HAINAN JINGLIANG HOLDINGS CO., LTD.
FIRST QUARTER REPORT 2019
April 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Hainan Jingliang Holdings Co., Ltd. (hereinafterreferred to as the “Company”) hereby guarantee the factuality, accuracy and completeness ofthe contents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Li Shaoling, the Company’s legal representative, Guan Ying, the Company’s head forfinancial affairs, and Liu Quanli, head of the Company’s financial department (equivalent tofinancial manager) hereby guarantee that the Financial Statements carried in this Report arefactual, accurate and complete.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
| Q1 2019 | Q1 2018 | Change (%) | |
| Operating revenue (RMB) | 1,707,549,259.31 | 1,866,527,190.78 | -8.52% |
| Net profit attributable to the listed company’s shareholders (RMB) | 26,311,530.50 | 31,041,912.71 | -15.24% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 17,033,200.00 | 29,930,951.86 | -43.09% |
| Net cash generated from/used in operating activities (RMB) | 172,926,738.46 | 671,468,699.31 | -74.25% |
| Basic earnings per share (RMB/share) | 0.04 | 0.05 | -20.00% |
| Diluted earnings per share (RMB/share) | 0.04 | 0.05 | -20.00% |
| Weighted average return on equity (%) | 1.15% | 1.47% | -0.32% |
| 31 March 2019 | 31 December 2018 | Change (%) | |
| Total assets (RMB) | 4,957,598,566.20 | 4,917,148,996.28 | 0.82% |
| Equity attributable to the listed company’s shareholders (RMB) | 2,298,664,279.60 | 2,272,469,925.43 | 1.15% |
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1 2019 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 12,024,268.43 | |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per government’s uniform standards) | 529,365.60 | |
| Non-operating income and expense other than the above | -31,600.05 | |
| Less: Income tax effects | 3,130,733.50 | |
| Non-controlling interests effects (net of tax) | 112,969.98 |
| Total | 9,278,330.50 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicableNo such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 36,473 | Number of preferred shareholders with resumed voting rights at the period-end (if any) | 0 | ||||
| Top 10 shareholders | |||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | ||
| Status | Shares | ||||||
| BEIJING GRAIN GROUP CO., LTD. | State-owned legal person | 42.06% | 288,439,561 | 164,877,598 | |||
| BEIJING STATE-OWNED CAPITAL OPERATION AND MANAGEMENT CENTER | State-owned legal person | 7.07% | 48,510,460 | 48,510,460 | |||
| CHINA DEVELOPMENT BANK CAPITAL CO., LTD. | State-owned legal person | 3.33% | 22,828,451 | ||||
| GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.—GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND (L.P.) | Other | 3.20% | 21,972,451 | ||||
| LI SHERYN ZHAN MING | Foreign natural person | 2.71% | 18,578,700 | ||||
| MEI JIANYING | Domestic natural person | 0.38% | 2,604,203 | ||||
| HU TIANGAO | Domestic natural person | 0.35% | 2,376,052 | ||||
| SOCIETE GENERALE | Foreign legal person | 0.32% | 2,183,500 | ||||
| DONGYANG HENGDIAN GUARANTY CO., LTD. | Domestic non-state-owned legal person | 0.31% | 2,105,469 | ||||
| ZHANG XIAOXIA | Domestic natural person | 0.28% | 1,949,250 | ||||
| Top 10 unrestricted shareholders | |||||||
| Name of shareholder | Unrestricted shares held | Shares by type | |||||
| Type | Shares | ||||||
| BEIJING GRAIN GROUP CO., LTD. | 123,561,963 | RMB-denominated ordinary stock | 123,561,963 | ||||
| CHINA DEVELOPMENT BANK CAPITAL CO., LTD. | 22,828,451 | RMB-denominated ordinary stock | 22,828,451 | ||||
| GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.—GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND (L.P.) | 21,972,451 | RMB-denominated ordinary stock | 21,972,451 | ||||
| LI SHERYN ZHAN MING | 18,578,700 | Domestically listed foreign stock | 18,578,700 | ||||
| MEI JIANYING | 2,604,203 | RMB-denominated ordinary stock | 2,604,203 | ||||
| HU TIANGAO | 2,376,052 | RMB-denominated ordinary stock | 2,376,052 | ||||
| SOCIETE GENERALE | 2,183,500 | RMB-denominated ordinary stock | 2,183,500 | ||||
