HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2020
August 2020
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2020
Part I Important NotesThis Summary is based on the full text of the Semi-annual Report of Hainan Jingliang Holdings Co., Ltd.(together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). Inorder for a full understanding of the Company’s operating results, financial condition and future developmentplans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summaryon the media designated by the China Securities Regulatory Commission (the “CSRC”).All the Company’s Directors have attended the Board meeting for the review of this Report and its summary.This Summary has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
Part II Key Corporate Information
1. Stock Profile
Stock name | JLKG, JL-B | Stock code | 000505, 200505 | |
Stock exchange for stock listing | Shenzhen Stock Exchange | |||
Contact information | Board Secretary | Securities Representative | ||
Name | Guan Ying | Gao Deqiu | ||
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 | ||
Tel. | 010-51672130 | 010-51672029 | ||
E-mail address | 1124387865@qq.com | gaodeqiu_jl@163.com |
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2020 | H1 2019 | Change (%) | |
Operating revenue (RMB) | 3,750,773,067.63 | 3,283,277,725.39 | 14.24% |
Net profit attributable to the listed company’s shareholders (RMB) | 73,762,895.19 | 51,510,904.41 | 43.20% |
Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 67,995,189.95 | 41,194,473.59 | 65.06% |
Net cash generated from/used in operating activities (RMB) | 187,095,820.76 | 220,592,294.21 | -15.18% |
Basic earnings per share (RMB/share) | 0.11 | 0.08 | 37.50% |
Diluted earnings per share (RMB/share) | 0.11 | 0.08 | 37.50% |
Weighted average return on equity (%) | 3.02% | 2.24% | 0.78% |
30 June 2020 | 31 December 2019 | Change (%) | |
Total assets (RMB) | 5,334,498,957.68 | 5,231,266,600.19 | 1.97% |
Equity attributable to the listed company’s shareholders (RMB) | 2,605,230,169.38 | 2,406,039,283.87 | 8.28% |
Number of ordinary shareholders | 59,539 | Number of preferred shareholders with resumed voting rights (if any) | 0 | ||||
Top 10 shareholders | |||||||
Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares | Restricted shares | Pledged or frozen shares | ||
Status | Shares | ||||||
BEIJING GRAIN GROUP CO., LTD. | State-owned legal person | 39.68% | 288,439,561 | 164,877,598 | |||
BEIJING STATE-OWNED CAPITAL OPERATION AND MANAGEMENT CENTER | State-owned legal person | 6.67% | 48,510,460 | 48,510,460 | |||
WANG YUECHENG | Domestic natural person | 5.66% | 41,159,887 | 41,159,887 | |||
LI SHERYN ZHAN MING | Foreign natural person | 1.88% | 13,689,800 | ||||
CHINA DEVELOPMENT BANK CAPITAL CO., LTD. | State-owned legal person | 1.34% | 9,707,366 | ||||
GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.—GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND (L.P.) | Other | 0.87% | 6,307,736 |
MEI JIANYING | Domestic natural person | 0.36% | 2,604,203 | |||
WANG XIAOXING | Domestic natural person | 0.27% | 1,984,600 | |||
ZHANG XIAOXIA | Domestic natural person | 0.27% | 1,949,250 | |||
CHEN OUQIN | Domestic natural person | 0.23% | 1,652,679 | |||
Connected or acting-in-concert parties among shareholders above | ① Beijing State-Owned Capital Operation and Management Center owns 100% of Beijing Grain Group Co., Ltd., and Beijing Grain Group Co., Ltd. is the controlling 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 conducting margin trading (if any) | Shareholder Wang Xiaoxing holds 1,984,600 shares in the Company through his account of collateral securities for margin trading in Soochow Securities Co., Ltd. |
initiative to seize opportunities, forged ahead against headwinds, and responded to new changes with newthinking. As a result, the Company achieved solid growth in operating results, as well as progress in innovationand development amid stability. For the Reporting Period, the Company recorded operating revenue ofRMB3,751 million, up 14.24% year-on-year; and net profits of RMB95 million, representing a 46.08% increasefrom a year ago. By operating division, the oils and oilseeds division generated operating revenue of RMB3,289million (a 17.19% year-on-year growth) and net profits of RMB48.38 million (a 95% year-on-year increase); andthe food division reported operating revenue of RMB450 million (a year-on-year decline of 0.55%) and net profitsof RMB60.97 million (a 0.64% year-on-year expansion).
1. Performance of the Oils and Oilseeds Division
The oils and oilseeds division of the Company is committed to building six major operational platforms—“RiskControl and R&D, Operation of Stocks, Import & Export and Oils & Oilseeds Trading, Procurement of Raw andAuxiliary Materials, Production Management, and Product Marketing”, and building a competitive industrialchain featuring resource integration, information sharing and mutual support based on those platforms. Thisadvantage came into play especially during the COVID-19 pandemic. Given a considerable decrease in demandfor oils in small package of certain channels such as restaurants, canteens and food companies in the first half ofthe year, the Company proactively promoted integrated marketing and online sales, emphasized initiative invarious work, and refreshed the operation and management system under the new circumstances. The oilspressing business enhanced market judgment and seized raw material procurement opportunities. Apart from anadvance order of soybean placed in late last year, procurement was scheduled reasonably to ensure the supply ofraw materials. Jingliang Tianjin achieved, in the first half of the year, an operation rate of as high as 82.35% and asignificant year-on-year growth in net profits. The oils and oilseeds trading business adhered to the hedging modeland placed importance on development of futures, especially on product varieties that were less impacted in thepandemic such as homegrown soybean, sunflower seed oil and non-GMO rapeseed oil, which has helped cushionthe impact of the pandemic. The oil storage business refreshed the service model, actively explored cooperationmodels, and continued to build the brand in storage and management service.
2. Performance of the Food Production Division
With a decline in business in the first quarter of the year due to the pandemic, the food production divisionadjusted marketing strategies in a timely manner, and continued to carry out product innovation. The snack foodbusiness beefed up production and achieved a monthly output that is higher than the pre-pandemic average whilegiving full play to e-commerce channels and strengthening marketing through short videos and live streaming toturn the crisis to opportunities, in addition to maintaining and promoting the existing distribution channels. Thebaking business strengthened development of new products, completed the development and launch of newproducts in cooperation with other relevant entities, beefed up online sales and improved the sales model.
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to LastAccounting Period
□ Applicable √ Not applicable
No such cases.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
□ Applicable √ Not applicable
No such cases.Part IV Key Corporate Information
1. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual financial report was not audited.
2. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Unit: Yuan
Program | June 30th, 2020 | December 31st, 2019 |
Current Assets: | ||
Monetary Capital | 570,017,788.15 | 557,168,512.39 |
Deposit Reservation for Balance | ||
Lending Funds | ||
Transactional Monetary Assets | 153,300,000.00 | 161,300,000.00 |
Derivative Financial Assets | 120,761,236.80 | 88,792,254.00 |
Notes Receivable |
Account Receivable | 55,374,522.52 | 80,743,986.81 |
Receivables Financing | ||
Advance Payment | 603,135,980.58 | 138,379,800.10 |
Receivable Premium | ||
Reinsurance Accounts Receivable | ||
Provision of Cession Receivable | ||
Other Receivables | 19,032,159.09 | 19,220,097.34 |
Including: The Interest Receivable | 1,854,761.12 | 3,927,438.90 |
Dividend Receivable | ||
Redemptory Monetary Capital for Sale | ||
Inventory | 908,377,480.84 | 1,412,755,661.65 |
Contract Assets | ||
Holding Assets to be Sold. | ||
Non-Current Assets Expiring within One Year | ||
Other Current Assets | 699,968,761.99 | 560,297,233.13 |
Total Current Assets | 3,129,967,929.97 | 3,018,657,545.42 |
Non-current Assets: | ||
offer loans and make advance | ||
Lending Investments | ||
Other Investment on Bonds | ||
Long-term Receivables | ||
Long-term Equity Investment | 205,249,112.47 | 198,301,333.79 |
Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 |
Other non-current financial assets | ||
Investment Property | 23,331,107.05 | 31,781,350.74 |
Fixed Assets | 1,166,435,679.47 | 1,210,450,340.22 |
Construction in progress | 13,941,962.47 | 17,876,177.78 |
Productive Biological Asset | ||
Oil and Gas Assets | ||
Right-of-Use Asset | ||
Intangible Assets | 360,784,402.31 | 368,170,434.38 |
Development Expenditure | ||
Goodwill | 191,394,422.51 | 191,394,422.51 |
Long-term Unamortized Expenses | 20,558,597.19 | 21,026,628.97 |
Deferred Tax Asset | 12,835,744.24 | 2,603,066.38 |
Other Non-current Assets | 190,000,000.00 | 151,005,300.00 |
Non-current Assets in Total | 2,204,531,027.71 | 2,212,609,054.77 |
Total Assets | 5,334,498,957.68 | 5,231,266,600.19 |
Current Liability: | ||
Short-term Borrowing | 1,587,070,726.95 | 1,329,238,701.60 |
Borrowing from the Central Bank | ||
Borrowing Funds | ||
Transactional Monetary Liabilities | ||
Derivative Financial Liabilities | ||
Notes Payable | ||
Accounts Payable | 130,577,918.81 | 130,568,413.43 |
Account Collected in Advance | 481,119,461.41 | |
Contract Liabilities | 304,087,152.59 | |
Financial Assets Sold for Repurchase | ||
Deposits from Customers and Interbank | ||
Receivings from Vicariously Traded Securities | ||
Receivings from Vicariously Sold Securities | ||
Employee Pay Payable | 13,967,836.74 | 25,192,583.58 |
Tax Payable | 33,792,837.21 | 47,842,621.41 |
Other payables | 140,262,576.19 | 96,171,396.23 |
Including: The Payable Interest | 22,529,982.62 | 24,604,524.69 |
Dividends Payable | 11,013,302.88 | 11,013,302.88 |
Handling Charges and Commissions Payable | ||
Dividend Payable for Reinsurance | ||
Holding Liabilities to Be Sold | ||
Non-Current Liabilities Expiring within One Year | ||
Other current liabilities | 30,459,525.96 | |
Total Current Liabilities | 2,240,218,574.45 | 2,110,133,177.66 |
Non-Current Liabilities: | ||
Provision for Insurance Contracts | ||
Long-Term Loan | ||
Bonds payable | ||
Including: Preference Shares | ||
Perpetual Capital Securities | ||
Lease Obligation | ||
Long-term account payable | ||
Long-term employee pay payable | 5,720,716.87 | 5,730,662.87 |
Anticipation liabilities | ||
Deferred Revenue | 70,779,847.50 | 71,518,169.27 |
Deferred Income Tax Liabilities | 45,652,045.42 | 52,788,949.62 |
Other Non-current Liabilities |
Total Non-current Liabilities | 122,152,609.79 | 130,037,781.76 |
Total Liabilities | 2,362,371,184.24 | 2,240,170,959.42 |
Owners Equity: | ||
Capital stock | 726,950,251.00 | 685,790,364.00 |
Other equity instruments | ||
Including: Preference Shares | ||
Perpetual Capital Securities | ||
Capital reserve | 1,679,833,419.67 | 1,595,672,048.19 |
Minus: Treasury Stock | ||
Other Comprehensive Income | 374,359.98 | 267,628.14 |
Reasonable Reserve | ||
Surplus reserves | 122,122,436.98 | 122,122,436.98 |
Generic Risk Reserve | ||
Undistributed profit | 75,949,701.75 | 2,186,806.56 |
Total equity attributable to the shareholders of parent company | 2,605,230,169.38 | 2,406,039,283.87 |
Minority Equity | 366,897,604.06 | 585,056,356.90 |
Total owners' equity | 2,972,127,773.44 | 2,991,095,640.77 |
Total liabilities and owner's equity | 5,334,498,957.68 | 5,231,266,600.19 |
Program | June 30th, 2020 | December 31st, 2019 |
Current Assets: | ||
Monetary Capital | 5,198,155.68 | 5,606,837.37 |
Transactional Monetary Assets | ||
Derivative Financial Assets | ||
Notes Receivable | ||
Account Receivable | 42,510.00 | 42,510.00 |
Receivables Financing | ||
Advance Payment | 518,668.92 | 532,843.92 |
Other Receivables | 12,307,166.41 | 12,612,756.48 |
Including: The Interest Receivable | ||
Dividend Receivable | ||
Inventory | 4,824,035.45 | 4,824,035.45 |
Contract Assets | ||
Holding Assets to be Sold. | ||
Non-Current Assets Expiring within |
One Year | ||
Other Current Assets | 2,412,474.92 | 2,114,765.22 |
Total Current Assets | 25,303,011.38 | 25,733,748.44 |
Non-current Assets: | ||
Lending Investments | ||
Other Investment on Bonds | ||
Held-to-Maturity Investment | ||
Long-term Receivables | ||
Long-term Equity Investment | 2,626,437,846.24 | 2,377,420,527.10 |
Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 |
Other non-current financial assets | ||
Investment Property | 5,325,139.43 | 5,476,357.73 |
Fixed Assets | 2,993,768.05 | 3,028,013.69 |
Construction in progress | ||
Productive Biological Asset | ||
Oil and Gas Assets | ||
Right-of-Use Asset | ||
Intangible Assets | 40,797.91 | 94,800.66 |
Development Expenditure | ||
Goodwill | ||
Long-term Unamortized Expenses | 39,308.08 | 86,477.92 |
Deferred Tax Asset | ||
Other Non-current Assets | ||
Non-current Assets in Total | 2,654,836,859.71 | 2,406,106,177.10 |
Total Assets | 2,680,139,871.09 | 2,431,839,925.54 |
Current Liability: | ||
Short-term Borrowing | ||
Transactional Monetary Liabilities | ||
