(2)Major non-wholly-owned subsidiaries

Profit And Loss Dividends Balance of

Shareholding Voting rights

Attributable to Distributed to Minority

Ratio of ratio of

Name of Minority Minority Shareholder's

Minority Minority

Subsidiary Shareholders Shareholders Equity at the

Shareholders Shareholders

for the Current for the Current End of the

(%)(%)

Period Period Period

Zhejiang Xiao

Wang Zi Food 5.1134 5.1134 4725053.79 5113400.00 52252502.68

Co. Ltd.Jingliang

(Tianjin)

Grain and Oil 30 30 17397621.09 284008095.75

Industry Co.Ltd.Jingliang

(Hebei) Oil

49491221358.632430400.0037740640.31

Industry Co.Ltd.Jingliang

(Caofeidian)

Agricultural 49 49 -1253708.09 26623337.13

Development

Co. Ltd.

(3) Important financial information on major non-wholly-owned subsidiaries

Ending balance or Amount incurred in the current period

Jingliang

Zhejiang Xiao Jingliang (Tianjin) Jingliang (Hebei) (Caofeidian)

Items

Wang Zi Food Co. Grain and Oil Oil Industry Co. Agricultural

Ltd. Industry Co. Ltd. Ltd. Development Co.Ltd.Current Assets 694319525.47 1765160961.33 300661982.97 52730171.41

Non-current

344517064.82729047006.2678258110.596473916.95

Assets

Total Assets 1038836590.29 2494207967.59 378920093.56 59204088.36

Current 154188477.46 1184852881.71 301666004.97 4870747.28Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Ending balance or Amount incurred in the current period

Jingliang

Zhejiang Xiao Jingliang (Tianjin) Jingliang (Hebei) (Caofeidian)

Items

Wang Zi Food Co. Grain and Oil Oil Industry Co. Agricultural

Ltd. Industry Co. Ltd. Ltd. Development Co.Ltd.Liabilities

Non-current

17660046.22362661433.41232373.66

Liabilities

Total Liabilities 171848523.68 1547514315.12 301898378.63 4870747.28

Operating

856340284.626622948465.03477411579.822805.00

Income

Net Profit (Loss) 102525949.60 57992070.30 2492568.63 -2558587.94

Total

Comprehensive 102525949.60 57992070.30 2492568.63 -2558587.94

Income

Cash Flow from

Operating 17184906.38 -838336853.05 -13671746.40 -4948561.32

Activities

(Continued)

Beginning balance or Amount incurred in the prior period

Jingliang

Jingliang

Zhejiang Xiao Jingliang (Tianjin) (Caofeidian)

Items (Hebei) Oil

Wang Zi Food Grain and Oil Agricultural

Industry Co.Co. Ltd. Industry Co. Ltd. Development

Ltd.Co. Ltd.Current Assets 545563045.64 1393747379.61 272382537.61 63924854.13

Non-current

496391615.83782065202.6981817706.52677625.84

Assets

Total Assets 1041954661.47 2175812582.30 354200244.13 64602479.97

Current

158579977.511235715663.77274199358.637710550.95

Liabilities

Non-current

18912566.9551395336.36511739.20

Liabilities

Total Liabilities 177492544.46 1287111000.13 274711097.83 7710550.95

Operating

827007026.154636677763.70399581771.4518556537.62

Income

Net Profit (Loss) 106691266.57 87588683.12 6610073.09 5470896.35

Total

Comprehensive 106691266.57 87588683.12 6610073.09 5470896.35

Income

Cash Flow from

Operating 116629645.06 724136543.87 108028487.75 -3617581.51

Activities

2. Equity in Joint Ventures or Affiliates

1. Important Joint Ventures or Affiliates

Name of Joint Principle Shareholding Accounting Treatment

Registered Nature of

Venture or Place of Ratio (%) Methods for Investment in

Place Business

Affiliate Business Direct Indirect Joint Ventures or Affiliates

One Joint

Ventures

1. Beijing

Zhengda Feed Beijing Beijing Manufacturer 50.00 Equity method

Co. Ltd.Two AffiliatesHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Name of Joint Principle Shareholding Accounting Treatment

Registered Nature of

Venture or Place of Ratio (%) Methods for Investment in

Place Business

Affiliate Business Direct Indirect Joint Ventures or Affiliates

1. SINOGRAIN

(Tianjin)

Transportation

Warehousing Tianjin Tianjin 30.00 Equity method

and warehousing

Logistics Co.Ltd.

2. Jingliang

Missme

Catering

Beijing Beijing Manufacturer 48.00 Equity method

Management

(Beijing) Co.

Ltd.

2. Important financial information on major joint ventures

Ending Balance/Current Beginning Balance/Last Term

Amount Amount

Item

Beijing Zhengda Feed Co.Beijing Zhengda Feed Co. Ltd.Ltd.Current assets 301420356.94 259094822.42

Including: cash and cash equivalents 21778758.99 30509860.94

Non-current assets 21331443.39 24949630.10

Total assets 322751800.33 284044452.52

Current liabilities 75869110.91 59463197.04

Non-current liabilities 4593536.23 5112214.50

Total liabilities 80462647.14 64575411.54

Minority shareholder's equity

Shareholders' equity attributable to the

242289153.19219469040.98

parent company

Share of net assets based on shareholding

121144576.60109734520.49

ratio

Adjustments

-- Goodwill

-- Unrealized profits from internal

transactions

-- Other

Book value of equity investment in joint

121144576.60109734520.49

ventures

Fair value of equity investment in joint

ventures with open offers

Operating income 333958015.25 369615151.09

Financial costs -6897167.49 -5587491.34

Income tax expense 8234800.46 14082117.12

Net profit 24398297.21 43173099.79

Net profit from discontinued operations

Other comprehensive income -178185.00 -211261.00

Total comprehensive income 24220112.21 42961838.79

Dividends received from joint ventures in

the current period

3. Important financial information on major affiliates

Beginning Balance/Last Term

Ending Balance/Current Amount

Amount

Item

SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)