| DONGYANG HENGDIAN GUARANTY CO., LTD. | 2,105,469 | RMB-denominated ordinary stock | 2,105,469 | ||||
| ZHANG XIAOXIA | 1,949,250 | Domestically listed foreign stock | 1,949,250 | ||||
| WANG XIAOXING | 1,775,000 | RMB-denominated ordinary stock | 1,775,000 | ||||
| Related or acting-in-concert parties among the shareholders above | Beijing State-Owned Capital Operation And Management Center owns 100% of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is a shareholder of the Company (a 42.06% holding). 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. | ||||||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | 1. Shareholder Hu Tiangao holds 338,000 shares in the Company through his account of collateral securities for margin trading in Zheshang Securities Co., Ltd., and 2,038,052 shares in the Company through his ordinary securities account. 2. Shareholder Wang Xiaoxing holds 1,775,000 shares in the Company through his account of collateral securities for margin trading in Soochow Securities Co., Ltd. |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinaryshareholders of the Company conducted any promissory repo during the Reporting Period.□ Yea √ NoNo such cases in the Reporting Period.2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them□ Applicable √ Not applicable
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable1. Monetary capital as at 31 March 2019 declined compared to 31 December 2018, primarily driven by therepayment of bank loans and the purchase of growth receipts with raised funds for cash management purposesduring Q1 2019.2. The change in available-for-sale financial assets was primarily driven by the reclassification of certain“available-for-sale financial assets” as “financial assets at fair value through profit or loss” into “investments inother equity instruments” according to the new accounting standards governing financial instruments.3. Other current assets as at 31 March 2019 rose compared to 31 December 2018, primarily driven by the growthreceipts purchased during Q1 2019 with raised funds for cash management purposes being undue at 31 March2019.4. Notes and accounts payable as at 31 March 2019 rose compared to 31 December 2018, primarily driven by thepurchases of raw materials during Q1 2019.5. Payroll payable as at 31 March 2019 declined compared to 31 December 2018, primarily driven by the paymentof the 2018 annual performance remuneration during Q1 2019.6. Finance costs went down in Q1 2019 compared to Q1 2018, primarily driven by a smaller interest expense dueto decreased bank loans during Q1 2019.7. Net cash generated from operating activities went down in Q1 2019 compared to Q1 2018, primarily driven bymore purchases of raw materials during Q1 2019.
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
| Summary of the significant event | Disclosure date | Index to the related announcement |
| 1. On 20 February 2019, Proposal on Election of the Chairman of the 8th Board of Directors of the Company was reviewed and approved at the 31th Meeting of the 8th Board of Directors by the Company. The Board of Directors of the Company agreed that Mr. Li Shaoling held the post of the Chairman of the 8th Board of Directors. According to the | 21 February 2019 | www.cninfo.com.cn: Announcement on the Resignation of Chairman and the Election for New Chairman (Announcement No. 2019-002) |
Progress of any share repurchases:
□ Applicable √ Not applicableProgress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable √ Not applicableNo such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well asexplanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
relevant regulations of Articles of Association, the Chairman is thelegal representative of the Company. At present, the Company hascompleted the procedures for industrial and commercial registration ofchanges in its legal representative, and obtained the business license orenterprise legal person approved and renewed by HainanAdministrative Bureau or Industry and Commerce.
