HAINAN JINGLIANG
HOLDINGS CO. LTD.SEMI-ANNUAL
FINANCIAL REPORT
2023
August 2023HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL FINANCIAL REPORT 2023
This Summary has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions the Chinese version shall
prevail.Part I Financial Report
Independent auditor’s modified opinion:
□ Applicable □ Not applicable
2023 Semi-Annual Financial Report is not audited by Independent auditor.
Part I I Financial Statement
The unit of financial statements in the financial notes is: Yuan
Editor: Hainan Jingliang Holdings Co. Ltd
1、Consolidated Balance sheet
06-June-2023
Monetary Unit: RMB Yuan
Items 30-June-2023 1-Jan-2023
Current Assets：
Monetary Capital 1251666904.81 561013109.76
Settlement reserves
Loans to banks and other financial
institutions
Transactional financial assets 16175691.49 11005983.98
Derivative financial assets 153000.00 201549.12
Notes receivable 154945.01
Accounts receivable 94785430.75 77057446.86
Receivable Financing
Pre payments 551576045.68 194495648.06Premium receivable
Receivables from reinsurance
Reserve for reinsurance
receivables
Other receivables 438557843.89 444523698.48
Including :Interest receivable
Dividends receivable
Buy-back financial Assets
Inventory 2188231545.06 2073944683.57
Contract Assets
Held-for-sale assets
Within one year Non-Current
106546505.27148387894.16
Assets
Other current Assets 363863811.42 632929899.75
Total Current Assets 5011711723.38 4143559913.74
Non-Current Assets：
Loans and advances
Debt Investment
Other Debt Investment
Long-term receivables
Long-term equity investment 250566213.84 243553916.98
Other Instruments investment 20000000.00 20000000.00
Other Non-current financial assets
Investment property 21326173.23 19805276.24
fixed assets 1013694886.73 1047451810.24
Construction in progress 38472961.91 22695003.52
Productive biological assets
Oil and gas assets
Right-of-use assets 6241335.91 6968426.20
Intangible assets 322745230.58 325044884.34
Development expenditure
Goodwill 191394422.51 191394422.51
Long-term deferred expenses 17214163.21 16935967.92
Deferred income tax assets 13255247.15 14189763.93
Other Non-Current Assets 33895087.34 53544782.34
Total Non-Current Assets 1928805722.41 1961584254.22
Total Assets 6940517445.79 6105144167.96Current liabilities：
Short-term borrowings 1642308166.66 1260543148.81
borrowings from central bank
Loans from bank and other
financial institutions
Transactional financial liabilities
Derivative financial liabilities 84108320.00 111373155.00
Notes payable 3331333.80
Accounts payable 128731589.03 110911877.21
Account collected in advance 1371674.51 922982.41
Contract liabilities 589737348.35 285555581.80
financial assets sold under
repurchase agreements
Deposits from customers and
interbank deposit
Funds from securities trading
brokerage business
Funds from securities under
writing business
Employee reroll payable 15002267.33 43928760.76
tax payable 19922589.93 66629054.18
Other payables 113457778.24 83999685.56
Including: Interest payable 21082795.47 21082795.47
dividend payable 3213302.88 3213302.88
Payable Fee and commission
Payable Reinsurance accounts
Held-for-sale liabilities
Within one year Non-current
628515.161432706.14
liabilities
Other current liabilities 56434136.00 56184255.30
Total current liabilities 2651702385.21 2024812540.97
Non-current liabilities：
Insurance Contract reserves
Long-term borrowings 600000000.00 500284166.67
Bonds payable
Including: preferred stock
Perpetual capital bonds
Lease liabilities 757257.80 704390.98Long-term payables
Long-term Employee reroll
5677134.005677134.00
payable
Estimated liabilities
Deferred revenue 63508701.11 64550917.36
Deferred income tax liabilities 70654986.68 46405170.70
Other Non-current liabilities
Total Non-current liabilities 740598079.59 617621779.71
Total Liabilities 3392300464.80 2642434320.68
Owner’s equity
Capital stock 726950251.00 726950251.00
Other equity instrument
Including: preferred stock
Perpetual capital bonds
Capital reserves 1678678350.95 1678678350.95
Less ：Treasury stock
Other comprehensive revenue 1736372.13 1005720.50
special reserves
Surplus reserves 122122436.98 122122436.98
general risk reserves
Undistributed profit 606486470.98 532904675.62
Total equity attributable to the parent
3135973882.043061661435.05
company
Minority equity 412243098.95 401048412.23
Total owner’s equity 3548216980.99 3462709847.28
Total Liabilities and Total owner’s
6940517445.796105144167.96
equity
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
2、Statement of Financial positions
Monetary Unit: RMB Yuan
Items 30-June-2023 1-Jan-2023
Current Assets：
Monetary Capital 17205549.53 15852894.21
Transactional financial assetsDerivative financial assets
Notes receivable
Accounts receivable
Receivable Financing
Pre payments
Other receivables 360000115.58 349000000.00
Including: Interest receivable
Dividends receivable 150000000.00
Inventory
Contract Assets
Held-for-sale assets
Within one year Non-Current
Assets
Other current Assets 465029.16 1168502.66
Total Current Assets 377670694.27 366021396.87
Non-Current Assets：
Debt Investment
Other Debt Investment
Long-term receivables
Long-term equity investment 2619157283.19 2619157283.19
Other Instruments investment 20000000.00 20000000.00
Other Non-current financial assets
Investment property 5369095.43 5539676.69
fixed assets 5811842.52 5575316.44
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development expenditure
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other Non-Current Assets
Total Non-Current Assets 2650338221.14 2650272276.32
Total assets 3028008915.41 3016293673.19current liabilities：
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable
Account collected in advance 38896.41 38896.41
Contract liabilities
Employee reroll payable 176246.38 191137.22
Payable tax fee 1032337.89 1548097.77
Other payables 33295174.14 34559303.45
Including: Interest payable 21082795.47 21082795.47
Dividend payable 3213302.88 3213302.88
Held-for-sale liabilities
Within one year Non-current
liabilities
Other current liabilities
Total current liabilities 34542654.82 36337434.85
Non-current liabilities：
Long-term borrowings
Bonds payable
Including: preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term Employee reroll
payable
Estimated liabilities
Deferred revenue
Deferred income tax liabilities
Other Non-current liabilities
Total Non-current liabilities
Total liabilities 34542654.82 36337434.85
Owner’s equity
Capital stock 726950251.00 726950251.00
Other equity instrument
Including: preferred stockPerpetual capital bonds
Capital reserves 2382994900.84 2382994900.84
Less ：Treasury stock
Other comprehensive revenue
Special reserves
Surplus reserves 109487064.39 109487064.39
Undistributed profit -225965955.64 -239475977.89
Total owner’s equity Total 2993466260.59 2979956238.34
Total Liabilities and Total owner’s
3028008915.413016293673.19
equity
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
3、Consolidated Income Statement
Monetary Unit: RMB Yuan
Items Semi-annual of 2023 Semi-annual of 2022
一、Total operating income 4823234208.18 5512781270.32
Including: operating income 4823234208.18 5512781270.32
Interest income
Premiums earned
Fee and commission
income
二、Total operating cost 4841383397.31 5465754564.15
Including: operating cost 4630970469.14 5274364092.66
Interest expenditure
Fee and commission
expenditure
Surrenders
Net claims paid
Net appropriation for
insurances contracts reserves
Policy holders dividends
expenditure
Reinsurance expenses
Tax and super charge 11548673.88 17015865.16
Selling expenses 78437823.61 69188009.32
Administration expenses 92898582.21 87740667.69Research and development
10262799.974876642.24
expenses
Financial expenses 17265048.50 12569287.08
Including: Interest expenses 25265021.07 16391856.85
Interest income 5832452.30 6825161.06
Add：Other revenue 6324214.58 6439000.05
Investment revenue
7179282.9912205590.86（Losses are recorded as “－”）
Including: joint venture and
cooperative enterprise Investment 7012296.86 11762199.64
revenue
derecognition of financial
assets amortized revenueexchange revenue （Lossesare recorded as“-”）
Exposure hedging revenue（Losses are recorded as “－”）
Changes in fair value
143869459.3049424487.23
revenue （Losses are recorded as “－”）
Credit Less impairment
-115984.57-600.00（Losses are recorded as“-”）
Assets Less impairment
-25186589.63（Losses are recorded as“-”）
Assets disposal revenue
-2209.46441741.39（Losses are recorded as“-”）operating profit （Losses are recorded
113918984.08115536925.70as“-”）
Add：Non- operating Income 3903501.36 475215.44
Less ：Non-operating expenditure 527980.44 358327.53
Total profit（Losses are recorded as“-”） 117294505.00 115653813.61
Less ：income tax expenses 32518022.92 30461421.92Net profit （Net loss is presented as
84776482.0885192391.69“－”）
Classified by operations continuity
Continuing operation Net profit
84776482.0885192391.69（Net loss is presented as “－”）Close for business Net profit （Netloss is presented as “－”）
Classified according to ownership
Parents company Total owner’s 73581795.36 72908330.15Net profit
Minority Lose 11194686.72 12284061.54
Other comprehensive revenue after tax 730651.63 671532.18
Parents company Total owner’s Other
730651.63671532.18
comprehensive revenue’s tax
Other comprehensive revenue
cannot be reclassified into the lost
1.Recalculation of changes
in defined benefit plans
2.Othercomprehensive
income that cannot be transferred to
gains and losses under the equity
method
3.OtherInstruments
investment Changes in fair value
4.Enterprise credit risk
changes in fair value
5.Other
Other comprehensive income that
will be reclassified into the profit and 730651.63 671532.18
loss
1.Other comprehensive
income that can be transferred to gains
and losses under the equity method
2. Changes in fair value of
other debt investments
3.reclassification of
financial assets included in other
comprehensive income
4.Provision for credit
impairment of other debt investments
5.Cash flow hedge reserve
6.Balance arising from the
730651.63671532.18
translation of foreign currency
7.Other
Net of tax from other
comprehensive income attributable to
minority share holder
Total comprehensive income 85507133.71 85863923.87
Total comprehensive income
74312446.9973579862.33
attribute to shareholders of the parentcompany
Total comprehensive income
11194686.7212284061.54
attribute to minority shareholder
8、per share revenue ：
（1）basic per share revenue 0.10 0.10
（2）diluted per share revenue 0.10 0.10
Authorized representative：Wang Chunli Person in charge of accounting：Guan Ying
Head of accounting organization ：Cao Ling
4、Parents company profit statement
Monetary Unit: RMB Yuan
Items Semi-annual of 2023 Semi-annual of 2022
一、 operating income 11839311.03 382744.96
Less ： operating cost 170581.26 170581.26
Tax Add 174413.63 201808.38
Selling expenses
Administration expenses 3410680.07 2692234.13
Research and development
expenses
Financial expenses -5278290.51 -3565313.78
Including: Interest expenses
Interest income 5280177.21 3566419.69
Add：Other revenue 2308.28 12794.10
Investment revenue
150814.85（Losses are recorded as “－”）
Including: joint venture and
cooperative enterprise Investment
revenue
Derecognition of financial assetsamortized revenue （Losses arerecorded as“-”）
Exposure hedging revenue（Losses are recorded as “－”）
Changes in fair value
revenue （Losses are recorded as “－”）
Credit Less impairment
-600.00（Losses are recorded as“-”）
Assets Less impairment（Losses are recorded as“-”）
Assets disposal revenue（Losses are recorded as“-”）二、operating profit （Losses are
13515049.71895629.07recorded as“-”）
Add：Non-operating Income
Less ：Non-operating
5027.46
expenditure三、profit amounts （Losses are
13510022.25895629.07recorded as“-”）
Less ：income tax expenses四、Net profit （Net loss is presented as
13510022.25895629.07“－”）
（一）continuing operations Net
13510022.25895629.07
profit （Net loss is presented as “－”）
（二）discontinuing operations Net
profit （Net loss is presented as “－”）
五、Net of tax from Other
comprehensive income
（一）cannot reclassified to Lose
Other comprehensive revenue
1. Other comprehensive
income that cannot be reclassified into
the profit and loss
2. Other comprehensive
income that cannot to be transferred to
gains and losses under the equity
method
3.Other Instruments
investment Changes in fair value
4.enterprise Credit risk
Changes in fair value
5.Other
（二）Other comprehensive
income that will be reclassified into the
profit and loss
1. Other comprehensive
income that can be transferred to gains
and losses under the equity method
2. Changes in fair value of
other debt investments3.reclassification of
financial assets included in other
comprehensive income
4.Provision for credit
impairment of other debt investments
5.Cash flow hedge reserve
6.Balance arising from the
translation of foreign currency
7.Other
六、comprehensive revenue amounts 13510022.25 895629.07
七、per share revenue ：
（一）basic per share revenue
（二）diluted per share revenue
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
5、Consolidated cash flow statement
Monetary Unit: RMB Yuan
Items Semi-annual of 2023 Semi-annual of 2022
一、cash flow from operating activities：
Cash receipts from sale of good or
5564355172.386436340283.18
rendering of services
Net increase in customer deposits
and due to banks and other financial
institutions
Net increase in borrowing from
central bank
Net increase in borrowing from
Other financial institutions
Cash received for Insurance
premium
Net cash received from reinsurance
contracts
Net increase in deposits and
investments from policyholders
Cash received for Interest 、Fee
and commission
Net increase in borrowing from
banksNet cash increase under repurchase
agreements
Net increase received from securities
trading brokerage business
Tax refund receipts 3808897.99 6528639.35
Other cash receipts concerning
1023812040.531189579771.74
operating activities
Subtotal of cash flows from operating
6591976110.907632448694.27
activities
Cash paid for purchase of goods
5631656925.265809507082.18
and accepting services
Net increase in loans and advance
to customers
Net increase in deposit in the
central bank and due from banks and
other financial institutions
Cash paid for claims in Insurance
Contract
Net increase in Loans to banks and
other financial institutions
Cash paid for Interest 、Fee and
commission
cash paid for dividend for Policy
holders
Cash paid to and for employees 172318440.15 171460162.39
Taxes and fees paid 125238280.62 193319681.25
Other cash paid concerning
800112010.661632772177.88
operating activities
Subtotal of cash outflows from
6729325656.697807059103.70
operating activities
Net cash flows from operating activities -137349545.79 -174610409.43
2. cash flows from Investment
activities ：
Cash receipts from disinvestment 586103235.55 1153813406.52
Cash receipts from returns on
526196.09
investment
Net cash from disposal of fixed
assets、Intangible assets and other 31605.00 801506.00
Long-term assets
Net cash received by disposal of
subsidiaries and otherOther cash receipts concerning
Investment activities
Subtotal of cash flows from Investment
586134840.551155141108.61
activities
Cash paid for purchase and
construction of fixed assets、Intangible 43140379.93 15597520.36
assets and Other long-term assets
Cash paid by Investment 145000000.00 890099000.00
Net increase in the amount of
collateral loans
NET amount of cash paid by
subsidiaries and other operating units
Other cash related to Investment
activities
Subtotal of cash outflows from
188140379.93905696520.36
Investment activities
Net amount of cash flows generated by
397994460.62249444588.25
an Investment activity
三、The cash flow generated by the
financing activity：
Absorb the cash received by the
Investment
Including: The subsidiary absorbs
the cash received by Minority
Investment
Obtain the cash received by
1818217067.442725178991.98
borrowings
Receive Other cash in connection
with the financing activity
Subtotal cash inflows from fund-raising
1818217067.442725178991.98
activities
Cash paid to repay a debt 1331768577.44 2466903503.77
The distribution of dividends
47016149.4330461365.20
profit or cash payments for Interest
Including: The subsidiary pays
Minority's dividends profit
Payment of Other cash in
574077.78
connection with the financing activity
Subtotal cash outflows from
1379358804.652497364868.97
fund-raising activities
Net amount of cash flows arising from 438858262.79 227814123.01financing activities
四、The effect of exchange rate
movements on cash and cash 724617.12 1311859.12
equivalents
五、Net add for cash and cash
700227794.74303960160.95
equivalents
Add：Cash and cash equivalents
551439110.07506928810.69
balance at the beginning of the period
六、Cash and cash equivalents balance
1251666904.81810888971.64
at the end of the period
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
6、Parents company cash flow statement
Monetary Unit: RMB Yuan
Items Semi-annual of 2023 Semi-annual of 2022
一、Cash flow from operating activities：
Cash received for Selling goods or
12124704.99
services
Tax refunds received 395429.81
Receive Other cash related to
5610597.0626066599.79
operating activities
Subtotal cash inflows from operating
17735302.0526462029.60
activities
Cash paid for goods and services
Cash paid to and for employees 1499566.85 948373.99
Tax fees paid 324239.47 165632.57
Payment of Other cash in
164251396.8211489917.93
connection with operating activities
Subtotal cash outflows from operating
166075203.1412603924.49
activities
NET amount of cash flow generated by
-148339901.0913858105.11
operating activities
二、Cash flows from Investment
activities：
Take Back the cash received by the
Investment
Cash received from Investment
150150814.85
revenueNET amount of cash recovered
from disposal fixed assets Intangible 800.00
assets and Other Long-term assets
NET amount of cash received by
disposal and other operating units
Receive Other cash related to
Investment activities
Subtotal of cash inflows from
150151614.85
Investment activities
Cash paid for fixed assets
Intangible assets and other long-term 459058.44
assets
Cash paid by Investment 8000000.00
NET amount of cash paid by
subsidiaries and other operating units
Other cash related to Investment
activities
Subtotal of cash outflows from
459058.448000000.00
Investment activities
Net amount of cash flows generated by
149692556.41-8000000.00
an Investment activity
三、The cash flow generated by the
financing activity：
Absorb the cash received by the
Investment
Obtain the cash received by
borrowings
Receive Other cash in connection
with the financing activity
Subtotal cash inflows from fund-raising
activities
Cash paid to repay a debt
The distribution of dividends
profit or cash payments for Interest
Payment of Other cash in
connection with the financing activity
Subtotal cash outflows from
fund-raising activities
Net amount of cash flows arising from
financing activities
四、The effect of exchange ratemovements on cash and cash
equivalents
五、Net add for cash and cash
1352655.325858105.11
equivalents
Add：Cash and cash equivalents
15852894.211533187.04
balance at the beginning of the period
六、Cash and cash equivalents balance
17205549.537391292.15
at the end of the period
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
7、Consolidated Statement of changes in Equity
Current amount
Monetary Unit: RMB Yuan
Semi-annual of 2023
attributed to Parents company Total owner’sequity
Other equity
Total
instrument
Items Otherco
Less ： general Undistri Minorit owner’s
Capital Perpet Capital mprehen special Surplus
preferr Treasury risk butedpr Other Subtotal
y equity equity
stock ual reserves sive reserves reserves
ed Other stock reserves ofit
Total
capital revenue
stock
bonds
7269534627
一、Balance at the 167867 100572 122122 532904 306166 401048
0251.09847.
end of last year 8350.95 0.50 436.98 675.62 1435.05 412.23
0028
Add: change
in accounting
policy
Pre-error
correction
Enterprise
consolidation under
the same control
Other
二、Balance at the 72695 34627
167867100572122122532904306166401048
beginning of the 0251. 09847.
8350.950.50436.98675.621435.05412.23
year 00 28
三、In the current
period the change 730651. 735817 743124 111946 85507
amount of Less 63 95.36 46.99 86.72 133.71
shall be added(Less shall be filledin with”-”
number)
（一）
730651.73581774312411194685507
comprehensive
6395.3646.9986.72133.71
revenue amounts
（二）Total owner's
investment and
Less
1．Total owner's
investments in
common stock
2．Other equity
instrument holders
invest capital
3．Share payments
are included in the
Total owner' equity
amount
4．Other
（三）Profit
allocation
1．Surplus reserves
2．General risk
reserves
3．The distribution
of Total owner's (or
shareholders)
4．Other
（四）Total Owner'
equity internal
carryover
1．Capital reserves
to increase Capital
(or Capital stock)
2．Surplus reserves
turn to Capital
stock
3．Surplus reserves
4．Set up benefit
plan changes to
carry forwardretained revenue
5．Other
comprehensive
revenue carryover
of retained revenue
6．Other
（五）special
reserves
1．Withdraw during
the period
2.Usage during the
period
（六）Other
四、The balance at 72695 35482
167867173637122122606486313597412243
the end of the 0251. 16980.
8350.952.13436.98470.983882.04098.95
current period 00 99
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
The amount of the preceding period
Monetary Unit: RMB Yuan
Semi-annual of 2022
attributed to Parents company Total owner’sequity
Other equity
Total
instrument
Items Otherco
Less ： general Undistri Minority owner’se
Capital Perpet Capital mprehe special Surplus
Treasur risk butedpr Other Subtotal equity quity prefer
stock ual reserves nsive reserves reserves
red Other y stock reserves ofit
Total
capital revenue
stock
bonds
726951675929158
一、Balance at the -68228 122122 391493 396351 331215
0251.18350.02291.
end of last year 2.22 436.98 534.34 501.50 3792.55
009505
Add: change
in accounting
policy
Add: change
in accounting
policy
Enterprise
consolidation
under the same
controlOther
二、Balance at the 72695 16759 29158
-68228122122391493396351331215
beginning of the 0251. 18350. 02291.
