HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2022
March 2023
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2022
Part I Important NotesThe Board of Directors, The Supervisory Committee, the supervisors and the directors of the Companyguarantee that there are no significant omissions, fictitious or misleading statements carried in the Reportand will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of theReport.Chairman Wang Chunli , Chief Financial Officer Guan Ying, and the head of Accounting Department CaoLing hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.All the Company’s Directors have attended the Board meeting for the review of this Report.In order for a full understanding of the Company’s operating results, financial position and futuredevelopment plans, investors should carefully read the annul report, which has been disclosed on the mediadesignated by the China Securities Regulatory Commission (the “CSRC”).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 final 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
This report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Part II Key Corporate Information
1. Stock Profile
| Stock name | JLKG, JL-B | Stock code | 000505, 200505 |
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Contact information | Board Secretary | Securities Representative | |
| Name | Guan Ying | Gao Deqiu | |
| Office address | 15/F, Jing Liang Building, NO. 16 East Third Ring Middle Road, Chaoyang District, Beijing | 15/F, Jing Liang Building, NO. 16 East Third Ring Middle Road, Chaoyang District, Beijing | |
| Fax | 010-51672010 | 010-51672010 | |
| Tel. | 010-51672270 | 010-51672029 | |
| E-mail address | guanying@bjjlkg.cn | gaodeqiu@bjjlkg.cn | |
2. Principal Activities or Products in the Reporting Period
The Company is principally engaged in oils and oilseeds processing and trading, as well as food processing.With regard to oils processing and trading, the Company refines, bottles, markets, imports and exports rawoils upon initial pressing. As for oilseeds, the Company presses, refines, bottles, markets, imports and exportsoilseeds such as sesame, soybean, corn germ, sunflower seeds and peanuts. The Company runs its oils andoilseeds processing and trading business primarily in Beijing City, Tianjin City and Hebei Province underthe brands of “Gu Chuan”, “Lv Bao”, “Gu Bi”, “Huo Niao”, etc., with the main products being soybean oil,rapeseed oil, sunflower seed oil and sesame oil and paste, among others. As for its food processing business,it primarily develops, produces and markets snack food and bread under the brands of “Little Prince”, “MSDong”, “Jianqiang De Tudou” and “Gu Chuan”, among others, with the main products being potato chips,cakes and pastries and bread. The snack food business covers all provinces and municipalities in China,while the bread business focuses on the Beijing-Tianjin-Hebei region. In this regard, the Company is one ofthe major suppliers for KFC in North China.According to the Industry Categorization Results of ListedCompanies, the Company falls into the major industry category of manufacturing—agri-food processingindustry (code: C13). Specifically, the Company operates in the vegetable oil processing segment, with itsfood processing business accounting for a large proportion in gross profit. With respect to the vegetable oilprocessing industry, industrial integration has accelerated and differentiation is increasingly evident, withminority oils such as sunflower seed oil, tea oil, corn oil and rice bran oil seeing fast growth. In terms of thefood processing industry, consumer needs have become increasingly diverse, resulting in better and richerproduct offerings. Nonetheless, there are only a handful of major brands in the industry, indicating greatpotential for industrial integration.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes ? No
Unit: RMB
| 31 December 2022 | 31 December 2021 | Change of 31 December 2022 over 31 December 2021 (%) | 31 December 2020 | |
| Total assets | 6,105,144,167.96 | 6,046,600,058.90 | 0.97% | 5,695,504,493.73 |
| Equity attributable to the listed company’s shareholders | 3,061,661,435.05 | 2,915,802,291.05 | 5.00% | 2,710,571,543.53 |
| 2022 | 2021 | 2022-over-2021 change (%) | 2020 | |
| Operating revenue | 12,857,874,301.72 | 11,763,093,835.56 | 9.31% | 8,741,749,912.11 |
| Net profit attributable to the listed company’s shareholders | 141,411,141.28 | 204,459,771.08 | -30.84% | 184,846,956.70 |
| Net profit attributable to the listed company’s shareholders before exceptional items | 124,297,168.33 | 195,422,832.45 | -36.40% | 164,037,737.59 |
| Net cash generated from/used in operating activities | -533,230,947.03 | 632,240,056.44 | -184.34% | -246,540,910.08 |
| Basic earnings per share (RMB/share) | 0.19 | 0.28 | -32.14% | 0.26 |
| Diluted earnings per share (RMB/share) | 0.19 | 0.28 | -32.14% | 0.26 |
| Weighted average return on equity (%) | 4.73% | 7.27% | -2.54% | 7.17% |
(2) Key Financial Information by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 3,024,441,143.44 | 2,488,340,126.88 | 3,931,892,303.79 | 3,413,200,727.61 |
| Net profit attributable to the listed company’s shareholders | 36,992,676.25 | 35,915,653.90 | 18,632,830.26 | 49,869,980.87 |
| Net profit attributable to the listed company’s shareholders before exceptional items | 36,436,748.65 | 34,828,990.82 | 15,748,627.17 | 37,282,801.69 |
| Net cash generated from/used in operating activities | -193,652,734.08 | 19,042,324.65 | 9,679,813.98 | -368,300,351.58 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summationsdiffers materially from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights aswell as Holdings of Top 10 Shareholders
Unit: Share
| Number of ordinary shareholders at the period-end | 68,206 | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 67,266 | Number of preferred shareholders with resumed voting rights at the period-end | 0 | Number of preferred shareholders with resumed voting rights at the month-end prior to the disclosure of this Report | 0 | |||
| Top 10 shareholders | ||||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Restricted shares held | Shares in pledge, marked or frozen | |||||
| Status | Shares | |||||||||
| BEIJING GRAIN GROUP CO., LTD. | State-owned legal person | 39.68% | 288,439,561 | 0 | ||||||
| BEIJING STATE-OWNED CAPITAL OPERATION AND MANAGEMENT COMPANY LIMITED | State-owned legal person | 6.67% | 48,510,460 | 0 | ||||||
| WANG YUECHENG | Domestic natural person | 5.66% | 41,159,887 | 41,159,887 | ||||||
| LI SHERYN ZHAN MING | Foreign natural person | 0.42% | 3,024,600 | 0 | ||||||
| MEI JIANYING | Domestic natural person | 0.36% | 2,604,203 | 0 | ||||||
| WANG ZHIQIANG | Domestic natural person | 0.34% | 2,507,123 | 0 | ||||||
| CHEN TING | Domestic natural person | 0.31% | 2,261,069 | 0 | ||||||
| CHEN TIANHUA | Domestic natural person | 0.29% | 2,101,100 | 0 | ||||||
| ZHANG XIAOXIA | Domestic natural person | 0.27% | 1,949,250 | 0 | ||||||
| WANG XIAOXING | Domestic natural person | 0.23% | 1,654,200 | 0 | ||||||
| Related or acting-in-concert parties among the shareholders above | ① Beijing State-Owned Capital Operation and Management Company Ltd. owns an indirect 100% share of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is the controlling shareholder of the Company (a 39.68% holding). ② Wang Yuecheng is a Deputy General Manager of the Company. Apart from that, the Company does not know whether there are any other related parties or acting-in-concert parties among the top 10 shareholders. | |||||||||
| Shareholders involved in securities margin trading (if any) | Shareholder Chen Tianhua holds 2,093,500 shares in the Company through his account of collateral securities for margin trading in Founder Securities Co., Ltd. Shareholder Wang Xiaoxing holds 1,654,200 shares in the Company through his account of collateral securities for margin trading in Soochow Securities Co., Ltd. | |||||||||
(2) Number of Preferred Shareholders and Shareholdings of Top 10
□ Applicable ? Not applicable
No preferred shareholders in the Reporting Period.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
□ Applicable ? Not applicable
Part III Significant EventsIn 2022, various uncertainties and urgency intertwined and became the new normal. In the face of variousexternal environmental pressures, the company adhered to the general tone of seeking progress whilemaintaining stability, fully promoted the implementation of the “14th Five Year Plan” development plan, andmaintained a stable development trend in general. For the year under review, the Company recordedoperating revenue of RMB12.858 billion, up 9.31% year on year, a net profit attributable to the listedcompany’s shareholders of RMB141 million, down 30.84% year on year.No significant changes occurred to the Company’s operations in the Reporting Period.Part IV Financial Statements
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
Hainan Jingliang Holdings Co., Ltd.Notes to the 2022 Financial Statements(Unless otherwise stated, the amount unit is RMB Yuan)
I. Basic Information of the Company
1. Place of incorporation, form of organization and head office addressHainan 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 GeneralOffice QFBH (1992) No.1, approved by QY (1992) SGZ No. 6 Document of the People's Bank of HainanProvince and re-registered by Hainan Pearl River Enterprise Company on January 11, 1992. The Companyissued 81,880,000 shares in total upon re-registration, of which 60,793,600 shares were converted from thenet assets of the original company and 21,086,400 shares were newly issued. And the name of the Companyis Hainan Pearl River Enterprise Co., Ltd. The business license registration number of the joint-stockcompany is 20128455-6, and the holding parent company Guangzhou Pearl River Enterprise Group holds36,393,600 shares, accounting for 44.45%. Approved by ZGB (1992) No. 83 Document of the People's Bankof China in December 1992, the additional 21,086,400 shares were listed on the Shenzhen Stock Exchangefor trading. The industry involved is real estate.On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Officeand SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of the People's Bank of China, theCompany increased its share capital by converting the original share capital into 139,196,000 shares(according to distribution of 10, delivery of 5 and transfer of 2), with the controlling shareholder GuangzhouPearl River Enterprises Group holding 48,969,120 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 278,392,000 sharesafter the increase. The controlling shareholder, Guangzhou Pearl River Enterprises Group, holds 97,938,240shares, accounting for 35.18%.In 1995, the issuance of 50,000,000 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 theadditional B shares were issued, and the share capital of the Company after the increase was 377,650,800shares. The holding parent company, Guangzhou Pearl River Enterprises Group, held 112,628,976 shares,accounting for 29.82% of the total.In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares to Beijing WanfaReal Estate Development Co., Ltd.. After the transfer of shares was completed in June 1999, Beijing WanfaReal Estate Development Co., Ltd. held 112,628,976 shares of the Company, accounting for 29.82% of thetotal shares of the Company, and became the controlling shareholder of the Company.
On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd.
and the Business License for Enterprise Legal Person was renewed by Industrial & CommerceAdministration Bureau of Hainan Province.On August 17, 2006, the reform plan of the split share structure of the Company was implemented. TheCompany transferred 49,094,604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. Theoriginal non-tradable shareholders transferred the increased shares to the tradable A-share holders. BeijingWanfa Real Estate Development Co., Ltd. reimbursed the consideration shares of the non-tradableshareholders who have not expressly expressed their opinions. The converted total share capital was426,745,404 shares, and the original controlling shareholder Beijing Wanfa Real Estate Development Co.,Ltd. held 107,993,698 shares, accounting for 25.31%. Shareholders of non-tradable shares repaid 3,289,780shares in consideration of the split share structure in 2007. Shareholders of non-tradable shares repaid1,196,000 shares in consideration of the split share structure in 2009.On 2 September 2016, Beijing Wanfa Real Estate Development Co., Ltd., the original controllingshareholder, transferred all of its 112,479,478 shares to Beijing Grain Group Co., Ltd. (hereinafter referredto as "Beijing Grain Group"). Upon completion of the share transfer in September 2016, Beijing Grain GroupCo., Ltd. held 112,479,478 shares, accounting for 26.36% of the total shares of the Company. In November2016, based on the confidence in the subject matter of the material asset restructuring and the futuredevelopment of the Company, Beijing Grain Group Co., Ltd. decided to increase its shareholding throughcentralized bidding in the secondary market. After the increase, it held 123,561,963 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 thematerial assets restructuring plan and the delivery agreement. On September 14, 2017, approved pursuant tothe resolution of the Second Extraordinary General Meeting of Shareholders of the Company on November18, 2016 and the Approval Reply of the China Securities Regulatory Commission dated July 28, 2017 OnApproval of Hainan Pearl River Holding Co., Ltd. to Purchase Assets and Raise Supporting Funds fromBeijing Grain Group Co., Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the originalshareholders of Beijing Grain Food Co., Ltd. (hereinafter referred to as Beijing Grain Food) by issuing210,079,552 shares of the balance between the transaction price of the injected assets and the assets to bepurchased (the difference between the transaction price of the injected assets and the assets to be purchasedwas RMB 1,699.5436 million yuan). The par value in the issuance was RMB 1.00 per share and the issuanceprice was RMB 8.09 per share; 2) The Company has issued 48,965,408 non-public shares of the Companyto Beijing Grain Group for the purpose of purchasing the supporting funds raised from the assets of theissuance of shares. The par value per share of the Company was RMB1.00 and the issuance price wasRMB8.82 per share. The shareholder Beijing Grain Group conducted subscription in monetary funds. Uponcompletion of the issue, the registered capital was RMB 685,790,364.00 and the share capital was RMB
685,790,364.00. Beijing Grain Group, which accounted for 42.06% of the total number of shares, becamethe largest shareholder of the Company.On November 21, 2019, with the approval of Beijing Shounong Food Group Co., Ltd. (BeijingShounong Food publish [2019] No. 212), Approval on the Plan of Purchasing Assets by Cash and IssuingShares of Hainan Jingliang Holdings Co., Ltd, On April , 2020, with the approval of Approval of HainanJingliang Holding Co., Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets by China SecuritiesRegulatory Commission [2020] No. 610, the company shall not issue more than 41,159,887 new shares inprivate offering to raise funds supporting the purchase of assets through the issued shares. The Company andits subsidiary, Beijing Jingliang Food Co., Ltd., purchased the 25.1149% equity stake of Zhejiang LittlePrince by cash and issuance of shares.As of December 31, 2022, the company has issued 726,950,251.00 shares, and the company's sharecapital is 726,950,251.00 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; Legalrepresentative: WangChunli.
2. The nature of the Company's business and its main business activitiesThe Company belongs to manufacturing-agricultural and sideline food processing industry. Its mainbusiness activities mainly includes: food, beverages, oilseeds and by products, vegetable proteins andtheir products, organic fertilizers, microbial fertilizers, production and marketing of agricultural fertilizers;land consolidation, soil remediation; agricultural comprehensive planting development, animal husbandryand 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 andexport trade in goods and technology; rental of own premises.The Company and its subsidiaries are principally engaged in the processing, production and sales offoodstuffs, agricultural and sideline products, grease, oils, and leisure foods.
3. The name of the parent company and the ultimate parent company.The parent company of the company is Beijing Grain Group Co., Ltd., and the ultimate parent companyis Beijing Capital Agribusiness Food Group Co., Ltd.
4. 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 resolutiondated March 29, 2023.
5. Consolidation scope
The consolidated scope of the consolidated financial statements of the company is determined on thebasis of control, including the financial statements of the company and all subsidiaries. Subsidiaries refer toenterprises or entities controlled by the Company.
A total of 18 subsidiaries of the Company were included in the scope of consolidation on 31 December,2022, as detailed in Note VIII. "Equitiess in Other Entities". The consolidation scope of the Company forthe current period is changed that is same as the previous period as detailed in Note 7, "Change inConsolidation Scope" the subsidiary Jingliang Tianyuan Complex Construction and Operation (Xinyi) Co.,Ltd. has been cancelled and Jingliang (Beijing) Food Marketing Management Co., Ltd has been newlyestablished.
II. Preparation Basis for Financial Statements
1.Preparation Basis
Based on the assumption of going concern and according to actual transaction events, the financialstatements are prepared in accordance with the relevant provisions of Accounting Standard for BusinessEnterprises and the following stated Significant Accounting Policies and Estimates.
2. Going concern
The Company has a going concern capability for 12 months from the end of the reporting period andno material matters affecting the company's going concern capability were found. Therefore, the financialstatements are presented on a going concern basis is reasonable.
III. Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing, production and sales of food,agricultural and sideline products, grease, oil and leisure food. According to the characteristics of actualproduction and operation and the provisions of relevant accounting standards for business enterprises, theCompany and its subsidiaries have formulated a number of specific accounting policies and accountingestimates for transactions and events such as revenue recognition. For details, please refer to the descriptionsin Note Ⅲ, 26 “Revenue". For descriptions of the significant accounting judgments and estimates made bythe management, please refer to Note Ⅲ, 32 “Significant Accounting Judgments and Estimates"
1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to therequirements of the Accounting Standards for Business Enterprises and their application guidelines,explanations and other relevant provisions (collectively referred to as "ASBE") and truly and completelyreflect the Company's financial status, operating results, cash flow and other relevant information.
In addition, the preparation of this financial report refers to the Rules for Preparation and ReportingInformation Disclosure of Companies Offering Securities to the Public No.15-General Provisions onFinancial Reports revised by China Securities Regulatory Commission in 2014 and the presentation and
disclosure requirements in Notice on Matters Related to the Implementation of the New AccountingStandards for Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453)
2. Accounting Period and Business Cycle
The accounting period of the Company is divided into an annual period and an interim period. Theaccounting interim period refers to the reporting period shorter than a full accounting year. The fiscal yearof the Company adopts the Gregorian calendar year, that is, from January 1 to December 31 of each year.The normal business cycle is the period from the time the Company purchases assets for processing tothe time when cash or cash equivalents are realized. The Company uses 12 months as an business cycle anduses it as a liquidity classification standard for assets and liabilities.
3. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domesticsubsidiaries operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standardcurrency. The offshore subsidiaries of the Company determine USD as their bookkeeping standard currencybased on the currencies in the main economic environment in which they operate. The currency used by theCompany in preparing these financial statements is RMB.
4. The Accounting Treatment of Business Combination under the Same Control and DifferentControl
Business Combination refers to the transaction or event in which two or more separate enterprises aremerged to form one reporting entity. Business combination can be divided into business combination underthe 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 multipleparties before and after the combination, and the control is not temporary, so it is the business combinationunder the same control. In case of business combination under the same control, the party that obtains controlof 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 daterefers 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 themerged party at the date of consolidation, including goodwill that was formed during acquisition by endcontroller . If the difference between the book value of the net assets acquired by the merging party and thebook 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) isinsufficient 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 multipleparties before and after the merger, the enterprise merger is not under the same control. In case of businesscombination under different control, the party that obtains control of other enterprises participating in thecombination on the date of purchase shall be the Purchaser, and the other enterprises participating in thecombination shall be the Purchasee. Purchase date means the date on which the Purchaser actually acquirescontrol of the Purchasee.For business combination under different control, the merger cost includes the assets, liabilities and fairvalue of equity securities issued by the Purchaser in order to obtain the control over the Purchasee on thedate of purchase, and the intermediary fees such as audit, legal service, appraisal and consultation and othermanagement fees for the enterprise merger are used to record into the profits and losses of the current periodwhen incurred. The transaction costs of equity or debt securities issued by the Purchaser as a mergerconsideration are included in the initial recognition amount of the equity or debt securities. Contingentconsideration involved shall be included in the consolidation cost at its fair value at the purchase date, andthe consolidation goodwill shall be adjusted accordingly if new or further evidence of the existence ofcircumstances at the purchase date appears within 12 months after the purchase date and the adjustment orconsideration is required. The consolidation cost incurred by the Purchaser and the identifiable net assetsacquired during the consolidation are measured at the fair value at the date of purchase. The differencebetween the merger costs and the fair value shares of the identifiable net assets of the Purchasee at thepurchase date obtained in the merger is recognized as goodwill. If the combined cost is less than the fairvalue 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 bere-checked. If the consolidation cost is still smaller than the fair value share of the identifiable net assets ofthe Purchased obtained in the consolidation after the re-check, the difference shall be recorded into the profitsand losses of the current period.When the Purchaser acquires the deductible temporary difference of the Purchasee, if it fails torecognize the deferred income tax assets on the date of purchase because it does not meet the recognitionconditions for the deferred income tax, and within 12 months of the date of purchase, new or furtherinformation is obtained indicating that the relevant circumstances at the purchase date already exist and theeconomic benefits from the temporary difference deductible by the purchaser on the purchase date areexpected to be realized, the relevant deferred income tax assets shall be recognized, and the goodwill shallbe reduced. If the goodwill is not sufficiently offset, the difference shall be recognized as the current profitor 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 tothe Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standardsfor Business Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for BusinessEnterprises No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 5 (2)of Note 3), it is determined whether the multiple transactions belong to the "package deal". In the case of a"package deal", the accounting treatment shall be performed with reference to the description in thepreceding paragraphs of this section and Note 3, 13 "Long-term Equity Investments"; If the transaction isnot a "package deal", the accounting treatment shall be distinguished between the individual financialstatements and the consolidated financial statements:
In the individual financial statements, the sum of the book value of the equity investment held by thePurchaser prior to the purchase date and the cost of the new investment at the purchase date shall be takenas the initial investment cost of the investment; Where the equity of the Purchased held before the date ofpurchase involves other comprehensive income, the other consolidated income associated with theinvestment 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 netassets of the defined benefit plan remeasured in accordance with the equity method, the rest is transferred tothe current investment income).In the consolidated financial statements, the equity of the Purchased held prior to the date of purchaseis remeasured according to the fair value of the equity at the date of purchase, and the difference betweenthe fair value and the carrying value is included in the investment income of the current period; Where theequity of the Purchasee held before the date of purchase involves other comprehensive income, otherconsolidated income related thereto shall be accounted for on the same basis as the direct disposal of therelevant assets or liabilities by the Purchaser (i.e., except for the corresponding share in the change causedby the acquisition of the net liability or net asset of the defined benefit plan remeasured in accordance withthe equity method, the rest is converted into the investment income of the current period to which theacquisition date belongs).
5. Preparation Method of Consolidated Financial Statement
(1) Principles for determining the scope of the consolidated financial statement
The scope of consolidation of the consolidated financial statements is determined on a control basis.Control means that the Company has the authority over the Investee, enjoys a variable return by participatingin the relevant activities of the Investee, and has the ability to use its authority over the Investee to influencethe amount of such return. The scope of the merger includes the Company and all its subsidiaries. Subsidiaryrefers to the main body controlled by the Company.
The Company will re-evaluate the above control definitions once the relevant facts and circumstanceschange, 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 theproduction 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 subsidiariesdisposed of, the operating results and cash flows prior to the date of disposal have been appropriatelyincluded in the consolidated income statement and consolidated cash flow statement; For subsidiariesdisposed of in the current period, the opening amount of the consolidated balance sheet is not adjusted. Theoperating results and cash flows of subsidiaries increased by consolidation after purchase have been properlyincluded in the consolidated income statement and consolidated cash flow statement, and the opening andcomparative amounts in the consolidated financial statements have not been adjusted for subsidiaries thatare not under the same control. The operating results and cash flows of the subsidiaries increased byconsolidation under the same control from the beginning of the consolidation period to the consolidationdate have been appropriately included in the consolidated profit statement and consolidated cash flowstatement, and the comparative amount of the consolidated financial statements has been adjusted at thesame time.
In the preparation of the consolidated financial statements, if the accounting policies or accountingperiods adopted by the subsidiaries are inconsistent with those adopted by the Company, necessaryadjustments shall be made to the financial statements of the subsidiaries in accordance with the accountingpolicies and accounting periods of the Company. For subsidiaries acquired through business combinationunder different control, the financial statements shall be adjusted on the basis of the fair value of identifiablenet assets at the date of purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offsetat 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 bythe Company for the current period are separately presented as minority shareholders' equity and minorityshareholders' 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 periodare shown as "minority shareholders' profits and losses" under the net profit item in the consolidated incomestatement. Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share inthe shareholders' equity of the subsidiary at the beginning of the period, and still decrease by a number ofshareholders' 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 equityminus the difference between the shares of the net assets of the original subsidiary that shall be continuouslycalculated from the purchase date according to the original shareholding proportion shall be included in theinvestment income of the current period of loss of control. Other comprehensive income related to the equityinvestment of the original subsidiary, in the event of loss of control, the accounting treatment is performedon the same basis as the direct disposal of the relevant assets or liabilities by the Purchased (i.e. convertedto current investment income, except for changes resulting from the re-measurement of the net liabilities ornet assets of the Defined Benefit Plan in the original subsidiary). Thereafter, the residual equity shall besubsequently measured in accordance with the relevant provisions of Accounting Standards for BusinessEnterprises No.2-Long-term Equity Investment or Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, as detailed in Note Ⅲ, 13-Long-term EquityInvestment or Note Ⅲ, 9-Financial Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses controlthrough multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equityinvestment in subsidiaries until it loses control belong to a package deal or not. The terms, conditions andeconomic impact of the transactions for the disposal of equity investments in subsidiaries are in accordancewith one or more of the following circumstances and generally indicate that multiple transactions should beaccounted for as a package deal: ① These transactions were entered into simultaneously or taking intoaccount each other's influence; ② Only when these transactions are taken together can a complete businessresult be achieved; ③ The occurrence of one transaction depends on the occurrence of at least one othertransaction; ④ It is not economical to consider a transaction alone, but it is economical to consider it inconjunction with other transactions. For transactions that are not part of the package deal, each transactionshall be accounted for in accordance with the principles applicable to the "partial disposal of long-term equityinvestments in subsidiaries without loss of control" (as detailed in 13 of Note Ⅲ) and the "loss of controlover existing subsidiaries as a result of the disposal of part of the equity investments or other reasons" (asdetailed in the preceding paragraph), as appropriate. If the transactions involving the disposal of equityinvestments in subsidiaries until the loss of control belong to a package deal, the transactions shall beaccounted for as a transaction involving the disposal of subsidiaries and the loss of control; However, thedifference between each disposal price and the share of the subsidiary's net assets corresponding to thedisposal investment prior to the loss of control is recognized in the consolidated financial statements as otherconsolidated gains and transferred to the profit or loss for the current period of loss of control in the eventof loss of control.
6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. TheCompany divides the joint venture arrangement into joint operation and joint venture in accordance with therights and obligations it enjoys in the joint venture arrangement. A joint operation is a joint arrangementwhereby the parties that have joint control of the arrangement have rights to the assets, and obligations forthe liabilities, relating to the arrangement. A joint venture is a type of joint arrangement whereby the partiesthat 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 betreated in accordance with the accounting policy described in Note Ⅲ, 13 "Long-term Equity InvestmentAccounted by the Equity Method".The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by theCompany separately, and recognizes the assets and liabilities jointly held and assumed by the Companyaccording to the shares of the Company; recognizes the revenue generated from the sale of the share of jointoperating output enjoyed by the Company; recognizes revenue generated from the sale of output from jointoperations on the basis of the Company's share; confirms the expenses incurred by the Company individuallyand 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, thesame below), or purchases assets from the joint venture, the Company recognizes only the portion of theprofits and losses attributable to the other participants in the joint venture that arises from the transactionprior to the sale of such assets to a third party. Where such assets are impaired in accordance with theprovisions of Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Company shallfully 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 lossesaccording to the shares it assumes.
7. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand, deposits that can be readily withdrawnon demand. Cash equivalents are investments held by the Company with a short term (usually maturingwithin three months from the date of purchase), high liquidity, readily convertible to known amounts of cashand which are subject to an insignificant risk of changes in value.
8. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation, the foreign currency transactions occurring in the Company shall beconverted into the bookkeeping functional currency amount at the spot exchange rate on the trading day, butthe foreign currency exchange business or transactions involving foreign currency exchange occurring in theCompany 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 itemOn the balance sheet date, the foreign currency monetary items are converted at the spot exchange rateon the balance sheet date, and the exchange difference arising therefrom shall be: ① The exchange differencearising from the special foreign currency borrowings related to the acquisition and construction of assetseligible for capitalization shall be handled in accordance with the principle of capitalization of borrowingcosts; ② The exchange difference of the hedging instruments used for effective hedging of the net investmentin overseas operations (the difference is included in other comprehensive income, and is not recognized ascurrent profit or loss until the net investment is disposed of); ③ Except for the amortized cost, the exchangedifferences arising from the changes in the book balance of the available-for-sale monetary items in foreigncurrencies shall be included in the other comprehensive income, and shall be included in the profits andlosses of the current period.Where the preparation of the consolidated financial statements involves overseas operations, if thereare foreign currency monetary items constituting net investment in overseas operations, the exchangedifferences arising from exchange rate changes shall be included in other comprehensive income; Whendisposing 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 thebookkeeping amount in functional currency translated at the spot exchange rate on the transaction date. Fornon-monetary items in foreign currencies measured at fair value, the spot exchange rate at the date of fairvalue determination shall be adopted for conversion. The difference between the converted amount infunctional 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 periodor 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 thereare foreign currency monetary items constituting net investment in overseas operations, the exchangedifferences 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 andlosses shall be transferred to the current disposal period.The foreign currency financial statements of overseas operations shall be converted into RMBstatements in the following ways: the assets and liabilities in the balance sheet shall be converted at the spotexchange 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 itemsin the profit statement shall be converted at the average exchange rate of the current period on the date oftransaction. The undistributed profit at the beginning of the period shall be the undistributed profit at the endof 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 theconverted asset items and the total amount of the liability items and shareholders' equity items shall berecognized 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 foreigncurrency statements related to the overseas operations as shown below in the shareholders' equity items inthe balance sheet shall be transferred to the profits and losses of the disposal period in whole or in proportionto the disposal of the overseas operations.Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at theaverage exchange rate of the current period on the date of occurrence of the cash flows. The effect ofexchange rate changes on cash shall be presented separately in the statement of cash flows as an reconcilingitem.Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translatedfrom the prior-period financial statements.
