HAINAN JINGLIANG
HOLDINGS CO. LTD.SEMI-ANNUAL REPORT
2024
August 2024HAINAN JINGLIANG HOLDINGS CO. LTD.SEMI-ANNUALREPORT 2024
Part I Important Notes
This Summary 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). In order for a full
understanding of the Company’s operating results financial position and future development plans investors
should carefully read the aforesaid full text which has been disclosed together with this Summary on the media
designated by the China Securities Regulatory Commission (the “CSRC”).This Summary has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.All the Company’s Directors have attended the Board meeting for the review of this Report and its summary.Independent auditor’s modified opinion:
□ Applicable□ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period
□ Applicable□ Not applicable
The Company has no interim dividend plan either in the form of cash or stock.Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
□ Applicable□ Not applicable
Part 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 8/F Tower B Capital Agricultural Science
Office address and Innovation Mansion Building No.1 and Innovation Mansion Building No.1Community No.8 Xinning Street Daxing Community No.8 Xinning Street Daxing
District Beijing District Beijing
Tel. 010-81219989 010-81219989
E-mail address guanying@bjjlkg.cn gaodeqiu@bjjlkg.cn
2. MajorAccounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes□ No
H1 2024 H1 2023 Change (%)Operating revenue (RMB) 5555906994.14 4823234208.18 15.19%
Net profit attributable to the listed company’s shareholders (RMB) 24058518.07 73581795.36 -67.30%
Net profit attributable to the listed company’s shareholders before
exceptional gains and losses (RMB) 13290211.37 58095675.61 -77.12%
Net cash generated from/used in operating activities (RMB) -221065422.09 -137349545.79 -60.95%
Basic earnings per share (RMB/share) 0.03 0.10 -70.00%
Diluted earnings per share (RMB/share) 0.03 0.10 -70.00%
Weighted average return on equity (%) 0.76% 2.37% -1.61%
30 June 2024 31 December 2023 Change (%)
Total assets (RMB) 6577259750.18 6496782984.90 1.24%
Equity attributable to the listed company’s shareholders (RMB) 3140090722.46 3167503541.44 -0.87%
3. Shareholders and Their Shares at the Period End
Unit: Share
Number of ordinary shareholders 54654 Number of preferred shareholderswith resumed voting rights (if any) 0Top 10 shareholders (not including through refinancing）)
Pledged marked or frozen
Name of shareholder Nature of Shareholdin Number of Restricted sharesshareholder g percentage shares shares
Status Shares
BEIJING GRAIN State-owned
GROUP CO. LTD. legal person 39.68% 288439561 0 Not applicable 0
BEIJING
STATE-OWNED
CAPITAL OPERATION State-owned 6.67% 48510460 0 Not applicable 0
AND MANAGEMENT legal person
COMPANY LIMITED
WANGYUECHENG Domesticnatural person 5.43% 39459887 29594915 Not applicable 0
MEI JIANYING Domestic 0.36% 2604104 0 Not applicable 0
natural person
WANG ZHIQIANG Domesticnatural person 0.34% 2507123 0 Not applicable 0
LISHERYNZHANMING Foreignnatural person 0.33% 2407700 0 Not applicable 0
CHEN TIANHUA Domesticnatural person 0.29% 2101100 0 Not applicable 0
TONG ZHENZHU Domesticnatural person 0.27% 1970000 0 Not applicable 0
ZHANG XIAOXIA Domesticnatural person 0.27% 1949250 0 Not applicable 0
YIN SHENGJIAN Domesticnatural person 0.23% 1670000 0 Not applicable 0
* Beijing State-Owned Capital Operation and Management Company Limited
owns 100% of Beijing Grain Group Co. Ltd. and Beijing Grain Group Co. Ltd. is
Connected or acting-in-concert parties the controlling shareholder of the Company (a 39.68% holding).* During the
among shareholders above reporting period Wang Yuecheng is a Deputy General Manager of the Company.Apart from that the Company does not know whether there are any other related
parties or acting-in-concert parties among the top 10 shareholders.Shareholder Mei Jianying holds 2604104 shares in the Company through his
account of collateral securities for margin trading in Huatai Securities Co. Ltd;
Shareholders conducting margin trading (if Shareholder Chen Tianhua holds 2093500 shares in the Company through his
any) account of collateral securities for margin trading in Founder Securities Co. Ltd.;Shareholder Tong Zhenzhu holds1970000 shares in the Company through his
account of collateral securities for margin trading in China Merchants Securities
Co. Ltd.Margin trading participated by the shareholders of more than 5% holding shares Top 10 and Top 10 with
unrestricted shares.□ Applicable□ Not applicable
Changes from margin trading due to credit/restitution for the shareholders of Top 10 and Top 10 with unrestricted
shares compared with last-term reporting period
□ Applicable□ Not applicable
4. Change of Controlling Shareholder orActual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable□ Not applicable
The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:
□ Applicable□ Not applicable
The actual controller remained the same in the Reporting Period.
5. Numbers of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable□ Not applicable
No preferred shareholders in the Reporting Period.
6. Outstanding Bonds at the Date when this Report Was Authorized for Issue
□Applicable □ Not applicable
（1）Basic information of Bond
Name of Bond Abbreviation of Bond Issue Date MaturityBond Balance（inBonds code Date ten thousands InterestYuan）
Hainan Jingliang Holdings Co. Ltd
2023 public issuance of corporate bonds 23Jingliang01 148434 21-22Aug 22 Aug2023 2026 30000 2.88%for qualified investors（1st issue）
（2）Financial indicators at the ending of the reporting period
Item 30 June 2024 31 December 2023
Asset-liability ratio 46.03% 44.97%
Item H1 2024 H1 2023
Interest cover ratio 4.62 7.94
Part III Significant Events
The year-on-year decline in the company's performance during the reporting period was mainly due to thefollowing two factors:
1.Oil and Grease Business: The international soybean supply in the reporting period was in a loose state the
domestic soybean oil and soybean meal market had a glut and the price of main products from soybean oil and
soybean meal was a year-on-year decline resulting in a year-on-year decrease in profit of oil and grease business.
2.Food Business: Affected by the downturn in traditional channels and the impact of competing products the
decline in sales of leisure food brought about a decrease in revenue and the cost increase in the price of the main
raw material potato flour brought about a year-on-year decrease in the gross margin of leisure food resulting in a
year-on-year decrease in profit of leisure food.Part IV Financial Report
Independent auditor’s modified opinion:
□ Applicable□ Not applicable
2024 Semi-Annual Financial Report is not audited by Independent auditor.
The unit of financial statements in the financial notes is: Yuan1.Consolidated Balance Sheet
June 302024
Prepared by: Hainan Jingliang Holdings Co. Ltd. Monetary Unit: RMB Yuan
Items 30 June 2024 31 December 2023
Current Assets:
Monetary capital 1181398242.40 1543385751.86
Transactional financial assets
Derivative financial assets 31223815.72 31684620.00
Notes receivable
Accounts receivable 109483882.36 115780372.55
Receivables financing 2442328.82 2502308.90
Prepayment 267344829.04 87352234.48
Other receivables 386904030.80 303099589.59
Including: Interest receivable
Dividends receivable
Inventory 2186861592.97 2041860143.11
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 22188083.34
Other current assets 420569321.21 312336642.43
Total current assets 4586228043.32 4460189746.26
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 265798072.29 254922645.41
Other equity instruments investment 20000000.00 20000000.00
Other non-current financial assets
Investment property 19051808.01 20045503.77
Fixed assets 917556139.25 939548012.91
Construction in process 47201479.97 59094902.29
Productive biological assets
Oil-and-gas assets
Right-of-use assets 89304522.73 99232303.78Intangible assets 404165474.64 412676845.93
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 191394422.51 191394422.51
Long-term deferred expenses 17397533.45 17655736.82
Deferred income tax assets 5452387.35 8798915.22
Other non-current assets 13709866.66 13223950.00
Total non-current assets 1991031706.86 2036593238.64
Total assets 6577259750.18 6496782984.90
Current liabilities:
Short-term borrowings 1036717261.11 1163479691.67
Transactional financial liabilities
Derivative financial liabilities 15805393.88
Notes payable
Accounts payable 70607024.80 82474823.84
Account collected in advance 1800138.12 1075801.34
Contract liabilities 619028078.42 411033219.08
Employee payroll payable 16367355.08 32702558.07
Taxes payable 11264377.79 11577392.47
Other payables 71848286.50 79618198.78
Including: Interest payable 20000000.00 21082795.47
Dividends payable 3213342.90 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year 119091031.53 175940949.28
Other current liabilities 58741540.34 60439400.68
Total current liabilities 2005465093.69 2034147429.09
Non-current liabilities:
Long-term borrowings 530000000.00 400000000.00
Bonds payable 299025000.00 298800000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities 75013784.37 73241742.57
Long-term payables
Long-term payable to employees 5677134.00 5677134.00
Estimated liabilities
Deferred income 58483273.07 62503256.67
Deferred income tax liabilities 53548664.14 47082123.53
Other non-current liabilitiesTotal non-current liabilities 1021747855.58 887304256.77
Total liabilities 3027212949.27 2921451685.86
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1681808108.07 1681808108.07
Less: treasury stock
Other comprehensive income 1512111.69 1369980.92
Special reserves
Surplus reserves 129819690.00 129819690.00
Undistributed profit 600000561.70 627555511.45
Owner's Equity (or shareholder's equity) Attributable to
Shareholders of the Parent Company 3140090722.46 3167503541.44
Minority equity 409956078.45 407827757.60
Total owners' equity (or shareholders' equity) 3550046800.91 3575331299.04
Total liabilities and owners' equity (or shareholders' equity) 6577259750.18 6496782984.90
Legal Representative:Chunli Wang Chief Financial Officer:Ying Guan Head of Accounting Department: Ling Cao
2.Balance Sheet of Parent Company
Monetary Unit: RMB Yuan
Items 30 June 2024 31 December 2023
Current Assets:
Monetary capital 338721543.73 23743255.81
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment
Other receivables 910000000.00 950000000.00
Including: Interest receivable
Dividends receivable
Inventory
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one yearOther current assets 404285.14 976539.93
Total current assets 1249125828.87 974719795.74
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 2340799283.19 2625657283.19
Other equity instruments investment 20000000.00 20000000.00
Other non-current financial assets
Investment property 5027932.91 5198514.17
Fixed assets 5892257.07 5955832.27
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 444366.61 495639.67
Deferred income tax assets
Other non-current assets 3168200.00 2833950.00
Total non-current assets 2375332039.78 2660141219.30
Total assets 3624457868.65 3634861015.04
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 15383.17 15383.17
Account collected in advance 38896.41 38896.41
Contract liabilities
Employee payroll payable 170825.08 157166.68
Taxes payable 1046047.51 1016682.06
Other payables 31176883.86 32458140.29Including: Interest payable 20000000.00 21082795.47
Dividends payable 3213342.90 3213302.88
Held-for-sale liabilities
Non-current liabilities due within one year 7200000.00 2880000.00
Other current liabilities
Total current liabilities 39648036.03 36566268.61
Non-current liabilities:
Long-term borrowings
Bonds payable 299025000.00 298800000.00
Including: Preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term payable to employees
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 299025000.00 298800000.00
Total liabilities 338673036.03 335366268.61
Owners' equity (or Shareholders' equity):
Paid-in capital 726950251.00 726950251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 2386084900.84 2386084900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 117184317.41 117184317.41
Undistributed profit 55565363.37 69275277.18
Total owners' equity (or shareholders' equity) 3285784832.62 3299494746.43
Total liabilities and owners' equity (or shareholders' equity) 3624457868.65 3634861015.04
3.Consolidated Income Statement
Monetary Unit: RMB Yuan
Items Amount for the current Amount for the priorperiod period
I. Total operating income 5555906994.14 4823234208.18
Including: Operating income 5555906994.14 4823234208.18II. Total operating cost 5531711172.68 4841383397.31
Including: Operating cost 5332015618.17 4630970469.14
Tax and surcharges 12216026.66 11548673.88
Selling expenses 71736656.94 78437823.61
Administration expenses 85740915.84 92898582.21
Research and development expenses 10402383.93 10262799.97
Financial expenses 19599571.14 17265048.50
Including: Interest expenses 28948644.46 25265021.07
Interest income 8925122.62 5832452.30
Add: Other income 9870484.92 6324214.58
Income from investment (Losses shall be filled in with “-”) 10875426.88 7179282.99
Including: income from investment on joint venture and
cooperative enterprise 10875426.88 7012296.86
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 “-”) -9906096.90 143869459.30
Credit impairment loss(Losses shall be filled in with “-”) 1779.74 -115984.57
Income from assets impairment(Losses shall be filled in with
“-”)130887.98-25186589.63
Income from asset disposal (Losses shall be filled in with “-”) 23411.62 -2209.46
III. Operating profit (Losses shall be filled in with “-”) 35191715.70 113918984.08
Add: non-operating income 10604405.63 3903501.36
Less: non-operating expenditure 4779998.99 527980.44
IV. Total profit (Total losses shall be filled in with “-”) 41016122.34 117294505.00
Less: income tax expense 14829283.42 32518022.92
V. Net profit (Net loss shall be filled in with “-”) 26186838.92 84776482.08
(I) Classified by operations continuity
1. Net profit from continuing operations (Net loss shall be filled
in with “-”) 26186838.92 84776482.08
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 “-”) 24058518.07 73581795.36
2.Minority interest income (Net loss shall be filled in with “-”) 2128320.85 11194686.72
VI. Net of tax from other comprehensive income 142130.77 730651.63
（一）Net of tax from other comprehensive income attributable to
shareholders of the parent company 142130.77 730651.63
1.Other comprehensive income that cannot be reclassified into
the profit and loss
（1）Remeasure changes in defined benefit plans
（2）Other comprehensive income that cannot be transferred to
gains and losses under the equity method（3）Changes in fair value of other equity instrument investments
（4）Changes in the fair value of the company's own credit risk
（5）Others
2.Other comprehensive income that will be reclassified into the
profit and loss 142130.77 730651.63
（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 142130.77 730651.63
（7）Others
（二）Net of tax from other comprehensive income attributable to
minority shareholder
VII. Total comprehensive income 26328969.69 85507133.71
(I) Total comprehensive income attributable to shareholders of
the parent company 24200648.84 74312446.99
(II)Total comprehensive income attributable to minority
shareholder 2128320.85 11194686.72
VIII. Earnings per share:
(I) Basic earnings per share 0.03 0.10
(II) Diluted earnings per share 0.03 0.10
Legal Representative:Chunli Wang Chief Financial Officer:Ying Guan Head of Accounting Department: Ling Cao
4.Income Statement of Parent Company
Monetary Unit: RMB Yuan
Items Amount for the current Amount for the priorperiod period
I. Total operating income 2047313.31 11839311.03
Less：Operating cost 170581.26 170581.26
Tax and surcharges 204491.36 174413.63
Selling expenses
Administration expenses 3150269.36 3410680.07
Research and development expenses
Financial expenses -9722064.50 -5278290.51
Including: Interest expenses 4545000.00
Interest income 14379702.55 5280177.21
Add: Other income 619000.43 2308.28
Income from investment (Losses shall be filled in with “-”) 28021459.50 150814.85
Including: income from investment on joint venture and
cooperative enterprise
Income from derecognition of financial assets measuredat 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 “-”) 36884495.76 13515049.71
Add: non-operating income 1082795.47
Less: non-operating expenditure 63737.22 5027.46
IV. Total profit (Total losses shall be filled in with “-”) 37903554.01 13510022.25
Less: income tax expense
V. Net profit (Net loss shall be filled in with “-”) 37903554.01 13510022.25
1. Net profit from continuing operations (Net loss shall be filled
in with “-”) 37903554.01 13510022.25
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
the profit and loss
（1）Remeasure changes in defined benefit plans
（2）Other comprehensive income that cannot be transferred to
gains and losses under the equity method
（3）Changes in fair value of other equity instrument investments
（4）Changes in the fair value of the company's own credit risk
（5）Others
2 .Other comprehensive income that will be reclassified into the
profit and loss
（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 37903554.01 13510022.25
VIII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share5.Consolidated Cash Flow Statement
Monetary Unit: RMB Yuan
Items Amount for the Amount for the priorcurrent period period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 6226529356.93 5564355172.38
Tax Refund Receipts 3062799.77 3808897.99
Other Cash Receipts Concerning Operating Activities 1514916662.94 1023812040.53
Subtotal of Cash Inflows from Operating Activities 7744508819.64 6591976110.90
Cash Paid for Purchase of Goods and Accepting Services 6051673881.18 5631656925.26
Cash Paid to and for Employees 164888216.07 172318440.15
Taxes and Fees Paid 58944562.42 125238280.62
Other Cash Paid Concerning Operating Activities 1690067582.06 800112010.66
Subtotal of Cash Outflows from Operating Activities 7965574241.73 6729325656.69
Net Cash Flows from Operating Activities -221065422.09 -137349545.79
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 586103235.55
Cash Receipts from Returns on Investments
Net Cash from Disposal of Fixed Assets Intangible Assets and Other
Long-term Assets 90476.60 31605.00
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 90476.60 586134840.55
Cash Paid for Purchase and Construction of Fixed Assets Intangible
Assets and Other Long-term Assets 19760482.96 43140379.93
Cash Paid for Investments 145000000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities 1747611.95
Subtotal of Cash Outflows from Investment Activities 21508094.91 188140379.93
Net Cash Flows from Investment Activities -21417618.31 397994460.62
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Including: Cash Received by Subsidiaries Absorbing the Investment
from Minority Shareholders
Cash Receipts from Borrowings 1037734559.68 1818217067.44
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities 1037734559.68 1818217067.44
Cash Paid for Repayment of Debts 1087734559.68 1331768577.44Cash Paid for Distribution of Dividends Profits or Repayment of
Interests 70758033.33 47016149.43
Including: Dividends and Profits Paid by Subsidiaries to Minority
Shareholders
Other Cash Paid Concerning Financing Activities 13486733.94 574077.78
Subtotal of Cash Outflows from Financing Activities 1171979326.95 1379358804.65
Net Cash Flows from Financing Activities -134244767.27 438858262.79
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents 6088920.99 724617.12
V. Net Increase in Cash and Cash Equivalents -370638886.68 700227794.74
Add: Opening Balance of Cash and Cash Equivalents 1540639079.95 551439110.07
VI. Closing Balance of Cash and Cash Equivalents 1170000193.27 1251666904.81
6.Cash Flow Statement of Parent Company
Monetary Unit: RMB Yuan
Items Amount for the Amount for the priorcurrent period period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 1745187.40 12124704.99
Tax Refund Receipts
Other Cash Receipts Concerning Operating Activities 1683080.27 5610597.06
Subtotal of Cash Inflows from Operating Activities 3428267.67 17735302.05
Cash Paid for Purchase of Goods and Accepting Services 635.30
Cash Paid to and for Employees 972050.75 1499566.85
Taxes and Fees Paid 448876.77 324239.47
Other Cash Paid Concerning Operating Activities 2218764.01 164251396.82
Subtotal of Cash Outflows from Operating Activities 3640326.83 166075203.14
Net Cash Flows from Operating Activities -212059.16 -148339901.09
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 324858000.00
Cash Receipts from Returns on Investments 42606181.72 150150814.85
Net Cash from Disposal of Fixed Assets Intangible Assets and Other
Long-term Assets 3444.00 800.00
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 367467625.72 150151614.85
Cash Paid for Purchase and Construction of Fixed Assets Intangible
Assets and Other Long-term Assets 663805.84 459058.44
Cash Paid for Investments
Net Cash Paid for obtaining Subsidiaries and Other Business UnitsOther Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 663805.84 459058.44
Net Cash Flows from Investment Activities 366803819.88 149692556.41
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 51613472.80
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities 51613472.80
Net Cash Flows from Financing Activities -51613472.80
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents 314978287.92 1352655.32
Add: Opening Balance of Cash and Cash Equivalents 23743255.81 15852894.21
VI. Closing Balance of Cash and Cash Equivalents 338721543.73 17205549.53
7.Consolidated Statement of Changes in Equity
Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Other equity Total
Items instruments Less: Other Speci sharehol
Paid-in Capital treas compr al Surplus Undistrib Minority
capital reserve ury ehensi reser reserve uted Subtotal equity
ders'
Prefer Perp Ot ve equities
red etual her stock income ve
profit
stock bond s
I. Year-end
balance of last 726950 168180 1369 129819 627555 316750 407827 357533
year 251.00 8108.07 980.92 690.00 511.45 3541.44 757.60 1299.04
Add: changes
in accounting
policies
Correction of
prior period
errors
Merger of
enterprises
under the
same control
Other
II. Balance at
beginning of 726950 168180 1369 129819 627555 316750 407827 357533
current year 251.00 8108.07 980.92 690.00 511.45 3541.44 757.60 1299.04III. Increases
and decreases
of current
period 14213 -275549 -274128 212832 -25284
(Decrease 0.77 49.75 18.98 0.85 498.13
shall be filled
in with “-”)
(I) Total
comprehensiv 14213 240585 242006 212832 263289
e income 0.77 18.07 48.84 0.85 69.69
(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 -516134 -516134 -51613
profits 67.82 67.82 467.82
1. Withdrawal
of surplus
reserves
2. Distribution
to -516134 -516134 -51613
shareholders 67.82 67.82 467.82
3. Others
(IV) Inner
carrying-over
of
shareholders'
equities
1. Capital
reserve
converted into
capital (or
capital stock)
2. Surplus
public
accumulation
converted into
capital (or
capital stock)
3. Surplus
public
accumulation
loss remedy
4. Change in
defined benefit
plan carried
forward to
retained
earnings
5.Other
comprehensiv
e incomecarried
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 726950 168180 1512 129819 600000 314009 409956 355004
current period 251.00 8108.07 111.69 690.00 561.70 0722.46 078.45 6800.91
Amount of Last Period
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Other equity Total
Items instruments Less: Other Spe sharehol
Paid-in Capital treasu compre cial Surplus Undistri Minority ders'
capital Preferr Perp Ot reserve ry hensive rese reserve
buted Subtotal equity
profit equities
ed etual her stock income rve
stock bond s
I. Year-end
balance of last 726950 167867 10057 122122 532904 3061661 401048 346270
year 251.00 8350.95 20.50 436.98 675.62 435.05 412.23 9847.28
Add: changes
in accounting
policies
Correction of
prior period
errors
Merger of
enterprises
under the
same control
Other
II. Balance at
beginning of 726950 167867 10057 122122 532904 3061661 401048 346270
current year 251.00 8350.95 20.50 436.98 675.62 435.05 412.23 9847.28
III. Increases
and decreases
of current
period 73065 735817 7431244 111946 855071
(Decrease 1.63 95.36 6.99 86.72 33.71
shall be filled
in with “-”)
(I) Total
comprehensiv 73065 735817 7431244 111946 855071
e income 1.63 95.36 6.99 86.72 33.71
(II) Investment
of
shareholders
and capital
reduction
1. Common
equity
invested by
shareholders
2. Capital
invested by
other equityinstruments
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
comprehensiv
e 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 726950 167867 17363 122122 606486 3135973 412243 354821
current period 251.00 8350.95 72.13 436.98 470.98 882.04 098.95 6980.998.Statement of Changes in Equity of Parent Company
Monetary Unit: RMB Yuan
Current Amount
Other equity
Items instruments Less: OtherPaid-in Capital treasu compreh Special Surplus Undistribut
capital reserve ry ensive reserve reserve ed profit SubtotalPrefer Perpet Ot
red ual her stock income
stock bond s
I. Year-end balance 726950 2386084 11718431 69275277. 329949474
of last year 251.00 900.84 7.41 18 6.43
Add: changes in
accounting policies
Correction of prior
period errors
Other
II. Balance at
beginning of current 726950 2386084 11718431 69275277. 329949474
year 251.00 900.84 7.41 18 6.43
III. Increases and
decreases of current
period (Decrease -1370991 -13709913.shall be filled in 3.81 81
with “-”)
(I) Total
comprehensive 37903554. 37903554.0
income 01 1
(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 -5161346 -51613467.profits 7.82 82
