Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Stock Code: 000505 200505 Stock Name: JLKG JL-B Announcement No. 2022-068

HAINAN JINGLIANG HOLDINGS CO. LTD.THIRD QUARTERLY REPORT 2022

Hainan Jingliang Holdings Co. Ltd. (hereinafter referred to as the “Company”) and all the

members of the Company’s Board of Directors hereby guarantee that the contents of this

Report are true accurate and complete and free of any misrepresentations misleading

statements or material omissions.Important Notes:

1. The Board of Directors the Supervisory Committee as well as the directors supervisors and senior

management of the Company hereby guarantee that the contents of this Report are true accurate and complete

and free of any misrepresentations misleading statements or material omissions and collectively and

individually accept legal responsibility for such contents.

2. The Company’s legal representative head for financial affairs and head of the financial department

(equivalent to financial manager) hereby guarantee that the financial statements carried in this Report are true

accurate and complete.

3. Indicate whether the financial statements in this Report have been audited by an independent auditor.

□Yes □ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q3 2022 YoY change (%) Q1-Q3 2022 YoY change (%)

Operating revenue (RMB) 3931892303.79 31.61% 9444673574.11 13.58%

Net profit attributable to the listed company’s

18632830.26-53.16%91541160.41-28.54%

shareholders (RMB)

Net profit attributable to the listed company’s

shareholders before exceptional gains and 15748627.17 -59.95% 87014366.64 -29.02%

losses (RMB)

1Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Net cash generated from/used in operating

——-164930595.45-120.31%

activities (RMB)

Basic earnings per share (RMB/share) 0.03 -40.00% 0.13 -27.78%

Diluted earnings per share (RMB/share) 0.03 -40.00% 0.13 -27.78%

Weighted average return on equity (%) 0.62% -0.79% 3.09% -1.53%

30 September 31 December

Change (%)

20222021

Total assets (RMB) 6594401630.56 6046600058.90 9.06%

Equity attributable to the listed company’s

3008680445.412915802291.053.19%

shareholders (RMB)

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q3 2022 Q1-Q3 2022 Note

Gain or loss on disposal of non-current assets (inclusive of

70498.16512239.55

impairment allowance write-offs)

Government grants through profit or loss (exclusive of government

grants continuously given in the Company’s ordinary course of

3618076.255097417.38

business at fixed quotas or amounts as per the government’s

policies and standards)

Gain or loss on fair-value changes on held-for-trading financial

assets and liabilities & income from disposal of held-for-trading

financial assets and liabilities and available-for-sale financial assets 98727.39 516810.72

(exclusive of the effective portion of hedges that arise in the

Company’s ordinary course of business)

Non-operating income and expense other than the above 1016837.17 1133725.08

Less: Income tax effects 1200034.24 1815048.18

Non-controlling interests effects (net of tax) 719901.64 918350.78

Total 2884203.09 4526793.77 --

Other items that meet the definition of exceptional gain/loss:

□Applicable □ Not applicable

No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the

Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the

Public—Exceptional Gain/Loss Items:

□Applicable □ Not applicable

No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why

□ Applicable □ Not applicable

1. Prepayments increased primarily because during Q1-Q3 2022 the prices of certain bulk materials went up

due to international market changes and the Company had to procure imported soybean and other oils and

2Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

oilseeds for production and operation needs leading to the increased prepayments to suppliers.

2. Derivative financial liabilities decreased primarily driven by changes in the fair value of hedge instruments as

at 30 September 2022 as compared to 1 January 2022.

3. Other current liabilities increased primarily driven by changes in the fair value of hedged items as at 30

September 2022 as compared to 1 January 2022.

4. Long-term borrowings increased primarily driven by the additional three-year bank loan taken out at a proper

loan rate during Q1-Q3 2022 according to financial plans.

5. Gain on fair value changes increased primarily driven by the decreased floating fair value loss of the hedging

business during Q1-Q3 2022 as compared to Q1-Q3 2021.

