京粮B：2020年第三季度报告全文（英文版）

HAINAN JINGLIANG HOLDINGS CO. LTD.

THIRD QUARTERLYREPORT 2020

October 2020

Part I Important Notes

The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors

supervisors and senior management of Hainan Jingliang Holdings Co. Ltd. (hereinafter

referred to as the “Company”) hereby guarantee that the contents of this Report and its

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

statements or material omissions and collectively and individually accept legal responsibility

for such contents.

All the Company’s directors have attended the Board meeting for the review of this Report

and its summary.Li Shaoling the Company’s legal representative Guan Ying the Company’s head for

financial affairs and Liu Quanli head of the Company’s financial department (equivalent to

financial manager) hereby guarantee that the financial statements carried in this Report are

truthful accurate and complete.This Report and its summary have been prepared in both Chinese and English. Should there

be any discrepancies or misunderstandings between the two versions the Chinese versions

shall prevail.Part II Key Corporate Information

I Key Financial Information

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

30 September 2020 31 December 2019 Change (%)

Total assets (RMB) 6057365761.06 5231266600.19 15.79%

Equity attributable to the listed

company’s shareholders (RMB)

2645832412.43 2406039283.87 9.97%

Q3 2020 YoY change (%) Q1-Q3 2020 YoY change (%)

Operating revenue (RMB) 1928342701.75 5.67% 5679115769.38 11.18%

Net profit attributable to the listed

company’s shareholders (RMB)

40894930.95 20.84% 114657826.14 34.34%

Net profit attributable to the listed

company’s shareholders before

exceptional gains and losses (RMB)

32040014.29 13.31% 100035204.24 44.00%

Net cash generated from/used in

operating activities (RMB)

-273955632.37 -221.14% -86859811.61 -119.44%

Basic earnings per share (RMB/share) 0.06 20.00% 0.16 33.33%

Diluted earnings per share (RMB/share) 0.06 20.00% 0.16 33.33%

Weighted average return on equity (%) 1.56% 5.41% 4.65% 26.02%

Exceptional gains and losses:

√ Applicable □ Not applicable

Unit: RMB

Item Q1-Q3 2020 Note

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

allowance write-offs)

-30020.88

Government grants through profit or loss (exclusive of government grants

given in the Company’s ordinary course of business at fixed quotas or

amounts as per the government’s uniform standards)

7543633.15

Gain or loss on fair-value changes on held-for-trading and derivative

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

derivative financial assets and liabilities and other debt investments

(exclusive of the effective portion of hedges that arise in the Company’s

13538448.19

ordinary course of business)

Non-operating income and expense other than the above -727186.58

Less: Income tax effects 5293637.02

Non-controlling interests effects (net of tax) 408614.96

Total 14622621.90 --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the

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

Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of the

Reporting Period

1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well as

Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders 79532

Number of preference

shareholders with resumed

voting rights (if any)

Top 10 shareholders

Name of shareholder

Nature of

shareholder

Shareholding

percentage

Total shares held

Restricted

shares held

Shares in pledge or frozen

Status Shares

BEIJING GRAIN GROUP

CO. LTD.

State-owned

corporation 39.68% 288439561 164877598

BEIJING STATE-OWNED

CAPITAL OPERATIONAND

MANAGEMENT CENTER

State-owned

corporation 6.67% 48510460 48510460

WANGYUECHENG Domesticindividual 5.66% 41159887 41159887

LI SHERYN ZHAN MING Foreignindividual 1.23% 8941300 0

CHINADEVELOPMENT

BANK CAPITAL CO. LTD.

State-owned

corporation 0.94% 6849384 0

GOLD BUFFALO

RUNYING (TIANJIN)

EQUITY INVESTMENT

FUND MANAGEMENT

CO. LTD.—GOLD

BUFFALO RUNYING

(TIANJIN) EQUITY

INVESTMENT FUND (L.P.)

Other 0.51% 3684503 0

MEI JIANYING Domestic 0.36% 2604203 0

individual

ZHANG XIAOXIA Domesticindividual 0.27% 1949250 0

WANG XIAOXING Domesticindividual 0.24% 1748400 0

ZHU PENG Domesticindividual 0.22% 1577900 0

Top 10 unrestricted shareholders

Name of shareholder Unrestricted ordinary shares held

Shares by class

Class Shares

BEIJING GRAIN GROUP CO. LTD. 123561963

RMB-denominate

d ordinary share

123561963

LI SHERYN ZHAN MING 8941300

Domestically

listed foreign

8941300

CHINADEVELOPMENT BANK CAPITAL

CO. LTD. 6849384

RMB-denominate

d ordinary share

6849384

GOLD BUFFALO RUNYING (TIANJIN)

EQUITY INVESTMENT FUND

MANAGEMENT CO. LTD.—GOLD

BUFFALO RUNYING (TIANJIN) EQUITY

INVESTMENT FUND (L.P.)

