HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL REPORT 2021
August 2021
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL REPORT 2021
Part I Important Notes
This Summary is based on the full text of the Semi-annual Report of Hainan Jingliang Holdings Co. Ltd. (together
with its consolidated subsidiaries the “Company” except where the context otherwise requires). In order for a full
understanding of the Company’s operating results financial condition and future development plans investors
should carefully read the aforesaid full text which has been disclosed together with this Summary on the media
designated by the China Securities Regulatory Commission (the “CSRC”).All the Company’s Directors have attended the Board meeting for the review of this Report and its summary.This Summary has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
Part II Key Corporate Information
1. Stock Profile
Stock name JLKG JL-B Stock code 000505 200505
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Guan Ying Gao Deqiu
15/F Jing Liang Building NO. 16 East Third 15/F Jing Liang Building NO. 16 East Third
Office address Ring Middle Road Chaoyang District Ring Middle Road Chaoyang District
Beijing Beijing
Tel. 010-51672130 010-51672029
E-mail address 1124387865@qq.com gaodeqiu_jl@163.com
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
□ Yes √ No
H1 2021 H1 2020 Change (%)
Operating revenue (RMB) 5328246835.83 3750773067.63 42.06%
Net profit attributable to the listed
88328197.91 73762895.19 19.75%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 83273337.40 67995189.95 22.47%
gains and losses (RMB)
Net cash generated from/used in operating
277850445.45 187095820.76 48.51%
activities (RMB)
Basic earnings per share (RMB/share) 0.12 0.11 9.09%
Diluted earnings per share (RMB/share) 0.12 0.11 9.09%
Weighted average return on equity (%) 3.21% 3.02% 0.19%
30 June 2021 31 December 2020 Change (%)
Total assets (RMB) 6143767415.63 5695504493.73 7.87%
Equity attributable to the listed company’s
2798819294.02 2710571543.53 3.26%
shareholders (RMB)
3. Shareholders and Their Shares at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders with
64713 0
shareholders resumed voting rights (if
any)
Top 10 shareholders
Pledged marked or
Nature of Shareholding Number of
Name of shareholder Restricted shares frozen shares
shareholder percentage shares
Status Shares
BEIJING GRAIN GROUP State-owned
39.68% 288439561 0
CO. LTD. legal person
BEIJING STATE-OWNED
State-owned
CAPITAL OPERATION AND 6.67% 48510460 0
legal person
MANAGEMENT CENTER
Domestic
WANG YUECHENG 5.66% 41159887 41159887
natural person
Foreign natural
LI SHERYN ZHAN MING 1.23% 8932700 0
person
GOLD BUFFALO
RUNYING (TIANJIN)
EQUITY INVESTMENT
FUND MANAGEMENT
Other 0.40% 2889803 0
CO. LTD.—GOLD
BUFFALO RUNYING
(TIANJIN) EQUITY
INVESTMENT FUND (L.P.)
Domestic
MEI JIANYING 0.36% 2604203 0
natural person
Domestic
ZHANG XIAOXIA 0.27% 1949250 0
natural person
Domestic
WANG XIAOXING 0.23% 1691200 0
natural person
Domestic
TAN WENQIONG 0.21% 1550500 0
natural person
ORIENT SECURITIES Foreign legal 0.18% 1330400 0
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(HONG KONG) LIMITED person
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
Connected or acting-in-concert parties among shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy
shareholders above General Manager of the Company. Apart from that the Company does not know
whether there are any other related parties or acting-in-concert parties among the
top 10 shareholders.Shareholder Wang Xiaoxing holds 1691200 shares in the Company through his
Shareholders conducting margin trading (if any)
account of collateral securities for margin trading in Soochow Securities Co. Ltd.4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.5. Numbers of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.6. Outstanding Bonds at the Date when this Report Was Authorized for Issue
□ Applicable √ Not applicable
Part III Significant Events
2021 marks the commencement of China’s “14th Five-Year Plan”. Against that background the Company closely
followed the general principle of seeking progress while keeping performance stable seized market opportunities
and adhered to the right path of innovation. As a result the Company saw sound production and operation effective
anti-pandemic actions and a stabilizing and improving development momentum. For the Reporting Period the
Company recorded operating revenue of RMB5.328 billion up 42.06% year on year; a net profit attributable to its
shareholders of RMB88.3282 million up 19.75% year on year; and earnings per share of RMB0.12/share up 9.09%
year on year.No significant changes occurred to the Company’s operations in the Reporting Period. For further information see
the full Semi-annual Report 2021.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021Part IV. Financial statements (Unaudited)）
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Unit: Yuan
Program June 30th 2021 December 31st 2020
Current Assets:
Monetary Capital 779954595.57 335466169.61
Deposit Reservation for Balance
Lending Funds
Transactional Monetary Assets 363000000.00 63478071.73
Derivative Financial Assets 75597717.39
Notes Receivable 456565.85
Account Receivable 96128277.06 92245667.60
Receivables Financing
Advance Payment 580667503.17 282343218.05
Receivable Premium
Reinsurance Accounts Receivable
Provision of Cession Receivable
Other Receivables 88750805.46 541905656.97
Including: The Interest Receivable
Dividend Receivable
Redemptory Monetary Capital for
Sale
Inventory 1599520851.27 1225083742.26
Contract Assets
Holding Assets to be Sold.Non-Current Assets Expiring within
One Year
Other Current Assets 232671032.39 845450678.36
Total Current Assets 3816290782.31 3386429770.43
Non-current Assets:
offer loans and make advance
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 219058997.13 217762487.79
Investment in other equity 20000000.00 20000000.00
instruments1
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Other non-current financial assets
Investment Property 21737164.27 22560212.50
Fixed Assets 1088582627.48 1131143854.07
Construction in progress 35262660.08 28458413.67
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset 2472838.11
Intangible Assets 346717866.88 354139335.32
Development Expenditure
Goodwill 191394422.51 191394422.51
Long-term Unamortized Expenses 20319161.45 20529601.50
Deferred Tax Asset 15178448.67 3346814.27
Other Non-current Assets 366752446.74 319739581.67
Non-current Assets in Total 2327476633.32 2309074723.30
Total Assets 6143767415.63 5695504493.73
Current Liability:
Short-term Borrowing 1722856775.38 1497414079.05
Borrowing from the Central Bank
Borrowing Funds
Transactional Monetary Liabilities
Derivative Financial Liabilities 371219136.84
Notes Payable
Accounts Payable 134164851.58 75384075.39
Account Collected in Advance 1462678.11 1087874.02
Contract Liabilities 533807058.54 346874260.90
Financial Assets Sold for Repurchase
Deposits from Customers and
Interbank
Receivings from Vicariously Traded
Securities
Receivings from Vicariously Sold
Securities
Employee Pay Payable 13709981.41 33345136.94
Tax Payable 65516363.75 50884214.64
Other payables 113823953.59 72292881.24
Including: The Payable Interest 21082795.47 21082795.47
Dividends Payable 11013302.88 11013302.88
Handling Charges and Commissions
Payable
Dividend Payable for Reinsurance
Holding Liabilities to Be Sold2
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Non-Current Liabilities Expiring
within One Year
Other current liabilities 132051254.57 8319696.79
Total Current Liabilities 2717392916.93 2456821355.81
Non-Current Liabilities:
Provision for Insurance Contracts
Long-Term Loan 71000000.00
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation 2425606.75
Long-term account payable
Long-term employee pay payable 5677134.00 5677134.00
Anticipation liabilities
Deferred Revenue 67770476.00 68716699.34
Deferred Income Tax Liabilities 81969420.28 65115801.22
Other Non-current Liabilities
Total Non-current Liabilities 228842637.03 139509634.56
Total Liabilities 2946235553.96 2596330990.37
Owners Equity:
Capital stock 726950251.00 726950251.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 1674828350.95 1674828350.95
Minus: Treasury Stock
Other Comprehensive Income -443706.08 -363258.66
Reasonable Reserve
Surplus reserves 122122436.98 122122436.98
Generic Risk Reserve
Undistributed profit 275361961.17 187033763.26
Total equity attributable to the 2798819294.02 2710571543.53
shareholders of parent Company
Minority Equity 398712567.65 388601959.83
Total owners' equity 3197531861.67 3099173503.36
Total liabilities and owner's equity 6143767415.63 5695504493.733
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
2. Balance sheet of parent Company
Unit: Yuan
Program June 30th 2021 December 31st 2020
Current Assets:
Monetary Capital 732956.01 1523322.79
Transactional Monetary Assets
Derivative Financial Assets
Notes Receivable
Account Receivable 11784.00 11784.00
Receivables Financing
Advance Payment 416276.56 423679.12
Other Receivables 100008.26 103341.26
Including: The Interest Receivable
Dividend Receivable
Inventory 3775954.85 3775954.85
Contract Assets
Holding Assets to be Sold.Non-Current Assets Expiring within
One Year
Other Current Assets 2458717.81 2445772.47
Total Current Assets 7495697.49 8283854.49
Non-current Assets:
Lending Investments
Other Investment on Bonds
Long-term Receivables
Long-term Equity Investment 2626437846.24 2626437846.24
Investment in other equity 20000000.00 20000000.00
instruments
Other non-current financial assets
Investment Property 6051420.47 6222001.73
Fixed Assets 2381625.62 2809083.51
Construction in progress
Productive Biological Asset
Oil and Gas Assets
Right-of-Use Asset
Intangible Assets 136855.34 209185.10
Development Expenditure
Goodwill
Long-term Unamortized Expenses
Deferred Tax Asset
Other Non-current Assets4
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Non-current Assets in Total 2655007747.67 2655678116.58
Total Assets 2662503445.16 2663961971.07
Current Liability:
Short-term Borrowing
Transactional Monetary Liabilities
Derivative Financial Liabilities
Notes Payable
Accounts Payable
Account Collected in Advance 38896.41 38896.41
Contract Liabilities
Employee Pay Payable 188359.24 341902.14
Tax Payable 960020.24 1037881.62
Other payables 310664277.93 309067618.99
Including: The Payable Interest 21082795.47 21082795.47
Dividends Payable 3213302.88 3213302.88
Holding Liabilities to Be Sold
Non-Current Liabilities Expiring
within One Year
Other current liabilities
Total Current Liabilities 311851553.82 310486299.16
Non-Current Liabilities:
Long-Term Loan
Bonds payable
Including: Preference Shares
Perpetual Capital Securities
Lease Obligation
Long-term account payable
Long-term employee pay payable
Anticipation liabilities
Deferred Revenue
Deferred Income Tax Liabilities
Other Non-current Liabilities
Total Non-current Liabilities
Total Liabilities 311851553.82 310486299.16
Owners Equity:
Capital stock 726950251.00 726950251.00
Other equity instruments
Including: Preference Shares
Perpetual Capital Securities
Capital reserve 2379144900.84 2379144900.84
Minus: Treasury Stock
Other Comprehensive Income
Reasonable Reserve
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Surplus reserves 109487064.39 109487064.39
Undistributed profit -864930324.89 -862106544.32
Total owners' equity 2350651891.34 2353475671.91
Total liabilities and owner's equity 2662503445.16 2663961971.07
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
3. Consolidated Income Statement
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Gross Revenue 5328246835.83 3750773067.63
Including: operating income 5328246835.83 3750773067.63
Interest Income
Earned Premium
Handling charges and commissions
income
II. Total Operating Cost 5293177718.70 3575140175.66
Operating costs 5099544988.41 3356201258.06
Interest Expenditure
Handling Charges and
Commissions Expenditure
Surrender Value
Net Payments for Insurance Claims
Net withdrawal of reserve fund for
insurance contracts
Bond Insurance Expense
Reinsurance Expenses
Tax and Surcharges 11363903.89 8651111.37
Selling Expenses 76677576.52 106641119.14
Administrative Expenses 84799700.54 78032286.29
Research and Development 5170755.15 2803717.02
Expenditure
Financial Expenses 15620794.19 22810683.78
Including: The Interest Expense 19854113.81 16975042.06
Interest Income 5408203.94 5373488.21
plus: other income 6426061.54 5046948.84
Investment income ("-" refers to 31246898.08 16695925.99
losses)
Of which: Income from investment 25976509.34 6947778.68
in joint ventures
The financial assets measured at
amortized cost terminates the recognition
of income ( "-" refers to losses)
Exchange Earning ( "-" refers to
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
losses)
Net Open Hedging Income ( "-"
refers to losses)
Income of Fair Value Changes ( "-" 61697730.47 -76876667.25
refers to losses)
Credit Loss ( "-" refers to losses)
Assets Impairment Loss ( "-" refers
to losses)
Assets Disposal Income ( "-" refers -58685.83
to losses)
III. Operating Profit ( "-" refers to losses) 134381121.39 120499099.55
plus: Non-operating income 1279113.80 689439.82
minus: Non-operating expenses 262695.32 1418671.77
IV. Total Profit ( "-" refers to total losses) 135397539.87 119769867.60
minus: income tax expense 36958734.14 24461831.86
V. Net Profit ( "-" refers to net losses) 98438805.73 95308035.74
i. Classified Based on Business
Continuity
1. Net income from continuing 98438805.73 95308035.74
operation ( "-" refers to net losses)
2. Net income from discontinuing
operation ( "-" refers to net losses)
ii. Classified Based on the Attribution of
the Ownership
1. Net income attributed to 88328197.91 73762895.19
shareholders of parent Company
2. Minority Interest Income 10110607.82 21545140.55
VI. Net of Tax of Other Comprehensive -80447.42 106731.84
Income
Net of tax of other comprehensive -80447.42 106731.84
income attributed to shareholders of
parent Company
i. Other Comprehensive Income That
Can't Reclassify Income and Loss
1. Re-measure the change value of
defined benefit pension plans
2. Other comprehensive income
that can not reverse the income and
loss under the equity law.3. Investment of other equity
instruments in the fair value
changes.4. The fair value changes of credit
risk of the Company
5. Others
ii. Other Comprehensive Income That -80447.42 106731.84
Can Be Re-classified into the Income and
Loss
1. Other comprehensive income
that can reverse the income and
loss under the equity law.2. Investment of other obligatory
rights in the fair value changes.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
3. Financial assets that can be re-
classified into other comprehensive
income
4. Credit impairment reserve for
other creditor's rights investment
5. Cash Flow Hedging Reserve
6. The Balance of Conversion of -80447.42 106731.84
Foreign Currency Financial
Statements
7. Others
Net of tax of other comprehensive
income attributed to minority shareholder
VII. Total Comprehensive Income 98358358.31 95414767.58
Total comprehensive income attributed 88247750.49 73869627.03
to shareholders of parent Company
Total comprehensive income attributed 10110607.82 21545140.55
to minority shareholder
VIII. Earnings Per Share:
i. Basic Earnings Per Share 0.12 0.11
ii. Diluted Earnings Per Share 0.12 0.11
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
4. Income Statement of Parent Company
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Operating Income 295530.28 376609.17
minus: operating costs 170581.26 0.00
Tax and Surcharges 98713.86 2700.00
Selling Expenses
Administrative Expenses 2825749.10 13524055.12
Research and Development
Expenditure
Financial Expenses 1108.86 -5045.16
Of which: The Interest Expense
Interest Income 1190.61 8250.44
plus: other income 37431.93 50313.02
Investment income ("-" refers -28691.03 398338.36
to losses)
Of which: Income from
investment in joint ventures
The financial assets
measured at amortized cost terminates
the recognition of income ( "-" refers to
losses)
Net open hedging income ( "-
" refers to losses)
Income of Fair Value Changes
( "-" refers to losses)
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Credit Loss ( "-" refers to
losses)
Assets Impairment Loss ( "-"
refers to losses)
Assets Disposal Income ( "-" -31898.67
refers to losses)
II. Operating Profit ( "-" refers to -2823780.57 -12696449.41
losses)
plus: Non-operating income 4001.44
minus: Non-operating expenses 1000000.00
III. Total Profit ( "-" refers to total -2823780.57 -13692447.97
losses)
minus: income tax expense
IV. Net Profit ( "-" refers to net losses) -2823780.57 -13692447.97
i. Net income from continuing -2823780.57 -13692447.97
operation ( "-" refers to net losses)
ii. Net income from discontinuing
operation ( "-" refers to net losses)
V. Net of Tax of Other Comprehensive
Income
i. Other comprehensive income
that can't reclassify income and loss
1. Re-measure the change
value of defined benefit pension plans
2. Other comprehensive
income that can not reverse the income
and loss under the equity law.3. Investment of other
equity instruments in the fair value
changes.4. The fair value changes of
credit risk of the Company
5. Others
ii. Other comprehensive income
that can be re-classified into the income
and loss
1. Other comprehensive
income that can reverse the income and
loss under the equity law.2. Investment of other
obligatory rights in the fair value
changes.3. Financial assets that can
be re-classified into other
comprehensive income
4. Credit impairment
reserve for other creditor's rights
investment
5. Cash Flow Hedging
Reserve
6. The Balance of
Conversion of Foreign Currency
Financial Statements
7. Others
VI. Total Comprehensive Income -2823780.57 -13692447.97
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
5. Consolidated Statement of Cash Flow
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Cash flow from operating activities:
Cash received for selling goods and providing
5952771752.73 3900040688.18
services
Net increase in customer deposits and interbank
deposits
Net increase in borrowing from the Central Bank
Net increase in borrowing from other financial
institutions
Cash received from the premium of the original
insurance contract
Net cash received from reinsurance business
Net increase of insured deposit and investment
Cash charged with interest handling fees and
commissions
Net increase in borrowing funds
Net increase in repurchase funds
Net Cash Received of Acting Trading Securities
Refunds of Taxes Received 12662140.42 6282179.39
Other Cash Received Related to Business
1296559208.28 488634210.14
Activities
Subtotal of Cash flow of Operating Activities 7261993101.43 4394957077.71
Cash for Purchase of Goods and Labor Services 5641229247.11 3523972309.51
Net Increase in Customer Loans and Advances
Net Increase in Deposits in the Central Bank and
Other Banks
Cash for Payment of Original Insurance Contract
Claims
Net Increase of Lending Funds
Cash to Pay the Interest Handling Fees and
Commissions
Cash to Pay the Policy Dividend
Cash Paid to and for Employees 160658231.05 152383335.08
Tax Payments 102867757.62 96716033.84
Cash Payment of Other Related Business
1079387420.20 434789578.52
Activities
Subtotal of Cash Outflow of Operating Activities 6984142655.98 4207861256.95
Net Cash Flow from Operating Activities 277850445.45 187095820.76
II. Cash Flow from Investment
Cash Received in Disinvestment 948291055.30 1316317255.34
Cash Received in Return of Investment 30129076.34 5120558.91
Net Cash Received from Disposal of Fixed
90984.78 6618.58
Assets Intangible Assets and Other Long-term
Assets
Net Cash Received from Disposal of Subsidiaries 0.00 5000000.00
and Other Operating Units
Cash Received Related to Other Business
Activities
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Subtotal of Cash flow of Operating Activities 978511116.42 1326444432.83
Net Cash Payment for the Purchase of Fixed
65875188.69 11385922.53
Assets Intangible Assets and Other Long-term
Assets
Cash Payment for Investment 1008200000.00 1709222428.58
Net Increase in Hypothecated Loan
Net Cash Payment of Subsidiaries and Other
Business Units
Cash Payment of Other Activities Related to
Investment
Subtotal of Cash Outflow of Investment Activities 1074075188.69 1720608351.11
Net Cash Flow from Investment Activities -95564072.27 -394163918.28
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Of which: Cash Received by Subsidiaries in
Absorbing Investment from Minority Shareholders
Cash Received from Loans 1678422675.96 1643287048.37
Other Cash Received Related to Financial
Activities
Subtotal of Cash flow of Financial Activities 1678422675.96 1643287048.37
Cash Payment for Debt 1380657882.58 1385455023.02
Cash Paid for Distribution of Dividends Profits
35312822.03 26157547.48
or Interests
Of which: Dividends and Profits Paid by
Subsidiaries to Minority Shareholders
Cash Payment of Other Activities Related to
Financial Activities
Subtotal of Cash Outflow of Financial Activities 1415970704.61 1411612570.50
Net Cash Flow from Financial Activities 262451971.35 231674477.87
IV. The Impact of Change in Exchange Rate on
-249918.57 -9686369.41
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 444488425.96 14920010.94
Plus: Initial Cash and cash Equivalents Balance 334389017.41 555097777.21
VI. Cash and Cash Equivalents Balance at the End
778877443.37 570017788.15
of the Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
6. Statement of Cash Flows of Parent Company
Unit: Yuan
Program Half year of 2021 Half year of 2020
I. Cash Flow from Operating Activities:
Cash received for selling goods and providing services 1930.25
Refunds of Taxes Received 181.72 200.00
Other Cash Received Related to Business Activities 2459493.15 24529151.07
Subtotal of Cash flow of Operating Activities 2461605.12 24529351.07
Cash for Purchase of Goods and Labor Services 9806.64 24592.17
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Cash Paid to and for Employees 1450104.47 7904980.50
Tax Payments 92938.64 298780.02
Cash Payment of Other Related Business Activities 1664077.90 18496617.45
Subtotal of Cash Outflow of Operating Activities 3216927.65 26724970.14
Net Cash Flow from Operating Activities -755322.53 -2195619.07
II. Cash Flow from Investment
Cash Received in Disinvestment
Cash Received in Return of Investment
Net Cash Received from Disposal of Fixed Assets
44424.78
Intangible Assets and Other Long-term Assets
Net Cash Received from Disposal of Subsidiaries and
Other Operating Units
Cash Received Related to Other Business Activities
Subtotal of Cash flow of Operating Activities 44424.78
Cash Payment for the Purchase of Fixed Assets
79469.03 142327.44
Intangible Assets and Other Long-term Assets
Cash Payment for Investment
Net Cash Payment of Subsidiaries and Other Business
Units
Cash Payment of Other Activities Related to Investment
Subtotal of Cash Outflow of Investment Activities 79469.03 142327.44
Net Cash Flow from Investment Activities -35044.25 -142327.44
III. Cash Flow from Financial Activities:
Cash Received by Absorbing Investment
Cash Received from Loans 4000000.00
Other Cash Received Related to Financial Activities
Subtotal of Cash flow of Financial Activities 4000000.00
Cash Payment for Debt
Cash Paid for Distribution of Dividends Profits or
Interests
Cash Payment of Other Activities Related to Financial
Activities
Subtotal of Cash Outflow of Financial Activities
Net Cash Flow from Financial Activities 4000000.00
IV. The Impact of Change in Exchange Rate on Cash and
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents -790366.78 1662053.49
Plus: Initial Cash and cash Equivalents Balance 1523322.79 3536102.19
VI. Cash and Cash Equivalents Balance at the End of the
732956.01 5198155.68
Period
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
7. Consolidated Statement of Change in Equity
Unit: Yuan
Half year of 2021
Ownership interest attributable to the parent Company
Other equity instruments
Program Other Generic Minority Total owners'
Prefere Perpetual Minus: Reasonable Undistributed
Capital stock Capital reserve Comprehensiv Surplus reserves Risk Others In total Equity equity
nce Capital Others Treasury Stock Reserve profit
e Income Reserve
Shares Securities
I. Ending Balance of Last Year 726950251.00 1674828350.95 -363258.66 122122436.98 187033763.26 2710571543.53 388601959.83 3099173503.36
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under the
Same Control
Others
II. Beginning Balance of This
726950251.00 1674828350.95 -363258.66 122122436.98 187033763.26 2710571543.53 388601959.83 3099173503.36
Year
III. Changes in This Period ( "-"
-80447.42 88328197.91 88247750.49 10110607.82 98358358.31
refers to losses)
A. Total Comprehensive Income -80447.42 88328197.91 88247750.49 10110607.82 98358358.31
B. Input and Capital Reduction of
Owners
1. Common Stock Invested by the
Owner
2. Invested Capital of Other
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
Shareholders)
4. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726950251.00 1674828350.95 -443706.08 122122436.98 275361961.17 2798819294.02 398712567.65 3197531861.67
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2020
Ownership interest attributable to the parent Company
Other equity instruments
Program Minus: Other Total owners'
Preferen Perpetual Reasonable Surplus Generic Risk Undistributed Minority Equity
Capital stock Capital reserve Treasury Comprehensiv Others In total equity
ce Capital Others Reserve reserves Reserve profit
Stock e Income
Shares Securities
I. Ending Balance of Last Year 685790364.00 1595672048.19 267628.14 122122436.98 2186806.56 2 406039283.87 585056356.90 2991095640.77
Plus: Changes in Accounting
Policies
Early Error Correction
Enterprise Merger under
the Same Control
Others
II. Beginning Balance of This
685790364.00 1595672048.19 267628.14 122122436.98 2186806.56 2406039283.87 585056356.90 2991095640.77
Year
III. Changes in This Period ( "-"
41159887.00 84161371.48 106731.84 73762895.19 199190885.51 -218158752.84 -18967867.33
refers to losses)
A. Total Comprehensive
106731.84 73762895.19 73869627.03 21545140.55 95414767.58
Income
B. Input and Capital Reduction
41159887.00 84161371.48 125321258.48 -237694893.39 -112373634.91
of Owners
1. Common Stock Invested by
the Owner
2. Invested Capital of Other 41159887.00 207857432.14 249017319.14 0.00 249017319.14
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others -123696060.66 -123696060.66 -237694893.39 -361390954.05
C. Profit Distribution -2009000.00 -2009000.00
1. Withdrawal Legal Surplus
2. Withdrawal Generic Risk
Reserve
3. Distribution of Owners (or
-2009000.00 -2009000.00
Shareholders)
4. Others
D. Internal Carry-over of
Owner's Rights and Interests
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
1. Conversion of Capital
Reserve to Additional Capital
(Or Equity)
2. Conversion of Surplus
Reserve to Additional Capital
(Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726950251.00 1679833419.67 374359.98 122122436.98 75949701.75 2605230169.38 366897604.06 2972127773.44
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
8. Statement of Change in Equity of Parent Company
Unit: Yuan
Half year of 2021
Other equity instruments
Program Other
Perpetual Minus: Treasury Reasonable Capital stock Preference Capital reserve Comprehensive Surplus reserves Undistributed profit Others Total owners' equity
Capital Others Stock Reserve
Shares Income
Securities
I. Ending Balance of Last Year 726950251.00 2379144900.84 109487064.39 -862106544.32 2353475671.91
Plus: Changes in Accounting
Policies
Early Error Correction
Others
II. Beginning Balance of This Year 726950251.00 2379144900.84 109487064.39 -862106544.32 2353475671.91
III. Changes in This Period ( "-"
-2823780.57 -2823780.57
refers to losses)
A. Total Comprehensive Income -2823780.57 -2823780.57
B. Input and Capital Reduction of
Owners
1. Common Stock Invested by the
Owner
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
2. Invested Capital of Other Equity
Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Distribution of Owners (or
Shareholders)
3. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726950251.00 2379144900.84 109487064.39 -864930324.89 2350651891.34
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Unit: Yuan
Half year of 2020
Other equity instruments
Program Other Minus: Treasury
Capital stock Perpetual Preference Capital reserve Comprehensive Reasonable Reserve Surplus reserves Undistributed profit Others Total owners' equity
Capital Others Stock
Shares Income
Securities
I. Ending Balance of Last Year 685790364.00 2173387468.71 109487064.39 -1042605063.16 1926059833.94
Plus: Changes in Accounting
Policies
Early Error Correction
Others
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
II. Beginning Balance of This
685790364.00 2173387468.71 109487064.39 -1042605063.16 1926059833.94
Year
III. Changes in This Period ( "-"
41159887.00 207857432.14 -13692447.97 235324871.17
refers to losses)
A. Total Comprehensive Income -13692447.97 -13692447.97
B. Input and Capital Reduction of 41159887.00 207857432.14 249017319.14
Owners
1. Common Stock Invested by the
Owner
2. Invested Capital of Other 41159887.00 207857432.14 249017319.14
Equity Instrument Holders
3. Share Payment Included in
Owner's Equity
4. Others
C. Profit Distribution
1. Withdrawal Legal Surplus
2. Distribution of Owners (or
Shareholders)
3. Others
D. Internal Carry-over of Owner's
Rights and Interests
1. Conversion of Capital Reserve
to Additional Capital (Or Equity)
2. Conversion of Surplus Reserve
to Additional Capital (Or Equity)
3. Surplus Reserve Covers the
Deficit
4. Change of Benefit Plan
Transferred to Retained Income
5. Other Comprehensive Income
Transferred to Retained Income
6. Others
E. Special Reserve
1. Current Withdrawal
2. Current Use
F. Others
IV. Current Ending Balance 726950251.00 2381244900.85 109487064.39 -1056297511.13 2161384705.11
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Hainan Jingliang Holdings Co. Ltd.Notes to 2021 Semiannual Financial Statements
(Unless otherwise stated the amount unit is RMB Yuan)
I. Basic Information of the Company
1. Place of incorporation form of organization and head office address
Hainan Jingliang Holdings Co. Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang Holdings") is
established in accordance with the Hainan Provincial People's Government General Office QFBH (1992) No.1 approved by QY (1992)
SGZ No. 6 Document of the People's Bank of Hainan Province and re-registered by Hainan Pearl River Enterprise Company on January
11 1992. The Company issued 81880000 shares in total upon re-registration of which 60793600 shares were converted from the
net assets of the original Company and 21086400 shares were newly issued. And the name of the Company is Hainan Pearl River
Enterprise Co. Ltd. The business license registration number of the joint-stock Company is 20128455-6 and the holding parent
Company Guangzhou Pearl River Enterprise Group holds 36393600 shares accounting for 44.45%. Approved by ZGB (1992) No.83 Document of the People's Bank of China in December 1992 the additional 21086400 shares were listed on the Shenzhen Stock
Exchange for trading. The industry involved is real estate.On March 25 1993 in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and SRYFZ (1993) No.099
of Shenzhen Special Economic Zone Branch of the People's Bank of China the Company increased its share capital by converting the
original share capital into 139196000 shares (according to distribution of 10 delivery of 5 and transfer of 2) with the controlling
shareholder Guangzhou Pearl River Enterprises Group holding 48969120 shares accounting for 35.18% at the end of 1993.In 1994 the share capital was increased by 10 to 10 and the total share capital was 278392000 shares after the increase. The
controlling shareholder Guangzhou Pearl River Enterprises Group holds 97938240 shares accounting for 35.18%.In 1995 the issuance of 50000000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12. The share capital of
the Company was increased by 10:1.5 on the basis of the share capital after the additional B shares were issued and the share capital
of the Company after the increase was 377650800 shares. The holding parent Company Guangzhou Pearl River Enterprises Group
held 112628976 shares accounting for 29.82% of the total.In 1999 Guangzhou Pearl River Enterprises Group transferred all 112628976 shares to Beijing Wanfa Real Estate Development
Co. Ltd.. After the transfer of shares was completed in June 1999 Beijing Wanfa Real Estate Development Co. Ltd. held 112628976
shares of the Company accounting for 29.82% of the total shares of the Company and became the controlling shareholder of the
Company.On January 10 2000 the name of the Company was changed to Hainan Pearl River Holding Co. Ltd. and the Business License
for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau of Hainan Province.On August 17 2006 the reform plan of the split share structure of the Company was implemented. The Company transferred
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
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 holder. Beijing Wanfa Real Estate Development Co. Ltd. reimbursed the consideration shares
of the non-tradable shareholders who have not expressly expressed their opinions. The converted total share capital was 426745404
shares and the original controlling shareholder Beijing Wanfa Real Estate Development Co. Ltd. held 107993698 shares accounting
for 25.31%. Shareholders of non-tradable shares repaid 3289780 shares in consideration of the split share structure in 2007.Shareholders of non-tradable shares repaid 1196000 shares in consideration of the split share structure in 2009.On 2 September 2016 Beijing Wanfa Real Estate Development Co. Ltd. the original controlling shareholder transferred all of
its 112479478 shares to Beijing Grain Group Co. Ltd. (hereinafter referred to as "Beijing Grain Group"). Upon completion of the
share transfer in September 2016 Beijing Grain Group Co. Ltd. held 112479478 shares accounting for 26.36% of the total shares of
the Company. In November 2016 based on the confidence in the subject matter of the material asset restructuring and the future
development of the Company Beijing Grain Group Co. Ltd. decided to increase its shareholding through centralized bidding in the
secondary market. After the increase it held 123561963 shares of the Company accounting for 28.95% of the total number of shares
and became the largest shareholder of the Company.The Company determined July 31 2017 as the delivery date of material assets in accordance with the material assets restructuring
plan and the delivery agreement. On September 14 2017 approved pursuant to the resolution of the Second Extraordinary General
Meeting of Shareholders of the Company on November 18 2016 and the Approval Reply of the China Securities Regulatory
Commission dated July 28 2017 On Approval of Hainan Pearl River Holding Co. Ltd. to Purchase Assets and Raise Supporting Funds
from Beijing Grain Group Co. Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original shareholders of
Beijing Grain Food Co. Ltd. (hereinafter referred to as Beijing Grain Food) by issuing 210079552 shares of the balance between the
transaction price of the injected assets and the assets to be purchased (the difference between the transaction price of the injected assets
and the assets to be purchased was RMB 1699.5436 million yuan). The par value in the issuance was RMB 1.00 per share and the
issuance price was RMB 8.09 per share; 2) The Company has issued 48965408 non-public shares of the Company to Beijing Grain
Group for the purpose of purchasing the supporting funds raised from the assets of the issuance of shares. The par value per share of
the Company was RMB1.00 and the issuance price was RMB8.82 per share. The shareholder Beijing Grain Group conducted
subscription in monetary funds. Upon completion of the issue the registered capital was RMB 685790364.00 and the share capital
was 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 Shounong Food Group Co. Ltd. (Beijing Shounong Food publish [2019]
No. 212) Approval on the Plan of Purchasing Assets by Cash and Issuing Shares of Hainan Jingliang Holdings Co. Ltd On April