2.22436.98534.34501.503792.55
year 00 95 05
三、In the current
period the change
amount of Less
67153272908373579122840858639
shall be added.1830.15862.3361.5423.87
(Less shall befilled in with”-”
number)
（一）
67153272908373579122840858639
comprehensive.1830.15862.3361.5423.87
revenue amounts
（二）Total
owner's investment
and Less
1．Total owner's
investments in
common stock
2．Other equity
instrument holders
invest capital
3．Share payments
are included in the
Total owner'
sequity amount
4．Other
（三）Profit
allocation
1．Surplus reserves
2．General risk
reserves
3．The distribution
of Total owner's
(or shareholders)
4．Other
（四）Total Owner'
sequity internal
carryover
1．Capital reserves
to increase Capital(or Capital stock)
2．Surplus reserves
turn to Capital
stock
3．Surplus reserves
4．Set up benefit
plan changes to
carry forward
retained revenue
5．Othercompreh
ensive revenue
carryover of
retained revenue
6．Other
（五）special
reserves
1．This period
2．Used in this
period
（六）Other
四、The balance at 72695 16759 29893
-10750.122122464401408635339801
the end of the 0251. 18350. 82153.
04436.98864.49563.047716.42
current period 00 95 38
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
8、Parents company Total owner’s equity change statement
Amount of the current period
Monetary Unit: RMB Yuan
Semi-annual of 2023
Other equity instrument
Less ： Othercom Undistri Total
Items Capital preferr Perpetual Capital special Surplus
Treasury prehensive butedpro Other owner’sequit
stock ed capital Other reserves reserves reserves
stock revenue fit y Total
stock bonds
一、Balance at the 726950 2382994900 1094870 -239475 297995623
end of last year 251.00 .84 64.39 977.89 8.34
Add: change in
accounting policy
Pre-error
correctionOther
二、Balance at the
72695023829949001094870-239475297995623
beginning of the
251.00.8464.39977.898.34
year
三、In the current
period the change
amount of Less shall 135100 13510022.2
be added (Less shall 22.25 5be filled in with”-”
number)
（一）
13510013510022.2
comprehensive
22.255
revenue amounts
（二）Total owner's
investment and Less
1．Total owner's
investments in
common stock
2．Other equity
instrument holders
invest capital
3．Share payments
are included in the
Total owner' s
equity amount
4．Other
（三）Profit
allocation
1．Surplus reserves
2．The distribution
of Total owner's (or
shareholders)
3．Other
（四）Total owner's
equity
1．Capital reserves
to increase Capital
(or Capital stock)
2．Surplus reserves
turn to Capital stock
3．Surplus reserves
4．Set up benefitplan changes to
carry forward
retained revenue
5．Other
comprehensive
revenue carryover of
retained revenue
6．Other
（五）special
reserves
1．This period
2．Used in this
period
（六）Other
四、The balance at
72695023829949001094870-225965299346626
the end of the
251.00.8464.39955.640.59
current period
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao Ling
The amount of the preceding period Monetary Unit: RMB Yuan
Semi-annual of 2022
Other equity instrument
Less ： Othercomp Total
Items Capital Perpetual Capital special Surplus Undistribut
preferred Ot Treasury rehensive Other owner’sequity
stock capital reserves reserves reserves edprofit
stock her stock revenue Total
bonds
一、Balance at the 726950 2380234 1094870 -40880946
2807862747.73
end of last year 251.00 900.84 64.39 8.50
Add: change in
accounting policy
Pre-error
correction
Other
二、Balance at the
72695023802341094870-40880946
beginning of the 2807862747.73
251.00900.8464.398.50
year
三、In the current
period the change
895629.07895629.07
amount of Less
shall be added(Less shall befilled in with”-”
number)
（一）
comprehensive 895629.07 895629.07
revenue amounts
（二）Total
owner's investment
and Less
1．Total owner's
investments in
common stock
2．Other equity
instrument holders
invest capital
3．Share payments
are included in the
Total owner'
sequity amount
4．Other
（三）Profit
allocation
1．Surplus reserves
2．The distribution
of Total owner's
(or shareholders)
3．Other
（四）Total Owner'
sequity internal
carryover
1．Capital reserves
to increase Capital
(or Capital stock)
2．Surplus reserves
turn to Capital
stock
3．Surplus reserves
4．Set up benefit
plan changes to
carry forward
retained revenue
5．Othercomprehensive
revenue carryover
of retained revenue
6．Other
（五）special
reserves
1．This period
2．Used in this
period
（六）Other
四、The balance at
72695023802341094870-40791383
the end of the 2808758376.80
251.00900.8464.399.43
current period
Authorized representative ： Wang Chunli Person in charge of accounting ： Guan Ying
Head of accounting organization ：Cao LingHainan Jingliang Holdings Co. Ltd.Notes to the Semi-Annual of 2023 Financial Statements
(Unless otherwise stated the amount unit is RMB Yuan)
I. Basic Information of the Company
1. Place of incorporation form of organization and head office address
Hainan Jingliang Holdings Co. Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang
Holdings") is established in accordance with the Hainan Provincial People's Government General Office QFBH
(1992) No.1 approved by QY (1992) SGZ No. 6 Document of the People's Bank of Hainan Province and
re-registered by Hainan Pearl River Enterprise Company on January 11 1992. The Company issued 81880000
shares in total upon re-registration of which 60793600 shares were converted from the net assets of the original
company and 21086400 shares were newly issued. And the name of the Company is Hainan Pearl River Enterprise
Co. Ltd. The business license registration number of the joint-stock company is 20128455-6 and the holding parent
company Guangzhou Pearl River Enterprise Group holds 36393600 shares accounting for 44.45%. Approved by
ZGB (1992) No. 83 Document of the People's Bank of China in December 1992 the additional 21086400 shares
were listed on the Shenzhen Stock Exchange for trading. The industry involved is real estate.On March 25 1993 in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and
SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of the People's Bank of China the Company
increased its share capital by converting the original share capital into 139196000 shares (according to distribution
of 10 delivery of 5 and transfer of 2) with the controlling shareholder Guangzhou Pearl River Enterprises Group
holding 48969120 shares accounting for 35.18% at the end of 1993.In 1994 the share capital was increased by 10 to 10 and the total share capital was 278392000 shares after the
increase. The controlling shareholder Guangzhou Pearl River Enterprises Group holds 97938240 shares
accounting for 35.18%.In 1995 the issuance of 50000000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12.The share capital of the Company was increased by 10:1.5 on the basis of the share capital after the additional B
shares were issued and the share capital of the Company after the increase was 377650800 shares. The holding
parent company Guangzhou Pearl River Enterprises Group held 112628976 shares accounting for 29.82% of the
total.In 1999 Guangzhou Pearl River Enterprises Group transferred all 112628976 shares to Beijing Wanfa Real
Estate Development Co. Ltd.. After the transfer of shares was completed in June 1999 Beijing Wanfa Real Estate
Development Co. Ltd. held 112628976 shares of the Company accounting for 29.82% of the total shares of the
Company and became the controlling shareholder of the Company.On January 10 2000 the name of the Company was changed to Hainan Pearl River Holding Co. Ltd. and the
Business License for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau 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 RMB685790364.00. 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 Capital Agricultural Food Group Co. Ltd. (Beijing
Capital Agricultural 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 June 30th 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: Wang Chunli.
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 agricultural and sideline products vegetable proteins and their products
organic fertilizers microbial fertilizers production and marketing of agricultural fertilizers; land consolidation soil
remediation; agricultural comprehensive planting development animal husbandry and aquaculture agricultural
equipment production and marketing; computer network technology investment in communication projects
research and development and application of high-tech products; investment and consultation of environmental
protection projects; animation graphic design; import and export trade in goods and technology; rental of own
premises.The Company and its subsidiaries are principally engaged in the processing production sales and trading 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 Agricultural Food Group Co. Ltd.
4. The approval institution and the approval date of the financial statements.
These financial statements have been approved and reported by the Board of Directors of the Company in its
resolution date on August 23rd 2023.
5. Operation Duration
From March 22nd 1998 to September 20th 2025.6. Consolidation scope
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 June 30th 2023
please refer to note 7 Change of Consolidation Scope.II. Preparation Basis for Financial Statements
1.Preparation Basis
Based on the assumption of going concern and according to actual transaction events the financial statements
are prepared in accordance with the relevant provisions of Accounting Standard for Business Enterprises and the
following stated Significant Accounting Policies and Estimates.
2. Going concern
The Company has a going concern capability for 12 months from the end of the reporting period and no
material matters affecting the company's going concern capability were found. Therefore the financial statements
are presented on a going concern basis is reasonable.III. Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing production sales and trading of foodstuff
agricultural and sideline products grease oil and leisure food. According to the characteristics of actual
production and operation and the provisions of relevant accounting standards for business enterprises the
Company and its subsidiaries have formulated a number of specific accounting policies and accounting estimates
for transactions and events such as revenue recognition. For details please refer to the descriptions in Note Ⅲ 26
Revenue. For descriptions of the significant accounting judgments and estimates made by the 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 and disclosure
requirements in Notice on Matters Related to the Implementation of the New Accounting Standards for Enterprisesby 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 be included in
the profits and losses of the current period when they are incurred.(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties
before and after the merger the enterprise merger is not under the same control. In case of business combination
under different control the party that obtains control of other enterprises participating in the combination on the date
of purchase shall be the Purchaser and the other enterprises participating in the combination shall be the Purchasee.Purchase date means the date on which the Purchaser actually acquires control of the Purchasee.For business combination under different control the merger cost includes the assets liabilities and fair value
of equity securities issued by the Purchaser in order to obtain the control over the Purchasee on the date of purchase
and the intermediary fees such as audit legal service appraisal and consultation and other management fees for the
enterprise merger are used to record into the profits and losses of the current period when incurred. The transaction
costs of equity or debt securities issued by the Purchaser as a merger consideration are included in the initial
recognition amount of the equity or debt securities. Contingent consideration involved shall be included in the
consolidation cost at its fair value at the purchase date and the consolidation goodwill shall be adjusted accordingly
if new or further evidence of the existence of circumstances at the purchase date appears within 12 months after the
purchase date and the adjustment or consideration is required. The consolidation cost incurred by the Purchaser and
the identifiable net assets acquired during the consolidation are measured at the fair value at the date of purchase.The difference between the merger costs and the fair value shares of the identifiable net assets of the Purchasee at
the purchase date obtained in the merger is recognized as goodwill. If the combined cost is less than the fair value of
the identifiable net assets of the Purchasee in the merger first the fair value of the identifiable assets liabilities and
contingent liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked. If the
consolidation cost is still smaller than the fair value share of the identifiable net assets of the Purchased obtained in
the consolidation after the re-check the difference shall be recorded into the profits and losses of the current period.When the Purchaser acquires the deductible temporary difference of the Purchasee if it fails to recognize the
deferred income tax assets on the date of purchase because it does not meet the recognition conditions for the
deferred income tax and within 12 months of the date of purchase new or further information is obtained indicating
that the relevant circumstances at the purchase date already exist and the economic benefits from the temporary
difference deductible by the purchaser on the purchase date are expected to be realized the relevant deferred income
tax assets shall be recognized and the goodwill shall be reduced. If the goodwill is not sufficiently offset the
difference shall be recognized as the current profit or loss; In addition to the above circumstances the deferred
income tax assets related to the enterprise merger are recognized and included in the current profits and losses.Through multi-transaction and step-by-step business combination under different control according to the
Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for Business
Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business Enterprises
No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 5 (2) of Note 3) it isdetermined 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.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 openingamount of the consolidated balance sheet is not adjusted. The operating results and cash flows of subsidiaries
increased by consolidation after purchase have been properly included in the consolidated income statement and
consolidated cash flow statement and the opening and comparative amounts in the consolidated financial
statements have not been adjusted for subsidiaries that are not under the same control. The operating results and
cash flows of the subsidiaries increased by consolidation under the same control from the beginning of the
consolidation period to the consolidation date have been appropriately included in the consolidated profit statement
and consolidated cash flow statement and the comparative amount of the consolidated financial statements has been
adjusted at the same time.In the preparation of the consolidated financial statements if the accounting policies or accounting periods
adopted by the subsidiaries are inconsistent with those adopted by the Company necessary adjustments shall be
made to the financial statements of the subsidiaries in accordance with the accounting policies and accounting
periods of the Company. For subsidiaries acquired through business combination under different control the
financial statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of purchase.All significant transaction balances transactions and unrealized profits within the Company are offset at the
time of preparation of the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the
Company for the current period are separately presented as minority shareholders' equity and minority shareholders'
profit or loss in the consolidated financial statements under shareholders' equity and net profit. The shares of
minority shareholders' equity in the net profits and losses of subsidiaries for the current period are shown as
"minority shareholders' profits and losses" under the net profit item in the consolidated income statement. Losses
shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders' equity
of the subsidiary at the beginning of the period and still decrease by a number of shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the purchase
date according to the original shareholding proportion shall be included in the investment income of the current
period of loss of control. Other comprehensive income related to the equity investment of the original subsidiary in
the event of loss of control the accounting treatment is performed on the same basis as the direct disposal of the
relevant assets or liabilities by the Purchased (i.e. converted to current investment income except for changes
resulting from the re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the original
subsidiary). Thereafter the residual equity shall be subsequently measured in accordance with the relevant
provisions of Accounting Standards for Business Enterprises No.2-Long-term Equity Investment or Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments as detailed inNote 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:
Ⅲ These transactions were entered into simultaneously or taking into account each other's influence; Ⅲ Only when
these transactions are taken together can a complete business result be achieved; Ⅲ The occurrence of one
transaction depends on the occurrence of at least one other transaction; Ⅲ It is not economical to consider a
transaction alone but it is economical to consider it in conjunction with other transactions. For transactions that are
not part of the package deal each transaction shall be accounted for in accordance with the principles applicable to
the "partial disposal of long-term equity investments in subsidiaries without loss of control" (as detailed in 13 of
Note Ⅲ) and the "loss of control over existing subsidiaries as a result of the disposal of part of the equity investments
or other reasons" (as detailed in the preceding paragraph) as appropriate. If the transactions involving the disposal
of equity investments in subsidiaries until the loss of control belong to a package deal the transactions shall be
accounted for as a transaction involving the disposal of subsidiaries and the loss of control; However the difference
between each disposal price and the share of the subsidiary's net assets corresponding to the disposal investment
prior to the loss of control is recognized in the consolidated financial statements as other consolidated gains and
transferred to the profit or loss for the current period of loss of control in the event of loss of control.
6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The
Company divides the joint venture arrangement into joint 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 operationaccording 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.
(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: Ⅲ 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; Ⅲ 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); Ⅲ 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 be calculated and listed according to the converted
profits distribution items; The difference between the converted asset items and the total amount of the liability
items and shareholders' equity items shall be recognized as other comprehensive income as the translation
difference in the foreign currency statements. In case of disposal of overseas operations and loss of control the
balance in translation of the foreign currency statements related to the overseas operations as shown below in the
shareholders' equity items in the balance sheet shall be transferred to the profits and losses of the disposal period
in whole or in proportion to the disposal of the overseas operations.Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average
exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate
changes on cash shall be presented separately in the statement of cash flows as an reconciling item.Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the
prior-period financial statements.When disposing of all the owner's equity of the Company's overseas operations or losing the control over
overseas operations due to the disposal of part of the equity investment or for other reasons if the following itemsof 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 fair value
and whose changes are included in current profits and losses relevant transaction costs are directly included in
current profits and losses. For other types of financial assets relevant transaction costs are included in the initial
recognition amount. Accounts receivable or notes receivable arising from the sale of products or the provision of
labor services that do not contain or take into account significant financing components shall be initially
recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.* Financial assets measured at amortized cost
The Group measures financial assets at amortized 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 thecurrent 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 recognized based on effective interest method. The Company measures these
financial assets at fair value and their changes are included in other comprehensive income but impairment loss or
gain exchange gain or loss and interest income calculated according to the effective interest rate method are
included into the current profit and loss.In addition the Company designates some non tradable equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company shall record the
relevant dividend income of such financial assets into the current profits and losses and the change of fair value
into other comprehensive income. When the financial asset is derecognized the accumulated gains or losses
previously included in other comprehensive income will be transferred from other comprehensive income to
retained income and will not be included in current profits and losses.* Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured
at fair value with changes included in other comprehensive income into financial assets measured at fair value
with changes included in current profits and losses. In addition during initial recognition in order to eliminate or
significantly reduce accounting mismatch the Company designated part of financial assets as financial assets
measured at fair value with changes included in current profit and loss. For such financial assets the Company
adopts fair value for subsequent measurement and the changes in fair value are included into the current profit
and loss.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair
value and whose changes are included in current profits and losses and other financial liabilities. For the financial
liabilities measured at fair value with the changes included into the current profits and losses the relevant
transaction costs are directly included into the current profits and losses and the relevant transaction costs of other
financial liabilities are included in the initial recognition amount.* Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value with changes included in current profits and losses which include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilitiesdesignated 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: Ⅲ The termination of the
contractual right to receive cash flow from the financial asset. Ⅲ The financial asset has been transferred and
almost all risks and rewards related to the ownership of the financial asset have been transferred to the transferee.Ⅲ 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 ofthe transferred financial assets shall be apportioned according to its relative fair value between the derecognized
part and the non-derecognized part and the difference between the sum of the consideration received due to the
transfer and the accumulated change in fair value originally included in other comprehensive income that shall be
apportioned to the derecognized part and the allocated aforesaid book amount shall be included into the current
profits and losses.For financial assets sold by the Company with recourse or for endorsement and transfer of held financial
assets it is necessary to determine whether almost all risks and rewards in the ownership of the financial assets
have been transferred. If almost all risks and rewards in the ownership of the financial asset have been transferred
to the transferee the recognition of the financial asset shall be terminated. If almost all risks and rewards on the
ownership of a financial asset are retained the recognition of the financial asset shall not be terminated. If almost
all risks and rewards related to the ownership of financial assets have not been transferred or retained it shall
continue to judge whether the enterprise retains control over the assets and carry out accounting treatment
according to the principles mentioned in the preceding paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved the Company terminates
the recognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an
agreement to replace the original financial liabilities by assuming new financial liabilities. If the contract terms of
the new financial liabilities and the original financial liabilities are substantially different the original financial
liabilities shall be derecognized and a new financial liability shall be recognized at the same time. If the Company
makes any substantial modification to the contract terms of the original financial liability (or part thereof) the
original financial liability shall be derecognized and a new financial liability shall be recognized in accordance
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 financialinstruments the Company adopts quotations in the active market to determine their fair values. Quoted price in
active market refers to the price easily obtained from exchanges brokers industry associations pricing service
agencies etc. on a regular basis and represents the price of market transactions actually occurred in fair trading. If
there is no active market for financial instruments the Company uses evaluation techniques to determine their fair
values. Evaluation techniques include reference to prices used in recent market transactions by parties familiar
with the situation and willing to trade reference to current fair values of other financial instruments that are
substantially the same discounting cash flow technique option pricing model etc. In valuation the Company
adopts valuation techniques that are applicable under current circumstances and are supported by sufficient
available data and other information selects input values that are consistent with the characteristics of assets or
liabilities considered by market participants in transactions related to assets or liabilities and gives priority to the
use of relevant observable input values as much as possible. If the relevant observable input value cannot be
obtained or it is not impracticable to obtain it the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets
after deducting all liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity
instruments by the Company are treated as changes in equity and transaction costs related to equity transactions
are deducted from equity. The Company does not recognize changes in the fair value of equity instruments.Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the
Company's equity instruments during their existence shall be treated as profit distribution.
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 reasonable estimate of the
change of default risk in the entire duration to determine whether the credit risk has increased significantly since
the initial recognition.Generally if the overdue period is more than 90 days the Company will consider that the credit risk of the
financial instrument has increased significantly unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.The Company will consider the following factors when evaluating whether the credit risk has increased
significantly
1） Whether there is any significant change in the actual or expected operating results of the debtor;
2） Whether there is any significant adverse change in the regulatory economic or technological
environment of the debtor;
3） Whether there is any significant change in the value of the collateral or the quality of the guarantee or
credit enhancement provided by the third party which are expected to reduce the economic motivation of the
debtor's repayment according to the time limit stipulated in the contract or affect the probability of default;
4） Whether there is any significant change in the expected performance and repayment behavior of the
debtor;
5） Whether there is any significant change in the Company's credit management methods for financial
instruments etc.On the balance sheet date if the Company judges that the financial instrument has only low credit risk theCompany assumes that the credit risk of the financial instrument has not increased significantly since the initial
recognition. If the default risk of a financial instrument is low the borrower's ability to perform its contractual
cash flow obligations in a short period of time is strong and even if there are adverse changes in the economic
situation and operating environment for a long period of time it may not necessarily reduce the borrower's ability
to perform its contractual cash obligations then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset the
financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial
assets includes the following observable information:
1） The issuer or debtor has major financial difficulties;
2） The debtor violates the contract such as default or overdue payment of interest or principal etc.;
3） The creditor gives concessions that the debtor will not make under any other circumstances due to
economic or contractual considerations related to the debtor's financial difficulties;
4） The debtor is likely to go bankrupt or undergo other financial restructuring;
5） The active market of the financial assets disappears due to the financial difficulties of the issuer or the
debtor;
6） Purchase or generate a financial asset at a substantial discount which reflects the fact that credit losses
have occurred.Credit impairment of financial assets may be caused by the combined action of multiple events but may not
be caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks such as:
Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or
arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment
obligation.In addition to the financial assets with individual credit risk assessment the Company divides the financial
assets into different groups based on the common risk characteristics. The common credit risk 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 assetsAt 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
ⅢNotes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount
equivalent to the entire duration. Based on the credit risk characteristics of bills receivable they are divided into
different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
According to the acceptor's credit risk classification it should be the same
Commercial acceptance bill
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 loss within
the next 12 months or the entire duration.In addition to the accounts receivable and other receivables that individually assess credit risk they are
divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Aging portfolio
Portfolio 2 A portfolio of receivables between the ultimate controller and its subordinate units
The portfolio of public maintenance funds and house sales funds deposited in the housing
Portfolio 3
provident fund management center
Portfolio 4 Deposit/margin portfolio
Portfolio 5 The portfolio of reserve fund ledger formed by the Company's staff loan
The accrual method of bad debt reserves for different portfolios:
Item Accrual method
According to the accrual proportion
Aging portfolio
corresponding to the aging periodItem Accrual method
Portfolio of receivables between the ultimate controlling party Referring to the historical credit loss experience
and its subordinate units combined with the current situation and the
The portfolio of public maintenance funds and house sales forecast of future economic conditions the
funds deposited into the MPF Management Center expected credit loss is calculated through the
Deposit/margin portfolio default risk exposure and the expected credit
loss rate within the next 12 months or the entire
The portfolio of reserve fund ledger formed by the Company's duration and the expected credit loss rate of the
staff loan. 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 of
Expected loss rate of Expected loss rate of
Aging accounts receivable
notes receivable (%) other receivables (%)
(%)
Accounts receivable between the final
000
controlling party and its subordinate
Public maintenance fund and house sale fund
000
deposited into MPF Management Center
Deposit/margin 0 0 0
The reserve fund ledger formed by the
000
Company's staff loan.