3684503

RMB-denominate

d ordinary share

3684503

MEI JIANYING 2604203

RMB-denominate

d ordinary share

2604203

ZHANG XIAOXIA 1949250

Domestically

listed foreign

1949250

WANG XIAOXING 1748400

RMB-denominate

d ordinary share

1748400

ZHU PENG 1577900

RMB-denominate

d ordinary share

1577900

ORIENT SECURITIES (HONG KONG)

LIMITED

1354500

Domestically

listed foreign

1354500

FOSHAN SHUNDE XIHUA

ELECTRONICS CO. LTD.

1144000

RMB-denominate

d ordinary share

1144000

Related or acting-in-concert parties among the

shareholders above

① Beijing State-Owned Capital Operation and Management Center owns 100% of

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

shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy

General Manager of the Company. Apart from the aforesaid the Company does not

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

the top 10 shareholders.Top 10 shareholders engaged in securities ① Shareholder Wang Xiaoxing held 1748400 shares in the Company through his

margin trading (if any) account of collateral securities for margin trading in Soochow Securities Co. Ltd.② Shareholder Zhu Peng held 1315200 shares in the Company through his

account of collateral securities for margin trading in China Merchants Securities

Co. Ltd.

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary

shareholders of the Company conducted any promissory repo during the Reporting Period.□ Yes √ No

No such cases in the Reporting Period.

2. Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

Part III Significant Events

I Changes in Key Financial Statement Line Items and Explanation of why

√ Applicable □ Not applicable

1. Derivative financial assets increased primarily driven by an increase in deposits for futures contracts in the

current period.

2. Prepayments increased primarily driven by an increase in prepayments to suppliers due to new soy bean

purchases for the oils and oilseeds business in the current period.

3. Other non-current assets increased primarily driven by new bank deposits with a term of over one year in the

current period.

4. Short-term borrowings increased primarily driven by bank loan raised for new soy bean purchases for the oils

and oilseeds business in the current period.

5. R&D expense increased primarily driven by the reclassification of certain R&D personnel’s salaries from

administrative expense to R&D expense in the current period.

6. Return on investment increased primarily driven by increases in return on joint venture investments and in

wealth management income.

7. Gain on fair value changes decreased primarily driven by changes in the value of futures contracts.

8. Net profit increased primarily driven by year-on-year increases in both production and sales volume in the oils

pressing business due to a strong market in the current period boosting revenue and gross profit.

9. Net cash generated from operating activities decreased primarily driven by a year-on-year increase in soy bean

purchases for the oils pressing business in the current period.

10. Net cash generated from financing activities increased primarily driven by bank loan raised for new soy bean

purchases for the oils and oilseeds business in the current period.II Progress Influence and Solutions in respect of Significant Events

□ Applicable √ Not applicable

Progress of any share repurchase:

□ Applicable √ Not applicable

Progress of any reduction of the repurchased shares through centralized bidding:

□ Applicable √ Not applicable

III Commitments that the Company’s Actual Controller Shareholders Related Parties

Acquirers the Company Itself or Other Relevant Parties Failed to Fulfill on Time during the

Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.

IV Financial Investments

1. Securities Investments

√ Applicable □ Not applicable

Unit: RMB

Type of

securitie

Code of

securitie

Name of

securitie

Initial

investm

ent cost

Account

ing

measure

ment

method

Opening

carrying

amount

Gain/los

s on

fair-valu

changes

in the

current

period

Cumulat

ive

fair-valu

changes

through

equity

Purchas

ed in the

current

period

Sold in

the

current

period

Gain/los

s in the

current

period

Closing

carrying

amount

Account

ing title

Funding

source

Other 204001 GC001

Cost

method

289900

000.00

289900

000.00

30767.

0.00 Other

Self-fun

ded

Other 204003 GC003

Cost

method

40000

000.00

40000

000.00

34619.

0.00 Other

Self-fun

ded

Other 204007 GC007

Cost

method

50000

000.00

0.00 0.00

50000

000.00

Other

Self-fun

ded

Total 0.00 -- 0.00 0.00 0.00

379900

000.00

329900

000.00

65386.