Variet
y ofsecuri
ty
| Variety of security | Symbol of security | Name of security | Initial investment cost | Accounting measurement model | Beginning carrying value | Gain/loss of changes in fair value in the Reporting Period | Accumulative changes in fair value recorded into equities | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in Reporting Period | Ending carrying value | Accounting title | Capital source |
| Other | 204001 | GC001 | Cost method | 3,142,600,000.00 | 3,142,600,000.00 | 322,286.47 | 0.00 | Other assets | Self-raised |
| Other | 204007 | GC007 | Cost method | 70,200,000.00 | 70,200,000.00 | 96,465.51 | 0.00 | Other assets | Self-raised | ||||
| Total | 0.00 | -- | 0.00 | 0.00 | 0.00 | 3,212,800,000.00 | 3,212,800,000.00 | 418,751.98 | 0.00 | -- | -- | ||
| Disclosure date of announcement on Board’s consent for securities investment | 21 February 2019 | ||||||||||||
| Disclosure date of announcement on shareholders’ meeting’s consent for securities investment (if any) | N/A | ||||||||||||
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
| Type of derivative | Start date | End date | Ending investment | Ending investment as % of the Company’s ending net assets | Actual gain/loss in Reporting Period |
| Soybean hedging | 1 January 2019 | 31 March 2019 | 3,172.23 | 1.38% | -81.59 |
| Agricultural product future contract | 1 January 2019 | 31 March 2019 | 1,616 | 0.70% | -271 |
| Agricultural product future contract | 1 January 2019 | 31 March 2019 | 1,195 | 0.52% | -33 |
| Agricultural product future contract | 1 January 2019 | 31 March 2019 | 2 | 0.00% | 208 |
| Agricultural product future contract | 1 January 2019 | 31 March 2019 | 51 | 0.02% | 0 |
| Total | -- | -- | 6,036.23 | 2.62% | -177.59 |
| Funding source | Self-funded | ||||
| Legal matters involved (if applicable) | N/A | ||||
| Disclosure date of board announcement approving derivative investment (if | 21 February 2019 | ||||
| any) | |
| Disclosure date of general meeting announcement approving derivative investment (if any) | 9 March 2019 |
| Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | The Company’s conduction of hedging business is not aimed at speculation, but mainly to effectively avoid the impact of raw material price fluctuation on the Company. However, there will be certain risks: 1. Price fluctuation risk: price fluctuation risk may be generated when the futures market changes greatly, resulting in transaction losses; 2. Capital risk: capital risk may be correspondingly brought because the futures trading adopts margin and marking-to-market system; 3. Internal control risk: there may be risks due to imperfect internal control system for the high expertise and complexity of futures trading; 4. Technical risk: there may be technical risks due to incomplete computer systems. The Company adopts following risk control measures: 1. Matching the hedging business with the Company’s production and operation so as to maximally reduce the price fluctuation risk; 2. The Company will reasonably dispatch its own funds for hedging business, strictly control the hedging fund scale and reasonably plan and use margins; 3. Management System for Commodity Futures Trading is formulated based on actual situation of the Company and pursuant to governing stipulations of Guidelines for Standard Operation of Main board Companies Listed in Shenzhen Stock Exchange which have made clearly stipulations about the amount, variety scope, approval authority, internal approval procedures, responsible departments and persons, information isolation measures, internal risk report and related solution process, information disclosure, etc. regarding hedging business. The Company will strictly control all sectors in accordance with Management System for Commodity Futures Trading; 4. Establishing qualified systems for transaction, communication and information services so as to guarantee the normal operation of the transaction system and smooth proceeding of transactions. When a wrong order occurs, corresponding measures should be timely taken to reduce losses. |
| Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | The value of the Company’s future contracts changed according to the contract prices declared by the future exchange, which were broadly representative. And the fair value of the Company’s future contracts was executed in strict compliance with the future exchange’s settlement methods. |
| Major changes in accounting policies and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period | N/A |
| Opinion of independent directors on derivative | After check, The Company carried out the business of futures hedging based on normal production and management, relying on specific business. Under the premise of ensuring normal production and |
| investments and risk control | management, the Company used futures hedging tools to avoid the adverse impacts on the Company’s operation from the large price fluctuation of raw materials and products, which is not detrimental to the interests of the Company and all other shareholders, especially minority shareholders. At the same time, the Company formulated relevant systems, and specific operating instructions for the business of futures hedging through strengthening internal control and implementing risk prevention measures. It is agreed that the Company and its subsidiaries will continue to conduct futures hedging business according to the relevant regulations. |
VII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
□ Applicable √ Not applicableNo such cases in the Reporting Period.
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicableNo such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicableNo such cases in the Reporting Period.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Hainan Jingliang Holdings Co., Ltd.