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials work in progress finished goods in transit materials inventory
goods reserve tanker storage commissioned processing and manufacturing consignment etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs processing costs and other
expenditures. The actual cost of inventories upon delivery is calculated using the weighted average method.
(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserveNet 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 obtained confirmed purchase
commitment; the sale is scheduled to be completed within one year. Among them a Disposal Portfolio refers to a
group of assets that will be disposed of as a whole through sale or other approaches in a transaction and the
liabilities directly associated with these assets transferred along with the assets in transaction. If the portfolio of
assets or group of portfolios of assets is allocated goodwill acquired in business merger in accordance with
Accounting Standards for Business Enterprises No. 8 - Asset Impairment the Disposal Portfolio shall include the
goodwill allocated to it.In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated as
held-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset or
to-be-disposed portfolio is initially measured or measured on the balance sheet date the book value shall be to thenet amount of fair value minus sales expenses and the written-down amount shall be recognized as asset
impairment loss and included in current period profit or loss. The provision for impairment loss of the
held-for-sale asset shall be accrued. For a Disposal Portfolio the confirmed impairment loss shall deduct the book
value of the goodwill in the Disposal Portfolio then deduct the book value of the non-current assets determined
by the measurement on a pro-rata basis in accordance with the applicable Accounting Standards for Business
Enterprises No. 42 held-for-sale non-current assets Disposal Portfolio and Termination of Operations
(hereinafter referred to as the “Guide for Held-For-Sale”). In the event of an increase of the book value of the
held-for-sale Disposal Portfolio minus sales expenses on the subsequent the balance sheet date the amount
previously written down shall be recovered and be reversed within the mount of the asset impairment loss
recognized in the non-current assets measured by the measurement “Guide for Held-For-Sale” after being
classified as held for sale asset the reversal amount shall be included in the current period profit or loss and the
book value of all non-current assets (except for goodwill) determined by the measurement on a pro-rata basis in
accordance with the applicable “Guide for Held-For-Sale” shall be increased on a pro-rata basis. The book value
of the goodwill that has been deducted and the impairment loss of the assets recognized before the classification
of the held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall not be
reversed.In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio there is no accrual
or amortization for depreciation and the interest from and other expenses from the liabilities in held-for-sale
Disposal Portfolio shall still be recognized.When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category
non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or
the non-current asset will be removed from the Held-For-Sale Disposal Portfolio and be measured based on one
of the following two values whichever is lower: (1) The book value before being classified as held-for-sale
category adjusted based on the depreciation amortization or impairment that should have be confirmed if it is not
classified as held-for-sale category; (2) recoverable amount.
13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the
Company has control joint control or significant influence on the invested entity. The long-term equity investment
of the Company that does not have control joint control or significant impact on the investee shall be accounted
as a financial asset measured at fair value with its changes included into the current profits and losses. Among
them if it is non-transactional the Company may choose to designate it as a financial asset measured at fair value
and its changes are included in the accounting of other comprehensive income at the time of initial recognition.For details of its accounting policies please refer to Note Ⅲ 9 “Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement inaccordance with relevant agreements and relevant activities of the arrangement can only be decided based on the
consensus of all parties sharing the control rights before making a decision. Significant Influence refers to power
of the Company to participate in the decision-making of the financial and operating policies of the investee but
the Company cannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control the
apportioned share of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of
the long-term equity investment and the cash paid the non-cash assets transferred and the book value of the debts
assumed; if the capital reserve is insufficient for offsetting the retained earnings shall be adjusted. Where the
equity securities are issued as merger consideration the apportioned share of the book value in the final
controller's consolidated financial statements on the combination date in accordance with the shareholders' equity
shall be the initial investment cost of the long-term equity investment and the total par value of the issued shares
is taken as the share capital. The capital reserve shall be adjusted subject to the difference between the initial
investment cost of the long-term equity investment and the total par value of the shares issued; if the capital
reserve is insufficient for offsetting the retained earnings shall be adjusted. Where the equity of combined parties
under the same control is obtained through multiple transactions and a business combination under the same
control is formed finally it shall be treated differentially based on whether it is a “package deal”: if it belongs to a
“package deal” all transactions will be treated as a transaction that obtains control. If it is not a “package deal”
the apportioned share of the book value in the final controller's consolidated financial statements on the
combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term
equity investment. The capital reserve shall be adjusted subject to the difference between the initial investment
cost of the long-term equity investment and the sum of the book value of long-term equity investment before
combination date and the book value of the new consideration for the new share on the combination date. If the
capital reserve is insufficient for offsetting the retained earnings shall be adjusted. The equity investments that are
held prior to the combination date and are recognized with equity recognized or as available-for-sale financial
asset as other comprehensive income will not be given accounting treatment for the moment.For a long-term equity investment obtained from a combination of businesses not under the same control the
initial investment cost of the long-term equity investment shall be based on the combination cost on the purchase
date. The combination cost includes the assets paid by purchaser the liabilities incurred or assumed and the sum
of the fair value of issued equity securities. Where the equity of combined parties not under the same control is
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” alltransactions will be treated as a transaction that obtains control. If it is not a “package deal” the initial investment
cost of the long-term equity investment calculated by the cost method shall be calculated based on the sum of the
book value of the equity investment in the original holder and the new investment cost. The original shareholding
that measured using equity method the relevant other comprehensive income does temporarily not conduct
accounting treatment.Intermediary expenses such as for auditing legal services assessment and other related expenses incurred by
a combining party or a purchaser for business combination shall be recognized in current period profit or loss
when incurred.The equity investments other than formed by business combination shall be initially measured at cost. The
cost will be determined based on the following amount according to different methods of the acquisition of
long-term equity investment: the purchase price in cash actually paid by the Company; the fair value of the equity
securities issued by the Company the value agreed in relevant investment contract or agreement; the fair value or
original book value of the assets exchanged in non-monetary asset exchange transaction; the fair value of the
long-term equity investment itself. Any expenses taxes and other necessary expenses directly related to the
acquisition of long-term equity investments shall also be included in the cost of investment. The cost of long-term
equity investment for the additional investment that can exert significant influence on investee or implement joint
control but does not constitute control shall be the sum of the fair value of the originally held equity investment
recognized in accordance with the Accounting Standards for Business Enterprises No.. 22 – Recognition and
Measurement of Financial Instruments and the cost for new investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control over the
invested entity (except for those constituting joint operators) or have significant impact on the invested entity. In
addition the company's financial statements use the Cost Method to account for long-term equity investments
which can control the long-term equity investment of the investee.a. Long-term equity investment based on Cost Method
When accounting with Cost Method long-term equity investment is priced at the initial investment cost and
the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the
actual payment at the time of obtaining investment or the cash dividends or profits included in the consideration
but not yet issued the current investment income shall be recognized according to the cash dividends or profits
declared by the investee.b. Long-term equity investment accounted for by Equity Method
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 thanthe fair value share of the identifiable net assets of the investee when investing the difference shall be included in
the current profit and loss and the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method the investment income and other comprehensive income are
recognized separately according to the shares of the net profit or loss and other comprehensive income that should
be enjoyed or shared and the book value of the long-term equity investment should be adjusted at the same time.The book value of long-term equity investment is reduced accordingly by calculating the share that should be
enjoyed according to the profit or cash dividend declared by the investee. The book value of long-term equity
investment shall be adjusted and included in the capital reserve for other changes in the owner's rights and
interests of the invested entity other than the net profit and loss other comprehensive income and profit
distribution. When confirming the share of the net profit and loss of the investee the net profit of the investee
shall be adjusted and confirmed on the basis of the fair value of the identifiable assets of the investee at the time of
investment. If the accounting policies and periods adopted by the invested entity are inconsistent with the
Company the financial statements of the invested entity shall be adjusted in accordance with the accounting
policies and periods of the Company and the investment income and other comprehensive income shall be
confirmed accordingly. For the transactions between the Company and the associates and joint ventures the assets
invested or sold do not constitute a business and the unrealized gains and losses from internal transactions are
offset against the portion of the Company that is attributable to the proportion of the shares on this basis.investment profit and loss should be confirmed. However the unrealized internal transaction losses incurred by
the Company and the investee are not included in the impairment losses of the transferred assets. Where the assets
invested by the Company into a joint venture or an associates constitute a business if the investor obtains
long-term equity investment but does not control the fair value of the invested business shall be deemed as the
initial investment cost of the new long-term equity investment and the difference between the initial investment
cost and the book value of the invested business is fully recognized in the current profits and losses. If the assets
sold by the Company to a joint venture or an associate that constitute a business the difference between the
consideration value obtained and the book value of the business shall be fully recognized in the profits and losses
of the current period.When confirming the net loss that incurred by the investee should be shared the book value of the long-term
equity investment and other long-term equity that substantially constitutes the net investment of the investee are
reduced to zero. In addition if the Company has an obligation to bear additional losses to the investee the
estimated liabilities shall be recognized according to the estimated obligations and included in the current
investment losses. If the investee achieves net profit in the following period the Company shall resume
recognizing the share of income after making up for the unrecognized share of loss.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 investmentsrelated 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 thepreparation of consolidated financial statements” in Note Ⅲ.5 .For the disposal of long-term equity investment in other cases the difference between the book value of the
disposed equity and the actual acquisition price shall be included in the current profits and losses.If the long-term equity investment is accounted for by equity method the remaining equity after disposal is
still accounted for by equity method when disposing the other comprehensive income which were originally
included in shareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities
directly disposed of by the investee. The owner's equity recognized as a result of changes in the owner's equity of
the investee other than net profit or loss other comprehensive income and profit distribution it should be carried
forward to the current profit and loss
For the long-term equity investment accounted by Cost Method the remaining equity is still accounted by
Cost Method after disposal other comprehensive income that recognized by equity method accounting or
financial instrument recognition and measurement criteria accounting before obtaining control over the investee
shall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee and shall
be settled to the current profit and loss in proportion. Changes of the net assets of investee in the owner's equity
other than net profit or loss other comprehensive income and profit distribution 's that recognized by equity
method shall be settled to the current profit and loss in proportion.Where the Company loses control over the investee due to disposal of part of its equity investment when
preparing individual financial statements if the remaining equity after disposal can exercise joint control or exert
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 foraccording to the relevant provisions of the financial instrument recognition and measurement criteria and the
difference between the fair value and the book value on the date of loss of control. It is included in the current
profit and loss. Before the Company obtains control over the investee other comprehensive income recognized by
equity method accounting or financial instrument recognition and measurement criteria is used to directly dispose
of the relevant assets with the investee accounting treatment based on the same basis as the investee directly
disposes of related assets or liabilities when the control of the investee is lost Accounting is treated on the same
basis as the liabilities. Changes in the owner's equity other than net profit or loss other comprehensive income and
profit distribution of the investee's net assets recognized by the equity method are carried forward to the current
profit or loss when the control of the investee is lost. Among them the remaining equity after disposal is
accounted for using the equity method. Where the remaining equity after disposal is accounted for by equity
method other comprehensive income and other owner's equity should be settled by proportion. If the remaining
equity is accounted for using financial instrument recognition and measurement standard all of other
comprehensive income and other shareholder’s equity should be settled.If the Company loses its joint control or significant influence on the investee due to the disposal of part of the
equity investment the remaining equity after disposal shall be accounted for according to the financial instrument
recognition and measurement criteria and the difference between the fair value and the book value on the date of
loss of joint control or significant influence is recognized in the current profit or loss. The other comprehensive
income recognized in the original equity investment by the equity method is accounted for on the same basis as
the investee's direct disposal of related assets or liabilities when the equity method is terminated Owner's equity
recognized as a result of changes in other owners' equity other than net profit or loss other comprehensive income
and profit distribution of the investee should be transferred to current investment income when terminating the
equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions
until the loss of control. If the above-mentioned transactions are part of a package transaction the transactions are
treated as a transaction dealing with the equity investment of the subsidiary and losing control. The difference
between the book value of each long-term equity investment corresponding to the disposal price and the disposal
of the equity before loss of control is first recognized as other comprehensive income and when the control is lost
it is transferred to the current profit and loss of loss of control.
14．Investment Property
Investment Property refers to property held for the purpose of earning rent or capital appreciation or both
including land use rights that have been leased land use rights that are held and prepared for transfer after
appreciation and buildings that have been rented. Investment property is initially measured at cost. The expenses
related to investment property if the economic benefits related to this asset are highly probable to flow into the
company and the cost can be measured reliably then the expense will account for as the cost of investmentproperty. 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 Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods providing labor services
renting or operating management and having a service life of more than one fiscal year. Fixed assets are
recognized only when the economic benefits associated with them are likely to flow into the Company and their
costs can be reliably measured. Fixed assets are initially measured at cost and taking into account the impact of
projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following
the scheduled availability. The depreciation period estimated net residual value rate and annual depreciation rate
of each category of fixed assets are as follows:
Depreciation Depreciation Net residual Annual depreciation rate
Category
Method period (Year) rate(%) (%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
straight-line
Electronic equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Machinery equipment 5-28 4、5 3.39—19.20
depreciationstraight-line
Transport facility 5-10 4、5 9.50—19.20
depreciation
straight-line
Office equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Other equipment 5-28 4、5 3.39—19.20
depreciation
The estimated net residual value refers to the expected state after the estimated useful life of the fixed assets
has expired and is at the end of its useful life. The amount currently obtained by the Company from the disposal of
the assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets please refer to Note
Ⅲ. 21 Long-Term Asset Impairment.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an
asset and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased
asset at the expiration of the lease term the depreciation shall be calculated within the useful life of the leased
asset; If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term
depreciation shall be calculated within a relatively short period of the lease term and the service life of the leased
assets.
(5) Others
The subsequent expenses related to fixed assets if the economic benefits related to the fixed assets are likely
to flow in and their costs can be reliably measured are included in the cost of fixed assets and the book value of
the replaced part should be terminated. The subsequent expenditures other than mentioned as above are
recognized in profit or loss in the period in which they are incurred.The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic
benefits by using or disposal. The difference between the disposal income from the sale transfer retirement or
damage of the fixed assets less the carrying amount and related taxes is recognized in profit or loss for the current
period.The Company reviews the useful life estimated net residual value and depreciation method of fixed assets at
least at the end of the year and changes as an accounting estimate if changes occur.
16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure including various
project expenditures incurred during the construction period capitalized borrowing costs before the project
reaches the expected usable status and other related expenses. Construction in progress is carried forward to fixed
assets when it is ready for its intended use.For details of the impairment test method and impairment provision method for construction in progress
please refer to Note Ⅲ. 21 Long-Term Asset Impairment.
17. Borrowing Costs
Borrowing costs include interest on borrowings amortization of discounts or premiums ancillary expenses
and exchange differences arising from foreign currency borrowings. Borrowing costs directly attributable to the
acquisition construction or production of assets eligible for capitalization capitalization is began when asset
expenditures have occurred borrowing costs have occurred and the acquisition construction or production
activities necessary to bring the assets to the intended usable or saleable state have begun. And capitalization is
stopped when the assets under construction or production that meet the capitalization conditions are ready for their
intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in
which they are incurred.The interest expenses actually incurred in the current period of special borrowings shall be capitalized after
subtracting the interest income from the unused borrowing funds deposited into the bank or the investment income
obtained from the temporary investment. For the general borrowings according to the accumulated asset
expenditures exceed the special borrowings. The capitalization amount is determined by multiplying the weighted
average of which accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by
the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weighted
average interest rate of general borrowings.During the capitalization period the exchange differences of foreign currency special borrowings are all
capitalized; the exchange differences of foreign currency general borrowings are included in the current profit and
loss.Assets eligible for capitalization refer to assets such as fixed assets investment property and inventories that
require a substantial period of acquisition construction or production activities to achieve the intended use or sale
status.If the assets eligible for capitalization are interrupted abnormally during the acquisition construction or
production process and the interruption period lasts for more than 3 months the capitalization of the borrowing
costs shall be suspended until the acquisition construction or production of the assets resumes.
18. Right-of-use assets
Right-of use assests refer to the right of the Company as the lessee to use the leased assets during the term of
the lease.
(1) Initial measurement: At the commencement date of the lease the company recongnizes an initial
measurement of the right-of –use assets as cost not including the following four terms: Ⅲthe intitial measurement
amount of the lease liability; Ⅲthe lease payment on the lease date or before. If there is lease incentive the amountof lease incentive already enjoyed shall be deducted; Ⅲinitial direct expenses incurred by the lessee as is
incremental cost incurred in achieving the lease;ⅢThe cost to be expected which iccures for disassembling &
removing and recovering lease assets where is in the place or lease assets recovering to the state of lease term
agreed upon on shall be subject to the Accounting Standards for Business Enterprises No.1 – inventory.The company comfirms and mesearues the above as the the Accounting Standards for Business Enterprises
No.13- contingencies.
(2) Subsequent measurement: After the commencement date of the lease term if the company adopts the cost
model to carry out subsequent measurement of the right-of-use assets that is it is measured at cost less
accumulated depreciation and accumulated impairment losses; the company remeasured lease liabilities as the
lease regulations and adjust the book value of the right-of-use asset accordingly.With reference to the relevant depreciation provisions of Accounting Standards for Business Enterprises No.
4 - Fixed Assets the Company accrues depreciation for right-of-use assets. From the commencement date of the
lease term the Company accrues depreciation for the right-of-use asset. Right-of-use assets are generally
depreciated from the month in which the lease term begins. The accrued depreciation amount is included in the
cost of the relevant assets or the current profit and loss according to the purpose of the right-of-use asset. When
determining the depreciation method of the right-of-use asset the Company makes a decision based on the
expected consumption pattern of the economic benefits related to the right-of-use asset and depreciates the
right-of-use asset on a straight-line basis. When determining the depreciation period of the right-of-use asset the
company follows the following principles: if it can be reasonably determined that the ownership of the leased
asset will be obtained at the expiration of the lease term depreciation will be accrued within the remaining useful
life of the leased asset; If the asset is owned depreciation is accrued within the shorter of the lease term and the
remaining useful life of the leased asset.If the right-of-use asset is depreciated the company will carry out subsequent depreciation according to the
book value of right-of-use assets after deducting the impairment loss.The company has chosen not to recognize right-of-use assets and lease liabilities for short-term leases (leases
with a lease term of not more than 12 months) and low-value asset leases and has included the relevant lease
payments on a straight-line basis over each period of the lease term. Current profit and loss or related asset cost.Please refer to Note III 21-Long-term Assets Impairmen for the method of impairment test and provision for
impairment of right-of-use assets.
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 bemeasured reliably. However the intangible assets acquired through business combination not involving enterprises
under common control should be measured at fair value separately as intangible assets when their fair values can
be reliably measured.The acquired land use rights are usually accounted for as intangible assets. The related land use rights and
building construction costs of self-developed and constructed buildings are accounted for as intangible assets and
fixed assets respectively. In the case of purchased houses and buildings the relevant price is distributed between
the land use rights and the buildings. If it is difficult to allocate them reasonably all of them are treated as fixed
assets.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 theintangible assets and the ability to use or sell the intangible assets.e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.If it is impossible to distinguish the expenditures between research phase and development phase all research
and development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method please refer to Note Ⅲ. 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 goodwill amortized to the asset group or
portfolio and then deducted proportionally from the book value of other assets according to the proportion of the
book value of assets other than goodwill in the asset group or portfolio.Once the above asset impairment loss is confirmed it will not be reversed to the part where the value is
restored in the future period.
22. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration
Post-employment Benefits Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages bonuses allowances and subsidies employee
welfare fees medical insurance premiums maternity insurance premiums work injury insurance premiums
housing fund labor union funds employee education funds and non-monetary benefits. The Company recognizes
the actual short-term employee's remuneration as a liability in the accounting period in which employees provide
services to the Company and recognizes them in profit or loss or related asset costs. Non-monetary benefits are
measured at fair value.Post-employment Benefits mainly include basic retirement security unemployment insurance and annuities.The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a
Defined Contribution Plan is adopted the corresponding amount of the deposit shall be included in the relevant
asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability
based on a fixed fee paid to an independent fund and is included in the current profit and loss or related asset costs;
(2) The Defined Benefit Plan is accounted for using the expected cumulative benefits unit method Specifically the
Company will convert the welfare obligation arising from the Defined Benefit Plan into the final value of the
departure time according to the formula determined by the expected cumulative benefits unit method; then it is
attributed to the employee's in-service period and is included in the current profit and loss or related asset cost.If the labor relationship with the employee is terminated before the employee's labor contract expires or if
the 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-termemployee compensations.The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal
benefits. The company will pay the internal retired staff the salary and the social insurance premiums from the
employee's lay-off to normal retirement and will include in the current profit and loss (dismissal benefits) when
the conditions of the estimated liabilities are met.If the other long-term employee benefits provided by the Company to the employees are in line with the
Defined Contribution Plan they shall be accounted for Defined Contribution Plan and otherwise accounted for
the Defined Benefit Plan.
23. Lease liabilities
At the commencement date of the lease period the Group recognizes 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 recognizes 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 recognized 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 determinedto be received and the confirmed compensation amount does not exceed the book value of the estimated
liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more
than the expected economic benefit. If the contract to be executed becomes a loss contract and the obligation
arising from the loss contract satisfies the conditions for the recognition of the above-mentioned estimated
liabilities the portion of the contract's estimated loss that exceeds the recognized impairment loss (if any) of the
contracted asset is recognized as the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed formal and have been announced to the public the amount of the
estimated liabilities are determined based on the direct expenses related to the reorganization subject to the
recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of
business sold the obligation related to the reorganization is confirmed only when the company promises to sell
part of the business (that is when the binding sale agreement is signed).
25. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined
based on an equity instrument in order to obtain services from employees or other parties. Share-based Payments
include equity-settled share payment and cash-settled share payment.a) Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value of
the granting of employees' equity instruments at the grant date. If the fair value is vested in the completion of the
waiting period of service or the fulfillment of the required performance conditions during the waiting period the
amount of the fair value is calculated by the straight-line method into the relevant costs or expenses based on the
best estimate of the number of vesting equity instruments; Or If the vesting right is granted immediately after the
grant the calculation of the amount of the fair value is included in the relevant cost or expense on the grant date
and the capital reserve is increased accordingly.On each balance sheet date during the waiting period the Company makes the best estimate based on the
latest information on the changes in the number of employees with vesting rights and corrects the number of
equity instruments that are expected to be vested. The impact of the above estimates shall be included in the
current related costs or expenses and the capital reserve is adjusted accordingly.In the case of equity-settled share-based payments in exchange for other parties' services if the fair value of
other parties' services can be reliably measured the fair value of other services shall be measured at the fair valueon the date of acquisition; If the fair value of the other party's services cannot be measured reliably the fair value
shall be measured at the fair value of the equity instrument at the date the service is acquired and is included in
the relevant cost or expense which increases the shareholders' equity accordingly.b) Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company
based on shares or other equity instruments. If the vesting right is available immediately after the grant the
relevant costs or expenses shall be included on the date of grant and the liabilities shall be increased accordingly;
if vesting right is available after the service is completed within the waiting period or met the required
performance conditions based on the best estimate of the vesting rights on each balance sheet date of the waiting
period according to the fair value of the liabilities assumed by the company the services obtained in the current
period are included in the cost or expense and the liabilities are increased accordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the
settlement of the relevant liabilities and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan if the modification increases the fair value of the
equity instruments granted the increase in the fair value of the equity instruments is recognized accordingly. The
increase in the fair value of equity instruments refers to the difference between the fair value of the equity
instruments before and after the modification. If the modification reduces the total fair value of the share-based
payment or adopts other methods that are not conducive to the employee the service obtained shall continue to be
accounted for as if the change has never occurred unless the Company cancels some or all of equity instruments.During the waiting period if the granted equity instrument is cancelled the Company will cancel the granted
equity instrument as an accelerated exercise and the amount to be recognized in the remaining waiting period will
be immediately included in the current profit and loss and the capital reserve will be recognized. If the employee
or other party can choose to meet the non-vesting conditions but fails to meet the waiting period the Company
will treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or
Actual Controllers
In respect of the share-based payment transaction between the company and the shareholders or actual
controllers of the company. If one of the settlement enterprise and the service receiving enterprise is in the
company and the other is outside the company it shall be accounted for in the consolidated financial statements of
the company according to the following provisions:
a.) If the settlement enterprise settles with its own equity instrument the share-based payment transaction
shall be treated as equity-settled share-based payment; otherwise it shall be treated as a cash-settled share-basedpayment.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 the
settlememt 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 provided the
company adopts the output method or input method to determine the appropriate performance progress and
recognizes the revenue according to the performance progress in that period of time. On the balance sheet date
the 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 it shall be
recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if thecompany 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 amount of the subvention
receivable has been confirmed by the authorized government departments or can be reasonably calculatedaccording 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.
(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 be
measured at the applicable tax rates in the period in which the related assets are recovered or the related liabilities
are recovered in accordance with the tax laws.On the balance sheet date the book value of deferred income tax assets is reviewed. and the book value ofdeferred 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 the
straight-line method during each period of the lease period. The larger initial direct expenses are capitalized when
occurring and the profits and losses of the current period shall be recorded in stages on the same basis as the
recognized rental income during the whole lease period; the smaller initial direct expenses shall be recorded in theprofits 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 financial 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 financial 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: Ⅲ This component
represents an independent major business or a separate major business area. Ⅲ This component is part of an
associated plan to dispose of an independent major business or a separate major business area. Ⅲ This component
is a subsidiary company acquired specifically for resale.For the accounting treatment methods for termination of operations please refer to the relevant descriptionsin 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. Forthe hedges meeting the specified conditions the Company adopts the hedge accounting method for treatment. The
hedging of the Company is fair value hedging.At the beginning of hedging the Company formally designates hedging instruments and hedged items and
prepares written documents on hedging relationship and risk management strategy and risk management
objectives of the Company engaged in hedging. In addition the Company will continuously evaluate the
effectiveness of hedging at the beginning and after the hedging.Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions the profits or losses
arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the
non-trading equity instrument investment (or its components) that is measured at fair value and whose changes are
included in other comprehensive income the gains and losses generated by the hedging instrument are included in
other comprehensive income. The profit or loss of the hedged item due to the hedged risk exposure shall be
included into the current profits and losses and the book value of the hedged item shall be adjusted at the same
time. If the hedged item is measured at fair value the gain or loss of the hedged item due to the hedged risk does
not need to adjust the book value of the hedged item and the relevant gains and losses are included into the
current profits and losses or other comprehensive income.When the Company cancels the designation of the hedging relationship the hedging instrument has expired
or been sold the contract has been terminated or exercised or no longer 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 current and future
periods the number of impacts will be confirmed in the current and future periods of the change.On the balance sheet date the Company needs to judge estimate and assume the amount of financial
statement items in the following important areas:(1) Impairment of financial assets
The Company uses the expected credit loss model to evaluate the impairment of financial instruments. The
application of the expected credit loss model requires significant judgment and estimation and all reasonable and
basis information including forward-looking information shall be considered. In making these judgments and
estimates the Company deduces the expected changes in the debtor's credit risk based on historical data and
combined with economic policies macroeconomic indicators industry risks external market environment
technological environment changes in customer conditions and other factors.
(2) Inventory falling price reserves
According to the inventory accounting policy the Company measures according to the lower of cost and net
realizable value. For the inventory whose cost is higher than net realizable value and which is obsolete and
unsalable the Company makes provision for inventory falling price. Impairment of inventories to net realizable
value is based on the evaluation of the marketability of inventories and their net realizable value. The appraisal of
impairment of inventories requires the management to make judgment and estimation on the basis of obtaining
conclusive evidence and considering factors such as the purpose of holding inventories and the influence of events
after the balance sheet date. The difference between the actual result and the original estimate will affect the book
value of inventory and the accrual or reversal of inventory depreciation reserve during the period when the
estimate is changed.
(3) Provision for impairment of long-term assets
On the balance sheet date the Company judges whether there are signs of possible impairment for
non-current assets other than financial assets. For intangible assets with uncertain service life in addition to the
annual impairment test the impairment test is also carried out when there are signs of impairment. Other
non-current assets other than financial assets shall be tested for impairment when there are indications that their
book amounts are not recoverable.When the book value of an asset or asset group is higher than the recoverable amount that is the higher of
the net amount of the fair value minus the disposal expenses and the present value of the estimated future cash
flow it indicates that an impairment has occurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the sales
agreement price or observable market price of similar assets in fair transactions and deducting the incremental
cost directly attributable to the disposal of such assets.When estimating the present value of future cash flow it is necessary to make a significant judgment on the
output sales price related operating costs and the discount rate used in the calculation of the present value of the
asset (or asset group). In estimating the recoverable amount the Company will use all relevant information
available including forecasts of production selling price and related operating costs based on reasonable and
supportable assumptions.The Company shall test whether goodwill is impaired at least every year. This requires an estimate of the
present value of the future cash flows of the asset group or portfolio of asset groups to which goodwill has been
allocated. When predicting the present value of future cash flow the Company needs to predict the cash flow
generated by the future asset group or asset group portfolio and at the same time select the appropriate discount
rate to determine the present value of future cash flow.
(4) Depreciation and amortization
After considering the residual value of investment real estate fixed assets and intangible assets the Company
will accrue depreciation and amortization on a straight-line basis during their service lives. The Company reviews
the service life regularly to determine the amount of depreciation and amortization expenses to be included in
each reporting period. The service life is determined by the Company based on the past experience of similar
assets and in portfolio with the expected technological updates. If there is a significant change in previous
estimates the depreciation and amortization charges will be adjusted in the future.
(5) Deferred income tax assets
To the extent that there is likely to be sufficient taxable profits to offset the losses the Company recognizes
deferred income tax assets for all unused tax losses. This requires the Company's management to use a large
number of judgments to estimate the time and amount of future taxable profits combined with tax planning
strategies to determine the amount of deferred income tax assets to be recognized.
(6) Income tax
In the normal business activities of the Company there are certain uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be paid before tax requires the approval of the tax
authorities. If there is a difference between the final determination result of these tax matters and the amount
initially estimated the difference will have an impact on the current income tax and deferred income tax during
the final determination period.
(7) Accrued liabilities
According to the terms of the contract existing knowledge and historical experience the Company estimates
and makes corresponding provision for product quality assurance estimated contract losses liquidated damages
for delayed delivery etc. In the event that such contingencies have formed a current obligation and the
performance of the current obligations is likely to result in outflow of economic benefits from the Company the
Company recognizes the contingencies as estimated liabilities based on the best estimate of the expenditure
required to perform the relevant current obligations. The recognition and measurement of the estimated liabilities
depend to a large extent on the judgment of the management. In the process of judgment the Company needs to
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 maintenancecommitments provided to customers for the sale maintenance and renovation of the goods sold. The Company's
recent maintenance experience data have been taken into account when estimating liabilities but the recent
maintenance experience may not reflect the future maintenance situation. Any increase or decrease in this
provision may affect the profit and loss in the future years.
(8) Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. When
estimating the fair value of an asset or liability the Company adopts the available observable market data
available. If the first level input value cannot be obtained the Company will employ a qualified third-party
appraiser to perform the appraisal. The Company works closely with qualified external appraisers to determine the
appropriate valuation techniques and inputs to the relevant models
IV. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in
the current period the difference between the sales of goods
1%、3%、5%、6%、Value Added Tax taxable services and taxable services income calculated in
9%、10%、13%
accordance with the provisions of the Tax Law is the taxable
value-added tax.Urban Maintenance &
According to the actual value-added tax 7%、5%
Construction Tax
Extra charges of According to value added tax and consumption tax on the
3%
education funds basis of actual payment
Local Extra Charges of According to value added tax and consumption tax on the
2%
Education Funds basis of actual payment
25%、20%、17%、Corporate Taxes According to taxable income
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
20%
Development Co. Ltd.Jingliang (Singapore) International Trade Co. Ltd. 17%
Beijing Guchuan Bread Food Co. Ltd. 15%
2. Important preferential tax policies and basis
The level 3 subsidiary of the company Hangzhou Linan Little Angel Food Co. Ltd.is a welfare enterprise.Since May 2016 it has enjoyed the preferential VAT policy of immediate refund upon payment in Preferential
Value-Added Tax Policies for Promoting the Employment of Disabled Persons (CaiShui [2016] No.52).The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited according to
the document JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District Tangshanaffiliated to State Administration of Taxation and also followed the rules in Law of the People's Republic of
China on the Administration of Tax Collection The Implementation Guideline of Law of the People's Republic of
China on the Administration of Tax Collection the rice under the brand of Tixiang produced by Caofeidian
company if exempted from VAT.The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited according to
the rules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86 the rice under the brand
of Tixiang produced by Caofeidian company if exempted from Corporation tax.Beijing Guchuan Bread&Food Co. Ltd. a 3rd tier subsidiary of the Company is a high-tech enterprise. It
enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rate according to the relevant
provisions of both “Law of the People's Republic of China on Tax Collection and Administration” and “Rules forthe Implementation of the Tax Collection and Administration Law of the People's Republic of China”. It obtained
the certificate of high-tech enterprise No. GR202111000657 valid until September 14 2024.The level 3 subsidiary of the company Beijing Tianweikang oil and fat distribution center Co. Ltd. is
exempt from stamp tax on capital account books and purchase and sales contracts signed in the course of
undertaking commodity reserve business according to the announcement of the Ministry of Finance and the State
Administration of Taxation on the continuation of the preferential tax policies for some national commodity
reserves (No. 8 of 2022) issued by the Beijing Municipal Bureau of finance the State Administration of Taxation
and the Beijing Municipal Bureau of Taxation (Beijing Finance Tax [2022] No. 1230) Stamp tax payable by other
parties to the contract shall be collected according to regulations. The real estate and land used for self use by
undertaking commodity reserve business shall be exempted from real estate tax and urban land use tax. The notice
will be implemented from January 1 2022 to December 31 2023.The level 3 subsidiary of the company Jingliang (Singapore) International Trade Co. Ltd. is taxed according
to the principle of territoriality. According to Singapore's tax exemption policy the company can enjoy the
following tax exemption plan: for the first $10000 of taxable income deduct $7500; for the part between $10001
and $200000 deduct $95000; for the part exceeding $200001 the company will not be exempted. The company
will pay income tax at the rate of 17% based on the taxable income after tax exemption.The level 4 subsidiary of the company Hangzhou Linan Little Angel Food Co. Ltd. according to the
relevant provisions of the Notice on Enterprise Income Tax Preferential Policies for Employing Disabled Persons
(Cai Shui [2009] No. 70) issued by the Ministry of Finance and the State Administration of Taxation if an
enterprise arranges disabled persons it can deduct 100% of the salary paid to disabled employees based on the
actual deduction of the salary paid to them when calculating the taxable income.The level 3 subsidiary of the company Zhejiang Little Prince Food Co. Ltd. and the level 4 subsidiary of
the company Hangzhou Linan Little Angel Food Co. Ltd. according to the Zhejiang Provincial People's
Government Office Document No. 62 (2019) urban land use tax reduction and exemption policies that areuniformly implemented by taxpayers in the manufacturing industry throughout the province (including Ningbo
City) can be enjoyed. Before December 31 2022 urban land use tax reductions of 100% and 80% for Class A and
Class B enterprises can be enjoyed respectively. The maximum reduction limit is 100% of the urban land use tax
amount that the unit should pay in the current year 80%.The level 4 subsidiary of the company Linqing Little Prince Food Co. Ltd. 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 level 4 subsidiary of the company Liaoning Xiaowangzi Food Limited is subjected to the regulation
that 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 company level 4 subsidiary of the company Jingliang (Hebei) Oil Industry Co. Ltd. according to
Announcement No. 8 of 2022 issued by the Ministry of Finance and the State Administration of Taxation the
Ministry of Finance and the State Administration of Taxation on the Continuation of Tax Preferential Policies for
Some National Commodity Reserves and Notice No. 8 issued by Hebei Province on Organizing the Application
of Tax Exemption Qualification for Local Reserve Commodity Storage Enterprises is subjected to the regulation
that stamp duty is exempted on capital account books and stamp duty is exempted on purchase and sales contracts
signed during the process of undertaking commodity reserve business Stamp duty payable by other parties to the
contract shall be levied in accordance with regulations. Real estate tax and urban land use tax are exempted for the
self use of property and land that undertake commodity reserve business. The execution period of this notice is
from January 1 2022 to December 31 2023. Our fourth level subsidiary Jingliang (Hebei) Oil Industry Co. Ltd.has exempted the sales of government reserve edible vegetable oil from value-added tax in accordance with the
Notice of the Ministry of Finance and the State Administration of Taxation on the Levy and Exemption of Value
Added Tax for Grain Enterprises (Cai Shui Zi [1999] No. 198).The level 2 subsidiary of the company Jingliang (Beijing) Food Marketing Management Co. Ltd. and the
level 4 subsidiary of Linqing Little Prince Co. Ltd. according to Announcement No. 6 of 2023 of the Ministry of
Finance and the State Administration of Taxation on the Preferential Policies for Income Tax for Small and Micro
Enterprises and Individual Industrial and Commercial Households is subjected to the regulation that the portion
of the annual taxable income of small and micro profit enterprises that does not exceed 1 million yuan shall be
reduced by 25% and included in the taxable income and the enterprise income tax shall be paid at a 20% tax rate.The level 2 subsidiary of the company Jingliang (Beijing) Food Marketing Management Co. Ltd. the level4 subsidiary of Linqing Little Prince Co. Ltd. And the level 4 subsidiary of the company Hangzhou Lin'an
Chunmanyuan Agricultural Development Co. Ltd. are subject to the Announcement of the Ministry of Finance
and the State Administration of Taxation on Further Implementing the "Six Taxes and Two Fees" Reduction Policy
for Small and Micro Enterprises in this period issued by the Ministry of Finance and the State Administration of
Taxation in the form of Cai Shui [2022] No. 10. Our company meets the conditions for the recognition of small
and micro enterprises The preferential policies applicable for 2022 are as follows: "The people's governments of
provinces autonomous regions and municipalities directly under the central government shall determine based on
the actual situation of the local area and the needs of macroeconomic regulation and small-scale value-added tax
taxpayers small low-profit enterprises and individual industrial and commercial households can reduce their
capital tax urban maintenance and construction tax real estate tax urban land use tax and stamp tax (excluding
securities transaction stamp tax) within a 50% tax amount range Farmland occupation tax and education surcharge
local education surcharge.Ⅴ. Changes in accounting policies accounting estimates and explanation of corrections to previous
errors
1. Changes in accounting policies
There is no change in accounting policies during the reporting period.
2. Changes in accounting estimates
There is no change in accounting estimate during the reporting period.
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.Ⅴ. Notes on Items in Consolidated Financial Statements
Note: The beginning of the period refers to December 31th 2022 and the end of the period refers to June 30th
2023. The previous period refers to the semiannual of 2022 and the current period refers to the semiannual of
2023.