Derivative Financial Liabilities | ||
Notes Payable | ||
Accounts Payable | ||
Account Collected in Advance | 38,896.41 | |
Contract Liabilities | 38,896.41 | |
Employee Pay Payable | 281,000.00 | 480,445.28 |
Tax Payable | 950,951.18 | 1,709,752.97 |
Other payables | 517,484,318.39 | 503,550,996.94 |
Including: The Payable Interest | 21,082,795.47 | 21,082,795.47 |
Dividends Payable | 3,213,302.88 | 3,213,302.88 |
Holding Liabilities to Be Sold | ||
Non-Current Liabilities Expiring within One Year |
Other current liabilities | ||
Total Current Liabilities | 518,755,165.98 | 505,780,091.60 |
Non-Current Liabilities: | ||
Long-Term Loan | ||
Bonds payable | ||
Including: Preference Shares | ||
Perpetual Capital Securities | ||
Lease Obligation | ||
Long-term account payable | ||
Long-term employee pay payable | ||
Anticipation liabilities | ||
Deferred Revenue | ||
Deferred Income Tax Liabilities | ||
Other Non-current Liabilities | ||
Total Non-current Liabilities | ||
Total Liabilities | 518,755,165.98 | 505,780,091.60 |
Owners Equity: | ||
Capital stock | 726,950,251.00 | 685,790,364.00 |
Other equity instruments | ||
Including: Preference Shares | ||
Perpetual Capital Securities | ||
Capital reserve | 2,381,244,900.85 | 2,173,387,468.71 |
Minus: Treasury Stock | ||
Other Comprehensive Income | ||
Reasonable Reserve | ||
Surplus reserves | 109,487,064.39 | 109,487,064.39 |
Undistributed profit | -1,056,297,511.13 | -1,042,605,063.16 |
Total owners' equity | 2,161,384,705.11 | 1,926,059,833.94 |
Total liabilities and owner's equity | 2,680,139,871.09 | 2,431,839,925.54 |
Program | Half year of 2020 | Half year of 2019 |
I. Gross Revenue | 3,750,773,067.63 | 3,283,277,725.39 |
Including: operating income | 3,750,773,067.63 | 3,283,277,725.39 |
Interest Income | ||
Earned Premium | ||
Handling charges and commissions income | ||
II. Total Operating Cost | 3,575,140,175.66 | 3,253,814,226.61 |
Operating costs | 3,356,201,258.06 | 3,040,678,741.14 |
Interest Expenditure | ||
Handling Charges and Commissions Expenditure | ||
Surrender Value | ||
Net Payments for Insurance Claims | ||
Net withdrawal of reserve fund for insurance contracts | ||
Bond Insurance Expense | ||
Reinsurance Expenses | ||
Tax and Surcharges | 8,651,111.37 | 11,600,563.64 |
Selling Expenses | 106,641,119.14 | 101,231,138.27 |
Administrative Expenses | 78,032,286.29 | 81,298,228.37 |
Research and Development Expenditure | 2,803,717.02 | 531,066.00 |
Financial Expenses | 22,810,683.78 | 18,474,489.19 |
Including: The Interest Expense | 16,975,042.06 | 22,981,293.07 |
Interest Income | 5,373,488.21 | 4,120,628.58 |
plus: other income | 5,046,948.84 | 9,871,098.22 |
Investment income ("-" refers to losses) | 16,695,925.99 | 9,179,302.09 |
Of which: Income from investment in joint ventures | 6,947,778.68 | 2,824,933.21 |
The financial assets measured at amortized cost terminates the recognition of income ( "-" refers to losses) | ||
Exchange Earning ( "-" refers to losses) | ||
Net Open Hedging Income ( "-" refers to losses) | ||
Income of Fair Value Changes ( "-" refers to losses) | -76,876,667.25 | 26,158,281.22 |
Credit Loss ( "-" refers to losses) | ||
Assets Impairment Loss ( "-" refers to losses) | -197,695.56 | |
Assets Disposal Income ( "-" refers to losses) | 11,997,518.40 | |
III. Operating Profit ( "-" refers to losses) | 120,499,099.55 | 86,472,003.15 |
plus: Non-operating income | 689,439.82 | 1,716,443.59 |
minus: Non-operating expenses | 1,418,671.77 | 822,418.62 |
IV. Total Profit ( "-" refers to total losses) | 119,769,867.60 | 87,366,028.12 |
minus: income tax expense | 24,461,831.86 | 22,121,776.12 |
V. Net Profit ( "-" refers to net losses) | 95,308,035.74 | 65,244,252.00 |
i. Classified Based on Business Continuity |
1. Net income from continuing operation ( "-" refers to net losses) | 95,308,035.74 | 65,244,252.00 |
2. Net income from discontinuing operation ( "-" refers to net losses) | ||
ii. Classified Based on the Attribution of the Ownership | ||
1. Net income attributed to shareholders of parent company | 73,762,895.19 | 51,510,904.41 |
2. Minority Interest Income | 21,545,140.55 | 13,733,347.59 |
VI. Net of Tax of Other Comprehensive Income | 106,731.84 | 50,944.52 |
Net of tax of other comprehensive income attributed to shareholders of parent company | 106,731.84 | 50,944.52 |
i. Other Comprehensive Income That Can't Reclassify Income and Loss | ||
1. Re-measure the change value of defined benefit pension plans | ||
2. Other comprehensive income that can not reverse the income and loss under the equity law. | ||
3. Investment of other equity instruments in the fair value changes. | ||
4. The fair value changes of credit risk of the company | ||
5. Others | ||
ii. Other Comprehensive Income That Can Be Re-classified into the Income and Loss | 106,731.84 | 50,944.52 |
1. Other comprehensive income that can reverse the income and loss under the equity law. | ||
2. Investment of other obligatory rights in the fair value changes. | ||
3. Financial assets that can be re-classified into other comprehensive income | ||
4. Credit impairment reserve for other creditor's rights investment | ||
5. Cash Flow Hedging Reserve | ||
6. The Balance of Conversion of Foreign Currency Financial Statements | 106,731.84 | 50,944.52 |
7. Others | ||
Net of tax of other comprehensive income attributed to minority shareholder | ||
VII. Total Comprehensive Income | 95,414,767.58 | 65,295,196.52 |
Total comprehensive income attributed to shareholders of parent company | 73,869,627.03 | 51,561,848.93 |
Total comprehensive income attributed to minority shareholder | 21,545,140.55 | 13,733,347.59 |
VIII. Earnings Per Share: | ||
i. Basic Earnings Per Share | 0.11 | 0.08 |
ii. Diluted Earnings Per Share | 0.11 | 0.08 |
4. Income Statement of Parent Company
Unit: Yuan
Program | Half year of 2019 | Half year of 2018 |
I. Operating Income | 376,609.17 | |
minus: operating costs | ||
Tax and Surcharges | 2,700.00 | 69,076.80 |
Selling Expenses | ||
Administrative Expenses | 13,524,055.12 | 13,511,405.60 |
Research and Development Expenditure | ||
Financial Expenses | -5,045.16 | 7,564,964.27 |
Of which: The Interest Expense | 7,571,583.49 | |
Interest Income | 8,250.44 | 11,083.83 |
plus: other income | 50,313.02 | |
Investment income ("-" refers to losses) | 398,338.36 | |
Of which: Income from investment in joint ventures | ||
The financial assets measured at amortized cost terminates the recognition of income ( "-" refers to losses) | ||
Net open hedging income ( "-" refers to losses) | ||
Income of Fair Value Changes ( "-" refers to losses) | ||
Credit Loss ( "-" refers to losses) | ||
Assets Impairment Loss ( "-" refers to losses) | -4,344.16 | |
Assets Disposal Income ( "-" refers to losses) | ||
II. Operating Profit ( "-" refers to losses) | -12,696,449.41 | -21,149,790.83 |
plus: Non-operating income | 4,001.44 | |
minus: Non-operating expenses | 1,000,000.00 | 469,440.00 |
III. Total Profit ( "-" refers to total losses) | -13,692,447.97 | -21,619,230.83 |
minus: income tax expense | ||
IV. Net Profit ( "-" refers to net losses) | -13,692,447.97 | -21,619,230.83 |
i. Net income from continuing operation ( "-" refers to net losses) | -13,692,447.97 | -21,619,230.83 |
ii. Net income from discontinuing operation ( "-" refers to net losses) | ||
V. Net of Tax of Other Comprehensive Income | ||
i. Other comprehensive income that can't reclassify income and loss | ||
1. Re-measure the change value of defined benefit pension plans |
2. Other comprehensive income that can not reverse the income and loss under the equity law. | ||
3. Investment of other equity instruments in the fair value changes. | ||
4. The fair value changes of credit risk of the company | ||
5. Others | ||
ii. Other comprehensive income that can be re-classified into the income and loss | ||
1. Other comprehensive income that can reverse the income and loss under the equity law. | ||
2. Investment of other obligatory rights in the fair value changes. | ||
3. Financial assets that can be re-classified into other comprehensive income | ||
4. Credit impairment reserve for other creditor's rights investment | ||
5. Cash Flow Hedging Reserve | ||
6. The Balance of Conversion of Foreign Currency Financial Statements | ||
7. Others | ||
VI. Total Comprehensive Income | -13,692,447.97 | -21,619,230.83 |
Program | Half year of 2020 | Half year of 2019 |
I. Cash flow from operating activities: | ||
Cash received for selling goods and providing services | 3,900,040,688.18 | 3,560,970,102.54 |
Net increase in customer deposits and interbank deposits | ||
Net increase in borrowing from the Central Bank | ||
Net increase in borrowing from other financial institutions | ||
Cash received from the premium of the original insurance contract | ||
Net cash received from reinsurance business | ||
Net increase of insured deposit and investment | ||
Cash charged with interest, handling fees and commissions | ||
Net increase in borrowing funds | ||
Net increase in repurchase funds | ||
Net Cash Received of Acting Trading Securities | ||
Refunds of Taxes Received | 6,282,179.39 | 4,638,160.06 |
Other Cash Received Related to Business Activities | 488,634,210.14 | 348,104,540.90 |
Subtotal of Cash flow of Operating Activities | 4,394,957,077.71 | 3,913,712,803.50 |
Cash for Purchase of Goods and Labor Services | 3,523,972,309.51 | 3,124,587,948.71 |
Net Increase in Customer Loans and Advances | ||
Net Increase in Deposits in the Central Bank and Other Banks | ||
Cash for Payment of Original Insurance Contract Claims | ||
Net Increase of Lending Funds | ||
Cash to Pay the Interest, Handling Fees and Commissions | ||
Cash to Pay the Policy Dividend | ||
Cash Paid to and for Employees | 152,383,335.08 | 145,181,797.67 |
Tax Payments | 96,716,033.84 | 83,586,844.52 |
Cash Payment of Other Related Business Activities | 434,789,578.52 | 339,763,918.39 |
Subtotal of Cash Outflow of Operating Activities | 4,207,861,256.95 | 3,693,120,509.29 |
Net Cash Flow from Operating Activities | 187,095,820.76 | 220,592,294.21 |
II. Cash Flow from Investment | ||
Cash Received in Disinvestment | 1,316,317,255.34 | 1,302,736,691.57 |
Cash Received in Return of Investment | 5,120,558.91 | 3,600,120.65 |
Net Cash Received from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 6,618.58 | 66,511.68 |
Net Cash Received from Disposal of Subsidiaries and Other Operating Units | 5,000,000.00 | |
Cash Received Related to Other Business Activities | ||
Subtotal of Cash flow of Operating Activities | 1,326,444,432.83 | 1,306,403,323.90 |
Net Cash Payment for the Purchase of Fixed Assets, Intangible Assets and Other Long-term Assets | 11,385,922.53 | 26,905,240.57 |
Cash Payment for Investment | 1,709,222,428.58 | 1,870,848,788.60 |
Net Increase in Hypothecated Loan | ||
Net Cash Payment of Subsidiaries and Other Business Units | ||
Cash Payment of Other Activities Related to Investment | ||
Subtotal of Cash Outflow of Investment Activities | 1,720,608,351.11 | 1,897,754,029.17 |
Net Cash Flow from Investment Activities | -394,163,918.28 | -591,350,705.27 |
III. Cash Flow from Financial Activities: | ||
Cash Received by Absorbing Investment | ||
Of which: Cash Received by Subsidiaries in Absorbing Investment from Minority Shareholders | ||
Cash Received from Loans | 1,643,287,048.37 | 1,441,114,788.78 |
Cash Received by Issuing Bonds | ||
Other Cash Received Related to Financial Activities | ||
Subtotal of Cash flow of Financial Activities | 1,643,287,048.37 | 1,441,114,788.78 |
Cash Payment for Debt | 1,385,455,023.02 | 1,268,871,965.95 |
Cash Paid for Distribution of Dividends, Profits or Interests | 26,157,547.48 | 47,473,893.65 |
Of which: Dividends and Profits Paid by Subsidiaries to Minority Shareholders | ||
Cash Payment of Other Activities Related to Financial Activities | ||
Subtotal of Cash Outflow of Financial Activities | 1,411,612,570.50 | 1,316,345,859.60 |
Net Cash Flow from Financial Activities | 231,674,477.87 | 124,768,929.18 |
IV. The Impact of Change in Exchange Rate on Cash and Cash Equivalents | -9,686,369.41 | 3,248,224.24 |
V. Net Increase in Cash and Cash Equivalents | 14,920,010.94 | -242,741,257.64 |
Plus: Initial Cash and cash Equivalents Balance | 555,097,777.21 | 867,870,016.78 |
VI. Cash and Cash Equivalents Balance at the End of the Period | 570,017,788.15 | 625,128,759.14 |
Program | Half year of 2020 | Half year of 2019 |
I. Cash Flow from Operating Activities: | ||
Cash received for selling goods and providing services | ||
Refunds of Taxes Received | 200.00 | 1,800.00 |
Other Cash Received Related to Business Activities | 24,529,151.07 | 29,377,536.58 |
Subtotal of Cash flow of Operating Activities | 24,529,351.07 | 29,379,336.58 |
Cash for Purchase of Goods and Labor Services | 24,592.17 | |
Net Increase in Customer Loans and Advances | ||
Net Increase in Deposits in the Central Bank and Other Banks | ||
Cash for Payment of Original Insurance Contract Claims | ||
Net Increase in Financial Assets Held for Trading Purposes | ||
Net Increase of Lending Funds | ||
Cash to Pay the Interest, Handling Fees and Commissions | ||
Cash to Pay the Policy Dividend | ||
Cash Paid to and for Employees | 7,904,980.50 | 9,271,322.77 |
Tax Payments | 298,780.02 | 71,408.74 |
Cash Payment of Other Related Business Activities | 18,496,617.45 | 50,350,341.42 |
Subtotal of Cash Outflow of Operating Activities | 26,724,970.14 | 59,693,072.93 |
Net Cash Flow from Operating Activities | -2,195,619.07 | -30,313,736.35 |
II. Cash Flow from Investment | ||
Cash Received in Disinvestment | ||