31 March 2019
Unit: RMB
| Item | 31 March 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 488,126,501.99 | 924,870,016.78 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Trading financial assets | ||
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | 61,508,961.00 | 71,260,414.60 |
| Notes and accounts receivable | 96,916,812.55 | 97,775,710.11 |
| Including: Notes receivable | 410,429.54 | |
| Accounts receivable | 96,506,383.01 | 97,775,710.11 |
| Prepayments | 113,376,773.82 | 120,181,442.89 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 15,756,505.97 | 18,256,513.93 |
| Including: Interest receivable | 2,133,849.72 | 2,400,877.51 |
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 1,240,776,747.17 | 1,224,186,963.07 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 778,685,680.59 | 288,821,816.63 |
| Total current assets | 2,795,147,983.09 | 2,745,352,878.01 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Available-for-sale financial assets | 20,000,000.00 | |
| Investments in other debt obligations | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 187,125,274.16 | 182,827,226.11 |
| Investments in other equity instruments | 20,000,000.00 | |
| Other non-current financial assets | ||
| Investment property | 32,991,663.95 | 33,395,101.68 |
| Fixed assets | 1,275,635,891.13 | 1,271,803,080.56 |
| Construction in progress | 27,961,203.26 | 37,369,757.78 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 378,055,999.37 | 383,382,527.68 |
| R&D expense | ||
| Goodwill | 191,394,422.51 | 191,394,422.51 |
| Long-term prepaid expense | 33,737,059.71 | 34,671,018.22 |
| Deferred income tax assets | 13,927,065.43 | 15,330,980.14 |
| Other non-current assets | 1,622,003.59 | 1,622,003.59 |
| Total non-current assets | 2,162,450,583.11 | 2,171,796,118.27 |
| Total assets | 4,957,598,566.20 | 4,917,148,996.28 |
| Current liabilities: | ||
| Short-term borrowings | 1,329,168,292.50 | 1,437,715,080.91 |
| Borrowings from central bank | ||
| Interbank loans obtained | ||
| Trading financial liabilities | ||
| Financial liabilities at fair value through profit or loss | ||
| Derivative financial liabilities | ||
| Notes and accounts payable | 228,615,002.80 | 140,564,713.11 |
| Advances from customers | 185,808,365.02 | 145,317,064.18 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Payroll payable | 15,500,452.97 | 31,494,568.05 |
| Taxes payable | 27,407,214.57 | 35,783,819.84 |
| Other payables | 130,572,740.19 | 111,288,708.99 |
| Including: Interest payable | 14,833,643.11 | 26,972,826.90 |
| Dividends payable | 11,197,317.01 | 11,197,317.01 |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Contractual liabilities | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | 11,100,915.25 | |
| Total current liabilities | 1,917,072,068.05 | 1,913,264,870.33 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term payroll payable | 40,245,406.52 | 40,245,406.52 |
| Provisions | ||
| Deferred income | 74,530,445.42 | 74,953,385.51 |
| Deferred income tax liabilities | 57,660,581.98 | 49,618,839.47 |
| Other non-current liabilities | ||
| Total non-current liabilities | 172,436,433.92 | 164,817,631.50 |
| Total liabilities | 2,089,508,501.97 | 2,078,082,501.83 |
| Owners’ equity: |
| Share capital | 685,790,364.00 | 685,790,364.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 1,595,711,805.31 | 1,595,711,805.31 |
| Less: Treasury stock | ||
| Other comprehensive income | -116,738.00 | 438.33 |
| Special reserves | ||
| Surplus reserves | 122,122,436.98 | 122,122,436.98 |
| General reserve | ||
| Retained earnings | -104,843,588.69 | -131,155,119.19 |
| Total equity attributable to owners of the Company as the parent | 2,298,664,279.60 | 2,272,469,925.43 |
| Non-controlling interests | 569,425,784.63 | 566,596,569.02 |
| Total owners’ equity | 2,868,090,064.23 | 2,839,066,494.45 |
| Total liabilities and owners’ equity | 4,957,598,566.20 | 4,917,148,996.28 |
Legal representative: Li Shaoling Head for financial affairs: Guan YingHead of the financial department: Liu Quanli
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 1,028,420.43 | 13,597,659.66 |
| Trading financial assets | ||
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | ||
| Notes and accounts receivable | 74,460.00 | 79,986.00 |
| Including: Notes receivable | ||
| Accounts receivable | 74,460.00 | 79,986.00 |
| Prepayments | 20,000.00 | 20,000.00 |