1. Monetary funds
(1) Classification list
Items Ending Balance Beginning Balance
Cash 24244.79 10693.10
Bank Deposits 1204708171.25 541089415.35
Other Currency Funds 46934488.77 19913001.31
Total 1251666904.81 561013109.76
Among them: the total amount of money deposited abroad 5306117.93 16585678.20
(2) 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
16175691.4911005983.98
included in current profits and losses
Among them: debt instrument investment 16175691.49 11005983.98
Total 16175691.49 11005983.98
3. Derivative financial assets
Items Ending Balance Beginning Balance
Changes in fair value of hedging instruments 153000.00 201549.12
Total 153000.00 201549.12
4. Notes receivale
(1) Classification list
Items Ending Balance Beginning Balance
Banker’s acceptance 154945.01
Commerical acceptances
Total 154945.01
5. Accounts Receivable
(1) Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
70099387.88
Among them: Within the credit (within 3 months)
64381969.87
Credit period to 1 year
5717418.01
1 to 2 years (including 2 years) 19663495.39
2 to 3 years (including 3 years) 7499480.04
3 to 4 years (including 4 years)
4 to 5 years (including 5 years)
More than 5 years 328259.50
Sub-total 97590622.81
Less Bad Debt provision 2805192.06
Total 94785430.75
（2）Present according to the method of provision for bad debt
Ending Balance
Type(s)
Book Balance Bad Debt Provision Book ValueProvision
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 328259.50 0.34 328259.50 100.00
Portfolio provision for bad debts 97262363.31 99.66 2476932.56 2.55 94785430.75
Among them: portfolio 1 65527069.02 67.14 2476932.56 3.78 63050136.46
portfolio 2 31735294.29 32.52 31735294.29
Total 97590622.81 100.00 2805192.06 94785430.75
（Continued）
Beginning 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
A. Separate provision for bad debts
Ending Balance
Name Accounts Bad Debt Provision Provision
Receivable Provision Ratio Reason
expected
Beijing Rongfa Lida Grain and Oil Trade Co. Ltd. 163143.00 163143.00 100.00 unrecoverable
expected
Fujian JINGXIN Industrial Group Co. Ltd. 151844.00 151844.00 100.00 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 portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year
(including 1 year) 39001364.78 25725.34 41621729.49 53832.41
Among them:
Within the credit 37715097.78 38930117.33
(within 3 months)
Credit period to 1
year 1286267.00 25725.34 2 2691612.16 53832.41
21 to 2 years
(including 2 years) 19026224.20 951311.21 5 18692634.64 934631.73
5
2 to 3 years
(including 3 years) 7499480.04 1499896.01 20 7499480.04 1499896.01
20
3 to 4 years
(including 4 years)
4 to 5 years
(including 5 years)
80
More than 5 years 100
Total 65527069.02 2476932.56 67813844.17 2488360.15
2. Portfolio provision: related parties portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Related parties portfolio 31735294.29 11731962.84
Total 31735294.29 11731962.84
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
individual basis 328259.50 328259.50
Credit impairment loss 2488360.15 2656.98 8770.61 2476932.56
Total 2816619.65 2656.98 8770.61 2805192.06
4. Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Ratio of total
Accounts Whether Bad Debt
Debtors accounts receivable Aging
receivable related Provision
(%)
Tangshan Caofeidian
1 to 2 years or 2
District Finance 25997336.04 26.64 No 2424788.81 to 3 years
Bureau
Shanghai Shounong
Investment Holding 19432675.33 19.91 Within 3 month Yes
Co. Ltd.Kudi Technology
Within 3 month No
(Fujian) Co.Ltd. 8252864.70 8.46
Zhejiang luqin
Supply Chain Within 4 month to
Management CO. 5339283.52 5.47
No
1 year
Ltd
Beijing Sanyuan seed
Industry Science and
Within 3 month No
Technology Co. Ltd 3288386.72 3.37
Feed BranchRatio of total
Accounts Whether Bad Debt
Debtors accounts receivable Aging
receivable related Provision
(%)
Total 62310546.31 63.85 —— 2424788.81
6. Advanced Payment
(1) Advances are presented by age
Ending Balance Beginning Balance
Aging
Amount Ratio (%) Amount Ratio (%)
Within 1 year (including 1 year) 551432045.68 99.97 194490369.48 99.99
1 to 2 years (including 2 years) 144000.00 0.03 5278.58 0.01
2 to 3 years (including 3 years)
More than 3 years
Total 551576045.68 100.00 194495648.06 100.00
(2) Advance payment of the top five Ending Balances by prepaid objects
Ratio of the total ending balance
Debtor Name Ending Balance
of prepayments (%)
Shanghai Shounong Investment Holding Co. Ltd. 379840707.34 68.86
People’s Republic of China Tianjin Port Customs 34401072.95 6.24
Zhongchu Grain Zhenjiang grain and Oil Co. Ltd 25028439.68 4.54
China Stored Grain Oil Co. Ltd 23236284.00 4.21
China stored grain oil (Tangshan) Co. Ltd. 15949391.34 2.89
Total 478455895.31 86.74
7. Other Receivables
A. Overview
(1) Classification
Item(s) Ending Balance Beginning Balance
Other Receivables 438557843.89 444523698.48
Total 438557843.89 444523698.48
B. Other Receivables
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
438178697.89
Among them: Within the credit (within 3 months)
325052390.76
Credit period to 1 year
113126307.13
1 to 2 years (including 2 years) 86732.00Aging Ending Balance
2 to 3 years (including 3 years) 67888.00
3 to 4 years (including 4 years) 194526.00
4 to 5 years (including 5 years)
More than 5 years 30000.00
Sub-Total 438557843.89
Less Bad Debt provision
Total 438557843.89
（2）Classification of other receivables by nature of funds
Book Balance at End of Period Book Balance at Beginning of Year
Guaranteed Deposit and Deposit 425195908.35 436908577.53
Intercourse Funds of Units 12221802.45 5728584.30
Employee Receivables 817509.23 1051023.02
Tax Refund Receivables 548483.77
Others 322623.86 287029.86
Total 438557843.89 444523698.48
(3) Other receivables according to top five of balance at end of period collected by debtors
Proportion in Ending
Nature of Balance at End of overall ending balance of
Name of Organization Aging
Funds Period balance of other bad debt
receivables (%) reserves
Zhongtian Futures Co. Ltd. margin 220973638.50 Within3month 50.39
Haitong Futures Co. Ltd margin 160014429.87 Within3month 36.49
Beijing Pioneer Futures Co.margin 16256670.00 Within3month 3.71
Ltd.Guotuanxin Futures Co. Ltd. margin 7957390.26 Within3month 1.81
Port of Tianjin customs of the Deposit for tax
3011883.09 Within3month increase 0.69
People's Republic of China
Total 408214011.72 93.08
8. Inventory
(1) Inventory Category
Ending Balance Beginning Balance
Items
Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Raw Materials 287416443.90 287416443.90 445721945.85 4599.51 445717346.34
Revolving
Materials 5170140.01 5170140.01 5267896.63 5267896.63Ending Balance Beginning Balance
Items
Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Goods and
materials in 266834372.64 266834372.64 337276381.65 337276381.65
transit
Inventory
goods 1440688746.62 31212235.53 1409476511.09 1081693725.26 44208166.31 1037485558.95
Replacement
of oil reserve 219334077.42 219334077.42 248197500.00 248197500.00
Total 2219443780.59 31212235.53 2188231545.06 2118157449.39 44212765.82 2073944683.57
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
Increased Amounts in the Decreased Amounts in the
Balance at Beginning Current Period Current Period Balance at End
Items
of Year Recover or Charge of Period
Accrual Others Others
Off
Stock Goods 44208166.31 25376091.85 38372022.63 31212235.53
Raw material 4599.51 4599.51
In total 44212765.82 25376091.85 38376622.14 31212235.53
（3）Stock Goods listed by major product type
Ending Balance Beginning Balance
Items Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Grease
1416567964.0631212235.531385355728.531048142485.9444023263.601004119222.34
and oils
Food 24120782.56 24120782.56 33551239.32 184902.71 33366336.61
Total 1440688746.62 31212235.53 1409476511.09 1081693725.26 44208166.31 1037485558.95
9. Non-current assets due within one year
Items Balance at End of Period Balance at Beginning of Period
Three-year term deposits 106546505.27 148387894.16
In total 106546505.27 148387894.16
10. Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Financial Products 405999000.00
Pre-paid Taxes and Fees 60468116.85 15477676.61
Pending Deduct VAT Input Tax 71822934.33 45572085.33
Fair Value Changes of Items Trapped at
Hedging 231572760.24 165881137.81
In total 363863811.42 632929899.75
11. Long-term Equity InvestmentIncrease or Decrease in the Current Period
Balance at
Invested Unit Confirmed Profit and
Beginning of Year Additional Negative Loss on Investment
Investment Investment
under Equity Law
1. Cooperative Enterprise
Beijing CHIA TAI Feedmill Limited
121605419.103239417.30
Sub-total 121605419.10 3239417.30
2. Joint Venture
China Grain Reserves (Tianjin)
Warehouse Logistics Co. Ltd. 115506829.06 3772879.56
Jingliang Mismi Catering
Management (Beijing) Co. Ltd. 6441668.82
Sub-total 121948497.88 3772879.56
Total 243553916.98 7012296.86
(Continued)
Increase or Decrease in the Current Period
Announce to Ending
Adjustment of
Other Distribute Accrual of Balance at End Balance of
other
changes in Case Impairment Others of Period Impairment
comprehensive
equity Dividends or Reserves Reserves
income
Profits
124844836.40
124844836.40
119279708.62
6441668.82
125721377.44
250566213.84
12. Other equity instruments investment
Item Ending Balance Beginning Balance
Chongqing long jinbao network technology co. LTD 20000000.00 20000000.00
Total 20000000.00 20000000.00
13. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Items Buildings Land Use Right Total
One. Original Book Value
1. Balance at Beginning of Year 54691581.60 54691581.60
2. Increased Amounts in the Current Period 9000432.40 576510.00 9576942.40
(1) Outsourcing(2) Inventory transfer
(3) Others 9000432.40 576510.00 9576942.40
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 63692014.00 576510.00 64268524.00
Two. Accumulated Impairment and Accumulated Amortization
1. Balance at Beginning of Year 24298508.66 24298508.66
2. Increased Amounts in the Current Period 7853306.06 202739.35 8056045.41
(1) Accrual or Amortization 7853306.06 202739.35 8056045.41
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 32151814.72 202739.35 32354554.07
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 20952402.58 373770.65 21326173.23
2. Book Value at Beginning of Year 19805276.24 19805276.24
14. Fixed Assets
1. Overview
(1) Classification
Items Balance at End of Period Balance at Beginning of Year
Fixed Assets 1013694886.73 1047451810.24
Disposal of Fixed Assets
In total 1013694886.73 1047451810.24
2. Fixed Assets
(1) Fixed Assets SituationMachinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
One. Original
Book Value
1. Balance at
Beginning of Year 1122769627.81 8 04825222.53 20457864.28 13030802.85 7015485.32 1644096.49 1969743099.28
2. Increased
Amounts in the 5224389.40 10769641.77 1167164.62 658831.34 177108.99 8849.56 18005985.68
Current Period
(1) Purchase 3479022.05 10769641.77 1167164.62 498154.36 177108.99 8849.56 16099941.35
(2) Roll-in of
Project under 1745367.35 160676.98 1906044.33
Construction
(3) Roll-in of
inventory
3. Decreased
Amounts in the 9000432.40 441168.84 274776.00 7566.36 58297.66 9782241.26
Current Period
(1) Disposal or
Scrap 441168.84 274776.00 7566.36 58297.66 781808.86
(2) Other Turn-in 9000432.40 9000432.40
4. Balance at End
of Period 1118993584.81 815153695.46 21350252.90 13682067.83 7134296.65 1652946.05 1977966843.70
Two. Accumulated
Impairment
1. Balance at
Beginning of Year 417797356.22 465777890.41 13737392.56 9541958.53 5664529.67 652098.03 913171225.42
2. Increased
Amounts in the 19787650.65 28568662.65 721737.19 682869.85 215300.32 30457.51 50006678.17
Current Period
(1) Accrual 19787650.65 28568662.65 721737.19 682869.85 215300.32 30457.51 50006678.17
3. Decreased
Amounts in the 6986360.14 717265.14 262789.80 5630.13 53965.03 8026010.24
Current Period
(1) Disposal or
Scrap 717265.14 262789.80 5630.13 53965.03 1039650.10
(2)Other Turn-out 6986360.14 6986360.14
4. Balance at End
of Period 430598646.73 493629287.92 14196339.95 10219198.25 5825864.96 682555.54 955151893.35
Three. Impairment
Reserves
1. Balance at
Beginning of Year 9047959.13 72104.49 9120063.62
2. Increased
Amounts in the
Current Period
(1) Accrual
3. Decreased
Amounts in the
Current Period
(1) Disposal or
Scrap
4. Balance at End
of Period 9047959.13 72104.49 9120063.62
Four. Book Value
1. Book Value at
End of Period 679346978.95 321452303.05 7153912.95 3462869.58 1308431.69 970390.51 1013694886.73
2. Book Value at
Beginning of Year 695924312.46 338975227.63 6720471.72 3488844.32 1350955.65 991998.46 1047451810.24
(2) Fixed assets without property right certificateItems Book Value Reasons for failure to complete certificate of title
Buildings 2969274.46 No title certificate for auxiliary assets
15. Project under Construction
1. Overview
(1) Classification
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 38472961.91 22695003.52
Total 38472961.91 22695003.52
2. Project under Construction
(1) Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items
Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Third plant slope treatment
project 7609297.51 7609297.51 5244356.21 5244356.21
Comprehensive Free Trade
Zone feed processing project 6123665.24 6123665.24 5224681.81 5224681.81
Second factory walnut cake
production line 4238844.00 4238844.00 4238844.00 4238844.00
Konjac test line 1875277.65 1875277.65 1787067.94 1787067.94
Soybean puffing and rumen
soybean meal processing 9666877.40 9666877.40 1618517.50 1618517.50
project
Second factory baked potato
supporting automation line 953600.00 953600.00 953600.00 953600.00
Heat Energy Recovery and
utilization project 856263.58 856263.58 856263.58 856263.58
Odor control project 1585321.11 1585321.11 792660.56 792660.56
Test line for Vegetarian meat 542214.80 542214.80 542214.80 542214.80
Westhospital leaching
workshop decoration project 625510.72 625510.72 344775.86 344775.86
Second Plant Baked Potato
Line 2 flexible automation 1261061.95 1261061.95
transformation project
Expansion of Konjac
production line 869036.30 869036.30
Automatic transformation of
Mai Shao packaging 880299.69 880299.69
Others 1385691.96 1385691.96 1092021.26 1092021.26
Total 38472961.91 38472961.91 22695003.52 22695003.52
(2) Change Condition of Important Engineering Projects under Construction in the Current Period
Other
Roll-in Fixed
Increased Decreased
Balance at Assets Amount Balance at End
Project Name Amounts in the Amounts in
Beginning of Year in the Current of Period
Current Period the Current
Period
PeriodOther
Roll-in Fixed
Increased Decreased
Balance at Assets Amount Balance at End
Project Name Amounts in the Amounts in
Beginning of Year in the Current of Period
Current Period the Current
Period
Period
Odor control project 792660.56 792660.55 1585321.11
Third plant slope
5244356.212364941.307609297.51
treatment project
Second factory walnut
4238844.004238844.00
cake production line
Konjac test line 1787067.94 88209.71 1875277.65
Soybean puffing and
rumen soybean meal 1618517.50 8048359.90 - 9666877.40
processing project
Comprehensive Free
Trade Zone feed 5224681.81 898983.43 6123665.24
processing project
Second Plant Baked
Potato Line 2 flexible
1261061.951261061.95
automation
transformation project
Total 18906128.02 13454216.84 32360344.86
16. Right-of-use asset
Transportation
Items Buildings Land Use Right In total
Equipment
One Original Book Value
1. Balance at Beginning of
Year 4423305.76 630874.50 4970592.00 10024772.26
2. Increased Amounts in the
Current Period
(1) Lease
3. Decreased Amounts in the
Current Period
(1) Expiration of the lease or
change the lease term
4. Balance at End of Period 4423305.76 630874.50 4970592.00 10024772.26
Two Accumulated
Depreciation
1. Balance at Beginning of
Year 2733787.38 96622.68 225936.00 3056346.06
2. Increased Amounts in the
Current Period 623367.02 47239.27 56484.00 727090.29
(1) Accrual 623367.02 47239.27 56484.00 727090.293. Decreased Amounts in the
Current Period
Lease expiration or change
4. Balance at End of Period 3357154.40 143861.95 282420.00 3783436.35
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) Disposal
4. Balance at End of Period
Four Book Value
1. Book Value at End of
Period 1066151.36 487012.55 4688172.00 6241335.91
2. Book Value at Beginning
of Year 1689518.38 534251.82 4744656.00 6968426.20
17. Intangible Assets
(1) Intangible Assets Situation
Items Software Land Use Right Trademark Right Others In total
One Original Book Value
1. Balance at Beginning of
Year 5172273.84 316139303.96 154841200.00 476152777.80
2. Increased Amounts in the
Current Period 98141.60 5430549.36 5528690.96
(1) Purchase 98141.60 5430549.36 5528690.96
(2)Internal R&D
(3)Increase in business
consolidation
3. Decreased Amounts in the
Current Period 576510.00 576510.00
(1) Disposal
(2) Turn out 576510.00 576510.00
4. Balance at End of Period 5270415.44 320993343.32 154841200.00 481104958.76
Two Accumulated
Amortization
1. Balance at Beginning of
Year 4176674.41 75467995.64 71463223.41 151107893.46
2. Increased Amounts in the
Current Period 108117.86 3488532.41 3856962.95 7453613.22
(1) Accrual 108117.86 3488532.41 3856962.95 7453613.22
3. Decreased Amounts in the
Current Period 201778.50 201778.50
(1) DisposalItems Software Land Use Right Trademark Right Others In total
(2) Turn out 201778.50 201778.50
4. Balance at End of Period 4284792.27 78754749.55 75320186.36 158359728.18
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) Disposal
4. Balance at End of Period
Four Book Value
1. Book Value at End of
Period 985623.17 242238593.77 79521013.64 322745230.58
2. Book Value at Beginning
of Year 995599.43 240671308.32 83377976.59 325044884.34
18. Goodwill
Original Book Value of Goodwill
Increase in the Current Decrease in the Current
Name of Invested Unit Balance at Period Period
Balance at End
or Items Forming Beginning of Formed by
of Period
Goodwill Year Enterprise Others Disposal Others
Merger
Acquire stock shares of
Zhejiang Xiaowangzi 191394422.51 191394422.51
Food Co. Ltd.In total 191394422.51 191394422.51
The goodwill of the company is mainly formed by the acquisition of the equity of Zhejiang Little Prince
Food Co. Ltd. the asset group of the goodwill is mainly composed of fixed assets investment real estate
intangible assets and projects under construction.