When disposing of all the owner's equity of the Company's overseas operations or losing the controlover overseas operations due to the disposal of part of the equity investment or for other reasons, if thefollowing items of shareholders' equity in the balance sheet are shown below, the balance in translation ofthe foreign currency statement attributable to the owner's equity of the parent company related to the overseasoperation 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 ofthe equity investment or for other reasons, but the control over overseas business operations is not lost, thebalance in the translation of the foreign currency statements related to the disposal of part of overseasbusiness operations shall be attributed to minority shareholders' interests and shall not be transferred to theprofits and losses of the current period. When disposing of part of the equity of an overseas operation as anassociated enterprise or a joint venture, the balance of the translation of the foreign currency statementsrelated to the overseas operation shall be transferred into the profits and losses of the current disposal periodin the proportion of the overseas operation disposed of.
9. Financial instruments
Financial instruments are the contracts that form the financial assets of one entity, and at the same timeform 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 flowcharacteristics of financial assets, the Company divides financial assets into: Financial assets measured atamortized 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 andlosses.
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 directlyincluded in current profits and losses. For other types of financial assets, relevant transaction costs areincluded in the initial recognition amount. Accounts receivable or notes receivable arising from the sale ofproducts or the provision of labor services that do not contain or take into account significant financingcomponents shall be initially recognized by the Company in accordance with the amount of considerationthat the Company is expected to be entitled to receive.
① Financial assets measured at amortized cost
The Group measures financial assets at amortised cost if both of the following conditions are met : thefinancial asset is held within a business model with the objective to hold financial assets in order to collectcontractual cash flows; the contractual terms of the financial asset give rise on specified dates to cash flowsthat are solely payments of principal and interest on the principal amount outstanding, that is, the cash flowgenerated on a specific date is only the payment of principal and interest based on the unpaid principalamount. For such financial assets, the Company adopts the effective interest rate method and carries outsubsequent measurement according to amortized cost. The profits or losses arising from amortization orimpairment are included into the current profits and losses.
② 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 thefollowing conditions are met: the financial asset is held within a business model with the objective of bothholding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise onspecified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding. Interest income of such financial assets is recognised based on effective interest method. TheCompany measures these financial assets at fair value and their changes are included in other comprehensiveincome, but impairment loss or gain, exchange gain or loss and interest income calculated according to theeffective interest rate method are included into the current profit and loss.
In addition, the Company designates some non tradable equity instrument investments as financialassets measured at fair value with changes included in other comprehensive income. The Company shallrecord the relevant dividend income of such financial assets into the current profits and losses, and the changeof fair value into other comprehensive income. When the financial asset is derecognized, the accumulatedgains or losses previously included in other comprehensive income will be transferred from othercomprehensive income to retained income and will not be included in current profits and losses.
③ Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assetsmeasured at fair value with changes included in other comprehensive income into financial assets measuredat fair value with changes included in current profits and losses. In addition, during initial recognition, inorder 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 suchfinancial assets, the Company adopts fair value for subsequent measurement, and the changes in fair valueare 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 atfair value and whose changes are included in current profits and losses and other financial liabilities. For thefinancial liabilities measured at fair value with the changes included into the current profits and losses, therelevant transaction costs are directly included into the current profits and losses, and the relevant transactioncosts of other financial liabilities are included in the initial recognition amount.
① Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value with changes included in current profits and losses, whichinclude transactional financial liabilities (including derivatives belonging to financial liabilities) andfinancial liabilities designated to be measured at fair value with changes included in current profits and lossesat initial recognition.
Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequentlymeasured according to their fair values. Except for those related to hedge accounting, changes in fair valuesare included in current profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits andlosses. Changes in the fair value of this liability caused by changes in the Company's own credit risk areincluded in other comprehensive income. When the liability is derecognized, the accumulated change in fairvalue caused by changes in its own credit risk included in other comprehensive income is transferred toretained earnings. Changes in fair value are accounted into current profits and losses. If the above-mentionedtreatment of the impact of changes in the credit risk of these financial liabilities will cause or expandaccounting mismatch in profits and losses, the Company will include all profits or losses of the financialliabilities (including the impact amount of changes in the credit risk of the enterprise itself) into the currentprofits and losses.
② Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financialassets that do not meet the conditions for termination of recognition or continue to be involved in thetransferred financial assets, other financial liabilities are classified as financial liabilities measured atamortized cost and subsequently measured at amortized cost. Gains or losses arising from termination ofrecognition or amortization are included in current profits and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ① The terminationof the contractual right to receive cash flow from the financial asset. ② The financial asset has beentransferred, and almost all risks and rewards related to the ownership of the financial asset have been
transferred to the transferee. ③ The financial asset has been transferred. Although the enterprise has neithertransferred nor retained almost all risks and rewards in the ownership of the financial asset, it has given upits control over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of thefinancial assets, and does not give up the control over the financial assets, the relevant financial assets shallbe recognized according to the extent of continuous involvement in the transferred financial assets, and therelevant liabilities shall be recognized accordingly. The degree of continuous involvement in the transferredfinancial assets refers to the risk level faced by the enterprise due to the change in the value of the financialassets.If the overall transfer of financial assets meets the conditions for termination of recognition, thedifference between the book value of the transferred financial assets and the sum of the considerationreceived due to the transfer and the accumulated amount of changes in fair value originally included in othercomprehensive 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 bookvalue of the transferred financial assets shall be apportioned according to its relative fair value between thederecognized part and the non derecognized part, and the difference between the sum of the considerationreceived due to the transfer and the accumulated change in fair value originally included in othercomprehensive income that shall be apportioned to the derecognized part and the allocated aforesaid bookamount shall be included into the current profits and losses.
For financial assets sold by the Company with recourse, or for endorsement and transfer of heldfinancial assets, it is necessary to determine whether almost all risks and rewards in the ownership of thefinancial assets have been transferred. If almost all risks and rewards in the ownership of the financial assethave been transferred to the transferee, the recognition of the financial asset shall be terminated. If almostall risks and rewards on the ownership of a financial asset are retained, the recognition of the financial assetshall not be terminated. If almost all risks and rewards related to the ownership of financial assets have notbeen transferred or retained, it shall continue to judge whether the enterprise retains control over the assetsand 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 Companyterminates the recognition of the financial liability (or part thereof). The Company (the borrower) and thelender sign an agreement to replace the original financial liabilities by assuming new financial liabilities. Ifthe contract terms of the new financial liabilities and the original financial liabilities are substantiallydifferent, the original financial liabilities shall be derecognized and a new financial liability shall berecognized 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 newfinancial liability shall be recognized in accordance with the modified terms.If financial liabilities (or part thereof) are derecognized, the Company shall include the differencebetween its book value and the consideration paid (including transferred non-cash assets or liabilitiesassumed) 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 financialliabilities, and such legal right is currently enforceable, and the Company plans to settle the financial assetson a net basis or realize the financial assets and settle the financial liabilities at the same time, the financialassets 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 offsetagainst 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 transfera liability in an orderly transaction on the measurement date. Where there is an active market for financialinstruments, the Company adopts quotations in the active market to determine their fair values. Quoted pricein active market refers to the price easily obtained from exchanges, brokers, industry associations, pricingservice agencies, etc. on a regular basis, and represents the price of market transactions actually occurred infair trading. If there is no active market for financial instruments, the Company uses evaluation techniquesto determine their fair values. Evaluation techniques include reference to prices used in recent markettransactions by parties familiar with the situation and willing to trade, reference to current fair values of otherfinancial 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 circumstancesand are supported by sufficient available data and other information, selects input values that are consistentwith the characteristics of assets or liabilities considered by market participants in transactions related toassets or liabilities, and gives priority to the use of relevant observable input values as much as possible. Ifthe relevant observable input value cannot be obtained or it is not impracticable to obtain it, the non-inputvalue shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity inassets after deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation ofequity instruments by the Company are treated as changes in equity, and transaction costs related to equitytransactions are deducted from equity. The Company does not recognize changes in the fair value of equityinstruments.
Dividends (including "interest" generated by instruments classified as equity instruments) distributedby the Company's equity instruments during their existence shall be treated as profit distribution.
10. Impairment of financial assets
The financial assets of the Company that need to confirm the impairment loss are financial assetsmeasured at amortized cost and debt instrument investment measured at fair value with changes included inother comprehensive income, mainly including notes receivable, accounts receivable, other receivables, debtinvestment, other debt investment, long-term receivables, etc. In addition, for some financial guaranteecontracts, impairment reserves and credit impairment losses are also accrued in accordance with theaccounting 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 recognizescredit impairment losses for the above items according to the applicable expected credit loss measurementmethod (general method or simplified method).
Credit loss refers to the difference between all contractual cash flows receivable according to thecontract and all cash flows expected to be collected by the Company discounted according to the originalactual interest rate, i.e. the present value of all cash shortages. Among them, for the financial assets that havebeen purchased or incurred credit impairment, the Company discounts them according to the actual interestrate adjusted by credit.
The general method of measuring expected credit loss refers to the Company's assessment of whetherthe credit risk of financial assets has increased significantly since the initial recognition on each balancesheet date. If the credit risk has increased significantly since the initial recognition, the Company willmeasure the loss reserve by an amount equivalent to the expected credit loss during the entire period. If thecredit risk has not increased significantly since the initial recognition, the Company will measure the lossreserve according to the amount equivalent to the expected credit loss in the next 12 months. In assessingthe 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 lossreserve based on the expected credit loss amount within the next 12 months or the entire duration accordingto whether the credit risk has increased significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognition
If the default probability of a certain financial asset in the expected duration determined at the balancesheet date is significantly higher than the default probability in the expected duration determined at the timeof initial recognition, it indicates that the credit risk of the financial asset is significantly increased. Exceptfor 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 increasedsignificantly since the initial recognition.Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk ofthe financial instrument has increased significantly, unless there is conclusive evidence that the credit riskof 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 increasedsignificantly
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 technologicalenvironment of the debtor;3） Whether there is any significant change in the value of the collateral or the quality of the guaranteeor credit enhancement provided by the third party, which are expected to reduce the economic motivation ofthe 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 ofthe debtor;5） Whether there is any significant change in the Company's credit management methods for financialinstruments, 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 theinitial recognition. If the default risk of a financial instrument is low, the borrower's ability to perform itscontractual cash flow obligations in a short period of time is strong, and even if there are adverse changes inthe economic situation and operating environment for a long period of time, it may not necessarily reducethe borrower's ability to perform its contractual cash obligations, then the financial instrument is consideredto 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 offinancial 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 orthe debtor;
6） Purchase or generate a financial asset at a substantial discount, which reflects the fact that creditlosses have occurred.
Credit impairment of financial assets may be caused by the combined action of multiple events, butmay 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 litigationor arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repaymentobligation.
In addition to the financial assets with individual credit risk assessment, the Company divides thefinancial assets into different groups based on the common risk characteristics. The common credit riskcharacteristics adopted by the Company include: Credit risk shall be assessed on the basis of the agingportfolio, the receivables portfolio between the final controlling party and its subordinate units, the publicmaintenance fund and house selling fund portfolio deposited in the housing provident fund managementcenter, the deposit/margin portfolio, and the petty cash ledger portfolio formed by the employee loan of theunit.
(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, thedifference is recognized as impairment loss. If it is less than the carrying amount of the current impairmentreserve, the difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
①Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amountequivalent to the entire duration. Based on the credit risk characteristics of bills receivable, they are dividedinto 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. |
②Accounts receivable and other receivables
For receivables that do not contain significant financing components, the Company measures the lossreserve according to the expected credit loss amount equivalent to the entire duration.
For receivables that contain significant financing components, the Company measures the loss reservebased on whether the credit risk has increased significantly since the initial recognition, using the amount ofexpected 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 initialrecognition, 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 aredivided into different portfolios based on their credit risk characteristics:
| Item | Basis for determining portfolio |
| Portfolio 1 | Aging portfolio |
| Portfolio 2 | A portfolio of receivables between the ultimate controller and its subordinate units |
| Portfolio 3 | The portfolio of public maintenance funds and house sales funds deposited in the housing provident fund management center |
| Portfolio 4 | Deposit/margin portfolio |
| Portfolio 5 | The portfolio of reserve fund ledger formed by the Company's staff loan |
The accrual method of bad debt reserves for different portfolios:
| Item | Accrual method |
| Aging portfolio | According to the accrual proportion corresponding to the aging period |
| Portfolio of receivables between the ultimate controlling party and its subordinate units | Referring to the historical credit loss experience, combined with the current situation and the forecast of future economic conditions, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate within the next 12 months or the entire duration, and the expected credit loss rate of the portfolio is zero. |
| The portfolio of public maintenance funds and house sales funds deposited into the MPF Management Center | |
| Deposit/margin portfolio | |
| The portfolio of reserve fund ledger formed by the Company's staff loan. |
a. In portfolio, the portfolio method of withdrawing bad debt reserves by aging analysis
| Aging | Expected loss rate of notes receivable (%) | Expected loss rate of accounts receivable (%) | Expected loss rate of other receivables (%) |
| Within 1 year (including 1 year, the same below) | |||
| Among them: Within the credit period (within 3 months) | 0 | 0 | 0 |
| Credit period~1 year | 2 | 2 | 2 |
| 1-2 years | 5 | 5 | 5 |
| 2-3years | 20 | 20 | 20 |
| 3-4years | 50 | 50 | 50 |
| 4-5years | 80 | 80 | 80 |
| More than 5 years | 100 | 100 | 100 |
b. In the portfolio, the description of the accrual method for accrual of bad debt reserves by othermethods is given.
| Aging | Expected loss rate of notes receivable (%) | Expected loss rate of accounts receivable (%) | Expected loss rate of other receivables (%) |
| Accounts receivable between the final controlling party and its subordinate | 0 | 0 | 0 |
| Public maintenance fund and house sale fund deposited into MPF Management Center | 0 | 0 | 0 |
| Deposit/margin | 0 | 0 | 0 |
| The reserve fund ledger formed by the Company's staff loan. | 0 | 0 | 0 |
11. Inventory
(1) Classification of inventory
Inventories mainly include raw materials, work in progress, finished goods, in transit materialsinventory goods, reserve tanker storage commissioned processing, and manufacturing consignment, etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs, processing costs andother expenditures. The actual cost of inventories upon delivery is calculated using the weighted averagemethod.
(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 estimatedcost 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 thepurpose 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. Whenthe net realizable value is lower than the cost, the provision for inventory devaluation shall be accrued. Theprovision for inventory devaluation shall be accrued based on the difference between the cost of a singleinventory item and its net realizable value. The provision for inventory devaluation of a large number ofinventories with low unit prices shall be based on the type of inventory; for inventories related to the productrange produced and sold in same region, having the same or similar end use or purpose, and difficult to beseparated from other items for measurement, their provision for inventory devaluation can be combined andaccrued.
After the provision for inventory devaluation is accrued, if the factors cause the previous written-downinventory value have disappeared, and the situation results in the fact that the net realizable value of theinventories higher than the book value, the amount of the provision for inventory devaluation that has beenaccrued shall be reversed and included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are received;packaging materials are amortized by one-off amortization method when they are received.
12. Held-for-sale assets and disposal group
A non-current asset or disposal group is classified as held for sale when its carrying amount will berecovered principally through a sale transaction rather than through continuous use. The following conditionsneed to be simultaneously met to be classified as held for sale: a non-current asset or to-be-disposed portfoliocan 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, aDisposal Portfolio refers to a group of assets that will be disposed of as a whole through sale or otherapproaches in a transaction, and the liabilities directly associated with these assets transferred along with theassets in transaction. If the portfolio of assets or group of portfolios of assets is allocated goodwill acquiredin business merger in accordance with Accounting Standards for Business Enterprises No. 8 - AssetImpairment, 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 beendesignated as held-for-sale category is higher than the net amount of fair value less sales expenses when thenon-current asset or to-be-disposed portfolio is initially measured or measured on the balance sheet date, thebook value shall be to the net amount of fair value minus sales expenses, and the written-down amount shallbe recognized as asset impairment loss and included in current period profit or loss. The provision forimpairment loss of the held-for-sale asset shall be accrued. For a Disposal Portfolio, the confirmedimpairment loss shall deduct the book value of the goodwill in the Disposal Portfolio, then deduct the bookvalue of the non-current assets determined by the measurement on a pro-rata basis in accordance with theapplicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-current assets, DisposalPortfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). In theevent of an increase of the book value of the held-for-sale Disposal Portfolio minus sales expenses on thesubsequent the balance sheet date, the amount previously written down shall be recovered and be reversedwithin the mount of the asset impairment loss recognized in the non-current assets measured by themeasurement “Guide for Held-For-Sale” after being classified as held for sale asset, the reversal amountshall be included in the current period profit or loss, and the book value of all non-current assets (except forgoodwill) determined by the measurement on a pro-rata basis in accordance with the applicable “Guide forHeld-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill that has been deductedand the impairment loss of the assets recognized before the classification of the held-for-sale non-currentassets 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 noaccrual 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-Salecategory, non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category bythe Company or the non-current asset will be removed from the Held-For-Sale Disposal Portfolio, and bemeasured based on one of the following two values, whichever is lower: (1) The book value before beingclassified as held-for-sale category adjusted based on the depreciation, amortization or impairment thatshould have be confirmed if it is not classified as held-for-sale category; (2) recoverable amount.
13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that theCompany has control, joint control or significant influence on the invested entity. The long-term equityinvestment of the Company that does not have control, joint control or significant impact on the investeeshall be accounted as a financial asset measured at fair value with its changes included into the current profitsand losses. Among them, if it is non-transactional, the Company may choose to designate it as a financialasset measured at fair value and its changes are included in the accounting of other comprehensive incomeat the time of initial recognition. For details of its accounting policies, please refer to Note Ⅲ, 9 “FinancialInstruments".Joint control refers to the control that the Company shares with other party/parties for an arrangementin accordance with relevant agreements, and relevant activities of the arrangement can only be decided basedon the consensus of all parties sharing the control rights before making a decision. Significant Influencerefers to power of the Company to participate in the decision-making of the financial and operating policiesof the investee, but the Company cannot control or jointly control the development of these policies withother 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 thecombination 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 initialinvestment cost of the long-term equity investment and the cash paid, the non-cash assets transferred, andthe book value of the debts assumed; if the capital reserve is insufficient for offsetting, the retained earningsshall be adjusted. Where the equity securities are issued as merger consideration, the apportioned share ofthe book value in the final controller's consolidated financial statements on the combination date inaccordance with the shareholders' equity shall be the initial investment cost of the long-term equityinvestment, and the total par value of the issued shares is taken as the share capital. The capital reserve shallbe adjusted subject to the difference between the initial investment cost of the long-term equity investmentand the total par value of the shares issued; if the capital reserve is insufficient for offsetting, the retainedearnings shall be adjusted. Where the equity of combined parties under the same control is obtained throughmultiple transactions and a business combination under the same control is formed finally, it shall be treateddifferentially based on whether it is a “package deal”: if it belongs to a “package deal”, all transactions willbe treated as a transaction that obtains control. If it is not a “package deal”, the apportioned share of the bookvalue in the final controller's consolidated financial statements on the combination date in accordance withthe 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 equityinvestment and the sum of the book value of long-term equity investment before combination date and thebook value of the new consideration for the new share on the combination date. If the capital reserve isinsufficient for offsetting, the retained earnings shall be adjusted. The equity investments that are held priorto the combination date and are recognized with equity recognized or as available-for-sale financial asset asother 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 samecontrol, the initial investment cost of the long-term equity investment shall be based on the combination coston the purchase date. The combination cost includes the assets paid by purchaser, the liabilities incurred orassumed, and the sum of the fair value of issued equity securities. Where the equity of combined parties notunder the same control is obtained through multiple transactions and a business combination under the samecontrol is formed finally, it shall be treated differentially based on whether it is a “package deal”: if it belongsto a “package deal”, all transactions will be treated as a transaction that obtains control. If it is not a “packagedeal”, the initial investment cost of the long-term equity investment calculated by the cost method shall becalculated based on the sum of the book value of the equity investment in the original holder and the newinvestment cost. The original share holding that measured using equity method, the relevant othercomprehensive income does temporarily not conduct accounting treatment.Intermediary expenses such as for auditing, legal services, assessment and other related expensesincurred by a combining party or a purchaser for business combination shall be recognized in current periodprofit 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 acquisitionof long-term equity investment: the purchase price in cash actually paid by the Company; the fair value ofthe 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 expensesdirectly related to the acquisition of long-term equity investments shall also be included in the cost ofinvestment. The cost of long-term equity investment for the additional investment that can exert significantinfluence on investee or implement joint control but does not constitute control shall be the sum of the fairvalue of the originally held equity investment recognized in accordance with the Accounting Standards forBusiness Enterprises No.. 22 – Recognition and Measurement of Financial Instruments and the cost for newinvestment.
(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 theinvested entity. In addition, the company's financial statements use the Cost Method to account for long-termequity investments, which can control the long-term equity investment of the investee.
a. Long-term equity investment based on Cost MethodWhen 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. Exceptfor the actual payment at the time of obtaining investment or the cash dividends or profits included in theconsideration but not yet issued, the current investment income shall be recognized according to the cashdividends or profits declared by the investee.b. Long-term equity investment accounted for by Equity MethodWhen accounting with Equity Method, if the initial investment cost of a long-term equity investment isgreater than the fair value share of the identifiable net assets of the investee when investing, and the initialinvestment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is lessthan the fair value share of the identifiable net assets of the investee when investing, the difference shall beincluded in the current profit and loss, and the cost of the long-term equity investment shall be adjustedWhen accounting with Equity Method, the investment income and other comprehensive income arerecognized separately according to the shares of the net profit or loss and other comprehensive income thatshould be enjoyed or shared, and the book value of the long-term equity investment should be adjusted atthe same time. The book value of long-term equity investment is reduced accordingly by calculating theshare that should be enjoyed according to the profit or cash dividend declared by the investee. The bookvalue of long-term equity investment shall be adjusted and included in the capital reserve for other changesin the owner's rights and interests of the invested entity other than the net profit and loss, other comprehensiveincome and profit distribution. When confirming the share of the net profit and loss of the investee, the netprofit of the investee shall be adjusted and confirmed on the basis of the fair value of the identifiable assetsof the investee at the time of investment. If the accounting policies and periods adopted by the invested entityare inconsistent with the Company, the financial statements of the invested entity shall be adjusted inaccordance with the accounting policies and periods of the Company, and the investment income and othercomprehensive income shall be confirmed accordingly. For the transactions between the Company and theassociates and joint ventures, the assets invested or sold do not constitute a business, and the unrealized gainsand losses from internal transactions are offset against the portion of the Company that is attributable to theproportion of the shares, on this basis. investment profit and loss should be confirmed. However, theunrealized internal transaction losses incurred by the Company and the investee are not included in theimpairment losses of the transferred assets. Where the assets invested by the Company into a joint ventureor 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-termequity investment, and the difference between the initial investment cost and the book value of the investedbusiness is fully recognized in the current profits and losses. If the assets sold by the Company to a jointventure or an associate that constitute a business, the difference between the consideration value obtainedand 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 theinvestee are reduced to zero. In addition, if the Company has an obligation to bear additional losses to theinvestee, the estimated liabilities shall be recognized according to the estimated obligations and included inthe current investment losses. If the investee achieves net profit in the following period, the Company shallresume recognizing the share of income after making up for the unrecognized share of loss.
For the long-term equity investment in the joint ventures and associates held by the Company for thefirst time before the implementation of the new accounting standards, if there is a debit balance of equityinvestments related to the investment, the current profits and losses shall be accounted for by the straight-line amortization of the original remaining period.
c. Acquisition of Minority Equity
In the preparation of the consolidated financial statements, if the difference between the long-termequity investment added by purchasing minority shares and the net assets share that should be continuouslycalculated by the subsidiary company from the purchase date (or the consolidation date) is calculatedaccording to the proportion of newly added shares, the retained earnings shall be adjusted; and if the capitalreserve is insufficient to offset, the retained earnings shall be adjusted.
d. Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially of disposes of the long-termequity investment of the subsidiary without losing control, the difference of the corresponding net assets inthe subsidiary between the disposal price and the disposal of the long-term equity investment is included inthe shareholders' equity. it shall be treated in accordance with the relevant accounting policies described in“Notes on the preparation of consolidated financial statements” in Note Ⅲ.5 .
For the disposal of long-term equity investment in other cases, the difference between the book valueof 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 afterdisposal is still accounted for by equity method, when disposing, the other comprehensive income whichwere originally included in shareholder's rights and interests shall be accounted for on the same basis as theassets or liabilities directly disposed of by the investee. The owner's equity recognized as a result of changesin 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 lossFor the long-term equity investment accounted by Cost Method, the remaining equity is still accountedby Cost Method after disposal, other comprehensive income that recognized by equity method accountingor financial instrument recognition and measurement criteria accounting before obtaining control over theinvestee shall be accounted for on the same basis as the assets or liabilities directly disposed of by theinvestee, and shall be settled to the current profit and loss in proportion. Changes of the net assets of investeein the owner's equity other than net profit or loss, other comprehensive income and profit distribution 's thatrecognized 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 jointcontrol or exert significant influence on the investee, it shall be accounted for by equity method instead, andthe remaining equity shall be adjusted by accounting by equity method when it is deemed to be acquired. Ifthe 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 andmeasurement criteria, and the difference between the fair value and the book value on the date of loss ofcontrol. 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 recognitionand measurement criteria is used to directly dispose of the relevant assets with the investee, accountingtreatment based on the same basis as the investee directly disposes of related assets or liabilities when thecontrol of the investee is lost, Accounting is treated on the same basis as the liabilities. Changes in the owner'sequity other than net profit or loss, other comprehensive income and profit distribution of the investee's netassets recognized by the equity method are carried forward to the current profit or loss when the control ofthe 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 incomeand other owner's equity should be settled by proportion. If the remaining equity is accounted for usingfinancial instrument recognition and measurement standard, all of other comprehensive income and othershareholder’s equity should be settled.If the Company loses its joint control or significant influence on the investee due to the disposal of partof the equity investment, the remaining equity after disposal shall be accounted for according to the financialinstrument recognition and measurement criteria, and the difference between the fair value and the bookvalue on the date of loss of joint control or significant influence is recognised in the current profit or loss.The other comprehensive income recognized in the original equity investment by the equity method isaccounted for on the same basis as the investee's direct disposal of related assets or liabilities when the equitymethod 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 transferredto current investment income when terminating the equity method
The Company disposes of the equity investment in the subsidiaries step by step through multipletransactions 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 losingcontrol. The difference between the book value of each long-term equity investment corresponding to thedisposal price and the disposal of the equity before loss of control is first recognized as other comprehensiveincome, and when the control is lost, it is transferred to the current profit and loss of loss of control.14．Investment PropertyInvestment Property refers to property held for the purpose of earning rent or capital appreciation, orboth, including land use rights that have been leased, land use rights that are held and prepared for transferafter appreciation, and buildings that have been rented. Investment property is initially measured at cost. Theexpenses related to investment property, if the economic benefits related to this asset are highly probable toflow into the company and the cost canbe measured reliably, then the expense will account for as the cost ofinvestment 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 anddepreciation 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 toNote Ⅲ. 20 “Long-Term Asset Impairment”.
