HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL REPORT 2026
August 2026HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL REPORT 2026
I Important Notes
This report is based on the full Annual Report of Hainan Jingliang Holdings Co. Ltd. (together with its
consolidated subsidiaries the "Company" except where the context otherwise requires). To gain a comprehensive
understanding of the Company's operating results financial position and future development plans investors are
advised to carefully review the full Annual Report on the designated media specified by the China Securities
Regulatory Commission (the "CSRC").This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the Chinese and English versions the Chinese version shall prevail.All the Company's directors have attended the board meeting for the review of this report.Independent auditor's modified opinion
□ Applicable□ Not applicable
Board-approved profit distribution plan or proposal on capitalizing capital reserve into share capital for the
reporting period
□ Applicable□ Not applicable
The Company proposes not to distribute any cash dividends issue any bonus shares or convert any capital
reserve into share capital.Board-approved profit distribution plan for preferred shares for the reporting period
□ Applicable□ Not applicable
II Key Corporate Information
1. Company 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
8/F Tower B Capital Agricultural Science
and Innovation Mansion Building No.1 8/F Tower B Capital Agricultural Science andOffice address Community No.8 Xinning Street Daxing Innovation Mansion Building No.1 Community
District Beijing No.8 Xinning Street Daxing District Beijing
Fax 010-81219987 010-81219987
Tel. 010-81219989 010-81219989
E-mail address guanying@bjjlkg.cn gaodeqiu@bjjlkg.cn2. Key Accounting Data and Financial Indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous years:
□ Yes□ No
Same period of the
Reporting period YoY change (%)
previous year
Operating revenue (RMB) 3114926721.51 4208146255.86 -25.98%
Net profit attributable to shareholders of the listed
company (RMB) 8032416.00 17950174.11 -55.25%
Net profit attributable to shareholders of the listed
company excluding non-recurring gains and losses 6729666.28 16746547.20 -59.81%
(RMB)
Net cash flows from operating
activities (RMB) 390028756.88 222436293.07 75.34%
Basic EPS (RMB/share) 0.01 0.02 -50.00%
Diluted EPS (RMB/share) 0.01 0.02 -50.00%
Weighted average ROE (%) 0.28% 0.57% -0.29%
At the end of the At the end of the
reporting period previous year
Change (%)
Total assets (RMB) 5700173158.01 6118282221.45 -6.83%
Net assets attributable to the listed company's
shareholders (RMB) 2870523326.87 2863413043.74 0.25%
3.Shareholders and their shareholdings
Unit: Share
Number of preferred
Number of ordinary shareholders at the end of the shareholders with restored
reporting period 51588 0voting rights at the end of the
reporting period (if any)
Shareholdings of the top 10 shareholders (excluding shares lent through securities lending and borrowing)
Shares in pledge marked or
Type of Shareholding Number of Restricted
Name of shareholder frozen
shareholder percentage shares held shares held
Status Number
BEIJING GRAIN GROUP State-owned
39.68% 288439561 0 Not applicable 0
CO. LTD. legal person
BEIJING STATE-OWNED
State-owned
CAPITAL OPERATION AND 6.67% 48510460 0 Not applicable 0
legal person
MANAGEMENT CO. LTD.Domestic
WANG YUECHENG 4.74% 34459887 0 Not applicable 0
natural person
Domestic
LUO TAIXIANG 0.40% 2933100 0 Not applicable 0
natural person
Domestic
WU XIN 0.37% 2721800 0 Not applicable 0
natural person
CHINA MINSHENG BANK
CO. LTD. – JINYUAN
SHUN'AN YUANQI Other 0.32% 2302100 0 Not applicable 0
FLEXIBLE ALLOCATION
MIXED SECURITIESINVESTMENT FUND
Domestic
FAN WEIHONG 0.27% 1955400 0 Not applicable 0
natural person
Domestic
ZHANG XIAOXIA 0.27% 1949250 0 Not applicable 0
natural person
Domestic
JIANG XUE 0.23% 1654100 0 Not applicable 0
natural person
Overseas Legal
Goldman Sachs & Co. LLC 0.22% 1612601 0 Not applicable 0
Person
Beijing State-owned Capital indirectly holds 100% of Beijing Jingliang Group
Disclosure of affiliations or concerted action Co. Ltd. Except for the above shareholder relationships the Company is not
among the above shareholders aware of any related-party relationships or acting in concert among the top ten
shareholders.Shareholder Jiang Xue holds 1654100 shares of the Company through a
Disclosure on shareholders involved in securities
customer credit transaction guarantee securities account with Shenwan
margin trading (if any)
Hongyuan Securities Co. Ltd.Shareholders holding more than 5% the top 10 shareholders and the top 10 unrestricted public shareholders
participated in the securities lending and borrowing business.□Applicable□ Not applicable
The top 10 shareholders and the top 10 unrestricted public shareholders experienced changes from the
previous period due to securities lending and borrowing business.□Applicable□ Not applicable
4.Change of controlling shareholder or actual controller
Change of controlling shareholder during the reporting period
□ Applicable□ Not applicable
The Company's controlling shareholder remained unchanged during the reporting period.Change of actual controller during the reporting period
□ Applicable□ Not applicable
The Company's actual controller remained unchanged during the reporting period.
5.Total preferred shareholders and shareholdings of Top 10
□ Applicable□ Not applicable
The Company had no preferred shareholdings during the reporting period.
6.Bonds outstanding as of the approval date of the semi-annual report
□ Applicable□ Not applicable
(1)Bond information
Name of Bond Abbreviation Bond
Bond Balance (in
of Bonds code Issue Date Maturity Date ten thousands InterestYuan)Hainan Jingliang Holdings Co.Ltd. 2023 public issuance of 21-22 Aug
23Jingliang01 148434 22 Aug 2026 30000 2.88%
corporate bonds for qualified 2023
investors (1st issue)
(2)Financial indicators as of the reporting period end
Item At the end of the reporting period At the end of the previous year
Asset-liability ratio 43.50% 47.51%
Item the current reporting period Same period of the previous year
EBITDA interest coverage ratio 4.21 3.91
III Significant Events
During the reporting period the Company did not experience any significant changes in its operating
conditions. For detailed matters during the reporting period.HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUAL FINANCIAL REPORT 2026
This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.I Financial Report
Independent auditor’s modified opinion:
□ Applicable□ Not applicable
The 2026 Semi-Annual Financial Report is not audited by Independent auditor.II Financial Statement
The unit of financial statements in the financial notes is: Yuan
Editor: Hainan Jingliang Holdings Co. Ltd.
1. Consolidated Balance Sheet
June 30 2026
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items 30 June 2026 31 December 2025
Current Assets:
Monetary capital 1690131184.91 1821722517.08
Deposit reservation for balance
Lending funds
Transactional financial assets
Derivative financial assets 27829740.00
Notes receivable
Accounts receivable 79488640.32 98216373.71
Receivables financing
Prepayment 21065556.22 574410843.60
Premiums receivable
Reinsurance accounts receivable
Provision for cession receivable
Other receivables 245178434.01 173257419.17
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1561092167.01 1421929091.40Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 143832330.26 99250439.60
Total current assets 3768618052.73 4188786684.56
Non-current assets:
Granting loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 271539088.34 267272969.32
Other equity instruments investment
Other non-current financial assets
Investment property 15400465.70 16252551.54
Fixed assets 814065422.12 841479812.89
Construction in process 130672973.43 88960509.10
Productive biological assets
Oil-and-gas assets
Right-of-use assets 164746700.89 169826775.50
Intangible assets 362822841.93 370583609.88
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 125632393.35 125632393.35
Long-term deferred expenses 1165700.87 3362646.84
Deferred income tax assets 36766626.43 36843176.25
Other non-current assets 8742892.22 9281092.22
Total non-current assets 1931555105.28 1929495536.89
Total assets 5700173158.01 6118282221.45
Current liabilities:
Short-term borrowings 709701803.20 1136260975.85
Borrowings from central bank
Borrowings from banks and other financial institutions
Transactional financial liabilities
Derivative financial liabilities 9953208.15 3815280.00Notes payable 56649763.00
Accounts payable 74646241.83 66273857.12
Account collected in advance 1222673.11 1670875.73
Contract liabilities 359063926.94 275724804.27
Repayment of financial assets through sale and repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Employee payroll payable 16919810.80 29353455.84
Taxes payable 7183532.89 38204738.18
Other payables 76606599.09 62493915.38
Including: Interest payable 20000000.00 20000000.00
Dividends payable
Covering handling fees and commissions
Dividend payable for reinsurance
Held-for-sale liabilities
Non-current liabilities due within one year 378570042.32 376319750.69
Other current liabilities 34663083.60 36800107.16
Total current liabilities 1668530921.93 2083567523.22
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings 573500000.00 576500000.00
Bonds payable
Including: Preferred stock
Perpetual capital bonds
Lease liabilities 129034211.34 135451638.57
Long-term payables
Long-term payable to employees 5259134.00 5321134.00
Estimated liabilities 22650893.15 22650893.15
Deferred income 53022776.39 53936649.47
Deferred income tax liabilities 27843166.00 29132160.48
Other non-current liabilities
Total non-current liabilities 811310180.88 822992475.67
Total liabilities 2479841102.81 2906559998.89
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1683673958.02 1683673958.02
Less: treasury stockOther comprehensive income 137442.05 1059574.92
Special reserves
Surplus reserves 144701147.27 144701147.27
General risk reserve
Undistributed profit 315060528.53 307028112.53
Owner's Equity (or shareholder's equity) Attributable to Shareholders of the Parent
Company 2870523326.87 2863413043.74
Minority equity 349808728.33 348309178.82
Total owners' equity (or shareholders' equity) 3220332055.20 3211722222.56
Total liabilities and owners' equity (or shareholders' equity) 5700173158.01 6118282221.45
Legal Representative: Wang Chunli Chief Financial Officer: Guan Ying Head of Accounting Department: Cao Ling
2. Balance Sheet of Parent Company
Monetary Unit: RMB Yuan
Items 30 June 2026 31 December 2025
Current Assets:
Monetary capital 332440458.97 341590983.27
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment 25050.00
Other receivables 945263055.56 930000000.00
Including: Interest receivable
Dividends receivable
Inventory
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 674245.69 588414.42
Total current assets 1278402810.22 1272179397.69
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 2442399283.19 2442399283.19Other equity instrument investments
Other non-current financial assets
Investment property 4350926.15 4520056.97
Fixed assets 4483531.03 4841558.75
Construction in process
Productive biological assets
Oil-and-gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses 239274.37 290547.43
Deferred income tax assets
Other non-current assets 7326142.22 7326142.22
Total non-current assets 2458799156.96 2459377588.56
Total assets 3737201967.18 3731556986.25
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 236000.00
Account collected in advance
Contract liabilities
Employee payroll payable 143761.96 150534.39
Taxes payable 96040.38 105528.51
Other payables 29274631.67 21383284.41
Including: Interest payable 20000000.00 20000000.00
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year 307125000.00 302580000.00
Other current liabilities
Total current liabilities 336639434.01 324455347.31
Non-current liabilities:Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term payable to employees
Estimated liabilities 22650893.15 22650893.15
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 22650893.15 22650893.15
Total liabilities 359290327.16 347106240.46
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 2386924900.84 2386924900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 132065774.68 132065774.68
Undistributed profit 131970713.50 138509819.27
Total owners' equity (or shareholders' equity) 3377911640.02 3384450745.79
Total liabilities and owners' equity (or shareholders' equity) 3737201967.18 3731556986.25
3. Consolidated Income Statement
Monetary Unit: RMB Yuan
Items Amount for the Amount for thecurrent period prior period
I. Total operating income 3114926721.51 4208146255.86
Including: Operating income 3114926721.51 4208146255.86
Interest income
Accumulated Premium
Fee and commission income
II. Total operating cost 3126051528.56 4179559981.23
Including: Operating cost 2939959917.36 3972762726.56
Interest expense
Commission and fee expense
Policy surrender benefit
Net payout expenseNet extraction of insurance liability reserve
Policy dividend expense
Reinsurance expense
Tax and surcharges 10986581.15 11641785.65
Selling expenses 62285353.26 65707454.27
Administration expenses 86454913.13 91754104.13
Research and development expenses 7986890.91 9201480.97
Financial expenses 18377872.75 28492429.65
Including: interest expenses 23857714.79 31665713.92
Interest income 5794866.63 5319761.53
Add: Other income 6176238.71 5867507.90
Income from investment (Losses shall be filled in with “-”) 4266119.02 3572053.10
Including: income from investment on joint venture and cooperative enterprise 4266119.02 3572053.10
income from derecognition of financial assets measured at amortized cost
Exchange gain (Losses shall be filled in with “-”)
Income from net exposure hedging (Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”) 17105743.14 -10955589.95
Credit impairment loss (Losses shall be filled in with “-”) 126000.00 52.30
Income from assets impairment (Losses shall be filled in with “-”) -37303.33
Income from asset disposal (Losses shall be filled in with “-”) 314309.51 16255830.49
III. Operating profit (Losses shall be filled in with “-”) 16863603.33 43288825.14
Add: non-operating income 295082.31 171433.89
Less: non-operating expenditure 378632.51 16645099.05
IV. Total profit (Total losses shall be filled in with “-”) 16780053.13 26815159.98
Less: income tax expense 7248087.62 9128997.37
V. Net profit (Net loss shall be filled in with “-”) 9531965.51 17686162.61
(I) Classified by operations continuity
1. Net profit from continuing operations (Net loss shall be filled in with “-”) 9531965.51 17686162.61
2. Net profit from discontinuing operations (Net loss shall be filled in with “-”)
(II) Classified by ownership attribution
1. Net profit attributable to shareholders of the parent company (Net loss shall be
filled in with “-”) 8032416.00 17950174.11
2. Minority interest income (Net loss shall be filled in with “-”) 1499549.51 -264011.50
VI. Net of tax from other comprehensive income -922132.87 -111113.23
One. Net of tax from other comprehensive income attributable to shareholders of the
parent company -922132.87 -111113.23
1. Other comprehensive income that cannot be reclassified into profit and loss
(1) Remeasurement changes in defined benefit plans
(2) Other comprehensive income that cannot be transferred to gains and losses under
the equity method
(3) Changes in fair value of other equity instrument investments
(4) Changes in the fair value of the company's own credit risk
(5) Others2. Other comprehensive income that will be reclassified into profit and loss -922132.87 -111113.23
(1) Other comprehensive income that can be transferred to gains and losses under
the equity method
(2) Changes in fair value of other debt investments
(3) Reclassification of financial assets included in other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedge reserve
(6) Balance arising from the translation of foreign currency -922132.87 -111113.23
(7)Others
Net of tax from other comprehensive income attributable to minority shareholders
VII. Total comprehensive income 8609832.64 17575049.38
(I) Total comprehensive income attributable to shareholders of the parent company 7110283.13 17839060.88
(II) Total comprehensive income attributable to minority shareholders 1499549.51 -264011.50
VIII. Earnings per share:
(I) Basic earnings per share 0.01 0.02
(II) Diluted earnings per share 0.01 0.02
Legal Representative: Wang Chunli Chief Financial Officer: Guan Ying Head of Accounting Department: Cao Ling
4. Income Statement of Parent Company
Monetary Unit: RMB Yuan
Items Amount for the Amount for thecurrent period prior period
I. Total operating income 400910.09 561810.67
Less: Operating cost 169130.82 169130.82
Tax and surcharges 192558.06 299047.92
Selling expenses
Administration expenses 2818275.78 3080454.42
Research and development expenses
Financial expenses 3769269.77 4022147.97
Including: interest expenses 4545000.00 4545000.00
Interest income 777964.50 511248.31
Add: Other income 9218.57 66345.27
Income from investment (Losses shall be filled in with “-”) 86434733.13
Including: income from investment on joint venture and cooperative enterprise
Income from derecognition of financial assets measured at amortized cost
Income from net exposure hedging (Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”)
Credit impairment loss (Losses shall be filled in with “-”)
Income from assets impairment (Losses shall be filled in with “-”)
Income from asset disposal (Losses shall be filled in with “-”)
III. Operating profit (Losses shall be filled in with “-”) -6539105.77 79492107.94
Add: non-operating income 142506.46
Less: non-operating expenditure 142506.46 42544.80
IV. Total profit (Total losses shall be filled in with “-”) -6539105.77 79449563.14Less: income tax expense
V. Net profit (Net loss shall be filled in with “-”) -6539105.77 79449563.14
1. Net profit from continuing operations (Net loss shall be filled in with “-”) -6539105.77 79449563.14
2. Net profit from discontinuing operations (Net loss shall be filled in with “-”)
V. Net of tax from other comprehensive income
1. Other comprehensive income that cannot be reclassified into profit and loss
(1) Remeasurement changes in defined benefit plans
(2) Other comprehensive income that cannot be transferred to gains and losses under
the equity method
(3) Changes in fair value of other equity instrument investments
(4) Changes in the fair value of the company's own credit risk
(5)Others
2. Other comprehensive income that will be reclassified into the profit and loss
(1) Other comprehensive income that can be transferred to gains and losses under
the equity method
(2) Changes in fair value of other debt investments
(3) Reclassification of financial assets included in other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedge reserve
(6) Balance arising from the translation of foreign currency
(7) Others
VII. Total comprehensive income -6539105.77 79449563.14
VIII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5.Consolidated Cash Flow Statement
Monetary Unit: RMB Yuan
Items Amount for the current period Amount for the prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 3544345764.08 5146353207.59
Net increase in customer deposits and interbank placements
Net increase in borrowings from the central bank
Net increase in funds borrowed from other financial institutions
Cash received from premiums of original insurance contracts
Net cash received from reinsurance business
Net increase in policyholder funds and investment funds
Cash received from interest fees and commissions
Net increase in funds borrowed
Net increase in funds used for repo transactions
Net cash received from securities trading on behalf of clientsTax Refund Receipts 3682482.86 7708869.99
Other Cash Receipts Concerning Operating Activities 556873686.92 3546804253.47
Subtotal of Cash Inflows from Operating Activities 4104901933.86 8700866331.05
Cash Paid for Purchase of Goods and Accepting Services 2709725947.96 4697505265.22
Net increase in customer loans and advances
Net increase in deposits with central bank and other financial
institutions
Cash paid for claims under original insurance contracts
Net increase in funds lent out
Cash paid for interest fees and commissions
Cash paid for policy dividends
Cash Paid to and for Employees 154227384.75 154554722.43
Taxes and Fees Paid 93495832.55 63767878.30
Other Cash Paid Concerning Operating Activities 757424011.72 3562602172.03
Subtotal of Cash Outflows from Operating Activities 3714873176.98 8478430037.98
Net Cash Flows from Operating Activities 390028756.88 222436293.07
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment
Cash Receipts from Returns on Investments
Net Cash from Disposal of Fixed Assets Intangible Assets and
Other Long-term Assets 46318.44
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 46318.44
Cash Paid for Purchase and Construction of Fixed Assets
Intangible Assets and Other Long-term Assets 76195819.29 22300701.06
Cash Paid for Investments
Net increase in pledged loan amount
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 76195819.29 22300701.06
Net Cash Flows from Investment Activities -76149500.85 -22300701.06
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment 1500000.00
Including: Cash Received by Subsidiaries Absorbing the
Investment from Minority Shareholders 1500000.00
Cash Receipts from Borrowings 724049105.70 2404441868.75
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities 724049105.70 2405941868.75
Cash Paid for Repayment of Debts 1153637924.89 2227516445.20Cash Paid for Distribution of Dividends Profits or Repayment of
Interests 17953141.80 38307499.25
Including: Dividends and Profits Paid by Subsidiaries to Minority
Shareholders
Other Cash Paid Concerning Financing Activities 9474709.30 679200.00
Subtotal of Cash Outflows from Financing Activities 1181065775.99 2266503144.45
Net Cash Flows from Financing Activities -457016670.29 139438724.30
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents 20094393.82 -5154893.89
V. Net Increase in Cash and Cash Equivalents -123043020.44 334419422.42
Add: Opening Balance of Cash and Cash Equivalents 1788311181.44 1395519746.77
VI. Closing Balance of Cash and Cash Equivalents 1665268161.00 1729939169.19
6. Cash Flow Statement of Parent Company
Monetary Unit: RMB Yuan
Items Amount for the current period Amount for the prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 436992.00
Tax Refund Receipts
Other Cash Receipts Concerning Operating Activities 9094234.29 838662.89
Subtotal of Cash Inflows from Operating Activities 9531226.29 838662.89
Cash Paid for Purchase of Goods and Accepting Services 273050.00 15383.17
Cash Paid to and for Employees 550237.97 606099.83
Taxes and Fees Paid 192558.06 309699.19
Other Cash Paid Concerning Operating Activities 2665904.56 2334725.33
Subtotal of Cash Outflows from Operating Activities 3681750.59 3265907.52
Net Cash Flows from Operating Activities 5849475.70 -2427244.63
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 75000000.00
Cash Receipts from Returns on Investments 104439339.88
Net Cash from Disposal of Fixed Assets Intangible Assets and
Other Long-term Assets
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 75000000.00 104439339.88
Cash Paid for Purchase and Construction of Fixed Assets
Intangible Assets and Other Long-term Assets 1875270.00
Cash Paid for Investments 90000000.00 101600000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment ActivitiesSubtotal of Cash Outflows from Investment Activities 90000000.00 103475270.00
Net Cash Flows from Investment Activities -15000000.00 964069.88
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Cash Receipts from Borrowings
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities
Cash Paid for Repayment of Debts
Cash Paid for Distribution of Dividends Profits or Repayment of
Interests 13071629.56
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities 13071629.56
Net Cash Flows from Financing Activities -13071629.56
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents -9150524.30 -14534804.31
Add: Opening Balance of Cash and Cash Equivalents 319720223.25 343402502.17
VI. Closing Balance of Cash and Cash Equivalents 310569698.95 328867697.867.Consolidated Statement of Changes in Equity
Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Items Other equity instruments
O
Total
Less: Other Special General
t
Paid-in capital Capital reserve treasur comprehensive Surplus reserve Risk Undistributed h
Minority equity shareholders'
reserve profit e Subtotal equities
Preferre Perpetual Oth y stock income Reserve r
d stock bond ers s
I. Year-end balance of last
year 726950251.00 1683673958.02 1059574.92 144701147.27 307028112.53 2863413043.74 348309178.82 3211722222.56
Add: changes in
accounting policies
Correction of prior period
errors
Other
II. Balance at beginning of
current year 726950251.00 1683673958.02 1059574.92 144701147.27 307028112.53 2863413043.74 348309178.82 3211722222.56
III. Increases and
decreases of current
period (Decrease shall be -922132.87 8032416.00 7110283.13 1499549.51 8609832.64
filled in with “-”)
(I) Total comprehensive
income -922132.87 8032416.00 7110283.13 1499549.51 8609832.64
(II) Investment of
shareholders and capital
reduction
1. Common equity
invested by shareholders
2. Capital invested by
other equity instruments
holders
3. The amount of shares
recorded into the
shareholder's equity
4. Others
(III) Distribution of profits
1. Withdrawal of surplus
reserves
2. Extract general risk
provisions3. Distribution to
shareholders
4. Others
(IV) Inner carrying-over
of shareholders' equities
1. Capital reserve
converted into capital (or
capital stock)
2. Surplus public
accumulation converted
into capital (or capital
stock)
3. Surplus public
accumulation loss remedy
4. Change in defined
benefit plan carried
forward to retained
earnings
5.Other comprehensive
income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current
period
2. Use for current period
(VI) Others
IV. Closing balance of
current period 726950251.00 1683673958.02 137442.05 144701147.27 315060528.53 2870523326.87 349808728.33 3220332055.20Amount of Last Period
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Items Other equity instruments
O
Total
Less: Other General t Minority equity shareholders'
Paid-in capital Capital reserve treasury comprehensi Specialreserve Surplus reserve Risk
Undistributed h Subtotal equities
Preferre Perpetual Oth stock ve income Reserve
profit e
r
d stock bond ers s
I. Year-end balance of last
year 726950251.00 1683673958.02 1763043.44 137418617.07 593483706.16 3143289575.69 367662950.92 3510952526.61
Add: changes in
accounting policies
Correction of prior period
errors
Other
II. Balance at beginning of
current year 726950251.00 1683673958.02 1763043.44 137418617.07 593483706.16 3143289575.69 367662950.92 3510952526.61
III. Increases and
decreases of current period
(Decrease shall be filled in -111113.23 4865069.59 4753956.36 -569623.30 4184333.06
with “-”)
(I) Total comprehensive
income -111113.23 17950174.11 17839060.88 -264011.50 17575049.38
(II) Investment of
shareholders and capital 1500000.00 1500000.00
reduction
1. Common equity
invested by shareholders 1500000.00 1500000.00
2. Capital invested by
other equity instruments
holders
3. The amount of shares
recorded into the
shareholder's equity
4. Others
(III) Distribution of profits -13085104.52 -13085104.52 -1805611.80 -14890716.32
1. Withdrawal of surplus
reserves
2. Extract general risk
provisions
3. Distribution to
shareholders -13085104.52 -13085104.52 -1805611.80 -14890716.324. Others
(IV) Inner carrying-over of
shareholders' equities
1. Capital reserve
converted into capital (or
capital stock)
2. Surplus public
accumulation converted
into capital (or capital
stock)
3. Surplus public
accumulation loss remedy
4. Change in defined
benefit plan carried
forward to retained
earnings
5.Other comprehensive
income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current
period
2. Use for current period
(VI) Others
IV. Closing balance of
current period 726950251.00 1683673958.02 1651930.21 137418617.07 598348775.75 3148043532.05 367093327.62 3515136859.678.Statement of Changes in Equity of Parent Company
Monetary Unit: RMB Yuan
Current Amount
Items Other equity instruments Less: Other
Paid-in capital Capital reserve treasury comprehensi Special Undistributed
stock ve income reserve
Surplus reserve profit Others Subtotal
Preferred Perpetual
stock bond Others
I. Year-end balance of last year 726950251.00 2386924900.84 132065774.68 138509819.27 3384450745.79
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current
year 726950251.00 2386924900.84 132065774.68 138509819.27 3384450745.79
III. Increases and decreases of current
period (Decrease shall be filled in -6539105.77 -6539105.77
with “-”)
(I) Total comprehensive income -6539105.77 -6539105.77
(II) Investment of shareholders and
capital reduction
1. Common equity invested by
shareholders
2. Capital invested by other equity
instruments holders
3. The amount of shares recorded
into the shareholder's equity
4. Others
(III) Distribution of profits
1. Withdrawal of surplus reserves
2. Distribution to shareholders
3. Others
(IV) Inner carrying-over of
shareholders' equities
1. Capital reserve converted into
capital (or capital stock)
2. Surplus public accumulation
converted into capital (or capital
stock)3. Surplus public accumulation loss
remedy
4. Change in defined benefit plan
carried forward to retained earnings
5.Other comprehensive income
carried forward to retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current period
2. Use for current period
(VI) Others
IV. Closing balance of current period 726950251.00 2386924900.84 132065774.68 131970713.50 3377911640.02Amount of Last Period
Amount of Last Period
Items Other equity instruments Less: Other
Paid-in capital Capital reserve treasury comprehensive Specialreserve Surplus reserve
Undistributed
profit Others Subtotal
Preferred Perpetual stock income
stock bond Others
I. Year-end balance of last
year 726950251.00 2386924900.84 124783244.48 86052152.99 3324710549.31
Add: changes in
accounting policies
Correction of prior period
errors
Other
II. Balance at beginning of
current year 726950251.00 2386924900.84 124783244.48 86052152.99 3324710549.31
III. Increases and
decreases of current period
(Decrease shall be filled in 66364458.62 66364458.62
with “-”)
(I) Total comprehensive
income 79449563.14 79449563.14
(II) Investment of
shareholders and capital
reduction
1. Common equity
invested by shareholders
2. Capital invested by
other equity instruments
holders
3. The amount of shares
recorded into the
shareholder's equity
4. Others
(III) Distribution of profits -13085104.52 -13085104.52
1. Withdrawal of surplus
reserves
2. Distribution to
shareholders -13085104.52 -13085104.52
3. Others
(IV) Inner carrying-over of
shareholders' equities
1. Capital reserve
converted into capital (orcapital stock)
2. Surplus public
accumulation converted
into capital (or capital
stock)
3. Surplus public
accumulation loss remedy
4. Change in defined
benefit plan carried
forward to retained
earnings
5.Other comprehensive
income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal for current
period
2. Use for current period
(VI) Others
IV. Closing balance of
current period 726950251.00 2386924900.84 124783244.48 152416611.61 3391075007.93Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Hainan Jingliang Holdings Co. Ltd.Notes to the Semi-Annual of 2026 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
143Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
additional B shares were issued and the share capital of the Company after the increase was 377650800 shares.The holding parent company Guangzhou Pearl River Enterprises Group held 112628976 shares accounting
for 29.82% of the total.In 1999 Guangzhou Pearl River Enterprises Group transferred all 112628976 shares to Beijing Wanfa
Real Estate Development Co. Ltd. After the transfer of shares was completed in June 1999 Beijing Wanfa Real
Estate Development Co. Ltd. held 112628976 shares of the Company accounting for 29.82% of the total
shares of the Company and became the controlling shareholder of the Company.On January 10 2000 the name of the Company was changed to Hainan Pearl River Holding Co. Ltd. and
the Business License for Enterprise Legal Person was renewed by Industrial & Commerce Administration
Bureau of Hainan Province.On August 17 2006 the reform plan of the split share structure of the Company was implemented. The
Company transferred 49094604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original
non-tradable shareholders transferred the increased shares to the tradable A-shareholders. 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
144Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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 Jingliang Food Co. Ltd. (hereinafter referred to as Beijing Jingliang 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 2026 the company has issued 726950251.00 shares and the company's share capital is
726950251.00 yuan; Uniform Social Credit Code: 914600002012845568; Registration authority: Hainan
Market Supervision Administration; Company type: Limited Company (Listed State-controlled); Registered
address: F29 Dihao Building Pearl River Square Binhai Avenue Haikou City; Legal representative:
WangChunli.
145Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
2. The nature of the Company's business and its main business activities
The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main
business activities mainly includes: food beverages oilseeds and by products vegetable proteins and their
products organic fertilizers microbial fertilizers production and marketing of agricultural fertilizers; land
consolidation soil remediation; agricultural comprehensive planting development animal husbandry and
aquaculture agricultural equipment production and marketing; computer network technology investment in
communication projects research and development and application of high-tech products; investment and
consultation of environmental protection projects; animation graphic design; import and export trade in goods
and technology; rental of own premises.The Company and its subsidiaries are principally engaged in the processing and sales of oil and oilseeds
and processing and sales of foodstuffs.
3. The name of the parent company and the ultimate parent company.
The parent company of the company is Beijing Grain Group Co. Ltd. and the ultimate parent company is
Beijing Capital Agribusiness Food Group Co. Ltd.
4. Term of Operation
From March 22 1988 to the present (with no fixed end date).
5. The approval institution and the approval date of the financial statements.
The financial statements have been approved by the Board of Directors of the Company in its resolution
dated August 25 2026.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
146Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
material matters affecting the company's going concern capability were found. Therefore the financial
statements are presented on a going concern basis is reasonable.III Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing and sales of oil and oilseeds and
processing and sales of foodstuffs. According to the characteristics of actual production and operation and the
provisions of relevant accounting standards for business enterprises the Company and its subsidiaries have
formulated a number of specific accounting policies and accounting estimates for transactions and events such
as revenue recognition. For details please refer to the descriptions in Note Ⅲ 27 “Revenue”.
1. Statement of Compliance with Enterprise Accounting Standards
The financial statements prepared by the company comply with the requirements of the Enterprise
Accounting Standards and fairly and completely reflect the company's and consolidated financial position as of
June 30 2026 as well as the company's and consolidated operating results changes in shareholders' equity and
cash flows for the six-month period then ended.Additionally these financial statements are prepared with reference to the disclosure and reporting
requirements outlined in the China Securities Regulatory Commission’s "Regulations on the Preparation of
Information Disclosure Reports for Publicly Issued Securities No. 15 - General Provisions on Financial
Reports" (revised in 2023).
2. Accounting Period
The accounting period of the Company is divided into an annual period and an interim period. The
accounting interim period refers to the reporting period shorter than a full accounting year. The fiscal year of
the Company adopts the Gregorian calendar year that is from January 1 to December 31 of each year.
3. Business Cycle
The normal business cycle is the period from the time the Company purchases assets for processing to the
time when cash or cash equivalents are realized. The Company uses 12 months as a business cycle and uses it as
a liquidity classification standard for assets and liabilities.
4. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic
147Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
subsidiaries operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standard
currency. The offshore subsidiaries of the Company determine USD as their bookkeeping standard currency
based on the currencies in the main economic environment in which they operate. The currency used by the
Company in preparing these financial statements is RMB.
5. Materiality Standards Determination Method and Selection Basis
The company follows the materiality principle when preparing and disclosing financial reports. If
disclosure matters involve the judgment of materiality standards. the methods of determining materiality
standards and selection basis are disclosed as follows:
Disclosure matters involve the judgment
of materiality standards Methods of determining materiality standards and selection basis
Impairment test made on individual Impairment test made on individual accounts receivables accounting
accounts receivable with significant over 10% as total provision for various types of bad debts receivables
amounts. and amounts exceeding 5 million yuan
Significant bad debt reserve for accounts Individual item recovered or reversed accounting over 10% as total
receivable recovered or reversed amounts for various types of receivables and exceeding 5 million yuan
Significant receivables actually written Individual write-off amount accounting for over 10% as total amounts
off of various types of bad debts reserve for receivables and amountsexceeding 5 million yuan
Significant contractual liabilities with Individual contractual liabilities with aging over one year accounting
aging over one year over 10% of total amount of contractual liabilities and amountsexceeding 10 million yuan
Significant project under construction Projects with investments exceeding 5 million yuan
Significant non-wholly owned Non-wholly owned subsidiaries with individual entity revenue and net
subsidiaries profit accounting 10% for items related to the Company's consolidatedstatements
Significant associated enterprise and Associated enterprise and joint-venture with net profit share
joint-venture. recognized in the current period accounting 5% for items related to theCompany’s consolidated statements
Significant investment activities Transactions involving the purchase of bonds funds wealthmanagement products etc. with an amount reaching 50 million yuan.
6. The Accounting Treatment of Business Combination under the Same Control and Different
Control
Business Combination refers to the transaction or event in which two or more separate enterprises are
merged to form one reporting entity. Business combination can be divided into business combination under the
same control and business combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties
before and after the combination and the control is not temporary so it is the business combination under the
148Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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
149Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
consideration is required. The consolidation cost incurred by the Purchaser and the identifiable net assets
acquired during the consolidation are measured at the fair value at the date of purchase. The difference between
the merger costs and the fair value shares of the identifiable net assets of the Purchasee at the purchase date
obtained in the merger is recognized as goodwill. If the combined cost is less than the fair value of the
identifiable net assets of the Purchasee in the merger first the fair value of the identifiable assets liabilities and
contingent liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked. If the
consolidation cost is still smaller than the fair value share of the identifiable net assets of the Purchased obtained
in the consolidation after the re-check the difference shall be recorded into the profits and losses of the current
period.When the Purchaser acquires the deductible temporary difference of the Purchasee if it fails to recognize
the deferred income tax assets on the date of purchase because it does not meet the recognition conditions for
the deferred income tax and within 12 months of the date of purchase new or further information is obtained
indicating that the relevant circumstances at the purchase date already exist and the economic benefits from the
temporary difference deductible by the purchaser on the purchase date are expected to be realized the relevant
deferred income tax assets shall be recognized and the goodwill shall be reduced. If the goodwill is not
sufficiently offset the difference shall be recognized as the current profit or loss; In addition to the above
circumstances the deferred income tax assets related to the enterprise merger are recognized and included in the
current profits and losses.Through multi-transaction and step-by-step business combination under different control according to the
Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for
Business Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business
Enterprises No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 7 (2) of
Note Ⅲ) it is determined whether the multiple transactions belong to the "package deal". In the case of a
"package deal" the accounting treatment shall be performed with reference to the description in the preceding
paragraphs of this section and Note Ⅲ 15 "Long-term Equity Investments"; If the transaction is not a "package
deal" the accounting treatment shall be distinguished between the individual financial statements and the
consolidated financial statements:
In the individual financial statements the sum of the book value of the equity investment held by the
Purchaser prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the
150Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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).
7. Criteria for the Judgment of Control and Methods for the Preparation of Consolidated Financial
Statements.
(1) Criteria for the Judgment of Control
The scope of consolidation of the consolidated financial statements is determined on a control basis.Control means that the Company has the authority over the Investee enjoys a variable return by participating in
the relevant activities of the Investee and has the ability to use its authority over the Investee to influence the
amount of such return. The scope of the merger includes the Company and all its subsidiaries. Subsidiary refers
to the main body controlled by the Company.The Company will re-evaluate the above control definitions once the relevant facts and circumstances
change which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production
and operation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be
included in the scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of
151Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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
152Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
difference between the shares of the net assets of the original subsidiary that shall be continuously calculated
from the purchase date according to the original shareholding proportion shall be included in the investment
income of the current period of loss of control. Other comprehensive income related to the equity investment of
the original subsidiary in the event of loss of control the accounting treatment is performed on the same basis
as the direct disposal of the relevant assets or liabilities by the Purchased (i.e. converted to current investment
income except for changes resulting from the re-measurement of the net liabilities or net assets of the Defined
Benefit Plan in the original subsidiary). Thereafter the residual equity shall be subsequently measured in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.2-Long-term
Equity Investment or Accounting Standards for Business Enterprises No.22-Recognition and Measurement of
Financial Instruments as detailed in Note Ⅲ 15-Long-term Equity Investment or Note Ⅲ 11-Financial
Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses control through
multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equity
investment in subsidiaries until it loses control belong to a package deal or not. The terms conditions and
economic impact of the transactions for the disposal of equity investments in subsidiaries are in accordance with
one or more of the following circumstances and generally indicate that multiple transactions should be
accounted for as a package deal: * These transactions were entered into simultaneously or taking into account
each other's influence; * Only when these transactions are taken together can a complete business result be
achieved; * The occurrence of one transaction depends on the occurrence of at least one other transaction; * It
is not economical to consider a transaction alone but it is economical to consider it in conjunction with other
transactions. For transactions that are not part of the package deal each transaction shall be accounted for in
accordance with the principles applicable to the "partial disposal of long-term equity investments in subsidiaries
without loss of control" (as detailed in 15 of Note Ⅲ) and the "loss of control over existing subsidiaries as a
result of the disposal of part of the equity investments or other reasons" (as detailed in the preceding paragraph)
as appropriate. If the transactions involving the disposal of equity investments in subsidiaries until the loss of
control belong to a package deal the transactions shall be accounted for as a transaction involving the disposal
of subsidiaries and the loss of control; However the difference between each disposal price and the share of the
subsidiary's net assets corresponding to the disposal investment prior to the loss of control is recognized in the
consolidated financial statements as other consolidated gains and transferred to the profit or loss for the current
153Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
period of loss of control in the event of loss of control.
8. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The
Company divides the joint venture arrangement into joint operation and joint venture in accordance with the
rights and obligations it enjoys in the joint venture arrangement. A joint operation is a joint arrangement
whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the
liabilities relating to the arrangement. A joint venture is a type of joint arrangement whereby the parties that
have joint control of the arrangement have rights to the net assets of the joint venture.The Company's investment in the joint venture is accounted for using the equity method and shall be
treated in accordance with the accounting policy described in Note Ⅲ 15 "Long-term Equity Investment
Accounted by the Equity Method".The Company as a joint venture party recognizes the assets and liabilities held and assumed by the
Company separately and recognizes the assets and liabilities jointly held and assumed by the Company
according to the shares of the Company; recognizes the revenue generated from the sale of the share of joint
operating output enjoyed by the Company; recognizes revenue generated from the sale of output from joint
operations on the basis of the Company's share; confirms the expenses incurred by the Company individually
and the expenses incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute business the
same below) or purchases assets from the joint venture the Company recognizes only the portion of the profits
and losses attributable to the other participants in the joint venture that arises from the transaction prior to the
sale of such assets to a third party. Where such assets are impaired in accordance with the provisions of
Accounting Standards for Business Enterprises No.8-Impairment of Assets the Company shall fully recognize
such losses in the case where the assets are cast or sold by the Company to joint operations; For the assets
purchased by the Company from the joint operation the Company recognizes the losses according to the shares
it assumes.
9. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand deposits that can be readily withdrawn
on demand. Cash equivalents are investments held by the Company with a short term (usually maturing within
154Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
three months from the date of purchase) high liquidity readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
10. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation the foreign currency transactions occurring in the Company shall be
converted into the bookkeeping functional currency amount at the spot exchange rate on the trading day but the
foreign currency exchange business or transactions involving foreign currency exchange occurring in the
Company shall be converted into the bookkeeping functional currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-monetary item
On the balance sheet date the foreign currency monetary items are converted at the spot exchange rate on
the balance sheet date and the exchange difference arising therefrom shall be: * The exchange difference
arising from the special foreign currency borrowings related to the acquisition and construction of assets
eligible for capitalization shall be handled in accordance with the principle of capitalization of borrowing costs;
* The exchange difference of the hedging instruments used for effective hedging of the net investment in
overseas operations (the difference is included in other comprehensive income and is not recognized as current
profit or loss until the net investment is disposed of); * Except for the amortized cost the exchange
differences arising from the changes in the book balance of the available-for-sale monetary items in foreign
currencies shall be included in the other comprehensive income and shall be included in the profits and losses
of the current period.Where the preparation of the consolidated financial statements involves overseas operations if there are
foreign currency monetary items constituting net investment in overseas operations the exchange differences
arising from exchange rate changes shall be included in other comprehensive income; When disposing of
overseas operations the profits and losses shall be transferred to the current disposal period.Non-monetary items in foreign currencies measured at historical cost shall still be measured at the
bookkeeping amount in functional currency translated at the spot exchange rate on the transaction date. For
non-monetary items in foreign currencies measured at fair value the spot exchange rate at the date of fair value
determination shall be adopted for conversion. 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
155Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
the change in exchange rate) and shall be recorded into the profits and losses of the current period or
recognized as other comprehensive income.
(3) Translation method for financial statements in foreign currencies
Where the preparation of the consolidated financial statements involves overseas operations if there are
foreign currency monetary items constituting net investment in overseas operations the exchange differences
arising from exchange rate changes shall be as "foreign currency report conversion difference" and be
confirmed as other comprehensive income; When disposing of overseas operations the profits and losses shall
be transferred to the current disposal period.The foreign currency financial statements of overseas operations shall be converted into RMB statements
in the following ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate
on the balance sheet date; Except for "undistributed profits" other items of shareholders' equity shall be
converted at the spot exchange rate at the time of occurrence. The income and expense items in the profit
statement shall be converted at the average exchange rate of the current period on the date of transaction. The
undistributed profit at the beginning of the period shall be the undistributed profit at the end of the period
converted from the previous year; The undistributed profits at the end of the year shall be calculated and listed
according to the converted profits distribution items; The difference between the converted asset items and the
total amount of the liability items and shareholders' equity items shall be recognized as other comprehensive
income as the translation difference in the foreign currency statements. In case of disposal of overseas
operations and loss of control the balance in translation of the foreign currency statements related to the
overseas operations as shown below in the shareholders' equity items in the balance sheet shall be transferred to
the profits and losses of the disposal period in whole or in proportion to the disposal of the overseas operations.Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average
exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate
changes on cash shall be presented separately in the statement of cash flows as a 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
156Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
items of shareholders' equity in the balance sheet are shown below the balance in translation of the foreign
currency statement attributable to the owner's equity of the parent company related to the overseas operation
shall be transferred to the profits and losses of the current disposal period.In the event that the proportion of overseas business interests is reduced due to the disposal of part of the
equity investment or for other reasons but the control over overseas business operations is not lost the balance
in the translation of the foreign currency statements related to the disposal of part of overseas business
operations shall be attributed to minority shareholders' interests and shall not be transferred to the profits and
losses of the current period. When disposing of part of the equity of an overseas operation as an associated
enterprise or a joint venture the balance of the translation of the foreign currency statements related to the
overseas operation shall be transferred into the profits and losses of the current disposal period in the proportion
of the overseas operation disposed of.
11. Financial Instruments
Financial instruments are the contracts that form the financial assets of one entity and at the same time
form the financial liabilities or equity instruments of other entities.
(1) Classification confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow characteristics
of financial assets the Company divides financial assets into: Financial assets measured at amortized cost.Financial assets measured at fair value with changes included in other comprehensive income. Financial assets
that are measured at fair value and whose movements are included in the current profits and losses.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value
and whose changes are included in current profits and losses relevant transaction costs are directly included in
current profits and losses. For other types of financial assets relevant transaction costs are included in the initial
recognition amount. Accounts receivable or notes receivable arising from the sale of products or the provision
of labor services that do not contain or take into account significant financing components shall be initially
recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.* Financial assets measured at amortized cost
The Group measures financial assets at fair value through other comprehensive income if both of the
157Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
following conditions are met: the financial asset is held within a business model with the objective of both
holding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. Interest income of such financial assets is recognized based on effective interest method. The
Company measures these financial assets at fair value and their changes are included in other comprehensive
income but impairment loss or gain exchange gain or loss and interest income calculated according to the
effective interest rate method are included into the current profit and loss.* Financial assets measured at fair value with changes included in other comprehensive income
The Group measures financial assets at fair value through other comprehensive income if both of the
following conditions are met: the financial asset is held within a business model with the objective of both
holding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. Interest income of such financial assets is recognised based on effective interest method. The
Company measures these financial assets at fair value and their changes are included in other comprehensive
income but impairment loss or gain exchange gain or loss and interest income calculated according to the
effective interest rate method are included into the current profit and loss.In addition the Company designates some non-tradable equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company shall record the
relevant dividend income of such financial assets into the current profits and losses and the change of fair value
into other comprehensive income. When the financial asset is derecognized the accumulated gains or losses
previously included in other comprehensive income will be transferred from other comprehensive income to
retained income and will not be included in current profits and losses.* Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and 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
158Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
the Company adopts fair value for subsequent measurement and the changes in fair value are included into the
current profit and loss.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair
value and whose changes are included in current profits and losses and other financial liabilities. For the
financial liabilities measured at fair value with the changes included into the current profits and losses the
relevant transaction costs are directly included into the current profits and losses and the relevant transaction
costs of other financial liabilities are included in the initial recognition amount.* Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value with changes included in current profits and losses which
include transactional financial liabilities (including derivatives belonging to financial liabilities) and financial
liabilities designated to be measured at fair value with changes included in current profits and losses at initial
recognition.Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to their fair values. Except for those related to hedge accounting changes in fair values are
included in current profits and losses.Financial liabilities designated to be measured at fair value with changes included in current profits and
losses. Changes in the fair value of this liability caused by changes in the Company's own credit risk are
included in other comprehensive income. When the liability is derecognized the accumulated change in fair
value caused by changes in its own credit risk included in other comprehensive income is transferred to retained
earnings. Changes in fair value are accounted into current profits and losses. If the above-mentioned treatment
of the impact of changes in the credit risk of these financial liabilities will cause or expand accounting mismatch
in profits and losses the Company will include all profits or losses of the financial liabilities (including the
impact amount of changes in the credit risk of the enterprise itself) into the current profits and losses.* 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
159Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
subsequently measured at amortized cost. Gains or losses arising from termination of recognition or
amortization are included in current profits and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: * The termination of
the contractual right to receive cash flow from the financial asset. * The financial asset has been transferred
and almost all risks and rewards related to the ownership of the financial asset have been transferred to the
transferee. * The financial asset has been transferred. Although the enterprise has neither transferred nor
retained almost all risks and rewards in the ownership of the financial asset it has given up its control over the
financial asset.If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the
financial assets and does not give up the control over the financial assets the relevant financial assets shall be
recognized according to the extent of continuous involvement in the transferred financial assets and the
relevant liabilities shall be recognized accordingly. The degree of continuous involvement in the transferred
financial assets refers to the risk level faced by the enterprise due to the change in the value of the financial
assets.If the overall transfer of financial assets meets the conditions for termination of recognition the difference
between the book value of the transferred financial assets and the sum of the consideration received due to the
transfer and the accumulated amount of changes in fair value originally included in other comprehensive
income shall be included into the current profits and losses.If the partial transfer of financial assets meets the conditions for termination of recognition the book value
of the transferred financial assets shall be apportioned according to its relative fair value between the
derecognized part and the non-derecognized part and the difference between the sum of the consideration
received due to the transfer and the accumulated change in fair value originally included in other comprehensive
income that shall be apportioned to the derecognized part and the allocated aforesaid book amount shall be
included into the current 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
160Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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
161Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
active market refers to the price easily obtained from exchanges brokers industry associations pricing service
agencies etc. on a regular basis and represents the price of market transactions actually occurred in fair trading.If there is no active market for financial instruments the Company uses evaluation techniques to determine their
fair values. Evaluation techniques include reference to prices used in recent market transactions by parties
familiar with the situation and willing to trade reference to current fair values of other financial instruments that
are substantially the same discounting cash flow technique option pricing model etc. In valuation the
Company adopts valuation techniques that are applicable under current circumstances and are supported by
sufficient available data and other information selects input values that are consistent with the characteristics of
assets or liabilities considered by market participants in transactions related to assets or liabilities and gives
priority to the use of relevant observable input values as much as possible. If the relevant observable input value
cannot be obtained or it is not impracticable to obtain it the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets
after deducting all liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity
instruments by the Company are treated as changes in equity and transaction costs related to equity transactions
are deducted from equity. The Company does not recognize changes in the fair value of equity instruments.Dividends (including "interest" generated by instruments classified as equity instruments) distributed by
the Company's equity instruments during their existence shall be treated as profit distribution.