19. Long-term Unamortized Expenses
Increased
Balance at Amortized Other
Amounts in Balance at End
Items Beginning of Amounts in the Decreased
the Current of Period
Year Current Period Amounts
Period
Reconstruction of majuqiao plant 13539943.97 337094.04 13202849.93
Amortization of laboratory
decoration costs 2230677.31 80246.16 2150431.15
Factory No.3 compartment
maintenance 516335.99 333206.96 72601.19 776941.76
Housing renovation 649010.65 494801.98 59872.26 1083940.37
Total 16935967.92 828008.94 549813.65 17214163.2120. 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 Deferred Income Tax
Temporary Temporary
Tax Assets Assets
Difference Difference
Asset Impairment
Reserves 31274517.52 7818629.38 44268191.18 11067047.80
Lease liabilities 142681.30 35670.33 167668.58 41917.15
Deductible Loss 1383480.84 345870.21 1383480.84 345870.21
Credit impairment Loss 3811842.32 952960.58 3811842.32 952960.58
Deferred Income 11824538.36 2956134.59 11824538.36 2956134.59
Wages payable 5677134.00 1419283.50 5677134.00 1419283.50
Valuation of Financial
Instruments and
Derivative Financial 7516681.73 1879170.43 211060.00 52765.00
Instruments
Contract rebate 3451347.72 862836.93 3215300.44 803825.11
In total 65082223.79 16270555.95 70559215.72 17639803.94
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Taxable Temporary Deferred Income Tax Taxable Temporary Deferred Income Tax
Difference Liabilities Difference Liabilities
Valuation and
appreciation of assets in
merger of enterprises not 139511373.01 34877843.25 144667350.88 36166837.72
under the same control
Valuation of Financial
Instruments and
Derivative Financial 155135359.76 38783839.94 54719042.81 13679760.70
Instruments
Right to use assets 34449.15 8612.29 34449.15 8612.29
Total 294681181.92 73670295.48 199420842.84 49855210.71
(3)Details of Deferred Income Tax Liabilities after Offset
Carrying amount after
Offseting amount Carrying amount after offseting amount of
offsetting between
of deferred tax offsetting between deferred tax assets
Items deferred tax assets
assets and deferred tax assets and liabilities at the
and liabilitie at the
liabilities and liabilities end of last period
end of last period
Deferred tax asset 3015308.80 13255247.15 3450040.01 14189763.93
Deferred tax liabilities 3015308.80 70654986.68 3450040.01 46405170.70
(4)Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible temporary differencesItems Balance at End of Period Balance at Beginning of Year
Deductible Loss 162271141.83 160184970.56
In total 162271141.83 160184970.56
(5)Deductible loss on deferred income tax assets not being confirmed will be due at the following years
Year Balance at End of Period Balance at Beginning of Year Notes
20239688448.819688448.81
202447153825.4547153825.45
202525114592.0525114592.05
202612221704.2612221704.26
202766006399.9966006399.99
20282086171.27
Total 162271141.83 160184970.56
21. 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
term 33895087.34 33895087.34 53544782.34 53544782.34
deposit
Total 33895087.34 33895087.34 53544782.34 53544782.34
22. Short-term Borrowings
（1）Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Guaranteed Loan 1642308166.66 1260543148.81
In total 1642308166.66 1260543148.81
23. Derivative financial liability
Item Ending balance Beginning balance
Changes in fair value of hedging instruments
84108320.00111373155.00
Total 84108320.00 111373155.00
24. Notes Payable
Item Ending balance Beginning balance
Bank acceptance bill 3331333.80
Total 3331333.80
25. Accounts Payable（1）Accounts Payable Listed
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 113538785.12 99975435.40
Project Funds Payable 7586930.60 8989252.43
Equipment Funds Payable 271620.81 765432.60
Others 7334252.50 1181756.78
In total 128731589.03 110911877.21
26. Advance payment
（1）Advance payment Listed
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1371674.51 922982.41
In total 1371674.51 922982.41
27. Contract liabilities
（1） Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans
589737348.35285555581.80
In total 589737348.35 285555581.80
28. Wages Payable
（1）List of Wages Payable
Balance at Increase in the Current Decrease in the Current Balance at End of
Items
Beginning of Year Period Period Period
One Short-term
Compensation 42220454.37 129794334.67 158476573.49 13538215.55
Two
After-service
Welfare- Set up 1708306.39 16697603.52 16941858.13 1464051.78
ESP liabilities
Three Dismission
Welfare 240454.26 240454.26
In total 43928760.76 146732392.45 175658885.88 15002267.33
（2）List of Short-term Compensation
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Wage Bonus Allowance and
Subsidy 38119437.46 105739879.46 133942598.44 9916718.48
2. Welfare Expense of Employee 6920.00 3851141.03 3817968.23 40092.80
3. Social Insurance Expense 832783.50 9578934.23 9801131.53 610586.20
Among them: Medical Insurance
Premiums 750291.67 8824747.29 9025984.28 549054.68
Industrial Injury Insurance 66211.98 559270.87 579086.94 46395.91Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Premiums
Birth Insurance Premiums 16279.85 162207.82 163352.06 15135.61
Others 32708.25 32708.25
4. Housing Provident Funds 146594.49 8349033.00 8380862.00 114765.49
5. Labor Union Expense and
Personnel Education Fund 3114718.92 2275346.95 2534013.29 2856052.58
In total 42220454.37 129794334.67 158476573.49 13538215.55
（3）List of Stated Drawings Plan
Balance at Increase in the Current Decrease in the Balance at End of
Items
Beginning of Year Period Current Period Period
1. Basic Pension
Insurance 1616949.93 14377885.25 14609042.21 1385792.97
2. Unemployment
Insurance Expense 42937.75 477670.30 487651.13 32956.92
3. Enterprise Annuity
Charges 48418.71 1842047.97 1845164.79 45301.89
Total 1708306.39 16697603.52 16941858.13 1464051.78
29. Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
Corporate Income Tax 12163716.53 39893369.93
VAT 4672877.79 18489749.05
Urban Maintenance and Construction Tax 697085.89 1352280.58
House Property Tax 1003999.30 2316064.99
Land Use Tax 279642.34 150746.89
Individual Income Tax 395864.23 2331343.41
Educational Surtax 247729.15 542273.76
Local Educational Surtax 217295.83 413658.90
Stamp Tax 241216.09 1135833.99
Environmental protection tax 3162.78 3732.68
In total 19922589.93 66629054.18
30. Other Accounts Payable
A. Overview
(1) Classification
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 21082795.47 21082795.47
Dividends Payable 3213302.88 3213302.88
Other Accounts Payable 89161679.89 59703587.21Items Balance at End of Period Balance at Beginning of Year
In total 113457778.24 83999685.56
B. 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
C. 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
D. 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 37852852.41 18847429.40
Intercourse Funds between Units 33094910.72 27733578.06
Intercourse Funds of Related Parties 4401686.83 3070641.51
Personal Intercourse Funds 3135810.63 3829316.55
Various Insurances of Employee 4170279.11 2507094.75
Others 6506140.19 3715526.94
In total 89161679.89 59703587.21
31. Non-current liabilities due within one year
Item End balance Beginning balance
Current portion of lease liability 628515.16 1432706.14
Total 628515.16 1432706.14
32. Other current liability
1.Other current liability statement
Item End balance Beginning balance
Sales tax to be transferred 56434136.00 56184255.30
Total 56434136.00 56184255.30
33. Long term borrowing
Item End balance Beginning balanceCredit Loan 600000000.00 500284166.67
Total 600000000.00 500284166.67
34. Lease liability
Item End balance Beginning balance
Lease liability 1427888.14 2216669.37
Less:Unrecognized financing expenses 42115.18 79572.25
Non current liabilities reclassified to maturity within one year 628515.16 1432706.14
Total 757257.80 704390.98
35. 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
Other Long-term Welfare 5677134.00 5677134.00
In total 5677134.00 5677134.00
36. Deferred Income
Balance at Increase in the Decrease in the Balance at End of Cause of
Items
Beginning of Year Current Period Current Period Period Formation
Government Subsidy 64550917.36 1042216.25 63508701.11
In total 64550917.36 1042216.25 63508701.11
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
"Tianjin Lingang 47374115.29 638752.08 46735363.21
A sset related
Industrial Zone
Management Committee"
Special subsidy for
Asset related
infrastructure investment 8520037.90 8520037.90
The relocation
compensation 3462874.32 3462874.32
A sset related“Oil tank expansion andWinter Transformation 2522657.94 125090.45 2397567.50Project” subsidy fund
Tianjin Binhai New
District’s Industrially
Technical Renovation
and Park Construction 1648147.97 111111.12 1537036.84 A sset related
Funds as well as
Expenditures for Science
and TechnologyKey technology research
and industrialization
project of "moderate 622710.56 38919.42 583791.14 A sset related
processing" of grain and
oil
Construction of
provincial grain reserve
information management 232373.66 100343.16 132030.50 A sset related
system to form asset
entry project
Design of electric heating
system for oil tank 167999.72 28000.02 139999.70
A sset related
In total 64550917.36 1042216.25 63508701.11
37. 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 41159887.00 -10289972.00 30869915.00
Conditions
(1) State
Shareholding
(2) State-owned
Legal-person
Shareholding
(3) Other
Domestic Capital 41159887.00 -10289972.00 30869915.00
Shareholding
Including:
Domestic
Legal-person
Shareholding
Domestic Natural
Person 41159887.00 -10289972.00 30869915.00
Shareholding
(4) Foreign
Shareholding
Including:
Foreign
Legal-person
Shareholding
Foreign Natural
Person
Shareholding
2. Tradable Shares
without Restricted 685790364.00 10289972.00 696080336.00
Conditions(1) RMB
Ordinary Shares 620815364.00 10289972.00 631105336.00
(2) Domestically
Listed Foreign 64975000.00 64975000.00
Shares
(3) Listed Foreign
Shares Overseas
(4) Others
In total 726950251.00 726950251.00
38. Capital Reserves
Balance at Beginning Increase in the Decrease in the Balance at End of
Items
of Year Current Period Current Period Period
Capital Premium (Stock
Premium) 1322887986.38 1322887986.38
Capital Reserves Roll-in
Under Original System 112316357.36 112316357.36
Other Capital Reserves 243474007.21 243474007.21
In total 1678678350.95 1678678350.95
39. Other Comprehensive Incomes
Amounts Occurred in the Current Period
Less: included
Less: Other
Amounts in other
Comprehensive
Occurred comprehensive
Incomes Less: Attributable Attributable
Balance at before income in the Balance at
Items Charged at Income to Parent to Minority
Beginning of Income previous period End of
Earlier Stage Tax Company Shareholders
Year Tax in the and transferred Period
and Current Expense After Tax After Tax
Current to retained
Roll-in Profit
Period income in the
and Loss
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 risk
Two Other
comprehensive 1005720.50 730651.63 730651.63 1736372.13
incomes thatwill be
classified into
profit and loss
1. Other
comprehensive
income
transferable 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
foreign 1005720.50 730651.63 730651.63 1736372.13
currency
financial
statements
Total 1005720.50 730651.63 730651.63 1736372.13
40. Surplus Reserves
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Statutory Surplus Reserves 84487609.05 84487609.05
Free Surplus Reserves 37634827.93 37634827.93
In total 122122436.98 122122436.98
41. Undistributed Profit
Amounts in the Amounts in the
Items
Current Period Prior Period
Adjustment on undistributed profit at end of last year 532904675.62 391493534.34
Adjustment on total number of undistributed profit at beginning of
period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 532904675.62 391493534.34
Add: net profit attributable to parent company in the current period 73581795.36 72587347.65
Other factor -23682.87
Less: withdrawal legal surplus reserves
Withdrawal free surplus reserves
Withdrawal general risk reserves
Ordinary stock dividends payableAmounts in the Amounts in the
Items
Current Period Prior Period
Ordinary stock dividends transferred to capital
Undistributed profit at end of period 606486470.98 464080881.99
42. 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 4792494443.33 4604819197.36 5494462329.87 5267887989.16
Other Business 30739764.85 26151271.78 18318940.45 6476103.50
In total 4823234208.18 4630970469.14 5512781270.32 5274364092.66
(2) Prime Business (Industry and Business-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Industry (or Business)
Revenue Cost Revenue Cost
Oil and Oil Seeds 4305004934.04 4237929626.02 5029994012.13 4897082807.80
Food Processing 487489509.29 366889571.34 464468317.74 370805181.36
In total 4792494443.33 4604819197.36 5494462329.87 5267887989.16
(3)Prime Business (Region-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Region
Revenue Cost Revenue Cost
North China 4139917098.94 4074148710.63 4554123662.96 4422630118.98
East China 375856398.15 279165994.80 364861708.51 286122942.00
Northeast China 68978807.28 53627460.77 70369663.99 58672431.76
South East 207742138.96 197877031.16 505107294.41 500462496.42
In total 4792494443.33 4604819197.36 5494462329.87 5267887989.16
43. Tariff And Annex
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 2164523.24 5547508.14
Educational Surtax 937938.89 2383077.24
Local Educational Surtax 625292.57 1588718.13
House Property tax 3040839.14 3000706.17
Land Use Tax 914015.59 810831.84
Stamp Tax 3825650.53 3643485.85
Vehicle and Vessel Use Tax 20323.53 20909.30
Other Taxes and Fees 20090.39 20628.49
In total 11548673.88 17015865.1644. Sales Expenses
Amounts in the Amounts in the Prior
Items
Current Period Period
Employee Compensation (including social security etc) 25300609.41 29291508.50
Sales Promotion Expenses 7282685.02 4055810.11
Warehousing Fees 14257898.37 8497141.26
Depreciation 7985937.31 7901751.09
Material consumption sample and product cost 3712801.42 1948756.28
Travel Expenses 3070763.08 2393868.84
Repair Costs 115097.47 125442.17
Handling fees 146400.18 392895.96
Water and Electricity Fees 547038.39 630075.86
Vehicle Fees 481627.88 131919.41
Packing Expenses 251296.30 53683.76
Test and Detection Fees 133279.64 88133.90
Business Entertainment Expenses 1514904.94
Others 13637484.20 13677022.18
Total 78437823.61 69188009.32
45. Administration Expenses
Amounts in the Current Amounts in the Prior
Items
Period Period
Employee Compensation (including social security etc) 50938225.39 50434025.42
Amortization of Assets 13240946.13 13005624.37
Impairment Costs 3687167.40 4327122.86
Fees of Employing Agent 3545562.82 2920279.69
Company Expenses 1694907.02 1892233.41
Repair Costs 1485217.53 1473228.80
Lease fee 1437456.70 2080164.07
Vehicle Fees 922140.12 1270341.36
Information Network Fees 896801.93 749443.87
Business Entertainment Expenses 487704.84 358026.74
Environmental Protection Fees 475656.29 640492.40
Commercial Insurance Expenses 287138.08 429123.43
Workers Insurance Expenses 125998.48 0.00
Security Protection Fees 822264.35 424416.84
Labor Protection Fees 27309.72 190101.64
Material Consumption 301685.55 312740.16Amounts in the Current Amounts in the Prior
Items
Period Period
Travel Expenses 433247.37 83289.71
Other Expenses 12089152.49 7150012.92
In total 92898582.21 87740667.69
46. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
R&D Expenses 10262799.97 4876642.24
In total 10262799.97 4876642.24
47. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 25265021.07 16391856.85
Less: Interest Income 5832452.30 6825161.06
Exchange Profit and Loss -2719736.45 -196022.86
Service Charges 552216.18 3198614.15
In total 17265048.50 12569287.08
48. Other Profits
Amounts in the Current Amounts in the Prior
Items
Period Period
Government Subsidy Related to Daily Corporate Activities 6149861.75 6346260.64
Return of Service Charges of Withholding Individual Income Tax 156397.49 92739.41
Others 17955.34
In total 6324214.58 6439000.05
49. Investment Income
Amounts in the Amounts in the
Items
Current Period Prior Period
Long-term equity investment income accounted with equity method 7012296.86 11762199.64
Investment income from disposal of wealth management products 267083.33
Investment income of disposing trading financial asssets 128861.80
Investment income obtained during the holding of transactional financial assets 169707.51 47446.09
Others -2721.38
In total 7179282.99 12205590.86
50. Profits on Changes in Fair Value
Amounts in the Current Amounts in the Prior
Source of generating income with changes in fair value
Period Period
Financial assets that are measured as per fair value and for
which the changes are included in the current profit and loss 143869459.30 49424487.23Amounts in the Current Amounts in the Prior
Source of generating income with changes in fair value
Period Period
Including: income with changes in fair value generated by
derivative financial instruments 143869459.30 49424487.23
Trading financial liabilities
In total 143869459.30 49424487.23
51. Credit impairment loss
Amounts in the Current Amounts in the Prior
Items
Period Period
Accounts receivable bad debt loss -115984.57 -600.00
Other receivables bad debt loss
Total -115984.57 -600.00
52. Assets impairment loss
项 目 Amounts in the Current Period Amounts in the Prior Period
Bad debt loss
Loss from inventory depreciation and loss from
-25186589.63
impairment of contract performance costs
Total -25186589.63
53. Assets Disposal Income
Amounts in the Current Amounts in the Prior
Items
Period Period
Gains or losses on disposal of fixed assets -2209.46 441741.39
In total -2209.46 441741.39
54. Non-operating Income
(1) Classification list
Amounts Charged to
Amounts in the Amounts in the Prior
Items Non-recurring Profit
Current Period Period
and Loss
Total non current assets retirement gains: 10274.33 40746.10 10274.33
Including: fixed assets scrap profit 10274.33 40746.10 10274.33
profit from scrap of intangible assets
Deafult revenue 3636895.41 36613.84 3636895.41
Non-payable liabilities 13284.33 13284.33
Government Subsidy 4502.00
Relocation Compensation 98808.18 354192.63 98808.18
Other Gains 144239.11 39160.87 144239.11
In total 3903501.36 475215.44 3903501.36
55. Non-operating ExpensesAmounts Charged to
Amounts in the Amounts in the Prior
Items Non-recurring Profit
Current Period Period
and Loss
Total non current assets retirement loss: 67613.57 16790.13 67613.57
Including: fixed assets scrap loss 67613.57 16790.13 67613.57
intangible assets scrap loss
Deafult revenue 65.46 96944.84 65.46
Others 460301.41 244592.56 460301.41
Total 527980.44 358327.53 527980.44
56. 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 7333690.17 6105743.64
Deferred Income Tax Expenses 25184332.75 24355678.28
Total 32518022.92 30461421.92
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the Current Amounts in the Prior
Items
Period Period
Total Profits 117294505.00 115653813.61
Income tax expenses calculated by statutory/applicable
tax rate 29323626.25 28913453.40
Effect of subsidiary corporations being applicable to
different tax rates -109569.75 -465871.81
Adjustment on effect of income tax in the prior period 1348133.02
Effect of Non-taxable Incomes -2568992.91 -2866400.51
Effect of Non-deductible cost expense and loss 8614.93 17385.49
Effect of deductible loss on usage of unconfirmed
deferred income tax assets in the prior period -36728.82
Effect of deductible temporary difference or deductible
loss on unconfirmed deferred income tax in the current 5913515.30 3795413.88
period
Effect of deductions
Others -12442.08 -280691.55
Income Tax Expenses 32518022.92 30461421.92
57. Other comprehensive income items and their income tax impact and transferred to profit and lossSee 39 Other Comprehensive Incomes under Section VIII of the Notes for details “Appendix Six Notes onItems in Consolidated Financial Statements
58. Notes to items related cash flow statement
(1) Receiving other cash related to operation activities
Amounts in the Current Amounts in the Prior
Items
Period PeriodAmounts in the Current Amounts in the Prior
Items
Period Period
Intercourse Funds of Related Parties 879899688.90 1092728826.43
Intercourse Funds of Other Units 129523949.12 77884840.10
Non-operating Income and other income 5111702.84 5306053.12
Interest Income 2409511.39 6708697.32
Future Margins 4937540.00 2151049.48
Others 1929648.28 4800305.29
Total 1023812040.53 1189579771.74
(2) Other Cash Payment Related to Operation Activities
Amounts in the Current Amounts in the Prior
Items
Period Period
Intercourse Funds of Related Parties 41389562.45 31495939.51
Intercourse Funds of Other Units 693763069.50 1581633115.17
Payment for Administration Expenses 54046499.12 11211289.78
Payment for Operating Expenses 3013507.59 2011580.36
Non-operating Expenses 3500409.16 3173814.38
Petty Cash Paid 141253.83 147809.79
Bank Charges 369183.00 358327.53
Others 3888526.01 2740301.36
In total 800112010.66 1632772177.88
(3)Other cash payments related to financing activities
Amounts in the Current Amounts in the Prior
Items
Period Period
Lease payment amount 574077.78
In total 574077.78
59. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Amounts in the Prior
Supplementary Materials
Current Period Period
1. Adjusting net accounting profit to operating cash flow
Net Profit 84776482.08 85192391.69
Add: Assets Impairment Reserves 25186589.63
Credit impairment loss 115984.57 600.00
Fixed Assets Depreciation Oil-and-gas Assets Depreciation
and Productive Biological Assets Depreciation 50733768.46 46068782.54
Amortization of Intangible Assets 7453613.22 7432845.06
Amortization of Long-term Deferred Expenses 549813.65 784346.16
Losses on Disposal of Fixed Assets Intangible Assets and
Other Long-term Assets (Fill in profit with symbol “－”) 2009.46 -441741.39
Losses on Retirement of Fixed Assets (Fill in profit with 60624.57 16790.13Amounts in the Amounts in the Prior
Supplementary Materials
Current Period Period
symbol “－”)
Losses on Changes in Fair Value (Fill in profit with symbol
“－”)-143869459.30-49424487.23
Financial Expenses (Fill in profit with symbol “－”) 17265048.50 12569287.08
Investment Losses (Fill in profit with symbol “－”) -7179282.99 -12205590.86
Decrease in Deferred Income Tax Assets (Fill in increase with
symbol “－”) 934516.78 11308682.37
Increase in Deferred Income Tax Reliabilities (Fill in decrease
with symbol “－”) 24249815.98 12587506.31
Decrease in Inventory (Fill in increase with symbol “－”) -114286861.49 -717414422.37
Decrease in Items of Operating Receivables (Fill in increase
with symbol “－”) -360191592.16 -64104630.81
Increase in Items of Operating Receivables (Fill in decrease
with symbol “－”) 276849383.25 493019231.89
Others
Net Cash Flows from Operating Activities -137349545.79 -174610409.43
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 1251666904.81 810888971.64
Less: cash balance at beginning of period 551439110.07 506928810.69
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 700227794.74 303960160.95
(2) Composition of cash and cash equivalents
Balance at End of Balance at Beginning of
Items
Period Period
1.Cash 1251666904.81 551439110.07
Including: cash in stock 24244.79 10693.10
Bank deposit available for payment at any time 1204708171.25 531515415.66
Other currency funds available for payment at any
time 46934488.77 19913001.31
Deposits with central bank available for payment
Interbank deposit
Interbank placements
2.Cash Equivalents
Including: bond investment maturing within three months
3.Balance of Cash and Cash Equivalents at End of Period 1251666904.81 551439110.07
Including: restricted cash and cash equivalents used by parent
company or intra-group affiliates60. Assets with restricted ownership or right to use
Items Book Value at End of Period Reasons being Restricted
Investment Real Estate 5369095.43 Litigation Freeze
Fixed Assets 5201543.82 Litigation Freeze
In total 10570639.25
61. 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 1957173.26 7.2258 14142142.55
Including: US Dollars 1957173.26 7.2258 14142142.55
Accounts payable 587546.12 7.2258 4245490.73
Including: US Dollars 587546.12 7.2258 4245490.73
Other Payable 1886180.38 7.2258 13629162.16
Including: US Dollars 1886180.38 7.2258 13629162.16
(2) Instruction of Operational Entity Overseas
The registrant and operating unit of the Company is Beijing Grain (Singapore) International Trade Co. Ltd.with main business place of Singapore and recording currency of US Dollars.
62. Hedging items and related hedging instruments
Please refer to the related content on Derivative financial liability under Section VI (23) of the Notes.