6. Net profit attributable to the listed company’s shareholders decreased primarily because during Q1-Q3 2022

raw material costs increased year on year due to the recurrent COVID-19 outbreaks regional international

conflicts substantial fluctuations of bulk material prices rise of energy prices etc.; and to fully ensure the

cooking oil supply for the Beijing-Tianjin-Hebei region and take on its social responsibility the room for profit

of the Company’s products for the end markets was squeezed due to price adjustments logistics disruptions etc.

7. Net cash generated from operating activities decreased primarily driven by the increased purchase amount of

oils and oilseeds such as soybean during Q1-Q3 2022 as compared to Q1-Q3 2021.II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well

as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders at the period- Number of preferred shareholders with resumed

688420

end voting rights at the period-end (if any)

Top 10 shareholders

Sharehold Shares in pledge marked or

Nature of ing Total shares Restricted frozen

Name of shareholder

shareholder percentag held shares held

Status Shares

e

BEIJING GRAIN GROUP CO. State-owned

39.68%2884395610

LTD. legal person

BEIJING STATE-OWNED

CAPITAL OPERATION AND State-owned

6.67%485104600

MANAGEMENT COMPANY legal person

LIMITED

Domestic

WANG YUECHENG natural 5.66% 41159887 41159887

person

Foreign

LISHER YNZHAN MING natural 0.41% 3006300 0

person

3Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Domestic

WANG ZHIQIANG natural 0.36% 2607123 0

person

Domestic

MEI JIANYING natural 0.36% 2604203 0

person

Domestic

ZHANG XIAOXIA natural 0.27% 1949250 0

person

Domestic

CHEN TING natural 0.25% 1785169 0

person

Domestic

JIN YIDONG natural 0.24% 1754900 0

person

Domestic

WANG XIAOXING natural 0.23% 1654200 0

person

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held

Type Shares

RMB-

BEIJING GRAIN GROUP CO. LTD. 288439561 denominated 288439561

ordinary stock

BEIJING STATE-OWNED CAPITAL RMB-

OPERATION AND MANAGEMENT 48510460 denominated 48510460

COMPANY LIMITED ordinary stock

Domestically

LISHER YNZHAN MING 3006300 listed foreign 3006300

stock

RMB-

WANG ZHIQIANG 2607123 denominated 2607123

ordinary stock

RMB-

MEI JIANYING 2604203 denominated 2604203

ordinary stock

Domestically

ZHANG XIAOXIA 1949250 listed foreign 1949250

stock

RMB-

CHEN TING 1785169 denominated 1785169

ordinary stock

RMB-

JIN YIDONG 1754900 denominated 1754900

ordinary stock

RMB-

WANG XIAOXING 1654200 denominated 1654200

ordinary stock

RMB-

RUI MING 1392630 denominated 1392630

ordinary stock

* Beijing State-Owned Capital Operation and Management

Company Limited indirectly owns 100% of Beijing Grain Group

Co. Ltd. and Beijing Grain Group Co. Ltd. is the controlling

Related or acting-in-concert parties among the shareholders shareholder of the Company (a 39.68% holding).above * Wang Yuecheng is a Deputy General Manager of the

Company. Apart from the aforesaid the Company does not know

whether there are any other related parties or acting-in-concert

parties among the top 10 shareholders.* Shareholder Jin Yidong held 1754900 shares in the Company

Top 10 shareholders engaged in securities margin trading (if

through his account of collateral securities for margin trading in

any)

Ping An Securities Co. Ltd.

4Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

* Shareholder Wang Xiaoxing held 1654200 shares in the

Company through his account of collateral securities for margin

trading in Soochow Securities Co. Ltd.* Shareholder Rui Ming held 1387530 shares in the Company

through his account of collateral securities for margin trading in

Eastmoney Securities Co. Ltd.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□Applicable □ Not applicable

III Other Significant Events

□Applicable □ Not applicable

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Hainan Jingliang Holdings Co. Ltd.