1. Withdrawal of
surplus reserves
2. Distribution to -5161346 -51613467.
shareholders 7.82 82
3. Others
(IV) Inner
carrying-over of
shareholders'
equities
1. Capital reserve
converted into
capital (or capital
stock)
2. Surplus public
accumulation
converted into
capital (or capital
stock)
3. Surplus public
accumulation lossremedy
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 726950 2386084 11718431 55565363. 328578483
of current period 251.00 900.84 7.41 37 2.62
Amount of Last Period
Amount of Last Period
Other equity
Items instrumentsPaid-in Capital Less:
Other
treasur comprehe Special Surplus Undistributecapital reserve nsive reserve reserve d profit SubtotalPrefer Perpe y stock
red tual Oth income
stock bond ers
I. Year-end balance 726950 2382994 1094870 -23947597 297995623
of last year 251.00 900.84 64.39 7.89 8.34
Add: changes in
accounting policies
Correction of prior
period errors
Other
II. Balance at
beginning of current 726950 2382994 1094870 -23947597 297995623
year 251.00 900.84 64.39 7.89 8.34
III. Increases and
decreases of current
period (Decrease 13510022. 13510022.2
shall be filled in 25 5
with “-”)
(I) Total
comprehensive 13510022. 13510022.2
income 25 5
(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 726950 2382994 1094870 -22596595 299346626
of current period 251.00 900.84 64.39 5.64 0.59Hainan Jingliang Holdings Co. Ltd.Notes to the Semi-Annual of 2024 Financial Statements
(Unless otherwise stated the amount unit is RMBYuan)
I.Basic Information of the Company
1. Place of incorporation form of organization and head office address
Hainan Jingliang Holdings Co. Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang
Holdings") is established in accordance with the Hainan Provincial People's Government General Office QFBH
(1992) No.1 approved by QY (1992) SGZ No. 6 Document of the People's Bank of Hainan Province and
re-registered by Hainan Pearl River Enterprise Company on January 11 1992. The Company issued 81880000
shares in total upon re-registration of which 60793600 shares were converted from the net assets of the original
company and 21086400 shares were newly issued. And the name of the Company is Hainan Pearl River
Enterprise Co. Ltd. The business license registration number of the joint-stock company is 20128455-6 and the
holding parent company Guangzhou Pearl River Enterprise Group holds 36393600 shares accounting for
44.45%. Approved by ZGB (1992) No. 83 Document of the People's Bank of China in December 1992 the
additional 21086400 shares were listed on the Shenzhen Stock Exchange for trading. The industry involved is
real estate.On March 25 1993 in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and
SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of the People's Bank of China the Company
increased its share capital by converting the original share capital into 139196000 shares (according to
distribution of 10 delivery of 5 and transfer of 2) with the controlling shareholder Guangzhou Pearl River
Enterprises Group holding 48969120 shares accounting for 35.18% at the end of 1993.In 1994 the share capital was increased by 10 to 10 and the total share capital was 278392000 shares after
the increase. The controlling shareholder Guangzhou Pearl River Enterprises Group holds 97938240 shares
accounting for 35.18%.In 1995 the issuance of 50000000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12.The share capital of the Company was increased by 10:1.5 on the basis of the share capital after the additional B
shares were issued and the share capital of the Company after the increase was 377650800 shares. The holding
parent company Guangzhou Pearl River Enterprises Group held 112628976 shares accounting for 29.82% of
the total.In 1999 Guangzhou Pearl River Enterprises Group transferred all 112628976 shares to Beijing Wanfa Real
Estate Development Co. Ltd. After the transfer of shares was completed in June 1999 Beijing Wanfa Real Estate
Development Co. Ltd. held 112628976 shares of the Company accounting for 29.82% of the total shares of the
Company and became the controlling shareholder of the Company.On January 10 2000 the name of the Company was changed to Hainan Pearl River Holding Co. Ltd. andthe Business License for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau
of Hainan Province.On August 17 2006 the reform plan of the split share structure of the Company was implemented. The
Company transferred 49094604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original
non-tradable shareholders transferred the increased shares to the tradable A-share holders. Beijing Wanfa Real
Estate Development Co. Ltd. reimbursed the consideration shares of the non-tradable shareholders who have not
expressly expressed their opinions. The converted total share capital was 426745404 shares and the original
controlling shareholder Beijing Wanfa Real Estate Development Co. Ltd. held 107993698 shares accounting for
25.31%. Shareholders of non-tradable shares repaid 3289780 shares in consideration of the split share structure
in 2007. Shareholders of non-tradable shares repaid 1196000 shares in consideration of the split share structure
in 2009.On 2 September 2016 Beijing Wanfa Real Estate Development Co. Ltd. the original controlling shareholder
transferred all of its 112479478 shares to Beijing Grain Group Co. Ltd. (hereinafter referred to as "Beijing Grain
Group"). Upon completion of the share transfer in September 2016 Beijing Grain Group Co. Ltd. held
112479478 shares accounting for 26.36% of the total shares of the Company. In November 2016 based on the
confidence in the subject matter of the material asset restructuring and the future development of the Company
Beijing Grain Group Co. Ltd. decided to increase its shareholding through centralized bidding in the secondary
market. After the increase it held 123561963 shares of the Company accounting for 28.95% of the total number
of shares and became the largest shareholder of the Company.The Company determined July 31 2017 as the delivery date of material assets in accordance with the
material assets restructuring plan and the delivery agreement. On September 14 2017 approved pursuant to the
resolution of the Second Extraordinary General Meeting of Shareholders of the Company on November 18 2016
and the Approval Reply of the China Securities Regulatory Commission dated July 28 2017 On Approval of
Hainan Pearl River Holding Co. Ltd. to Purchase Assets and Raise Supporting Funds from Beijing Grain Group
Co. Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original shareholders of Beijing
Grain Food Co. Ltd. (hereinafter referred to as Beijing Grain Food) by issuing 210079552 shares of the balance
between the transaction price of the injected assets and the assets to be purchased (the difference between the
transaction price of the injected assets and the assets to be purchased was RMB 1699.5436 million yuan). The par
value in the issuance was RMB 1.00 per share and the issuance price was RMB 8.09 per share; 2) The Company
has issued 48965408 non-public shares of the Company to Beijing Grain Group for the purpose of purchasing
the supporting funds raised from the assets of the issuance of shares. The par value per share of the Company was
RMB1.00 and the issuance price was RMB8.82 per share. The shareholder Beijing Grain Group conducted
subscription in monetary funds. Upon completion of the issue the registered capital was RMB 685790364.00
and the share capital was RMB 685790364.00. Beijing Grain Group which accounted for 42.06% of the total
number of shares became the largest shareholder of the Company.On November 21 2019 with the approval of Beijing Shounong Food Group Co. Ltd. (Beijing Shounong
Food publish [2019] No. 212) Approval on the Plan of Purchasing Assets by Cash and Issuing Shares of HainanJingliang 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 2024 the company has issued 726950251.00 shares and the company's share capital is
726950251.00 yuan; Uniform Social Credit Code: 914600002012845568; Registration authority: Hainan Market
Supervision Administration; Company type: Limited Company (Listed State-controlled); Registered address: F29
Dihao Building Pearl River Square Binhai Avenue Haikou City; Legal representative: WangChunli.
2.The nature of the Company's business and its main business activities
The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main business
activities mainly includes: food beverages oilseeds and by products vegetable proteins and their products
organic fertilizers microbial fertilizers production and marketing of agricultural fertilizers; land consolidation
soil remediation; agricultural comprehensive planting development animal husbandry and aquaculture
agricultural equipment production and marketing; computer network technology investment in communication
projects research and development and application of high-tech products; investment and consultation of
environmental protection projects; animation graphic design; import and export trade in goods and technology;
rental of own premises.The Company and its subsidiaries are principally engaged in the processing production 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.Business Cycle
From 22 March 1988 to 20 September 2025.
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 26th 2024.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 concernThe Company has a going concern capability for 12 months from the end of the reporting period and no
material matters affecting the company's going concern capability were found. Therefore the financial statements
are presented on a going concern basis is reasonable.III.Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing production 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 asrevenue recognition. For details please refer to the descriptions in Note Ⅲ 27 “Revenue".
1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to the
requirements of the Accounting Standards for Business Enterprises and their application guidelines explanations
and other relevant provisions (collectively referred to as "ASBE") and truly and completely reflect the Company's
financial status operating results cash flow and other relevant information.In addition this financial report has been prepared with reference to the presentation and disclosurerequirements of the “Rules Governing the Preparation of Disclosure of Information by Companies OfferingPublic Securities No. 15 - General Provisions on Financial Reporting” (Revised 2023) issued by the Securities
and Futures Commission.
2. Accounting Period
The accounting period of the Company is divided into an annual period and an interim period. The
accounting interim period refers to the reporting period shorter than a full accounting year. The fiscal year of the
Company adopts the Gregorian calendar year that is from January 1 to December 31 of each year.
3. Business Cycle
The normal business cycle is the period from the time the Company purchases assets for processing to the
time when cash or cash equivalents are realized. The Company uses 12 months as a business cycle and uses it as a
liquidity classification standard for assets and liabilities.
4. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries
operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore
subsidiaries of the Company determine USD as their bookkeeping standard currency based on the currencies in
the main economic environment in which they operate. The currency used by the Company in preparing these
financial statements is RMB.
5. Materiality Standards Determination Method and Selection Basis
The company follows the materiality principle when preparing and disclosing financial reports. If disclosurematters 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
6. The Accounting Treatment of Business Combination under the Same Control and Different Control
Business Combination refers to the transaction or event in which two or more separate enterprises are merged
to form one reporting entity. Business combination can be divided into business combination under the same
control and business combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties
before and after the combination and the control is not temporary so it is the business combination under the
same control. In case of business combination under the same control the party that obtains control of other
enterprises participating in the combination on the combination date shall be the combination party and the other
enterprises participating in the combination shall be the merged party. The combination date refers to the date on
which the combination party actually acquires control over the merged party.The assets and liabilities acquired by the combination party are measured at the book value of the merged
party at the date of consolidation including goodwill that was formed during acquisition by end controller. If the
difference between the book value of the net assets acquired by the merging party and the book value of the
merged consideration (or the total par value of the issued shares) paid by the merging party and the capital reserve
(share capital premium) shall be adjusted; If the capital reserve (equity premium) is insufficient to offset the
retained earnings shall be adjusted.The direct expenses incurred by the merging party for the purpose of business combination shall be included
in the profits and losses of the current period when they are incurred.(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple
parties before and after the merger the enterprise merger is not under the same control. In case of business
combination under different control the party that obtains control of other enterprises participating in the
combination on the date of purchase shall be the Purchaser and the other enterprises participating in the
combination shall be the Purchasee. Purchase date means the date on which the Purchaser actually acquires
control of the Purchasee.For business combination under different control the merger cost includes the assets liabilities and fair value
of equity securities issued by the Purchaser in order to obtain the control over the Purchasee on the date of
purchase and the intermediary fees such as audit legal service appraisal and consultation and other management
fees for the enterprise merger are used to record into the profits and losses of the current period when incurred.The transaction costs of equity or debt securities issued by the Purchaser as a merger consideration are included in
the initial recognition amount of the equity or debt securities. Contingent consideration involved shall be included
in the consolidation cost at its fair value at the purchase date and the consolidation goodwill shall be adjusted
accordingly if new or further evidence of the existence of circumstances at the purchase date appears within 12
months after the purchase date and the adjustment or consideration is required. The consolidation cost incurred by
the Purchaser and the identifiable net assets acquired during the consolidation are measured at the fair value at the
date of purchase. The difference between the merger costs and the fair value shares of the identifiable net assets of
the Purchasee at the purchase date obtained in the merger is recognized as goodwill. If the combined cost is less
than the fair value of the identifiable net assets of the Purchasee in the merger first the fair value of the
identifiable assets liabilities and contingent liabilities of the Purchasee and the measurement of the consolidation
cost shall be re-checked. If the consolidation cost is still smaller than the fair value share of the identifiable net
assets of the Purchased obtained in the consolidation after the re-check the difference shall be recorded into the
profits and losses of the current period.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) ofNote Ⅲ ) it is determined whether the multiple transactions belong to the "package deal". In the case of a
"package deal" the accounting treatment shall be performed with reference to the description in the preceding
paragraphs of this section and Note Ⅲ 15 "Long-term Equity Investments"; If the transaction is not a "package
deal" the accounting treatment shall be distinguished between the individual financial statements and the
consolidated financial statements:
In the individual financial statements the sum of the book value of the equity investment held by the
Purchaser prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the
initial investment cost of the investment; Where the equity of the Purchased held before the date of purchase
involves other comprehensive income the other consolidated income associated with the investment is accounted
for on the same basis as the assets or liabilities directly disposed of by the Purchaser (i.e. except for the
corresponding share in the change caused by the acquisition of the net liability or net assets of the defined benefit
plan remeasured in accordance with the equity method the rest is transferred to the current investment income).In the consolidated financial statements the equity of the Purchased held prior to the date of purchase is
remeasured according to the fair value of the equity at the date of purchase and the difference between the fair
value and the carrying value is included in the investment income of the current period; Where the equity of the
Purchasee held before the date of purchase involves other comprehensive income other consolidated income
related thereto shall be accounted for on the same basis as the direct disposal of the relevant assets or liabilities by
the Purchaser (i.e. except for the corresponding share in the change caused by the acquisition of the net liability
or net asset of the defined benefit plan remeasured in accordance with the equity method the rest is converted into
the investment income of the current period to which the acquisition date belongs).
7. Criteria for the Judgment of Control and Methods for the Preparation of Consolidated Financial
Statements.
(1) Criteria for the Judgment of Control
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control
means that the Company has the authority over the Investee enjoys a variable return by participating in the
relevant activities of the Investee and has the ability to use its authority over the Investee to influence the amount
of such return. The scope of the merger includes the Company and all its subsidiaries. Subsidiary refers to the
main body controlled by the Company.The Company will re-evaluate the above control definitions once the relevant facts and circumstances change
which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production
and operation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be
included in the scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of the
operating results and cash flows prior to the date of disposal have been appropriately included in the consolidatedincome statement and consolidated cash flow statement; For subsidiaries disposed of in the current period the
opening amount of the consolidated balance sheet is not adjusted. The operating results and cash flows of
subsidiaries increased by consolidation after purchase have been properly included in the consolidated income
statement and consolidated cash flow statement and the opening and comparative amounts in the consolidated
financial statements have not been adjusted for subsidiaries that are not under the same control. The operating
results and cash flows of the subsidiaries increased by consolidation under the same control from the beginning of
the consolidation period to the consolidation date have been appropriately included in the consolidated profit
statement and consolidated cash flow statement and the comparative amount of the consolidated financial
statements has been adjusted at the same time.In the preparation of the consolidated financial statements if the accounting policies or accounting periods
adopted by the subsidiaries are inconsistent with those adopted by the Company necessary adjustments shall be
made to the financial statements of the subsidiaries in accordance with the accounting policies and accounting
periods of the Company. For subsidiaries acquired through business combination under different control the
financial statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of
purchase.All significant transaction balances transactions and unrealized profits within the Company are offset at the
time of preparation of the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the
Company for the current period are separately presented as minority shareholders' equity and minority
shareholders' profit or loss in the consolidated financial statements under shareholders' equity and net profit. The
shares of minority shareholders' equity in the net profits and losses of subsidiaries for the current period are shown
as "minority shareholders' profits and losses" under the net profit item in the consolidated income statement.Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the
shareholders' equity of the subsidiary at the beginning of the period and still decrease by a number of
shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the
purchase date according to the original shareholding proportion shall be included in the investment income of the
current period of loss of control. Other comprehensive income related to the equity investment of the original
subsidiary in the event of loss of control the accounting treatment is performed on the same basis as the direct
disposal of the relevant assets or liabilities by the Purchased (i.e. converted to current investment income except
for changes resulting from the re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the
original subsidiary). Thereafter the residual equity shall be 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 asdetailed in Note Ⅲ 15-Long-term Equity Investment or Note Ⅲ 11-Financial Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses control through
multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equity investment
in subsidiaries until it loses control belong to a package deal or not. The terms conditions and economic impact of
the transactions for the disposal of equity investments in subsidiaries are in accordance with one or more of the
following circumstances and generally indicate that multiple transactions should be accounted for as a package
deal: * These transactions were entered into simultaneously or taking into account each other's influence; *
Only when these transactions are taken together can a complete business result be achieved; * The occurrence of
one transaction depends on the occurrence of at least one other transaction; * It is not economical to consider a
transaction alone but it is economical to consider it in conjunction with other transactions. For transactions that
are not part of the package deal each transaction shall be accounted for in accordance with the principles
applicable to the "partial disposal of long-term equity investments in subsidiaries without loss of control" (as
detailed in 15 of Note Ⅲ) and the "loss of control over existing subsidiaries as a result of the disposal of part of
the equity investments or other reasons" (as detailed in the preceding paragraph) as appropriate. If the
transactions involving the disposal of equity investments in subsidiaries until the loss of control belong to a
package deal the transactions shall be accounted for as a transaction involving the disposal of subsidiaries and the
loss of control; However the difference between each disposal price and the share of the subsidiary's net assets
corresponding to the disposal investment prior to the loss of control is recognized in the consolidated financial
statements as other consolidated gains and transferred to the profit or loss for the current period of loss of control
in the event of loss of control.
8 Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The
Company divides the joint venture arrangement into joint operation and joint venture in accordance with the rights
and obligations it enjoys in the joint venture arrangement. A joint operation is a joint arrangement whereby the
parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities
relating to the arrangement. A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture.The Company's investment in the joint venture is accounted for using the equity method and shall be treated
in accordance with the accounting policy described in Note Ⅲ 15 "Long-term Equity Investment Accounted by
the Equity Method".The Company as a joint venture party recognizes the assets and liabilities held and assumed by the
Company separately and recognizes the assets and liabilities jointly held and assumed by the Company according
to the shares of the Company; recognizes the revenue generated from the sale of the share of joint operating
output enjoyed by the Company; recognizes revenue generated from the sale of output from joint operations on
the basis of the Company's share; confirms the expenses incurred by the Company individually and the expenses
incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute business the same
below) or purchases assets from the joint venture the Company recognizes only the portion of the profits and
losses attributable to the other participants in the joint venture that arises from the transaction prior to the sale of
such assets to a third party. Where such assets are impaired in accordance with the provisions of Accounting
Standards for Business Enterprises No.8-Impairment of Assets the Company shall fully recognize such losses in
the case where the assets are cast or sold by the Company to joint operations; For the assets purchased by the
Company from the joint operation the Company recognizes the losses according to the shares it assumes.
9. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand deposits that can be readily withdrawn on
demand. Cash equivalents are investments held by the Company with a short term (usually maturing within three
months from the date of purchase) high liquidity 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 valuedetermination shall be adopted for conversion. The difference between the converted amount in functional
currency and the amount in original functional currency shall be treated as the change in fair value (including the
change in exchange rate) and shall be recorded into the profits and losses of the current period or recognized as
other comprehensive income.