When the self-use property or inventory is converted into investment property or investment propertyis converted into self-use property, the book value before conversion is used as the recorded value afterconversion.
When the use of investment property is changed to self-use, the investment property is converted intofixed assets or intangible assets from the date of change. When the use of self-use property changes to earnrent or capital appreciation, the fixed assets or intangible assets are converted into investment property fromthe date of change. In the case of investment property measured by the cost model when the conversionoccurs, the book value before conversion is used as the entry value after conversion; if it is converted intoinvestment property measured by the fair value model, the fair value of the conversion date is used as theentry value after conversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expectedto obtain economic benefits from its disposal, the confirmation of the investment real estate shall beterminated. Disposal income from the sale, transfer, retirement or damage of investment properties is chargedto the current profit and loss after deducting its book value and related taxes and fees.
15. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services,renting or operating management, and having a service life of more than one fiscal year. Fixed assets arerecognized only when the economic benefits associated with them are likely to flow into the Company andtheir costs can be reliably measured. Fixed assets are initially measured at cost and taking into account theimpact 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 monthfollowing the scheduled availability. The depreciation period, estimated net residual value rate and annualdepreciation rate of each category of fixed assets are as follows:
| Category | Depreciation Method | Depreciation period (Year) | Net salvage rate(%) | Annual depreciation rate (%) |
| 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—19.20 |
The estimated net residual value refers to the expected state after the estimated useful life of the fixedassets has expired and is at the end of its useful life. The amount currently obtained by the Company fromthe 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 referto Note Ⅲ. 21 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownershipof an asset, and its ownership may or may not be transferred. If it is reasonable to determine the ownershipof the leased asset at the expiration of the lease term, the depreciation shall be calculated within the usefullife of the leased asset; If it is not reasonable to determine the ownership of the leased asset at the expirationof the lease term, depreciation shall be calculated within a relatively short period of the lease term and theservice life of the leased assets.
(5) Others
The subsequent expenses related to fixed assets, if the economic benefits related to the fixed assets arelikely 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 asabove 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 generateeconomic 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 orloss for the current period.
The Company reviews the useful life, estimated net residual value and depreciation method of fixedassets at least at the end of the year, and changes as an accounting estimate if changes occur.
16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure, includingvarious project expenditures incurred during the construction period, capitalized borrowing costs before theproject reaches the expected usable status, and other related expenses. Construction in progress is carriedforward to fixed assets when it is ready for its intended use.
For details of the impairment test method and impairment provision method for construction in progress,please refer to Note Ⅲ. 21 “Long-Term Asset Impairment”.
17. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillaryexpenses, and exchange differences arising from foreign currency borrowings. Borrowing costs directlyattributable to the acquisition, construction or production of assets eligible for capitalization, capitalizationis began when asset expenditures have occurred, borrowing costs have occurred, and the acquisition,construction or production activities necessary to bring the assets to the intended usable or saleable statehave begun. And capitalization is stopped when the assets under construction or production that meet thecapitalization conditions are ready for their intended use or saleable status. The remaining borrowing costsare 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 capitalizedafter subtracting the interest income from the unused borrowing funds deposited into the bank or theinvestment income obtained from the temporary investment. For the general borrowings, according to theaccumulated asset expenditures exceed the special borrowings. The capitalization amount is determined bymultiplying the weighted average of which accumulated asset expenditure exceeds the asset expenditure ofthe special borrowing portion by the capitalization rate of the general borrowings used. The capitalizationrate is determined based on the weighted average interest rate of general borrowings.
During the capitalization period, the exchange differences of foreign currency special borrowings areall capitalized; the exchange differences of foreign currency general borrowings are included in the currentprofit and loss.
Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventoriesthat require a substantial period of acquisition, construction or production activities to achieve the intendeduse or sale status.If the assets eligible for capitalization are interrupted abnormally during the acquisition, constructionor production process and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended until the acquisition, construction or production of the assets resumes.
18. Right-of-use assets (applicable from 1 January 2021)
Right-of-use assets of the Group mainly consist of buildings, power generation and transmissionequipment, plant, machinery and equipment, motor vehicles, furniture and fixtures and others.
At the commencement date of the lease, the Group recognises the right to use the leased assets duringthe lease term as a right-of-use asset, including: the initial measurement amount of the lease liability; theamount of lease payment paid on or before the beginning of the lease term, the amount of lease incentivealready 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 theleased asset to the site or restore the leased asset to the state agreed upon in the lease terms. The right-of-useassets are depreciated on a straight-line basis subsequently by the Group. If the Group is reasonably certainthat the ownership of the underlying asset will be transferred to the Group at the end of the lease term, theGroup 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 ofthe asset or the end of the lease term.
The Group remeasures the lease liability at the present value of the revised lease payments and adjuststhe carrying amount of the right-of-use assets accordingly, when the carrying amount of the right-of-useasset is reduced to zero, and there is a further reduction in the measurement of the lease liability, the Grouprecognises the remaining amount of the remeasurement in profit or loss for the current period.
19. Intangible assets
(1) Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlledby the Company.
Intangible assets are initially measured at cost. Expenditure related to intangible assets is included inthe cost of intangible assets if the relevant economic benefits are likely to flow to the Company and its costscan be measured reliably. However, the intangible assets acquired through business combination notinvolving enterprises under common control should be measured at fair value separately as intangible assetswhen 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 intangibleassets and fixed assets, respectively. In the case of purchased houses and buildings, the relevant price isdistributed between the land use rights and the buildings. If it is difficult to allocate them reasonably, all ofthem are treated as fixed assets.Since the intangible assets with limited useful life are available for use, the original value minus theestimated net residual value and the accumulated amount of impairment reserve shall be amortized by thestraight-line method during their expected service life. Intangible assets with uncertain service life shall notbe amortized.Among them, the useful life and amortization method of intellectual property are as follows:
| Item | Amortization period (year) | Amortization method |
| Trademark | 20 | Straight-line method |
At the end of the period, the useful life and amortization methods of intangible assets with limited usefullife are reviewed, and if any change occurs, it is treated as a change of accounting estimate. In addition, theuseful life of intangible assets with uncertain service life is also reviewed. If there is evidence that the periodfor which the intangible assets bring economic benefits to the enterprise is foreseeable, the useful life ofintangible assets is estimated and amortized according to the amortization policy of intangible assets withlimited useful life
(2) Research and development expenditure
The company's expenditure for internal research and development project is divided into research phaseexpenditure 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 asintangible assets, and expenditures in the development stage that fail to meet the following conditions areincluded 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 theproducts produced from the intangible assets having a market or the intangible assets having a market, andthe intangible assets will be used internally, which can prove its usefulness;
d. sufficient technical, financial resources and other resources for supporting the development of theintangible 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, allresearch 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.21 “Long-Term Asset Impairment”.
20．Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reportingperiod and subsequent periods with amortization period of more than one year. The company's long-termdeferred expenses mainly include lease of land use right and renovation costs of factory building. Long-termdeferred expenses are amortized on a straight-line basis over the estimated benefit period.
21. Long-term assets impairment
For fixed assets, construction in progress, intangible assets with limited useful life, investment propertymeasured by cost model, and non-current non-financial assets such as long-term equity investments insubsidiaries, joint ventures and associates, the Company determines whether there is any indication ofimpairment on the balance sheet date. If there is any indication of impairment, the recoverable amount isestimated and the impairment test is carried out. Goodwill, intangible assets with uncertain service life andintangible assets that not yet ready for use are tested for impairment annually, regardless of whether there isany indication of impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than itsbook 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 presentvalue of the estimated future cash flow of the asset. The fair value of assets is determined according to thesale agreement price in a fair transaction. If there is no sales agreement but there is an active market for theasset, the fair value is determined according to the buyer's bid for the asset; if there is neither sales agreementnor 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 tomake assets saleable. The present value of the estimated future cash flow of an asset is determined by theappropriate discount rate discounting and the estimated future cash flow generated by the asset during itscontinuous use and final disposal. The asset impairment provision is calculated and confirmed based onindividual assets. If it is difficult to estimate the recoverable amount of an individual asset, the recoverableamount of the asset is determined by the asset group which the asset belongs to. An asset group is the smallestportfolio of assets that can generate cash inflows independently.
The book value of the goodwill listed separately in the financial statements is amortized into assetgroups or portfolios that are expected to benefit from the synergies of business combinations whenimpairment tests are conducted. The test results show that the recoverable amount of the asset group orportfolio containing the assessed goodwill is lower than its book value, the corresponding impairment lossesshould 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 otherassets according to the proportion of the book value of assets other than goodwill in the asset group orportfolio.Once the above asset impairment loss is confirmed, it will not be reversed to the part where the valueis restored in the future period.
22. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration, Post-employment Benefits, Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages, bonuses, allowances and subsidies,employee welfare fees, medical insurance premiums, maternity insurance premiums, work injury insurancepremiums, housing fund, labor union funds, employee education funds, and non-monetary benefits. TheCompany recognizes the actual short-term employee's remuneration as a liability in the accounting period inwhich employees provide services to the Company and recognizes them in profit or loss or related assetcosts. Non-monetary benefits are measured at fair value.
Post-employment Benefits mainly include basic retirement security, unemployment insurance, andannuities. The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined BenefitPlan. If a Defined Contribution Plan is adopted, the corresponding amount of the deposit shall be includedin the relevant asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan isrecognized as a liability based on a fixed fee paid to an independent fund and is included in the current profitand loss or related asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulativebenefits unit method Specifically, the Company will convert the welfare obligation arising from the DefinedBenefit Plan into the final value of the departure time according to the formula determined by the expectedcumulative benefits unit method; then it is attributed to the employee's in-service period and is included inthe 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 unilaterallythe 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 dismissalbenefits, whichever is earlier, the Company will recognize the employee compensation liabilities arisingfrom the dismissal benefits, and included in the current profit and loss. However, if the dismissal benefitsare not expected to be fully paid within 12 months after the end of annual reporting period, they shall betreated in accordance with other long-term employee compensations.
The internal retirement plan for employees shall be treated in the same way as the above-mentioneddismissal benefits. The company will pay the internal retired staff the salary and the social insurance
premiums from the employee's lay-off to normal retirement, and will include in the current profit and loss(dismissal benefits) when the conditions of the estimated liabilities are met.If the other long-term employee benefits provided by the Company to the employees are in line withthe Defined Contribution Plan, they shall be accounted for Defined Contribution Plan, and otherwiseaccounted for the Defined Benefit Plan.
23. Lease liabilities (applicable from 1 January 2019)
At the commencement date of the lease period, the Group recognises the present value of outstandinglease payments as a lease liability, excluding short-term leases and leases of low-value assets. The Groupadopts the interest rate implicit in the lease as the discount rate to calculate the present value of the leasepayments. Where the interest rate implicit in the lease cannot be determined, the incremental borrowing rateof the lessee shall be used as the discount rate. The Group calculates the interest expense of the lease liabilityduring each period of the lease term in accordance with the constant periodic rate of interest and recognisesit in profit and loss for the current period, except otherwise stipulated in the cost of related assets. Thevariable lease payment that is not included in the measurement of lease liabilities is recognised in the profitand loss for the current period when it actually occurs, except that it is otherwise stipulated to be included inthe cost of relevant assets.
After a lease term commences, when there is a change in the amount of in-substance fixed leasepayments, a change in the amounts expected to be payable under a residual value guarantee, a change infuture lease payments resulting from a change in an index or a rate used to determine those payments, achange in assessment of an option to purchase the underlying asset, renew or terminate the lease, or changein the actual exercise of an option, the Group remeasures the carrying amount of the lease liability bydiscounting the revised lease payments
24. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognizedas contingent liabilities: (1) The obligation is the present obligation assumed by the Company; (2) Theperformance of this obligation is likely to result in the outflow of economic benefits; (3) The amount of theobligation can be reliably measured.
On the balance sheet date, taking into account factors such as risks, uncertainties and time value ofmoney related to contingencies, the estimated liabilities are measured in accordance with the best estimateof 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 becompensated by the third party, the compensation amount will be separately recognized as an asset when itis basically determined to be received, and the confirmed compensation amount does not exceed the bookvalue of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occurmore than the expected economic benefit. If the contract to be executed becomes a loss contract, and theobligation arising from the loss contract satisfies the conditions for the recognition of the above-mentionedestimated 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 ofthe estimated liabilities are determined based on the direct expenses related to the reorganization, subject tothe recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to thepart of business sold, the obligation related to the reorganization is confirmed only when the companypromises to sell part of the business (that is, when the binding sale agreement is signed).
25. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liabilitydetermined based on an equity instrument in order to obtain services from employees or other parties. Share-based Payments include equity-settled share payment and cash-settled share payment.
a) Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fairvalue of the granting of employees' equity instruments at the grant date. If the fair value is vested in thecompletion of the waiting period of service or the fulfillment of the required performance conditions, duringthe waiting period, the amount of the fair value is calculated by the straight-line method into the relevantcosts or expenses based on the best estimate of the number of vesting equity instruments; Or If the vestingright is granted immediately after the grant, the calculation of the amount of the fair value is included in therelevant 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 onthe latest information on the changes in the number of employees with vesting rights and corrects the numberof equity instruments that are expected to be vested. The impact of the above estimates shall be included inthe 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 fairvalue of other parties' services can be reliably measured, the fair value of other services shall be measuredat the fair value on the date of acquisition; If the fair value of the other party's services cannot be measuredreliably, the fair value shall be measured at the fair value of the equity instrument at the date the service isacquired, and is included in the relevant cost or expense, which increases the shareholders' equity accordingly.
b) Cash-settled Share PaymentThe cash-settled share payment is measured at the fair value of the liabilities determined by theCompany based on shares or other equity instruments. If the vesting right is available immediately after thegrant, the relevant costs or expenses shall be included on the date of grant, and the liabilities shall beincreased accordingly; if vesting right is available after the service is completed within the waiting period ormet the required performance conditions, based on the best estimate of the vesting rights on each balancesheet date of the waiting period, according to the fair value of the liabilities assumed by the company, theservices obtained in the current period are included in the cost or expense, and the liabilities are increasedaccordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement datebefore the settlement of the relevant liabilities, and the changes shall be recorded in the profit and loss of thecurrent period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and terminationWhen the Company modifies the share-based payment plan, if the modification increases the fair valueof the equity instruments granted, the increase in the fair value of the equity instruments is recognizedaccordingly. The increase in the fair value of equity instruments refers to the difference between the fairvalue of the equity instruments before and after the modification. If the modification reduces the total fairvalue of the share-based payment or adopts other methods that are not conducive to the employee, the serviceobtained shall continue to be accounted for, as if the change has never occurred, unless the Company cancelssome or all of equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel thegranted equity instrument as an accelerated exercise, and the amount to be recognized in the remainingwaiting period will be immediately included in the current profit and loss, and the capital reserve will berecognized. If the employee or other party can choose to meet the non-vesting conditions but fails to meetthe 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 Shareholdersor Actual Controllers
In respect of the share-based payment transaction between the company and the shareholders or actualcontrollers of the company, If one of the settlement enterprise and the service receiving enterprise is in thecompany and the other is outside the company, it shall be accounted for in the consolidated financialstatements of the company according to the following provisions:
a.) If the settlement enterprise settles with its own equity instrument, the share-based paymenttransaction 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 thegrant date or the fair value of the liability to be assumed, and the capital reserve (other capital reserve) orliabilities shall be recognized.b.) If the serviced enterprise has no settlement obligation or grants its own employees the equityinstruments, the share payment transaction shall be treated as equity-settled share payment; if the servicedenterprise has settlement obligation and grants its employees other than its own equity instruments, the sharepayment transaction shall be treated as a cash-settled share payment.For the share based payment incurred between companies within the group, if the serviced enterpriseand settlement enterprise are not the same, then the payment should be recognized and measured in theirindividual financial statements, they should be accounted for using the above principles
26. Revenue
The company's operating income mainly includes income from selling goods, income from providingservices, royalty income, interest income, etc. When the company signs a contract, it evaluates the contract,identifies the individual performance obligations contained in the contract, and determines whether theindividual 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 berecognized respectively according to the transaction price apportioned to the performance obligations.
(1) Revenue recognition for fulfilling performance obligation at a certain time point
Generally, the company recognizes the revenue from the sales of goods based on the transaction priceapportioned to the single performance obligation when the customer obtains the control right of the relevantgoods on the basis of comprehensively considering the following factors: the company has the right toreceive payment in respect of the goods or services currently, that is, the customer has the obligation to payfor the goods currently; the company has transferred the legal ownership of the goods to the customer, thatis, the customer has the legal ownership of the goods; The Company has transferred the physical goods ofthe commodity to the Customer or the Customer has obtained the qualification of physical goods right of thecommodity. The consideration obtained by the Company in respect of the transfer of the commodity is likelyto be recovered; Other indications that the customer has taken control of the commodity.
The specific principles of the company's sales revenue recognition are as follows: when the commodityhave been delivered to the customer and signed by the customer for confirmation, or the ownership certificateof the commodity has been delivered to the customer, the sales revenue is recognized when the companyhas received the payment or obtained the evidence of payment.
(2) Revenue recognition for fulfilling performance obligation within a certain period of time
For the performance obligations performed in a certain period of time, such as the services provided,
the company adopts the output method or input method to determine the appropriate performance progress,and recognizes the revenue according to the performance progress in that period of time. On the balancesheet date, the company shall recognize the current income according to the total transaction price of thecontract multiplied by the progress of performance minus the accumulated recognized income. If one of thefollowing conditions is satisfied, it is regarded as the performance obligation performed during a certainperiod of time: the Customer obtains and consumes the economic benefits arising from the performance ofthe Company at the same time of the performance of the Company; Customers can control the goods underconstruction during the performance of the contract; The products produced by the Company during theperformance of the Contract are of irreplaceable use, and the Company shall be entitled to receive paymentfor 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 relevantgoods or services.The Company's rights to receive consideration for goods or services transferred to the Customer (andsuch rights depend on factors other than the time passage) are presented as contractual assets, which aresubject to impairment on the basis of expected credit losses. The company's right to collect considerationfrom customers unconditionally (only depending on the passage of time) is listed as receivables. Theobligation of the Company to transfer goods or services to customers for which consideration has beenreceived or receivable is presented as a contractual liability.
27. Contract cost
1. Contract performance cost
The cost incurred by the company for the performance of the contract, which does not fall within thescope of other accounting standards for business enterprises other than the income standard and meets thefollowing 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 incurredsolely 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 amortizationperiod has exceeded one normal operating cycle at the time of its initial recognition.
2.Contract acquisition cost
If the incremental cost incurred by the company to obtain the contract is expected to be recovered, it
shall be recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that willnot occur if the company does not obtain the contract.
3.Amortization of contract costs
The assets related to the contract cost mentioned above shall be amortized at the time of performanceof the obligation or according to the performance progress on the same basis as the income recognition ofthe commodity or service related to the asset and shall be recorded into the current profit and loss.
4.Impairment of contract cost
If the book value of the above assets related to the contract cost is higher than the difference betweenthe residual consideration expected to be obtained by the company due to the transfer of the goods related tothe assets and the estimated cost to be incurred for the transfer of the relevant goods, the excess part shall beset aside as an impairment provision and recognized as an impairment loss of the asset.
28. Government grants
Government grant refers to the company's acquisition of monetary and non-monetary assets from thegovernment free of charge, excluding the capital invested by the government as an investor and enjoying thecorresponding 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 oflong-term assets or for the formation of long-term assets in other ways as the government grant related toassets; the remaining government grant is defined as the government grant related to income. If the objectof grants is not specified in government documents, the grants shall be divided into income-relatedgovernment grants and assets-related government grants in the following ways: (1) If the governmentdocument clarifies the specific project for which the grant is targeted, the proportion of the expenditureamount of the assets to be formed and the amount of the expenditures included in the expenses in the budgetof the specific project are divided, and the proportion of grant division needs to be reviewed on each balancesheet day and changed if necessary. (2) In government documents, if the purpose is expressed only in generalterms and no specific project is specified, the grant shall be regarded as a government grant related to theincome. Where a government grant is a monetary asset, it shall be measured according to the amount receivedor receivable. If the government grants are non-monetary assets, they shall be measured at the fair value; ifthe fair value cannot be obtained reliably, they shall be measured at the nominal amount. Government grantsmeasured 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 isactually received. However, if there is conclusive evidence at the end of the period that the relevantconditions stipulated in the financial support policy can be met and the financial support funds are expectedto be received, it shall be measured according to the amount receivable. Government grants measured inaccordance 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 bereasonably calculated according to the relevant provisions of the formally issued financial fund managementmeasures, and there is no significant uncertainty in the amount expected; (2) According to the "Regulationson the Openness of Government Information" that the local financial department officially released and inaccordance with the provisions of the "Regulations on the Openness of Government Information," thefinancial support project and its financial fund management measures should be inclusive (any eligibleenterprise can apply for them), rather than being specifically tailored to specific companies; (3) The relevantgrant approval has clearly promised the payment period, and the allocation of the payment is guaranteed bythe corresponding budget, so it can be reasonably ensure that it can be received within the prescribed timelimit; (4) Other relevant conditions (if any) to be met in accordance with the specific circumstances of theCompany and the grants.
Government grants related to assets are recognized as deferred earnings and are divided into currentprofits and losses in a reasonable and systematic way during the service life of the assets concerned. Thegovernment grants related to revenue, which are used to compensate for the related cost or loss in thesubsequent period, shall be recognized as deferred income, and shall be recognized in profit or loss in theperiod in which the related costs or losses are recognized; if it is used to compensate the related costs orlosses 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 separatelyclassified for accounting treatment; if it is difficult to distinguish, the whole is classified as governmentgrants related to income.Government grants related to the daily activities of the Company shall be included in other income orcost deductions according to the nature of the economic business; government subsidies unrelated to dailyactivities shall be included in the non-operating revenues and expenses.
When the recognized government grants need to be returned, if there are relevant deferred earningsbalances, the book balance of related deferred earnings shall be deducted, and the excess part shall beincluded in the current profits and losses or the book value of assets shall be adjusted, otherwise, the bookvalue 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 beallocated to the loan bank discount funds and the finance will be directly allocated to the company discountfunds in two cases:
(1) If the finance department allocates the discount interest funds to the lending bank, and the lendingbank provides the loan to the Company at the policy preferential interest rate, the Company chooses toconduct accounting treatment according to the following methods: the loan amount actually received shallbe taken as the entry value of the loan, and the relevant borrowing costs shall be calculated in accordancewith 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 thecorresponding discount against the relevant borrowing costs.
29. 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 andprevious periods are measured by the expected amount of income tax payable (or returned) in accordancewith the provisions of the Tax Law. The amount of taxable income on which current income tax expensesare calculated is based on the corresponding adjustment of pre-tax accounting profits in the reporting periodin 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 thetemporary difference between the book value of items that are not recognized as assets and liabilities butwhich can be determined as their tax basis according to the tax law, are confirmed by the balance sheetliability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initialrecognition of an asset or liability arising from a transaction that is neither a business combination nor anaccounting profit or taxable income (or deductible loss), relevant deferred income tax liabilities shall not berecognized. In addition, for taxable temporary differences related to investments in subsidiaries, associatesand joint ventures, if the Company is able to control the turnaround time of temporary differences, and thetemporary difference is unlikely to be reversed in the foreseeable future, the related deferred income taxliabilities shall not be recognized. Except for the above exceptions, the Company recognizes all otherdeferred income tax liabilities arising from taxable temporary differences.
Taxable temporary differences which related to the initial recognition of an asset or liability arisingfrom a transaction that is neither a business combination nor an accounting profit or taxable income (ordeductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for taxabletemporary differences related to investments in subsidiaries, associates and joint ventures, if the temporarydifference is unlikely to be reversed in the foreseeable future, or the amount of taxable income used to offsetthe temporary difference is unlikely to be obtained in the future, the deferred income tax assets concernedshall not be recognized. Except for the above exceptions, the Company recognizes other deferred incometax assets that can offset temporary differences, subject to the amount of taxable income that is likely to beobtained to offset temporary differences.
For deductible losses and tax credits that can be carried forward in subsequent years, the correspondingdeferred income tax assets are recognized to the extent that it is probable that the future taxable income shallbe 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 relatedliabilities 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 valueof deferred income tax assets is written down if it is likely that sufficient taxable income will not be availableto offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficienttaxable 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 othertransactions and matters directly included in shareholder's rights and interests shall be recognized in othercomprehensive income or shareholder's rights and interests, and the book value of adjusted goodwill fromdeferred income tax resulting from the merger of enterprises, the other current income tax and deferredincome 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 acquireassets and pay off liabilities at the same time, the company's current income tax assets and current incometax 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 netbasis, and deferred income tax assets and deferred income tax liabilities are related to the income tax leviedby 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 taxpayerinvolved intends to settle the current income tax assets and liabilities on a net basis, or acquire assets andpay off liabilities simultaneously, the deferred the income tax assets and deferred income tax liabilities ofthe Company shall be presented on a net basis after offset.
30. Lease
Finance lease is a lease that essentially transfers all risks and rewards related to the ownership of assets.Its ownership may or may not be transferred eventually. Leases other than finance leases are operating leases.
(1) The Company records operating lease business as a lessee.
Rental expenses for operating leases shall be included in the related asset costs or current profits andlosses in the straight-line method during each period of the lease period. The initial direct costs shall beincluded in the current profits and losses. Contingent rentals shall be recognized in profits and losses whenincurred.
(2) The company records operating lease business as a lessor
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 capitalizedwhen occurring, and the profits and losses of the current period shall be recorded in stages on the same basisas the recognized rental income during the whole lease period; the smaller initial direct expenses shall berecorded in the profits and losses of the current period when occurring. Contingent rentals shall be includedin current profits and losses when actually occurring.
(3) The company records finance lease business as a lessee
At the beginning of the lease period, the lower of the fair value of the leased assets and the present valueof the minimum lease payment on the lease start date is regarded as the entry value of the leased assets, andthe lowest lease payment shall be regarded as the entry value of the long-term payables, and the differenceshall be regarded as the unrecognized financing cost. In addition, the initial direct costs attributable to thelease project shall also be included in the value of the leased assets when they occur during the leasenegotiation and the signing of the lease contract. The balance of the minimum lease payment after deductingthe unrecognized financing costs shall be presented as long-term liabilities and long-term liabilities duewithin one year, respectively.The unrecognized financing cost shall be calculated by the real interest rate method during the leaseperiod. Contingent rentals shall be included in current profits and losses when actually occurring.
(4) The company records finance lease business as a lessor
At the beginning of the lease period, the sum of the minimum lease receipt and the initial direct cost onthe lease start date is regarded as the entry value of the financial lease receivable, and the unsecured balanceshall be recorded. The difference between the sum of the minimum lease receivable, the initial direct costand the unsecured balance and the sum of its present value is recognized as the unrealized financing income.The balance of the receivable financial lease after deducting the unrealized financial income shall bepresented as long-term claims and long-term claims maturing within one year, respectively.
The unrealized financing income shall be calculated and confirmed by the real interest rate methodduring the lease period. Contingent rentals shall be recognized in current profits and losses when actuallyoccurring.
31. Other important accounting policies and accounting estimates
(1) Termination of business
Termination of operation refers to a component that meets one of the following conditions, can beseparately distinguished and has been disposed of or classified as held for sale by the Company: ① Thiscomponent represents an independent major business or a separate major business area. ② This componentis part of an associated plan to dispose of an independent major business or a separate major business area.
③ This component is a subsidiary company acquired specifically for resale.
For the accounting treatment methods for termination of operations, please refer to the relevant
descriptions in Note 3, 12 “Assets held for sale and disposal group".
(2) Hedge accounting
In order to avoid some risks, the Company hedges some financial instruments as hedging instruments.For the hedges meeting the specified conditions, the Company adopts the hedge accounting method fortreatment. 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 managementobjectives of the Company engaged in hedging. In addition, the Company will continuously evaluate theeffectiveness of hedging at the beginning and after the hedging.