| Other receivables | 12,420,402.45 | 227,353.10 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 4,824,035.45 | 4,824,035.45 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 2,117,690.86 | 1,962,371.32 |
| Total current assets | 20,485,009.19 | 20,711,405.53 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Available-for-sale financial assets | 20,000,000.00 | |
| Investments in other debt obligations | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 2,377,420,527.10 | 2,375,639,964.05 |
| Investments in other equity instruments | 20,000,000.00 | |
| Other non-current financial assets | ||
| Investment property | 5,703,185.18 | 5,778,794.33 |
| Fixed assets | 3,222,868.08 | 3,260,620.04 |
| Construction in progress | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 145,408.80 | 171,069.18 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 157,232.68 | 180,817.60 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 2,406,649,221.84 | 2,405,031,265.20 |
| Total assets | 2,427,134,231.03 | 2,425,742,670.73 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Trading financial liabilities | ||
| Financial liabilities at fair value through profit or loss | ||
| Derivative financial liabilities | ||
| Notes and accounts payable |
| Advances from customers | 38,896.41 | 38,896.41 |
| Contractual liabilities | ||
| Payroll payable | 300,469.34 | 438,195.96 |
| Taxes payable | 968,602.50 | 976,458.68 |
| Other payables | 463,519,055.23 | 449,947,050.56 |
| Including: Interest payable | 21,082,795.47 | 21,082,795.47 |
| Dividends payable | 3,213,302.88 | 3,213,302.88 |
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 464,827,023.48 | 451,400,601.61 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term payroll payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 464,827,023.48 | 451,400,601.61 |
| Owners’ equity: | ||
| Share capital | 685,790,364.00 | 685,790,364.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 2,173,387,468.71 | 2,173,387,468.71 |
| Less: Treasury stock | ||
| Other comprehensive income | ||
| Special reserves |
| Surplus reserves | 109,487,064.39 | 109,487,064.39 |
| Retained earnings | -1,006,357,689.55 | -994,322,827.98 |
| Total owners’ equity | 1,962,307,207.55 | 1,974,342,069.12 |
| Total liabilities and owners’ equity | 2,427,134,231.03 | 2,425,742,670.73 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Revenue | 1,707,549,259.31 | 1,866,527,190.78 |
| Including: Operating revenue | 1,707,549,259.31 | 1,866,527,190.78 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 1,701,869,672.84 | 1,841,620,802.54 |
| Including: Cost of sales | 1,587,493,295.12 | 1,729,424,214.02 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 4,739,849.10 | 6,306,256.24 |
| Selling expense | 53,329,529.57 | 47,255,530.90 |
| Administrative expense | 48,807,017.63 | 47,273,728.57 |
| R&D expense | 248,751.52 | 417,383.55 |
| Finance costs | 7,246,885.74 | 11,042,135.57 |
| Including: Interest expense | 16,484,863.99 | 23,168,464.32 |
| Interest income | 8,697,066.79 | 6,130,369.62 |
| Asset impairment loss | 4,344.16 | -98,446.31 |
| Credit impairment loss | ||
| Add: Other income | 529,365.60 | 374,931.06 |
| Return on investment (“-” for loss) | 3,057,637.45 | 3,756,489.11 |
| Including: Share of profit or loss of joint ventures and associates | ||
| Foreign exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 15,874,468.46 | 19,033,892.64 |
| Asset disposal income (“-” for loss) | 12,024,268.43 | -20,558.77 |
| 3. Operating profit (“-” for loss) | 37,165,326.41 | 48,051,142.28 |
| Add: Non-operating income | 1,151,376.64 | 2,194,528.27 |
| Less: Non-operating expense | 182,176.69 | 101,985.74 |
| 4. Profit before tax (“-” for loss) | 38,134,526.36 | 50,143,684.81 |
| Less: Income tax expense | 8,993,780.25 | 13,089,751.48 |
| 5. Net profit (“-” for net loss) | 29,140,746.11 | 37,053,933.33 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 29,140,746.11 | 37,053,933.33 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 26,311,530.50 | 31,041,912.71 |
| 5.2.1 Net profit attributable to non-controlling interests | 2,829,215.61 | 6,012,020.62 |
| 6. Other comprehensive income, net of tax | -117,176.33 | |
| Attributable to owners of the Company as the parent | -117,176.33 | |
| 6.1 Items that will not be reclassified to profit or loss | ||