(3) Translation method for financial statements in foreign currencies
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 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 operationsshall 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
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 thesefinancial 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 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 impactof 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 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 transferred
to the transferee the recognition of the financial asset shall be terminated. If almost all risks and rewards on theownership of a financial asset are retained the recognition of the financial asset shall not be terminated. If almost
all risks and rewards related to the ownership of financial assets have not been transferred or retained it shall
continue to judge whether the enterprise retains control over the assets and carry out accounting treatment
according to the principles mentioned in the preceding paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved the Company terminates
the recognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an
agreement to replace the original financial liabilities by assuming new financial liabilities. If the contract terms of
the new financial liabilities and the original financial liabilities are substantially different the original financial
liabilities shall be derecognized and a new financial liability shall be recognized at the same time. If the Company
makes any substantial modification to the contract terms of the original financial liability (or part thereof) the
original financial liability shall be derecognized and a new financial liability shall be recognized in accordance
with the modified terms.If financial liabilities (or part thereof) are derecognized the Company shall include the difference between its
book value and the consideration paid (including transferred non-cash assets or liabilities assumed) into the
current profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial
liabilities and such legal right is currently enforceable and the Company plans to settle the financial assets on a
net basis or realize the financial assets and settle the financial liabilities at the same time the financial assets and
financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition financial assets
and financial liabilities shall be listed separately in the balance sheet and shall not be offset against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a
liability in an orderly transaction on the measurement date. Where there is an active market for financial
instruments the Company adopts quotations in the active market to determine their fair values. Quoted price in
active market refers to the price easily obtained from exchanges brokers industry associations pricing service
agencies etc. on a regular basis and represents the price of market transactions actually occurred in fair trading. If
there is no active market for financial instruments the Company uses evaluation techniques to determine their fair
values. Evaluation techniques include reference to prices used in recent market transactions by parties familiar
with the situation and 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 beobtained 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
(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 recognitionIf the default probability of a certain financial asset in the expected duration determined at the balance sheet
date is significantly higher than the default probability in the expected duration determined at the time of initial
recognition it indicates that the credit risk of the financial asset is significantly increased. Except for special
circumstances the Company uses the change of default risk in the next 12 months as a reasonable estimate of the
change of default risk in the entire duration to determine whether the credit risk has increased significantly since
the initial recognition.Generally if the overdue period is more than 90 days the Company will consider that the credit risk of the
financial instrument has increased significantly unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.The Company will consider the following factors when evaluating whether the credit risk has increased
significantly
1) Whether there is any significant change in the actual or expected operating results of the debtor;
2) Whether there is any significant adverse change in the regulatory economic or technological environment
of the debtor;
3) Whether there is any significant change in the value of the collateral or the quality of the guarantee or
credit enhancement provided by the third party which are expected to reduce the economic motivation of the
debtor's repayment according to the time limit stipulated in the contract or affect the probability of default;
4) Whether there is any significant change in the expected performance and repayment behavior of the
debtor;
5) Whether there is any significant change in the Company's credit management methods for financial
instruments etc.On the balance sheet date if the Company judges that the financial instrument has only low credit risk the
Company assumes that the credit risk of the financial instrument has not increased significantly since the initial
recognition. If the default risk of a financial instrument is low the borrower's ability to perform its contractual
cash flow obligations in a short period of time is strong and even if there are adverse changes in the economic
situation and operating environment for a long period of time it may not necessarily reduce the borrower's ability
to perform its contractual cash obligations then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset the
financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial
assets includes the following observable information:
1) The issuer or debtor has major financial difficulties;
2) The debtor violates the contract such as default or overdue payment of interest or principal etc.;
3) The creditor gives concessions that the debtor will not make under any other circumstances due toeconomic or contractual considerations related to the debtor's financial difficulties;
4) The debtor is likely to go bankrupt or undergo other financial restructuring;
5) The active market of the financial assets disappears due to the financial difficulties of the issuer or the
debtor;
6) Purchase or generate a financial asset at a substantial discount which reflects the fact that credit losses
have occurred.Credit impairment of financial assets may be caused by the combined action of multiple events but may not
be caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks such as:
Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or
arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment
obligation.In addition to the financial assets with individual credit risk assessment the Company divides the financial
assets into different groups based on the common risk characteristics. The common credit risk characteristics
adopted by the Company include: Credit risk shall be assessed on the basis of the aging portfolio the receivables
portfolio between the final controlling party and its subordinate units the public maintenance fund and house
selling fund portfolio deposited in the housing provident fund management center the deposit/margin portfolio
and the petty cash ledger portfolio formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period the Company calculates the estimated credit losses of various financial assets. If the
estimated credit losses are greater than the book amount of its current impairment reserve the difference is
recognized as impairment loss. If it is less than the carrying amount of the current impairment reserve the
difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
* Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount
equivalent to the entire duration. Based on the credit risk characteristics of bills receivable they are divided into
different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
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 lossexperience 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
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 revolving materials inventory goods and materials in transit etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs processing costs and otherexpenditures. 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
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. Held-for-sale assets and disposal group
(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 asheld-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset or
to-be-disposed portfolio is initially measured or measured on the balance sheet date the book value shall be to the
net amount of fair value minus sales expenses and the written-down amount shall be recognized as asset
impairment loss and included in current period profit or loss. The provision for impairment loss of the
held-for-sale asset shall be accrued. For a Disposal Portfolio the confirmed impairment loss shall deduct the book
value of the goodwill in the Disposal Portfolio then deduct the book value of the non-current assets determined
by the measurement on a pro-rata basis in accordance with the applicable Accounting Standards for Business
Enterprises No. 42 held-for-sale non-current assets Disposal Portfolio and Termination of Operations (hereinafter
referred to as the “Guide for Held-For-Sale”). In the event of an increase of the book value of the held-for-sale
Disposal Portfolio minus sales expenses on the subsequent the balance sheet date the amount previously written
down shall be recovered and be reversed within the mount of the asset impairment loss recognized in the
non-current assets measured by the measurement “Guide for Held-For-Sale” after being classified as held for sale
asset the reversal amount shall be included in the current period profit or loss and the book value of all
non-current assets (except for goodwill) determined by the measurement on a pro-rata basis in accordance with
the applicable “Guide for Held-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill
that has been deducted and the impairment loss of the assets recognized before the classification of the
held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall not be
reversed.In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio there is no accrual
or amortization for depreciation and the interest from and other expenses from the liabilities in held-for-sale
Disposal Portfolio shall still be recognized.When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category
non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or
the non-current asset will be removed from the Held-For-Sale Disposal Portfolio and be measured based on one
of the following two values whichever is lower: (1) The book value before being classified as held-for-sale
category adjusted based on the depreciation amortization or impairment that should have be confirmed if it is not
classified as held-for-sale category; (2) recoverable amount.
(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 comprising
the total of:i) the post-tax profit or loss of continuing operation and discontinued operations. Profit and Loss fromthe discontinued operation shall listed as Discontinued Operation Profit and Loss which comprises of the entire
reporting period not only recognized as the reporting period after the termination of the operation.
15. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the
Company has control joint control or significant influence on the invested entity. The long-term equity investment
of the Company that does not have control joint control or significant impact on the investee shall be accounted
as a financial asset measured at fair value with its changes included into the current profits and losses. Among
them if it is non-transactional the Company may choose to designate it as a financial asset measured at fair value
and its changes are included in the accounting of other comprehensive income at the time of initial recognition.For details of its accounting policies please refer to Note Ⅲ 11 “Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement in
accordance with relevant agreements and relevant activities of the arrangement can only be decided based on the
consensus of all parties sharing the control rights before making a decision. Significant Influence refers to power
of the Company to participate in the decision-making of the financial and operating policies of the investee but
the Company cannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control the
apportioned share of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of
the long-term equity investment and the cash paid the non-cash assets transferred and the book value of the debts
assumed; if the capital reserve is insufficient for offsetting the retained earnings shall be adjusted. Where the
equity securities are issued as merger consideration the apportioned share of the book value in the final
controller's consolidated financial statements on the combination date in accordance with the shareholders' equity
shall be the initial investment cost of the long-term equity investment and the total par value of the issued shares
is taken as the share capital. The capital reserve shall be adjusted subject to the difference between the initial
investment cost of the long-term equity investment and the total par value of the shares issued; if the capital
reserve is insufficient for offsetting the retained earnings shall be adjusted. Where the equity of combined parties
under the same control is obtained through multiple transactions and a business combination under the same
control is formed finally it shall be treated differentially based on whether it is a “package deal”: if it belongs to a
“package deal” all transactions will be treated as a transaction that obtains control. If it is not a “package deal”
the apportioned share of the book value in the final controller's consolidated financial statements on the
combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term
equity investment. The capital reserve shall be adjusted subject to the difference between the initial investment
cost of the long-term equity investment and the sum of the book value of long-term equity investment before
combination date and the book value of the new consideration for the new share on the combination date. If the
capital reserve is insufficient for offsetting the retained earnings shall be adjusted. The equity investments that areheld 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
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 considerationbut not yet issued the current investment income shall be recognized according to the cash dividends or profits
declared by the investee.* Long-term equity investment accounted for by Equity Method
When accounting with Equity Method if the initial investment cost of a long-term equity investment is
greater than the fair value share of the identifiable net assets of the investee when investing and the initial
investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less than
the fair value share of the identifiable net assets of the investee when investing the difference shall be included in
the current profit and loss and the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method the investment income and other comprehensive income are
recognized separately according to the shares of the net profit or loss and other comprehensive income that should
be enjoyed or shared and the book value of the long-term equity investment should be adjusted at the same time.The book value of long-term equity investment is reduced accordingly by calculating the share that should be
enjoyed according to the profit or cash dividend declared by the investee. The book value of long-term equity
investment shall be adjusted and included in the capital reserve for other changes in the owner's rights and
interests of the invested entity other than the net profit and loss other comprehensive income and profit
distribution. When confirming the share of the net profit and loss of the investee the net profit of the investee
shall be adjusted and confirmed on the basis of the fair value of the identifiable assets of the investee at the time of
investment. If the accounting policies and periods adopted by the invested entity are inconsistent with the
Company the 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 resumerecognizing the share of income after making up for the unrecognized share of loss.For the long-term equity investment in the joint ventures and associates held by the Company for the first
time before the implementation of the new accounting standards if there is a debit balance of equity investments
related to the investment the current profits and losses shall be accounted for by the straight-line amortization of
the original remaining period.
(3) Acquisition of Minority Equity
In the preparation of the consolidated financial statements if the difference between the long-term equity
investment added by purchasing minority shares and the net assets share that should be continuously calculated by
the subsidiary company from the purchase date (or the consolidation date) is calculated according to the
proportion of newly added shares the retained earnings shall be adjusted; and if the capital reserve is insufficient
to offset the retained earnings shall be adjusted.
(4) Disposal of long-term equity investment
In the consolidated financial statements the parent company partially of disposes of the long-term equity
investment of the subsidiary without losing control the difference of the corresponding net assets in the subsidiary
between the disposal price and the disposal of the long-term equity investment is included in the shareholders'equity. it shall be treated in accordance with the relevant accounting policies described in “Notes on thepreparation 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
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 equityshall 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 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-TermAsset Impairment”.When the self-use property or inventory is converted into investment property or investment property is
converted into self-use property the book value before conversion is used as the recorded value after conversion.When the use of investment property is changed to self-use the investment property is converted into fixed
assets or intangible assets from the date of change. When the use of self-use property changes to earn rent or
capital appreciation the fixed assets or intangible assets are converted into investment property from the date of
change. In the case of investment property measured by the cost model when the conversion occurs the book
value before conversion is used as the entry value after conversion; if it is converted into investment property
measured by the fair value model the fair value of the conversion date is used as the entry value after conversion.When an investment real estate is disposed of or permanently withdrawn from use and is not expected to
obtain economic benefits from its disposal the confirmation of the investment real estate shall be terminated.Disposal income from the sale transfer retirement or damage of investment properties is charged to the current
profit and loss after deducting its book value and related taxes and fees.
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 period
Net salvage rate Annual depreciation rate
(Year) (%) (%)
Buildings straight-line depreciation 8-50 5 1.90— 11.88
Machinery equipment straight-line depreciation 5-28 4、5 3.39—19.20
Transport facility straight-line depreciation 5-10 4、5 9.50—19.20
Electronic equipment straight-line depreciation 3-10 4、5 9.50—32.00
Office equipment straight-line depreciation 3-10 4、5 9.50—32.00
Other equipment straight-line depreciation 5-28 4、5 3.39—19.20The 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 Note
Ⅲ. 23 “Long-TermAsset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an
asset and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased
asset at the expiration of the lease term the depreciation shall be calculated within the useful life of the leased
asset; If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term
depreciation shall be calculated within a relatively short period of the lease term and the service life of the leased
assets.
(5) Others
The subsequent expenses related to fixed assets if the economic benefits related to the fixed assets are likely
to flow in and their costs can be reliably measured are included in the cost of fixed assets and the book value of
the replaced part should be terminated. The subsequent expenditures other than mentioned as above are
recognized in profit or loss in the period in which they are incurred.The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic
benefits by using or 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
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 theacquisition 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
At the commencement date of the lease the Group recognizes the right to use the leased assets during the
lease term as a right-of-use asset including: the initial measurement amount of the lease liability; the amount of
lease payment paid on or before the beginning of the lease term the amount of lease incentive already enjoyed
shall be deducted if there is a lease incentive; initial direct expenses incurred by the lessee; the costs that the lessee
is expected to incur in order to dismantle and remove the leased asset restore the leased asset to the site or restore
the leased asset to the state agreed upon in the lease terms. The right-of-use assets are depreciated on a
straight-line basis subsequently by the Group. If the Group is reasonably certain that the ownership of the
underlying asset will be transferred to the Group at the end of the lease term the Group depreciates the asset from
the commencement date to the end of the useful life of the asset. Otherwise the Group depreciates the assets from
the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term.The company recognizes and measures the above costs under Item 4 in accordance with the
Accounting Standards for Enterprises No.13–Contingencies.
(2) Subsequent accounting
The Company accursed the right-of-use assets according to the Accounting Standards for Enterprises
NO.4-Fixed Assets. Commencement from the date of lease the Company shall accrue the right-of-use assets.Generally the right-of-use assets are accrued at the start of the lease date the expenses of depreciation accrued
shall include into relevant asset cost or profit and loss in the current period based on the purpose of right-of-use
assets. While recognizing the method of right-of-use assets the Company shall make decisions on the economic
benefit of forecast consumption mode related to the right-of-use assets accrues the deprecation by straight-line
method. When the Company recognize the depreciation period of right-of-use assets maturity of lease period can
be determined in a reasonable and well-grounded manner on the acquisition of the right-of-use assets accursed
the deprecation in its remaining service life. If the right-of-use lease assets could not be determined reasonably
while the service life is mature depreciation is applied with the short period of time between the lease term and
the remaining useful life of the lease asset.If there is impaired right-of-use assets the Company shall accrue the subsequent deprecation based on the
book value of right-of-use assets after deducting the loss of impairment.The Company determined not to recognized the right-of-use assets and lease liabilities on the short-term
lease (lease term not exceeding 12 months) and recognizes the relevant lease payment during the respective lease
term in the current profit and loss or cost of assets relevant in straight line method. Impairment test methodand the provision method for diminution in value of right-of-use assets are detailed in Note III 23 “Long-TermAsset 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 proceduresfor 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
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 theintangible assets will be used internally which can prove its usefulness;
d. sufficient technical financial resources and other resources for supporting the development of the
intangible assets and the ability to use or sell the intangible assets.e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.If it is impossible to distinguish the expenditures between research phase and development phase all research
and development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method please refer to Note Ⅲ. 23
“Long-TermAsset Impairment”.
22. 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.
23. Long-term assets impairment
For fixed assets construction in progress intangible assets with limited useful life investment property
measured by cost model and non-current non-financial assets such as long-term equity investments in subsidiaries
joint ventures and associates the Company determines whether there is any indication of impairment on the
balance sheet date. If there is any indication of impairment the recoverable amount is estimated and the
impairment test is carried out. Goodwill intangible assets with uncertain service life and intangible assets that not
yet ready for use are tested for impairment annually regardless of whether there is any indication of impairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book
value the impairment provision is made based on the difference and is included in the impairment loss. The
recoverable amount is the higher of the fair value of the asset less the disposal expense and the present value of
the estimated future cash flow of the asset. The fair value of assets is determined according to the sale agreement
price in a fair transaction. If there is no sales agreement but there is an active market for the asset the fair value is
determined according to the buyer's bid for the asset; if there is neither sales agreement nor active market for
assets the fair value of assets shall be estimated based on the best information available. Asset disposal expenses
include legal fee taxes transportation expenses and direct expenses incurred to make assets saleable. The present
value of the estimated future cash flow of an asset is determined by the appropriate discount rate discounting and
the estimated future cash flow generated by the asset during its continuous use and final disposal. The asset
impairment provision is calculated and confirmed based on individual assets. If it is difficult to estimate the
recoverable amount of an individual asset the recoverable amount of the asset is determined by the asset group
which the asset belongs to. An asset group is the smallest portfolio of assets that can generate cash inflows
independently.The book value of the goodwill listed separately in the financial statements is amortized into asset groups or
portfolios that are expected to benefit from the synergies of business combinations when impairment tests are
conducted. The test results show that the recoverable amount of the asset group or portfolio containing the
assessed goodwill is lower than its book value the corresponding impairment losses should be confirmed. The
amount of impairment loss is first deducted from the book value of the goodwill amortized to the asset group or
portfolio and then deducted proportionally from the book value of other assets according to the proportion of the
book value of assets other than goodwill in the asset group or portfolio.Once the above asset impairment loss is confirmed it will not be reversed to the part where the value is
restored in the future period.
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 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 dismissalbenefits. 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 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 Paymentsinclude 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 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 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.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 customerexcluding 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 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 contractconsideration 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 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 costContract 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 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 measuredaccording to the amount received or receivable. If the government grants are non-monetary assets they shall be
measured at the fair value; if the fair value cannot be obtained reliably they shall be measured at the nominal
amount. Government grants measured in nominal amounts shall be recognized directly in current profits and
losses.The Company usually confirms and measures the government grant according to the amount when it is
actually received. However if there is conclusive evidence at the end of the period that the relevant conditions
stipulated in the financial support policy can be met and the financial support funds are expected to be received it
shall be measured according to the amount receivable. Government grants measured in accordance with the
amount receivable shall meet the following conditions at the same time: (1) The amount of the subvention
receivable has been confirmed by the authorized government departments or can be reasonably calculated
according to the relevant provisions of the formally issued financial fund management measures and there is no
significant uncertainty in the amount expected; (2) According to the "Regulations on the Openness of Government
Information" that the local financial department officially released and in accordance with the provisions of the
"Regulations on the Openness of Government Information" the financial support project and its financial fund
management measures should be inclusive (any eligible enterprise can apply for them) rather than being
specifically tailored to specific companies; (3) The relevant grant approval has clearly promised the payment
period and the allocation of the payment is guaranteed by the corresponding budget so it can be reasonably
ensure that it can be received within the prescribed time limit; (4) Other relevant conditions (if any) to be met in
accordance with the specific circumstances of the Company and the grants.Government grants related to assets are recognized as deferred earnings and are divided into current profits
and losses in a reasonable and systematic way during the service life of the assets concerned. The government
grants related to revenue which are used to compensate for the related cost or loss in the subsequent period shall
be recognized as deferred income and shall be recognized in profit or loss in the period in which the related costs
or losses are recognized; if it is used to compensate the related costs or losses that has occurred it shall be directly
recognized in the current profit and loss.It includes government grants related to both assets and income and different parts are separately classified
for accounting treatment; if it is difficult to distinguish the whole is classified as government grants related to
income.Government grants related to the daily activities of the Company shall be included in other income or cost
deductions according to the nature of the economic business; government subsidies unrelated to daily activities
shall be included in the non-operating revenues and expenses.When the recognized government grants need to be returned if there are relevant deferred earnings balances
the book balance of related deferred earnings shall be deducted and the excess part shall be included in the
current profits and losses or the book value of assets shall be adjusted otherwise the book value of assets shall be
directly included in the current profits and losses.The company will obtain preferential policy loans discount in accordance with the finance will be allocatedto 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 Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current and previous
periods are measured by the expected amount of income tax payable (or returned) in accordance with the
provisions of the Tax Law. The amount of taxable income on which current income tax expenses are calculated is
based on the corresponding adjustment of pre-tax accounting profits in the reporting period in accordance with the
relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis and the temporary
difference between the book value of items that are not recognized as assets and liabilities but which can be
determined as their tax basis according to the tax law are confirmed by the balance sheet liability method.Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition
of an asset or liability arising from a transaction that is neither a business combination nor an accounting profit or
taxable income (or deductible loss) relevant deferred income tax liabilities shall not be recognized. In addition
for taxable temporary differences related to investments in subsidiaries associates and joint ventures if the
Company is able to control the turnaround time of temporary differences and the temporary difference is unlikely
to be reversed in the foreseeable future the related deferred income tax liabilities shall not be recognized. Except
for the above exceptions the Company recognizes all other deferred income tax liabilities arising from taxable
temporary differences.Taxable temporary differences which related to the initial recognition of an asset or liability arising from a
transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss)
relevant deferred income tax liabilities shall not be recognized. In addition for taxable temporary differences
related to investments in subsidiaries associates and joint ventures if the temporary difference is unlikely to be
reversed in the foreseeable future or the amount of taxable income used to offset the temporary difference is
unlikely to be obtained in the future the deferred income tax assets concerned shall not be recognized. Except for
the above exceptions the Company recognizes other deferred income tax assets that can offset temporarydifferences subject to the amount of taxable income that is likely to be obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years the corresponding
deferred income tax assets are recognized to the extent that it is probable that the future taxable income shall be
used to offset the deductible losses and tax credits.On the balance sheet date the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates in the period in which the related assets are recovered or the related liabilities
are recovered in accordance with the tax laws.On the balance sheet date the book value of deferred income tax assets is reviewed. and the book value of
deferred income tax assets is written down if it is likely that sufficient taxable income will not be available to
offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient taxable
income the amount written down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.In addition to recognizing that the current income tax and deferred income tax related to other transactions
and matters directly included in shareholder's rights and interests shall be recognized in other comprehensive
income or shareholder's rights and interests and the book value of adjusted goodwill from deferred income tax
resulting from the merger of enterprises the other current income tax and deferred income tax expenses or gains
shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time the company's current income 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 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 benefitsarising 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 by
the lease renewal option. The Company has the option to terminate the lease that is the right to terminate the
lease of the asset Provided that it is reasonably determined that the option will not be exercised the lease period
includes the period covered by the option to terminate the lease. Where a material event or change within the
control of the Company occurs and affects whether the Company reasonably determines that the appropriate
option will be exercised... The Company will determine to exercise the option of renewing the lease re-evaluation
of the option to purchase or not to exercise the option to terminate the leas on its reasonability.