Warehousing Logistics Co. Ltd. Warehousing Logistics Co. Ltd.Current assets 122303388.75 104812139.17Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Beginning Balance/Last Term

Ending Balance/Current Amount

Amount

Item

SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)

Warehousing Logistics Co. Ltd. Warehousing Logistics Co. Ltd.Non-current assets 816481284.48 555196631.04

Total assets 938784673.23 660008770.21

Current liabilities 110559868.69 32099278.71

Non-current liabilities 438856701.56 250581609.08

Total liabilities 549416570.25 282680887.79

Minority shareholder's equity

Shareholders' equity attributable

389368102.98377327882.42

to the parent company

Share of net assets based on

116810430.89113198364.73

shareholding ratio

Adjustments

-- Goodwill

-- Unrealized profits from

internal transactions

-- Others

Book value of equity investment

116810430.89113198364.73

in affiliates

Fair value of equity investment

in affiliates with open offers

Operating income 73584532.63 52065840.85

Net profit 12040220.56 7936827.63

Net profit from discontinued

operations

Other comprehensive income

Total comprehensive income 12040220.56 7936827.63

Dividends received from

24680000.00

affiliates in the current period

IX. Risks Related to Financial Instruments

The Company's principal financial instruments include equity investment creditors' investment

borrowing accounts receivable accounts payable etc. The primary purpose of these financial instruments

is to finance the operations of the Company.The Company has a variety of other financial assets and

liabilities directly arising from its operations such as accounts receivable and accounts payable.The main risks caused by the Company's financial instruments are credit risk liquidity risk and

market risk.

1. Classification of financial instruments

(1) Book value of various financial assets on the balance sheet date

A. December 31 2022

Financial assets

Financial assets

measured at fair

Financial assets measured at fair value

Financial asset value and the changes

measured at and the changes Total

items recorded in other

amortized cost recorded in current

comprehensive

profits and losses

income

Monetary funds 561013109.76 561013109.76

Transactional

11005983.9811005983.98

financial assets

Derivative

201549.12201549.12

financial assets

Accounts 77057446.86 77057446.86Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Financial assets

Financial assets

measured at fair

Financial assets measured at fair value

Financial asset value and the changes

measured at and the changes Total

items recorded in other

amortized cost recorded in current

comprehensive

profits and losses

income

receivables

Other

444523698.48444523698.48

receivables

Investment in

other equity 20000000.00 20000000.00

instruments

Current portion

of non-current 148387894.16 148387894.16

assets

Other current

405999000.00165881137.81571880137.81

assets

Other non-

53544782.3453544782.34

current assets

B. December 31 2021

Financial assets Financial assets

measured at fair measured at fair value

Financial assets

Financial asset value and the and the changes

measured at Total

items changes recorded in recorded in other

amortized cost

current profits and comprehensive

losses income

Monetary funds 507144668.45 507144668.45

Transactional

40377048.0840377048.08

financial assets

Derivative

financial assets

Accounts

82694094.6282694094.62

receivables

Other

284756636.27284756636.27

receivables

Investment in

other equity 20000000.00 20000000.00

instruments

Current portion

of non-current 156139100.00 156139100.00

assets

Other current

742800000.0062577325.41805377325.41

assets

Other non-

189741996.74189741996.74

current assets

(2) Book value of various financial liabilities on the balance sheet date

A. December 31 2022

Financial liabilities measured

at fair value and changes Other financial

Financial liability items Total

included in current profits and liability

losses

Short term loans 1260543148.81 1260543148.81

Derivative financial

111373155.00111373155.00

liability

Notes payable 3331333.80 3331333.80Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Financial liabilities measured

at fair value and changes Other financial

Financial liability items Total

included in current profits and liability

losses

Accounts payable 110911877.21 110911877.21

Other Payables 83999685.56 83999685.56

Long term loans 500284166.67 500284166.67

B. December 31 2021

Financial liabilities measured at

Other financial

Financial liability items fair value and changes included Total

liability

in current profits and losses

Short term loans 1521669601.35 1521669601.35

Derivative financial liability 70305871.37 70305871.37

Accounts payable 186748746.42 186748746.42

Other Payables 73985586.39 73985586.39

Long term loans 71000000.00 71000000.00

2. Credit Risk

On December 31 2022 the largest credit risk exposure that may cause financial loss to the Company

mainly comes from the loss on financial assets of the Company due to the failure of the other party to perform

its obligations including:

Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument

measured at fair value its book value reflects its risk exposure instead of their biggest risk exposure and its

biggest risk exposure may vary with the change of its future fair value.In order to reduce the credit risk the Company sets relevant policies to control its exposure sets

corresponding credit periods based on customer’s financial position possibility of obtaining guarantees from

third parties credit records and other factors such as current market conditions and other credit qualifications

for customer assessment and implements other monitoring procedures to ensure that necessary measures are

taken to recover overdue credits. In addition the Company reviews the collection of individual account

receivables on each balance sheet date in order to make sufficient provision for bad debts for collectable

amounts. Therefore the Company's management believes that the Company's credit risk has been greatly

reduced.The liquidity funds of the Company are deposited in banks with high credit rating so the credit risk of

liquidity funds is low.