(3)Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or lossesarising therefrom shall be included into the current profits and losses. If the hedging instrument hedges thenon-trading equity instrument investment (or its components) that is measured at fair value and whosechanges are included in other comprehensive income, the gains and losses generated by the hedginginstrument are included in other comprehensive income. The profit or loss of the hedged item due to thehedged risk exposure shall be included into the current profits and losses, and the book value of the hedgeditem shall be adjusted at the same time. If the hedged item is measured at fair value, the gain or loss of thehedged item due to the hedged risk does not need to adjust the book value of the hedged item, and the relevantgains 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 hasexpired or been sold, the contract has been terminated or exercised, or no longer meets the conditions for theapplication of hedge accounting, the application of hedge accounting shall be terminated.
32. Significant accounting judgments and estimates
In the process of applying accounting policies, due to the inherent uncertainty of business activities, theCompany needs to judge, estimate and assume the book value of statement items that cannot be accuratelymeasured. These judgments, estimates and assumptions are based on the Company's management's pasthistorical experience and other relevant factors. These judgments, estimates and assumptions will affect thereported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities at thebalance sheet date. However, the actual results caused by the uncertainty of these estimates may be differentfrom the current estimates of the Company's management, resulting in a significant adjustment to thecarrying amount of the assets or liabilities affected in the future.
The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on thebasis of going concern. If the change of accounting estimates only affects the current period of change, thenumber of impacts shall be recognized in the current period of change. If the change affects both the current
and future periods, the number of impacts will be confirmed in the current and future periods of the change.On the balance sheet date, the Company needs to judge, estimate and assume the amount of financialstatement items in the following important areas:
1. Impairment of financial assets
The Company uses the expected credit loss model to evaluate the impairment of financial instruments.The application of the expected credit loss model requires significant judgment and estimation, and allreasonable and basis information, including forward-looking information, shall be considered. In makingthese judgments and estimates, the Company deduces the expected changes in the debtor's credit risk basedon historical data and combined with economic policies, macroeconomic indicators, industry risks, externalmarket environment, technological environment, changes in customer conditions and other factors.
2. Inventory falling price reserves
According to the inventory accounting policy, the Company measures according to the lower of costand net realizable value. For the inventory whose cost is higher than net realizable value and which isobsolete and unsalable, the Company makes provision for inventory falling price. Impairment of inventoriesto net realizable value is based on the evaluation of the marketability of inventories and their net realizablevalue. The appraisal of impairment of inventories requires the management to make judgment and estimationon the basis of obtaining conclusive evidence and considering factors such as the purpose of holdinginventories and the influence of events after the balance sheet date. The difference between the actual resultand the original estimate will affect the book value of inventory and the accrual or reversal of inventorydepreciation reserve during the period when the estimate is changed.
3. Provision for impairment of long-term assets
On the balance sheet date, the Company judges whether there are signs of possible impairment for non-current assets other than financial assets. For intangible assets with uncertain service life, in addition to theannual impairment test, the impairment test is also carried out when there are signs of impairment. Othernon-current assets other than financial assets shall be tested for impairment when there are indications thattheir book amounts are not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the higherof the net amount of the fair value minus the disposal expenses and the present value of the estimated futurecash flow, it indicates that an impairment has occurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the salesagreement price or observable market price of similar assets in fair transactions, and deducting theincremental cost directly attributable to the disposal of such assets.
When estimating the present value of future cash flow, it is necessary to make a significant judgmenton the output, sales price, related operating costs and the discount rate used in the calculation of the present
value of the asset (or asset group). In estimating the recoverable amount, the Company will use all relevantinformation available, including forecasts of production, selling price and related operating costs based onreasonable and supportable assumptions.
The Company shall test whether goodwill is impaired at least every year. This requires an estimate ofthe present value of the future cash flows of the asset group or portfolio of asset groups to which goodwillhas been allocated. When predicting the present value of future cash flow, the Company needs to predict thecash flow generated by the future asset group or asset group portfolio, and at the same time, select theappropriate discount rate to determine the present value of future cash flow.
4. Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, theCompany will accrue depreciation and amortization on a straight-line basis during their service lives. TheCompany reviews the service life regularly to determine the amount of depreciation and amortizationexpenses to be included in each reporting period. The service life is determined by the Company based onthe past experience of similar assets and in portfolio with the expected technological updates. If there is asignificant change in previous estimates, the depreciation and amortization charges will be adjusted in thefuture.
5. Deferred income tax assets
To the extent that there is likely to be sufficient taxable profits to offset the losses, the Companyrecognizes deferred income tax assets for all unused tax losses. This requires the Company's management touse a large number of judgments to estimate the time and amount of future taxable profits, combined withtax planning strategies, to determine the amount of deferred income tax assets to be recognized.
6. Income tax
In the normal business activities of the Company, there are certain uncertainties in the final tax treatmentand calculation of some transactions. Whether some items can be paid before tax requires the approval ofthe tax authorities. If there is a difference between the final determination result of these tax matters and theamount initially estimated, the difference will have an impact on the current income tax and deferred incometax during the final determination period.
7. Accrued liabilities
According to the terms of the contract, existing knowledge and historical experience, the Companyestimates and makes corresponding provision for product quality assurance, estimated contract losses,liquidated damages for delayed delivery, etc. In the event that such contingencies have formed a currentobligation and the performance of the current obligations is likely to result in outflow of economic benefitsfrom the Company, the Company recognizes the contingencies as estimated liabilities based on the bestestimate of the expenditure required to perform the relevant current obligations. The recognition and
measurement of the estimated liabilities depend to a large extent on the judgment of the management. In theprocess of judgment, the Company needs to evaluate the risks, uncertainties, time value of money and otherfactors related to these contingencies.Among them, the Company will make an estimated liability for the after-sales quality maintenancecommitments provided to customers for the sale, maintenance and renovation of the goods sold. TheCompany's recent maintenance experience data have been taken into account when estimating liabilities, butthe recent maintenance experience may not reflect the future maintenance situation. Any increase or decreasein this provision may affect the profit and loss in the future years.
8. Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements.When estimating the fair value of an asset or liability, the Company adopts the available observable marketdata available. If the first level input value cannot be obtained, the Company will employ a qualified third-party appraiser to perform the appraisal. The Company works closely with qualified external appraisers todetermine the appropriate valuation techniques and inputs to the relevant modelsIV. Taxes
1. Main Taxes and Tax Rates
| Types | Tax Basis | Tax Rate |
| Value Added Tax | After deducting the allowable amount of input tax deducted in the current period, the difference between the sales of goods, taxable services and taxable services income calculated in accordance with the provisions of the Tax Law is the taxable value-added tax. | 1%、3%、5%、6%、9%、10%、13% |
| Urban Maintenance & Construction Tax | According to the actual value-added tax | 7%、5% |
| Extra charges of education funds | According to value added tax and consumption tax on the basis of actual payment | 3% |
| Local Extra Charges of Education Funds | According to value added tax and consumption tax on the basis of actual payment | 2% |
| Corporate Taxes | According to taxable income | 25%、20%、17%、15% |
| Property Tax | According to 70% of original value of the real estate (or rental income) as the tax base; according to the original value of the real estate deducted 30% at a time. | 12%、1.2% |
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 (Singapore) International Trade Co., Ltd. | 17% |
| Beijing Guchuan Bread Food Co., Ltd. | 15% |
2. Important preferential tax policies and basis
Hangzhou Linan Little Angel Food Co., Ltd., a grade-4 subsidiary company of the Company, is awelfare enterprise. Since May 2016, it has enjoyed the preferential VAT policy of immediate refund uponpayment in Preferential Value-Added Tax Policies for Promoting the Employment of Disabled Persons
(CaiShui [2016] No.52).The grade-2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited,according to the document JTCFDST(2018) No. 1539765025415 issued by tax authority of CaofeidianDistrict, Tangshan, affiliated to State Administration of Taxation, and also followed the rules in Law of thePeople's Republic of China on the Administration of Tax Collection, The Implementation Guideline ofLaw of the People's Republic of China on the Administration of Tax Collection, the rice under the brand ofTixiang produced by Caofeidian company if exempted from VAT.
The grade-2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited,according to the rules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86, therice under the brand of Tixiang produced by Caofeidian company is exempted from Corporation tax.Beijing Guchuan Bread&Food Co., Ltd., a grade-3 subsidiary of the Company, is a high-techenterprise. It enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rateaccording to the relevant provisions of both “Law of the People's Republic of China on Tax Collection andAdministration” and “Rules for the Implementation of the Tax Collection and Administration Law of thePeople's Republic of China”. It obtained the certificate of high-tech enterprise No. GR202111000657, validuntil September 14, 2024.The grade-3 subsidiary Beijing Tianweikang grease Distribution center Co., Ltd., is exempt fromstamp duty on the capital account book in accordance with the Announcement on the Continuation of thePreferential Tax Policies of Part of the National Commodity Reserves issued by Beijing Municipal Bureauof Finance and the State Taxation Bureau of Beijing Municipal Taxation Bureau (Beijing Finance TaxationBureau [2022] No. 1230) (No. 8 2022). Stamp duty shall be exempted from the purchase and sale contractssigned in the course of undertaking commodity reserve business, and stamp duty payable by other partiesto the contract shall be levied according to the regulations. Property tax and urban land use tax shall beexempted from the property tax and urban land use tax for the self-use of the property and land thatundertakes commodity reserve business. The notice will be enforced from January 1, 2022 to December31, 2023.
Jingliang (Singapore) International Trade Co., Ltd., a grade-3 subsidiary of the Company, levies taxeson the principle of territoriality. The company is taxed on the territoriality principle. According toSingapore's preferential tax policy, the company enjoys tax exemption plan is as follows: for the firstSGD$10,000 of taxable income amount the taxable income amount shall be reduced by SGD$7,500; forthe portion between SGD$10,001 and SGD$200,000, the taxable income amount shall be reduced bySGD$95,000; For the portion exceeding SGD$200,001, 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 withDisabilities”(Cai Shui[2009] No.70), Hangzhou Linan Little Angel Food Co., Ltd. , a grade-4 subsidiarycompany of the Company: Where an enterprise employs persons with disabilities, on the basis of deductionaccording to the wages paid to the disabled workers, it may deduct the amount of taxable incomeaccording to 100% of the wages paid to the disabled workers.The grade-3 subsidiary Zhejiang Xiaowangzi Foodstuff Co., Ltd. and the grade-4 subsidiarycompany-Hangzhou Linan Little Angel Food Co., Ltd. ,are entitled to enjoy the urban land use taxreduction policy of unified implementation of classification and grading for taxpayers in the manufacturingindustry within the province (including Ningbo City) according to the provisions of the General Office ofthe People's Government of Zhejiang Province Document No. 62 of 2019, and enjoy 100% and 80%reduction of urban land use tax for Class A and Class B enterprises respectively until December 31, 2022,with the maximum reduction of 100% and 80% of the urban land use tax payable by the Unit for the year.
Linqing Little Prince Food Co., Ltd., a grade-4 subsidiary of the company, shall be subject to 50% ofthe sales revenue on the basis of the stamp tax payable in the industrial procurement link and sales link inthe purchase and sale contract of industrial enterprises according to the announcement No.10, 2018 issuedby Shandong Provincial Tax Bureau. The base of stamp duty payable in 2022 shall be calculated accordingto 50% of the sales revenue.
The grade-4 subsidiary-Liaoning Xiaowangzi Food Limited, according to the SupplementaryAnnouncement 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 beexempted from land use tax, when computing land use tax, the area used in the computation is total arealess the area for afforest and street.
The grade-4 subsidiary-Hangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd. ,according to the Announcement of the State Administration of Taxation on Matters Relating to theImplementation of Preferential Income Tax Policies to Support the Development of Small and Micro-profitEnterprises and Individual Entrepreneurs and State Administration of Taxation Announcement No. 8 of2021, from January 1, 2021 to December 31, 2022, for small and micro-profit enterprises with annualtaxable income not exceeding RMB1 million The part of the annual taxable income of small and medium-sized enterprises shall be reduced by 12.5% of the taxable income and the enterprise income tax shall becalculated at a tax rate of 20%.
Jingliang (Hebei) Oil Industry Co., LTD., the grade-4 subsidiary of the Company, according to theAnnouncement of the State Administration of Taxation of the Ministry of Finance No. 8 of 2022, theAnnouncement of the State Administration of Taxation of the Ministry of Finance on the Continuation ofthe Preferential Tax Policies of some National Commodity Reserves, andJi Fiscal and Taxation No. 8, the
Notice of Hebei Province on Organizing and carrying out the Tax-free Qualification Declaration of LocalCommodity Storage Enterprises, Stamp duty shall be exempted for the account books of funds, for thepurchase and sale contracts signed in the course of undertaking commodity reserve business, and for thestamp duty payable by the other parties to the contract according to the regulations. Property tax and urbanland use tax shall be exempted from the property tax and urban land use tax for the self-use of the propertyand land that undertakes commodity reserve business. The notice will be enforced from January 1, 2022 toDecember 31, 2023. Jingliang (Hebei) Oil Industry Co., LTD., the grade-4 subsidiary of the company, isexempt from VAT on the sale of government reserve edible vegetable oil in accordance with the Notice ofthe State Administration of Taxation of the Ministry of Finance on the Issue of VAT Collection andExemption for Grain Enterprises (Fiscal and Taxation No. 198).The grade-2 subsidiary, Jingliang (Beijing) Food Marketing Management Co., LTD., the grade-4subsidiary, Linqing Little Prince Food Co., LTD.,and Hangzhou Linan Chunmanyuan AgriculturalDevelopment Co., LTD., are applicable to the fiscal and tax No.10 [2022] issued by the StateAdministration of Taxation of the Ministry of Finance on the Further Implementation of the "Six Taxes andtwo Fees" Reduction Policy for small and micro Enterprises in this period. The company meets therequirements for identification as a small and micro enterprise, and the preferential policies applicable in2022 are as follows: "To be determined by the people's governments of provinces, autonomous regions andmunicipalities directly under the Central Government in light of their actual conditions and the need formacro-control, For small-scale VAT taxpayers, small and low-profit enterprises and individual industrialand commercial households, resource tax, urban maintenance and construction tax, property tax, urbanland 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. Changes in accounting policies, accounting estimates, and explanation of corrections toprevious errors
1. Changes in accounting policies
(1)The company adopted the relevant provisions of the Accounting Standards for EnterprisesInterpretation No. 16 (Accounting and Accounting [2022] No. 31) from January 1, 2022. This change inaccounting policy has been no effect on the company's statements.
(2) The company adopted the relevant provisions of Accounting Standards for Business EnterprisesInterpretation No. 15 (Finance and Accounting (2021) No. 35) from January 1, 2022, "Accounting treatmentof products or by-products produced before fixed assets reach the predetermined usable state or in the processof research and development" and "judgment on loss-making contracts". This change in accounting policyhas been no effect on the company's statements.
2. Changes in accounting estimates
There is no change in accounting estimate during the reporting period.
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.Ⅵ. Notes on Items in Consolidated Financial StatementsNote: The ‘beginning’ of the period refers to January 1, 2022 and the ‘end’ of the period refers toDecember 31, 2022. The previous period refers to the year 2021and the current period refers to the year 2022.
1. Monetary funds
(1) Classification list
| Items | Ending Balance | Beginning Balance |
| Cash | 10,693.10 | 15,012.17 |
| Bank Deposits | 541,089,415.35 | 465,853,913.24 |
| Other Currency Funds | 19,913,001.31 | 41,275,743.04 |
| Total | 561,013,109.76 | 507,144,668.45 |
| Among them: the total amount of money deposited abroad | 16,585,678.20 | 16,432,706.23 |
(2) At the end of the period, there are 9,573,999.69 yuan of freezing and other restricted funds.Mainly margin for foreign exchange derivatives business.
(3) At the end of the period, there is no funds deposited abroad and the return of funds is restricted.
2. Transactional financial assets
| Items | Ending Balance | Beginning Balance |
| Financial assets measured at fair value with changes included in current profits and losses | 11,005,983.98 | 40,377,048.08 |
| Among them: debt instrument investment | 11,005,983.98 | 40,377,048.08 |
| Total | 11,005,983.98 | 40,377,048.08 |
3. Derivative financial assets
| Items | Ending Balance | Beginning Balance |
| Hedging instrument floating profit and loss | 201,549.12 | |
| Total | 201,549.12 |
4. Accounts Receivable
(1)Disclosed according to aging
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | 53,353,692.33 |
| Among them: Within the credit (within 3 months) | 50,652,171.97 |
| Credit period to 1 year | 2,701,520.36 |
| 1 to 2 years (including 2 years) | 18,692,634.64 |
| 2 to 3 years (including 3 years) | 7,499,480.04 |
| 3 to 4 years (including 4 years) |
| Aging | Ending Balance |
| 4 to 5 years (including 5 years) | |
| More than 5 years | 328,259.50 |
| Sub-total | 79,874,066.51 |
| Less Bad Debt provision | 2,816,619.65 |
| Total | 77,057,446.86 |
（2）Present according to the method of provision for bad debt
| Type(s) | Ending Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | 328,259.50 | 0.41 | 328,259.50 | 100.00 | |
| Portfolio provision for bad debts | 79,545,807.01 | 99.59 | 2,488,360.15 | 3.13 | 77,057,446.86 |
| Among them: portfolio 1 | 67,813,844.17 | 84.90 | 2,488,360.15 | 3.67 | 65,325,484.02 |
| portfolio 2 | 11,731,962.84 | 14.69 | 11,731,962.84 | ||
| Total | 79,874,066.51 | 100.00 | 2,816,619.65 | 77,057,446.86 | |
（Continued）
| Type(s) | Beginning Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | 1,324,259.50 | 1.57 | 1,324,259.50 | 100.00 | |
| Portfolio provision for bad debts | 83,278,298.33 | 98.43 | 584,203.71 | 0.70 | 82,694,094.62 |
| Among them: portfolio 1 | 74,329,280.51 | 87.86 | 584,203.71 | 0.79 | 73,745,076.80 |
| portfolio 2 | 8,949,017.82 | 10.58 | 8,949,017.82 | ||
| Total | 84,602,557.83 | 100.00 | 1,908,463.21 | 82,694,094.62 | |
A. Separate provision for bad debts
| Name | Ending Balance | |||
| Accounts Receivable | Bad Debt Provision | Provision Ratio | Provision Reason | |
| Beijing Rongfa Lida Grain and Oil Trade Co., Ltd. | 163,143.00 | 163,143.00 | 100.00 | expected unrecoverable |
| Fujian Jingxin Industrial Group Co., Ltd | 151,844.00 | 151,844.00 | 100.00 | expected unrecoverable |
| Others | 13,272.50 | 13,272.50 | 100.00 | expected unrecoverable |
| Total | 328,259.50 | 328,259.50 | ||
B. Portfolio provision for bad debts
1. Portfolio provision: aging portfolio
| Name | Ending Balance | Beginning Balance | |||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | ||
| Within 1 Year (including 1 year) | 41,621,729.49 | 53,832.41 | 65,611,523.16 | 34,531.93 | |||
| Among them: Within the credit (within 3 months) | 38,930,117.33 | 0 | 63,884,932.01 | 0 | |||
| Credit period to 1 year | 2,691,612.16 | 53,832.41 | 2 | 1,726,591.15 | 34,531.93 | 2 | |
| 1 to 2 years (including 2 years) | 18,692,634.64 | 934,631.73 | 5 | 8,594,045.46 | 429,702.27 | 5 | |
| 2 to 3 years (including 3 years) | 7,499,480.04 | 1,499,896.01 | 20 | ||||
| 3 to 4 years (including 4 years) | |||||||
| 4 to 5 years (including 5 years) | 18,711.89 | 14,969.51 | 80 | ||||
| More than 5 years | 105,000.00 | 105,000.00 | 100 | ||||
| Total | 67,813,844.17 | 2,488,360.15 | 74,329,280.51 | 584,203.71 | |||
2. Portfolio provision: related parties portfolio
| Name | Ending Balance | Beginning Balance | ||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | |
| Related parties portfolio | 11,731,962.84 | 8,949,017.82 | ||||
| Total | 11,731,962.84 | 8,949,017.82 | ||||
（3） details of bad debt provision
| Items | Beginning Balance | The amount changed for the period | Ending Balance | |||
| Addition | Withdrawal or reversal | Write-off | Other changes | |||
| Bad debt provision on individual basis | 1,324,259.50 | 996,000.00 | 328,259.50 | |||
| Credit impairment loss | 584,203.71 | 2,012,156.44 | 108,000.00 | 2,488,360.15 | ||
| Total | 1,908,463.21 | 2,012,156.44 | 1,104,000.00 | 2,816,619.65 | ||
（4）Accounts receivable actually written off in the current period
| Items | Write-off amount |
| Beijing Xidan Spicy Temptation Catering Co., Ltd | 996,000.00 |
| Hainan Pearl River Pipe Pile Co., Ltd | 108,000.00 |
During the period, the manager's office meeting approved to write off the uncollectible receivables.
（5）Accounts Receivable of the Top 5 Balances Collected by Debtors at the End of the Period
| Debtors | Accounts receivable | Ratio of totalaccounts receivable (%) | Aging | Whether related | Bad Debt Provision |
| Tangshan Caofeidian District Finance Bureau | 25,997,336.04 | 32.55 | 1-2 years，2-3 years | No | 2,424,788.81 |
| Hangzhou Holmes Food Co., Ltd. | 4,581,685.96 | 5.74 | Within 3 months | No | |
| Shanghai Laiyifen Co.,Ltd. | 4,016,604.11 | 5.03 | Within 3 months | No | |
| Hebei Luanping Huadu Food Co., Ltd | 3,548,214.00 | 4.44 | 4-12 months | Yes | |
| Zhejiang Lvqin Supply Chain Management Co., Ltd | 3,446,942.24 | 4.32 | Within 3 months | No | |
| Total | 41,590,782.35 | 52.08 | 2,424,788.81 |
5. Advanced Payment
(1) Advances are presented by age
| Aging | Ending Balance | Beginning Balance | ||
| Amount | Ratio(%) | Amount | Ratio(%) | |
| Within 1 year (including 1 year) | 194,490,369.48 | 99.99 | 87,713,762.15 | 99.90 |
| 1 to 2 years (including 2 years) | 5,278.58 | 0.01 | 90,000.00 | 0.10 |
| 2 to 3 years (including 3 years) | ||||
| More than 3 years | ||||
| Total | 194,495,648.06 | 100.00 | 87,803,762.15 | 100.00 |
(2) Advance payment of the top five Ending Balances by prepaid objects
| Debtor Name | Ending Balance | Ratio of the total ending balance of prepayments (%) |
| China Grains and Oils Co., Ltd | 127,549,301.83 | 65.58 |
| Tianjin Lingang Customs of the People's Republic of China | 39,989,746.37 | 20.56 |
| Xiamen Xiangyu Agricultural Products Co., Ltd | 9,658,353.04 | 4.97 |
| China Grains Reserve Zhenjiang Grain and Oil Co., Ltd | 4,117,228.54 | 2.12 |
| Louis Dreyfus (Tianjin) International Trade Co., Ltd | 3,229,405.46 | 1.66 |
| Total | 184,544,035.24 | 94.89 |
6. Other Receivables
1.Overview
(1)Classification
| Item(s) | Ending Balance | Beginning Balance |
| Interest Receivable | ||
| Dividend Receivable | ||
| Other Receivables | 444,523,698.48 | 284,756,636.27 |
| Total | 444,523,698.48 | 284,756,636.27 |
2.Other Receivables
A. Disclosed according to aging
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | 435,828,243.19 |
| Among them: Within the credit (within 3 months) | 435,268,072.23 |
| Credit period to 1 year | 560,170.96 |
| 1 to 2 years (including 2 years) | 7,333,429.30 |
| 2 to 3 years (including 3 years) | 741,388.00 |
| 3 to 4 years (including 4 years) | 88,638.00 |
| 4 to 5 years (including 5 years) | 101,999.99 |
| More than 5 years | 430,000.00 |
| Sub-Total | 444,523,698.48 |
| Less Bad Debt provision | |
| Total | 444,523,698.48 |
B. Classification of other receivables by nature of funds
| Nature of Funds | Book Balance at End of Period | Book Balance at Beginning of Year |
| Guaranteed Deposit and Deposit | 436,908,577.53 | 277,445,730.08 |
| Intercourse Funds of Units | 5,728,584.30 | 6,142,777.03 |
| Employee Receivables | 1,051,023.02 | 755,783.37 |
| Tax Refund Receivables | 548,483.77 | 363,103.93 |
| Personal Intercourse Funds | ||
| Others | 287,029.86 | 149,939.71 |
| Total | 444,523,698.48 | 284,857,334.12 |
C. Details about allowance for bad debt
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Amount on 1st January 2022 | 100,697.85 | 100,697.85 | ||
| Carrying amount on 1st January 2021 that in this period: | ||||
| ——Get into Stage 2 | ||||
| ——Get into Stage 3 | ||||
| ——Get back to Stage 2 | ||||
| ——Get back to Stage 1 | ||||
| Provision for the period | ||||
| Reverse for the period | 7,500.00 | 7,500.00 | ||
| Transfer for the period | ||||
| Write off for the period | 93,197.85 | 93,197.85 | ||
| Other changes | ||||
| Amount on 31st December 2022 |
D. Details of bad debt provision
| Type | Carrying amount at the | Amount changes for the period | Carrying amount at the | |||
| Addition | Withdrawal | Write- | Other | |||
| beginning | or reversal | off | changes | end | ||
| Credit impairment loss | 100,697.85 | 7,500.00 | 93,197.85 | |||
| Total | 100,697.85 | 7,500.00 | 93,197.85 |
E. Other receivables actually written off in the current period
| Items | Write-off amount |
| Actual amount | 93,197.85 |
During the period, t the manager's office meeting approved to write off the uncollectible receivablesF. Other receivables according to top five of balance at end of period collected by debtors
| Name of Organization | Nature of Funds | Balance at End of Period | Aging | Proportion in overall ending balance of other receivables (%) | Ending balance of bad debt reserves |
| Zhongtian Futures Co. Ltd | Futures margin | 269,474,623.60 | Within 1 year | 60.62 | |
| Haitong Futures Co., Ltd | Futures margin | 111,810,836.00 | Within 1 year | 25.15 | |
| ADM International Sarl | Futures margin | 24,376,100.00 | Within 1 year；1-2 years | 5.48 | |
| Sdic Cgog Futures Co., Ltd. | Futures margin | 15,750,181.20 | Within 1 year | 3.54 | |
| GAVILON CHINA (HK) LIMITED | Futures margin | 6,964,600.00 | Within 1 year | 1.57 | |
| Total | 428,376,340.80 | 96.36 |
G. Receivables related to government grants
| Name of the grant company | Name of government grants | Carrying amount at the end | Aging at the end of the period | Time, amount and evidence of expected collection |
| Tax Bureau of Linan DIatrict, Hangzhou, Zhejiang Province | Refund of VAT | 548,483.77 | Within 3 months | All amount will be collected in February 2023 |
| Total | 548,483.77 |
7. Inventory
(1) Inventory Category
| Items | Ending Balance | Beginning Balance | ||||
| Book Balance | Falling Price Reserves | Book Value | Book Balance | Falling Price Reserves | Book Value | |
| Raw Materials | 445,721,945.85 | 4,599.51 | 445,717,346.34 | 120,983,829.85 | 120,997.67 | 120,862,832.18 |
| Revolving Materials | 5,267,896.63 | 5,267,896.63 | 5,247,229.29 | 5,247,229.29 | ||
| Goods and materials in transit | 337,276,381.65 | 337,276,381.65 | 522,101,505.11 | 522,101,505.11 | ||
| Inventory goods | 1,081,693,725.26 | 44,208,166.31 | 1,037,485,558.95 | 1,007,319,237.46 | 355,731.86 | 1,006,963,505.60 |
| Qil reserve | 248,197,500.00 | 248,197,500.00 | 248,197,500.00 | 248,197,500.00 | ||
| Total | 2,118,157,449.39 | 44,212,765.82 | 2,073,944,683.57 | 1,903,849,301.71 | 476,729.53 | 1,903,372,572.18 |
(2) Inventory Falling Price Reserves and provision for impairment of contract performance costs
| Items | Balance at Beginning of Year | Increased Amounts in the Current Period | Decreased Amounts in the Current Period | Balance at End of Period | ||
| Accrual | Others | Recover or Charge Off | Others | |||
| Stock Goods | 355,731.86 | 44,037,824.85 | 185,390.40 | 44,208,166.31 | ||
| Raw material | 120,997.67 | 4,599.51 | 120,997.67 | 4,599.51 | ||
| In total | 476,729.53 | 44,042,424.36 | 306,388.07 | 44,212,765.82 | ||
Note: the basis for the provision of depreciation is the public market quotation.