Cash Received in Return of Investment | ||
Net Cash Received from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | ||
Net Cash Received from Disposal of Subsidiaries and Other Operating Units | ||
Cash Received Related to Other Business Activities | ||
Subtotal of Cash flow of Operating Activities |
Net Cash Payment for the Purchase of Fixed Assets, Intangible Assets and Other Long-term Assets | 142,327.44 | 109,751.52 |
Cash Payment for Investment | 1,780,563.05 | |
Net Cash Payment of Subsidiaries and Other Business Units | ||
Cash Payment of Other Activities Related to Investment | ||
Subtotal of Cash Outflow of Investment Activities | 142,327.44 | 1,890,314.57 |
Net Cash Flow from Investment Activities | -142,327.44 | -1,890,314.57 |
III. Cash Flow from Financial Activities: | ||
Cash Received by Absorbing Investment | ||
Cash Received from Loans | 4,000,000.00 | 27,700,000.00 |
Other Cash Received Related to Financial Activities | ||
Subtotal of Cash flow of Financial Activities | 4,000,000.00 | 27,700,000.00 |
Cash Payment for Debt | ||
Cash Paid for Distribution of Dividends, Profits or Interests | ||
Cash Payment of Other Activities Related to Financial Activities | ||
Subtotal of Cash Outflow of Financial Activities | ||
Net Cash Flow from Financial Activities | 4,000,000.00 | 27,700,000.00 |
IV. The Impact of Change in Exchange Rate on Cash and Cash Equivalents | ||
V. Net Increase in Cash and Cash Equivalents | 1,662,053.49 | -4,504,050.92 |
Plus: Initial Cash and cash Equivalents Balance | 3,536,102.19 | 13,597,659.66 |
VI. Cash and Cash Equivalents Balance at the End of the Period | 5,198,155.68 | 9,093,608.74 |
7. Consolidated Statement of Change in Equity
Unit: Yuan
Program | Half year of 2020 | ||||||||||||||
Ownership interest attributable to the parent company | Minority Equity | Total owners' equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserve | Minus: Treasury Stock | Other Comprehensive Income | Reasonable Reserve | Surplus reserves | Generic Risk Reserve | Undistributed profit | Others | In total | |||||
Preference Shares | Perpetual Capital Securities | Others | |||||||||||||
I. Ending Balance of Last Year | 685,790,364.00 | 1,595,672,048.19 | 267,628.14 | 122,122,436.98 | 2,186,806.56 | 2,406,039,283.87 | 585,056,356.90 | 2,991,095,640.77 | |||||||
Plus: Changes in Accounting Policies | |||||||||||||||
Early Error Correction | |||||||||||||||
Enterprise Merger under the Same Control | |||||||||||||||
Others | |||||||||||||||
II. Beginning Balance of This Year | 685,790,364.00 | 1,595,672,048.19 | 267,628.14 | 122,122,436.98 | 2,186,806.56 | 2,406,039,283.87 | 585,056,356.90 | 2,991,095,640.77 | |||||||
III. Changes in This Period ( "-" refers to losses) | 41,159,887.00 | 84,161,371.48 | 106,731.84 | 73,762,895.19 | 199,190,885.51 | -218,158,752.84 | -18,967,867.33 | ||||||||
A. Total Comprehensive Income | 106,731.84 | 73,762,895.19 | 73,869,627.03 | 21,545,140.55 | 95,414,767.58 | ||||||||||
B. Input and Capital Reduction of Owners | 41,159,887.00 | 84,161,371.48 | 125,321,258.48 | -237,694,893.39 | -112,373,634.91 | ||||||||||
1. Common Stock Invested by the Owner | |||||||||||||||
2. Invested Capital of Other Equity Instrument Holders | 41,159,887.00 | 207,857,432.14 | 249,017,319.14 | 249,017,319.14 | |||||||||||
3. Share Payment Included in Owner's Equity | |||||||||||||||
4. Others | -123,696,060.66 | -123,696,060.66 | -237,694,893.39 | -361,390,954.05 | |||||||||||
C. Profit Distribution | -2,009,000.00 | -2,009,000.00 | |||||||||||||
1. Withdrawal Legal Surplus | |||||||||||||||
2. Withdrawal Generic Risk Reserve | |||||||||||||||
3. Distribution of Owners (or Shareholders) | -2,009,000.00 | -2,009,000.00 | |||||||||||||
4. Others | |||||||||||||||
D. Internal Carry-over of Owner's Rights and Interests | |||||||||||||||
1. Conversion of Capital Reserve to Additional Capital (Or Equity) | |||||||||||||||
2. Conversion of Surplus Reserve to Additional Capital (Or Equity) | |||||||||||||||
3. Surplus Reserve Covers the Deficit | |||||||||||||||
4. Change of Benefit Plan Transferred to Retained Income | |||||||||||||||
5. Other Comprehensive Income |
Transferred to Retained Income | |||||||||||||||
6. Others | |||||||||||||||
E. Special Reserve | |||||||||||||||
1. Current Withdrawal | |||||||||||||||
2. Current Use | |||||||||||||||
F. Others | |||||||||||||||
IV. Current Ending Balance | 726,950,251.00 | 1,679,833,419.67 | 374,359.98 | 122,122,436.98 | 75,949,701.75 | 2,605,230,169.38 | 366,897,604.06 | 2,972,127,773.44 |
Program | Half year of 2019 | ||||||||||||||
Ownership interest attributable to the parent company | Minority Equity | Total owners' equity | |||||||||||||
Capital stock | Other equity instruments | Capital reserve | Minus: Treasury Stock | Other Comprehensive Income | Reasonable Reserve | Surplus reserves | Generic Risk Reserve | Undistributed profit | Others | In total | |||||
Preference Shares | Perpetual Capital Securities | Others | |||||||||||||
I. Ending Balance of Last Year | 685,790,364.00 | 1,595,711,805.31 | 438.33 | 122,122,436.98 | -131,155,119.19 | 2,272,469,925.43 | 566,596,569.02 | 2,839,066,494.45 | |||||||
Plus: Changes in Accounting Policies | |||||||||||||||
Early Error Correction | |||||||||||||||
Enterprise Merger under the Same Control | |||||||||||||||
Others | |||||||||||||||
II. Beginning Balance of This Year | 685,790,364.00 | 1,595,711,805.31 | 438.33 | 122,122,436.98 | -131,155,119.19 | 2,272,469,925.43 | 566,596,569.02 | 2,839,066,494.45 | |||||||
III. Changes in This Period ( "-" refers to losses) | 50,944.52 | 51,510,904.41 | 51,561,848.93 | 1,086,293.89 | 52,648,142.82 | ||||||||||
A. Total Comprehensive Income | 31,507.57 | 51,510,904.41 | 51,542,411.98 | 13,733,347.59 | 65,275,759.57 | ||||||||||
B. Input and Capital Reduction of Owners | -1,800,000.00 | -1,800,000.00 | |||||||||||||
1. Common Stock Invested by the Owner | -1,800,000.00 | -1,800,000.00 | |||||||||||||
2. Invested Capital of Other Equity Instrument Holders | |||||||||||||||
3. Share Payment Included in Owner's Equity | |||||||||||||||
4. Others | |||||||||||||||
C. Profit Distribution | -10,847,053.70 | -10,847,053.70 | |||||||||||||
1. Withdrawal Legal Surplus | |||||||||||||||
2. Withdrawal Generic Risk Reserve | |||||||||||||||
3. Distribution of Owners (or Shareholders) | -10,847,053.70 | -10,847,053.70 | |||||||||||||
4. Others |
D. Internal Carry-over of Owner's Rights and Interests | 19,436.95 | 19,436.95 | 19,436.95 | ||||||||||||
1. Conversion of Capital Reserve to Additional Capital (Or Equity) | |||||||||||||||
2. Conversion of Surplus Reserve to Additional Capital (Or Equity) | |||||||||||||||
3. Surplus Reserve Covers the Deficit | |||||||||||||||
4. Change of Benefit Plan Transferred to Retained Income | |||||||||||||||
5. Other Comprehensive Income Transferred to Retained Income | |||||||||||||||
6. Others | 19,436.95 | 19,436.95 | 19,436.95 | ||||||||||||
E. Special Reserve | |||||||||||||||
1. Current Withdrawal | |||||||||||||||
2. Current Use | |||||||||||||||
F. Others | |||||||||||||||
IV. Current Ending Balance | 685,790,364.00 | 1,595,711,805.31 | 51,382.85 | 122,122,436.98 | -79,644,214.78 | 2,324,031,774.36 | 567,682,862.91 | 2,891,714,637.27 |
Program | Half year of 2020 | |||||||||||
Capital stock | Other equity instruments | Capital reserve | Minus: Treasury Stock | Other Comprehensive Income | Reasonable Reserve | Surplus reserves | Undistributed profit | Others | Total owners' equity | |||
Preference Shares | Perpetual Capital Securities | Others | ||||||||||
I. Ending Balance of Last Year | 685,790,364.00 | 2,173,387,468.71 | 109,487,064.39 | 1,042,605,063.16 | 1,926,059,833.94 | |||||||
Plus: Changes in Accounting Policies | ||||||||||||
Early Error Correction | ||||||||||||
Others | ||||||||||||
II. Beginning Balance of This Year | 685,790,364.00 | 2,173,387,468.71 | 109,487,064.39 | 1,042,605,063.16 | 1,926,059,833.94 | |||||||
III. Changes in This Period ( "-" refers to losses) | 41,159,887.00 | 207,857,432.14 | -13,692,447.97 | 235,324,871.17 | ||||||||
A. Total Comprehensive Income | -13,692,447.97 | -13,692,447.97 | ||||||||||
B. Input and Capital Reduction of Owners | 41,159,887.00 | 207,857,432.14 | 249,017,319.14 |
1. Common Stock Invested by the Owner | ||||||||||||
2. Invested Capital of Other Equity Instrument Holders | 41,159,887.00 | 207,857,432.14 | 249,017,319.14 | |||||||||
3. Share Payment Included in Owner's Equity | ||||||||||||
4. Others | ||||||||||||
C. Profit Distribution | ||||||||||||
1. Withdrawal Legal Surplus | ||||||||||||
2. Distribution of Owners (or Shareholders) | ||||||||||||
3. Others | ||||||||||||
D. Internal Carry-over of Owner's Rights and Interests | ||||||||||||
1. Conversion of Capital Reserve to Additional Capital (Or Equity) | ||||||||||||
2. Conversion of Surplus Reserve to Additional Capital (Or Equity) | ||||||||||||
3. Surplus Reserve Covers the Deficit | ||||||||||||
4. Change of Benefit Plan Transferred to Retained Income | ||||||||||||
5. Other Comprehensive Income Transferred to Retained Income | ||||||||||||
6. Others | ||||||||||||
E. Special Reserve | ||||||||||||
1. Current Withdrawal | ||||||||||||
2. Current Use | ||||||||||||
F. Others | ||||||||||||
IV. Current Ending Balance | 726,950,251.00 | 2,381,244,900.85 | 109,487,064.39 | 1,056,297,511.13 | 2,161,384,705.11 |
Program | Half year of 2019 | |||||||||||
Capital stock | Other equity instruments | Capital reserve | Minus: Treasury Stock | Other Comprehensive Income | Reasonable Reserve | Surplus reserves | Undistributed profit | Others | Total owners' equity | |||
Preference Shares | Perpetual Capital Securities | Others | ||||||||||
I. Ending Balance of Last Year | 685,790,364.00 | 2,173,387,468.71 | 109,487,064.39 | -994,322,827.98 | 1,974,342,069.12 | |||||||
Plus: Changes in Accounting |
Policies | ||||||||||||
Early Error Correction | ||||||||||||
Others | ||||||||||||
II. Beginning Balance of This Year | 685,790,364.00 | 2,173,387,468.71 | 109,487,064.39 | -994,322,827.98 | 1,974,342,069.12 | |||||||
III. Changes in This Period ( "-" refers to losses) | -21,619,230.83 | -21,619,230.83 | ||||||||||
A. Total Comprehensive Income | -21,619,230.83 | -21,619,230.83 | ||||||||||
B. Input and Capital Reduction of Owners | ||||||||||||
1. Common Stock Invested by the Owner | ||||||||||||
2. Invested Capital of Other Equity Instrument Holders | ||||||||||||
3. Share Payment Included in Owner's Equity | ||||||||||||
4. Others | ||||||||||||
C. Profit Distribution | ||||||||||||
1. Withdrawal Legal Surplus | ||||||||||||
2. Distribution of Owners (or Shareholders) | ||||||||||||
3. Others | ||||||||||||
D. Internal Carry-over of Owner's Rights and Interests | ||||||||||||
1. Conversion of Capital Reserve to Additional Capital (Or Equity) | ||||||||||||
2. Conversion of Surplus Reserve to Additional Capital (Or Equity) | ||||||||||||
3. Surplus Reserve Covers the Deficit | ||||||||||||
4. Change of Benefit Plan Transferred to Retained Income | ||||||||||||
5. Other Comprehensive Income Transferred to Retained Income | ||||||||||||
6. Others | ||||||||||||
E. Special Reserve | ||||||||||||
1. Current Withdrawal | ||||||||||||
2. Current Use | ||||||||||||
F. Others | ||||||||||||
IV. Current Ending Balance | 685,790,364.00 | 2,173,387,468.71 | 109,487,064.39 | -1,015,942,058.81 | 1,952,722,838.29 |
Hainan Jingliang Holdings Co., Ltd.Notes to 2020 Semi-annual Financial Statements
(Unless otherwise stated, the amount unit is RMB Yuan)I. Basic Information of the Company(I) The registration place, form of organization and headquarter address of the companyHainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "JingliangHoldings") is a limited company which was approved by No.1 Qiongfu Document (1992) of the General Office ofHainan Provincial People's Government and No. 6 Qiongyin document (1992) of Hainan Provincial People's Bank andwas re-registered by Hainan Zhujiang Industrial Company on January 11, 1992. After the re-registration, the companyissued 81,880,000 shares in which the net assets of the original company were exchanged with 60,793,600 shares and21,086,400 shares were newly issued. The company's name is Hainan Pearl River Industrial Co., Ltd. The registrationnumber of the business license of the joint stock company is 20128455-6, and the holding parent company, GuangzhouZhujiang Industrial Company holds 36,393,600 shares, accounting for 44.45% of the shares. In December 1992,according to the No. 83 document issued by the Securities and Exchange Administration Office of the People's Bank ofChina in 1992, the company was approved to issue additional 21,086,400 shares which were traded on Shenzhen StockExchange. The company mainly involves the real estate industry.On March 25, 1993, according to No. 028 document issued by the Office of the Leading Group of Hainan Stock-holding Pilot
System (1993) and No. 099 document issued by Branch of Bank of China in Shenzhen Special Economic Zone(1993),the company increased its share capital by 2 shares in accordance with the original share capital allotment of 10 and 5,and then increased its share capital by 139,196,000 shares. At the end of 1993, the controlling shareholder, GuangzhouPearl River Industrial Corporation held 48,969,120 shares, accounting for 35.18%.In 1994, the capital stocks were increased by the ratio of 10:10 and the total stock capital was 278,392,000 shares.The dominant stockholder, Guangzhou Pear River Industrial Company held 97,938,240 shares, accounting for 35.18%of the shares.