3. Liquidity Risk

When managing liquidity risk the Company keeps and monitors adequate cash and cash equivalents

approved by its management in order to meet the Company's business needs and reduce the influences of

cash flow fluctuations. The Company's management monitors the use of bank loans and ensures the

performance of loan agreements.Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:

December 31 2022

Item

Within One Year 1 To 5 Years Above Five Years Total

Short term loans 1260543148.81 1260543148.81

Derivative financial liability 111373155.00 111373155.00

Notes payable 3331333.80 3331333.80

Accounts payable 106405184.62 4506692.59 110911877.21

Other Payables 83999685.56 83999685.56

(Continued)Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

December 31 2021

Item

Within One Year 1 To 5 Years Above Five Years Total

Short term loans 1521669601.35 1521669601.35

Derivative financial liability 70305871.37 70305871.37

Accounts payable 185082028.27 1666718.15 186748746.42

Other Payables 73985586.39 73985586.39

Long term loans 71000000.00 71000000.00

4. Market risk

Market risk refers to the risk that the fair value or future cash flow of financial instruments will

fluctuate due to the change of market price. Market risk mainly includes interest rate risk foreign

exchange risk and other price risks such as equity instrument investment price risk.

(1) Interest Rate Risk

The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating

interest rates bring the Company the interest rate risk on cash flow while the financial liabilities at fixed

interest rates bring the Company the interest rate risk on fair value. The Company decides the relative

proportion of fixed interest rate contracts and floating interest rate contracts according to the current

market environment.As of December 31 2022 the Company's interest-bearing liabilities under floating rate contracts

denominated in RMB amounted to RMB 1110543148.81 and those under fixed rate contracts

denominated in RMB amounted to RMB 150000000.00.

(2) Exchange Rate Risk

The Company's exposure to foreign exchange risks is primarily related to the Company's operating

activities (when revenues and expenditures are settled in foreign currencies other than the Company's

accounting standard currency) and its net investments in its overseas subsidiaries.The Company's exposure to foreign exchange risks is mainly related to US dollars. Except that some

of the Company's subsidiaries purchase and sell in US dollars other major business activities of the

Company are priced and settled in RMB.As at December 31 2022 the Company's assets and liabilities are in RMB except the assets or

liabilities described in the table below are in US dollars.The foreign exchange risks arising from the assets and liabilities of such foreign currency balances

may have an impact on the Company's operating results.Items Ending Balance Beginning Balance

Monetary funds 26078226.16 23046783.19

Short-term borrowing 208938000.00 802427368.52

Accounts payable 595286.36

Note: The Company pays close attention to the impact of exchange rate fluctuations on the Company.The company adopts sensitivity analysis technology to analyze the possible impact of reasonable and

possible changes of risk variables on current profit and loss or owner's equity. As any risk variable rarely

changes in isolation and the correlation between variables will have a significant effect on the final impact

amount of a risk variable change the following content is carried out under the assumption that the change

of each variable is independent.Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

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

[US dollar] Exchange

Item Gross profit/net profit Increase/(decrease) in

rate Increase

increase /(decrease) shareholders' equity

/(decrease)

The yuan

depreciated against the 5% -9142988.69 -9142988.69

US dollar

The yuan appreciated

-5%9142988.699142988.69

against the US dollar

Prior period

Item [US dollar] Exchange Gross profit/net profit Increase/(decrease) in

rate Increase /

increase /(decrease) shareholders' equity

(decrease)

The yuan depreciated

5%-38998793.58-38998793.58

against the US dollar

The yuan appreciated

-5%38998793.5838998793.58

against the US dollar

X. Disclosure of Fair Values

1. Fair values of assets and liabilities measured at fair value at the end of the period

Fair Values at the End of the Period

First Level Fair Second Level Third Level Fair

Item

Value Fair Value Value Total

Measurement Measurement Measurement

One. Continuous fair value

measurement

Ⅰ. Transactional financial

11005983.9811005983.98

assets

1. Financial assets that are

measured at fair value and

whose changes are 11005983.98 11005983.98

included in the current

profits and losses

(1) Investment in debt

11005983.9811005983.98

instruments

(2) Investment in equity

instruments

(3) Derivative financial

assets

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

20000000.0020000000.00

equity instruments

Total assets continuously

11005983.9820000000.0031005983.98

measured at fair valueHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Fair Values at the End of the Period

First Level Fair Second Level Third Level Fair

Item

Value Fair Value Value Total

Measurement Measurement Measurement

Ⅵ.Transactional financial

111373155.00111373155.00

liabilities

1. Financial liabilities

measured at fair value with

111373155.00111373155.00

changes included in current

profits and losses

Including: transactional

bonds issued

derivative financial liability 111373155.00 111373155.00

others

2. Financial liabilities

designated as fair value

through profit or loss

Total liabilities

continuously measured at 111373155.00 111373155.00

fair value

2. Basis for determining market prices of continuous and non-continuous first level fair value

measurement items

The Company makes offers for first level fair value measurement according to open contracts of the

futures exchange and the quote from the bank on financial product at the end of the period.

3. Continuous and non-continuous third-level fair value measurement items adopt valuation

techniques and qualitative and quantitative information of important parameters

The company‘s investment in other equity instruments of the third level fair value measurement projectis the ”three notes“ equity investment that without control joint control and significant influence held by thecompany. On the basis of analyzing the operation status of the invested enterprise and combining with

relevant situations the company takes the investment cost as the fair value of other equity instrument

investment for measurement at the end of the period.XI. Related Parties and Related-Party Transactions

1. Identification criteria of related parties

If one party controls jointly controls or exerts significant influence on the other party and two or

more parties are controlled jointly controlled or significantly influenced by the same party they constitute

related parties.