12. Impairment of Financial Assets
The financial assets of the Company that need to confirm the impairment loss are financial assets measured
at amortized cost and debt instrument investment measured at fair value with changes included in other
comprehensive income mainly including notes receivable accounts receivable other receivables debt
investment other debt investment long-term receivables etc. In addition for some financial guarantee
contracts impairment reserves and credit 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
162Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
(general method or simplified method).Credit loss refers to the difference between all contractual cash flows receivable according to the contract
and all cash flows expected to be collected by the Company discounted according to the original actual interest
rate i.e. the present value of all cash shortages. Among them for the financial assets that have been purchased
or incurred credit impairment the Company discounts them according to the actual interest rate adjusted by
credit.The general method of measuring expected credit loss refers to the Company's assessment of whether the
credit risk of financial assets has increased significantly since the initial recognition on each balance sheet date.If the credit risk has increased significantly since the initial recognition the Company will measure the loss
reserve by an amount equivalent to the expected credit loss during the entire period. If the credit risk has not
increased significantly since the initial recognition the Company will measure the loss reserve according to the
amount equivalent to the expected credit loss in the next 12 months. In assessing the expected credit loss the
Company takes into account all reasonable and evidence-based information including forward-looking
information.For financial instruments with low credit risk on the balance sheet date the Company measures the loss
reserve based on the expected credit loss amount within the next 12 months or the entire duration according to
whether the credit risk has increased significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognition
If the default probability of a certain financial asset in the expected duration determined at the balance
sheet date is significantly higher than the default probability in the expected duration determined at the time of
initial recognition it indicates that the credit risk of the financial asset is significantly increased. Except for
special circumstances the Company uses the change of default risk in the next 12 months as a reasonable
estimate of the change of default risk in the entire duration to determine whether the credit risk has increased
significantly since the initial recognition.Generally if the overdue period is more than 90 days the Company will consider that the credit risk of the
financial instrument has increased significantly unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.The Company will consider the following factors when evaluating whether the credit risk has increased
163Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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;
164Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
4) The debtor is likely to go bankrupt or undergo other financial restructuring;
5) The active market of the financial assets disappears due to the financial difficulties of the issuer or the
debtor;
6) Purchase or generate a financial asset at a substantial discount which reflects the fact that credit losses
have occurred.Credit impairment of financial assets may be caused by the combined action of multiple events but may
not be caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks such as:
Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or
arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment
obligation.In addition to the financial assets with individual credit risk assessment the Company divides the financial
assets into different groups based on the common risk characteristics. The common credit risk characteristics
adopted by the Company include: Credit risk shall be assessed on the basis of the aging portfolio the
receivables portfolio between the final controlling party and its subordinate units the public maintenance fund
and house selling fund portfolio deposited in the housing provident fund management center the deposit/margin
portfolio and the petty cash ledger portfolio formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period the Company calculates the estimated credit losses of various financial assets. If
the estimated credit losses are greater than the book amount of its current impairment reserve the difference is
recognized as impairment loss. If it is less than the carrying amount of the current impairment reserve the
difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
* Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount
equivalent to the entire duration. Based on the credit risk characteristics of bills receivable they are divided into
165Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
Commercial acceptance bill According to the acceptor's credit risk classification it should be the same as the"receivable" portfolio classification.As for the notes receivables’ classified as portfolio the Company referred to the historical credit loss
experience combined with current situation and forecast for the future economic condition calculating the
expected credit loss. Through risk exposure at default and lifetime expected credit loss.* Accounts receivable and other receivables
For receivables that do not contain significant financing components the Company measures the loss
reserve according to the expected credit loss amount equivalent to the entire duration.For receivables that contain significant financing components the Company measures the loss reserve
based on whether the credit risk has increased significantly since the initial recognition using the amount of
expected credit loss within the next 12 months or the entire duration.According to whether the credit risk of other receivables has increased significantly since the initial
recognition the Company measures impairment loss with an amount equivalent to the expected credit loss
within the next 12 months or the entire duration.In addition to the accounts receivable and other receivables that individually assess credit risk they are
divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
As for the receivables classified as portfolio the Company referred to the historical credit loss experience
combined with current situation and forecast for the future economic condition calculating the expected credit
loss. Through cross reference table between the aging of receivables and lifetime expected credit loss. The
aging of receivables is calculated on the date of recognition.The portfolio of other receivable is recognized as follows:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
Portfolio 2 Deposit/margin portfolio
166Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Portfolio 3 The portfolio of reserve fund ledger formed by the Company's staff loan
As for the other receivables classified as portfolio the Company referred to the historical credit loss
experience combined with current situation and forecast for the future economic condition calculating the
expected credit loss. Through risk exposure at default and lifetime expected credit loss in the coming 12 months.For the other receivables classified as aging is calculated on the date of recognition.
13. Inventory
(1) Classification of inventory
Inventories mainly include raw materials work in progress finished goods in transit materials inventory
goods reserve tanker storage commissioned processing and manufacturing consignment etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs processing costs and
other expenditures. The actual cost of inventories upon delivery is calculated using the weighted average
method.
(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve
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
167Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
inventory value have disappeared and the situation results in the fact that the net realizable value of the
inventories higher than the book value the amount of the provision for inventory devaluation that has been
accrued shall be reversed and included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are received; packaging
materials are amortized by one-off amortization method when they are received.
14. Non-current assets or disposal groups held for sale
(1) Recognition standards and accounting method treatment for Held-for-sale assets and disposal group
A non-current asset or disposal group is classified as held for sale when its carrying amount will be
recovered principally through a sale transaction rather than through continuous use. The following conditions
need to be simultaneously met to be classified as held for sale: a non-current asset or to-be-disposed portfolio
can be sold immediately under the current conditions based on the practice of selling such asset or to-be-
disposed portfolio in similar transactions; the Company has already decided on the sale plan and obtained
confirmed purchase commitment; the sale is scheduled to be completed within one year. Among them a
Disposal Portfolio refers to a group of assets that will be disposed of as a whole through sale or other
approaches in a transaction and the liabilities directly associated with these assets transferred along with the
assets in transaction. If the portfolio of assets or group of portfolios of assets is allocated goodwill acquired in
business merger in accordance with Accounting Standards for Business Enterprises No. 8 - Asset Impairment
the Disposal Portfolio shall include the goodwill allocated to it.In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated
as held-for-sale category is higher than the net amount of fair value less sales expenses when the non-current
asset or to-be-disposed portfolio is initially measured or measured on the balance sheet date the book value
shall be to the net amount of fair value minus sales expenses and the written-down amount shall be recognized
as asset impairment loss and included in current period profit or loss. The provision for impairment loss of the
held-for-sale asset shall be accrued. For a Disposal Portfolio the confirmed impairment loss shall deduct the
book value of the goodwill in the Disposal Portfolio then deduct the book value of the non-current assets
determined by the measurement on a pro-rata basis in accordance with the applicable Accounting Standards for
168Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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 theclassification 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.
(2) Standards for Determining and Methods for the Presentation of Discontinued Operations.
A component of an entity that either has been disposed of or is classified as held for sale and:
a) represents a separate major line of business or geographical area of operations
b) is part of a single coordinated plan to dispose of a separate major line of business or geographical area
of operations or
c) is a subsidiary acquired exclusively with a view to resale.Net profit from continuing operation and Net profit from discontinued Operation are added under the Item
Net Profit of the Profit and Loss Statement a single amount in the statement of comprehensive income
169Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
comprising the total of:i) the post-tax profit or loss of continuing operation and discontinued operations. Profit
and Loss from the discontinued operation shall listed as Discontinued Operation Profit and Loss which
comprises of the entire reporting period not only recognized as the reporting period after the termination of the
operation.
15. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the
Company has control joint control or significant influence on the invested entity. The long-term equity
investment of the Company that does not have control joint control or significant impact on the investee shall
be accounted as a financial asset measured at fair value with its changes included into the current profits and
losses. Among them if it is non-transactional the Company may choose to designate it as a financial asset
measured at fair value and its changes are included in the accounting of other comprehensive income at the timeof initial recognition. For details of its accounting policies please refer to Note Ⅲ 11 “Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement in
accordance with relevant agreements and relevant activities of the arrangement can only be decided based on
the consensus of all parties sharing the control rights before making a decision. Significant Influence refers to
power of the Company to participate in the decision-making of the financial and operating policies of the
investee but the Company cannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control the
apportioned share of the book value in the final controller's consolidated financial statements on the
combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-
term equity investment. The capital reserve shall be adjusted subject to the difference between the initial
investment cost of the long-term equity investment and the cash paid the non-cash assets transferred and the
book value of the debts assumed; if the capital reserve is insufficient for offsetting the retained earnings shall
be adjusted. Where the equity securities are issued as merger consideration the apportioned share of the book
value in the final controller's consolidated financial statements on the combination date in accordance with the
shareholders' equity shall be the initial investment cost of the long-term equity investment and the total par
value of the issued shares is taken as the share capital. The capital reserve shall be adjusted subject to the
170Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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 in the original holder and the new investment cost.The original shareholding that measured using equity method the relevant other comprehensive income does
temporarily not conduct accounting treatment.Intermediary expenses such as for auditing legal services assessment and other related expenses incurred
by a combining party or a purchaser for business combination shall be recognized in current period profit or loss
when incurred.The equity investments other than formed by business combination shall be initially measured at cost. The
171Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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.* Long-term equity investment based on Cost Method
When accounting with Cost Method long-term equity investment is priced at the initial investment cost
and the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for
the actual payment at the time of obtaining investment or the cash dividends or profits included in the
consideration but not yet issued the current investment income shall be recognized according to the cash
dividends or profits declared by the investee.* Long-term equity investment accounted for by Equity Method
When accounting with Equity Method if the initial investment cost of a long-term equity investment is
greater than the fair value share of the identifiable net assets of the investee when investing and the initial
investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less
than the fair value share of the identifiable net assets of the investee when investing the difference shall be
included in the current profit and loss and the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method the investment income and other comprehensive income are
172Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
recognized separately according to the shares of the net profit or loss and other comprehensive income that
should be enjoyed or shared and the book value of the long-term equity investment should be adjusted at the
same time. The book value of long-term equity investment is reduced accordingly by calculating the share that
should be enjoyed according to the profit or cash dividend declared by the investee. The book value of long-
term equity investment shall be adjusted and included in the capital reserve for other changes in the owner's
rights and interests of the invested entity other than the net profit and loss other comprehensive income and
profit distribution. When confirming the share of the net profit and loss of the investee the net profit of the
investee shall be adjusted and confirmed on the basis of the fair value of the identifiable assets of the investee at
the time of investment. If the accounting policies and periods adopted by the invested entity are inconsistent
with the Company the financial statements of the invested entity shall be adjusted in accordance with the
accounting policies and periods of the Company and the investment income and other comprehensive income
shall be confirmed accordingly. For the transactions between the Company and the associates and joint ventures
the assets invested or sold do not constitute a business and the unrealized gains and losses from internal
transactions are offset against the portion of the Company that is attributable to the proportion of the shares on
this basis. investment profit and loss should be confirmed. However the unrealized internal transaction losses
incurred by the Company and the investee are not included in the impairment losses of the transferred assets.Where the assets invested by the Company into a joint venture or an associates constitute a business if the
investor obtains long-term equity investment but does not control the fair value of the invested business shall
be deemed as the initial investment cost of the new long-term equity investment and the difference between the
initial investment cost and the book value of the invested business is fully recognized in the current profits and
losses. If the assets sold by the Company to a joint venture or an associate that constitute a business the
difference between the consideration value obtained and the book value of the business shall be fully recognized
in the profits and losses of the current period.When confirming the net loss that incurred by the investee should be shared the book value of the long-
term equity investment and other long-term equity that substantially constitutes the net investment of the
investee are reduced to zero. In addition if the Company has an obligation to bear additional losses to the
investee the estimated liabilities shall be recognized according to the estimated obligations and included in the
current investment losses. If the investee achieves net profit in the following period the Company shall resume
recognizing the share of income after making up for the unrecognized share of loss.
173Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
For the long-term equity investment in the joint ventures and associates held by the Company for the first
time before the implementation of the new accounting standards if there is a debit balance of equity
investments related to the investment the current profits and losses shall be accounted for by the straight-line
amortization of the original remaining period.
(3) Acquisition of Minority Equity
In the preparation of the consolidated financial statements if the difference between the long-term equity
investment added by purchasing minority shares and the net assets share that should be continuously calculated
by the subsidiary company from the purchase date (or the consolidation date) is calculated according to the
proportion of newly added shares the retained earnings shall be adjusted; and if the capital reserve is
insufficient to offset the retained earnings shall be adjusted.
(4) Disposal of long-term equity investment
In the consolidated financial statements the parent company partially of disposes of the long-term equity
investment of the subsidiary without losing control the difference of the corresponding net assets in the
subsidiary between the disposal price and the disposal of the long-term equity investment is included in theshareholders' equity. it shall be treated in accordance with the relevant accounting policies described in “Noteson the preparation of consolidated financial statements” in Note Ⅲ.7.For the disposal of long-term equity investment in other cases the difference between the book value of
the disposed equity and the actual acquisition price shall be included in the current profits and losses.If the long-term equity investment is accounted for by equity method the remaining equity after disposal is
still accounted for by equity method when disposing the other comprehensive income which were originally
included in shareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities
directly disposed of by the investee. The owner's equity recognized as a result of changes in the owner's equity
of the investee other than net profit or loss other comprehensive income and profit distribution it should be
carried forward to the current profit and loss
For the long-term equity investment accounted by Cost Method the remaining equity is still accounted by
Cost Method after disposal other comprehensive income that recognized by equity method accounting or
financial instrument recognition and measurement criteria accounting before obtaining control over the investee
shall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee and shall
174Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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 recognized in the current profit or loss. The other
comprehensive income recognized in the original equity investment by the equity method is accounted for on
the same basis as the investee's direct disposal of related assets or liabilities when the equity method is
terminated Owner's equity recognized as a result of changes in other owners' equity other than net profit or loss
other comprehensive income and profit distribution of the investee should be transferred to current investment
175Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
income when terminating the equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple
transactions until the loss of control. If the above-mentioned transactions are part of a package transaction the
transactions are treated as a transaction dealing with the equity investment of the subsidiary and losing control.The difference between the book value of each long-term equity investment corresponding to the disposal price
and the disposal of the equity before loss of control is first recognized as other comprehensive income and
when the control is lost it is transferred to the current profit and loss of loss of control.
16. Investment Property
Investment Property refers to property held for the purpose of earning rent or capital appreciation or both
including land use rights that have been leased land use rights that are held and prepared for transfer after
appreciation and buildings that have been rented. Investment property is initially measured at cost. The
expenses related to investment property if the economic benefits related to this asset are highly probable to
flow into the company and the cost can be measured reliably then the expense will account for as the cost of
investment property. Other expenses are accounted for in profit and loss when incurred.The Company adopts the cost model to conduct subsequent measurement of investment property and
depreciation or amortization according to the policy consistent with the building or land use rights.For details of the impairment test method and impairment provision method of property please refer to
Note Ⅲ. 23 “Long-Term Asset Impairment”.When the self-use property or inventory is converted into investment property or investment property is
converted into self-use property the book value before conversion is used as the recorded value after
conversion.When the use of investment property is changed to self-use the investment property is converted into fixed
assets or intangible assets from the date of change. When the use of self-use property changes to earn rent or
capital appreciation the fixed assets or intangible assets are converted into investment property from the date of
change. In the case of investment property measured by the cost model when the conversion occurs the book
value before conversion is used as the entry value after conversion; if it is converted into investment property
measured by the fair value model the fair value of the conversion date is used as the entry value after
conversion.
176Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
When an investment real estate is disposed of or permanently withdrawn from use and is not expected to
obtain economic benefits from its disposal the confirmation of the investment real estate shall be terminated.Disposal income from the sale transfer retirement or damage of investment properties is charged to the current
profit and loss after deducting its book value and related taxes and fees.
17. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods providing labor services
renting or operating management and having a service life of more than one fiscal year. Fixed assets are
recognized only when the economic benefits associated with them are likely to flow into the Company and their
costs can be reliably measured. Fixed assets are initially measured at cost and taking into account the impact of
projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following
the scheduled availability. The depreciation period estimated net residual value rate and annual depreciation
rate of each category of fixed assets are as follows:
Category Depreciation Method Depreciation Net salvage rate Annual depreciationperiod (Year) (%) rate (%)
Buildings straight-linedepreciation 8-50 5 1.90— 11.88
Machinery straight-line
equipment depreciation 5-28 4、5 3.39—19.20
Transport facility straight-linedepreciation 5-10 4、5 9.50—19.20
Electronic equipment straight-linedepreciation 3-10 4、5 9.50—32.00
Office equipment straight-linedepreciation 3-10 4、5 9.50—32.00
Other equipment straight-linedepreciation 5-28 4、5 3.39—19.20
The estimated net residual value refers to the expected state after the estimated useful life of the fixed
assets has expired and is at the end of its useful life. The amount currently obtained by the Company from the
disposal of the assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets please refer to
177Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Note Ⅲ. 23 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of
an asset and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the
leased asset at the expiration of the lease term the depreciation shall be calculated within the useful life of the
leased asset; If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease
term depreciation shall be calculated within a relatively short period of the lease term and the service life of the
leased assets.
(5) Others
The subsequent expenses related to fixed assets if the economic benefits related to the fixed assets are
likely to flow in and their costs can be reliably measured are included in the cost of fixed assets and the book
value of the replaced part should be terminated. The subsequent expenditures other than mentioned as above are
recognized in profit or loss in the period in which they are incurred.The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic
benefits by using or disposal. The difference between the disposal income from the sale transfer retirement or
damage of the fixed assets less the carrying amount and related taxes is recognized in profit or loss for the
current period.The Company reviews the useful life estimated net residual value and depreciation method of fixed assets
at least at the end of the year and changes as an accounting estimate if changes occur.
18. Construction in progress
The cost of construction in progress is determined based on actual project expenditure including various
project expenditures incurred during the construction period capitalized borrowing costs before the project
reaches the expected usable status and other related expenses. Construction in progress is carried forward to
fixed assets when it is ready for its intended use.For details of the impairment test method and impairment provision method for construction in progress
please refer to Note Ⅲ. 23 “Long-Term Asset Impairment”.
19. Borrowing Costs
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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 begun when asset
expenditures have occurred borrowing costs have occurred and the acquisition construction or production
activities necessary to bring the assets to the intended usable or saleable state have begun. And capitalization is
stopped when the assets under construction or production that meet the capitalization conditions are ready for
their intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period
in which they are incurred.The interest expenses actually incurred in the current period of special borrowings shall be capitalized after
subtracting the interest income from the unused borrowing funds deposited into the bank or the investment
income obtained from the temporary investment. For the general borrowings according to the accumulated
asset expenditures exceed the special borrowings. The capitalization amount is determined by multiplying the
weighted average of which accumulated asset expenditure exceeds the asset expenditure of the special
borrowing portion by the capitalization rate of the general borrowings used. The capitalization rate is
determined based on the weighted average interest rate of general borrowings.During the capitalization period the exchange differences of foreign currency special borrowings are all
capitalized; the exchange differences of foreign currency general borrowings are included in the current profit
and loss.Assets eligible for capitalization refer to assets such as fixed assets investment property and inventories
that require a substantial period of acquisition construction or production activities to achieve the intended use
or sale status.If the assets eligible for capitalization are interrupted abnormally during the acquisition construction or
production process and the interruption period lasts for more than 3 months the capitalization of the borrowing
costs shall be suspended until the acquisition construction or production of the assets resumes.
20. Right-of-use assets
Right-of-use assets of the Group mainly consist of buildings power generation and transmission
equipment plant machinery and equipment motor vehicles furniture and fixtures and others.
(1) Initial accountings
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At the commencement date of the lease the Group recognizes the right to use the leased assets during the
lease term as a right-of-use asset including: the initial measurement amount of the lease liability; the amount of
lease payment paid on or before the beginning of the lease term the amount of lease incentive already enjoyed
shall be deducted if there is a lease incentive; initial direct expenses incurred by the lessee; the costs that the
lessee is expected to incur in order to dismantle and remove the leased asset restore the leased asset to the site
or restore the leased asset to the state agreed upon in the lease terms. The right-of-use assets are depreciated on
a straight-line basis subsequently by the Group. If the Group is reasonably certain that the ownership of the
underlying asset will be transferred to the Group at the end of the lease term the Group depreciates the asset
from the commencement date to the end of the useful life of the asset. Otherwise the Group depreciates the
assets from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease
term.The company recognizes and measures the above costs under Item 4 in accordance with the
Accounting Standards for Enterprises No.13–Contingencies.
(2) Subsequent accounting
The Company accursed the right-of-use assets according to the Accounting Standards for Enterprises
NO.4-Fixed Assets. Commencement from the date of lease the Company shall accrue the right-of-use assets.Generally the right-of-use assets are accrued at the start of the lease date the expenses of depreciation accrued
shall include into relevant asset cost or profit and loss in the current period based on the purpose of right-of-use
assets. While recognizing the method of right-of-use assets the Company shall make decisions on the economic
benefit of forecast consumption mode related to the right-of-use assets accrues the deprecation by straight-line
method. When the Company recognize the depreciation period of right-of-use assets maturity of lease period
can be determined in a reasonable and well-grounded manner on the acquisition of the right-of-use assets
accursed the deprecation in its remaining service life. If the right-of-use lease assets could not be determined
reasonably while the service life is mature depreciation is applied with the short period of time between the
lease term and the remaining useful life of the lease asset.If there are impaired right-of-use assets the Company shall accrue the subsequent deprecation based on the
book value of right-of-use assets after deducting the loss of impairment.The Company determined not to recognized the right-of-use assets and lease liabilities on the short-term
180Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
lease (lease term not exceeding 12 months) and recognizes the relevant lease payment during the respective
lease term in the current profit and loss or cost of assets relevant in straight line method. Impairment test
method and the provision method for diminution in value of right-of-use assets are detailed in Note III 23
“Long-Term Asset Impairment”.
21. Intangible Assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by
the Company.Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the
cost of intangible assets if the relevant economic benefits are likely to flow to the Company and its costs can be
measured reliably. However the intangible assets acquired through business combination not involving
enterprises under common control should be measured at fair value separately as intangible assets when their
fair values can be reliably measured.The acquired land use rights are usually accounted for as intangible assets. The related land use rights and
building construction costs of self-developed and constructed buildings are accounted for as intangible assets
and fixed assets respectively. In the case of purchased houses and buildings the relevant price is distributed
between the land use rights and the buildings. If it is difficult to allocate them reasonably all of them are treated
as fixed assets.
(1) Basis for determining the service life the estimate thereof and amortization methods and the
procedures for reviewing their service life
When recognizing the service life of the intangible assets being sourced from any contractual right or
other statutory rights its service life shall not exceed the life of contractual rights or other statutory rights. As
for the intangible assets not specified either under the contract or legal regulations the company combined
various situations such as employing relevant professional persons to undergo the justification or make
comparison with the situation of the same industry and the historical experience of the Company determining
the future economic benefit service life which is brought by the intangible assets. If the efforts are made but
could not recognized reasonably that the intangible asset shall bring the economic benefit service life for the
Company then shall treat this as uncertain service life of the intangible asset.Since the intangible assets with limited useful life are available for use the original value minus the
181Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
estimated net residual value and the accumulated amount of impairment reserve shall be amortized by the
straight-line method during their expected service life. Intangible assets with uncertain service life shall not be
amortized.Among them the useful life and amortization method of intellectual property are as follows:
Item Amortization period (year) Amortization method
Trademark 20 Straight-line method
Software 3-10 Straight-line method
Land-use rights 50 Straight-line method
At the end of the period the useful life and amortization methods of intangible assets with limited useful
life are reviewed and if any change occurs it is treated as a change of accounting estimate. In addition the
useful life of intangible assets with uncertain service life is also reviewed. If there is evidence that the period for
which the intangible assets bring economic benefits to the enterprise is foreseeable the useful life of intangible
assets is estimated and amortized according to the amortization policy of intangible assets with limited useful
life
(2) Research and development expenditure
The company's expenditure for internal research and development project is divided into research phase
expenditure and development phase expenditure.Expenditures for the research phase shall be recognized in profit or loss when incurred.Expenditures for the development phase that meet the following conditions shall be recognized as
intangible assets and expenditures in the development stage that fail to meet the following conditions are
included in current profit and loss:
a. It is technically feasible to complete the intangible asset to enable it to be used or sold.b. The intent to complete the intangible asset and use or sell it;
c. The way in which intangible assets generate economic benefits including the ability to prove that the
products produced from the intangible assets having a market or the intangible assets having a market and the
intangible assets will be used internally which can prove its usefulness;
182Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
d. sufficient technical financial resources and other resources for supporting the development of the
intangible assets and the ability to use or sell the intangible assets.e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.If it is impossible to distinguish the expenditures between research phase and development phase all
research and development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method please refer to Note Ⅲ. 23
“Long-Term Asset Impairment”.
