CONSOLIDATED FINANCIAL STATEMENTS
AND
REPORT OFTHEAUDITORS
Hainan Jingliang Holdings Co. LTD.FOR THEYEAR ENDED 31 DECEMBER 2025
TianYuanQuan Certified Public Accountants [2026] Audit No. 000250Tianyuanquan Certified Public Accountants (Special General Partnership) Audit Report
(This Page contains no text and is a signature page.)
Tianyuanquan Certified Public Chinese Certified Public
Accountants (Special General Accountant
Partnership) (Engagement partner):
Chinese Certified Public
Accountant:
Beijing P.R.China March 26 2026
TYQCPA Page 7 of 7Consolidated Balance Sheet
2025-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Period-end balance Balance at the end of the previous year
Current Assets:
Monetary capital V.1 1821722517.08 1417025694.30
Transactional financial assets
Derivative financial assets V.2 70947839.67
Notes receivable
Accounts receivable V.3 98216373.71 91439895.13
Receivables financing
Prepayment V.4 574410843.60 198722011.47
Other receivables V.5 173257419.17 455148011.66
Including: Interest receivable
Dividends receivable
Inventory V.6 1421929091.40 2357805420.92
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year V.7 10694166.66
Other current assets V.8 99250439.60 161383945.34
Total current assets 4188786684.56 4763166985.15
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment V.9 267272969.32 267505468.02
Other equity instruments investment
Other non-current financial assets
Investment property V.10 16252551.54 18277387.65
Fixed assets V.11 841479812.89 891221864.74
Construction in process V.12 88960509.10 50058378.98
Productive biological assets
Oil-and-gas assets
Right-of-use assets V.13 169826775.50 76970493.53
Intangible assets V.14 370583609.88 395680430.82
Including: Data resources
Development expenditure
Including: Data resources
Goodwill V.15 125632393.35 191394422.51
Long-term deferred expenses V.16 3362646.84 17403238.18
Deferred income tax assets V.17 36843176.25 23598603.98
Other non-current assets V.18 9281092.22 5682032.40
Total non-current assets 1929495536.89 1937792320.81
Total assets 6118282221.45 6700959305.96
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Balance Sheet
2025-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Period-end balance Balance at the end of the previous year
Current liabilities:
Short-term borrowings V.20 1136260975.85 1311609177.78
Transactional financial liabilities
Derivative financial liabilities V.21 3815280.00 30979464.00
Notes payable V.22 56649763.00
Accounts payable V.23 66273857.12 127879265.40
Account collected in advance V.24 1670875.73 1122982.13
Contract liabilities V.25 275724804.27 522267254.98
Employee payroll payable V.26 29353455.84 27703136.66
Taxes payable V.27 38204738.18 19999374.52
Other payables V.28 62493915.38 58529914.31
Including: Interest payable 20000000.00 20000000.00
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year V.29 376319750.69 543665629.94
Other current liabilities V.30 36800107.16 97380074.75
Total current liabilities 2083567523.22 2741136274.47
Non-current liabilities:
Long-term borrowings V.31 576500000.00
Bonds payable V.32 299250000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities V.33 135451638.57 50700060.93
Long-term payables
Long-term payable to employees V.34 5321134.00 5627134.00
Estimated liabilities V.35 22650893.15 5146800.00
Deferred income V.36 53936649.47 56731497.62
Deferred income tax liabilities V.17 29132160.48 31415012.33
Other non-current liabilities
Total non-current liabilities 822992475.67 448870504.88
Total liabilities 2906559998.89 3190006779.35
Owners' equity (or Shareholders' equity):
Paid-in capital V.37 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves V.38 1683673958.02 1683673958.02
Less: treasury stock
Other comprehensive income V.39 1059574.92 1763043.44
Special reserves
Surplus reserves V.40 144701147.27 137418617.07
Undistributed profit V.41 307028112.53 593483706.16
Owner's Equity (or shareholder's equity) Attributable to
Shareholders of the Parent Company 2863413043.74 3143289575.69
Minority equity 348309178.82 367662950.92
Total owners' equity (or shareholders' equity) 3211722222.56 3510952526.61
Total liabilities and owners' equity (or shareholders' equity) 6118282221.45 6700959305.96
Legal Representative： Chief Financial Officer: Head of Accounting Department:Balance Sheet of Parent Company
2025-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Period-end balance Balance at the end of theprevious year
Current Assets:
Monetary capital 341590983.27 343402502.17
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment
Other receivables XXVII.1 930000000.00 948000000.00
Including: Interest receivable
Dividends receivable 18000000.00
Inventory
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 588414.42 342287.50
Total current assets 1272179397.69 1291744789.67
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment XXVII.2 2442399283.19 2340799283.19
Other equity instruments investment
Other non-current financial assets
Investment property 4520056.97 4858318.61
Fixed assets 4841558.75 5533490.67
Construction in process
Productive biological assets
Oil-and-gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses 290547.43 393093.55
Deferred income tax assets
Other non-current assets 7326142.22 5035082.40
Total non-current assets 2459377588.56 2356619268.42
Total assets 3731556986.25 3648364058.09
Legal Representative： Chief Financial Officer: Head of Accounting Department:Balance Sheet of Parent Company
2025-12-31
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Period-end balance Balance at the end of theprevious year
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 236000.00 15383.17
Account collected in advance
Contract liabilities
Employee payroll payable 150534.39 151075.75
Taxes payable 105528.51 89545.33
Other payables 21383284.41 21267504.53
Including: Interest payable 20000000.00 20000000.00
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year 302580000.00 2880000.00
Other current liabilities
Total current liabilities 324455347.31 24403508.78
Non-current liabilities:
Long-term borrowings
Bonds payable 299250000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term payable to employees
Estimated liabilities 22650893.15
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 22650893.15 299250000.00
Total liabilities 347106240.46 323653508.78
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 2386924900.84 2386924900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 132065774.68 124783244.48
Undistributed profit 138509819.27 86052152.99
Total owners' equity 3384450745.79 3324710549.31
Total liabilities and owners' equity 3731556986.25 3648364058.09
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Income Statement
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the Amount for thecurrent period prior period
I. Total operating income V.42 7858535847.11 11434843516.27
Including: Operating income 7858535847.11 11434843516.27
II. Total operating cost V.42 7983627943.13 11355705803.09
Including: Operating cost 7508646116.01 10914648084.71
Tax and surcharges V.43 29449761.72 30945038.63
Selling expenses V.44 154367070.54 140518419.42
Administration expenses V.45 213476195.17 199231019.64
Research and development expenses V.46 19274443.12 24982468.62
Financial expenses V.47 58414356.57 45380772.07
Including: interest expenses 65081667.94 60492426.83
Interest income 14028391.88 17628504.01
Add: Other income V.48 14628099.32 19031421.09
Income from investment (Losses shall be filled in with “-”) V.49 983910.21 12546903.92
Including: income from investment on joint venture and cooperative enterprise -232498.70 12546903.92
income from derecognition of financial assets measured at amortized cost
Income from net exposure hedging(Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”) V.50 -59953281.42 -116999895.87
Credit impairment loss(Losses shall be filled in with “-”) V.51 -35107765.59 6735814.75
Income from assets impairment(Losses shall be filled in with “-”) V.52 -109096137.70 -13819833.62
Income from asset disposal (Losses shall be filled in with “-”) V.53 14708222.06 63830.72
III. Operating profit (Losses shall be filled in with “-”) -298929049.14 -13304045.83
Add: non-operating income V.54 14589622.93 11249072.43
Less: non-operating expenditure V.55 20606002.60 5595403.68
IV. Total profit (Total losses shall be filled in with “-”) -304945428.81 -7650377.08
Less: income tax expense V.56 -5764160.59 -11962291.26
V. Net profit (Net loss shall be filled in with “-”) -299181268.22 4311914.18
(I) Classified by operations continuity
1. Net profit from continuing operations (Net loss shall be filled in with “-”) -299181268.22 4311914.18
2. Net profit from discontinuing operations (Net loss shall be filled in with “-”)
(II) Classified by ownership attribution
1、Net profit attributable to shareholders of the parent company (Net loss shall be filled in with “-”) -266087957.92 26130520.86
2、Minority interest income (Net loss shall be filled in with “-”) -33093310.30 -21818606.68
VI. Net of tax from other comprehensive income -703468.52 393062.52
(I)Net of tax from other comprehensive income attributable to shareholders of the parent company -703468.52 393062.52
1.Other comprehensive income that cannot be reclassified into the profit and loss
（1）Remeasure changes in defined benefit plans
（2）Other comprehensive income that cannot be transferred to gains and losses under the equity method
（3）Changes in fair value of other equity instrument investments
（4）Changes in the fair value of the company's own credit risk
（5）Others
2.Other comprehensive income that will be reclassified into the profit and loss -703468.52 393062.52
（1）Other comprehensive income that can be transferred to gains and losses under the equity method
（2）Changes in fair value of other debt investments
（3）Reclassification of financial assets included in other comprehensive income
（4）Provision for credit impairment of other debt investments
（5）Cash flow hedge reserve
（6）Balance arising from the translation of foreign currency -703468.52 393062.52
（7）Others（II） Net of tax from other comprehensive income attributable to minority shareholder
VII. Total comprehensive income -299884736.74 4704976.70
(I) Total comprehensive income attributable to shareholders of the parent company -266791426.44 26523583.38
(II)Total comprehensive income attributable to minority shareholder -33093310.30 -21818606.68
VIII. Earnings per share:
(I) Basic earnings per share -0.37 0.04
(II) Diluted earnings per share -0.37 0.04
Legal Representative： Chief Financial Officer: Head of Accounting Department:Income Statement of Parent Company
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the Amount for thecurrent period prior period
I. Total operating income XXVII.3 2553338.81 2448223.41
Less：Operating cost XXVII.3 338261.64 340195.56
Tax and surcharges 491128.68 419211.65
Selling expenses 800.00
Administration expenses 7633584.86 7077381.80
Research and development expenses
Financial expenses 7722795.24 -6510160.02
Including: interest expenses 9090000.00 9090000.00
Interest income 1357172.47 15714019.68
Add: Other income 66345.27 619000.43
Income from investment (Losses shall be filled in with “-”) XXVII.4 86434733.13 63700859.50
Including: Investment income from associates and joint ventures
Gains from derecognition of financial assets measured at amortized cost (losses
presented with “–”)
Income from net exposure hedging(Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”)
Credit impairment loss(Losses shall be filled in with “-”)
Income from assets impairment(Losses shall be filled in with “-”)
Income from asset disposal (Losses shall be filled in with “-”)
II. Operating profit (Losses shall be filled in with “-”) 72867846.79 65441454.35
Add: non-operating income 10611984.69
Less: non-operating expenditure 42544.80 64168.34
III. Total profit (Total losses shall be filled in with “-”) 72825301.99 75989270.70
Less: income tax expense
IV. Net profit (Net loss shall be filled in with “-”) 72825301.99 75989270.70
(I) Net profit from continuing operations (Net loss shall be filled in with “-”) 72825301.99 75989270.70
(II) Net profit from discontinuing operations (Net loss shall be filled in with “-”)
V. Net of tax from other comprehensive income
(I) Other comprehensive income that cannot be reclassified into the profit and loss
1.Remeasure changes in defined benefit plans
2. Other comprehensive income that cannot be transferred to gains and losses under
the equity method
3.Changes in fair value of other equity instrument investments
4. Changes in the fair value of the company's own credit risk
5. Others
(II) Other comprehensive income that will be reclassified into the profit and loss
1. Other comprehensive income that can be transferred to gains and losses under the
equity method
2. Changes in fair value of other debt investments
3. Reclassification of financial assets included in other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedge reserve
6. Balance arising from the translation of foreign currency
7. Others
VI. Total comprehensive income 72825301.99 75989270.70
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Cash Flow Statement
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the currentperiod Amount for the prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 9756862086.55 12599938049.04
Tax Refund Receipts 8982718.87 13810514.51
Other Cash Receipts Concerning Operating Activities V.58 7253775666.89 7455484587.56
Subtotal of Cash Inflows from Operating Activities 17019620472.31 20069233151.11
Cash Paid for Purchase of Goods and Accepting Services 8832660339.64 12272299857.43
Cash Paid to and for Employees 318859639.11 341197234.02
Taxes and Fees Paid 107131194.48 101781987.32
Other Cash Paid Concerning Operating Activities V.58 7114192597.58 7463424794.29
Subtotal of Cash Outflows from Operating Activities 16372843770.81 20178703873.06
Net Cash Flows from Operating Activities 646776701.50 -109470721.95
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 39781480.00 82188083.34
Cash Receipts from Returns on Investments 900000.00 156138.88
Net Cash from Disposal of Fixed Assets Intangible Assets and Other
Long-term Assets 26932706.62 658029.92
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 67614186.62 83002252.14
Cash Paid for Purchase and Construction of Fixed Assets Intangible
Assets and Other Long-term Assets 100318544.87 47507672.28
Cash Paid for Investments V.58 28455594.28
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities 1747611.95
Subtotal of Cash Outflows from Investment Activities 128774139.15 49255284.23
Net Cash Flows from Investment Activities -61159952.53 33746967.91
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment 1500000.00
Including: Cash Received by Subsidiaries Absorbing the Investment
from Minority Shareholders 1500000.00
Cash Receipts from Borrowings 4183352814.46 3897716986.18
Other Cash Receipts Concerning Financing Activities V.58 840000.00
Subtotal of Cash Inflows from Financing Activities 4184852814.46 3898556986.18
Cash Paid for Repayment of Debts 4242136781.66 3808716986.18
Cash Paid for Distribution of Dividends Profits or Repayment of
Interests 73253880.92 128096325.56
Including: Dividends and Profits Paid by Subsidiaries to Minority
Shareholders 1444489.44 18346200.00
Other Cash Paid Concerning Financing Activities V.58 48020107.53 15224400.00
Subtotal of Cash Outflows from Financing Activities 4363410770.11 3952037711.74
Net Cash Flows from Financing Activities -178557955.65 -53480725.56
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents -14267358.65 -15914853.58
V. Net Increase in Cash and Cash Equivalents 392791434.67 -145119333.18
Add: Opening Balance of Cash and Cash Equivalents 1395519746.77 1540639079.95
VI. Closing Balance of Cash and Cash Equivalents 1788311181.44 1395519746.77
Legal Representative： Chief Financial Officer: Head of Accounting Department:Cash Flow Statement of Parent Company
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items Note Amount for the currentperiod Amount for the prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 782063.24 1745187.40
Tax Refund Receipts
Other Cash Receipts Concerning Operating Activities 26867165.38 5058125.87
Subtotal of Cash Inflows from Operating Activities 27649228.62 6803313.27
Cash Paid for Purchase of Goods and Accepting Services 20183.17 932.98
Cash Paid to and for Employees 1687343.34 2305621.57
Taxes and Fees Paid 480260.93 1067505.83
Other Cash Paid Concerning Operating Activities 27942431.85 6930232.03
Subtotal of Cash Outflows from Operating Activities 30130219.29 10304292.41
Net Cash Flows from Operating Activities -2480990.67 -3500979.14
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 372687877.46
Cash Receipts from Returns on Investments 104434733.13 32455704.26
Net Cash from Disposal of Fixed Assets Intangible Assets and Other
Long-term Assets 3444.00
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 104434733.13 405147025.72
Cash Paid for Purchase and Construction of Fixed Assets Intangible
Assets and Other Long-term Assets 2323959.82 2573332.40
Cash Paid for Investments 101600000.00 20000000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 103923959.82 22573332.40
Net Cash Flows from Investment Activities 510773.31 382573693.32
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Cash Receipts from Borrowings
Other Cash Receipts Concerning Financing Activities 840000.00
Subtotal of Cash Inflows from Financing Activities 840000.00
Cash Paid for Repayment of Debts
Cash Paid for Distribution of Dividends Profits or Repayment of
Interests 21712061.56 60253467.82
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities 21712061.56 60253467.82
Net Cash Flows from Financing Activities -21712061.56 -59413467.82
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents -23682278.92 319659246.36
Add: Opening Balance of Cash and Cash Equivalents 343402502.17 23743255.81
VI. Closing Balance of Cash and Cash Equivalents 319720223.25 343402502.17
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Statement of Changes in Equity
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Items TotalOther equity instruments Less: Other Minority equity shareholders'
Paid-in capital Preferre Perpetua Capital reserve treasury comprehensive Special reserve Surplus reserve Undistributed profit Subtotal equities
d stock l bond Others stock income
I. Year-end balance of last year 726950251.00 1683673958.02 1763043.44 137418617.07 593483706.16 3143289575.69 367662950.92 3510952526.61
Add: changes in accounting policies
Correction of prior period errors
Merger of enterprises under the same control
Other
II. Balance at beginning of current year 726950251.00 1683673958.02 1763043.44 137418617.07 593483706.16 3143289575.69 367662950.92 3510952526.61
III. Increases and decreases of current year
(Decrease shall be filled in with “-”) -703468.52 7282530.20 -286455593.63 -279876531.95 -19353772.10 -299230304.05
(I) Total comprehensive income -703468.52 -266087957.92 -266791426.44 -33093310.30 -299884736.74
(II) Investment of shareholders and capital reduction 15545150.00 15545150.00
1. Common equity invested by shareholders 15545150.00 15545150.00
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the
shareholder's equity
4. Others
(III) Distribution of profits 7282530.20 -20367635.71 -13085105.51 -1805611.80 -14890717.31
1. Withdrawal of surplus reserves 7282530.20 -7282530.20
2. Distribution to shareholders -13085105.51 -13085105.51 -1805611.80 -14890717.31
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
stock)
2. Surplus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 1683673958.02 1059574.92 144701147.27 307028112.53 2863413043.74 348309178.82 3211722222.56
Legal Representative： Chief Financial Officer: Head of Accounting Department:Consolidated Statement of Changes in Equity
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Items TotalOther equity instruments Less: Other Minority equity shareholders'
Paid-in capital Preferre Perpetua Capital reserve treasury comprehensive Special reserve Surplus reserve Undistributed profit SubtotalOthers equitiesd stock l bond stock income
I. Year-end balance of last year 726950251.00 1681808108.07 1369980.92 129819690.00 627555511.45 3167503541.44 407827757.60 3575331299.04
Add: changes in accounting policies
Correction of prior period errors 989931.26 -989931.26
Merger of enterprises under the same control
Other
II. Balance at beginning of current year 726950251.00 1682798039.33 1369980.92 129819690.00 626565580.19 3167503541.44 407827757.60 3575331299.04
III. Increases and decreases of current year
(Decrease shall be filled in with “-”) 875918.69 393062.52 7598927.07 -33081874.03 -24213965.75 -40164806.68 -64378772.43
(I) Total comprehensive income 393062.52 26130520.86 26523583.38 -21818606.68 4704976.70
(II) Investment of shareholders and capital reduction 875918.69 875918.69 875918.69
1. Common equity invested by shareholders
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the
shareholder's equity
4. Others 875918.69 875918.69 875918.69
(III) Distribution of profits 7598927.07 -59212394.89 -51613467.82 -18346200.00 -69959667.82
1. Withdrawal of surplus reserves 7598927.07 -7598927.07
2. Distribution to shareholders -51613467.82 -51613467.82 -18346200.00 -69959667.82
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
stock)
2. Surplus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 1683673958.02 1763043.44 137418617.07 593483706.16 3143289575.69 367662950.92 3510952526.61
Legal Representative： Chief Financial Officer: Head of Accounting Department:Statement of Changes in Equity of Parent Company
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Current Amount
Items Other equity instruments Less: Other
Paid-in capital Capital reserve treasury comprehensive SpecialPreferred Perpetual reserve Surplus reserve Undistributed profit Subtotal
stock bond Others stock income
I. Year-end balance of last year 726950251.00 2386924900.84 124783244.48 86052152.99 3324710549.31
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current year 726950251.00 2386924900.84 124783244.48 86052152.99 3324710549.31
III. Increases and decreases of current year
(Decrease shall be filled in with “-”) 7282530.20 52457666.28 59740196.48
(I) Total comprehensive income 72825301.99 72825301.99
(II) Investment of shareholders and capital reduction
1. Common equity invested by shareholders
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the shareholder's
equity
4. Others
(III) Distribution of profits 7282530.20 -20367635.71 -13085105.51
1. Withdrawal of surplus reserves 7282530.20 -7282530.20
2. Distribution to shareholders -13085105.51 -13085105.51
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
stock)
2. Surplus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 2386924900.84 132065774.68 138509819.27 3384450745.79
Legal Representative： Chief Financial Officer: Head of Accounting Department:Statement of Changes in Equity of Parent Company
Year 2025
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Amount of Last Period
Items Other equity instruments Less: Other
Paid-in capital Preferred Perpetual Capital reserve treasury comprehensi
Special
reserve Surplus reserve Undistributed profit Subtotal
stock bond Others stock ve income
I. Year-end balance of last year 726950251.00 2386084900.84 117184317.41 69275277.18 3299494746.43
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current year 726950251.00 2386084900.84 117184317.41 69275277.18 3299494746.43
III. Increases and decreases of current year
(Decrease shall be filled in with “-”) 840000.00 7598927.07 16776875.81 25215802.88
(I) Total comprehensive income 75989270.70 75989270.70
(II) Investment of shareholders and capital reduction 840000.00 840000.00
1. Common equity invested by shareholders
2. Capital invested by other equity instruments holders
3. The amount of shares recorded into the shareholder's
equity
4. Others 840000.00 840000.00
(III) Distribution of profits 7598927.07 -59212394.89 -51613467.82
1. Withdrawal of surplus reserves 7598927.07 -7598927.07
2. Distribution to shareholders -51613467.82 -51613467.82
3. Others
(IV) Inner carrying-over of shareholders' equities
1. Capital reserve converted into capital (or capital
stock)
2. Surplus public accumulation converted into capital
(or capital stock)
3. Surplus public accumulation loss remedy
4. Change in defined benefit plan carried forward to
retained earnings
5.Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current year 726950251.00 2386924900.84 124783244.48 86052152.99 3324710549.31
Legal Representative： Chief Financial Officer: Head of Accounting Department:Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Hainan Jingliang Holdings Co. Ltd.2025 Financial
Statement Notes
I. Basic Information of the Company
1. Place of incorporation form of organization and head office address
Hainan Jingliang Holdings Co. Ltd. (hereinafter referred to as "the Company" or
"Company" or "Jingliang Holdings Company") 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
Page 1 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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
Page 2 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
accounting for 28.95% of the total number of shares and became the largest shareholder of the
Company.The Company determined July 31 2017 as the delivery date of material assets in
accordance with the material assets restructuring plan and the delivery agreement. On
September 14 2017 approved pursuant to the resolution of the Second Extraordinary General
Meeting of Shareholders of the Company on November 18 2016 and the Approval Reply of
the China Securities Regulatory Commission dated July 28 2017 On Approval of Hainan Pearl
River Holding Co. Ltd. to Purchase Assets and Raise Supporting Funds from Beijing Grain
Group Co. Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original
shareholders of Beijing Grain Food Co. Ltd. (hereinafter referred to as Beijing Grain Food) by
issuing 210079552 shares of the balance between the transaction price of the injected assets
and the assets to be purchased (the difference between the transaction price of the injected assets
and the assets to be purchased was RMB 1699.5436 million yuan). The par value in the
issuance was RMB 1.00 per share and the issuance price was RMB 8.09 per share; 2) The
Company has issued 48965408 non-public shares of the Company to Beijing Grain Group for
the purpose of purchasing the supporting funds raised from the assets of the issuance of shares.The par value per share of the Company was RMB1.00 and the issuance price was RMB8.82
per share. The shareholder Beijing Grain Group conducted subscription in monetary funds.Upon completion of the issue the registered capital was RMB 685790364.00 and the share
capital was RMB 685790364.00. Beijing Grain Group which accounted for 42.06% of the
total number of shares became the largest shareholder of the Company.On November 21 2019 with the approval of Beijing Capital Agribusiness Food Group
Co. Ltd. (Beijing Capital Agribusiness 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
Page 3 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
subsidiary Beijing Jingliang Food Co. Ltd. purchased the 25.1149% equity stake of Zhejiang
Little Prince by cash and issuance of shares.As of December 31 2025 the company has issued 726950251.00 shares and the
company's share capital is 726950251.00 yuan; Uniform Social Credit Code:
914600002012845568; Registration authority: Hainan Market Supervision Administration;
Company type: Limited Company (Listed State-controlled); Registered address: F29 Dihao
Building Pearl River Square Binhai Avenue Haikou City; Legal representative: WangChunli.
2. The nature of the Company's business and its main business activities
The Company belongs to manufacturing-agricultural and sideline food processing industry.Its main business activities mainly includes: food beverages oilseeds and by products
vegetable proteins and their products organic fertilizers microbial fertilizers production and
marketing of agricultural fertilizers; land consolidation soil remediation; agricultural
comprehensive planting development animal husbandry and aquaculture agricultural
equipment production and marketing; computer network technology investment in
communication projects research and development and application of high-tech products;
investment and consultation of environmental protection projects; animation graphic design;
import and export trade in goods and technology; rental of own premises.The Company and its subsidiaries are primarily engaged in oil and oilseed processing and
sale as well as food processing and sales.
3. The name of the parent company and the ultimate parent company
The parent company of the company is Beijing Grain Group Co. Ltd. and the ultimate
parent company is Beijing Capital Agribusiness Food Group Co. Ltd.
4. Business Cycle
From March 22 1988 onward with no fixed end date.
5. The approval institution and the approval date of the financial statements
The financial statements have been approved by the Board of Directors of the Company
in its resolution dated March 26 2026.Page 4 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transaction events the
financial statements are prepared in accordance with the relevant provisions of Accounting
Standard for Business Enterprises and the following stated Significant Accounting Policies and
Estimates.
2. Going Concern
The Company has a going concern capability for 12 months from the end of the reporting
period and no material matters affecting the company's going concern capability were found.Therefore the financial statements are presented on a going concern basis is reasonable.III. Significant Accounting Policies and Estimates
Specific accounting policies and accounting estimates:
The Company and its subsidiaries are engaged in oil and oilseed processing and sales as
well as food processing and sales. Based on the characteristics of their actual production and
operations and in accordance with the relevant Accounting Standards for Business Enterprises
the Company and its subsidiaries have formulated specific accounting policies and accounting
estimates for transactions and events such as revenue recognition. For details please refer to
Note III 27 “Revenue” to these financial statements.
1. Statement of Compliance with Enterprise Accounting Standards
The financial statements prepared by the company comply with the requirements of the
Enterprise Accounting Standards and fairly and completely reflect the company's and
consolidated financial position as of December 31 2025 as well as the company's and
consolidated operating results changes in shareholders' equity and cash flows for 2025.Additionally these financial statements are prepared with reference to the disclosure and
reporting requirements outlined in the China Securities Regulatory Commission’s "Regulations
Page 5 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
on the Preparation of Information Disclosure Reports for Publicly Issued Securities No. 15 -
General Provisions on Financial Reports" (revised in 2023).
2. Accounting Period
The accounting period of the Company is divided into an annual period and an interim
period. The accounting interim period refers to the reporting period shorter than a full
accounting year. The fiscal year of the Company adopts the Gregorian calendar year that is
from January 1 to December 31 of each year.
3. Business Cycle
The normal business cycle is the period from the time the Company purchases assets for
processing to the time when cash or cash equivalents are realized. The Company uses 12 months
as a business cycle and uses it as a liquidity classification standard for assets and liabilities.
4. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its
domestic subsidiaries operate. The Company and its domestic subsidiaries use RMB as the
bookkeeping standard currency. The offshore subsidiaries of the Company determine USD as
their bookkeeping standard currency based on the currencies in the main economic environment
in which they operate. The currency used by the Company in preparing these financial
statements is RMB.
5. Materiality Standards Determination Method and Selection Basis
The company follows the materiality principle when preparing and disclosing financial
reports. If disclosure matters involve the judgment of materiality standards. the methods of
determining materiality standards and selection basis are disclosed as follows:
Disclosure matters involve the Methods of determining materiality standards and selection
judgment of materiality standards basis
Impairment test made on individual accounts receivables
Impairment test made on
accounting over 10% as total provision for various types of
individual accounts receivable
bad debts receivablese and amounts exceeding 5 million
with significant amounts.yuan
Page 6 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Disclosure matters involve the Methods of determining materiality standards and selection
judgment of materiality standards basis
Significant bad debt reserve for Individual item recovered or reversed accounting over 10%
accounts receivable recovered or as total amounts for various types of receivables and
reversed exceeding 5 million yuan
Individual write-off amount accounting for over 10% as total
Significant receivables actually
amounts of various types of bad debts reserve for
written off
receivables and amounts exceeding 5 million yuan
Individual contractual liabilities with aging over one year
Significant contractual liabilities
accounting over 10% of total amount of contractual
with aging over one year
liabilities and amounts exceeding 10 million yuan
Significant project under
Projects with investments exceeding 5 million yuan
construction
Non-wholly owned subsidiaries with individual entity
Significant non-wholly owned
revenue and net profit accounting 10% for items related to
subsidiaries
the Company's consolidated statements
Associates and joint ventures for which the share of net
Significant associates and joint
profit recognized for the current period exceeds 5% of the
ventures
Company’s consolidated net profit
Purchases of bonds funds wealth management products
Significant investing activities and other similar transactions with an amount reaching
RMB 50 million
6. The Accounting Treatment of Business Combination under the Same Control
and Different Control
Business Combination refers to the transaction or event in which two or more separate
enterprises are merged to form one reporting entity. Business combination can be divided into
business combination under the same control and business combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or
multiple parties before and after the combination and the control is not temporary so it is the
business combination under the same control. In case of business combination under the same
control the party that obtains control of other enterprises participating in the combination on
the combination date shall be the combination party and the other enterprises participating in
Page 7 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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
Page 8 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
date of purchase. The difference between the merger costs and the fair value shares of the
identifiable net assets of the Purchasee at the purchase date obtained in the merger is recognized
as goodwill. If the combined cost is less than the fair value of the identifiable net assets of the
Purchasee in the merger first the fair value of the identifiable assets liabilities and contingent
liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked.If the consolidation cost is still smaller than the fair value share of the identifiable net assets of
the Purchased obtained in the consolidation after the re-check the difference shall be recorded
into the profits and losses of the current period.When the Purchaser acquires the deductible temporary difference of the Purchasee if it
fails to recognize the deferred income tax assets on the date of purchase because it does not
meet the recognition conditions for the deferred income tax and within 12 months of the date
of purchase new or further information is obtained indicating that the relevant circumstances
at the purchase date already exist and the economic benefits from the temporary difference
deductible by the purchaser on the purchase date are expected to be realized the relevant
deferred income tax assets shall be recognized and the goodwill shall be reduced. If the
goodwill is not sufficiently offset the difference shall be recognized as the current profit or loss;
In addition to the above circumstances the deferred income tax assets related to the enterprise
merger are recognized and included in the current profits and losses.Through multi-transaction and step-by-step business combination under different control
according to the Circular of the Ministry of Finance on Printing and Issuing the Interpretation
of Accounting Standards for Business Enterprises No.5 (CK (2012) No.19) and Article 51 of
the Accounting Standards for Business Enterprises No.33-Consolidated Financial Statements
on the judgment criteria of "package deal" (see 7 (2) of Note Ⅲ) it is determined whether the
multiple transactions belong to the "package deal". In the case of a "package deal" the
accounting treatment shall be performed with reference to the description in the preceding
paragraphs of this section and Note Ⅲ 15 "Long-term Equity Investments"; If the transaction
is not a "package deal" the accounting treatment shall 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
Page 9 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
the assets or liabilities directly disposed of by the Purchaser (i.e. except for the corresponding
share in the change caused by the acquisition of the net liability or net assets of the defined
benefit plan remeasured in accordance with the equity method the rest is transferred to the
current investment income).In the consolidated financial statements the equity of the Purchased held prior to the date
of purchase is remeasured according to the fair value of the equity at the date of purchase and
the difference between the fair value and the carrying value is included in the investment
income of the current period; Where the equity of the Purchasee held before the date of purchase
involves other comprehensive income other consolidated income related thereto shall be
accounted for on the same basis as the direct disposal of the relevant assets or liabilities by the
Purchaser (i.e. except for the corresponding share in the change caused by the acquisition of
the net liability or net asset of the defined benefit plan remeasured in accordance with the equity
method the rest is converted into the investment income of the current period to which the
acquisition date belongs).
7. Criteria for the Judgment of Control and Methods for the Preparation of
Consolidated Financial Statements
(1) Criteria for the Judgment of Control
The scope of consolidation of the consolidated financial statements is determined on a
control basis. Control means that the Company has the authority over the Investee enjoys a
variable return by participating in the relevant activities of the Investee and has the ability to
use its authority over the Investee to influence the amount of such return. The scope of the
merger includes the Company and all its subsidiaries. Subsidiary refers to the main body
controlled by the Company.The Company will re-evaluate the above control definitions once the relevant facts and
circumstances change which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control
of the production and operation decisions into the scope of the merger from the date when the
subsidiary is acquired; Cease to be included in the scope of the merger as of the date of loss of
effective control. For the subsidiaries disposed of the operating results and cash flows prior to
the date of disposal have been appropriately included in the consolidated income statement and
Page 10 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
consolidated cash flow statement; For subsidiaries disposed of in the current period the opening
amount of the consolidated balance sheet is not adjusted. The operating results and cash flows
of subsidiaries increased by consolidation after purchase have been properly included in the
consolidated income statement and consolidated cash flow statement and the opening and
comparative amounts in the consolidated financial statements have not been adjusted for
subsidiaries that are not under the same control. The operating results and cash flows of the
subsidiaries increased by consolidation under the same control from the beginning of the
consolidation period to the consolidation date have been appropriately included in the
consolidated profit statement and consolidated cash flow statement and the comparative
amount of the consolidated financial statements has been adjusted at the same time.In the preparation of the consolidated financial statements if the accounting policies or
accounting periods adopted by the subsidiaries are inconsistent with those adopted by the
Company necessary adjustments shall be made to the financial statements of the subsidiaries
in accordance with the accounting policies and accounting periods of the Company. For
subsidiaries acquired through business combination under different control the financial
statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of
purchase.All significant transaction balances transactions and unrealized profits within the
Company are offset at the time of preparation of the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is
not owned by the Company for the current period are separately presented as minority
shareholders' equity and minority shareholders' profit or loss in the consolidated financial
statements under shareholders' equity and net profit. The shares of minority shareholders' equity
in the net profits and losses of subsidiaries for the current period are shown as "minority
shareholders' profits and losses" under the net profit item in the consolidated income statement.Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share
in the shareholders' equity of the subsidiary at the beginning of the period and still decrease by
a number of shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity
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
Page 11 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
of the original subsidiary that shall be continuously calculated from the purchase date according
to the original shareholding proportion shall be included in the investment income of the current
period of loss of control. Other comprehensive income related to the equity investment of the
original subsidiary in the event of loss of control the accounting treatment is performed on the
same basis as the direct disposal of the relevant assets or liabilities by the Purchased (i.e.converted to current investment income except for changes resulting from the re-measurement
of the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary).Thereafter the residual equity shall be subsequently measured in accordance with the relevant
provisions of Accounting Standards for Business Enterprises No.2-Long-term Equity
Investment or Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments as detailed in Note Ⅲ 15-Long-term Equity Investment
or Note Ⅲ 11-Financial Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses
control through multiple transactions. It is necessary to distinguish whether the transactions that
dispose of the equity investment in subsidiaries until it loses control belong to a package deal
or not. The terms conditions and economic impact of the transactions for the disposal of equity
investments in subsidiaries are in accordance with one or more of the following circumstances
and generally indicate that multiple transactions should be accounted for as a package deal: *
These transactions were entered into simultaneously or taking into account each other's
influence; * Only when these transactions are taken together can a complete business result
be achieved; * The occurrence of one transaction depends on the occurrence of at least one
other transaction; * It is not economical to consider a transaction alone but it is economical
to consider it in conjunction with other transactions. For transactions that are not part of the
package deal each transaction shall be accounted for in accordance with the principles
applicable to the "partial disposal of long-term equity investments in subsidiaries without loss
of control" (as detailed in 15 of Note Ⅲ) and the "loss of control over existing subsidiaries as a
result of the disposal of part of the equity investments or other reasons" (as detailed in the
preceding paragraph) as appropriate. If the transactions involving the disposal of equity
investments in subsidiaries until the loss of control belong to a package deal the transactions
shall be accounted for as a transaction involving the disposal of subsidiaries and the loss of
control; However the difference between each disposal price and the share of the subsidiary's
net assets corresponding to the disposal investment prior to the loss of control is recognized in
the consolidated financial statements as other consolidated gains and transferred to the profit or
loss for the current period of loss of control in the event of loss of control.Page 12 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
8. Classification of Joint Venture Arrangements and Accounting Treatment of
Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more
participants. The Company divides the joint venture arrangement into joint operation and joint
venture in accordance with the rights and obligations it enjoys in the joint venture arrangement.A joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets and obligations for the liabilities relating to the
arrangement. A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture.The Company's investment in the joint venture is accounted for using the equity method
and shall be treated in accordance with the accounting policy described in Note Ⅲ 15 "Long-
term Equity Investment Accounted by the Equity Method".The Company as a joint venture party recognizes the assets and liabilities held and
assumed by the Company separately and recognizes the assets and liabilities jointly held and
assumed by the Company according to the shares of the Company; recognizes the revenue
generated from the sale of the share of joint operating output enjoyed by the Company;
recognizes revenue generated from the sale of output from joint operations on the basis of the
Company's share; confirms the expenses incurred by the Company individually and the
expenses incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute
business the same below) or purchases assets from the joint venture the Company recognizes
only the portion of the profits and losses attributable to the other participants in the joint venture
that arises from the transaction prior to the sale of such assets to a third party. Where such assets
are impaired in accordance with the provisions of Accounting Standards for Business
Enterprises No.8-Impairment of Assets the Company shall fully recognize such losses in the
case where the assets are cast or sold by the Company to joint operations; For the assets
purchased by the Company from the joint operation the Company recognizes the losses
according to the shares it assumes.
9. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand deposits that can be
readily withdrawn on demand. Cash equivalents are investments held by the Company with a
short term (usually maturing within three months from the date of purchase) high liquidity
Page 13 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value.
10. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation the foreign currency transactions occurring in the
Company shall be converted into the bookkeeping functional currency amount at the spot
exchange rate on the trading day but the foreign currency exchange business or transactions
involving foreign currency exchange occurring in the Company shall be converted into the
bookkeeping functional currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-
monetary item
On the balance sheet date the foreign currency monetary items are converted at the spot
exchange rate on the balance sheet date and the exchange difference arising therefrom shall be:
* The exchange difference arising from the special foreign currency borrowings related to the
acquisition and construction of assets eligible for capitalization shall be handled in accordance
with the principle of capitalization of borrowing costs; * The exchange difference of the
hedging instruments used for effective hedging of the net investment in overseas operations
(the difference is included in other comprehensive income and is not recognized as current
profit or loss until the net investment is disposed of); * Except for the amortized cost the
exchange differences arising from the changes in the book balance of the available-for-sale
monetary items in foreign currencies shall be included in the other comprehensive income and
shall be included in the profits and losses of the current period.Where the preparation of the consolidated financial statements involves overseas
operations if there are foreign currency monetary items constituting net investment in overseas
operations the exchange differences arising from exchange rate changes shall be included in
other comprehensive income; When disposing of overseas operations the profits and losses
shall be transferred to the current disposal period.Non-monetary items in foreign currencies measured at historical cost shall still be
measured at the bookkeeping amount in functional currency translated at the spot exchange rate
on the transaction date. For non-monetary items in foreign currencies measured at fair value
the spot exchange rate at the date of fair value determination shall be adopted for conversion.Page 14 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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
Page 15 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
translated from the prior-period financial statements.When disposing of all the owner's equity of the Company's overseas operations or losing
the control over overseas operations due to the disposal of part of the equity investment or for
other reasons if the following items of shareholders' equity in the balance sheet are shown
below the balance in translation of the foreign currency statement attributable to the owner's
equity of the parent company related to the overseas operation shall be transferred to the profits
and losses of the current disposal period.In the event that the proportion of overseas business interests is reduced due to the disposal
of part of the equity investment or for other reasons but the control over overseas business
operations is not lost the balance in the translation of the foreign currency statements related
to the disposal of part of overseas business operations shall be attributed to minority
shareholders' interests and shall not be transferred to the profits and losses of the current period.When disposing of part of the equity of an overseas operation as an associated enterprise or a
joint venture the balance of the translation of the foreign currency statements related to the
overseas operation shall be transferred into the profits and losses of the current disposal period
in the proportion of the overseas operation disposed of.
11. Financial Instruments
Financial instruments are the contracts that form the financial assets of one entity and at
the same time form the financial liabilities or equity instruments of other entities.
(1) Classification confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow
characteristics of financial assets the Company divides financial assets into: Financial assets
measured at amortized cost. Financial assets measured at fair value with changes included in
other comprehensive income. Financial assets that are 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
Page 16 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
recognized by the Company in accordance with the amount of consideration that the Company
is expected to be entitled to receive.* Financial assets measured at amortized cost
The Group measures financial assets at fair value through other comprehensive income if
both of the following conditions are met: the financial asset is held within a business model
with the objective of both holding to collect contractual cash flows and selling; the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Interest income of such financial
assets is recognized based on effective interest method. The Company measures these financial
assets at fair value and their changes are included in other comprehensive income but
impairment loss or gain exchange gain or loss and interest income calculated according to the
effective interest rate method are included into the current profit and loss.* Financial assets measured at fair value with changes included in other comprehensive
income
The Group measures financial assets at fair value through other comprehensive income if
both of the following conditions are met: the financial asset is held within a business model
with the objective of both holding to collect contractual cash flows and selling; the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Interest income of such financial
assets is recognised based on effective interest method. The Company measures these financial
assets at fair value and their changes are included in other comprehensive income but
impairment loss or gain exchange gain or loss and interest income calculated according to the
effective interest rate method are included into the current profit and loss.In addition the Company designates some non tradable equity instrument investments as
financial assets measured at fair value with changes included in other comprehensive income.The Company shall record the relevant dividend income of such financial assets into the current
profits and losses and the change of fair value into other comprehensive income. When the
financial asset is derecognized the accumulated gains or losses previously included in other
comprehensive income will be transferred from other comprehensive income to retained
income and will not be included in current profits and losses.* Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and
Page 17 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
financial assets measured at fair value with changes included in other comprehensive income
into financial assets measured at fair value with changes included in current profits and losses.In addition during initial recognition in order to eliminate or significantly reduce accounting
mismatch the Company designated part of financial assets as financial assets measured at fair
value with changes included in current profit and loss. For such financial assets the Company
adopts fair value for subsequent measurement and the changes in fair value are included into
the current profit and loss.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are
measured at fair value and whose changes are included in current profits and losses and other
financial liabilities. For the financial liabilities measured at fair value with the changes included
into the current profits and losses the relevant transaction costs are directly included into the
current profits and losses and the relevant transaction costs of other financial liabilities are
included in the initial recognition amount.* Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value with changes included in current profits and
losses which include transactional financial liabilities (including derivatives belonging to
financial liabilities) and financial liabilities designated to be measured at fair value with changes
included in current profits and losses at initial recognition.Trading financial liabilities (including derivatives belonging to financial liabilities) are
subsequently measured according to their fair values. Except for those related to hedge
accounting changes in fair values are included in current profits and losses.Financial liabilities designated to be measured at fair value with changes included in
current profits and losses. Changes in the fair value of this liability caused by changes in the
Company's own credit risk are included in other comprehensive income. When the liability is
derecognized the accumulated change in fair value caused by changes in its own credit risk
included in other comprehensive income is transferred to retained earnings. Changes in fair
value are accounted into current profits and losses. If the above-mentioned treatment of the
impact of changes in the credit risk of these financial liabilities will cause or expand accounting
mismatch in profits and losses the Company will include all profits or losses of the financial
liabilities (including the impact amount of changes in the credit risk of the enterprise itself) into
the current profits and losses.Page 18 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
* Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of
financial assets that do not meet the conditions for termination of recognition or continue to be
involved in the transferred financial assets other financial liabilities are classified as financial
liabilities measured at amortized cost and subsequently measured at amortized cost. Gains or
losses arising from termination of recognition or amortization are included in current profits
and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: *
The termination of the contractual right to receive cash flow from the financial asset. * The
financial asset has been transferred and almost all risks and rewards related to the ownership
of the financial asset have been transferred to the transferee. * The financial asset has been
transferred. Although the enterprise has neither transferred nor retained almost all risks and
rewards in the ownership of the financial asset it has given up its control over the financial
asset.If the enterprise neither transfers nor retains almost all the risks and rewards of the
ownership of the financial assets and does not give up the control over the financial assets the
relevant financial assets shall be recognized according to the extent of continuous involvement
in the transferred financial assets and the relevant liabilities shall be recognized accordingly.The degree of continuous involvement in the transferred financial assets refers to the risk level
faced by the enterprise due to the change in the value of the financial assets.If the overall transfer of financial assets meets the conditions for termination of recognition
the difference between the book value of the transferred financial assets and the sum of the
consideration received due to the transfer and the accumulated amount of changes in fair value
originally included in other comprehensive income shall be included into the current profits and
losses.If the partial transfer of financial assets meets the conditions for termination of recognition
the book value of the transferred financial assets shall be apportioned according to its relative
fair value between the derecognized part and the non derecognized part and the difference
between the sum of the consideration received due to the transfer and the accumulated change
in fair value originally included in other comprehensive income that shall be apportioned to the
derecognized part and the allocated aforesaid book amount shall be included into the current
Page 19 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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
Page 20 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Fair value refers to the price that market participants can receive from selling an asset or
pay to transfer a liability in an orderly transaction on the measurement date. Where there is an
active market for financial instruments the Company adopts quotations in the active market to
determine their fair values. Quoted price in active market refers to the price easily obtained
from exchanges brokers industry associations pricing service agencies etc. on a regular basis
and represents the price of market transactions actually occurred in fair trading. If there is no
active market for financial instruments the Company uses evaluation techniques to determine
their fair values. Evaluation techniques include reference to prices used in recent market
transactions by parties familiar with the situation and willing to trade reference to current fair
values of other financial instruments that are substantially the same discounting cash flow
technique option pricing model etc. In valuation the Company adopts valuation techniques
that are applicable under current circumstances and are supported by sufficient available data
and other information selects input values that are consistent with the characteristics of assets
or liabilities considered by market participants in transactions related to assets or liabilities and
gives priority to the use of relevant observable input values as much as possible. If the relevant
observable input value cannot be obtained or it is not impracticable to obtain it the non-input
value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual
equity in assets after deducting all liabilities. The issuance (including refinancing) repurchase
sale or cancellation of equity instruments by the Company are treated as changes in equity and
transaction costs related to equity transactions are deducted from equity. The Company does
not recognize changes in the fair value of equity instruments.Dividends (including "interest" generated by instruments classified as equity instruments)
distributed by the Company's equity instruments during their existence shall be treated as profit
distribution.
12. Impairment of financial assets
The financial assets of the Company that need to confirm the impairment loss are financial
assets measured at amortized cost and debt instrument investment measured at fair value with
changes included in other 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
Page 21 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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
Page 22 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
risk in the entire duration to determine whether the credit risk has increased significantly since
the initial recognition.Generally if the overdue period is more than 90 days the Company will consider that the
credit risk of the financial instrument has increased significantly unless there is conclusive
evidence that the credit risk of the financial instrument has not increased significantly since the
initial recognition.The Company will consider the following factors when evaluating whether the credit risk
has increased significantly
1) Whether there is any significant change in the actual or expected operating results of
the debtor;
2) Whether there is any significant adverse change in the regulatory economic or
technological environment of the debtor;
3) Whether there is any significant change in the value of the collateral or the quality of
the guarantee or credit enhancement provided by the third party which are expected to reduce
the economic motivation of the debtor's repayment according to the time limit stipulated in the
contract or affect the probability of default;
4) Whether there is any significant change in the expected performance and repayment
behavior of the debtor;
5) Whether there is any significant change in the Company's credit management methods
for financial instruments etc.On the balance sheet date if the Company judges that the financial instrument has only
low credit risk the Company assumes that the credit risk of the financial instrument has not
increased significantly since the initial recognition. If the default risk of a financial instrument
is low the borrower's ability to perform its contractual cash flow obligations in a short period
of time is strong and even if there are adverse changes in the economic situation and operating
environment for a long period of time it may not necessarily reduce the borrower's ability to
perform its contractual cash obligations then the financial instrument is considered to have low
credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a
Page 23 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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 assets
At the end of the period the Company calculates the estimated credit losses of various
Page 24 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
financial assets. If the estimated credit losses are greater than the book amount of its current
impairment reserve the difference is recognized as impairment loss. If it is less than the
carrying amount of the current impairment reserve the difference is recognized as impairment
gain.
(6) Methods for determining the credit loss of various financial assets
* Notes receivable
The Company measures the loss reserve for bills receivable according to the expected
credit loss amount equivalent to the entire duration. Based on the credit risk characteristics of
bills receivable they are divided into different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
According to the acceptor's credit risk classification it should
Commercial acceptance bill
be the same as the "receivable" portfolio classification.As for the notes receivables’ classified as portfolio the Company referred to the historical
credit loss experience combined with current situation and forecast for the future economic
condition calculating the expected credit loss. Through risk exposure at default and lifetime
expected credit loss
* Accounts receivable and other receivables
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
Page 25 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
risk they are divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
As for the receivables classified as portfolio the Company referred to the historical credit
loss experience combined with current situation and forecast for the future economic condition
calculating the expected credit loss. Through cross reference table between the aging of
receivables and lifetime expected credit loss. The aging of receivables is calculated on the date
of recognition.The portfolio of other receivable is recognized as follows:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
Portfolio 2 Deposit/margin portfolio
Portfolio 3 The portfolio of reserve fund ledger formed by the Company's staff loan
As for the other receivables classified as portfolio the Company referred to the historical
credit loss experience combined with current situation and forecast for the future economic
condition calculating the expected credit loss. Through risk exposure at default and lifetime
expected credit loss in the coming 12 months. For the other receivables classified as aging is
calculated on the date of recognition.
13. Inventory
(1) Classification of inventory
Inventories mainly include raw materials work in progress finished goods in transit
materials inventory goods reserve tanker storage commissioned processing and manufacturing
consignment etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs
processing costs and other expenditures. The actual cost of inventories upon delivery is
calculated using the weighted average method.
(3) Confirmation of net realizable value of inventories and method of accrual of falling
price reserve
Page 26 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Net Realizable Value refers to the amount of estimated selling price of inventories minus
the estimated cost till completion estimated expenses for selling activity and related taxes and
fees in daily activities. When determining the net realizable value of inventories solid evidence
obtained shall be the basis and the purpose of holding the inventories and the impact of events
after the balance sheet date shall be considered.On the balance sheet date inventories shall be measured at lower of cost and net realizable
value. When the net realizable value is lower than the cost the provision for inventory
devaluation shall be accrued. The provision for inventory devaluation shall be accrued based
on the difference between the cost of a single inventory item and its net realizable value. The
provision for inventory devaluation of a large number of inventories with low unit prices shall
be based on the type of inventory; for inventories related to the product range produced and
sold in same region having the same or similar end use or purpose and difficult to be separated
from other items for measurement their provision for inventory devaluation can be combined
and accrued.After the provision for inventory devaluation is accrued if the factors cause the previous
written-down inventory value have disappeared and the situation results in the fact that the net
realizable value of the inventories higher than the book value the amount of the provision for
inventory devaluation that has been accrued shall be reversed and included in the current period
profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are
received; packaging materials are amortized by one-off amortization method when they are
received.
14. Non-current assets or disposal groups held for sale
(1) Recognition standards and accounting method treatment for Held-for-sale assets and
disposal group
A non-current asset or disposal group is classified as held for sale when its carrying amount
will be recovered principally through a sale transaction rather than through continuous use. The
following conditions need to be simultaneously met to be classified as held for sale: a non-
current asset or to-be-disposed portfolio can be sold immediately under the current conditions
Page 27 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
based on the practice of selling such asset or to-be-disposed portfolio in similar transactions;
the Company has already decided on the sale plan and obtained confirmed purchase
commitment; the sale is scheduled to be completed within one year. Among them a Disposal
Portfolio refers to a group of assets that will be disposed of as a whole through sale or other
approaches in a transaction and the liabilities directly associated with these assets transferred
along with the assets in transaction. If the portfolio of assets or group of portfolios of assets is
allocated goodwill acquired in business merger in accordance with Accounting Standards for
Business Enterprises No. 8 - Asset Impairment the Disposal Portfolio shall include the
goodwill allocated to it.In the event that the book value of a non-current asset or to-be-disposed portfolio that has
been designated as held-for-sale category is higher than the net amount of fair value less sales
expenses when the non-current asset or to-be-disposed portfolio is initially measured or
measured on the balance sheet date the book value shall be to the net amount of fair value
minus sales expenses and the written-down amount shall be recognized as asset impairment
loss and included in current period profit or loss. The provision for impairment loss of the held-
for-sale asset shall be accrued. For a Disposal Portfolio the confirmed impairment loss shall
deduct the book value of the goodwill in the Disposal Portfolio then deduct the book value of
the non-current assets determined by the measurement on a pro-rata basis in accordance with
the applicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-currentassets Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guidefor 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 “Guidefor 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
Page 28 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
from the liabilities in held-for-sale Disposal Portfolio shall still be recognized.When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-
For-Sale category non-current asset or Disposal Portfolio will no longer be classified as Held-
For-Sale category by the Company or the non-current asset will be removed from the Held-For-
Sale Disposal Portfolio and be measured based on one of the following two values whichever
is lower: (1) The book value before being classified as held-for-sale category adjusted based on
the depreciation amortization or impairment that should have be confirmed if it is not classified
as held-for-sale category; (2) recoverable amount.
(2) Standards for Determining and Methods for the Presentation of Discontinued
Operations.A component of an entity that either has been disposed of or is classified as held for sale
and:
a) represents a separate major line of business or geographical area of operations
b) is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations or
c) is a subsidiary acquired exclusively with a view to resale.Net profit from continuing operation and Net profit from discontinued Operation are added
under the Item Net Profit of the Profit and Loss Statement a single amount in the statement of
comprehensive income comprising the total of:i) the post-tax profit or loss of continuing
operation and discontinued operations. Profit and Loss from the discontinued operation shall
listed as Discontinued Operation Profit and Loss which comprises of the entire reporting period
not only recognized as the reporting period after the termination of the operation.
15. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity
investment that the Company has control joint control or significant influence on the invested
entity. The long-term equity investment of the Company that does not have control joint control
or significant impact on the investee shall be accounted as a financial asset measured at fair
value with its changes included into the current profits and losses. Among them if it is non-
transactional the Company may choose to designate it as a financial asset measured at fair
value and its changes are included in the accounting of other comprehensive income at the time
Page 29 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
of initial recognition. For details of its accounting policies please refer to Note Ⅲ 11“Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an
arrangement in accordance with relevant agreements and relevant activities of the arrangement
can only be decided based on the consensus of all parties sharing the control rights before
making a decision. Significant Influence refers to power of the Company to participate in the
decision-making of the financial and operating policies of the investee but the Company cannot
control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the
same control the apportioned share of the book value in the final controller's consolidated
financial statements on the combination date in accordance with the shareholders' equity shall
be the initial investment cost of the long-term equity investment. The capital reserve shall be
adjusted subject to the difference between the initial investment cost of the long-term equity
investment and the cash paid the non-cash assets transferred and the book value of the debts
assumed; if the capital reserve is insufficient for offsetting the retained earnings shall be
adjusted. Where the equity securities are issued as merger consideration the apportioned share
of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-
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
Page 30 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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 “packagedeal” all transactions will be treated as a transaction that obtains control. If it is not a “packagedeal” the initial investment cost of the long-term equity investment calculated by the cost
method shall be calculated based on the sum of the book value of the equity investment in the
original holder and the new investment cost. The original share holding that measured using
equity method the relevant other comprehensive income does temporarily not conduct
accounting treatment.Intermediary expenses such as for auditing legal services assessment and other related
expenses incurred by a combining party or a purchaser for business combination shall be
recognized in current period profit or loss when incurred.The equity investments other than formed by business combination shall be initially
measured at cost. The cost will be determined based on the following amount according to
different methods of the acquisition of long-term equity investment: the purchase price in cash
actually paid by the Company; the fair value of the equity securities issued by the Company
the value agreed in relevant investment contract or agreement; the fair value or original book
value of the assets exchanged in non-monetary asset exchange transaction; the fair value of the
long-term equity investment itself. Any expenses taxes and other necessary expenses directly
related to the acquisition of long-term equity investments shall also be included in the cost of
investment. The cost of long-term equity investment for the additional investment that can exert
significant influence on investee or implement joint control but does not constitute control shall
be the sum of the fair value of the originally held equity investment recognized in accordance
with the Accounting Standards for Business Enterprises No.. 22 – Recognition and
Measurement of Financial Instruments and the cost for new investment.Page 31 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have
joint control over the invested entity (except for those constituting joint operators) or have
significant impact on the invested entity. In addition the company's financial statements use
the Cost Method to account for long-term equity investments which can control the long-term
equity investment of the investee.* Long-term equity investment based on Cost Method
When accounting with Cost Method long-term equity investment is priced at the initial
investment cost and the cost of the long-term equity investment is adjusted by adding or
recovering the investment. Except for the actual payment at the time of obtaining investment
or the cash dividends or profits included in the consideration but not yet issued the current
investment income shall be recognized according to the cash dividends or profits declared by
the investee.* Long-term equity investment accounted for by Equity Method
When accounting with Equity Method if the initial investment cost of a long-term equity
investment is greater than the fair value share of the identifiable net assets of the investee when
investing and the initial investment cost of the long-term equity investment shall not be
adjusted; if the initial investment cost is less than the fair value share of the identifiable net
assets of the investee when investing the difference shall be included in the current profit and
loss and the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method the investment income and other comprehensive
income are recognized separately according to the shares of the net profit or loss and other
comprehensive income that should be enjoyed or shared and the book value of the long-term
equity investment should be adjusted at the same time. The book value of long-term equity
investment is reduced accordingly by calculating the share that should be enjoyed according to
the profit or cash dividend declared by the investee. The book value of long-term equity
investment shall be adjusted and included in the capital reserve for other changes in the owner's
rights and interests of the invested entity other than the net profit and loss other comprehensive
income and profit distribution. When confirming the share of the net profit and loss of the
investee the net profit of the investee shall be adjusted and confirmed on the basis of the fair
value of the identifiable assets of the investee at the time of investment. If the accounting
policies and periods adopted by the invested entity are inconsistent with the Company the
Page 32 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
financial statements of the invested entity shall be adjusted in accordance with the accounting
policies and periods of the Company and the investment income and other comprehensive
income shall be confirmed accordingly. For the transactions between the Company and the
associates and joint ventures the assets invested or sold do not constitute a business and the
unrealized gains and losses from internal transactions are offset against the portion of the
Company that is attributable to the proportion of the shares on this basis. investment profit and
loss should be confirmed. However the unrealized internal transaction losses incurred by the
Company and the investee are not included in the impairment losses of the transferred assets.Where the assets invested by the Company into a joint venture or an associates constitute a
business if the investor obtains long-term equity investment but does not control the fair value
of the invested business shall be deemed as the initial investment cost of the new long-term
equity investment and the difference between the initial investment cost and the book value of
the invested business is fully recognized in the current profits and losses. If the assets sold by
the Company to a joint venture or an associate that constitute a business the difference between
the consideration value obtained and the book value of the business shall be fully recognized in
the profits and losses of the current period.When confirming the net loss that incurred by the investee should be shared the book
value of the long-term equity investment and other long-term equity that substantially
constitutes the net investment of the investee are reduced to zero. In addition if the Company
has an obligation to bear additional losses to the investee the estimated liabilities shall be
recognized according to the estimated obligations and included in the current investment losses.If the investee achieves net profit in the following period the Company shall resume
recognizing the share of income after making up for the unrecognized share of loss.For the long-term equity investment in the joint ventures and associates held by the
Company for the first time before the implementation of the new accounting standards if there
is a debit balance of equity investments related to the investment the current profits and losses
shall be accounted for by the straight-line amortization of the original remaining period.
(3) Acquisition of Minority Equity
In the preparation of the consolidated financial statements if the difference between the
long-term equity investment added by purchasing minority shares and the net assets share that
should be continuously calculated by the subsidiary company from the purchase date (or the
consolidation date) is calculated according to the proportion of newly added shares the retained
Page 33 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
earnings shall be adjusted; and if the capital reserve is insufficient to offset the retained
earnings shall be adjusted.
(4) Disposal of long-term equity investment
In the consolidated financial statements the parent company partially of disposes of the
long-term equity investment of the subsidiary without losing control the difference of the
corresponding net assets in the subsidiary between the disposal price and the disposal of the
long-term equity investment is included in the shareholders' equity. it shall be treated inaccordance with the relevant accounting policies described in “Notes on the preparation ofconsolidated financial statements” in Note Ⅲ.7 .For the disposal of long-term equity investment in other cases the difference between the
book value of the disposed equity and the actual acquisition price shall be included in the current
profits and losses.If the long-term equity investment is accounted for by equity method the remaining equity
after disposal is still accounted for by equity method when disposing the other comprehensive
income which were originally included in shareholder's rights and interests shall be accounted
for on the same basis as the assets or liabilities directly disposed of by the investee. The owner's
equity recognized as a result of changes in the owner's equity of the investee other than net
profit or loss other comprehensive income and profit distribution it should be carried forward
to the current profit and loss
For the long-term equity investment accounted by Cost Method the remaining equity is
still accounted by Cost Method after disposal other comprehensive income that recognized by
equity method accounting or financial instrument recognition and measurement criteria
accounting before obtaining control over the investee shall be accounted for on the same basis
as the assets or liabilities directly disposed of by the investee and shall be settled to the current
profit and loss in proportion. Changes of the net assets of investee in the owner's equity other
than net profit or loss other comprehensive income and profit distribution 's that recognized by
equity method shall be settled to the current profit and loss in proportion.Where the Company loses control over the investee due to disposal of part of its equity
investment when preparing individual financial statements if the remaining equity after
disposal can exercise joint control or exert significant influence on the investee it shall be
accounted for by equity method instead and the remaining equity shall be adjusted by
accounting by equity method when it is deemed to be acquired. If the remaining equity after
Page 34 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
disposal cannot be jointly controlled or exerts significant influence on the investee it shall be
accounted for according to the relevant provisions of the financial instrument recognition and
measurement criteria and the difference between the fair value and the book value on the date
of loss of control. It is included in the current profit and loss. Before the Company obtains
control over the investee other comprehensive income recognized by equity method accounting
or financial instrument recognition and measurement criteria is used to directly dispose of the
relevant assets with the investee accounting treatment based on the same basis as the investee
directly disposes of related assets or liabilities when the control of the investee is lost
Accounting is treated on the same basis as the liabilities. Changes in the owner's equity other
than net profit or loss other comprehensive income and profit distribution of the investee's net
assets recognized by the equity method are carried forward to the current profit or loss when
the control of the investee is lost. Among them the remaining equity after disposal is accounted
for using the equity method. Where the remaining equity after disposal is accounted for by
equity method other comprehensive income and other owner's equity should be settled by
proportion. If the remaining equity is accounted for using financial instrument recognition and
measurement standard all of other comprehensive income and other shareholder’s equity
should be settled.If the Company loses its joint control or significant influence on the investee due to the
disposal of part of the equity investment the remaining equity after disposal shall be accounted
for according to the financial instrument recognition and measurement criteria and the
difference between the fair value and the book value on the date of loss of joint control or
significant influence is recognized in the current profit or loss. The other 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
Page 35 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
is lost it is transferred to the current profit and loss of loss of control.
16. Investment Property
Investment Property refers to property held for the purpose of earning rent or capital
appreciation or both including land use rights that have been leased land use rights that are
held and prepared for transfer after appreciation and buildings that have been rented.Investment property is initially measured at cost. The expenses related to investment property
if the economic benefits related to this asset are highly probable to flow into the company and
the cost can be measured reliably then the expense will account for as the cost of investment
property. Other expenses are accounted for in profit and loss when incurred.The Company adopts the cost model to conduct subsequent measurement of investment
property and depreciation or amortization according to the policy consistent with the building
or land use rights.For details of the impairment test method and impairment provision method of property
please refer to Note Ⅲ. 23 “Long-Term Asset Impairment”.When the self-use property or inventory is converted into investment property or
investment property is converted into self-use property the book value before conversion is
used as the recorded value after conversion.When the use of investment property is changed to self-use the investment property is
converted into fixed assets or intangible assets from the date of change. When the use of self-
use property changes to earn rent or capital appreciation the fixed assets or intangible assets
are converted into investment property from the date of change. In the case of investment
property measured by the cost model when the conversion occurs the book value before
conversion is used as the entry value after conversion; if it is converted into investment property
measured by the fair value model the fair value of the conversion date is used as the entry value
after conversion.When an investment real estate is disposed of or permanently withdrawn from use and is
not expected to obtain economic benefits from its disposal the confirmation of the investment
real estate shall be terminated. Disposal income from the sale transfer retirement or damage
of investment properties is charged to the current profit and loss after deducting its book value
and related taxes and fees.
17. Fixed Assets
Page 36 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods providing
labor services renting or operating management and having a service life of more than one
fiscal year. Fixed assets are recognized only when the economic benefits associated with them
are likely to flow into the Company and their costs can be reliably measured. Fixed assets are
initially measured at cost and taking into account the impact of projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the
month following the scheduled availability. The depreciation period estimated net residual
value rate and annual depreciation rate of each category of fixed assets are as follows:
Depreciation Depreciation Net salvage Annual depreciation
Category
Method period (Year) rate(%) rate (%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
straight-line
Machinery equipment 5-28 4、5 3.39—19.20
depreciation
straight-line
Transport facility 5-10 4、5 9.50—19.20
depreciation
straight-line
Electronic equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Office equipment 3-10 4、5 9.50—32.00
depreciation
straight-line
Other equipment 5-28 4、5 3.39—19.20
depreciation
The estimated net residual value refers to the expected state after the estimated useful life
of the fixed assets has expired and is at the end of its useful life. The amount currently obtained
by the Company from the disposal of the assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets
Page 37 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
please refer to Note Ⅲ. 22 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated
with ownership of an asset and its ownership may or may not be transferred. If it is reasonable
to determine the ownership of the leased asset at the expiration of the lease term the
depreciation shall be calculated within the useful life of the leased asset; If it is not reasonable
to determine the ownership of the leased asset at the expiration of the lease term depreciation
shall be calculated within a relatively short period of the lease term and the service life of the
leased assets.
(5) Others
The subsequent expenses related to fixed assets if the economic benefits related to the
fixed assets are likely to flow in and their costs can be reliably measured are included in the
cost of fixed assets and the book value of the replaced part should be terminated. The
subsequent expenditures other than mentioned as above are recognized in profit or loss in the
period in which they are incurred.The fixed asset is derecognized when the fixed asset is in disposal or is not expected to
generate economic benefits by using or disposal. The difference between the disposal income
from the sale transfer retirement or damage of the fixed assets less the carrying amount and
related taxes is recognized in profit or loss for the current period.The Company reviews the useful life estimated net residual value and depreciation
method of fixed assets at least at the end of the year and changes as an accounting estimate if
changes occur.
18. Construction in progress
The cost of construction in progress is determined based on actual project expenditure
including various project expenditures incurred during the construction period capitalized
borrowing costs before the project reaches the expected usable status and other related
expenses. Construction in progress is carried forward to fixed assets when it is ready for its
intended use.For details of the impairment test method and impairment provision method for
construction in progress please refer to Note Ⅲ. 22 “Long-Term Asset Impairment”.Page 38 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
19. Borrowing Costs
Borrowing costs include interest on borrowings amortization of discounts or premiums
ancillary expenses and exchange differences arising from foreign currency borrowings.Borrowing costs directly attributable to the acquisition construction or production of assets
eligible for capitalization capitalization is began when asset expenditures have occurred
borrowing costs have occurred and the acquisition construction or production activities
necessary to bring the assets to the intended usable or saleable state have begun. And
capitalization is stopped when the assets under construction or production that meet the
capitalization conditions are ready for their intended use or saleable status. The remaining
borrowing costs are recognized as an expense in the period in which they are incurred.The interest expenses actually incurred in the current period of special borrowings shall
be capitalized after subtracting the interest income from the unused borrowing funds deposited
into the bank or the investment income obtained from the temporary investment. For the general
borrowings according to the accumulated asset expenditures exceed the special borrowings.The capitalization amount is determined by multiplying the weighted average of which
accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion
by the capitalization rate of the general borrowings used. The capitalization rate is determined
based on the weighted average interest rate of general borrowings.During the capitalization period the exchange differences of foreign currency special
borrowings are all capitalized; the exchange differences of foreign currency general borrowings
are included in the current profit and loss.Assets eligible for capitalization refer to assets such as fixed assets investment property
and inventories that require a substantial period of acquisition construction or production
activities to achieve the intended use or sale status.If the assets eligible for capitalization are interrupted abnormally during the acquisition
construction or production process and the interruption period lasts for more than 3 months the
capitalization of the borrowing costs shall be suspended until the acquisition construction or
production of the assets resumes.
20. Right-of-use assets
Right-of-use assets of the Group mainly consist of buildings power generation and
transmission equipment plant machinery and equipment motor vehicles furniture and fixtures
Page 39 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
and others.
(1) Initial accountings
At the commencement date of the lease the Group recognizes the right to use the leased
assets during the lease term as a right-of-use asset including: the initial measurement amount
of the lease liability; the amount of lease payment paid on or before the beginning of the lease
term the amount of lease incentive already enjoyed shall be deducted if there is a lease incentive;
initial direct expenses incurred by the lessee; the costs that the lessee is expected to incur in
order to dismantle and remove the leased asset restore the leased asset to the site or restore the
leased asset to the state agreed upon in the lease terms. The right-of-use assets are depreciated
on a straight-line basis subsequently by the Group. If the Group is reasonably certain that the
ownership of the underlying asset will be transferred to the Group at the end of the lease term
the Group depreciates the asset from the commencement date to the end of the useful life of the
asset. Otherwise the Group depreciates the assets from the commencement date to the earlier
of the end of the useful life of the asset or the end of the lease term.The company recognizes and measures the above costs under Item 4 in accordance with
the Accounting Standards for Enterprises No.13–Contingencies.
(2) Subsequent accounting
The Company accursed the right-of-use assets according to the Accounting Standards for
Enterprises NO.4-Fixed Assets. Commencement from the date of lease the Company shall
accrue the right-of-use assets. Generally the right-of-use assets are accrued at the start of the
lease date the expenses of depreciation accrued shall include into relevant asset cost or profit
and loss in the current period based on the purpose of right-of-use assets. While recognizing
the method of right-of-use assets the Company shall make decisions on the economic benefit
of forecast consumption mode related to the right-of-use assets accrues the deprecation by
straight-line method. When the Company recognize the depreciation period of right-of-use
assets maturity of lease period can be determined in a reasonable and well-grounded manner
on the acquisition of the right-of-use assets accursed the deprecation in its remaining service
life. If the right-of-use lease assets could not be determined reasonably while the service life is
mature depreciation is applied with the short period of time between the lease term and the
remaining useful life of the lease asset.If there is impaired right-of-use assets the Company shall accrue the subsequent
deprecation based on the book value of right-of-use assets after deducting the loss of
Page 40 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
impairment.The Company determined not to recognized the right-of-use assets and lease liabilities on
the short-term lease (lease term not exceeding 12 months) and recognizes the relevant lease
payment during the respective lease term in the current profit and loss or cost of assets relevant
in straight line method. Impairment test method and the provision method for diminution in
value of right-of-use assets are detailed in Note III 23 “Long-Term Asset Impairment”
21. Intangible Assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or
controlled by the Company.Intangible assets are initially measured at cost. Expenditure related to intangible assets is
included in the cost of intangible assets if the relevant economic benefits are likely to flow to
the Company and its costs can be measured reliably. However the intangible assets acquired
through business combination not involving enterprises under common control should be
measured at fair value separately as intangible assets when their fair values can be reliably
measured.The acquired land use rights are usually accounted for as intangible assets. The related
land use rights and building construction costs of self-developed and constructed buildings are
accounted for as intangible assets and fixed assets respectively. In the case of purchased houses
and buildings the relevant price is distributed between the land use rights and the buildings. If
it is difficult to allocate them reasonably all of them are treated as fixed assets.
(1) Basis for determining the service life the estimate thereof and amortization methods
and the procedures for reviewing their service life
When recognizing the service life of the intangible assets being sourced from any
contractual right or other statutory rights its service life shall not exceed the life of contractual
rights or other statutory rights. As for the intangible assets not specified either under the contract
or legal regulations the company combined various situations such as employing relevant
professional persons to undergo the justification or make comparison with the situation of the
same industry and the historical experience of the Company determining the future economic
benefit service life which is brought by the intangible assets. If the efforts are made but could
not recognized reasonably that the intangible asset shall bring the economic benefit service life
for the Company then shall treat this as uncertain service life of the intangible asset.Page 41 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Since the intangible assets with limited useful life are available for use the original value
minus the estimated net residual value and the accumulated amount of impairment reserve shall
be amortized by the straight-line method during their expected service life. Intangible assets
with uncertain service life shall not be amortized.Among them the useful life and amortization method of intellectual property are as
follows:
Item Amortization period (year) Amortization method
Trademark 20 Straight-line method
Software 3-10 Straight-line method
Land-use rights 50 Straight-line method
At the end of the period the useful life and amortization methods of intangible assets with
limited useful 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;
Page 42 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
d. sufficient technical financial resources and other resources for supporting the
development of the intangible assets and the ability to use or sell the intangible assets.e. Expenditure attributable to the development phase of the intangible asset can be reliably
measured.If it is impossible to distinguish the expenditures between research phase and development
phase all research and development expenditures incurred will be included in the current profit
and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method please refer
to Note Ⅲ. 22 “Long-Term Asset Impairment”.
22. Long-term assets impairment
For fixed assets construction in progress intangible assets with limited useful life
investment property measured by cost model and non-current non-financial assets such as long-
term equity investments in subsidiaries joint ventures and associates the Company determines
whether there is any indication of impairment on the balance sheet date. If there is any
indication of impairment the recoverable amount is estimated and the impairment test is carried
out. Goodwill intangible assets with uncertain service life and intangible assets that not yet
ready for use are tested for impairment annually regardless of whether there is any indication
of impairment.If the result of the impairment test indicates that the recoverable amount of the asset is
lower than its book value the impairment provision is made based on the difference and is
included in the impairment loss. The recoverable amount is the higher of the fair value of the
asset less the disposal expense and the present value of the estimated future cash flow of the
asset. The fair value of assets is determined according to the sale agreement price in a fair
transaction. If there is no sales agreement but there is an active market for the asset the fair
value is determined according to the buyer's bid for the asset; if there is neither sales agreement
nor active market for assets the fair value of assets shall be estimated based on the best
information available. Asset disposal expenses include legal fee taxes transportation expenses
and direct expenses incurred to make assets saleable. The present value of the estimated future
cash flow of an asset is determined by the appropriate discount rate discounting and the
estimated future cash flow generated by the asset during its continuous use and final disposal.Page 43 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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.
23. Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by
the reporting period and subsequent periods with amortization period of more than one year.The company's long-term deferred expenses mainly include lease of land use right and
renovation costs of factory building. Long-term deferred expenses are amortized on a straight-
line basis over the estimated benefit period. If the long-term amortized expense item cannot
benefit the company in subsequent accounting periods the amortized value of the item that has
not yet been amortized will be transferred to the current profit or loss.
24. Employee Compensation
The Company's employee compensation mainly includes short-term employee
remuneration Post-employment Benefits Termination Benefits and benefits for other long-
term employee. Among them:
Short-term employees remuneration mainly includes wages bonuses allowances and
subsidies employee welfare fees medical insurance premiums maternity insurance premiums
work injury insurance premiums housing fund labor union funds employee education funds
and non-monetary benefits. The Company recognizes the actual short-term employee's
remuneration as a liability in the accounting period in which employees provide services to the
Company and recognizes them in profit or loss or related asset costs. Non-monetary benefits
Page 44 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
are measured at fair value.Post-employment Benefits mainly include basic retirement security unemployment
insurance and annuities. The Post-employment Benefit Scheme includes a Defined
Contribution Plan and a Defined Benefit Plan. If a Defined Contribution Plan is adopted the
corresponding amount of the deposit shall be included in the relevant asset cost or current profit
and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability based on a
fixed fee paid to an independent fund and is included in the current profit and loss or related
asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulative
benefits unit method Specifically the Company will convert the welfare obligation arising from
the Defined Benefit Plan into the final value of the departure time according to the formula
determined by the expected cumulative benefits unit method; then it is attributed to the
employee's in-service period and is included in the current profit and loss or related asset cost.If the labor relationship with the employee is terminated before the employee's labor
contract expires or if the employee is encouraged to accept the reduction voluntarily when
cannot withdrawing unilaterally the dismissal benefits provided by the termination of the labor
relationship plan or the reduction proposal and when confirming the costs associated with the
restructuring involving the payment of the dismissal benefits whichever is earlier the
Company will recognize the employee compensation liabilities arising from the dismissal
benefits and included in the current profit and loss. However if the dismissal benefits are not
expected to be fully paid within 12 months after the end of annual reporting period they shall
be treated in accordance with other long-term employee compensations.The internal retirement plan for employees shall be treated in the same way as the above-
mentioned dismissal benefits. The company will pay the internal retired staff the salary and the
social insurance premiums from the employee's lay-off to normal retirement and will include
in the current profit and loss (dismissal benefits) when the conditions of the estimated liabilities
are met.If the other long-term employee benefits provided by the Company to the employees are
in line with the Defined Contribution Plan they shall be accounted for Defined Contribution
Plan and otherwise accounted for the Defined Benefit Plan.
25. Estimated liabilities
When the obligations related to the contingencies meet the following conditions they are
recognized as contingent liabilities: (1) The obligation is the present obligation assumed by the
Page 45 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Company; (2) The performance of this obligation is likely to result in the outflow of economic
benefits; (3) The amount of the obligation can be reliably measured.On the balance sheet date taking into account factors such as risks uncertainties and time
value of money related to contingencies the estimated liabilities are measured in accordance
with the best estimate of the expenditure required to perform the relevant current obligations.If all or part of the expenses required to discharge the estimated liabilities are expected to
be compensated by the third party the compensation amount will be separately recognized as
an asset when it is basically determined to be received and the confirmed compensation amount
does not exceed the book value of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will
inevitably occur more than the expected economic benefit. If the contract to be executed
becomes a loss contract and the obligation arising from the loss contract satisfies the conditions
for the recognition of the above-mentioned estimated liabilities the portion of the contract's
estimated loss that exceeds the recognized impairment loss (if any) of the contracted asset is
recognized as the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed formal and have been announced to the public
the amount of the estimated liabilities are determined based on the direct expenses related to
the reorganization subject to the recognition conditions of the aforementioned estimated
liabilities. For the restructuring obligation to the part of business sold the obligation related to
the reorganization is confirmed only when the company promises to sell part of the business
(that is when the binding sale agreement is signed).
26. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a
liability determined based on an equity instrument in order to obtain services from employees
or other parties. Share-based Payments include equity-settled share payment and cash-settled
share payment.* Equity-settled Share Payment
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The equity-settled share payment in exchange for the services from employee is measured
at the fair value of the granting of employees' equity instruments at the grant date. If the fair
value is vested in the completion of the waiting period of service or the fulfillment of the
required performance conditions during the waiting period the amount of the fair value is
calculated by the straight-line method into the relevant costs or expenses based on the best
estimate of the number of vesting equity instruments; Or If the vesting right is granted
immediately after the grant the calculation of the amount of the fair value is included in the
relevant cost or expense on the grant date and the capital reserve is increased accordingly.On each balance sheet date during the waiting period the Company makes the best
estimate based on the latest information on the changes in the number of employees with vesting
rights and corrects the number of equity instruments that are expected to be vested. The impact
of the above estimates shall be included in the current related costs or expenses and the capital
reserve is adjusted accordingly.In the case of equity-settled share-based payments in exchange for other parties' services
if the fair value of other parties' services can be reliably measured the fair value of other
services shall be measured at the fair value on the date of acquisition; If the fair value of the
other party's services cannot be measured reliably the fair value shall be measured at the fair
value of the equity instrument at the date the service is acquired and is included in the relevant
cost or expense which increases the shareholders' equity accordingly.* Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined
by the Company based on shares or other equity instruments. If the vesting right is available
immediately after the grant the relevant costs or expenses shall be included on the date of grant
and the liabilities shall be increased accordingly; if vesting right is available after the service is
completed within the waiting period or met the required performance conditions based on the
best estimate of the vesting rights on each balance sheet date of the waiting period according
to the fair value of the liabilities assumed by the company the services obtained in the current
period are included in the cost or expense and the liabilities are increased accordingly.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
Page 47 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
termination
When the Company modifies the share-based payment plan if the modification increases
the fair value of the equity instruments granted the increase in the fair value of the equity
instruments is recognized accordingly. The increase in the fair value of equity instruments
refers to the difference between the fair value of the equity instruments before and after the
modification. If the modification reduces the total fair value of the share-based payment or
adopts other methods that are not conducive to the employee the service obtained shall continue
to be accounted for as if the change has never occurred unless the Company cancels some or
all of equity instruments.During the waiting period if the granted equity instrument is cancelled the Company will
cancel the granted equity instrument as an accelerated exercise and the amount to be recognized
in the remaining waiting period will be immediately included in the current profit and loss and
the capital reserve will be recognized. If the employee or other party can choose to meet the
non-vesting conditions but fails to meet the waiting period the Company will treat it as a
cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its
Shareholders or Actual Controllers
In respect of the share-based payment transaction between the company and the
shareholders or actual controllers of the company If one of the settlement enterprise and the
service receiving enterprise is in the company and the other is outside the company it shall be
accounted for in the consolidated financial statements of the company according to the
following provisions:
* If the settlement enterprise settles with its own equity instrument the share-based
payment transaction shall be treated as equity-settled share-based payment; otherwise it shall
be treated as a cash-settled share-based payment.If the settlement enterprise is an investor of a serviced enterprise it shall be recognized as
the long-term equity investment of the serviced enterprise according to the fair value of the
equity instrument at the grant date or the fair value of the liability to be assumed and the capital
reserve (other capital reserve) or liabilities shall be recognized.* If the serviced enterprise has no settlement obligation or grants its own employees the
equity instruments the share payment transaction shall be treated as equity-settled share
Page 48 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
payment; if the serviced enterprise has settlement obligation and grants its employees other than
its own equity instruments the share payment transaction shall be treated as a cash-settled share
payment.For the share based payment incurred between companies within the group if the serviced
enterprise and settlement enterprise are not the same then the payment should be recognized
and measured in their individual financial statements they should be accounted for using the
above principles
27. Revenue
The term “revenue” refers to the gross inflow of economic benefits arising in the course
of the ordinary activities of an enterprise which may increase of the shareholder's equities and
is irrelevant to the capital of the shareholder. When the company signs a contract it evaluates
the contract identifies the individual performance obligations contained in the contract and
determines whether the individual performance obligations are performed within a certain
period of time or at a certain point of time. When the company has fulfilled all the performance
obligations in the contract the revenue shall be recognized respectively according to the
transaction price apportioned to the performance obligations. A contract with a customer
generally explicitly states the goods or services that an entity promises to transfer to a customer.The transaction price is the amount of consideration to which an entity expects to be entitled in
exchange for transferring promised goods or services to a customer excluding amounts
collected on behalf of third parties.Generally the company recognizes the revenue from the sales of goods based on the
transaction price apportioned to the single performance obligation when the customer obtains
the control right of the relevant goods on the basis of comprehensively considering the
following factors: the company has the right to receive payment in respect of the goods or
services currently that is the customer has the obligation to pay for the goods currently; the
company has transferred the legal ownership of the goods to the customer that is the customer
has the legal ownership of the goods; The Company has transferred the physical goods of the
commodity to the Customer or the Customer has obtained the qualification of physical goods
right of the commodity. The consideration obtained by the Company in respect of the transfer
of the commodity is likely to be recovered; Other indications that the customer has taken control
of the commodity.For the performance obligations performed in a certain period of time such as the services
Page 49 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
provided the company adopts the input method to determine the appropriate performance
progress and recognizes the revenue according to the performance progress in that period of
time. On the balance sheet date the company shall recognize the current income according to
the total transaction price of the contract multiplied by the progress of performance minus the
accumulated recognized income. If one of the following conditions is satisfied it is regarded as
the performance obligation performed during a certain period of time: the Customer obtains
and consumes the economic benefits arising from the performance of the Company at the same
time of the performance of the Company; Customers can control the goods under construction
during the performance of the contract; The products produced by the Company during the
performance of the Contract are of irreplaceable use and the Company shall be entitled to
receive payment for the accumulated part of the completed performance so far during the whole
term of the Contract. Otherwise the Company recognizes revenue at the point when the
Customer acquires control of the relevant goods or services.Where the contract contains two or more performance obligations an entity shall on the
commencement date of the contract allocate the transaction price to each performance
obligation identified in the contract on a relative standalone selling price basis. Except when an
entity has observable evidence that the entire discount relates to only one or more but not all
performance obligations in a contract the entity shall allocate a discount proportionately to all
performance obligations in the contract. Stand-alone selling price refers to the price of the goods
or services sold by the Company to the customer separately. If the stand-alone selling price
cannot be directly observed the Company shall take into account all relevant information
reasonably available and estimate the stand-alone selling price by observable input values to
the maximum extent
As for the sales with quality guarantee except for it guarantees the product on sale of
service meets the designated standards to the customer providing a single separate service this
quality guaranteed composes the single performance obligation. Otherwise the Company shall
treat the accounting method on quality guarantee obligations in accordance with the Enterprise
Accounting Standards No13- Contingencies.If the contract comprised of significant financing elements the Company shall recognizes
the amount of payables in cash to determine the trading price based on the assumption that
the customer obtains the products or service control rights. The difference between the price
stipulated in the contract or agreement and its contract consideration shall be amortized within
the period of the contract or agreement. through the real interest method. As a practical
Page 50 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
expedient an entity need not adjust the promised amount of consideration for theeffects of a
significant financing component if the entity expects at contract inception that the period
between when the entity transfers a promised good or service to the customer and when the
customer pays for that good or service will be one year or less.The Company justifies the trading identity is the major responsible person or on behalf
based on whether it has the control right to the product or the service before transferring the
products or service to the customer. As the major responsible person of the Company shall
recognizes the revenue based on the total consideration of the amount received or receivable.Otherwise as the agent of the Company shall recognizes the revenue based on the expected
right of obtaining the commission or service charge which is calculated as the total
consideration on the amount received or receivable deducting the net amount payable to other
related parties or recognizes on the amount of commission or proportion etc.The Company received the amount of products sales or service in advance shall
recognizes it as liabilities in the first then accounted as revenue upon fulfilling relevant
performance obligations.The Company has transferred the products or service to its clients and has rights to obtain
the considerations (and this rights is obliged to other elements of passing time) listed as the
contractual assets. Contractual assets are accrued the devaluation provision based on theexpected credit loss. The Company has the unconditional rights （only depends on the passingof time） to its customer for obtaining the considerations listed as item receivables. The
consideration of amount received or receivable which is obtained to its customer shall transfer
product or service obligation to them listed as contractual liabilities.The detailed accounting policies related to the major activities of obtaining the revenue of
the Company
(1) Sales processing
The production and processing sales comprise mainly of sales of oils an oilseeds food etc.The Company recognized the sales revenue when the amounts received or identification
obtained upon sales which has been submitted and signed by the customer.
(2) Trading Revenue
If the Company obtained the product control rights from the third party and transferred to
the client assumed the significant obligations under the transaction of transferring the products
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to the client. i.e. inventory risk and has rights to determine the price of the products oneself.The identity of the Company under the transaction is the major responsible person recognizing
the trading revenue based on the expected rights for obtaining the total consideration stipulated
on the contract. The Company made commitment to arrange others to provide specific products
but has no control rights on this before providing the specific products to clients. The identity
of the Company under the transaction is agent recognizing the revenue on the commission
obtained or service amount for arranging others to provide the specific products to clients.
28. Contract costs
Contract cost comprises contract performance cost and contract acquisition cost.The cost incurred by the company for the performance of the contract which does not fall
within the scope of other accounting standards for business enterprises other than the income
standard and meets the following conditions at the same time is recognized as an asset as the
contract performance cost:
(1) The cost is directly related to a current or expected contract including direct labor
direct materials manufacturing expenses (or similar expenses) costs explicitly borne by the
customer and other costs incurred solely as a result of the contract;
(2) The cost increases the company's resources for fulfilling its performance obligations
in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the
amortization period has exceeded one normal operating cycle at the time of its initial
recognition.If the incremental cost incurred by the company to obtain the contract is expected to be
recovered it shall be recognized as an asset as the contract acquisition cost. Incremental cost
refers to the cost that will not occur if the company does not obtain the contract.The assets related to the contract cost mentioned above shall be amortized at the time of
performance of the obligation or according to the performance progress on the same basis as
the income recognition of the commodity or service related to the asset and shall be recorded
into the current profit and loss.If the book value of the above assets related to the contract cost is higher than the
Page 52 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
difference between the residual consideration expected to be obtained by the company due to
the transfer of the goods related to the assets and the estimated cost to be incurred for the transfer
of the relevant goods the excess part shall be set aside as an impairment provision and
recognized as an impairment loss of the asset.
29. Government grants
Government grant refers to the company's acquisition of monetary and non-monetary
assets from the government free of charge excluding the capital invested by the government as
an investor and enjoying the corresponding owner's rights and interests. Government grants
include assets-related grants and revenue-related grants. The company defines the government
grant obtained for the purchase and construction of long-term assets or for the formation of
long-term assets in other ways as the government grant related to assets; the remaining
government grant is defined as the government grant related to income. If the object of grants
is not specified in government documents the grants shall be divided into income-related
government grants and assets-related government grants in the following ways: (1) If the
government document clarifies the specific project for which the grant is targeted the
proportion of the expenditure amount of the assets to be formed and the amount of the
expenditures included in the expenses in the budget of the specific project are divided and the
proportion of grant division needs to be reviewed on each balance sheet day and changed if
necessary. (2) In government documents if the purpose is expressed only in general terms and
no specific project is specified the grant shall be regarded as a government grant related to the
income. Where a government grant is a monetary asset it shall be measured according to the
amount received or receivable. If the government grants are non-monetary assets they shall be
measured at the fair value; if the fair value cannot be obtained reliably they shall be measured
at the nominal amount. Government grants measured in nominal amounts shall be recognized
directly in current profits and losses.The Company usually confirms and measures the government grant according to the
amount when it is actually received. However if there is conclusive evidence at the end of the
period that the relevant conditions stipulated in the financial support policy can be met and the
financial support funds are expected to be received it shall be measured according to the
amount receivable. Government grants measured in accordance with the amount receivable
shall meet the following conditions at the same time: (1) The amount of the subvention
receivable has been confirmed by the authorized government departments or can be reasonably
calculated according to the relevant provisions of the formally issued financial fund
Page 53 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
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:
Page 54 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
(1) If the finance department allocates the discount interest funds to the lending bank and
the lending bank provides the loan to the Company at the policy preferential interest rate the
Company chooses to conduct accounting treatment according to the following methods: the
loan amount actually received shall be taken as the entry value of the loan and the relevant
borrowing costs shall be calculated in accordance with the loan principal and the policy
preferential interest rate.
(2) If the finance allocates the discount funds directly to the company the company will
offset the corresponding discount against the relevant borrowing costs.
30. Deferred tax assets/deferred tax liabilities
(1) Current Income Tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current
and previous periods are measured by the expected amount of income tax payable (or returned)
in accordance with the provisions of the Tax Law. The amount of taxable income on which
current income tax expenses are calculated is based on the corresponding adjustment of pre-tax
accounting profits in the reporting period in accordance with the relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis
and the temporary difference between the book value of items that are not recognized as assets
and liabilities but which can be determined as their tax basis according to the tax law are
confirmed by the balance sheet liability method.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
Page 55 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
liability arising from a transaction that is neither a business combination nor an accounting
profit or taxable income (or deductible loss) relevant deferred income tax liabilities shall not
be recognized. In addition for taxable temporary differences related to investments in
subsidiaries associates and joint ventures if the temporary difference is unlikely to be reversed
in the foreseeable future or the amount of taxable income used to offset the temporary
difference is unlikely to be obtained in the future the deferred income tax assets concerned
shall not be recognized. Except for the above exceptions the Company recognizes other
deferred income tax assets that can offset temporary differences subject to the amount of
taxable income that is likely to be obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years the
corresponding deferred income tax assets are recognized to the extent that it is probable that the
future taxable income shall be used to offset the deductible losses and tax credits.On the balance sheet date the deferred income tax assets and deferred income tax
liabilities shall be measured at the applicable tax rates in the period in which the related assets
are recovered or the related liabilities are recovered in accordance with the tax laws.On the balance sheet date the book value of deferred income tax assets is reviewed. and
the book value of deferred income tax assets is written down if it is likely that sufficient taxable
income will not be available to offset the benefits of deferred income tax assets in the future.When it is possible to obtain sufficient taxable income the amount written down shall be
reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.In addition to recognizing that the current income tax and deferred income tax related to
other transactions and matters directly included in shareholder's rights and interests shall be
recognized in other comprehensive income or shareholder's rights and interests and the book
value of adjusted goodwill from deferred income tax resulting from the merger of enterprises
the other current income tax and deferred income tax expenses or gains shall be recognized in
profit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis and intends to settle on a net
basis or acquire assets and pay off liabilities at the same time the company's current income
Page 56 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
tax assets and current income tax liabilities shall be presented on a net basis after the offset.When it has the legal right to settle current income tax assets and current income tax
liabilities on a net basis and deferred income tax assets and deferred income tax liabilities are
related to the income tax levied by the same tax administration department on the same tax
payer or to different tax payers but in the future during each important period of deferred
income tax assets and liabilities being reversed the taxpayer involved intends to settle the
current income tax assets and liabilities on a net basis or acquire assets and pay off liabilities
simultaneously the deferred the income tax assets and deferred income tax liabilities of the
Company shall be presented on a net basis after offset.
31. Leasing
On the commencement date of a contract an enterprise shall assess whether the contract
is a lease or includes a lease. Where a party to a contract transfers the right to control the use of
one or more identified assets for a certain period of time in return for consideration the contract
is a lease or includes a lease. To determine whether the right to control the use of identified
assets within a certain period of time under a contract has been transferred an enterprise shall
assess whether a client in the contract has the right to use almost all of the economic benefits
arising from the use of the identified assets during the period of use and has the right to
dominate the use of identified assets during this period of use.Where a contract concurrently contains multiple separate leases the lessee and lessor shall
split the contract and conduct accounting treatment respectively for all separate leases.Where the following conditions are concurrently met use of the rights of identified assets
shall constitute a separate lease in a contract:
* A lessee may earn profits from separate use of the assets or joint use with other
resources readily available.* There is no high dependence or high correlation between the assets and other assets in
the contract.Where a contract concurrently includes both leased and non-leased parts the Company as
the lessee and lessor shall split the leased and non-leased parts to conduct accounting treatment.
(1) The Company records operating lease business as a lessee.
The main types of leased assets of the company include houses and buildings
Page 57 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
transportation equipment and land use rights etc.
1) Initial measurement
At the beginning of the lease period the Company recognizes its right to use the leased
assets during the lease period as a right-of-use asset recognition of the present value of
outstanding lease payments as lease liabilities except short-term and low-value asset leases. In
calculating the present value of the lease payment the Company uses the interest rate included
in the lease as the discount rate. Where the interest rate included in the lease cannot be
determined the Company uses the incremental borrowing rate as the discount rate
The lease period is the irrevocable period during which the Company is entitled to use the
lease assets. Where the Company has the option to renew the lease that is the right to choose
to renew the lease of the asset and reasonably determines that the option will be exercised The
lease period also includes the period covered by the lease renewal option. The Company has
the option to terminate the lease that is the right to terminate the lease of the asset Provided
that it is reasonably determined that the option will not be exercised the lease period includes
the period covered by the option to terminate the lease. Where a material event or change within
the control of the Company occurs and affects whether the Company reasonably determines
that the appropriate option will be exercised... The Company will determine to exercise the
option of renewing the lease re-evaluation of the option to purchase or not to exercise the
option to terminate the leas on its reasonability.
2) Subsequent measurement
The Company adopts the straight-line method to depreciate the right to use assets. Where
it is reasonable to determine that the leased assets are to be owned upon expiry of the lease term
the Company shall calculate the leased assets within the remaining useful life of the leased
assets. If the ownership of the leased assets upon expiry of the lease term is unable to be
reasonably determined the Company shall accrue depreciation within a short period of time
between the lease term and the remaining useful life of the leased assets. The interest expenses
of the lease liabilities for each period of the lease term at the discount rate is recognized by the
Company and shall be included into the current profit or loss. Variable lease payments that are
not included in the leasehold liability measure are included in the current profit and loss at the
time of actual incurance.After commencement of the lease period when there is a change in the amount of
substantial fixed payments and the amount due to which the guarantee balance is expected
changes in indices or ratios used to determine rental payments where the assessment of
Page 58 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
purchase options the renewal option or termination option or actual exercise of the option
changes the Company re-measures the lease liabilities according to the present value of the
change in lease payments and adjust the book value of the right to use assets accordingly. If
the book value of the right to use assets has been reduced to zero but the lease liability still
needs to be further reduced the Company will record the remaining amount in the current profit
or loss.
3) Lease change
Lease modification refers to the modification of the lease scope lease consideration and
lease term beyond the terms of the original contract including increasing or terminating the
right to use one or more leased assets extending or shortening the lease term specified in the
contract etc.If the lease changes and the following conditions are met the Company will account for
the lease change as a separate lease:
* The lease change expands the scope of the lease by adding the right to use one or more
leased assets;
* The increased consideration is equivalent to the separate price for the extended portion
of the lease adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the
lease change the Company redetermines the lease term and discounts the changed lease
payment at the revised discount rate to remeasure the lease liability. In calculating the present
value of the lease payment after the change the Company uses the inherent interest rate of the
lease during the remaining lease term as the discount rate; If the inherent interest rate of the
lease for the remaining lease term cannot be determined the Company's incremental borrowing
rate on the effective date of the lease change shall be used as the discount rate.The Company accounts for the impact of the above adjustment of lease liabilities in the
following cases:
* If the lease change results in the reduction of the lease scope or the shortening of the
lease term the Company shall reduce the book value of the right of use assets to reflect the
partial or complete termination of the lease. The Company recognises gains or losses related to
partial or complete termination of the lease in profit or loss for the current period.* For other lease changes the company shall adjust the book value of the right to use
Page 59 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
assets accordingly
4) Short-term leases and leases of low value assets
The Company will consider a lease for a period not exceeding 12 months and excluding a
purchase option as a short-term lease on the commencement date of the lease term; A lease with
a lower value when a single leased asset is a new asset is identified as a low-value asset lease.Where the Company subleases or intends to sublease leased assets the original lease is not
deemed to be a low-value asset lease. The relevant asset cost or current profit or loss is
recognised on a straight-line basis during each period of the lease term and the contingent rent
is recognised in current profit or loss when actually incurred
(2) The company records operating lease business as a lessor
The lease commencement date essentially transfers almost all the risks and rewards
associated with the ownership of the leased asset to finance leases and all other leases are
operating leases
1) Operating lease
The rental income of operating lease shall be recognized as current profit and loss
according to the straight-line method during each period of the lease period. The larger initial
direct expenses are capitalized when occurring and the profits and losses of the current period
shall be recorded in stages on the same basis as the recognized rental income during the whole
lease period; the smaller initial direct expenses shall be recorded in the profits and losses of the
current period when occurring. Contingent rentals shall be included in current profits and losses
when actually occurring.
2) Finance lease
At the beginning date of the lease term the Company recognizes the financial lease
payment receivable for the financial lease and terminates the recognition of the financial lease
assets. When the Company makes the initial measurement of the financial lease receivable the
net lease investment is taken as the recorded value of the financial lease receivable. The net
lease investment is the sum of the unsecured balance and the present value of the lease proceeds
not yet received at the commencement date of the lease term discounted at the intrinsic interest
rate of the lease. The Company calculates and recognizes interest income for each period of the
lease term based on the inherent interest rate of the lease.The Company presents financial lease receivables as long-term receivables and financial
Page 60 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
lease receivables received within one year (including one year) from the balance sheet date are
presented as non-current assets maturing within one year.
32. Other important accounting policies and accounting estimates
(1) Hedge accounting
In order to avoid some risks the Company hedges some financial instruments as hedging
instruments. For the hedges meeting the specified conditions the Company adopts the hedge
accounting method for treatment. The hedging of the Company is fair value hedging.At the beginning of hedging the Company formally designates hedging instruments and
hedged items and prepares written documents on hedging relationship and risk management
strategy and risk management objectives of the Company engaged in hedging. In addition the
Company will continuously evaluate the effectiveness of hedging at the beginning and after the
hedging.
(2)Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions the
profits or losses arising therefrom shall be included into the current profits and losses. If the
hedging instrument hedges the non-trading equity instrument investment (or its components)
that is measured at fair value and whose changes are included in other comprehensive income
the gains and losses generated by the hedging instrument are included in other comprehensive
income. The profit or loss of the hedged item due to the hedged risk exposure shall be included
into the current profits and losses and the book value of the hedged item shall be adjusted at
the same time. If the hedged item is measured at fair value the gain or loss of the hedged item
due to the hedged risk does not need to adjust the book value of the hedged item and the
relevant gains and losses are included into the current profits and losses or other comprehensive
income.When the Company cancels the designation of the hedging relationship the hedging
instrument has expired or been sold the contract has been terminated or exercised or no longer
meets the conditions for the application of hedge accounting the application of hedge
accounting shall be terminated.
33. Changes in Significant Accounting Policies and Accounting Estimates
The Company did not have any significant changes in accounting policies and accounting
Page 61 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
estimates during the reporting period.IV. Taxes
1. Major types of taxes and tax rates
Taxes Tax basis Tax rate
Taxable value-added amount (tax payable is 1%、3%、5%、6%、
VAT calculated as the balance of taxable sales amount
multiplied by the applicable tax rate after deducting 9%、10%、13%
input VAT allowable for the current period)
Urban Maintenance It is calculated and levied according to the actual
7%、5%
Construction Tax VAT paid
Educational fee It is calculated and levied according to the actual
3%
surcharge VAT paid
Local Education It is calculated and levied according to the actual
2%
Add-on VAT paid
25%、20%、17%、Corporate income tax According to the taxable income
15%
70% of the original value of the property is the tax
basis and 30% is deducted according to the original
Property tax 12%、1.2%
value of the property; Rental income is used as the
tax basis
If there are taxpayers with different enterprise income tax rates the disclosure shall be
explained:
Name of the taxpayer Income tax rate
Hangzhou Lin'an Chunmanyuan Agricultural Development Co. Ltd 20%
Jingliang (Singapore) International Trade Co. Ltd 17%
Beijing Guchuan Bread Food Co. Ltd 15%
2. Tax incentives
Beijing Guchuan Bread & Food Co. Ltd. a third-level subsidiary of the Company is a
high-tech enterprise which enjoys the preferential tax policy of paying enterprise income tax
at a rate of 15% in accordance with the relevant provisions of the Law of the People's Republic
of China on the Administration of Tax Collection and Collection and the Detailed Rules for the
Implementation of the Law of the People's Republic of China on the Administration of Tax
Collection and the certificate number of the high-tech enterprise is GR202411003833 which
Page 62 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
is valid until October 29 2027. According to Announcement No. 43 of 2023 of the Ministry of
Finance and the State Administration of Taxation on the VAT Plus Deduction Policy for
Advanced Manufacturing Enterprises from January 1 2023 to December 31 2027 advanced
manufacturing enterprises are allowed to deduct the VAT payable by adding 5% of the
deductible input tax in the current period.The company's third-level subsidiary Jingliang (Singapore) International Trade Co. Ltd.is taxed according to the territorial principle. Based on Singapore's tax exemption policy the
company is eligible for the following tax exemptions:
1.The first SGD 10000 of taxable income is exempted by SGD 7500. For the portion of
taxable income between SGD 10001 and SGD 200000 a 95% exemption is granted. The
portion exceeding SGD 200000 is not eligible for exemption. The company will pay income
tax at a 17% rate based on the taxable income after applying the exemptions.
2.For the 2025 Year of Assessment (YA) all taxable companies (regardless of whether
they are tax residents) will receive a rebate equivalent to 50% of the corporate tax payable with
a total rebate amount of SGD 40000.Zhejiang Little Prince Food Co. Ltd. a third-level subsidiary of the Company Hangzhou
Lin'an Little Angel Food Co. Ltd. Linqing Little Prince Food Co. Ltd. and Liaoning Little
Prince Food Co. Ltd. a fourth-level subsidiary of the Company in accordance with the relevant
provisions of the Notice of the Ministry of Finance and the State Administration of Taxation
on Issues Concerning the Preferential Policies of Enterprise Income Tax Related to the
Employment of Disabled Persons (CS (2009) No. 70). An additional deduction of 100% of the
wages paid to the disabled employee can be made in the calculation of taxable income.Hangzhou Lin'an Little Angel Food Co. Ltd. a fourth-level subsidiary of the Company
is a welfare enterprise and has been enjoying the preferential policy of VAT refund in the
Notice on Promoting the Employment of Disabled Persons (CS [2016] No. 52) since May 2016.The company's fourth-level subsidiary Liaoning Little Prince Food Co. Ltd. is subject to
the regulations in Article 13 of the Ministry of Finance and the State Administration of
Taxation's "Notice on the Issuance of Supplementary Provisions on Several Specific Issues of
Land Use Tax" (89 Guo Shui Di Zi No. 140). According to this regulation "public lands such
Page 63 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
as municipal streets squares and greenbelts" are exempt from land use tax. When calculating
the land use tax the area used for green space and roads can be subtracted from the total land
area to determine the taxable area. The company's fourth-level subsidiary Hangzhou Lin'an
Little Angel Food Co. Ltd. benefits from a tax reduction according to the Zhejiang Provincial
Local Taxation Bureau's Announcement (2014 No. 8). For companies where the average
number of disabled employees in a tax year exceeds 25% (including 25%) of the total number
of on-duty employees and the actual number of disabled employees exceeds 10 (including 10)
the company may upon approval from the local tax department enjoy a reduction in urban land
use tax. The reduction is RMB 2000 per person per year based on the annual average number
of disabled employees with the maximum reduction limited to the total amount of urban land
use tax payable by the company for that year.The Company’s fourth-level subsidiary Hangzhou Lin’an Little Angel Food Co. Ltd. in
accordance with the provisions of the Announcement of the Zhejiang Provincial Local Taxation
Bureau (Announcement No. 8 of 2014) for entities in which within a tax year the monthly
average actual number of disabled persons employed accounts for more than 25% (inclusive)
of the total number of employees on staff and the actual number of disabled persons employed
exceeds 10 (inclusive) (including welfare enterprises blind massage institutions work therapy
institutions and other entities) upon approval by the local taxation authorities may enjoy a
preferential policy of urban land use tax reduction calculated at a fixed amount of RMB 2000
per person per year based on the annual average actual number of disabled persons employed
with the maximum reduction not exceeding the amount of urban land use tax payable by the
entity for the year.According to the Announcement on Relevant Tax and Fee Policies for Further Supporting
the Development of Small and Micro Enterprises and Individually Owned Businesses
(Announcement of the Ministry of Finance and the State Taxation Administration No. 12 of
2023) the Company’s second-level subsidiary Jingliang (Yangpu) Grain and Oil Industry Co.
Ltd. and fourth-level subsidiaries Linqing Little Prince Food Co. Ltd. and Hangzhou Lin’an
Chunmanyuan Agricultural Development Co. Ltd. meet the criteria for recognition as small
and micro enterprises. The applicable preferential policies for the year 2025 are as follows:
Page 64 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
* For the portion of annual taxable income not exceeding RMB 3 million 25% of the amount
shall be included in taxable income and enterprise income tax shall be paid at a tax rate of 20%;
* Resource tax (excluding water resource tax) urban maintenance and construction tax
property tax urban land use tax stamp duty (excluding securities transaction stamp duty)
cultivated land occupation tax education surcharge and local education surcharge shall be
levied at half of the statutory rate.The Company’s third-level subsidiary Beijing Tianweikang Oil and Fat Allocation and
Distribution Center Co. Ltd. in accordance with the Announcement on Continuing the
Implementation of Certain Tax Preferential Policies for National Commodity Reserves
(Announcement of the Ministry of Finance and the State Taxation Administration No. 48 of
2023) enjoys the following policies: stamp duty shall be exempted on accounting books of
commodity reserve management companies and their directly affiliated warehouses; stamp duty
shall be exempted on purchase and sale contracts executed in the course of undertaking
commodity reserve operations; stamp duty payable by other parties to such contracts shall be
levied in accordance with the relevant regulations; and property tax and urban land use tax shall
be exempted on the real estate and land used by commodity reserve management companies
and their directly affiliated warehouses for their own use in undertaking commodity reserve
operations.V. Notes to Items in the Consolidated Financial Statements
Unless otherwise specified the financial statements disclosed below refer to the financial
statements as at the end of the period as at 31 December 2025 the term "at the beginning of the
period" as at 31 December 2024 the term "current" as at 1 January to 31 December 2025 and
the "previous period" as at 1 January to 31 December 2024 with the currency unit RMB yuan.