In 1995, according to No. 45 document and No. 12 documented issued by Shenzhen Securities Office (1995), thecompany was approved to issue 50,000,000 B shares. Based on the additional B shares, the capital stock was increasedby 10:1.5 ratio. The capital stock was 377,650,800 shares after the increase. The holding parent company GuangzhouPearl River Industrial Corporation held 112,628,976 shares, accounting for 29.82% of the shares.In 1999, Guangzhou Pearl River Industrial Group Co., Ltd. transferred 112,628,976 shares to Beijing Wanfa RealEstate Development Co., Ltd. After the equity transfer was completed in June 1999, Beijing Wanfa Real EstateDevelopment Co., Ltd. held 112,628,976 shares, accounting for 29.82% of the total shares, and became the dominantstockholder of the company.On January 10 of 2000, the company was changed to Hainan Pearl River Holdings Co., Ltd. and the business
license of for legal person was renewed by the Administration for Industry and Commerce of Hainan Province.
On August 17 of 2006, the reform of the equity division structure of the company was implemented. The companyincreased its share capital to all shareholders in a ratio of 10 to 1.3. The total share capital increased by 49,094,604shares. The original non-tradable shareholders transferred the additional shares to the tradable A-share shareholders.Beijing Wanfa Real Estate Development Co., Ltd. advanced the consideration shares of shareholders who didn’t expresstheir opinions clearly. After the increase of shares, the total capital stock was 426,745,404 shares. The former controllingshareholder, Beijing Wanfa Real Estate Development Co., Ltd., held 107,993,698 shares, accounting for 25.31% of theshares. In 2007, non-tradable shareholders repaid 3,289,780 shares in equity division consideration. In 2009, non-tradableshareholders repaid 1,196,000 shares in equity division consideration.
On September 2 of 2016, Beijing Wanfa Real Estate Development Co., Ltd., the former controlling shareholder,transferred 112,479,478 shares to Beijing Grain Group Co., Ltd. After the equity transfer was completed in September2016, Beijing Grain Group Co., Ltd. held 112,479,478 shares, accounting for 26.36% of the total shares. In November2016, based on the goal of the major assets reorganization and the confidence in the future of the company, Beijing GrainGroup Co., Ltd. decided to increase its shares through competitive bidding in the secondary market, increased its shares to123,561,963 shares, accounting for 28.95% of the total shares and become the first majority shareholder of the company.
According to the major assets reorganization plan and delivery agreement, the company determined July 31, 2017 as thedelivery date of major assets. On September 14, 2017, in accordance with the resolution of the 2nd provisional shareholders’ meetingof the company on November 18 of 2016 and the Approval of Hainan Pearl River Holding Company Limited to Purchase Assets andRaise Matching Funds from Beijing Grain Group Limited Company issued by China Securities Regulatory Commission on July 28,2017 (Approval No. 1391 Supervisory License (2017) authorization: 1), the company purchases assets from the original shareholdersof Beijing Grain Products Co., Ltd. by issuing 210,079,552 shares and paying the difference of transaction price (1,699,543,600yuan). The face value of the issued share was 1.00 yuan, and the issue price was 8.09 yuan per share. 2. The company has issued48,965,408 new shares to Beijing Grain Group in private as the matching funds to purchase the assets. The face value of the issuedshare was 1.00 yuan, and the issue price was RMB 8.82 per share. Beijing Grain Group purchased the shares with monetary capital.The registered capital after issuance is RMB 685,790,364.00 and the equity is RMB 685,790,364.00. Grain Group accounted for
42.06% of the total shares and became the largest shareholder of the company.
On March 10, 2018, the company completed the registration procedures for the change of company name, legalrepresentative, registered capital and business scope, and obtained the Business License of Enterprise Legal Personapproved and renewed by Hainan Administration for Industry and Commerce.
The company completed the procedures for the change of legal representative on April 16, 2019.
The relevant information after the change is as follows:
Company Name: Hainan Jingliang Holdings Co., Ltd.
Unified Social Credit Code: 914600002012845568
Type: Limited company (listed and state-owned holding company)Registration Address: 29 Floor, Emperor Building, Pearl River Plaza, Binhai Avenue, Haikou.Office Address: 29 Floor, Emperor Building, Pearl River Plaza, Binhai Avenue, Haikou.Legal Representative: Li ShaolingRegister Date: March 22, 1988Business Term: March 22 of 1988 to September 20 of 2025The parent company is Beijing Food Group Co., Ltd.On April 3, 2020, the purchase of 25.1149% of Zhejiang Xiaowangzi's equity by the company and its subsidiaryBeijing Jingliang Food Co., Ltd. through cash payment and issuance of shares has been approved by the China SecuritiesRegulatory Commission. As of the date of this financial report, the transaction has been completed.(II) The nature of the Company's business and its main business activities
1. Business scope of the Company
The Company belongs to manufacturing-agricultural and sideline food processing industry, mainly including: food,beverages, oils, oils and by-products, vegetable proteins and their products, organic fertilizers, microbial fertilizers andagricultural fertilizers; land consolidation, soil remediation; agricultural comprehensive planting and development,animal husbandry and aquaculture, production and marketing of agricultural equipment; computer network technology,investment in communication projects, research and development and application of high-tech products; investment andconsultation of environmental protection projects; animation, graphic design; import and export trade in goods andtechnology; rental of own premises. (General business projects shall be operated independently, and the permittedbusiness projects shall be operated on the basis of relevant permits or approval documents) (Projects subject to approvalby the relevant departments shall not be allowed to engage in business activities until approved by the relevantdepartments in accordance with the law.).
2. The nature of the Company's business and its main business activities
The Company and its subsidiaries are principally engaged in the processing, production and marketing of food,agricultural and by-products, oils and fats, oils and leisure foods.
3. Basic framework of the Company
The basic organizational structure of the Company: the shareholders' general meeting is the highest authority of theCompany, the board of directors is the executive body of the shareholders' general meeting, the board of supervisors is theinternal supervision body of the Company, and the general manager is responsible for the daily operation and managementof the Company. The Company consists of the Office of the Board of Directors, the Office of the Board of Supervisors, theDepartment of Comprehensive Affairs, the Department of Securities Affairs, the Department of Strategic Investment, theDepartment of Finance (Settlement Center), the Department of Legal Affairs and Compliance, the Department of HumanResources, the Department of Party and Mass Work, and the Department of Discipline Inspection and Supervision.
On May 6 of 2010, Beijing Investment Consulting Company, the branch of Hainan Pearl River Holding Co., Ltd. wasestablished and the unified the social credit code is 91110107554875351W. Address: Room 5078, Building 3, No.3,Xijing Road, Badachu High-tech Park, Shijingshan District, Beijing. Business scope includes investment consulting,hotel investment and management; Purchase and lease of construction equipment; Sales of building materials, hardwareand electrical equipment, furniture, plastics, daily necessities, leather products, rubber products, fodder, no longerpackaged seeds, cereals, legumes, potato, flowers, grass and ornamental plants, fertilizers, non-metallic ores, metalproducts, metal ores, metal materials, goods import and export; R&D and application of high-tech products. (1. No fundshall be raised in a public way without the approval of the relevant departments. 2. No securities products and financialderivative instruments shall be traded in public. 3. No loans shall be granted. 4. No guarantee shall be provided forenterprises other than the invested enterprises. 5. No commitment shall be made to investors that the investment will bringno loss or the minimum earnings can be ensured. Projects that need to be approved according to law can be put into theoperation after being approved by relevant departments.) On August 3 of 2018, it was renamed as Beijing Branch ofHainan Jingliang Holdings Co., Ltd.
(III) Approval of financial statements
This financial statement has been approved by the board of directors of the company on August 20, 2020.
(IV) Scope of Consolidated Statements
A total of 17 subsidiaries of the Company were included in the scope of consolidation in June 30
th, 2020.
II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transactions and events, the Company'sfinancial statements are prepared in accordance with the Accounting Standards for Business Enterprises-Basic Standard(promulgation of Decree No. 33 of Ministry of Finance and revision of Decree No. 76 of Ministry of Finance), 42specific accounting standards, guidelines for the application of accounting standards for business enterprises,explanations of accounting standards for business enterprises and other relevant provisions promulgated and revised onFebruary 15, 2006 and thereafter (hereinafter collectively referred to as "Accounting Standards for BusinessEnterprises”), as well as the disclosure provisions of the China Securities Regulatory Commission's Rules for ReportingInformation Disclosure by Companies Offering Securities to the Public No.15-General Provisions on FinancialReporting (revised in 2014)
According to the relevant provisions of Accounting Standard for Business Enterprises, the Company’s accountingis based on the accrual basis. Except for certain financial instruments, the financial statements are measured on the basisof historical costs. Non-current assets held for sale shall be valued at the lower of the fair value less estimated expensesand the original book value when the conditions for holding for sale are met. If the assets are impaired, thecorresponding impairment reserves shall be withdrawn in accordance with the relevant provisions.
2. Going concern
These financial statements are presented on a going-concern basis and the Company has a going-concern capabilityfor at least 12 months from the end of the reporting period.III. Statement of Compliance with Enterprise Accounting StandardsThe financial statements prepared by the Company conform to the requirements of the Accounting Standards forBusiness Enterprises and truly and completely reflect the Company's merger and the financial status of the parentcompany as of June 30, 2020, the merger and parent company's operating results, the merger and parent company's cashflow and other relevant information of January to June, 2020. In addition, the Company's financial statements comply inall material respects with the disclosure requirements of the financial statements and its notes in the Rules forPreparation and Reporting Information Disclosure of Companies Offering Securities to the Public No.15-GeneralProvisions on Financial Reports revised by China Securities Regulatory Commission in 2014.IV. Significant Accounting Policies and Estimates
1. Accounting Period
The accounting period of the Company is divided into an annual period and an interim period. The accountinginterim period refers to the reporting period shorter than a full accounting year. The fiscal year of the Company adopts theGregorian calendar year, that is, from January 1 to December 31 of each year.
2. Business Cycle
The normal business cycle is the period from the time the Company purchases assets for processing to the time whencash or cash equivalents are realized. The Company uses 12 months as an business cycle and uses it as a liquidityclassification standard for assets and liabilities.
3. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate.The Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore subsidiaries ofthe Company determine USD as their bookkeeping standard currency based on the currencies in the main economicenvironment in which they operate. The currency used by the Company in preparing these financial statements is RMB.
4. The Accounting Treatment of Business Combination under the Same Control and Different Control
Business Combination refers to the transaction or event in which two or more separate enterprises are merged toform one reporting entity. Business combination can be divided into business combination under the same control andbusiness combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties beforeand after the combination, and the control is not temporary, so it is the business combination under the same control. Incase of business combination under the same control, the party that obtains control of other enterprises participating in the
combination on the combination date shall be the combination party, and the other enterprises participating in thecombination shall be the merged party. The combination date refers to the date on which the combination party actuallyacquires control over the merged party.The assets and liabilities acquired by the combination party are measured at the book value of the merged party at thedate of consolidation, including goodwill that was formed during acquisition by end controller . If the difference betweenthe book value of the net assets acquired by the merging party and the book value of the merged consideration (or the totalpar value of the issued shares) paid by the merging party, and the capital reserve (share capital premium) shall be adjusted;If the capital reserve (equity premium) is insufficient to offset, the retained earnings shall be adjusted.The direct expenses incurred by the merging party for the purpose of business combination shall be included in theprofits and losses of the current period when they are incurred.