| 6.1.1 Changes caused by remeasurements on defined benefit pension schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | ||
| 6.1.4 Changes in the fair value of the company’s credit risks | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | -117,176.33 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | ||
| 6.2.4 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 6.2.6 Allowance for credit impairments in investments in other debt obligations | ||
| 6.2.7 Reserve for cash flow hedges | ||
| 6.2.8 Differences arising from the translation of foreign currency-denominated financial statements | -117,176.33 | |
| 6.2.9 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 29,023,569.78 | 37,053,933.33 |
| Attributable to owners of the Company as the parent | 26,194,354.17 | 31,041,912.71 |
| Attributable to non-controlling interests | 2,829,215.61 | 6,012,020.62 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.04 | 0.05 |
| 8.2 Diluted earnings per share | 0.04 | 0.05 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMBXXX, with the amount for the same period of last year being RMBXXX.Legal representative: Li Shaoling Head for financial affairs: Guan YingHead of the financial department: Liu Quanli
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Operating revenue | 0.00 | 0.00 |
| Less: Cost of sales | 0.00 | 75,609.15 |
| Taxes and surcharges | 36,788.40 | 38,992.73 |
| Selling expense | ||
| Administrative expense | 8,299,221.03 | 3,955,623.47 |
| R&D expense | ||
| Finance costs | 3,694,507.98 | 2,459,641.30 |
| Including: Interest expense | 3,699,792.76 | 2,980,777.10 |
| Interest income | 9,134.39 | 934,956.82 |
| Asset impairment loss | 4,344.16 | -98,446.31 |
| Credit impairment loss | ||
| Add: Other income | ||
| Return on investment (“-” for loss) | ||
| Including: Share of profit or loss of joint ventures and associates | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | ||
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | -12,034,861.57 | -6,431,420.34 |
| Add: Non-operating income | ||
| Less: Non-operating expense | ||
| 3. Profit before tax (“-” for loss) | -12,034,861.57 | -6,431,420.34 |
| Less: Income tax expense | ||
| 4. Net profit (“-” for net loss) | -12,034,861.57 | -6,431,420.34 |
| 4.1 Net profit from continuing operations (“-” for net loss) | ||
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | ||
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes caused by remeasurements on defined benefit pension schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or |
| loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | ||
| 5.1.4 Changes in the fair value of the company’s credit risks | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of investments in other debt obligations | ||
| 5.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | ||
| 5.2.4 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 5.2.6 Allowance for credit impairments in investments in other debt obligations | ||
| 5.2.7 Reserve for cash flow hedges | ||
| 5.2.8 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.9 Other | ||
| 6. Total comprehensive income | -12,034,861.57 | -6,431,420.34 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Cash flows from operating activities: |
| Proceeds from sale of commodities and rendering of services | 1,993,101,212.16 | 2,175,325,772.32 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Net increase in proceeds from disposal of financial assets at fair value through profit or loss | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax rebates | 1,989,284.94 | 4,353,341.48 |
| Cash generated from other operating activities | 222,605,666.42 | 640,978,685.79 |
| Subtotal of cash generated from operating activities | 2,217,696,163.52 | 2,820,657,799.59 |
| Payments for commodities and services | 1,703,243,616.27 | 1,348,654,820.64 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase in interbank loans granted |
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 86,117,594.16 | 79,113,433.88 |
| Taxes paid | 44,910,779.37 | 50,185,919.15 |
| Cash used in other operating activities | 210,497,435.26 | 671,234,926.61 |
| Subtotal of cash used in operating activities | 2,044,769,425.06 | 2,149,189,100.28 |
| Net cash generated from/used in operating activities | 172,926,738.46 | 671,468,699.31 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 408,094,662.13 | 232,510,000.00 |