1. Monetary funds
Projects Period-End Balance Beginning Balance
Cash on hand 10241.76 10717.74
Bank deposits 453246396.16 503613151.53
Funds in other currencies 65441208.59 72691131.78
Deposit of financial company deposits 1303024670.57 840710693.25
Page 65 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Projects Period-End Balance Beginning Balance
Total 1821722517.08 1417025694.30
Among them: the total amount of money deposited
abroad 17207901.63 23966791.89
2. Derivative financial assets
Project Period-End Balance Beginning Balance
Floating profit and loss of hedging instruments 70947839.67
Total 70947839.67
3. Accounts receivable
（1） Disclosure by ageing
Aging Period-End Balance Beginning Balance
Within 1 year 97759940.74 91439947.43
1 to 2 years 582432.97
2 to 3 years 752867.27
3 to 4 years 717497.72
4 to 5 years
More than 5 years 328259.50 328259.50
Total 99388130.93 92521074.20
（2） Classified disclosure according to the method of bad debt provision
End of period
Category Book Balance Provision for Bad Debts
Provision Book Value
Amount Proportion (%) Amount Ratio
(%)
Provision for bad
debts by item 449259.50 0.45 449259.50 100.00
Portfolio by credit
risk characteristics 98938871.43 99.55 722497.72 0.73 98216373.71
Total 99388130.93 —— 1171757.22 —— 98216373.71
（Continuing Table）
Beginning period
Category Book Balance Provision for Bad Debts
Provision Book Value
Amount Proportion (%) Amount Ratio
(%)
Provision for bad
debts by item 328259.50 0.35 328259.50 100.00
Portfolio by credit
risk characteristics 92192814.70 99.65 752919.57 0.82 91439895.13
Page 66 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beginning period
Category Book Balance Provision for Bad Debts
Provision Book Value
Amount Proportion (%) Amount Ratio
(%)
Total 92521074.20 —— 1081179.07 —— 91439895.13
* Provision for Bad Debts
Beginning period Period-End Balance
Debtor’s name Book Provision for Bad Book Provision for Provision Provision Balance Debts Balance Bad Debts Ratio (%)
Aging Reason
Fujian Jingxin More
Industrial 151844.00 151844.00 151844.00 151844.00 100.00 than 5 Tight liquidity
Group Co. Ltd. years unable to repay
Beijing Guotai
Ping'an Tianzhu More
Commercial 1809.60 1809.60 1809.60 1809.60 100.00 than 5 Expected to be
Development years unrecoverable
Co. Ltd.Beijing
Rongfalida More
Grain and Oil 163143.00 163143.00 163143.00 163143.00 100.00 than 5 Expected to be
Trading Co. years unrecoverable
Ltd.Beijing Guotai
Ping An More Expected to be
Department 10862.90 10862.90 10862.90 10862.90 100.00 than 5 unrecoverable
Store Co. Ltd. years
Beijing Shunyi
Longhua More
Shopping 600.00 600.00 600.00 600.00 100.00 than 5
Expected to be
years unrecoverable Center
Chengde Jinli within
Food Co. Ltd. 121000.00 121000.00 100.00 one
Expected to be
year unrecoverable
Total 328259.50 328259.50 449259.50 449259.50 —— —— ——
* Items for Group-Based Provisioning of Bad Debt Allowances:
Period-End Balance
Name
Accounts receivable Provision for bad debts Accrual ratio
（%）
Credit Risk Portfolio 98938871.43 722497.72 0.73
Total 98938871.43 722497.72 0.73
（Continuing Table）
Beginning period
Name
Accounts receivable Provision for Bad Debts Accrual ratio
（%）
Credit Risk Portfolio 92192814.70 752919.57 0.82
Page 67 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Total 92192814.70 752919.57 0.82
（3） Provision for Bad Debts situation
Changes during the period
Category Beginning Recovery Write-off Period-End period Provision or or Other Balance
reversal cancellation changes
Provision for
Bad Debts on
individually 328259.50 121000.00 449259.50
assessed items
Credit risk
portfolio 752919.57 -30421.85 722497.72
Total 1081179.07 90578.15 1171757.22
（4） Accounts receivable and contract assets of the top five end-of-term balances collected by
the debtor
Proportion
of the total
Accounts Contract Accounts Accounts Provision
Debtor's name receivable
assets receivable and for Bad
Period-End Period- contract assets
receivable
and contract DebtsPerio
Balance End Period-End d-End Balance Balance assets Period-End Balance
Balance (%)
Huadu Food Co. Ltd.Luanping County 22348359.23 22348359.23 22.49
Hebei Province
Beijing Grain Group
Co. Ltd. 12847737.37
12847737.3712.93
Guizhou Grain Reserve
Group Co. Ltd. 10340000.00 10340000.00 10.40
Beijing Yangu Grain
and Oil Purchasing and 6780217.25 6780217.25 6.82
Sales Co. Ltd.Zhejiang Lvqin Supply
Chain Management 5893330.64 5893330.64 5.93
Co. Ltd.Total 58209644.49 58209644.49 58.57
4. Prepayments
（1） Prepayments Classified by Aging
Period-End Balance Beginning period
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 574317912.78 99.98 198688387.53 99.98
1 to 2 years 60544.38 0.01 33623.94 0.02
2 to 3 years 32386.44 0.01
Page 68 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Period-End Balance Beginning period
Aging
Amount Proportion (%) Amount Proportion (%)
more than 3 years
Total 574410843.60 100 198722011.47 100
（2） Prepayment status of the top five prepaid balances at the end of the period
grouped by prepayment object
Percentage
Debtor’s name Book Balance of Total Bad Debt Prepaymen Provisionts（%）
China Grain Reserves Oils & Fats Co. Ltd. 522392380.32 90.94
Louis Dreyfus (Tianjin) International Trade Co. Ltd. 19844809.79 3.45
Jiangsu Jianghai Grain & Oil Group Co. Ltd. 15950587.40 2.78
COFCO Jiayue (Tianjin) Co. Ltd. 5005103.18 0.87
Zhuhai Binhe Industrial Co. Ltd. 3351570.00 0.58
Total 566544450.69 98.62
5. Other Receivables
Item Period-End Balance Beginning period
Other Receivables 173257419.17 455148011.66
Total 173257419.17 455148011.66
（1） Other Receivables
* By Aging
Aging Period-End Balance Beginning Balance
Within 1 year 220208199.83 433032730.72
1 to 2 years 759074.72 20961921.58
2 to 3 years 492800.00 435859.37
3 to 4 years 327859.37 86000.00
4 to 5 years 62000.00 12500.00
Over 5 years 401499.99 618999.99
Total 222251433.91 455148011.66
* Classification by Nature of Receivables
Nature of Receivable Period-End Balance Beginning Balance
Deposits and Guarantees 130596795.79 452531490.90
Page 69 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Nature of Receivable Period-End Balance Beginning Balance
Company Transactions 58906353.63 389804.08
Employee Receivables 729283.59 784435.04
Tax Refund Receivables 1196283.46 1370551.74
Insurance claim proceeds 30654986.50
Others 167730.94 71729.90
Total 222251433.91 455148011.66
* Bad Debt Provision by Method of Provisioning
Period-End Balance
Book Balance Provision for Bad Debts
Category Expected
Credit Book Value
Amount Proportion (%) Amount Loss
Rate
(%)
Individually
Provisions for 48980344.30 22.04 48980344.30 100.00
Bad Debt
Provisions for
bad debts
recognized on
receivables 173271089.61 77.96 13670.44 0.01 173257419.17
grouped by
credit risk
characteristics
Total 222251433.91 —— 48994014.74 —— 173257419.17
（Continuing Table）
Beginning period
Book Balance Provision for Bad Debts
Category Expected
Book Value
Amount Proportion (%) Amount Credit Loss
Rate(%)
Individually
Provisions for
Bad Debt
Provisions for bad
debts recognized
on receivables
grouped by credit 455148011.66 100.00 455148011.66
risk
characteristics
Total 455148011.66 —— —— 455148011.66
* Other receivables with individually assessed Provision for Bad Debts
Page 70 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beginning period Period-End Balance
Debtor’s
Book Provision Provision name
Balance for Bad Book Balance
Provision for Ratio Aging Provision
Debts Bad Debts (%) Reason
MARS Expected to
FARMER 48970344.30 48970344.30 100.00 Within be
LIMITED 1 year unrecoverable
Keyoushi
(Shanghai) Expected to
Management 10000.00 10000.00 100.00 4 to 5
Consulting years
be
unrecoverable
C o. Ltd.Total 48980344.30 48980344.30 —— —— ——
* Provision for Bad Debts recognized on a portfolio basis
Period-End Balance
Name other Provision for Provision
receivables Bad Debts rate (%))
Credit risk portfolio 42637733.45 13670.44 0.03
Deposit and security deposit portfolio 130530795.79
Petty cash advances to employees of the
Company 102560.37
Total 173271089.61 13670.44 0.01
（Continuing Table）
Beginning period
Name other Provision for Provision rate
receivables Bad Debts (%))
Credit risk portfolio 2503901.81
Deposit and security deposit portfolio 452475490.90
Petty cash advances to employees of the
Company 168618.95
Credit risk portfolio 455148011.66
* Provision for Bad Debts recognized under the general model of Expected Credit Losses
Stage 1 Stage 2 Stage 3
Lifetime Lifetime
Expected expected expected
Provision for Bad Debts credit losses credit credit Total
over the next losses (not losses
12 months credit- (credit-
impaired) impa ired)
Beginning period
Beginning period | During the period —— —— —— ——
-- Transfer to Stage 2
-- Transfer to Stage 3
Page 71 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Stage 1 Stage 2 Stage 3
Lifetime Lifetime
Expected expected expected
Provision for Bad Debts credit losses credit credit Total
over the next losses (not losses
12 months credit- (credit-
impaired) impa ired)
-- Transfer back to Stage 2
-- Transfer back to Stage 1
Provision recognized during the period 34993517.00 23670.44 35017187.44
Reversal during the period
Write-off during the period
Charge-off during the period
O ther changes 13976827.30 13976827.30
Period-End Balance 48970344.30 23670.44 48994014.74
* Provision for Bad Debts situation
Changes duri ng the period
Category Beginning Period-End period Provision Recovery Write-off
recognized or or Other changes
Balance
reversal cancellation
Individually
Provisions for Bad 35003517.00 13976827.30 48980344.30
Debt
Credit risk portfolio 13670.44 13670.44
Total 35017187.44 13976827.30 48994014.74
* Top five other receivables by debtor aggregated at Period-End Balance
Debtor’s name Nature of Book Balance Aging Proportion of total Provision for Bad receivable other receivables (%) Debts
Zhongtian
Futures Co. Ltd. Security deposit 61041175.30 Within 1 year 27.46
MARS
FARMER Intercompany receivable 48970344.30 Within 1 year 22.03 48970344.30 LIMITED
China Life
Property &
Casualty
Insurance Insurance claim proceeds 30654986.50 Within 1 year 13.79 Company
Limited Beijing
Branch
Galaxy Futures
Co. Ltd. Security deposit 27710580.50 Within 1 year 12.47
Grain Trading
Coordination
Center of the
National Food Security deposit 20020000.00 Within 1 year 9.01
and Strategic
Reserves
Administration
Total —— 188397086.60 —— 84.76 48970344.30
Page 72 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
6. Inventory
（1） Inventory Classification
Period-End Balance
Provision for
Item Inventory
Book Balance Impairment/Contract Book Value
Fulfillment Cost
Provision
Raw Materials 597025582.96 21350971.75 575674611.21
Self-made Semi-finished
Products & Work in Progress 372109.32 0.00 372109.32
Finished goods 664865256.03 1510139.93 663355116.10
Turnover Materials 2978388.97 57918.90 2920470.07
Materials entrusted for
processing 83426732.77 83426732.77
Goods in Transit 94930883.69 94930883.69
Goods dispatched 1249168.24 1249168.24
Total 1444848121.98 22919030.58 1421929091.40
（Continuing Table）
Beginning Balance
Provision for
Item Inventory
Book Balance Impairment/Contract Book Value
Fulfillment Cost
Provision
Raw Materials 413059280.53 413059280.53
Self-made Semi-finished
Products & Work in Progress 25015.91 25015.91
Finished Goods 1155820490.28 234235.76 1155586254.52
Turnover Materials 5044840.04 5044840.04
Goods in Transit 797976857.22 13886827.30 784090029.92
Total 2371926483.98 14121063.06 2357805420.92
（2） Inventory Falling Price Reserves and provision for impairment of contract performance
costs
Increased Amounts in the
Item Beginning period Current Period
Accrual Others
Raw Materials 21350971.75
Finished Goods 234235.76 3441560.26
Turnover Materials 57918.90
Goods in Transit 13886827.30 90000.00
Page 73 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Increased Amounts in the
Item Beginning period Current Period
Accrual Others
Total 14121063.06 24940450.91
（Continuing Table）
Decreased Amounts in the Current
Item Period Period-End Recover or
Charge Off Others
Balance
Raw material 21350971.75
Finished Goods 2165656.09 1510139.93
Turnover Materials 57918.90
Goods in Transit 13976827.30
Total 2165656.09 13976827.30 22919030.58
（3） Stock Goods listed by major product type
Closing Balance
Name
Book Balance Falling Price Reserves Book Value
Grease and oils 648365629.66 1510139.93 646855489.73
Food 16499626.37 16499626.37
Total 664865256.03 1510139.93 663355116.10
（Continuing Table）
Opening Balance
Name
Book Balance Falling Price Reserves Book Value
Grease and oils 1134402697.01 170341.46 1134232355.55
Food 21417793.27 63894.30 21353898.97
Total 1155820490.28 234235.76 1155586254.52
7. Non-current Assets Due Within One Year
Item Period-End Balance Beginning period
Term Deposits Due Within One Year 10694166.66
Total 10694166.66
8. Other Current Assets
Item Period-End Balance Beginning period
VAT to be deducted 80350441.94 75132953.17
Prepaid Taxes 9948529.68 6584449.99
VAT to be certified 245525.77 285763.13
Fair Value Changes of Hedged Items 8705942.21 79380779.05
Page 74 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Period-End Balance Beginning period
Total 99250439.60 161383945.34
9. Long-Term Equity Investments
（1） Long-term equity investments situation
* Long-Term Equity Investment Classification
Item Beginning Current Current Period-End Balance Increase Decrease Balance
Investment in Joint
Ventures 133970264.23 5488026.95
139458291.18
Investment in Associates 133535203.79 546035.33 6266560.98 127814678.14
Total 267505468.02 6034062.28 6266560.98 267272969.32
* Details of Joint Ventures and Associates
Current Changes
Invested Entity Investment Beginning Other
Cost Balance Additional Reduced Equity Method
Investment Investment Investment
Comprehensive
Income Income Adjustment
Total 119825100.64 267505468.02 -232498.70
1. Joint Ventures 26232442.61 133970264.23 5488026.95
Beijing Zhengda
Feedstuff Limited 26232442.61 133970264.23 5488026.95
Company
2. Associates 93592658.03 133535203.79 -5720525.65
Zhongchu Grain
(Tianjin) Storage
& Logistics Co. 84000000.00 127268642.81 546035.33
Ltd.Jingliang Mismi
Catering
Management 9592658.03 6266560.98 -6266560.98
(Beijing) Co. Ltd.
（Continuing Table）
Current Changes Impairment
Investment Entity Other Period-End Declaration of Cash Impairment Balance Provision Equity
Changes Dividends or Profits Provision
Other Balance
Total 267272969.32
1. Joint Venture 139458291.18
Beijing Zhengda
Feedstuff Limited 139458291.18
Company
2. Associate 127814678.14
Zhongchu Grain
(Xiong'an) Storage & 127814678.14
Logistics Co. Ltd.Jingliang Mismi
Catering
Management
(Beijing) Co. Ltd.
Page 75 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
10. Investment properties
（1） Investment properties measured using the cost model
Item Buildings and Land use Construction structures rights in progress Total
I.Gross carrying amount
1.Beginning period 62845234.00 576510.00 63421744.00
2. Increase during the period
3. Decrease during the period 2123357.90 2123357.90
—Other transfers out 2123357.90 2123357.90
4.Period-End Balance 60721876.10 576510.00 61298386.10
II.Accumulated depreciation
and accumulated amortization
1.Beginning period 34336525.00 220034.65 34556559.65
2. Increase during the period 1662520.91 11530.20 1674051.11
—Provision or
amortization 1662520.91 11530.20 1674051.11
3. Decrease during the period 1772572.90 1772572.90
—Other transfers out 1772572.90 1772572.90
4.Period-End Balance 34226473.01 231564.85 34458037.86
III. Impairment provision
1.Beginning period 10587796.70 10587796.70
2. Increase during the period
3.Decrease during the period
4.Period-End Balance 10587796.70 10587796.70
IV.Book Value
1. Period-end Book Value 15907606.39 344945.15 16252551.54
2. Beginning Book Value 17920912.30 356475.35 18277387.65
11. Fixed assets
Item Period-end Book Value Beginning Book Value
Fixed assets 841479812.89 891221864.74
Disposal of fixed assets
Total 841479812.89 891221864.74
Page 76 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
（1） Fixed Asset Situation
Item Buildings & Structures Machinery & Transportation Electronic Office Other Equipment Tools Equipment Equipment Equipment Total
I. Original Cost
1. Beginning Balance 1069117861.39 823734711.89 18848024.29 13588228.08 7806289.10 1385077.43 1934480192.18
2. Additions This Period 26476026.74 41499572.03 3561585.35 409628.41 27427.02 71974239.55
— Purchase 13722961.57 13129323.49 2744734.82 409628.41 27427.02 30034075.31
— Transfers from
Construction in Progress 10629707.27 28370248.54 816850.53 39816806.34
—Others 2123357.90 2123357.90
3. Reductions This Period 21160211.81 260264.11 730917.08 585025.35 1179630.69 23916049.04
— Disposals or Scrap 21160211.81 260264.11 730917.08 585025.35 1179630.69 23916049.04
4. Period-End Balance 1095593888.13 844074072.11 18587760.18 16418896.35 7630892.16 232873.76 1982538382.69
II. Accumulated
depreciation
1.Beginning period 478795195.04 528503752.48 11706669.69 9786529.31 4928269.96 419597.21 1034140013.69
2. Additions This Period 40209042.90 54591127.82 1678254.76 1342030.56 754352.27 70387.55 98645195.86
— Provision 38436470.00 54591127.82 1678254.76 1342030.56 754352.27 70387.55 96872622.96
—Others 1772572.90 1772572.90
3. Reductions This Period 17418032.00 251311.89 659436.82 557419.13 405107.96 19291307.80
— Disposals or Scrap 17418032.00 251311.89 659436.82 557419.13 405107.96 19291307.80
4. Period-End Balance 519004237.94 565676848.30 13133612.56 10469123.05 5125203.10 84876.80 1113493901.75
III. Impairment Provision
Page 77 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Buildings & Structures Machinery & Transportation Electronic Office Other Equipment Tools Equipment Equipment Equipment Total
1.Beginning period 9047959.13 70354.62 9118313.75
2. Current Period Increase 18213856.37 2780.80 155337.57 69089.76 5289.80 18446354.30
—Provision 18213856.37 2780.80 155337.57 69089.76 5289.80 18446354.30
3. Reductions This Period
4.Period-End Balance 9047959.13 18284210.99 2780.80 155337.57 69089.76 5289.80 27564668.05
IV.Book Value
1. Period-End Book Value 567541691.06 260113012.82 5451366.82 5794435.73 2436599.30 142707.16 841479812.89
2.Beginning Book Value 581274707.22 295160604.79 7141354.60 3801698.77 2878019.14 965480.22 891221864.74
（2） Recoverable Amount determined based on fair value less costs of disposal
Basis for
Method for determining fair value and costs of
Item Book Value Recoverable Amount Impairment Amount Key parameters determining key
disposal
parameters
Office equipment 124771.01 55681.25 69089.76
Electronic equipment 295986.86 140649.29 155337.57 Fair value is primarily determined using the Based on recent
market approach and costs of disposal are Second-hand market market transaction
Machinery and equipment 22833066.82 4619210.45 18213856.37
determined based on the necessary expenses prices of similar assets prices and on-site
Transportation equipment 3819.03 1038.23 2780.80 incurred during the asset disposal process inspection
Others 36280.44 30990.64 5289.80
Total 23293924.16 4847569.86 18446354.30 —— —— ——
Page 78 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
12. Construction in Progress
Item Period-End Balance Beginning period
Construction in Progress 88960509.10 50058378.98
Total 88960509.10 50058378.98
（1） Construction in Progress
* Construction in Progress Situation
Period-End Balance
Item
Book Balance Impairment provision Book Value
Baking production line 37502395.06 37502395.06
Jingliang Hainan Yangpu Oil Processing Project 12048331.15 12048331.15
Slope stabilization project of Plant No.3 8101830.83 8101830.83
Comprehensive Bonded Zone feed processing project 7858573.81 7858573.81
Leisure Plant No.3 Haidilao baked potato chips automation upgrade project 6438366.79 6438366.79
Rice cake production line upgrading and renovation project 4347643.14 4347643.14
Rice products workshop relocation and renovation project 2854971.76 2854971.76
Snow rice cracker workshop product category expansion investment project 1472459.91 1472459.91
Soybean extrusion and rumen-protected soybean meal processing project
Leisure Plant No.1 fried potato chips Line 6 flexible automation upgrade project
Leisure Plant No.2 baked potato chips refining system conversion to automated material sorting and tray loading system project
Leisure Plant No.2 Oriental Selection baked potato chips capacity expansion project
Page 79 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Period-End Balance
Item
Book Balance Impairment provision Book Value
Rice cake workshop infrastructure and prefabricated section project 1341054.32 1341054.32
Lean production transformation project for Workshop No.2 of Leisure Plant No.1 1311148.16 1311148.16
Other projects 5683734.17 - 5683734.17
Total 88960509.10 88960509.10
（Continuing Table）
Beginning period
Item
Book Balance Impairment provision Book Value
Baking production line
Jingliang Hainan Yangpu Oil Processing Project 6288251.73 6288251.73
Slope stabilization project of Plant No.3 6996706.06 6996706.06
Comprehensive Bonded Zone feed processing project 7858573.81 7858573.81
Leisure Plant No.3 Haidilao baked potato chips automation upgrade project
Rice cake production line upgrading and renovation project
Rice products workshop relocation and renovation project 2749716.18 2749716.18
Snow rice cracker workshop product category expansion investment project 1347952.96 1347952.96
Soybean extrusion and rumen-protected soybean meal processing project 14863819.29 14863819.29
Leisure Plant No.1 fried potato chips Line 6 flexible automation upgrade project 2866434.87 2866434.87
Leisure Plant No.2 baked potato chips refining system conversion to automated material sorting and tray loading system project 1750171.23 1750171.23
Leisure Plant No.2 Oriental Selection baked potato chips capacity expansion project 1166784.33 1166784.33
Page 80 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beginning period
Item
Book Balance Impairment provision Book Value
Rice cake workshop infrastructure and prefabricated section project
Lean production transformation project for Workshop No.2 of Leisure Plant No.1
Other projects 4169968.52 4169968.52
Total 50058378.98 50058378.98
* Major Changes in Construction in Progress This Period
Project Name
Budget Amount Beginning period Increase This Period Transfer to Fixed Assets
Decrease This
Period Period-End Balance
Baking production line 164200000.00 37502395.06 37502395.06
Jingliang Hainan Yangpu Oil Processing Project 49429300.00 14863819.29 11696560.63 26560379.92
Slope stabilization project of Plant No.3 661324100.00 6288251.73 5760079.42 12048331.15
Comprehensive Bonded Zone feed processing
project 7184400.00 7858573.81 7858573.81
Leisure Plant No.3 Haidilao baked potato chips
automation upgrade project 17107500.00 6996706.06 1105124.77 8101830.83
Leisure Plant No. 3 Haidilao baked potato chips
automation upgrade project 6691000.00 6438366.79 6438366.79
Total 905936300.00 36007350.89 62502526.67 26560379.92 71949497.64
（Continuing Table）
Page 81 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Budge of
Project Name Cumulative Project Capitalized Interest
Current Period Capitalization
Investment Progress Accumulated Amount Capitalized Interest Rate %
Funding Source
（）
（%）
Baking production line 22.84 22.84% Self-owned by the enterprise
Soybean extrusion and rumen- Self-owned by the enterprise
protected soybean meal processing 100.00 100.00%
project
Jingliang Hainan Yangpu oil
processing project 1.82 1.82% Raised funds and self-financing by the enterprise
Comprehensive Bonded Zone feed
processing project 109.38 99.00% Self-owned funds
Slope stabilization project of Plant
No. 3 47.36 50.00% Self-owned by the enterprise
Leisure Plant No. 3 Haidilao baked
potato chips automation upgrade 96.22 96.00% Self-owned by the enterprise
project
Total —— —— —— ——
Page 82 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
13. Right-of-Use Assets
（1） Situation of Right-of-Use Assets
Item Buildings & Transportation Land Use Structures Tools Rights Total
I. Original Cost
1. Beginning Balance 120774622.11 467890.70 5648400.00 126890912.81
2. Additions for the Period 167805814.50 167805814.50
— Leased 167805814.50 167805814.50
3. Reductions for the Period 118358131.25 118358131.25
— Contract Expiry 1314156.45 1314156.45
— Contract Expiry adjustment 117043974.80 117043974.80
4.Period-End Balance 170222305.36 467890.70 5648400.00 176338596.06
II. Accumulated Depreciation
1.Beginning period 48674411.99 116327.29 1129680.00 49920419.28
2. Additions for the Period 27973077.75 45896.82 112968.00 28131942.57
— Depreciation 27973077.75 45896.82 112968.00 28131942.57
3. Reductions for the Period 71540541.29 71540541.29
— Contract Expiry 70226384.84 70226384.84
— Contract Expiry adjustment 1314156.45 1314156.45
4.Period-End Balance 5106948.45 162224.11 1242648.00 6511820.56
III. Impairment Provision
1.Beginning period
2. Additions for the Period
3. Reductions for the Period
4.Period-End Balance
IV. Book value
1.Ending Book Value 165115356.91 305666.59 4405752.00 169826775.50
2.Beginning Book Value 72100210.12 351563.41 4518720.00 76970493.53
14. Intangible Assets
（1） Intangible Asset Situation
Item Software Land Use Rights Trademark Rights Total
I. Original Cost
1.Beginning period 5388151.29 415718033.78 154841200.00 575947385.07
2. Additions for the Period 39893.28 39893.28
— Purchase 39893.28 39893.28
3. Reductions for the Period 28735200.00 28735200.00
Page 83 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Software Land Use Rights Trademark Rights Total
—Disposal 28735200.00 28735200.00
4.Period-End Balance 5428044.57 415718033.78 126106000.00 547252078.35
II. Accumulated Amortization
1. Beginning Balance 4669207.87 88706671.21 86891075.17 180266954.25
2. Additions for the Period 241514.51 9039551.17 6875807.42 16156873.10
— Amortization 241514.51 9039551.17 6875807.42 16156873.10
3. Reductions for the Period 19755358.88 19755358.88
—Disposal 19755358.88 19755358.88
4.Period-End Balance 4910722.38 97746222.38 74011523.71 176668468.47
III. Impairment Provision
1.Beginning period
2. Additions for the Period
3. Reductions for the Period
4.Period-End Balance
IV.Book Value
1.Ending Book Value 517322.19 317971811.40 52094476.29 370583609.88
2.Beginning Book Value 718943.42 327011362.57 67950124.83 395680430.82
15. Goodwill
（1） Goodwill Original Value
Invested
Unit or Current Period Increase Current Period Decrease
Matter Beginning period Formed by Current Current Period-End Balance Forming Business Period Other Disposal Period Other
Goodwill Combination Adjustments Adjustments
Acquisition
of Zhejiang
Xiao
Wangzi 191394422.51 191394422.51
Food Co.Ltd.Total 191394422.51 191394422.51
（2） Relevant Information of the Asset Group or Asset Group Combination
Containing Goodwill
Name Composition and Basis of the Asset Business Division and Consistency with Group or Combination Basis Previous Years
Acquisition of The asset group contains assets The asset is mainly
Zhejiang Xiao related to goodwill and its cash used in food
Wangzi Food inflow is independent of other asset processing belonging Yes
Co. Ltd. groups. to the food processing division.