2)Subsequent measurement
The Company adopts the straight-line method to depreciate the right to use assets. Where it is reasonable to
determine that the leased assets are to be owned upon expiry of the lease term the Company shall calculate the
leased assets within the remaining useful life of the leased assets. If the ownership of the leased assets upon expiry
of the lease term is unable to be reasonably determined the Company shall accrue depreciation within a short
period of time between the lease term and the remaining useful life of the leased assets. The interest expenses ofthe 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:
* 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 leasedasset is a new asset is identified as a low-value asset lease. Where the Company subleases or intends to sublease
leased assets the original lease is not deemed to be a low-value asset lease. The relevant asset cost or current
profit or loss is recognised on a straight-line basis during each period of the lease term and the contingent rent is
recognised in current profit or loss when actually incurred
(2) The company records operating lease business as a lessor
The lease commencement date essentially transfers almost all the risks and rewards associated with the
ownership of the leased asset to finance leases and all other leases are operating leases
1) Operating lease
The rental income of operating lease shall be recognized as current profit and loss according to the
straight-line method during each period of the lease period. The larger initial direct expenses are capitalized when
occurring and the profits and losses of the current period shall be recorded in stages on the same basis as the
recognized rental income during the whole lease period; the smaller initial direct expenses shall be recorded in the
profits and losses of the current period when occurring. Contingent rentals shall be included in current profits and
losses when actually occurring.
2) Finance lease
At the beginning date of the lease term the Company recognizes the financial lease payment receivable for
the financial lease and terminates the recognition of the financial lease assets. When the Company makes the
initial measurement of the financial lease receivable the net lease investment is taken as the recorded value of the
financial lease receivable. The net lease investment is the sum of the unsecured balance and the present value of
the lease proceeds not yet received at the commencement date of the lease term discounted at the intrinsic interest
rate of the lease. The Company calculates and recognizes interest income for each period of the lease term based
on the inherent interest rate of the lease.The Company presents financial lease receivables as long-term receivables and financial lease receivables
received within one year (including one year) from the balance sheet date are presented as non-current assets
maturing within one year.
32. Other important accounting policies and accounting estimates
(1) Hedge accounting
In order to avoid some risks the Company hedges some financial instruments as hedging instruments. For
the hedges meeting the specified conditions the Company adopts the hedge accounting method for treatment. The
hedging of the Company is fair value hedging.At the beginning of hedging the Company formally designates hedging instruments and hedged items and
prepares written documents on hedging relationship and risk management strategy and risk management
objectives of the Company engaged in hedging. In addition the Company will continuously evaluate the
effectiveness of hedging at the beginning and after the hedging.(2) Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions the profits or losses
arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the
non-trading equity instrument investment (or its components) that is measured at fair value and whose changes are
included in other comprehensive income the gains and losses generated by the hedging instrument are included in
other comprehensive income. The profit or loss of the hedged item due to the hedged risk exposure shall be
included into the current profits and losses and the book value of the hedged item shall be adjusted at the same
time. If the hedged item is measured at fair value the gain or loss of the hedged item due to the hedged risk does
not need to adjust the book value of the hedged item and the relevant gains and losses are included into the
current profits and losses or other comprehensive income.When the Company cancels the designation of the hedging relationship the hedging instrument has expired
or been sold the contract has been terminated or exercised or no longer meets the conditions for the application
of hedge accounting the application of hedge accounting shall be terminated.
33. Significant accounting judgments and estimates
There is no significant change on the accounting judgments and estimates.IV. Taxes
1. Main Taxes and Tax Rates
Types Tax Basis Tax Rate
After deducting the allowable amount of input tax deducted in
the current period the difference between the sales of goods
Value Added Tax taxable services and taxable services income calculated in 1%、3%、5%、6%、9%、
accordance with the provisions of the Tax Law is the taxable 10%、13%
value-added tax.Urban Maintenance
& Construction Tax According to the actual value-added tax 7%、5%
Extra charges of
education funds According to the actual value-added tax 3%
Local Extra
Charges of According to the actual value-added tax 2%
Education Funds
Corporate Taxes According to taxable income 25%、20%、17%、15%
According to 70% of original value of the real estate (or rental
Property Tax income) as the tax base; according to the original value of the 12%、1.2%
real estate deducted 30% at a time.Representation on tax payers of different enterprise income tax rates:
Tax Payers Income Tax Rate
Hangzhou Lin'an Chunmanyuan Agricultural Development Co. Ltd.
20%
Jingliang (Beijing) Food Marketing Management Co. Ltd.Jingliang (Singapore) International Trade Co. Ltd. 17%Beijing Guchuan Bread Food Co. Ltd. 15%
2. Preferential tax
Beijing Guchuan Bread Food Co. Ltd. a grade-3 subsidiary of the Company is a high-tech enterprise. It
enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rate according to the relevant
provisions of both “Law of the People's Republic of China on Tax Collection and Administration” and “Rules forthe Implementation of the Tax Collection and Administration Law of the People's Republic of China”. It obtained
the certificate of high-tech enterprise No. GR202111000657 valid until September 14 2024. According to the
Announcement of the General Administration of Taxation of the Ministry of Finance on the Policy of Value-added
Tax Deduction for Advanced Manufacturing Enterprises Announcement No. 43 of 2023 from January 1 2023 to
December 31 2027 advanced manufacturing enterprises are allowed to deduct 5% of the value-added tax payable
in accordance with the current deductible input tax.Jingliang (Singapore) International Trade Co. Ltd. a grade-3 subsidiary of the Company levies taxes on the
principle of territoriality. The company is taxed on the territoriality principle. According to Singapore's
preferential tax policy the company enjoys tax exemption plan is as follows: for the first SGD$10000 of taxable
income amount the taxable income amount shall be reduced by SGD$7500; for the portion between SGD$10001
and SGD$200000 the taxable income amount shall be reduced by SGD$95000; For the portion exceeding
SGD$200001 the taxable income amount shall not be reduced. The company shall pay income tax at the rate of
17% on the taxable income amount after exemption.
In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation
“Notice on Preferential Enterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai
Shui[2009] No.70) the grade-3 subsidiary Zhejiang Xiao Wang Zi Food Co. Ltd. the grade-4 subsidiary
Hangzhou Lin’an Xiaotianshi Food Co. Ltd. Linqing Xiao Wang Zi Food Co. Ltd. and Liaoning Xiao Wang Zi
Food Co. Ltd.: Where an enterprise employs persons with disabilities on the basis of deduction according to the
wages paid to the disabled workers it may deduct the amount of taxable income according to 100% of the wages
paid to the disabled workers.Hangzhou Lin’an Xiaotianshi Food Co. Ltd. a grade-4 subsidiary company of the Company is a welfare
enterprise. Since May 2016 it has enjoyed the preferential VAT policy of immediate refund upon payment in
Preferential Value-Added Tax Policies for Promoting the Employment of Disabled Persons (CaiShui [2016]
No.52).The grade-4 subsidiary-Liaoning Xiao Wang ZiFood Co. Ltd. according to the Supplementary
Announcement on Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ
No.140 Clause 13 states that public land such as municipal street square public green etc. can be exempted from
land use tax when computing land use tax the area used in the computation is total area less the area for afforest
and street.The grade-2 subsidiary Jingliang (Beijing) Food Marketing Management Co. Ltd. and the grade-4
subsidiary Hangzhou Lin’an Chunmanyuan Agricultural Development Co. Ltd. are applicable to theAnnouncement on Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and
Commercial Households the State Administration of Taxation Announcement No. 6 2023 the Company meets
the conditions for identification of small and micro enterprises and the applicable preferential policies for 2024
are as follows: "The part of the annual taxable income of small low-profit enterprises not exceeding 1 million
yuan shall be included in the taxable income amount at a reduced rate of 25% and the enterprise income tax shall
be paid at a tax rate of 20%."
The grade-2 subsidiary Jingliang (Beijing) Food Marketing Management Co. Ltd. and Hangzhou Lin’an
Chunmanyuan Agricultural Development Co. Ltd. are applicable to the fiscal and tax No.12 [2023] issued by the
State Administration of Taxation of the Ministry of Finance on the Further Supporting the Development of Micro
and Small Enterprises and Individual Industrial and Commercial Households (No. 12 [2023]. The company meets
the requirements for identification as a small and micro enterprise and the preferential policies applicable in 2024
are as follows: "For small-scale VAT taxpayers small and low-profit enterprises and individual industrial and
commercial households resource tax (excluding water resource taxation) urban maintenance and construction tax
property tax urban land use tax stamp tax (excluding stamp tax on securities transactions) cultivated land
occupation tax education fee surcharge and local education surcharge may be reduced within the 50% tax range.V. Notes on Items in Consolidated Financial Statements
Note: The ‘Opening Balance’ of the period refers to December 31 2023 and the ‘Closing Balance’ of the
period refers to June 30 2024. The prior period refers to January 1 2023 to June 30 2023 and the current period
refers to January 1 2024 to June 30 2024. The currency unit is RMB Yuan.
1.Monetary funds
Items Closing Balance Opening Balance
Cash on hand 16474.45 9949.26
Bank Deposits 554008559.84 533387412.58
Other Currency Funds 95067211.84 119931760.14
Deposit in the Financial Company 532305996.27 890056629.88
Total 1181398242.40 1543385751.86
Among them: the total amount of money deposited abroad 22458482.24 3113810.75
2.Derivative financial assets
Items Closing Balance Opening Balance
Hedging instrument floating profit and loss 31223815.72 31684620.00
Total 31223815.72 31684620.00
3.Accounts Receivable
(1) Disclosed according to aging
Aging Closing Balance Opening BalanceAging Closing Balance Opening Balance
Within 1 Year (including 1 year) 90220633.63 96507223.82
1 to 2 years (including 2 years) 752867.27 762767.27
2 to 3 years (including 3 years) 18497856.00 18497856.00
3 to 4 years (including 4 years) 7499480.04 7499480.04
4 to 5 years (including 5 years)
More than 5 years 328259.50 328259.50
Total 117299096.44 123595586.63
(2) Present according to the method of provision for bad debt
Closing Balance
Type(s) Book Balance Bad Debt Provision
Book Value
Amount Ratio(%) Amount ProvisionRatio(%)
Separate provision for bad
debts 328259.50 0.28 328259.50 100.00
Portfolio provision for
bad debts 116970836.94 99.72 7486954.58 6.40 109483882.36
Total 117299096.44 —— 7815214.08 —— 109483882.36
（Continued）
Opening Balance
Type(s) Book Balance Bad Debt Provision
Amount Ratio(%) Provision
Book Value
Ratio(%)
Separate provision for bad
debts 328259.50 0.27 328259.50 100.00
Portfolio provision for bad
debts 123267327.13 99.73 7486954.58 6.07 115780372.55
Total 123595586.63 7815214.08 115780372.55
A. Separate provision for bad debts
Closing Balance
Name Accounts Bad Debt Provision
Receivable Provision Ratio Provision Reason
Fujian Jingxin Industrial Group Co. Ltd 151844.00 151844.00 100.00 expected unrecoverable
Beijing Guotai Pingan Tianzhu
Commercial Development Co. Ltd. 1809.60 1809.60 100.00 expected unrecoverable
Beijing Rongfa Lida Grain and Oil
Trade Co. Ltd. 163143.00 163143.00 100.00 expected unrecoverable
Beijing Guotai Pingan Department Store
Co. Ltd 10862.90 10862.90 100.00 expected unrecoverableClosing Balance
Name Accounts Bad Debt Provision
Receivable Provision Ratio Provision Reason
Beijing Shunyi Longhua Shopping Mall 600.00 600.00 100.00 expected unrecoverable
Total 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 116970836.94 7486954.58 6.40
Total 116970836.94 7486954.58 6.40
（Continued）
Opening Balance
Name
Accounts receivable Bad Debt Provision Provision Ratio
Credit Risk Portfolio 123267327.13 7486954.58 6.07
Total 123267327.13 7486954.58 6.07
(3) details of bad debt provision
The amount changed for the period
Items OpeningBalance Withdrawal or Other Closing BalanceAddition reversal Write-off changes
Bad debt provision on
individual basis 328259.50 328259.50
Credit risk profile portfolio 7486954.58 7486954.58
Total 7815214.08 7815214.08
(4) Accounts Receivable of the Top 5 Balances Collected by Debtors and contractual assets situations at the
End of the Period
Contract Ending Balance Proportion of
Name of Entity Accounts Assets of Receivables Ending Balance of Bad Debtreceivable Ending and Contract Receivables and Provision
Balance Assets Contract Assets（%）
Tangshan Caofeidian
District Finance Bureau 25997336.04 25997336.04 22.16 7449311.22
Wuhan National Rice
Trading Center Co. Ltd. 25689600.00 25689600.00 21.90
Hebei Luanping Huadu
Food Co. Ltd 13145439.04 13145439.04 11.21
Zhejiang Lvqin Supply
Chain Management Co. 8717018.25 8717018.25 7.43
LtdContract Ending Balance Proportion of
Name of Entity Accounts Assets of Receivables Ending Balance of Bad Debtreceivable Ending and Contract Receivables and Provision
Balance Assets Contract Assets（%）
C.P. Raw Material
Supply Co. Ltd. 4507632.84 4507632.84 3.84
Total 78057026.17 78057026.17 66.54 7449311.22
4.Accounts receivable Financing
(1) Presented and sorted by category
Item Closing Balance Opening Balance
Notes receivable 2442328.82 2502308.90
Total 2442328.82 2502308.90
(2) The ending notes receivable that have been endorsed or discounted and not expired on balance sheet date
Item Amount derecognized as at the end of Amount not derecognized as at the end ofthe reporting period the reporting period.Banker's Acceptance 1307900.00
Total 1307900.00
5.Advanced Payment
(1) Advances are presented by age
Closing Balance Opening Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year (including 1 year) 267344829.04 100.00 87352234.48 100.00
Total 267344829.04 100.00 87352234.48 100.00
(2) Advance payment of the top five Closing Balances by prepaid objects
Debtor Name Closing Balance Ratio of the total Closing Balance ofprepayments (%)
Tianjin Lingang Customs of the People's
Republic of China 63996755.07 23.94
Bangji (Dongguan) Grain and Oil Co. Ltd. 40184621.14 15.03
Jiangsu Jianghai Grease & Oil Group Co. Ltd. 28767869.40 10.76
Xiamen ITG Agricultural Products Co. Ltd. 23464521.74 8.78
SINOGRAIN OILS Corporation 21163895.76 7.92
Total 177577663.11 66.43
6.Other Receivables
Item(s) Closing Balance Opening Balance
Other Receivables 386904030.80 303099589.59
Total 386904030.80 303099589.59(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 385104921.29 301234542.67
1 to 2 years (including 2 years) 490899.52 641412.67
2 to 3 years (including 3 years) 216525.79 144888.00
3 to 4 years (including 4 years) 417658.21 459888.00
4 to 5 years (including 5 years) 92026.00 88638.00
More than 5 years 581999.99 531999.99
Total 386904030.80 303101369.33
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 382297330.22 301372189.38
Intercourse Funds of Units 2128121.60 502432.60
Employee Receivables 962353.24 840868.84
Tax Refund Receivables 1182669.16
Others 333556.58 385878.51
Total 386904030.80 303101369.33
C. Details about allowance for bad debt
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss Expected credit lossProvision for bad debt loss in the next for the whole period for the whole period
Total
12 months (no credit (with creditimpairment) impairment)
Amount on 1st January 2024 1779.74 1779.74
Carrying amount on 1st January
2024 that in this period:
——Get into Stage 2
——Get into Stage 3
——Get back to Stage 2
——Get back to Stage 1
Provision for the period -1779.74 -1779.74
Reverse for the period
Transfer for the period
Write off for the periodStage 1 Stage 2 Stage 3
Provision for bad debt Expected credit
Expected credit loss Expected credit loss
loss in the next for the whole period for the whole period
Total
12 months (no credit (with creditimpairment) impairment)
Other changes
Amount on June 30th 2024
D. Details of bad debt provision
Amount changes for the period
Type Carrying amount
Carrying
at the beginning Withdrawal or Write- Other amount atAddition reversal off changes the end
Credit Risk
Portfolio 1779.74 -1779.74
Total 1779.74 -1779.74
E. Other receivables according to top five of balance at end of period collected by debtors
Proportion in Closing
Name of Organization Balance at End overall Closing Nature of Aging Balance ofof Period Balance of other Funds bad debt
receivables (%) reserves
Zhongtian Futures Co. Ltd 114029471.85 29.47 Guaranteed Within 1Deposit year
CITIC Futures Co. Ltd. 89893896.44 23.23 Guaranteed Within 1Deposit year
China Grain Storage and 80283920.00 20.75 Guaranteed Within 1Transportation Co. Ltd. Deposit year
Haitong Futures Co. Ltd 40716550.69 10.52 Guaranteed Within 1Deposit year
Beijing Capital Futures
Co. Ltd 25761664.50 6.66
Guaranteed Within 1
Deposit year
Total 350685503.48 90.64
7.Inventory
(1) Inventory Category
Closing Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Raw Materials 272754976.75 23955.82 272731020.93
Inventory goods 1085540832.20 170341.46 1085370490.74
Revolving Materials 4976986.93 4976986.93
Goods and materials in transit 823783094.37 823783094.37
Total 2187055890.25 194297.28 2186861592.97（Continued）
Opening Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.Raw Materials 324815755.86 82063.38 324733692.48
Inventory goods 1122785703.06 1743754.31 1121041948.75
Revolving Materials 5049542.63 5049542.63
Goods and materials in transit 591034959.25 591034959.25
Total 2043685960.80 1825817.69 2041860143.11
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
Increased Amounts in the Current Period
Items Balance at Beginning of Year
Accrual Others
Raw material 82063.38
Inventory Goods 1743754.31
In total 1825817.69
(Continued)
Decreased Amounts in the Current Period
Items Balance at End of Period
Recover or Charge Off Others
Raw material 58107.56 23955.82
Inventory Goods 1573412.85 170341.46
In total 1631520.41 194297.28
(3) Inventory Goods listed by major product type
Closing Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1069557817.71 170341.46 1069387476.25
Food 15983014.49 15983014.49
Total 1085540832.20 170341.46 1085370490.74
(Continued)
Opening Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 1097527087.36 1598094.34 1095928993.02
Food 25258615.70 145659.97 25112955.73
Total 1122785703.06 1743754.31 1121041948.758.Non-current assets due within one year
Items Balance at End of Period Balance at Beginning of Period
One-year term deposits 22188083.34
In total 22188083.34
9.Other Current Assets
Items Balance at End of Period Balance at Beginning of Period
Pending Deduct VAT Input Tax 52271021.82 57549582.61
Pre-paid Taxes and Fees 37642598.24 16226031.95
Input Tax to Be Certified 42301.32 202103.63
Fair Value Changes of Items Trapped at Hedging 330613399.83 238358924.24
In total 420569321.21 312336642.43
10.Long-term Equity Investment
Details
Increase or Decrease in the Current Period
Confirmed
Invested Entity Balance at
Adjustment
Beginning of Year Additional Negative
Profit and Loss
on Investment of other
Other
Investment Investment changesunder Equity comprehensive income in equityMethod
1. Cooperative
Enterprise 128393543.26 2313991.99
Beijing CHIA TAI
Feedmill 128393543.26 2313991.99
Co. Limited
Sub-total 128393543.26 2313991.99
2. Joint Venture 126529102.15 8561434.89
China Grain
Reserves (Tianjin)
Warehouse 120176935.53 8606185.99
Logistics Co. Ltd.Jingliang Missme
Catering
Management 6352166.62 -44751.10
(Beijing) Co. Ltd.
Sub-total 126529102.15 8561434.89
Total 254922645.41 10875426.88
(Continued)
Increase or Decrease in the Current Period Closing Balance
invested entity Balance at EndAnnounce to Accrual of of ImpairmentOthers of Period
Distribute Case Impairment ReservesDividends or Profits Reserves
1. Cooperative
Enterprise 130707535.25
Beijing CHIA TAI
Feedmill Co. Limited 130707535.25
Sub-total 130707535.25
2. Joint Venture 135090537.04
China Grain Reserves
(Tianjin) Warehouse 128783121.52
Logistics Co. Ltd.Jingliang Missme
Catering Management 6307415.52
(Beijing) Co. Ltd.