50000

000.00

-- --

Disclosure date of the

announcement on the

Board’s approval of

securities investments

7 March 2020

Disclosure date of the

announcement on the

general meeting’s approval

of securities investments (if

any)

2. Investments in Derivative Financial Instruments

√ Applicable □ Not applicable

Unit: RMB’0000

Type of derivative financial

instrument

Start date End date

Closing

investment

amount

Closing investment

amount as % of the

Company’s closing

net assets

Actual

gain/loss in

the current

period

Agricultural commodity

futures

1 January 2020 30 September 2020 27395.28 10.35% 2756.59

Forex forwards 1 January 2020 30 September 2020 42364.52 16.01% -1922.48

Forex forwards 14 September 2020 30 November 2020 802.8 0.30% 0

Forex forwards 16 September 2020 31 December 2020 858 0.32% 0

Forex forwards 17 September 2020 31 December 2020 132 0.05% 0

Forex forwards 25 September 2020 31 December 2020 896.4 0.34% 0

Total -- -- 72449 27.37% 834.11

Funding source Self-funded

Legal matters involved (if

applicable)

N/A

Disclosure date of the

announcement on the Board’s

approval of investments in

derivative financial

instruments (if any)

7 March 2020

28 March 2020

Disclosure date of the

announcement on the general

meeting’s approval of

investments in derivative

financial instruments (if any)

18 April 2020

Risk analysis and control

measures in respect of

derivative investments held in

the Reporting Period

(including but not limited to

market risk liquidity risk

credit risk operational risk

The Company’s conduction of hedging business is not aimed at speculation but mainly to

effectively avoid the impact of raw material price fluctuation on the Company. However there will

be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures

market changes greatly resulting in transaction losses; 2. Capital risk: capital risk may be

correspondingly brought because the futures trading adopts margin and marking-to-market system;

3. Internal control risk: there may be risks due to imperfect internal control system for the high

expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to

incomplete computer systems. The Company adopts following risk control measures: 1. Matching

legal risk etc.) the hedging business with the Company’s production and operation so as to maximally reduce the

price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business

strictly control the hedging fund scale and reasonably plan and use margins; 3. Management System

for Commodity Futures Trading is formulated based on actual situation of the Company and

pursuant to governing stipulations of Guidelines for Standard Operation of Companies Listed in

Shenzhen Stock Exchange which have made clearly stipulations about the amount variety scope

approval authority internal approval procedures responsible departments and persons information

isolation measures internal risk report and related solution process information disclosure etc.regarding hedging business. The Company will strictly control all sectors in accordance with

Management System for Commodity Futures Trading; 4. Establishing qualified systems for

transaction communication and information services so as to guarantee the normal operation of the

transaction system and smooth proceeding of transactions. When a wrong order occurs

corresponding measures should be timely taken to reduce losses.

Changes in market prices or

fair value of derivative

investments in the Reporting

Period (fair value analysis

should include measurement

method and related

assumptions and parameters)

The value of the Company’s future contracts changed according to the contract prices declared by

the future exchange which were broadly representative. And the fair value of the Company’s future

contracts was executed in strict compliance with the future exchange’s settlement methods.Significant changes in

accounting policies and

specific accounting principles

adopted for derivative

investments in the Reporting

Period compared to the last

reporting period

None

Opinion of independent

directors on derivative

investments and risk control

1. Opinion of independent directors on the Proposal on 2020 Futures Hedging Plan of Jingliang

(Tianjin) Grain and Oil Industry Co. Ltd. and Beijing Jingliang Oils Co. Ltd.: after check the

Company carried out the business of futures hedging based on normal production and management

relying on specific business. Under the premise of ensuring normal production and management the

Company used futures hedging tools to avoid the adverse impacts on the Company’s operation from

the large price fluctuation of raw materials and products which is not detrimental to the interests of

the Company and all other shareholders especially minority shareholders. At the same time the

Company formulated relevant systems and specific operating instructions for the business of

futures hedging through strengthening internal control and implementing risk prevention measures.It is agreed that the Company and its subsidiaries will continue to conduct futures hedging business

according to the relevant regulations.