2. Parent Company of the Company

Registered

Name of Parent Registered Legal Capital

Company type Nature of Business

Company Place representative (ten thousand

Yuan)

Beijing Grain Wholly state-owned Investment

Beijing Zhang Lijun 90000.00

Group Co. Ltd. enterprise Management

(Continued)

Proportion of Shares

Proportion of Voting Power

Held by Parent The ultimate controlling

Held by Parent Company in Organization code

Company in the party of the Company

the Company (%)

Company (%)

Beijing State-owned

39.68 39.68 Capital Operation and 91110000700224507H

Management CenterHainan Jingliang Holdings Co. Ltd. Annual Report 2022

3. Subsidiaries of the Company

See 1. Equity in Subsidiaries under Section VIII of the Notes for details.

4. Joint Ventures and Affiliates of the Company

See 3. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.

5. Other Related Parties

Name of Other Related Party Relationship with the Company

Beijing Liubiju Food Co. Ltd Controlled by the ultimate controlling party

Shanghai Shounong Investment Holdings 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 Guzhou Food Co. Ltd Controlled by the ultimate controlling party

Hebei Sanyuan Food Co. Ltd Controlled by the ultimate controlling party

Beijing Jingliang E-Commerce Co. Ltd Controlled by the ultimate controlling party

Beijing Centennial Liyuan Ecological Agriculture Co. Ltd Controlled by the ultimate controlling party

Beijing Sanyuan Food Co. Ltd Controlled by the ultimate controlling party

Beijing Ershang Dahongmen Five Meat Union Food Co. Ltd Controlled by the ultimate controlling party

Beijing Heiliu Animal Husbandry Technology Co. Ltd Controlled by the ultimate controlling party

Beijing Ancient Ship Rice Industry Co. Ltd Controlled by the ultimate controlling party

Hebei Luanping Huadu Food Co. Ltd Controlled by the ultimate controlling party

Beijing Shoucheng Shanshui Real Estate Co. Ltd Controlled by the ultimate controlling party

Beijing Baijiayi Food Co. Ltd Controlled by the ultimate controlling party

Beijing Lanfeng Vegetable Distribution Co. Ltd Controlled by the ultimate controlling party

Beijing Jinggrain Oriental 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 West Suburb Grain and Oil Supply Station

Controlled by the ultimate controlling party

Co. Ltd

Beijing Food Supply Department No. 34 Supply Department

Controlled by the ultimate controlling party

Co. Ltd

Beijing grain point to net (Beijing) Trading 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 Co.Controlled by the ultimate controlling party

Ltd

Beijing Shounong Consumption Poverty Alleviation and

Controlled by the ultimate controlling party

Innovation Center Co. Ltd

Beijing Yunong Quality Agricultural Products Planting Co.Controlled by the ultimate controlling party

Ltd

Beijing Shounong Weiye Group Co. Ltd Controlled by the ultimate controlling party

Beijing Ershang Xijie Food Co. Ltd Controlled by the ultimate controlling party

Beijing Wang Zhihe Food Co. Ltd Controlled by the ultimate controlling party

Hebei Shounong Modern Agricultural Technology Co. Ltd Controlled by the ultimate controlling party

Shanghai Shouyu 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 Bioengineering 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.Controlled by the ultimate controlling party

Ltd

Beijing Ailai Faxi Food Co. Ltd Controlled by the ultimate controlling party

Beijing North Jing Sugar and Wine Sales Co. Ltd Controlled by the ultimate controlling party

Beijing Ershang Jardine Sunshine Real Estate Co. Ltd Controlled by the ultimate controlling party

Beijing Shounong University Kitchen Supply Chain

Controlled by the ultimate controlling party

Management Group Co. Ltd

Beijing Jingliang Taiyu Real Estate Co. Ltd Controlled by the ultimate controlling partyHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Name of Other Related Party Relationship with the Company

Beijing Grain Science Research Institute Co. Ltd Controlled by the ultimate controlling party

Beijing Jingliang Green Valley Trading Co. Ltd Controlled by the ultimate controlling party

Beijing Zhujun Grain and Oil Supply Co. Ltd Controlled by the ultimate controlling party

Beijing Jingliang Logistics Co. Ltd Controlled by the ultimate controlling party

Beijing Sanjiadian Grain Collection and Storage Co. Ltd Controlled by the ultimate controlling party

Beijing Hongyuan Lijun Grain and Oil Supply Co. Ltd Controlled by the ultimate controlling party

Beijing Jingliang Canal Grain and Oil Trading Co. Ltd Controlled by the ultimate controlling party

Beijing Kyoto Jingu Grain Purchase and Sales Co. Ltd Controlled by the ultimate controlling party

Beijing Children soldiers grain and oil supply Co. Ltd Controlled by the ultimate controlling party

Beijing Longqing Xiadu Military Food 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 Industry Co. Ltd Controlled by the ultimate controlling party

Beijing Jingliang Biotechnology Group Co. Ltd Controlled by the ultimate controlling party

Tianjin Xincheng Kangda Pharmaceutical Co. Ltd Controlled by the ultimate controlling party

Beijing Xing Fashion Trading 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 Grain Co. Ltd Controlled by the ultimate controlling party

Beijing Shounong Grain Reserve Co. Ltd Controlled by the ultimate controlling party

Beijing Jingliang Gurun Trading Co. Ltd Controlled by the ultimate controlling party

Beijing Shounong Food Emergency Security Center Co. Ltd Controlled by the ultimate controlling party