Sub-total 135090537.04
Total 265798072.29
11.Other equity instruments investment
Details
Changes in the Current Period
Profits Losses
Opening Disi included in included in O
Item ClosingBalance Additional nve other other th Balance
Investment stm comprehensive comprehensive er
ent income in the income in the s
current period. current period.Chongqing long
jinbao network
technology Co. 20000000.00 20000000.00
LTD
Total 20000000.00 20000000.00
(Continued)
Dividend . Accumulated profi . Accumulated losse Designated at Fair Value
Item revenue t recognized in other s recognized in other
Measurement and
recognized in comprehensive comprehensive Reasons on Changes
current period income income included in OtherComprehensive Income
Chongqing long
jinbao network Non-trading equity
technology Co. instrument
LTD
Total /
12.Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement ModelItems Buildings Land Use Right Total
One. Original Book Value
1.Balance at Beginning of Year 62845234.00 576510.00 63421744.00
2.Increased Amounts in the Current Period
—Inventory\Fixed Assets Construction in progress
transferred into
3.Decreased Amounts in the Current Period
—Business Combination Decrease
4.Balance at End of Period 62845234.00 576510.00 63421744.00
Two. Accumulated Impairment and Accumulated
Amortization
1. Balance at Beginning of Year 32579939.08 208504.45 32788443.53
2. Increased Amounts in the Current Period 987930.66 5765.10 993695.76
—Accrual or Amortization 987930.66 5765.10 993695.76
—Others
3. Decreased Amounts in the Current Period
—Business Combination Decrease
4. Balance at End of Period 33567869.74 214269.55 33782139.29
Three. Impairment Reserves
1. Balance at Beginning of Year 10587796.70 10587796.70
2. Balance at End of Period 10587796.70 10587796.70
Four. Book Value
1. Book Value at End of Period 18689567.56 362240.45 19051808.01
2. Book Value at Beginning of Year 19677498.22 368005.55 20045503.77
13.Fixed Assets
Items Balance at End of Period Balance at Beginning of Period
Fixed Assets 917556139.25 939548012.91
Disposal of Fixed Assets
In total 917556139.25 939548012.91
Fixed Assets Situation
Items Buildings Machinery Transportation Electronic OfficeEquipment Equipment Equipment Equipment Others Total
One. Original Book
Value
1. Balance at
Beginning of Year 1064558047.21 795460322.57 20074431.07 14133767.59 7545793.53 1385077.43 1903157439.40
2. Increased Amounts
in the Current Period 1216887.26 23443233.90 812127.60 276319.61 174321.05 25922889.42Items Buildings Machinery Transportation Electronic OfficeEquipment Equipment Equipment Equipment Others Total
(1) Purchase 91284.40 2884547.80 812127.60 242458.23 98214.86 4128632.89
(2) Roll-in of
Project under 1125602.86 20558686.10 33861.38 76106.19 21794256.53
Construction
3. Decreased Amounts
in the Current Period 1699296.90 1553250.61 267996.51 3260.00 3523804.02
(1) Disposal or
Scrap 1699296.90 1553250.61 267996.51 3260.00 3523804.02
Decrease on Business
Combination Scope
Other transferred out
4. Balance at End of
Period 1065774934.47 817204259.57 19333308.06 14142090.69 7716854.58 1385077.43 1925556524.80
Two. Accumulated
Impairment
1. Balance at
Beginning of Year 440697875.26 487687828.69 11852350.93 9595147.99 4305164.06 350995.94 954489362.87
2. Increased Amounts
in the Current Period 18983479.38 26195647.62 930855.08 651955.82 387431.11 34300.59 47183669.60
(1) Accrual 18983479.38 26195647.62 930855.08 651955.82 387431.11 34300.59 47183669.60
3. Decreased Amounts
in the Current Period 1059428.81 1475588.08 254596.65 3097.00 2792710.54
(1) Disposal or
Scrap 1059428.81 1475588.08 254596.65 3097.00 2792710.54
Decrease on Business
Combination Scope
Other transferred out
4. Balance at End of
Period 459681354.64 512824047.50 11307617.93 9992507.16 4689498.17 385296.53 998880321.93
Three. Impairment
Reserves
1. Balance at
Beginning of Year 9047959.13 72104.49 9120063.62
4. Balance at End of
Period 9047959.13 72104.49 9120063.62
Four. Book Value
1. Book Value at End
of Period 597045620.70 304308107.58 8025690.13 4149583.53 3027356.41 999780.90 917556139.25
2. Book Value at
Beginning of Year 614812212.82 307700389.39 8222080.14 4538619.60 3240629.47 1034081.49 939548012.91
14.Project under Construction
Items Balance at End of Period Balance at Beginning of Year
Project under Construction 47201479.97 59094902.29
Total 47201479.97 59094902.29
(1) Project under Construction
A. Situation of Project under Construction
Balance at End of Period Balance at Beginning of Year
Items
Book Balance ImpairmentReserves Book Value Book Balance
Impairment
Reserves Book Value
Caofeidian 7786834.64 7786834.64 7773303.43 7773303.43Balance at End of Period Balance at Beginning of Year
Items
Book Balance ImpairmentReserves Book Value Book Balance
Impairment
Reserves Book Value
comprehensive
bonded zone feed
processing project
automation line
project
Soybean
extruding and
rumen soybean 24935424.20 24935424.20 23078937.34 23078937.34
meal processing
project
production line of
fried potato chips 8392300.91 8392300.91
Slope treatment
project of No.3 6969126.85 6969126.85 6969126.85 6969126.85
plant
The 3rd
recreation factory
baked potato No.5
Flexible Packing 2556466.47 2556466.47
Automation Line
Transformation
Project
The 1strecreation
factory baked
potato No.3
Flexible Packing 2497033.51 2497033.51
Automation Line
Transformation
Project
The 1st recreation
factory baked
potato No.4
Flexible Packing 1619325.55 1619325.55
Automation Line
Transformation
Project
Odor control
project 1585321.11 1585321.11 1585321.11 1585321.11
The 3rd
recreation factory
baked potato No.8
Line Oven 1240093.10 1240093.10
Transformation
Project
Jingliang Hainan
Yang Pu Grease
& Oil Processing 1823718.65 1823718.65 434369.04 434369.04
Project
Snowcone 833714.41 833714.41Balance at End of Period Balance at Beginning of Year
Items
Book Balance ImpairmentReserves Book Value Book Balance
Impairment
Reserves Book Value
Workshop
Category
Expansion
Program
Others 3267340.11 3267340.11 2948624.98 2948624.98
Total 47201479.97 47201479.97 59094902.29 59094902.29
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Increased Roll-in Fixed
Other
Budget Balance at Amounts in Assets
Decreased
Project Name Amounts Balance atAmount Beginning ofYear the Current
Amount in
Period the Current
in the End of Period
Period CurrentPeriod
Caofeidian
comprehensive
bonded zone
feed processing 7184400.00 7773303.43 13531.21 7786834.64
project
automation line
Soybean
extruding and
rumen soybean 49429300.00 23078937.34 1856486.86 24935424.20meal processing
project
Production line
of fried potato 9700000.00 8392300.91 71735.48 8464036.39
chips
Slope treatment
project of No.3 17110000.00 6969126.85 6969126.85
plant
Jingliang
Hainan Yang Pu
Grease & Oil 661324100.00 434369.04 1389349.6 1823718.65
Processing 1
Project
Total —— 46648037.57 3331103.16 8464036.39 41515104.34
(Continued)
Proportion of Accumulat Including:accumulated Interest Interest
input of the Progress ed Amount CapitalizatiProject Name project on of the of Interest
Capitalization Sources of
Project Capitalizat Amount
on Rate in
Budgeted occurred in the Current
Capital
Amount % ion Current Period Period（%）（ ）
Caofeidian
comprehensive bonded Equity
zone feed processing 108.39 99.00% Fund
project automation lineProportion of Including:
accumulated Accumulat Interest
input of the Progress ed Amount
Interest Capitalizati
Project Name of the of Interest Capitalization on Rate in Sources ofproject on
Budgeted Project Capitalizat
Amount the Current Capital
ion occurred inAmount（%） Current Period Period（%）
Soybean extruding and
rumen soybean meal 50.45 85.00% Equity
processing project Fund
Production line of fried
potato chips 87.26 100.00%
Equity
Fund
Slope treatment project Equity
of No.3 plant 40.73 80.00% Fund
Jingliang Hainan Yang
Pu Grease & Oil 0.28 0.28% Enterprise
Processing Project Self-funded
Total —— —— —— ——
15.Right-of-use Asset
Details
Items Buildings Land Use TransportationRight Equipment In total
One Original Book Value
1. Balance at Beginning of Year 121031786.76 5648400.00 607367.22 127287553.98
2. Increased Amounts in the Current
Period 2414106.37 2414106.37
(1) Lease 2414106.37 2414106.37
3. Decreased Amounts in the Current
Period 2098724.66 2098724.66
(1) Expiration of the lease or change the
lease term 2098724.66 2098724.66
4. Balance at End of Period 121347168.47 5648400.00 607367.22 127602935.69
Two Accumulated Depreciation
1. Balance at Beginning of Year 26870944.28 1016712.00 167593.92 28055250.20
2. Increased Amounts in the Current
Period 12238164.16 56484.00 47239.26 12341887.42
(1) Accrual 12238164.16 56484.00 47239.26 12341887.42
3. Decreased Amounts in the Current
Period 2098724.66 2098724.66
—Disposal 2098724.66 2098724.66
—Other Transferred Out
4. Balance at End of Period 37010383.78 1073196.00 214833.18 38298412.96
Three Impairment Reserves
Four Book ValueItems Buildings Land Use TransportationRight Equipment In total
1. Book Value at End of Period 84336784.69 4575204.00 392534.04 89304522.73
2. Book Value at Beginning of Year 94160842.48 4631688.00 439773.30 99232303.78
16.Intangible Assets
Intangible Assets Situation
Items Land Use Right Software Trademark Right In total
One Original Book Value
1. Balance at Beginning of Year 415718033.78 5370415.44 154841200.00 575929649.22
2. Increased Amounts in the Current
Period 17735.85 17735.85
(1) Purchase 17735.85 17735.85
—Others
3. Decreased Amounts in the Current
Period
—Business Combination Decrease
—Other Transferred Out
4. Balance at End of Period 415718033.78 5388151.29 154841200.00 575947385.07
TwoAccumulated Amortization
1. Balance at Beginning of Year 79667120.07 4408533.97 79177149.25 163252803.29
2. Increased Amounts in the Current
Period 4542322.72 129821.46 3856962.96 8529107.14
(1) Accrual 4542322.72 129821.46 3856962.96 8529107.14
3. Decreased Amounts in the Current
Period
— Business Combination Decrease
— Other Transferred Out
4. Balance at End of Period 84209442.79 4538355.43 83034112.21 171781910.43
Three Impairment Reserves
Four Book Value
1. Book Value at End of Period 331508590.99 849795.86 71807087.79 404165474.64
2. Book Value at Beginning of Year 336050913.71 961881.47 75664050.75 412676845.93
17.Goodwill
(1) Original Book Value of Goodwill
Balance at Increase in the Current Decrease in theName of Invested Entity or Beginning of Period Current Period Balance at EndItems Forming Goodwill Year of PeriodFormed by Enterprise DisposalMerger
Acquire stock shares of
Zhejiang Xiaowangzi Food 191394422.51 191394422.51
Co. 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
Acquire stock Group of Assets comprises of Goodwill
shares of Zhejiang related assets Assets mainly used food， the flow-in cash generatedXiaowangzi Food shall be independent of those by other processing belong to the Yes
Co. Ltd. Food Segmentgroup assets.
18.Long-term Unamortized Expenses
Balance at Increased Amortized OtherItems Balance atBeginning of Year Amounts in the Amounts in the DecreasedCurrent Period Current Period Amounts End of Period
Reconstruction of
majuqiao plant 12865755.89 337094.04 12528661.85
Maintenance of
leased assets 2085375.43 72650.94 2012724.49
Factory compartment
maintenance 760612.42 49206.89 101490.12 708329.19
Housing renovation 1943993.08 394180.68 190355.84 2147817.92
Total 17655736.82 443387.57 701590.94 17397533.45
19.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
Temporary Deferred Income
Deductible Deferred Income
Difference Tax Assets
Temporary
Difference Tax Assets
Asset Impairment
Reserves 290095.28 72523.81 1906843.70 476710.92
Deductible Loss 196701038.40 49175259.60 190924419.06 47731104.76
Lease liabilities 84702417.52 21175604.38 95982927.96 23995732.00
Credit impairment Loss 7777570.72 1944392.67 7816993.82 1954248.46
Deferred Income 12600638.84 3150159.71 12600638.84 3150159.71
Wages payable 5677134.00 1419283.50 5677134.00 1419283.50
Valuation of Financial
Instruments and
Derivative Financial 12433441.20 3108360.30
InstrumentsBalance at End of Period Balance at Beginning of Year
Items Deductible
Temporary Deferred Income
Deductible
Tax Assets Temporary
Deferred Income
Difference Difference Tax Assets
Rebate on contracts 1112100.00 278025.00 1112100.00 278025.00
In total 308860994.76 77215248.67 328454498.58 82113624.65
(2) Details of Deferred Income Tax Liabilities Not Being Offset
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 Financial 288957465.79 72239366.45 252306904.70 63076726.18
Instruments
Valuation and
appreciation of assets in
merger of enterprises not 129963606.68 32490901.67 135119584.58 33779896.15
under the same control
Use right assets 82325029.38 20581257.34 94160842.48 23540210.63
Total 501246101.85 125311525.46 481587331.76 120396832.96
(3) Details of Deferred Income Tax Liabilities after Offset
Offset amount of Carrying amount after offset amount of Carrying amount after
Items deferred tax offsetting between deferred tax assets
offsetting between
assets and deferred tax assets and liabilities at the deferred tax assets and
liabilities and liabilities end of last period liabilities at the end oflast period
Deferred tax asset 71762861.32 5452387.35 73314709.43 8798915.22
Deferred tax
liabilities 71762861.32 53548664.14 73314709.43 47082123.53
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible temporary differences 19626834.31 19626834.31
Deductible Loss 278526782.97 243290588.25
In total 298153617.28 262917422.56
(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
202428130103.9738012198.48
202525114592.0525114592.05
202637744225.6437744225.64
2027 62607514.09 63628940.88Year Balance at End of Period Balance at Beginning of Year
202878790631.2078790631.20
202946139716.02
Total 278526782.97 243290588.25
20.Other Non-current Assets
Closing Balance Opening Balance
Items
Book balance Provision for Book value Book balance Provision forimpairment impairment Book value
software purchase
advancement 3168200.00 3168200.00 2833950.00 2833950.00
Three-year term
deposit 10541666.66 10541666.66 10390000.00 10390000.00
Total 13709866.66 13709866.66 13223950.00 13223950.00
21.Asset items where the ownership or the right of use is restricted
Ending Balance
Items
Book balance Book value Restricted type ' Constraints
Freezing amount due to Freezing amount due to
Monetary Funds 11398049.13 11398049.13 lawsuit Banker's letter of lawsuit Banker's letter of
guarantee deposit etc. guarantee deposit etc.Fixed Assets 21719189.02 4787783.94 Freezing amount due to Freezing amount due tolawsuit lawsuit
Investment Real Freezing amount due to Freezing amount due to
Estates 19594735.46 5027932.91 lawsuit lawsuit
In total 52711973.61 21213765.98 / /
(Continued)
Beginning Balance
Item
Book balance Book value Restricted type ' Constraints
Monetary Funds 2746671.91 2746671.91 Banker's letter of Banker's letter of guaranteeguarantee deposit etc. deposit etc.Fixed Assets 21719189.02 4994664.88 Freezing amount due to Freezing amount due tolawsuit lawsuit
Investment Real 19594735.46 5198514.17 Freezing amount due to Freezing amount due toEstates lawsuit lawsuit
In total 44060596.39 12939850.96 / /
22.Short-term Borrowings
Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Debt of honour 1036717261.11 1163479691.67In total 1036717261.11 1163479691.67
23.Derivative financial liability
Item Closing Balance Opening Balance
Changes in fair value of hedging instruments 15805393.88
Total 15805393.88
24.Accounts Payable
Accounts Payable Presentation
Items Balance at End of Period Balance at Beginning of Year
Material Funds Payable 54559950.19 67912958.96
Project Funds Payable 1312278.91 3013449.11
Equipment Funds Payable 4266240.40 3002660.91
Consultancy Services 2563467.22 3283467.22
Rental Fee 1378125.00 650000.00
Storage Charge 5129772.80 2752000.00
Others 1397190.28 1860287.64
In total 70607024.80 82474823.84
25.Advance payment
Advance payment Presented
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1800138.12 1075801.34
In total 1800138.12 1075801.34
26.Contract liabilities
Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Loans 619028078.42 411012990.81
Services 19801.98
Others 426.29
In total 619028078.42 411033219.08
27.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 PeriodShort-term Compensation 30758435.00 133390483.35 149971192.38 14177725.97
After-service Welfare- Set
up ESP liabilities 1944123.07 19183912.20 18938406.16 2189629.11
Dismission Welfare 76791.04 76791.04
In total 32702558.07 152651186.59 168986389.58 16367355.08
(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 26776551.56 105190699.26 122292867.29 9674383.53
2. Welfare Expense of
Employee 18700.00 3608971.82 3432745.50 194926.32
3. Social Insurance
Expense 932905.62 10685246.64 10559280.30 1058871.96
Among them: Medical
Insurance Premiums 863418.27 9729586.47 9622039.65 970965.09
Industrial Injury
Insurance Premiums 53651.72 773377.55 756613.50 70415.77
Birth Insurance
Premiums 15835.63 182282.62 180627.15 17491.10
4. Housing Provident
Funds 114997.49 8417025.00 8420512.00 111510.49
5. Labor Union
Expense and Personnel 2695150.33 2306336.92 2231611.29 2769875.96
Education Fund
6.Other Short-term
wages 220130.00 3182203.71 3034176.00 368157.71
In total 30758435.00 133390483.35 149971192.38 14177725.97
(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 1848825.70 16517674.95 16291473.91 2075026.74
2. Unemployment
Insurance Expense 49574.79 541507.67 535896.53 55185.93
3. Enterprise Annuity
Charges 45722.58 2124729.58 2111035.72 59416.44
Total 1944123.07 19183912.20 18938406.16 2189629.11
28.Taxes and Fees Payable
Items Balance at End of Period Balance at Beginning of Year
VAT 3672452.79 1535814.90
Corporate Income Tax 4822889.67 4643368.25Items Balance at End of Period Balance at Beginning of Year
Urban Maintenance and Construction Tax 357425.10 184732.38
House Property Tax 976287.01 2317671.84
Land Use Tax 370587.69 985671.07
Individual Income Tax 494925.66 1655912.41
Stamp Tax 344887.74 152358.18
Educational Surtax (Including local educationalsurcharge 222410.12 99058.19）
Environmental protection tax 2512.01 2805.25
In total 11264377.79 11577392.47
29.Other Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 20000000.00 21082795.47
Dividends Payable 3213342.90 3213302.88
Other Accounts Payable 48634943.60 55322100.43
In total 71848286.50 79618198.78
(1) Interest Payable
Items Balance at End of Period Balance at Beginning of Year
Loan Interest between Enterprises 20000000.00 21082795.47
In total 20000000.00 21082795.47
(2) Dividends Payable
Items Balance at End of Period Balance at Beginning of Year
Others 3213342.90 3213302.88
In total 3213342.90 3213302.88
(3) Other Accounts Payable
Other Accounts Payable by Nature of Funds Presented
Items Balance at End of Period Balance at Beginning of Year
Intercourse Funds of Related Parties 4606890.00 3687264.48
Guaranteed Deposit and Deposit 23721815.28 27614619.18
Intercourse Funds between Units 7963932.31 9684592.82
Personal Intercourse Funds 3295630.45 3731133.46
Various Insurances of Employee 2649275.00 3688119.63
Storage Charge 2873402.86 2832948.18Hebei Jiliang Oil and Fat Co. Ltd.Gains and Losses Divestment during 1747611.95
transition
Others 3523997.70 2335810.73
In total 48634943.60 55322100.43
30.Non-current liabilities due within one year
Item End balance Opening Balance
Long-term Loans due Within One Year 100000000.00 150000000.00
Lease Liability due Within One Year 11891031.53 22741185.39
Long-term Loans Interest due Within One Year 319763.89
Bond Interest Payable due Within One Year 7200000.00 2880000.00
Total 119091031.53 175940949.28
31.Other current liability
Item End balance Opening Balance
Value-added tax to be written off 58741540.34 45928019.48
Changes of the Fair Value of the Hedged Item 14511381.20
Total 58741540.34 60439400.68
32.Long term borrowing
Item End balance Opening Balance
Debt of honour 530000000.00 400000000.00
Total 530000000.00 400000000.00
33.Bonds payable
(1) Bonds payable
Item Ending Balance Opening Balance
Corporate Bond 299025000.00 298800000.00
Total 299025000.00 298800000.00
(2) Bond payable situation (not including other financial instruments i.e. the Financial Liabilities preference
shares perpetuities etc)
Coupon The
Name of Bond Face Value rate Release BondDate Period Issuing Amount
Opening
Balance Issua
（%） nce
23 Jingliang 21Aug-
01 Corporate 300000000.00 2.88 22 Aug 3 years 300000000.00 301680000.00
Bond 2023
Total ∕ ∕ ∕ ∕ 300000000.00 301680000.00(Continued)
Interest Amortization of Repayment
Name of Bond accrued at Premiums or in the Other Direct Ending Whether in
face value Discounts Period Fees Balance default
23 Jingliang 01
Corporate Bond 4320000.00 -225000.00 306225000.00
Total 4320000.00 -225000.00 306225000.00 ∕
34.Lease liability
Item End balance Opening Balance
Lease Payment 92871464.76 103803204.86
Less: unrecognized Financing Cost 5966648.86 7820276.90
Reclassified as non-current liabilities due within One year 11891031.53 22741185.39
Net Lease Liabilities 75013784.37 73241742.57
35.Long term wage payable
Long-term wage payable presented
Items Balance at End of Period Balance at Beginning of Year
Other Long-term Welfare 5677134.00 5677134.00
In total 5677134.00 5677134.00
36.Deferred Income
Items Balance at Increase in the Decrease in the Balance at End of Cause ofBeginning of Year Current Period Current Period Period Formation
Government
Subsidy 62503256.67 4019983.60 58483273.07
In total 62503256.67 4019983.60 58483273.07
Among them items involving government subsidy are as follows:
Items Receiving Balance at
Increase Amount rolled in Refund Other Reasons Asset related
Subsidy Beginning of
in the Charge to non-operating Balance at End
Year Current other Profits income in the
in this Chan on / income
Period current period. Period
of Period
ges Refund related
Edible Oil
Renewable Clean
Production
Equipment and Oil 111999.68 28000.02 83999.66 Assets
Tank Electric related
Heating System
Project
Grain & Oil
processing key
technology
research and 544871.72 38919.42 505952.30 Assets
industrialization related
project forming
fixed assets
Tianjin Binhai
New Zone
industrialized tec Assets
hnological 1425925.73 111111.13 1314814.60 related
transformationand
zone construction
fund and scientificItems Receiving Balance at
Increase Amount rolled in Other
Beginning of in the Charge to non-operating
Refund Reasons Asset related
Subsidy Current other Profits income in the in this
Balance at End
Chan
Year Period of Period
on / income
Period current period. ges Refund related
technology
expenses
Enterprise
foundation
supporting in the
construction stage
of "Tianjin 46096611.13 638752.08 45457859.05
Assets
related
Lingang Industrial
Zone Management
Committee"
Subsidized by
Beijing Municipal
Food and Strategic
Reserves Bureau
for "Tank 2272477.03 125090.45 2147386.58
Assets
related
Expansion and
Winterization
Renovation Project
The relocation
compensation 3078110.50 3078110.50
Assets
related
Special subsidy for
infrastructure 8973260.88 8973260.88 Assets
investment related
In total 62503256.67 4019983.60 58483273.07 —— ——
37.Share Capital
Changes in the Current Period（+、-）
Items Balance at Share Balance at EndBeginning of Year New Share Share Transfer of of Period
Issue Donation Provident Others Sub-total
Fund
1. Shares with Restricted
Conditions 30869915.00 -1275000.00 -1275000.00 29594915.00
(1) State Shareholding
(2) State-owned Legal-person
Shareholding
(3) Other Domestic Capital
Shareholding 30869915.00 -1275000.00 -1275000.00 29594915.00
Including: Domestic
Legal-person Shareholding
Domestic Natural Person
Shareholding 30869915.00 -1275000.00 -1275000.00 29594915.00
(4) Foreign Shareholding
Including: Foreign Legal-person
Shareholding
Foreign Natural Person
Shareholding
2. Tradable Shares without
Restricted Conditions 696080336.00 1275000.00 1275000.00 697355336.00
(1) RMB Ordinary Shares 631105336.00 1275000.00 1275000.00 632380336.00
(2) Domestically Listed Foreign
Shares 64975000.00 64975000.00
(3) Listed Foreign Shares
Overseas
(4) Others
In total 726950251.00 726950251.0038.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) 1322887986.38 1322887986.38
Capital Reserves Roll-in Under
Original System 112316357.36 112316357.36
Other Capital Reserves 246603764.33 246603764.33
In total 1681808108.07 1681808108.07
39.Other Comprehensive Incomes
Amounts Occurred in the Current Period
Less: Other
Balance at Amounts Comprehensive Less: included in other
Items Beginning of Balance atOccurred Incomes Charged comprehensive income Attributable to Attributable to
Year in the previous period Less: Income Parent Minority End of Periodbefore Income at Earlier Stage
Tax in the and Current and transferred to Tax Expense Company Shareholders
Current Period Roll-in Profit and retained income in the After Tax After Tax
Loss current period
One Other
comprehensive
incomes that won’t be
classified into profit
and loss
Two Other
comprehensive
incomes that will be 1369980.92 142130.77 142130.77 1512111.69
classified into profit
and loss
Including: Converted
difference between
foreign currency 1369980.92 142130.77 142130.77 1512111.69
financial statements
Total 1369980.92 142130.77 142130.77 1512111.69
40.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 92184862.07 92184862.07
Free Surplus Reserves 37634827.93 37634827.93
In total 129819690.00 129819690.00
41.Undistributed Profit
Items Amounts in the Amounts in the PriorCurrent Period Period
Adjustment on undistributed profit at end of last year 627555511.45 532904675.62
Adjustment on total number of undistributed profit at
beginning of period (increase+ and decrease-)
Adjusted undistributed profit at beginning of period 627555511.45 532904675.62
Add: net profit attributable to parent company in the current
period 24058518.07 73581795.36Less: withdrawal statutory surplus reserves
Less: distribution to shareholders 51613467.82
Undistributed profit at end of period 600000561.70 606486470.98
42.Operation Revenue and Operation Cost
(1) Operation Revenue and Operation Cost
Amounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Prime Business 5543192577.80 5317117982.23 4792494443.33 4604819197.36
Other Business 12714416.34 14897635.94 30739764.85 26151271.78
In total 5555906994.14 5332015618.17 4823234208.18 4630970469.14
(2) Operation revenue and operation cost presented
Contract Category Operation Revenue Operation Cost
Industry and Business-classified
Including: Oil and Oil Seeds 5102927349.82 4970240307.32
Food 440265227.98 346877674.91
Others 12714416.34 14897635.94
Region-classified
Including: North China 2898283251.48 2802952823.15
East China 1322719192.37 1232829464.07
South China 485970049.77 475601613.53
Northeast China 355266820.98 333933488.58
Abroad 249601523.13 249383597.05
Central China 125839395.10 122666307.34
Others 118226761.31 114648324.45
Time for the transfer of commodities classified
Revenue recognition at a given time 5555906994.14 5332015618.17
Sales channel-classified
Including: Direct 3400859827.75 3317529873.23
Distribution 2142332750.05 1999588109.00
Others 12714416.34 14897635.94
In total 5555906994.14 5332015618.17
(3) Performance obligations explanation
Item Time of Important Nature of the Whether Expected Qualityperformance payment commitment to main refund to the assurance
obligations terms transfer responsib customer by category
commodities by le person the provided by
the company Company the Company
and relevant
obligations
Processingsales
and trading of oil Upon Mainly Mainly sales of
and oilseeds as delivery payment oil and oilsees Yes No
Statutory
well as foodstuffs first snack food
guarantees
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
Contract has been signed at end reporting period; however the corresponding amount is RMB
619028078.42 for the outstanding obligations or obligations not yet complete fulfilled. The revenue shall be
recognized in 2024.