22. Long-term assets impairment
For fixed assets construction in progress intangible assets with limited useful life investment property
measured by cost model and non-current non-financial assets such as long-term equity investments in
subsidiaries joint ventures and associates the Company determines whether there is any indication of
impairment on the balance sheet date. If there is any indication of impairment the recoverable amount is
estimated and the impairment test is carried out. Goodwill intangible assets with uncertain service life and
intangible assets that not yet ready for use are tested for impairment annually regardless of whether there is any
indication of impairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book
value the impairment provision is made based on the difference and is included in the impairment loss. The
recoverable amount is the higher of the fair value of the asset less the disposal expense and the present value of
the estimated future cash flow of the asset. The fair value of assets is determined according to the sale
agreement price in a fair transaction. If there is no sales agreement but there is an active market for the asset the
fair value is determined according to the buyer's bid for the asset; if there is neither sales agreement nor active
market for assets the fair value of assets shall be estimated based on the best information available. Asset
disposal expenses include legal fee taxes transportation expenses and direct expenses incurred to make assets
saleable. The present value of the estimated future cash flow of an asset is determined by the appropriate
discount rate discounting and the estimated future cash flow generated by the asset during its continuous use
and final disposal. 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
183Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
determined by the asset group which the asset belongs to. An asset group is the smallest portfolio of assets that
can generate cash inflows independently.The book value of the goodwill listed separately in the financial statements is amortized into asset groups
or portfolios that are expected to benefit from the synergies of business combinations when impairment tests are
conducted. The test results show that the recoverable amount of the asset group or portfolio containing the
assessed goodwill is lower than its book value the corresponding impairment losses should be confirmed. The
amount of impairment loss is first deducted from the book value of the goodwill amortized to the asset group or
portfolio and then deducted proportionally from the book value of other assets according to the proportion of
the book value of assets other than goodwill in the asset group or portfolio.Once the above asset impairment loss is confirmed it will not be reversed to the part where the value is
restored in the future period.
23. Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting
period and subsequent periods with amortization period of more than one year. The company's long-term
deferred expenses mainly include lease of land use right and renovation costs of factory building. Long-term
deferred expenses are amortized on a straight-line basis over the estimated benefit period. If the long-term
amortized expense item cannot benefit the company in subsequent accounting periods the amortized value of
the item that has not yet been amortized will be transferred to the current profit or loss.
24. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration Post-
employment Benefits Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees’ remuneration mainly includes wages bonuses allowances and subsidies employee
welfare fees medical insurance premiums maternity insurance premiums work injury insurance premiums
housing fund labor union funds employee education funds and non-monetary benefits. The Company
recognizes the actual short-term employee's remuneration as a liability in the accounting period in which
employees provide services to the Company and recognizes them in profit or loss or related asset costs. Non-
monetary benefits are measured at fair value.Post-employment Benefits mainly include basic retirement security unemployment insurance and
184Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
annuities. The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit
Plan. If a Defined Contribution Plan is adopted the corresponding amount of the deposit shall be included in the
relevant asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a
liability based on a fixed fee paid to an independent fund and is included in the current profit and loss or related
asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulative benefits unit method
Specifically the Company will convert the welfare obligation arising from the Defined Benefit Plan into the
final value of the departure time according to the formula determined by the expected cumulative benefits unit
method; then it is attributed to the employee's in-service period and is included in the current profit and loss or
related asset cost.If the labor relationship with the employee is terminated before the employee's labor contract expires or if
the employee is encouraged to accept the reduction voluntarily when cannot withdrawing unilaterally the
dismissal benefits provided by the termination of the labor relationship plan or the reduction proposal and when
confirming the costs associated with the restructuring involving the payment of the dismissal benefits
whichever is earlier the Company will recognize the employee compensation liabilities arising from the
dismissal benefits and included in the current profit and loss. However if the dismissal benefits are not
expected to be fully paid within 12 months after the end of annual reporting period they shall be treated in
accordance with other long-term employee compensations.The internal retirement plan for employees shall be treated in the same way as the above-mentioned
dismissal benefits. The company will pay the internal retired staff the salary and the social insurance premiums
from the employee's lay-off to normal retirement and will include in the current profit and loss (dismissal
benefits) when the conditions of the estimated liabilities are met.If the other long-term employee benefits provided by the Company to the employees are in line with the
Defined Contribution Plan they shall be accounted for Defined Contribution Plan and otherwise accounted for
the Defined Benefit Plan.
25. Estimated Liabilities
When the obligations related to the contingencies meet the following conditions they are recognized as
contingent liabilities: (1) The obligation is the present obligation assumed by the Company; (2) The
performance of this obligation is likely to result in the outflow of economic benefits; (3) The amount of the
185Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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 is determined based on the direct expenses related to the reorganization subject to the
recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of
business sold the obligation related to the reorganization is confirmed only when the company promises to sell
part of the business (that is when the binding sale agreement is signed).
26. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined
based on an equity instrument in order to obtain services from employees or other parties. Share-based
Payments include equity-settled share payment and cash-settled share payment.* Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value
186Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
of the granting of employees' equity instruments at the grant date. If the fair value is vested in the completion of
the waiting period of service or the fulfillment of the required performance conditions during the waiting
period the amount of the fair value is calculated by the straight-line method into the relevant costs or expenses
based on the best estimate of the number of vesting equity instruments; Or If the vesting right is granted
immediately after the grant the calculation of the amount of the fair value is included in the relevant cost or
expense on the grant date and the capital reserve is increased accordingly.On each balance sheet date during the waiting period the Company makes the best estimate based on the
latest information on the changes in the number of employees with vesting rights and corrects the number of
equity instruments that are expected to be vested. The impact of the above estimates shall be included in the
current related costs or expenses and the capital reserve is adjusted accordingly.In the case of equity-settled share-based payments in exchange for other parties' services if the fair value
of other parties' services can be reliably measured the fair value of other services shall be measured at the fair
value on the date of acquisition; If the fair value of the other party's services cannot be measured reliably the
fair value shall be measured at the fair value of the equity instrument at the date the service is acquired and is
included in the relevant cost or expense which increases the shareholders' equity accordingly.* Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company
based on shares or other equity instruments. If the vesting right is available immediately after the grant the
relevant costs or expenses shall be included on the date of grant and the liabilities shall be increased
accordingly; if vesting right is available after the service is completed within the waiting period or met the
required performance conditions based on the best estimate of the vesting rights on each balance sheet date of
the waiting period according to the fair value of the liabilities assumed by the company the services obtained
in the current period are included in the cost or expense and the liabilities are increased accordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before
the settlement of the relevant liabilities and the changes shall be recorded in the profit and loss of the current
period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan if the modification increases the fair value of
187Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
the equity instruments granted the increase in the fair value of the equity instruments is recognized accordingly.The increase in the fair value of equity instruments refers to the difference between the fair value of the equity
instruments before and after the modification. If the modification reduces the total fair value of the share-based
payment or adopts other methods that are not conducive to the employee the service obtained shall continue to
be accounted for as if the change has never occurred unless the Company cancels some or all of equity
instruments.During the waiting period if the granted equity instrument is cancelled the Company will cancel the
granted equity instrument as an accelerated exercise and the amount to be recognized in the remaining waiting
period will be immediately included in the current profit and loss and the capital reserve will be recognized. If
the employee or other party can choose to meet the non-vesting conditions but fails to meet the waiting period
the Company will treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or
Actual Controllers
In respect of the share-based payment transaction between the company and the shareholders or actual
controllers of the company If one of the settlement enterprise and the service receiving enterprise is in the
company and the other is outside the company it shall be accounted for in the consolidated financial statements
of the company according to the following provisions:
* If the settlement enterprise settles with its own equity instrument the share-based payment transaction
shall be treated as equity-settled share-based payment; otherwise it shall be treated as a cash-settled share-based
payment.If the settlement enterprise is an investor of a serviced enterprise it shall be recognized as the long-term
equity investment of the serviced enterprise according to the fair value of the equity instrument at the grant date
or the fair value of the liability to be assumed and the capital reserve (other capital reserve) or liabilities shall
be recognized.* If the serviced enterprise has no settlement obligation or grants its own employees the equity
instruments the share payment transaction shall be treated as equity-settled share 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.
188Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
For the share-based payment incurred between companies within the group if the serviced enterprise and
settlement enterprise are not the same then the payment should be recognized and measured in their individual
financial statements they should be accounted for using the above principles.
27. Revenue
The term “revenue” refers to the gross inflow of economic benefits arising in the course of the ordinary
activities of an enterprise which may increase of the shareholder's equities and is irrelevant to the capital of the
shareholder. When the company signs a contract it evaluates the contract identifies the individual performance
obligations contained in the contract and determines whether the individual performance obligations are
performed within a certain period of time or at a certain point of time. When the company has fulfilled all the
performance obligations in the contract the revenue shall be recognized respectively according to the
transaction price apportioned to the performance obligations. A contract with a customer generally explicitly
states the goods or services that an entity promises to transfer to a customer. The transaction price is the amount
of consideration to which an entity expects to be entitled in exchange for transferring promised goods or
services to a customer excluding amounts collected on behalf of third parties.Generally the company recognizes the revenue from the sales of goods based on the transaction price
apportioned to the single performance obligation when the customer obtains the control right of the relevant
goods on the basis of comprehensively considering the following factors: the company has the right to receive
payment in respect of the goods or services currently that is the customer has the obligation to pay for the
goods currently; the company has transferred the legal ownership of the goods to the customer that is the
customer has the legal ownership of the goods; The Company has transferred the physical goods of the
commodity to the Customer or the Customer has obtained the qualification of physical goods right of the
commodity. The consideration obtained by the Company in respect of the transfer of the commodity is likely to
be recovered; Other indications that the customer has taken control of the commodity.For the performance obligations performed in a certain period of time such as the services provided the
company adopts the input method to determine the appropriate performance progress and recognizes the
revenue according to the performance progress in that period of time. On the balance sheet date the company
shall recognize the current income according to the total transaction price of the contract multiplied by the
progress of performance minus the accumulated recognized income. If one of the following conditions is
satisfied it is regarded as the performance obligation performed during a certain period of time: the Customer
189Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
obtains and consumes the economic benefits arising from the performance of the Company at the same time of
the performance of the Company; Customers can control the goods under construction during the performance
of the contract; The products produced by the Company during the performance of the Contract are of
irreplaceable use and the Company shall be entitled to receive payment for the accumulated part of the
completed performance so far during the whole term of the Contract. Otherwise the Company recognizes
revenue at the point when the Customer acquires control of the relevant goods or services.Where the contract contains two or more performance obligations an entity shall on the commencement
date of the contract allocate the transaction price to each performance obligation identified in the contract on a
relative standalone selling price basis. Except when an entity has observable evidence that the entire discount
relates to only one or more but not all performance obligations in a contract the entity shall allocate a discount
proportionately to all performance obligations in the contract. Stand-alone selling price refers to the price of the
goods or services sold by the Company to the customer separately. If the stand-alone selling price cannot be
directly observed the Company shall take into account all relevant information reasonably available and
estimate the stand-alone selling price by observable input values to the maximum extent.As for the sales with quality guarantee except for it guarantees the product on sale of service meets the
designated standards to the customer providing a single separate service this quality guaranteed composes the
single performance obligation. Otherwise the Company shall treat the accounting method on quality guarantee
obligations in accordance with the Enterprise Accounting Standards No13- Contingencies.If the contract comprised of significant financing elements the Company shall recognize the amount of
payables in cash to determine the trading price based on the assumption that the customer obtains the products
or service control rights. The difference between the price stipulated in the contract or agreement and its
contract consideration shall be amortized within the period of the contract or agreement. through the real
interest method. As a practical expedient an entity need not adjust the promised amount of consideration for the
effects of a significant financing component if the entity expects at contract inception that the period between
when the entity transfers a promised good or service to the customer and when the customer pays for that good
or service will be one year or less.The Company justifies the trading identity is the major responsible person or on behalf based on whether it
has the control right to the product or the service before transferring the products or service to the customer. As
the major responsible person of the Company shall recognizes the revenue based on the total consideration of
190Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
the amount received or receivable. Otherwise as the agent of the Company shall recognizes the revenue based
on the expected right of obtaining the commission or service charge which is calculated as the total
consideration on the amount received or receivable deducting the net amount payable to other related parties or
recognizes on the amount of commission or proportion etc.The Company received the amount of products sales or service in advance shall recognizes it as liabilities
in the first then accounted as revenue upon fulfilling relevant performance obligations.The Company has transferred the products or service to its clients and has rights to obtain the
considerations (and this rights is obliged to other elements of passing time) listed as the contractual assets.Contractual assets are accrued the devaluation provision based on the expected credit loss. The Company has
the unconditional rights （ only depends on the passing of time ） to its customer for obtaining the
considerations listed as item receivables. The consideration of amount received or receivable which is obtained
to its customer shall transfer product or service obligation to them listed as contractual liabilities.The detailed accounting policies related to the major activities of obtaining the revenue of the Company
(1) Sales processing
The production and processing sales comprise mainly of sales of oils and oilseeds food etc. The Company
recognized the sales revenue when the amounts received or identification obtained upon sales which has been
submitted and signed by the customer.
(2) Trading Revenue
If the Company obtained the product control rights from the third party and transferred to the client
assumed the significant obligations under the transaction of transferring the products to the client. i.e. inventory
risk and has rights to determine the price of the products oneself. The identity of the Company under the
transaction is the major responsible person recognizing the trading revenue based on the expected rights for
obtaining the total consideration stipulated on the contract. The Company made commitment to arrange others
to provide specific products but has no control rights on this before providing the specific products to clients.The identity of the Company under the transaction is agent recognizing the revenue on the commission
obtained or service amount for arranging others to provide the specific products to clients.
28. Contract Costs
191Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Contract cost comprises contract performance cost and contract acquisition cost.The cost incurred by the company for the performance of the contract which does not fall within the scope
of other accounting standards for business enterprises other than the income standard and meets the following
conditions at the same time is recognized as an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract including direct labor direct materials
manufacturing expenses (or similar expenses) costs explicitly borne by the customer and other costs incurred
solely as a result of the contract;
(2) The cost increases the company's resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the amortization
period has exceeded one normal operating cycle at the time of its initial recognition.If the incremental cost incurred by the company to obtain the contract is expected to be recovered it shall
be recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur
if the company does not obtain the contract.The assets related to the contract cost mentioned above shall be amortized at the time of performance of
the obligation or according to the performance progress on the same basis as the income recognition of the
commodity or service related to the asset and shall be recorded into the current profit and loss.If the book value of the above assets related to the contract cost is higher than the 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
192Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
remaining government grant is defined as the government grant related to income. If the object of grants is not
specified in government documents the grants shall be divided into income-related government grants and
assets-related government grants in the following ways: (1) If the government document clarifies the specific
project for which the grant is targeted the proportion of the expenditure amount of the assets to be formed and
the amount of the expenditures included in the expenses in the budget of the specific project are divided and the
proportion of grant division needs to be reviewed on each balance sheet day and changed if necessary. (2) In
government documents if the purpose is expressed only in general terms and no specific project is specified
the grant shall be regarded as a government grant related to the income. Where a government grant is a
monetary asset it shall be measured according to the amount received or receivable. If the government grants
are non-monetary assets they shall be measured at the fair value; if the fair value cannot be obtained reliably
they shall be measured at the nominal amount. Government grants measured in nominal amounts shall be
recognized directly in current profits and losses.The Company usually confirms and measures the government grant according to the amount when it is
actually received. However if there is conclusive evidence at the end of the period that the relevant conditions
stipulated in the financial support policy can be met and the financial support funds are expected to be received
it shall be measured according to the amount receivable. Government grants measured in accordance with the
amount receivable shall meet the following conditions at the same time: (1) The amount of the subvention
receivable has been confirmed by the authorized government departments or can be reasonably calculated
according to the relevant provisions of the formally issued financial fund 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
193Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
grants related to revenue which are used to compensate for the related cost or loss in the subsequent period
shall be recognized as deferred income and shall be recognized in profit or loss in the period in which the
related costs or losses are recognized; if it is used to compensate the related costs or losses that has occurred it
shall be directly recognized in the current profit and loss.It includes government grants related to both assets and income and different parts are separately
classified for accounting treatment; if it is difficult to distinguish the whole is classified as government grants
related to income.Government grants related to the daily activities of the Company shall be included in other income or cost
deductions according to the nature of the economic business; government subsidies unrelated to daily activities
shall be included in the non-operating revenues and expenses.When the recognized government grants need to be returned if there are relevant deferred earnings
balances the book balance of related deferred earnings shall be deducted and the excess part shall be included
in the current profits and losses or the book value of assets shall be adjusted otherwise the book value of assets
shall be directly included in the current profits and losses.The company will obtain preferential policy loans discount in accordance with the finance will be allocated
to the loan bank discount funds and the finance will be directly allocated to the company discount funds in two
cases:
(1) If the finance department allocates the discount interest funds to the lending bank and the lending bank
provides the loan to the Company at the policy preferential interest rate the Company chooses to conduct
accounting treatment according to the following methods: the loan amount actually received shall be taken as
the entry value of the loan and the relevant borrowing costs shall be calculated in accordance with the loan
principal and the policy preferential interest rate.
(2) If the finance allocates the discount funds directly to the company the company will offset the
corresponding discount against the relevant borrowing costs.
30. Deferred Tax Assets / Deferred Tax Liabilities
(1) Current Income Tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and previous
194Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
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 Tax Assets and Deferred 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.
195Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
On the balance sheet date the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates in the period in which the related assets are recovered or the related
liabilities are recovered in accordance with the tax laws.On the balance sheet date the book value of deferred income tax assets is reviewed. and the book value of
deferred income tax assets is written down if it is likely that sufficient taxable income will not be available to
offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient taxable
income the amount written down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.In addition to recognizing that the current income tax and deferred income tax related to other transactions
and matters directly included in shareholder's rights and interests shall be recognized in other comprehensive
income or shareholder's rights and interests and the book value of adjusted goodwill from deferred income tax
resulting from the merger of enterprises the other current income tax and deferred income tax expenses or gains
shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time the company's current income 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
On the commencement date of a contract an enterprise shall assess whether the contract is a lease or
196Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
includes a lease. Where a party to a contract transfers the right to control the use of one or more identified assets
for a certain period of time in return for consideration the contract is a lease or includes a lease. To determine
whether the right to control the use of identified assets within a certain period of time under a contract has been
transferred an enterprise shall assess whether a client in the contract has the right to use almost all of the
economic benefits arising from the use of the identified assets during the period of use and has the right to
dominate the use of identified assets during this period of use.Where a contract concurrently contains multiple separate leases the lessee and lessor shall split the
contract and conduct accounting treatment respectively for all separate leases.Where the following conditions are concurrently met use of the rights of identified assets shall constitute a
separate lease in a contract:
* A lessee may earn profits from separate use of the assets or joint use with other resources readily
available.* There is no high dependence or high correlation between the assets and other assets in the contract.Where a contract concurrently includes both leased and non-leased parts the Company as the lessee and
lessor shall split the leased and non-leased parts to conduct accounting treatment.
(1) The Company records operating lease business as a lessee.
The main types of leased assets of the company include houses and buildings transportation equipment
and land use rights etc.
1) Initial measurement
At the beginning of the lease period the Company recognizes its right to use the leased assets during the
lease period as a right-of-use asset recognition of the present value of outstanding lease payments as lease
liabilities except short-term and low-value asset leases. In calculating the present value of the lease payment
the Company uses the interest rate included in the lease as the discount rate. Where the interest rate included in
the lease cannot be determined the Company uses the incremental borrowing rate as the discount rate
The lease period is the irrevocable period during which the Company is entitled to use the lease assets.Where the Company has the option to renew the lease that is the right to choose to renew the lease of the asset
and reasonably determines that the option will be exercised. The lease period also includes the period covered
197Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
by the lease renewal option. The Company has the option to terminate the lease that is the right to terminate
the lease of the asset provided that it is reasonably determined that the option will not be exercised the lease
period includes the period covered by the option to terminate the lease. Where a material event or change within
the control of the Company occurs and affects whether the Company reasonably determines that the appropriate
option will be exercised... The Company will determine to exercise the option of renewing the lease re-
evaluation of the option to purchase or not to exercise the option to terminate the lease on its reasonability.
2) Subsequent measurement
The Company adopts the straight-line method to depreciate the right to use assets. Where it is reasonable to
determine that the leased assets are to be owned upon expiry of the lease term the Company shall calculate the
leased assets within the remaining useful life of the leased assets. If the ownership of the leased assets upon
expiry of the lease term is unable to be reasonably determined the Company shall accrue depreciation within a
short period of time between the lease term and the remaining useful life of the leased assets. The interest
expenses of the lease liabilities for each period of the lease term at the discount rate is recognized by the
Company and shall be included into the current profit or loss. Variable lease payments that are not included in
the leasehold liability measure are included in the current profit and loss at the time of actual incurrence.After commencement of the lease period when there is a change in the amount of substantial fixed
payments and the amount due to which the guarantee balance is expected changes in indices or ratios used to
determine rental payments where the assessment of purchase options the renewal option or termination option
or actual exercise of the option changes the Company re-measures the lease liabilities according to the present
value of the change in lease payments and adjust the book value of the right to use assets accordingly. If the
book value of the right to use assets has been reduced to zero but the lease liability still needs to be further
reduced the Company will record the remaining amount in the current profit or loss.
3) Lease change
Lease modification refers to the modification of the lease scope lease consideration and lease term beyond
the terms of the original contract including increasing or terminating the right to use one or more leased assets
extending or shortening the lease term specified in the contract etc.If the lease changes and the following conditions are met the Company will account for the lease change
as a separate lease:
198Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
* The lease change expands the scope of the lease by adding the right to use one or more leased assets;
* The increased consideration is equivalent to the separate price for the extended portion of the lease
adjusted for the circumstances of the contract.If the lease change is not accounted for as a separate lease on the effective date of the lease change the
Company redetermines the lease term and discounts the changed lease payment at the revised discount rate to
remeasure the lease liability. In calculating the present value of the lease payment after the change the
Company uses the inherent interest rate of the lease during the remaining lease term as the discount rate; If the
inherent interest rate of the lease for the remaining lease term cannot be determined the Company's incremental
borrowing rate on the effective date of the lease change shall be used as the discount rate.The Company accounts for the impact of the above adjustment of lease liabilities in the following cases:
* If the lease change results in the reduction of the lease scope or the shortening of the lease term the
Company shall reduce the book value of the right of use assets to reflect the partial or complete termination of
the lease. The Company recognises gains or losses related to partial or complete termination of the lease in
profit or loss for the current period.* For other lease changes the company shall adjust the book value of the right to use assets accordingly
4) Short-term leases and leases of low value assets
The Company will consider a lease for a period not exceeding 12 months and excluding a purchase option
as a short-term lease on the commencement date of the lease term; A lease with a lower value when a single
leased asset is a new asset is identified as a low-value asset lease. Where the Company subleases or intends to
sublease leased assets the original lease is not deemed to be a low-value asset lease. The relevant asset cost or
current profit or loss is recognised on a straight-line basis during each period of the lease term and the
contingent rent is recognised in current profit or loss when actually incurred
(2) The company records operating lease business as a lessor
The lease commencement date essentially transfers almost all the risks and rewards associated with the
ownership of the leased asset to finance leases and all other leases are operating leases
1) Operating lease
The rental income of operating lease shall be recognized as current profit and loss according to the
199Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
straight-line method during each period of the lease period. The larger initial direct expenses are capitalized
when occurring and the profits and losses of the current period shall be recorded in stages on the same basis as
the recognized rental income during the whole lease period; the smaller initial direct expenses shall be recorded
in the profits and losses of the current period when occurring. Contingent rentals shall be included in current
profits and losses when actually occurring.