2020 with the approval of Approval of Hainan Jingliang Holding Co. Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets by
China Securities Regulatory Commission [2020] No. 610 the Company shall not issue more than 41159887 new shares in private
offering to raise funds supporting the purchase of assets through the issued shares. The Company and its subsidiary Beijing Jingliang
Food Co. Ltd. purchased the 25.1149% equity stake of Zhejiang Little Prince by cash and issuance of shares.As of June 30 2021 the Company has issued 726950251.00 shares and the Company's share capital is 726950251.00 yuan;
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
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: Li Shaoling.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 ativites mainly
includes: food beverages agricultural and sideline products vegetable proteins and their products organic fertilizers microbial
fertilizers production and marketing of agricultural fertilizers; land consolidation soil remediation; agricultural comprehensive
planting development animal husbandry and aquaculture agricultural equipment production and marketing; computer network
technology investment in communication projects research and development and application of high-tech products; investment and
consultation of environmental protection projects; animation graphic design; import and export trade in goods and technology; rental
of own premises.The Company and its subsidiaries are principally engaged in the processing production and sales of foodstuffs agricultural and
sideline products grease oils and leisure foods.3. The name of the parent Company and the ultimate parent Company.The parent Company of the Company is Beijing Grain Group Co. Ltd. and the ultimate parent Company is Beijing shounong
Food Group Co. Ltd.4. The approval institution and the approval date of the financial statements.These financial statements have been approved and reported by the Board of Directors of the Company in its resolution dated on
August 23 2021.5. Consolidation scope
The consolidated scope of the consolidated financial statements of the Company is determined on the basis of control including
the financial statements of the Company and all subsidiaries. Subsidiaries refer to enterprises or entities controlled by the Company.A total of 17 subsidiaries of the Company were included in the scope of consolidation on June 30 2021 as detailed in Note 8
"Interests in Other Entities". The consolidation scope of the Company for the current period is same as the previous period as detailed
in Note 7 "Change in Consolidation Scope".II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transaction events the financial statements are prepared in
accordance with the relevant provisions of Accounting Standard for Business Enterprises and the following stated Significant
Accounting Policies and Estimates.2. Going concern
The Company has a going concern capability for 12 months from the end of the reporting period and no material matters affecting
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
the Company's going concern capability were found. Therefore the financial statements are presented on a going concern basis is
reasonable.III. Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing production and sales of food agricultural and sideline products
grease oil and leisure food. According to the characteristics of actual production and operation and the provisions of relevant
accounting standards for business enterprises the Company and its subsidiaries have formulated a number of specific accounting
policies and accounting estimates for transactions and events such as revenue recognition. For details please refer to the descriptionsin Note Ⅲ 27 “Revenue". For descriptions of the significant accounting judgments and estimates made by the management pleaserefer to Note Ⅲ 33 “Significant Accounting Judgments and Estimates"1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to the requirements of the
Accounting Standards for Business Enterprises and their application guidelines explanations and other relevant provisions (collectively
referred to as "ASBE") and truly and completely reflect the Company's financial status operating results cash flow and other relevant
information.In addition the preparation of this financial report refers to the Rules for Preparation and Reporting Information Disclosure of
Companies Offering Securities to the Public No.15-General Provisions on Financial Reports revised by China Securities Regulatory
Commission in 2014 and the presentation and disclosure requirements in Notice on Matters Related to the Implementation of the New
Accounting Standards for Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453)
2. Accounting Period and Business Cycle
The accounting period of the Company is divided into an annual period and an interim period. The accounting interim period
refers to the reporting period shorter than a full accounting year. The fiscal year of the Company adopts the Gregorian calendar year
that is from January 1 to December 31 of each year.The normal business cycle is the period from the time the Company purchases assets for processing to the time when cash or cash
equivalents are realized. The Company uses 12 months as an business cycle and uses it as a liquidity classification standard for assets
and liabilities.3. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate. The
Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore subsidiaries of the Company
determine USD as their bookkeeping standard currency based on the currencies in the main economic environment in which they
operate. The currency used by the Company in preparing these financial statements is RMB.4. The Accounting Treatment of Business Combination under the Same Control and Different Control
Business Combination refers to the transaction or event in which two or more separate enterprises are merged to form one reporting
entity. Business combination can be divided into business combination under the same control and business combination under different
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties before and after the
combination and the control is not temporary so it is the business combination under the same control. In case of business combination
under the same control the party that obtains control of other enterprises participating in the combination on the combination date shall
be the combination party and the other enterprises participating in the combination shall be the merged party. The combination date
refers to the date on which the combination party actually acquires control over the merged party.The assets and liabilities acquired by the combination party are measured at the book value of the merged party at the date of
consolidation including goodwill that was formed during acquisition by end controller . If the difference between the book value of
the net assets acquired by the merging party and the book value of the merged consideration (or the total par value of the issued shares)
paid by the merging party and the capital reserve (share capital premium) shall be adjusted; If the capital reserve (equity premium) is
insufficient to offset the retained earnings shall be adjusted.The direct expenses incurred by the merging party for the purpose of business combination shall be included in the profits and
losses of the current period when they are incurred.
(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties before and after
the merger the enterprise merger is not under the same control. In case of business combination under different control the party that
obtains control of other enterprises participating in the combination on the date of purchase shall be the Purchaser and the other
enterprises participating in the combination shall be the Purchasee. Purchase date means the date on which the Purchaser actually
acquires control of the Purchasee.For business combination under different control the merger cost includes the assets liabilities and fair value of equity securities
issued by the Purchaser in order to obtain the control over the Purchasee on the date of purchase and the intermediary fees such as
audit legal service appraisal and consultation and other management fees for the enterprise merger are used to record into the profits
and losses of the current period when incurred. The transaction costs of equity or debt securities issued by the Purchaser as a merger
consideration are included in the initial recognition amount of the equity or debt securities. Contingent consideration involved shall be
included in the consolidation cost at its fair value at the purchase date and the consolidation goodwill shall be adjusted accordingly if
new or further evidence of the existence of circumstances at the purchase date appears within 12 months after the purchase date and
the adjustment or consideration is required. The consolidation cost incurred by the Purchaser and the identifiable net assets acquired
during the consolidation are measured at the fair value at the date of purchase. The difference between the merger costs and the fair
value shares of the identifiable net assets of the Purchasee at the purchase date obtained in the merger is recognized as goodwill. If the
combined cost is less than the fair value of the identifiable net assets of the Purchasee in the merger first the fair value of the identifiable
assets liabilities and contingent liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked. If the
consolidation cost is still smaller than the fair value share of the identifiable net assets of the Purchased obtained in the consolidation
after the re-check the difference shall be recorded into the profits and losses of the current period.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
When the Purchaser acquires the deductible temporary difference of the Purchasee if it fails to recognize the deferred income tax
assets on the date of purchase because it does not meet the recognition conditions for the deferred income tax and within 12 months
of the date of purchase new or further information is obtained indicating that the relevant circumstances at the purchase date already
exist and the economic benefits from the temporary difference deductible by the purchaser on the purchase date are expected to be
realized the relevant deferred income tax assets shall be recognized and the goodwill shall be reduced. If the goodwill is not sufficiently
offset the difference shall be recognized as the current profit or loss; In addition to the above circumstances the deferred income tax
assets related to the enterprise merger are recognized and included in the current profits and losses.Through multi-transaction and step-by-step business combination under different control according to the Circular of the Ministry
of Finance on Printing and Issuing the Interpretation of Accounting Standards for Business Enterprises No.5 (CK (2012) No.19) and
Article 51 of the Accounting Standards for Business Enterprises No.33-Consolidated Financial Statements on the judgment criteria of
"package deal" (see 5 (2) of Note 3) it is determined whether the multiple transactions belong to the "package deal". In the case of a
"package deal" the accounting treatment shall be performed with reference to the description in the preceding paragraphs of this section
and Note 3 13 "Long-term Equity Investments"; If the transaction is not a "package deal" the accounting treatment shall be
distinguished between the individual financial statements and the consolidated financial statements:
In the individual financial statements the sum of the book value of the equity investment held by the Purchaser prior to the
purchase date and the cost of the new investment at the purchase date shall be taken as the initial investment cost of the investment;
Where the equity of the Purchased held before the date of purchase involves other comprehensive income the other consolidated
income associated with the investment is accounted for on the same basis as the assets or liabilities directly disposed of by the Purchaser
(i.e. except for the corresponding share in the change caused by the acquisition of the net liability or net assets of the defined benefit
plan remeasured in accordance with the equity method the rest is transferred to the current investment income).In the consolidated financial statements the equity of the Purchased held prior to the date of purchase is remeasured according to
the fair value of the equity at the date of purchase and the difference between the fair value and the carrying value is included in the
investment income of the current period; Where the equity of the Purchasee held before the date of purchase involves other
comprehensive income other consolidated income related thereto shall be accounted for on the same basis as the direct disposal of the
relevant assets or liabilities by the Purchaser (i.e. except for the corresponding share in the change caused by the acquisition of the net
liability or net asset of the defined benefit plan remeasured in accordance with the equity method the rest is converted into the
investment income of the current period to which the acquisition date belongs).5. Preparation Method of Consolidated Financial Statement
(1) Principles for determining the scope of the consolidated financial statement
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control means that the
Company has the authority over the Investee enjoys a variable return by participating in the relevant activities of the Investee and has
the ability to use its authority over the Investee to influence the amount of such return. The scope of the merger includes the Company
and all its subsidiaries. Subsidiary refers to the main body controlled by the Company.The Company will re-evaluate the above control definitions once the relevant facts and circumstances change which results in
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production and operation decisions
into the scope of the merger from the date when the subsidiary is acquired; Cease to be included in the scope of the merger as of the
date of loss of effective control. For the subsidiaries disposed of the operating results and cash flows prior to the date of disposal have
been appropriately included in the consolidated income statement and consolidated cash flow statement; For subsidiaries disposed of
in the current period the opening amount of the consolidated balance sheet is not adjusted. The operating results and cash flows of
subsidiaries increased by consolidation after purchase have been properly included in the consolidated income statement and
consolidated cash flow statement and the opening and comparative amounts in the consolidated financial statements have not been
adjusted for subsidiaries that are not under the same control. The operating results and cash flows of the subsidiaries increased by
consolidation under the same control from the beginning of the consolidation period to the consolidation date have been appropriately
included in the consolidated profit statement and consolidated cash flow statement and the comparative amount of the consolidated
financial statements has been adjusted at the same time.In the preparation of the consolidated financial statements if the accounting policies or accounting periods adopted by the
subsidiaries are inconsistent with those adopted by the Company necessary adjustments shall be made to the financial statements of
the subsidiaries in accordance with the accounting policies and accounting periods of the Company. For subsidiaries acquired through
business combination under different control the financial statements shall be adjusted on the basis of the fair value of identifiable net
assets at the date of purchase.All significant transaction balances transactions and unrealized profits within the Company are offset at the time of preparation
of the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the Company for the current
period are separately presented as minority shareholders' equity and minority shareholders' profit or loss in the consolidated financial
statements under shareholders' equity and net profit. The shares of minority shareholders' equity in the net profits and losses of
subsidiaries for the current period are shown as "minority shareholders' profits and losses" under the net profit item in the consolidated
income statement. Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders'
equity of the subsidiary at the beginning of the period and still decrease by a number of shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other reasons the residual
equity shall be revalued according to its fair value at the date of loss of control. The sum of consideration obtained from the disposal
of equity and the fair value of the remaining equity minus the difference between the shares of the net assets of the original subsidiary
that shall be continuously calculated from the purchase date according to the original shareholding proportion shall be included in the
investment income of the current period of loss of control. Other comprehensive income related to the equity investment of the original
subsidiary in the event of loss of control the accounting treatment is performed on the same basis as the direct disposal of the relevant
assets or liabilities by the Purchased (i.e. converted to current investment income except for changes resulting from the re-measurement
of the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary). Thereafter the residual equity shall be
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
subsequently measured in accordance with the relevant provisions of Accounting Standards for Business Enterprises No.2-Long-term
Equity Investment or Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments
as detailed in Note Ⅲ 13-Long-term Equity Investment or Note Ⅲ 9-Financial Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses control through multiple transactions.It is necessary to distinguish whether the transactions that dispose of the equity investment in subsidiaries until it loses control belong
to a package deal or not. The terms conditions and economic impact of the transactions for the disposal of equity investments in
subsidiaries are in accordance with one or more of the following circumstances and generally indicate that multiple transactions should
be accounted for as a package deal: ① These transactions were entered into simultaneously or taking into account each other's
influence; ② Only when these transactions are taken together can a complete business result be achieved; ③ The occurrence of one
transaction depends on the occurrence of at least one other transaction; ④ It is not economical to consider a transaction alone but it
is economical to consider it in conjunction with other transactions. For transactions that are not part of the package deal each transaction
shall be accounted for in accordance with the principles applicable to the "partial disposal of long-term equity investments in
subsidiaries without loss of control" (as detailed in 13 of Note Ⅲ) and the "loss of control over existing subsidiaries as a result of the
disposal of part of the equity investments or other reasons" (as detailed in the preceding paragraph) as appropriate. If the transactions
involving the disposal of equity investments in subsidiaries until the loss of control belong to a package deal the transactions shall be
accounted for as a transaction involving the disposal of subsidiaries and the loss of control; However the difference between each
disposal price and the share of the subsidiary's net assets corresponding to the disposal investment prior to the loss of control is
recognized in the consolidated financial statements as other consolidated gains and transferred to the profit or loss for the current period
of loss of control in the event of loss of control.6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The Company divides the joint
venture arrangement into joint ventures and joint ventures in accordance with the rights and obligations it enjoys in the joint venture
arrangement. Joint operation refers to the joint venture arrangement in which the Company enjoys the assets related to the arrangement
and assumes the liabilities related to the arrangement. A joint venture refers to a joint venture arrangement in which the Company only
has rights over the net assets of the arrangement.The Company's investment in the joint venture is accounted for using the equity method and shall be treated in accordance with
the accounting policy described in Note Ⅲ 13 "Long-term Equity Investment Accounted by the Equity Method".The Company as a joint venture party recognizes the assets and liabilities held and assumed by the Company separately and
recognizes the assets and liabilities jointly held and assumed by the Company according to the shares of the Company; recognizes the
revenue generated from the sale of the share of joint operating output enjoyed by the Company; recognizes revenue generated from the
sale of output from joint operations on the basis of the Company's share; confirms the expenses incurred by the Company individually
and the expenses incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute business the same below) or purchases
assets from the joint venture the Company recognizes only the portion of the profits and losses attributable to the other participants in
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
the joint venture that arises from the transaction prior to the sale of such assets to a third party. Where such assets are impaired in
accordance with the provisions of Accounting Standards for Business Enterprises No.8-Impairment of Assets the Company shall fully
recognize such losses in the case where the assets are cast or sold by the Company to joint operations; For the assets purchased by the
Company from the joint operation the Company recognizes the losses according to the shares it assumes.7. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand deposits that can be used for payment at any time and
investments held by the Company with a short term (usually maturing within three months from the date of purchase) high liquidity
easy conversion into cash of a known amount and little risk of value change.8. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation the foreign currency transactions occurring in the Company shall be converted into the
bookkeeping functional currency amount at the spot exchange rate on the trading day but the foreign currency exchange business or
transactions involving foreign currency exchange occurring in the Company shall be converted into the bookkeeping functional
currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-monetary item
On the balance sheet date the foreign currency monetary items are converted at the spot exchange rate on the balance sheet date
and the exchange difference arising therefrom shall be: ① 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; ② 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); ③ Except for the amortized cost the exchange differences arising from the
changes in the book balance of the available-for-sale monetary items in foreign currencies shall be included in the other comprehensive
income and shall be included in the profits and losses of the current period.Where the preparation of the consolidated financial statements involves overseas operations if there are foreign currency monetary
items constituting net investment in overseas operations the exchange differences arising from exchange rate changes shall be included
in other comprehensive income; When disposing of overseas operations the profits and losses shall be transferred to the current disposal
period.Non-monetary items in foreign currencies measured at historical cost shall still be measured at the bookkeeping amount in
functional currency translated at the spot exchange rate on the transaction date. For non-monetary items in foreign currencies measured
at fair value the spot exchange rate at the date of fair value determination shall be adopted for conversion. The difference between the
converted amount in functional currency and the amount in original functional currency shall be treated as the change in fair value
(including the change in exchange rate) and shall be recorded into the profits and losses of the current period or recognized as other
comprehensive income.
(3) Translation method for financial statements in foreign currencies
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Where the preparation of the consolidated financial statements involves overseas operations if there are foreign currency monetary
items constituting net investment in overseas operations the exchange differences arising from exchange rate changes shall be as
"foreign currency report conversion difference" and be confirmed as other comprehensive income; When disposing of overseas
operations the profits and losses shall be transferred to the current disposal period.The foreign currency financial statements of overseas operations shall be converted into RMB statements in the following ways:
the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; Except for
"undistributed profits" other items of shareholders' equity shall be converted at the spot exchange rate at the time of occurrence. The
income and expense items in the profit statement shall be converted at the average exchange rate of the current period on the date of
transaction. The undistributed profit at the beginning of the period shall be the undistributed profit at the end of the period converted
from the previous year; The undistributed profits at the end of the year shall be calculated and listed according to the converted profits
distribution items; The difference between the converted asset items and the total amount of the liability items and shareholders' equity
items shall be recognized as other comprehensive income as the translation difference in the foreign currency statements. In case of
disposal of overseas operations and loss of control the balance in translation of the foreign currency statements related to the overseas
operations as shown below in the shareholders' equity items in the balance sheet shall be transferred to the profits and losses of the
disposal period in whole or in proportion to the disposal of the overseas operations.Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average exchange rate of the
current period on the date of occurrence of the cash flows. The effect of exchange rate changes on cash shall be presented separately
in the statement of cash flows as an reconciling item.Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the prior-period financial
statements.When disposing of all the owner's equity of the Company's overseas operations or losing the control over overseas operations due
to the disposal of part of the equity investment or for other reasons if the following items of shareholders' equity in the balance sheet
are shown below the balance in translation of the foreign currency statement attributable to the owner's equity of the parent Company
related to the overseas operation shall be transferred to the profits and losses of the current disposal period.In the event that the proportion of overseas business interests is reduced due to the disposal of part of the equity investment or for
other reasons but the control over overseas business operations is not lost the balance in the translation of the foreign currency
statements related to the disposal of part of overseas business operations shall be attributed to minority shareholders' interests and shall
not be transferred to the profits and losses of the current period. When disposing of part of the equity of an overseas operation as an
associated enterprise or a joint venture the balance of the translation of the foreign currency statements related to the overseas operation
shall be transferred into the profits and losses of the current disposal period in the proportion of the overseas operation disposed of.9. Financial instruments
A financial asset or financial liability is recognized when the Company becomes a party to a financial instrument contract.
(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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
current profits and losses.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value and whose changes are
included in current profits and losses relevant transaction costs are directly included in current profits and losses. For other types of
financial assets relevant transaction costs are included in the initial recognition amount. Accounts receivable or notes receivable arising
from the sale of products or the provision of labor services that do not contain or take into account significant financing components
shall be initially recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.① Financial assets measured at amortized cost
The Company's business model of managing financial assets measured in amortized cost is aimed at collecting contractual cash
flow and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements that is
the cash flow generated on a specific date is only the payment of principal and interest based on the unpaid principal amount. For such
financial assets the Company adopts the effective interest rate method and carries out subsequent measurement according to amortized
cost. The profits or losses arising from amortization or impairment are included into the current profits and losses.② Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect and sell contractual cash flow and the contractual
cash flow characteristics of such financial assets are consistent with the basic lending arrangements. 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.③ Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured at fair value with
changes included in other comprehensive income into financial assets measured at fair value with changes included in current profits
and losses. In addition during initial recognition in order to eliminate or significantly reduce accounting mismatch the Company
designated part of financial assets as financial assets measured at fair value with changes included in current profit and loss. For such
financial assets the Company adopts fair value for subsequent measurement and the changes in fair value are included into the current
profit and loss.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair value and whose
changes are included in current profits and losses and other financial liabilities. For the financial liabilities measured at fair value with
the changes included into the current profits and losses the relevant transaction costs are directly included into the current profits and
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
losses and the relevant transaction costs of other financial liabilities are included in the initial recognition amount.① Fair value through Profit and Loss Financial liabilities
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.② 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: ① The termination of the contractual right
to receive cash flow from the financial asset. ② 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. ③ 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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
financial assets shall be apportioned according to its relative fair value between the derecognized part and the non derecognized part
and the difference between the sum of the consideration received due to the transfer and the accumulated change in fair value originally
included in other comprehensive income that shall be apportioned to the derecognized part and the allocated aforesaid book amount
shall be included into the current profits and losses.For financial assets sold by the Company with recourse or for endorsement and transfer of held financial assets it is necessary to
determine whether almost all risks and rewards in the ownership of the financial assets have been transferred. If almost all risks and
rewards in the ownership of the financial asset have been transferred to the transferee the recognition of the financial asset shall be
terminated. If almost all risks and rewards on the ownership of a financial asset are retained the recognition of the financial asset shall
not be terminated. If almost all risks and rewards related to the ownership of financial assets have not been transferred or retained it
shall continue to judge whether the enterprise retains control over the assets and carry out accounting treatment according to the
principles mentioned in the preceding paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved the Company terminates the recognition of
the financial liability (or part thereof). The Company (the borrower) and the lender sign an agreement to replace the original financial
liabilities by assuming new financial liabilities. If the contract terms of the new financial liabilities and the original financial liabilities
are substantially different the original financial liabilities shall be derecognized and a new financial liability shall be recognized at the
same time. If the Company makes any substantial modification to the contract terms of the original financial liability (or part thereof)
the original financial liability shall be derecognized and a new financial liability shall be recognized in accordance with the modified
terms.If financial liabilities (or part thereof) are derecognized the Company shall include the difference between its book value and the
consideration paid (including transferred non-cash assets or liabilities assumed) into the current profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial liabilities and such legal
right is currently enforceable and the Company plans to settle the financial assets on a net basis or realize the financial assets and settle
the financial liabilities at the same time the financial assets and financial liabilities are listed in the balance sheet at a net amount after
mutual offset. In addition financial assets and financial liabilities shall be listed separately in the balance sheet and shall not be offset
against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderly
transaction on the measurement date. Where there is an active market for 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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
willing to trade reference to current fair values of other financial instruments that are substantially the same discounting cash flow
technique option pricing model etc. In valuation the Company adopts valuation techniques that are applicable under current
circumstances and are supported by sufficient available data and other information selects input values that are consistent with the
characteristics of assets or liabilities considered by market participants in transactions related to assets or liabilities and gives priority
to the use of relevant observable input values as much as possible. If the relevant observable input value cannot be obtained or it is not
impracticable to obtain it the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets after deducting all
liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity instruments by the Company are treated as
changes in equity and transaction costs related to equity transactions are deducted from equity. The Company does not recognize
changes in the fair value of equity instruments.Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the Company's equity
instruments during their existence shall be treated as profit distribution.10. Impairment of financial assets
The financial assets of the Company that need to confirm the impairment loss are financial assets measured at amortized cost and
debt instrument investment measured at fair value with changes included in other comprehensive income mainly including notes
receivable accounts receivable other receivables debt investment other debt investment long-term receivables etc. In addition for
some financial guarantee contracts impairment reserves and credit impairment losses are also accrued in accordance with the
accounting policies described in this part.