（3） Specific Determination Method for Recoverable Amount
Page 84 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
The recoverable amount is determined based on the present value of future cash
flows.Unit: Ten thousand yuan
Basis for
Forecast Key Key Determining
Item Book Recoverable Impairment Parameters Parameters Key Value Amount Amount Period (Years) for Forecast for Stable Parameters Period Period for Stable
Period
The pre-tax
discount rate
is determined
Average Stable based on the Acquisition revenue period risk-free rate of Zhejiang growth rate revenue of return Xiao Wangzi 71207.29 58314.80 12892.49 2026 - 2030
Food Co. 6.98% pre-
growth rate market risk
Ltd. tax discount
0% pre-tax premium risk
rate 13.72% discount coefficient rate 13.72% cost of equity
capital and
the income
tax rate.Total 71207.29 58314.80 12892.49 —— —— —— ——
Note: The goodwill impairment Amount arising from the acquisition of the equity of Zhejiang
Little Prince Food Co. Ltd. is RMB 128924931.69 of which the impairment loss attributable to
the parent company is RMB 65762029.16.
（4） Goodwill impairment provision
Name of the investee Increase during the Decrease during
or item giving rise to Beginning period the period Period-End
goodwill period Provision Others Disposal Others Balance
Acquisition of equity
of Zhejiang Little 65762029.16 65762029.16
Prince Food Co. Ltd.Total 65762029.16 65762029.16
16. Long-Term Deferred Expenses
Item Beginning Increase during Amortization Other decreases Period-End
period the period during the period during the period Balance
Factory
Renovation 12191567.81 674188.08 11517379.73
(Majuqiao)
Leased Asset
Maintenance 1940073.46 145302.10 1794771.36
& Renovation
Workshop
Renovation 733581.81 235478.52 498103.29
Maintenance
Building
Renovation & 2538015.10 3370247.99 814945.00 2228774.54 2864543.55
Modification
Total 17403238.18 3370247.99 1869913.70 15540925.63 3362646.84
Page 85 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
17. Deferred Tax Assets/Deferred Tax Liabilities
（1） Deferred tax assets before offsetting
Period-End Balance Beginning period
Item Deductible Deferred Tax Deductible Temporary Temporary Deferred Tax
Differences Assets Differences Assets
Provision for credit impairment 50152256.47 12538064.11 1081179.07 270294.77
Provision for asset impairment 2669362.22 667340.56 14200339.20 3550084.80
Valuation of financial instruments
and derivative financial 3572045.80 893011.45
instruments
Lease liabilities 166205889.35 41551472.34 74957822.23 18739455.57
Deductible tax losses 74064292.97 18516073.24 124470315.23 31117578.79
Deferred income 14835521.81 3708880.45 14203242.12 3550810.53
Employee compensation payable 5321134.00 1330283.50 5627134.00 1406783.50
Contract Rebates 1987981.50 496995.38 823272.82 205818.21
Expected Liabilities 5146800.00 1286700.00
Total 318808484.12 79702121.03 240510104.67 60127526.17
（2） Deferred Tax Liabilities before Offsetting
Period-End Balance Beginning period
Item Taxable Temporary Deferred Tax Taxable Temporary Deferred Tax
Differences Liabilities Differences Liabilities
Valuation of
financial
instruments and 6320422.21 1580105.55 73663915.05 18415978.76
derivative financial
instruments
Right-of-Use
Assets 165115356.93 41278839.23 72451773.67 18112943.43
Non-Same Control
Business
Combination Asset 116528641.92 29132160.48 125660049.32 31415012.33
Valuation
Increment
Total 287964421.06 71991105.26 271775738.04 67943934.52
（3） Net Deferred Tax Assets or Liabilities After Offsetting
Ending Balance Beginning Balance
Item Deferred Tax Net Deferred Tax Deferred Tax Net Deferred Tax
Assets Offsetting Assets (After Assets Offsetting Assets (After
Amount Offsetting) Amount Offsetting)
I. Deferred tax assets 42858944.78 36843176.25 36528922.19 23598603.98
II. Deferred tax liabilities 42858944.78 29132160.48 36528922.19 31415012.33
（4） Unrecognized Deferred Tax Assets
Page 86 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Period-End Balance Beginning period
Deductible Temporary Differences 58415648.60 19626834.31
Deductible Losses 327283562.80 193392087.31
Total 385699211.40 213018921.62
（5） Deductible tax losses for which deferred tax assets have not been recognized
will expire in the following years
Year Period-End Balance Beginning period Remarks
2025——
202629295158.7629423788.84
202760063347.6058679866.78
202883640475.8680435449.46
202972064767.8324852982.23
203082219812.75
Total 327283562.80 193392087.31 ——
18. Other Non-Current Assets
Period-End Balance
Item
Book Balance Impairment Provision Book Value
Prepaid Long-Term Asset Purchases 9281092.22 9281092.22
Total 9281092.22 9281092.22
（Continuing Table）
Beginning period
Item
Book Balance Impairment Provision Book Value
Prepaid Long-Term Asset Purchases 5682032.40 5682032.40
Total 5682032.40 5682032.40
19. Assets with restricted ownership or right of use
Ending-period
Item
Book Balance Book Value Type Restriction Situation
Cash 33411335.64 33411335.64 Guarantee Deposit Guarantee Deposit
Fixed Assets 21719189.02 4167145.29 Legal Freeze Legal Freeze
Investment Properties 19594735.46 4520056.97 Legal Freeze Legal Freeze
Total 74725260.12 42098537.90 —— ——
（Continuing Table）
Page 87 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beginning-period
Item
Book Balance Book Value Type Restriction Situation
Cash 21505947.53 21505947.53 Guarantee Deposit Guarantee Deposit
Fixed Assets 21719189.02 4580904.04 Legal Freeze Legal Freeze
Investment Properties 19594735.46 4858318.61 Legal Freeze Legal Freeze
Total 62819872.01 30945170.18 —— ——
20. Short-Term Borrowings
（1） Short-term borrowings by category
Item Period-End Balance Beginning period
Credit Loans 1136260975.85 1311609177.78
Total 1136260975.85 1311609177.78
Including: Interest payable 544943.05 1609177.78
21. Derivative Financial Liabilities
Item Period-End Beginning Balance period Cause of origin
Fair Value Changes in Hedging Instruments 3815280.00 30979464.00
Total 3815280.00 30979464.00 ——
22. Notes payable
Category Period-End Balance Beginning period
Bank acceptance bills 56649763.00
Total 56649763.00
23. Accounts Payable
（1） Breakdown of Accounts Payable
Item Period-End Balance Beginning period
Payable for Materials 47834239.89 116601554.59
Payable for Engineering 13248688.94 1765477.00
Payable for Equipment 28140.00 1964645.00
Consulting Service Fee 920480.25 496573.78
Leasing Fee 3694464.27
Storage Fee 2073066.67 2016713.57
Other 2169241.37 1339837.19
Total 66273857.12 127879265.40
Page 88 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
24. Advances from Customers
（1） Breakdown of Advances
Item Period-End Balance Beginning period
Prepaid Rent 1670875.73 1122982.13
Total 1670875.73 1122982.13
25. Contract Liabilities
（1） Breakdown of Contract Liabilities
Item Period-End Balance Beginning period
Loan 275724804.27 522256930.34
Service Fees 9900.99
Other 423.65
Total 275724804.27 522267254.98
26. Employee Compensation Payable
（1） Breakdown of Employee Compensation Payable
Item Beginning Period-End period Increase Decrease Balance
I. Short-Term Compensation 25205707.33 281996546.81 282008668.85 25193585.29
II. Post-Employment
Benefits 2497429.33 38643971.29 38235559.07 2905841.55
III. Termination Benefits 2856739.27 1602710.27 1254029.00
IV. Other 15785.37 15785.37
Total 27703136.66 323513042.74 321862723.56 29353455.84
（2） Breakdown of Short-Term Compensation
Item Beginning period Increase Decrease
Period-End
Balance
I.Salary Bonuses
Allowances 21026120.00 225312258.68 225535672.39 20802706.29
II.Employee Welfare
Fees 47400.00 7012945.77 7040020.27 20325.50
III.Social Insurance
Fees 1101651.76 21084426.11 21099962.08 1086115.79
Including：Medical
Insurance 1006336.66 19953694.98 19941208.62 1018823.02
Work Injury
Insurance 95315.10 1130731.13 1158753.46 67292.77
IV.Housing
Provident Fund 128868.75 17299992.75 17287983.00 140878.50
V.Union and
Employee Education 2677378.31 4584830.86 4587469.46 2674739.71
Page 89 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Beginning Increase Decrease Period-End period Balance
VI.Other Short-Term
Compensation 224288.51 6702092.64 6457561.65 468819.50
Total 25205707.33 281996546.81 282008668.85 25193585.29
（3） Presentation of defined contribution plans
Item Beginning period Increase Decrease Period-End Balance
I. Basic Pension
Insurance 2394170.46 33182185.82 32801614.70 2774741.58
II. Unemployment
Insurance 56466.82 1041111.53 1040497.68 57080.67
III. Corporate
Pension Payment 46792.05 4420673.94 4393446.69 74019.30
Total 2497429.33 38643971.29 38235559.07 2905841.55
27. Taxes Payable
Item Period-End Balance Beginning period
Value Added Tax 29296775.82 6437878.04
Corporate Income Tax 2223946.93 2742466.65
City Maintenance and Construction Tax 1452582.88 361760.50
Property Tax 1769241.11 7464168.71
Land Use Tax 1093470.51 996814.98
Personal Income Tax 609990.36 1515360.06
Education Fee Surcharge (including Local Education Fee) 1430441.63 296495.58
Other Taxes 328288.94 184430.00
Total 38204738.18 19999374.52
28. Other Payables
Item Period-End Balance Beginning period
Interest Payable 20000000.00 20000000.00
Other Payables 42493915.38 38529914.31
Total 62493915.38 58529914.31
（1） Interest Payable
Item Period-End Balance Beginning period
Interest on Intercompany Loans 20000000.00 20000000.00
Total 20000000.00 20000000.00
（2） Other Payables
Page 90 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
* Breakdown of Other Payables by Nature
Item Period-End Balance Beginning period
Related Party Transactions 558574.25 3669472.80
Deposits and Guarantees 26526699.27 26389861.74
Interunit Transactions 9082778.49 2527587.55
Personal Transactions 769967.93 651768.84
Employee Insurance 3902761.56 1892167.70
Storage Fees 1595833.71
Others 1653133.88 1803221.97
Total 42493915.38 38529914.31
29. Non-current Liabilities Due Within One Year
Item Period-End Balance Beginning period
Long-term Loans Due Within One Year 68000000.00 529000000.00
Bonds payable due within one year 299700000.00
Lease Liabilities Due Within One Year 5284537.08 11512646.62
Interest on Long-term Loans Due Within One Year 455213.61 272983.32
Interest on Bonds Due Within One Year 2880000.00 2880000.00
Total 376319750.69 543665629.94
30. Other Current Liabilities
Item Period-End Balance Beginning period
Sales Tax Payable to be Written Off 34674941.36 53414020.52
Fair Value Changes on Hedging Items 2125165.80 43966054.23
Total 36800107.16 97380074.75
31. Long-term Loans
Including：Amount
Item Ending Book Value Due Within One Ending Balance
Year
Credit Loans 644500000.00 68000000.00 576500000.00
Total 644500000.00 68000000.00 576500000.00
（Continuing Table）
Item Including：Amount Beginning Book Value Due Within One Year Beginning Balance
Credit Loans 529000000.00 529000000.00
Page 91 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Including：Amount Beginning Book Value Due Within One Year Beginning Balance
Total 529000000.00 529000000.00
32. Bonds Payable
（1） Bonds Payable
Item Period-End Balance Beginning period
Corporate Bonds 299250000.00
Total 299250000.00
（2） Details of Bonds Payable (Excluding Preferred Stocks Perpetual Bonds
and Other Financial Instruments Classified as Financial Liabilities)
Bond Coupon
Including:
Name Face Value Rate Issue Date
Bond
Term Issue Amount
Beginning Amount Due
% Book Value Within One （ ） Year
23
Jingliang
01 300000000.00 2.88 2023.8.21-8.22 3 years 300000000.00 299250000.00 Corporate
Bond
Total —— —— —— —— 300000000.00 299250000.00
（Continuing Table）
Amount
Bond Issued Interest
Including:
Name This Accrued
Amortization of Repayment Ending Book Amount Due Default
(Face Value) Premium/Discount This Period Value Within One Status Period Year
23
Jingliang
01 8640000.00 -450000.00 8640000.00 299700000.00 299700000.00 No
Corporate
Bond
Total 8640000.00 -450000.00 8640000.00 299700000.00 299700000.00 ——
33. Lease Liabilities
Item Period-End Balance Beginning period
Lease Payment Amount 201310577.51 66639136.63
Less: Unrecognized Financing Costs 60574401.86 4426429.08
Reclassified to Non-current Liabilities Due
Within One Year 5284537.08 11512646.62
Net Lease Liabilities 135451638.57 50700060.93
34. Long-term Employee Benefits Payable
Page 92 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
（1） Table of Long-term Employee Benefits Payable
Item Period-End Balance Beginning period
Other Long-term Benefits 5321134.00 5627134.00
Total 5321134.00 5627134.00
35. Provisions
Item Period-End Balance Beginning period Reason for Fromation
Pending Letigation 22650893.15 5146800.00
Total 22650893.15 5146800.00 ——
36. Deferred Income
Item Beginning Increase This Decrease Period-End
Reason
period Period This Period Balance for Formation
Government
Subsidy 56731497.62 2794848.15 53936649.47
Total 56731497.62 2794848.15 53936649.47 ——
37. Share Capital
Changes This Period (+ -)
Shareholder Beginning Issuance Capital Period-End
Name period of New Bonus Reserve Shares Conversion Other Subtotal
Balance
Shares to Shares
Total
Shares 726950251.00
726950251.00
38. Capital Reserves
Item Beginning period Increase Decrease Period-End This Period This Period Balance
Capital (Share Capital) Premium 1435204343.74 1435204343.74
Other Capital Reserves 248469614.28 248469614.28
Total 1683673958.02 1683673958.02
39. Other Comprehensive Income
Page 93 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Current Period Amount
Less: Amount Less: Amount
Pre-tax Transferred from Transferred from Less:
Item Beginning period amount for Other Other
the current Comprehensive Comprehensive
Income
period Income to Profit Income to
Tax
Expenses
or Loss Retained Earnings
1.Other
Comprehensive
Income Not
Reclassifiable to
Profit or Loss
2.Other
Comprehensive
Income Reclassifiable 1763043.44 -703468.52
to Profit or Loss
Foreign Currency
Translation 1763043.44 -703468.52
Differences
Total other
comprehensive 1763043.44 -703468.52
income
（Continuing Table）
Current Period Amount
Item Income Tax After-Tax Amount After-Tax Amount Period-End
Effect for the Attributable to the Attributable to Minority Balance
Period Parent Company Shareholders
I.Other
Comprehensive
Income that will not
be reclassified to
profit or loss.II.Other
Comprehensive
Income that will be -703468.52 -703468.52 1059574.92
reclassified to profit
or loss.Foreign Currency
Translation -703468.52 -703468.52 1059574.92
Differences
Total Other
Comprehensive -703468.52 -703468.52 1059574.92
Income
40. Surplus Reserves
Item Beginning period Increase Decrease Period-End Balance
Statutory Surplus Reserve 99783789.14 7282530.20 107066319.34
Discretionary Surplus Reserve 37634827.93 37634827.93
Total 137418617.07 7282530.20 144701147.27
41. Undistributed Profits
Item Current Amount Previous Amount
Adjusted Undistributed Profit at Beginning of the Period 593483706.16 627555511.45
Page 94 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Amount Previous Amount
Adjustment to the total of beginning retained earnings
(increase + decrease -) -989931.26
Adjusted Undistributed Profit at Ending of the Period 593483706.16 626565580.19
Plus: Net Profit Attributable to Parent Company for the
Period -266087957.92 26130520.86
Less: Statutory Surplus Reserve 7282530.20 7598927.07
Dividends Payable on Common Stock 13085105.51 51613467.82
Ending Undistributed Profit 307028112.53 593483706.16
42. Operating Revenue and Operating Costs
（1） Operating Revenue and Operating Costs
Current Period Amount Previous Period Amount
Item
Revenue Cost Revenue Cost
Main Business 7835200308.77 7456882245.69 11335771143.52 10902532360.75
Other Business 23335538.34 51763870.32 99072372.75 12115723.96
Total 7858535847.11 7508646116.01 11434843516.27 10914648084.71
（2） Breakdown of Operating Revenue and Costs
By Contract Classification Revenue Cost
The type of product
Principal business:
Oil 7127297998.76 6877489780.98
Food 689488843.03 559113703.99
Other 18413466.98 20278760.72
Subtotal 7835200308.77 7456882245.69
Other business:
Other 23335538.34 51763870.32
Subtotal 23335538.34 51763870.32
Total 7858535847.11 7508646116.01
By Operating Region
North 4999999360.00 4824286322.57
East 1255330748.77 1147885611.25
Northeast 351084839.40 327640412.96
South 83173200.05 78247757.03
Northeast 670334256.43 651218302.69
Other 498613442.46 479367709.52
Page 95 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
By Contract Classification Revenue Cost
Total 7858535847.11 7508646116.01
Classified by the timing of transfer
of goods
At a specific point in time 7858535847.11 7508646116.01
Total 7858535847.11 7508646116.01
The classification by sales channel
Direct sales 3587404822.95 3464016401.21
Distributors 4247795485.82 3992865844.48
Other 23335538.34 51763870.32
Total 7858535847.11 7508646116.01
（3） Explanation of Performance Obligations
Performance Type of Quality Key Nature of Primary Amount Guarantee
Item Obligation Goods Obligation Expected to Fulfillment Payment Terms Committed to Responsible be Returned
Provided &
Time Transfer Party to Customers Related Obligations
Primarily
Oil and
oilseed advance Mainly
processing Upon delivery engaged in the Statutory payment
and sales and and acceptance sales of oil and Yes None warranty
food by the customer before oilseeds and
processing delivery snack foods.and sales
Note: In terms of settlement methods the company and its distributors primarily use the advance
payment before delivery method. For some long-term cooperative and creditworthy distributors the
company provides a certain credit limit. Some direct sales customers and supermarkets settle according
to the contractual agreed payment period.
（4） Explanation of Remaining Performance Obligations
Item Amount
Revenue corresponding to signed contracts that have not yet been
275724804.27
fulfilled or completed by the end of this reporting period
—Expected revenue to be recognized in 2026 275724804.27
43. Taxes and Surcharges
Item Current Period Amount Previous Period Amount
Urban Maintenance and Construction Tax 5431226.73 3636611.72
Property Tax 10122782.93 13097397.94
Land Use Tax 2629901.69 2446590.59
Education Fee Surcharge 4403488.27 2741190.20
Land value-added tax 59634.45
Vehicle and Vessel Usage Tax 31443.98 38109.50
Environmental Protection Tax 35597.08 66365.17
Page 96 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Stamp Duty 6672076.51 8918488.40
Other Taxes and Fees 63610.08 285.11
Total 29449761.72 30945038.63
44. Sales Expenses
Item Current Period Amount Previous Period
Amount
Employee Compensation 70094169.86 70273163.60
Warehousing and Storage Fees 25652062.90 19229919.38
Depreciation Expense 17005215.02 16866196.27
Promotion Expenses 12595531.64 14968467.76
Material Consumption and Losses 6196316.82 4558864.92
Travel Expenses 4340396.72 4214616.80
Lease Expenses 6586020.25 2174672.28
Office Expenses 1888081.82 1484310.25
Repair Expenses 2968067.05 1444300.03
Utilities 1255732.66 1229238.36
Vehicle Expenses 713481.47 871730.11
Business Reception Expenses 276426.09 509618.37
Insurance Expenses 361014.25 364354.71
Packaging Expenses 264662.60 341091.01
Inspection and Testing Expenses 302649.10 206603.46
Loading and Unloading Expenses 22641.51 118856.33
Labor Protection Expenses 78244.19 93474.09
Other 3766356.59 1568941.69
Total 154367070.54 140518419.42
45. Administrative Expenses
Item Current Period Amount Previous Period Amount
Employee Compensation 123881221.24 127972209.14
Depreciation Expense 17792807.40 16226625.52
Amortization of Intangible Assets 15978654.28 14323916.32
Office Expenses 7671537.92 7395582.62
Lease Expenses 11031650.84 5977264.11
Fees for Engaging Intermediaries 12913862.54 6438726.56
Repair Expenses 7087141.97 4034279.79
Security and Protection Expenses 911640.94 1401532.72
Travel Expenses 1063100.40 1258181.33
Information and Network Expenses 1418172.49 1147485.11
Page 97 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Insurance Expenses 1354469.98 1135356.00
Business Reception Expenses 802303.83 1101072.91
Environmental Protection Expenses 951659.49 913233.20
Amortization of Prepaid Expenses 282244.21 887684.08
Director’s Expenses
299999.88299999.88
Vehicle Expenses 593125.36 690796.45
Material Consumption 307844.95 560692.04
Labor Protection Expenses 80787.58 103200.04
Conference Expenses 32387.30 64892.64
Court Expenses 1853272.91 505290.56
Other 7168309.66 6792998.62
Total 213476195.17 199231019.64
46. Research and Development Expenses
Item Current Period Amount Previous Period Amount
Salary 10497135.48 13594553.19
Material Costs 2630634.68 5544119.46
Material Consumption 1116905.78 1268715.98
Depreciation and Amortization 774165.13 1289462.62
Fuel and Power Costs 1025717.44 779758.88
Travel Expenses 59857.17 72184.10
Equipment Costs 2166.94 14946.90
Other 3167860.50 2418727.49
Total 19274443.12 24982468.62
47. Financial Expenses
Item Current Period Previous Period Amount Amount
Total interest expense 65081667.94 60492426.83
Net interest expense 65081667.94 60492426.83
Less: Interest income 14028391.88 17628504.01
Discount interest on bank acceptance bills 8216509.93
Net exchange loss (net gain presented with “–”) -2433950.20 776053.73
Handling fee expense 1578506.78 1740795.52
Other expenses 14.00
Total 58414356.57 45380772.07
48. Other Income
Page 98 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Individual income tax handling fee refund 160126.53 222588.13
Additional input VAT credit deduction 343099.33
Government subsidy 14077503.48 18808559.96
Other 47369.98 273.00
Total 14628099.32 19031421.09
49. Investment Income
Investment Income Current Period Previous Period
Amount Amount
Investment income from long-term equity investments
accounted for using the equity method -232498.70 12546903.92
Other 1216408.91
Total 983910.21 12546903.92
50. Fair Value Change Gains
Source of Fair Value Change Gains Current Period Previous Period
Amount Amount
Trading Financial Assets -59953281.42 -116999895.87
Of which: Fair Value Change of Hedging Instruments
and Hedged Items -59953281.42 -116999895.87
Total -59953281.42 -116999895.87
51. Credit Impairment Losses
Item Current Period Amount Previous Period Amount
Bad Debt Losses on Accounts Receivable -90578.15 6734035.01
Bad Debt Losses on Other Receivables -35017187.44 1779.74
Total -35107765.59 6735814.75
52. Asset Impairment Losses
Item Current Period Amount Previous Period Amount
Inventory Write-down Loss -24887754.24 -13819833.62
Impairment loss on fixed assets -18446354.30
Impairment loss on goodwill -65762029.16
Total -109096137.70 -13819833.62
53. Gains on Asset Disposal
Page 99 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Previous Period
Amount Included
Amount Amount in Non-Recurring Gains and Losses
Gain or loss on disposal of fixed assets -4383111.33 63830.72 -4383111.33
Gain or loss on disposal of intangible assets 16255536.24 16255536.24
Gain or loss from termination
or modification of long-term lease contracts 2835797.15 2835797.15
Total 14708222.06 63830.72 14708222.06
54. Non-Operating Income
Item Current Period Previous Period
Amount Included in
Amount Amount Non-Operating Gains and Losses
Non-Current Asset Destruction
or Scrap Gain 11002.10 131658.82 11002.10
Inventory surplus gain 11631.09 11631.09
Fines Penalties Late Fees
and Compensation Income 3407093.59 53728.00 3407093.59
Demolition compensation income 10955322.00 10955322.00
Payables no longer required to be paid 68795.16 9952534.05 68795.16
Scrap Disposal Income 1004.42 60218.08 1004.42
Other 134774.57 1050933.48 134774.57
Total 14589622.93 11249072.43 14589622.93
55. Non-Operating Expenses
Amount Included in
Item Current Period Amount Previous Period Amount Non-Operating Gains and Losses
Non-Current Asset
Destruction or Scrap Loss 663189.06 163623.76 663189.06
Late Fees 48303.53 9166.34 48303.53
Inventory Loss 998229.83 7970.33 998229.83
Penalties Compensation 3539319.07 336961.15 3539319.07
Litigation Compensation
Expenses 15344724.00 5000000.00 15344724.00
Other 12237.11 77682.10 12237.11
Total 20606002.60 5595403.68 20606002.60
56. Income Tax Expense
（1） Income Tax Expense Table
Item Current Period Amount Previous Period Amount
Current Income Tax Expense 9763263.53 18504508.70
Deferred Income Tax Adjustment -15527424.12 -30466799.96
Page 100 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Total -5764160.59 -11962291.26
（2） Reconciliation of Accounting Profit and Income Tax Expense
Item Current Period Amount
Total Profit -304945428.81
Income Tax Expense Calculated at Statutory/Applicable Tax Rate -76236357.19
Effect of Different Tax Rates for Subsidiaries 3538095.55
Effect of Adjustments to Prior Period Income Tax 193542.12
Effect of Non-Taxable Income -102954.81
Effect of Non-Deductible Costs Expenses and Losses 18885600.41
Impact of utilizing deductible tax losses for which deferred tax assets were not
recognized in prior periods 9573993.54
Impact of deductible tax losses for which deferred tax assets were not recognized
in the current period 21351804.61
Impact of deductible temporary differences for which deferred tax assets were not
recognized in the current period 7958168.56
Impact of additional tax deduction for R&D expenses and wages of disabled
employees -3774949.90
Impact of non-taxable investment income -1508515.57
Impact of reversal of deferred tax assets recognized at the beginning of the period 14079798.04
Accelerated depreciation of fixed assets 631948.28
Other -354334.23
Income tax expense -5764160.59
57. Other Comprehensive Income
Please refer to Note V.39 Other Comprehensive Income for detailed information.