(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties beforeand after the merger, the enterprise merger is not under the same control. In case of business combination under differentcontrol, the party that obtains control of other enterprises participating in the combination on the date of purchase shall bethe Purchaser, and the other enterprises participating in the combination shall be the Purchase. Purchase date means thedate on which the Purchaser actually acquires control of the Purchase.For business combination under different control, the merger cost includes the assets, liabilities and fair value ofequity securities issued by the Purchaser in order to obtain the control over the Purchase on the date of purchase, and theintermediary fees such as audit, legal service, appraisal and consultation and other management fees for the enterprisemerger are used to record into the profits and losses of the current period when incurred. The transaction costs of equity ordebt securities issued by the Purchaser as a merger consideration are included in the initial recognition amount of theequity or debt securities. Contingent consideration involved shall be included in the consolidation cost at its fair value atthe purchase date, and the consolidation goodwill shall be adjusted accordingly if new or further evidence of the existenceof circumstances 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 assets acquired duringthe consolidation are measured at the fair value at the date of purchase. The difference between the merger costs and thefair value shares of the identifiable net assets of the Purchase at the purchase date obtained in the merger is recognized asgoodwill. If the combined cost is less than the fair value of the identifiable net assets of the Purchase in the merger, first,the fair value of the identifiable assets, liabilities and contingent liabilities of the Purchase and the measurement of theconsolidation cost shall be re-checked. If the consolidation cost is still smaller than the fair value share of the identifiablenet assets of the 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 Purchase, if it fails to recognize the deferredincome tax assets on the date of purchase because it does not meet the recognition conditions for the deferred income tax,
and within 12 months of the date of purchase, new or further information is obtained indicating that the relevantcircumstances at the purchase date already exist and the economic benefits from the temporary difference deductible bythe purchaser on the purchase date are expected to be realized, the relevant deferred income tax assets shall be recognized,and the goodwill shall be reduced. If the goodwill is not sufficiently offset, the difference shall be recognized as thecurrent profit or loss; In addition to the above circumstances, the deferred income tax assets related to the enterprisemerger are recognized and included in the current profits and losses.Through multi-transaction and step-by-step business combination under different control, according to the Circularof the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for Business EnterprisesNo.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business Enterprises No.33-ConsolidatedFinancial Statements on the judgment criteria of "package deal" (see 5 (2) of Note 4), it is determined whether themultiple transactions belong to the "package deal". In the case of a "package deal", the accounting treatment shall beperformed with reference to the description in the preceding paragraphs of this section and Note 4,13 "Long-term Equity Investments"; if the transaction is not a "package deal", the accounting treatment shall bedistinguished between the individual financial statements and the consolidated financial statements:
In the individual financial statements, the sum of the book value of the equity investment held by the Purchaserprior to the purchase date and the cost of the new investment at the purchase date shall be taken as the initial investmentcost of the investment; Where the equity of the Purchased held before the date of purchase involves othercomprehensive income, the other consolidated income associated with the investment is accounted for on the same basisas the assets or liabilities directly disposed of by the Purchaser (i.e., except for the corresponding share in the changecaused by the acquisition of the net liability or net assets of the defined benefit plan remeasured in accordance with theequity method, the rest is transferred to the current investment income).In the consolidated financial statements, the equity of the Purchased held prior to the date of purchase isremeasured according to the fair value of the equity at the date of purchase, and the difference between the fair valueand the carrying value is included in the investment income of the current period; Where the equity of the Purchaseeheld before the date of purchase involves other comprehensive income, other consolidated income related thereto shallbe accounted for on the same basis as the direct disposal of the relevant assets or liabilities by the Purchaser (i.e., exceptfor the corresponding share in the change caused by the acquisition of the net liability or net asset of the defined benefitplan remeasured in accordance with the equity method, the rest is converted into the investment income of the currentperiod to which the acquisition date belongs).
5. Preparation Method of Consolidated Financial Statement
(1) Principles for determining the scope of the consolidated financial statement
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control meansthat the Company has the authority over the Investee, enjoys a variable return by participating in the relevant activitiesof the Investee, and has the ability to use its authority over the Investee to influence the amount of such return. The
scope of the merger includes the Company and all its subsidiaries. Subsidiary refers to the main body controlled by theCompany.The Company will re-evaluate the above control definitions once the relevant facts and circumstances change,which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production andoperation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be included inthe scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of, the operating resultsand cash flows prior to the date of disposal have been appropriately included in the consolidated income statement andconsolidated cash flow statement; For subsidiaries disposed of in the current period, the opening amount of theconsolidated balance sheet is not adjusted. The operating results and cash flows of subsidiaries increased byconsolidation after purchase have been properly included in the consolidated income statement and consolidated cashflow statement, and the opening and comparative amounts in the consolidated financial statements have not beenadjusted for subsidiaries that are not under the same control. The operating results and cash flows of the subsidiariesincreased by consolidation 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 flow statement, and thecomparative amount of the consolidated financial statements has been adjusted at the same time.
In the preparation of the consolidated financial statements, if the accounting policies or accounting periods adoptedby the subsidiaries are inconsistent with those adopted by the Company, necessary adjustments shall be made to thefinancial statements of the subsidiaries in accordance with the accounting policies and accounting periods of theCompany. For subsidiaries acquired through business combination under different control, the financial statements shallbe adjusted on the basis of the fair value of identifiable net assets at the date of purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offset at the timeof preparation of the consolidated financial statements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by theCompany for the current period are separately presented as minority shareholders' equity and minority shareholders'profit or loss in the consolidated financial statements under shareholders' equity and net profit. The shares of minorityshareholders' equity in the net profits and losses of subsidiaries for the current period are shown as "minorityshareholders' profits and losses" under the net profit item in the consolidated income statement. Losses shared byminority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders' equity of thesubsidiary at the beginning of the period, and still decrease by a number of shareholders' equity.
When the control of the original subsidiary is lost due to the disposal of part of the equity investment or otherreasons, the residual equity shall be revalued according to its fair value at the date of loss of control. The sum ofconsideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the purchasedate according to the original shareholding proportion shall be included in the investment income of the current periodof loss of control. Other comprehensive income related to the equity investment of the original subsidiary, in the eventof loss of control, the accounting treatment is performed on the same basis as the direct disposal of the relevant assets orliabilities by the Purchased (i.e. converted to current investment income, except for changes resulting from there-measurement of the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary). Thereafter, theresidual equity shall be subsequently measured in accordance with the relevant provisions of Accounting Standards forBusiness Enterprises No.2-Long-term Equity Investment or Accounting Standards for Business EnterprisesNo.22-Recognition and Measurement of Financial Instruments, as detailed in Note IV, 13-Long-term Equity Investmentor Note IV, 9-Financial Instruments.
If the Company disposes of the equity investment in subsidiaries step by step until it loses control through multipletransactions. It is necessary to distinguish whether the transactions that dispose of the equity investment in subsidiariesuntil it loses control belong to a package deal or not. The terms, conditions and economic impact of the transactions forthe disposal of equity investments in subsidiaries are in accordance with one or more of the following circumstancesand generally indicate that multiple transactions should be accounted for as a package deal: ① These transactions wereentered into simultaneously or taking into account each other's influence; ② Only when these transactions are takentogether can a complete business result be achieved; ③ The occurrence of one transaction depends on the occurrenceof at least one other transaction; ④ It is not economical to consider a transaction alone, but it is economical to considerit in conjunction with other transactions. For transactions that are not part of the package deal, each transaction shall beaccounted for in accordance with the principles applicable to the "partial disposal of long-term equity investments insubsidiaries without loss of control" and the "loss of control over existing subsidiaries as a result of the disposal of partof the equity investments or other reasons" (as detailed in the preceding paragraph), as appropriate. If the transactionsinvolving the disposal of equity investments in subsidiaries until the loss of control belong to a package deal, thetransactions shall be accounted for as a transaction involving the disposal of subsidiaries and the loss of control;However, the difference between each disposal price and the share of the subsidiary's net assets corresponding to 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 event of loss ofcontrol.
6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint Operation
A joint venture arrangement is an arrangement under the joint control of two or more participants. The Companydivides the joint venture arrangement into joint ventures and joint ventures in accordance with the rights and obligationsit enjoys in the joint venture arrangement. Joint operation refers to the joint venture arrangement in which the Companyenjoys the assets related to the arrangement and assumes the liabilities related to the arrangement. A joint venture refersto a joint venture arrangement in which the Company only has rights over the net assets of the arrangement.
The Company's investment in the joint venture is accounted for using the equity method, and shall be treated inaccordance with the accounting policy described in Note IV, 13 "Long-term Equity Investment Accounted by the EquityMethod".The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by the Companyseparately, and recognizes the assets and liabilities jointly held and assumed by the Company according to the shares ofthe Company; recognizes the revenue generated from the sale of the share of joint operating output enjoyed by theCompany; recognizes revenue generated from the sale of output from joint operations on the basis of the Company'sshare; confirms the expenses incurred by the Company individually and the expenses incurred by the joint operationaccording to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute business, the samebelow), or purchases assets from the joint venture, the Company recognizes only the portion of the profits and lossesattributable to the other participants in the joint venture that arises from the transaction prior to the sale of such assets toa third party. Where such assets are impaired in accordance with the provisions of Accounting Standards for BusinessEnterprises No.8-Impairment of Assets, the Company shall fully recognize such losses in the case where the assets arecast or sold by the Company to joint operations; For the assets purchased by the Company from the joint operation, theCompany recognizes the losses according to the shares it assumes.
7. Determining Standards for Cash and Cash Equivalent
Cash and cash equivalents of the Company include cash on hand, deposits that can be used for payment at any time,and investments held by the Company with a short term (usually maturing within three months from the date ofpurchase), high liquidity, easy conversion into cash of a known amount, and little risk of value change.
8. Foreign Currency Business and Translation of Foreign Currency Statements
(1) Translation method for foreign currency transaction
At the time of initial confirmation, the foreign currency transactions occurring in the Company shall be convertedinto the bookkeeping functional currency amount at the spot exchange rate on the trading day, but the foreign currencyexchange business or transactions involving foreign currency exchange occurring in the Company shall be convertedinto the bookkeeping functional currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-monetary item
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on thebalance sheet date, and the exchange difference arising therefrom shall be: ① The exchange difference arising fromthe special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalizationshall be handled in accordance with the principle of capitalization of borrowing costs; ② The exchange difference ofthe hedging instruments used for effective hedging of the net investment in overseas operations (the difference isincluded in other comprehensive income, and is not recognized as current profit or loss until the net investment isdisposed of); ③ Except for the amortized cost, the exchange differences arising from the changes in the book balance
of the available-for-sale monetary items in foreign currencies shall be included in the other comprehensive income, andshall be included in the profits and losses of the current period.Where the preparation of the consolidated financial statements involves overseas operations, if there are foreigncurrency monetary items constituting net investment in overseas operations, the exchange differences arising fromexchange rate changes shall be included in other comprehensive income; When disposing of overseas operations, theprofits and losses shall be transferred to the current disposal period.Non-monetary items in foreign currencies measured at historical cost shall still be measured at the bookkeepingamount in functional currency translated at the spot exchange rate on the transaction date. For non-monetary items inforeign currencies measured at fair value, the spot exchange rate at the date of fair value determination shall be adoptedfor conversion. The difference between the converted amount in functional currency and the amount in originalfunctional currency shall be treated as the change in fair value (including the change in exchange rate), and shall berecorded into the profits and losses of the current period or recognized as other comprehensive income.
(3) Translation method for financial statements in foreign currencies
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreigncurrency monetary items constituting net investment in overseas operations, the exchange differences arising fromexchange rate changes shall be as "foreign currency report conversion difference" and be confirmed as othercomprehensive income; When disposing of overseas operations, the profits and losses shall be transferred to the currentdisposal period.
The foreign currency financial statements of overseas operations shall be converted into RMB statements in thefollowing ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balancesheet date; Except for "undistributed profits", other items of shareholders' equity shall be converted at the spot exchangerate at the time of occurrence. The income and expense items in the profit statement shall be converted at the averageexchange rate of the current period on the date of transaction. The undistributed profit at the beginning of the periodshall be the undistributed profit at the end of the period converted from the previous year; The undistributed profits atthe end of the year shall be calculated and listed according to the converted profits distribution items; The differencebetween the converted 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 ofdisposal of overseas operations and loss of control, the balance in translation of the foreign currency statements relatedto the overseas operations as shown below in the shareholders' equity items in the balance sheet shall be transferred tothe profits and losses of the disposal period in whole or in proportion to the disposal of the overseas operations.
Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the averageexchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate changes oncash shall be presented separately in the statement of cash flows as a reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the
prior-period financial statements.
When disposing of all the owner's equity of the Company's overseas operations or losing the control over overseasoperations due to the disposal of part of the equity investment or for other reasons, if the following items ofshareholders' equity in the balance sheet are shown below, the balance in translation of the foreign currency statementattributable to the owner's equity of the parent company related to the overseas operation shall be transferred to theprofits and losses of the current disposal period.
In the event that the proportion of overseas business interests is reduced due to the disposal of part of the equityinvestment or for other reasons, but the control over overseas business operations is not lost, the balance in thetranslation of the foreign currency statements related to the disposal of part of overseas business operations shall beattributed to minority shareholders' interests and shall not be transferred to the profits and losses of the current period.When disposing of part of the equity of an overseas operation as an associated enterprise or a joint venture, the balanceof the translation of the foreign currency statements related to the overseas operation shall be transferred into the profitsand losses of the current disposal period in the proportion of the overseas operation disposed of.
9. Financial instruments
A financial asset or financial liability is recognized when the Company becomes a party to a financial instrumentcontract.