(1) Recognition method of impairment provision
On the basis of expected credit losses the Company sets aside impairment reserves and recognizes credit impairment losses for
the above items according to the applicable expected credit loss measurement method (general method or simplified method).Credit loss refers to the difference between all contractual cash flows receivable according to the contract and all cash flows
expected to be collected by the Company discounted according to the original actual interest rate i.e. the present value of all cash
shortages. Among them for the financial assets that have been purchased or incurred credit impairment the Company discounts them
according to the actual interest rate adjusted by credit.The general method of measuring expected credit loss refers to the Company's assessment of whether the credit risk of financial
assets has increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased significantly
since the initial recognition the Company will measure the loss reserve by an amount equivalent to the expected credit loss during the
entire period. If the credit risk has not increased significantly since the initial recognition the Company will measure the loss reserve
according to the amount equivalent to the expected credit loss in the next 12 months. In assessing the expected credit loss the Company
takes into account all reasonable and evidence-based information including forward-looking information.For financial instruments with low credit risk on the balance sheet date the Company measures the loss reserve based on the
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
expected credit loss amount within the next 12 months or the entire duration according to whether the credit risk has increased
significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognition
If the default probability of a certain financial asset in the expected duration determined at the balance sheet date is significantly
higher than the default probability in the expected duration determined at the time of initial recognition it indicates that the credit risk
of the financial asset is significantly increased. Except for special circumstances the Company uses the change of default risk in the
next 12 months as a reasonable estimate of the change of default risk in the entire duration to determine whether the credit risk has
increased significantly since the initial recognition.Generally if the overdue period is more than 90 days the Company will consider that the credit risk of the financial instrument
has increased significantly unless there is conclusive evidence that the credit risk of the financial instrument has not increased
significantly since the initial recognition.The Company will consider the following factors when evaluating whether the credit risk has increased significantly
1） Whether there is any significant change in the actual or expected operating results of the debtor;
2） Whether there is any significant adverse change in the regulatory economic or technological environment of the debtor;
3） Whether there is any significant change in the value of the collateral or the quality of the guarantee or credit enhancement
provided by the third party which are expected to reduce the economic motivation of the debtor's repayment according to the time limit
stipulated in the contract or affect the probability of default;
4） Whether there is any significant change in the expected performance and repayment behavior of the debtor;
5） Whether there is any significant change in the Company's credit management methods for financial instruments etc.On the balance sheet date if the Company judges that the financial instrument has only low credit risk the Company assumes that
the credit risk of the financial instrument has not increased significantly since the initial recognition. If the default risk of a financial
instrument is low the borrower's ability to perform its contractual cash flow obligations in a short period of time is strong and even if
there are adverse changes in the economic situation and operating environment for a long period of time it may not necessarily reduce
the borrower's ability to perform its contractual cash obligations then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset the financial asset becomes
a financial asset with credit impairment. The evidence of credit impairment of financial assets includes the following observable
information:
1）The issuer or debtor has major financial difficulties;
2）The debtor violates the contract such as default or overdue payment of interest or principal etc.;
3）The creditor gives concessions that the debtor will not make under any other circumstances due to economic or contractual
considerations related to the debtor's financial difficulties;
4）The debtor is likely to go bankrupt or undergo other financial restructuring;
5）The active market of the financial assets disappears due to the financial difficulties of the issuer or the debtor;
6）Purchase or generate a financial asset at a substantial discount which reflects the fact that credit losses have occurred.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Credit impairment of financial assets may be caused by the combined action of multiple events but may not be caused by
separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks such as: Accounts receivable with
related parties. Receivables in dispute with the other party or involving litigation or arbitration. Receivables with obvious signs that
the debtor is likely to be unable to perform the repayment obligation.In addition to the financial assets with individual credit risk assessment the Company divides the financial assets into different
groups based on the common risk characteristics. The common credit risk characteristics adopted by the Company include: Credit risk
shall be assessed on the basis of the aging portfolio the receivables portfolio between the final controlling party and its subordinate
units the public maintenance fund and house selling fund portfolio deposited in the housing provident fund management center the
deposit/margin portfolio and the petty cash ledger portfolio formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period the Company calculates the estimated credit losses of various financial assets. If the estimated credit
losses are greater than the book amount of its current impairment reserve the difference is recognized as impairment loss. If it is less
than the carrying amount of the current impairment reserve the difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
①Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount equivalent to the entire
duration. Based on the credit risk characteristics of bills receivable they are divided into different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
According to the acceptor's credit risk classification it should be the same as the
Commercial acceptance bill
"receivable" portfolio classification.②Accounts receivable and other receivables
For receivables that do not contain significant financing components the Company measures the loss reserve according to the
expected credit loss amount equivalent to the entire duration.For receivables that contain significant financing components the Company measures the loss reserve based on whether the credit
risk has increased significantly since the initial recognition using the amount of expected credit loss within the next 12 months or the
entire duration.According to whether the credit risk of other receivables has increased significantly since the initial recognition the Company
measures impairment loss with an amount equivalent to the expected credit loss within the next 12 months or the entire duration.In addition to the accounts receivable and other receivables that individually assess credit risk they are divided into different
portfolios based on their credit risk characteristics:
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Item Basis for determining portfolio
Portfolio 1 Aging portfolio
Portfolio 2 A portfolio of receivables between the ultimate controller and its subordinate units
The portfolio of public maintenance funds and house sales funds deposited in the housing provident
Portfolio 3
fund management center
Portfolio 4 Deposit/margin portfolio
Portfolio 5 The portfolio of reserve fund ledger formed by the Company's staff loan
The accrual method of bad debt reserves for different portfolios:
Item Accrual method
According to the accrual proportion corresponding
Aging portfolio
to the aging period
Portfolio of receivables between the ultimate controlling party and Referring to the historical credit loss experience
its subordinate units combined with the current situation and the forecast
The portfolio of public maintenance funds and house sales funds of future economic conditions the expected credit
deposited into the MPF Management Center loss is calculated thr-ough the default risk exposure
Deposit/margin portfolio and the expected credit loss rate within the next 12
The portfolio of reserve fund ledger formed by the Company's staff months or the entire duration and the expected
loan. credit loss rate of the portfolio is zero.a. In portfolio the portfolio method of withdrawing bad debt reserves by aging analysis
Expected loss rate of notes Expected loss rate of Expected loss rate of other
Aging
receivable (%) accounts receivable (%) receivables (%)
Within 1 year (including 1 year the
same below)
Among them: Within the credit period 0 0 0
(within 3 months)
Credit period~1 year 2 2 2
1-2 years 5 5 5
2-3years 20 20 20
3-4years 50 50 50
4-5years 80 80 80
More than 5 years 100 100 100
b. In the portfolio the description of the accrual method for accrual of bad debt reserves by other methods is given.Expected loss rate of Expected loss rate of Expected loss rate of
Aging
notes receivable (%) accounts receivable (%) other receivables (%)
Accounts receivable between the final controlling 0 0 0
party and its subordinate u
Public maintenance fund and house sale fund 0 0 0
deposited into MPF Management Center
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Expected loss rate of Expected loss rate of Expected loss rate of
Aging
notes receivable (%) accounts receivable (%) other receivables (%)
Deposit/margin 0 0 0
The reserve fund ledger formed by the Company's 0 0 0
staff loan.11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials turnover materials developed products in transit materials inventory goods reserve
tanker storage commissioned processing and manufacturing consignment etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are valued at actual cost when they are acquired. Inventory costs include purchase costs processing costs and other
costs. They are valued with weighted average method when they are used and issued.
(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve
Net Realizable Value refers to the amount of estimated selling price of inventories minus the estimated cost till completion
estimated expenses for selling activity and related taxes and fees in daily activities. When determining the net realizable value of
inventories solid evidence obtained shall be the basis and the purpose of holding the inventories and the impact of events after the
balance sheet date shall be considered.On the balance sheet date inventories shall be measured at lower of cost and net realizable value. When the net realizable value
is lower than the cost the provision for inventory devaluation shall be accrued. The provision for inventory devaluation shall be accrued
based on the difference between the cost of a single inventory item and its net realizable value. The provision for inventory devaluation
of a large number of inventories with low unit prices shall be based on the type of inventory; for inventories related to the product
range produced and sold in same region having the same or similar end use or purpose and difficult to be separated from other items
for measurement their provision for inventory devaluation can be combined and accrued.After the provision for inventory devaluation is accrued if the factors cause the previous written-down inventory value have
disappeared and the situation results in the fact that the net realizable value of the inventories higher than the book value the amount
of the provision for inventory devaluation that has been accrued shall be reversed and included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are received; packaging
materials are amortized by one-off amortization method when they are received.12. Held-for-sale assets and disposal group
If the book value of a non-current asset or to-be-disposed portfolio is recovered by the Company mainly through sale activities
(including the exchange of non-monetary assets with commercial nature the same below) the non-current asset or to-be-disposed
portfolio falls into held-for-sale category. The specific criteria: both of the following conditions shall be satisfied: a non-current asset
or to-be-disposed portfolio can be sold immediately under the current conditions based on the practice of selling such asset or to-be-
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
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-current assets Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). In the
event of an increase of the book value of the held-for-sale Disposal Portfolio minus sales expenses on the subsequent the balance sheet
date the amount previously written down shall be recovered and be reversed within the mount of the asset impairment loss recognized
in the non-current assets measured by the measurement “Guide for Held-For-Sale” after being classified as held for sale asset the
reversal amount shall be included in the current period profit or loss and the book value of all non-current assets (except for goodwill)
determined by the measurement on a pro-rata basis in accordance with the applicable “Guide for Held-For-Sale” shall be increased on
a pro-rata basis. The book value of the goodwill that has been deducted and the impairment loss of the assets recognized before the
classification of the held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall not be reversed.In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio there is no accrual or amortization for
depreciation and the interest from and other expenses from the liabilities in held-for-sale Disposal Portfolio shall still be recognized.When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category non-current asset or
Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or the non-current asset will be removed
from the Held-For-Sale Disposal Portfolio and be measured based on one of the following two values whichever is lower: (1) The
book value before being classified as held-for-sale category adjusted based on the depreciation amortization or impairment that should
have be confirmed if it is not classified as held-for-sale category; (2) recoverable amount.13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the Company has control joint
control or significant influence on the invested entity. The long-term equity investment of the Company that does not have control
joint control or significant impact on the investee shall be accounted as a financial asset measured at fair value with its changes included
into the current profits and losses. Among them if it is non-transactional the Company may choose to designate it as a financial asset
measured at fair value and its changes are included in the accounting of other comprehensive income at the time of initial recognition.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021For details of its accounting policies please refer to Note Ⅲ 9 “Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement 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
insufficient for offsetting the retained earnings shall be adjusted. The equity investments that are held prior to the combination date
and are recognized with equity recognized or as available-for-sale financial asset as other comprehensive income will not be given
accounting treatment for the moment.For a long-term equity investment obtained from a combination of businesses not under the same control the initial investment
cost of the long-term equity investment shall be based on the combination cost on the purchase date. The combination cost includes
the assets paid by purchaser the liabilities incurred or assumed and the sum of the fair value of issued equity securities. Where the
equity of combined parties not under the same control is obtained through multiple transactions and a business combination under the
same control is formed finally it shall be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal”
all transactions will be treated as a transaction that obtains control. If it is not a “package deal” the initial investment cost of the long-
term equity investment calculated by the cost method shall be calculated based on the sum of the book value of the equity investment
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
in the original holder and the new investment cost. The original share holding that measured using equity method the relevant other
comprehensive income does temporarily not conduct accounting treatment.Intermediary expenses such as for auditing legal services assessment and other related expenses incurred by a combining party
or a purchaser for business combination shall be recognized in current period profit or loss when incurred.The equity investments other than formed by business combination shall be initially measured at cost. The cost will be determined
based on the following amount according to different methods of the acquisition of long-term equity investment: the purchase price in
cash actually paid by the Company; the fair value of the equity securities issued by the Company the value agreed in relevant investment
contract or agreement; the fair value or original book value of the assets exchanged in non-monetary asset exchange transaction; the
fair value of the long-term equity investment itself. Any expenses taxes and other necessary expenses directly related to the acquisition
of long-term equity investments shall also be included in the cost of investment. The cost of long-term equity investment for the
additional investment that can exert significant influence on investee or implement joint control but does not constitute control shall
be the sum of the fair value of the originally held equity investment recognized in accordance with the Accounting Standards for
Business Enterprises No.. 22 – Recognition and Measurement of Financial Instruments and the cost for new investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control over the invested entity
(except for those constituting joint operators) or have significant impact on the invested entity. In addition the Company's financial
statements use the Cost Method to account for long-term equity investments which can control the long-term equity investment of the
investee.a. Long-term equity investment based on Cost Method
When accounting with Cost Method long-term equity investment is priced at the initial investment cost and the cost of the long-
term equity investment is adjusted by adding or recovering the investment. Except for the actual payment at the time of obtaining
investment or the cash dividends or profits included in the consideration but not yet issued the current investment income shall be
recognized according to the cash dividends or profits declared by the investee.b. Long-term equity investment accounted for by Equity Method
When accounting with Equity Method if the initial investment cost of a long-term equity investment is greater than the fair value
share of the identifiable net assets of the investee when investing and the initial investment cost of the long-term equity investment
shall not be adjusted; if the initial investment cost is less 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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
interests of the invested entity other than the net profit and loss other comprehensive income and profit distribution. When confirming
the share of the net profit and loss of the investee the net profit of the investee shall be adjusted and confirmed on the basis of the fair
value of the identifiable assets of the investee at the time of investment. If the accounting policies and periods adopted by the invested
entity are inconsistent with the Company the financial statements of the invested entity shall be adjusted in accordance with the
accounting policies and periods of the Company and the investment income and other comprehensive income shall be confirmed
accordingly. For the transactions between the Company and the associates and joint ventures the assets invested or sold do not
constitute a business and the unrealized gains and losses from internal transactions are offset against the portion of the Company that
is attributable to the proportion of the shares on this basis. investment profit and loss should be confirmed. However the unrealized
internal transaction losses incurred by the Company and the investee are not included in the impairment losses of the transferred assets.Where the assets invested by the Company into a joint venture or an associates constitute a business if the investor obtains long-term
equity investment but does not control the fair value of the invested business shall be deemed as the initial investment cost of the new
long-term equity investment and the difference between the initial investment cost and the book value of the invested business is fully
recognized in the current profits and losses. If the assets sold by the Company to a joint venture or an associate that constitute a business
the difference between the consideration value obtained and the book value of the business shall be fully recognized in the profits and
losses of the current period.When confirming the net loss that incurred by the investee should be shared the book value of the long-term equity investment
and other long-term equity that substantially constitutes the net investment of the investee are reduced to zero. In addition if the
Company has an obligation to bear additional losses to the investee the estimated liabilities shall be recognized according to the
estimated obligations and included in the current investment losses. If the investee achieves net profit in the following period the
Company shall resume recognizing the share of income after making up for the unrecognized share of loss.For the long-term equity investment in the joint ventures and associates held by the Company for the first time before the
implementation of the new accounting standards if there is a debit balance of equity investments related to the investment the current
profits and losses shall be accounted for by the straight-line amortization of the original remaining period.c. Acquisition of Minority Equity
In the preparation of the consolidated financial statements if the difference between the long-term equity investment added by
purchasing minority shares and the net assets share that should be continuously calculated by the subsidiary Company from the purchase
date (or the consolidation date) is calculated according to the proportion of newly added shares the retained earnings shall be adjusted;
and if the capital reserve is insufficient to offset the retained earnings shall be adjusted.d. Disposal of long-term equity investment
In the consolidated financial statements the parent Company partially of disposes of the long-term equity investment of the
subsidiary without losing control the difference of the corresponding net assets in the subsidiary between the disposal price and the
disposal of the long-term equity investment is included in the shareholders' equity. it shall be treated in accordance with the relevant
accounting policies described in “Notes on the preparation of consolidated financial statements” in Note Ⅲ.5 .For the disposal of long-term equity investment in other cases the difference between the book value of the disposed equity and
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
the actual acquisition price shall be included in the current profits and losses.If the long-term equity investment is accounted for by equity method the remaining equity after disposal is still accounted for by
equity method when disposing the other comprehensive income which were originally included in shareholder's rights and interests
shall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee. The owner's equity recognized
as a result of changes in the owner's equity of the investee other than net profit or loss other comprehensive income and profit
distribution it should be carried forward to the current profit and loss
For the long-term equity investment accounted by Cost Method the remaining equity is still accounted by Cost Method after
disposal other comprehensive income that recognized by equity method accounting or financial instrument recognition and
measurement criteria accounting before obtaining control over the investee shall be accounted for on the same basis as the assets or
liabilities directly disposed of by the investee and shall be settled to the current profit and loss in proportion. Changes of the net assets
of investee in the owner's equity other than net profit or loss other comprehensive income and profit distribution 's that recognized by
equity method shall be settled to the current profit and loss in proportion.Where the Company loses control over the investee due to disposal of part of its equity investment when preparing individual
financial statements if the remaining equity after disposal can exercise joint control or exert significant influence on the investee it
shall be accounted for by equity method instead and the remaining equity shall be adjusted by accounting by equity method when it is
deemed to be acquired. If the remaining equity after disposal cannot be jointly controlled or exerts significant influence on the investee
it shall be accounted for according to the relevant provisions of the financial instrument recognition and measurement criteria and the
difference between the fair value and the book value on the date of loss of control. It is included in the current profit and loss. Before
the Company obtains control over the investee other comprehensive income recognized by equity method accounting or financial
instrument recognition and measurement criteria is used to directly dispose of the relevant assets with the investee accounting treatment
based on the same basis as the investee directly disposes of related assets or liabilities when the control of the investee is lost
Accounting is treated on the same basis as the liabilities. Changes in the owner's equity other than net profit or loss other comprehensive
income and profit distribution of the investee's net assets recognized by the equity method are carried forward to the current profit or
loss when the control of the investee is lost. Among them the remaining equity after disposal is accounted for using the equity method.Where the remaining equity after disposal is accounted for by equity method other comprehensive income and other owner's equity
should be settled by proportion. If the remaining equity is accounted for using financial instrument recognition and measurement
standard all of other comprehensive income and other shareholder’s equity should be settled.If the Company loses its joint control or significant influence on the investee due to the disposal of part of the equity investment
the remaining equity after disposal shall be accounted for according to the financial instrument recognition and measurement criteria
and the difference between the fair value and the book value on the date of loss of joint control or significant influence is recognised
in the current profit or loss. The other comprehensive income recognized in the original equity investment by the equity method is
accounted for on the same basis as the investee's direct disposal of related assets or liabilities when the equity method is terminated
Owner's equity recognized as a result of changes in other owners' equity other 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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions until the loss of
control. If the above-mentioned transactions are part of a package transaction the transactions are treated as a transaction dealing with
the equity investment of the subsidiary and losing control. The difference between the book value of each long-term equity investment
corresponding to the disposal price and the disposal of the equity before loss of control is first recognized as other comprehensive
income and when the control is lost it is transferred to the current profit and loss of loss of control.14. Investment Property
Investment Property refers to property held for the purpose of earning rent or capital appreciation or both including land use
rights that have been leased land use rights that are held and prepared for transfer after appreciation and buildings that have been
rented. Investment property is initially measured at cost. The expenses related to investment property if the economic benefits related
to this asset are highly probable to flow into the Company and the cost can be measured reliably then the expense will account for as
the cost of 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. 21 “Long-TermAsset Impairment”.When the self-use property or inventory is converted into investment property or investment property is converted into self-use
property the book value before conversion is used as the recorded value after conversion.When the use of investment property is changed to self-use the investment property is converted into fixed assets or intangible
assets from the date of change. When the use of self-use property changes to earn rent or capital appreciation the fixed assets or
intangible assets are converted into investment property from the date of change. In the case of investment property measured by the
cost model when the conversion occurs the book value before conversion is used as the entry value after conversion; if it is converted
into investment property measured by the fair value model the fair value of the conversion date is used as the entry value after
conversion.When an investment real estate is disposed of or permanently withdrawn from use and is not expected to obtain economic benefits
from its disposal the confirmation of the investment real estate shall be terminated. Disposal income from the sale transfer retirement
or damage of investment properties is charged to the current profit and loss after deducting its book value and related taxes and fees.15. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods providing labor services renting or operating
management and having a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits
associated with them are likely to flow into the Company and their costs can be reliably measured. Fixed assets are initially measured
at cost and taking into account the impact of projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Fixed assets are depreciated over their useful lives using the straight-line method from the month following the scheduled
availability. The service life estimated net residual value and annual depreciation rate of various fixed assets are as follows:
Depreciation Depreciation Net esidual
Category Annual depreciation rate (%)
Method period (Year) rate(%)
straight-line
Buildings 8-50 5 1.90— 11.88
depreciation
straight-line
uipElectronic eqment 3-10 4、5 9.50—32.00depreciation
straight-line
Machinery equipment 5-28 4、5 3.39—19.20depreciation
straight-line
Transport facility 5-10 4、5 9.50—19.20depreciation
straight-line
Office equipment 3-10 4、5 9.50—32.00depreciation
straight-line
Other equipment 5-28 4、5 3.39—19.20depreciation
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 assetsFor details of Impairment test method and impairment provision method for fixed assets please refer to Note Ⅲ. 21 “Long-TermAsset 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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
disposal. The difference between the disposal income from the sale transfer retirement or damage of the fixed assets less the carrying
amount and related taxes is recognized in profit or loss for the current period.The Company reviews the useful life estimated net residual value and depreciation method of fixed assets at least at the end of
the year and changes as an accounting estimate if changes occur.16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure including various project expenditures
incurred during the construction period capitalized borrowing costs before the project reaches the expected usable status and other
related expenses. Construction in progress is carried forward to fixed assets when it is ready for its intended use.For details of the impairment test method and impairment provision method for construction in progress please refer to Note Ⅲ.21 “Long-Term Asset Impairment”.17. Borrowing Costs
Borrowing costs include interest on borrowings amortization of discounts or premiums ancillary expenses and exchange
differences arising from foreign currency borrowings. Borrowing costs directly attributable to the acquisition construction or
production of assets eligible for capitalization capitalization is began when asset expenditures have occurred borrowing costs have
occurred and the acquisition construction or production activities necessary to bring the assets to the intended usable or saleable state
have begun. And capitalization is stopped when the assets under construction or production that meet the capitalization conditions are
ready for their intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in which they
are incurred.The interest expenses actually incurred in the current period of special borrowings shall be capitalized after subtracting the interest
income from the unused borrowing funds deposited into the bank or the investment income obtained from the temporary investment.For the general borrowings according to the accumulated asset expenditures exceed the special borrowings. The capitalization amount
is determined by multiplying the weighted average of which accumulated asset expenditure exceeds the asset expenditure of the special
borrowing portion by the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weighted
average interest rate of general borrowings.During the capitalization period the exchange differences of foreign currency special borrowings are all capitalized; the exchange
differences of foreign currency general borrowings are included in the current profit and loss.Assets eligible for capitalization refer to assets such as fixed assets investment property and inventories that require a substantial
period of acquisition construction or production activities to achieve the intended use or sale status.If the assets eligible for capitalization are interrupted abnormally during the acquisition construction or production process and
the interruption period lasts for more than 3 months the capitalization of the borrowing costs shall be suspended until the acquisition
construction or production of the assets resumes.18. Right of use assets
Right of use assets refer to the right of the Company as a lessee to use the leased assets during the lease term.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(1) Initial measurement: At the beginning of the lease term the Company shall make the initial measurement of right of use assets
according to the cost. The cost includes the following four items: ①the initial measured amount of the lease liability. ②the amount
of the lease payment made at or before the beginning of the lease term where there is a lease incentive the relevant lease incentive
that have been enjoyed shall be deducted.③the incurred initial direct expenses is the incremental costs in the conclusion of the lease.④the expected costs to dismantle and remove the leased assets restore the site where the leased assets are located or the restore of the
leased assets to the agreed status in the lease terms excluding from having occurred for the production of inventory.