63. Government Subsidies
（1）Basic conditions of government grants
Amount recorded
Type Amount Presentation item
in profit and loss
VAT refunds 2909904.59 Other income 2909904.59
Stable post subsidy 4207.22 Other income 4207.22
Port of Tianjin Free Trade Zone Development
and Reform Bureau in 2020 first to fourth 71000.00 Other income 71000.00
batch of Tianjin energy saving funds
Special Fund for Intelligent Manufacturing of
Science technology and Industrial
100000.00 Other income 100000.00
Innovation Bureau of Port of Tianjin Free
Trade Zone (district level)
Employment Allowance for the disabled 75262.57 Other income 75262.57
Employment subsidy for employment
4500.00 Other income 4500.00
administration in Lin 'an District
Mayor of Tieling Award for quality (Little
200000.00 Other income 200000.00Prince of Liaoning province）
Liaoning small prince expanded potato chip
1304400.00 Other income 1304400.00
production line new equipment subsidiesAmount recorded
Type Amount Presentation item
in profit and loss
Liaoning Little Prince New Factory
261643.00 Other income 261643.00
expansion support bonus
Tax Control System service fee 840.00 Other income 840.00The credit bureau“Preempt the opportunity
60000.00 Other income 60000.00spell the economy” subsidy
Tax incentives for small and micro
1188.12 Other income 1188.12
enterprises
Land tax rebates 101200.00 Other income 101200.00
Subsidies for recruiting fresh graduates 13500.00 Other income 13500.00“Tianjin Port Industrial Zone AdministrativeDefer incomeotherCommittee” construction phase of enterprise 63130000.00 638752.08
income
infrastructure matching grantsBeijing food and material reserve bureau“OilDefer income Other
tank expansion and Winter Transformation 2626900.00 125090.45
incomeProject” subsidy fund
Capital and expenditure on science and
Defer income Other
technology for industrial and park 4000000.00 111111.12
income
construction in Binhai New Area
Grain and oil“Moderate processing” key
Defer incomeother
technology research and industrialization 1089743.60 38919.42
incoe
projects to form fixed assets
The construction of provincial-level grain
Defer income other
reserve information management system 633746.30 100343.16
income
forms an asset entry project
Green and clean production equipment for
Defer income other
edible oil and electric heating system for oil 855179.48 28000.02
income
tank
In total 77443214.88 6149861.75
VII. Change in Consolidation Scope
There were no changes in the scope of consolidation for the company during the reporting period.VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Principle Shareholding Voting
Name of Registered Nature of Mode of
Place of Ratio (%) rights
Subsidiary Place Business Acquisition
Business Direct Indirect ratio (%)
Merger under
Beijing Jingliang Investment
Beijing Beijing 100 100 the same
Food Co. Ltd. management
control
Jingliang Agricultural
Merger under
(Tianjin) Grain Product and
Tianjin Tianjin 70 70 the same
and Oil Industry By Product
control
Co. Ltd. Processing
Beijing Jingliang Merger under
Grain and oil
Oil and Fat Co. Beijing Beijing 100 100 the same
trade
Ltd. control
Jingliang (Hebei) Agricultural Merger under
Oil Industry Co. Hebei Hebei Product and 51 51 the same
Ltd. By Product controlName of Principle Registered Nature of Shareholding Voting Mode of
Subsidiary Place of Place Business Ratio (%) rights Acquisition
Business Processing ratio (%)
Beijing Guchuan Merger under
Grain and oil
Edible Oil Co. Beijing Beijing 100 100 the same
trade
Ltd. control
Agricultural
Beijing Merger under
Product and
Eisen-Lubao Oil Beijing Beijing 100 100 the same
By Product
Co. Ltd. control
Processing
Beijing
Merger under
Tianweikang Oil
Beijing Beijing Warehousing 100 100 the same
Distribution
control
Center Co. Ltd.Beijing Guchuan Merger under
Food
Bread Food Co. Beijing Beijing 100 100 the same
Processing
Ltd. control
Zhejiang Xiao
Food
Wang Zi Food Hangzhou Hangzhou 17.6794 77.2072 94.8866
Processing
Co. Ltd.Hangzhou Lin'an Combination
Food
Xiaotianshi Food Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under same
Processing
Co. Ltd. control
Liaoning Xiao Combination
Food
Wang Zi Food Liaoning Liaoning 17.6794 77.2072 94.8866 not under same
Processing
Co. Ltd. control
Linqing Xiao Combination
Food
Wang Zi Food Linqing Linqing 17.6794 77.2072 94.8866 not under same
Processing
Co. Ltd. control
Lin'an
Chunmanyuan Combination
Food
Agricultural Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under same
Processing
Development control
Co. Ltd.Jingliang
(Singapore) Establishment
Singapore Singapore Grain trade 100 100
International by investment
Trade Co. Ltd.Jingliang
(Caofeidian)
Establishment
Agricultural Tangshan Tangshan Plantation 51 51
by investment
Development
Co. Ltd.Beijing jingliang
Grain and oil Establishment
gubi oil and Beijing Beijing 100 100
trade by investment
grease co. LTD
Jingliang
(Yueyang) Grain Agricultural Establishment
Hunan Hunan 65 65
and Oil Industry products by investment
Co. Ltd.Jingliang Food Establishment
Beijing Beijing 100 100
(Beijing) Food Processing by investmentName of Principle Registered Nature of Shareholding Voting Mode of
Subsidiary Place of Place Business Ratio (%) rights Acquisition
Marketing Business ratio (%)
Management
Co. Ltd
(2) Major non-wholly-owned subsidiaries
Dividends
Balance of
Profit And Loss Distributed
Minority
Shareholding Voting rights Attributable to to Minority
Shareholder's
Name of Subsidiary Ratio of Minority ratio of Minority Minority Shareholders
Equity at the
Shareholders (%) Shareholders (%) Shareholders for for the
End of the
the Current Period Current
Period
Period
Zhejiang Xiao Wang Zi
2680698.3454933201.02
Food Co. Ltd. 5.1134 5.1134
Jingliang (Tianjin) Grain
7692000.00291700095.75
and Oil Industry Co. Ltd. 30.00 30.00
(3) Important financial information on major non-wholly-owned subsidiaries
Ending balance or Amount incurred in the current period
Items Zhejiang Xiao Wang Zi Food Jingliang (Tianjin) Grain and Oil
Co. Ltd. Industry Co. Ltd.Current Assets 689613771.26 1769547834.10
Non-current Assets 340142967.05 720438339.29
Total Assets 1029756738.31 2489986173.39
Current Liabilities 98855827.71 1030677448.23
Non-current Liabilities 17660046.22 486976623.09
Total Liabilities 116515873.93 1517654071.32
Operating Income 428413574.82 2364528344.23
Net Profit (Loss) 46252797.77 25638449.60
Total Comprehensive Income 46252797.77 25638449.60
Cash Flow from Operating Activities -2843845.04 568809524.65
(Continued)
Beginning balance or Amount incurred in the prior period
Items Zhejiang Xiao Wang Zi Food Jingliang (Tianjin) Grain and Oil
Co. Ltd. Industry Co. Ltd.Current Assets 694319525.47 1765160961.33
Non-current Assets 344517064.82 729047006.26
Total Assets 1038836590.29 2494207967.59
Current Liabilities 154188477.46 1184852881.71
Non-current Liabilities 17660046.22 362661433.41
Total Liabilities 171848523.68 1547514315.12
Operating Income 416698873.70 2947104694.61
Net Profit (Loss) 37568959.39 32495157.75
Total Comprehensive Income 37568959.39 32495157.75Items Beginning balance or Amount incurred in the prior period
Cash Flow from Operating Activities 13058616.32 -213367607.66
2. Equity in Joint Ventures or Affiliates
(1)Important Joint Ventures or Affiliates
Shareholding Accounting Treatment
Principle
Name of Joint Venture Registered Ratio (%) Methods for
Place of Nature of Business
or Affiliate Place Investment in Joint
Business Direct Indirect
Ventures or Affiliates
1. Joint Ventures
(1) Beijing Zhengda
Beijing Beijing Manufacturer 50.00 Equity method
Feed Co. Ltd.
2. Affiliates
(1) SINOGRAIN
Transportation and
(Tianjin) Warehousing Tianjin Tianjin 30.00 Equity method
warehousing
Logistics Co. Ltd.
(2) Jingliang Misimi
food management Beijing Beijing Manufacturer 48.00 Equity method
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 307375930.54 301420356.94
Including: cash and cash equivalents 26707472.30 21778758.99
Non-current assets 20087101.50 21331443.39
Total assets 327463032.04 322751800.33
Current liabilities 74335955.24 75869110.91
Non-current liabilities 3050827.76 4593536.23
Total liabilities 77386783.00 80462647.14
Minority shareholder's equity
Shareholders' equity attributable to the parent
250076249.04242289153.19
company
Share of net assets based on shareholding ratio 125038124.52 121144576.60
Adjustments
-- Goodwill
-- Unrealized profits from internal transactions
-- Other -193288.12
Book value of equity investment in joint ventures 124844836.40 121144576.60
Fair value of equity investment in joint ventures
with open offers
Operating income 164726777.97 152840560.07
Financial costs -3959367.67 -3176445.74
Income tax expense 2271436.27 5728902.62
Net profit 6478834.60 17186709.90Ending Balance/Current Beginning Balance/Last Term
Amount Amount
Item
Beijing Zhengda Feed Co.Beijing Zhengda Feed Co. Ltd.Ltd.Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 6478834.60 17186709.90
Dividends received from affiliates in the current
period
(3) Important financial information on major affiliates
Beginning Balance/Last Term
Ending Balance/Current Amount
Amount
Item
SINOGRAIN (Tianjin) Warehousing SINOGRAIN (Tianjin) Warehousing
Logistics Co. Ltd. Logistics Co. Ltd.Current assets 52098977.43 122303388.75
Non-current assets 851901950.11 816481284.48
Total assets 904000927.54 938784673.23
Current liabilities 51839195.69 110559868.69
Non-current liabilities 450217363.67 438856701.56
Total liabilities 502056559.36 549416570.25
Minority shareholder's equity
Shareholders' equity attributable to
401944368.18389368102.98
the parent company
Share of net assets based on
120583310.45116810430.89
shareholding ratio
Adjustments
-- Goodwill
-- Unrealized profits from internal
transactions
-- Others -1303601.83
Book value of equity investment in
119279708.62116810430.89
affiliates
Fair value of equity investment in
affiliates with open offers
Operating income 31195596.27 23237902.69
Net profit 12576265.20 10562815.64
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 12576265.20 10562815.64
Dividends received from 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. June 30th 2023
Financial assets
Financial assets
measured at fair
Financial assets measured at fair value
Financial asset value and the
measured at and the changes Total
items changes recorded in
amortized cost recorded in other
current profits and
comprehensive income
losses
Monetary funds 1251666904.81 1251666904.81
Transactional
16175691.4916175691.49
financial assets
Derivative
153000.00153000.00
financial assets
Notes receivables 154945.01 154945.01
Accounts
94785430.7594785430.75
receivables
Other receivables 438557843.89 438557843.89
Investment in other
20000000.0020000000.00
equity instruments
Current portion of
106546505.27106546505.27
non-current assets
Other current
231572760.24231572760.24
assets
Other non-current
33895087.3433895087.34
assets
B. December 31 2022
Financial assets Financial assets
Financial assets measured at fair value measured at fair value
Financial asset
measured at and the changes and the changes recorded Total
items
amortized cost recorded in current in other comprehensive
profits and losses income
Monetary funds 561013109.76 561013109.76
Transactional
11005983.9811005983.98
financial assets
Derivative
201549.12201549.12
financial assets
Accounts
77057446.8677057446.86
receivables
Other receivables 444523698.48 444523698.48
Investment in other
20000000.0020000000.00
equity instruments
Current portion of
148387894.16148387894.16
non-current assets
Other current
405999000.00165881137.81571880137.81
assets
Other non-current
53544782.3453544782.34
assets
(2) Book value of various financial liabilities on the balance sheet date
A. June 30th 2023Financial liabilities measured at
Other financial
Financial liability items fair value and changes included Total
liability
in current profits and losses
Short term loans 1642308166.66 1642308166.66
Derivative financial liability 84108320.00 84108320.00
Notes Payable 0.00 0.00
Accounts Payable 128731589.03 128731589.03
Other Payables 113457778.24 113457778.24
Long term loans 600000000.00 600000000.00
B. December 31 2022
Financial liabilities
measured at fair value and
Financial liability items Other financial liability Total
changes included in current
profits and losses
Short term loans 1260543148.81 1260543148.81
Derivative financial liability 111373155.00 111373155.00
Notes payable 3331333.80 3331333.80
Accounts payable 110911877.21 110911877.21
Other payables 83999685.56 83999685.56
Long term loans 500284166.67 500284166.67
2. Credit Risk
On June 30th 2023 the largest credit risk exposure that may cause financial loss to the Company mainly
comes from the loss on financial assets of the Company due to the failure of the other party to perform its
obligations including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument
measured at fair value its book value reflects its risk exposure instead of their biggest risk exposure and its
biggest risk exposure may vary with the change of its future fair value.In order to reduce the credit risk the Company sets relevant policies to control its exposure sets
corresponding credit periods based on customer’s financial position possibility of obtaining guarantees from third
parties credit records and other factors such as current market conditions and other credit qualifications for
customer assessment and implements other monitoring procedures to ensure that necessary measures are taken to
recover overdue credits. In addition the Company reviews the collection of individual account receivables on
each balance sheet date in order to make sufficient provision for bad debts for collectable amounts. Therefore the
Company's management believes that the Company's credit risk has been greatly reduced.The liquidity funds of the Company are deposited in banks with high credit rating so the credit risk of
liquidity funds is low.
3. Liquidity Risk
When managing liquidity risk the Company keeps and monitors adequate cash and cash equivalents
approved by its management in order to meet the Company's business needs and reduce the influences of cash
flow fluctuations. The Company's management monitors the use of bank loans and ensures the performance of
loan agreements.Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
June 30th 2023
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term loans 1642308166.66 1642308166.66
Derivative financial
84108320.0084108320.00
liabilityJune 30th 2023
Item
Within One Year 1 To 5 Years Above Five Years Total
Notes payable
Accounts Payable 124107328.14 4624260.89 128731589.03
Other payables 113457778.24 113457778.24
Long term loans 600000000.00 600000000.00
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)
4. Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due
to the change of market price. Market risk mainly includes interest rate risk foreign exchange risk and other price
risks such as equity instrument investment price risk.
(1) Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest
rates bring the Company the interest rate risk on cash flow while the financial liabilities at fixed interest rates
bring the Company the interest rate risk on fair value. The Company decides the relative proportion of fixed
interest rate contracts and floating interest rate contracts according to the current market environment.As of June 30th 2023 the Company's interest-bearing liabilities under floating rate contracts denominated in
RMB amounted to RMB 1248197500.00 and those under fixed rate contracts denominated in RMB amounted to
RMB 992930000.00.
(2) Exchange Rate Risk
The risk of foreign exchange changes faced by the company is mainly related to the company's operating
activities (when the income and expenditure are settled in a foreign currency different from the recording currency
of the company) and its net investment in overseas subsidiaries. The company's exposure to foreign exchange risk
is mainly related to US dollars. Except that some subsidiaries of the company purchase and sell in US dollars
other major business activities of the company are priced and settled in RMB. As of June 30 2023 the assets and
liabilities of the company are all RMB balances except that the assets or liabilities described in the following
table are USD balances. The foreign exchange risk arising from the assets and liabilities of such foreign currency
balance may have an impact on the operating performance of the company.Items Ending Balance Beginning Balance
Monetary funds 14142142.55 26078226.16
Prepayments 4245490.73
Short term borrowings 208938000.00
Other Payable 13629162.16
Note: the company pays close attention to the impact of exchange rate changes 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. Since any risk variable rarely
changes in isolation and the correlation between variables will have a significant effect on the final impactamount of a risk variable change the following contents are carried out on the assumption that the change of each
variable is independent.On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and
other variables remain unchanged the after tax impact of possible reasonable changes in exchange rate on current
profit and loss and equity is as follows:
Current period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase /(decrease) increase /(decrease) shareholders' equity
The yuan depreciated
237923.56237923.56
against the US dollar 5%
The yuan appreciated
-5% -237923.56 -237923.56 against the US dollar
Prior period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
The yuan depreciated
against the US dollar 5% -38998793.58 -38998793.58
The yuan appreciated
against the US dollar -5% 38998793.58 38998793.58
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
Ⅲ. Transactional financial
16175691.490.000.0016175691.49
assets
1. Financial assets that are
measured at fair value and
16175691.490.000.0016175691.49
whose changes are included in
the current profits and losses
(1) Investment in debt
16175691.4916175691.49
instruments
(2) Investment in equity
0.00
instruments
(3) Derivative financial assets 0.00
2. Financial assets designated
as fair value through profit or 0.00
loss
(1) Investment in debt
0.00
instruments
(2) Investment in equity
0.00
instruments
(3) Others 0.00
Ⅲ. Other debt investment 0.00
Ⅲ. Investment in other equity
20000000.0020000000.00
instruments
Total assets continuously
16175691.490.0020000000.0036175691.49
measured at fair value
Ⅲ.Transactional financial
84108320.000.000.0084108320.00
liabilities1. Financial liabilities measured
at fair value with changes
84108320.000.000.0084108320.00
included in current profits and
losses
Including: transactional bonds
0.00
issued
derivative financial liability 84108320.00 84108320.00
others 0.00
2. Financial liabilities
designated as fair value through 0.00
profit or loss
Total liabilities continuously
84108320.000.000.0084108320.00
measured at 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 project isthe ”three noes“ 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
Name of Parent Registered Legal Nature of Registered Capital
Company type
Company Place representative Business (ten thousand Yuan)
Beijing Grain Wholly state-owned Investment
Beijing Zhang Lijun 90000.00
Group Co. Ltd. enterprise Management
(Continued)
Proportion of Shares Held by Proportion of Voting Power
The ultimate controlling party
Parent Company in the Held by Parent Company in the Organization code
of the Company
Company (%) Company (%)
Beijing State-owned Capital
39.68 39.68 Operation and Management 91110000700224507H
Center
3. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
4. Joint Ventures and Affiliates of the Company
See 2. 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 Foods Co.Ltd Controlled by the ultimate controlling partyName of Other Related Party Relationship with the Company
Shanghai Shounong Investment Holding Co.Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co.Ltd Controlled by the ultimate controlling party
Beijing Dahongmen Grain Storage Co.Ltd Controlled by the ultimate controlling party
Beijing Gushun Foods Co.Ltd Controlled by the ultimate controlling party
Hebei Sanyuan Foods Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang E-commerce Co.Ltd Controlled by the ultimate controlling party
Beijing Hundred Years Chestnut Garden Ecological Agriculture Controlled by the ultimate controlling party
Co.Ltd
Beijing Sanyuan Foods Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Dahongmen Wulinlian Food Co.Ltd Controlled by the ultimate controlling party
Beijing Heiliu Herding Technology Co.Ltd Controlled by the ultimate controlling party
Beijing Ancient Boat Rice Co.Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co.Ltd Controlled by the ultimate controlling party
Beijing Shucheng Shanshui Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Bai Jiayi Food Co.Ltd Controlled by the ultimate controlling party
Beijing Baofeng Vegetable Distribution Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trading Co.Ltd Controlled by the ultimate controlling party
Beijing Zhangxin Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Haidian Xijiao Grain and Oil Supply Station Co.Ltd Controlled by the ultimate controlling party
Beijing No.34 Food Supply Department Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Dot-to-Dot E-commerce Co.Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Commercial Chain Co.Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Consumption and Poverty Alleviation Double Controlled by the ultimate controlling party
Creation Center Co.Ltd
Beijing Yunong Quality Agricultural Products Cultivation Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Taste 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 Agriculture Technology Co.Ltd Controlled by the ultimate controlling party
Shanghai Shounong Commercial Management Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Group Finance Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Group Co.Ltd Controlled by the ultimate controlling party
Shandong Fukuan Biological Engineering Co.Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Jinxing Duck Industry Co.Ltd Controlled by the ultimate controlling partyName of Other Related Party Relationship with the Company
Beijing Xinderun Agricultural Tourism Development Co.Ltd Controlled by the ultimate controlling party