43.Tariff And Annex
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 1930404.14 2164523.24
House Property tax 2996889.52 3040839.14
Land Use Tax 1110300.54 914015.59
Educational Surtax 1367095.51 1563231.46
Vehicle and Vessel Use Tax 18756.16 20323.53
Environmental Protection Fees 54450.43 15744.17
Stamp Tax 4631570.93 3825650.53
Other Taxes and Fees 106559.43 4346.22
In total 12216026.66 11548673.88
44.Sales Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 30377531.25 25300609.41
Sales Promotion Expenses 9624316.03 7282685.02
Warehousing Fees 9713134.98 14257898.37
Depreciation 8454450.87 7985937.31
Material consumption sample and product cost 2868577.30 3712801.42
Repair Costs 281101.68 115097.47
Water and Electricity Fees 553716.94 547038.39Items Amounts in the Current Period Amounts in the Prior Period
Lease fee 1460132.81 1514904.94
Vehicle Fees 420329.68 481627.88
Packing Expenses 194466.00 251296.30
Terminal Charges 18771.23 146400.18
Travel Expenses 2827900.27 3070763.08
Test and Detection Fees 80186.87 133279.64
Others 4862041.03 13637484.20
Total 71736656.94 78437823.61
45.Administration Expenses
Items Amounts in the Current Amounts in the PriorPeriod Period
Employee Compensation 50395828.76 50938225.39
Impairment Costs 12012948.46 13240946.13
Amortization of Assets 3946432.50 3687167.40
Fees of Employing Agent 2806410.34 3545562.82
Repair Costs 1025293.49 1485217.53
Company Expenses 2734054.99 1694907.02
Lease fee 1635076.96 1437456.70
Vehicle Fees 914805.66 922140.12
Security Protection Fees 501625.64 822264.35
Amortization of long-term prepayments 701590.94 549813.65
Information Network Fees 57119.80 41734.11
Commercial Insurance Expenses Workers Insurance
Expense 521959.67 896801.93
Travel Expenses 611737.08 413136.56
Business Entertainment Expenses 451086.09 433247.37
Business Entertainment Expenses 518825.54 475656.29
Material Consumption 555492.73 487704.84
Company Expenses 384965.26 301685.55
Labor Protection Fees 155649.15 27309.72
Other Expenses 5810012.78 11497604.73
In total 85740915.84 92898582.21
46.Research and Development ExpensesItems Amounts in the Current Period Amounts in the Prior Period
Salary 6050611.00 5106613.56
Material fee 3159584.65 4254432.69
Fuel and Power Fee 221731.83 3461.18
Depreciation and amortization 574493.03 179206.98
Design expense 8000.00 9708.74
Equipment Cost 14946.90
Transportation Expense 33717.43 10517.31
Others 339299.09 698859.51
In total 10402383.93 10262799.97
47.Financial Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 28960078.11 25265021.07
Less: Interest Income 8925122.62 5832452.30
Exchange Gain or Loss -1401234.64 -2719736.45
Service Charges 965850.29 552216.18
In total 19599571.14 17265048.50
48.Other Profits
Items Amounts in the Current Period Amounts in the Prior Period
Government Subsidy 9669801.08 6149861.75
Return of Service Charges of Withholding
Individual Income Tax 200683.84 156397.49
Others 17955.34
In total 9870484.92 6324214.58
49.Investment Income
Items Amounts in the Current Period Amounts in the Prior Period
Long-term equity investment income
accounted with equity method 10875426.88 7012296.86
Investment income from disposal of wealth
management products
Investment income of disposing trading
financial assets
Investment income obtained during the
holding of transactional financial assets 169707.51
Others -2721.38
In total 10875426.88 7179282.99
50.Profits on Changes in Fair ValueSource of generating income with changes in fair value Amounts in the Amounts in the PriorCurrent Period Period
Trading Financial assets -9906096.90 143869459.30
Including: income with changes in fair value generated by
hedging instruments and hedged item -9906096.90 143869459.30
In total -9906096.90 143869459.30
51.Credit impairment loss
Items Amounts in the Current Period Amounts in the Prior Period
Accounts receivable bad debt loss -115984.57
Other receivables bad debt loss 1779.74
Total 1779.74 -115984.57
52.Loss fromAsset Devaluation
Items Amounts in the Current Amounts in the PriorPeriod Period
Loss on Inventory Price Loss & Impairment loss on
contract performance costs 130887.98 -25186589.63
In total 130887.98 -25186589.63
53.Assets Disposal Income
Items Amounts in the Current Period Amounts in the Prior Period
Gains or losses on disposal of fixed assets 23411.62 -2209.46
In total 23411.62 -2209.46
54.Non-operating Income
Amounts in the Amounts in the Amounts Charged toItems Current Period Prior Period Non-recurring Profit andLoss
Non-current assets retirement gains 10274.33
Fines liquidated damages late fees
compensation income 9309450.43 3636895.41 9309450.43
Payable amounts not required to be paid 1190843.15 13284.33 1190843.15
Waste disposal gains 49231.02 98808.18 49231.02
Others 54881.03 144239.11 54881.03
In total 10604405.63 3903501.36 10604405.63
55.Non-operating Expenses
Amounts in the Amounts in the Amounts Charged toItems Current Period Prior Period Non-recurring Profit andLoss
Total loss on scrap of non-current assets 83271.40 67613.57 83271.40Items Amounts in the Amounts in the
Amounts Charged to
Current Period Prior Period Non-recurring Profit andLoss
Penalty expenditure 4288497.08 65.46 4288497.08
Others 408230.51 460301.41 408230.51
Total 4779998.99 527980.44 4779998.99
56.Income Tax Expenses
(1) List of Income Tax Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Income Tax Expenses of the Current Period 5016214.94 7333690.17
Deferred Income Tax Expenses 9813068.48 25184332.75
Total 14829283.42 32518022.92
(2) Accounting Profit and Income Tax Expense Adjustment Process
Items Amounts in the CurrentPeriod
Total Profits 41016122.34
Income tax expenses calculated by statutory/applicable tax rate 10254030.59
Effect of subsidiary corporations being applicable to different tax rates -377296.99
Adjustment on effect of income tax in the prior period 250584.99
Effect of Non-taxable Incomes
Effect of Non-deductible cost expense and loss 169877.34
Effect of deductible loss on usage of unconfirmed deferred income tax assets in the
prior period -2623737.65
Effect of deductible temporary difference or deductible loss on unconfirmed deferred
income tax in the current period 11534929.01
Effect of Research expenses disables weighted deduction -930668.99
Effect of asset depreciation reserve write-off or reversal -130887.98
Effect of non-taxable investment income -2718856.73
Others -598690.17
Income Tax Expenses 14829283.42
57.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 39. Other Comprehensive
Incomes’
58.Notes to items related cash flow statement
(1) Cash related to operating activitiesA. Receiving other cash related to operation activities
Items Amounts in the Current Period Amounts in the Prior Period
Security Deposit 1454397995.52 879899688.90
Intercourse Funds of Other Units 33138626.70 129523949.12
Interest Income 9529738.72 5111702.84
Intercourse Funds of Related Parties 7215785.96 2409511.39
Non-operating Income and other income 8976653.99 4937540.00
Others 1657862.05 1929648.28
Total 1514916662.94 1023812040.53
(2) Cash related to investment activities
Other cash payment related to investment activities
Items Amounts in the Amounts in theCurrent Period Prior Period
Transitional gains and losses etc. returned to Hebei Jiliang Oil and Fat
Co. Ltd. 1747611.95
In total 1747611.95
(3) 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 13486733.94 574077.78
In total 13486733.94 574077.78
B. Various liability change situation From Financing Activities
Increase in this period Decrease in this period
Item BeginningBalance Ending Balance
Cash Movement Non-cash Non-cashMovement Cash Movement Movement
Short-term borrowing 1163479691.67 907734559.68 17262148.84 1051759139.08 1036717261.11
Long-term borrowing 550319763.89 130000000.00 4800222.22 55119986.11 630000000.00
Bond Payable 301680000.00 4545000.00 306225000.00
Lease Liability 95982927.96 4408621.88 13486733.94 86904815.90
Total 2111462383.52 1037734559.68 31015992.94 1120365859.13 2059847077.01
Note: amount presented above includes that of reclassification to non-current liabilities due in one year
59.Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
Supplementary Materials Amounts in the Amounts in theCurrent Period Prior Period1. Adjusting net accounting profit to operating cash flow —— ——
Net Profit 26186838.92 84776482.08
Add: Assets Impairment Reserves -130887.98 25186589.63
Credit impairment loss -1779.74 115984.57
Fixed Assets Depreciation Oil-and-gas Assets Depreciation and Productive Biological Assets Depreciation 44390959.06 50006678.17
Right-of-use assets depreciation 10243162.76 727090.29
Amortization of Intangible Assets 8529107.14 7453613.22
Amortization of Long-term Deferred Expenses 701590.94 549813.65
Losses on Disposal of Fixed Assets Intangible Assets and Other Long-term Assets (Fill in profit with symbol
“”)-23411.622009.46－
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) 60624.57
Losses on Changes in Fair Value (Fill in profit with symbol “－”) 9906096.90 -143869459.30
Financial Expenses (Fill in profit with symbol “－”) 19144560.53 17265048.50
Investment Losses (Fill in profit with symbol “－”) -10875426.88 -7179282.99
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) 3346527.87 934516.78
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) 6466540.61 24249815.98
Decrease in Inventory (Fill in increase with symbol “－”) -145001449.86 -114286861.49
Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) -344857880.05 -360191592.16
Increase in Items of Operating Receivables (Fill in decrease with symbol “－”) 150910029.31 276849383.25
Net Cash Flows from Operating Activities -221065422.09 -137349545.79
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 1170000193.27 1251666904.81
Less: cash balance at beginning of period 1540639079.95 551439110.07
Cash and cash equivalent net increase -370638886.68 700227794.74
(2) Composition of cash and cash equivalents
Items Balance at End of Balance at BeginningPeriod of Period
One. Cash 1170000193.27 1540639079.95
Including: Cash on hand 16474.45 9949.26
Bank deposit available for payment at any time 1077499569.76 1423321137.06
Other currency funds available for payment at any time 92484149.06 117307993.63
Two. Cash Equivalents
Three. Balance of Cash and Cash Equivalents at End of Period 1170000193.27 1540639079.95
60.Monetary Items of Foreign CurrencyMonetary Items of Foreign Currency
Items Balance of Foreign Currency at Exchange Rate Balance of Converting toEnd of Period Convert RMB at End of Period
Monetary fund —— —— 141976671.98
Including: US Dollars 19921517.65 7.1268 141976671.98
Accounts receivable —— —— 592736.91
Including: US Dollars 83170.13 7.1268 592736.91
61. Lease
(1) As Lessee
Item Amount
Interest cost on the lease liability 1901742.24
Short-term lease expenses for simplified processing of related asset costs or profit
or loss in the current period 3494753.60
Total Cash Outflow related to lease 13860930.58
(2) As Lessor
Operating lease as lessor
Item Leasehold income Including: Income related to variable lease payments notincluded in lease income
Leasehold income 1077492.03
Total 1077492.03
VI Research and Development Expenses
Disclosed by nature of expenses
Item Amount in current period Amount in prior period
Salary 6050611.00 5106613.56
Material expense 3159584.65 4254432.69
Fuel & Power expenses 221731.83 3461.18
Depreciation and Amortization Fee 574493.03 179206.98
Design Fee 8000.00 9708.74
Equipment cost 14946.90
Travel expense 33717.43 10517.31
Others 339299.09 698859.51
Total 10402383.93 10262799.97
Including: R&D expenditure 10402383.93 10262799.97
Capitalized R&D expenditure
VII Change in Consolidation Scope1.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
Principle Registered Shareholding Ratio (%)Name of Subsidiary Place of Capital（In ten Registered Nature of Mode ofBusiness thousands Yuan Place Business Acquisition） Direct Indirect
Agricultural
Jingliang (Tianjin) Grain and Tianjin 56000.00 Tianjin Product and By Merger under theOil Industry Co. Ltd. Product 70.00 same control
Processing
Beijing Jingliang Oil and Fat
Co. Ltd. Beijing 5000.00 Beijing
Grain and oil 100.00 Merger under thetrade same control
Beijing Guchuan Edible Oil Beijing 12558.46 Beijing Grain and oilCo. Ltd. trade 100.00
Merger under the
same control
Agricultural
Beijing Eisen-Lubao Oil Beijing 5050.00 Beijing Product and By Merger under theCo. Ltd. Product 100.00 same control
Processing
Beijing Tianweikang Oil Merger under the
Distribution Center Co. Ltd. Beijing 500.00 Beijing Warehousing 100.00 same control
Beijing Guchuan Bread
Food Co. Ltd. Beijing 5550.00 Beijing Food Processing 100.00
Merger under the
same control
Zhejiang Xiao Wang Zi Food
Co. Ltd. Hangzhou 5156.00 Hangzhou Food Processing 17.6794 77.2072
Combination not
under same control
Hangzhou Lin'an Xiaotianshi
Food Co. Ltd. Hangzhou 4900.00 Hangzhou Food Processing 17.6794 77.2072 ditto
Liaoning Xiao Wang Zi
Food Co. Ltd. Liaoning 3000.00 Liaoning Food Processing 17.6794 77.2072 ditto
Linqing Xiao Wang Zi Food
Co. Ltd. Linqing 2132.50 Linqing Food Processing 17.6794 77.2072 ditto
Hangzhou Lin'an
Chunmanyuan Agricultural Hangzhou 600.00 Hangzhou Food Processing 17.6794 77.2072 ditto
Development Co. Ltd.Jingliang (Singapore)
International Trade Co. Ltd. Singapore 643.35 Singapore Grain trade 100.00
Invest in the
establishment
Beijing jingliang gubi oil
and grease co. LTD Beijing 5000.00 Beijing
Grain and oil Invest in the
trade 100.00 establishment
Beijing Jingliang Food
Co. Ltd. Beijing 105658.96 Beijing
Investment Merger under the
management 100.00 same control
Jingliang (Caofeidian)
Agricultural Development Tangshan 5000.00 Tangshan Plantation 51.00 Invest in the
Co. Ltd. establishment
Jingliang (Yueyang) Grain
and Oil Industry Co. Ltd. Hunan 68000.00 Hunan
Agricultural Invest in the
products 65.00 establishment
Jingliang (Beijing) Food
Marketing Management Co. Beijing 800.00 Beijing Commercialservices 100.00
Invest in the
Ltd establishment
Agricultural
Jingliang (Yangpu) Grain Hainan 50000.00 Hainan Product and By 65.00 Invest in theand Oil Industry Co. Ltd. Product establishment
Processing
(2) Major non-wholly-owned subsidiaries
Shareholding Ratio Profit And Loss Attributable Dividends Distributed to Balance of Minority
Name of Subsidiary of Minority to Minority Shareholders for Minority Shareholders for the Shareholder's Equity at the
Shareholders (%) the Current Period Current Period End of the Period
Jingliang (Tianjin) Grain and Oil
Industry Co. Ltd. 30.00% 677459.84 222943883.54Shareholding Ratio Profit And Loss Attributable Dividends Distributed to Balance of Minority
Name of Subsidiary of Minority to Minority Shareholders for Minority Shareholders for the Shareholder's Equity at the
Shareholders (%) the Current Period Current Period End of the Period
Zhejiang Xiao Wang Zi Food Co.Ltd. 5.11% 2303461.00 46752334.36
(3) Important financial information on major non-wholly-owned subsidiaries
Closing Balance
Name of Subsidiary
Current Assets Non-currentAssets Total Assets Current Liabilities
Non-current
Liabilities Total Liabilities
Jingliang (Tianjin) Grain and
Oil Industry Co. Ltd. 1979394102.08 692588050.46 2671982152.54 1534023560.02 394812314.02 1928835874.04
Zhejiang Xiao Wang Zi Food
Co. Ltd. 580424113.52 323527826.28 903951939.80 83043388.61 14650394.88 97693783.49
(Continued)
Opening Balance
Name of Subsidiary
Current Assets Non-currentAssets Total Assets Current Liabilities
Non-current
Liabilities Total Liabilities
Jingliang (Tianjin) Grain and
Oil Industry Co. Ltd. 1690703873.13 715120631.78 2405824504.91 1401536126.49 263400299.40 1664936425.89
Zhejiang Xiao Wang Zi Food
Co. Ltd. 556236641.71 333141896.19 889378537.90 103727129.38 17728505.38 121455634.76
(Continued)
Amount incurred in the current period
Name of Subsidiary Operating Total Cash Flow from
Income Net Profit Comprehensive OperatingIncome Activities
Jingliang (Tianjin) Grain and Oil
Industry Co. Ltd. 1948859877.07 2258199.48 2258199.48 -339856449.70
Zhejiang Xiao Wang Zi Food Co.Ltd. 377946737.77 38335253.17 38335253.17 12319557.86
(Continued)
Amount incurred in the prior period
Name of Subsidiary Operating Total Cash Flow from
Income Net Profit Comprehensive OperatingIncome Activities
Jingliang (Tianjin) Grain and Oil
Industry Co. Ltd. 2364528344.23 25638449.60 25638449.60 568809524.65
Zhejiang Xiao Wang Zi Food Co.Ltd. 428413574.82 46252797.77 46252797.77 -2843845.04
2. Equity in Joint Ventures or Affiliates
(1) Important Joint Ventures or Affiliates
Shareholding Accounting
Name of Joint Venture or PrinciplePlace of Registered Nature of
Ratio (%) Treatment Methods
Affiliate Place Business for Investment inBusiness Direct Indirect Joint Ventures or
AffiliatesBeijing Zhengda Feed Co.Ltd. Beijing Beijing Manufacturer 50.00 Equity method
SINOGRAIN (Tianjin) Transportation
Warehousing Logistics Co. Tianjin Tianjin and 30.00 Equity method
Ltd. warehousing
Jingliang Missme Catering
Management (Beijing) Co. Beijing Beijing Manufacturer 48.00 Equity method
Ltd.