(2) Subsequent measurement: After the beginning of the lease term the Company adopts the cost model to make subsequent
measurement of the right of use assets that is to measure the right of use assets by cost reducing accumulated depreciation and
accumulated impairment losses. The Company shall adjust the book value of the right of use assets as the relevant provision of the
lease guidelines.From the beginning of the lease term the Company shall depreciate the assets of the right of use. The right of use assets usually
depreciated at the beginning of the month in the lease term. According to the purpose of the right of use the amount of depreciation
charge to the cost of the relevant assets or the current profit and loss. In determining the method of deprecation of the right of use assets
the Company shall make a decision on the manner of expected consumption of the economic benefits associated with the right of use
assets and shall depreciate the right of use assets in a straight line method. The Company follow the principles on determining the
depreciation life of the right of use assets. If it is reasonable to determine the ownership of the leased assets at the end of the lease term
deprecation shall be accrued for the remaining service life of the leased assets and if not deprecation shall be accrued on the shorter
term between the lease term and the remaining service life of the leased assets.In the event of impairment of the right of use assets the Company shall make subsequent depreciation in accordance with the
book value of the right of use assets after deducting the impairment losses.The Company has chosen not to confirm the right of use assets and lease liabilities for short-term lease (leases with a lease term
of not exceeding 12 months) and low-value asset leases and to charge the relevant lease payments to the current profit and loss or
related asset costs in a straight line method for each period of the lease term.19. Intangible assets
(1) Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the Company.Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost of intangible assets
if the relevant economic benefits are likely to flow to the Company and its costs can be measured reliably. Expenditure on other items
other than this is recognized in profit and loss when incurred.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.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Since the intangible assets with limited useful life are available for use the original value minus the estimated net residual value
and the accumulated amount of impairment reserve shall be amortized by the straight-line method during their expected service life.Intangible assets with uncertain service life shall not be amortized.Among them the useful life and amortization method of intellectual property are as follows:
Item Amortization period (year) Amortization method
Trademark 20 Straight-line method
At the end of the period the useful life and amortization methods of intangible assets with limited useful life are reviewed and if
any change occurs it is treated as a change of accounting estimate. In addition the useful life of intangible assets with uncertain service
life is also reviewed. If there is evidence that the period for which the intangible assets bring economic benefits to the enterprise is
foreseeable the useful life of intangible assets is estimated and amortized according to the amortization policy of intangible assets with
limited useful life
(2) Research and development expenditure
The Company's expenditure for internal research and development project is divided into research phase expenditure and
development phase expenditure.Expenditures for the research phase shall be recognized in profit or loss when incurred.Expenditures for the development phase that meet the following conditions shall be recognized as intangible assets and
expenditures in the development stage that fail to meet the following conditions are included in current profit and loss:
a. It is technically feasible to complete the intangible asset to enable it to be used or sold.b. The intent to complete the intangible asset and use or sell it;
c. The way in which intangible assets generate economic benefits including the ability to prove that the products produced from
the intangible assets having a market or the intangible assets having a market and the intangible assets will be used internally which
can prove its usefulness;
d. sufficient technical financial resources and other resources for supporting the development of the intangible assets and the
ability to use or sell the intangible assets.e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.If it is impossible to distinguish the expenditures between research phase and development phase all research and development
expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assetsFor details of the impairment test method and impairment provision method please refer to Note Ⅲ. 20 “Long-Term AssetImpairment”.20. Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting period and subsequent
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
periods with amortization period of more than one year. The Company's long-term deferred expenses mainly include lease of land use
right and renovation costs of factory building. Long-term deferred expenses are amortized on a straight-line basis over the estimated
benefit period.21. Long-term assets impairment
For fixed assets construction in progress intangible assets with limited useful life investment property measured by cost model
and non-current non-financial assets such as long-term equity investments in subsidiaries joint ventures and associates the Company
determines whether there is any indication of impairment on the balance sheet date. If there is any indication of impairment the
recoverable amount is estimated and the impairment test is carried out. Goodwill intangible assets with uncertain service life and
intangible assets that not yet ready for use are tested for impairment annually regardless of whether there is any indication of
impairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value the impairment
provision is made based on the difference and is included in the impairment loss. The recoverable amount is the higher of the fair value
of the asset less the disposal expense and the present value of the estimated future cash flow of the asset. The fair value of assets is
determined according to the sale agreement price in a fair transaction. If there is no sales agreement but there is an active market for
the asset the fair value is determined according to the buyer's bid for the asset; if there is neither sales agreement nor active market for
assets the fair value of assets shall be estimated based on the best information available. Asset disposal expenses include legal fee
taxes transportation expenses and direct expenses incurred to make assets saleable. The present value of the estimated future cash flow
of an asset is determined by the appropriate discount rate discounting and the estimated future cash flow generated by the asset during
its continuous use and final disposal. The asset impairment provision is calculated and confirmed based on individual assets. If it is
difficult to estimate the recoverable amount of an individual asset the recoverable amount of the asset is determined by the asset group
which the asset belongs to. An asset group is the smallest portfolio of assets that can generate cash inflows independently.The book value of the goodwill listed separately in the financial statements is amortized into asset groups or portfolios that are
expected to benefit from the synergies of business combinations when impairment tests are conducted. The test results show that the
recoverable amount of the asset group or portfolio containing the assessed goodwill is lower than its book value the corresponding
impairment losses should be confirmed. The amount of impairment loss is first deducted from the book value of the goodwill amortized
to the asset group or portfolio and then deducted proportionally from the book value of other assets according to the proportion of the
book value of assets other than goodwill in the asset group or portfolio.Once the above asset impairment loss is confirmed it will not be reversed to the part where the value is restored in the future
period.22. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration Post-employment Benefits
Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages bonuses allowances and subsidies employee welfare fees medical
insurance premiums maternity insurance premiums work injury insurance premiums housing fund labor union funds employee
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
education funds and non-monetary benefits. The Company recognizes the actual short-term employee's remuneration as a liability in
the accounting period in which employees provide services to the Company and recognizes them in profit or loss or related asset costs.Non-monetary benefits are measured at fair value.Post-employment Benefits mainly include basic retirement security unemployment insurance and annuities. The Post-
employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a Defined Contribution Plan is
adopted the corresponding amount of the deposit shall be included in the relevant asset cost or current profit and loss as incurred. (1)
The Defined Contribution Plan is recognized as a liability based on a fixed fee paid to an independent fund and is included in the
current profit and loss or related asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulative benefits unit
method Specifically the Company will convert the welfare obligation arising from the Defined Benefit Plan into the final value of the
departure time according to the formula determined by the expected cumulative benefits unit method; then it is attributed to the
employee's in-service period and is included in the current profit and loss or related asset cost.If the labor relationship with the employee is terminated before the employee's labor contract expires or if the employee is
encouraged to accept the reduction voluntarily when cannot withdrawing unilaterally the dismissal benefits provided by the termination
of the labor relationship plan or the reduction proposal and when confirming the costs associated with the restructuring involving the
payment of the dismissal benefits whichever is earlier the Company will recognize the employee compensation liabilities arising from
the dismissal benefits and included in the current profit and loss. However if the dismissal benefits are not expected to be fully paid
within 12 months after the end of annual reporting period they shall be treated in accordance with other long-term employee
compensations.The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal benefits. The
Company will pay the internal retired staff the salary and the social 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.22. Lease liabilities
At the beginning of the lease term the Company recognize the present value of the non-payable lease payment as lease liabilities
without the short lease and low-value lease assets. On calculating the present of the lease payment the Company adopt the lessee’s
incremental borrowing rate as the discount rate. The Company calculates the interest expense for each period in the lease term of the
lease liabilities as the discount rate and counts it towards the current profit and loss. The variable lease payments that not included in
the lease liability measurement charge to the current profit and loss on occurring. After the start of the lease term the Company
remeasures the lease liability at the present value of the changed lease payment amount when there is a change in the actual fixed
payment amount the index or ratio used to determine the lease payment the evaluation results of the purchase option the renewal
option or termination option change.24. Estimated liabilities
When the obligations related to the contingencies meet the following conditions they are recognized as estimated liabilities: (1)
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
The obligation is the current obligation assumed by the Company; (2) The performance of this obligation is likely to result in the
outflow of economic benefits; (3) The amount of the obligation can be reliably measured.On the balance sheet date taking into account factors such as risks uncertainties and time value of money related to contingencies
the estimated liabilities are measured in accordance with the best estimate of the expenditure required to perform the relevant current
obligations.If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by the third party the
compensation amount will be separately recognized as an asset when it is basically determined to be received and the confirmed
compensation amount does not exceed the book value of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more than the expected
economic benefit. If the contract to be executed becomes a loss contract and the obligation arising from the loss contract satisfies the
conditions for the recognition of the above-mentioned estimated liabilities the portion of the contract's estimated loss that exceeds
the recognized impairment loss (if any) of the contracted asset is recognized as the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed formal and have been announced to the public the amount of the estimated liabilities are
determined based on the direct expenses related to the reorganization subject to the recognition conditions of the aforementioned
estimated liabilities. For the restructuring obligation to the part of business sold the obligation related to the reorganization is confirmed
only when the Company promises to sell part of the business (that is when the binding sale agreement is signed).25. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined based on an equity
instrument in order to obtain services from employees or other parties. Share-based Payments include equity-settled share payment and
cash-settled share payment.a) Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value of the granting of
employees' equity instruments at the grant date. If the fair value is vested in the completion of the waiting period of service or the
fulfillment of the required performance conditions during the waiting period the amount of the fair value is calculated by the straight-
line method into the relevant costs or expenses based on the best estimate of the number of vesting equity instruments; Or If the vesting
right is granted immediately after the grant the calculation of the amount of the fair value is included in the relevant cost or expense
on the grant date and the capital reserve is increased accordingly.On each balance sheet date during the waiting period the Company makes the best estimate based on the latest information on
the changes in the number of employees with vesting rights and corrects the number of equity instruments that are expected to be
vested. The impact of the above estimates shall be included in the current related costs or expenses and the capital reserve is adjusted
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
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.b) Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company based on shares or other
equity instruments. If the vesting right is available immediately after the grant the relevant costs or expenses shall be included on the
date of grant and the liabilities shall be increased accordingly; if vesting right is available after the service is completed within the
waiting period or met the required performance conditions based on the best estimate of the vesting rights on each balance sheet date
of the waiting period according to the fair value of the liabilities assumed by the Company the services obtained in the current period
are included in the cost or expense and the liabilities are increased accordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the settlement of the
relevant liabilities and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan if the modification increases the fair value of the equity instruments
granted the increase in the fair value of the equity instruments is recognized accordingly. The increase in the fair value of equity
instruments refers to the difference between the fair value of the equity instruments before and after the modification. If the modification
reduces the total fair value of the share-based payment or adopts other methods that are not conducive to the employee the service
obtained shall continue to be accounted for as if the change has never occurred unless the Company cancels some or all of equity
instruments.During the waiting period if the granted equity instrument is cancelled the Company will cancel the granted equity instrument
as an accelerated exercise and the amount to be recognized in the remaining waiting period will be immediately included in the current
profit and loss and the capital reserve will be recognized. If the employee or other party can choose to meet the non-vesting conditions
but fails to meet the waiting period the Company will treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or Actual Controllers
In respect of the share-based payment transaction between the Company and the shareholders or actual controllers of the Company
If one of the settlement enterprise and the service receiving enterprise is in the Company and the other is outside the Company it shall
be accounted for in the consolidated financial statements of the Company according to the following provisions:
a.) If the settlement enterprise settles with its own equity instrument the share-based payment transaction shall be treated as
equity-settled share-based payment; otherwise it shall be treated as a cash-settled share-based payment.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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
and the capital reserve (other capital reserve) or liabilities shall be recognized.b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments the share payment
transaction shall be treated as equity-settled share payment; if the serviced enterprise has settlement obligation and grants its employees
other than its own equity instruments the share payment transaction shall be treated as a cash-settled share payment.For the share based payment incurred between companies within the group if the serviced enterprise and settlememt enterprise
are not the same then the payment should be recpgnized and measured in their individual financial statements they should be accounted
for using the above principles
26. Preferred Stock Perpetual Capital Securities and Other Financial Instruments
(1) Distinction between perpetual capital securities and Preferred Stock
Financial instruments such as perpetual bonds and preferred stocks issued by the Company as well as meeting the following
conditions shall be used as equity instruments:
a.) The financial instrument does not include contractual obligations to deliver cash or other financial assets to other parties or to
exchange financial assets or financial liabilities with other parties under potentially adverse conditions.b.) In the case of the financial instrument is to be settled or available with the Company's own equity instruments in the future if
the financial instrument is a non-derivative it does not include the contractual obligation to deliver a variable amount of its own equity
instruments; if it is a derivative the Company can only settle the financial instrument by exchanging a fixed amount of cash or other
financial assets with a fixed amount of its own equity instruments.Except for financial instruments that can be classified under the above conditions other financial instruments issued by the
Company should be classified as financial liabilities.If the financial instruments issued by the Company are compound financial instruments they are recognized as a liability based
on the fair value of the liability component and are recognized as “other equity instruments” based on the amount actually received
after deducting the fair value of the liability component. The transaction costs incurred in issuing a compound financial instrument are
apportioned in proportion to their respective total issue price between the liability component and the equity component.
(2) Accounting treatment methods such as perpetual capital securities and preferred stocks
Related interest dividends gains or losses of financial instruments such as perpetual capital securities and preferred stocks
classified as financial liabilities and gains or losses arising from redemption or refinancing are included in the current profits and
losses except for borrowing costs that meet the capitalization conditions (see Note 3 17 “Borrowing Fees”).When financial instruments such as perpetual capital securities and preferred stocks classified as equity instruments are issued
(including refinancing) repurchased sold or cancelled the Company shall treat it as a change in equity and related transaction costs
are also deducted from equity. The Company's allocation of equity instrument holders is treated as profit distribution.The Company does not recognize changes in the fair value of equity instruments.27. Revenue
The Company's operating income mainly includes income from selling goods income from providing services royalty income
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
interest income etc. When the Company signs a contract it evaluates the contract identifies the individual performance obligations
contained in the contract and determines whether the individual performance obligations are performed within a certain period of time
or at a certain point of time. When the Company has fulfilled all the performance obligations in the contract the revenue shall be
recognized respectively according to the transaction price apportioned to the performance obligations.
(1) Revenue recognition for fulfilling performance obligation at a certain time point
Generally the Company recognizes the revenue from the sales of goods based on the transaction price apportioned to the single
performance obligation when the customer obtains the control right of the relevant goods on the basis of comprehensively considering
the following factors: the Company has the right to receive payment in respect of the goods or services currently that is the customer
has the obligation to pay for the goods currently; the Company has transferred the legal ownership of the goods to the customer that
is the customer has the legal ownership of the goods; The Company has transferred the physical goods of the commodity to the
Customer or the Customer has obtained the qualification of physical goods right of the commodity. The consideration obtained by the
Company in respect of the transfer of the commodity is likely to be recovered; Other indications that the customer has taken control of
the commodity.The specific principles of the Company's sales revenue recognition are as follows: when the commodity have been delivered to
the customer and signed by the customer for confirmation or the ownership certificate of the commodity has been delivered to the
customer the sales revenue is recognized when the Company has received the payment or obtained the evidence of payment.
(2) Revenue recognition for fulfilling performance obligation within a certain period of time
For the performance obligations performed in a certain period of time such as the services provided the Company adopts the
output method or input method to determine the appropriate performance progress and recognizes the revenue according to the
performance progress in that period of time. On the balance sheet date the Company shall recognize the current income according to
the total transaction price of the contract multiplied by the progress of performance minus the accumulated recognized income. If one
of the following conditions is satisfied it is regarded as the performance obligation performed during a certain period of time: the
Customer obtains and consumes the economic benefits arising from the performance of the Company at the same time of the
performance of the Company; Customers can control the goods under construction during the performance of the contract; The products
produced by the Company during the performance of the Contract are of irreplaceable use and the Company shall be entitled to receive
payment for the accumulated part of the completed performance so far during the whole term of the Contract. Otherwise the Company
recognizes revenue at the point when the Customer acquires control of the relevant goods or services.The Company's rights to receive consideration for goods or services transferred to the Customer (and such rights depend on factors
other than the time passage) are presented as contractual assets which are subject to impairment on the basis of expected credit losses.The Company's right to collect consideration from customers unconditionally (only depending on the passage of time) is listed as
receivables. The obligation of the Company to transfer goods or services to customers for which consideration has been received or
receivable is presented as a contractual liability.28. Contract cost
1. Contract performance cost
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
The cost incurred by the Company for the performance of the contract which does not fall within the scope of other accounting
standards for business enterprises other than the income standard and meets the following conditions at the same time is recognized
as an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses
(or similar expenses) costs explicitly borne by the customer and other costs incurred solely as a result of the contract;
(2) The cost increases the Company's resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the amortization period has exceeded one
normal operating cycle at the time of its initial recognition.2. Contract acquisition cost
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it shall be recognized as an
asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if the Company does not obtain the contract.3. Amortization of contract costs
The assets related to the contract cost mentioned above shall be amortized at the time of performance of the obligation or according
to the performance progress on the same basis as the income recognition of the commodity or service related to the asset and shall be
recorded into the current profit and loss.4. Impairment of contract cost
If the book value of the above assets related to the contract cost is higher than the difference between the residual consideration
expected to be obtained by the Company due to the transfer of the goods related to the assets and the estimated cost to be incurred for
the transfer of the relevant goods the excess part shall be set aside as an impairment provision and recognized as an impairment loss
of the asset.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
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
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 management measures and there is no significant uncertainty in the amount
expected; (2) According to the "Regulations on the Openness of Government Information" that the local financial department officially
released and in accordance with the provisions of the "Regulations on the Openness of Government Information" the financial support
project and its financial fund management measures should be inclusive (any eligible enterprise can apply for them) rather than being
specifically tailored to specific companies; (3) The relevant grant approval has clearly promised the payment period and the
allocation of the payment is guaranteed by the corresponding budget so it can be reasonably ensure that it can be received within the
prescribed time limit; (4) Other relevant conditions (if any) to be met in accordance with the specific circumstances of the Company
and the grants.Government grants related to assets are recognized as deferred earnings and are divided into current profits and losses in a
reasonable and systematic way during the service life of the assets concerned. The government grants related to revenue which are
used to compensate for the related cost or loss in the subsequent period shall be recognized as deferred income and shall be recognized
in profit or loss in the period in which the related costs or losses are recognized; if it is used to compensate the related costs or losses
that has occurred it shall be directly recognized in the current profit and loss.It includes government grants related to both assets and income and different parts are separately classified for accounting
treatment; if it is difficult to distinguish the whole is classified as government grants related to income.Government grants related to the daily activities of the Company shall be included in other income or cost deductions according
to the nature of the economic business; government subsidies unrelated to daily activities shall be included in the non-operating
revenues and expenses.When the recognized government grants need to be returned if there are relevant deferred earnings balances the book balance of
related deferred earnings shall be deducted and the excess part shall be included in the current profits and losses or the book value of
assets shall be adjusted otherwise the book value of assets shall be directly included in the current profits and losses.The Company will obtain preferential policy loans discount in accordance with the finance will be allocated to the loan bank
discount funds and the finance will be directly allocated to the Company discount funds in two cases:
(1) If the finance department allocates the discount interest funds to the lending bank and the lending bank provides the loan to
the Company at the policy preferential interest rate the Company chooses to conduct accounting treatment according to the following
methods: the loan amount actually received shall be taken as the entry value of the loan and the relevant borrowing costs shall be
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
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 Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and previous periods are measured
by the expected amount of income tax payable (or returned) in accordance with the provisions of the Tax Law. The amount of taxable
income on which current income tax expenses are calculated is based on the corresponding adjustment of pre-tax accounting profits in
the reporting period in accordance with the relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis and the temporary difference between
the book value of items that are not recognized as assets and liabilities but which can be determined as their tax basis according to the
tax law are confirmed by the balance sheet liability method.Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of an asset or liability
arising from a transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss) relevant
deferred income tax liabilities shall not be recognized. In addition for taxable temporary differences related to investments in
subsidiaries associates and joint ventures if the Company is able to control the turnaround time of temporary differences and the
temporary difference is unlikely to be reversed in the foreseeable future the related deferred income tax liabilities shall not be
recognized. Except for the above exceptions the Company recognizes all other deferred income tax liabilities arising from taxable
temporary differences.Taxable temporary differences which related to the initial recognition of an asset or liability arising from a transaction that is
neither a business combination nor an accounting profit or taxable income (or deductible loss) relevant deferred income tax liabilities
shall not be recognized. In addition for taxable temporary differences related to investments in subsidiaries associates and joint
ventures if the temporary difference is unlikely to be reversed in the foreseeable future or the amount of taxable income used to offset
the temporary difference is unlikely to be obtained in the future the deferred income tax assets concerned shall not be recognized.Except for the above exceptions the Company recognizes other deferred income tax assets that can offset temporary differences subject
to the amount of taxable income that is likely to be obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years the corresponding deferred income tax assets
are recognized to the extent that it is probable that the future taxable income shall be used to offset the deductible losses and tax credits.On the balance sheet date the deferred income tax assets and deferred income tax liabilities shall be measured at the applicable
tax rates in the period in which the related assets are recovered or the related liabilities are recovered in accordance with the tax laws.On the balance sheet date the book value of deferred income tax assets is reviewed. and the book value 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.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.In addition to recognizing that the current income tax and deferred income tax related to other transactions and matters directly
included in shareholder's rights and interests shall be recognized in other comprehensive income or shareholder's rights and interests
and the book value of adjusted goodwill from deferred income tax resulting from the merger of enterprises the other current income
tax and deferred income tax expenses or gains shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the Company has legal rights to settle on a net basis and intends to settle on a net basis or acquire assets and pay off
liabilities at the same time the Company's current income tax assets and current income tax liabilities shall be presented on a net basis
after the offset.When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis and deferred income
tax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration department on the same
tax payer or to different tax payers but in the future during each important period of deferred income tax assets and liabilities being
reversed the taxpayer involved intends to settle the current income tax assets and liabilities on a net basis or acquire assets and pay
off liabilities simultaneously the deferred the income tax assets and deferred income tax liabilities of the Company shall be presented
on a net basis after offset.31. Lease
(1) Identification of the lease.
Lease refers to a contract in which the lessor cedes the right to use the right of asset to use to the lessee for a period. At the
beginning date of the contract the Company evaluates whether it is a lease or include in the contract which one of the contracts parties
cedes the right to control one or more identified assets in a certain period to exchange for a price. To determine whether the contract
cedes the right to control the identified assets in a certain period the Company evaluates whether the customer in the contract is entitled
to almost all financial benefits occurred by the identified assets and to dominate the use of identified assets during the period of use. If
the contract contains many separate leases the Company will break up the contract and make each lease accounting treatment separately.If the contract includes both the lease and non-lease portions the Company shall separate the lease and non-lease parts for accounting
treatment.
(2) The Company as a lessee
1) Lease Confirmation. On the beginning of the lease term the Company recognizes the right of use assets and lease liabilities for
the lease. Recognition and measurement of use rights assets and lease liabilities Notes III (18) "Right of use assets" and notes 3 and
(23) "Lease liabilities".
2) Lease modifications. Lease modification refer to modifications in lease scope lease value lease term out of the contract
including the addition or termination of the right to use one or more lease assets the extension or shortening of the lease term stipulated
in the contract. The effective date of the lease modifications refer to the date on which the parties agree on the lease modifications. The
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Company treats the lease modification as a separate lease for accounting when lease occurs to modify and meet the followings: ①The
lease modification extends the lease scope or the lease term by adding the right to use one or more lease assets. ②The increased value
is equivalent to the amount adjusted for the separate price of the extended scope and term as the circumstance of the contract.. Lease
modification is accounted as a separate lease
Contingent rentals shall be included in current profits and losses when actually occurring. On the effective date of the lease
modification the Company shall in accordance with the relevant provisions of the lease guidelines apportion the value of the changed
contract and re-determine the lease term afterwards. The revised discount rate is used to discount the changed lease payment in order
to re-measure the lease liability.In calculating the present value of the lease payment after the modification the Company shall use the lease-included interest rate
for the remaining lease period as the discount rate and if it is unable to determine the lease-included interest rate for the remaining
lease period the Company shall use the incremental loan rate of the lessee as the discount rate on the effective date of the lease
modification. With regard to the impact of the above lease liability adjustment the Company shall deal with the followings: ①If the
lease modification results in a reduction in the lease scope or in the lease term the lessee shall reduce the book value of the right of use
assets and include in the profit or loss related to the partial or complete termination of the lease as a profit or loss in the current period.②If other lease modifications result in remeasuring of lease liabilities the lessee adjusts the book value of the right of use assets
accordingly.3) Short-term leases and low-value asset leases The Company has chosen not to recognize right of use assets and lease liabilities
for short-term leases and low-value asset leases where the lease term is not more than 12 months and single lease assets are brand new
assets. The Company shall charge the relevant asset costs or current profits and losses in accordance with the straight-line method or
other systematic reasonable methods for each period of the lease term
(3) The Company as a lessor
On the basis that (1) the contract assessed is a lease or includes a lease the Company as a lessor divides the lease into a financial
lease and an operating lease at the beginning of the lease. If a lease essentially transfers almost all the risks and rewards associated with
ownership of the leased assets the lessor classifies the lease as a financial lease and a lease other than a financial lease as an operating
lease. A lease is usually classified as a financial lease if it has one or more of the following circumstances: ① At the end of the lease
term the ownership of the leased assets is transferred to the lessee; ② the lessee has the option to purchase the leased assets and the
purchase price is sufficiently low compared to the fair value of the leased assets at the time of the expected exercise of the option and
thus ③the lease term accounts for the majority of the life of the leased asset (not less than 75 per cent of the lease asset life) ; ④ at
the commencement date of the lease although the ownership of the asset is not transferred may reasonably be established at the
beginning of the lease The present value of the lease receipts is almost equal to the fair value of the leased assets (not less than 90 per
cent of the fair value of the leased assets); ⑤ The nature of the leased assets is special and if no major renovation is made only the
lessee can use them. The Company may also classify a lease as a financial lease if there are one or more of the following indications:
① If the lessee cancels the lease the loss caused by the cancellation of the lease to the lessor shall be borne by the lessee; ② the
profits or losses arising from fluctuations in the fair value of the residual value of the assets shall belong to the lessee; and ③ the
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
lessee shall be able to continue the lease until the next period at a rent well below the market level.1) Accounting treatment of financial lease. The initial measurement is made at the beginning of the lease period when the Company
recognizes the financial lease receivable for the financial lease and terminates the recognition of the financial lease assets. When the
Company makes initial measurement of the receivable financial lease the net investment in the lease shall be used as the recorded
value of the receivable financial lease. The net lease investment is the sum of the unsecured residual value and the lease receipts not
yet received at the lease term start date at the present value discounted at the interest rate included in the lease. The amount of the lease
receipt refers to the amount that the lessor shall collect from the lessee as a result of the transfer of the right to use the leased assets
during the lease term including: (1) the fixed payment amount and the substantial fixed payment amount to be paid by the lessee (2)
depends on the amount of the variable lease payment for the index or ratio which is determined at the time of initial measurement on
the basis of the index or ratio at the beginning of the lease term and (3) the exercise price of the option to purchase provided that it is
reasonably determined that the lessee will exercise that option ;(4) The amount to be paid by the lessee in the exercise of the option to
terminate the lease provided that the lease period reflects the lessee's option to terminate the lease and (5) the residual value of the
security provided by the lessee the party associated with the lessee and an independent third party with the financial capacity to perform
the security obligation. The Company calculates and recognizes interest income for each period of the lease term at a fixed periodic
interest rate. The cyclical interest rate refers to determining that the net rental investment is subject to an inclusive discount rate (in the
case of subletting if the lease inclusion interest rate cannot be determined the discount rate of the original lease (adjusted for the initial
direct costs associated with the subletting) or that the change in the financial lease is not accounted for as a separate lease and that if
the change takes effect on the lease date the lease will be classified as a revised discount rate as determined by the relevant provisions
at the time of the lease.If a financial lease changes and meets the following conditions the Company shall treat the change as a separate lease (1) the
change expands the lease by adding the right to use one or more leased assets and (2) the increased value is equivalent to the amount
adjusted for the expansion of the lease as the contract. If a change in a financial lease is not accounted for as a separate lease and if the
change is met on the commencement of the lease the lease will be classified as operating the lease conditions the Company shall from
the effective date of the lease change treat it as a new lease and take the net lease investment prior to the effective date of the lease
change as the book value of the leased assets.2）Accounting treatment of operating leases
During each period of the lease term the Company uses a straight-line method to recognize the lease receipts for operating leases
as rental income. Where the incentive provided provides a rent-free period the Company shall allocate the total amount of rent
according to the straight-line method during the entire lease period without deducting the rent-free period and the rental income shall
be recognized during the rent-free period. If the Company bears certain expenses of the lessee the expense shall be deducted from the
total rental income and distributed according to the balance of the rent income after deduction during the lease period.The initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost of the
assets under lease and shall be included in the current profit and loss in instalments during the lease term on the same basis as the rental
income. For fixed assets in operating leased assets the Company shall use a depreciation policy of similar assets to charge depreciation
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
and for other operating leased assets amortize them in a systematic and reasonable manner. Variable lease payments obtained by the
Company in connection with the operating lease that are not included in the lease receipts shall be included in the current profit and
loss when they actually occur. In the event of a change in an operating lease the Company shall as of the effective date of the change
treat it as a new lease for accounting and the amount of the pre-receivable or receivable lease receivable in connection with the pre-
change lease shall be deemed to be the amount receivable for the new lease.32 .Other important accounting policies and accounting estimates
(1) Termination of business
Termination of operation refers to a component that meets one of the following conditions can be separately distinguished and
has been disposed of or classified as held for sale by the Company: ①This component represents an independent major business or a
separate major business area. ②This component is part of an associated plan to dispose of an independent major business or a separate
major business area. ③This component is a subsidiary Company acquired specifically for resale.For the accounting treatment methods for termination of operations please refer to the relevant descriptions in Note 3 12 “Assetsheld for sale and disposal group".