30 September 2022

Unit: RMB

Item 30 September 2022 1 January 2022

Current assets:

Monetary assets 955219032.97 507144668.45

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 34000000.00 40377048.08

Derivative financial assets 4220320.00 0.00

Notes receivable

Accounts receivable 85274972.63 82694094.62

Receivables financing

Prepayments 480518968.05 87803762.15

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 322902335.03 284756636.27

Including: Interest receivable

Dividends receivable

Financial assets purchased under resale

agreements

Inventories 1913380447.11 1903372572.18

Contract assets

Assets held for sale

Current portion of non-current assets 135318533.34 156139100.00

Other current assets 600617847.07 820500621.47

Total current assets 4531452456.20 3882788503.22

Non-current assets:

Loans and advances to customers

Debt investments

5Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Other debt investments

Long-term receivables

Long-term equity investments 245207594.14 230799437.53

Investments in other equity

20000000.0020000000.00

instruments

Other non-current financial assets

Investment property 20282617.48 20925683.56

Fixed assets 1052370807.16 1120758409.49

Construction in progress 21240470.55 11220840.10

Productive living assets

Oil and gas assets

Right-of-use assets 6864283.76 8045406.28

Intangible assets 328941633.10 339970477.87

Development costs

Goodwill 191394422.51 191394422.51

Long-term prepaid expense 17255309.73 17383818.41

Deferred income tax assets 11166467.11 13571063.19

Other non-current assets 148225568.82 189741996.74

Total non-current assets 2062949174.36 2163811555.68

Total assets 6594401630.56 6046600058.90

Current liabilities:

Short-term borrowings 1729477363.06 1521669601.35

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities 23240050.00 70305871.37

Notes payable 3331333.80 0.00

Accounts payable 219788378.36 186748746.42

Advances from customers 1500978.34 996173.41

Contract liabilities 608819559.01 520816995.93

Financial assets sold under repurchase

agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 13219383.88 42130650.49

Taxes and levies payable 59227903.11 104347852.69

Other payables 75593087.55 73985586.39

Including: Interest payable 21082795.47 21082795.47

Dividends payable 3213302.88 3213302.88

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

972572.071582978.69

liabilities

Other current liabilities 129529379.34 22994553.60

Total current liabilities 2864699988.52 2545579010.34

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 200000000.00 71000000.00

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities 1455443.24 1694702.62

Long-term payables

6Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Long-term employee benefits payable 5677134.00 5677134.00

Provisions

Deferred income 63739343.05 65244499.48

Deferred income tax liabilities 36842181.87 45250919.91

Other non-current liabilities

Total non-current liabilities 307714102.16 188867256.01

Total liabilities 3172414090.68 2734446266.35

Owners’ equity:

Share capital 726950251.00 726950251.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 1675918350.95 1675918350.95

Less: Treasury stock

Other comprehensive income 654711.73 -682282.22

Specific reserve

Surplus reserves 122122436.98 122122436.98

General reserve

Retained earnings 483034694.75 391493534.34

Total equity attributable to owners of the

3008680445.412915802291.05

Company as the parent

Non-controlling interests 413307094.47 396351501.50

Total owners’ equity 3421987539.88 3312153792.55

Total liabilities and owners’ equity 6594401630.56 6046600058.90

Legal representative: Wang Chunli Head for financial affairs: Guan Ying

Head of the financial department: Liu Quanli

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2022 Q1~Q3 2021

1. Revenues 9444673574.11 8315742920.09

Including: Operating revenue 9444673574.11 8315742920.09

Interest income

Insurance premium income

Fee and commission

income

2. Costs and expenses 9292969772.17 8081991216.67

Including: Cost of sales 8969020009.34 7776768013.40

Interest expense

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 21932139.34 18461769.53

Selling expense 138731146.80 117943899.25

Administrative expense 135209642.66 132962334.98

R&D expense 8955399.04 9256210.41

Finance costs 19121434.99 26598989.10

7Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Including: Interest

28748980.6931651500.07

expense

Interest income 12558659.57 7581291.29

Add: Other income 12780796.35 9275885.46

Return on investment (“-” for loss) 14894485.42 37881484.99

Including: Share of profit or loss

14408156.6131566509.34

of joint ventures and associates

Income from the derecognition

of financial assets at amortized cost (“-”

for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

-31575326.85-95948905.70

for loss)

Credit impairment loss (“-” for

47502.1018054.91

loss)

Asset impairment loss (“-” for

185390.400.00

loss)

Asset disposal income (“-” for

512239.55-20756.74

loss)