Beijing Ailai Fahi Foods Co.Ltd Controlled by the ultimate controlling party
Beijing North Beijing Sugar & Wine Sales Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Yiho Sunshine Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Big Kitchen Supply Chain Management Group Controlled by the ultimate controlling party
Co.Ltd
Beijing Jinggou Taiyu Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Municipal Grain Research Institute Co.Ltd Controlled by the ultimate controlling party
Beijing Jinggong Lugu Trading Co.Ltd Controlled by the ultimate controlling party
Beijing Jiefang Grain & Oil Supply Co.Ltd Controlled by the ultimate controlling party
Beijing Jinggong Logistics Co.Ltd Controlled by the ultimate controlling party
Beijing Sanjiadian Grain Storage Co.Ltd Controlled by the ultimate controlling party
Beijing 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 Jingjing Jingu Grain Purchasing and Marketing Co.Ltd Controlled by the ultimate controlling party
Beijing Sons and Daughters Grain and Oil Supply Co.Ltd Controlled by the ultimate controlling party
Beijing Longqing Xadu Military Grain Supply Co.Ltd Controlled by the ultimate controlling party
Beijing Desheng Hotel Co.Ltd Controlled by the ultimate controlling party
Beijing Shuangtong Huihe Agricultural Science and Technology Controlled by the ultimate controlling party
Development Co.Ltd
Beijing Shounong Xiangshan Conference Center Co.Ltd Controlled by the ultimate controlling party
Beijing Beijiao Farm Co.Ltd Controlled by the ultimate controlling party
Beijing Yanqing Farm Co.Ltd Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Biotechnology Group Co.Ltd Controlled by the ultimate controlling party
Tianjin Xincheng Kanda Pharmaceutical Co.Ltd Controlled by the ultimate controlling party
Beijing Xing Fashion Trade Co.Ltd Controlled by the ultimate controlling party
Beijing Taoshan Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Shenghua Sihe Asset Management Co.Ltd Controlled by the ultimate controlling party
Beijing Municipal Grain Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Food Emergency Security Center Co.Ltd Controlled by the ultimate controlling party
Beijing Yue Sheng Zhai Halal Food Co.Ltd Controlled by the ultimate controlling party
Beijing Yanqi Yue Sheng Zhai Halal Food Co.Ltd Controlled by the ultimate controlling party
6. Related-party TransactionsA. Related-party transactions for purchasing and saling 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 Bainian Liyuan Ecological Agriculture Co.Purchase of goods 3134.00 7719.00
Ltd
Beijing Beishui Food Industry Co. Ltd Purchase of goods 75781.00
Beijing ershang Dahongmen five meat Co. Ltd Purchase of goods 343499.50
Beijing ershang Mochi Zhonghong Food Co. Ltd Purchase of goods 3927.00 32992.00
Beijing ershang mu xiang yuan Qing zhen Meat
6508.00
Food Group Co. Ltd
Beijing ershang Meat Food Group Co. Ltd Purchase of goods 1695.00 182656.94
Beijing Guchuan Rice Industry Co. Ltd Purchase of goods 1203330.50 139190.30
Beijing Guchuan Food Co. Ltd Purchase of goods 6462585.18 6374564.09
Beijing heiliu animal husbandry technology Co. Ltd Purchase of goods 127762.40 15387.50
Food center of Beijing heiliu animal husbandry
Purchase of goods 8950.60 10153.30
technology Co. Ltd
Beijing Huadu liquor Marketing Co. Ltd Purchase of goods 19476.00 13200.00
Beijing Huayu Food Co.Ltd Purchase of goods 55416.00
Beijing Jingliang Dongfang grain and Oil Trading
Purchase of goods 109950.98 251745.52
Co. Ltd
Beijing Liubiju Food Co. Ltd Purchase of goods 10740.00 3304.00
Beijing Nan jiao agriculture production management
Purchase of goods 2810.00
Co. Ltd
Beijing Sanyuan Food Co. Ltd Purchase of goods 189648.00 100874.00
Beijing shounong diandao technology business
Purchase of goods 300.00
Co.Ltd
Beijing Shounong Consumer Support Shuangchuang
Purchase of goods 4405.00
Center Co. Ltd.Beijing Shuangtong Huihe Agricultural Science and
Purchase of goods 732.00
Technology Development Co. Ltd.Beijing sugar industry tobacco and Liquor Group
Purchase of goods 19646.02 678.90
Co. Ltd.Beijing Yanqi Yueshengzhai Halal Food Co. Ltd. Purchase of goods 232494.60 993596.60
Beijing Yueshengzhai Halal Food Co. Ltd. Purchase of goods 116.10
Shandong Fukuan Biological Engineering Co. Ltd. Purchase of goods 679424.79 489983.19
Shanghai Shounong Investment Holding Co. Ltd. Purchase of goods 174185557.44
Chengde Sanyuan Jinxing Duck Industry Co. Ltd. Purchase of goods 900.00
Beijing North Water Food Industry Co. Ltd. Purchase of goods 11990.50
Beijing Ershang Jinghua Tea Industry Co. Ltd. Purchaseof goods 10395.00
Beijing First Agricultural Flavor Group Co. Ltd Purchaseof goods 22074.11
Beijing Sanyuan Meiyuan Food Co. Ltd. Purchase of goods 66477.60Yu Nong High Quality Agricultural Products Co.Purchase of goods 2850.00
Ltd. . Huairou District Branch
Total 183743485.11 8735137.55
(2) Sale of goods/ provision of labor services
Related-party Last Term
Related Party Current Amount
Transaction Amount
Beijing Alai Faxi Food Co. Ltd. Sale of goods 83096.00 21240.00
Beijing Baijiayi Food Co. Ltd. Sale of goods 2028592.00 588600.00
Beijing North Beijing Sugar Foreign Wine Sales Co.Sale of goods 15851.00 25597.00
Ltd.Beijing Ershang Dahongmen Wulian Food Co. Ltd Sale of goods 10807.00
Beijing Ershang Jinghua Tea Industry Co. Ltd. Sale of goods 706.42
Beijing Ershang Meat Food Group Co. Ltd Sale of goods 24000.00 23400.00
Beijing Guchuan Rice Industry Co. Ltd Sale of goods 77187.02 154817.50
Beijing Guchuan Food Co. Ltd Sale of goods 184647.44 1083679.52
Beijing Jingliang Dongfang grain and Oil Trading Co.Sale of goods 1578881.67 2807978.31
Ltd
Beijing Jingliang Biotechnology Group Co. Ltd Sale of goods 660.55
Beijing Jingliangtaiyu Real Estate Co. Ltd Sale of goods 111600.00
Beijing Jingdingsheng Sugar Trading Co. Ltd Sale of goods 6927.00
Beijing luanfeng Vegetable Distribution Co. Ltd Sale of goods 286494.00 448590.00
Beijing Liubiju Huairou District BreweryCo. Ltd Sale of goods 6684323.12 3159049.53
Beijing Nanjiao Agricultural Production Management
Sale of goods 18470.00
Co. Ltd.Beijing Sanjiadian Grain Storage Co. Ltd Sale of goods 99456.00
Beijing Sanyuan Food Co. Ltd Sale of goods 151170.00 107695.00
Beijing Sanyuan Seed Industry Science and
Sale of goods 29995064.69 26720100.70
Technology Co. Ltd. . Feed branch
Beijing Beijiao Farm Co. Ltd Sale of goods 3080.00 5818.00
Beijing Haidian District Xijiao Grain and Oil Supply
Sale of goods 1738000.00 2820200.00
Station Co. Ltd
Beijing Kyoto Kanaya Grain Purchasing and
Sale of goods 655540.00
Marketing Co. Ltd.Beijing Academy of Grain Science Co. Ltd Sale of goods 1700.00 830.00
Beijing Longqing Xiadu Military Food Supply Co.Sale of goods 284000.00 458000.00
LtdBeijing Food Supply Office No. 34 Supply Department
Sale of goods 1488023.46 1007533.90
Co. Ltd
Beijing Yanqing District Farm Co. Ltd Sale of goods 3000.00 14998.35
Beijing Zhangxin Grain Reserve Co. Ltd Sale of goods 1356413.11
Beijing Changyang Farm Co. Ltd Sale of goods 148928.65
Beijing Shoucheng Landscape Property Co. Ltd Sale of goods 45720.00 114935.00
Beijing first agricultural point to Network e-commerce
Sale of goods 126210.49 250655.29
Co. Ltd
Beijing First Agricultural Development Co. Ltd Sale of goods 30838.00 12739.00
Beijing Shounong Commercial Chain Co. Ltd. .Sale of goods 81163.00 29.55
Yanqing District Branch
Beijing Shounong Food Group Co. Ltd Sale of goods 38354.49 27269.73
Beijing shounong Xiangshan Convention Center Co.Sale of goods 42750.00 7560.00
Ltd
Beijing Shounong Consumer Support Shuangchuang
Sale of goods 5309640.00 6262107.00
Center Co. Ltd
Beijing Shuangtong Huihe Agricultural Science and
Sale of goods 31225.00
Technology Development Co. Ltd
Beijing Momoyama Grain Reserve Co. Ltd Sale of goods 15484.00 13073.39
Beijing First Agricultural Flavor Group Co. Ltd Sale of goods 15469952.89 31138627.74
Beijing Wuhuan Shuntong Supply Chain Management
Sale of goods 570548.64 2393912.53
Co. Ltd
Beijing Xing Fashion Trading Co. Ltd Sale of goods 13073.39 9357.80
Hebei Anping Dahongmen Food Co. Ltd Sale of goods 621651.37
Hebei Luanping Huadu Food Co. Ltd. Sale of goods 21221360.94 8703134.00
Hebei Sanyuan Food Co. Ltd Sale of goods 994300.00
Hebei Shounong Modern Agricultural Technology
Sale of goods 7153219.41 10909242.63
Co. Ltd
Shanghai Shounong Investment Holding Co. Ltd Sale of goods 216123328.83 101524844.91
Tianjin Xincheng Kangda Pharmaceutical Co. Ltd Sale of goods 610.00
Beijing Ershang Xijie Food Co. Ltd Sale of goods 1701284.40
Beijing Ershang Jardine Sunshine Property Co. Ltd Sale of goods 49620.00
Beijing Hongyuan Li military food and Oil Supply
Sale of goods 221000.00
Co. Ltd
Beijing Jingliang Logistics Co. Ltd Sale of goods 92140.00
Beijing Jingliang Canal Grain and Oil Trading Co.Sale of goods 38502.00
LtdBeijing Longmen Vinegar Industry Co. Ltd. Sale of goods 201.83
Beijing Desheng Hotel Co. Ltd Sale of goods 73930.00
Beijing Zi di Bing Grain and Oil Supply Co. Ltd. Sale of goods 1952000.00
Beijing Zhujun Grain and Oil Supply Co. Ltd Sale of goods 1893933.20
Beijing Xinderun Agricultural Tourism Development
Sale of goods 59659.36
Co. Ltd
Beijing Yunong high-quality Agricultural Products
Sale of goods 59975.70
Co. Ltd. . Daxing branch
Yu Nong High Quality Agricultural Products Co.Sale of goods 171074.00
Ltd. . Huairou District Branch
Beijing Shounong Oriental Food Supply Chain
Sale of goods 1038926.00
Management Group Co. Ltd
Provision of
Shanghai Shounong Investment Holding Co. Ltd 4677494.81 671924.51 services
Provision of
Beijing Capital Agricultural Food Group Co. Ltd. 11438400.93 services
Total 331041945.32 208839787.38
Related-party transactions for purchasing and saling 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.B. Related-party lease
(1) If the Company is the lessee
Lease Expense Lease Expense
Type of Leased Pricing basis of
Name of Lessee Recognized in the Recognized in the
Asset rleasing fee
Current Period Prior Period
Beijing First Agricultural
House leasing Market price 1774606.64
Development Co. Ltd.Beijing Dahongmen Grain
House leasing Market price 311324.36 327298.99
Storage Co. Ltd.Beijing shounong Food
Emergency Support Center House leasing Market price 1312500.00 1147575.39
Co. Ltd
Beijing Nanyuan Vegetable
House leasing Market price 323809.52
Oil Factory Co. Ltd
Total 1947633.88 3249481.02
C.Other relative transaction
Nature of related party Current Last Term
Related parties
transcations Amount Amount
Electricity and telephone
Beijing Grain Group Co. Ltd. 2768.48
chargesNature of related party Current Last Term
Related parties
transcations Amount Amount
Electricity cleaning Internet
Beijing Dahongmen Grain Storage Co. Ltd. 38018.00 35177.08
usage
Beijing Haidian District Second Commercial
Training fees 1650.00
Vocational Skills Training School
Electricity and telephone
Beijing Shounong Development Co. Ltd. 1237.69 5755.81
charges
Beijing shounong Food Emergency Support Electricity charges pound
63518.42104497.20
Center Co. Ltd. charges
Beijing shounong Xiangshan Convention
Training Fee conference fee 4433.97
Center Co. Ltd.Subtotal 111626.56 145430.09
D.Remuneration for key management staff
Current Amount (Unit: ten Last Term Amount (Unit: ten
Item
thousand yuan) thousand yuan)
Remuneration for Key Management Staff 223.83 122.27
7. Related-party Receivables and Payables
(1) Receivables
Ending Balance Beginning Balance
Provision Provision
Item Related-party
Book Balance for Bad Book Balance for Bad
Debts Debts
Monetary Beijing shounong Food
978765297.11339487166.55
funds Group Finance Co. Ltd
Total 978765297.11 339487166.55
Shanghai Shounong
Receivables Investment Holding Co. 19432675.33
Ltd
Hebei Luanping Huadu
3565820.803548214.00
Food Co. Ltd
Beijing Sanyuan Seed
Industry Science and
3288386.722056939.44
Technology Co. Ltd. .Feed branchBeijing Shounong
Consumer Support
1986690.001737500.00
Shuangchuang Center Co.Ltd
Hebei Shounong Modern
Agricultural Technology 1294453.94
Co. Ltd
Hebei Anping Dahongmen
483200.00
Food Co. Ltd
Beijing Zhangxin Grain
481320.00665000.00
Reserve Co. Ltd
Beijing Jingliang
Dongfang grain and Oil 344135.00 1198484.00
Trading Co. Ltd
Beijing Food Supply
Office No. 34 Supply 309996.00 279035.00
Department Co. Ltd
Beijing Baijiayi Food Co.
179400.00180695.00
Ltd
Beijing Sanyuan Food
127200.00
Co. Ltd
Beijing Longqing Xiadu
Military Food Supply Co. 84000.00
Ltd
Beijing luanfeng Vegetable
53600.0084200.00
Distribution Co. Ltd
Beijing First Agricultural
38663.00
Development Co. Ltd
Beijing Wuhuan Shuntong
Supply Chain Management 18245.50
Co. Ltd
Beijing Shoucheng
Landscape Property Co. 17610.00 33355.00
Ltd
Huairou District Brewery 13080.00
Beijing Alai Faxi Food
10265.00
Co. LtdBeijing Nanjiao
Agricultural Production 3270.00
Management Co. Ltd
Beijing North Beijing
Sugar Foreign Wine Sales 2618.00
Co. Ltd
Beijing Jingdingsheng
380.00
Sugar Trading Co. Ltd
Beijing Guchuan Rice
285.00
Industry Co. Ltd
Beijing Guchuan Food
82800.00
Co. Ltd
Beijing Haidian District
Xijiao Grain and Oil 82500.00
Supply Station Co. Ltd
Beijing first agricultural
point to Network 95120.40
e-commerce Co. Ltd
Hebei Sanyuan Food Co.
1685000.00
Ltd
Beijing Yunong
high-quality Agricultural 3120.00
Products Co. Ltd
Total 31735294.29 11731962.84
Shanghai Shounong
Prepaid
Expenses Investment Holding Co.
379840707.34
Ltd
Beijing Academy of Grain
16400000.00
Science Co. Ltd
Beijing Huadu Liquor
13200.00
Marketing Co. Ltd
Beijing Wang Zhihe Food
96.00
Co. Ltd
Total 396254003.34
Other Beijing Dahongmen Grain 55232.00 55232.00
receivebles Storage Co. Ltd
Beijing Guchuan Rice
50000.0050000.00
Industry Co. Ltd
Total 105232.00 105232.00
(2) PayablesItem Related-party Ending Balance Beginning balance
Shanghai Shounong Investment
Contract liability 3614532.86 3448410.37
Holding Co. Ltd
Beijing Shoucheng Landscape
29350.00
Property Co. Ltd
Beijing First Agricultural
21500.00
Development Co. Ltd.Beijing Jingliang Dongfang grain
15088.2015088.20
and Oil Trading Co. Ltd
Beijing Wuhuan Shuntong Supply
3192.543192.54
Chain Management Co. Ltd
Beijing Liubiju Food Co. Ltd 59300.00
Beijing Shounong Commercial
293.20
Chain Co. Ltd
Total 3683663.60 3526284.31
Beijing shounong Food Emergency
Payables 1312500.00
Support Center Co. Ltd
Beijing Guchuan Food Co. Ltd 244537.59 240000.00
Beijing Guchuan Rice Industry
21284.40
Co. Ltd
Beijing Sanyuan Food Co. Ltd 18134.16 50.48
Beijing Jingliang Dongfang grain
10012.00
and Oil Trading Co. Ltd
Beijing Liubiju Food Co. Ltd 5789.39
Beijing Huayu Food Co. Ltd 546.00
Beijing Heiliu Animal Husbandry
397.20
Technology Co. Ltd
Beijing Heiliu Animal Husbandry
372.002826.00
Technology Co. Ltd
Beijing Alai Faxi Food Co. Ltd 309.73
Beijing Ershang Dahongmen
96.7919115.04
Wulian Food Co. Ltd
Beijing Wang Zhihe Food Co. Ltd 84.96
Beijing Nanjiao Agricultural
75.00
Production Management Co. Ltd
Beijing century Li Yuan Ecological
110.00
Agriculture Co. LtdTotal 1614139.22 262101.52
Other payables Beijing Grain Group Co. Ltd 3442750.30 2862750.30
Beijing Guchuan Food Co. Ltd 751045.33
Hebei Sanyuan Food Co. Ltd 140000.00 140000.00
Beijing Jingliang Electronic
67891.2067891.21
Commerce Co. Ltd
Total 6015826.05 3332743.03
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 the reporting period the amount of guarantee of the company and its holding subsidiary had
been approved was 5.788 billion yuan and the actual amount of guarantee of the company and its holding
subsidiaries was 1.185 billion yuan accounting for the company's recent audit of the proportion of the net assets
belonging to the parent company is 37.79% are between the company and the holding subsidiary of the guarantee.There is no guarantee provided by the company and its holding subsidiary to the entity outside the consolidated
statement. There is no guarantee for the company beyond the time limit the guarantee involving litigation and the
loss due to the judgment of losing litigation.XIV. Events after the Balance Sheet Date
1. Distribution of Profits
As of the date of this financial report the company has no important non adjustment matters that need to be
disclosed.XV. Other Important Matters
1. Annuity Plan
Basic information of annuity: Beijing Jingliang Food Co. Ltd. Beijing Guchuan Oil Co. Ltd. Beijing Essen
Lubao Oil Co. Ltd. Beijing Jingliang Oil Co. Ltd. Beijing Guchuan bread and Food Co. Ltd. Jingliang (Tianjin)
grain and oil industry Co. Ltd. and Beijing tianweikang Oil Distribution Center Co. Ltd. participated in the
enterprise annuity scheme of Beijing shounong Food Group Co. Ltd To formulate the detailed rules for the
implementation of their respective enterprises under the annuity scheme. The name of the annuity plan is Ping An
Jinxiu life enterprise annuity plan; Both the trustee and the account manager are ping an Endowment Insurance
Co. Ltd; The trustee is China CITIC Bank Co. Ltd.
2. Information of Divisions
(1) Basis of determination and accounting policies for reporting of divisions
According to the internal organization structure operation demands and internal reporting system of the
company the Company's business scopes consist of food processing oil and grease and so on according to itsinternal organizational structure management requirements and internal reporting system. The Company's
management regularly evaluates the operating results of these divisions to determine the allocation of resources to
them and evaluate their performance. The information reported by divisions should be disclosed according to the
accounting policies and measurement standards adopted by such divisions when they are reporting to the
management. These measurement bases should be consistent with the accounting and measurement bases for
preparation of financial statements.
(2) Reporting of the financial information of divisions
Offset Among
Item Food Processing Oil & Grease Other Total
Dvisions
Operating
492060119.066651725370.87-2320551281.754823234208.18
income
Operating
370305726.976573919795.87-2313255053.704630970469.14
costs
Operating profit 61990033.62 91617449.38 -39688498.92 113918984.08
Net profit
attributable to 47234242.53 75941743.99 -49594191.16 73581795.36
parent company
Total assets 1125252721.72 12119578000.48 -6304313276.41 6940517445.79
Total liabilities 129791795.46 5649302979.78 -2386794310.44 3392300464.80
3. Lease
The lessee shall disclose the following information in relation with the lease.Item Amount
Interest expense on lease liability 32165.52
Short-term lease payments charged to current profit or loss 2803833.88
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 1512001.62
Gains and losses related to sale and leaseback transactions
XVI. Notes to Main Financial Statement Items of Parent Company
A.Other receivables
1. Classification of General table
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 150000000.00
Other receivables 360000115.58 199000000.00
Total 360000115.58 349000000.00
2. Other receivables
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 360000115.58
Among them: Within credit period (within 3 months) 161000115.58Aging Ending Balance
Credit period to 1 year 199000000.00
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 360000115.58
Less: Allowance for bad debts
Total 360000115.58
(2) Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Intercourse Funds of Units 360000115.58 199000000.00
Reserve fund
Total 360000115.58 199000000.00
(3) 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 of bad debt
Organization Funds Period
other receivables (%) reserves
Beijing Jingliang Related party Within 1 year1
Food Co. Ltd borrowing 360000000.00
99.99
to 2 years
Total 360000000.00
B. 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
subsidiaries 2619157283.19 2619157283.19 2619157283.19 2619157283.19
Total 2619157283.19 2619157283.19 2619157283.19 2619157283.19
1.Investment in subsidiaries
Current Ending
Beginning Current Current Provision Balance of
Invested Entity Ending Balance
Balance Increase Decrease for Provision for
Impairment Impairment
Beijing Jingliang
2336639964.052336639964.05
Food Co. Ltd.Zhejiang little
prince Food Co. 249017319.14 249017319.14
Ltd
Jingliang
(Caofeidian)
Agricultural 25500000.00 25500000.00
Development Co.Ltd.Jingliang (Beijing)
Food Marketing
8000000.008000000.00
Management Co.Ltd
Total 2619157283.19 2619157283.19
C.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 11839311.03 170581.26 382744.96 170581.26
Total 11839311.03 170581.26 382744.96 170581.26
D. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated by cost method 150814.85
Total 150814.85
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 -2209.46
(2) Government subsidies included in the current profits and losses (closely
related to the business of the enterprise except the government subsidies 2076110.00
enjoyed according to the national unified standard quota or quantitative)
(3) In addition to the effective hedging business related to the normal business
of the company the profit and loss from changes in fair value arising from
holding trading financial assets derivative financial assets trading financial
liabilities and derivative financial liabilities as well as the investment income 169707.51
from the disposal of trading financial assets derivative financial assets trading
financial liabilities derivative financial liabilities and other debt investments
(4) Custodial fee income from entrusted operations 11438400.93
(5) Other non-operating income and expenses other than the above 3375520.92
(6) Other profit and loss items that meet the definition of non recurring profit
and loss
Total non recurring profit and loss 17057529.90
Less: amount affected by income tax 1396591.07
Non recurring profit and loss after deducting the influence of income tax 15660938.83Details of non-recurring profit and loss Amount Note
Including: non recurring profit and loss attributable to the owner of the parent
company 15486119.75
Non recurring profit and loss attributable to minority shareholders 174819.08
(2)Return on equity and earnings per share
Weighted Return on Average Equity EPS
Current Profit
(ROAE) (%) Basic EPS Diluted EPS
Net profit attributable to the
Company's common shareholders 2.37 0.10 0.10
Net profit attributable to common
shareholders after deduction of 1.88 0.08 0.08
non-recurring gains and losses
Hainan Jingliang Holdings Co. Ltd.August 23rd 2023
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