(2) Hedge accounting
In order to avoid some risks the Company hedges some financial instruments as hedging instruments. For the hedges meeting the
specified conditions the Company adopts the hedge accounting method for treatment. The hedging of the Company is fair value
hedging.At the beginning of hedging the Company formally designates hedging instruments and hedged items and prepares written
documents on hedging relationship and risk management strategy and risk management objectives of the Company engaged in hedging.In addition the Company will continuously evaluate the effectiveness of hedging at the beginning and after the hedging.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 has meet the conditions for the application of hedge accounting the application
of hedge accounting shall be terminated.33. Significant accounting judgments and estimates
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
In the process of applying accounting policies due to the inherent uncertainty of business activities the Company needs to judge
estimate and assume the book value of statement items that cannot be accurately measured. These judgments estimates and assumptions
are based on the Company's management's past historical experience and other relevant factors. These judgments estimates and
assumptions will affect the reported amounts of income expenses assets and liabilities and the disclosure of contingent liabilities at
the balance sheet date. However the actual results caused by the uncertainty of these estimates may be different from the current
estimates of the Company's management resulting in a significant adjustment to the carrying amount of the assets or liabilities affected
in the future.The Company reviews the aforesaid judgments estimates and assumptions on a regular basis on the basis of going concern. If the
change of accounting estimates only affects the current period of change the number of impacts shall be recognized in the current
period of change. If the change affects both the current and future periods the number of impacts will be confirmed in the current and
future periods of the change.On the balance sheet date the Company needs to judge estimate and assume the amount of financial statement items in the
following important areas:
1. Impairment of financial assets
The Company uses the expected credit loss model to evaluate the impairment of financial instruments. The application of the
expected credit loss model requires significant judgment and estimation and all reasonable and basis information including forward-
looking information shall be considered. In making these judgments and estimates the Company deduces the expected changes in the
debtor's credit risk based on historical data and combined with economic policies macroeconomic indicators industry risks external
market environment technological environment changes in customer conditions and other factors.2. Inventory falling price reserves
According to the inventory accounting policy the Company measures according to the lower of cost and net realizable value. For
the inventory whose cost is higher than net realizable value and which is obsolete and unsalable the Company makes provision for
inventory falling price. Impairment of inventories to net realizable value is based on the evaluation of the marketability of inventories
and their net realizable value. The appraisal of impairment of inventories requires the management to make judgment and estimation
on the basis of obtaining conclusive evidence and considering factors such as the purpose of holding inventories and the influence of
events after the balance sheet date. The difference between the actual result and the original estimate will affect the book value of
inventory and the accrual or reversal of inventory depreciation reserve during the period when the estimate is changed.3. Provision for impairment of long-term assets
On the balance sheet date the Company judges whether there are signs of possible impairment for non-current assets other than
financial assets. For intangible assets with uncertain service life in addition to the annual impairment test the impairment test is also
carried out when there are signs of impairment. Other non-current assets other than financial assets shall be tested for impairment when
there are indications that their book amounts are not recoverable.When the book value of an asset or asset group is higher than the recoverable amount that is the higher of the net amount of the
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
fair value minus the disposal expenses and the present value of the estimated future cash flow it indicates that an impairment has
occurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the sales agreement price or
observable market price of similar assets in fair transactions and deducting the incremental cost directly attributable to the disposal of
such assets.When estimating the present value of future cash flow it is necessary to make a significant judgment on the output sales price
related operating costs and the discount rate used in the calculation of the present value of the asset (or asset group). In estimating the
recoverable amount the Company will use all relevant information available including forecasts of production selling price and related
operating costs based on reasonable and supportable assumptions.The Company shall test whether goodwill is impaired at least every year. This requires an estimate of the present value of the
future cash flows of the asset group or portfolio of asset groups to which goodwill has been allocated. When predicting the present
value of future cash flow the Company needs to predict the cash flow generated by the future asset group or asset group portfolio and
at the same time select the appropriate discount rate to determine the present value of future cash flow.4. Depreciation and amortization
After considering the residual value of investment real estate fixed assets and intangible assets the Company will accrue
depreciation and amortization on a straight-line basis during their service lives. The Company reviews the service life regularly to
determine the amount of depreciation and amortization expenses to be included in each reporting period. The service life is determined
by the Company based on the past experience of similar assets and in portfolio with the expected technological updates. If there is a
significant change in previous estimates the depreciation and amortization charges will be adjusted in the future.5. Deferred income tax assets
To the extent that there is likely to be sufficient taxable profits to offset the losses the Company recognizes deferred income tax
assets for all unused tax losses. This requires the Company's management to use a large number of judgments to estimate the time and
amount of future taxable profits combined with tax planning strategies to determine the amount of deferred income tax assets to be
recognized.6. Income tax
In the normal business activities of the Company there are certain uncertainties in the final tax treatment and calculation of some
transactions. Whether some items can be paid before tax requires the approval of the tax authorities. If there is a difference between
the final determination result of these tax matters and the amount initially estimated the difference will have an impact on the current
income tax and deferred income tax during the final determination period.7. Accrued liabilities
According to the terms of the contract existing knowledge and historical experience the Company estimates and makes
corresponding provision for product quality assurance estimated contract losses liquidated damages for delayed delivery etc. In the
event that such contingencies have formed a current obligation and the performance of the current obligations is likely to result in
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
outflow of economic benefits from the Company the Company recognizes the contingencies as estimated liabilities based on the best
estimate of the expenditure required to perform the relevant current obligations. The recognition and measurement of the estimated
liabilities depend to a large extent on the judgment of the management. In the process of judgment the Company needs to evaluate the
risks uncertainties time value of money and other factors related to these contingencies.Among them the Company will make an estimated liability for the after-sales quality maintenance commitments provided to
customers for the sale maintenance and renovation of the goods sold. The Company's recent maintenance experience data have been
taken into account when estimating liabilities but the recent maintenance experience may not reflect the future maintenance situation.Any increase or decrease in this provision may affect the profit and loss in the future years.8. Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. When estimating the fair value
of an asset or liability the Company adopts the available observable market data available. If the first level input value cannot be
obtained the Company will employ a qualified third-party appraiser to perform the appraisal. The Company works closely with
qualified external appraisers to determine the appropriate valuation techniques and inputs to the relevant models
IV. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in the
current period the difference between the sales of goods taxable 1%，3%、5%、6%、9%、、Value Added Tax
services and taxable services income calculated in accordance with the 13%
provisions of the Tax Law is the taxable value-added tax.Urban Maintenance &
According to the actual value-added tax 5%、7%Construction Tax
Extra charges of education According to value added tax and consumption tax on the basis of actual
3%
funds payment
Local Extra Charges of According to value added tax and consumption tax on the basis of actual
2%
Education Funds payment
Corporate Taxes According to taxable income 15%、17%、25%According to 70% of original value of the real estate (or rental income)
Property Tax as the tax base; according to the original value of the real estate deducted 1.2%、12%30% at a time.The Company conducts VAT taxable sales or imports goods. According to the announcement issued by Ministry of Finance State
Administration of Taxation and China Custom about the policy relating to deepening VAT reform (Announcement by Ministry of
Finance State Administration of Taxation and China Custom (2019) No.39) from 1st April 2019 onwards the applicable rates are
adjusted to 13%/9%. Meanwhile the Company can deduct VAT by additional deductible rate of 10% from 1st April 2019 to 31st
December 2021 because of its business nature as service provider.Representation on tax payers of different enterprise income tax rates:
Tax Payers Income Tax Rate
Jingliang (Singapore) International Trade Co. Ltd. 17%
Beijing Guchuan Bread Food Co. Ltd. 15%
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
2. Important preferential tax policies and basis
Hangzhou Linan Little Angel Food Co. Ltd. a 4th tier subsidiary Company of the Company is a welfare enterprise. Since May
2016 it has enjoyed the preferential VAT policy of immediate refund upon payment in Preferential Value-Added Tax Policies for
Promoting the Employment of Disabled Persons (CaiShui [2016] No.52).In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation “Notice on PreferentialEnterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai Shui[2009] No.70) Hangzhou Linan Little Angel
Food Co. Ltd. a 4th tier subsidiary Company of the Company: Where an enterprise employs persons with disabilities on the basis of
deduction according to the wages paid to the disabled workers it may deduct the amount of taxable income according to 100% of the
wages paid to the disabled workers.Linqing Little Prince Food Co. Ltd. a fourth-level subsidiary of the Company shall be subject to 50% of the sales revenue on
the basis of the stamp tax payable in the industrial procurement link and sales link in the purchase and sale contract of industrial
enterprises according to the annountment No.10 2018 issued by Shandong Provincial Tax Bureau. The base of stamp duty payable in
2021 shall be calculated according to 50% of the sales revenue.Company’s level 4 subsidiary-Liaoning Xiaowangzi Food Limited according to the Supplementary Announcement on Land Use
Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ No.140 Clause 13 states that public land such as
municipal street square public green etc. can be exempted from land use tax when computing land use tax the area used in the
computation is total area less the area for afforest and street.Jingliang (Singapore) International Trade Co. Ltd. a 3rd tier subsidiary of the Company levies taxes on the principle of
territoriality. The Company is taxed on the territoriality principle. According to Singapore's preferential tax policy the Company enjoys
tax exemption plan is as follows: for the first SGD10000 of taxable income amount the taxable income amount shall be reduced by
75%; for the portion between SGD$10001 and SGD$200000 the taxable income amount shall be reduced by 50%; For the portion
exceeding SGD$200000 the taxable income amount shall not be reduced. The Company shall pay income tax at the rate of 17% on
the taxable income amount after exemption.Beijing Guchuan Bread&Food Co. Ltd. a 3rd tier subsidiary of the Company is a high-tech enterprise. On November 30 2018
it obtained the certificate of high-tech enterprise and the certificate number GR201811007245. It is valid for three years. It enjoys thepreferential tax policy of paying enterprise income tax at the 15% tax rate according to the relevant provisions of both “Law of thePeople's Republic of China on Tax Collection and Administration” and “Rules for the Implementation of the Tax Collection andAdministration Law of the People's Republic of China”.The Company level 4 subsidiary Jingliang (Hebei) Oil Industry Co. Ltd. according to the financial department documents local
taxation bureau in hebei province hebei province document ji caishui [2019] no. 56 "about parts reserve commodity announcement
concerning the tax policy accounting books shall be exempt from stamp duty for funds to undertake business book stand in the process
of buying and selling contract commodity reserves shall be exempt from stamp duty other parties in the contract should pay the stamp
duty shall also be subject to duty-payment according to the parties. Property tax and land use tax of cities and towns shall be exempted
from the property tax and land use tax of cities and towns that undertake the business of commodity reserve for their own use. The
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
notice will be executed on January 1 2019 and will terminate on 31st December 2021.Jingliang (Hebei) Oil Industry Co. Ltd. a 4th subsidiary Company of the Company exempts the sale of edible vegetable oil storedby the government from VAT according to “Notice of the Ministry of Finance and the State Administration of Taxation on the Levyand Exemption of Value Added Tax for Food Enterprises”（Cai Shui [1999] No.198）
The Company level 3 subsidiary Beijing day weikang grease DiaoXiao center co. LTD. according to the national tax
administration of the ministry of finance the notice about food enterprises exempted from VAT tax word (1999) article 5 198
responsible for collection and storage of grain purchase and sale of state-owned grain enterprises and business duty-free items listed in
the notice of other food business and government reserves edible vegetable oil sales enterprises which should be examined by the
competent tax authorities deemed tax-exempt status not reported to the competent tax authorities where the audit determined that no
exemption From June 1 2017 to December 31 1999 the Company will exempt edible vegetable oil stored by the government from
VAT.The level 2 subsidiary of the Company-Jingliang Caofeidian Agricultural Development Limited according to the document
JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District Tangshan affiliated to State Administration of
Taxation and also followed the rules in Law of the People's Republic of China on the Administration of Tax Collection The
Implementation Guideline of Law of the People's Republic of China on the Administration of Tax Collection the rice under the brand
of Tixiang produced by Caofeidian Company if exempted from VAT.The level 2 subsidiary of the Company-Jingliang Caofeidian Agricultural Development Limited according to the rules under
Clause 27 of Corporate Law and its Implementation Guideline Clause 86 the rice under the brand of Tixiang produced by Caofeidian
Company if exempted from Corporation tax.Ⅴ. Changes in accounting policies accounting estimates and explanation of corrections to previous errors
1. Changes in accounting policies
On December 7 2018 the Ministry of Finance issued the "Notice on the Amendment and Printing of the ‘Accounting Standards
for Business Enterprises No. 21 – lease' " (Finance and Accounting [2018] No. 35). Based on the accounting standard revision and the
requirements of the notice of the Ministry of Finance Jingliang Holdings shall implement the new lease standards as of January 1
2021. For all leases the Company shall recognize the right of use assets and lease liabilities (except short-term leases and low-value
asset leases) and recognize depreciation and interest expense respectively. For short-term leases and low-value asset leases the
Company shall not recognize the right of use assets and lease liabilities. In accordance with the requirements set out in the new lease
guidelines the Company has chosen not to re-evaluate whether a contract that exists before January 1 2021 is a lease or includes a
lease. In the case of the Company as a lessee it has chosen to simplify the retroactive adjustment method to bridge the process by
adjusting only the amounts of the "use rights assets" and "lease liabilities" items in the Financial Statements of January 1 2021 and
not the comparable period information for other items on the balance sheet.2. Changes in accounting estimates
There is no change in accounting estimate during the reporting period.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.4. The first time to implement the new lease standard adjustment and the first time to implement the financial statements at the
beginning of the year related items
Consolidated Balance Sheet
Monetary Unit: RMB Yuan
Items 30 June 2021 1 January 2021 Adjustments
Current Assets:
Monetary capital 335466169.61 335466169.61
Transactional financial assets 63478071.73 63478071.73
Derivative financial assets - -
Notes receivable 456565.85 456565.85
Accounts receivable 92245667.60 92245667.60
Receivables financing - -
Prepayment 282343218.05 282234970.05 -108248.00
Other receivables 541905656.97 541905656.97
Including: Interest receivable
Dividends receivable
Inventory 1225083742.26 1225083742.26
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 845450678.36 845450678.36
Total current assets 3386429770.43 3386321522.43 -108248.00
Non-current assets:
Long-term equity investment 217762487.79 217762487.79
Other equity instruments investment 20000000.00 20000000.00
Other non-current financial assets
Investment property 22560212.50 22560212.50
Fixed assets 1131143854.07 1131143854.07
Construction in process 28458413.67 28458413.67
Right of use assets 2722789.09 2722789.09
Intangible assets 354139335.32 354139335.32
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items 30 June 2021 1 January 2021 Adjustments
Development expenditure
Goodwill 191394422.51 191394422.51
Long-term deferred expenses 20529601.50 20529601.50
Deferred income tax assets 3346814.27 3346814.27
Other non-current assets 319739581.67 319739581.67
Total non-current assets 2309074723.30 2311797512.39 2722789.09
Total assets 5695504493.73 5698119034.82 2614541.09
Current liabilities:
Short-term borrowings 1497414079.05 1497414079.05
Derivative financial liabilities 371219136.84 371219136.84
Accounts payable 75384075.39 75384075.39
Account collected in advance 1087874.02 1087874.02
Contract liabilities 346874260.90 346874260.90
Employee payroll payable 33345136.94 33345136.94
Taxes payable 50884214.64 50884214.64
Other payables 72292881.24 72292881.24
Including: Interest payable 21082795.47 21082795.47
Dividends payable 11013302.88 11013302.88
Other Liabilities 8319696.79 8319696.79
Total current liabilities 2456821355.81 2456821355.81
Non-current liabilities:
Long-term borrowings
Lease liabilities 2614541.09 2614541.09
Long-term payable to employees 5677134.00 5677134.00
Estimated liabilities
Deferred income 68716699.34 68716699.34
Deferred income tax liabilities 65115801.22 65115801.22
Other non-current liabilities
Total non-current liabilities 139509634.56 142124175.65 2614541.09
Total liabilities 2596330990.37 2598945531.46 2614541.09
Owners' equity (or Shareholders' equity):
Capital stock 726950251.00 726950251.00
Other equity instruments
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items 30 June 2021 1 January 2021 Adjustments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1674828350.95 1674828350.95
Less: treasury stock
Other comprehensive income -363258.66 -363258.66
Special reserves
Surplus reserves 122122436.98 122122436.98
Undistributed profit 187033763.26 187033763.26
Total equity attributable to the parent Company 2710571543.53 2710571543.53
Minority equity 388601959.83 388601959.83
Total owners' equity (or shareholders' equity) 3099173503.36 3099173503.36
Total liabilities and owners' equity (or shareholders' equity) 5695504493.73 5698119034.82 2614541.09
Parent Company balance sheet
Monetary Unit: RMB Yuan
Items 30 June 2021 1 January 2021 Adjustments
Current Assets:
Monetary capital 1523322.79 1523322.79
Accounts receivable 11784.00 11784.00
Prepayment 423679.12 423679.12
Other receivables 103341.26 103341.26
Including: Interest receivable
Dividends receivable
Inventory 3775954.85 3775954.85
Other current assets 2445772.47 2445772.47
Total current assets 8283854.49 8283854.49
Non-current assets:
Long-term equity investment 2626437846.24 2626437846.24
Other equity instruments investment 20000000.00 20000000.00
Investment property 6222001.73 6222001.73
Fixed assets 2809083.51 2809083.51
Intangible assets 209185.10 209185.10
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items 30 June 2021 1 January 2021 Adjustments
Long-term deferred expenses
Total non-current assets 2655678116.58 2655678116.58
Total assets 2663961971.07 2663961971.07
Current liabilities:
Short-term borrowings
Accounts payable
Account collected in advance 38896.41 38896.41
Contract liabilities
Employee payroll payable 341902.14 341902.14
Taxes payable 1037881.62 1037881.62
Other payables 309067618.99 309067618.99
Including: Interest payable 21082795.47 21082795.47
Dividends payable 3213302.88 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 310486299.16 310486299.16
Non-current liabilities:
Long-term borrowings
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 310486299.16 310486299.16
Owners' equity (or Shareholders' equity):
Capital stock 726950251.00 726950251.00
Capital reserves 2379144900.84 2379144900.8
Less: treasury stock
Surplus reserves 109487064.39 109487064.39
Undistributed profit -862106544.32 -862106544.32
Total owners' equity (or shareholders' equity) 2353475671.91 2353475671.91
Total liabilities and owners' equity (or shareholders' equity) 2663961971.07 2663961971.07
Ⅵ. Notes on Items in Consolidated Financial Statements
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Note: The ‘beginning’ of the period refers to January 1 2021 and the ‘end’ of the period refers to June 30 2021. The previous
period refers to the half of year 2020 and the current period refers to the half of year 2021.1. Monetary funds
(1) Classification list
Items Ending Balance Beginning Balance
Cash 90718.49 16761.72
Bank Deposits 649756766.18 299235964.61
Other Currency Funds 130107110.90 36213443.28
Total 779954595.57 335466169.61
Among them: the total amount of money deposited abroad 11807029.94 3153447.17
(2) At the end of the period there are 1077152.20 yuan of freezing which is restricted funds and the fund has been released
freezing on July 9th2021
(3) At the end of the period there is no funds deposited abroad and the return of funds is restricted.
2. Transactional financial assets
Items Ending Balance Beginning Balance
Financial assets measured at fair value with changes included
363000000.00 63478071.73
in current profits and losses
Among them: debt instrument investment 363000000.00 63478071.73
Designated as financial assets measured at fair value with
changes included in current profits and losses
Among them: debt instrument investment
equity instrument investment
others
Total 363000000.00 63478071.73
3. Derivative Financial Assets
Items Ending Balance Beginning Balance
Changes in fair value of hedging instruments 75597717.39
Total 75597717.39
Note: The Company hedges the inventory and expected transactions corresponding to the varieties involved in production operation
and trade and the hedging instruments are listed in the items in this table.4. Notes receivable
(1) Classification list
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Ending Balance Beginning Balance
Bank acceptance bill 456565.85
Commercial acceptance bill
Total 456565.85
5. Accounts Receivable
（1）Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 94405127.19
Among them: Within the credit (within 3 months) 78698131.72
Credit period to 1 year 15706995.47
1 to 2 years (including 2 years) 2702539.46
2 to 3 years (including 3 years) 5254.50
3 to 4 years (including 4 years) 45270.42
4 to 5 years (including 5 years) 51420.00
More than 5 years 400259.50
Total 97609871.07
（2）Present according to the method of provision for bad debt
Ending Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1325135.40 1.36 1325135.40 100.00
Portfolio provision for bad debts 96284735.67 98.64 156458.61 0.16 96128277.06
Among them: aging portfolio 83138909.27 85.17 156458.61 0.19 82982450.66
related parties portfolio 13145826.40 13.47 0.00 13145826.40
Total 97609871.07 ---- 1481594.01 ---- 96128277.06
（Continued）
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts 1325135.40 1.41 1325135.40 100.00
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Beginning Balance
Book Balance Bad Debt Provision
Type(s)
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Portfolio provision for bad debts 92402126.21 98.59 156458.61 0.17 92245667.60
Among them: aging portfolio 69364375.49 74.01 156458.61 0.23 69207916.88
related parties portfolio 23037750.72 24.58 23037750.72
Total 93727261.61 一一 1481594.01 一一 92245667.60
A. Separate provision for bad debts
Ending Balance
Name Accounts Bad Debt Provision
Provision Reason
Receivable Provision Ratio
Expected unrecoverable
Beijing Xidan spicy town food limited 996000.00 996000.00 100.00 on claim
Expected unrecoverable
Beijing Rongfa Lida Grain and Oil Trade Co. Ltd. 163143.00 163143.00 100.00 on claim
Expected unrecoverable
Fujian Jingxin Industrial Group Co. Ltd 151844.00 151844.00 100.00 on claim
Expected unrecoverable
Beijing Guotai Ping'an Department Store Co. Ltd. 10862.90 10862.90 100.00 on claim
Beijing Guotai Ping'an Tianzhu Commercial Expected unrecoverable
1809.60 1809.60 100.00
on claim
Development Co. Ltd.Carrefour (Shanghai) Supply Chain Management Co. Expected unrecoverable
875.90 875.90 100.00
on claim
Ltd. Tianjin Branch
Expected unrecoverable
Beijing Shunyi Longhua Shopping Center 600.00 600.00 100.00 on claim
Total 1325135.40 1325135.40 －－ －－
B. Portfolio provision for bad debts
1. Portfolio provision: aging portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year (including 1 year) 81264049.89 69026628.09 7466.13
Among them: Within the credit
67340203.17 0 68653321.59 0
(within 3 months)
Credit period to 1 year 13923846.72 2 373306.50 7466.13 2
1 to 2 years (including 2 years) 1674379.46 14329.50 5 137267.48 6863.37 5
2 to 3 years (including 3 years) 31789.50 6357.90 20 31789.50 6357.90 20
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
3 to 4 years (including 4 years) 45270.42 22635.21 50 45270.42 22635.21 50
4 to 5 years (including 5 years) 51420.00 41136.00 80 51420.00 41136.00 80
More than 5 years 72000.00 72000.00 100 72000.00 72000.00 100
Total 83138909.27 156458.61 69364375.49 156458.61
2. Portfolio provision: related parties portfolio
Ending Balance Beginning Balance
Name Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Related parties portfolio 13145826.40 23037750.72
Total 13145826.40 23037750.72
（3） details of bad debt provision
Beginning The amount changed for the period Ending Balance
Items
Balance Addition Withdrawal Write-off Other
or reversal changes
Credit impairment loss 1481594.01 1481594.01
Total 1481594.01 1481594.01
（4）Accounts receivable actually written off in the current period
The Company has no accounts receivable written off during the reporting period.
（5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Accounts Ratio of totalaccounts Whether Bad Debt
Debtors Aging
receivable receivable (%) related Provision
Xilin Gol League hongjingyuan Within 3
13098446.48 13.42 No
Oil Co. Ltd months
Tangshan Caofeidian District Within
12329480.04 12.63 No
Finance Bureau 1 year f
Within 3
Shanghai Laiyifen Co. Ltd 4930665.60 5.05 No
months
Zhejiang Lvqin Supply Chain Within 3
4841919.36 4.96 No
Management Co. Ltd months
Beijing Ershang Wangzhihe Food Within 3
4439008.84 4.55 No
Co. Ltd months
Total 39639520.32 40.61
6. Advanced Payment
(1) Advances are presented by age
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 580122848.03 99.91 282123364.15 99.96
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Ending Balance Beginning Balance
Aging
Amount Ratio(%) Amount Ratio(%)
1 to 2 years (including 2 years) 521555.14 0.09 88505.90 0.03
2 to 3 years (including 3 years) 0.00 0.00 0.00 0.00
More than 3 years 23100.00 0.00 23100.00 0.01
Total 580667503.17 100.00 282234970.05 100.00
(2) Advance payment of the top five Ending Balances by prepaid objects
Ratio of the total ending balance of
Debtor Name Ending Balance
prepayments (%)
Hong Kong Yuheng Industrial Co. Ltd 217529005.27 37.46
SINO Grain Oil Co. Ltd 128113768.73 22.06
Tianjin Port Customs of the People's Republic of China 42576851.75 7.33
APICAL (MALAYSIA) SDN. BHD. 38609493.90 6.65
Anhui Anliang International Development Co. Ltd 22476160.00 3.87
Total 449305279.65 77.38
7. Other Receivables
(1) Overview
A Classification
Item(s) Ending Balance Beginning Balance
Interest Receivable
Dividend Receivable
Other Receivables 88750805.46 541905656.97
Total 88750805.46 541905656.97
(2) Other Receivable
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year) 87538405.21
Among them: Within the credit (within 3 months) 27554116.61
Credit period to 1 year 59984288.60
1 to 2 years (including 2 years) 273797.85
2 to 3 years (including 3 years) 452400.00
3 to 4 years (including 4 years) 162665.99
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Aging Ending Balance
4 to 5 years (including 5 years) 30000.00
More than 5 years 350000.00
Total 88807269.05
B. Classification by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Guaranteed Deposit and Deposit 51999954.07 535330041.21
Intercourse Funds of Units 35905866.03 5472834.58
Tax Refund Receivables 302433.21
Employee Receivables 535230.87 532115.87
Personal Intercourse Funds 50000.00 50000.00
Others 316218.08 274695.69
Total 88807269.05 541962120.56
C. Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected credit loss
Provision for bad debt Expected credit loss for Expected credit loss for the whole period Total
the whole period (with
in the next 12 months (no credit
credit impairment)
impairment)
Amount on 1st January 2021 6463.59 50000.00 56463.59
Carrying amount on 1st January
2021 that in this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
Provision for the period
Reverse for the period
Transfer for the period
Write off for the period
Other changes
Amount on 31st June 2021 6463.59 50000.00 56463.59
D. Details of bad debt provision
Carrying Amount changes for the period Carrying
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
amount at the Addition Withdrawal or Write- Other amount at
Type
beginning reversal off changes the end
Credit impairment 56463.59 56463.59
loss
Total 56463.59 56463.59
E. Other receivables actually written off in the current period