(2) Important financial information on major joint ventures
Closing Balance/Current Opening Balance/Last Term
Amount Amount
Item
Beijing Zhengda Feed Co. Beijing Zhengda Feed Co.Ltd. Ltd.Current assets 318764832.62 319779538.52
Including: cash and cash equivalents 10014848.50 12804613.72
Non-current assets 19836156.12 19900378.39
Total assets 338600988.74 339679916.91
Current liabilities 56845400.96 58198209.39
Non-current liabilities 20340517.28 24694621.01
Total liabilities 77185918.24 82892830.40
Minority shareholder's equity
Shareholders' equity attributable to the parent
company 261415070.50 256787086.51
Share of net assets based on shareholding ratio 130707535.25 128393543.26
Book value of equity investment in joint
ventures 130707535.25 128393543.26
Operating income 141505276.76 164726777.97
Financial costs -4813744.60 -3959367.67
Income tax expense 1414888.95 2271436.27
Net profit 3976901.01 6478834.60
Dividends received from joint ventures in the
current period
(3) Important financial information on major affiliates
Closing Balance/Current Amount Opening Balance/Last TermAmount
Item
SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co. Ltd. Warehousing Logistics Co. Ltd.Current assets 59998800.78 59019697.43
Non-current assets 955410475.33 886062609.97
Total assets 1015409276.11 945082307.40
Current liabilities 32028004.29 33964613.24Closing Balance/Current Amount Opening Balance/Last TermAmount
Item
SINOGRAIN (Tianjin) SINOGRAIN (Tianjin)
Warehousing Logistics Co. Ltd. Warehousing Logistics Co. Ltd.Non-current liabilities 554104200.08 506182569.64
Total liabilities 586132204.37 540147182.88
Minority shareholder's equity
Shareholders' equity attributable to
the parent company 429277071.74 404935124.52
Share of net assets based on
shareholding ratio 128783121.52 121480537.36
Book value of equity investment in
affiliates 128783121.52 121480537.36
Fair value of equity investment in
affiliates with open offers
Operating income 46973215.82 31195596.27
Net profit 24341947.22 12576265.20
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 24341947.22 12576265.20
Dividends received from affiliates
in the current period
(4) Non-important aggregated financial information on affiliates
Item Closing Balance/Current Opening Balance/LastAmount Term Amount
Associated enterprises：Jingliang Missme Catering
Management (Beijing) Co. Ltd.Total of Investment Book Value 6307415.52 6352166.62
Items calculated according to shareholding ratio
-- Net profit -44751.10
-- Other comprehensive income
-- Total comprehensive income -44751.10
IX Government Subsidies
Government subsidy included in current profit or loss
Item Current Amount Last TermAmount
VAT refunds 4245468.93 2909904.59
Supporting subsidy during the establishment phase for Tianjin
Lingang Industrial zone management committee 638752.08 638752.08
Special subsidy for infrastructure input 1304400.00Item Current Amount Last TermAmount
Compensation for demolition and relocation 3078110.50
The disabled employment subsidy 194719.10 75262.57
Development zone extension supporting bonus 261643.00
Beijing Municipal Food and Material Reserve Bureau "Oil Tank
Expansion and Winter Transformation Project" subsidy fund 274970.45 125090.45
Subsidy for job stabilization/University student employment
subsidy/Social security subsidy 156055.99 22207.22
Tianjin Binhai New Area industrial technological transformation and
park construction funds and science and technology expenditure 111111.13 111111.12
Tieling Mayor qualification bonus 200000.00
Urban land use tax refund 101200.00
Tianjin Port Free Trade Zone Development and Reform Bureau 2020
the 1st to 4th batch of Tianjin energy saving special funds 71000.00
Special Funds for Intelligent Manufacturing Issued by the Bureau of
Science Technology and Industrial Innovation of Tianjin Port Free 100000.00
Trade Zone (District Portion)
Personal Tax Handling Fee Refund 200638.84Bureau of Economic and Information Technology “ seize theopportunity to fight for the economy subsidies 60000.00”
Incentive Funds for Promoting Accelerated Development of Financial
Industry in Hainan Province 600000.00
Beijing Economic Development Zone "ShouShengGui" Reward 300000.00
Others 70657.90 169290.72
In total 9870484.92 6149861.75
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
A. June 30 2024Financial assets Financial assets
Financial assets measured at fair value measured at fair value
Financial asset items measured at and the changes and the changes Total
amortized cost recorded in current recorded in other
profits and losses comprehensive income
Monetary funds 1181398242.40 1181398242.40
Derivative financial
assets 31223815.72 31223815.72
Accounts receivables 109483882.36 109483882.36
Accounts receivable
financing 2442328.82 2442328.82
Other receivables 386904030.80 386904030.80
Investment in other
equity instruments 20000000.00 20000000.00
Other current assets 330613399.83 330613399.83
Other non-current
assets 10541666.66 10541666.66
B. December 31 2023
Financial assets
Financial assets measured at fair value Financial assets measuredFinancial asset
items measured at and the changes
at fair value and the Total
amortized cost recorded in current changes recorded in other
profits and losses comprehensive income
Monetary funds 1543385751.86 1543385751.86
Derivative financial
assets 31684620.00 31684620.00
Accounts
receivables 115780372.55 115780372.55
Accounts
receivable 2502308.90 2502308.90
financing
Other receivables 303099589.59 303099589.59
Investment in other
equity instruments 20000000.00 20000000.00
Non-current assets
due within 1 year 22188083.34 22188083.34
Other current assets 238358924.24 238358924.24
Other non-current
assets 10390000.00 10390000.00
* Book value of various financial liabilities on the balance sheet date
A. June 30 2024Financial liabilities measured
Financial liability items at fair value and changes Other financialincluded in current profits liability Total
and losses
Short term loans 1036717261.11 1036717261.11
Accounts payable 70607024.80 70607024.80
Other Payables 71848286.50 71848286.50
Long term loans 530000000.00 530000000.00
Notes payable 299025000.00 299025000.00
Non-current liability due within one year 100000000.00 100000000.00
B. December 31 2023
Financial liabilities
Financial liability items measured at fair value and Other financialchanges included in current liability Total
profits and losses
Short term loans 1163479691.67 1163479691.67
Derivative financial liability 15805393.88 15805393.88
Accounts payable 82474823.84 82474823.84
Other Payables 79618198.78 79618198.78
Long term loans 400000000.00 400000000.00
Notes payable 298800000.00 298800000.00
Non-current liability due within one year 153199763.89 153199763.89
(2) Credit Risk
On June 30 2024 the largest credit risk exposure that may cause financial loss to the Company mainly
comes from the loss on financial assets of the Company due to the failure of the other party to perform its
obligations including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument
measured at fair value its book value reflects its risk exposure instead of their biggest risk exposure and its
biggest risk exposure may vary with the change of its future fair value.In order to reduce the credit risk the Company sets relevant policies to control its exposure sets
corresponding credit periods based on customer’s financial position possibility of obtaining guarantees from third
parties credit records and other factors such as current market conditions and other credit qualifications for
customer assessment and implements other monitoring procedures to ensure that necessary measures are taken to
recover overdue credits. In addition the Company reviews the collection of individual account receivables on
each balance sheet date in order to make sufficient provision for bad debts for collectable amounts. Therefore the
Company's management believes that the Company's credit risk has been greatly reduced.The liquidity funds of the Company are deposited in banks and other financial institutions with high creditrating 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 2024
Item
Within One Year One To Five Years AboveFive Years Total
Short term loans 1036717261.11 1036717261.11
Accounts payable 70607024.80 70607024.80
Other Payables 71848286.50 71848286.50
Long term loans 530000000.00 530000000.00
Notes payable 299025000.00 299025000.00
Non-current liability due
within one year 100000000.00 100000000.00
(Continued)
December 31 2023
Item
Within One Year One To Five Above FiveYears Years Total
Short term loans 1163479691.67 1163479691.67
Derivative financial liability 15805393.88 15805393.88
Accounts payable 82474823.84 82474823.84
Other Payables 79618198.78 79618198.78
Long term loans 400000000.00 400000000.00
Notes payable 298800000.00 298800000.00
Non-current liability due within
one year 153199763.89 153199763.89
(4) Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due
to the change of market price. Market risk mainly includes interest rate risk foreign exchange risk and other price
risks such as equity instrument 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 ratesbring 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 2024 the Company's interest-bearing liabilities under floating rate contracts denominated in
RMB amounted to RMB 550000000.00 and those under fixed rate contracts denominated in RMB amounted to
RMB 1415742261.11.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 on June 30 2024 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 141976671.98 132735270.36
Accounts Receivables 592736.91
Other Receivables 60753187.26
The company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profit and loss or owner's equity. As any risk variable rarely changes
in isolation and the correlation between variables will have a significant effect on the final impact amount of a
risk variable change the following content is carried out under the assumption that the change of each variable is
independent.On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and
other variables remain unchanged the after-tax impact of possible reasonable changes in exchange rate on current
profits and losses and rights and interests is as follows:
Current period
Item [US dollar] Exchange Gross profit/net profit Increase/(decrease) in
rate Increase /(decrease) increase /(decrease) shareholders' equity
The RMB yuan depreciated
against the US dollar 5% 1000234.39 1000234.39
The RMB yuan appreciated
against the US dollar -5% -1000234.39 -1000234.39
（Continued）Prior period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
The RMB yuan depreciated
against the US dollar 5% 237923.56 237923.56
The RMB yuan appreciated
against the US dollar -5% -237923.56 -237923.56
2. Hedging
(1) The Company undertake risk management through hedging operation
Expected Effects of
Corresponding risk Qualitative and
The economic
relationship between effective risk exposure
Item management quantitative the hedged project & achievement from the
strategy and target information on relevant hedged of risk relevanthedged risk instruments management hedgedobjectives activities
Expected Fair value or
Using the hedging Qualitative: cash flow due to the
function of futures non-credit risk hedged risk of hedged
instruments to carry including basis risk project and relevant The target of
out hedging substitute risk hedging instrumentsOil and expected riskbusiness effectively supply-demand risk move in opposite EffectivelyOil managementavoid the risk of etc. direction has been avoid riskSeeds market price exposureQuantitative: market By the Changes with basically
fluctuations in order price fluctuation for the same base variable achieved
to achieve stable the hedged project or similar base variable
management and instruments that is economically
relevant
(2) The company conducts eligible hedging business and applies hedging accounting
Hedging Adjustments Effect of
Book value on book value of
related to the hedged item which Hedging validity and
hedging
Item has been recognized sources of hedging accounting onhedged Item and
instruments in which comprises of invalidity aspect
the company's
hedged item financial
accumulated fair value statements
Hedging Risk Type
Risk to changes in The invalidated portion of
the fair value of 330613399.83 330613399.83 fair value hedges during
hedging the financial statement
Note 1
period is not material.Hedging Type
The invalidated portion of
fair value hedges during
Fair value hedging 31223815.72 31223815.72 the financial statement Note 1
period is not
material.Effective Hedging
Note 1: The Company is engaged in the production and processing of imported soybeans and relatedproducts. In order to hedge the risk of changes in the prices of imported soybeans and other products the
Company uses the following futures contracts to manage the commodity price risk faced by its holdings of
inventory and unrecognized firm purchase commitment.The Company uses standard soybean meal and soybean oil futures contracts on the Dalian Commodity
Exchange to hedge the Company's holdings of soybean meal and soybean oil inventories as well as its
unrecognized firm purchase commitments as a means of hedging the Company's exposure to the risk of changes in
fair value arising from fluctuations in the market price of imported soybeans; the use of standard futures contracts
for soybeans palm oil soybean oil rapeseed oil and other futures contracts on the Dalian Commodity Exchange
and Zhengzhou Commodity Exchange Hedging of certain inventories of domestic soybeans palm oil soybean oil
rapeseed oil and other Oil and Oil Seeds held by the Company as well as unrecognized firm purchase
commitment as a means of hedging the risk of changes in fair value arising from fluctuations in the market prices
of domestic soybeans palm oil soybean oil rapeseed oil and other Oil and Oil Seeds borne by the Company.The changes in market prices of soybean meal and soybean oil produced by the Company's processing of
imported soybeans contain a risk component associated with the standard soybean meal and soybean oil futures
contracts which the Company designates as the hedged item and the standard soybean meal and soybean oil
futures contracts as the hedging instruments. There is a correlation between the economic relationship between the
hedged item and the hedging instrument such that the soybean meal and soybean oil futures contracts and the
value of the soybean meal and soybean oil squeezed from imported soybeans change in opposite directions and
are correlated because they are exposed to the same hedged risk. The movements in the market prices of domestic
soybeans palm oil soybean oil rapeseed oil and other Oil and Oil Seeds operated by the Company contain a risk
component associated with the standard soybean palm oil soybean oil rapeseed oil and other Oil and Oil Seeds
futures contracts respectively and the Company designates this risk component as the hedged item and the
standard soybean palm oil soybean oil and rapeseed oil and other Oil and Oil Seeds futures contracts as hedging
instruments. Through qualitative analysis the Company determined that the ratio of the number of hedging
instruments to the number of hedged items should not exceed 0.9:1.The Company utilizes fair value hedges for these types of hedges and the specific hedging arrangements are
as follows:
Hedged Items Hedging Instruments Hedging Methods
Risk components in inventories and Soybean oil soybean meal standard Use of commodity futures
unrecognized firm purchase commitments soybean palm oil rapeseed oil and contracts to lock in price
(soybean oil soybean meal domestically other Oil and Oil Seeds futures fluctuations for spot and
produced soybeans palm oil rapeseed oil contracts on the Dalian and unrecognized firm
and other Oil and Oil Seeds) Zhengzhou Commodity Exchange purchase commitment
During the reporting period the Company's hedging instruments hedged the gains and losses of the hedged
items and the realized gains and losses from the combination of futures and spot amounted to RMB143892300.XI Disclosure of Fair Values1. 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 Second Level Third Level
Fair Value Fair Value Fair Value Total
Measurement Measurement Measurement
One. Continuous fair value measurement
Ⅰ. Transactional financial assets 31223815.72 31223815.72
1. Financial assets that are measured at fair
value and whose changes are included in 31223815.72 31223815.72
the current profits and losses
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Derivative financial assets 31223815.72 31223815.72
2. Financial assets designated as fair value
through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Others
Ⅱ. Other debt investment
Ⅲ. Investment in other equity instruments 20000000.00 20000000.00
Total assets continuously measured at
fair value 31223815.72 20000000.00 51223815.72
Ⅵ.Transactional financial liabilities
1. Financial liabilities measured at fair
value with changes included in current
profits and losses
Including: transactional bonds issued
derivative financial liability
others
2. Financial liabilities designated as fair
value through profit or loss
Total liabilities continuously measured
at fair value
2.Basis for determining market prices of continuous and non-continuous first level fair value
measurement items
The Company makes offers for first level fair value measurement according to open contracts of the futures
exchange and the quote from the bank on financial product at the end of the period.
3.Continuous and non-continuous third-level fair value measurement items adopt valuation techniques
and qualitative and quantitative information of important parametersThe company's investment in other equity instruments of the third level fair value measurement project is the
“three notes”equity investment that without control joint control and significant influence held by the company.On the basis of analyzing the operation status of the invested enterprise and combining with relevant situations
the company takes the investment cost as the fair value of other equity instrument investment for measurement at
the end of the period.XII Related Parties and Related Party Transactions
1. Parent Company of the Company
Registered Proportion of Proportion of
Name of Parent Registered Nature of Capital Shares Held by Voting Power
Company Place Business Parent Company Held by Parent(ten thousand in the Company Company in the
Yuan) (%) Company (%)
Beijing Grain Group Beijing InvestmentCo. Ltd. 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 Affiliates of the Company
See 2. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.