3. Operating profit (“-” for loss) 148548888.91 184957466.34

Add: Non-operating income 1796295.85 1798665.21

Less: Non-operating expense 662570.77 300560.55

4. Gross profit (“-” for loss) 149682613.99 186455571.00

Less: Income tax expense 41185860.61 44100653.47

5. Net profit (“-” for net loss) 108496753.38 142354917.53

5.1 By operating continuity

5.1.1 Net profit from continuing

108496753.38142354917.53

operations (“-” for net loss)

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

shareholders of the Company as the 91541160.41 128107050.13

parent (“-” for net loss)

5.2.1 Net profit attributable to non-

16955592.9714247867.40

controlling interests (“-” for net loss)

6. Other comprehensive income net of

1336993.95-79021.12

tax

Attributable to owners of the

1336993.95-79021.12

Company as the parent

6.1 Items that will not be

reclassified to profit or loss

6.1.1 Changes caused by

remeasurements on defined benefit

schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

investments in other equity instruments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

1336993.95-79021.12

profit or loss

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

8Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign currency- 1336993.95 -79021.12

denominated financial statements

6.2.7 Other

Attributable to non-controlling

interests

7. Total comprehensive income 109833747.33 142275896.41

7.1 Attributable to owners of the

92878154.36128028029.01

Company as the parent

7.2 Attributable to non-controlling

16955592.9714247867.40

interests

8. Earnings per share

8.1 Basic earnings per share 0.13 0.18

8.2 Diluted earnings per share 0.13 0.18

Legal representative: Wang Chunli Head for financial affairs: Guan Ying

Head of the financial department: Liu Quanli

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2022 Q1~Q3 2021

1. Cash flows from operating activities:

Proceeds from sale of commodities

10163412534.029485114406.99

and rendering of services

Net increase in customer deposits and

deposits from other banks and financial

institutions

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks

and financial institutions

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax and levy rebates 28300559.99 18120343.10

Cash generated from other operating

2102513671.211601513939.75

activities

Subtotal of cash generated from

12294226765.2211104748689.84

operating activities

Payments for commodities and services 9686335234.67 8086227547.27

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and other banks and financial

institutions

9Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

Payments for claims on original

insurance contracts

Net increase in loans to other banks and

financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 249849330.91 242680670.19

Taxes and levies paid 247642529.51 158094365.29

Cash used in other operating activities 2275330265.58 1805568550.21

Subtotal of cash used in operating

12459157360.6710292571132.96

activities

Net cash generated from/used in

-164930595.45812177556.88

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment 1794712406.52 756252300.48

Return on investment 577477.39 45217765.34

Net proceeds from the disposal of fixed

assets intangible assets and other long- 907902.60 91284.78

lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

1796197786.51801561350.60

investing activities

Payments for the acquisition of fixed

assets intangible assets and other long- 23927419.48 44052585.83

lived assets

Payments for investments 1464999000.00 830000000.00

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing activities

Subtotal of cash used in investing

1488926419.48874052585.83

activities

Net cash generated from/used in

307271367.03-72491235.23

investing activities

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to subsidiaries

Borrowings raised 3392095326.21 2123279083.94

Cash generated from other financing

activities

Subtotal of cash generated from

3392095326.212123279083.94

financing activities

Repayment of borrowings 3055287564.50 2083544876.68

Interest and dividends paid 34105089.49 102310728.41

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing activities

Subtotal of cash used in financing

3089392653.992185855605.09

activities

Net cash generated from/used in

302702672.22-62576521.15

financing activities

4. Effect of foreign exchange rates

3246778.48-247532.97

changes on cash and cash equivalents

5. Net increase in cash and cash

448290222.28676862267.53

equivalents

Add: Cash and cash equivalents

506928810.69334389017.41

beginning of the period

6. Cash and cash equivalents end of the

955219032.971011251284.94

period

10Hainan Jingliang Holdings Co. Ltd. Third Quarterly Report 2022

(II) Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□Yes □ No

These financial statements have not been audited by such an auditor.Hainan Jingliang Holdings Co. Ltd.

26 October 2022

11