| Return on investment | 2,718,922.13 | 1,472,885.18 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 44,844.68 | 322,250.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | 104,370,288.32 | |
| Subtotal of cash generated from investing activities | 410,858,428.94 | 338,675,423.50 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 17,181,094.76 | 13,101,741.12 |
| Payments for investments | 822,386,686.00 | 621,530,000.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | 1,780,563.05 | 7,764,985.00 |
| Cash used in other investing activities | 140,631,056.14 | |
| Subtotal of cash used in investing activities | 841,348,343.81 | 783,027,782.26 |
| Net cash generated from/used in investing activities | -430,489,914.87 | -444,352,358.76 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 6,553,500.00 | |
| Including: Capital contributions by non-controlling interests to |
| subsidiaries | ||
| Borrowings obtained | 342,470,792.50 | 150,698,502.12 |
| Net proceeds from the issuance of bonds | ||
| Cash generated from other financing activities | 46,091,606.72 | 1,443,544,816.72 |
| Subtotal of cash generated from financing activities | 388,562,399.22 | 1,600,796,818.84 |
| Repayments of borrowings | 446,871,965.95 | 323,198,502.12 |
| Payments for interest and dividends | 17,691,810.54 | 21,335,613.45 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | 46,119,629.69 | 1,318,105,876.66 |
| Subtotal of cash used in financing activities | 510,683,406.18 | 1,662,639,992.23 |
| Net cash generated from/used in financing activities | -122,121,006.96 | -61,843,173.39 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -59,331.42 | -528,252.76 |
| 5. Net increase in cash and cash equivalents | -379,743,514.79 | 164,744,914.40 |
| Add: Cash and cash equivalents, beginning of the period | 867,870,016.78 | 1,014,438,663.43 |
| 6. Cash and cash equivalents, end of the period | 488,126,501.99 | 1,179,183,577.83 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2019 | Q1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | ||
| Tax rebates | 1,800.00 | |
| Cash generated from other operating activities | 20,428,310.16 | 7,179,777.27 |
| Subtotal of cash generated from operating activities | 20,430,110.16 | 7,179,777.27 |
| Payments for commodities and services | 14,172.05 | |
| Cash paid to and for employees | 4,980,819.49 | 1,802,949.00 |
| Taxes paid | 39,120.34 | 2,116,405.74 |
| Cash used in other operating activities | 29,639,022.05 | 10,336,154.55 |
| Subtotal of cash used in operating activities | 34,673,133.93 | 14,255,509.29 |
| Net cash generated from/used in operating activities | -14,243,023.77 | -7,075,732.02 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | ||
| Return on investment | ||
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | ||
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | ||
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 47,052.41 | |
| Payments for investments | 13,500,000.00 | |
| Net payments for the acquisition of subsidiaries and other business units | 1,780,563.05 | |
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 1,827,615.46 | 13,500,000.00 |
| Net cash generated from/used in investing activities | -1,827,615.46 | -13,500,000.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings obtained | 3,500,000.00 | 27,500,000.00 |
| Net proceeds from the issuance of bonds | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 3,500,000.00 | 27,500,000.00 |
| Repayments of borrowings | ||
| Payments for interest and dividends |
| Cash used in other financing activities | 1,775,293.17 | |
| Subtotal of cash used in financing activities | 1,775,293.17 | |
| Net cash generated from/used in financing activities | 3,500,000.00 | 25,724,706.83 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | ||
| 5. Net increase in cash and cash equivalents | -12,570,639.23 | 5,148,974.81 |
| Add: Cash and cash equivalents, beginning of the period | 13,597,659.66 | 15,360,177.32 |
| 6. Cash and cash equivalents, end of the period | 1,027,020.43 | 20,509,152.13 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases□ Applicable √ Not applicable2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any NewStandards Governing Financial Instruments or Leases□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□Yes √ NoThese financial statements have not been audited by such an auditor.
Hainan Jingliang Holdings Co., Ltd.
27 April 2019