6. Related-party Transactions

1. Related-party transactions for purchasing and selling goods and provision and acceptance of

labor services

(1) Purchase of goods or acceptance of labor services

Related-party Last Term

Related Party Current Amount

Transaction Amount

Beijing Guzhou Food Co. Ltd Purchase of goods 6710236.13 17625723.68

Beijing Ancient Ship Rice Industry Co. Ltd Purchase of goods 3858763.79

Beijing Huadu Liquor Marketing Co. Ltd Purchase of goods 3467637.93

Beijing Yueshengzhai Halal Food Co. Ltd

Purchase of goods 1108183.58 562891.05

Beijing Jinggrain Oriental Grain and Oil

Purchase of goods 654830.57 405452.28

Trading Co. Ltd

Beijing Shounong Grain Reserve Co. Ltd Storage fees 631603.77 493822.64

Beijing Food Supply Department No. 34

Purchase of goods 361095.16

Supply Department Co. Ltd

Beijing Sanyuan Food Co. Ltd Purchase of goods 317488.99 280809.77

Shandong Fukuan Bioengineering Co. Ltd Purchase of goods 1117661.96 780495.67

Beijing Ershang Meat and Food Group Co.Purchase of goods 175954.99 394945.43

Ltd

Beijing Wuhuan Shuntong Supply Chain

Purchase of goods 147448.46

Management Co. Ltd

Shanghai Shounong Investment Holdings Co.Purchase of goods 65000554.51

LtdHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Related-party Last Term

Related Party Current Amount

Transaction Amount

Beijing heiliu Animal Husbandry Technology

Purchase of goods 44080.83 203640.70

Co. Ltd

Other related units Purchase of goods 371632.91 306797.14

(2) Sale of goods/ provision of labor services

Related-party

Related Party Current Amount Last Term Amount

Transaction

Shanghai shounong Investment Holding Co.Sale of goods 214613311.32 639999993.00

Ltd

Beijing Wang Zhihe Food Co. Ltd Sale of goods 66830285.30

Hebei Luanping Huadu Foodstuff Co. Ltd. Sale of goods 24869269.53 9820008.43

Hebei shounong Modern Agricultural

Sale of goods 19281001.32 17038071.30

Technology Co. Ltd

Beijing Ershang Wangzhihe Food Co.Sale of goods 17523217.37 62085307.44

Ltd.Beijing Capital Agriculture Group Co. Ltd Provision of

11113947.81599999.98

services

Shanghai Sunlon Investment Holding Co. Ltd Provision of

5392403.9012533333.63

services

Beijing Ershang Xijie Foodstuff Co.Sale of goods 7764752.62 9367917.44

Ltd.Beijing Jingliang Dongfang grain and Oil

Sale of goods 5706941.17 7259668.09

Trading Co. Ltd

Beijing Haidian Xijiao grain and oil supply

Sale of goods 4977243.14 3014544.41

station Co. Ltd

Beijing Guchun Food Co. Ltd Sale of goods 1398392.53 15317021.38

Beijing Sanyuan Food Co. Ltd Sale of goods 3936383.48 747433.70

Huairou Brewing Factory of Beijing Liubiju

Sale of goods 3014449.53 5207793.60

Food Co. Ltd

Beijing Wuhuan Shuntong Supply Chain

Sale of goods 2807417.64 1604476.13

Management Co. Ltd

Beijing Zhujun grain and oil supply Co. Ltd Sale of goods 2589779.81 2406903.69

Beijing Liubiju Food Co. Ltd Sale of goods 2218885.41

Beijing food supply office No.34 supply

Sale of goods 1933686.47 4825987.13

department Co. Ltd

Beijing Children soldiers grain and oil supply

Sale of goods 1790825.70 2219449.54

Co. Ltd

Beijing baijiayi Food Co. Ltd Sale of goods 1634422.04 1172768.81

Beijing Zhangxin Grain Reserve Co. Ltd Sale of goods 1487322.95

Beijing Kyoto Jingu Grain Purchase and Sales

Sale of goods 1168807.35

Co. Ltd

Beijing Shounong University Kitchen Supply

Sale of goods 927483.93

Chain Management Group Co. Ltd

Beijing Lanfeng Vegetable Distribution Co.Sale of goods 773434.88

Ltd

Feed branch of Beijing Sanyuan Seed

Sale of goods 57112231.88 47175363.45

Industry Technology Co. Ltd

Beijing Shounong Consumption Assistance

Innovation and Entrepreneurship Center Co. Sale of goods 12896905.51 15515188.10

Ltd.Beijing shounong Supply Chain Management

Sale of goods 2427623.76

Co. Ltd

Beijing Guchun rice Co. Ltd Sale of goods 159450.49 1267478.96

Beijing Jingliang e-commerce Co. Ltd Sale of goods 682187.95Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Related-party

Related Party Current Amount Last Term Amount

Transaction

Beijing junchengyuan grain and oil purchase

Sale of goods 618123.86

and Marketing Co. Ltd

Beijing Hongyuan Lijun grain and oil supply

Sale of goods 202752.29 492201.84

Co. Ltd

Beijing maliandou special supply station Co.Sale of goods 70642.20

Ltd

Beijing Liangguan Grain and Oil Supply Co.Sale of goods 11559.64

Ltd

Beijing Guchuan Food Co. Ltd Provision of

23691.32

services

Other-related units Sale of goods 2640376.49 2215034.03

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 a unrelated-party

transaction that is same as or similar to such related-party transaction.