2. Opinion of independent directors on the Proposal on Conducting Foreign Exchange Derivatives

Trading Business by the Company and Majority-owned Subsidiaries: after check the relevant

decision-making procedures for the Company and its majority-owned subsidiaries to conduct

foreign exchange derivatives trading business are in compliance with relevant national laws

regulations and the governing provisions of the Articles of Association after verification. Based on

normal production and operation the Company uses foreign exchange derivatives instruments to

reduce exchange rate risks and finance costs and control business risks. There is no harm to the

interests of the Company and all other shareholders especially minority shareholders. It is agreed

that the Company and its majority-owned subsidiaries will conduct foreign exchange derivative

trading business within the consideration amount and submit to the general meeting for

deliberation.V Progress of Projects Financed with Raised Funds

√ Applicable □ Not applicable

The Company’s projects financed with raised funds are the intermediary agency fee and transaction tax and fee

project the technological R&D centre project and the channel and brand development project. The intermediary

agency fee and transaction tax and fee project has been completed while the other two projects are in a stage of

adjustment.

VI 2020 Annual Operating Performance Forecast

Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit as well as

explanation of why:

□ Applicable √ Not applicable

VII Significant Contracts Arising from the Company’s Ordinary Course of Business

□ Applicable √ Not applicable

VIII Cash Entrusted for Wealth Management

√ Applicable □ Not applicable

Unit: RMB’0000

Type Funding source Amount Undue amount

Unrecovered overdue

amount

Bank’s wealth

management product

Self-funded 35330 8830 0

Broker’s wealth

management product

Idle raised funds 38700 28000 0

Total 74030 36830 0

High-risk wealth management transactions with a significant single amount or with low security low liquidity or

no principal protection:

√ Applicable □ Not applicable

Unit: RMB’0000

Trustee

Type

trustee

Type

wealt

mana

geme

produ

Princi

pal

Fundi

source

Start

date

End

date

Invest

ment

with

princi

pal

Way

payba

Refere

nce

annual

ized

rate of

return

Expect

return

(if

any)

Actual

gain/lo

ss in

the

Report

ing

Period

Recov

ery of

the

gain/lo

ss in

the

Report

ing

Period

Impair

ment

allowa

nce (if

any)

Throu

prescri

bed

proced

ures

or not

Any

plan

for

further

transa

ctions

Summ

ary

and

index

infor

matio

n (if

any)

China

Securitie

s Co.

Ltd.

Broker

Inco

certifi

cate

28000

Idle

raised

funds

Augus

t 2020

Februa

2020

contra

ctually

agreed

Payba

ck of

princi

pal

with

interes

t upon

maturi

2.95% 0 0

Unred

eemed

Yes Yes

Anno

uncem

ent

No.

2020-

049

www.cninfo.com.c

Total 28000 -- -- -- -- -- -- 0 0 -- -- -- --

Wealth management transactions with possible impairments including an expectedly unrecoverable principal:

□ Applicable √ Not applicable

IX Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable

No such cases in the Reporting Period.X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related

Parties for Non-Operating Purposes

□ Applicable √ Not applicable

No such cases in the Reporting Period.XI Communications with the Investment Community such as Researches Inquiries and

Interviews Received during the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.Part IV Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by Hainan Jingliang Holdings Co. Ltd.

30 September 2020

Unit: RMB

Item 30 September 2020 31 December 2019

Current assets:

Monetary assets 720149456.50 557168512.39

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 121300000.00 161300000.00

Derivative financial assets 273952800.00 88792254.00

Notes receivable

Accounts receivable 89221674.32 80743986.81

Receivables financing

Prepayments 636843733.07 138379800.10

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 19439812.76 19220097.34

Including: Interest receivable 1854761.12 3927438.90

Dividends receivable

Financial assets purchased under

resale agreements

Inventories 1308878985.35 1412755661.65

Contract assets

Assets held for sale

Current portion of non-current assets

Other current assets 668986307.59 560297233.13

Total current assets 3838772769.59 3018657545.42

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 208701333.79 198301333.79

Investments in other equity

instruments

20000000.00 20000000.00

Other non-current financial assets

Investment property 22927669.32 31781350.74

Fixed assets 1143126883.39 1210450340.22

Construction in progress 17745104.13 17876177.78

Productive living assets

Oil and gas assets

Right-of-use assets

Intangible assets 357094187.52 368170434.38

Development costs

Goodwill 191394422.51 191394422.51

Long-term prepaid expense 20325416.09 21026628.97

Deferred income tax assets 7277974.72 2603066.38

Other non-current assets 230000000.00 151005300.00

Total non-current assets 2218592991.47 2212609054.77

Total assets 6057365761.06 5231266600.19

Current liabilities:

Short-term borrowings 2070991982.00 1329238701.60

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 68346520.70

Accounts payable 151338619.76 130568413.43

Advances from customers 481119461.41

Contract liabilities 427501912.35

Financial assets sold under

repurchase agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of

securities

Payables for underwriting of

securities

Employee benefits payable 11721759.04 25192583.58

Taxes and levies payable 37554687.45 47842621.41

Other payables 124220692.02 96171396.23

Including: Interest payable 21686584.31 24604524.69

Dividends payable 11013302.88 11013302.88

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

liabilities

Other current liabilities 28340190.00

Total current liabilities 2920016363.32 2110133177.66

Non-current liabilities:

Insurance contract reserve

Long-term borrowings

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities

Long-term payables

Long-term employee benefits

payable

5720716.87 5730662.87

Provisions

Deferred income 70249608.46 71518169.27

Deferred income tax liabilities 45560808.12 52788949.62

Other non-current liabilities

Total non-current liabilities 121531133.45 130037781.76

Total liabilities 3041547496.77 2240170959.42

Owners’ equity:

Share capital 726950251.00 685790364.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 1679833419.67 1595672048.19

Less: Treasury stock

Other comprehensive income 81672.08 267628.14

Specific reserve

Surplus reserves 122122436.98 122122436.98

General reserve

Retained earnings 116844632.70 2186806.56

Total equity attributable to owners of

the Company as the parent

2645832412.43 2406039283.87

Non-controlling interests 369985851.86 585056356.90

Total owners’ equity 3015818264.29 2991095640.77

Total liabilities and owners’ equity 6057365761.06 5231266600.19

Legal representative: Li Shaoling Head for financial affairs: Guan Ying

Head of the financial department: Liu Quanli

2. Balance Sheet of the Company as the Parent

Unit: RMB

Item 30 September 2020 31 December 2019

Current assets:

Monetary assets 17409976.16 5606837.37

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 42510.00 42510.00

Receivables financing

Prepayments 467482.14 532843.92

Other receivables 19277199.41 12612756.48

Including: Interest receivable

Dividends receivable

Inventories 4824035.45 4824035.45

Contract assets

Assets held for sale

Current portion of non-current assets

Other current assets 2410159.49 2114765.22

Total current assets 44431362.65 25733748.44

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 2626437846.24 2377420527.10

Investments in other equity

instruments

20000000.00 20000000.00

Other non-current financial assets

Investment property 5249530.28 5476357.73

Fixed assets 2912507.86 3028013.69

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets

Intangible assets 22350.00 94800.66

Development costs

Goodwill

Long-term prepaid expense 15723.16 86477.92

Deferred income tax assets

Other non-current assets

Total non-current assets 2654637957.54 2406106177.10

Total assets 2699069320.19 2431839925.54

Current liabilities:

Short-term borrowings

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable

Advances from customers 38896.41

Contract liabilities 38896.41

Employee benefits payable 275537.37 480445.28

Taxes and levies payable 1017410.80 1709752.97

Other payables 339863112.10 503550996.94

Including: Interest payable 21082795.47 21082795.47

Dividends payable 3213302.88 3213302.88

Liabilities directly associated with

assets held for sale

Current portion of non-current

liabilities

Other current liabilities

Total current liabilities 341194956.68 505780091.60

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities

Long-term payables

Long-term employee benefits

payable

Provisions

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities 341194956.68 505780091.60

Owners’ equity:

Share capital 726950251.00 685790364.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 2381244900.85 2173387468.71

Less: Treasury stock

Other comprehensive income

Specific reserve

Surplus reserves 109487064.39 109487064.39

Retained earnings -859807852.73 -1042605063.16

Total owners’ equity 2357874363.51 1926059833.94

Total liabilities and owners’ equity 2699069320.19 2431839925.54

3. Consolidated Income Statement for Q3

Unit: RMB

Item Q3 2020 Q3 2019

1. Revenues 1928342701.75 1824886529.92

Including: Operating revenue 1928342701.75 1824886529.92

Interest income

Insurance premium income

Fee and commission

income

2. Costs and expenses 1896429445.83 1764674515.46

Including: Cost of sales 1799452877.93 1652610736.57

Interest expense

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 5605278.41 5490323.70

Selling expense 43982894.87 50699252.02

Administrative expense 43872344.26 47487578.68

R&D expense 3662915.86 703632.42

Finance costs -146865.50 7682992.07

Including: Interest

expense

1944727.32 13489855.34

Interest

income

2266888.66 5935578.64

Add: Other income 4209110.12 1908875.68

Return on investment (“-” for loss) 9660149.23 1089429.46

Including: Share of profit or loss

of joint ventures and associates

3457423.01

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

18961468.85 -512728.81

Credit impairment loss (“-” for

loss)

Asset impairment loss (“-” for loss) 40000.00 1193.30

Asset disposal income (“-” for

loss)