(1) Classification, confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow characteristics offinancial assets, the Company divides financial assets into: Financial assets measured at amortized cost. Financial assetsmeasured at fair value with changes included in other comprehensive income. Financial assets that are measured at fairvalue and whose movements are included in the current profits and losses.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value andwhose changes are included in current profits and losses, relevant transaction costs are directly included in currentprofits and losses. For other types of financial assets, relevant transaction costs are included in the initial recognitionamount. Accounts receivable or notes receivable arising from the sale of products or the provision of labor services thatdo not contain or take into account significant financing components shall be initially recognized by the Company inaccordance with the amount of consideration that the Company is expected to be entitled to receive.
① Financial assets measured at amortized cost
The Company's business model of managing financial assets measured in amortized cost is aimed at collectingcontractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent with the basiclending arrangements, that is, the cash flow generated on a specific date is only the payment of principal and interestbased on the unpaid principal amount. For such financial assets, the Company adopts the effective interest rate methodand carries out subsequent 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 incomeThe Company's business model for managing such financial assets is to collect and sell contractual cash flow, andthe contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements. TheCompany measures these financial assets at fair value and their changes are included in other comprehensive income,but impairment loss or gain, exchange gain or loss and interest income calculated according to the effective interest ratemethod are included into the current profit and loss.In addition, the Company designates some non-tradable equity instrument investments as financial assets measuredat fair value with changes included in other comprehensive income. The Company shall record the relevant dividendincome of such financial assets into the current profits and losses, and the change of fair value into other comprehensiveincome. When the financial asset is derecognized, the accumulated gains or losses previously included in othercomprehensive income will be transferred from other comprehensive income to retained income and will not beincluded in current profits and losses.
③ Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured at fairvalue with changes included in other comprehensive income into financial assets measured at fair value with changesincluded in current profits and losses. In addition, during initial recognition, in order to eliminate or significantly reduceaccounting mismatch, the Company designated part of financial assets as financial assets measured at fair value withchanges included in current profit and loss. For such financial assets, the Company adopts fair value for subsequentmeasurement, and the changes in fair value are included into the current profit and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair valueand whose changes are included in current profits and losses and other financial liabilities. For the financial liabilitiesmeasured at fair value with the changes included into the current profits and losses, the relevant transaction costs aredirectly included into the current profits and losses, and the relevant transaction costs of other financial liabilities areincluded in the initial recognition amount.
① Fair value through Profit and Loss Financial liabilities
Financial liabilities measured at fair value with changes included in current profits and losses, which includetransactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilitiesdesignated to be measured at fair value with changes included in current profits and losses at initial recognition.
Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently measuredaccording to their fair values. Except for those related to hedge accounting, changes in fair values are included incurrent profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits and losses.
Changes in the fair value of this liability caused by changes in the Company's own credit risk are included in othercomprehensive income. When the liability is derecognized, the accumulated change in fair value caused by changes inits own credit risk included in other comprehensive income is transferred to retained earnings. Changes in fair value areaccounted into current profits and losses. If the above-mentioned treatment of the impact of changes in the credit risk ofthese financial liabilities will cause or expand accounting mismatch in profits and losses, the Company will include allprofits or losses of the financial liabilities (including the impact amount of changes in the credit risk of the enterpriseitself) into the current profits and losses.
② Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that donot meet the conditions for termination of recognition or continue to be involved in the transferred financial assets,other financial liabilities are classified as financial liabilities measured at amortized cost and subsequently measured atamortized cost. Gains or losses arising from termination of recognition or amortization are included in current profitsand losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ①The termination of thecontractual right to receive cash flow from the financial asset. ②The financial asset has been transferred, and almost allrisks and rewards related to the ownership of the financial asset have been transferred to the transferee. ③The financialasset has been transferred. Although the enterprise has neither transferred nor retained almost all risks and rewards inthe ownership of the financial asset, it has given up its control over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financialassets, and does not give up the control over the financial assets, the relevant financial assets shall be recognizedaccording to the extent of continuous involvement in the transferred financial assets, and the relevant liabilities shall berecognized accordingly. The degree of continuous involvement in the transferred financial assets refers to the risk levelfaced by the enterprise due to the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference betweenthe book value of the transferred financial assets and the sum of the consideration received due to the transfer and theaccumulated amount of changes in fair value originally included in other comprehensive income shall be included intothe current profits and losses.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of thetransferred financial assets shall be apportioned according to its relative fair value between the derecognized part andthe non-derecognized part, and the difference between the sum of the consideration received due to the transfer and theaccumulated change in fair value originally included in other comprehensive income that shall be apportioned to thederecognized part and the allocated aforesaid book amount shall be included into the current profits and losses.
For financial assets sold by the Company with recourse, or for endorsement and transfer of held financial assets, it
is necessary to determine whether almost all risks and rewards in the ownership of the financial assets have beentransferred. If almost all risks and rewards in the ownership of the financial asset have been transferred to the transferee,the recognition of the financial asset shall be terminated. If almost all risks and rewards on the ownership of a financialasset are retained, the recognition of the financial asset shall not be terminated. If almost all risks and rewards related tothe ownership of financial assets have not been transferred or retained, it shall continue to judge whether the enterpriseretains control over the assets and carry out accounting treatment according to the principles mentioned in the precedingparagraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved, the Company terminates therecognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an agreement toreplace the original financial liabilities by assuming new financial liabilities. If the contract terms of the new financialliabilities and the original financial liabilities are substantially different, the original financial liabilities shall bederecognized and a new financial liability shall be recognized at the same time. If the Company makes any substantialmodification to the contract terms of the original financial liability (or part thereof), the original financial liability shallbe derecognized and a new financial liability shall be recognized in accordance with the modified terms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference between its bookvalue and the consideration paid (including transferred non-cash assets or liabilities assumed) into the current profitsand losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial liabilities,and such legal right is currently enforceable, and the Company plans to settle the financial assets on a net basis orrealize the financial assets and settle the financial liabilities at the same time, the financial assets and financial liabilitiesare listed in the balance sheet at a net amount after mutual offset. In addition, financial assets and financial liabilitiesshall be listed separately in the balance sheet and shall not be offset against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liabilityin an orderly transaction on the measurement date. Where there is an active market for financial instruments, theCompany adopts quotations in the active market to determine their fair values. Quoted price in active market refers tothe price easily obtained from exchanges, brokers, industry associations, pricing service agencies, etc. on a regular basis,and represents the price of market transactions actually occurred in fair trading. If there is no active market for financialinstruments, the Company uses evaluation techniques to determine their fair values. Evaluation techniques includereference to prices used in recent market transactions by parties familiar with the situation and willing to trade,reference to current fair values of other financial instruments that are substantially the same, discounting cash flowtechnique, option pricing model, etc. In valuation, the Company adopts valuation techniques that are applicable under
current circumstances and are supported by sufficient available data and other information, selects input values that areconsistent with 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. If the relevantobservable input value cannot be obtained or it is not impracticable to obtain it, the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets afterdeducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments bythe Company are treated as changes in equity, and transaction costs related to equity transactions are deducted fromequity. The Company does not recognize changes in the fair value of equity instruments.Dividends (including "interest" generated by instruments classified as equity instruments) distributed by theCompany's equity instruments during their existence shall be treated as profit distribution.
10. Impairment of financial assets
The financial assets of the Company that need to confirm the impairment loss are financial assets measured atamortized cost and debt instrument investment measured at fair value with changes included in other comprehensiveincome, mainly including notes receivable, accounts receivable, other receivables, debt investment, other debtinvestment, long-term receivables, etc. In addition, for some financial guarantee contracts, impairment reserves andcredit impairment losses are also accrued in accordance with the accounting policies described in this part.
(1) Recognition method of impairment provision
On the basis of expected credit losses, the Company sets aside impairment reserves and recognizes creditimpairment losses for the above items according to the applicable expected credit loss measurement method (generalmethod or simplified method).
Credit loss refers to the difference between all contractual cash flows receivable according to the contract and allcash flows expected to be collected by the Company discounted according to the original actual interest rate, i.e. thepresent value of all cash shortages. Among them, for the financial assets that have been purchased or incurred creditimpairment, the Company discounts them according to the actual interest rate adjusted by credit.
The general method of measuring expected credit loss refers to the Company's assessment of whether the creditrisk of financial assets has increased significantly since the initial recognition on each balance sheet date. If the creditrisk has increased significantly since the initial recognition, the Company will measure the loss reserve by an amountequivalent to the expected credit loss during the entire period. If the credit risk has not increased significantly since theinitial recognition, the Company will measure the loss reserve according to the amount equivalent to the expected creditloss in the next 12 months. In assessing the expected credit loss, the Company takes into account all reasonable andevidence-based information, including forward-looking information.
For financial instruments with low credit risk on the balance sheet date, the Company measures the loss reserve
based on the expected credit loss amount within the next 12 months or the entire duration according to whether thecredit risk has increased significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognitionIf the default probability of a certain financial asset in the expected duration determined at the balance sheet date issignificantly higher than the default probability in the expected duration determined at the time of initial recognition, itindicates that the credit risk of the financial asset is significantly increased. Except for special circumstances, theCompany uses the change of default risk in the next 12 months as a reasonable estimate of the change of default risk inthe entire duration to determine whether the credit risk has increased significantly since the initial recognition.Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk of thefinancial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financialinstrument 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 technological environment ofthe debtor;
3) Whether there is any significant change in the value of the collateral or the quality of the guarantee or creditenhancement provided by the third party, which are expected to reduce the economic motivation of the debtor'srepayment according to the time limit stipulated in the contract or affect the probability of default;4) Whether there is any significant change in the expected performance and repayment behavior of the debtor;5) Whether there is any significant change in the Company's credit management methods for financialinstruments, etc.
On the balance sheet date, if the Company judges that the financial instrument has only low credit risk, theCompany assumes that the credit risk of the financial instrument has not increased significantly since the initialrecognition. If the default risk of a financial instrument is low, the borrower's ability to perform its contractual cash flowobligations in a short period of time is strong, and even if there are adverse changes in the economic situation andoperating environment for a long period of time, it may not necessarily reduce the borrower's ability to perform itscontractual cash obligations, then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset, thefinancial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial assetsincludes the following observable information:
1) The issuer or debtor has major financial difficulties;
2) The debtor violates the contract, such as default or overdue payment of interest or principal, etc.;
3) The creditor gives concessions that the debtor will not make under any other circumstances due to economicor contractual considerations related to the debtor's financial difficulties;
4) The debtor is likely to go bankrupt or undergo other financial restructuring;
5) The active market of the financial assets disappears due to the financial difficulties of the issuer or the debtor;6) Purchase or generate a financial asset at a substantial discount, which reflects the fact that credit losses haveoccurred.Credit impairment of financial assets may be caused by the combined action of multiple events, but may not becaused 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: Accountsreceivable with related parties. Receivables in dispute with the other party or involving litigation or arbitration.Receivables with obvious signs that the debtor is likely to be unable to perform the repayment obligation.In addition to the financial assets with individual credit risk assessment, the Company divides the financial assetsinto different groups based on the common risk characteristics. The common credit risk characteristics adopted by theCompany include: Credit risk shall be assessed on the basis of the aging portfolio, the receivables portfolio between thefinal controlling party and its subordinate units, the public maintenance fund and house selling fund portfolio depositedin the housing provident fund management center, the deposit/margin portfolio, and the petty cash ledger portfolioformed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If theestimated credit losses are greater than the book amount of its current impairment reserve, the difference is recognizedas impairment loss. If it is less than the carrying amount of the current impairment reserve, the difference is recognizedas 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 divided intodifferent 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. |
According to whether the credit risk of other receivables has increased significantly since the initial recognition,the Company measures impairment loss with an amount equivalent to the expected credit loss within the next 12months or the entire duration.In addition to the accounts receivable and other receivables that individually assess credit risk, they are dividedinto 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. |
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 | No provision for bad debts |
The portfolio of public maintenance funds and house sales funds deposited into the MPF Management Center | No provision for bad debts |
Deposit/margin portfolio | No provision for bad debts |
The portfolio of reserve fund ledger formed by the Company's staff loan. | No provision for bad debts |
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 |
Portfolio name | 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 u | - | - | - |
Public maintenance fund and house sale fund deposited into MPF Management Center | - | - | - |
Portfolio name | Expected loss rate of notes receivable (%) | Expected loss rate of accounts receivable (%) | Expected loss rate of other receivables (%) |
Deposit/margin | - | - | - |
The reserve fund ledger formed by the Company's staff loan. | - | - | - |
non-current asset or to-be-disposed portfolio falls into held-for-sale category. The specific criteria: both of the followingconditions shall be satisfied: a non-current asset or to-be-disposed portfolio can be sold immediately under the currentconditions based on the practice of selling such asset or to-be-disposed portfolio in similar transactions; the Companyhas already decided on the sale plan and obtained confirmed purchase commitment; the sale is scheduled to becompleted within one year. Among them, a Disposal Portfolio refers to a group of assets that will be disposed of as awhole through sale or other approaches in a transaction, and the liabilities directly associated with these assetstransferred along with the assets in transaction. If the portfolio of assets or group of portfolios of assets is allocatedgoodwill acquired in 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 been designated asheld-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset orto-be-disposed portfolio is initially measured or measured on the balance sheet date, the book value shall be to the netamount of fair value minus sales expenses, and the written-down amount shall be recognized as asset impairment lossand included in current period profit or loss. The provision for impairment loss of the held-for-sale asset shall beaccrued. For a Disposal Portfolio, the confirmed impairment loss shall deduct the book value of the goodwill in theDisposal Portfolio, then deduct the book value of the non-current assets determined by the measurement on a pro-ratabasis in accordance with the applicable Accounting Standards for Business Enterprises No. 42 held-for-sale non-currentassets, Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). Inthe event 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 reversed within themount of the asset impairment loss recognized in the non-current assets measured by the measurement “Guide forHeld-For-Sale” after being classified as held for sale asset, the reversal amount shall be included in the current periodprofit or loss, and the book value of all non-current assets (except for goodwill) determined by the measurement on apro-rata basis in accordance with the applicable “Guide for Held-For-Sale” shall be increased on a pro-rata basis. Thebook value of the goodwill that has been deducted and the impairment loss of the assets recognized before theclassification of the held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shallnot be reversed.