58. Cash Flow Statement Items
（1） Cash Related to Operating Activities
* Cash Received from Other Operating Activities
Item Current Period Amount Previous Period Amount
Related Party Transactions 19462887.52 10190180.58
Deposits and Guarantees 1430954532.04 4775548384.38
Other Unit Transactions 49419787.13 68187505.79
Interest Income 9480246.63 13207645.63
Page 101 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Non-Operating Income & Other Gains 2707605.71 8810598.64
Collections for Others 5699493171.70 2549941162.71
Other 42257436.16 29599109.83
Total 7253775666.89 7455484587.56
* Cash Paid for Other Operating Activities
Item Current Period Amount Previous Period Amount
Expense Payments 89867289.60 74785966.59
Other Unit Transactions 49532355.14 46871640.12
Related Party Transactions 36280872.29 15379839.85
Petty Cash 60500.00 90000.00
Deposits and Guarantees 1184541744.32 4692659820.38
Collections for Others 5699493171.70 2549941162.71
Other 54416664.53 83696364.64
Total 7114192597.58 7463424794.29
（2） Cash Related to Investing Activities
* Other cash paid relating to investing activities
Item Current Period Amount Previous Period Amount
Hebei Oilseed Investment Withdrawal 1747611.95
Total 1747611.95
（3） Cash Related to Financing Activities
* Cash Received from Other Financing Activities
Item Current Period Amount Previous Period Amount
Capital contribution from Capital
Agribusiness Group for research subsidies 840000.00
Total 840000.00
* Cash Paid for Other Financing Activities
Item Current Period Amount Previous Period Amount
Lease Payments 48020107.53 15224400.00
Total 48020107.53 15224400.00
Page 102 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
* Changes in Liabilities Arising from Financing Activities
Period-Increase Period-Decrease
Item Beginning period Period-End Balance
Cash Changes Non-Cash Changes Cash Changes Non-Cash Changes
Short-term
borrowings 1311609177.78 3533352814.46 26771774.82 3735472791.21 1136260975.85
Long-term
borrowings 529272983.32 650000000.00 14405524.16 548723293.87 644955213.61
Bonds
payable 302130000.00 9090000.00 8640000.00 302580000.00
Lease
liabilities 62212707.55 236643940.20 45237595.87 112882876.23 140736175.65
Interest
payable 20000000.00 20000000.00
Dividends
payable 13085090.17 13085090.17
Total 2225224868.65 4183352814.46 299996329.35 4351158771.12 112882876.23 2244532365.11
Page 103 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
59. Supplementary Information for the Cash Flow Statement
（1） Supplemental Information to the Cash Flow Statement
Supplemental Information Current Period Previous Period Amount Amount
1. Adjusting Net Profit to Operating Activities' Cash
Flow —— —— ：
Net profit -299181268.22 4311914.18
Add: Asset impairment loss 109096137.70 13819833.62
Credit impairment loss 35107765.59 -6735814.75
Depreciation of fixed assets oil and gas assets
and biological assets 98546674.07 98532989.69
Depreciation of right-of-use assets 28131942.57 24678301.11
Amortization of intangible assets 13550658.86 14407936.72
Amortization of long-term prepaid expenses 1869913.70 1446354.13
Loss (or gain) on disposal of fixed assets
intangible assets and other long-term assets (income is -14708222.06 -63830.72
listed with a "-" sign)
Loss on retirement of fixed assets (income is listed
with a "-" sign) 652186.96 31964.94
Fair value change loss (Gain is marked with "-
"columns) 59953281.42 116999895.87
Finance expenses (income is indicated with a "-") 85392590.29 77015661.77
Investment losses (gains are listed with a "-" sign) -983910.21 -12546903.92
Deferred tax assets decreased (increased with a "-
" sign) -13244572.27 -14799688.76
Deferred tax liabilities increased (decreased by "-"
sign) -2282851.85 -15667111.20
Decrease in inventories (increase by "-") 924976600.21 -329668276.06
Decrease in operating receivables (increase with
"-" sign) -255490832.27 -76364386.07
Increase in operating payables (decrease by "-"
sign) -124609392.99 -4869562.50
Other
Net cash flow from operating activities 646776701.50 -109470721.95
2. Significant investment and financing activities that do
not involve cash receipts and expenditures: —— ——
3. Net change in cash and cash equivalents: —— ——
Cash at Period-End Balance 1788311181.44 1395519746.77
Less: Cash at Beginning period 1395519746.77 1540639079.95
Add: Cash equivalents at Period-End Balance
Less: Cash equivalents at Beginning period
Net increase in cash and cash equivalents 392791434.67 -145119333.18
（2） Composition of Cash and Cash Equivalents
Page 104 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Ending balance Beginning balance
I. Cash 1788311181.44 1395519746.77
Including: Cash on hand 10241.76 10717.74
Bank deposits available for immediate use 1725447216.11 1325403161.84
Other funds available for immediate use 62853723.57 70105867.19
II. Cash equivalents
III. Closing cash and cash equivalents balances 1788311181.44 1395519746.77
60. Monetary items in foreign currencies
（1） Monetary items in foreign currency
Item Closing Foreign Translation Exchange Translation at the end of the Currency Balance Rate period
Monetary funds —— —— 25155525.27
Including: USD 3578921.76 7.0288 25155525.27
61. Lease
（1） Tenant information
Item Amount
Interest expense on lease liabilities 4479427.69
Simplified short-term lease charges including cost of related assets or current
profit or loss 8948472.32
Total lease-related cash outflows 33013756.28
（2） Operating lease as lessor
* Operating leases as the lessor
Including: income related to
Item Rental income variable lease payments that are
not included in lease receipts
Rental income 4579040.24
Total 4579040.24
VI. R&D expenditure
1. Listed by nature of fees
Item Current Period Amount Previous Period Amount
Salary 10497135.48 13594553.19
Material cost 2630634.68 5544119.46
Page 105 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Current Period Amount Previous Period Amount
Material consumption 1116905.78 1268715.98
Depreciation and amortization expense 774165.13 1289462.62
Fuel power cost 1025717.44 779758.88
Travel costs 59857.17 72184.10
Equipment cost 2166.94 14946.90
Others 3167860.50 2418727.49
Total 19274443.12 24982468.62
Among them: expensed R&D expenditure 19274443.12 24982468.62
Capitalize R&D expenditures
VII. Change in the scope of consolidation
There was no change in the scope of consolidation during the reporting period.Page 106 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
VIII. Interests in Other Entities
1. Equity Interests in Subsidiaries
（1）Composition of the Corporate Group
Primary Shareholding ratio（%）
Registered
Subsidiary Name Business Capital (in Registered Ten Thousand Location Business Nature Direct Indirect Acquisition Method
Yuan) Shareholding Shareholding Location
Jingliang (Tianjin) Grain and Oil Industry Processing of Business combination under
Co. Ltd. Tianjin 56000.00 Tianjin agricultural by- 70.00 common control products
Beijing Jingliang Oil Co. Ltd. Beijing 5000.00 Beijing Grain and oilseed Business combination under trading 100.00 common control
Beijing Guchuan Oil Co. Ltd. Beijing 12558.46 Beijing Grain and oilseed 100.00 Business combination under trading common control
Beijing Beijing Processing of Business combination under
Beijing Aisen Lvbao Oil Co. Ltd. 5050.00 agricultural and 100.00 common control
sideline food products
Beijing Tianweikang Oil Marketing Beijing 500.00 Beijing Warehousing 100.00 Business combination under Center Co. Ltd. common control
Beijing Guchuan Bread Food Co. Ltd. Beijing 5550.00 Beijing Food processing 100.00 Business combination under common control
Zhejiang Little Prince Food Co. Ltd. Hangzhou 5156.00 Hangzhou Food processing 17.6794 77.2072 Business combination not under common control
Hangzhou Lin'an Little Angel Food Co. Hangzhou 4900.00 Hangzhou Food processing Ltd. 17.6794 77.2072
Business combination not
under common control
Liaoning Little Prince Food Co. Ltd. Liaoning 3000.00 Liaoning Food processing 17.6794 77.2072 Business combination not under common control
Page 107 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Primary Shareholding ratio（%）
Registered
Subsidiary Name Business Capital (in Registered Ten Thousand Location Business Nature Direct Indirect Acquisition Method
Yuan) Shareholding Shareholding Location
Linqing Little Prince Food Co. Ltd. Linqing 2132.50 Linqing Food processing 17.6794 77.2072 Business combination not under common control
Hangzhou Lin'an Chunmanyuan
Agricultural Development Co. Ltd. Hangzhou 600.00 Hangzhou
Food processing 17.6794 77.2072 Business combination not under common control
Jingliang (Singapore) International Trade
Co. Ltd. Singapore 643.35 Singapore Grain trading 100.00
Investment establishment
Beijing Jingliang Gubi Oils & Fats Co. Beijing 5000.00 Beijing Grain and oilseed Investment establishment Ltd. trading 100.00
Beijing Jing Grain Products Co. Ltd Beijing 105658.96 Beijing Investment 100.00 Business combination under management common control
Jingliang (Caofeidian) Agricultural Investment establishment
Development Co. Ltd Tangshan 5000.00 Tangshan Crop cultivation 51.00
Jingliang (Yueyang) Grain and Oil Processing of Investment establishment
Industry Co. Ltd Hunan 68000.00 Hunan agricultural by- 65.00 products
Jingliang (Beijing) Food Marketing
Management Co. Ltd Beijing 9010.00 Beijing Commercial services 100.00
Investment establishment
Jingliang (Yangpu) Grain and Oil Processing of
Industry Co. Ltd Hainan 50000.00 Hainan agricultural by- 65.00 Investment establishment products
（2）Important Non-Wholly-Owned Subsidiaries
Subsidiary Name Minority Shareholding (%) Loss Attributable to Minority Dividends Declared to Minority Shareholders’ Equity Shareholders in Current Period Minority Shareholders at Period End
Jingliang (Tianjin) Grain and Oil
Industry Co. Ltd 30.00 -25180235.72
159429184.49
Page 108 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Subsidiary Name Minority Shareholding (%) Loss Attributable to Minority Dividends Declared to Minority Shareholders’ Equity Shareholders in Current Period Minority Shareholders at Period End
Zhejiang Little Prince Food Co. Ltd 5.11 4288519.31 7687328.50 186056384.42
（3）Main Financial Information of Important Non-Wholly-Owned Subsidiaries
Period-End Balance
Subsidiary Name
Current Assets Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total Liabilities
Jingliang (Tianjin)
Grain and Oil Industry 1625607063.73 661343555.22 2286950618.95 1140764804.72 622795199.25 1763560003.97
Co. Ltd
Zhejiang Little Prince
Food Co. Ltd 506824937.95 299866798.65 806691736.60 65321476.86 12472190.18 77793667.04
（Continuing Table）
Beginning period
Subsidiary Name
Current Assets Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total Liabilities
Jingliang (Tianjin)
Grain and Oil Industry 1860100669.62 685396396.29 2545497065.91 1882087225.29 48045106.57 1930132331.86
Co. Ltd
Zhejiang Little Prince
Food Co. Ltd 530330845.53 310413253.53 840744099.06 83362355.35 18836092.53 102198447.88
（Continuing Table）
Page 109 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Current Period Amount
Subsidiary Name
Operating Income Net Profit Total Comprehensive Income Cash Flow from Operating Activities
Jingliang (Tianjin) Grain and Oil
Industry Co. Ltd 3995068448.04 -91974119.07 -91974119.07 381763004.68
Zhejiang Little Prince Food Co. Ltd 589563586.49 25663792.40 25663792.40 85124374.13
（Continuing Table）
Previous Period Amount
Subsidiary Name
Operating Income Net Profit Total Comprehensive Income Cash Flow from Operating Activities
Jingliang (Tianjin) Grain and Oil
Industry Co. Ltd 4610312602.62 -81414144.97 -81414144.97 -227746332.44
Zhejiang Little Prince Food Co. Ltd 726127696.17 70622748.04 70622748.04 30154130.18
Page 110 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
2. Equity Interests in Joint Ventures or Associates
（1）Important Joint Ventures or Associates
Shareholding ratio（%） Accounting
Treatment
Joint Primary Method for
Venture or Registered Business
Associate Business Investment Location Nature Direct Indirect
Name Location Shareholding Shareholding in Joint
Venture or
Associate
Beijing
Zhengda
Equity
Feedstuff Beijing Beijing Manufacturing 50.00
method
Limited
Company
Zhongchu
Grain
(Tianjin)
Warehousing Equity
Warehouse Tianjing Tianjing 30.00
and & Transport
method
Logistics
Co. Ltd.
（2）Main Financial Information of Important Joint Ventures
Period-End Balance / Beginning period /
Current Period Amount Previous Period Amount
Item Beijing Zhengda Beijing Zhengda
Feedstuff Limited Feedstuff Limited
Company Company
Current Assets 345873214.96 327856522.69
Including: Cash and cash equivalents 6457544.94 13344582.35
Non-Current Assets 21173751.15 21750027.11
Total Assets 367046966.11 349606549.80
Current Liabilities 62689232.60 56698809.23
Non-Current Liabilities 25441151.16 24967212.11
Total Liabilities 88130383.76 81666021.34
Equity Attributable to Parent Shareholders 278916582.35 267940528.46
Share of Net Assets Attributable to Parent 139458291.18 133970264.23
Book Value of Investment in Joint Venture 139458291.18 133970264.23
Page 111 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Period-End Balance / Beginning period /
Current Period Amount Previous Period Amount
Item Beijing Zhengda Beijing Zhengda
Feedstuff Limited Feedstuff Limited
Company Company
Operating Revenue 267844675.40 298495469.15
Financial Expenses -10223651.78 -9914634.19
Income Tax Expenses 3734980.70 3775596.96
Net Profit 10976053.89 11054824.97
Total comprehensive income 10976053.89 11054824.97
（3）Main Financial Information of Important Associates
Period-End Balance / Current Beginning period / Previous
Item Period Amount Period Amount
Zhongchu Grain (Tianjin) Zhongchu Grain (Tianjin)
Warehouse and Logistics Co. Ltd. Warehouse and Logistics Co. Ltd.Current Assets 172497466.92 107422998.85
Non-Current Assets 1026922117.36 929833741.73
Total Assets 1199419584.28 1037256740.58
Current Liabilities 158225065.61 42972048.52
Non-Current Liabilities 615145591.52 570055882.68
Total Liabilities 773370657.13 613027931.20
Equity Attributable to
Parent Shareholders 426048927.15 424228809.38
Share of Net Assets
Attributable to Parent 127814678.14 127268642.81
Book Value of
Investment in Associate 127814678.14 127268642.81
Operating Revenue 59455101.74 97832532.36
Net Profit 1812204.97 19173955.86
Total comprehensive
income 1812204.97 19173955.86
（4）Summary Financial Information of Non-Significant Joint Ventures and
Associates
Item Period-End Balance / Beginning period / Current Period Amount Previous Period Amount
Associates：
Total Book Value of Investments 6266560.98
Page 112 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Period-End Balance / Beginning period / Current Period Amount Previous Period Amount
The total amount calculated based on
the shareholding ratio for the following
items.-- Net Profit -6549869.47 -85605.64
-- Total Comprehensive Income -6549869.47 -85605.64
（5）Excess losses incurred by joint ventures or associates
Cumulative
Name of joint venture unrecognized Losses not recognized in the
Cumulative
or associate losses in prior current period (or share of net
unrecognized losses
periods profit in the current period)
at the end of the
current period
Jingliang Mismi
Catering Management 128816.34 128816.34
(Beijing) Co. Ltd.
IX. Government Grants
1. Liabilities Related to Government Grants
Amount
New Recorded
Financial Beginning Grant in Non- Transferred to
Other
Statement Balance Amount operating Other Income
Changes Ending Balance Asset/Income
Item for the Income for the Period for the Related
Period for the Period
Period
Deferred
Revenue 56731497.62 2794848.15 53936649.47
Total 56731497.62 2794848.15 53936649.47 ——
2. Government Grants Recorded in Current Profit or Loss Item
Current Period Previous Period Reported
Item
Amount Amount Item
Other
VAT Immediate Refund 7548211.92 7385224.08
income
Other
Relocation Compensation 3078110.50
income
Other
Import Soybean Financial Subsidy 2165900.00
income
Infrastructure Support Subsidy for
Enterprises in the Construction Phase Other
1277504.161277504.16
of the Tianjin Lingang Industrial income
Zone Administrative Committee
Page 113 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Industrial Zone Administrative Other
767281.55
Committee income
Other
Job Stabilization Subsidy 1128588.23 611411.81
income
Government Support for Debt Other
600000.00
Financing Reward income
First Upgrade to Standard in the
Other
Economic Development Zone 300000.00
income
Reward
Quality Award Subsidy (Market Other
1200000.00300000.00
Regulatory Bureau) income
2024 Grain Production and
Other
Marketing Cooperation Project 504900.00
income
Subsidy
Beijing Grain and Material Reserve
Bureau "Oil Tank Expansion and Other
250180.92250180.92
Winterization Renovation Project" income
Subsidy
Tianjin Binhai New Area Industrial
Technology Reform and Park Other
222222.24222222.24
Construction Funds and Scientific income
and Technological Expenditures
Subsidy under preferential tax
Other
policies for key groups (January– 191100.00 200200.00
income
November)
Other
Incentive funds for key sub-brands 200000.00 200000.00
income
Grain storage facility maintenance
Other
funds allocated by the Food and 149880.00
income
Reserves Bureau
Subsidy for the potato chips Other
911102.35143820.80
production line expansion project income
Subsidies related to persons with Other
199389.75210972.16
disabilities income
Other
Other 949203.91 440951.74
income
Total 14077503.48 18808559.96
X. Risks Related to Financial Instruments
1. Risks of Financial Instruments
The company's main financial instruments include equity investments debt
Page 114 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
investments loans accounts receivable accounts payable etc. The primary purpose of
these financial instruments is to finance the company's operations. The company has
various other financial assets and liabilities directly arising from operations such as
accounts receivable and accounts payable.The primary risks associated with the company's financial instruments are credit risk
liquidity risk and market risk.
（1）Classification of Financial Instruments
1) Book Value of Various Financial Assets as of the Balance Sheet Date
a. December 31 2025
Measured at Measured at
Financial Asset Measured at Fair Value Fair Value
Item Amortized Cost Through Profit Through Other Total
or Loss Comprehensive Income
Cash and Cash
Equivalents 1821722517.08 1821722517.08
Derivative
Financial Assets
Accounts
Receivable 98216373.71
98216373.71
Other
Receivables 173257419.17 173257419.17
Non-Current
Assets Due
Within One
Year
Other Current
Assets 8705942.21 8705942.21
b. December 31 2024
Measured at Fair
Financial Measured at Measured at Fair Value Through
Asset Item Amortized Cost Value Through Other Total Profit or Loss Comprehensive
Income
Cash and
Cash 1417025694.30 1417025694.30
Equivalents
Derivative
Financial 70947839.67 70947839.67
Assets
Accounts
receivable 91439895.13 91439895.13
Other
receivables 455148011.66 455148011.66
Non-Current
Assets Due 10694166.66 10694166.66
Page 115 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Measured at Fair
Financial Measured at Measured at Fair Value Through
Asset Item Amortized Cost Value Through Other Total Profit or Loss Comprehensive
Income
Within One
Year
Other
Current 79380779.05 79380779.05
Assets
2) Book Value of Various Financial Liabilities as of the Balance Sheet Date
a. December 31 2025
Measured at
Financial Liability Item Fair Value Other Financial Through Liabilities Total
Profit or Loss
Short-term Borrowings 1136260975.85 1136260975.85
Derivative Financial Liabilities 3815280.00 3815280.00
Accounts Payable 66273857.12 66273857.12
Other Payables 62493915.38 62493915.38
Other current liabilities 2125165.80 2125165.80
Long-term Borrowings 576500000.00 576500000.00
Non-Current Liabilities Due Within One Year 371035213.61 371035213.61
b. December 31 2024
Financial
liabilities
Financial liability items measured at Other financial fair value liabilities Total
through profit
or loss
Short-term Borrowings 1311609177.78 1311609177.78
Derivative Financial Liabilities 30979464.00 30979464.00
Accounts Payable 127879265.40 127879265.40
Other Payables 58529914.31 58529914.31
Bonds payable 299250000.00
Non-Current Liabilities Due Within One Year 532152983.32 532152983.32
（2）Credit Risk
As of December 31 2025 the maximum credit risk exposure that could cause financial
loss to the company mainly arises from the possibility that the counterparty may fail to fulfill
Page 116 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
its obligations leading to losses in the company’s financial assets. Specifically this includes:
The book value of financial assets recognized in the consolidated balance sheet; for
financial instruments measured at fair value the book value reflects its risk exposure but not
the maximum risk exposure. The maximum risk exposure will change as the fair value
fluctuates in the future.To mitigate credit risk the company has established relevant policies to control credit risk
exposure including evaluating the creditworthiness of customers based on factors such as their
financial condition the possibility of obtaining third-party guarantees credit history and
current market conditions. The company sets appropriate credit periods and implements other
monitoring procedures to ensure necessary actions are taken to recover overdue receivables.Furthermore the company reviews the recovery status of each receivable as of each balance
sheet date to ensure adequate provisions for bad debts are made for uncollectible amounts.Therefore the management believes the credit risk undertaken by the company has been
significantly reduced.The Company’s working capital is deposited with banks that have high credit ratings;
therefore the credit risk associated with the Company’s working capital is relatively low.
（3）Liquidity Risk
When managing liquidity risk the company maintains what the management considers to
be sufficient cash and cash equivalents which are monitored to meet the company’s operational
needs and reduce the impact of cash flow fluctuations. The management monitors the use of
bank borrowings and ensures compliance with loan agreements.An analysis of the maturity of financial liabilities based on the undiscounted contract cash
flows:
December 31 2025
Item
Within 1 year 1 to 5 Years Over 5 Years Total
Short-term borrowings 1136260975.85 1136260975.85
Derivative financial
3815280.003815280.00
liabilities
Accounts payable 62935403.84 3338453.28 66273857.12
Other payables 62493915.38 62493915.38
Long-term borrowings 576500000.00 576500000.00
Bonds payable
Non-current liabilities
371035213.61371035213.61
due within one year
Page 117 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
（Continuing Table）
December 31 2025
Item
Within 1 year 1 to 5 Years Over 5 Years Total
Short-term borrowings 1311609177.78 1311609177.78
Derivative financial
liabilities 30979464.00 30979464.00
Accounts payable 124440132.93 3439132.47 127879265.40
Other payables 58529914.31 58529914.31
Long-term borrowings
Bonds payable 299250000.00
Non-current liabilities
due within one year 532152983.32
（4）Market Risk
Market risk refers to the risk that the fair value or future cash flows of financial instruments
will fluctuate due to changes in market prices. Market risk mainly includes interest rate risk
exchange rate risk and other price risks such as equity instrument investment price risk.
1） Interest Rate Risk
The company’s interest rate risk primarily arises from bank borrowings and other financial
liabilities. Floating rate financial liabilities expose the company to cash flow interest rate risk
while fixed rate financial liabilities expose the company to fair value interest rate risk. The
company determines the relative proportions of fixed and floating rate contracts based on the
current market environment.As of December 31 2025，the company’s interest-bearing debt includes floating-rate
contracts in RMB amounting to ￥180000000.00 and fixed-rate contracts in RMB amounting
to ￥1900460975.85.
2） Exchange Rate Risk
The foreign exchange risk faced by the Company is mainly related to its operating
activities (when receipts and payments are settled in foreign currencies other than the
Company’s functional currency) and its net investments in overseas subsidiaries. The Company
is primarily exposed to foreign exchange risk related to the U.S. dollar. Except for certain
subsidiaries of the Company that conduct purchases and sales in U.S. dollars the Company’s
other major operating activities are denominated and settled in Renminbi. As of December 31
2025 except for the assets or liabilities with U.S. dollar balances as shown in the table below
the Company’s assets and liabilities are all denominated in Renminbi. The foreign exchange
Page 118 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
risk arising from assets and liabilities denominated in these foreign currencies may have an
impact on the Company’s operating results.Item Ending Balance Beginning Balance
Cash and Cash Equivalents 25155525.27 87168294.60
Other Receivables 16141102.93
The company uses sensitivity analysis techniques to assess the potential impact of
reasonable and possible changes in risk variables on the current period’s profit or loss or
shareholders’ equity. Since risk variables rarely change in isolation and the correlation between
variables significantly affects the final impact of a change in a specific risk variable the
following content is based on the assumption that changes in each variable are independent.Under the assumption that foreign currency assets and liabilities remain relatively stable
and other variables remain unchanged the potential reasonable changes in exchange rates could
have the following after-tax impact on profit or loss and equity for the current period:
Ending Foreign Ending Converted
Item Exchange Rate
Currency Balance RMB Balance
Monetary funds —— —— 25155525.27
Including: U.S. dollars 3578921.76 7.0288 25155525.27
(Continuing Table)
Current Period
Item USD Exchange Gross Profit/Net Total Profit/Net
Rate Profit Profit
Increase/(Decrease) Increase/(Decrease) Increase/(Decrease)
RMB Depreciation vs USD 5% 1257776.26 1257776.26
RMB Appreciation vs USD -5% -1257776.26 -1257776.26
2. Hedging
（1）Company’s Hedging Activities for Risk Management
Relevant Risk Qualitative and Hedged Project Effectiveness Impact of
Item Management Quantitative
and Economic of Expected Hedging
Strategies and Information on Relationship Risk Activity on
Goals Hedged Risk with Hedging Management Risk Instruments Goal Exposure
Use of futures
contracts for Hedged risk is
Hedged project
and related Effectively
hedging price volatility risk mainly hedging Expected risk
Oilseed purposes to
mitigates
avoid market arising from basis
instruments management
Hedging risk substitute change in fair goal is mostly risk price volatility
achieving stable risk supply-
value in achieved. exposure.operations. demand risk etc.opposite
direction to the
Page 119 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Relevant Risk Qualitative and Hedged Project Effectiveness Impact of
Item Management Quantitative
and Economic of Expected Hedging
Strategies and Information on Relationship Risk Activity on
Goals Hedged Risk with Hedging Management Risk Instruments Goal Exposure
change in
market prices
or correlated
economic
variables.