(3)Stock Goods listed by major product type
8. Non-current assets due within one year
| Items | Balance at End of Period | Balance at Beginning of Period |
| Three-year term deposits | 148,387,894.16 | 156,139,100.00 |
| In total | 148,387,894.16 | 156,139,100.00 |
9. Other Current Assets
| Items | Balance at End of Period | Balance at Beginning of Period |
| Financial Products | 405,999,000.00 | 742,800,000.00 |
| Pre-paid Taxes and Fees | 15,477,676.61 | 1,192,806.93 |
| Pending Deduct VAT Input Tax | 45,572,085.33 | 13,930,489.13 |
| Fair Value Changes of Items Trapped at Hedging | 165,881,137.81 | 62,577,325.41 |
| In total | 632,929,899.75 | 820,500,621.47 |
10. Long-term Equity Investment
| Invested Unit | Balance at Beginning of Year | Increase or Decrease in the Current Period | ||
| Additional Investment | Negative Investment | Confirmed Profit and Loss on Investment under Equity Method | ||
| 1. Cooperative Enterprise | ||||
| Beijing CHIA TAI FeedmillCo. ,Limited | 112,016,416.64 | 9,128,159.96 | ||
| Sub-total | 112,016,416.64 | 9,128,159.96 | ||
| 2. Joint Venture | ||||
| China Grain Reserves (Tianjin) Warehouse Logistics Co., Ltd. | 111,894,762.89 | 3,612,066.17 | ||
| Jingliang | 6,888,258.00 | -446,589.18 | ||
Items
| Items | Ending Balance | Beginning Balance | ||||
| Book Balance | Falling Price Reserves | Book Value | Book Balance | Falling Price Reserves | Book Value | |
| Grease and oils | 1,048,142,485.94 | 44,023,263.60 | 1,004,119,222.34 | 975,554,568.82 | 170,341.46 | 975,384,227.36 |
| Food | 33,551,239.32 | 184,902.71 | 33,366,336.61 | 31,764,668.64 | 185,390.40 | 31,579,278.24 |
| Total | 1,081,693,725.26 | 44,208,166.31 | 1,037,485,558.95 | 1,007,319,237.46 | 355,731.86 | 1,006,963,505.60 |
| Invested Unit | Balance at Beginning of Year | Increase or Decrease in the Current Period | ||
| Additional Investment | Negative Investment | Confirmed Profit and Loss on Investment under Equity Method | ||
| Missme Catering Management (Beijing) Co., Ltd. | ||||
| Sub-total | 118,783,020.89 | 3,165,476.99 | ||
| Total | 230,799,437.53 | 12,293,636.95 | ||
(Continued)
| Increase or Decrease in the Current Period | Balance at End of Period | Ending Balance of Impairment Reserves | ||||
| Adjustment of other comprehensive income | Other changes in equity | Announce to Distribute Case Dividends or Profits | Accrual of Impairment Reserves | Others | ||
| 460,842.50 | 121,605,419.10 | |||||
| 460,842.50 | 121,605,419.10 | |||||
| 115,506,829.06 | ||||||
| 6,441,668.82 | ||||||
| 121,948,497.88 | ||||||
| 460,842.50 | 243,553,916.98 | |||||
11. Other equity instruments investment
| Item | Ending Balance | Beginning Balance |
| Chongqing long jinbao network technology co. LTD | 20,000,000.00 | 20,000,000.00 |
| China Net Technology Investment Co., Ltd | ||
| Total | 20,000,000.00 | 20,000,000.00 |
12. Investment Real Estate
(1) Investment Real Estate Adopting Cost Measurement Model
| Items | Buildings | Land Use Right | Total |
| One. Original Book Value | |||
| 1. Balance at Beginning of Year | 53,844,801.60 | 53,844,801.60 | |
| 2. Increased Amounts in the Current Period | 978,420.00 | 978,420.00 | |
| (1) Outsourcing | |||
| (2) Inventory transfer | 978,420.00 | 978,420.00 | |
| (3) Others | |||
| 3. Decreased Amounts in the Current Period | 131,640.00 | 131,640.00 | |
| (1) Disposal | |||
| (2) Other transfer out | 131,640.00 | 131,640.00 | |
| 4. Balance at End of Period | 54,691,581.60 | 54,691,581.60 | |
| Two. Accumulated Impairment and Accumulated Amortization | |||
| 1. Balance at Beginning of Year | 22,331,321.34 | 22,331,321.34 | |
| 2. Increased Amounts in the Current Period | 2,034,786.32 | 2,034,786.32 |
| Items | Buildings | Land Use Right | Total |
| (1) Accrual or Amortization | 2,034,786.32 | 2,034,786.32 | |
| 3. Decreased Amounts in the Current Period | 67,599.00 | 67,599.00 | |
| (1) Disposal | |||
| (2) Other transfer out | 67,599.00 | 67,599.00 | |
| 4. Balance at End of Period | 24,298,508.66 | 24,298,508.66 | |
| Three. Impairment Reserves | |||
| 1. Balance at Beginning of Year | 10,587,796.70 | 10,587,796.70 | |
| 2. Increased Amounts in the Current Period | |||
| (1) Accrual | |||
| (2) Inventory transfer | |||
| 3. Decreased Amounts in the Current Period | |||
| (1) Disposal | |||
| (2) Other transfer out | |||
| 4. Balance at End of Period | 10,587,796.70 | 10,587,796.70 | |
| Four. Book Value | |||
| 1. Book Value at End of Period | 19,805,276.24 | 19,805,276.24 | |
| 2. Book Value at Beginning of Year | 20,925,683.56 | 20,925,683.56 |
13. Fixed Assets
1.Overview
(1)Classification
| Items | Balance at End of Period | Balance at Beginning of Year |
| Fixed Assets | 1,047,451,810.24 | 1,120,758,409.49 |
| Disposal of Fixed Assets | ||
| In total | 1,047,451,810.24 | 1,120,758,409.49 |
2.Fixed Assets
(1)Fixed Assets Situation
| Items | Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | Total |
| One. Original Book Value | |||||||
| 1. Balance at Beginning of Year | 1,119,870,541.94 | 788,852,320.80 | 21,026,928.92 | 12,402,490.91 | 7,137,610.08 | 1,641,296.49 | 1,950,931,189.14 |
| 2. Increased Amounts in the Current Period | 4,189,847.87 | 19,975,874.69 | 1,231,887.12 | 768,444.03 | 278,814.60 | 2,800.00 | 26,447,668.31 |
| (1) Purchase | 3,305,780.29 | 16,136,570.52 | 1,214,963.12 | 768,444.03 | 278,814.60 | 2,800.00 | 21,707,372.56 |
| (2) Roll-in of Project under Construction | 884,067.58 | 3,839,304.17 | 4,723,371.75 | ||||
| (3) Roll-in of inventory | 16,924.00 | 16,924.00 | |||||
| 3. Decreased Amounts in the Current Period | 1,290,762.00 | 4,002,972.96 | 1,800,951.76 | 140,132.09 | 400,939.36 | 7,635,758.17 |
| Items | Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | Total |
| (1) Disposal or Scrap | 1,290,762.00 | 4,002,972.96 | 1,800,951.76 | 140,132.09 | 400,939.36 | 7,635,758.17 | |
| 4. Balance at End of Period | 1,122,769,627.81 | 804,825,222.53 | 20,457,864.28 | 13,030,802.85 | 7,015,485.32 | 1,644,096.49 | 1,969,743,099.28 |
| Two. Accumulated Impairment | |||||||
| 1. Balance at Beginning of Year | 378,851,324.94 | 414,055,308.60 | 13,724,476.80 | 8,323,942.98 | 5,502,808.17 | 592,046.43 | 821,049,907.92 |
| 2. Increased Amounts in the Current Period | 39,582,154.04 | 55,390,041.87 | 1,468,931.52 | 1,351,336.96 | 508,694.10 | 60,051.60 | 98,361,210.09 |
| (1) Accrual | 39,582,154.04 | 55,390,041.87 | 1,468,931.52 | 1,351,336.96 | 508,694.10 | 60,051.60 | 98,361,210.09 |
| 3. Decreased Amounts in the Current Period | 636,122.76 | 3,667,460.06 | 1,456,015.76 | 133,321.41 | 346,972.60 | 6,239,892.59 | |
| (1) Disposal or Scrap | 636,122.76 | 3,667,460.06 | 1,456,015.76 | 133,321.41 | 346,972.60 | 6,239,892.59 | |
| 4. Balance at End of Period | 417,797,356.22 | 465,777,890.41 | 13,737,392.56 | 9,541,958.53 | 5,664,529.67 | 652,098.03 | 913,171,225.42 |
| Three. Impairment Reserves | |||||||
| 1. Balance at Beginning of Year | 9,047,959.13 | 74,912.60 | 9,122,871.73 | ||||
| 2. Increased Amounts in the Current Period | |||||||
| (1) Accrual | |||||||
| (2) Roll-in of inventory | |||||||
| 3. Decreased Amounts in the Current Period | 2,808.11 | 2,808.11 | |||||
| (1) Disposal or Scrap | 2,808.11 | 2,808.11 | |||||
| 4. Balance at End of Period | 9,047,959.13 | 72,104.49 | 9,120,063.62 | ||||
| Four. Book Value | |||||||
| 1. Book Value at End of Period | 695,924,312.46 | 338,975,227.63 | 6,720,471.72 | 3,488,844.32 | 1,350,955.65 | 991,998.46 | 1,047,451,810.24 |
| 2. Book Value at Beginning of Year | 731,971,257.87 | 374,722,099.60 | 7,302,452.12 | 4,078,547.93 | 1,634,801.91 | 1,049,250.06 | 1,120,758,409.49 |
(2)Fixed assets without property right certificate
| Project | Book Value | Reasons for failure to complete certificate of title |
| Buildings | 2,236,948.76 | No title certificate for auxiliary assets |
14. Project under Construction
1.Overview
(1)Classification
| Items | Balance at End of Period | Balance at Beginning of Year |
| Project under Construction | 22,695,003.52 | 11,220,840.10 |
| Total | 22,695,003.52 | 11,220,840.10 |
2.Project under Construction
(1)Situation of Project under Construction
| Items | Balance at End of Period | Balance at Beginning of Year | ||||
| Book Balance | Impairment Reserves | Book Value | Book Balance | Impairment Reserves | Book Value | |
| 1. Slope treatment project of No.3 plant | 5,244,356.21 | 5,244,356.21 | 3,584,245.07 | 3,584,245.07 | ||
| 2. Comprehensive bonded zone feed processing project automation line project | 5,224,681.81 | 5,224,681.81 | 113,207.54 | 113,207.54 | ||
| 3. Walnut cake production line of No.2 plant | 4,238,844.00 | 4,238,844.00 | 4,234,344.00 | 4,234,344.00 | ||
| 4. Konjac test facilities | 1,787,067.94 | 1,787,067.94 | 364,763.09 | 364,763.09 | ||
| 5. Soybean extruding and rumen soybean meal processing project | 1,618,517.50 | 1,618,517.50 | ||||
| 6. The second factory baked potato matching automation line | 953,600.00 | 953,600.00 | ||||
| 7. Thermal energy recovery and utilization project | 856,263.58 | 856,263.58 | ||||
| 8. Odor control project | 792,660.56 | 792,660.56 | ||||
| 9. Soy snacks test facilities | 542,214.80 | 542,214.80 | ||||
| 10.West yard leaching workshop decoration project | 344,775.86 | 344,775.86 | ||||
| 11. New production line of fried potato chips | 2,038,825.39 | 2,038,825.39 | ||||
| 12. Others | 1,092,021.26 | 1,092,021.26 | 885,455.01 | 885,455.01 | ||
| Total | 22,695,003.52 | 22,695,003.52 | 11,220,840.10 | 11,220,840.10 | ||
(2) Change Condition of Important Engineering Projects under Construction in the Current Period
| Project Name | Balance at Beginning of Year | Increased Amounts in the Current Period | Roll-in Fixed Assets Amount in the Current Period | Other Decreased Amounts in the Current Period | Balance at End of Period |
| Production line of fried potato chips | 2,038,825.39 | 1,840,509.66 | 3,879,335.05 | ||
| Slope treatment project of No.3 plant | 3,584,245.07 | 1,660,111.14 | 5,244,356.21 | ||
| Walnut cake production line of No.2 plant | 4,234,344.00 | 4,500.00 | 4,238,844.00 | ||
| Konjac test facilities | 364,763.09 | 1,422,304.85 | 1,787,067.94 | ||
| Soybean extruding and | 1,618,517.50 | 1,618,517.50 |
| Project Name | Balance at Beginning of Year | Increased Amounts in the Current Period | Roll-in Fixed Assets Amount in the Current Period | Other Decreased Amounts in the Current Period | Balance at End of Period |
| rumen soybean meal processing project | |||||
| Comprehensive bonded zone feed processing project automation line project | 113,207.54 | 5,111,474.27 | 5,224,681.81 | ||
| Total | 10,335,385.09 | 11,657,417.42 | 3,879,335.05 | 18,113,467.46 |
15. Right-of-use asset
| Items | Buildings | Transportation Equipment | Land Use Right | In total |
| One Original Book Value | ||||
| 1. Balance at Beginning of Year | 4,423,305.76 | 202,276.99 | 4,970,592.00 | 9,596,174.75 |
| 2. Increased Amounts in the Current Period | 536,845.51 | 536,845.51 | ||
| (1) Lease | 536,845.51 | 536,845.51 | ||
| 3. Decreased Amounts in the Current Period | 108,248.00 | 108,248.00 | ||
| (1) Expiration of the lease or change the lease term | 108,248.00 | 108,248.00 | ||
| 4. Balance at End of Period | 4,423,305.76 | 630,874.50 | 4,970,592.00 | 10,024,772.26 |
| Two Accumulated Depreciation | ||||
| 1. Balance at Beginning of Year | 1,337,882.83 | 99,917.64 | 112,968.00 | 1,550,768.47 |
| 2. Increased Amounts in the Current Period | 1,395,904.55 | 88,029.04 | 112,968.00 | 1,596,901.59 |
| (1) Accrual | 1,395,904.55 | 88,029.04 | 112,968.00 | 1,596,901.59 |
| 3. Decreased Amounts in the Current Period | 91,324.00 | 91,324.00 | ||
| (1)Lease expiration or change | 91,324.00 | 91,324.00 | ||
| 4. Balance at End of Period | 2,733,787.38 | 96,622.68 | 225,936.00 | 3,056,346.06 |
| Three Impairment Reserves | ||||
| 1. Balance at Beginning of Year | ||||
| 2. Increased Amounts in the Current Period | ||||
| (1) Accrual | ||||
| 3. Decreased Amounts in the Current Period | ||||
| (1) Disposal |
| Items | Buildings | Transportation Equipment | Land Use Right | In total |
| 4. Balance at End of Period | ||||
| Four Book Value | ||||
| 1. Book Value at End of Period | 1,689,518.38 | 534,251.82 | 4,744,656.00 | 6,968,426.20 |
| 2. Book Value at Beginning of Year | 3,085,422.93 | 102,359.35 | 4,857,624.00 | 8,045,406.28 |
16. Intangible Assets
(1) Intangible Assets Situation
| Items | Software | Land Use Right | Trademark Right | Others | In total |
| One Original Book Value | |||||
| 1. Balance at Beginning of Year | 4,993,743.75 | 316,407,869.54 | 154,841,200.00 | 662,400.00 | 476,905,213.29 |
| 2. Increased Amounts in the Current Period | 178,530.09 | 178,530.09 | |||
| (1) Purchase | 178,530.09 | 178,530.09 | |||
| 3. Decreased Amounts in the Current Period | 268,565.58 | 662,400.00 | 930,965.58 | ||
| (1) Disposal | 268,565.58 | 268,565.58 | |||
| (2)Write-off | 662,400.00 | 662,400.00 | |||
| 4. Balance at End of Period | 5,172,273.84 | 316,139,303.96 | 154,841,200.00 | 476,152,777.80 | |
| Two Accumulated Amortization | |||||
| 1. Balance at Beginning of Year | 3,882,572.92 | 68,640,464.95 | 63,749,297.55 | 136,272,335.42 | |
| 2. Increased Amounts in the Current Period | 294,101.49 | 6,941,148.03 | 7,713,925.86 | 14,949,175.38 | |
| (1) Accrual | 294,101.49 | 6,941,148.03 | 7,713,925.86 | 14,949,175.38 | |
| 3. Decreased Amounts in the Current Period | 113,617.34 | 113,617.34 | |||
| (1) Disposal | 113,617.34 | 113,617.34 | |||
| 4. Balance at End of Period | 4,176,674.41 | 75,467,995.64 | 71,463,223.41 | 151,107,893.46 | |
| Three Impairment Reserves | |||||
| 1. Balance at Beginning of Year | 662,400.00 | 662,400.00 | |||
| 2. Increased Amounts in the Current Period | |||||
| (1) Accrual | |||||
| 3. Decreased Amounts in the Current Period | 662,400.00 | 662,400.00 | |||
| (1) Disposal | |||||
| (2)Write-off | 662,400.00 | 662,400.00 | |||
| 4. Balance at End of Period |
| Items | Software | Land Use Right | Trademark Right | Others | In total |
| Four Book Value | |||||
| 1. Book Value at End of Period | 995,599.43 | 240,671,308.32 | 83,377,976.59 | 325,044,884.34 | |
| 2. Book Value at Beginning of Year | 1,111,170.83 | 247,767,404.59 | 91,091,902.45 | 339,970,477.87 |
17. Goodwill
1. Original Book Value of Goodwill
| Name of Invested Unit or Items Forming Goodwill | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period | ||
| Formed by Enterprise Merger | Others | Disposal | Others | |||
| Acquire stock shares of Zhejiang Xiaowangzi Food Co., Ltd. | 191,394,422.51 | 191,394,422.51 | ||||
| In total | 191,394,422.51 | 191,394,422.51 | ||||
2. Relevant information about the group or groups of assets that include goodwill
| Book value of goodwill | Asset group or portfolio of asset groups | |||
| Main components | Book value | Determination method | Is there any change in the current period | |
| 191,394,422.51 | Fixed assets, intangible assets, etc | 752,620,949.71 | Income method | No |
Note: Taking December 31, 2022 as the base date of evaluation, Beijing Jingliang Food Co., Ltd.conducted impairment tests on the goodwill formed by the acquisition of the equity of Zhejiang Little PrinceFood Co., Ltd. The book value of the asset group including goodwill was 752.62 million yuan, and therecoverable amount was no less than 829.16 million yuan.The component of group or groups of assets: impairment test for goodwill related asset as group ofasset, main cash in is independent from cash in of other group of assets, this group of assets should beconsistent with the group of assets that was recognized in the impairment test of goodwill on acquisition dateand previous years.
3. Recognition method of goodwill impairment loss and process, key assumptions and keyparameters of goodwill test
1) At the end of the period, the company performed an impairment test on the asset group related togoodwill. When performing an impairment test on a related asset group or asset group combination thatincludes goodwill, if there is an impairment of the asset group or asset group combination related to goodwillIf there are signs, an impairment test is performed on the asset group or combination of asset groups thatdoes not include goodwill, and the recoverable amount is calculated and compared with the book value toconfirm the corresponding impairment loss. Then perform an impairment test on the asset group or asset
group combination that includes goodwill, and compare the book value of the asset group or asset groupcombination that contains the distributed goodwill with its recoverable amount. If the relevant asset groupor asset group combination is recoverable, The amount is lower than its book value, and the impairment lossof goodwill is recognized.
2) Important key assumptions adopted and their basis: 1. As for the actual situation of assets on theevaluation base date, it is assumed that the company continues to operate; 2. Assume that the cash inflowsrated as units after the evaluation base date are uniform inflows, and cash outflows are uniform outflows;
3.On the basis of the existing management methods and management levels, the company's business scopeand methods are consistent with the current direction; 4. There will be no major changes in the interest rates,exchange rates, taxation benchmarks and tax rates, and policy levy fees; 5. The management of the unit beingassessed is responsible, stable and capable of performing its duties.
3）Key parameter
| Item | Forecast period | Revenue growth rate over the forecast period | Revenue growth rate over the stable period | Profit margin | Pre-tax discount rate |
| Zhejiang Little Prince Food Co., Ltd. | 2023 to 2026 | 1.86% | 0% | Calculated based on forecasted revenue, costs, expenses, etc. | 16.29% |
4. Impact of goodwill impairment test
After testing, the company's goodwill formed by the acquisition of the operating asset group ofZhejiang Little Prince Food Co., Ltd. is not impaired.