-30020.88 -733109.31

3. Operating profit (“-” for loss) 64753963.24 61965674.78

Add: Non-operating income 162376.14 539843.22

Less: Non-operating expense 151689.36 1127254.62

4. Gross profit (“-” for loss) 64764650.02 61378263.38

Less: Income tax expense 19076844.38 15853529.76

5. Net profit (“-” for net loss) 45687805.64 45524733.62

5.1 By operating continuity

5.1.1 Net profit from continuing

operations (“-” for net loss)

45687805.64 45524733.62

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

owners of the Company as the parent

40894930.95 33840967.80

5.2.1 Net profit attributable to

non-controlling interests

4792874.69 11683765.82

6. Other comprehensive income net of

tax

-292687.90 190287.74

Attributable to owners of the Company

as the parent

-292687.90 190287.74

6.1 Items that will not be

reclassified to profit or loss

6.1.1 Changes caused by

remeasurements on defined benefit

schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

investments in other equity instruments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

profit or loss

-292687.90 190287.74

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign

currency-denominated financial

statements

-292687.90 190287.74

6.2.7 Other

Attributable to non-controlling

interests

7. Total comprehensive income 45395117.74 45715021.36

Attributable to owners of the Company

as the parent

40602243.05 34031255.54

Attributable to non-controlling

interests

4792874.69 11683765.82

8. Earnings per share

8.1 Basic earnings per share 0.06 0.05

8.2 Diluted earnings per share 0.06 0.05

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

the combinations was RMB with the amount for the same period of last year being RMB .Legal representative: Li Shaoling Head for financial affairs: Guan Ying

Head of the financial department: Liu Quanli

4. Income Statement of the Company as the Parent for Q3

Unit: RMB

Item Q3 2020 Q3 2019

1. Operating revenue 657313.52 0.00

Less: Cost of sales 0.00 0.00

Taxes and levies 98534.78 33908.40

Selling expense

Administrative expense 10108313.15 10567161.77

R&D expense

Finance costs -7460.77 4064326.05

Including: Interest expense 4067234.62

Interest income 8657.77 3054.57

Add: Other income

Return on investment (“-” for

loss)

206002223.87

Including: Share of profit or

loss of joint ventures and associates

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

Credit impairment loss (“-” for

loss)

Asset impairment loss (“-” for

loss)

Asset disposal income (“-” for

loss)

2. Operating profit (“-” for loss) 196460150.23 -14665396.22

Add: Non-operating income 29508.17

Less: Non-operating expense

3. Gross profit (“-” for loss) 196489658.40 -14665396.22

Less: Income tax expense

4. Net profit (“-” for net loss) 196489658.40 -14665396.22

4.1 Net profit from continuing

operations (“-” for net loss)

196489658.40 -14665396.22

4.2 Net profit from discontinued

operations (“-” for net loss)

5. Other comprehensive income net of

tax

5.1 Items that will not be reclassified

to profit or loss

5.1.1 Changes caused by

remeasurements on defined benefit

schemes

5.1.2 Other comprehensive income

that will not be reclassified to profit or

loss under the equity method

5.1.3 Changes in the fair value of

investments in other equity instruments

5.1.4 Changes in the fair value

arising from changes in own credit risk

5.1.5 Other

5.2 Items that will be reclassified to

profit or loss

5.2.1 Other comprehensive income

that will be reclassified to profit or loss

under the equity method

5.2.2 Changes in the fair value of

other debt investments

5.2.3 Other comprehensive income

arising from the reclassification of

financial assets

5.2.4 Credit impairment allowance

for other debt investments

5.2.5 Reserve for cash flow hedges

5.2.6 Differences arising from the

translation of foreign

currency-denominated financial

statements

5.2.7 Other

6. Total comprehensive income 196489658.40 -14665396.22

7. Earnings per share

7.1 Basic earnings per share

7.2 Diluted earnings per share

5. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2020 Q1~Q3 2019

1. Revenues 5679115769.38 5108164255.31

Including: Operating revenue 5679115769.38 5108164255.31

Interest income

Insurance premium income

Fee and commission

income

2. Costs and expenses 5471569621.49 5018488742.07

Including: Cost of sales 5155654135.99 4693289477.71

Interest expense

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 14256389.78 17090887.34

Selling expense 150624014.01 151930390.29

Administrative expense 121904630.55 128785807.05

R&D expense 6466632.88 1234698.42

Finance costs 22663818.28 26157481.26

Including: Interest

expense

18919769.38 36471148.41

Interest

income

7640376.87 10056207.22

Add: Other income 9256058.96 11779973.90

Return on investment (“-” for loss) 26356075.22 10268731.55

Including: Share of profit or loss

of joint ventures and associates

10405201.69 4824933.21

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

-57915198.40 25645552.41

Credit impairment loss (“-” for

loss)