2. Related-party lease

(1) If the Company is the lessor

Pricing Lease Income

Type of Lease Income

Lease start Lease basis of Recognized in

Name of Lessee Leased Recognized in

date termination date rental the Current

Asset the Prior Period

income Period

Beijing Until the date on

Vehic

Jingliang E- March1 which the lessee Market

le 22530.26 11265.13

commerce Co. 2014 is eligible to price

rental

Ltd. purchase a car

Total 22530.26 11265.13

(2)If the Company is the lessee

Lease Expense Lease Expense

Type of Leased Pricing basis of

Name of Lessee Recognized in the Recognized in the

Asset releasing fee

Current Period Prior Period

Beijing Daxing

National Grain

Purchasing & House leasing Market price 2339449.54 1935963.30

Storage

Warehouse

Beijing

Shounong

House leasing Market price 2747664.01 1803247.58

Development

Co. Ltd.Beijing

Dahongmen

House leasing Market price 626936.95 623474.62

Foodstuff

Storage

Beijing Grain

House leasing Market price 1048715.69 555229.36

Group Co. Ltd.Beijing

Nanyuan Plant House leasing Market price 331694.32 311926.61

Oil Factory

Beijing Grain

Group Head House leasing Market price 44036.70 33027.52

Company

Total 7138497.21 5262868.99

3. Other Related-party TransactionsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Related-party Last Term

Guaranteed Party Current Amount

Transaction Amount

Heating fee cleaning fee

Beijing Dahongmen Foodstuff Storage 84663.79 177183.60

electricity fee

Beijing Shounong Development Co.Utilities property fees 129970.81 98847.10

Ltd.Beijing Haidian Xiangshan Rest House Conference service fees 44130.38 20654.60

Beijing Shounong Food Group Finance

Interest income 2295571.07 1589080.65

Co. Ltd.Beijing Guchuan Food Co. Ltd.Brand royalty 2601649.71 2561865.51

Beijing Guchuan Rice Co. Ltd. Brand royalty 140583.79 186540.99

Beijing Jingliang Dongfang Grain and

Brand royalty 2996.50 2230.47

Oil Trading Co. Ltd.Tianjin Juxiang Technology Co. Ltd. Technical Service Fee 1582.20

4. Remuneration for key management staff

Current Amount (Unit: ten Last Term Amount (Unit: ten

Item

thousand yuan) thousand yuan)

Remuneration for Key

1168.45624.05

Management Staff

7. Related-party Receivables and Payables

(1) Receivables

Ending Balance Beginning Balance

Book Balance Provision Book Balance Provision

Item Related-party

for Bad for Bad

Debts Debts

Monetary Beijing shounong Food

339487166.55167000000.00

funds Group Finance Co. Ltd

Hebei Luanping Huadu

Receivables 3548214.00

Food Co. Ltd

Feed Branch of Beijing

Sanyuan Seed 2056939.44 3000236.98

Technology Co. Ltd.Beijing Shounong

Consumption Assistance

Innovation and 1737500.00 1359375.00

Entrepreneurship Center

Co. Ltd.Hebei Sanyuan Food

1685000.00

Co. Ltd

Beijing Jingliang

Dongfang grain and Oil 1198484.00 584491.00

Trading Co. Ltd

Beijing Zhangxin Grain

665000.00

Reserve Co. Ltd

Beijing Food Supply

Department No. 34

279035.00

Supply Department Co.Ltd

Beijing baijiayi Food

180695.00196800.00

Co. Ltd

Beijing Grain Dianto Net

(Beijing) Trading Co. 95120.40

LTD

Beijing Lanfeng 84200.00Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Ending Balance Beginning Balance

Book Balance Provision Book Balance Provision

Item Related-party

for Bad for Bad

Debts Debts

Vegetable Distribution

Co. Ltd

Beijing Guchun Food

82800.001260000.00

Co. Ltd

Beijing Haidian West

Suburb Grain and Oil 82500.00

Supply Station Co. Ltd

Beijing Shoucheng

Shanshui Real Estate 33355.00

Co. Ltd

Beijing Yunong Quality

Agricultural Products 3120.00

Planting Co. Ltd

Shanghai Sunlon

Investment HOLDINGS 1002945.54

Ltd.Beijing Ershang Xijie

621830.00

Foodstuff Co. Ltd.Hebei Shounong Modern

Agricultural Technology 369525.30

Co. Ltd.Beijing Zhujun grain and

261500.00

oil supply Co. Ltd

Beijing Dongfang

Agricultural Group

161106.00

Supply Chain

Management Co. Ltd.Beijing Guchun rice Co.

72688.00

Ltd

Beijing Junyuan grain

and oil purchasing and 43000.00

Marketing Co. Ltd

Beijing Ershang Yihe

Sunshine Real Estate 15520.00

Co. Ltd.Other Beijing Dahongmen

55232.00

Receivables Grain Storage Co. Ltd

Beijing Guchuan Rice

50000.00

Industry Co. Ltd

(2) Payables

Item Related-party Ending Balance Beginning balance

Shanghai Sunlon Investment

Contract liability 3448410.37 3943587.12

HOLDINGS Ltd.Beijing Liubiju Food Co. Ltd 59300.00

Beijing Jinggrain Oriental Grain

15088.20

and Oil Trading Co. Ltd

Beijing Wuhuan Shuntong Supply

3192.54

Chain Management Co. Ltd

Beijing Shounong Commercial

293.20

Chain Co. Ltd

Payables Beijing Guchun Food Co. Ltd 240000.00 358762.54Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Beijing Ershang Dahongmen Five

19115.04

Meat Union Food Co. Ltd

Beijing Heiliu Animal Husbandry

2826.00

Technology Co. Ltd

Beijing Centennial Liyuan

110.00

Ecological Agriculture Co. Ltd

Beijing Sanyuan Food Co. Ltd 50.48

Beijing Er Shang Mo Qi Zhong

382.30

Hong Foods Co. Ltd.Beijing Jingliang Dongfang grain

294.51

and Oil Trading Co. Ltd

Beijing Sunnyum Foods Co.

31.19

Ltd.Other payables Beijing Grain Group Co. Ltd. 2862750.30 2819620.39

Hebei Sanyuan Food Co. Ltd 140000.00

Beijing Jingliang E-Commerce Co.