18. Long-term Unamortized Expenses
| Items | Balance at Beginning of Year | Increased Amounts in the Current Period | Amortized Amounts in the Current Period | Other Decreased Amounts | Balance at End of Period |
| Reconstruction of majuqiao plant | 14,214,132.05 | 674,188.08 | 13,539,943.97 | ||
| Amortization of laboratory decoration costs | 1,811,130.71 | 546,236.69 | 126,690.09 | 2,230,677.31 | |
| Workshop renovation and decoration | 579,973.43 | 63,637.44 | 516,335.99 | ||
| Factory No.3 compartment maintenance | 604,558.74 | 604,558.74 | |||
| Housing renovation | 753,996.91 | 104,986.26 | 649,010.65 | ||
| Total | 17,383,818.41 | 1,126,210.12 | 1,574,060.61 | 16,935,967.92 |
19. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1)Deferred Income Tax Assets Not Being Offset
| Items | Balance at End of Period | Balance at Beginning of Year | ||
| Deductible Temporary Difference | Deferred Income Tax Assets | Deductible Temporary Difference | Deferred Income Tax Assets | |
| Asset Impairment | 44,268,191.18 | 11,067,047.80 | 560,563.61 | 140,140.91 |
| Reserves | ||||
| Lease liabilities | 167,668.58 | 41,917.15 | 196,089.81 | 49,022.46 |
| Deductible Loss | 1,383,480.84 | 345,870.21 | ||
| Credit impairment Loss | 3,811,842.32 | 952,960.58 | 1,808,563.08 | 452,140.67 |
| Deferred Income | 11,824,538.36 | 2,956,134.59 | 12,097,654.47 | 3,024,413.62 |
| Wages payable | 5,677,134.00 | 1,419,283.50 | 5,677,134.00 | 1,419,283.50 |
| Valuation of Financial Instruments and Derivative Financial Instruments | 211,060.00 | 52,765.00 | 33,944,248.10 | 8,486,062.03 |
| Rebate on contracts | 3,215,300.44 | 803,825.11 | ||
| In total | 70,559,215.72 | 17,639,803.94 | 54,284,253.07 | 13,571,063.19 |
(2)Details of Deferred Income Tax Liabilities Not Being Offset
| Items | Balance at End of Period | Balance at Beginning of Year | ||
| Taxable Temporary Difference | Deferred Income Tax Liabilities | Taxable Temporary Difference | Deferred Income Tax Liabilities | |
| Valuation and appreciation of assets in merger of enterprises not under the same control | 144,667,350.88 | 36,166,837.72 | 154,787,977.45 | 38,696,994.37 |
| Valuation of Financial Instruments and Derivative Financial Instruments | 54,719,042.81 | 13,679,760.70 | 26,215,702.16 | 6,553,925.54 |
| Use right assets | 34,449.15 | 8,612.29 | ||
| Total | 199,420,842.84 | 49,855,210.71 | 181,003,679.61 | 45,250,919.91 |
(3)Details of Deferred Income Tax Liabilities after Offset
| Items | Offset amount of deferred tax assets and liabilities | Carrying amount after offsetting between deferred tax assets and liabilities | offset amount of deferred tax assets and liabilities at the end of last period | Carrying amount after offsetting between deferred tax assets and liabilitie at the end of last period |
| Deferred tax asset | 3,450,040.01 | 14,189,763.93 | 13,571,063.19 | |
| Deferred tax liabilities | 3,450,040.01 | 46,405,170.70 | 45,250,919.91 |
(4)Details of Deferred Income Tax Assets Not Being Confirmed
| Items | Balance at End of Period | Balance at Beginning of Year |
| Deductible temporary differences | 200,597.85 | |
| Deductible Loss | 160,184,970.56 | 107,793,038.93 |
| In total | 160,184,970.56 | 107,993,636.78 |
(5)Deductible loss on deferred income tax assets not being confirmed will be due at the followingyears
| Year | Balance at End of Period | Balance at Beginning of Year | Notes |
| 2022 | 4,021,787.39 | ||
| 2023 | 9,688,448.81 | 19,123,515.53 | |
| 2024 | 47,153,825.45 | 47,153,825.45 |
| Year | Balance at End of Period | Balance at Beginning of Year | Notes |
| 2025 | 25,114,592.05 | 25,114,592.05 | |
| 2026 | 12,221,704.26 | 12,379,318.51 | |
| 2027 | 66,006,399.99 | ||
| Total | 160,184,970.56 | 107,793,038.93 |
20. Other Non-current Assets
| Items | Ending Balance | Beginning Balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Three-year term deposit | 53,544,782.34 | 53,544,782.34 | 189,741,996.74 | 189,741,996.74 | ||
| Total | 53,544,782.34 | 53,544,782.34 | 189,741,996.74 | 189,741,996.74 | ||
21. Short-term Borrowings
1.Classification of Short-term Borrowings
| Items | Balance at End of Period | Balance at Beginning of Year |
| Guaranteed Loan | 23,262,063.93 | |
| Fiduciary Loan | 1,260,543,148.81 | 1,498,407,537.42 |
| In total | 1,260,543,148.81 | 1,521,669,601.35 |
22. Derivative financial liability
| Item | Ending balance | Beginning balance |
| Changes in fair value of hedging instruments | 111,373,155.00 | 70,305,871.37 |
| Total | 111,373,155.00 | 70,305,871.37 |
23. Notes payable
| Items | Balance at End of Period | Balance at Beginning of Year |
| Banker's acceptance | 3,331,333.80 | |
| In total | 3,331,333.80 |
24. Accounts Payable
1. Accounts Payable Listed
| Items | Balance at End of Period | Balance at Beginning of Year |
| Material Funds Payable | 99,975,435.40 | 176,725,835.45 |
| Project Funds Payable | 8,989,252.43 | 7,291,515.18 |
| Equipment Funds Payable | 765,432.60 | 1,746,573.40 |
| Others | 1,181,756.78 | 984,822.39 |
| In total | 110,911,877.21 | 186,748,746.42 |
25. Advance payment
1. Advance payment Listed
| Items | Balance at End of Period | Balance at Beginning of Year |
| Advance collection of rent | 922,982.41 | 996,173.41 |
| In total | 922,982.41 | 996,173.41 |
26. Contract liabilities
1. Classification of contract liabilities
| Items | Balance at End of Period | Balance at Beginning of Year |
| Loans | 285,555,581.80 | 520,816,995.93 |
| In total | 285,555,581.80 | 520,816,995.93 |
27. Wages Payable
1.List of Wages Payable
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| Short-term Compensation | 40,757,672.48 | 325,933,902.86 | 324,471,120.97 | 42,220,454.37 |
| After-service Welfare- Set up ESP liabilities | 1,372,978.01 | 33,710,293.18 | 33,374,964.80 | 1,708,306.39 |
| Dismission Welfare | 548,018.27 | 548,018.27 | ||
| In total | 42,130,650.49 | 360,192,214.31 | 358,394,104.04 | 43,928,760.76 |
2.List of Short-term Compensation
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| 1. Wage, Bonus, Allowance and Subsidy | 36,829,352.40 | 276,915,211.10 | 275,625,126.04 | 38,119,437.46 |
| 2. Welfare Expense of Employee | 20.00 | 7,631,838.31 | 7,624,938.31 | 6,920.00 |
| 3. Social Insurance Expense | 867,037.88 | 19,740,023.85 | 19,774,278.23 | 832,783.50 |
| Among them: Medical Insurance Premiums | 766,979.62 | 18,057,299.33 | 18,073,987.28 | 750,291.67 |
| Industrial Injury Insurance Premiums | 65,373.41 | 1,210,260.23 | 1,209,421.66 | 66,211.98 |
| Birth Insurance Premiums | 34,684.85 | 320,462.93 | 338,867.93 | 16,279.85 |
| Others | 152,001.36 | 152,001.36 | ||
| 4. Housing Provident Funds | 129,165.23 | 16,047,776.66 | 16,030,347.40 | 146,594.49 |
| 5. Labor Union Expense and Personnel Education Fund | 2,932,096.97 | 5,599,052.94 | 5,416,430.99 | 3,114,718.92 |
| In total | 40,757,672.48 | 325,933,902.86 | 324,471,120.97 | 42,220,454.37 |
3.List of Stated Drawings Plan
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| 1. Basic Pension Insurance | 1,281,915.76 | 29,242,321.17 | 28,907,287.00 | 1,616,949.93 |
| 2. Unemployment Insurance Expense | 44,475.16 | 963,409.54 | 964,946.95 | 42,937.75 |
| 3. Enterprise Annuity Charges | 46,587.09 | 3,504,562.47 | 3,502,730.85 | 48,418.71 |
| Total | 1,372,978.01 | 33,710,293.18 | 33,374,964.80 | 1,708,306.39 |
28. Taxes and Fees Payable
| Items | Balance at End of Period | Balance at Beginning of Year |
| Corporate Income Tax | 39,893,369.93 | 74,174,903.15 |
| VAT | 18,489,749.05 | 23,320,246.23 |
| Urban Maintenance and Construction Tax | 1,352,280.58 | 1,876,669.91 |
| House Property Tax | 2,316,064.99 | 2,302,350.63 |
| Land Use Tax | 150,746.89 | 176,087.89 |
| Individual Income Tax | 2,331,343.41 | 671,107.90 |
| Educational Surtax | 542,273.76 | 760,843.86 |
| Local Educational Surtax | 413,658.90 | 559,372.28 |
| Stamp Tax | 1,135,833.99 | 500,830.44 |
| Environmental protection tax | 3,732.68 | 5,193.36 |
| Water conservancy construction fee | 247.04 | |
| In total | 66,629,054.18 | 104,347,852.69 |
29. Other Accounts Payable
1. Overview
(1)Classification
| Items | Balance at End of Period | Balance at Beginning of Year |
| Interest Payable | 21,082,795.47 | 21,082,795.47 |
| Dividends Payable | 3,213,302.88 | 3,213,302.88 |
| Other Accounts Payable | 59,703,587.21 | 49,689,488.04 |
| In total | 83,999,685.56 | 73,985,586.39 |
2.Interest Payable
(1)Classification
| Items | Balance at End of Period | Balance at Beginning of Year |
| Loan Interest between Enterprises | 21,082,795.47 | 21,082,795.47 |
| In total | 21,082,795.47 | 21,082,795.47 |
3.Dividends Payable
(1)Classification
| Items | Balance at End of Period | Balance at Beginning of Year |
| Common stock dividends | ||
| Others | 3,213,302.88 | 3,213,302.88 |
| In total | 3,213,302.88 | 3,213,302.88 |
4.Other Accounts Payable
(1)List of Other Accounts Payable by Nature of Funds
| Items | Balance at End of Period | Balance at Beginning of Year |
| Guaranteed Deposit and Deposit | 18,847,429.40 | 25,053,238.93 |
| Intercourse Funds between Units | 27,733,578.06 | 9,931,464.29 |
| Intercourse Funds of Related Parties | 3,070,641.51 | 5,722,550.45 |
| Personal Intercourse Funds | 3,829,316.55 | 4,032,688.22 |
| Various Insurances of Employee | 2,507,094.75 | 2,768,202.89 |
| Others | 3,715,526.94 | 2,181,343.26 |
| In total | 59,703,587.21 | 49,689,488.04 |
30. Non-current liabilities due within one year
| Item | End balance | Beginning balance |
| Current portion of lease liability | 1,432,706.14 | 1,582,978.69 |
| Total | 1,432,706.14 | 1,582,978.69 |
31. Other current liability
1.Other current liability statement
| Item | End balance | Beginning balance |
| Value-added tax to be written off | 56,184,255.30 | 22,994,553.60 |
| Total | 56,184,255.30 | 22,994,553.60 |
32. Long term borrowing
| Item | End balance | Beginning balance | Interest Rate |
| Guaranteed Loan | 500,284,166.67 | 71,000,000.00 | 2.40%；3.51% |
| Total | 500,284,166.67 | 71,000,000.00 |
33. Lease liability
| Item | End balance | Beginning balance |
| Lease liability | 704,390.98 | 1,694,702.62 |
34. Long term wage payable
1.List of long-term wage payable
| Items | Balance at End of Period | Balance at Beginning of Year |
| Net liabilities of defined benefit plan in post employment benefits | ||
| Dismission Welfare | ||
| Other Long-term Welfare | 5,677,134.00 | 5,677,134.00 |
| In total | 5,677,134.00 | 5,677,134.00 |
35. Deferred Income
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period | Cause of Formation |
| Government Subsidy | 65,244,499.48 | 2,626,900.00 | 3,320,482.12 | 64,550,917.36 | |
| In total | 65,244,499.48 | 2,626,900.00 | 3,320,482.12 | 64,550,917.36 |
Among them, items involving government subsidy are as follows:
| Items Receiving Subsidy | Balance at Beginning of Year | Increase in the Current Period | Charge to other Profits | Other changes | Balance at End of Period | Asset related / income related |
| Enterprise foundation supporting in the construction stage of "Tianjin Lingang Industrial Zone Management Committee" | 48,651,619.45 | 1,277,504.16 | 47,374,115.29 | Asset related | ||
| Special subsidy for infrastructure investment | 9,387,794.81 | 867,756.91 | 8,520,037.90 | Asset related | ||
| The relocation compensation | 3,847,638.14 | 384,763.82 | 3,462,874.32 | Asset related |
| Items Receiving Subsidy | Balance at Beginning of Year | Increase in the Current Period | Charge to other Profits | Other changes | Balance at End of Period | Asset related / income related |
| Subsidized by Beijing Municipal Food and Strategic Reserves Bureau for "Tank Expansion and Winterization Renovation Project | 2,626,900.00 | 104,242.06 | 2,522,657.94 | Asset related | ||
| Tianjin Binhai New District’s Industrially Technical Renovation and Park Construction Funds as well as Expenditures for Science and Technology | 1,870,370.21 | 222,222.24 | 1,648,147.97 | Asset related | ||
| Key technology research and industrialization project of "moderate processing" of grain and oil | 700,549.40 | 77,838.84 | 622,710.56 | Asset related | ||
| Construction of provincial grain reserve information management system to form asset entry project | 433,059.98 | 200,686.32 | 232,373.66 | Asset related | ||
| Design of electric heating system for oil tank | 223,999.76 | 56,000.04 | 167,999.72 | Asset related | ||
| Special subsidies for Beijing Reserve Granary Facility Maintenance | 129,467.73 | 129,467.73 | Asset related | |||
| In total | 65,244,499.48 | 2,626,900.00 | 3,191,014.39 | 129,467.73 | 64,550,917.36 |
36. Share Capital
| Items | Balance at Beginning of Year | Changes in the Current Period（+、-） | Balance at End of Period | ||||
| New Share Issue | Share Donation | Share Transfer of Provident Fund | Others | Sub-total | |||
1. Shares with
RestrictedConditions
| 1. Shares with Restricted Conditions | 42,459,387.00 | -1,299,500.00 | -1,299,500.00 | 41,159,887.00 |
(1) State
Shareholding
| (1) State Shareholding |
(2) State-
owned Legal-personShareholding
| (2) State-owned Legal-person Shareholding | 149,500.00 | -149,500.00 | -149,500.00 |
| Items | Balance at Beginning of Year | Changes in the Current Period（+、-） | Balance at End of Period | ||||
| New Share Issue | Share Donation | Share Transfer of Provident Fund | Others | Sub-total | |||
(3) Other
DomesticCapitalShareholding
| (3) Other Domestic Capital Shareholding | 42,309,887.00 | -1,150,000.00 | -1,150,000.00 | 41,159,887.00 |
Including:
DomesticLegal-personShareholding
| Including: Domestic Legal-person Shareholding | 1,150,000.00 | -1,150,000.00 | -1,150,000.00 |
DomesticNatural PersonShareholding
| Domestic Natural Person Shareholding | 41,159,887.00 | 41,159,887.00 |
(4) Foreign
Shareholding
| (4) Foreign Shareholding |
Including:
Foreign Legal-personShareholding
| Including: Foreign Legal-person Shareholding |
ForeignNatural PersonShareholding
| Foreign Natural Person Shareholding |
2. Tradable
Shares withoutRestrictedConditions
| 2. Tradable Shares without Restricted Conditions | 684,490,864.00 | 1,299,500.00 | 1,299,500.00 | 685,790,364.00 |
(1) RMB
OrdinaryShares
| (1) RMB Ordinary Shares | 619,515,864.00 | 1,299,500.00 | 1,299,500.00 | 620,815,364.00 |
(2)DomesticallyListed ForeignShares
| (2) Domestically Listed Foreign Shares | 64,975,000.00 | 64,975,000.00 |
(3) Listed
Foreign SharesOverseas
| (3) Listed Foreign Shares Overseas |
(4) Others
| (4) Others |
In total
| In total | 726,950,251.00 | 726,950,251.00 |
37. Capital Reserves
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| Capital Premium (Stock Premium) | 1,322,887,986.38 | 1,322,887,986.38 | ||
| Capital Reserves Roll-in Under Original System | 112,316,357.36 | 112,316,357.36 | ||
| Other Capital Reserves | 240,714,007.21 | 2,760,000.00 | 243,474,007.21 | |
| In total | 1,675,918,350.95 | 2,760,000.00 | 1,678,678,350.95 |
Note: The increase of capital reserve was due to the funds received from the parent company, BeijingCapital Agriculture Group, for technology projects of RMB2.76 million.
38. Other Comprehensive Incomes
| Items | Amounts Occurred in the Current Period | |||||||
| Balance at Beginning of Year | Amounts Occurred before Income Tax in the Current Period | Less: Other Comprehensive Incomes Charged at Earlier Stage and Current Roll-in Profit and Loss | Less: included in other comprehensive income in the previous period and transferred to retained income in the current period | Less: Income Tax Expense | Attributable to Parent Company After Tax | Attributable to Minority Shareholders After Tax | Balance at End of Period | |
| One Other comprehensive incomes that won’t be classified into profit and loss | ||||||||
| 1. Remeasure and set the change amount of benefit plan | ||||||||
| 2. Other comprehensive income that cannot be transferred to profits and losses under the equity method | ||||||||
| 3. Changes in the fair value of other equity instrument investments | ||||||||
| 4. Changes in fair value of the enterprise's own credit risk | ||||||||
| Two Other comprehensive incomes that will be classified into profit and loss | -682,282.22 | 1,688,002.72 | 1,688,002.72 | 1,005,720.50 | ||||
| 1. Other comprehensive income transferable to profit and loss under the equity method | -460,842.50 | 460,842.50 | 460,842.50 | |||||
| 2. Changes in the fair value of other debt investments | ||||||||
| 3. Amount of financial assets reclassified into other comprehensive income | ||||||||
| 4. Provision for credit impairment of other debt investment | ||||||||
| 5. Effective part of cash flow hedging | ||||||||
| 6. Converted difference between foreign currency financial statements | -221,439.72 | 1,227,160.22 | 1,227,160.22 | 1,005,720.50 | ||||
| Total | -682,282.22 | 1,688,002.72 | 1,688,002.72 | 1,005,720.50 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
39. Surplus Reserves
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| Statutory Surplus Reserves | 84,487,609.05 | 84,487,609.05 | ||
| Free Surplus Reserves | 37,634,827.93 | 37,634,827.93 | ||
| In total | 122,122,436.98 | 122,122,436.98 |
40. Undistributed Profit
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Adjustment on undistributed profit at end of last year | 391,493,534.34 | 187,033,763.26 |
| Adjustment on total number of undistributed profit at beginning of period (increase+ and decrease-) | ||
| Adjusted undistributed profit at beginning of period | 391,493,534.34 | 187,033,763.26 |
| Add: net profit attributable to parent company in the current period | 141,411,141.28 | 204,459,771.08 |
| Less: withdrawal legal surplus reserves | ||
| Withdrawal free surplus reserves | ||
| Withdrawal general risk reserves | ||
| Ordinary stock dividends payable | ||
| Ordinary stock dividends transferred to capital | ||
| Undistributed profit at end of period | 532,904,675.62 | 391,493,534.34 |
41. Operation Revenue and Operation Cost
1.Operation Revenue and Operation Cost
| Items | Amounts in the Current Period | Amounts in the Prior Period | ||
| Revenue | Cost | Revenue | Cost | |
| Prime Business | 12,814,528,584.23 | 12,224,032,469.41 | 11,728,067,785.65 | 11,016,949,345.82 |
| Other Business | 43,345,717.49 | 13,538,869.90 | 35,026,049.91 | 20,205,123.68 |
| In total | 12,857,874,301.72 | 12,237,571,339.31 | 11,763,093,835.56 | 11,037,154,469.50 |
2.Prime Business (Industry and Business-classified)
| Name of Industry (or Business) | Amounts in the Current Period | Amounts in the Prior Period | ||
| Revenue | Cost | Revenue | Cost | |
| Oil and Oil Seeds | 11,857,382,115.06 | 11,472,403,697.44 | 10,791,474,243.86 | 10,317,711,108.68 |
| Food Processing | 929,325,889.95 | 726,226,631.28 | 920,002,290.84 | 694,188,764.74 |
| Others | 27,820,579.22 | 25,402,140.69 | 16,591,250.95 | 5,049,472.40 |
| In total | 12,814,528,584.23 | 12,224,032,469.41 | 11,728,067,785.65 | 11,016,949,345.82 |
3. Prime Business (Region-classified)
| Name of Region | Amounts in the Current Period | Amounts in the Prior Period | ||
| Revenue | Cost | Revenue | Cost | |
| North China | 11,243,581,219.52 | 10,865,636,507.46 | 10,123,343,396.24 | 9,651,908,242.01 |
| East China | 708,145,491.41 | 548,423,074.04 | 686,657,679.09 | 512,187,178.67 |
| Northeast China | 144,611,739.42 | 117,785,852.01 | 137,074,930.91 | 111,781,498.62 |
| South East | 718,190,133.88 | 692,187,035.90 | 780,991,779.41 | 741,072,426.52 |
| In total | 12,814,528,584.23 | 12,224,032,469.41 | 11,728,067,785.65 | 11,016,949,345.82 |
42. Tariff And Annex
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Urban Maintenance and Construction Tax | 8,392,378.68 | 8,123,144.87 |
| Educational Surtax | 3,624,619.60 | 3,533,840.85 |
| Local Educational Surtax | 2,416,413.04 | 2,355,895.48 |
| House Property tax | 7,348,144.90 | 5,496,760.45 |
| Land Use Tax | 1,257,836.62 | 247,528.32 |
| Stamp Tax | 7,306,545.73 | 3,952,317.43 |
| Vehicle and Vessel Use Tax | 45,180.14 | 40,100.87 |
| Other Taxes and Fees | 94,011.04 | 39,411.60 |
| In total | 30,485,129.75 | 23,788,999.87 |
43. Sales Expenses
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Employee Compensation (including social security, etc) | 74,865,384.05 | 77,384,564.22 |
| Warehousing Fees | 25,934,599.40 | 11,180,870.38 |
| Depreciation | 15,817,872.17 | 13,626,528.80 |
| Sales Promotion Expenses | 15,397,370.72 | 24,192,308.99 |
| Operation Expenses | 13,233,177.70 | 3,122,152.06 |
| Travel Expenses | 5,280,805.02 | 6,561,854.51 |
| Lease fee | 3,070,223.37 | 2,000,200.72 |
| Repair Costs | 1,987,578.98 | 1,600,732.45 |
| Terminal Charges | 1,724,015.11 | 1,123,800.00 |
| Water and Electricity Fees | 1,378,704.72 | 1,225,185.96 |
| Material consumption, sample and product cost | 1,153,510.24 | 2,171,906.30 |
| Commodity Wastage | 775,915.68 | 116,599.55 |
| Vehicle Fees | 682,797.65 | 992,762.32 |
| Commercial Insurance Expenses | 289,252.25 | 14,344.90 |
| Test and Detection Fees | 177,247.52 | 226,300.00 |
| Packing Expenses | 109,762.53 | 300,227.81 |
| Business Entertainment Expenses | 24,672.00 | 212,052.40 |
| Labor Protection Fees | 139,738.67 | 185,886.35 |
| Others | 1,888,072.26 | 1,077,840.52 |
| Total | 163,930,700.04 | 147,316,118.24 |
44. Administration Expenses
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Employee Compensation (including social security, etc) | 138,464,028.57 | 121,587,427.82 |
| Impairment Costs | 18,159,768.04 | 18,237,865.60 |
| Amortization of Assets | 15,771,966.91 | 15,563,814.96 |
| Fees of Employing Agent | 8,709,204.04 | 13,163,766.91 |
| Company Expenses | 7,631,234.58 | 7,442,124.18 |
| Repair Costs | 3,334,959.13 | 3,259,784.08 |
| Lease fee | 3,882,289.68 | 3,039,488.99 |
| Vehicle Fees | 2,145,027.56 | 2,675,743.19 |
| Security Protection Fees | 1,242,530.60 | 1,469,824.47 |
| Information Network Fees | 1,229,220.31 | 1,312,483.04 |
| Environmental Protection Fees | 1,257,895.61 | 1,304,184.21 |
| Business Entertainment Expenses | 665,034.02 | 1,089,431.81 |
| Commercial Insurance Expenses | 1,008,045.58 | 995,916.41 |
| Workers Insurance Expenses | 951,043.23 | 956,937.28 |
| Travel Expenses | 513,023.38 | 713,609.91 |
| Material Consumption | 602,254.49 | 616,035.77 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Labor Protection Fees | 468,689.86 | 489,960.00 |
| Taxes in Expenses | 283,703.44 | 222,145.86 |
| Other Expenses | 3,286,845.39 | 4,627,347.70 |
| In total | 209,606,764.42 | 198,767,892.19 |
45. Research and Development Expenses
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Salary | 9,938,209.22 | 8,705,588.81 |
| Material consumption | 3,195,077.96 | 2,434,367.21 |
| Design expense | 566,037.72 | 391,188.30 |
| Transportation Expense | 35,350.00 | 35,559.99 |
| Others | 656,689.27 | 483,243.65 |
| In total | 14,391,364.17 | 12,049,947.96 |
46. Financial Expenses
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Interest Expenses | 46,001,727.19 | 42,302,007.06 |
| Less: Interest Income | 26,078,234.77 | 26,216,178.46 |
| Exchange Profit and Loss | 1,135,096.75 | 82,807.14 |
| Service Charges | 4,573,991.30 | 4,954,473.93 |
| In total | 25,632,580.47 | 21,123,109.67 |
47. Other Profits
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Government Subsidy Related to Daily Corporate Activities | 15,640,947.01 | 13,801,864.25 |
| Return of Service Charges of Withholding Individual Income Tax | 140,778.62 | 642,939.07 |
| Refund of VAT and surtax | 90,280.00 | |
| In total | 15,781,725.63 | 14,535,083.32 |
48. Investment Income
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Long-term equity investment income accounted with equity method | 12,293,636.95 | 37,822,580.24 |
| Investment income from disposal of wealth management products | 5,161,567.20 | |
| Investment income of disposing trading financial asssets | 267,083.33 | 672,498.85 |
| Investment income obtained during the holding of transactional financial assets | 751,411.16 | 387,257.58 |
| Others | -9,059.80 | -4,126.16 |
| In total | 13,303,071.64 | 44,039,777.71 |
49. Profits on Changes in Fair Value
| Source of generating income with changes in fair value | Amounts in the Current Period | Amounts in the Prior Period |
| Financial assets that are measured as per fair value and for which the changes are included in the current profit and loss | 61,032,222.12 | -66,667,420.88 |
| Including: income with changes in fair value generated by derivative financial instruments | 61,032,222.12 | -66,667,420.88 |
| Trading financial liabilities | ||
| Investment real estate measured by fair value | ||
| In total | 61,032,222.12 | -66,667,420.88 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
50. Credit impairment loss
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Accounts receivable bad debt loss | -2,012,156.44 | -445,289.20 |
| Other receivables bad debt loss | 7,500.00 | -94,234.26 |
| Total | -2,004,656.44 | -539,523.46 |
51. Loss from Asset Devaluation
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Loss on Bad Debts | ||
| Loss on Inventory Price Drop | -43,736,036.29 | -306,388.07 |
| In total | -43,736,036.29 | -306,388.07 |
52. Assets Disposal Income
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Gains or losses on disposal of fixed assets | 466,027.43 | -208,369.12 |
| In total | 466,027.43 | -208,369.12 |
53. Non-operating Income
1.Classification
| Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
| Total non current assets retirement gains: | 2,057.52 | 72,098.18 | 2,057.52 |
| Including: fixed assets scrap profit | 2,057.52 | 72,098.18 | 2,057.52 |
| profit from scrap of intangible assets | |||
| Penalty income | 4,251,520.44 | 994,966.56 | 4,251,520.44 |
| Payable amounts not required to be paid | 487,200.03 | 487,265.26 | 487,200.03 |
| Government Subsidy | 4,502.00 | 174,221.00 | 4,502.00 |
| Relocation Compensation | 98,462.04 | 144,789.85 | 98,462.04 |
| Other Gains | 512,488.91 | 194,032.35 | 512,488.91 |
| In total | 5,356,230.94 | 2,067,373.20 | 5,356,230.94 |
2.Government Subsidy Charged to Non-recurring Profit and Loss
| Subsidy projects | Amounts in the Current Period | Amounts in the Prior Period | Asset related / income related |
| Relocation Compensation | 119,121.00 | Income related | |
| Incentive Funds | 45,100.00 | Income related | |
| Special subsidies for the activities of "two new" organisations | 10,000.00 | Income related | |
| Party fee of Jinnan Street Working Committee Party construction signage production fee | 4,502.00 | Income related | |
| Total | 4,502.00 | 174,221.00 | - |
54. Non-operating Expenses
| Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
| Total loss on scrap of non current assets | 114,754.83 | 157,143.75 | 114,754.83 |
| Including: loss on scrap of fixed assets | 114,754.83 | 157,143.75 | 114,754.83 |
| Penalty expenditure | 24,500.00 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
| Others | 1,017,600.52 | 146,997.54 | 1,017,600.52 |
| Total | 1,132,355.35 | 328,641.29 | 1,132,355.35 |
55. Income Tax Expenses
(1) List of Income Tax Expenses
(2)Accounting Profit and Income Tax Expense Adjustment Process
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Total Profits | 225,322,653.24 | 315,485,189.54 |
| Income tax expenses calculated by statutory/applicable tax rate | 56,330,663.31 | 78,871,297.39 |
| Effect of subsidiary corporations being applicable to different tax rates | 104,073.45 | -1,844,755.24 |
| Adjustment on effect of income tax in the prior period | -224,302.58 | 2,489,564.19 |
| Effect of Non-taxable Incomes | -1,455,172.84 | -5,760,010.74 |
| Effect of Non-deductible cost, expense and loss | -628,063.16 | -879,902.43 |
| Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior period | -4,808,099.36 | -5,363,511.97 |
| Effect of deductible temporary difference or deductible loss on unconfirmed deferred income tax in the current period | 15,394,079.34 | 9,498,499.81 |
| Effect of deductions | -3,641,890.90 | -795,213.37 |
| Others | 35,499.96 | |
| Income Tax Expenses | 61,071,287.26 | 76,251,467.60 |
56. Other comprehensive income items and their income tax impact and transferred to profitand lossSee details of ‘Appendix Six Notes on Items in Consolidated Financial Statements, 38 OtherComprehensive Incomes’
57. Notes to items related cash flow statement
(1) Receiving other cash related to operation activities
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Future Margins | 1,820,481,225.64 | 1,459,292,560.77 |
| Intercourse Funds of Other Units | 534,241,370.31 | 106,778,161.58 |
| Interest Income | 26,078,234.77 | 17,053,537.35 |
| Intercourse Funds of Related Parties | 3,821,301.49 | 3,304,968.87 |
| Non-operating Income and other income | 10,776,175.29 | 4,106,124.86 |
| Others | 2,634,069.26 | 3,238,949.73 |
| Total | 2,398,032,376.76 | 1,593,774,303.16 |
(2) Other Cash Payment Related to Operation Activities
| Amounts in the Current Period | Amounts in the Prior Period | Amounts in the Current Period |
| Income Tax Expenses of the Current Period | 59,796,486.70 | 106,340,597.83 |
| Deferred Income Tax Expenses | 1,274,800.56 | -30,089,130.23 |
| Total | 61,071,287.26 | 76,251,467.60 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Future Margins | 2,497,012,200.80 | 1,594,071,648.75 |
| Payment for Administration Expenses | 36,287,576.64 | 43,378,783.81 |
| Intercourse Funds of Other Units | 738,586,568.78 | 13,893,169.13 |
| Payment for Operating Expenses | 59,884,525.22 | 56,305,025.22 |
| Intercourse Funds of Related Parties | 3,542,441.19 | 7,669,514.72 |
| Bank Charges | 4,573,991.30 | 4,879,506.88 |
| Petty Cash Paid | 198,860.83 | |
| Non-operating Expenses | 319,994.72 | 90,694.64 |
| Others | 7,399,437.03 | 6,689,174.26 |
| In total | 3,347,606,735.68 | 1,727,176,378.24 |
(3) Other cash received related to financing activities
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Subsidies related to R&D from Beijing Capital Agriculture Group | 2,760,000.00 | 1,090,000.00 |
| In total | 2,760,000.00 | 1,090,000.00 |
(4) Other cash paid related to financing activities
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Lease payment amount | 1,238,815.56 | 937,516.52 |
| In total | 1,238,815.56 | 937,516.52 |
58. Supplementary Materials of Cash Flows Statement
(1) Supplementary Materials of Cash Flows Statement
| Supplementary Materials | Amounts in the Current Period | Amounts in the Prior Period |
| 1. Adjusting net accounting profit to operating cash flow | ||
| Net Profit | 164,251,365.98 | 239,233,721.94 |
| Add: Assets Impairment Reserves | 43,736,036.29 | 306,388.07 |
| Credit impairment loss | 2,004,656.44 | 539,523.46 |
| Fixed Assets Depreciation, Oil-and-gas Assets Depreciation and Productive Biological Assets Depreciation | 101,992,898.00 | 98,490,827.18 |
| Amortization of Intangible Assets | 14,949,175.38 | 14,810,005.45 |
| Amortization of Long-term Deferred Expenses | 1,574,060.61 | 798,985.59 |
| Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets (Fill in profit with symbol “－”) | -311,079.19 | 208,369.12 |
| Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) | 112,697.31 | 85,045.57 |
| Losses on Changes in Fair Value (Fill in profit with symbol “－”) | -61,032,222.12 | 66,667,420.88 |
| Financial Expenses (Fill in profit with symbol “－”) | 46,001,727.19 | 42,302,007.06 |
| Investment Losses (Fill in profit with symbol “－”) | -13,303,071.64 | -44,039,777.71 |
| Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) | -618,700.74 | -10,224,248.92 |
| Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) | 1,154,250.79 | -19,864,881.31 |
| Decrease in Inventory (Fill in increase with symbol “－”) | -214,308,147.68 | -682,307,723.74 |
| Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) | -261,629,758.95 | 461,225,511.97 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Supplementary Materials | Amounts in the Current Period | Amounts in the Prior Period |
| Increase in Items of Operating Receivables (Fill in decrease with symbol “－”) | -357,804,834.70 | 464,008,881.83 |
| Others | ||
| Net Cash Flows from Operating Activities | -533,230,947.03 | 632,240,056.44 |
| 2. Major investment and financing activities that do not involve cash payments | ||
| Conversion of Debt into Capital | ||
| Convertible Bonds Due Within One Year | ||
| Fixed Assets under Financing Lease | ||
| 3. Net change conditions in cash and cash equivalents | ||
| Cash balance at end of period | 551,439,110.07 | 506,928,810.69 |
| Less: cash balance at beginning of period | 506,928,810.69 | 334,389,017.41 |
| Add: balance of the cash equivalents at end of period | ||
| Less: balance of the cash equivalents at beginning of period | ||
| Cash and cash equivalent net increase quota | 44,510,299.38 | 172,539,793.28 |
(2) Composition of cash and cash equivalents
| Items | Balance at End of Period | Balance at Beginning of Period |
| One Cash | 551,439,110.07 | 506,928,810.69 |
| Including: cash in stock | 10,693.10 | 15,012.17 |
| Bank deposit available for payment at any time | 531,515,415.66 | 465,650,779.09 |
| Other currency funds available for payment at any time | 19,913,001.31 | 41,263,019.43 |
| Deposits with central bank available for payment | ||
| Interbank deposit | ||
| Interbank placements | ||
| Two Cash Equivalents | ||
| Including: bond investment maturing within three months | ||
| Three Balance of Cash and Cash Equivalents at End of Period | 551,439,110.07 | 506,928,810.69 |
| Including: restricted cash and cash equivalents used by parent company or intra-group affiliates |
59. Assets with restricted ownership or right to use
| Items | Book Value at End of Period | Reasons being Restricted |
| Currency Funds | 9,573,999.69 | use restriction |
| Investment Real Estate | 5,539,676.69 | Litigation Freeze |
| Fixed Assets | 5,408,424.76 | Litigation Freeze |
| In total | 20,522,101.14 |
60. Monetary Items of Foreign Currency
(1) Monetary Items of Foreign Currency
| Items | Balance of Foreign Currency at End of Period | Exchange Rate Convert | Balance of Converting to RMB at End of Period |
| Monetary fund | 3,744,396.83 | 6.9646 | 26,078,226.16 |
| Including: US Dollars | 3,744,396.83 | 6.9646 | 26,078,226.16 |
| Short-term borrowing | 30,000,000.00 | 6.9646 | 208,938,000.00 |
| Including: US Dollars | 30,000,000.00 | 6.9646 | 208,938,000.00 |
(2) Instruction of Operational Entity Overseas
The registrant and operating unit of the Company is Beijing Grain (Singapore) International TradeCo., Ltd. with main business place of Singapore and recording currency of US Dollars.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
61. Hedging items and related hedging instruments
Please refer to 22. Derivative financial liability under Section VI of the Notes.