Asset impairment loss (“-” for loss) 40000.00 -196502.26

Asset disposal income (“-” for

loss)

-30020.88 11264409.09

3. Operating profit (“-” for loss) 185253062.79 148437677.93

Add: Non-operating income 851815.96 2256286.81

Less: Non-operating expense 1570361.13 1949673.24

4. Gross profit (“-” for loss) 184534517.62 148744291.50

Less: Income tax expense 43538676.24 37975305.88

5. Net profit (“-” for net loss) 140995841.38 110768985.62

5.1 By operating continuity

5.1.1 Net profit from continuing

operations (“-” for net loss)

140995841.38 110768985.62

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

owners of the Company as the parent

114657826.14 85351872.21

5.2.1 Net profit attributable to

non-controlling interests

26338015.24 25417113.41

6. Other comprehensive income net of

tax

-185956.06 241232.26

Attributable to owners of the Company

as the parent

-185956.06 241232.26

6.1 Items that will not be

reclassified to profit or loss

6.1.1 Changes caused by

remeasurements on defined benefit

schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

investments in other equity instruments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

profit or loss

-185956.06 241232.26

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign

currency-denominated financial

statements

-185956.06 241232.26

6.2.7 Other

Attributable to non-controlling

interests

7. Total comprehensive income 140809885.32 111010217.88

Attributable to owners of the Company

as the parent

114471870.08 85593104.47

Attributable to non-controlling

interests

26338015.24 25417113.41

8. Earnings per share

8.1 Basic earnings per share 0.16 0.12

8.2 Diluted earnings per share 0.16 0.12

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

the combinations was RMB with the amount for the same period of last year being RMB .Legal representative: Li Shaoling Head for financial affairs: Guan Ying

Head of the financial department: Liu Quanli

6. Income Statement of the Company as the Parent for Q1~Q3

Unit: RMB

Item Q1~Q3 2020 Q1~Q3 2019

1. Operating revenue 1033922.69 0.00

Less: Cost of sales 0.00 0.00

Taxes and levies 101234.78 102985.20

Selling expense

Administrative expense 23632368.27 24078567.37

R&D expense

Finance costs -12505.93 11629290.32

Including: Interest expense 11638818.11

Interest income 16908.21 14138.40

Add: Other income 50313.02

Return on investment (“-” for

loss)

206400562.23

Including: Share of profit or

loss of joint ventures and associates

Income from the

derecognition of financial assets at

amortized cost (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

Credit impairment loss (“-” for

loss)

Asset impairment loss (“-” for

loss)

-4344.16

Asset disposal income (“-” for

loss)

2. Operating profit (“-” for loss) 183763700.82 -35815187.05

Add: Non-operating income 33509.61

Less: Non-operating expense 1000000.00 469440.00

3. Gross profit (“-” for loss) 182797210.43 -36284627.05

Less: Income tax expense

4. Net profit (“-” for net loss) 182797210.43 -36284627.05

4.1 Net profit from continuing

operations (“-” for net loss)

182797210.43 -36284627.05

4.2 Net profit from discontinued

operations (“-” for net loss)

5. Other comprehensive income net of

tax

5.1 Items that will not be reclassified

to profit or loss

5.1.1 Changes caused by

remeasurements on defined benefit

schemes

5.1.2 Other comprehensive income

that will not be reclassified to profit or

loss under the equity method

5.1.3 Changes in the fair value of

investments in other equity instruments

5.1.4 Changes in the fair value

arising from changes in own credit risk

5.1.5 Other

5.2 Items that will be reclassified to

profit or loss

5.2.1 Other comprehensive income

that will be reclassified to profit or loss

under the equity method

5.2.2 Changes in the fair value of

other debt investments

5.2.3 Other comprehensive income

arising from the reclassification of

financial assets

5.2.4 Credit impairment allowance

for other debt investments

5.2.5 Reserve for cash flow hedges

5.2.6 Differences arising from the

translation of foreign

currency-denominated financial

statements

5.2.7 Other

6. Total comprehensive income 182797210.43 -36284627.05

7. Earnings per share

7.1 Basic earnings per share

7.2 Diluted earnings per share

7. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2020 Q1~Q3 2019

1. Cash flows from operating activities:

Proceeds from sale of commodities

and rendering of services

6130501668.95 5561175595.39

Net increase in customer deposits and

deposits from other banks and financial

institutions

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest fees and commissions

received

Net increase in loans from other

banks and financial institutions

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax and levy rebates 13983951.32 8511133.41