67891.21

Ltd

Shanghai Sunlon Investment

2591003.45

HOLDINGS Ltd.Beijing Nanyuan vegetable oil

311926.61

factory Co. Ltd

8. Related-party Commitments

The Company has no related-party commitments this year.XII. Share based payment

There are no share based payments incurred this year for the company.XIII. Commitments and Contingencies

By the end of this report the company and its holding subsidiaries have approved the amount of

guarantee 7.557 billion yuan and the actual amount of guarantee of the company and its holding

subsidiaries is 1.692 billion yuan accounting for 55.25% 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.XIV. Events after the Balance Sheet Date

1. Distribution of Profits

As of the financial report date of the company the 4th meeting of the tenth board of directors in 2023

approved that no profit distribution will be conducted in 2022 which still needs to be approved by the general

meeting of shareholders.XV. Other Important Matters

1. Annuity Plan

Basic information of annuity: Beijing Jingliang Food Co. Ltd. Beijing Guchuan Oil Co. Ltd. Beijing

Eisen Lubao Oil Co. Ltd. Beijing Jingliang Oil Co. Ltd. and Beijing Guchuan Bread Food 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 Divisions

(1) Basis of determination and accounting policies for reporting of divisionsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

The Company's businesses consist of food processing oil and grease and so on according to its internal

organizational structure management requirements and internal reporting system. The Company's

management regularly evaluates the operating results of these divisions to determine the allocation of

resources to them and evaluate their performance. The information reported by divisions should be disclosed

according to the accounting policies and measurement standards adopted by such divisions when they are

reporting to the management. These measurement bases should be consistent with the accounting and

measurement bases for preparation of financial statements.

(2) Reporting of the financial information of divisions

Offset Among

Item Food Processing Oil & Grease Other Total

Divisions

Operating

934354631.8317678873948.3522309668.18-5777663946.6412857874301.72

income

Operating

728241410.7517245110349.3621659551.22-5757439972.0212237571339.31

costs

Operating

123414781.16392682828.27-3317815.96-291681015.82221098777.65

profit

Net profit

attributable

96670652.60358068801.86-2558587.94-310769725.24141411141.28

to parent

company

Total assets 1127860966.95 10764915919.36 59204088.36 -5846836806.71 6105144167.96

Total

179483468.374423841929.014870747.28-1965761823.982642434320.68

liabilities

3. Lease

The lessee shall disclose the following information in relation with the lease.Item Amount

Interest expense 103722.54

Short-term lease payments charged to current profit or

6239496.93

loss

Lease costs for low-value assets recognized in current

profit or loss

Variable lease payments not included in the

measurement of lease liabilities

Income from sublease of right-to-use assets

Total cash outflows related to leases 8293070.04

Gains and losses related to sale and leaseback

transactions

XVI. Notes to Main Financial Statement Items of Parent Company

1. Accounts Receivable

（1）Disclosed according to aging

Aging Ending Balance

Within 1 Year (including 1 year)

Among them: Within credit period (within 3 months)

Credit period to 1 year

1 to 2 years (including 2 years)

2 to 3 years (including 3 years)

3 to 4 years (including 4 years)

4 to 5 years (including 5 years)

More than 5 years

Sub-total

Less: Allowance for bad debtsHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Aging Ending Balance

Total

（2）Disclosed according to the method of provision for bad debt

Ending Balance

Book Balance Bad Debt Provision

Type(s)

Provision Book Value

Amount Ratio(%) Amount

Ratio(%)

Separate provision for bad

debts

Portfolio provision for bad

debts

Among them: Portfolio 1

Total

（Continued）

Beginning Balance

Book Balance Bad Debt Provision

Type(s)

Provision Book Value

Amount Ratio(%) Amount

Ratio(%)

Separate provision for bad debts

Portfolio provision for bad debts 108000.00 100.00 107400.00 99.44 600.00

Among them: Portfolio 1 108000.00 100.00 107400.00 99.44 600.00

Total 108000.00 107400.00 600.00

Portfolio provision for bad debts:

Portfolio provision item: aging portfolio

Ending Balance Beginning Balance

Provisi

Name Accounts Bad Debt Accounts Bad Debt Provisio

on

receivable Provision receivable Provision n Ratio

Ratio

Within 1 Year (including

1 year)

Among them: Within

the credit period (within

3 months)

Credit period to 1 year

1 to 2 years (including 2

years)

2 to 3 years (including 3

years)

3 to 4 years (including 4

years)

4 to 5 years (including 5

3000.002400.0080.00

years)

More than 5 years 105000.00 105000.00 100.00

Total 108000.00 107400.00

(3) Details of bad debt provision

Carrying Amount changes for the period Carrying

Type amount at the Addition Withdrawal Write-off Other amount at the

beginning or reversal changes end

Bad debt

provision 107400.00 600.00 108000.00

Total 107400.00 600.00 108000.00

(4) Receivables actually written off in the current periodHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Item Amount

Hainan Pearl River Pipe Pile Co. Ltd 108000.00

During the period the manager's office meeting approved to write off the uncollectible receivables.