4. Other Related Parties
Name of Other Related Party Relationship with the Company
Beijing Liubiju Foods Co.Ltd Controlled by the ultimate controlling party
Shanghai Shounong Investment Holding Co.Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co.Ltd Controlled by the ultimate controlling party
Beijing Dahongmen Grain Storage Co.Ltd Controlled by the ultimate controlling party
Beijing Gushun Foods Co.Ltd Controlled by the ultimate controlling party
Hebei Sanyuan Foods Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang E-commerce Co.Ltd Controlled by the ultimate controlling party
Beijing Hundred Years Chestnut Garden Ecological
Agriculture Co.Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Foods Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Dahongmen Wulinlian Food Co.Ltd Controlled by the ultimate controlling party
Beijing Heiliu Herding Technology Co.Ltd Controlled by the ultimate controlling party
Beijing Ancient Boat Rice Co.Ltd Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co.Ltd Controlled by the ultimate controlling party
Beijing Shucheng Shanshui Real Estate Co.Ltd Controlled by the ultimate controlling partyName of Other Related Party Relationship with the Company
Beijing Bai Jiayi Food Co.Ltd Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trading Co.Ltd Controlled by the ultimate controlling party
Beijing Zhangxin Grain Reserve 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 No.34 Food Supply Department Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Dot-to-Dot E-commerce Co.Ltd Controlled by the ultimate controlling party
Beijing Grain Group Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Commercial Chain Co.Ltd Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management
Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Consumption and Poverty Alleviation
Double Creation Center Co.Ltd Controlled by the ultimate controlling party
Beijing Yunong Quality Agricultural Products Cultivation
Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Taste Group Co.Ltd Controlled by the ultimate controlling party
Beijing Wang Zhihe Food Co.Ltd Controlled by the ultimate controlling party
Hebei Shounong Modern Agriculture Technology Co.Ltd Controlled by the ultimate controlling party
Shanghai Shounong Commercial Management 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
Shandong Fukuan Biological Engineering Co.Ltd Controlled by the ultimate controlling party
Chengde Sanyuan Jinxing Duck Industry Co.Ltd Controlled by the ultimate controlling party
Beijing Xinderun Agricultural Tourism Development Co.Ltd Controlled by the ultimate controlling party
Beijing Ailai Fahi Foods Co.Ltd Controlled by the ultimate controlling party
Beijing North Beijing Sugar & Wine Sales Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Yihe Sunshine Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Big Kitchen Supply Chain Management
Group Co.Ltd Controlled by the ultimate controlling party
Beijing Jinggou Taiyu Real Estate Co.Ltd Controlled by the ultimate controlling party
Beijing Municipal Grain Research Institute Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Green Valley trading Co. LTD Controlled by the ultimate controlling party
Beijing Jinggong Logistics Co.Ltd Controlled by the ultimate controlling party
Beijing Sanjiadian Grain Storage Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Canal Grain and Oil Trading Co.Ltd Controlled by the ultimate controlling partyName of Other Related Party Relationship with the Company
Beijing Jingjing Jingu Grain Purchasing and Marketing
Co.Ltd Controlled by the ultimate controlling party
Beijing Longqing Xiadu Military Grain Supply Co.Ltd Controlled by the ultimate controlling party
Beijing Desheng Hotel Co.Ltd Controlled by the ultimate controlling party
Beijing Shuangtong Huihe Agricultural Science and
Technology Development Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Xiangshan Conference Center Co.Ltd Controlled by the ultimate controlling party
Beijing Beijiao Farm Co.Ltd Controlled by the ultimate controlling party
Beijing Yanqing Farm Co.Ltd Controlled by the ultimate controlling party
Beijing Longmen Vinegar Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Biotechnology Group Co.Ltd Controlled by the ultimate controlling party
Tianjin Xincheng Kanda Pharmaceutical Co.Ltd Controlled by the ultimate controlling party
Beijing Xing Fashion Trade Co.Ltd Controlled by the ultimate controlling party
Beijing Taoshan Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Shenghua Sihe Asset Management Co.Ltd Controlled by the ultimate controlling party
Beijing Municipal Grain Co.Ltd Controlled by the ultimate controlling party
Beijing Shounong Grain Reserve Co.Ltd Controlled by the ultimate controlling party
Beijing Jingliang Gurun Trade Ltd. Controlled by the ultimate controlling party
Beijing Shounong Food Emergency Security Center Co.Ltd Controlled by the ultimate controlling party
Beijing Yue Sheng Zhai Halal Food Co.Ltd Controlled by the ultimate controlling party
Beijing Yanqi Yue Sheng Zhai Halal Food Co.Ltd Controlled by the ultimate controlling party
Beijing Ershang Meat Food Group Co. Ltd. Controlled by the ultimate controlling party
Beijing Yunong Quality Agricultural Products Cultivation
Co.Ltd Huairou Branch Controlled by the ultimate controlling party
Beijing Shounong Development Co.Ltd. Controlled by the ultimate controlling party
Beijing Nanyuan Plant Oil Factory. Controlled by the ultimate controlling party
Beijing Liubiju Food Co. Ltd. Huairou Brewery Controlled by the ultimate controlling party
Beijing Sanyuan Seed Industry Technology Co.Ltd Feed
Branch Controlled by the ultimate controlling party
Beijing Sugar Cigarette And Wine Group Co.Ltd. Sugar
Management Branch Controlled by the ultimate controlling party
Beijing Changyang Farming Co. Ltd. Controlled by the ultimate controlling party
Beijing Southern Rural Agricultural Production and
Operation Management Co. Ltd. Controlled by the ultimate controlling party
Beijing Beishui Yongxing Aquatic Products Sales Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Jinghua Tea Industry Co. Ltd. Controlled by the ultimate controlling partyName of Other Related Party Relationship with the Company
Beijing Ershang Moqi Zhonghong Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Vegetable Co. Ltd. Controlled by the ultimate controlling party
Beijing Ershang Muxiangyuan Qingzhen Meat Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Herding Technology Co.Ltd Food Center Controlled by the ultimate controlling party
Beijing Huadu Sales Co. Ltd. Controlled by the ultimate controlling party
Hebei Anping Dahongmen Food Co. Ltd. Controlled by the ultimate controlling party
Kaifeng Dahongmmen Meat Food Co. Ltd. Controlled by the ultimate controlling party
Beijing Haiyunxing shuichan Food Co. Ltd Controlled by the ultimate controlling party
Beijing Jingmen Lianshi Asset Operation Management Co.Ltd. Controlled by the ultimate controlling party
Beijing Shounong Commercial Chain Co. Ltd. Yanqing
Branch Controlled by the ultimate controlling party
Beijing Shounong Xiangshan Commercial Co. Ltd. Controlled by the ultimate controlling party
Beijing Xinanjiao Grain Stroage Co. Ltd. Controlled by the ultimate controlling party
Kangtai Culture Branch of Beijing Ershang Group Co. Ltd Controlled by the ultimate controlling party
Beijing Cailanzi Group Co. Ltd Controlled by the ultimate controlling party
Beijing Ershang Jingshen Seafood Co. Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co. Ltd Controlled by the ultimate controlling party
Beijing Changhua Property Service Center Co. Ltd Controlled by the ultimate controlling party
Beijing Huanong Materials Co. Ltd Controlled by the ultimate controlling party
Beijing Sidaokou Aquatic Products Trading Market Co. Ltd Controlled by the ultimate controlling party
Fruit Business Branch of Beijing Nankou Farm Co. Ltd. Controlled by the ultimate controlling party
Beijing Taiyu Property Management Co. Ltd Controlled by the ultimate controlling party
Fresh Supermarket First Branch of Beijing Xinderun Hotel
Management Co. Ltd. Controlled by the ultimate controlling party
Fengzhen DahongmenAgri-animal Husbandry 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
Wang Zhihe (Fujian) Food Co. Ltd Controlled by the ultimate controlling party
Beijing Jingtang Dingsheng Trading Co. Ltd Controlled by the ultimate controlling party
Beijing Baiyu Food Co. Ltd Controlled by the ultimate controlling party
Beijing Haidian District two business vocational skills
training school 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 Whether theRelated-party Current transactionsRelated Party transaction Last TermTransaction Amount approved（in ten limit is Amountthousands Yuan） exceeded
Beijing Gushun
Foods Co.Ltd Purchase of goods 7564498.25 1800.00 No 6462585.18
Other related
entities Purchase of goods 9794747.08 1200.00 No 177280899.93
Other related Acceptance of labor
entities services 580.00 No
Sale of goods/ provision of labor services
Related Party Related-party Current Amount Last TermTransaction Amount
Beijing Bai Jiayi Food Co.Ltd Sale of goods 956697.25 2028592.00
Beijing Ancient Boat Rice Co.Ltd Sale of goods 573980.75 77187.02
Beijing Jingliang Dongfang Grain and Oil Trading
Co.Ltd Sale of goods 1341520.28 1578881.67
Beijing Lanfeng Vegetable Distribution Co.Ltd Sale of goods 348547.63 286494.00
Beijing Liubiju Food Co. Ltd. Huairou Brewery Sale of goods 54495.41 6684323.12
Beijing Sanyuan Seed Industry Technology Co.Ltd
Feed Branch Sale of goods 26911055.50 29995064.69
Beijing Haidian Xijiao Grain and Oil Supply Station
Co.Ltd Sale of goods 874862.38 1738000.00
Beijing Jingjing Jingu Grain Purchasing and
Marketing Co.Ltd Sale of goods 1008073.39 655540.00
Beijing No.34 Food Supply Department Co.Ltd Sale of goods 1283674.22 1488023.46
Beijing Zhangxin Grain Reserve Co.Ltd Sale of goods 804587.15 1356413.11
Beijing Shounong Development Co.Ltd. Sale of goods 488546.78 30838.00
Beijing Shounong Consumption and Poverty
Alleviation Double Creation Center Co.Ltd Sale of goods 4945882.56 5309640.00
Beijing Wang Zhihe Food Co.Ltd Sale of goods 13829319.37 15469952.89
Beijing Wuhuan Shuntong Supply Chain
Management Co.Ltd Sale of goods 1081550.08 570548.64
Fengzhen DahongmenAgri-animal Husbandry Co.Ltd Sale of goods 243453.21
Hebei Anping Dahongmen Food Co. Ltd. Sale of goods 233410.08 621651.37
Hebei Luanping Huadu Food Co.Ltd Sale of goods 22679467.01 21221360.94
Hebei Shounong Modern Agriculture Technology
Co.Ltd Sale of goods 9595145.59 7153219.41Related Party Related-party Current Amount Last TermTransaction Amount
Shanghai Shounong Investment Holding Co.Ltd Sale of goods 221340202.14 216123328.83
Hebei Sanyuan Foods Co.Ltd Sale of goods 994300.00
Other-related entities Sale of goods 1389957.38 1542690.43
Beijing Shounong Food Group Co.Ltd Provision ofservices 1745187.40 11438400.93
Shanghai Shounong Investment Holding Co.Ltd Provision ofservices 112517.83 4677494.81
Beijing Gushun Foods Co.Ltd Provision ofservices 55691.22
Related-party transactions for purchasing and selling goods and provision and acceptance of labor services:
The price of a related-party transaction shall be equal to the price charged for an unrelated-party transaction that is
same as or similar to such related-party transaction.
(2) Related-party lease
If the Company is the lessee
Rental cost of simplified treatment Variable lease payment not
of short-term lease and low-value included in the calculation of
lease asset lease liabilities
Name of Name of Type of Lease Lease
Lessee Lessor Leased Lease ExpenseAsset Recognized in Lease Expense Expense Expense
the Current Recognized in Recognized in Recognized
Period the Prior Period the Current in the PriorPeriod Period
Beijing
Guchuan Beijing GrainGroup HouseEdible Oil leasing 580000.00
Co. Ltd. Co.Ltd
Beijing Beijing
Guchuan Nanyuan House
Edible Oil Plant Oil leasing 323809.52 323809.52
Co. Ltd. Factory.Beijing
Beijing Municipal
Jingliang Food Grain House 1618878.70
Co. Ltd. Research leasingInstitute
Co.Ltd
Beijing
jingliang gubi Beijing Grain
oil and grease Group
House 1150480.00
co. LTD Co.Ltd
leasing
Beijing Beijing
Jingliang Oil Dahongmen House
and Fat Co. Grain Storage leasing 311324.36
Ltd. Co.LtdBeijing Beijing
Tianweikang Shounong
Oil Food
Distribution Emergency
House 1378125.00 1312500.00
Center Co. Security
leasing
Ltd. CenterCo.Ltd
（Continued ）
Payment of rent Interest expenseon lease liabilities Increase in right-of-use assets
Name of Lessee Lease Lease Lease Lease
Lease
Expense Expense Expense Expense ExpenseRecognized Lease ExpenseRecognized in Recognized Recognized Recognized Recognized in
the Current in the Prior in the Current in the Prior in theCurrent the Prior PeriodPeriod Period Period Period Period
Beijing Guchuan
Edible Oil Co.Ltd.Beijing Guchuan
Edible Oil Co. 323809.52 323809.52
Ltd.Beijing
Jingliang Food 12880733.94 1842194.39
Co. Ltd.Beijing jingliang
gubi oil and
grease co. LTD
Beijing
Jingliang Oil 311324.36
and Fat Co. Ltd.Beijing
Tianweikang Oil
Distribution
Center Co. Ltd.
(3) Remuneration for key management staff
Item Current Amount (Unit: ten thousand Last TermAmount (Unit: tenyuan) thousand yuan)
Remuneration for Key Management
Staff 249.88 223.83
(4) Other Related-party Transactions
Guaranteed Party Related-party Transaction Current Amount Last Term Amount
Beijing Gushun Foods Co.Ltd Brand royalty income 1497800.00Beijing Haidian District two business
vocational skills training school Training expenses 1650.00
Beijing Municipal Grain Research
Institute Co.Ltd Telephone income 19163.48
Beijing Shounong Food Emergency
Security Center Co.Ltd Electricity and other expenses 92671.26 63518.42
Beijing Shounong Food Group
Finance Co.Ltd Interest income 3888582.97 2066407.44
Beijing Shounong Xiangshan
Conference Center Co.Ltd Conference and other expenses 24801.89 4433.97
6. Related party Receivables and Payables
(1) Receivables
Closing Balance Opening Balance
Item Related-party
Book Balance Provision forBad Debts Book Balance
Provision for
Bad Debts
Monetary Beijing Shounong Food
funds Group Finance Co.Ltd 532305996.27 890056629.88
Receivables Beijing Ailai Fahi FoodsCo.Ltd 21289.60
Receivables Beijing Bai Jiayi FoodCo.Ltd 191250.00 228000.00
Receivables Beijing Ershang MeatFood Group Co. Ltd. 16825.00 13200.00
Receivables Beijing Ancient Boat RiceCo.Ltd 295520.00
Receivables Beijing Gushun FoodsCo.Ltd 1500635.00
Beijing Jingliang
Receivables Dongfang Grain and Oil 285663.50 212077.75
Trading Co.Ltd
Receivables Beijing Jinggou TaiyuReal Estate Co.Ltd 69600.00
Receivables Beijing Lanfeng VegetableDistribution Co.Ltd 56250.00 36765.00
Beijing Sanyuan Seed
Receivables Industry Technology 3825909.02 2271574.62
Co.Ltd Feed Branch
Receivables Beijing HuanongMaterials Co. Ltd 3223.00
Beijing Jingjing Jingu
Receivables Grain Purchasing and 300800.00
Marketing Co.Ltd
Beijing No.34 Food
Receivables Supply Department 67680.00
Co.Ltd
Receivables Beijing Zhangxin GrainReserve Co.Ltd 246000.00 99000.00Closing Balance Opening Balance
Item Related-party
Book Balance Provision for Provision forBad Debts Book Balance Bad Debts
Beijing Shucheng
Receivables Shanshui Real Estate 6730.00
Co.Ltd
Beijing Shounong
Receivables Dot-to-Dot E-commerce 53886.00
Co.Ltd
Beijing Shounong
Receivables Commercial Chain 658.00
Co.Ltd
Beijing Shounong
Receivables Xiangshan Commercial 48325.00
Co. Ltd.Beijing Shounong
Receivables Consumption and PovertyAlleviation Double 2088600.00 399500.00
Creation Center Co.Ltd
Beijing Wuhuan Shuntong
Receivables Supply Chain 326612.50
Management Co.Ltd
Receivables Hebei Anping DahongmenFood Co. Ltd. 178200.00 86000.00
Receivables Hebei Luanping HuaduFood Co.Ltd 13145439.04 3619958.60
Hebei Shounong Modern
Receivables Agriculture Technology 1176790.58 1047816.96
Co.Ltd
Receivables Kaifeng DahongmmenMeat Food Co. Ltd. 64500.00
Receivables Beijing Sanyuan FoodsCo.Ltd 112290.00
Shanghai Shounong
Receivables Investment Holding 677093.11
Co.Ltd
Beijing Ershang
Receivables Dahongmen Wulinlian 477.00
Food Co.Ltd
Prepayment Beijing Baiyu Food Co.Ltd 550.00
Other Beijing Ancient Boat Rice
Receivables Co.Ltd 50000.00
(2) Payables
Item Related-party Closing Balance Opening Balance
Payables Beijing Ershang Meat Food Group Co. Ltd. 79497.34 3633.06
Payables Beijing Ancient Boat Rice Co.Ltd 64711.01Item Related-party Closing Balance Opening Balance
Payables Beijing Gushun Foods Co.Ltd 153137.62 464000.00
Payables Beijing Liubiju Foods Co.Ltd 458.76
Payables Beijing Southern Rural Agricultural Productionand Operation Management Co. Ltd. 660.00 410.00
Payables Beijing Shounong Food Emergency SecurityCenter Co.Ltd 1378125.00
Payables Beijing Sugar Cigarette And Wine GroupCo.Ltd. Sugar Management Branch 775.22 3763.10
Payables Beijing Yanqi Yue Sheng Zhai Halal FoodCo.Ltd 50.45
Payables Beijing Shounong Grain Reserve Co.Ltd 720000.00
Payables Beijing Ershang Dahongmen Wulinlian FoodCo.Ltd 96.79
Payables Beijing Shounong Development Co.Ltd. 559500.00
Other payables Kangtai Culture Branch of Beijing ErshangGroup Co. Ltd 210.00 210.00
Other payables Beijing Jingliang E-commerce Co.Ltd 42432.00
Other payables Beijing Grain Group Co.Ltd 4606680.00 3456200.00
Other payables Shanghai Shounong Investment Holding Co.Ltd 188422.48
Contract liability Beijing Shucheng Shanshui Real Estate Co.Ltd 3091.74
Contract liability Beijing Shounong Development Co.Ltd. 49082.57
Contract liability Beijing Shuangtong Huihe Agricultural Scienceand Technology Development Co.Ltd 2201.83
Contract liability Shanghai Shounong Investment Holding Co.Ltd 3341866.73 7259750.24
Other current Beijing Shuangtong Huihe Agricultural Science
liability and Technology Development Co.Ltd 198.17
Other current
liability Shanghai Shounong Investment Holding Co.Ltd 300768.01 653377.52
Other current
liability Beijing Shucheng Shanshui Real Estate Co.Ltd 278.26
Other current
liability Beijing Shounong Development Co.Ltd. 4417.43
Account collected
in advance Beijing Jingliang E-commerce Co.Ltd 42432.00
XIII Share based payment
There are no share-based payments incurred this year for the company.XIV Commitments and Contingencies
By the end of this report the actual amount of guarantee of the company and its holding subsidiaries is 1.589
billion yuan accounting for 50.62% of the company's audited net assets attributable to the parent company in the
latest period which are all guarantees between the company and its holding subsidiaries. There is no guaranteeprovided by the Company and its holding subsidiary to any entity other than the consolidated statement and there
is no delay in external guarantee guarantee involving litigation or loss due to the judgment of loss due to
guarantee.XV Events after the Balance Sheet Date
1. Distribution of Profits
As of the date of this financial report the company has no important non adjustment matters that need to be
disclosed.XVI Other Important Matters
1. Annuity Plan
Basic information of annuity: Beijing Jingliang Food Co. Ltd. Jingliang (Tianjin) grain and Oil Industry Co.Ltd. Beijing Guchuan Oil Co. Ltd. Beijing Eisen Lubao Oil Co. Ltd. Beijing Jingliang Oil Co. Ltd. Beijing
Guchuan Bread Food Co. Ltd. and Beijing Tianweikang Oil Distribution Center Co. Ltd. of the company
participated in the enterprise annuity plan of Beijing shounong Food Group Co. Ltd. and formulated the
implementation rules of their respective enterprises under the annuity plan. The name of the annuity plan is Ping
An Jinxiu life enterprise annuity plan; the trustee and account manager are ping an Endowment Insurance Co.Ltd.; the trustee is China CITIC Bank Co. Ltd.
2. Information of 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 AmongDivisions Total
Operating income 437380249.12 5118555457.42 28712.40 5555906994.14
Operating costs 344064429.13 4987979901.44 28712.40 5332015618.17
Total assets 999091734.40 6010168087.78 432000072.00 6577259750.18
Total liabilities 107509630.38 3351703390.89 432000072.00 3027212949.27
XVII Notes to Main Financial Statement Items of Parent Company
1. Monetary fundsItem Closing Balance Opening Balance
Cash on hand
Bank Deposits 338712954.06 23734670.48
Other Currency Funds 8589.67 8585.33
Total 338721543.73 23743255.81
2. Other Receivable
Item Closing Balance Opening Balance
Dividends receivable
Other receivables 910000000.00 950000000.00
Total 910000000.00 950000000.00
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year (including 1 year) 290000000.00 800000000.00
1 to 2 years (including 2 years) 510000000.00 29000000.00
2 to 3 years (including 3 years) 29000000.00 121000000.00
3 to 4 years (including 4 years) 81000000.00
Total 910000000.00 950000000.00
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 910000000.00 950000000.00
Total 910000000.00 950000000.00
C. Other receivables according to top five of balance at end of period collected by debtors
Name of Balance at End of Proportion in overall Closing Balance
Organization Period Closing Balance of
Nature of Aging of bad debtother receivables (%) Funds%） reserves
Beijing Jingliang Related
Food Co. Ltd. 910000000.00 100.00 party
Within 4
borrowing years
Total 910000000.00 100.00
3. Long-term Equity Investment
Closing Balance
Item
Book Balance Provision for Impairment Book Value
Investment in subsidiaries 2340799283.19 2340799283.19Closing Balance
Item
Book Balance Provision for Impairment Book Value
Total 2340799283.19 2340799283.19
(Continued)
Opening Balance
Item
Book Balance Provision for Impairment Book Value
Investment in subsidiaries 2625657283.19 2625657283.19
Total 2625657283.19 2625657283.19
Investment in subsidiaries
Current Closing
Invested Balance of
Entity Opening Balance
Current Current
Increase Decrease Closing Balance
Provision
for Provision
Impairment forImpairment
Beijing
Jingliang
Food Co. 2336639964.05 284858000.00 2051781964.05
Ltd.Zhejiang
little prince
Food Co. 249017319.14 249017319.14
Ltd
Jingliang
(Yangpu)
Grain and 6500000.00 6500000.00
Oil Industry
Co. Ltd.Jingliang
(Caofeidian)
Agricultural 25500000.00 25500000.00
Developmen
t Co. Ltd.Jingliang
(Beijing)
Food
Marketing 8000000.00 8000000.00
Managemen
t Co. Ltd
Total 2625657283.19 284858000.00 2340799283.19
4. Operating Income and Operating costs
Details of operating income and operating costs
Current Amount Last TermAmount
Item
Income Cost Income CostOther businesses 2047313.31 170581.26 11839311.03 170581.26
Total 2047313.31 170581.26 11839311.03 170581.26
5. Income from investment
Sources of investment income Current Amount Last Term Amount
Long term equity investment income calculated
by cost method 191582.04 150814.85
Investment income from disposal of long-term
equity investments 27829877.46
Total 28021459.50 150814.85
XVIII Supplementary Information
1. Details of non-recurring profit and loss in the reporting period
Details of non-recurring profit and loss Amount Note
Gains and losses on disposal of non current assets， including provision for assetimpairment write-off portion -59859.78
Government subsidies included in the current profits and losses (closely related to the
business of the enterprise except the government subsidies enjoyed according to the 5876740.78
national unified standard quota or quantitative)
In addition to the effective hedging business related to the normal business of the
company the profit and loss from changes in fair value arising from the holding of
financial assets and financial liabilities by non-financial enterprisesas well as the
investment income from the disposal of financial assets and financial liabilities
Income from custodial fees obtained from entrusted operations 1646403.21
Other non-operating income and expenses other than the above 5907678.04
Other profit and loss items that meet the definition of non recurring profit and loss
Less: amount affected by income tax 1166874.83
Non recurring profit and loss attributable to minority shareholders (after tax) 1435780.72
Total 10768306.70
2. Return on equity and earnings per share
Situation on return on equity and earnings per share
Weighted Return on EPS
Current Profit Average Equity
(ROAE) (%) Basic EPS Diluted EPS
Net profit attributable to the Company's common
shareholders 0.76 0.03 0.03
Net profit attributable to common shareholders after
deduction of non-recurring gains and losses 0.42 0.02 0.02
Hainan Jingliang Holdings Co. Ltd.
28 August 2024
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