62. Government Subsidies
（1）Basic conditions of government grants
| Type | Amount | Presentation item | Amount recorded in profit and loss |
| VAT refunds | 8,038,527.08 | Other income | 8,038,527.08 |
| Special subsidy funds for infrastructure support fees | 63,130,000.00 | Deferred income、Other income | 1,277,504.16 |
| Special subsidy for infrastructure input | 18,176,788.00 | Deferred income | 867,756.91 |
| Lin'an Economic Information Bureau technical transformation subsidy | 840,000.00 | Other income | 840,000.00 |
| One-off training allowance for workers | 678,600.00 | Other income | 678,600.00 |
| Subsidy for job stabilization | 720,380.96 | Other income | 720,380.96 |
| Tianjin Port Free Trade Zone Development and Reform Bureau 2020 the first to fourth batch of Tianjin special fund for energy conservation | 522,000.00 | Other income | 522,000.00 |
| Lin 'an employment management unemployment compensation | 403,625.43 | Other income | 403,625.43 |
| Compensation for demolition and relocation | 7,695,276.34 | Deferred income、Other income | 384,763.82 |
| Tianjin Binhai New Area industrial technological transformation and park construction funds and science and technology expenditure | 4,000,000.00 | Deferred income、Other income | 222,222.24 |
| Provincial grain reserve information management system construction | 633,746.30 | Deferred income、Other income | 200,686.32 |
| Subsidy for the operation of the home for the disabled | 339,186.70 | Other income | 339,186.70 |
| Training subsidies | 180,000.00 | Other income | 180,000.00 |
| Absorb the VAT credit for the employment of ex-soldiers | 162,000.00 | Other income | 162,000.00 |
| Economic and Information Bureau Project Subsidy | 150,000.00 | Other income | 150,000.00 |
| Beijing Municipal Food and Material Reserve Bureau "Oil Tank Expansion and Winter Transformation Project" subsidy fund | 2,626,900.00 | Deferred income、Other income | 104,242.06 |
| Transfer training subsidies | 87,000.00 | Other income | 87,000.00 |
| Tianjin Port Free Trade Zone Finance Bureau Intelligent Manufacturing Special Fund (municipal part) | 80,000.00 | Other income | 80,000.00 |
| Oil and fat enzymatic moderate refining sets of equipment | 1,089,743.60 | Deferred income、Other income | 77,838.84 |
| Research and technology demonstration of green and clean production equipment and technology of edible oil | 70,040.65 | Other income | 70,040.65 |
| Green cleaning and oil tank electric | 855,179.48 | Deferred | 56,000.04 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Type | Amount | Presentation item | Amount recorded in profit and loss |
| heating | income、Other income | ||
| Tianjin Port Free Trade Zone Finance Bureau Intelligent Manufacturing Special Fund (district-level part) | 50,000.00 | Other income | 50,000.00 |
| Security work funds | 25,000.00 | Other income | 25,000.00 |
| The first batch of municipal special funds for intelligent manufacturing in 2021 by the Finance Bureau of Tianjin Port Free Trade Zone | 20,000.00 | Other income | 20,000.00 |
| The top ten tax payers in 2021 | 20,000.00 | Other income | 20,000.00 |
| Logistics subsidies for industrial enterprises under the financial pull-out | 15,359.00 | Other income | 15,359.00 |
| Subsidies for building a food security system in 2021 | 15,000.00 | Other income | 15,000.00 |
| Food emergency fund | 15,000.00 | Other income | 15,000.00 |
| The disabled employment subsidy | 12,060.00 | Other income | 12,060.00 |
| CPC Jinnan Street Working Committee Party construction sign production fee subsidy | 4,502.00 | Non-operating income | 4,502.00 |
| Allocate funds for employment assistance | 3,000.00 | Other income | 3,000.00 |
| Lin 'an District employment administration employment subsidy | 1,500.00 | Other income | 1,500.00 |
| “Xiaoshushuo” packaging patent subsid | 1,000.00 | Other income | 1,000.00 |
| Tianjin Binhai New Area Development and Reform Commission market monitoring information fee | 652.80 | Other income | 652.80 |
| In total | 110,662,068.34 | 15,645,449.01 |
VII. Change in Consolidation ScopeDuring this reporting period, the company newly invested and established Jingliang (Beijing) FoodMarketing Management Co., Ltd., and cancelled Jingliang Rural Complex Construction and Operations(Xinyi) Co., Ltd.,. A total of 18 subsidiaries of the Company were included in the scope of consolidationon 31 December, 2022VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
| Name of Subsidiary | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Voting rights ratio (%) | Mode of Acquisition | |
| Direct | Indirect | ||||||
| Beijing Jingliang Food Co., Ltd. | Beijing | Beijing | Investment management | 100 | 100 | Merger under the same control | |
| Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | Tianjin | Tianjin | Agricultural Product and By Product Processing | 70 | 70 | Merger under the same control | |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Name of Subsidiary | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Voting rights ratio (%) | Mode of Acquisition | |
| Direct | Indirect | ||||||
| Beijing Jingliang Oil and Fat Co., Ltd. | Beijing | Beijing | Grain and oil trade | 100.00 | 100.00 | Merger under the same control | |
| Jingliang (Hebei) Oil Industry Co., Ltd. | Hebei | Hebei | Agricultural Product and By Product Processing | 51.00 | 51.00 | Merger under the same control | |
| Beijing Guchuan Edible Oil Co., Ltd. | Beijing | Beijing | Grain and oil trade | 100.00 | 100.00 | Merger under the same control | |
| Beijing Eisen-Lubao Oil Co., Ltd. | Beijing | Beijing | Agricultural Product and By Product Processing | 100.00 | 100.00 | Merger under the same control | |
| Beijing Tianweikang Oil Distribution Center Co., Ltd. | Beijing | Beijing | Warehousing | 100.00 | 100.00 | Merger under the same control | |
| Beijing Guchuan Bread Food Co., Ltd. | Beijing | Beijing | Food Processing | 100.00 | 100.00 | Merger under the same control | |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Hangzhou Lin'an Xiaotianshi Food Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Liaoning Xiao Wang Zi Food Co., Ltd. | Liaoning | Liaoning | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Linqing Xiao Wang Zi Food Co., Ltd. | Linqing | Linqing | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Lin'an Chunmanyuan Agricultural Development Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Jingliang (Singapore) International Trade Co., Ltd. | Singapore | Singapore | Grain trade | 100.00 | 100.00 | Establishment by investment | |
| Jingliang Rural Complex Construction and Operations (Xinyi) Co., Ltd. | Xinyi | Xinyi | Land remediation | 51.00 | 51.00 | Establishment by investment | |
| Jingliang (Caofeidian) Agricultural Development Co., Ltd. | Tangshan | Tangshan | Plantation | 51.00 | 51.00 | Establishment by investment | |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Name of Subsidiary | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Voting rights ratio (%) | Mode of Acquisition | |
| Direct | Indirect | ||||||
| Beijing jingliang gubi oil and grease co. LTD | Beijing | Beijing | Grain and oil trade | 100 | 100 | Establishment by investment | |
| Jingliang (Yueyang) Grain and Oil Industry Co., Ltd. | Hunan | Hunan | Agricultural products | 65.00 | 65.00 | Establishment by investment | |
| Jingliang (Beijing) Food Marketing Management Co., Ltd | Beijing | Beijing | Commercial services | 100.00 | 100.00 | Establishment by investment | |
Note:Jingliang Rural Complex Construction and Operations (Xinyi) Co., Ltd has been cancelled duringthis reporting period.
(2)Major non-wholly-owned subsidiaries
| Name of Subsidiary | Shareholding Ratio of Minority Shareholders (%) | Voting rights ratio of Minority Shareholders (%) | Profit And Loss Attributable to Minority Shareholders for the Current Period | Dividends Distributed to Minority Shareholders for the Current Period | Balance of Minority Shareholder's Equity at the End of the Period |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | 5.1134 | 5.1134 | 4,725,053.79 | 5,113,400.00 | 52,252,502.68 |
| Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 30 | 30 | 17,397,621.09 | 284,008,095.75 | |
| Jingliang (Hebei) Oil Industry Co., Ltd. | 49 | 49 | 1,221,358.63 | 2,430,400.00 | 37,740,640.31 |
| Jingliang (Caofeidian) Agricultural Development Co., Ltd. | 49 | 49 | -1,253,708.09 | 26,623,337.13 |
(3) Important financial information on major non-wholly-owned subsidiaries
| Items | Ending balance or Amount incurred in the current period | |||
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | Jingliang (Hebei) Oil Industry Co., Ltd. | Jingliang (Caofeidian) Agricultural Development Co., Ltd. | |
| Current Assets | 694,319,525.47 | 1,765,160,961.33 | 300,661,982.97 | 52,730,171.41 |
| Non-current Assets | 344,517,064.82 | 729,047,006.26 | 78,258,110.59 | 6,473,916.95 |
| Total Assets | 1,038,836,590.29 | 2,494,207,967.59 | 378,920,093.56 | 59,204,088.36 |
| Current | 154,188,477.46 | 1,184,852,881.71 | 301,666,004.97 | 4,870,747.28 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Items | Ending balance or Amount incurred in the current period | |||
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | Jingliang (Hebei) Oil Industry Co., Ltd. | Jingliang (Caofeidian) Agricultural Development Co., Ltd. | |
| Liabilities | ||||
| Non-current Liabilities | 17,660,046.22 | 362,661,433.41 | 232,373.66 | |
| Total Liabilities | 171,848,523.68 | 1,547,514,315.12 | 301,898,378.63 | 4,870,747.28 |
| Operating Income | 856,340,284.62 | 6,622,948,465.03 | 477,411,579.82 | 2,805.00 |
| Net Profit (Loss) | 102,525,949.60 | 57,992,070.30 | 2,492,568.63 | -2,558,587.94 |
| Total Comprehensive Income | 102,525,949.60 | 57,992,070.30 | 2,492,568.63 | -2,558,587.94 |
| Cash Flow from Operating Activities | 17,184,906.38 | -838,336,853.05 | -13,671,746.40 | -4,948,561.32 |
(Continued)
| Items | Beginning balance or Amount incurred in the prior period | |||
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | Jingliang (Hebei) Oil Industry Co., Ltd. | Jingliang (Caofeidian) Agricultural Development Co., Ltd. | |
| Current Assets | 545,563,045.64 | 1,393,747,379.61 | 272,382,537.61 | 63,924,854.13 |
| Non-current Assets | 496,391,615.83 | 782,065,202.69 | 81,817,706.52 | 677,625.84 |
| Total Assets | 1,041,954,661.47 | 2,175,812,582.30 | 354,200,244.13 | 64,602,479.97 |
| Current Liabilities | 158,579,977.51 | 1,235,715,663.77 | 274,199,358.63 | 7,710,550.95 |
| Non-current Liabilities | 18,912,566.95 | 51,395,336.36 | 511,739.20 | |
| Total Liabilities | 177,492,544.46 | 1,287,111,000.13 | 274,711,097.83 | 7,710,550.95 |
| Operating Income | 827,007,026.15 | 4,636,677,763.70 | 399,581,771.45 | 18,556,537.62 |
| Net Profit (Loss) | 106,691,266.57 | 87,588,683.12 | 6,610,073.09 | 5,470,896.35 |
| Total Comprehensive Income | 106,691,266.57 | 87,588,683.12 | 6,610,073.09 | 5,470,896.35 |
| Cash Flow from Operating Activities | 116,629,645.06 | 724,136,543.87 | 108,028,487.75 | -3,617,581.51 |
2. Equity in Joint Ventures or Affiliates
1. Important Joint Ventures or Affiliates
| Name of Joint Venture or Affiliate | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Accounting Treatment Methods for Investment in Joint Ventures or Affiliates | |
| Direct | Indirect | |||||
| One Joint Ventures | ||||||
| 1. Beijing Zhengda Feed Co., Ltd. | Beijing | Beijing | Manufacturer | 50.00 | Equity method | |
| Two Affiliates | ||||||
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Name of Joint Venture or Affiliate | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Accounting Treatment Methods for Investment in Joint Ventures or Affiliates | |
| Direct | Indirect | |||||
| 1. SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | Tianjin | Tianjin | Transportation and warehousing | 30.00 | Equity method | |
| 2. Jingliang Missme Catering Management (Beijing) Co., Ltd. | Beijing | Beijing | Manufacturer | 48.00 | Equity method | |
2. Important financial information on major joint ventures
| Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
| Beijing Zhengda Feed Co., Ltd. | Beijing Zhengda Feed Co., Ltd. | |
| Current assets | 301,420,356.94 | 259,094,822.42 |
| Including: cash and cash equivalents | 21,778,758.99 | 30,509,860.94 |
| Non-current assets | 21,331,443.39 | 24,949,630.10 |
| Total assets | 322,751,800.33 | 284,044,452.52 |
| Current liabilities | 75,869,110.91 | 59,463,197.04 |
| Non-current liabilities | 4,593,536.23 | 5,112,214.50 |
| Total liabilities | 80,462,647.14 | 64,575,411.54 |
| Minority shareholder's equity | ||
| Shareholders' equity attributable to the parent company | 242,289,153.19 | 219,469,040.98 |
| Share of net assets based on shareholding ratio | 121,144,576.60 | 109,734,520.49 |
| Adjustments | ||
| -- Goodwill | ||
| -- Unrealized profits from internal transactions | ||
| -- Other | ||
| Book value of equity investment in joint ventures | 121,144,576.60 | 109,734,520.49 |
| Fair value of equity investment in joint ventures with open offers | ||
| Operating income | 333,958,015.25 | 369,615,151.09 |
| Financial costs | -6,897,167.49 | -5,587,491.34 |
| Income tax expense | 8,234,800.46 | 14,082,117.12 |
| Net profit | 24,398,297.21 | 43,173,099.79 |
| Net profit from discontinued operations | ||
| Other comprehensive income | -178,185.00 | -211,261.00 |
| Total comprehensive income | 24,220,112.21 | 42,961,838.79 |
| Dividends received from joint ventures in the current period |
3. Important financial information on major affiliates
| Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
| SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | |
| Current assets | 122,303,388.75 | 104,812,139.17 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
| SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | |
| Non-current assets | 816,481,284.48 | 555,196,631.04 |
| Total assets | 938,784,673.23 | 660,008,770.21 |
| Current liabilities | 110,559,868.69 | 32,099,278.71 |
| Non-current liabilities | 438,856,701.56 | 250,581,609.08 |
| Total liabilities | 549,416,570.25 | 282,680,887.79 |
| Minority shareholder's equity | ||
| Shareholders' equity attributable to the parent company | 389,368,102.98 | 377,327,882.42 |
| Share of net assets based on shareholding ratio | 116,810,430.89 | 113,198,364.73 |
| Adjustments | ||
| -- Goodwill | ||
| -- Unrealized profits from internal transactions | ||
| -- Others | ||
| Book value of equity investment in affiliates | 116,810,430.89 | 113,198,364.73 |
| Fair value of equity investment in affiliates with open offers | ||
| Operating income | 73,584,532.63 | 52,065,840.85 |
| Net profit | 12,040,220.56 | 7,936,827.63 |
| Net profit from discontinued operations | ||
| Other comprehensive income | ||
| Total comprehensive income | 12,040,220.56 | 7,936,827.63 |
| Dividends received from affiliates in the current period | 24,680,000.00 |
IX. Risks Related to Financial InstrumentsThe Company's principal financial instruments include equity investment, creditors' investment,borrowing, accounts receivable, accounts payable, etc. The primary purpose of these financial instrumentsis to finance the operations of the Company.The Company has a variety of other financial assets andliabilities 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 andmarket risk.
1. Classification of financial instruments
(1) Book value of various financial assets on the balance sheet date
A. December 31, 2022
| Financial asset items | Financial assets measured at amortized cost | Financial assets measured at fair value and the changes recorded in current profits and losses | Financial assets measured at fair value and the changes recorded in other comprehensive income | Total |
| Monetary funds | 561,013,109.76 | 561,013,109.76 | ||
| Transactional financial assets | 11,005,983.98 | 11,005,983.98 | ||
| Derivative financial assets | 201,549.12 | 201,549.12 | ||
| Accounts | 77,057,446.86 | 77,057,446.86 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Financial asset items | Financial assets measured at amortized cost | Financial assets measured at fair value and the changes recorded in current profits and losses | Financial assets measured at fair value and the changes recorded in other comprehensive income | Total |
| receivables | ||||
| Other receivables | 444,523,698.48 | 444,523,698.48 | ||
| Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 | ||
| Current portion of non-current assets | 148,387,894.16 | 148,387,894.16 | ||
| Other current assets | 405,999,000.00 | 165,881,137.81 | 571,880,137.81 | |
| Other non-current assets | 53,544,782.34 | 53,544,782.34 |
B. December 31, 2021
| Financial asset items | Financial assets measured at amortized cost | Financial assets measured at fair value and the changes recorded in current profits and losses | Financial assets measured at fair value and the changes recorded in other comprehensive income | Total |
| Monetary funds | 507,144,668.45 | 507,144,668.45 | ||
| Transactional financial assets | 40,377,048.08 | 40,377,048.08 | ||
| Derivative financial assets | ||||
| Accounts receivables | 82,694,094.62 | 82,694,094.62 | ||
| Other receivables | 284,756,636.27 | 284,756,636.27 | ||
| Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 | ||
| Current portion of non-current assets | 156,139,100.00 | 156,139,100.00 | ||
| Other current assets | 742,800,000.00 | 62,577,325.41 | 805,377,325.41 | |
| Other non-current assets | 189,741,996.74 | 189,741,996.74 |
(2) Book value of various financial liabilities on the balance sheet date
A. December 31, 2022
| Financial liability items | Financial liabilities measured at fair value and changes included in current profits and losses | Other financial liability | Total |
| Short term loans | 1,260,543,148.81 | 1,260,543,148.81 | |
| Derivative financial liability | 111,373,155.00 | 111,373,155.00 | |
| Notes payable | 3,331,333.80 | 3,331,333.80 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Financial liability items | Financial liabilities measured at fair value and changes included in current profits and losses | Other financial liability | Total |
| Accounts payable | 110,911,877.21 | 110,911,877.21 | |
| Other Payables | 83,999,685.56 | 83,999,685.56 | |
| Long term loans | 500,284,166.67 | 500,284,166.67 |
B. December 31, 2021
| Financial liability items | Financial liabilities measured at fair value and changes included in current profits and losses | Other financial liability | Total |
| Short term loans | 1,521,669,601.35 | 1,521,669,601.35 | |
| Derivative financial liability | 70,305,871.37 | 70,305,871.37 | |
| Accounts payable | 186,748,746.42 | 186,748,746.42 | |
| Other Payables | 73,985,586.39 | 73,985,586.39 | |
| Long term loans | 71,000,000.00 | 71,000,000.00 |
2. Credit Risk
On December 31, 2022, the largest credit risk exposure that may cause financial loss to the Companymainly comes from the loss on financial assets of the Company due to the failure of the other party to performits obligations, including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrumentmeasured at fair value, its book value reflects its risk exposure instead of their biggest risk exposure, and itsbiggest 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, setscorresponding credit periods based on customer’s financial position, possibility of obtaining guarantees fromthird parties, credit records and other factors such as current market conditions and other credit qualificationsfor customer assessment, and implements other monitoring procedures to ensure that necessary measures aretaken to recover overdue credits. In addition, the Company reviews the collection of individual accountreceivables on each balance sheet date in order to make sufficient provision for bad debts for collectableamounts. Therefore, the Company's management believes that the Company's credit risk has been greatlyreduced.
The liquidity funds of the Company are deposited in banks with high credit rating, so the credit risk ofliquidity funds is low.
3. Liquidity Risk
When managing liquidity risk, the Company keeps and monitors adequate cash and cash equivalentsapproved by its management in order to meet the Company's business needs and reduce the influences ofcash flow fluctuations. The Company's management monitors the use of bank loans and ensures theperformance of loan agreements.
Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
| Item | December 31, 2022 | |||
| Within One Year | 1 To 5 Years | Above Five Years | Total | |
| Short term loans | 1,260,543,148.81 | 1,260,543,148.81 | ||
| Derivative financial liability | 111,373,155.00 | 111,373,155.00 | ||
| Notes payable | 3,331,333.80 | 3,331,333.80 | ||
| Accounts payable | 106,405,184.62 | 4,506,692.59 | 110,911,877.21 | |
| Other Payables | 83,999,685.56 | 83,999,685.56 | ||
(Continued)
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Item | December 31, 2021 | |||
| Within One Year | 1 To 5 Years | Above Five Years | Total | |
| Short term loans | 1,521,669,601.35 | 1,521,669,601.35 | ||
| Derivative financial liability | 70,305,871.37 | 70,305,871.37 | ||
| Accounts payable | 185,082,028.27 | 1,666,718.15 | 186,748,746.42 | |
| Other Payables | 73,985,586.39 | 73,985,586.39 | ||
| Long term loans | 71,000,000.00 | 71,000,000.00 | ||
4. Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments willfluctuate due to the change of market price. Market risk mainly includes interest rate risk, foreignexchange risk and other price risks, such as equity instrument investment price risk.
(1) Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floatinginterest rates bring the Company the interest rate risk on cash flow, while the financial liabilities at fixedinterest rates bring the Company the interest rate risk on fair value. The Company decides the relativeproportion of fixed interest rate contracts and floating interest rate contracts according to the currentmarket environment.
As of December 31, 2022, the Company's interest-bearing liabilities under floating rate contractsdenominated in RMB amounted to RMB 1,110,543,148.81 and those under fixed rate contractsdenominated in RMB amounted to RMB 150,000,000.00.
(2) Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operatingactivities (when revenues and expenditures are settled in foreign currencies other than the Company'saccounting 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 someof the Company's subsidiaries purchase and sell in US dollars, other major business activities of theCompany are priced and settled in RMB.
As at December 31, 2022, the Company's assets and liabilities are in RMB, except the assets orliabilities described in the table below are in US dollars.
The foreign exchange risks arising from the assets and liabilities of such foreign currency balancesmay have an impact on the Company's operating results.
| Items | Ending Balance | Beginning Balance |
| Monetary funds | 26,078,226.16 | 23,046,783.19 |
| Short-term borrowing | 208,938,000.00 | 802,427,368.52 |
| Accounts payable | 595,286.36 |
Note: The Company pays close attention to the impact of exchange rate fluctuations on the Company.
The company adopts sensitivity analysis technology to analyze the possible impact of reasonable andpossible changes of risk variables on current profit and loss or owner's equity. As any risk variable rarelychanges in isolation, and the correlation between variables will have a significant effect on the final impactamount of a risk variable change, the following content is carried out under the assumption that the changeof each variable is independent.
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
On the assumption that foreign currency assets and foreign currency liabilities remain relatively stableand other variables remain unchanged, the after-tax impact of possible reasonable changes in exchange rateon current profits and losses and rights and interests is as follows:
| Item | Prior period | ||
| [US dollar] Exchange rate Increase / (decrease) | Gross profit/net profit increase /(decrease) | Increase/(decrease) in shareholders' equity | |
| The yuan depreciated against the US dollar | 5% | -38,998,793.58 | -38,998,793.58 |
| The yuan appreciated against the US dollar | -5% | 38,998,793.58 | 38,998,793.58 |
X. Disclosure of Fair Values
1. Fair values of assets and liabilities measured at fair value at the end of the period
| Item | Fair Values at the End of the Period | |||
| First Level Fair Value Measurement | Second Level Fair Value Measurement | Third Level Fair Value Measurement | Total | |
| One. Continuous fair value measurement | ||||
| Ⅰ. Transactional financial assets | 11,005,983.98 | 11,005,983.98 | ||
| 1. Financial assets that are measured at fair value and whose changes are included in the current profits and losses | 11,005,983.98 | 11,005,983.98 | ||
| (1) Investment in debt instruments | 11,005,983.98 | 11,005,983.98 | ||
| (2) Investment in equity instruments | ||||
| (3) Derivative financial assets | ||||
| 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 | 20,000,000.00 | 20,000,000.00 | ||
| Total assets continuously measured at fair value | 11,005,983.98 | 20,000,000.00 | 31,005,983.98 | |
Item
| Item | Current period | ||
| [US dollar] Exchange rate Increase /(decrease) | Gross profit/net profit increase /(decrease) | Increase/(decrease) in shareholders' equity | |
| The yuan depreciated against the US dollar | 5% | -9,142,988.69 | -9,142,988.69 |
| The yuan appreciated against the US dollar | -5% | 9,142,988.69 | 9,142,988.69 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Item | Fair Values at the End of the Period | |||
| First Level Fair Value Measurement | Second Level Fair Value Measurement | Third Level Fair Value Measurement | Total | |
| Ⅵ.Transactional financial liabilities | 111,373,155.00 | 111,373,155.00 | ||
| 1. Financial liabilities measured at fair value with changes included in current profits and losses | 111,373,155.00 | 111,373,155.00 | ||
| Including: transactional bonds issued | ||||
| derivative financial liability | 111,373,155.00 | 111,373,155.00 | ||
| others | ||||
| 2. Financial liabilities designated as fair value through profit or loss | ||||
| Total liabilities continuously measured at fair value | 111,373,155.00 | 111,373,155.00 | ||
2. Basis for determining market prices of continuous and non-continuous first level fair valuemeasurement itemsThe Company makes offers for first level fair value measurement according to open contracts of thefutures 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 valuationtechniques and qualitative and quantitative information of important parameters
The company‘s investment in other equity instruments of the third level fair value measurement projectis the ”three notes“ equity investment that without control, joint control and significant influence held by thecompany. On the basis of analyzing the operation status of the invested enterprise and combining withrelevant situations, the company takes the investment cost as the fair value of other equity instrumentinvestment for measurement at the end of the period.
XI. Related Parties and Related-Party Transactions
1. Identification criteria of related parties
If one party controls, jointly controls or exerts significant influence on the other party, and two ormore parties are controlled, jointly controlled or significantly influenced by the same party, they constituterelated parties.