2) Finance lease
At the beginning date of the lease term the Company recognizes the financial lease payment receivable for
the financial lease and terminates the recognition of the financial lease assets. When the Company makes the
initial measurement of the financial lease receivable the net lease investment is taken as the recorded value of
the financial lease receivable. The net lease investment is the sum of the unsecured balance and the present
value of the lease proceeds not yet received at the commencement date of the lease term discounted at the
intrinsic interest rate of the lease. The Company calculates and recognizes interest income for each period of the
lease term based on the inherent interest rate of the lease.The Company presents financial lease receivables as long-term receivables and financial lease receivables
received within one year (including one year) from the balance sheet date are presented as non-current assets
maturing within one year.
32. Other important accounting policies and accounting estimates
(1) Hedge accounting
In order to avoid some risks the Company hedges some financial instruments as hedging instruments. For
the hedges meeting the specified conditions the Company adopts the hedge accounting method for treatment.The hedging of the Company is fair value hedging.At the beginning of hedging the Company formally designates hedging instruments and hedged items and
prepares written documents on hedging relationship and risk management strategy and risk management
objectives of the Company engaged in hedging. In addition the Company will continuously evaluate the
effectiveness of hedging at the beginning and after the hedging.
(2) Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions the profits or losses
200Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the non-
trading equity instrument investment (or its components) that is measured at fair value and whose changes are
included in other comprehensive income the gains and losses generated by the hedging instrument are included
in other comprehensive income. The profit or loss of the hedged item due to the hedged risk exposure shall be
included into the current profits and losses and the book value of the hedged item shall be adjusted at the same
time. If the hedged item is measured at fair value the gain or loss of the hedged item due to the hedged risk
does not need to adjust the book value of the hedged item and the relevant gains and losses are included into
the current profits and losses or other comprehensive income.When the Company cancels the designation of the hedging relationship the hedging instrument has
expired or been sold the contract has been terminated or exercised or no longer meets the conditions for the
application of hedge accounting the application of hedge accounting shall be terminated.
33. Changes in Significant Accounting Polices and Accounting Estimates
The Company did not have any significant changes in accounting policies and accounting estimates during
the reporting period.IV Taxes
1. Major types of taxes and tax rates
Types Tax Basis Tax Rate
Taxable value-added amount (the tax payable is calculated as the balance 1%、3%、5%、
VAT of taxable sales revenue multiplied by the applicable tax rate less the 6%、9%、
current period's input tax that is allowed to be deducted). 10%、13%
Urban Maintenance
Construction Tax It is calculated and levied according to the actual VAT paid 7%、5%
Educational fee
surcharge It is calculated and levied according to the actual VAT paid 3%
Local Education
Add-on It is calculated and levied according to the actual VAT paid 2%
Corporate income
tax According to the taxable income
25%、20%、
17%、15%
70% of the original value of the property is the tax basis and 30% is
Property tax deducted according to the original value of the property; Rental income is 12%、1.2%
used as the tax basis
If there are taxpayers with different enterprise income tax rates the disclosure shall be explained:
Tax Payers Income Tax Rate
Hangzhou Lin'an Chunmanyuan Agricultural Development Co. Ltd. 20%
Jingliang (Singapore) International Trade Co. Ltd. 17%
201Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Beijing Guchuan Bread Food Co. Ltd. 15%
2. Tax Incentives
Beijing Guchuan Bread & Food Co. Ltd. a third-level subsidiary of the Company is a high-tech
enterprise and the certificate number of the high-tech enterprise is GR202411003833 which is valid until
October 29 2027. Beijing Guchuan Bread & Food Co. Ltd. enjoys the preferential tax policy of paying
enterprise income tax at a rate of 15% in accordance with the relevant provisions of the Law of the People's
Republic of China on the Administration of Tax Collection and Collection and the Detailed Rules for the
Implementation of the Law of the People's Republic of China on the Administration of Tax Collection.According to Announcement No. 43 of 2023 of the Ministry of Finance and the State Administration of
Taxation on the VAT Plus Deduction Policy for Advanced Manufacturing Enterprises from January 1 2023 to
December 31 2027 advanced manufacturing enterprises are allowed to deduct the VAT payable by adding 5%
of the deductible input tax in the current period.The company's third-level subsidiary Jingliang (Singapore) International Trade Co. Ltd. is taxed
according to the territorial principle. Based on Singapore's tax exemption policy the company is eligible for the
following tax exemptions:
1.The first SGD 10000 of taxable income is exempted by SGD 7500. For the portion of taxable income
between SGD 10001 and SGD 200000 a 95% exemption is granted. The portion exceeding SGD 200000 is
not eligible for exemption. The company will pay income tax at a 17% rate based on the taxable income after
applying the exemptions.
2.For the 2026 Year of Assessment (YA) all taxable companies (regardless of whether they are tax
residents) will receive a rebate equivalent to 50% of the corporate tax payable with a total rebate amount of
SGD 40000.Zhejiang Little Prince Food Co. Ltd. a third-level subsidiary of the Company Hangzhou Lin'an Little
Angel Food Co. Ltd. Linqing Little Prince Food Co. Ltd. and Liaoning Little Prince Food Co. Ltd. a third-
level subsidiary of the Company in accordance with the relevant provisions of the Notice of the Ministry of
Finance and the State Administration of Taxation on Issues Concerning the Preferential Policies of Enterprise
Income Tax Related to the Employment of Disabled Persons (CS (2009) No. 70). An additional deduction of
100% of the wages paid to the disabled employee can be made in the calculation of taxable income.
202Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Hangzhou Lin'an Little Angel Food Co. Ltd. a fourth-level subsidiary of the Company is a welfare
enterprise and has been enjoying the preferential policy of VAT refund in the Notice on Promoting the
Employment of Disabled Persons (CS [2016] No. 52) since May 2016.The company's fourth-level subsidiary Liaoning Little Prince Food Co. Ltd. is subject to the regulations
in Article 13 of the State Administration of Taxation's "Notice on the Issuance of Supplementary Provisions on
Several Specific Issues of Land Use Tax" (Guo Shui Di Zi [1989] No. 140). According to this regulation
"public lands such as municipal streets squares and greenbelts" are exempt from land use tax. When
calculating the land use tax the area used for green space and roads can be subtracted from the total land area to
determine the taxable area.The company's fourth-level subsidiary Hangzhou Lin'an Little Angel Food Co. Ltd. benefits from a tax
reduction according to the Zhejiang Provincial Local Taxation Bureau's Announcement (2014 No. 8). For
companies where the average number of disabled employees in a tax year exceeds 25% (including 25%) of the
total number of on-duty employees and the actual number of disabled employees exceeds 10 (including 10) the
company may upon approval from the local tax department enjoy a reduction in urban land use tax. The
reduction is RMB 2000 per person per year based on the annual average number of disabled employees with
the maximum reduction limited to the total amount of urban land use tax payable by the company for that year.The company's fourth-level subsidiaries Linqing Little Prince Food Co. Ltd. and Hangzhou Lin'an Chun
Manyuan Agricultural Development Co. Ltd. are subject to the policies issued by the Ministry of Finance and
the State Taxation Administration in the Announcement on Further Supporting the Development of Small and
Micro Enterprises and Individual Industrial and Commercial Households (Cai Shui [2023] No. 12). The
company meets the criteria for recognition as a small or micro enterprise and will apply the following
preferential policies for the 2026 fiscal year: "1) For the portion of the annual taxable income not exceeding 3
million yuan it is reduced to 25% of the taxable income and taxed at a rate of 20% for enterprise income tax; 2)
the following taxes will be levied at half the normal rate: resource tax (excluding water resource tax) urban
maintenance and construction tax property tax urban land use tax stamp duty (excluding securities transaction
stamp duty) cultivated land occupation tax education fee surcharge and local education surcharge."
The company's third-level subsidiary Beijing Tianweikang Oil Adjustment Center Co. Ltd. is subject to
the policies outlined in the document "Announcement on Continuing the Implementation of Certain National
Commodity Reserves Tax Preferential Policies" (Announcement No. 48 2023) issued by the Ministry of
203Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Finance and the State Taxation Administration. According to this document commodity reserve management
companies and their directly affiliated warehouses are exempt from stamp duty on their business account books.They are also exempt from stamp duty on purchase and sale contracts signed during the course of their
commodity reserve business. However the stamp duty owed by other parties to the contract will be collected
according to the law. Additionally commodity reserve management companies and their directly affiliated
warehouses are exempt from property tax and urban land use tax on real estate and land used for their
commodity reserve business.V Notes on Items in Consolidated Financial Statements
Note: The ‘Opening Balance’ of the period refers to December 31 2025 and the ‘Closing Balance’ of the
period refers to June 30 2026. The prior period refers to January 1 2025 to June 30 2026 and the current
period refers to January 1 2026 to June 30 2026. The currency unit is RMB Yuan.
1. Monetary funds
Items Closing Balance Opening Balance
Cash on hand 8617.41 10241.76
Bank Deposits 474496252.42 453246396.16
Other Currency Funds 189218706.94 65441208.59
Deposit in the Financial Company 1026407608.14 1303024670.57
Total 1690131184.91 1821722517.08
Among them: the total amount of money deposited abroad 14563772.23 17207901.63
2. Derivative financial assets
Items Closing Balance Opening Balance
Fair value changes of hedging instrument 27829740.00
Total 27829740.00
3. Accounts Receivable
(1) Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 year 79402786.41 97759940.74
1 to 2 years 85853.91 582432.97
2 to 3 years
204Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Aging Closing Balance Opening Balance
3 to 4 years 717497.72 717497.72
4 to 5 years
More than 5 years 328259.50 328259.50
Total 80534397.54 99388130.93
(2) Classification disclosure based on bad debt provision method
Closing Balance
Book Balance Bad Debt Provision
Type(s)
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Provision for bad debts
calculated on an individual 328259.50 0.40 328259.50 100.00
basis
Combination based on
credit risk characteristics 80206138.04 99.60 717497.72 0.89 79488640.32
Total 80534397.54 —— 1045757.22 —— 79488640.32
(Continued)
Opening Balance
Type(s) Book Balance Bad Debt Provision
Expected Book Value
Amount Ratio(%) Amount credit loss
rate (%)
Provision for bad debts
calculated on an individual 449259.50 0.45 449259.50 100.00
basis
Combination based on
credit risk characteristics 98938871.43 99.55 722497.72 0.73 98216373.71
Total 99388130.93 —— 1171757.22 —— 98216373.71
A. Separate provision for bad debts
Opening Balance Closing Balance
Name Book Bad Debt Closing Bad Debt Provision Provision
Balance Provision Balance Provision Ratio(%) Aging Reason
Fujian Jingxin More Short of funds
Industrial Group 151844.00 151844.00 151844.00 151844.00 100.00 than 5 unable to make
Co. Ltd years repayment
Beijing Guotai
Pingan Tianzhu More
Commercial 1809.60 1809.60 1809.60 1809.60 100.00 than 5 expected
Development Co. years unrecoverable
Ltd.Beijing Rongfa
Lida Grain and More expected
Oil Trade Co. 163143.00 163143.00 163143.00 163143.00 100.00 than 5 unrecoverable
Ltd. years
205Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Opening Balance Closing Balance
Name Book Bad Debt Closing Bad Debt Provision Provision
Balance Provision Balance Provision Ratio(%) Aging Reason
Beijing Guotai
Pingan More10862.90 10862.90 10862.90 10862.90 100.00 than 5 expectedDepartment Store unrecoverable
Co. Ltd years
Beijing Shunyi More
Longhua 600.00 600.00 600.00 600.00 100.00 than 5 expected
Shopping Mall years unrecoverable
Chengde Jinli
Food Co. Ltd. 121000.00 121000.00
Within
1 year
Total 449259.50 449259.50 328259.50 328259.50 —— —— ——
B. Portfolio provision for bad debts
Portfolio provision items are as follows:
Closing Balance
Name
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Credit Risk Portfolio 80206138.04 717497.72 0.89
Total 80206138.04 717497.72 0.89
(Continued)
Opening Balance
Name
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Credit Risk Portfolio 98938871.43 722497.72 0.73
Total 98938871.43 722497.72 0.73
(3) Details of bad debt provision
Opening The amount changed for the periodItems Balance Closing BalanceProvision Withdrawal orCharge-off or Otherreversal write-off changes
Bad debt provision on
individual basis 449259.50 121000.00 328259.50
Credit risk profile portfolio 722497.72 5000.00 717497.72
Total 1171757.22 126000.00 1045757.22
(4) The top five situations of the ending balance of accounts receivable and contract assets classified by the
debtor party
Proportion of
Closing balance Closing Closing
Name of Entity of Accounts balance of
Closing Balance of Closing Balance of
Contract Receivables and Receivables and
balance of
receivable Assets Contract Assets Contract Assets
Bad Debt
% Provision（ ）
206Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Proportion of
Closing balance Closing Closing
Name of Entity of Accounts balance of
Closing Balance of Closing Balance of
Receivables and Receivables and balance of
receivable ContractAssets Contract Assets Contract Assets
Bad Debt
% Provision（ ）
Hebei Luanping
Huadu Food Co. 16264501.42 16264501.42 20.20
Ltd.Beijing Grain Group
Co. Ltd. 12847737.37 12847737.37 15.96
Zhejiang Lvqin
Supply Chain
Management Co. 5538222.39 5538222.39 6.88
Ltd.Feed Branch of
Beijing Sanyuan
Seed Industry 4846865.89 4846865.89 6.02
Technology Co.Ltd.CP Food (Hengshui)
Co. Ltd. 3109047.80 3109047.80 3.86
Total 42606374.87 42606374.87 52.92
4. Advanced Payments
(1) Advanced Payments are presented by age
Closing Balance Opening Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year 21035346.22 99.86 574317912.78 99.98
1 to 2 years 500.00 60544.38 0.01
2 to 3 years 29710.00 0.14 32386.44 0.01
More than 3 years
Total 21065556.22 100.00 574410843.60 100.00
(2) Advanced payments of the Top 5 Closing Balances by prepaid objects
Debtor Name Closing
Ratio of the total
Balance Closing Balance of
Bad Debt
prepayments (%) Provision
Jiaxing Wire & Cable Co. Ltd. 3906140.42 18.54
Zhuhai Binhe Industrial Co. Ltd. 3361310.00 15.96
Beijing Yangu Grain and Oil Purchase and Sales Co. Ltd. 2542535.24 12.07
Zhongding Huasheng (Beijing) Construction Engineering Co.Ltd. 2096867.17 9.95
COFCO EXCELJOY(Tianjin) Co. Ltd. 1627534.14 7.73
Total 13534386.97 64.25
207Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
5. Other Receivables
Item(s) Closing Balance Opening Balance
Other Receivables 245178434.01 173257419.17
Total 245178434.01 173257419.17
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year 291383059.48 220208199.83
1 to 2 years 1771950.28 759074.72
2 to 3 years 230199.00 492800.00
3 to 4 years 250240.00 327859.37
4 to 5 years 78000.00 62000.00
More than 5 years 458999.99 401499.99
Total 294172448.75 222251433.91
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Deposit and guaranteed deposit 223551367.02 130596795.79
Intercourse funds of units 68491416.27 58906353.63
Employee receivables 790688.49 729283.59
Tax refund receivables 1268513.70 1196283.46
Insurance claim payments 30654986.50
Others 70463.27 167730.94
Total 294172448.75 222251433.91
C. Details of bad debt provision
Opening Balance
Type(s) Book Balance Bad Debt Provision
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Bad debt provisions are
accrued based on an 48980344.30 16.65 48980344.30 100.00
individual basis
Bad debt provisions are
accrued based on the
combination of credit risks 245192104.45 83.35 13670.44 0.01 245178434.01
characteristics
208Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Opening Balance
Type(s) Book Balance Bad Debt Provision
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Total 294172448.75 —— 48994014.74 —— 245178434.01
(Continued)
Opening Balance
Type(s) Book Balance Bad Debt Provision
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Bad debt provisions are accrued
based on an individual basis 48980344.30 22.04 48980344.30 100.00
Bad debt provisions are accrued
based on the combination of credit 173271089.61 77.96 13670.44 0.01 173257419.17
risks characteristics
Total 222251433.91 —— 48994014.74 —— 173257419.17
D. Other receivables for which bad debt provisions are accrued based on an individual basis
Opening Balance Closing Balance
Name of Debtors Bad Debt Expected
Book Balance Bad Debt Reason forProvision Book Balance Provision credit loss Agingrate(%) Provision
MARS FARMER
LIMITED 48970344.30 48970344.30 48970344.30 48970344.30 100.00
Within Expected to be
1 year uncollectible
Ke You Shi
(Shanghai)
Management 10000.00 10000.00 10000.00 10000.00 100.00 4-5 Expected to be
Consulting Co. years uncollectible
Ltd.Total 48980344.30 48980344.30 48980344.30 48980344.30 —— —— ——
E. Bad debt provisions based on combinations
Closing Balance
Type(s)
Other receivables Bad Debt Proportion ofProvision accrual (%)
Credit risk portfolio 12491958.63 13670.44 0.07
Deposit and guarantee portfolio 232565145.82
Receivables and balances of reserved funds formed
by employee loans of this unit 135000.00
Total 245192104.45 13670.44 0.01
(Continued)
Type(s) Opening Balance
209Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Other receivables Bad Debt Proportion ofProvision accrual (%)
Credit risk portfolio 42637733.45 13670.44 0.03
Deposit and guarantee portfolio 130530795.79
Receivables and balances of reserved funds formed
by employee loans of this unit 102560.37
Total 173271089.61 13670.44 0.01
F. Provisions for bad debts in accordance with the general model for expected credit losses
The first stage The second stage The third stage
Expected credit loss Expected credit lossthroughout the entire
Bad debt provision Expected credit loss throughout the Total
over the next 12 entire duration (no duration
months credit impairment (incorporating
occurred) already occurredcredit impairment)
Opening Balance 48970344.30 23670.44 48994014.74
Opening balance in the current period —— —— —— ——
-- Transferred to the second stage
-- Transferred to the third stage
-- Reversed from the second stage
-- Reversed from the first stage
Current period accrual
Current period reversal
Current period charge-off
Current period write-off
Other changes
Closing Balance 48970344.30 23670.44 48994014.74
G. Bad debt provisions
The amount changed for the period
Types Opening Balance Withdrawal Charge-off Other Closing BalanceProvision or reversal or write-off changes
Bad debt provision
on individual basis 48980344.30 48980344.30
Credit risk profile
portfolio 13670.44 13670.44
Total 48994014.74 48994014.74
H. Other receivables according to Top five of balance at end of period collected by debtors
Proportion in overall Closing
Name of Debtors Nature of Funds Balance at Endof Period Aging Closing Balance of Balance of badother receivables (%) debt reserves
Haitong Futures
Co. Ltd Futures Margin 48990304.40 Within 1 year 16.65
210Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Name of Debtors Nature of Funds Balance at End
Proportion in overall Closing
of Period Aging Closing Balance of Balance of badother receivables (%) debt reserves
MARS
FARMER Account Current 48970344.30 Within 1 year 16.65 48970344.30
LIMITED
Hongyuan
Futures Co. Ltd. Futures Margin 42062873.20 Within 1 year 14.30
Galaxy Futures
Co. Ltd. Futures Margin 40613184.80 Within 1 year 13.81
CITIC Futures
Co. Ltd. Futures Margin 25281986.20 Within 1 year 8.59
Total —— 205918692.90 —— 70.00 48970344.30
6. Inventory
(1) Inventory Category
Closing Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Raw Materials 242345646.63 8040000.00 234305646.63
Self-made Semi-finished Products &
Work in Progress 617330.10 617330.10
Finished Goods 551253489.25 89525.77 551163963.48
Turnover Materials 3467927.05 55676.29 3412250.76
Work in Process-outsourced 43862482.16 43862482.16
Materials in Transit 721186641.57 721186641.57
Goods Sold 6543852.31 6543852.31
Total 1569277369.07 8185202.06 1561092167.01
(Continued)
Opening Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Raw Materials 597025582.96 21350971.75 575674611.21
Self-made
Semi-finished Products & 372109.32 372109.32
Work in Progress
Finished Goods 664865256.03 1510139.93 663355116.10
Turnover Materials 2978388.97 57918.90 2920470.07
Work in Process-outsourced 83426732.77 83426732.77
Materials in Transit 94930883.69 94930883.69
211Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Opening Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Goods Sold 1249168.24 1249168.24
Total 1444848121.98 22919030.58 1421929091.40
(2) Inventory impairment provision and contract performance cost impairment provision
The amount added this period
Items Opening Balance
Provision Others
Raw Materials 21350971.75
Finished Goods 1510139.93
Turnover Materials 57918.90
Total 22919030.58
(Continued)
The amount reduced this period
Items Closing Balance
Reversal or write-off Others
Raw Materials 13310971.75 8040000.00
Finished Goods 1420614.16 89525.77
Turnover Materials 2242.61 55676.29
Total 14733828.52 8185202.06
(3) Inventory Goods listed by major product type
Closing Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 539447736.79 89525.77 539358211.02
Food 11805752.46 11805752.46
Total 551253489.25 89525.77 551163963.48
(Continued)
Opening Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 648365629.66 1510139.93 646855489.73
Food 16499626.37 16499626.37
Total 664865256.03 1510139.93 663355116.10
212Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
7. Other Current Assets
Items Closing Balance Opening Balance
Pending Deduct VAT Input Tax 71133822.06 80350441.94
Pre-paid Taxes and Fees 10167445.26 9948529.68
Input Tax to Be Certified 135896.87 245525.77
Fair Value Changes of Hedged Items 62395166.07 8705942.21
In total 143832330.26 99250439.60
8. Long-term Equity Investment
(1) Long-Term Equity Investment Classification
Item Beginning Balance Current Increase Current Period-EndDecrease Balance
Investment in Joint Ventures 139458291.18 3035749.09 142494040.27
Investment in Associates 127814678.14 1230369.93 129045048.07
Total 267272969.32 4266119.02 271539088.34
(2) Details of Joint Ventures and Associates
Increase or Decrease in the Current Period
Balance at
Invested Entity Cost of Beginning of Confirmed Profit Adjustment ofInvestment Year Additional Negative and Loss on otherInvestment Investment Investment under comprehensive
Equity Method income
Total 119825100.64 267272969.32 4266119.02
1. Joint Ventures 26232442.61 139458291.18 3035749.09
Beijing CHIA TAI
Feedmill 26232442.61 139458291.18 3035749.09
Co. Limited
2. Associates 93592658.03 127814678.14 1230369.93
China Grain
Reserves (Tianjin)
Warehouse 84000000.00 127814678.14 1230369.93
Logistics Co. Ltd.Jingliang Missme
Catering
Management 9592658.03
(Beijing) Co. Ltd.
(Continued)
Increase or Decrease in the Current Period
Closing Balance
Invested entity Other
Announce to Balance at End
changes in Distribute Case
Accrual of
Impairment Others of Period
of Impairment
Dividends or Reservesequity Profits Reserves
Total 271539088.34
213Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
1. Joint Ventures 142494040.27
Beijing CHIA TAI
Feedmill 142494040.27
Co. Limited
2. Associates 129045048.07
China Grain
Reserves (Tianjin)
Warehouse Logistics 129045048.07
Co. Ltd.Jingliang Missme
Catering
Management
(Beijing) Co. Ltd.
9. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
Items Buildings Land Use Construction inRight Progress Total
One. Original Book Value
1.Balance at Beginning of Year 60721876.10 576510.00 61298386.10
2.Increased Amounts in the Current Period
3.Decreased Amounts in the Current Period
—Other transfers 60721876.10 576510.00 61298386.10
4.Balance at End of Period
Two. Accumulated Impairment and
Accumulated Amortization 34226473.01 231564.85 34458037.86
1. Balance at Beginning of Year 846320.74 5765.10 852085.84
2. Increased Amounts in the Current Period 846320.74 5765.10 852085.84
—Accrual or Amortization
3. Decreased Amounts in the Current Period
—Other transfers 35072793.75 237329.95 35310123.70
4. Balance at End of Period
Three. Impairment Reserves 10587796.70 10587796.70
1. Balance at Beginning of Year
2. Increased Amounts in the Current
Period
3. Decreased Amounts in the Current
Period 10587796.70 10587796.70
4. Balance at End of Period
Four. Book Value
1. Book Value at End of Period 15061285.65 339180.05 15400465.70
2. Book Value at Beginning of Year 15907606.39 344945.15 16252551.54
214Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
10.Fixed Assets
Items Balance at End of Period Balance at Beginning of Period
Fixed Assets 814065422.12 841479812.89
Disposal of fixed assets
In total 814065422.12 841479812.89
(1) Details of Fixed Assets
Items Buildings Machinery Equipment Transportation Equipment Electronic Equipment Office Equipment Other Equipment Total
One. Original
Book Value
1. Balance at
Beginning of 1095593888.13 844074072.11 18587760.18 16418896.35 7630892.16 232873.76 1982538382.69
Year
2. Increased
Amounts in
the Current 3412799.70 15358629.47 278727.60 82234.93 33012.68 19165404.38
Period
(1) Purchase 1686768.88 278727.60 82234.93 33012.68 2080744.09
(2) Roll-in
of Project
under 3412799.70 13671860.59 17084660.29
Construction
(3) Other
3. Decreased
Amounts in
the Current 182568.80 828521.27 323661.54 406769.93 131498.82 74011.40 1947031.76
Period
(1) Disposal
or Scrap 182568.80 828521.27 323661.54 406769.93 131498.82 74011.40 1947031.76
(2) Other
transferred out
4. Balance at
End of Period 1098824119.03 858604180.31 18264098.64 16290854.02 7581628.27 191875.04 1999756755.31
Two.Accumulated
Impairment
1. Balance at
Beginning of 519004237.94 565676848.30 13133612.56 10469123.05 5125203.10 84876.80 1113493901.75
Year
2. Increased
Amounts in
the Current 19692408.85 24767219.70 756008.39 654507.29 366736.43 20813.71 46257694.37
Period
(1) Accrual 19692408.85 24767219.70 756008.39 654507.29 366736.43 20813.71 46257694.37
(2) Other
3. Decreased
Amounts in
the Current 17344.08 770177.03 307478.46 390259.50 102111.86 37499.15 1624870.08
Period
(1) Disposal
or Scrap 17344.08 770177.03 307478.46 390259.50 102111.86 37499.15 1624870.08
4. Balance at
End of Period 538679302.71 589673890.97 13582142.49 10733370.84 5389827.67 68191.36 1158126726.04
Three.Impairment
Reserves
1. Balance at
Beginning of 9047959.13 18284210.99 2780.80 155337.57 69089.76 5289.80 27564668.05
Year
(1) Accrual
(2) Decreased
Amounts in
the Current
Period
215Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Items Buildings Machinery Equipment Transportation Equipment Electronic Equipment Office Equipment Other Equipment Total
4. Balance at
End of Period 9047959.13 18284210.99 2780.80 155337.57 69089.76 5289.80 27564668.05
Four. Book
Value
1. Book Value
at End of 551096857.19 250646078.35 4679175.35 5402206.51 2122710.84 118393.88 814065422.12
Period
2. Book Value
at Beginning 567541691.06 260113012.82 5451366.82 5794435.73 2436599.30 142707.16 841479812.89
of Year
11. Construction in Progress
Items Balance at End of Period Balance at Beginning of Year
Construction in Progress 130672973.43 88960509.10
Total 130672973.43 88960509.10
(1) Construction in Progress
A. Details of Construction in Progress
Closing Balance Opening Balance
Items
Book Balance Impairment Book Value Book Balance ImpairmentReserves Reserves Book Value
Baking production
line 88031342.74 88031342.74 37502395.06 37502395.06
Jingliang Hainan
Yangpu Oil 13641245.93 13641245.93 12048331.15 12048331.15
Processing Project
Slope Stabilization
Project at Factory 8101830.83 8101830.83 8101830.83 8101830.83
No. 3
Free Trade Zone
Feed Processing 7858573.81 7858573.81 7858573.81 7858573.81
Project
Upgrade Project for
Rice Cake 4557039.48 4557039.48 4347643.14 4347643.14
Production Line
The infrastructure
and prefabrication
section project of 4481511.03 4481511.03 1341054.32 1341054.32
the rice cake
workshop
Snow Cake
Workshop
Category 1472459.91 1472459.91
Expansion
Investment Project
The "Haidilao"
baking potato chip
automation
transformation 6438366.79 6438366.79
project of the
Leisure Factory
Rice Product
Workshop 2854971.76 2854971.76
Relocation Project
216Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Closing Balance Opening Balance
Items
Book Balance Impairment Book Value Book Balance ImpairmentReserves Reserves Book Value
The lean
production
transformation
project of the first 1311148.16 1311148.16
and second
workshops of the
Leisure Factory
Others 4001429.61 4001429.61 5683734.17 5683734.17
Total 130672973.43 130672973.43 88960509.10 88960509.10
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Project Name Budget Beginning Increase This
Transfer to Decrease
Fixed This Period-EndAmount Balance Period Assets Period Balance
Baking production
line 164200000.00 37502395.06 50528947.68 88031342.74
Jingliang Hainan
Yangpu Oil 661324100.00 12048331.15 1592914.78 13641245.93
Processing Project
Free Trade Zone
Feed Processing 7184400.00 7858573.81 7858573.81
Project
Slope
Stabilization
Project at Factory 17107500.00 8101830.83 8101830.83
No. 3
Total -- 65511130.85 52121862.46 117632993.31
(Continued)
Proportion of
accumulated Interest
input of the Progress Accumulated
Including: Capitalizati
Project Name project on of the Amount of
Interest on Rate in Sources of
Budgeted Project Interest
Capitalization the Current
Capitalization Amount occurred
Capital
Amount in Current Period Period%（%）（）
Baking production
line 53.61 53.61% 263055.56 263055.56 100.00
Owned by the
enterprise
Jingliang Hainan Raised
Yangpu Oil 1.82 1.82% Capital and
Processing Project Owned by theenterprise
Free Trade Zone
Feed Processing 109.38 99.00% Owned by the
Project enterprise
Slope Stabilization
Project at Factory 1.82 1.82% Owned by the
No. 3 enterprise
Total —— —— 263055.56 263055.56 —— ——
217Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
12.Right-of-use Asset
Details
Items Buildings Transportation Land UseEquipment Right In total
One. Original Book Value
1. Balance at Beginning of Year 170222305.36 467890.70 5648400.00 176338596.06
2. Increased Amounts in the Current
Period
(1) Lease
3. Decreased Amounts in the Current
Period 2416490.86 2416490.86
(1) Expiration of contract
(2) Contract termination adjustment 2416490.86 2416490.86
4. Balance at End of Period 167805814.50 467890.70 5648400.00 173922105.20
Two. Accumulated Depreciation
1. Balance at Beginning of Year 5106948.45 162224.11 1242648.00 6511820.56
2. Increased Amounts in the Current
Period 4328997.40 22948.41 56484.00 4408429.81
(1) Accrual 4328997.40 22948.41 56484.00 4408429.81
3. Decreased Amounts in the Current
Period 1744846.06 1744846.06
(1) Contract termination adjustment 1744846.06 1744846.06
(2) Expiration of contract
4. Balance at End of Period 7691099.79 185172.52 1299132.00 9175404.31
Three. Impairment Reserves
1. Balance at Beginning of Year
2. Increased Amounts in the Current
Period
3. Decreased Amounts in the Current
Period
4. Balance at End of Period
Four. Book Value
1. Book Value at End of Period 160114714.71 282718.18 4349268.00 164746700.89
2. Book Value at Beginning of Year 165115356.91 305666.59 4405752.00 169826775.50
13.Intangible Assets
Details of Intangible Assets
Items Software Land Use Right Trademark Right In total
One. Original Book Value
218Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Items Software Land Use Right Trademark Right In total
1. Balance at Beginning of Year 5428044.57 415718033.78 126106000.00 547252078.35
2. Increased Amounts in the Current Period
(1) Purchase
3. Decreased Amounts in the Current Period
(1) Disposal
4. Balance at End of Period 5428044.57 415718033.78 126106000.00 547252078.35
Two. Accumulated Amortization
1. Balance at Beginning of Year 4910722.38 97746222.38 74011523.71 176668468.47
2. Increased Amounts in the Current Period 79869.56 4542322.72 3138575.67 7760767.95
(1) Accrual 79869.56 4542322.72 3138575.67 7760767.95
3. Decreased Amounts in the Current Period
(1) Disposal
4. Balance at End of Period 4990591.94 102288545.10 77150099.38 184429236.42
Three. Impairment Reserves
1. Balance at Beginning of Year
2. Increased Amounts in the Current Period
3. Decreased Amounts in the Current Period
4. Balance at End of Period
Four. Book Value
1. Book Value at End of Period 437452.63 313429488.68 48955900.62 362822841.93
2. Book Value at Beginning of Year 517322.19 317971811.40 52094476.29 370583609.88
14.Goodwill
(1) Original Book Value of Goodwill
Increase in the Decrease in the
Name of Invested Entity or Balance at Current Period Current Period Balance at End of
Items Forming Goodwill Beginning of Year Formed by Period
Enterprise Merger Disposal
Acquire stock shares of
Zhejiang Xiaowangzi Food Co. 191394422.51 191394422.51
Ltd.In total 191394422.51 191394422.51
(2) Relevant information about the group or groups of assets that include goodwill
Name Composition and Basis of Group of Assets Operation Segment and
Whether
or Group belongs Basis belongs consistent withPrior Period
219Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Acquire stock shares of Group of Assets comprises of Goodwillrelated assets the flow-in cash generated Assets mainly used foodZhejiang Xiaowangzi ， processing belong to theFood Co. Ltd. shall be independent of those by other
Yes
Food Processing Segment
group assets.
(3) Goodwill impairment provision
Increase in the Decrease in the
Name of Invested Entity or Balance at Current Period Current Period Balance at End of
Items Forming Goodwill Beginning of Year Accrual Others Disposal Others Period
Acquire stock shares of
Zhejiang Xiaowangzi Food 65762029.16 65762029.16
Co. Ltd.In total 65762029.16 65762029.16
15.Long-term Unamortized Expenses
Balance at Increased Amortized Other
Items Beginning of Amounts in the Amounts in the reductions Balance at End
Year Current Period Current Period of Period
Workshop renovation
and maintenance 502702.94 251351.46 0.00 251351.48
House renovation and
remodeling 2859943.90 306639.42 1638955.09 914349.39
Total 3362646.84 557990.88 1638955.09 1165700.87
16.Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Deductible Deductible
Temporary Deferred Income Temporary Deferred Income
Difference Tax Assets Difference Tax Assets
Asset Impairment Reserves 50026256.49 12506564.12 50152256.47 12538064.11
Assets depreciation reserves 1543615.94 385903.99 2669362.22 667340.56
Valuation of financial
instruments and derivative 5722767.88 1430691.97 3572045.80 893011.45
financial instruments
Lease liabilities 159860021.92 39965005.48 166205889.35 41551472.34
Deductible losses 105237763.29 26309440.82 74064292.97 18516073.24
Deferred Income 14835521.81 3708880.45 14835521.81 3708880.45
Wages payable 5321134.00 1330283.50 5321134.00 1330283.50
Contract Rebates 1987981.50 496995.38 1987981.50 496995.38
In total 344535062.83 86133765.71 318808484.12 79702121.03
(2) Details of Deferred Income Tax Liabilities Not Being Offset
220Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Balance at End of Period Balance at Beginning of Year
Items Taxable Temporary Deferred Income Tax Taxable Temporary Deferred Income Tax
Difference Liabilities Difference Liabilities
Valuation of Financial
Instruments and Derivative 36548345.57 9137086.39 6320422.21 1580105.55
Financial Instruments
Use right assets 160920211.56 40230052.89 165115356.93 41278839.23
Valuation and appreciation of
assets in merger of enterprises 111372664.00 27843166.00 116528641.92 29132160.48
not under the same control
Total 308841221.13 77210305.28 287964421.06 71991105.26
(3) Details of Deferred Income Tax Liabilities after Offset
Ending Balance Beginning Balance
Item Deferred Tax Assets Net Deferred Tax Deferred Tax Assets Net Deferred Tax
Offsetting Amount Assets (After Assets (AfterOffsetting) Offsetting Amount Offsetting)
I. Deferred tax
assets 49367139.28 36766626.43 42858944.78 36843176.25
II. Deferred
tax liabilities 49367139.28 27843166.00 42858944.78 29132160.48
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible temporary differences 58415648.60 58415648.60
Deductible loss 369280702.05 327283562.80
In total 427696350.65 385699211.40
(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
2025——
202630673698.3229295158.76
202763299317.7060063347.60
202881990072.9983640475.86
2029125853264.3272064767.83
203054725193.6082219812.75
203112739155.12
Total 369280702.05 327283562.80
17.Other Non-current Assets
Closing Balance Opening Balance
Items Book Provision for Book Provision for
balance impairment Book value balance impairment Book value
221Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Prepaid Long-Term
Asset Purchases 8742892.22 8742892.22 9281092.22 9281092.22
Total 8742892.22 8742892.22 9281092.22 9281092.22
18.Asset items where the ownership or the right of use is restricted
Ending-period
Items
Book balance Book value Type of restriction Restriction Situation
Monetary Funds 24863023.91 24863023.91 Guarantee Deposit Guarantee Deposit
Fixed Assets 21719189.02 4483531.03 Legal Freeze Legal Freeze
Investment Real Estates 19594735.46 4350926.15 Legal Freeze Legal Freeze
In total 66176948.39 33697481.09 / /
(Continued)
Beginning-period
Item
Book balance Book value Type of restriction Restriction Situation
Monetary Funds 33411335.64 33411335.64 Guarantee Deposit Guarantee Deposit
Fixed Assets 21719189.02 4167145.29 Legal Freeze Legal Freeze
Investment Real Estates 19594735.46 4520056.97 Legal Freeze Legal Freeze
In total 74725260.12 42098537.90 / /
19.Short-term Borrowings
Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Credit loans 709701803.20 1136260975.85
In total 709701803.20 1136260975.85
Among them: Interest
Payable 29803.20 544943.05
20.Derivative Financial Liability
Item Closing Balance Opening Balance
Changes in fair value of hedging instruments 9953208.15 3815280.00
Total 9953208.15 3815280.00
21.Notes Payable
Type Closing Balance Opening Balance
Bank Acceptance 56649763.00
Total 56649763.00
222Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
22.Accounts Payable
Breakdown of Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
Payable for Materials 51435019.17 47834239.89
Payable for Engineering 12404701.46 13248688.94
Payable for Equipment 3275665.83 28140.00
Consulting Service Fee 920480.25
Leasing Fee 2479733.33
Storage Fee 2244117.33 2073066.67
Others 2807004.71 2169241.37
In total 74646241.83 66273857.12
23.Advances from Customers
Breakdown of Advances from Customers
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1222673.11 1670875.73
In total 1222673.11 1670875.73
24.Contract liabilities
Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Payment for goods 359063926.94 275724804.27
In total 359063926.94 275724804.27
25.Wages Payable
(1) Wages Payable Presented
Items Balance at Increase in the Decrease in the Balance at End ofBeginning of Year Current Period Current Period Period
Short-term Compensation 25193585.29 121479478.45 134409325.29 12263738.45
After-service Welfare- Set
up ESP liabilities 2905841.55 18663880.40 18167678.60 3402043.35
Dismission Welfare 1254029.00 814181.41 814181.41 1254029.00
Others
In total 29353455.84 140957540.26 153391185.30 16919810.80
223Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
(2) Short-term Compensation Presented
Items Balance at Increase in the Decrease in the Balance at End ofBeginning of Year Current Period Current Period Period
1. Wage Bonus Allowance
and Subsidy 20802706.29 95150035.15 108111551.58 7841189.86
2. Welfare Expense of
Employee 20325.50 2235604.20 2062421.35 193508.35
3. Social Insurance Expense 1086115.79 11396200.07 11228226.06 1254089.80
Among them: Medical
Insurance Premiums 1018823.02 10667052.73 10523492.15 1162383.60
Industrial Injury
Insurance Premiums 67292.77 646973.94 622560.51 91706.20
4. Housing Provident Funds 140878.50 8471124.50 8463972.00 148031.00
5. Labor Union Expense and
Personnel Education Fund 2674739.71 1917262.77 2120752.73 2471249.75
6.Other Short-term wages 468819.50 2309251.76 2422401.57 355669.69
In total 25193585.29 121479478.45 134409325.29 12263738.45
(3) Stated Drawings Plan Presented
Items Balance at Increase in the Decrease in the Balance at End ofBeginning of Year Current Period Current Period Period
1. Basic Pension
Insurance 2774741.58 17082810.80 16818093.10 3039459.28
2. Unemployment
Insurance Expense 57080.67 538365.52 530763.83 64682.36
3. Enterprise Annuity
Charges 74019.30 1042704.08 818821.67 297901.71
Total 2905841.55 18663880.40 18167678.60 3402043.35
26.Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
VAT 2566202.27 29296775.82
Corporate Income Tax 2664352.62 2223946.93
Urban Maintenance and Construction Tax 146686.13 1452582.88
House Property Tax 1018604.75 1769241.11
Land Use Tax 419871.83 1093470.51
Individual Income Tax 54454.81 609990.36
Educational Surtax (Including local educationalsurcharge 154236.63 1430441.63）
Other Taxes 159123.85 328288.94
In total 7183532.89 38204738.18
27.Other Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
224Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Interest Payable 20000000.00 20000000.00
Other Accounts Payable 56606599.09 42493915.38
In total 76606599.09 62493915.38
(1) Interest Payable
Items Balance at End of Period Balance at Beginning of Year
Interest on intercompany loans 20000000.00 20000000.00
In total 20000000.00 20000000.00
(2) Other Accounts Payable
Other Accounts Payable by Nature of Funds Presented
Items Balance at End of Period Balance at Beginning of Year
Related party amounts within the group 867695.89 558574.25
Accounts Payable of Guaranteed Deposit and Deposit 28852038.51 26526699.27
Accounts Payable of Intercourse Funds 19659919.80 9082778.49
Personal Intercourse Funds 504075.78 769967.93
Various Insurances of Employee 3542507.34 3902761.56
Others 3180361.77 1653133.88
In total 56606599.09 42493915.38
28.Non-current Liabilities due Within One Year
Item Closing Balance Opening Balance
Long-term borrowings due within one year 67000000.00 68000000.00
Bonds payable due within one year 299925000.00 299700000.00
Lease Liability due within one year 4445042.32 5284537.08
Long-term borrowings interest due within one year 455213.61
Bond interest payable due within one year 7200000.00 2880000.00
Total 378570042.32 376319750.69
29.Other Current Liability
Item Closing Balance Opening Balance
Sales Tax Payable to be Written Off 34663083.60 34674941.36
Fair value changes of hedged items 2125165.80
Total 34663083.60 36800107.16
225Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
30.Long-term borrowings
Item Ending Book Value Amount Due Within OneYear Ending Balance
Credit Loans 640500000.00 67000000.00 573500000.00
Total 640500000.00 67000000.00 573500000.00
（Continuing Table）
Item Beginning Book Value Amount Due Within OneYear Beginning Balance
Credit Loans 644500000.00 68000000.00 576500000.00
Total 644500000.00 68000000.00 576500000.00
31.Bonds Payable
(1) Bonds payable
Item Closing Balance Opening Balance
Corporate Bond 0.00 0.00
Total 0.00 0.00
Note: The aforementioned bonds payable have been converted into non-current liabilities due within one
year.