2. Other Receivables

a. Overview

(1) Classification

Item Ending Balance Beginning Balance

Interest receivable

Dividends receivable 150000000.00

Other receivables 199000000.00 180000000.00

Total 349000000.00 180000000.00

b. Other Receivables

(1) Disclosed according to aging

Aging Ending Balance

Within 1 Year (including 1 year) 29000000.00

Among them: Within credit period (within 3 months) 20000000.00

Credit period to 1 year 9000000.00

1 to 2 years (including 2 years) 170000000.00

2 to 3 years (including 3 years)

3 to 4 years (including 4 years)

4 to 5 years (including 5 years)

More than 5 years

Sub-total 199000000.00

Less: Allowance for bad debts

Total 199000000.00

(2) Classification of other receivables by nature of funds

Book Balance at End of Book Balance at

Nature of Funds

Period Beginning of Year

Intercourse Funds of Units 199000000.00 180000000.00

Petty Cash 93197.85

Total 199000000.00 180093197.85

（3）Details about allowance for bad debt

Stage 1 Stage 2 Stage 3

Expected Expected credit loss Expected credit

Provision for bad debt credit loss in for the whole period loss for the whole Total

the next 12 (no credit period (with credit

months impairment) impairment)

Amount on January 1

93197.8593197.85

2022

Carrying amount on

January 1 2022 during

this period:

——Get into Stage 2

——Get into Stage 3

——Get back to Stage

2

——Get back to Stage

Provision for the period

Reverse for the period

Transfer for the period

Write off for the period 93197.85 93197.85Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Stage 1 Stage 2 Stage 3

Expected Expected credit loss Expected credit

Provision for bad debt credit loss in for the whole period loss for the whole Total

the next 12 (no credit period (with credit

months impairment) impairment)

Other changes

Balance at December 31

2022

(4) Details of bad debt provision

Carrying Amount changes for the period

Carrying

amount at Other

Type Addi Withdrawal amount

the Write-off change

tion or reversal at the end

beginning s

Bad debt

93197.8593197.85

provision

Total 93197.85 93197.85

(5)Other receivables actually written off in the current period

Item Amount

Employee related funds 93197.85

During the period t the manager's office meeting approved to write off the uncollectible receivables

(6) Other receivables according to top five of balance at end of period collected by debtors

Proportion in overall Ending

Name of Balance at End

Nature of Funds Aging ending balance of balance of bad

Organization of Period

other receivables (%) debt reserves

Within 1

Beijing Grain Stock Related party

199000000.00 years；1- 100.00

Co. Ltd. borrowing

2years

Total 199000000.00

c. Dividend Receivable

Item(s) Ending Balance Beginning Balance

Beijing Jingliang Food Co. Ltd. 150000000.00

Total 150000000.00

3. Long-term Equity Investment

Ending Balance Beginning Balance

Item Provision for Provision for

Book Balance Book Value Book Balance Book Value

Impairment Impairment

Investment in

2619157283.192619157283.192626437846.242626437846.24

subsidiaries

Total 2619157283.19 2619157283.19 2626437846.24 2626437846.24

(1)Investment in subsidiaries

Ending

Current

Balance of

Invested Beginning Current Current Provision

Ending Balance Provision

Entity Balance Increase Decrease for

for

Impairment

Impairment

Beijing

Jingliang 2336639964.05 2336639964.05

Food Co. Ltd.Zhejiang little

prince Food 249017319.14 249017319.14

Co. LtdHainan Jingliang Holdings Co. Ltd. Annual Report 2022

Jingliang rural

complex

construction

15280563.0515280563.05

and operation

(Xinyi) Co.Ltd

Jingliang

(Caofeidian)

Agricultural 25500000.00 25500000.00

Development

Co. Ltd.Jingliang

(Beijing)

Food

8000000.008000000.00

Marketing

Management

Co. Ltd

Total 2626437846.24 8000000.00 15280563.05 2619157283.19

4. Operating income and operating costs

1. Details of operating income and operating costs

Current Amount Last Term Amount

Item

Income Cost Income Cost

Core business

Other businesses 11768886.09 341162.52 591060.56 341162.52

Total 11768886.09 341162.52 591060.56 341162.52

5. Income from investment

Sources of investment income Current Amount Last Term Amount

Long term equity investment income

163430984.15461597751.35

calculated by cost method

Total 163430984.15 461597751.35

XVII. Supplementary Information

1. According to the requirements of the CSRC's "Explanatory Announcement on Information

Disclosure of Companies Publicly Issuing Securities No. 1 - Non-recurring Gains and Losses"

the non-recurring gains and losses during the reporting period shall be reported

1. Details of non-recurring profit and loss in the reporting period

Details of non-recurring profit and loss Amount Note

(1) Gains and losses on disposal of non current assets 308271.08

(2) Government subsidies included in the current profits and

losses (closely related to the business of the enterprise except the

7606921.93

government subsidies enjoyed according to the national unified

standard quota or quantitative)

(3) In addition to the effective hedging business related to the

normal business of the company the profit and loss from changes

in fair value arising from holding trading financial assets

derivative financial assets trading financial liabilities and

1018494.49

derivative financial liabilities as well as the investment income

from the disposal of trading financial assets derivative financial

assets trading financial liabilities derivative financial liabilities

and other debt investments

(4)Income from custodial fees obtained from entrusted operations 11061512.95

(5) Other non-operating income and expenses other than the

4374321.83

above

(6) Other profit and loss items that meet the definition of non

recurring profit and loss

Total non recurring profit and loss 24369522.28Hainan Jingliang Holdings Co. Ltd. Annual Report 2022

Details of non-recurring profit and loss Amount Note

Less: amount affected by income tax 6047575.48

Non recurring profit and loss after deducting the influence of

18321946.80

income tax

Including: non recurring profit and loss attributable to the owner

17113972.95

of the parent company

Non recurring profit and loss attributable to minority shareholders 1207973.85

2. Return on equity and earnings per share

Weighted Return on EPS

Current Profit Average Equity

Basic EPS Diluted EPS

(ROAE) (%)

Net profit attributable to the Company's common

4.730.190.19

shareholders

Net profit attributable to common shareholders 4.16 0.17 0.17

after deduction of non-recurring gains and losses

Hainan Jingliang Holdings Co. Ltd.

31 March 2023