（2）The company engages in qualifying hedging activities and applies hedge
accounting
Cumulative fair value
Carrying value The impact of hedge
hedge adjustments Source of hedge
related to the hedged accounting on the
Item included in the carrying effectiveness and
items and hedging company’s financial
value of the recognized ineffectiveness
instruments statements
hedged items
Types of hedging risks
Commodity
price risk -
8705942.218705942.21
Other current The correlation
assets between the hedged
-169671995.27
Commodity items and hedging
price risk - instruments
2125165.802125165.80
Other current
liabilities
Hedge Category
Fair value
The correlation
hedge –
between the hedged
derivative 3815280.00 -169671995.27
items and hedging
financial
instruments
liabilities
XI. Fair Value Disclosures
1. Fair Value Measurement of Assets and Liabilities at Period End
Page 120 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Ending Fair Value
Level 2 Fair Level 3 Fair
Item Level 1 Fair Value
Value Value Total
Measurement
Measurement Measurement
I. Assets Measured at Fair
Value on a Continuing Basis
(I) Trading Financial Assets 8705942.21 8705942.21
1. Financial Assets Measured at
Fair Value with Changes in 8705942.21 8705942.21
Profit and Loss
（1）Debt Instruments
（2）Equity Instruments
（3）Derivative Financial
Assets
（4）Other current assets 8705942.21 8705942.21
2. Financial Assets Designated
at Fair Value with Changes in
Profit and Loss
（1）Debt Instruments
（2）Equity Instruments
(II) Other Debt Investments
(III) Other Equity Instruments
(IV) Investment Properties
Total Assets Measured at Fair
8705942.218705942.21
Value on a Continuing Basis
(VI) Trading Financial
5940445.805940445.80
Liabilities
1. Financial liabilities measured
at fair value through profit or 5940445.80 5940445.80
loss
Including: Trading bonds issued
Derivative financial liabilities 3815280.00 3815280.00
Other current liabilities 2125165.80 2125165.80
Other
2. Financial liabilities
designated as measured at fair
value through profit or loss
Total liabilities measured at fair
5940445.805940445.80
value on a recurring basis
2. Determination Basis for Market Price of Level 1 Fair Value Measurement Items
on a Continuing and Non-Continuing Basis
Page 121 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
The Company's Level 1 fair value measurement is based on the public contract quotations
of the futures exchange.XII. Related Parties and Related Transactions
1. Parent Company Information
Parent Parent
Company's Company'
Shareholdin s Voting
Parent Company Name Registered Business Nature Registered g Rights Location Capital Percentage Percentag
in the e in the
Company Company
（%）（%）
Beijing Grain Group Co. Beijing China Investment RMB Ltd. Management 900000000.00 39.68 39.68
Description of the Company’s parent company
The ultimate controlling party of the Company is Beijing State-owned Capital Operation
and Management Co. Ltd.
2. Subsidiary Information
The information about the subsidiaries of the company is detailed in Note VIII Item 1
"Equity in Subsidiaries."
3. Joint Ventures and Associates Information
The information about the significant joint ventures or associates of the company is
detailed in Note VIII Item 2 "Equity in Joint Ventures or Associates."
4. Other Related Parties
Other Related Party Name Relationship with the Company
Controlled by the same ultimate
Beijing Capital Agribussiness & Food Group Finance Co. Ltd.controlling party
Controlled by the same ultimate
Shanghai Shouyu Commercial Management Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Ershang Meat Food Group Co. Ltd.controlling party
Controlled by the same ultimate
Hebei Luanping Huadu Foodstuff Co. Ltd.controlling party
Controlled by the same ultimate
Hebei Shounong Modern Agricultural Technology Co. Ltd.controlling party
Beijing Capital Agribusiness Consumption Assistance & Controlled by the same ultimate
Innovation Center Co. Ltd. controlling party
Page 122 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Controlled by the same ultimate
Beijing Lvhe Cattle Farming Co. Ltd. Xingtai Branch
controlling party
Controlled by the same ultimate
Beijing Jingliang East Grain and Oil Trading Group Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Baijiayi Food Co. Ltd.controlling party
Controlled by the same ultimate
Hebei Anping Dahongmen Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Zhangxin Grain Reserve Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Lanfeng Vegetable Distribution Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Guchuan Food Co. Ltd.controlling party
Beijing Capital Agribusiness Dot-To-Net E-commerce Co. Controlled by the same ultimate
Ltd. controlling party
Controlled by the same ultimate
Beijing Sanyuan Foods Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Haidian Xijiao Grain and Oil Supply Station Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Grain Group Co. Ltd.controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co. Controlled by the same ultimate
Ltd. controlling party
Controlled by the same ultimate
Beijing Grain Science Research Institute Co. Ltd.controlling party
Controlled by the same ultimate
Liu Biju Peking Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingliang Electronic Commerce Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Hepingmen Market Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingliang Taiyu Real Estate Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Shoucheng Shanshui Real Estate Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Capital Agribusiness Development Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Guchuan Rice Industry Co. Ltd.controlling party
Beijing Capital Agribusiness & Foods Emergency Support Controlled by the same ultimate
Center Co. Ltd. controlling party
Page 123 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Controlled by the same ultimate
Beijing Capital Agribusiness & Food Group Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Wangzhihe Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Capital Agribusiness Livestock Development Co. Ltd.controlling party
Beijing Food Supply Department No. 34 Supply Department Controlled by the same ultimate
Co. Ltd. controlling party
Controlled by the same ultimate
Beijing Jingdujingu Grain Purchasing and Sales Co. Ltd.controlling party
Beijing Capital Agribusiness Xiangshan Conference Center Controlled by the same ultimate
Co. Ltd. controlling party
Controlled by the same ultimate
Beijing Longqingxiadu Military Grain Supply Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Allied Faxi Food Co.Ltd.controlling party
Controlled by the same ultimate
Beijing North Jingtang Foreign Spirits Sales Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Dot-To-Net E-commerce Sales Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Ershang Dahongmen Wuroulian Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Ershang Jinghua Tea Industry Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingshen Seafood Sales Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingtang Dingsheng Trading Co. Ltd.controlling party
Controlled by the same ultimate
Liu Biju Peking Huairou Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Farm Produce Central Wholesale Market Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Shenghua Sihe Asset Management Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Changfa Industrial Operation Management Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Haiyunxing Aquatic Product Company
controlling party
Controlled by the same ultimate
Beijing Nanjiao Heyi Farm Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Changyang Farm Co. Ltd.controlling party
Page 124 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Controlled by the same ultimate
Beijing Capital Agribusiness Commercial Chain Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Capital Agribusiness Xiangshan Commercial Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Sidaokou Aquatic Products Trading Market Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Taiyu Real Estate Management Co. Ltd.controlling party
Controlled by the same ultimate
Huai’an Jingliang Lvgu Grain Co. Ltd.controlling party
Controlled by the same ultimate
Shanghai Sanyuan Dairy Co. Ltd.controlling party
Controlled by the same ultimate
Tongliao Dachang Grain Trading Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingliang Xingye Commercial Management Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingtang Shengshi Meilihua Trading Co. Ltd.controlling party
Beijing Maisui Hotel Management Co. Ltd. Maike Tianxiang Controlled by the same ultimate
Hotel controlling party
Controlled by the same ultimate
Beijing Dairy Cattle Center
controlling party
Beijing Nanjiao Agricultural Production and Operation Controlled by the same ultimate
Management Co. Ltd. controlling party
Controlled by the same ultimate
Beijing Sanjia Taifu Real Estate Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Sanyuan Petroleum Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Sanyuan Breeding Technology Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Nankou Farm Co. Ltd. Fruit Products Business Branch
controlling party
Controlled by the same ultimate
Beijing Shuangqiao Qiaolian Property Service Co. Ltd.controlling party
Controlled by the same ultimate
Hebei Sanyuan Food Co. Ltd.controlling party
Tianjin Capital Agribusiness Dongjiang Animal Husbandry Controlled by the same ultimate
Co. Ltd. controlling party
Controlled by the same ultimate
China Meat Research Center
controlling party
Controlled by the same ultimate
Beijing Ershang Muxiangyuan Halal Meat Food Co. Ltd.controlling party
Page 125 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Controlled by the same ultimate
Beijing Heiliu Animal Husbandry Technology Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Huadu Sunshine Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Huayu Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Jingliang Gurun Trade Ltd.controlling party
Controlled by the same ultimate
Beijing Sanyuan AGRICULTURE Co. Ltd.controlling party
Beijing Capital Agribusiness Information Technology & Controlled by the same ultimate
Services Co. Ltd. controlling party
Controlled by the same ultimate
Beijing Sugar Tobacco & Wine Group Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Wanfa Hengxing Trading Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Xinanjiao Frozen Food Co. Ltd.controlling party
Controlled by the same ultimate
Beijing Yanqi Yueshengzhai Islamic Food Co.Ltd.controlling party
Controlled by the same ultimate
Shandong Fukuan Bioengineering Co. Ltd.controlling party
5. Related Party Transactions
（1） Purchase and Sale of Goods Provision and Receipt of Services
Purchase and Sale of Goods Provision and Receipt of Services
Related Related Current
Approved Whether the Amount
Party Transaction Period
transaction transaction limit incurred in
Content Amount limit (RMB was exceeded the previous 10000) (if applicable) period
Beijing
Guchuan Purchase of
Food Co. goods 12180238.74 1800.00 No 14450217.76
Ltd.Shanghai
Shounong
Investment Purchase of No 55530880.00
Holding goods
Co. Ltd.Other
related Purchase of
units goods
4064287.94 1200.00 No 4274096.76
Other
related Receipt of services 1700.00 No 116255.16 units
Page 126 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Sale of Goods/Provision of Services：
Related Transaction Current Period Previous Period
Related Party
Content Amount Amount
Shanghai Shounong Investment
Sale of goods 8488245.03 311641692.68
Holding Co. Ltd.Hebei Shounong Modern Agricultural
Sale of goods 11757571.92 17871902.07
Technology Co. Ltd.Hebei Luanping Huadu Food Co. Ltd. Sale of goods 101778751.91 88182730.21
Beijing Sanyuan Seed Industry
Sale of goods 39541959.37 58393255.17
Technology Co. Ltd. Feed Branch
Beijing Wang Zhihé Food Co. Ltd. Sale of goods 13829319.37
Beijing Shounong Consumption
Assistance and Double Innovation Sale of goods 11455400.89 8722272.45
Center Co. Ltd.Beijing Shounong Animal Husbandry
Sale of goods 6505217.13 7800749.94
Development Co. Ltd.Beijing Jingliang Dongfang Grain and
Sale of goods 1645417.57 2936536.67
Oil Trading Co. Ltd.Beijing Food Supply Bureau No. 34
Sale of goods 1844670.47 2546073.08
Supply Department Co. Ltd.Beijing Wuhuan Shuntong Supply
Sale of goods 4388303.63 2141115.90
Chain Management Co. Ltd.Beijing Zhangxin Grain Storage Co.Sale of goods 1266068.79 1953412.40
Ltd.Beijing Baijia Yi Food Co. Ltd. Sale of goods 2345633.02 1907018.32
Beijing Jingdu Jingu Grain Purchase
Sale of goods 1736146.78
and Sales Co. Ltd.Beijing Guchuan Rice Industry Co.Sale of goods 4046599.52 1377817.45
Ltd.Beijing Haidian Xijiao Grain and Oil
Sale of goods 1853082.56 1324036.68
Supply Station Co. Ltd.Hebei Anping Dahongmen Food Co.Sale of goods 1162843.97 753718.30
Ltd.Beijing Shounong Development Co.Sale of goods 17996.18 585779.12
Ltd.Beijing Lanfeng Vegetable Distribution
Sale of goods 46215.59 505685.23
Co. Ltd.Beijing Shounong Xiangshan
Sale of goods 22655.04 342868.31
Conference Center Co. Ltd.Beijing Longqing Xiadu Military Food
Sale of goods 284036.71 277431.20
Supply Co. Ltd.Page 127 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beijing Guchuan Food Co. Ltd. Sale of goods 343188.01 251753.39
Beijing Ailafa Food Co. Ltd. Sale of goods 52869.73 233097.82
Beijing Ershang Meat Food Group Co.Sale of goods
Ltd. 1640052.22
Beijing Liubiju Huairou Food Co. Ltd. Sale of goods
5399458.71
Beijing Agricultural Products Central
Sale of goods
Wholesale Market Co. Ltd. 1070229.37
Beijing Shounong Xiangshan
Sale of goods
Commercial Co. Ltd. 450000.01
Beijing Capital Agribusiness Food
Sale of goods
Group Co. Ltd. 275594.42
Beijing Sanjia Taifu Real Estate Co.Sale of goods
Ltd. 125113.76
Other related units Sale of goods 861063.73 1202072.47
Shanghai Shounong Investment Provision of
7819405.733837338.61
Holding Co. Ltd. services
Beijing Capital Agribusiness Food Provision of
1590618.041646403.21
Group Co. Ltd. services
Provision of
Other related parties 183106.58 49397.36
services
Explanation of the purchase and sale of goods provision and receipt of services: The
transaction prices are based on the prices charged for the same or similar business activities
between unrelated parties.
（2） Related Lease Transactions
As Lessor：
Lease Income Lease Income
Lessee Name Lease Asset Type Recognized in Current Recognized in
Period Previous Period
Beijing Jingliang E-Commerce
Vehicles 15020.18 22530.27
Co. Ltd.Beijing Grain Group Co. Ltd. Properties 53333333.34
As Lessee：
Page 128 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Lease Payments Not Included in
Simplified Short-Term Lease and Low-
Lease Liability Measurement
Lease Asset Value Asset Rent (CNY)
Lessor Name (CNY)
Type
Current Period Previous Period Current Period Previous Period
Amount Amount Amount Amount
Beijing Grain
Properties 2436206.95 196300.00
Group Co. Ltd.Beijing Shounong
Food Emergency
Properties 2528669.72 2528669.72
Guarantee Center
Co. Ltd.Beijing Grain
Science Research Properties
Institute Co. Ltd.
（Continuing Table）
Increase in Right-of-
Rent Paid Lease Liability Interest Expense
Use Assets
Lessor Name Previous Current Previous
Current Period Previous Period Current Period
Period Period Period
Amount Amount Amount
Amount Amount Amount
Beijing Grain Group
5565689.98
Co. Ltd.Beijing Shounong Food
Emergency Guarantee 2756250.00
Center Co. Ltd.Beijing Municipal
Grain Science Research 14040000.00 14040000.00 2476170.62 1150310.75
Institute Co. Ltd.
（3） Key management personnel compensation
Item Current Period Amount Previous Period Amount
Key management personnel compensation RMB 4399800 RMB 8495700
（4） Other Related Party Transactions
Related Transaction Current Period Previous Period
Related Party
Content Amount Amount
Beijing Shounong Food Group Financial
Interest Income 7747070.11 7046721.43
Co. Ltd.Beijing Shounong Food Group Financial
Interest Expense 8218405.55 2610416.67
Co. Ltd.Page 129 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Trademark Usage
Beijing Guchuan Food Co. Ltd. 931720.94 1946502.22
Fee
Trademark Usage
Beijing Guchuan Rice Industry Co. Ltd. 143828.28 200353.23
Fee
Beijing Jingliang Dongfang Grain and Oil Trademark Usage
385.311439.81
Trading Co. Ltd. Fee
Trademark license
Beijing Grain Group Co. Ltd. 656320.06
fee
Demolition
Beijing Grain Group Co. Ltd. 10955322.00
compensation
Beijing Grain Group Co. Ltd. Sale of trademarks 25235377.36
Beijing Municipal Grain Science
Other 220519.81
Research Institute Co. Ltd.
6. Receivables and Payables from Related Parties and Unsettled Items
（1） Receivables
Period-End Balance Beginning period
Provision
Project Name Related Party Provision for Bad
Book Balance Book Balance for Bad
Debts
Debts
Beijing Shounong
Monetary
Food Group 1303024670.57 840710693.25
funds
Financial Co. Ltd.Shanghai
Shounong
Prepayments 18949338.60
Investment
Holding Co. Ltd.Beijing Ershang
Prepayments Meat Food Group 27540.00
Co. Ltd.Huadu Food Co.Accounts Ltd. Luanping
22348359.2328001392.07
receivable County Hebei
Province
Beijing Sanyuan
Accounts
Seed Technology 1887834.11 6108044.61
receivable
Co. Ltd.Hebei Shounong
Modern
Accounts
Agricultural 1945602.36
receivable
Technology Co.Ltd.Page 130 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beijing Shounong
Consumer
Accounts Assistance 371250.00
receivable Innovation and
Entrepreneurship
Center Co. Ltd.Beijing Shounong
Accounts Livestock
426725.84332181.38
receivable Development Co.Ltd.Beijing Jingliang
Accounts Dongfang Grain &
125200.00319534.75
receivable Oil Trading Co.Ltd.Accounts Beijing Baijiayi
102580.00160250.00
receivable Food Co. Ltd.Hebei Anping
Accounts
Dahongmen Food 565500.00 156000.00
receivable
Co. Ltd.Beijing Zhangxin
Accounts
Grain Reserve 367175.00 119717.50
receivable
Co. Ltd.Beijing Lanfeng
Accounts Vegetable 26000.00
receivable Distribution Co.Ltd.Accounts Beijing Guchuan
13202.0024012.00
receivable Food Co. Ltd.Beijing Ershang
Accounts
Meat Food Group 13830.01 17075.00
receivable
Co. Ltd.Beijing Shounong
Accounts Diandao E- 10468.00
receivable commerce Co.Ltd.Accounts Beijing Sanyuan
19235.00
receivable Foods Co. Ltd.Beijing Haidian
Accounts Xijiao Grain and
316800.00
receivable Oil Supply Station
Co. Ltd.Accounts Beijing Grain
12847737.37
receivable Group Co. Ltd.Page 131 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beijing Wuhuan
Shuntong Supply
Accounts
Chain 67680.00
receivable
Management Co.Ltd.Beijing Shounong
Consumer
Other Assistance
20000.00
Receivables Innovation and
Entrepreneurship
Center Co. Ltd.
（2） Payables
Project Name Related Party Ending Balance Beginning Balance
Accounts Shanghai Shounong Investment Holding Co. 845410.83
Payable Ltd.Accounts
Beijing Guchuan Food Co. Ltd. 746826.11 275504.58
Payable
Accounts Beijing Municipal Grain Science Research
190000.00
Payable Institute Co. Ltd.Accounts
Beijing Liubiju Food Co. Ltd. 193.81
Payable
Other
Beijing Grain Group Co. Ltd. 543047.81 3652500.00
Payables
Other
Beijing Jingliang E-commerce Co. Ltd. 16972.80
Payables
Other Beijing Wuhuan Shuntong Supply Chain
7841.96
Payables Management Co. Ltd.Other Beijing Jingliang Dongfang Grain & Oil
7684.48
Payables Trading Co. Ltd.Contract Shanghai Shounong Investment Holding Co. 13947007.52
Liabilities Ltd.Contract
Beijing Hepingmen Market Co. Ltd. 27522.94
Liabilities
Contract
Beijing Jingliang Taiyu Real Estate Co. Ltd. 7100.92
Liabilities
Contract
Beijing Grain Group Co. Ltd. 327200.00
Liabilities
Contract Beijing Shoucheng Shanshui Real Estate Co.
6192.66
Liabilities Ltd.Contract
Beijing Shounong Development Co. Ltd. 22192.66
Liabilities
Page 132 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
XIII. Share-based Payments
The company does not have any share-based payments that need to be disclosed.XIV. Commitments and Contingencies
(1) As of the end of the reporting period the approved guarantee limit of the Company
and its subsidiaries amounted to 55.95 billion RMB and the actual amount of guarantees
utilized by the Company and its subsidiaries was 9.78 billion RMB representing 34.15% of the
Company’s most recently audited net assets attributable to the parent company. All such
guarantees were provided between the Company and its subsidiaries. The Company and its
subsidiaries have not provided any guarantees to entities outside the consolidated financial
statements.XV. Events after the balance sheet date
There are no events after the balance sheet date that require disclosure for the reporting
period.XVI. Other significant matters
1. Correction of prior period accounting errors
（1） Retrospective restatement method
Name of financial
Content of accounting error Processing procedure statement items in each correction affected comparative Cumulative impact
period
Correction of revenue that Correction of prior period
did not meet the revenue accounting error Capital reserve 989931.26
recognition criteria
Correction of revenue that Correction of prior period
did not meet the revenue accounting error Retained earnings -989931.26
recognition criteria
2. Pension plan
Pension Plan Overview: The companies under the group including Beijing Jingliang Food
Co. Ltd. Jingliang (Tianjin) Grain and Oil Industry Co. Ltd. Beijing Guchuan Oil Co. Ltd.Beijing Aisen Greenbao Oil Co. Ltd. Beijing Jingliang Oils Co. Ltd. Beijing Guchuan Bread
and Food Co. Ltd. and Beijing Tianweikang Oil Adjustment Center Co. Ltd. participate in
the pension plan of Beijing Capital Agribusiness Food Group Co. Ltd. Each company has
established its own implementation rules for the pension plan. The pension plan is named "
Page 133 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Beijing Capital Agribusiness Food Group Co. Ltd Corporate Pension Plan." The trustee is Ping
An Pension Insurance Co. Ltd. the account manager is Bank of Communications and the
custodian is CITIC Bank Co. Ltd.
3. Segment Information
（1）Basis for Determining Reportable Segments and Accounting Policies
Based on the company's internal organizational structure management requirements and
internal reporting system the company's business operations are divided into segments such as
food processing oilseeds and oil-related operations. The company’s management regularly
evaluates the operating results of these segments to allocate resources and assess their
performance. The segment reporting information is disclosed based on the accounting policies
and measurement standards used by the management to report to the board and these
measurement bases are consistent with those used in the preparation of the financial statements.
（2）Financial Information of Reportable Segments
Item Food Processing Oilseeds and Oils Inter-Segment Eliminations Total
Operating
Revenue 680705627.17 7154995505.45 500823.85 7835200308.77
Operating
Cost 550661896.73 6906789779.01 569430.05 7456882245.69
Total
Assets 1083751681.79 5407465791.46 372935251.80 6118282221.45
Total
Liabilities 224389868.72 3055105381.97 372935251.80 2906559998.89
XVII. Notes to the Financial Statements of the Parent
Company
1. Other Receivables
Item Period-End Balance Beginning period
Interest Receivable
Dividend Receivable 18000000.00
Other Receivables 930000000.00 930000000.00
Page 134 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Total 930000000.00 948000000.00
（1）Dividends receivable
1) Dividends receivable
Item (or investee) Period-End Balance Beginning period
Beijing Jingliang Food Co. Ltd. 18000000.00
Total 18000000.00
2) Classified disclosure by provision method for bad debts
Period-End Balance
Book Balance Provision for Bad Debts
Category Propo
Proportion Book Value
Amount rtion Amount
(%)
(%)
Provision for Bad
Debts recognized on
an individual basis
Provision for Bad
Debts recognized on a
portfolio basis
Total
（Continuing Table）
Beginning period
Book Balance Provision for Bad Debts
Category
Proportio Book Value
Amount Amount Proportion (%)
n (%)
Page 135 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Provision for Bad
Debts recognized on
an individual basis
Provision for Bad
Debts recognized on a 18000000.00 18000000.00
portfolio basis
Total 18000000.00 18000000.00
（2）Other Receivables
1) Receivables by Age
Age Ending Balance Beginning Balance
Within 1 Year 930000000.00
1 to 2 Years 930000000.00
Total 930000000.00 930000000.00
2) Receivables by Nature
Nature Ending Balance Beginning Balance
Inter-company Receivables 930000000.00 930000000.00
Total 930000000.00 930000000.00
3) Top five other receivables by debtor aggregated at Period-End Balance
Proportion of total
Provision for Bad
Period-End other receivables at Nature of
Entity name Aging DebtsPeriod-End
Balance Period-End receivable
Balance
Balance (%)
Beijing
930000000.00 100.00 Loan 1–2 years
Jingliang
Page 136 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Food Co.Ltd.Total 930000000.00
2. Long-term equity investments
Period-End Balance Beginning period
Book Balance Impair Book Value Book Balance Impair Book Value
Item ment ment
Provis Provis
ion ion
Invest
ment in
2442399283.192442399283.192340799283.192340799283.19
subsidi
aries
Total 2442399283.19 2442399283.19 2340799283.19 2340799283.19
（1）Investment in subsidiaries
Impairment
Decrease
provision Impairment
Increase during during Period-End
Investee Beginning period recognized ProvisionPeriod-
the period the Balance
during the End Balance
period
period
Beijing
Jingliang
2051781964.052051781964.05
Food Co.Ltd.Zhejiang
Little Prince 249017319.14 249017319.14
Food Co.Page 137 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Ltd.Jingliang
(Caofeidian)
Agricultural 25500000.00 25500000.00
Development
Co. Ltd.Jingliang
(Beijing)
8000000.0082100000.0090100000.00
Baking Food
Co. Ltd.Jingliang
(Yangpu)
Grain and 6500000.00 19500000.00 26000000.00
Oil Industry
Co. Ltd.Total 2340799283.19 101600000.00 2442399283.19
3. Revenue and cost of revenue
（1）Revenue and cost of revenue
Current Period Amount Previous Period Amount
Item
Revenue Cost Revenue Cost
Other
2553338.81338261.642448223.41340195.56
business
Total 2553338.81 338261.64 2448223.41 340195.56
4. Investment income
Current Period Previous Period
Item
Amount Amount
Investment income from long-term equity investments
86434733.1335870982.04
accounted for using the cost method
Page 138 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Current Period Previous Period
Item
Amount Amount
Investment income arising from disposal of long-term
27829877.46
equity investments
Total 86434733.13 63700859.50
XVIII. Supplementary Information
1. Statement of non-recurring profit or loss for the current period
Item Amount Description
Non-current asset disposal gains and losses including the reversal
of asset impairment provisions 14056035.10
Government subsidies recognized in the current period but not
closely related to normal business operations and those that have 3913039.95
a continuous impact on the company's profit and loss
Fair value changes of financial assets and liabilities held by non-
financial enterprises as well as gains and losses from the disposal
of financial assets and liabilities excluding effective hedging 1216408.91
activities related to the company's normal business operations
Occupation fees for funds collected from non-financial enterprises
Profit or loss on entrusting others to invest or manage assets
Profit or loss from external entrusted loans
Loss of assets due to force majeure such as natural disasters
Reversal of impairment charges for receivables that are tested
separately for impairment
The investment cost of the subsidiary associate and joint venture
is less than the income generated by the fair value of the investee's
identifiable net assets when the investment is obtained
Net profit or loss for the period from the beginning of the period to
the date of consolidation of subsidiaries arising from a business
combination under the same control
Gains or losses on the exchange of non-monetary assets
Debt restructuring gains and losses
One-time expenses incurred by the enterprise due to the cessation
of relevant business activities such as expenses for the placement
of employees etc
One-time impact on profit or loss for the current period due to
adjustments to laws and regulations such as taxation and
accounting
Share-based payment expenses recognized at one time due to
cancellation or modification of the equity incentive plan
For cash-settled share-based payments gains or losses arising from
changes in the fair value of employee remuneration payable after
the vesting date
Gains and losses arising from changes in the fair value of
investment real estate that are subsequently measured using the fair
value model
Proceeds from transactions where the price of the transaction is
clearly unfair
Page 139 of 140Hainan Jingliang Holdings Co. Ltd. 2025 Financial Statement Notes
Item Amount Description
Profit or loss arising from contingencies unrelated to the normal
operation of the company
Custody fee income obtained from entrusted operations
Other non-operating income and expenses other than those listed
above -5364192.71
Other profit or loss items that meet the definition of non-recurring
profit or loss
Less: Income tax impact 2092351.08
Impact of Minority Interest (After-Tax) -1331864.39
Total 13060804.56
2. Return on Equity and Earnings per Share
Weighted
Report Period Profit Earnings Per Share Average Return
on Equity（%） Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders
of the company -8.86 -0.37 -0.37
Deducting non-recurring gains and losses net
profit attributable to ordinary shareholders of -9.29 -0.38 -0.38
the company
Hainan Jingliang Holdings Co. Ltd.March 26 2026
Page 140 of 140
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