Cash generated from other operating

activities

981039681.44 1018233943.12

Subtotal of cash generated from

operating activities

7125525301.71 6587920671.92

Payments for commodities and

services

5873912623.39 4955576528.87

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and other banks and financial

institutions

Payments for claims on original

insurance contracts

Net increase in loans to other banks

and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 231484488.18 225542724.31

Taxes and levies paid 141181130.25 113872002.20

Cash used in other operating

activities

965806871.50 846183684.46

Subtotal of cash used in operating

activities

7212385113.32 6141174939.84

Net cash generated from/used in

operating activities

-86859811.61 446745732.08

2. Cash flows from investing activities:

Proceeds from disinvestment 2021317255.39 1451236691.57

Return on investment 13741859.72 24608980.29

Net proceeds from the disposal of

fixed assets intangible assets and other

long-lived assets

128368.58 69211.68

Net proceeds from the disposal of

subsidiaries and other business units

5000000.00

Cash generated from other investing

activities

Subtotal of cash generated from

investing activities

2040187483.69 1475914883.54

Payments for the acquisition of fixed

assets intangible assets and other

long-lived assets

22088912.56 41645608.65

Payments for investments 2351915689.04 1921580563.05

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

104730266.66

Cash used in other investing

activities

578813.60 752.21

Subtotal of cash used in investing

activities

2479313681.86 1963226923.91

Net cash generated from/used in

investing activities

-439126198.17 -487312040.37

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to subsidiaries

Borrowings raised 2371670609.65 1633175871.20

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities

2371670609.65 1633175871.20

Repayment of borrowings 1639317329.25 1929842758.45

Interest and dividends paid 34506528.74 75821378.17

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing

activities

Subtotal of cash used in financing

activities

1673823857.99 2005664136.62

Net cash generated from/used in

financing activities

697846751.66 -372488265.42

4. Effect of foreign exchange rates

changes on cash and cash equivalents

-6809062.59 3782563.49

5. Net increase in cash and cash

equivalents

165051679.29 -409272010.22

Add: Cash and cash equivalents

beginning of the period

555097777.21 867870016.78

6. Cash and cash equivalents end of the

period

720149456.50 458598006.56

8. Cash Flow Statement of the Company as the Parent for Q1~Q3

Unit: RMB

Item Q1~Q3 2020 Q1~Q3 2019

1. Cash flows from operating activities:

Proceeds from sale of commodities

and rendering of services

Tax and levy rebates 200.00 1800.00

Cash generated from other operating

activities

57136167.69 33566371.69

Subtotal of cash generated from

operating activities

57136367.69 33568171.69

Payments for commodities and

services

26731.99 25453.09

Cash paid to and for employees 16823531.12 17908969.70

Taxes and levies paid 350168.29 105317.14

Cash used in other operating

activities

20396962.02 52051442.98

Subtotal of cash used in operating

activities

37597393.42 70091182.91

Net cash generated from/used in

operating activities

19538974.27 -36523011.22

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment 205893687.32

Net proceeds from the disposal of

fixed assets intangible assets and other

long-lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

investing activities

205893687.32 0.00

Payments for the acquisition of fixed

assets intangible assets and other

long-lived assets

158787.62 187564.80

Payments for investments 1780563.05

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing

activities

Subtotal of cash used in investing

activities

158787.62 1968127.85

Net cash generated from/used in

investing activities

205734899.70 -1968127.85

3. Cash flows from financing activities:

Capital contributions received

Borrowings raised 4000000.00 28700000.00

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities

4000000.00 28700000.00

Repayment of borrowings 215400000.00

Interest and dividends paid

Cash used in other financing

activities

Subtotal of cash used in financing

activities

215400000.00

Net cash generated from/used in

financing activities

-211400000.00 28700000.00

4. Effect of foreign exchange rates

changes on cash and cash equivalents

5. Net increase in cash and cash

equivalents

13873873.97 -9791139.07

Add: Cash and cash equivalents

beginning of the period

3536102.19 13597659.66

6. Cash and cash equivalents end of the

period

17409976.16 3806520.59

II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the New

Accounting Standards Governing Revenue and Leases

□ Applicable √ Not applicable

2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020

of the New Accounting Standards Governing Revenue and Leases

□ Applicable √ Not applicable

III Independent Auditor’s Report

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

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

24 October 2020

行情