The Company has no other receivables actually written off during the reporting period.F. Other receivables according to top five of balance at end of period collected by debtors
Proportion in
Ending balance
Balance at End of overall ending
Name of Organization Nature of Funds Aging of bad debt
Period balance of other
reserves
receivables (%)
Guaranteed
Dalian Commodity Exchange Deposit and 26911000.00 Within 1 year 30.30
storage fees
Intercourse Funds
CITIC Securities Co. Ltd Within 3 months
of Units 20200000.00 22.75
China Chemical Engineering Construction fund
Fourth Construction Co. Ltd 8280628.80 Within 1 year 9.32
Zhongtian Futures Co. Ltd Futures margin 6796618.40 Within 3 months 7.65
Guaranteed
ADM International Sarl
Deposit 6457800.00 Within 3 months 7.27
Total — 68646047.20 — 77.29
8. Inventory
(1) Inventory Category
Ending Balance Beginning Balance
Items
Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Raw Materials 292709433.37 0.00 292709433.37 303448302.51 303448302.51
Revolving
Materials 5427075.29 0.00 5427075.29 5520559.22 5520559.22
Goods and
materials in 136142338.47 0.00 136142338.47 36413482.38 36413482.38
transit
Inventory
goods 981446939.15 233790.56 981213148.59 622783856.56 233790.56 622550066.00
Development
costs 5671355.03 0.00 5671355.03 2415243.42 2415243.42
Developing
commodities 5315696.54 1539741.69 3775954.85 5315696.54 1539741.69 3775954.85
Commission
processing 5410589.00 0.00 5410589.00 2762633.88 2762633.88
Replacement of
oil reserve 169170956.67 0.00 169170956.67 248197500.00 248197500.00
Total 1601294383.52 1773532.25 1599520851.27 1226857274.51 1773532.25 1225083742.26
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Increased Amounts in Decreased Amounts in the Current
the Current Period Period
Items Balance at Beginning of Year Balance at End of Period
Recover or
Accrual Others Others
Charge Off
Inventory goods 233790.56 233790.56
Developing
commodities 1539741.69 1539741.69
In total 1773532.25 1773532.25
(3) Stock Goods listed by major product type
Ending Balance Beginning Balance
Items Falling Price Falling Price
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Grease
967544017.24 233790.56 967310226.68 594886731.71 233790.56 594652941.15
and oils
Food 13872860.49 13872860.49 27880182.78 27880182.78
Others 30061.42 30061.42 16942.07 16942.07
Total 981446939.15 233790.56 981213148.59 622783856.56 233790.56 622550066.00
9. Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Financial Products 280000000.00
Pre-paid Taxes and Fees 36255131.26 16921026.50
Pending Deduct VAT Input Tax 42987706.38 46701271.74
Fair Value Changes of Items Trapped at
Hedging 153428194.75 501828380.12
In total 232671032.39 845450678.36
10 Long-term Equity Investment
Increase or Decrease in the Current Period
Balance at
Invested Unit Additional Confirmed Profit and Loss on
Beginning of Year Negative Investment
Investment Investment under Equity Law
1.Cooperative Enterprise
CP Group 90824898.49 10149043.57
Sub-total 90824898.49 10149043.57
2. Joint Venture
China Grain Reserves (Tianjin)
119601316.43 15827465.77
Warehouse Logistics Co. Ltd.Jingliang Miss Me Food
7336272.87
Management (Tianjin) Limited
Sub-total 126937589.30 15827465.77
Total 217762487.79 25976509.34
(Continued)
Increase or Decrease in the Current Period Balance at End Ending Balance
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
of Period of Impairment
Adjustment of other Other Announce to Accrual of
Reserves
comprehensive changes in Distribute Case Impairment Others
income equity Dividends or Profits Reserves
100973942.06
100973942.06
-24680000.00 110748782.20
7336272.87
-24680000.00 118085055.07
-24680000.00 219058997.13
11. Other equity instruments investment
Beginning
Item
Ending Balance Balance
Chongqing long jinbao network technology co. LTD
20000000.00 20000000.00
Total
20000000.00 20000000.00
12. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Projects under
Items Buildings Land Use Right Total
Construction
One. Original Book Value 53844801.60 53844801.60
1. Balance at Beginning of Year 53844801.60 53844801.60
2. Increased Amounts in the Current Period
(1) Outsourcing
(2) Inventory transfer
(3) Others
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 53844801.60 53844801.60
Two. Accumulated Impairment and Accumulated
Amortization
1. Balance at Beginning of Year 20696792.40 20696792.40
2. Increased Amounts in the Current Period 823048.23 823048.23
(1) Accrual or Amortization 823048.23 823048.23
3. Decreased Amounts in the Current Period
(1) Disposal
(2) Other transfer out
4. Balance at End of Period 21519840.63 21519840.63
Three. Impairment Reserves
1. Balance at Beginning of Year 10587796.70 10587796.70
2. Increased Amounts in the Current Period
(1) Accrual
(2) Inventory transfer
3. Decreased Amounts in the Current Period
(1) Disposal
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(2) Other transfer out
4. Balance at End of Period 10587796.70 10587796.70
Four. Book Value
1. Book Value at End of Period 21737164.27 21737164.27
2. Book Value at Beginning of Year 22560212.50 22560212.50
13. Fixed Assets
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Fixed Assets 1088582627.48 1131143854.07
Disposal of Fixed Assets
In total 1088582627.48 1131143854.07
(2) Fixed Assets
A. Fixed Assets Situation
Machinery Transportation Electronic Office
Items Buildings Others Total
Equipment Equipment Equipment Equipment
One. Original Book Value
1. Balance at
1077152030.43 375930011.58 19483651.03 18604521.98 2162857.53 376615641.86 1869948714.41
Beginning of Year
2. Increased Amounts in the
585466.98 4676884.95 1960562.82 595093.67 1368780.61 1401446.00 10588235.03
Current Period
(1) Purchase 558116.55 2398808.93 746700.89 595093.67 164981.74 753006.08 5216707.86
(2) Roll-in of Project under
0.00 0.00 0.00 0.00 0.00 554778.74 554778.74
Construction
(3) Others 27350.43 2278076.02 1213861.93 0.00 1203798.87 93661.18 4816748.43
3. Decreased Amounts in the
0.00 1318786.00 2083989.00 5278360.42 50079 501019.21 9232233.63
Current Period
(1) Disposal or Scrap 0.00 1318786.00 2083989.00 5278360.42 50079 501019.21 9232233.63
4. Balance at End of Period 1077737497.41 379288110.53 19360224.85 13921255.23 3481559.14 377516068.65 1871304715.81
Two. Accumulated
Impairment
1. Balance at Beginning of
338617240.31 180649435.37 13179762.44 12411204.09 1554574.37 184807601.28 731219817.86
Year
2. Increased Amounts in the
19931006.66 16894163.19 1274573.68 809355.87 1072538.63 11460465.81 51442103.84
Current Period
(1) Accrual 19931006.66 16894163.19 1274573.68 809355.87 1072538.63 11460465.81 51442103.84
3. Decreased Amounts in the
0.00 1089276.48 1952600.89 4227808.92 48913.03 204364.09 7522963.41
Current Period
(1) Disposal or Scrap 0.00 1089276.48 1952600.89 4227808.92 48913.03 204364.09 7522963.41
4. Balance at End of Period 358548246.97 196454322.08 12501735.23 8992751.04 2578199.97 196063703.00 775138958.29
Three. Impairment Reserves
1. Balance at Beginning of
7499295.92 85746.56 0.00 0.00 0.00 0.00 7585042.48
Year
2. Increased Amounts in the
8921.52 0.00 0.00 0.00 0.00 0.00 8921.52
Current Period
(1) Accrual 8921.52 0.00 0.00 0.00 0.00 0.00 8921.52
3. Decreased Amounts in the
0.00 10833.96 0.00 0.00 0.00 0.00 10833.96
Current Period
(1) Disposal or Scrap 0.00 10833.96 0.00 0.00 0.00 0.00 10833.96
4. Balance at End of Period 7508217.44 74912.60 0.00 0.00 0.00 0.00 7583130.04
Four. Book Value
1. Book Value at End of
711681033.00 182758875.85 6858489.62 4928504.19 903359.17 181452365.65 1088582627.48
Period
2. Book Value at Beginning of
731035494.20 195194829.65 6303888.59 6193317.89 608283.16 191808040.58 1131143854.07
Year
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(2) Fixed assets without property right certificate
Project Book Value Reasons for failure to complete certificate of title
Buildings 6755694.68 No title certificate for auxiliary assets
14. Project under Construction
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
35262660.08 28458413.67
Project under Construction
Engineering materials
35262660.08 28458413.67
Total
(2) Project under Construction
A. Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items Impairme
Impairment
Book Balance nt Book Value Book Balance Book Value
Reserves
Reserves
1. roasted potato supporting automation
7062391.71 7062391.71 6986820.05 6986820.05
line project
2. Walnut cake production line of No.2
1427450.33 1427450.33 4780643.33 4780643.33
plant
3. slope treatment project of No.3 plant 3565377.15 3565377.15 3565377.15 3565377.15
4. add two 4D Corn Flake production
830116.22 830116.22 3207668.25 3207668.25
lines
5. 32400 tons of oil tank and terminal oil
17697673.43 17697673.43 2869993.38 2869993.38
pipeline project
6. 2600bph project of packaging oil 10L
2809734.52 2809734.52 2809734.52 2809734.52
production line
7. New production line of small fried
compound potato chips in leisure No.1 408286.49 408286.49 1784537.82 1784537.82
Factory
8. Fried potato chips automation
1461630.23 1461630.23 2453639.17 2453639.17
transformation project and others
In total 35262660.08 35262660.08 28458413.67 28458413.67
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Balance at Increased Roll-in Fixed Other Decreased
Balance at End of
Project Name Beginning of Amounts in the Assets Amount in Amounts in the
Period
Year Current Period the Current Period Current Period
Walnut cake production line of
4780643.33 14807.00 3368000.00 1427450.33
No.2 factory
Slope treatment project of No.3
3565377.15 3565377.15
Factory
Two new 4D Corn Flake
3207668.25 532967.97 2910520.00 830116.22
production lines
32400 ton oil tank and wharf oil
2869993.38 14827680.05 17697673.43
pipeline project
2600bph project of packaging oil
2809734.52 2809734.52
10L production line
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Renovation project of Maishao
packaging automation and blasting 226950.63 226950.63
machine
Total 17460367.26 15375455.02 6278520.00 26557302.28
15. Right of Use Assets
Items Buildings Others Total
One. Original Book Value
1. Balance at Beginning of Year 2614541.09 108248.00 2722789.09
2. Increased Amounts in the Current Period 232751.51 232751.51
(1) Lease
232751.51 232751.51
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period 2847292.60 108248.00 2955540.60
Two. Accumulated Impairment
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period 444497.31 38205.18 482702.49
(1) Accrual 444497.31 38205.18 482702.49
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period 444497.31 38205.18 482702.49
Three. Impairment Reserves
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period
(1) Accrual
3. Decreased Amounts in the Current Period
(1) Disposal or Scrap
4. Balance at End of Period
Four. Book Value
1. Book Value at End of Period 2402795.29 70042.82 2472838.11
2. Book Value at Beginning of Year 2614541.09 108248.00 2722789.09
16. Intangible Assets
(1) Intangible Assets Situation
Items Software Land Use Right Trademark Right Others In total
One Original Book Value
1. Balance at Beginning of Year 4333374.75 316407869.54 154841200.00 689220.00 476271664.29
2. Increased Amounts in the Current Period
36253.96 36253.96
(1) Purchase
36253.96 36253.96
(2) Internal R&D
(3) Business mergers increased
3. Decreased Amounts in the Current Period
(1) Disposal
26820.00 26820.00
4. Balance at End of Period
4369628.71 316407869.54 154841200.00 662400.00 476281098.25
Two Accumulated Amortization
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Software Land Use Right Trademark Right Others In total
1. Balance at Beginning of Year
3597758.64 61830987.64 56035371.69 5811.00 121469928.97
2. Increased Amounts in the Current Period
403006.92 3176743.55 3856962.93 7436713.40
(1) Accrual
403006.92 3176743.55 3856962.93 7436713.40
3. Decreased Amounts in the Current Period
5811.00 5811.00
(1) Disposal
5811.00 5811.00
4. Balance at End of Period
4000765.56 65007731.19 59892334.62 128900831.37
Three Impairment Reserves
1. Balance at Beginning of Year
662400.00 662400.00
2. Increased Amounts in the Current Period
(1) Accrual
3. Decreased Amounts in the Current Period
(1) Disposal
4. Balance at End of Period
662400.00 662400.00
Four Book Value
1. Book Value at End of Period
368863.15 251400138.35 94948865.38 346717866.88
2. Book Value at Beginning of Year
735616.11 254576881.90 98805828.31 21009.00 354139335.32
17. Goodwill
(1) Original Book Value of Goodwill
Balance at Increase in the Current Period Decrease in the Current Period
Name of Invested Unit or Balance at End of
Beginning of
Items Forming Goodwill Formed by Enterprise Period
Year Others Disposal Others
Merger
Acquire stock shares of
Zhejiang Xiaowangzi Food 191394422.51 191394422.51
Co. Ltd.In total 191394422.51 191394422.51
The reputation is mainly formed by the equity acquisition of Zhejiang Little Prince Food Co. Ltd which is
made of fixed assets investment real estate intangible assets construction in process ect.18. Long-term Unamortized Expenses
Increased Other
Balance at Amortized Amounts Balance at End of
Items Amounts in the Decreased
Beginning of Year in the Current Period Period
Current Period Amounts
Reconstruction of Majuqiao plant 14888320.13 337094.04 14551226.09
Linan spring garden woodland rental
4970592.00 56484.00 4914108.00
fees
Aisen green treasure Company housing
141020.52 8819.34 132201.18
renovation
Ancient coin branch car rental fee 94028.99 11753.64 82275.35
Amortization of laboratory decoration
431242.20 240594.06 32485.43 639350.83
costs
Office decoration 4397.66 4397.66 0.00
Total 20529601.50 240594.06 451034.11 20319161.45
19. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(1) Deferred Income Tax Assets Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Deductible Temporary Deferred Income Tax Deductible Temporary Deferred Income Tax
Difference Assets Difference Assets
Asset Impairment Reserves 329661.60 82415.40 254446.99 63611.73
Deductible Loss 5789804.01 1447451.00 30360671.96 7590167.99
Credit impairment Loss 1229052.40 307263.10 1368158.01 341929.04
Deferred Income 10722337.40 2680584.35 10722337.40 2680584.35
Valuation of Financial Instruments and
5677134.00 1419283.50
Derivative Financial Instruments
Credit impairment Loss 47389986.68 11847496.67 5677134.00 1419283.50
In total 71137976.09 17784494.02 48382748.36 12095576.61
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items
Taxable TemporarDy eferred Income TaxT axable TemporarDy eferred Income Tax
Difference Liabilities Difference Liabilities
Valuation and appreciation of
assets in merger of enterprises
159693033.00 39923258.25 164849010.97 41212252.73
not under the same control
Valuation of Financial
Instruments and Derivative
178608829.52 44652207.38 130600895.97 32652310.83
Financial Instruments
In total 338301862.52 84575465.63 295449906.94 73864563.56
(3) Details of Deferred Income Tax Liabilities after Offset
Carrying amount after
Carrying amount after offseting amount of
Offseting amount of offsetting between
offsetting between deferred tax assets and
Items deferred tax assets deferred tax assets and
deferred tax assets and liabilities at the end of last
and liabilities liabilitie at the end of last
liabilities period
period
Deferred tax asset 2606045.35 15178448.67 8748762.34 3346814.27
Deferred tax liabilities 2606045.35 81969420.28 8748762.34 65115801.22
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible Loss 33884.15 33884.15
Deductible temporary differences 100604379.80 100248841.85
In total 100638263.95 100282726.00
(5) Deductible loss on deferred income tax assets not being confirmed will be due at the following years
Year Balance at End of Period Balance at Beginning of Year Notes
2021 4504020.42
2022 4030889.63 4030889.63
2023 19123515.53 19123515.53
2024 47484926.46 47484926.46
2025 25105489.81 25105489.81
2026 4859558.37
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Year Balance at End of Period Balance at Beginning of Year Notes
Total 100604379.80 100248841.85
20. Other Non-current Assets
Ending Balance Beginning Balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Equipment and
2517240.00 2517240.00
Project Funds
Three-year term
366752446.74 366752446.74 317222341.67 317222341.67
deposit
Total 366752446.74 366752446.74 319739581.67 319739581.67
21. Short-term Borrowings
(1) Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Pledge loan
Mortgage loan
Guaranteed Loan 105088229.17
Fiduciary Loan 1722856775.38 1392325849.88
In total 1722856775.38 1497414079.05
22. Derivative financial liability
Item
Ending balance Beginning balance
Changes in fair value of hedging instruments
371219136.84
Total
371219136.84
23. Accounts Payable
(1). Accounts Payable Listed
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 125240425.73 60908293.40
Project Funds Payable 4432983.56 12181233.26
Equipment Funds Payable 820054.00 1182750.00
Short-term rental rent payable 1055100.00
Storage Fee 951999.90
Others 1664288.39 1111798.73
In total 134164851.58 75384075.39
24. Account Collected in Advance
(1) Account Collected in Advance list
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1462678.11 1087874.02
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Balance at End of Period Balance at Beginning of Year
In total 1462678.11 1087874.02
25. Contract liabilities
(1) Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 528793781.94 341860984.30
Service payment 5013276.60 5013276.60
In total 533807058.54 346874260.90
26. Wages Payable
(1) List of Wages Payable
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
One Short-term Compensation 32098807.71 132482495.06 152429453.01 12151849.76
Two After-service Welfare- Set up ESP
1246329.23 13954391.98 13642589.56 1558131.65
liabilities
Three Dismission Welfare 449429.50 449429.50
Four Other benefits due within one year
In total 33345136.94 146886316.54 166521472.07 13709981.41
(2) List of Short-term Compensation
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Wage Bonus Allowance and
28101795.99 103722699.31 123807432.05 8017063.25
Subsidy
2. Welfare Expense of Employee 20.00 3763650.36 3626269.36 137401.00
3. Social Insurance Expense 683142.38 9208899.95 9095940.17 796102.16
Among them: Medical Insurance
579700.06 8415916.25 8293916.35 701699.96
Premiums
Industrial Injury Insurance Premiums 52319.34 464299.02 458458.64 58159.72
Birth Insurance Premiums 50718.04 214872.75 229753.25 35837.54
Others 404.94 113811.93 113811.93 404.94
4. Housing Provident Funds 328343.85 7254473.25 7405536.25 177280.85
5. Labor Union Expense and Personnel
2985505.49 2189541.97 2365705.63 2809341.83
Education Fund
6. Short-term Compensated Absences
7. Short-term profit sharing plan
8. Other short-term remuneration 6343230.22 6128569.55 214660.67
In total 32098807.71 132482495.06 152429453.01 12151849.76
(3) List of Stated Drawings Plan
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
1. Basic Pension Insurance 1173795.55 12475630.78 12179730.08 1469696.25
2. Unemployment Insurance Expense 36450.79 476575.29 470248.04 42778.04
3. Enterprise Annuity Charges 36082.89 1001685.91 992111.44 45657.36
4. Other 500.00 500.00
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Total 1246329.23 13954391.98 13642589.56 1558131.65
27. Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
Corporate Income Tax 41280422.13 21972563.71
VAT 18335520.37 20557653.24
Urban Maintenance and Construction Tax 1323227.73 1662803.83
House Property Tax 2054119.79 2330072.39
Land Use Tax 1021504.39 1203859.39
Individual Income Tax 180633.69 1681176.51
Educational Surtax 521545.35 663399.57
Local Educational Surtax 399839.96 494409.45
Stamp Tax 396419.42 314395.32
Environmental protection tax 3130.92 3737.44
Water conservancy construction fee 143.79
In total 65516363.75 50884214.64
28. Other Accounts Payable
(1) Overview
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 21082795.47 21082795.47
Dividends Payable 11013302.88 11013302.88
Other Accounts Payable 81727855.24 40196782.89
In total 113823953.59 72292881.24
(2) Interest Payable
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Interest on long-term loans with interest paid by
installments and principal paid at maturity
Interest payable on short term loans
Loan Interest between Enterprises 21082795.47 21082795.47
In total 21082795.47 21082795.47
(3) Dividends Payable
A. Classification
Items Balance at End of Period Balance at Beginning of Year
Common stock dividends 7800000.00 7800000.00
Others 3213302.88 3213302.88
In total 11013302.88 11013302.88
(4) Other Accounts Payable
A. List of Other Accounts Payable by Nature of Funds
Items Balance at End of Period Balance at Beginning of Year
Intercourse Funds of Related Parties 2708699.21 1831079.90
Intercourse Funds between Units 43159282.35 13468108.09
Personal Intercourse Funds 3352982.86 4025881.59
Guaranteed Deposit and Deposit 30430944.78 16271518.35
Various Insurances of Employee 1539145.44 2102370.03
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Balance at End of Period Balance at Beginning of Year
Others 536800.60 2497824.93
In total 81727855.24 40196782.89
29. Other current liability
(1) Other current liability statement
Item End balance Beginning balance
Value-added tax to be written off 30305027.90 8319696.79
Changes in the fair value of hedging hedged
items 101746226.67
Total 132051254.57 8319696.79
30. Long-term loan
Items Balance at End of Period Balance at Beginning of Year
Pledge borrowing
Mortgage borrowing
Guaranteed borrowing
Credit borrowing 71000000.00
In total 71000000.00
31. Lease Liabilities
Items Balance at End of Period Balance at Beginning of Year
Accounts Payable of operating lease
2425606.75 2614541.09
In total
2425606.75 2614541.09
32. Long term wage payable
(1) List of long-term wage payable
Items Balance at End of Period Balance at Beginning of Year
Net liabilities of defined benefit plan in
post employment benefits
Dismission Welfare
Other Long-term Welfare 5677134.00 5677134.00
In total 5677134.00 5677134.00
33. Deferred Income
Balance at Beginning Increase in the Decrease in the Cause of
Items Balance at End of Period
of Year Current Period Current Period Formation
Government Subsidy 68716699.34 946223.34 67770476.00
In total 68716699.34 946223.34 67770476.00 --
Among them， items involving government subsidyAsset
Balance at Increase in Charge to Non-
Charge to Other Balance at related /
Items Receiving Subsidy Beginning of the Current operating
other Profits changes End of Period income
Year Period Income
related
Enterprise foundation
supporting in the construction
Asset
stage of "Tianjin Lingang 49929123.61 638752.08 49290371.53
related
Industrial Zone Management
Committee"
Special subsidy for 10296486.90 10296486.90 Asset
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Asset
Balance at Increase in Charge to Non-
Charge to Other Balance at related /
Items Receiving Subsidy Beginning of the Current operating
other Profits changes End of Period income
Year Period Income
related
infrastructure investment related
Asset
The relocation compensation 4232401.96 4232401.96
related
Tianjin Binhai New District’s
Industrially Technical
Renovation and Park Asset
2092592.45 111111.12 1981481.33
Construction Funds as well as related
Expenditures for Science and
Technology
Special subsidies for technical Asset
450000.00 450000.00
upgrading of production lines related
Key technology research and
industrialization project of Asset
778388.24 38919.42 739468.82
"moderate processing" of grain related
and oil
Construction of provincial grain
reserve information Asset
633746.30 100343.16 533403.14
management system to form related
asset entry project
Research and technology
demonstration of green and Asset
243569.92 28000.02 215569.90
clean production equipment and related
process for edible oil
Design of electric heating Asset
60389.96 29097.54 31292.42
system for oil tank related
In total 68716699.34 946223.34 67770476.00 --
34. Share Capital
Changes in the Current Period（+、-）Balance at Share Balance at End of
Items Beginning of New Share Share Transfer of
Year Others Sub-total
Period
Issue Donation Provident
Fund
1. Shares with
207336985.00 -164877598.00 -164877598.00 42459387.00
Restricted Conditions
(1) State Shareholding
(2) State-owned
Legal-person 164877598.00 -164728098.00 -164728098.00 149500.00
Shareholding
(3) Other Domestic
42459387.00 -149500.00 -149500.00 42309887.00
Capital Shareholding
Including: Domestic
Legal-person 1299500.00 -149500.00 -149500.00 1150000.00
Shareholding
Domestic Natural
41159887.00 41159887.00
Person Shareholding
(4) Foreign
Shareholding
Including: Foreign
Legal-person
Shareholding
Foreign Natural
Person Shareholding
2. Tradable Shares
without Restricted 519613266.00 164877598.00 164877598.00 684490864.00
Conditions
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Changes in the Current Period（+、-）Balance at Share Balance at End of
Items Beginning of New Share Share Transfer of
Others Sub-total Period Year Issue Donation Provident
Fund
(1) RMB Ordinary
454638266.00 164877598.00 164877598.00 619515864.00
Shares
(2) Domestically
64975000.00 64975000.00
Listed Foreign Shares
(3) Listed Foreign
Shares Overseas
(4) Others
In total 726950251.00 0.00 0.00 726950251.00
35. Capital Reserves
Balance at Beginning of Increase in the Current Decrease in the Current Balance at End of
Items
Year Period Period Period
Capital Premium (Stock
1322887986.38 1322887986.38
Premium)
Other Capital Reserves 351940364.57 351940364.57
In total 1674828350.95 1674828350.95
36. Other Comprehensive Incomes
Amounts Occurred in the Current Period
Amou Less: included
nts in other
Less: Other
Occur comprehensiv
Comprehensiv Attributa
red e income in Less:
e Incomes Attributabl ble to
Balance at before the previous Income Balance at
Items Charged at e to Parent Minority
Beginning Incom period and Tax End of
Earlier Stage Company Sharehol
of Year e Tax transferred to Expens Period
and Current After Tax ders
in the retained e
Roll-in Profit After Tax
Curre income in the
and Loss
nt current period
Period
One Other
comprehensiv
e incomes that
won’t be
classified into
profit and loss
1. Remeasure
and set the
change
amount of
benefit plan
2. Other
comprehensiv
e income that
cannot be
transferred to
profits and
losses under
the equity
method
3. Changes in
the fair value
of other equity
instrument
investments
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Amounts Occurred in the Current Period
Amou Less: included
nts in other
Less: Other
Occur comprehensiv
Comprehensiv Attributa
red e income in Less:
e Incomes Attributabl ble to
Balance at before the previous Income Balance at
Items Charged at e to Parent Minority
Beginning Incom period and Tax End of
Earlier Stage Company Sharehol
of Year e Tax transferred to Expens Period
and Current After Tax ders
in the retained e
Roll-in Profit After Tax
Curre income in the
and Loss
nt current period
Period
4. Changes in
fair value of
the
enterprise's
own credit
risk
Two Other
comprehensiv
e incomes that
-363258.66 -80447.42 -443706.08
will be
classified into
profit and loss
1. Other
comprehensiv
e income
transferable to -355212.00 -355212.00
profit and loss
under the
equity method
2. Changes in
the fair value
of other debt
investments
3. Amount of
financial
assets
reclassified
into other
comprehensiv
e income
4. Provision
for credit
impairment of
other debt
investment
5. Effective
part of cash
flow hedging
6. Converted
difference
between
foreign -8046.66 -80447.42 -88494.08
currency
financial
statements
Total -363258.66 -80447.42 -443706.08
37. Surplus Reserves
Items Balance at Beginning of Year Increase in the Current Period Decrease in the Current Period Balance at End of Period
Statutory
Surplus 84487609.05 84487609.05
Reserves
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Balance at Beginning of Year Increase in the Current Period Decrease in the Current Period Balance at End of Period
Free Surplus
37634827.93 37634827.93
Reserves
In total 122122436.98 122122436.98
38. Undistributed Profit
Amounts in
Amounts in the
Items the Prior
Current Period
Period
Adjustment on undistributed profit at end of last year 187033763.26 2186806.56
Adjustment on total number of undistributed profit at beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 187033763.26 2186806.56
Add: net profit attributable to parent Company in the current period 88328197.91 73762895.19
Less: withdrawal legal surplus reserves
Withdrawal free surplus reserves
Withdrawal general risk reserves
Ordinary stock dividends payable
Ordinary stock dividends transferred to capital
Undistributed profit at end of period 275361961.17 7 5949701.75
39. Operation Revenue and Operation Cost
(1) Operation Revenue and Operation Cost
Amounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Prime Business 5314299316.84 5095458647.50 3737897021.63 3352581703.86
Other Business 13947518.99 4086340.91 12876046.00 3619554.20
In total 5328246835.83 5099544988.41 3750773067.63 3356201258.06
(2) Prime Business (Industry and Business-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Industry (or Business)
Revenue Cost Revenue Cost
Oil and Oil Seeds 4869341487.59 4764017743.17 3288905719.04 3046368506.47
Food Processing 444957829.25 331440904.33 448991302.59 306213197.39
In total 5314299316.84 5095458647.50 3737897021.63 3352581703.86
(3) Prime Business (Region-classified)
Amounts in the Current Period Amounts in the Prior Period
Name of Region
Revenue Cost Revenue Cost
North China 4914886135.81 4796869662.51 3324692828.54 3069424264.71
East China 334001372.42 245689750.46 345482036.95 233630691.51
Northeast 65411808.61 52899234.53 67722156.14 49526747.64
In total 5314299316.84 5095458647.50 3737897021.63 3352581703.86
40. Tariff and Annex
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 3913915.24 2548143.53
Educational Surtax 1707476.99 1122628.97
Local Educational Surtax 1138317.97 748419.33
House Property tax 2381706.84 2283241.92
Land Use Tax 494944.34 697236.79
Stamp Tax 1688284.40 1184227.85
Vehicle and Vessel Use Tax 13396.03 18449.10
Resources Tax 4790.20
Other Taxes and Fees 25862.08 43973.68
In total 11363903.89 8651111.37
41. Sales Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation (including social security etc) 31765392.17 30679537.79
Sales Promotion Expenses 14691957.83 25997677.50
Transportation Fees 0.00 15690237.64
Warehousing Fees 6167549.59 15404986.89
Depreciation 6696732.33 8297585.79
Material consumption sample and product cost 2485399.23 2607074.83
Travel Expenses 3258440.43 32550.49
Repair Costs 306168.70 196031.21
Loading and Unloading Fees 715023.09 733797.56
Water and Electricity Fees 661247.68 537197.29
Vehicle Fees 483097.45 288457.98
Packing Expenses 87852.52 377669.68
Test and Detection Fees 82360.64 92866.07
Business Entertainment Expenses 130610.36 12124.00
Others 9145744.50 5693324.42
Total 76677576.52 106641119.14
42. Administration Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation (including social security etc) 43851104.43 39515162.11
Impairment Costs 11973858.13 8780269.70
Amortization of Assets 4901086.37 7640013.04
Hiring an intermediary fee 3847980.48 6913392.38
Company Expenses 1404552.02 5653026.97
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Items Amounts in the Current Period Amounts in the Prior Period
Repair Costs 817744.13 315031.15
Lease fee 1891512.26 2300085.56
Vehicle Fees 1204195.24 1171579.21
Information Network Fees 213966.44 546524.14
Business Entertainment Expenses 602406.43 530321.82
Environmental Protection Fees 452173.78 202183.63
Commercial Insurance Expenses 419856.67 249530.18
Workers Insurance Expenses 364967.31 191201.44
Security Protection Fees 371966.61 362895.58
Labor Protection Fees 198526.82 250202.03
Material Consumption 183533.95 178299.87
Travel Expenses 498287.95 168024.21
Hire an intermediary fee Other Expenses 11601981.52 3064543.27
In total 84799700.54 78032286.29
43. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Research fees 5170755.15 2803717.02
In total 5170755.15 2803717.02
44. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 19854113.81 16975042.06
Less: Interest Income 5408203.94 5373488.21
Exchange Profit and Loss 25480.77 10647837.51
Service Charges 1149403.55 561292.42
In total 15620794.19 22810683.78
45. Other Profits
Amounts in the Current Amounts in the Prior
Items
Period Period
Government Subsidy Related to Daily Corporate Activities 5839070.44 4 8 91 100.00
Return of Service Charges of Withholding Individual Income Tax 586991.10 1 5 5 8 4 8.84
In total 6426061.54 5046948.84
46. Investment Income
Amounts in the Current Amounts in the Prior
The source of the return on investment
Period Period