(2) Details of Bond payable (not including other financial instruments i.e. the Financial Liabilities
preference shares perpetuities etc)
Coupon Amount Due
Name of Bond Face Value rate Issue Date Bond Opening
% Term
Issuing Amount Balance Within One
（ ） Year
23 Jingliang
01 Corporate 300000000.00 2.88 21Aug-22Aug 2023 3 years 300000000.00 299700000.00 299700000.00Bond
Total ∕ ∕ ∕ ∕ 300000000.00 299700000.00 299700000.00
(Continued)
Name of Interest Amortization of Repayment in Amount Due
Bond accrued at Premiums or
Whether
face value Discounts the Period
Ending Balance Within One
Year in default
23 Jingliang
01 Corporate 4320000.00 -225000.00 4320000.00 299925000.00 299925000.00 No
Bond
Total 4320000.00 -225000.00 4320000.00 299925000.00 299925000.00 ∕
32.Lease Liability
Item Closing Balance Opening Balance
Lease Payment 191831027.62 201310577.51
226Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Less: Unrecognized Financing Cost 58351773.96 60574401.86
Reclassified as non-current liabilities due within One year 4445042.32 5284537.08
Net Lease Liabilities 129034211.34 135451638.57
33.Long-termWage Payable
Long-term wage payable presented
Items Balance at End of Period Balance at Beginning of Year
Other Long-term Welfare 5259134.00 5321134.00
In total 5259134.00 5321134.00
34.Provisions
Item Ending Balance Beginning Balance Reason for Formation
Pending Litigation 22650893.15 22650893.15
Total 22650893.15 22650893.15 ——
35.Deferred Income
Items Balance at Beginning Increase in the Decrease in the Balance at End of Cause ofof Year Current Period Current Period Period Formation
Government
Subsidy 53936649.47 913873.08 53022776.39
In total 53936649.47 913873.08 53022776.39 --
36.Share Capital
Changes This Period (+ -)
Shareholder Beginning Issuance of Capital
Name Balance New Bonus Reserve
Ending Balance
Shares Shares Conversion to
Other Subtotal
Shares
Total Shares 726950251.00 726950251.00
37.Capital Reserves
Items Balance at Increase in the Decrease in the Balance at End ofBeginning of Year Current Period Current Period Period
Capital Premium (Stock Premium) 1435204343.74 1435204343.74
Other Capital Reserves 248469614.28 248469614.28
In total 1683673958.02 1683673958.02
38.Other Comprehensive Incomes
Current Period Amount
Item BeginningBalance Tax Before Less: Amount Less: Amount Less:
Period Transferred from Transferred from IncomeOther Other Tax
227Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Current Period Amount
Item BeginningBalance Comprehensive Comprehensive Expenses
Income to Profit Income to
or Loss Retained Earnings
1.Other Comprehensive
Income Not Reclassifiable to
Profit or Loss
2.Other Comprehensive
Income Reclassifiable to Profit 1059574.92 -922132.87
or Loss
Foreign Currency Translation
Differences 1059574.92 -922132.87
Total other comprehensive
income 1059574.92 -922132.87
(Continuing Table)
Current Period Amount
Item Income Tax After-Tax Amount After-Tax Amount Ending Balance
Effect for the Attributable to the Attributable to
Period Parent Company Minority Shareholders
I. Other Comprehensive
Income that will not be
reclassified to profit or loss.II. Other Comprehensive
Income that will be -922132.87 -922132.87 137442.05
reclassified to profit or loss.Foreign Currency
Translation Differences -922132.87 -922132.87 137442.05
Total Other Comprehensive
Income -922132.87 -922132.87 137442.05
39.Surplus Reserves
Items Balance at Increase in the Decrease in the Balance at End ofBeginning of Year Current Period Current Period Period
Statutory Surplus Reserves 107066319.34 107066319.34
Free Surplus Reserves 37634827.93 37634827.93
In total 144701147.27 144701147.27
40.Undistributed Profit
Items Amounts in the Amounts in theCurrent Period Prior Period
Adjustment on undistributed profit at end of last year 307028112.53 593483706.16
Adjusted undistributed profit at beginning of period 307028112.53 593483706.16
Add: Net profit attributable to parent company in the current period 8032416.00 17950174.11
Less: Withdrawal statutory surplus reserves
Common stock dividends payable 13085104.52
Undistributed profit at end of period 315060528.53 598348775.75
228Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
41.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
Main Business 3105747301.45 2937877316.64 4199224826.21 3963118743.02
Other Business 9179420.06 2082600.72 8921429.65 9643983.54
In total 3114926721.51 2939959917.36 4208146255.86 3972762726.56
(2) Breakdown of operation revenue and operation cost
Contract Category Operation Revenue Operation Cost
Industry and Business-classified
Including: Oil 2779531755.63 2674595949.01
Food 326215545.82 263281367.63
Others 9179420.06 2082600.72
Region-classified
Including: North China 2006839348.50 1905445799.55
East China 610958073.14 544557979.05
Northeast China 184134193.58 161273137.30
Central China 304079041.36 320129787.60
South China 192847.96 100343.03
Others 8723216.97 8452870.83
Time for the transfer of commodities classified
Including: Revenue recognition at a given time 3114926721.51 2939959917.36
Sales channel-classified
Including: Direct 1338798081.27 1274023682.24
Distribution 1766949220.18 1663853634.40
Others 9179420.06 2082600.72
In total 3114926721.51 2939959917.36
(3) Performance obligations explanation
Nature of the Whether Expected Quality assuranceTime of Important commitment to main refund to the category providedItem performance payment transfer responsible customer by by the Companyobligations terms commodities by
the company person
the and relevant
Company obligations
Processing and Upon Mainly Mainly sales of Statutory
sales of oil and delivery payment oil and oilseeds Yes No guarantees
229Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
oilseeds as well first snack food
as foodstuffs
Note: Company and distributors adopt the payment first method certain credit lines offered by the
company to partial distributors with long-term cooperation and good reputation. For settlement partial direct
sale customers and supermarkets shall be proceeded on agreed payment terms in accordance with the contract
(4) Amortization on remaining performance obligations explanation
Item Amount
Revenue corresponding to signed contracts that have not yet been fulfilled or
completed by the end of this reporting period 359063926.94
—Expected revenue to be recognized in the second half of 2025 359063926.94
42.Tariff And Annex
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 2365695.20 2336002.81
House Property tax 3560411.25 3201504.21
Land Use Tax 1092386.60 1095143.03
Educational Surtax 1922118.69 1680923.01
Vehicle and Vessel Use Tax 14481.36 15630.64
Environmental Protection Fees 14074.66 24137.85
Stamp Tax 1998681.13 3135946.35
Other Taxes and Fees 18732.26 152497.75
In total 10986581.15 11641785.65
43.Sales Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 29849487.54 28326451.00
Warehousing and Storage Fees 6307755.74 11687876.61
Depreciation Expense 8324479.50 8459887.59
Sales Service Expenses 4884120.44 4512944.89
Material Consumption and Losses 1564776.15 2284577.01
Travel Expenses 1278843.40 1875858.90
Lease Expenses 3340344.65 2635934.24
Repair Expenses 448748.85 29374.44
Utilities 19057.28 17747.30
Vehicle Expenses 99958.80 274057.31
230Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Items Amounts in the Current Period Amounts in the Prior Period
Packaging Expenses 97759.42 92638.28
Inspection and Testing Expenses 145231.37 109553.15
Loading and Unloading Expenses 22641.51
Other Expenses 5924790.12 5377912.04
Total 62285353.26 65707454.27
44. Administrative Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 48824044.66 52072974.98
Depreciation Expense 15424995.91 12740675.81
Amortization of Intangible Assets 3237825.44 2184420.65
Office Expenses 2971012.32 4175105.34
Lease Expenses 2568847.28 4405913.08
Fees for Engaging Intermediaries 5091208.93 4957635.33
Repair Expenses 528237.13 2235016.64
Security and Protection Expenses 254259.12 609705.94
Travel Expenses 285635.24 454431.95
Information and Network Expenses 1158059.77 1012558.42
Insurance Expenses 480616.60 467997.59
Business Reception Expenses 274191.49 511659.59
Environmental Protection Expenses 656670.88 570470.69
Amortization of Prepaid Expenses 122370.01 890307.28
Vehicle Expenses 867567.19 765613.82
Material Consumption 276283.99 270245.78
Labor Protection Expenses 28364.95 39875.97
Conference Expenses 15538.47 32219.30
Other Expenses 3389183.75 3357275.97
In total 86454913.13 91754104.13
45. Research and Development Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Salary 4472735.18 4682957.00
Material fee 2872151.32 3455845.79
Depreciation and amortization 192972.02 339179.02
231Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Fuel and Power Fee 188050.26 485965.91
Transportation Expense 25607.64 21855.24
Equipment Cost 1238.94
Others 235374.49 214439.07
In total 7986890.91 9201480.97
46. Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 23857714.79 31665713.92
Less: Interest Income 5794866.63 5319761.53
Fees and Charges 105402.24 2467784.21
Exchange Losses 209622.35 -321306.95
Less: Exchange Gains
Other
In total 18377872.75 28492429.65
47. Other Profits
Items Amounts in the Current Period Amounts in the Prior Period
Government Subsidy 6058938.69 5707687.74
Return of Service Charges of Withholding
Individual Income Tax 117300.02 159820.16
In total 6176238.71 5867507.90
48. Investment Income
The sources of generating investment income Amounts in the Current Period Amounts in the Prior Period
Long-term investment income recognized
under equity method 4266119.02 3572053.10
In total 4266119.02 3572053.10
49. Profits on Changes in Fair Value
Source of generating profits on changes in fair
value Amounts in the Current Period Amounts in the Prior Period
Trading Financial assets 17105743.14 -10955589.95
Including: income with changes in fair value
generated by derivative financial instruments 17105743.14 -10955589.95
In total 17105743.14 -10955589.95
50. Credit impairment loss
Items Amounts in the Current Period Amounts in the Prior Period
232Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Accounts receivable bad debt loss 126000.00 52.30
Total 126000.00 52.30
51. Loss fromAsset Devaluation
Items Amounts in the Current Amounts in the PriorPeriod Period
Loss on Inventory Price Loss & Impairment loss on contract
performance costs -37303.33
In total -37303.33
52. Assets Disposal Income
Amounts in the Current Amounts in the Amounts Charged toItems Period Prior Period Non-recurring Profit andLoss
Gains or losses on disposal of fixed assets 215035.93 294.25 215035.93
Gains or losses on disposal of intangible
assets 16255536.24
Gains or losses resulting from the
termination or modification of a long- 99273.58 99273.58
term lease contract
In total 314309.51 16255830.49 314309.51
53. Non-operating Income
Items Amounts in the Amounts in the
Amounts Charged to
Current Period Prior Period Non-recurring Profit andLoss
Gain from the destruction or scrapping of
non-current assets 22123.89 22123.89
Gains from inventory 9911.50 9911.50
Fines liquidated damages late fees
compensation income 69938.47 80377.36 69938.47
Payable amounts not required to be paid 1218.79 11181.77 1218.79
Others 191889.66 79874.76 191889.66
In total 295082.31 171433.89 295082.31
54. Non-operating Expenses
Items Amounts in the Amounts in the
Amounts Charged to
Current Period Prior Period Non-recurring Profit andLoss
Loss from damage or scrapping of non-
current assets 42978.89 6412.23 42978.89
Losses from inventory 132791.43 132791.43
Liquidated damages compensation
Expenses 3291.08 16599412.28 3291.08
Others 199571.11 39274.54 199571.11
Total 378632.51 16645099.05 378632.51
233Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
55. Income Tax Expenses
(1) List of Income Tax Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Current Income Tax Expense 8460532.28 4482306.11
Deferred Income Tax Adjustment -1212444.66 4646691.26
Total 7248087.62 9128997.37
(2) Accounting Profit and Income Tax Expense Adjustment Process
Items Amounts in the CurrentPeriod
Total Profit 16780053.13
Income Tax Expense Calculated at Statutory/Applicable Tax Rate 3537513.27
Effect of Different Tax Rates for Subsidiaries -478892.28
Effect of Adjustments to Prior Period Income Tax 757.99
Effect of Non-Taxable Income
Effect of Non-Deductible Costs Expenses and Losses
Effect of Using Unrecognized Deferred Tax Assets on Deductible Losses from Previous
Periods -3151798.11
Effect of Unrecognized Deferred Tax Assets on Deductible Losses in the Current Period 5132339.87
The impact of the deductible temporary differences that have not yet been recognized as
deferred income tax assets in this period
Effect of Small Enterprise Tax Preferences -11231.76
Effect of Non-Taxable Investment Income -1066529.76
Reversal of the impact of the initial recognition of deferred income tax assets 3254648.33
Others 31280.08
Income Tax Expenses 7248087.62
56. Other comprehensive income items and their income tax impact and transferred to profit and
loss
See details of‘Appendix V Notes on Items in Consolidated Financial Statements 38. Other Comprehensive
Incomes’.
57. Notes to items related cash flow statement
(1) Cash related to operating activities
A. Receiving other cash related to operation activities
234Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 275337.14 267833.80
Security Deposit 281070975.05 1236244410.55
Intercourse Funds of Other Units 67285615.88 4408893.18
Interest Income 5925907.04 5224074.75
Non-operating Income and other
income 1730121.07 595339.94
Collections for Others 191303195.95 2288086889.51
Others 9282534.79 11976811.74
Total 556873686.92 3546804253.47
B. Cash Paid for Other Operating Activities
Items Amounts in the Current Period Amounts in the Prior Period
Expense Payments 17308641.15 35722072.77
Other Unit Transactions 10848156.10 9552731.60
Related Party Transactions 2861578.22 3084529.27
Petty Cash 159110.00 61000.00
Deposits and Guarantees 532798376.85 1148043679.45
Collections for Others 191303195.95 2288086889.51
Others 2144953.45 78051269.43
Total 757424011.72 3562602172.03
(2) Cash related to financing activities
A. Other cash paid related to financing activities
Items Amounts in the Current Period Amounts in the Prior Period
Lease payment amount 9474709.30 679200.00
In total 9474709.30 679200.00
B. Details of various liability change from Financing Activities
Beginning Increase in Current Period Decrease in Current PeriodItem Balance Cash Non-cash Non-cash Ending Balance
Movement Movement Cash Movement Movement
Short-
term 1136260975.85 724049105.70 9358577.63 1159966855.98 0.00 709701803.20
borrowing
Long-
term 644955213.61 0.00 0.00 4455213.61 0.00 640500000.00
borrowing
Bond
Payable 302580000.00 0.00 4545000.00 0.00 0.00 307125000.00
235Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Lease
Liability 140736175.65 0.00 2222627.90 9479549.89 0.00 133479253.66
Interest
Payable 20000000.00 0.00 0.00 0.00 0.00 20000000.00
Dividends
Payable 0.00 0.00 0.00 0.00 0.00
Total 2244532365.11 724049105.70 16126205.53 1173901619.48 0.00 1810806056.86
58. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Supplementary Materials Amounts in the Amounts in theCurrent Period Prior Period
1. Adjusting net accounting profit to operating cash flow —— ——
Net Profit 9531965.51 17686162.61
Add: Assets Impairment Loss 0.00 37303.33
Credit impairment loss -126000.00 -52.30
Fixed Assets Depreciation Oil-and-gas Assets Depreciation and Productive
Biological Assets Depreciation 47109780.21 48411136.06
Right-of-use assets depreciation 4408429.81 7520983.79
Amortization of Intangible Assets 7760767.95 8408289.96
Amortization of Long-term Deferred Expenses 559567.92 890307.28
Losses on Disposal of Fixed Assets Intangible Assets and Other Long-term Assets
(Fill in profit with symbol “ ”) -314309.51 -16255830.49－
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) 20855.00 6412.23
Losses on Changes in Fair Value (Fill in profit with symbol “－”) -17105743.14 10955589.95
Financial Expenses (Fill in profit with symbol “－”) 18062848.16 26345952.39
Investment Losses (Fill in profit with symbol “－”) -4266119.02 -3572053.10
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) 76549.82 4161616.67
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) -1288994.48 -803919.89
Decrease in Inventory (Fill in increase with symbol “－”) -139163075.61 -244476596.39
Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) 456403827.61 -307836531.87
Increase in Items of Operating Payables (Fill in decrease with symbol “－”) 8358406.65 670957522.84
Others
Net Cash Flows from Operating Activities 390028756.88 222436293.07
2. Major investment and financing activities that do not involve cash payments —— ——
3. Net change conditions in cash and cash equivalents —— ——
Cash balance at end of period 1665268161.00 1729939169.19
Less: cash balance at beginning of period 1788311181.44 1395519746.77
Add: The ending balance of cash equivalents
236Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Less: Initial balance of cash equivalents
Cash and cash equivalent net increase -123043020.44 334419422.42
(2) Composition of cash and cash equivalents
Items Balance at End of Balance at Beginning ofPeriod Period
One. Cash 1665268161.00 1788311181.44
Including: Cash on hand 8617.41 10241.76
Bank deposit available for payment at any time 1477936692.08 1725447216.11
Other currency funds available for payment at any time 187322851.51 62853723.57
Two. Cash Equivalents
Three. Balance of Cash and Cash Equivalents at End of Period 1665268161.00 1788311181.44
59. Monetary Items of Foreign Currency
Monetary Items of Foreign Currency
Items Balance of Foreign Currency at End Exchange Rate Balance of Converting toof Period Convert RMB at End of Period
Monetary fund —— —— 26956990.16
Including: US Dollars 3957918.95 6.8109 26956990.16
60. Lease
(1) As Lessee
During the reporting period the short-term lease expenses that were accounted for and treated as part of
the current period's profit and loss were 5796358.31 yuan.
(2) Operating lease as lessor
Item Leasehold income Including: Income related to variable lease payments notincluded in lease income
Leasehold income 1579748.12
Total 1579748.12
VI Research and Development Expenses
Disclosed by nature of expenses
Item Amount in current period Amount in prior period
Salary 4472735.18 4682957.00
Material expenses 2872151.32 3455845.79
237Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Depreciation and Amortization Fee 192972.02 339179.02
Fuel & Power expenses 188050.26 485965.91
Travel expenses 25607.64 21855.24
Equipment expenses 1238.94
Others 235374.49 214439.07
Total 7986890.91 9201480.97
Including: Expensed expenditure 7986890.91 9201480.97
Capitalized expenditure
VII Change in Consolidation Scope
There were no changes in the scope of consolidation for the company during the reporting period.VIII Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
Registered Shareholding Ratio
Principle (%)Name of Subsidiary Place of Capital（In ten Registered Nature of Mode ofBusiness thousands Place Business Direct Indirect AcquisitionYuan）
Jingliang (Tianjin) Agricultural
Grain and Oil Tianjin 56000.00 Tianjin Product and By Merger under
Industry Co. Ltd. Product
70.00 the same control
Processing
Beijing Jingliang Oil Beijing 5000.00 Beijing Grain and oil 100.00 Merger underand Fat Co. Ltd. trade the same control
Beijing Guchuan Grain and oil Merger under
Edible Oil Co. Ltd. Beijing 12558.46 Beijing trade 100.00 the same control
Agricultural
Beijing Eisen-Lubao Beijing 5050.00 Beijing Product and By Merger underOil Co. Ltd. Product 100.00 the same control
Processing
Beijing Tianweikang
Oil Distribution Beijing 500.00 Beijing Warehousing 100.00 Merger under
Center Co. Ltd. the same control
Beijing Guchuan
Bread Food Co. Ltd. Beijing 5550.00 Beijing Food Processing 100.00
Merger under
the same control
Zhejiang Xiao Wang Combination
Zi Food Co. Ltd. Hangzhou 5156.00 Hangzhou Food Processing 17.6794 77.2072 not under samecontrol
Hangzhou Lin'an Combination
Xiaotianshi Food Hangzhou 4900.00 Hangzhou Food Processing 17.6794 77.2072 not under same
Co. Ltd. control
Liaoning Xiao Wang Combination
Zi Food Co. Ltd. Liaoning 3000.00 Liaoning Food Processing 17.6794 77.2072 not under samecontrol
Linqing Xiao Wang Combination
Zi Food Co. Ltd. Linqing 2132.50 Linqing Food Processing 17.6794 77.2072 not under samecontrol
238Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Registered Shareholding Ratio
PrincipleName of Subsidiary Place of Capital（In ten Registered Nature of(%) Mode ofBusiness thousands Place Business AcquisitionYuan Direct Indirect）
Hangzhou Lin'an
Chunmanyuan Combination
Agricultural Hangzhou 600.00 Hangzhou Food Processing 17.6794 77.2072 not under same
Development Co. control
Ltd.Jingliang (Singapore)
International Trade Singapore 643.35 Singapore Grain trade 100.00 Invest in the
Co. Ltd. establishment
Beijing Jingliang
Gubi oil and grease Beijing 5000.00 Beijing Grain and oil 100.00 Invest in the
co. LTD trade establishment
Beijing Jingliang Beijing 105658.96 Beijing Investment 100.00 Merger underFood Co. Ltd. management the same control
Jingliang
(Caofeidian)
Agricultural Tangshan 5000.00 Tangshan Plantation 51.00 Invest in the
Development Co. establishment
Ltd.Jingliang (Yueyang)
Grain and Oil Hunan 68000.00 Hunan Agriculturalproducts 65.00
Invest in the
Industry Co. Ltd. establishment
Jingliang (Beijing)
Bakery&Foods Co. Beijing 9010.00 Beijing Commercial Invest in the
Ltd. service
100.00 establishment
Jingliang (Yangpu) Agricultural
Grain and Oil Hainan 50000.00 Hainan Product and By Invest in the
Industry Co. Ltd. Product
65.00 establishment
Processing
(2) Major non-wholly-owned subsidiaries
Shareholding Profit And Loss Dividends Distributed Balance of MinorityName of Ratio of Minority Attributable to Minority to Minority Shareholder's EquitySubsidiary Shareholders (%) Shareholders for the Shareholders for the at the End of theCurrent Period Current Period Period
Jingliang
(Tianjin) Grain
and Oil Industry 30.00 1135549.68 160564734.17
Co. Ltd.Zhejiang Xiao
Wang Zi Food 5.11 1410643.79 187467028.21
Co. Ltd.
(3) Important financial information on major non-wholly-owned subsidiaries
Name of Closing Balance
Subsidiary Current Assets Non-current Current Non-currentAssets Total Assets Liabilities Liabilities Total Liabilities
Jingliang
(Tianjin)
Grain and
Oil 1458862579.50 635343255.31 2094205834.81 948109808.64 618920245.59 1567030054.23
Industry
Co. Ltd.Zhejiang
Xiao Wang
Zi Food 531619995.82 289373266.78 820993262.60 59206093.86 12410190.18 71616284.04
Co. Ltd.
239Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
(Continued)
Name of Opening Balance
Subsidiary Current Assets Non-current Total Assets Current Non-currentAssets Liabilities Liabilities Total Liabilities
Jingliang
(Tianjin)
Grain and
Oil 1625607063.73 661343555.22 2286950618.95 1140764804.72 622795199.25 1763560003.97
Industry
Co. Ltd.Zhejiang
Xiao Wang
Zi Food 506824937.95 299866798.65 806691736.60 65321476.86 12472190.18 77793667.04
Co. Ltd.
(Continued)
Amount incurred in the current period
Name of Subsidiary
Operating Income Net Profit Total Comprehensive Cash Flow fromIncome Operating Activities
Jingliang (Tianjin) Grain and
Oil Industry Co. Ltd. 1627284056.61 3785165.60 3785165.60 46197238.16
Zhejiang Xiao Wang Zi Food
Co. Ltd. 280967376.77 20478909.00 20478909.00 50314064.79
(Continued)
Amount incurred in the prior period
Name of Subsidiary
Operating Income Net Profit Total Comprehensive Cash Flow fromIncome Operating Activities
Jingliang (Tianjin) Grain and
Oil Industry Co. Ltd. 2283354202.27 -2111964.11 -2111964.11 475342154.37
Zhejiang Xiao Wang Zi Food
Co. Ltd. 306407328.72 16975587.89 16975587.89 24733560.18
2. Equity in Joint Ventures or Associates
(1) Important Joint Ventures or Associates
Name of Joint Venture Principle
Shareholding Accounting Treatment
Place of Registered Nature of Ratio (%) Methods foror Associates Business Place Business Direct Indirect Investment in JointVentures or Associates
Beijing CHIA TAI
Feedmill. Company Beijing Beijing Manufacturer 50.00 Equity method
Limited
China Grain Reserves
(Tianjin) Warehousing Tianjin Tianjin Transportation
and Logistics Co. Ltd. and warehousing
30.00 Equity method
(2) Important financial information on major joint ventures
Closing Balance/Current Amount Opening Balance/Last Term
Item AmountBeijing CHIA TAI Feedmill. Beijing CHIA TAI Feedmill.Company Limited Company Limited
Current assets 349153468.39 345873214.96
240Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Closing Balance/Current Amount Opening Balance/Last Term
Item AmountBeijing CHIA TAI Feedmill. Beijing CHIA TAI Feedmill.Company Limited Company Limited
Including: cash and cash equivalents 5677169.83 6457544.94
Non-current assets 20063668.20 21173751.15
Total assets 369217136.59 367046966.11
Current liabilities 79461175.83 62689232.60
Non-current liabilities 4767880.22 25441151.16
Total liabilities 84229056.05 88130383.76
Shareholders' equity attributable to the
parent company 284988080.54 278916582.35
Share of net assets based on
shareholding ratio 142494040.27 139458291.18
Book value of equity investment in joint
ventures 142494040.27 139458291.18
Operating income 116585859.27 145099050.03
Financial costs -5384827.90 -4902972.72
Income tax expense 1873468.44 1811357.87
Net profit 5519032.19 5434073.60
Total comprehensive income 5519032.19 5434073.60
(3) Important financial information on major associates
Closing Balance/Current Amount Opening Balance/Last Term Amount
Item China Grain Reserves (Tianjin) China Grain Reserves (Tianjin)
Warehousing and Logistics Co. Ltd. Warehousing and Logistics Co. Ltd.Current assets 217950277.01 172497466.92
Non-current assets 1044802778.43 1026922117.36
Total assets 1262753055.44 1199419584.28
Current liabilities 159436731.91 158225065.61
Non-current liabilities 673166163.28 615145591.52
Total liabilities 832602895.19 773370657.13
Shareholders' equity attributable
to the parent company 430150160.25 426048927.15
Share of net assets based on
shareholding ratio 129045048.07 127814678.14
Book value of equity investment
in associates 129045048.07 127814678.14
Operating income 15455842.17 37308983.82
Net profit 4101233.10 1957673.09
Total comprehensive income 4101233.10 1957673.09
(4) Non-important aggregated financial information on joint ventures and associates
241Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Item Closing Balance/Current Opening Balance/Last TermAmount Amount
Associated enterprises：
Total of Investment Book Value
The total amounts calculated based on the
shareholding ratios of the following items
-- Net profit -17747.14
-- Total comprehensive income -17747.14
IX Government Subsidies
1.Liabilities Related to Government Grants
New Amount
Financial Beginning Grant
Recorded in Transferred Other
Statement Amount Non- to Other Changes Ending Asset/Income
Item Balance for the operating Income for for the Balance Related
Period Income for the Period Periodthe Period
Deferred
Revenue 53936649.47 913873.08 53022776.39
Total 53936649.47 913873.08 53022776.39 ——
2. Government subsidy included in current profit or loss
Accounting Subjects Current Amount Last Term Amount
Other income 6058938.69 5867507.90
Notes: None.X Risks Related to Financial Instruments
1. 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
* Book value of various financial assets on the balance sheet date
242Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
A. June 30 2026
Financial assets Financial assets measured Financial assets measuredFinancial asset measured at at fair value and the at fair value and theitems amortized cost changes recorded in changes recorded in other
Total
current profits and losses comprehensive income
Monetary funds 1690131184.91 1690131184.91
Derivative
financial assets 27829740.00 27829740.00
Accounts
receivables 79488640.32 79488640.32
Other receivables 294172448.75 294172448.75
Non-Current
Assets Due Within
One Year
Other current
assets 62395166.07 62395166.07
B. December 31 2025
Financial assets Financial assets
measured at fair measured at fair value
Financial asset Financial assets measured value and the and the changes
items at amortized cost changes recorded in recorded in other Total
current profits and comprehensive
losses income
Monetary funds 1821722517.08 1821722517.08
Derivative
financial assets
Accounts
receivables 98216373.71 98216373.71
Other receivables 173257419.17 173257419.17
Non-current assets
due within 1 year
Other current
assets 8705942.21 8705942.21
* Book value of various financial liabilities on the balance sheet date
A. June 30 2026
Financial liabilities
measured at fair
Financial liability items value and changes Other financial liability Total
included in current
profits and losses
Short-term borrowings 709701803.20 709701803.20
Derivative financial liabilities 9953208.15 9953208.15
Accounts payable 74646241.83 74646241.83
Other Payables 76606599.09 76606599.09
Other current liability
243Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Financial liabilities
measured at fair
Financial liability items value and changes Other financial liability Total
included in current
profits and losses
Long-term borrowings 573500000.00 573500000.00
Non-current liability due within one year 374125000.00 374125000.00
B. December 31 2025
Financial liabilities
Financial liability items measured at fair value and Other financialchanges included in current liability Total
profits and losses
Short-term borrowings 1136260975.85 1136260975.85
Derivative financial liabilities 3815280.00 3815280.00
Accounts payable 66273857.12 66273857.12
Other Payables 62493915.38 62493915.38
Other current liability 2125165.80 2125165.80
Long-term borrowings 576500000.00 576500000.00
Non-current liability due within one year 371035213.61 371035213.61
(2) Credit Risk
On June 30 2026 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.
244Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
The liquidity funds of the Company are deposited in banks and other financial institutions 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 2026
Item
Within One Year One To Five Years Above FiveYears Total
Short-term borrowings 709701803.20 709701803.20
Derivative financial
liability 9953208.15 9953208.15
Accounts payable 71437244.48 3208997.35 74646241.83
Other Payables 76606599.09 76606599.09
Long-term borrowings 573500000.00 573500000.00
Notes-payable
Non-current liability due
within one year 374125000.00 374125000.00
(Continued)
December 31 2025
Item
Within One Year One To Five Above FiveYears Years Total
Short-term borrowings 1136260975.85 1136260975.85
Derivative financial liability 3815280.00 3815280.00
Accounts payable 62935403.84 3338453.28 66273857.12
Other Payables 62493915.38 62493915.38
Long-term borrowings 576500000.00 576500000.00
Notes payable
Non-current liability due within
one year 371035213.61 371035213.61
(4) Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate
245Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
due to the change of market price. Market risk mainly includes interest rate risk foreign exchange risk and other
price risks such as equity instrument investment price risk.A. 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 2026 the Company's interest-bearing liabilities under floating rate contracts denominated in
RMB amounted to RMB 80000000.00 and those under fixed rate contracts denominated in RMB amounted to
RMB 1520500000.B. 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 of June
30 2026 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 Closing Balance Opening Balance
Monetary funds 26956990.16 25155525.27
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
246Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
current profits and losses and rights and interests is as follows:
Item Ending ForeignCurrency Balance Exchange Rate Ending Converted RMB Balance
Cash and Cash Equivalents —— —— 26956990.16
- USD 3957918.95 6.8109 26956990.16
(Continued)
Current period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
RMB Depreciation vs USD 5% 1347849.51 1347849.51
RMB Appreciation vs USD -5% -1347849.51 -1347849.51
2. Hedging
(1) The Company undertake risk management through hedging operation
The economic Expected Effects of risk
Corresponding risk Qualitative andquantitative relationship between
effective exposure
Item management strategy and the hedged project & achievement of from the
target information on relevant hedged risk relevanthedged risk instruments management hedgedobjectives activities
Qualitative: non- Expected Fair value or
Using the hedging credit risk cash flow due to the
function of futures including basis hedged risk of hedgedproject and relevant
Oil instruments to carry out risk substitute The target of
and hedging business risk supply-
hedging instruments
move in opposite expected risk Effectively
Oil effectively avoid the risk demand risk etc. management has avoid risk
Seeds of market price Quantitative:
direction been basically exposure
fluctuations in order to market price By the Changes with achieved
achieve stable fluctuation for the the same base variable
management hedged project or similar base
and instruments variable that iseconomically relevant
(2) The company conducts eligible hedging business and applies hedging accounting
Hedging Adjustments on
Book value related book value of hedged itemwhich has been recognized Hedging validity and
Effect of hedging
Item to the hedged Item sources of hedging accounting on the
and instruments in which comprises ofhedged item accumulated invalidity aspect
company's financial
statements
fair value
Hedging Risk Type
Commodity The correlation
price risk - between the hedged
Other current 62395166.07 62395166.07 items and hedging -50074040.14
assets instruments
Hedge category
Fair value The correlation
hedge - 27829740.00 between the hedged -50074040.14
247Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Hedging Risk Type
Derivative items and hedging
financial assets instruments
Fair value
hedge -
Derivative 9953208.15
financial
liabilities
XI Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
Fair Values at the End of the Period
Item First Level Fair Second Level Third Level
Value Fair Value Fair Value Total
Measurement Measurement Measurement
One. Continuous fair value measurement
Ⅰ. Transactional financial assets 90224906.07 90224906.07
1. Financial assets that are measured at fair
value and whose changes are included in the
current profits and losses 90224906.07 90224906.07
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Derivative financial assets 27829740.00 27829740.00
(4) Other current assets 62395166.07 62395166.07
2. Financial assets designated as fair value
through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
Ⅱ. Other debt investment
Ⅲ. Investment in other equity instruments
IV. Investment Properties
V. Biological Assets
Total assets continuously measured at
fair value 90224906.07 90224906.07
Ⅵ.Transactional financial liabilities 9953208.15 9953208.15
1. Financial liabilities measured at fair value
with changes included in current profits and 9953208.15 9953208.15
losses
Including: transactional bonds issued
derivative financial liabilities 9953208.15 9953208.15
other current liabilities
248Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Fair Values at the End of the Period
Item First Level Fair Second Level Third Level
Value Fair Value Fair Value Total
Measurement Measurement Measurement
others
2. Financial liabilities designated as fair
value through profit or loss
Total liabilities continuously measured at
fair value 9953208.15 9953208.15
2. Basis for determining market prices of continuous and non-continuous first level fair value
measurement items
The Company's Level 1 fair value measurement is based on the public contract quotations of the futures
exchange.XII Related Parties and Related Party Transactions
1. Parent Company of the Company
Registered Proportion of Proportion of Voting
Name of Parent Registered Nature of Capital Shares Held by Power Held by
Company Place Business (ten thousand Parent Company in Parent Company in
Yuan) the Company (%) the Company (%)
Beijing Grain Investment
Group Co. Ltd. Beijing Management 90000.00 39.68 39.68
Note: The ultimate controlling party is Beijing State-owned Capital Operation Management Co.Ltd.
2. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
3. Joint Ventures and Associates of the Company
See 2. Equity in Joint Ventures or Associates under Section VIII of the Notes for details.
4. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Grain Science Research Institute Co. Ltd. Controlled by the ultimate controlling party
Shanghai Shounong Investment Holding Co. Ltd. Controlled by the ultimate controlling party
Beijing Baijia Yi Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Dahongmen Wurou Lian Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Jinghua Tea Industry Co. Ltd. Controlled by the ultimate controlling party
249Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Name of Other Related Party Relationship with the Company
Beijing Ershang Meat Products Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Rice Industry Co. Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Hepingmen Vegetable Market Co. Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trading Co. Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Gurun Trade Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Taiyu Real Estate Co. Ltd. Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co. Ltd. Controlled by the ultimate controlling party
Beijing Liubiju Huairou Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Liubiju Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Nanjiao Agricultural Production and Operation Management
Co. Ltd. Controlled by the ultimate controlling party
Beijing Farm Produce Central Wholesale Market Co. Ltd. Controlled by the ultimate controlling party
Beijing Sanjiadian Grain Storage Co. Ltd. Controlled by the ultimate controlling party
Beijing Sanyuan Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Shenghua Sihé Asset Management 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 Haijun Xing Aquatic Products Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Longqing Xiadu Military Food Supply Co. Ltd. Controlled by the ultimate controlling party
Beijing Nanjiao Heyi Farm Co. Ltd. Controlled by the ultimate controlling party
Beijing Food Supply Bureau No. 34 Supply Department Co. Ltd. Controlled by the ultimate controlling party
Beijing Zhangxin Grain Storage Co. Ltd. Controlled by the ultimate controlling party
Beijing Shoucheng Shanshui Real Estate Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Animal Husbandry Development Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Development Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Food Group Finance Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Food Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Consumption Assistance and Double Innovation
Center Co. Ltd. Controlled by the ultimate controlling party
Beijing Aquatic Products Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Taiyu Property Management Co. Ltd. Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co. Ltd. Controlled by the ultimate controlling party
Hebei Anping Dahongmen Food Co. Ltd. Controlled by the ultimate controlling party
250Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Name of Other Related Party Relationship with the Company
Hebei Luanping Huadu Food Co. Ltd. Controlled by the ultimate controlling party
Hebei Shounong Modern Agricultural Technology Co. Ltd. Controlled by the ultimate controlling party
Huai'an Jingliang Lvgu Food Co. Ltd Controlled by the ultimate controlling party
Shanghai Sanyuan Dairy Co. Ltd Controlled by the ultimate controlling party
Tongliao Dacang Grain Trading Co. Ltd Controlled by the ultimate controlling party
China Meat Products Research Center Controlled by the ultimate controlling party
Beijing Changyang Farm Co. Ltd. Controlled by the ultimate controlling party
Beijing Nankou Farm Co. Ltd. Controlled by the ultimate controlling party
Chengde Sanyuan Co. Ltd. Controlled by the ultimate controlling party
Beijing ER SHANG Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Maisui Hotel Management Co. Ltd. Controlled by the ultimate controlling party
Chengde Sanyuan Xiaoya Cow Breeding Co. Ltd. Controlled by the ultimate controlling party
Beijing Ailafa Food Co. Ltd. Controlled by the ultimate controlling party
Wang Zhihé (Fujian) Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Beifang Jingtang Yangjiu Sales Co. Ltd. Controlled by the ultimate controlling party
Beijing Diandao Online Sales Co. Ltd. Controlled by the ultimate controlling party
Kaifeng Dahongmen Meat Products Co. Ltd. Controlled by the ultimate controlling party
Beijing Xing Shishang Trading Co. Ltd. Controlled by the ultimate controlling party
Beijing Xinderun Hotel Management Co. Ltd. Controlled by the ultimate controlling party
Beijing Taoshan Grain Storage Co. Ltd. Controlled by the ultimate controlling party
Beijing Jingshen Seafood Sales Co. Ltd. Controlled by the ultimate controlling party
Beijing Jingtang Dingsheng Trading Co. Ltd. Controlled by the ultimate controlling party
Beijing Shuangtong Huihe Agricultural Technology Development Co.Ltd. Controlled by the ultimate controlling party
Beijing Shounong Commercial Chain Co. Ltd. Controlled by the ultimate controlling party
Beijing Grain Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Huanong Materials Company Controlled by the ultimate controlling party
Beijing Beijiao Farm Co. Ltd. Controlled by the ultimate controlling party
Beijing Changhua Property Service Center Co. Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co. Ltd Controlled by the ultimate controlling party
Beijing Jingliang Logistics Co. Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Green Valley Trading Co. Ltd. Controlled by the ultimate controlling party
Beijing Cailanzi Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Xiangshan Conference Center Co. Ltd. Controlled by the ultimate controlling party
251Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Name of Other Related Party Relationship with the Company
Beijing Sidaokou Aquatic Products Trading Market Co. Ltd Controlled by the ultimate controlling party
Beijing Capital Agribusiness Electronic Commerce Technologies Co.Ltd. Controlled by the ultimate controlling party
Beijing Huayu Foodstuff Co. Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Animal Husbandry Technology Co. Ltd. Controlled by the ultimate controlling party
BeiJing HuaDu SunLing Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Shounong Zhongzhou International Supply Chain Management
Co. Ltd. Controlled by the ultimate controlling party
Beijing Southwest Suburb Food Supply Chain Management Co. Ltd. Controlled by the ultimate controlling party
Shandong Fukuan Bioengineering Co. Ltd. Controlled by the ultimate controlling party
Beijing Dahongmen Jingshen Seafood Wholesale Market Co. Ltd. Controlled by the ultimate controlling party
Beijing Beishui Jialun Aquatic Products Market Co. Ltd. Controlled by the ultimate controlling party
Tianjin Sunlon Dongjiang Animal Husbandry Co. Ltd. Controlled by the ultimate controlling party
5. Related-party Transactions
(1) Related-party transactions for purchasing and selling goods and provision and acceptance of labor
services
Purchase of goods or acceptance of labor services
Amount of transactionsRelated-party Current Whether theRelated Party approved in ten transaction limit is Last TermTransaction Amount （thousands Yuan） exceeded
Amount
Beijing Guchuan Purchase of
Food Co. Ltd. goods 5126763.67 1800.00 No 5739146.19
Other related Purchase of
entities goods 1633857.23 5000.00 No 8329019.56
Beijing Grain
Science Research Acceptance of 405478.53 1500.00 No 0.00
Institute Co. Ltd. labor services
Other related Acceptance of
entities labor services 331514.69 1000.00 No 0.00
Sale of goods/ provision of labor services
Related Party Related-party Current Last TermTransaction Amount Amount
Beijing Baijia Yi Food Co. Ltd. Sale of goods 513853.22 741385.30
Beijing Ershang Meat Food Group Co. Ltd. Sale of goods 79334.30 321977.01
Beijing Guchuan Rice Industry Co. Ltd. Sale of goods 88969.38 3546374.75
Beijing Guchuan Food Co. Ltd. Sale of goods 363067.67 162957.15
Beijing Hepingmen Vegetable Market Co. Ltd. Sale of goods 242347.88 0.00
Beijing Jingliang Dongfang Grain and Oil Trading Co.Ltd. Sale of goods 1336509.86 720249.19
252Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Related Party Related-party Current Last TermTransaction Amount Amount
Beijing Liubiju Huairou Food Co. Ltd. Sale of goods 0.00 4474697.25
Beijing Farm Produce Central Wholesale Market Co.Ltd. Sale of goods 521871.56 574128.44
Beijing Sanyuan Seed Industry Technology Co. Ltd. Sale of goods 25134412.59 23025573.84
Beijing Haidian Xijiao Grain and Oil Supply Station Co.Ltd. Sale of goods 1222477.07 662935.77
Beijing Food Supply Bureau No. 34 Supply Department
Co. Ltd. Sale of goods 705729.31 1067370.93
Beijing Zhangxin Grain Storage Co. Ltd. Sale of goods 90825.69 638444.95
Beijing Shounong Animal Husbandry Development Co.Ltd. Sale of goods 3186767.41 3439590.99
Beijing Shounong Consumption Assistance and Double
Innovation Center Co. Ltd. Sale of goods 6218405.51 5644660.53
Beijing Wuhuan Shuntong Supply Chain Management
Co. Ltd. Sale of goods 2654821.94 1686159.79
Hebei Anping Dahongmen Food Co. Ltd. Sale of goods 590366.96 0.00
Hebei Luanping Huadu Food Co. Ltd. Sale of goods 28794487.87 42834513.38
Hebei Shounong Modern Agricultural Technology Co.Ltd. Sale of goods 7815756.04 7038976.91
Shanghai Shounong Investment Holding Co. Ltd. Sale of goods 0.00 10188510.75
Other related entities Sale of goods 1073526.21 990067.92
Shanghai Shounong Investment Holding Co. Ltd. Provision ofservices 458919.72 1488720.68
Other related entities Provision ofservices 427462.05 10511.42
Explanation of the purchase and sale of goods provision and receipt of services: The transaction prices are
based on the prices charged for the same or similar business activities between unrelated parties.
(2) Related-party lease
If the Company is the lessee
Rental cost of simplified treatment of Variable lease payment not included in
Type of short-term lease and low-value lease asset the calculation of lease liabilities
Name of Lessor Leased Lease Expense Lease Expense Lease Expense Lease Expense
Asset Recognized in the Recognized in the Recognized in the Recognized in the
Current Period Prior Period Current Period Prior Period
Beijing Municipal
Grain Research House 2152926.76 0.00
Institute Co.Ltd leasing
Beijing Grain House
Group Co.Ltd leasing 1993824.66
Beijing Shounong
Food Emergency
Security Center Oil tank 2153333.33 1378150.02
Co.Ltd
(Continued)
253Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Payment of rent Interest expenseon lease liabilities Increase in right-of-use assets
Name of
Lessee Lease Expense Lease Expense LeaseExpense Lease Expense
Lease Lease
Recognized in Recognized in Recognized in Expense Expense
the Current the Prior Recognized inthe Current the Prior
Recognized in Recognized
Period Period Period the Current in the PriorPeriod Period Period
Beijing
Municipal
Grain
Research 1624990.76 1362017.92
Institute
Co.Ltd
Beijing Grain
Group Co.Ltd 2643794.11
Beijing
Shounong
Food
Emergency
Security
Center
Co.Ltd
(3) Remuneration for key management staff
Item Current Amount Last Term Amount(Unit: Ten thousand yuan RMB) (Unit: Ten thousand yuan RMB)
Remuneration for Key Management Staff 146.14 215.22
(4) Other Related-party Transactions
Guaranteed Party Related-party Transaction Current Amount Last Term Amount
Beijing Shounong Food Group Finance Co.Ltd Interest income 4849425.43 3062947.99
Beijing Shounong Food Group Finance Co.Ltd Interest expense 7528369.45 1416388.89
Beijing Grain Group Co. Ltd. Sale of Trademark 0.00 25235377.36
6. Related party Receivables and Payables
(1) Receivables
Closing Balance Opening Balance
Item Related-party Provision Provision
Book Balance for Bad Book Balance for Bad
Debts Debts
Monetary Beijing Shounong Food Group
funds Finance Co.Ltd 1026407608.14 1303024670.57
Receivables Beijing Bai Jiayi Food Co.Ltd 60000.00 102580.00
254Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Closing Balance Opening Balance
Item Related-party Provision Provision
Book Balance for Bad Book Balance for Bad
Debts Debts
Receivables Beijing Ershang Meat FoodGroup Co. Ltd. 9750.00 13830.00
Receivables Beijing Gushun Foods Co.Ltd 8702.00 13202.00
Receivables Beijing Jingliang DongfangGrain and Oil Trading Co.Ltd 22000.00 125200.00
Receivables Beijing Lanfeng VegetableDistribution Co.Ltd 18000.00 0.00
Receivables Beijing Grain Group Co. Ltd. 12847737.37 12847737.37
Beijing Nanjiao Agricultural
Receivables Production and Operation 1800.00 0.00
Management Co. Ltd.Receivables Beijing Sanyuan Seed IndustryTechnology Co. Ltd. 4846865.89 1887834.11
Receivables Beijing Haidian Xijiao Grainand Oil Supply Station Co. Ltd. 333700.00 316800.00
Beijing Shounong Animal
Receivables Husbandry Development Co. 1174110.86 426725.84
Ltd.Receivables Beijing Shounong Food GroupCo. Ltd. 1660.00 0.00
Receivables Beijing Taiyu PropertyManagement Co. Ltd. 12869.00 0.00
Beijing Wuhuan Shuntong
Receivables Supply Chain Management 428964.00 67680.00
Co.Ltd
Receivables Hebei Anping Dahongmen FoodCo. Ltd. 292500.00 565500.00
Receivables Hebei Luanping Huadu FoodCo.Ltd 16264501.42 22348359.23
Receivables Hebei Shounong ModernAgriculture Technology Co.Ltd 1396643.76 0.00
Receivables Beijing Sanyuan Foods Co. Ltd. 0.00 19235.00
Receivables Beijing Zhangxin Grain ReserveCo.Ltd 0.00 367175.00
Other Beijing Grain Science Research
receivables Institute Co. Ltd. 515041.16 0.00
Other Beijing Shounong Consumption
receivables and Poverty Alleviation Double 20000.00 20000.00Creation Center Co.Ltd
Prepayment Beijing Ershang DahongmenWuroulian Food Co. Ltd. 27540.00 27540.00
(2) Payables
Item Related-party Closing Balance Opening Balance
Payables Beijing Ershang Meat Products Group Co. Ltd. 20580.53 0.00
Payables Beijing Guchuan Food Co. Ltd. 879130.82 746826.11
Payables Beijing Huayu Foodstuff Co. Ltd. 40.00 0.00
255Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Item Related-party Closing Balance Opening Balance
Payables Beijing Capital Agribusiness Electronic CommerceTechnologies Co. Ltd. 38114.00 0.00
Contract liability Beijing Diandao Online Sales Co. Ltd. 0.18 0.18
Contract liability Beijing ER SHANG Group Co. Ltd. 1760.00 0.00
Contract liability Beijing Jingliang Taiyu Real Estate Co. Ltd. 1720.00 7740.00
Contract liability Beijing Grain Group Co. Ltd. 326348.00 356648.00
Contract liability Beijing Shoucheng Shanshui Real Estate Co. Ltd. 33620.00 6750.00
Contract liability Beijing Shounong Development Co. Ltd. 22040.00 24190.00
Other payables Beijing ER SHANG Group Co. Ltd. 210.00 210.00
Other payables Beijing Jingliang Dongfang Grain and Oil Trading Co.Ltd. 7684.48 7684.48
Other payables Beijing Grain Group Co. Ltd. 851959.45 543047.81
Other payables Beijing Wuhuan Shuntong Supply Chain ManagementCo. Ltd. 7841.96 7841.96
XIII Share based payment
The company does not have any share-based payments that need to be disclosed.XIV Commitments and Contingencies
As of the end of this reporting period the company and its subsidiaries have an approved guarantee quota
of 1.49535 billion yuan. The actual guarantees used by the company and its subsidiaries amount to 0.69652
billion yuan which accounts for 24.26% of the company's latest audited net assets attributable to the parent
company. All these guarantees are between the company and its subsidiaries. The company and its subsidiaries
do not provide guarantees for entities outside the consolidated financial statements.XV Events after the Balance Sheet Date
There are no post-balance sheet events that require disclosure during this reporting period.XVI Other Important Matters
1. Annuity Plan
Pension Plan Overview: The companies under the group including Beijing Jingliang Food Co. Ltd.Jingliang (Tianjin) Grain and Oil Industry Co. Ltd. Beijing Guchuan Oil Co. Ltd. Beijing Aisen Greenbao Oil
256Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Co. Ltd. Beijing Jingliang Oils Co. Ltd. Beijing Guchuan Bread and Food Co. Ltd. and Beijing Tianweikang
Oil Adjustment Center Co. Ltd. participate in the pension plan of Beijing Shounong Food Group Co. Ltd.Each company has established its own implementation rules for the pension plan. The pension plan is named
"The Enterprise Pension Plan of Beijing Shounong Food Group Co. Ltd.". The trustee is Ping An Pension
Insurance Co. Ltd. the account manager is Bank of Communications Co. Ltd. and the custodian is CITIC
Bank Co. Ltd.
2. Information of Division
(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 Offset Among Divisions Total
Operating Income 328195920.88 2786730800.63 3114926721.51
Operating Costs 264216337.63 2675743579.73 2939959917.36
Total Assets 1267580883.10 4030541017.31 402051257.60 5700173158.01
Total Liabilities 282847915.67 1794941929.54 402051257.60 2479841102.81
XVII Notes to Main Financial Statement Items of Parent Company
1. Other Receivables
Item Closing Balance Opening Balance
Interest receivable
Dividends receivable
Other receivables 945263055.56 930000000.00
Total 945263055.56 930000000.00
257Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year 945263055.56
1 to 2 years 930000000.00
Total 945263055.56 930000000.00
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 Entities 945263055.56 930000000.00
Total 945263055.56 930000000.00
C. Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall
Name of Organization Balance at End Closing Balance of Nature of
Closing
of Period other receivables Funds Aging Balance of bad(% debt reserves）
Beijing Jingliang Food Co. 875000000.00 92.57 Borrowing Within 1Ltd. year
Jingliang (Beijing)
Bakery&Foods Co. Ltd. 70263055.56 7.43 Borrowing
Within 1
year
Total 945263055.56 100.00 —— ——
2. Long-term Equity Investment
Ending Balance Beginning Balance
Item Provision for Provision for
Book Balance diminution in Book Balance Book Balance diminution in Book Balance
value value
Investment in
subsidiaries 2442399283.19 2442399283.19 2442399283.19 2442399283.19
Total 2442399283.19 2442399283.19 2442399283.19 2442399283.19
(1) Investment in subsidiaries
Current ClosingBalance of
Invested Entity Opening Balance Current Current ProvisionIncrease Decrease Closing Balance for Provision
Impairment forImpairment
Beijing Jingliang Food
Co. Ltd. 2051781964.05 2051781964.05
Zhejiang little prince
Food Co. Ltd 249017319.14 249017319.14
Jingliang (Caofeidian)
Agricultural 25500000.00 25500000.00
Development Co. Ltd.
258Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Current ClosingBalance of
Invested Entity Opening Balance Current Current ProvisionIncrease Decrease Closing Balance for Provision
Impairment forImpairment
Jingliang (Beijing)
Bakery&Foods Co. 90100000.00 90100000.00
Ltd.Jingliang (Yangpu)
Grain and Oil Industry 26000000.00 26000000.00
Co. Ltd.Total 2442399283.19 2442399283.19
3. Operating Income and Operating Costs
(1) Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Other businesses 400910.09 169130.82 561810.67 169130.82
Total 400910.09 169130.82 561810.67 169130.82
4. Income from investment
Item Current Amount Last Term Amount
Long term equity investment income calculated by
cost method 86434733.13
Investment income from disposal of long-term
equity investments
Total 86434733.13
XVIII Supplementary Information
1. Details of non-recurring profit and loss in the reporting period
Item Amount Note
Non-current asset disposal gains and losses including the reversal of asset impairment
provisions 293454.51
Government subsidies recognized in the current period but not closely related to normal
business operations and those that have a continuous impact on the company's profit and 1666463.99
loss
Fair value changes of financial assets and liabilities held by non-financial enterprises as
well as gains and losses from the disposal of financial assets and liabilities excluding
effective hedging activities related to the company's normal business operations
Occupation fees for funds collected from non-financial enterprises
Profit or loss on entrusting others to invest or manage assets
Profit or loss from external entrusted loans
Loss of assets due to force majeure such as natural disasters
259Hainan Jingliang Holdings Co. Ltd. Semi-annual Report 2026
Item Amount Note
Reversal of impairment charges for receivables that are tested separately for impairment
The investment cost of the subsidiary associate and joint venture is less than the income
generated by the fair value of the investee's identifiable net assets when the investment is
obtained
Net profit or loss for the period from the beginning of the period to the date of
consolidation of subsidiaries arising from a business combination under the same control
Debt restructuring gains and losses
One-time expenses incurred by the enterprise due to the cessation of relevant business
activities such as expenses for the placement of employees etc
One-time impact on profit or loss for the current period due to adjustments to laws and
regulations such as taxation and accounting
Profit or loss arising from contingencies unrelated to the normal operation of the
company
Custody fee income obtained from entrusted operations
Other non-operating income and expenses other than those listed above -62695.20
Other profit or loss items that meet the definition of non-recurring profit or loss
Less: Income tax impact 421808.67
Impact of Minority Interest (After-Tax) 172664.91
Total 1302749.72
2. Return on equity and earnings per share
Weighted Average Earnings Per Share
Report Period Profit Return on Equity
（%） Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders of the
company 0.28 0.01 0.01
Deducting non-recurring gains and losses net profit
attributable to ordinary shareholders of the company 0.23 0.01 0.01
Hainan Jingliang Holdings Co. Ltd.
27 August 2026
260
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