2. Parent Company of the Company
| Name of Parent Company | Company type | Registered Place | Legal representative | Nature of Business | Registered Capital (ten thousand Yuan) |
| Beijing Grain Group Co. Ltd. | Wholly state-owned enterprise | Beijing | Zhang Lijun | Investment Management | 90,000.00 |
(Continued)
| Proportion of Shares Held by Parent Company in the Company (%) | Proportion of Voting Power Held by Parent Company in the Company (%) | The ultimate controlling party of the Company | Organization code |
| 39.68 | 39.68 | Beijing State-owned Capital Operation and Management Center | 91110000700224507H |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
3. Subsidiaries of the Company
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
4. Joint Ventures and Affiliates of the Company
See 3. Equity in Joint Ventures or Affiliates under Section VIII of the Notes for details.
5. Other Related Parties
| Name of Other Related Party | Relationship with the Company |
| Beijing Liubiju Food Co., Ltd | Controlled by the ultimate controlling party |
| Shanghai Shounong Investment Holdings 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 Guzhou Food Co., Ltd | Controlled by the ultimate controlling party |
| Hebei Sanyuan Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang E-Commerce Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Centennial Liyuan Ecological Agriculture Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Sanyuan Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Ershang Dahongmen Five Meat Union Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Heiliu Animal Husbandry Technology Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Ancient Ship Rice Industry Co., Ltd | Controlled by the ultimate controlling party |
| Hebei Luanping Huadu Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shoucheng Shanshui Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Baijiayi Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Lanfeng Vegetable Distribution Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jinggrain Oriental 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 West Suburb Grain and Oil Supply Station Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Food Supply Department No. 34 Supply Department Co., Ltd | Controlled by the ultimate controlling party |
| Beijing grain point to net (Beijing) Trading 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 Poverty Alleviation and Innovation Center Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Yunong Quality Agricultural Products Planting Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shounong Weiye Group Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Ershang Xijie Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Wang Zhihe Food Co., Ltd | Controlled by the ultimate controlling party |
| Hebei Shounong Modern Agricultural Technology Co., Ltd | Controlled by the ultimate controlling party |
| Shanghai Shouyu 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 Bioengineering 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 Faxi Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing North Jing Sugar and Wine Sales Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Ershang Jardine Sunshine Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shounong University Kitchen Supply Chain Management Group Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Taiyu Real Estate Co., Ltd | Controlled by the ultimate controlling party |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Name of Other Related Party | Relationship with the Company |
| Beijing Grain Science Research Institute Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Green Valley Trading Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Zhujun Grain and Oil Supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Logistics Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Sanjiadian Grain Collection and Storage Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Hongyuan Lijun Grain and Oil Supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Canal Grain and Oil Trading Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Kyoto Jingu Grain Purchase and Sales Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Children soldiers grain and oil supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Longqing Xiadu Military Food 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 Industry Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Biotechnology Group Co., Ltd | Controlled by the ultimate controlling party |
| Tianjin Xincheng Kangda Pharmaceutical Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Xing Fashion Trading 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 Grain Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shounong Grain Reserve Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Gurun Trading Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shounong Food Emergency Security Center Co., Ltd | Controlled by the ultimate controlling party |
6. Related-party Transactions
1. Related-party transactions for purchasing and selling goods and provision and acceptance oflabor services
(1) Purchase of goods or acceptance of labor services
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing Guzhou Food Co., Ltd | Purchase of goods | 6,710,236.13 | 17,625,723.68 |
| Beijing Ancient Ship Rice Industry Co., Ltd | Purchase of goods | 3,858,763.79 | |
| Beijing Huadu Liquor Marketing Co., Ltd | Purchase of goods | 3,467,637.93 | |
| Beijing Yueshengzhai Halal Food Co., Ltd | Purchase of goods | 1,108,183.58 | 562,891.05 |
| Beijing Jinggrain Oriental Grain and Oil Trading Co., Ltd | Purchase of goods | 654,830.57 | 405,452.28 |
| Beijing Shounong Grain Reserve Co., Ltd | Storage fees | 631,603.77 | 493,822.64 |
| Beijing Food Supply Department No. 34 Supply Department Co., Ltd | Purchase of goods | 361,095.16 | |
| Beijing Sanyuan Food Co., Ltd | Purchase of goods | 317,488.99 | 280,809.77 |
| Shandong Fukuan Bioengineering Co., Ltd | Purchase of goods | 1,117,661.96 | 780,495.67 |
| Beijing Ershang Meat and Food Group Co., Ltd | Purchase of goods | 175,954.99 | 394,945.43 |
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | Purchase of goods | 147,448.46 | |
| Shanghai Shounong Investment Holdings Co., Ltd | Purchase of goods | 65,000,554.51 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing heiliu Animal Husbandry Technology Co., Ltd | Purchase of goods | 44,080.83 | 203,640.70 |
| Other related units | Purchase of goods | 371,632.91 | 306,797.14 |
(2) Sale of goods/ provision of labor services
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Shanghai shounong Investment Holding Co., Ltd | Sale of goods | 214,613,311.32 | 639,999,993.00 |
| Beijing Wang Zhihe Food Co., Ltd | Sale of goods | 66,830,285.30 | |
| Hebei Luanping Huadu Foodstuff Co., Ltd. | Sale of goods | 24,869,269.53 | 9,820,008.43 |
| Hebei shounong Modern Agricultural Technology Co., Ltd | Sale of goods | 19,281,001.32 | 17,038,071.30 |
| Beijing Ershang Wangzhihe Food Co., Ltd. | Sale of goods | 17,523,217.37 | 62,085,307.44 |
| Beijing Capital Agriculture Group Co., Ltd | Provision of services | 11,113,947.81 | 599,999.98 |
| Shanghai Sunlon Investment Holding Co., Ltd | Provision of services | 5,392,403.90 | 12,533,333.63 |
| Beijing Ershang Xijie Foodstuff Co., Ltd. | Sale of goods | 7,764,752.62 | 9,367,917.44 |
| Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd | Sale of goods | 5,706,941.17 | 7,259,668.09 |
| Beijing Haidian Xijiao grain and oil supply station Co., Ltd | Sale of goods | 4,977,243.14 | 3,014,544.41 |
| Beijing Guchun Food Co., Ltd | Sale of goods | 1,398,392.53 | 15,317,021.38 |
| Beijing Sanyuan Food Co., Ltd | Sale of goods | 3,936,383.48 | 747,433.70 |
| Huairou Brewing Factory of Beijing Liubiju Food Co., Ltd | Sale of goods | 3,014,449.53 | 5,207,793.60 |
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | Sale of goods | 2,807,417.64 | 1,604,476.13 |
| Beijing Zhujun grain and oil supply Co., Ltd | Sale of goods | 2,589,779.81 | 2,406,903.69 |
| Beijing Liubiju Food Co., Ltd | Sale of goods | 2,218,885.41 | |
| Beijing food supply office No.34 supply department Co., Ltd | Sale of goods | 1,933,686.47 | 4,825,987.13 |
| Beijing Children soldiers grain and oil supply Co., Ltd | Sale of goods | 1,790,825.70 | 2,219,449.54 |
| Beijing baijiayi Food Co., Ltd | Sale of goods | 1,634,422.04 | 1,172,768.81 |
| Beijing Zhangxin Grain Reserve Co., Ltd | Sale of goods | 1,487,322.95 | |
| Beijing Kyoto Jingu Grain Purchase and Sales Co., Ltd | Sale of goods | 1,168,807.35 | |
| Beijing Shounong University Kitchen Supply Chain Management Group Co., Ltd | Sale of goods | 927,483.93 | |
| Beijing Lanfeng Vegetable Distribution Co., Ltd | Sale of goods | 773,434.88 | |
| Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd | Sale of goods | 57,112,231.88 | 47,175,363.45 |
| Beijing Shounong Consumption Assistance Innovation and Entrepreneurship Center Co., Ltd. | Sale of goods | 12,896,905.51 | 15,515,188.10 |
| Beijing shounong Supply Chain Management Co., Ltd | Sale of goods | 2,427,623.76 | |
| Beijing Guchun rice Co., Ltd | Sale of goods | 159,450.49 | 1,267,478.96 |
| Beijing Jingliang e-commerce Co., Ltd | Sale of goods | 682,187.95 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing junchengyuan grain and oil purchase and Marketing Co., Ltd | Sale of goods | 618,123.86 | |
| Beijing Hongyuan Lijun grain and oil supply Co., Ltd | Sale of goods | 202,752.29 | 492,201.84 |
| Beijing maliandou special supply station Co., Ltd | Sale of goods | 70,642.20 | |
| Beijing Liangguan Grain and Oil Supply Co. Ltd | Sale of goods | 11,559.64 | |
| Beijing Guchuan Food Co., Ltd | Provision of services | 23,691.32 | |
| Other-related units | Sale of goods | 2,640,376.49 | 2,215,034.03 |
Related-party transactions for purchasing and selling goods and provision and acceptance of laborservices: The price of a related-party transaction shall be equal to the price charged for a unrelated-partytransaction that is same as or similar to such related-party transaction.
2. Related-party lease
(1) If the Company is the lessor,
| Name of Lessee | Type of Leased Asset | Lease start date | Lease termination date | Pricing basis of rental income | Lease Income Recognized in the Current Period | Lease Income Recognized in the Prior Period |
| Beijing Jingliang E-commerce Co., Ltd. | Vehicle rental | March1, 2014 | Until the date on which the lessee is eligible to purchase a car | Market price | 22,530.26 | 11,265.13 |
| Total | 22,530.26 | 11,265.13 |
(2)If the Company is the lessee,
| Name of Lessee | Type of Leased Asset | Pricing basis of releasing fee | Lease Expense Recognized in the Current Period | Lease Expense Recognized in the Prior Period |
| Beijing Daxing National Grain Purchasing & Storage Warehouse | House leasing | Market price | 2,339,449.54 | 1,935,963.30 |
| Beijing Shounong Development Co., Ltd. | House leasing | Market price | 2,747,664.01 | 1,803,247.58 |
| Beijing Dahongmen Foodstuff Storage | House leasing | Market price | 626,936.95 | 623,474.62 |
| Beijing Grain Group Co., Ltd. | House leasing | Market price | 1,048,715.69 | 555,229.36 |
| Beijing Nanyuan Plant Oil Factory | House leasing | Market price | 331,694.32 | 311,926.61 |
| Beijing Grain Group Head Company | House leasing | Market price | 44,036.70 | 33,027.52 |
| Total | 7,138,497.21 | 5,262,868.99 |
3. Other Related-party Transactions
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Guaranteed Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing Dahongmen Foodstuff Storage | Heating fee, cleaning fee, electricity fee | 84,663.79 | 177,183.60 |
| Beijing Shounong Development Co., Ltd. | Utilities, property fees | 129,970.81 | 98,847.10 |
| Beijing Haidian Xiangshan Rest House | Conference service fees | 44,130.38 | 20,654.60 |
| Beijing Shounong Food Group Finance Co., Ltd. | Interest income | 2,295,571.07 | 1,589,080.65 |
| Beijing Guchuan Food Co., Ltd. | Brand royalty | 2,601,649.71 | 2,561,865.51 |
| Beijing Guchuan Rice Co., Ltd. | Brand royalty | 140,583.79 | 186,540.99 |
| Beijing Jingliang Dongfang Grain and Oil Trading Co., Ltd. | Brand royalty | 2,996.50 | 2,230.47 |
| Tianjin Juxiang Technology Co., Ltd. | Technical Service Fee | 1,582.20 |
4. Remuneration for key management staff
| Item | Current Amount (Unit: ten thousand yuan) | Last Term Amount (Unit: ten thousand yuan) |
| Remuneration for Key Management Staff | 1,168.45 | 624.05 |
7. Related-party Receivables and Payables
(1) Receivables
| Item | Related-party | Ending Balance | Beginning Balance | ||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | ||
| Monetary funds | Beijing shounong Food Group Finance Co., Ltd | 339,487,166.55 | 167,000,000.00 | ||
| Receivables | Hebei Luanping Huadu Food Co., Ltd | 3,548,214.00 | |||
| Feed Branch of Beijing Sanyuan Seed Technology Co., Ltd. | 2,056,939.44 | 3,000,236.98 | |||
| Beijing Shounong Consumption Assistance Innovation and Entrepreneurship Center Co., Ltd. | 1,737,500.00 | 1,359,375.00 | |||
| Hebei Sanyuan Food Co., Ltd | 1,685,000.00 | ||||
| Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd | 1,198,484.00 | 584,491.00 | |||
| Beijing Zhangxin Grain Reserve Co., Ltd | 665,000.00 | ||||
| Beijing Food Supply Department No. 34 Supply Department Co., Ltd | 279,035.00 | ||||
| Beijing baijiayi Food Co., Ltd | 180,695.00 | 196,800.00 | |||
| Beijing Grain Dianto Net (Beijing) Trading Co., LTD | 95,120.40 | ||||
| Beijing Lanfeng | 84,200.00 | ||||
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Item | Related-party | Ending Balance | Beginning Balance | ||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | ||
| Vegetable Distribution Co., Ltd | |||||
| Beijing Guchun Food Co., Ltd | 82,800.00 | 1,260,000.00 | |||
| Beijing Haidian West Suburb Grain and Oil Supply Station Co., Ltd | 82,500.00 | ||||
| Beijing Shoucheng Shanshui Real Estate Co., Ltd | 33,355.00 | ||||
| Beijing Yunong Quality Agricultural Products Planting Co., Ltd | 3,120.00 | ||||
| Shanghai Sunlon Investment HOLDINGS Ltd. | 1,002,945.54 | ||||
| Beijing Ershang Xijie Foodstuff Co., Ltd. | 621,830.00 | ||||
| Hebei Shounong Modern Agricultural Technology Co., Ltd. | 369,525.30 | ||||
| Beijing Zhujun grain and oil supply Co., Ltd | 261,500.00 | ||||
| Beijing Dongfang Agricultural Group Supply Chain Management Co., Ltd. | 161,106.00 | ||||
| Beijing Guchun rice Co., Ltd | 72,688.00 | ||||
| Beijing Junyuan grain and oil purchasing and Marketing Co., Ltd | 43,000.00 | ||||
| Beijing Ershang Yihe Sunshine Real Estate Co., Ltd. | 15,520.00 | ||||
| Other Receivables | Beijing Dahongmen Grain Storage Co., Ltd | 55,232.00 | |||
| Beijing Guchuan Rice Industry Co. Ltd | 50,000.00 | ||||
(2) Payables
| Item | Related-party | Ending Balance | Beginning balance |
| Contract liability | Shanghai Sunlon Investment HOLDINGS Ltd. | 3,448,410.37 | 3,943,587.12 |
| Beijing Liubiju Food Co., Ltd | 59,300.00 | ||
| Beijing Jinggrain Oriental Grain and Oil Trading Co., Ltd | 15,088.20 | ||
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | 3,192.54 | ||
| Beijing Shounong Commercial Chain Co., Ltd | 293.20 | ||
| Payables | Beijing Guchun Food Co., Ltd | 240,000.00 | 358,762.54 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Beijing Ershang Dahongmen Five Meat Union Food Co., Ltd | 19,115.04 | ||
| Beijing Heiliu Animal Husbandry Technology Co., Ltd | 2,826.00 | ||
| Beijing Centennial Liyuan Ecological Agriculture Co., Ltd | 110.00 | ||
| Beijing Sanyuan Food Co., Ltd | 50.48 | ||
| Beijing Er Shang Mo Qi Zhong Hong Foods Co., Ltd. | 382.30 | ||
| Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd | 294.51 | ||
| Beijing Sunnyum Foods Co., Ltd. | 31.19 | ||
| Other payables | Beijing Grain Group Co., Ltd. | 2,862,750.30 | 2,819,620.39 |
| Hebei Sanyuan Food Co., Ltd | 140,000.00 | ||
| Beijing Jingliang E-Commerce Co., Ltd | 67,891.21 | ||
| Shanghai Sunlon Investment HOLDINGS Ltd. | 2,591,003.45 | ||
| Beijing Nanyuan vegetable oil factory Co., Ltd | 311,926.61 |
8. Related-party Commitments
The Company has no related-party commitments this year.XII. Share based paymentThere are no share based payments incurred this year for the company.XIII. Commitments and ContingenciesBy the end of this report, the company and its holding subsidiaries have approved the amount ofguarantee 7.557 billion yuan, and the actual amount of guarantee of the company and its holdingsubsidiaries is 1.692 billion yuan, accounting for 55.25% of the company's audited net assetsattributable to the parent company in the latest period, which are all guarantees between the companyand its holding subsidiaries. There is no guarantee provided by the Company and its holdingsubsidiary to any entity other than the consolidated statement, and there is no delay in externalguarantee, guarantee involving litigation or loss due to the judgment of loss due to guarantee.XIV. Events after the Balance Sheet Date
1. Distribution of Profits
As of the financial report date of the company, the 4th meeting of the tenth board of directors in 2023approved that no profit distribution will be conducted in 2022, which still needs to be approved by the generalmeeting of shareholders.
XV. Other Important Matters
1. Annuity Plan
Basic information of annuity: Beijing Jingliang Food Co., Ltd., Beijing Guchuan Oil Co., Ltd., BeijingEisen Lubao Oil Co., Ltd., Beijing Jingliang Oil Co., Ltd. and Beijing Guchuan Bread Food Co., Ltd. of thecompany participated in the enterprise annuity plan of Beijing shounong Food Group Co., Ltd., andformulated the implementation rules of their respective enterprises under the annuity plan. The name of theannuity plan is Ping An Jinxiu life enterprise annuity plan; the trustee and account manager are ping anEndowment Insurance Co., Ltd.; the trustee is China CITIC Bank Co., Ltd.
2. Information of Divisions
(1) Basis of determination and accounting policies for reporting of divisions
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
The Company's businesses consist of food processing, oil and grease and so on according to its internalorganizational structure, management requirements and internal reporting system. The Company'smanagement regularly evaluates the operating results of these divisions to determine the allocation ofresources to them and evaluate their performance. The information reported by divisions should be disclosedaccording to the accounting policies and measurement standards adopted by such divisions when they arereporting to the management. These measurement bases should be consistent with the accounting andmeasurement bases for preparation of financial statements.
(2) Reporting of the financial information of divisions
| Item | Food Processing | Oil & Grease | Other | Offset Among Divisions | Total |
| Operating income | 934,354,631.83 | 17,678,873,948.35 | 22,309,668.18 | -5,777,663,946.64 | 12,857,874,301.72 |
| Operating costs | 728,241,410.75 | 17,245,110,349.36 | 21,659,551.22 | -5,757,439,972.02 | 12,237,571,339.31 |
| Operating profit | 123,414,781.16 | 392,682,828.27 | -3,317,815.96 | -291,681,015.82 | 221,098,777.65 |
| Net profit attributable to parent company | 96,670,652.60 | 358,068,801.86 | -2,558,587.94 | -310,769,725.24 | 141,411,141.28 |
| Total assets | 1,127,860,966.95 | 10,764,915,919.36 | 59,204,088.36 | -5,846,836,806.71 | 6,105,144,167.96 |
| Total liabilities | 179,483,468.37 | 4,423,841,929.01 | 4,870,747.28 | -1,965,761,823.98 | 2,642,434,320.68 |
3. Lease
The lessee shall disclose the following information in relation with the lease.
| Item | Amount |
| Interest expense | 103,722.54 |
| Short-term lease payments charged to current profit or loss | 6,239,496.93 |
| Lease costs for low-value assets recognized in current profit or loss | |
| Variable lease payments not included in the measurement of lease liabilities | |
| Income from sublease of right-to-use assets | |
| Total cash outflows related to leases | 8,293,070.04 |
| Gains and losses related to sale and leaseback transactions |
XVI. Notes to Main Financial Statement Items of Parent Company
1. Accounts Receivable
（1）Disclosed according to aging
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | |
| Among them: Within credit period (within 3 months) | |
| Credit period to 1 year | |
| 1 to 2 years (including 2 years) | |
| 2 to 3 years (including 3 years) | |
| 3 to 4 years (including 4 years) | |
| 4 to 5 years (including 5 years) | |
| More than 5 years | |
| Sub-total | |
| Less: Allowance for bad debts |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Aging | Ending Balance |
| Total |
（2）Disclosed according to the method of provision for bad debt
| Type(s) | Ending Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | |||||
| Portfolio provision for bad debts | |||||
| Among them: Portfolio 1 | |||||
| Total | |||||
（Continued）
| Type(s) | Beginning Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | |||||
| Portfolio provision for bad debts | 108,000.00 | 100.00 | 107,400.00 | 99.44 | 600.00 |
| Among them: Portfolio 1 | 108,000.00 | 100.00 | 107,400.00 | 99.44 | 600.00 |
| Total | 108,000.00 | 107,400.00 | 600.00 | ||
Portfolio provision for bad debts:
Portfolio provision item: aging portfolio
| Name | Ending Balance | Beginning Balance | ||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | |
| Within 1 Year (including 1 year) | ||||||
| Among them: Within the credit period (within 3 months) | ||||||
| Credit period to 1 year | ||||||
| 1 to 2 years (including 2 years) | ||||||
| 2 to 3 years (including 3 years) | ||||||
| 3 to 4 years (including 4 years) | ||||||
| 4 to 5 years (including 5 years) | 3,000.00 | 2,400.00 | 80.00 | |||
| More than 5 years | 105,000.00 | 105,000.00 | 100.00 | |||
| Total | 108,000.00 | 107,400.00 | ||||
(3) Details of bad debt provision
| Type | Carrying amount at the beginning | Amount changes for the period | Carrying amount at the end | |||
| Addition | Withdrawal or reversal | Write-off | Other changes | |||
| Bad debt provision | 107,400.00 | 600.00 | 108,000.00 | |||
| Total | 107,400.00 | 600.00 | 108,000.00 | |||
(4) Receivables actually written off in the current period
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Item | Amount |
| Hainan Pearl River Pipe Pile Co. Ltd | 108,000.00 |
During the period, the manager's office meeting approved to write off the uncollectible receivables.
2. Other Receivables
a. Overview
(1) Classification
| Item | Ending Balance | Beginning Balance |
| Interest receivable | ||
| Dividends receivable | 150,000,000.00 | |
| Other receivables | 199,000,000.00 | 180,000,000.00 |
| Total | 349,000,000.00 | 180,000,000.00 |
b. Other Receivables
(1) Disclosed according to aging
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | 29,000,000.00 |
| Among them: Within credit period (within 3 months) | 20,000,000.00 |
| Credit period to 1 year | 9,000,000.00 |
| 1 to 2 years (including 2 years) | 170,000,000.00 |
| 2 to 3 years (including 3 years) | |
| 3 to 4 years (including 4 years) | |
| 4 to 5 years (including 5 years) | |
| More than 5 years | |
| Sub-total | 199,000,000.00 |
| Less: Allowance for bad debts | |
| Total | 199,000,000.00 |
(2) Classification of other receivables by nature of funds
| Nature of Funds | Book Balance at End of Period | Book Balance at Beginning of Year |
| Intercourse Funds of Units | 199,000,000.00 | 180,000,000.00 |
| Petty Cash | 93,197.85 | |
| Total | 199,000,000.00 | 180,093,197.85 |
（3）Details about allowance for bad debt
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Amount on January 1, 2022 | 93,197.85 | 93,197.85 | ||
| Carrying amount on January 1, 2022 during this period: | ||||
| ——Get into Stage 2 | ||||
| ——Get into Stage 3 | ||||
| ——Get back to Stage 2 | ||||
| ——Get back to Stage 1 | ||||
| Provision for the period | ||||
| Reverse for the period | ||||
| Transfer for the period | ||||
| Write off for the period | 93,197.85 | 93,197.85 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Other changes | ||||
| Balance at December 31, 2022 |
(4) Details of bad debt provision
| Type | Carrying amount at the beginning | Amount changes for the period | Carrying amount at the end | |||
| Addition | Withdrawal or reversal | Write-off | Other changes | |||
| Bad debt provision | 93,197.85 | 93,197.85 | ||||
| Total | 93,197.85 | 93,197.85 | ||||
(5)Other receivables actually written off in the current period
| Item | Amount |
| Employee related funds | 93,197.85 |
During the period, t the manager's office meeting approved to write off the uncollectible receivables
(6) Other receivables according to top five of balance at end of period collected by debtors
| Name of Organization | Nature of Funds | Balance at End of Period | Aging | Proportion in overall ending balance of other receivables (%) | Ending balance of bad debt reserves |
| Beijing Grain Stock Co., Ltd. | Related party borrowing | 199,000,000.00 | Within 1 years；1-2years | 100.00 | |
| Total | 199,000,000.00 |
c. Dividend Receivable
| Item(s) | Ending Balance | Beginning Balance |
| Beijing Jingliang Food Co., Ltd. | 150,000,000.00 | |
| Total | 150,000,000.00 |
3. Long-term Equity Investment
| Item | Ending Balance | Beginning Balance | ||||
| Book Balance | Provision for Impairment | Book Value | Book Balance | Provision for Impairment | Book Value | |
| Investment in subsidiaries | 2,619,157,283.19 | 2,619,157,283.19 | 2,626,437,846.24 | 2,626,437,846.24 | ||
| Total | 2,619,157,283.19 | 2,619,157,283.19 | 2,626,437,846.24 | 2,626,437,846.24 | ||
(1)Investment in subsidiaries
| Invested Entity | Beginning Balance | Current Increase | Current Decrease | Ending Balance | Current Provision for Impairment | Ending Balance of Provision for Impairment |
| Beijing Jingliang Food Co., Ltd. | 2,336,639,964.05 | 2,336,639,964.05 | ||||
| Zhejiang little prince Food Co., Ltd | 249,017,319.14 | 249,017,319.14 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Jingliang rural complex construction and operation (Xinyi) Co., Ltd | 15,280,563.05 | 15,280,563.05 | ||||
| Jingliang (Caofeidian) Agricultural Development Co., Ltd. | 25,500,000.00 | 25,500,000.00 | ||||
| Jingliang (Beijing) Food Marketing Management Co., Ltd | 8,000,000.00 | 8,000,000.00 | ||||
| Total | 2,626,437,846.24 | 8,000,000.00 | 15,280,563.05 | 2,619,157,283.19 |
4. Operating income and operating costs
1. Details of operating income and operating costs
| Item | Current Amount | Last Term Amount | ||
| Income | Cost | Income | Cost | |
| Core business | ||||
| Other businesses | 11,768,886.09 | 341,162.52 | 591,060.56 | 341,162.52 |
| Total | 11,768,886.09 | 341,162.52 | 591,060.56 | 341,162.52 |
5. Income from investment
| Sources of investment income | Current Amount | Last Term Amount |
| Long term equity investment income calculated by cost method | 163,430,984.15 | 461,597,751.35 |
| Total | 163,430,984.15 | 461,597,751.35 |
XVII. Supplementary Information
1. According to the requirements of the CSRC's "Explanatory Announcement on InformationDisclosure of Companies Publicly Issuing Securities No. 1 - Non-recurring Gains and Losses",the non-recurring gains and losses during the reporting period shall be reported
1. Details of non-recurring profit and loss in the reporting period
| Details of non-recurring profit and loss | Amount | Note |
| (1) Gains and losses on disposal of non current assets | 308,271.08 | |
| (2) 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 national unified standard quota or quantitative) | 7,606,921.93 | |
| (3) In addition to the effective hedging business related to the normal business of the company, the profit and loss from changes in fair value arising from holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, as well as the investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investments | 1,018,494.49 | |
| (4)Income from custodial fees obtained from entrusted operations | 11,061,512.95 | |
| (5) Other non-operating income and expenses other than the above | 4,374,321.83 | |
| (6) Other profit and loss items that meet the definition of non recurring profit and loss | ||
| Total non recurring profit and loss | 24,369,522.28 |
Hainan Jingliang Holdings Co., Ltd. Annual Report 2022
| Details of non-recurring profit and loss | Amount | Note |
| Less: amount affected by income tax | 6,047,575.48 | |
| Non recurring profit and loss after deducting the influence of income tax | 18,321,946.80 | |
| Including: non recurring profit and loss attributable to the owner of the parent company | 17,113,972.95 | |
| Non recurring profit and loss attributable to minority shareholders | 1,207,973.85 |
2. Return on equity and earnings per share
| Current Profit | Weighted Return on Average Equity (ROAE) (%) | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to the Company's common shareholders | 4.73 | 0.19 | 0.19 |
| Net profit attributable to common shareholders after deduction of non-recurring gains and losses | 4.16 | 0.17 | 0.17 |
Hainan Jingliang Holdings Co., Ltd.
31 March 2023