Long-term equity investment income accounted with equity method 25976509.34 6947778.68
The investment income of a financial asset measured at fair value and whose
changes are included in the current profit and loss during the holding period
Investment income obtained during the holding of transactional financial assets 607342.87 1919322.71
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Amounts in the Current Amounts in the Prior
The source of the return on investment
Period Period
Investment income from disposal of wealth management products 4663045.87 7828824.60
Investment income of disposing trading financial assets
Others
Total 31246898.08 16695925.99
47. Profits on Changes in Fair Value
Amounts in the Current
Source of generating income with changes in fair value Amounts in the Prior Period
Period
Trading financial assets 61697730.47 -76876667.25
Including: income with changes in fair value generated by derivative
61697730.47 -76876667.25
financial instruments
Trading financial liabilities
Investment real estate measured by fair value
In total 61697730.47 -76876667.25
48. Assets Disposal Income
Items Amounts in the Current Period Amounts in the Prior Period
Gains or losses on disposal of fixed assets -58126.00
Gains or losses on disposal of intangible assets -559.83
In total -58685.83
49. Non-operating Income
(1) Classification
Amounts Charged to
Amounts in the Amounts in the Prior
Items Non-recurring Profit
Current Period Period
and Loss
Total non-current assets scrap gains: 63990.38 63990.38
Including: fixed assets scrap profit 63990.38 63990.38
profit from scrap of intangible assets
Donation Gains 10000.00
Government Subsidy 87991.62
Asset Inventory Surplus Gains
Relocation Compensation 49231.02 127712.82 49231.02
Demand Compensation Income 1040420.14 45892.72 1040420.14
Other Gains 125472.26 417842.66 125472.26
In total 1279113.80 689439.82 1279113.80
50. Non-operating Expenses
Amounts in the Current Amounts Charged to Non-
Items Amounts in the Prior Period
Period recurring Profit and Loss
Total loss on scrap of non current assets 174235.08 125166.92 174235.08
Including: loss on scrap of fixed assets 174235.08 125166.92 174235.08
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Amounts in the Current Amounts Charged to Non-
Items Amounts in the Prior Period
Period recurring Profit and Loss
loss on scrap of intangible assets
Donation Expenses 43940.54
Inventory losses 24500.00 24500.00
Relocation Loss 51705.77 117085.86 51705.77
Penalty expenditure 11410.09 500.00 11410.09
Compensation 1015309.53
Others 844.38 116668.92 844.38
Total 262695.32 1418671.77 262695.32
51. Income Tax Expenses
(1) List of Income Tax Expenses
Amounts in the Current
Amounts in the Current Period Amounts in the Prior Period
Period
Income Tax Expenses of the Current Period 30647755.00 40543901.19
Deferred Income Tax Expenses 6310979.14 -16082069.33
Total 36958734.14 24461831.86
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the Current Amounts in the Prior
Items
Period Period
Total Profits 135397539.87 119769867.60
Income tax expenses calculated by statutory/applicable tax rate 33849384.97 21377859.59
Effect of subsidiary corporations being applicable to different tax rates -205910.89 -163343.19
Adjustment on effect of income tax in the prior period 69840.82
Effect of Non-taxable Incomes -5206628.35 -818108.22
Effect of Non-deductible cost expense and loss 11964.14
Effect of deductible loss on usage of unconfirmed deferred income tax
assets in the prior period
Effect of deductible temporary difference or deductible loss on
8487990.35 4068635.64
unconfirmed deferred income tax in the current period
Effect of addition
Others
-47906.90 -3211.96
Income Tax Expenses
36958734.14 24461831.86
52. Other comprehensive income items and their income tax impact and transferred to profit and loss
See details of ‘Appendix Six Notes on Items in Consolidated Financial Statements 36 Other Comprehensive Incomes’
53. Notes to items related cash flow statement
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(1) Receiving other cash related to operation activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 21322392.80 21078496.81
Intercourse Funds of Other Units 68948398.19 126023625.30
Non-operating Income and other income 461551.34 818480.79
Interest Income 4224691.03 4197572.37
Future Margins 1194590311.77 333158112.00
Others 7011863.15 3357922.87
Total 1296559208.28 488634210.14
(2) Other Cash Payment Related to Operation Activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 1581282.06 1285132.00
Intercourse Funds of Other Units 1036471337.77 385951971.50
Payment for Administration Expenses 12020073.04 11735512.89
Payment for Operating Expenses 17754375.04 28815251.90
Non-operating Expenses 108141.65 1089682.49
Petty Cash Paid 478289.75 302932.58
Bank Charges 1125306.40 563721.88
Others 9848614.49 5045373.28
In total 1079387420.20 434789578.52
54. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Current Amounts in the Prior
Supplementary Materials
Period Period
1. Adjusting net accounting profit to operating cash flow
Net Profit 98438805.73 95308035.74
Add: Assets Impairment Reserves
Credit impairment loss
Fixed Assets Depreciation Oil-and-gas Assets Depreciation and Productive
52265152.07 48728162.99
Biological Assets Depreciation
Amortization of Intangible Assets 7436713.40 7396651.55
Amortization of Long-term Deferred Expenses 451034.11 468031.78
Losses on Disposal of Fixed Assets Intangible Assets and Other Long-term
58685.83
Assets (Fill in profit with symbol “－”)
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) -174235.08 125166.92
Losses on Changes in Fair Value (Fill in profit with symbol “－”) -61697730.47 76876667.25
Financial Expenses (Fill in profit with symbol “－”) 19879594.58 27622879.57
Investment Losses (Fill in profit with symbol “－”) -31246898.08 -16695925.99
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) -11734401.87 -10232677.86
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol
16853619.06 -7136904.20
“－”)
Decrease in Inventory (Fill in increase with symbol “－”) -374437109.01 504378180.81
Decrease in Items of Operating Receivables (Fill in increase with symbol
206404522.78 -408709949.07
“－”)
Increase in Items of Operating Receivables (Fill in decrease with symbol
355352692.40 -131032498.73
“－”)
Others
Net Cash Flows from Operating Activities 277850445.45 187095820.76
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
2. Major investment and financing activities that do not involve cash
payments
Conversion of Debt into Capital
Convertible Bonds Due Within One Year
Fixed Assets under Financing Lease
3. Net change conditions in cash and cash equivalents
Cash balance at end of period 778877443.37 570017788.15
Less: cash balance at beginning of period 334389017.41 555097777.21
Add: balance of the cash equivalents at end of period
Less: balance of the cash equivalents at beginning of period
Cash and cash equivalent net increase quota 444488425.96 14920010.94
(2) Composition of cash and cash equivalents
Items Balance at End of Period Balance at Beginning of Period
One Cash 778877443.37 334389017.41
Including: cash in stock 90718.49 16761.72
Bank deposit available for payment at any time 648679613.98 298158812.41
Other currency funds available for payment at any time 130107110.90 36213443.28
Deposits with central bank available for payment
Interbank deposit
Interbank placements
Two Cash Equivalents
Including: bond investment maturing within three months
Three Balance of Cash and Cash Equivalents at End of Period 778877443.37 334389017.41
Including: restricted cash and cash equivalents used by parent
Company or intra-group affiliates
55. Assets with restricted ownership or right to use
Items Book Value at End of Period Reasons being Restricted
Currency Funds 1077152.20 Arbitration freezing
Inventory 3775954.85 Loan Mortgage
Investment Real Estate 6051420.47 Loan Mortgage
Fixed Assets 1926344.90 Loan Mortgage
In total 12830872.42
Note: There is currency fund RMB 1077152.20 which has unfrozen on July 9th2021
56. Monetary Items of Foreign Currency
(1) Monetary Items of Foreign Currency
Balance of Foreign Balance of Converting to RMB
Items Exchange Rate Convert
Currency at End of Period at End of Period
Monetary fund 6072048.30 6.4601 39226039.22
Including: US Dollars 6072048.30 6.4601 39226039.22
Accounts receivable 613962.28 6.4601 3966257.73
Including: US Dollars 613962.28 6.4601 3966257.73
Advanced payment 11668087.35 6.4601 75377011.09
Including: US Dollars 11668087.35 6.4601 75377011.09
Other receivalbe 1000000.00 6.4601 6460100.00
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Balance of Foreign Balance of Converting to RMB
Items Exchange Rate Convert
Currency at End of Period at End of Period
Including: US Dollars 1000000.00 6.4601 6460100.00
Short-term loan 4385478.81 6.4601 28330631.66
Including: US Dollars 4385478.81 6.4601 28330631.66
Accounts Payable 83790.00 6.4601 541291.78
Including: US Dollars 83790.00 6.4601 541291.78
Contract Liabilities 3014448.97 6.4601 19473641.79
Including: US Dollars 3014448.97 6.4601 19473641.79
Other Payables 273332.79 6.4601 1765757.16
Including: US Dollars 273332.79 6.4601 1765757.16
(2) Instruction of Operational Entity Overseas
The registrant and operating unit of the Company is Beijing Grain (Singapore) International Trade Co. Ltd. with main business
place of Singapore and recording currency of US Dollars.57. Hedging items and related hedging instruments
Please refer to 3. Derivative financial liability under Section VI of the Notes.58. Government Subsidies
(1) Basic conditions of government grants
Amount recorded in profit and
Type Amount Presentation item
loss
VAT return 4016218.89 Other income 4016218.89
Enterprise infrastructure supporting on
construction stage by Tianjin Harbor Industry 638752.08 Other income 638752.08
Zone Management Committee
Subsidies for training workers 389400.00 Other income 389400.00
Subsidies for employment stabilization 387281.08 Other income 387281.08
Fund on industury technology improvement &
Park construction by Tianjin Binhai New Area 111111.12 Other income 111111.12
and Expenditure on science technology
Asset account formed by provincial grain reserve
management information system 100343.16 Other income 100343.16
Job subsidy for the employment center of the
Disabled Union 88717.13 Other income 88717.13
Industrial project on key-tech research of grain
and oil “processing adaptation” 3891942 Other income 38919.42
Allotment on Electric Heating System for Oil
Tank System 29097.54 Other income 29097.54
Green cleaning producing equipment for edible
oil and tech-research and science demonstration 28000.02 Other income 28000.02
Subsidies for social insurance 9600.00 Other income 9600.00
Subsidies for grain and oil market testing 1350.00 Other income 1350.00
Preferential tax control system 280.00 Other income 280.00
Total 5839070.44 5839070.44
VII. Change in Consolidation Scope
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
The Company has no change in the scope of merger during this reporting period.VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Principle Shareholding Ratio (%)
Name of Registered Nature of Voting rights Mode of
Place of
Subsidiary Place Business Direct Indirect ratio (%) Acquisition
Business
Beijing Merger under
Investment
Jingliang Food Beijing Beijing 100 100 the same
management
Co. Ltd. control
Jingliang Agricultural
Merger under
(Tianjin) Grain Product and
Tianjin Tianjin 70 70 the same
and Oil Industry By Product
control
Co. Ltd. Processing
Beijing Merger under
Grain and oil
Jingliang Oil Beijing Beijing 100 100 the same
trade
and Fat Co. Ltd. control
Jingliang
Farm and Merger under
(Hebei) Oil
Hebei Hebei Sideline Food 51 51 the same
Industry Co.Processing control
Ltd.Beijing Guchuan Merger under
Grain and oil
Edible Oil Co. Beijing Beijing 100 100 the same
trade
Ltd. control
Beijing Eisen- Farm and Merger under
Lubao Oil Co. Beijing Beijing Sideline Food 100 100 the same
Ltd. Processing control
Beijing
Merger under
Tianweikang Oil
Beijing Beijing Warehousing 100 100 the same
Distribution
control
Center Co. Ltd.Beijing Guchuan Merger under
Food
Bread Food Co. Beijing Beijing 100 100 the same
Processing
Ltd. control
Zhejiang Xiao Combination
Food
Wang Zi Food Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Processing
Co. Ltd. same control
Hangzhou
Combination
Lin'an Food
Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Xiaotianshi Processing
same control
Food Co. Ltd.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Liaoning Xiao Combination
Food
Wang Zi Food Liaoning Liaoning 17.6794 77.2072 94.8866 not under
Processing
Co. Ltd. same control
Linqing Xiao Combination
Food
Wang Zi Food Linqing Linqing 17.6794 77.2072 94.8866 not under
Processing
Co. Ltd. same control
Lin'an
Chunmanyuan Combination
Food
Agricultural Hangzhou Hangzhou 17.6794 77.2072 94.8866 not under
Processing
Development same control
Co. Ltd.Jingliang
(Singapore) Establishment
Singapore Singapore Grain trade 100 100
International by investment
Trade Co. Ltd.Jingliang Rural
Complex
Land Establishment
Construction Xinyi Xinyi 51 51
remediation by investment
and Operations
(Xinyi) Co. Ltd.Jingliang
(Caofeidian)
Establishment
Agricultural Tangshan Tangshan Plantation 51 51
by investment
Development
Co. Ltd.Beijing
jingliang gubi Grain and oil Establishment
Beijing Beijing 100 100
oil and grease trade by investment
co. LTD
(2) Major non-wholly-owned subsidiaries
Profit And Loss Dividends
Balance of Minority
Shareholding Voting rights ratio Attributable to Distributed to
Name of Shareholder's
Ratio of Minority of Minority Minority Minority
Subsidiary Equity at the End of
Shareholders (%) Shareholders (%) Shareholders for Shareholders for
the Period
the Current Period the Current Period
Zhejiang Xiao
Wang Zi Food 5.1134 5.1134 2525198.34 50994568.52
Co. Ltd.Jingliang (Tianjin)
Grain and Oil 30 30 7779000.00 273039839.72
Industry Co. Ltd.
(3) Important financial information on major non-wholly-owned subsidiaries
Ending balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co. Ltd. Jingliang (Tianjin) Grain and Oil Industry Co. Ltd.Current Assets
366155906.90 1452913188.33
Non-current Assets
625771532.39 776598031.40
Total Assets
991927439.29 2229511219.73
Current Liabilities 105125445.57 1227294364.60
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Ending balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co. Ltd. Jingliang (Tianjin) Grain and Oil Industry Co. Ltd.Non-current Liabilities
20656022.86 92084211.66
Total Liabilities
125781468.43 1319378576.26
Operating Income
400535661.71 2066464701.05
Net Profit (Loss)
42774753.04 25929844.42
Total Comprehensive Income
42774753.04 25929844.42
Cash Flow from Operating
Activities 21727662.43 424430320.67
(Continued)
Beginning balance or Amount incurred in the current period
Items
Zhejiang Xiao Wang Zi Food Co. Ltd. Jingliang (Tianjin) Grain and Oil Industry Co. Ltd.Current Assets
348212958.32 1451014894.50
Non-current Assets
636041329.78 784620786.80
Total Assets
984254288.10 2235635681.30
Current Liabilities 140227047.42 1283603409.67
Non-current Liabilities
20656022.86 67829472.58
Total Liabilities
160883070.28 1351432882.25
Operating Income
414085161.70 1588794595.18
Net Profit (Loss)
59576702.97 30337553.63
Total Comprehensive Income
59576702.97 30337553.63
Cash Flow from Operating
Activities 68355787.51 -226038764.17
2. Equity in Joint Ventures or Affiliates
(1) Important Joint Ventures or Affiliates
Shareholding Ratio (%) Accounting Treatment
Name of Joint Venture or Principle Place Nature of Methods for Investment
Registered Place
Affiliate of Business Business Direct Indirect in Joint Ventures or
Affiliates
One Joint Ventures
1. Beijing Zhengda Feed
Beijing Beijing Manufacturer 50.00 Equity method
Co. Ltd.Two Affiliates
1. SINOGRAIN Transportation
(Tianjin) Warehousing Tianjin Tianjin and 30.00 Equity method
Logistics Co. Ltd. warehousing
(2) Important financial information on major joint ventures
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item
Beijing Zhengda Feed Co. Ltd. Beijing Zhengda Feed Co. Ltd.Current assets 232509285.82 228921574.13
Including: cash and cash equivalents 21994875.27 95186696.60
Non-current assets 22867202.06 25478642.09
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item
Beijing Zhengda Feed Co. Ltd. Beijing Zhengda Feed Co. Ltd.Total assets 255376487.88 254400216.22
Current liabilities 55315530.88 73979867.51
Non-current liabilities 3989987.44 4076166.52
Total liabilities 59305518.32 78056034.03
Minority shareholder's equity
Shareholders' equity attributable to the
196070969.56 176344182.19
parent Company
Share of net assets based on shareholding
98035484.78 88172091.10
ratio
Adjustments 2938457.28 2652807.39
-- Goodwill
-- Unrealized profits from internal
transactions
-- Other 2938457.28 2652807.39
Book value of equity investment in joint
100973942.06 90824898.49
ventures
Fair value of equity investment in joint
ventures with open offers
Operating income 185991526.96 153872389.59
Financial costs -2549556.75 -1308088.38
Income tax expense 6749196.01 4456502.35
Net profit 20298087.13 13073530.78
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 20298087.13 13073530.78
(3) Important financial information on major affiliates
Ending Balance/Current Amount Beginning Balance/Last Term Amount
Item SINOGRAIN (Tianjin) Warehousing SINOGRAIN (Tianjin) Warehousing
Logistics Co. Ltd. Logistics Co. Ltd.Current assets 84470838.52 87560108.46
Non-current assets 427139154.95 407888087.68
Total assets 511609993.47 495448196.14
Current liabilities 7256263.20 24167311.59
Non-current liabilities 135191122.94 72609829.76
Total liabilities 142447386.14 96777141.35
Minority shareholder's equity
Shareholders' equity attributable to the parent
369162607.33 398671054.79
Company
Share of net assets based on shareholding
110748782.20 119601316.43
ratio
Adjustments
-- Goodwill
-- Unrealized profits from internal
transactions
-- Others
Book value of equity investment in affiliates 110748782.20 119601316.43
Fair value of equity investment in affiliates
with open offers
Operating income 28434555.09 6383017.42
Net profit 4116892.01 1370044.29
Net profit from discontinued operations
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Other comprehensive income
Total comprehensive income 4116892.01 1370044.29
Dividends received from affiliates in the
24680000.00
current period
IX. Risks Related to Financial Instruments
The Company's principal financial instruments include equity investment creditors' investment borrowing accounts receivable
accounts payable etc. The primary purpose of these financial instruments is to finance the operations of the Company. The Company
has a variety of other financial assets and liabilities directly arising from its operations such as accounts receivable and accounts
payable.The main risks caused by the Company's financial instruments are credit risk liquidity risk and market risk.1. Classification of financial instruments
(1) Book value of various financial assets on the balance sheet date
A. June 30 2021
Financial assets measured at Financial assets measured at
Financial assets
Financial asset fair value and the changes fair value and the changes
measured at Total
items recorded in current profits and recorded in other
amortized cost
losses comprehensive income
Monetary funds 779954595.57 779954595.57
Transactional
363000000.00 363000000.00
financial assets
Derivative
75597717.39 75597717.39
financial assets
Notes receivables 0.00
Accounts
96128277.06 96128277.06
receivables
Other receivables 88750805.46 88750805.46
Investment in
other equity 20000000.00 20000000.00
instruments
Other non-
366752446.74 366752446.74
current assets
B. Jaunary 1 2021
Financial assets measured at
Financial assets Financial assets measured at fair
Financial asset fair value and the changes
measured at value and the changes recorded Total
items recorded in current profits and
amortized cost in other comprehensive income
losses
Monetary funds 335466169.61 335466169.61
Transactional
63478071.73 63478071.73
financial assets
Derivative
0.00
financial assets
Notes receivables 456565.85 456565.85
Accounts
92245667.60 92245667.60
receivables
Other receivables 541905656.97 541905656.97
Investment in
other equity 20000000.00 20000000.00
instruments
Other non-current
319739581.67 319739581.67
assets
(2) Book value of various financial liabilities on the balance sheet date
A. June 30 2021
Financial liability Financial liabilities measured at fair value and
Other financial liability Total
items changes included in current profits and losses
Short term loans 1722856775.38 1722856775.38
Derivative
0.00
financial liability
Accounts
134164851.58 134164851.58
payable
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Financial liability Financial liabilities measured at fair value and
Other financial liability Total
items changes included in current profits and losses
Other Payables 113823953.59 113823953.59
Long-term Loan 71000000.00 71000000.00
B. January 1 2021
Financial liability Financial liabilities measured at fair value and
Other financial liability Total
items changes included in current profits and losses
Short term loans 1497414079.05 1497414079.05
Derivative
371219136.84 371219136.84
financial liability
Accounts
75384075.39 75384075.39
payable
Other Payables 72292881.24 72292881.24
Long-term Loan 0.00
2. Credit Risk
On June 30 2021 the largest credit risk exposure that may cause financial loss to the Company mainly comes from the loss on
financial assets of the Company due to the failure of the other party to perform its obligations including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument measured at fair value its
book value reflects its risk exposure instead of their biggest risk exposure and its biggest risk exposure may vary with the change of
its future fair value.In order to reduce the credit risk the Company sets relevant policies to control its exposure sets corresponding credit periods
based on customer’s financial position possibility of obtaining guarantees from third parties credit records and other factors such as
current market conditions and other credit qualifications for customer assessment and implements other monitoring procedures to
ensure that necessary measures are taken to recover overdue credits. In addition the Company reviews the collection of individual
account receivables on each balance sheet date in order to make sufficient provision for bad debts for collectable amounts. Therefore
the Company's management believes that the Company's credit risk has been greatly reduced.The liquidity funds of the Company are deposited in banks with high credit rating so the credit risk of liquidity funds is low.3. Liquidity Risk
When managing liquidity risk the Company keeps and monitors adequate cash and cash equivalents approved by its management
in order to meet the Company's business needs and reduce the influences of cash flow fluctuations. The Company's management
monitors the use of bank loans and ensures the performance of loan agreements.Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
June 30 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term
1722856775.38 1722856775.38
loans
Accounts
134164851.58 134164851.58
payable
Other
113823953.59 113823953.59
Payables
Long-term
71000000.00 71000000.00
Loan
(Continued)
January 1 2021
Item
Within One Year 1 To 5 Years Above Five Years Total
Short term
1497414079.05 1497414079.05
loans
Accounts
371219136.84 371219136.84
payable
Other
72075894.39 3308181.00 75384075.39
Payables
Long-term
72292881.24 72292881.24
Loan
4. Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to the change of
market price. Market risk mainly includes interest rate risk foreign exchange risk and other price risks such as equity instrument
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
investment price risk.
(1) Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest rates bring the
Company the interest rate risk on cash flow while the financial liabilities at fixed interest rates bring the Company the interest rate risk
on fair value. The Company decides the relative proportion of fixed interest rate contracts and floating interest rate contracts according
to the current market environment.As of June 30 2021 the Company's interest-bearing liabilities under floating rate contracts denominated in RMB amounted to
RMB 70000000.00 and those under fixed rate contracts denominated in RMB amounted to RMB 1694204046.67 and USD
amounted to USD 4385478.81.
(2) Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities (when revenues and
expenditures are settled in foreign currencies other than the Company's accounting standard currency) and its net investments in its
overseas subsidiaries. The Company's exposure to foreign exchange risks is mainly related to US dollars. Except that some of the
Company's subsidiaries purchase and sell in US dollars other major business activities of the Company are priced and settled in
RMB.As at June 30 2021 the Company's assets and liabilities are in RMB except the assets or liabilities described in the table below
are in US dollars. The foreign exchange risks arising from the assets and liabilities of such foreign currency balances may have an
impact on the Company's operating results.Items Ending Balance Beginning Balance
Monetary funds 39226039.22 5056624.13
Accounts receivable 3966257.73 1044832.24
Advanced payment 75377011.09
Other receivables 6460100.00
Short-term Loan 28330631.66
Accounts payables 541291.78
Contract liabilities 19473641.79
Other payables 1765757.16 381054.16
Note: The Company pays close attention to the impact of exchange rate fluctuations on the Company.The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable and possible changes of risk
variables on current profit and loss or owner's equity. As any risk variable rarely changes in isolation and the correlation between
variables will have a significant effect on the final impact amount of a risk variable change the following content is carried out under
the assumption that the change of each variable is independent.On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and other variables remain
unchanged the after-tax impact of possible reasonable changes in exchange rate on current profits and losses and rights and interests
is as follows:
Current period
Item [US dollar] Exchange rate Gross profit/net profit increase Increase/(decrease) in
Increase / (decrease) /(decrease) shareholders' equity
The yuan depreciated against
5% 579852.37 579852.37
the US dollar
The yuan appreciated against
-5% -578852.37 -578852.37
the US dollar
(Continue)
Prior period
Item [US dollar] Exchange rate Gross profit/net profit increase Increase/(decrease) in
Increase / (decrease) /(decrease) shareholders' equity
The yuan depreciated against
5% 89963.07 89963.07
the US dollar
The yuan appreciated against
-5% -89963.07 -89963.07
the US dollar
X. Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Fair Values at the End of the Period
Second Level Third Level Fair
Item First Level Fair
Fair Value Value Total
Value Measurement
Measurement Measurement
One. Continuous fair value measurement
Ⅰ. Transactional financial assets 438597717.39 438597717.39
1. Financial assets that are measured at
fair value and whose changes are included 363000000.00 363000000.00
in the current profits and losses
(1) Investment in debt instruments 363000000.00 363000000.00
(2) Investment in equity instruments
(3) Derivative financial assets 75597717.39 75597717.39
2. Financial assets designated as fair value
through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Others
Ⅱ. Other debt investment
Ⅲ. Investment in other equity instruments 20000000.00 20000000.00
Total assets continuously measured at
438597717.39 20000000.00
fair value 458597717.39
2. Basis for determining market prices of continuous and non-continuous first level fair value measurement items
The Company makes offers for first level fair value measurement according to open contracts of the futures exchange and the
quote from the bank on financial product at the end of the period.3. Continuous and non-continuous third-level fair value measurement items adopt valuation techniques and qualitative
and quantitative information of important parametersThe Company‘s investment in other equity instruments of the third level fair value measurement project is the ”three noes“ equityinvestment that without control joint control and significant influence held by the Company. On the basis of analyzing the operation
status of the invested enterprise and combining with relevant situations the Company takes the investment cost as the fair value of
other equity instrument investment for measurement at the end of the period.XI. Related Parties and Related-Party Transactions
1. Identification criteria of related parties
If one party controls jointly controls or exerts significant influence on the other party and two or more parties are controlled
jointly controlled or significantly influenced by the same party they constitute related parties.2. Parent Company of the Company
Legal Nature of Registered Capital
Name of Parent Company Company type Registered Place
representative Business (ten thousand Yuan)
Wholly state- Investment
Beijing Grain Group Co. Ltd. Beijing Zhang Lijun 90000.00
owned enterprise Management
(Continue)
Proportion of Voting Power Held
Proportion of Shares Held by Parent The ultimate controlling party of
by Parent Company in the Organization code
Company in the Company (%) the Company
Company (%)
Beijing State-owned Capital
39.68 39.68 Operation and Management 683551038
Center
3. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.4. Joint Ventures and Affiliates of the Company
See 3. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.5. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Guchun Food Co. Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Food Co. Ltd Controlled by the ultimate controlling party
Beijing Jingliang Dongfang grain and Oil Trading Co. Ltd Controlled by the ultimate controlling party
Beijing Yueshengzhai Halal Food Co. Ltd Controlled by the ultimate controlling party
Beijing ershang dahongmen Meat Food Co. Ltd Controlled by the ultimate controlling party
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Shandong Fukuan Bioengineering Co. Ltd Controlled by the ultimate controlling party
Beijing Guchun rice Co. Ltd Controlled by the ultimate controlling party
Beijing ershang Wangzhihe Food Co. Ltd Controlled by the ultimate controlling party
Beijing heiliu animal husbandry technology Co. Ltd Controlled by the ultimate controlling party
Beijing Yanqi Yueshengzhai Halal Food Co. Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co. Ltd Controlled by the ultimate controlling party
Beijing Liubiju Food Co. Ltd Controlled by the ultimate controlling party
Beijing ershang Moqi Zhonghong Food Co. Ltd Controlled by the ultimate controlling party
Beijing ershang Jinghua Tea Co. Ltd Controlled by the ultimate controlling party
Beijing Huayu Food Co. Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co. Ltd Controlled by the ultimate controlling party
Beijing Huadu liquor Marketing Co. Ltd Controlled by the ultimate controlling party
Beijing Beishui Food Industry Co. Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Venus duck industry Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain e-commerce Co. Ltd Controlled by the ultimate controlling party
Beijing Er Shang Longhe Food Co. Ltd Controlled by the ultimate controlling party
Beijing Changyang farm Co. Ltd Controlled by the ultimate controlling party
Beijing hundred year old Liyuan Ecological Agriculture Co. Ltd Controlled by the ultimate controlling party
Beijing Er Shang palace Yifu Food Co. Ltd Controlled by the ultimate controlling party
Feed branch of Beijing Sanyuan Seed Industry Technology Co. Ltd Controlled by the ultimate controlling party
Beijing shounong Supply Chain Management Co. Ltd Controlled by the ultimate controlling party
Hebei shounong Modern Agricultural Technology Co. Ltd Controlled by the ultimate controlling party
Beijing Haidian Xijiao grain and oil supply station Co. Ltd Controlled by the ultimate controlling party
Beijing Zhujun grain and oil supply Co. Ltd Controlled by the ultimate controlling party
Beijing first agricultural consumption poverty alleviation and
Controlled by the ultimate controlling party
Entrepreneurship Center Co. Ltd
Beijing Children soldiers grain and oil supply Co. Ltd Controlled by the ultimate controlling party
Liangguan grain and oil supply station of Beijing Controlled by the ultimate controlling party
Beijing maliandou special supply station Co. Ltd Controlled by the ultimate controlling party
Beijing junchengyuan grain and oil purchase and Marketing Co. Ltd Controlled by the ultimate controlling party
Beijing food supply office No.34 supply department Co. Ltd Controlled by the ultimate controlling party
Beijing Longqing Xiadu military grain supply Co. Ltd Controlled by the ultimate controlling party
Beijing baijiayi Food Co. Ltd Controlled by the ultimate controlling party
Beijing Hongyuan Lijun grain and oil supply Co. Ltd Controlled by the ultimate controlling party
Beijing Desheng Hotel Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain Real Estate Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain Logistics Co. Ltd Controlled by the ultimate controlling party
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Beijing jinggrain canal grain and Oil Trade Co. Ltd Controlled by the ultimate controlling party
Beijing Shuangta Green Valley Agriculture Co. Ltd Controlled by the ultimate controlling party
Beijing southern suburb agricultural production and Management Co. Ltd Controlled by the ultimate controlling party
Beijing Dongcheng sugar industry tobacco and Wine Co. Ltd Controlled by the ultimate controlling party
Beijing North Beijing sugar wine sales Co. Ltd Controlled by the ultimate controlling party
Beijing shounong commercial chain Co. Ltd. Hebei xiong'an branch Controlled by the ultimate controlling party
Beijing Sanyuan Taxi Co. Ltd Controlled by the ultimate controlling party
Beijing Business School Controlled by the ultimate controlling party
Beijing maisui Hotel Management Co. Ltd Controlled by the ultimate controlling party
Beijing shounong Xiangshan Conference Center Co. Ltd Controlled by the ultimate controlling party
Beijing sugar industry tobacco & Wine Group Co. Ltd Controlled by the ultimate controlling party
Beijing grain (Tianjin) e-commerce Co. Ltd Controlled by the ultimate controlling party
Beijing Automobile Service Co. Ltd Controlled by the ultimate controlling party
Beijing shounong Food Group Finance Co. Ltd Controlled by the ultimate controlling party
Beijing dahongmen grain storage Co. Ltd Controlled by the ultimate controlling party
Beijing Dongjiao farm Co. Ltd Controlled by the ultimate controlling party
Beijing aquatic products Co. Ltd Controlled by the ultimate controlling party
Beijing Beijing automobile driving technical school Controlled by the ultimate controlling party
Beijing grain (Tianjin) Trade Development Co. Ltd Controlled by the ultimate controlling party
Beijing Jingliang Xinda Property Management Co. Ltd Controlled by the ultimate controlling party
Beijing Beishui Jialun water products market Co. Ltd Controlled by the ultimate controlling party
Beijing Xicheng sugar industry tobacco and Wine Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain Industrial Asset Management Co. Ltd Controlled by the ultimate controlling party
Beijing Er Shang Fuyue Food Co. Ltd Controlled by the ultimate controlling party
Beijing Yanqing farm Co. Ltd Controlled by the ultimate controlling party
Beijing Jingliang Taihe Real Estate Co. Ltd Controlled by the ultimate controlling party
Beijing capital agricultural Pinggu agricultural science and technology Controlled by the ultimate controlling party
innovation investment and Development Co. Ltd
Beijing Shunyi grain and Oil Co. Ltd Controlled by the ultimate controlling party
Beijing Longsheng Zhongwang breakfast Co. Ltd Controlled by the ultimate controlling party
Beijing shounong Animal Husbandry Development Co. Ltd Controlled by the ultimate controlling party
Tianjin Hongda international freight forwarding Company Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co. Ltd Controlled by the ultimate controlling party
Beijing Jingliang Taiyu Real Estate Co. Ltd Controlled by the ultimate controlling party
Beijing xingfashion Trade Co. Ltd Controlled by the ultimate controlling party
Beijing zhongdairich Property Management Co. Ltd Controlled by the ultimate controlling party
Beijing Huacheng Trading Co. Ltd Controlled by the ultimate controlling party
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Beijing haipetrochemical (Tianjin) Co. Ltd Controlled by the ultimate controlling party
Beijing daimo flour Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain Taixing Real Estate Co. Ltd Controlled by the ultimate controlling party
Beijing milk Co. Ltd Controlled by the ultimate controlling party
Beijing hongbaoyuan Trading Co. Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co. Ltd Controlled by the ultimate controlling party
Beijing Dongfeng International Sports Culture Co. Ltd Controlled by the ultimate controlling party
Beijing grain century cloud Technology Co. Ltd Controlled by the ultimate controlling party
China Ocean Real Estate Co. Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Oil Co. Ltd Controlled by the ultimate controlling party
Beijing sidaokou aquatic products Co. Ltd Controlled by the ultimate controlling party
Beijing Yonghe Xincheng grain and oil supply Co. Ltd Controlled by the ultimate controlling party
Beijing Longde Business Management Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain Shengyuan grain and Oil Sales Co. Ltd Controlled by the ultimate controlling party
Beijing Daxing National Food Reserve Co. Ltd Controlled by the ultimate controlling party
China Meat Food Research Center Controlled by the ultimate controlling party
Beijing Pinggu grain and oil industry and Trade Co. Ltd Controlled by the ultimate controlling party
Beijing Academy of Food Science Controlled by the ultimate controlling party
Beijing jinggrain Biotechnology Industry Co. Ltd Controlled by the ultimate controlling party
Beijing zhibohui Architectural Design Institute Co. Ltd Controlled by the ultimate controlling party
Beijing Beishui Yongxing water products Sales Co. Ltd Controlled by the ultimate controlling party
Beijing ershang Group Co. Ltd Controlled by the ultimate controlling party
Beijing Er Shang Yihe Sunshine Property Management Co. Ltd Controlled by the ultimate controlling party
Beijing Beijiao farm Co. Ltd Controlled by the ultimate controlling party
Beijing Great Wall Danyu animal products Co. Ltd Controlled by the ultimate controlling party
Beijing grain point to net (Beijing) commerce Co. Ltd Controlled by the ultimate controlling party
Beijing jinggrain Dagu grain and Oil Trade Co. Ltd Controlled by the ultimate controlling party
Shanghai shounong Investment Holding Co. Ltd Controlled by the ultimate controlling party
Beijing Daxing national grain storage Co. Ltd Controlled by the ultimate controlling party
Beijing Nanyuan vegetable oil factory Co. Ltd Controlled by the ultimate controlling party
Feed branch of Beijing Sanyuan Seed Industry Technology Co. Ltd Controlled by the ultimate controlling party
Hebei shounong Modern Agricultural Technology Co. Ltd Controlled by the ultimate controlling party
Beijing Ershang Meet Food. Co Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Pastoral Technology Co. Ltd. Food Center Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co. Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co. Ltd Controlled by the ultimate controlling party
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Name of Other Related Party Relationship with the Company
Beijing Sugar Industry Tobacco and Alcohol Group Co. Ltd. Sugar Controlled by the ultimate controlling party
Management Branch
Beijing Ershang Xijie Food Co. Ltd Controlled by the ultimate controlling party
Beijing Ershang Jingshen Seafood Co. Ltd Controlled by the ultimate controlling party
Beijing Jingmen Liangshi State-owned Asset Management Co. Ltd Controlled by the ultimate controlling party
Beijing Liubiju Food Co. Ltd. Huairou Brewing Plant Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co. Ltd Controlled by the ultimate controlling party
Beijing Theron International Cultural Development Co. Ltd Controlled by the ultimate controlling party
Beijing Liangguan Grain and Oil Supply Co. Ltd Controlled by the ultimate controlling party
Beijing Capital & Agricultural Food Group Co. Ltd Controlled by the ultimate controlling party
6. Related-party Transactions
(1) Related-party transactions for purchasing and sale goods and provision and acceptance of labor services
A. Purchase of goods or acceptance of labor services
Related Party Related-party Transaction Current Amount Last Term Amount
Beijing hundred year old Liyuan Ecological Agriculture
Purchase of goods 8536.00
Co. Ltd
Beijing Beishui Food Industry Co. Ltd Purchase of goods 12976.00 2664.00
Beijing Ershang dahongmen Meat Food Co. Ltd Purchase of goods 260599.00
Beijing Ershang Jinghua Tea Co. Ltd Purchase of goods 20128.00
Beijing Ershang Longhe Food Co. Ltd Purchase of goods 54.00
Beijing Ershang Moqizhonghong Food Co. Ltd Purchase of goods 345.60 13034.40
Beijing Ershang Meat Food Group Co. Ltd Purchase of goods 303970.00
Beijing Ershang Wangzhihe Food Co. Ltd Purchase of goods 11760.00 177803.60
Beijing Guchuan Rice Co. Ltd Purchase of goods 31372.00 134268.00
Beijing Guchuan Food Co. Ltd Purchase of goods 7084342.52 7662781.80
Beijing Heiliu Pastoral Technology Co. Ltd. 89111.30
Beijing Heiliu Pastoral Technology Co. Ltd. Food Center Purchase of goods 23951.90
Beijing Huadu Wine Marketing Co. Ltd Purchase of goods 136320.00
Beijing Huayu Food Co. Ltd Purchase of goods 14850.00
Beijing jingliang E-Commerce Co. Ltd Purchase of goods 5000.00
Beijng Jingliang Dongfang Grain and Oil Trading Co. Ltd Purchase of goods 246304.00 266693.50
Beijing Liubiju Food Co. Ltd Purchase of goods 15320.00 26809.40
Beijing Longmen Vinegar Co. Ltd Purchase of goods 290.00
Beijing Sanyuan Meiyuan Food Co. Ltd Purchase of goods 24883.20
Beijing Sanyuan Food Co. Ltd Purchase of goods 196816.00 1459486.60
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Related Party Related-party Transaction Current Amount Last Term Amount
Beijing Changyang Farm Co. Ltd Purchase of goods 1470.00
Beijing Sugar Industry Tobacco and Alcohol Group Co.Ltd. Sugar Management Branch Purchase of goods
430.90
Beijing Wuhuan Shuntong Supply Chain Management
Co. Ltd Purchase of goods
11895.00
Beijing Yiji Yueshengzhai Halal Food Co. Ltd Purchase of goods 280682.00
Beijing Yueshengzhai Halal Food Co. Ltd Purchase of goods 520850.50
Shandong Fuguang Bioengineering Co. Ltd Purchase of goods 248829.00
Total 8483731.42 10810896.80
B. Sale of goods/ provision of labor services
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Baijiayi Food Co. Ltd Sale of goods 468970.00 131284.00
Beijing North Jingtang Wine Sales Co. Ltd Sale of goods 21959.00 27364.00
Beijing Great Mill Flour Co. Ltd Sale of goods 2075.00
Beijing Dongcheng Sugar Industry Tobacco and Alcohol
Sale of goods 15207.54
Co. Ltd
Beijing Dongfeng International Sports Culture Co. Ltd 1755.00
Beijing Wangzhihe Food Co. Ltd Sale of goods 43848848.09 25766349.73
Beijing Ershang Xijie Food Co. Ltd Sale of goods 928990.83
Beijing Ershang Fuyue Food Co. Ltd Sale of goods 7460.00
Beijing Ershang Gongyifu Food Co. Ltd Sale of goods 17256.88
Beijing Jingshen Seafood Co. Ltd 53592.00
Beijing Ershang Longhe Food Co. Ltd Sale of goods 15270.00
Beijing Ershang Yihe Sunshine Property Management Co.Sale of goods 23880.00
Ltd
Beijing Guchuan Rice Co. Ltd Sale of goods 631349.72 429869.06
Beijing Guchuan Food Co. Ltd Sale of goods 5727639.42 1089789.39
Beijing Hongyuanli Military Grain and Oil Supply Co.Sale of goods 417500.00 377490.82
Ltd
Beijing Jingliang Dagu Oil and Grain Trading Food Co.Sale of goods 177900.00
Ltd
Beijing Jingliang E-commerce Co. Ltd Sale of goods 723045.08 1100466.11
Beijing Jingliang East Oil and Grain Trading Food Co. Ltd S ale of goods 4665430.59 1855631.79
Beijing Jiangliang Taihe Property Co. Ltd Sale of goods 4980.00
Beijing Jiangliang Taixing Property Co. Ltd Sale of goods 2075.00
Beijing Jiangliang Taiyu Property Co. Ltd Sale of goods 3320.00
Beijing Jiangliang Logistics Co. Ltd Sale of goods 86554.91 226577.57
Beijing Jingliang Cinda Property Management Co. Ltd Sale of goods 11205.00
Beijing Jingliang Xingye Asset Management Co. Ltd Sale of goods 7885.00
Beijing Jingliang Canal Grain and Oil Trading Co. Ltd Sale of goods 119432.07 122729.05
Beijing Jingliang Real Estate Co. Ltd Sale of goods 174056.74
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Jingmen Liangshi State-owned Asset Management
Sale of goods 363200.00
Co. Ltd
Beijing Junyuan Rain and Oil Purchase and Sales Co. Ltd Sale of goods 624175.00 306990.83
Beijing Lanfeng Vegetable Distribution Co. Ltd Sale of goods 3380.00
Beijing Liubiju Food Co. Ltd Sale of goods 2750.00
Beijing Liubiju Food Co. Ltd Huairou Brewing Plant Sale of goods 231300.00
Beijing Longmen Vinegar Co. Ltd Sale of goods 6600.00
Beijing Longsheng Zhongwang Breakfast Co. Ltd Sale of goods 20633.00
Beijing Wheat Hotel Management Co. Ltd Sale of goods 31955.00
Beijing Southern Suburbs Agricultural Production
Sale of goods 64726.61
Management Co. Ltd
Beijing Automotive Services Co. Ltd Sale of goods 18600.00
Beijing Theron International Cultural Development Co.Sale of goods 275.00
Ltd
Beijing Sanyuan Taxi Co. Ltd Sale of goods 44400.00
Beijing Sanyuan Petroleum Co. Ltd Sale of goods 286.24
Beijing Sanyuan Food Co. Ltd Sale of goods 492000.00 527348.00
Beijing Sanyuan Seed Industry Technology Co. Ltd. feed
Sale of goods 27347850.05 14185704.49
branch
Beijing Northern Suburbs Farm Co. Ltd Sale of goods 1000.00
Beijing Dahongmen Grain Storage Co. Ltd Sale of goods 15355.00
Beijing Desheng Hotel Co. Ltd Sale of goods 32557.03 102900.00
Beijing Eastern Suburbs Farm Co. Ltd Sale of goods 13585.00
Beijing Haidian Western Suburbs Grain and Oil Supply
Sale of goods 1799085.28 7327448.82
Station Co. Ltd
Beijing Hongbaoyuan Trading Co. Ltd Sale of goods 1872.00
Beijing Huacheng Trading Co. Ltd Sale of goods 5319.00 2502.00
Beijing Jingcheng Automotive Driving Technical School Sale of goods 13200.00
Beijing Liangguan Grain and Oil Supply Co. Ltd Sale of goods 12500.92
Beijing Longqing Xiadu Military Food Supply Co. Ltd Sale of goods 95200.00 379651.38
Beijing Ma Liandao Grain and Oil Special-need Supply
Sale of goods 77000.00 1311822.02
Station Co. Ltd
Beijing Nanyuan Vegetable Oil Plant Co. Ltd Sale of goods 7055.00
Beijing Milk Co. Ltd Sale of goods 3546.00 1946.00
Beijing Food Supply Department No. 34 Supply
Sale of goods 2497733.27 1399738.14
Department Co. Ltd
Beijing Shunyi Grain and Oil Co. Ltd Sale of goods 4920.00
Beijing Sidaokou Spitting Production Co. Ltd Sale of goods 176.00
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Related-party
Related Party Current Amount Last Term Amount
Transaction
Beijing Yanqing Farm Co. Ltd Sale of goods 6000.00
Beijing Soldiers Grain and Oil Supply Co. Ltd Sale of goods 971200.00 1676047.71
Beijing Shounong Livestock Development Co. Ltd Sale of goods 3522.95
Beijing Shounong Supply Chain Management Co. Ltd Sale of goods 2469496.69
Hebei Xiong'an Branch of Beijing Shounong Commercial
Sale of goods 41834.86
Chain Co. Ltd
6160.00
Beijing Capital & Agriculture Group Finance Co. Ltd Sale of goods
Beijing Capital & Agriculture Group Co. Ltd Sale of goods 637256.86 3154.10
Beijing Shounong Xiangshan Convention Center Co. Ltd Sale of goods 5328.00 13100.00
Beijing Shounong Consumption Double-creation center of
Sale of goods 5051520.00
Poverty & Alleviation Co. Ltd
Beijing Twin Towers Green Valley Agriculture Co. Ltd Sale of goods 15816.51 107775.70
Beijing Aquatic Co. Ltd Sale of goods 6380.00
Beijing Sugar Industry Tobacco and Alcohol Group Co.Sale of goods 4400.00 26280.00
Ltd
Beijing Wuhuan Shuntong Supply Chain Management
Sale of goods 670442.20 1344372.42
Co. Ltd
Beijing West City Sugar Industry Tobacco and Alcohol
Sale of goods 8370.00
Co. Ltd
Beijing Aid Army Grain and Oil Supply Co. Ltd Sale of goods 960383.95 2196158.88
Hebei Luanping Huadu Food Co. Ltd Sale of goods 2399477.40
Hebei Shounong Modern Agricultural Technology Co.Sale of goods 10400433.52 7867155.54
Ltd
Jinghai Petrochemical (Tianjin) Co. Ltd Sale of goods 2112.00
Jiangliang (Tianjin) E-Commerce Co. Ltd Sale of goods 41993.91
Jiangliang (Tianjin) Trade Development Co. Ltd Sale of goods 10560.00
Jingliang Diandao Network (Beijing) Trading Co. Ltd Sale of goods 7884.00
Jingliang Century Cloud Technology Co. Ltd Sale of goods 830.00
Shanghai Shounong Investment Holdings Co. Ltd Sale of goods 139402.80
Tianjin HTC International Freight Forwarder Sale of goods 3520.00
Total Sale of goods 112233671.50 73528174.97
Related-party transactions for purchasing and saling goods and provision and acceptance of labor services: The price of a related-
party transaction shall be equal to the price charged for a unrelated-party transaction that is same as or similar to such related-party
transaction.Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
(2) Related-party lease
A. If the Company is the lessor
Lease Income Lease Income
Type of Leased Pricing basis of
Name of Lessee Recognized in the Current Recognized in the Prior
Asset rental income
Period Period
Beijing Jingliang E-
Warehouse leasing Market price 766509.38
commerce Co. Ltd.Beijing Jingliang E-
Vehicle leasing Market price 12729.60
commerce Co. Ltd
Total -- -- 0.00 779238.98
B. If the Company is the lessee
Lease Expense Lease Expense
Pricing basis of rleasing
Name of Lessee Type of Leased Asset Recognized in the Recognized in the Prior
fee
Current Period Period
Beijing Grain Group Co. Ltd. House leasing Market price 580000.00 280000.00
Beijing Daxing National Grain
Purchasing & Storage House leasing Market price 1055100.00 1055100.00
Warehouse
Beijing Nanyuan Plant Oil
House leasing Market price 340000.00
Factory
Beijing Dahongmen Grain
House leasing Market price 309577.33
Storage Co. Ltd
Beijing Shounong Development
House leasing Market price 255583.71
Co. Ltd
Beijing Jingliang Real Estate
House leasing Market price 578628.78
Co. Ltd
Total 2540261.04 1913728.78
(3) Related-party guarantee
None.
(4) Remuneration for key management staff
Current Amount (Unit: ten Last Term Amount (Unit: ten
Item
thousand yuan) thousand yuan)
Remuneration for Key Management Staff 122.27 89.05
(5) Other related- parties
Item Related-party content Current Amoun Last Term Amount
Purchase water and
Beijing Guchuan Food. Co. Ltd 1769382.93 1544536.20
electricity
7. Related-party Receivables and Payables
(1) Receivables
Ending Balance Beginning Balance
Item Related-party Book Balance Provision Book Balance Provision
for Bad for Bad
Debts Debts
Monetary Beijing shounong Food Group Finance Co.167000000.00 158585719.53
funds Ltd
Total 167000000.00 158585719.53
Beijing ershang Wangzhihe Food Co. Ltd
Receivables 4439008.84 8584555.70
Beijing shounong consumption poverty
127558.00 3178672.00
alleviation and Innovation Center Co. Ltd
Beijing shounong Supply Chain Management
396373.85 1965569.85
Co. Ltd
Feed branch of Beijing Sanyuan Seed
1222661.87 1544618.10
Technology Co. Ltd
Hebei shounong Modern Agricultural
1531449.52 1473919.32
Technology Co. Ltd
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Ending Balance Beginning Balance
Item Related-party Book Balance Provision Book Balance Provision
for Bad for Bad
Debts Debts
Beijing Haidian Xijiao grain and oil supply
970468.40 1420904.00
station Co. Ltd
Beijing Zhujun grain and oil supply Co. Ltd
388800.00 1598080.00
Beijing Junyuan grain and oil purchasing and
1009912.00
Marketing Co. Ltd
Beijing Jingliang Dongfang grain and Oil
1036571.00 914231.75
Trading Co. Ltd
Beijing Liangguan grain and oil supply Co.1200.00 672100.00
Ltd
Beijing Guchun Food Co. Ltd
788395.00 330872.00
Beijing Wuhuan Shuntong Supply Chain
147000.00
Management Co. Ltd
Beijing food supply department No.34 supply
853306.80 83260.00
department Co. Ltd
Beijing Jingliang e-commerce Co. Ltd
56600.00
Beijing Solders Grain and Oil supply Co. Ltd
368000.00 29106.00
Beijing baijiayi Food Co. Ltd
23100.00
Beijing shounong Xiangshan Conference
5250.00
Center Co. Ltd
Beijing jingliang Logistics Co. Ltd
2704.00
Beijing Longsheng Hope Breakfast Co. Ltd
2635.00
Beijing Theron International Cultural
275.00
Development Co. Ltd
Shanghai Capital&Agricultural Investment
3819.12
Holdings Co. Ltd
Beijing Ershang Jiexi Food Co. Ltd
1012600.00
Total
13145826.40 23037750.72
(2) Payables
Beginning balance
Item Related-party Ending Balance
Beijing Guchuan Food Co. Ltd
Payables 73467.89 293871.55
Beijing Jingliang Dongfang grain and Oil Trading
33679.50 20674.03
Co. Ltd
Beijing Sanyuan Food Co. Ltd
13677.70
Beijing Yanxi Yueshengzhai Halal Food Co. Ltd
1922.50
Beijing Changyang farm Co. Ltd
1470.00
Beijing Sugar Industry Tobacco and Alcohol
430.90
Group Co. Ltd. Sugar Management Branch
345.60
Beijing Ershang Moqi zhonghong Food Co. Ltd
1055100.00
Beijing Daxing National Food Reserve
Total 1163023.89 331615.78
Other payables 2292270.30 1712270.30
Beijing Grain Group Co. Ltd
118809.60 118809.60
Beijing Jingliang e-commerce Co. Ltd
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
297619.31
Beijing Guchuan Food Co. Ltd
Total 2708699.21 1831079.90
8. Related-party Commitments
The Company has no related-party commitments this year.XII. Share based payment
There are no share based payments to disclose for the Company.XIII. Contingencies
There is a total of RMB4.1207 billion guarantee for the Company and his holding subsidiaries (of which the total amount of the
business guarantee is RMB 1.5207 billion and the total amount of the credit guarantee is RMB2.6 billion). As of the date of this financial
report There is a total of RMB3.216 billion guarantee for the Company and his holding subsidiaries (of which the total amount of the
business guarantee is RMB 1.5207 billion and the total amount of the credit guarantee is RMB1.6953 billion) of which the above
guarantees were guarantees between the holding subsidiaries of the Company.XIV. Events after the Balance Sheet Date
1. Important non-adjustment matters
As of the financial report date of the Company there is no important non-adjustment matters to disclose for the company.XV. Other Important Matters
1. Annuity Plan
Basic information of annuity: The company subsidiaries of Beijing Jingliang Food Co. Ltd. Beijing Guchun Oil Co. Ltd.Beijing Eisen Lubao Oil Co. Ltd. Beijing Jingliang Oil Co. Ltd. and Beijing Guchun Bread Food Co. Ltd. participated in the
enterprise annuity plan of Beijing Capital&Agriculture Group Co. Ltd. and formulated the implementation rules of their respective
enterprises under the annuity plan. The name of the annuity plan is Ping An Jinxiu life enterprise annuity plan; the trustee and account
manager are ping an Endowment Insurance Co. Ltd.; the trustee is China CITIC Bank Co. Ltd.2. Information of Divisions
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing oil and grease and so on according to its internal organizational structure
management requirements and internal reporting system. The Company's management regularly evaluates the operating results of these
divisions to determine the allocation of resources to them and evaluate their performance. The information reported by divisions should
be disclosed according to the accounting policies and measurement standards adopted by such divisions when they are reporting to the
management. These measurement bases should be consistent with the accounting and measurement bases for preparation of financial
statements.
(2) Reporting of the financial information of divisions
Item Food Processing Oil & Grease Other Offset Among Dvisions Total
Operating income 445877330.91 4881811652.44 557852.48 0.00 5328246835.83
Operating costs 331265649.95 4767883364.10 395974.36 0.00 5099544988.41
Operating profit 59351982.88 78634472.17 -3605333.66 0.00 34381121.39
Net profit attributable to
45422226.10 46152837.75 -3653565.94 406700.00 88328197.91
parent Company
Total assets 1079115761.79 5245743628.66 2757304920.53 -2938396895.35 6143767415.63
Total liabilities 131712508.58 2795864191.65 330617902.84 -311959049.11 2946235553.96
XVI. Notes to Main Financial Statement Items of Parent Company
1. Accounts Receivable
(1) Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
Among them: Within credit period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years)
2 to 3 years (including 3 years)
3 to 4 years (including 4 years) 3000.00
4 to 5 years (including 5 years) 51420.00
More than 5 years 72000.00
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Aging Ending Balance
Total 126420.00
(2) Disclosed according to the method of provision for bad debt
Ending Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts
Portfolio provision for bad debts 126420.00 100.00 114636.00 90.68 11784.00
Among them: aging portfolio 126420.00 100.00 114636.00 90.68 11784.00
Total 126420.00 -- 114636.00 -- 11784.00
（Continued）
Beginning Balance
Type(s) Book Balance Bad Debt Provision
Provision Book Value
Amount Ratio(%) Amount
Ratio(%)
Separate provision for bad debts
Portfolio provision for bad debts 126420.00 100.00 114636.00 90.68 11784.00
Among them: aging portfolio 126420.00 100.00 114636.00 90.68 11784.00
Total 126420.00 -- 114636.00 -- 11784.00
Portfolio provision for bad debts:
Portfolio provision item: aging portfolio
Beginning Balance
Ending Balance
Name
Accounts Bad Debt Provision Accounts Bad Debt Provision
receivable Provision Ratio receivable Provision Ratio
Within 1 Year (including 1 year)
Among them: Within the credit
period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years)
2 to 3 years (including 3 years)
3 to 4 years (including 4 years) 3000.00 1500.00 50.00 3000.00 1500.00 50.00
4 to 5 years (including 5 years) 51420.00 41136.00 80.00 51420.00 41136.00 80.00
More than 5 years 72000.00 72000.00 100.00 72000.00 72000.00 100.00
Total 126420.00 114636.00 126420.00 114636.00
(3) Details of bad debt provision
Type Carrying Amount changes for the period Carrying
amount at the amount at the end
Addition Withdrawal Write- Other
beginning
or reversal off changes
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Bad
debt 114636.00 114636.00
provision
Total 114636.00 114636.00
(4) Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
Ratio of the total balance of Bad debt
Debtors Book balance Aging Is it related
accounts receivable(%) provision
Hainan Pearl River Pipe 3-4 years 4-5 years
108000.00 85.43 No 99900.00
Pile Co. Ltd more than 5 years
Ceibs Agricultural
Qinhuangdao 18420.00 14.57 4-5years No 14736.00
Ddevelopment Co. Ltd
126420.00 100.00
Total
2. Other Receivables
(1) Overview
A. Classification
Item Ending Balance Beginning Balance
Interest receivable
Dividends receivable
Other receivables 100008.26 103341.26
Total 100008.26 103341.26
(2) Other Receivables
A. Disclosed according to aging
Aging Ending Balance
Within 1 Year (including 1 year)
Among them: Within credit period (within 3 months)
Credit period to 1 year
1 to 2 years (including 2 years) 105271.85
2 to 3 years (including 3 years)
3 to 4 years (including 4 years)
4 to 5 years (including 5 years)
More than 5 years 50000.00
Total 155271.85
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Intercourse Funds of Units 3333.00
Employee Receivables
Personal Intercourse Funds 50000.00 50000.00
Petty Cash 105271.85 105271.85
Others
Total 155271.85 158604.85
(3) Details about allowance for bad debt
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Provision for bad debt Expected credit loss in the for the whole period for the whole period Total
next 12 months (no credit (with credit
impairment) impairment)
Amount on January 1 2020 5263.59 50000.00 55263.59
Carrying amount on January 1
2020 during this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
Provision for the period
Reverse for the period
Transfer for the period
Write off for the period
Other changes
Carrying amount at the end of the
5263.59 50000.00 55263.59
period
(4) Details of bad debt provision
Carrying Amount changes for the period
Carrying amount
Type amount at the Withdrawal Write- Other
Addition at the end
beginning or reversal off changes
Bad debt 55263.59 55263.59
provision
Total 55263.59 55263.59
(5) Other receivables actually written off in the current period
The Company has no other receivables actually written off in the current period.
(6) Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall
Balance at End of Ending balance of
Name of Organization Nature of Funds Aging ending balance of other
Period bad debt reserves
receivables (%)
More than 5
Song Wang Personal payments 50000.00 32.20 50000.00
years
Yan Yan Reserve fund 46000.00 1-2 years 29.63 2300.00
Pai Feng Reserve fund 26671.80 1-2 years 17.18 1333.59
Zhongwei Cui Reserve fund 14007.40 1-2 years 9.02 700.37
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
Proportion in overall
Balance at End of Ending balance of
Name of Organization Nature of Funds Aging ending balance of other
Period bad debt reserves
receivables (%)
Guangjie Huang Reserve fund 10005.00 1-2 years 6.44 500.25
Total —— 146684.20 —— 94.47 54834.21
3. Long-term Equity Investment
Ending Balance Beginning Balance
Provisio Provisio
Item n for n for
Book Balance Book Value Book Balance Book Value
Impair Impair
ment ment
Investment in
2626437846.24 2626437846.24 2626437846.24 2626437846.24
subsidiaries
Total 2626437846.24 2626437846.24 2626437846.24 2626437846.24
(1) Investment in subsidiaries
Ending
Current
Beginning Current Current Balance of
Invested Entity Ending Balance Provision for
Balance Increase Decrease Provision for
Impairment
Impairment
Beijing Jingliang
2336639964.05 2336639964.05
Food Co. Ltd.Zhejiang little
prince Food Co. 249017319.14 249017319.14
Ltd
Jingliang rural
complex
construction and 15280563.05 15280563.05
operation (Xinyi)
Co. Ltd
Jingliang
(Caofeidian)
Agricultural 25500000.00 25500000.00
Development Co.Ltd.Total 2626437846.24 2626437846.24
4. Operating income and operating costs
(1) Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Core business
Other businesses 295530.28 170581.26 376609.17
Total 295530.28 170581.26 376609.17
5. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated by cost method
Others -28691.03 3 9 8 3 3 8 . 3 6
Total -28691.03 398338.36
XVII. Supplementary Information
Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2021
1. According to the requirements of the CSRC's "Explanatory Announcement on Information Disclosure of Companies
Publicly Issuing Securities No. 1 - Non-recurring Gains and Losses" the non-recurring gains and losses during the reporting
period shall be reported
(1) Details of non-recurring profit and loss in the reporting period
Details of non-recurring profit and loss Amouont Note
(1) Gains and losses on disposal of non current assets -58685.83
(2) Government subsidies included in the current profits and losses (closely related
to the business of the enterprise except the government subsidies enjoyed 797061.63
according to the national unified standard quota or quantitative)
(3) In addition to the effective hedging business related to the normal business of
the Company the profit and loss from changes in fair value arising from holding
trading financial assets derivative financial assets trading financial liabilities and
5299079.77
derivative financial liabilities as well as the investment income from the disposal
of trading financial assets derivative financial assets trading financial liabilities
derivative financial liabilities and other debt investments
(4) Other non-operating income and expenses other than the above 1016418.48
(5) Other profit and loss items that meet the definition of non recurring profit and
37.36
loss
Total non recurring profit and loss 7053911.41
Less: amount affected by income tax 1763477.85
Non recurring profit and loss after deducting the influence of income tax 5290433.56
Including: non recurring profit and loss attributable to the owner of the parent
5054860.51
Company
Non recurring profit and loss attributable to minority shareholders 235573.05
2. Return on equity and earnings per share
Weighted Return on Average EPS
Current Profit Equity (ROAE) (%)
Basic EPS Diluted EPS
Net profit attributable to the Company's common
3.21 0.12 0.12
shareholders
Net profit attributable to common shareholders after
3.03 0.11 0.11
deduction of non-recurring gains and losses
Legal Representative:LI Shaoling Chief Accounting Officer:Guan Ying Leader of the Accounting Body:Liu Quanli
Hainan Jingliang Holdings Co. Ltd.25 August 2021
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