In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio, there is no accrual oramortization for depreciation, and the interest from and other expenses from the liabilities in held-for-sale DisposalPortfolio shall still be recognized.
When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category,non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or thenon-current asset will be removed from the Held-For-Sale Disposal Portfolio, and be measured based on one of thefollowing two values, whichever is lower: (1) The book value before being classified as held-for-sale category adjusted
based on the depreciation, amortization or impairment that should have be confirmed if it is not classified asheld-for-sale category; (2) recoverable amount.
13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the Companyhas control, joint control or significant influence on the invested entity. The long-term equity investment of theCompany that does not have control, joint control or significant impact on the investee shall be accounted as a financialasset measured at fair value with its changes included into the current profits and losses. Among them, if it isnon-transactional, the Company may choose to designate it as a financial asset measured at fair value and its changesare included in the accounting of other comprehensive income at the time of initial recognition. For details of itsaccounting policies, please refer to Note IV, 9 “Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement inaccordance with relevant agreements, and relevant activities of the arrangement can only be decided based on theconsensus of all parties sharing the control rights before making a decision. Significant Influence refers to power of theCompany to participate in the decision-making of the financial and operating policies of the investee, but the Companycannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control, theapportioned share of the 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 equity investment. Thecapital reserve shall be adjusted subject to the difference between the initial investment cost of the long-term equityinvestment and the cash paid, the non-cash assets transferred, and the book value of the debts assumed; if the capitalreserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity securities are issued asmerger consideration, the apportioned share of the book value in the final controller's consolidated financial statementson the combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-termequity investment, and the total par value of the issued shares is taken as the share capital. The capital reserve shall beadjusted subject to the difference between the initial investment cost of the long-term equity investment and the total parvalue of the shares issued; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted.Where the equity of combined parties under the same control is obtained through multiple transactions and a businesscombination under the same control is formed finally, it shall be treated differentially based on whether it is a “packagedeal”: if it belongs to a “package deal”, all transactions will be treated as a transaction that obtains control. If it is not a“package deal”, the apportioned share of the book value in the final controller's consolidated financial statements on thecombination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equityinvestment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of thelong-term equity investment and the sum of the book value of long-term equity investment before combination date and
the book value of the new consideration for the new share on the combination date. If the capital reserve is insufficientfor offsetting, the retained earnings shall be adjusted. The equity investments that are held prior to the combination dateand are recognized with equity recognized or as available-for-sale financial asset as other comprehensive income willnot be given accounting treatment for the moment.
For a long-term equity investment obtained from a combination of businesses not under the same control, theinitial investment cost of the long-term equity investment shall be based on the combination cost on the purchase date.The combination cost includes the assets paid by purchaser, the liabilities incurred or assumed, and the sum of the fairvalue of issued equity securities. Where the equity of combined parties not 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 will be treated asa transaction that obtains control. If it is not a “package deal”, the initial investment cost of the long-term equityinvestment calculated by the cost method shall be calculated based on the sum of the book value of the equityinvestment in the original holder and the new investment cost. The original share holding that measured using equitymethod, the relevant other comprehensive income does temporarily not conduct accounting treatment.Intermediary expenses such as for auditing, legal services, assessment and other related expenses incurred by acombining party or a purchaser for business combination shall be recognized in current period profit or loss whenincurred.The equity investments other than formed by business combination shall be initially measured at cost. The costwill be determined based on the following amount according to different methods of the acquisition of long-term equityinvestment: the purchase price in cash actually paid by the Company; the fair value of the equity securities issued by theCompany, the value agreed in relevant investment contract or agreement; the fair value or original book value of theassets exchanged in non-monetary asset exchange transaction; the fair value of the long-term equity investment itself.Any expenses, taxes and other necessary expenses directly related to the acquisition of long-term equity investmentsshall also be included in the cost of investment. The cost of long-term equity investment for the additional investmentthat can exert significant influence on investee or implement joint control but does not constitute control shall be thesum of the fair value of the originally held equity investment recognized in accordance with the Accounting Standardsfor Business 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 theinvested entity (except for those constituting joint operators) or have significant impact on the invested entity. Inaddition, the company's financial statements use the Cost Method to account for long-term equity investments, whichcan control the long-term equity investment of the investee.
a. Long-term equity investment based on Cost Method
When accounting with Cost Method, long-term equity investment is priced at the initial investment cost, and thecost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the actualpayment at the time of obtaining investment or the cash dividends or profits included in the consideration but not yetissued, the current investment income shall be recognized according to the cash dividends or profits declared by theinvestee.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 is greaterthan the fair value share of the identifiable net assets of the investee when investing, and the initial investment cost ofthe long-term equity investment shall not be adjusted; if the initial investment cost is less than the fair value share of theidentifiable net assets of the investee when investing, the difference shall be included in the current profit and loss, andthe cost of the long-term equity investment shall be adjusted
When accounting with Equity Method, the investment income and other comprehensive income are recognizedseparately according to the shares of the net profit or loss and other comprehensive income that should be enjoyed orshared, and the book value of the long-term equity investment should be adjusted at the same time. The book value oflong-term equity investment is reduced accordingly by calculating the share that should be enjoyed according to theprofit or cash dividend declared by the investee. The book value of long-term equity investment shall be adjusted andincluded in the capital reserve for other changes in the owner's rights and interests of the invested entity other than thenet profit and loss, other comprehensive income and profit distribution. When confirming the share of the net profit andloss of the investee, the net profit of the investee shall be adjusted and confirmed on the basis of the fair value of theidentifiable assets of the investee at the time of investment. If the accounting policies and periods adopted by theinvested entity are 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 the associatesand joint ventures, the assets invested or sold do not constitute a business, and the unrealized gains and losses frominternal transactions are offset against the portion of the Company that is attributable to the proportion of the shares, onthis basis. investment profit and loss should be confirmed. However, the unrealized internal transaction losses incurredby the Company and the investee are not included in the impairment losses of the transferred assets. Where the assetsinvested by the Company into a joint venture or an associates constitute a business, if the investor obtains long-termequity investment but does not control, the fair value of the invested business shall be deemed as the initial investmentcost of the new long-term equity investment, and the difference between the initial investment cost and the book valueof the invested business 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 obtained and the bookvalue of the business shall be fully recognized in the profits and losses of the current period.
When confirming the net loss that incurred by the investee should be shared, the book value of the long-term
equity investment and other long-term equity that substantially constitutes the net investment of the investee arereduced to zero. In addition, if the Company has an obligation to bear additional losses to the investee, the estimatedliabilities shall be recognized according to the estimated obligations and included in the current investment losses. If theinvestee achieves net profit in the following period, the Company shall resume recognizing the share of income aftermaking up for the unrecognized share of loss.
For the long-term equity investment in the joint ventures and associates held by the Company for the first timebefore the implementation of the new accounting standards, if there is a debit balance of equity investments related tothe investment, the current profits and losses shall be accounted for by the straight-line amortization of the originalremaining period.
c. Acquisition of Minority Equity
In the preparation of the consolidated financial statements, if the difference between the long-term equityinvestment added by purchasing minority shares and the net assets share that should be continuously calculated by thesubsidiary company from the purchase date (or the consolidation date) is calculated according to the proportion ofnewly added shares, the retained earnings shall be adjusted; and if the capital reserve is insufficient to offset, theretained earnings shall be adjusted.
d. Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially of disposes of the long-term equityinvestment of the subsidiary without losing control, the difference of the corresponding net assets in the subsidiarybetween the disposal price and the disposal of the long-term equity investment is included in the shareholders' equity. itshall be treated in accordance with the relevant accounting policies described in “Notes on the preparation ofconsolidated financial statements” in Note IV.5 (2).
For the disposal of long-term equity investment in other cases, the difference between the book value of thedisposed equity and the actual acquisition price shall be included in the current profits and losses.
If the long-term equity investment is accounted for by equity method, the remaining equity after disposal is stillaccounted for by equity method, when disposing, the other comprehensive income which were originally included inshareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities directly disposed ofby the investee. The owner's equity recognized as a result of changes in the owner's equity of the investee other than netprofit or loss, other comprehensive income and profit distribution, it should be carried forward to the current profit andloss
For the long-term equity investment accounted by Cost Method, the remaining equity is still accounted by CostMethod after disposal, other comprehensive income that recognized by equity method accounting or financialinstrument recognition and measurement criteria accounting before obtaining control over the investee shall beaccounted for on the same basis as the assets or liabilities directly disposed of by the investee, and shall be settled to thecurrent profit and loss in proportion. Changes of the net assets of investee in the owner's equity other than net profit or
loss, other comprehensive income and profit distribution 's that recognized by equity method shall be settled to thecurrent profit and loss in proportion.Where the Company loses control over the investee due to disposal of part of its equity investment, when preparingindividual financial statements, if the remaining equity after disposal can exercise joint control or exert significantinfluence on the investee, it shall be accounted for by equity method instead, and the remaining equity shall be adjustedby accounting by equity method when it is deemed to be acquired. If the remaining equity after disposal cannot bejointly controlled or exerts significant influence on the investee, it shall be accounted for according to the relevantprovisions of the financial instrument recognition and measurement criteria, and the difference between the fair valueand the book value on the date of loss of control. It is included in the current profit and loss. Before the Companyobtains control over the investee, other comprehensive income recognized by equity method accounting or financialinstrument recognition and measurement criteria is used to directly dispose of the relevant assets with the investee,accounting treatment based on the same basis as the investee directly disposes of related assets or liabilities when thecontrol of the investee is lost, Accounting is treated on the same basis as the liabilities. Changes in the owner's equityother than net profit or loss, other comprehensive income and profit distribution of the investee's net assets recognizedby the equity method are carried forward to the current profit or loss when the control of the investee is lost. Amongthem, the remaining equity after disposal is accounted for using the equity method. Where the remaining equity afterdisposal is accounted for by equity method, other comprehensive income and other owner's equity should be settled byproportion. If the remaining equity is accounted for using financial instrument recognition and measurement standard,all of other comprehensive income and other shareholder’s equity should be settled.
If the Company loses its joint control or significant influence on the investee due to the disposal of part of theequity investment, the remaining equity after disposal shall be accounted for according to the financial instrumentrecognition and measurement criteria, and the difference between the fair value and the book value on the date of loss ofjoint control or significant influence is recognized in the current profit or loss. The other comprehensive incomerecognized in the original equity investment by the equity method is accounted for on the same basis as the investee'sdirect disposal of related assets or liabilities when the equity method is terminated, Owner's equity recognized as aresult of changes in other owners' equity other than net profit or loss, other comprehensive income and profitdistribution of the investee should be transferred to current investment income when terminating the equity methodThe Company disposes of the equity investment in the subsidiaries step by step through multiple transactions untilthe loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated asa transaction dealing with the equity investment of the subsidiary and losing control. The difference between the bookvalue of each long-term equity investment corresponding to the disposal price and the disposal of the equity before lossof control is first recognized as other comprehensive income, and when the control is lost, it is transferred to the currentprofit and loss of loss of control.14.Investment Property
Investment Property refers to property held for the purpose of earning rent or capital appreciation, or both,including land use rights that have been leased, land use rights that are held and prepared for transfer after appreciation,and buildings that have been rented. Investment property is initially measured at cost. The expenses related toinvestment property, if the economic benefits related to this asset are highly probable to flow into the company and thecost can be measured reliably, then the expense will account for as the cost of investment property. Other expenses areaccounted for in profit and loss when incurred.The Company adopts the cost model to conduct subsequent measurement of investment property and depreciationor amortization according to the policy consistent with the building or land use rights.
For details of the impairment test method and impairment provision method of property, please refer to Note IV. 20“Long-Term Asset Impairment”.
When the self-use property or inventory is converted into investment property or investment property is convertedinto self-use property, the book value before conversion is used as the recorded value after conversion.
When the use of investment property is changed to self-use, the investment property is converted into fixed assetsor intangible assets from the date of change. When the use of self-use property changes to earn rent or capitalappreciation, the fixed assets or intangible assets are converted into investment property from the date of change. In thecase of investment property measured by the cost model when the conversion occurs, the book value before conversionis used as the entry value after conversion; if it is converted into investment property measured by the fair value model,the fair value of the conversion date is used as the entry value after conversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected to obtaineconomic benefits from its disposal, the confirmation of the investment real estate shall be terminated. Disposal incomefrom the sale, transfer, retirement or damage of investment properties is charged to the current profit and loss afterdeducting 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 oroperating management, and having a service life of more than one fiscal year. Fixed assets are recognized only when theeconomic benefits associated with them are likely to flow into the Company and their costs can be reliably measured.Fixed assets are initially measured at cost and taking into account the impact of projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following thescheduled availability. The service life, estimated net residual value and annual depreciation rate of various fixed assetsare as follows:
Category | Depreciation Method | Depreciation period (Year) | Residual rate(%) | Annual depreciation rate (%) |
Category | Depreciation Method | Depreciation period (Year) | Residual rate(%) | Annual depreciation rate (%) |
Buildings | straight-line depreciation | 8-50 | 5 | 1.90—12.00 |
Electronic equipment | straight-line depreciation | 3-10 | 4、5 | 9.50—32.00 |
Machinery equipment | straight-line depreciation | 5-28 | 4、5 | 3.39—19.20 |
Transport equipment | straight-line depreciation | 5-10 | 4、5 | 9.50—19.20 |
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 |
expenditures incurred during the construction period, capitalized borrowing costs before the project reaches theexpected usable status, and other related expenses. Construction in progress is carried forward to fixed assets when it isready for its intended use.For details of the impairment test method and impairment provision method for construction in progress, pleaserefer to Note IV. 20 “Long-Term Asset Impairment”.
17. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses, andexchange differences arising from foreign currency borrowings. Borrowing costs directly attributable to the acquisition,construction or production of assets eligible for capitalization, capitalization is began when asset expenditures haveoccurred, borrowing costs have occurred, and the acquisition, construction or production activities necessary to bringthe assets to the intended usable or saleable state have begun. And capitalization is stopped when the assets underconstruction or production that meet the capitalization conditions are ready for their intended use or saleable status. Theremaining borrowing costs are recognized as an expense in the period in which they are incurred.The interest expenses actually incurred in the current period of special borrowings shall be capitalized aftersubtracting the interest income from the unused borrowing funds deposited into the bank or the investment incomeobtained from the temporary investment. For the general borrowings, according to the accumulated asset expendituresexceed the special borrowings. The capitalization amount is determined by multiplying the weighted average of whichaccumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by the capitalization rateof the general borrowings used. The capitalization rate is determined based on the weighted average interest rate ofgeneral borrowings.During the capitalization period, the exchange differences of foreign currency special borrowings are allcapitalized; the exchange differences of foreign currency general borrowings are included in the current profit and loss.Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventories thatrequire a substantial period of acquisition, construction or production activities to achieve the intended use or salestatus.If the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or productionprocess and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall besuspended until the acquisition, construction or production of the assets resumes.
18. Intangible assets
(1) Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by theCompany.
Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost of
intangible assets if the relevant economic benefits are likely to flow to the Company and its costs can be measuredreliably. Expenditure on other items other than this is recognized in profit and loss when incurred.The acquired land use rights are usually accounted for as intangible assets. The related land use rights and buildingconstruction costs of self-developed and constructed buildings are accounted for as intangible assets and fixed assets,respectively. In the case of purchased houses and buildings, the relevant price is distributed between the land use rightsand the buildings. If it is difficult to allocate them reasonably, all of them are treated as fixed assets.Since the intangible assets with limited useful life are available for use, the original value minus the estimated netresidual value and the accumulated amount of impairment reserve shall be amortized by the straight-line method duringtheir expected service life. Intangible assets with uncertain service life shall not be amortized.Among them, the useful life and amortization method of intellectual property are as follows:
Item | Useful life (year) | Amortization method |
Trademark | 20 | Straight-line method |
If it is impossible to distinguish the expenditures between research phase and development phase, all research anddevelopment 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 IV. 20“Long-Term Asset Impairment”.
19.Long-term Deferred Expenses
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting period andsubsequent periods with amortization period of more than one year. The company's long-term deferred expenses mainlyinclude lease of land use right and renovation costs of factory building. Long-term deferred expenses are amortized on astraight-line basis over the estimated benefit period.
20. Long-term assets impairment
For fixed assets, construction in progress, intangible assets with limited useful life, investment property measuredby cost model, and non-current non-financial assets such as long-term equity investments in subsidiaries, joint venturesand associates, the Company determines whether there is any indication of impairment on the balance sheet date. Ifthere is any indication of impairment, the recoverable amount is estimated and the impairment test is carried out.Goodwill, intangible assets with uncertain service life and intangible assets that not yet ready for use are tested forimpairment annually, regardless of whether there is any indication of impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value,the impairment provision is made based on the difference and is included in the impairment loss. The recoverableamount is the higher of the fair value of the asset less the disposal expense and the present value of the estimated futurecash flow of the asset. The fair value of assets is determined according to the sale agreement price in a fair transaction.If there is no sales agreement but there is an active market for the asset, the fair value is determined according to thebuyer's bid for the asset; if there is neither sales agreement nor active market for assets, the fair value of assets shall beestimated based on the best information available. Asset disposal expenses include legal fee, taxes, transportationexpenses and direct expenses incurred to make assets saleable. The present value of the estimated future cash flow of anasset is determined by the appropriate discount rate discounting and the estimated future cash flow generated by theasset during its continuous 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 recoverable amount ofthe asset is determined by the asset group which the asset belongs to. An asset group is the smallest portfolio of assetsthat can generate cash inflows independently.
The book value of the goodwill listed separately in the financial statements is amortized into asset groups orportfolios that are expected to benefit from the synergies of business combinations when impairment tests areconducted. The test results show that the recoverable amount of the asset group or portfolio containing the assessedgoodwill is lower than its book value, the corresponding impairment losses should be confirmed. The amount of
impairment loss is first deducted from the book value of the goodwill amortized to the asset group or portfolio, and thendeducted proportionally from the book value of other assets according to the proportion of the book value of assetsother than goodwill in the asset group or portfolio.Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value is restored inthe future period.
21. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration, Post-employmentBenefits, Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages, bonuses, allowances and subsidies, employee welfarefees, medical insurance premiums, maternity insurance premiums, work injury insurance premiums, housing fund, laborunion funds, employee education funds, and non-monetary benefits. The Company recognizes the actual short-termemployee's remuneration as a liability in the accounting period in which employees provide services to the Companyand recognizes them in profit or loss or related asset costs. Non-monetary benefits are measured at fair value.
Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities. ThePost-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a DefinedContribution Plan is adopted, the corresponding amount of the deposit shall be included in the relevant asset cost orcurrent profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability based on a fixed feepaid to an independent fund and is included in the current profit and loss or related asset costs; (2) The Defined BenefitPlan is accounted for using the expected cumulative benefits unit method Specifically, the Company will convert thewelfare obligation arising from the Defined Benefit Plan into the final value of the departure time according to theformula determined by the expected cumulative benefits unit method; then it is attributed to the employee's in-serviceperiod and is included in the current profit and loss or related asset cost.
If the labor relationship with the employee is terminated before the employee's labor contract expires, or if theemployee is encouraged to accept the reduction voluntarily, when cannot withdrawing unilaterally the dismissal benefitsprovided by the termination of the labor relationship plan or the reduction proposal, and when confirming the costsassociated with the restructuring involving the payment of the dismissal benefits, whichever is earlier, the Company willrecognize the employee compensation liabilities arising from the dismissal benefits, and included in the current profitand loss. However, if the dismissal benefits are not expected to be fully paid within 12 months after the end of annualreporting period, they shall be treated in accordance with other long-term employee compensations.
The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissalbenefits. The company will pay the internal retired staff the salary and the social insurance premiums from theemployee's lay-off to normal retirement, and will include in the current profit and loss (dismissal benefits) when theconditions of the estimated liabilities are met.
If the other long-term employee benefits provided by the Company to the employees are in line with the Defined
Contribution Plan, they shall be accounted for Defined Contribution Plan, and otherwise accounted for the DefinedBenefit Plan.
22. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognized as estimatedliabilities: (1) The obligation is the current obligation assumed by the Company; (2) The performance of this obligationis likely to result in the outflow of economic benefits; (3) The amount of the obligation can be reliably measured.On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money relatedto contingencies, the estimated liabilities are measured in accordance with the best estimate of the expenditure requiredto perform the relevant current obligations.If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by thethird party, the compensation amount will be separately recognized as an asset when it is basically determined to bereceived, and the confirmed compensation amount does not exceed the book value of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more thanthe expected economic benefit. If the contract to be executed becomes a loss contract, and the obligation arising fromthe loss contract satisfies the conditions for the recognition of the above-mentioned estimated liabilities, the portion ofthe contract's estimated loss that exceeds the recognized impairment loss (if any) of the contracted asset is recognized asthe estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed, formal, and have been announced to the public, the amount of theestimated liabilities are determined based on the direct expenses related to the reorganization, subject to the recognitionconditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of business sold, theobligation related to the reorganization is confirmed only when the company promises to sell part of the business (that is,when the binding sale agreement is signed).
23. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined based onan equity instrument in order to obtain services from employees or other parties. Share-based Payments includeequity-settled share payment and cash-settled share payment.
a) Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value of thegranting of employees' equity instruments at the grant date. If the fair value is vested in the completion of the waitingperiod of service or the fulfillment of the required performance conditions, during the waiting period, the amount of the
fair value is calculated by the straight-line method into the relevant costs or expenses based on the best estimate of thenumber of vesting equity instruments; Or If the vesting right is granted immediately after the grant, the calculation ofthe amount of the fair value is included in the relevant cost or expense on the grant date, and the capital reserve isincreased accordingly.On each balance sheet date during the waiting period, the Company makes the best estimate based on the latestinformation on the changes in the number of employees with vesting rights and corrects the number of equityinstruments that are expected to be vested. The impact of the above estimates shall be included in the current relatedcosts or expenses, and the capital reserve is adjusted accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of otherparties' services can be reliably measured, the fair value of other services shall be measured at the fair value on the dateof acquisition; If the fair value of the other party's services cannot be measured reliably, the fair value shall be measuredat the fair value of the equity instrument at the date the service is acquired, and is included in the relevant cost orexpense, which increases the shareholders' equity accordingly.
b) Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company based onshares or other equity instruments. If the vesting right is available immediately after the grant, the relevant costs orexpenses shall be included on the date of grant, and the liabilities shall be increased accordingly; if vesting right isavailable after the service is completed within the waiting period or met the required performance conditions, based onthe best estimate of the vesting rights on each balance sheet date of the waiting period, according to the fair value of theliabilities assumed by the company, the services obtained in the current period are included in the cost or expense, andthe liabilities are increased accordingly.
The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before thesettlement of the relevant liabilities, and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan, if the modification increases the fair value of theequity instruments granted, the increase in the fair value of the equity instruments is recognized accordingly. Theincrease in the fair value of equity instruments refers to the difference between the fair value of the equity instrumentsbefore and after the modification. If the modification reduces the total fair value of the share-based payment or adoptsother methods that are not conducive to the employee, the service obtained shall continue to be accounted for, as if thechange has never occurred, unless the Company cancels some or all of equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the grantedequity instrument as an accelerated exercise, and the amount to be recognized in the remaining waiting period will beimmediately included in the current profit and loss, and the capital reserve will be recognized. If the employee or otherparty can choose to meet the non-vesting conditions but fails to meet the waiting period, the Company will treat it as a
cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders orActual Controllers
In respect of the share-based payment transaction between the company and the shareholders or actual controllersof the company, If one of the settlement enterprise and the service receiving enterprise is in the company and the otheris outside the company, it shall be accounted for in the consolidated financial statements of the company according tothe following provisions:
a.) If the settlement enterprise settles with its own equity instrument, the share-based payment transaction shall betreated 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 equityinvestment of the serviced enterprise according to the fair value of the equity instrument at the grant date or the fairvalue of the liability to be assumed, and the capital reserve (other capital reserve) or liabilities shall be recognized.
b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments, theshare payment transaction shall be treated as equity-settled share payment; if the serviced enterprise has settlementobligation and grants its employees other than its own equity instruments, the share payment transaction shall be treatedas a cash-settled share payment.
For the share based payment incurred between companies within the group, if the serviced enterprise andsettlement enterprise are not the same, then the payment should be recognized and measured in their individual financialstatements, they should be accounted for using the above principles
24. Preferred Stock, Perpetual Capital Securities and Other Financial Instruments
(1) Distinction between perpetual capital securities and Preferred Stock
Financial instruments such as perpetual bonds and preferred stocks issued by the Company, as well as meeting thefollowing conditions, shall be used as equity instruments:
a.) The financial instrument does not include contractual obligations to deliver cash or other financial assets toother parties or to exchange financial assets or financial liabilities with other parties under potentially adverseconditions.
b.) In the case of the financial instrument is to be settled or available with the company's own equity instruments inthe future, if the financial instrument is a non-derivative, it does not include the contractual obligation to deliver avariable amount of its own equity instruments; if it is a derivative, the Company can only settle the financial instrumentby exchanging a fixed amount of cash or other financial assets with a fixed amount of its own equity instruments.
Except for financial instruments that can be classified under the above conditions, other financial instrumentsissued by the Company should be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they are recognized as a
liability based on the fair value of the liability component, and are recognized as “other equity instruments” based onthe amount actually received after deducting the fair value of the liability component. The transaction costs incurred inissuing a compound financial instrument are apportioned in proportion to their respective total issue price between theliability component and the equity component.
(2) Accounting treatment methods such as perpetual capital securities and preferred stocksRelated interest, dividends, gains or losses of financial instruments such as perpetual capital securities andpreferred stocks classified as financial liabilities, and gains or losses arising from redemption or refinancing, areincluded in the current profits and losses except for borrowing costs that meet the capitalization conditions (see Note 4,17 “Borrowing Fees”).When financial instruments such as perpetual capital securities and preferred stocks classified as equityinstruments are issued (including refinancing), repurchased, sold or cancelled, the Company shall treat it as a changein equity, and related transaction costs are also deducted from equity. The Company's allocation of equity instrumentholders is treated as profit distribution.The Company does not recognize changes in the fair value of equity instruments.
25. Revenue
The company’s operating income of mainly includes income from sales of goods, providing services, royalties, andinterest. When the company signs a contract, it evaluates the contract, identifies each individual performance obligationcontained in the contract, and determines whether each individual performance obligation is performed within a certainperiod of time or at a certain point in time. The company recognizes revenue separately when it has fulfilled eachindividual performance obligation in the contract.
(1) Revenue recognition for completion of performance obligations at a certain point in time
The company’s sales usually take into account the following factors to confirm revenue at the point when thecustomer obtains control of the relevant merchandise: ①The company has the current right to receive payment for thegoods or services. ②The company has transferred control of the product to the customer. ③The company hastransferred the goods in kind to the customer or the customer has obtained the qualification for the goods in kind. ④The consideration obtained by the company for the transfer of the commodity is likely to be recovered.
The specific principles of the company's sales revenue recognition are as follows: the sales revenue is recognizedwhen the goods have been delivered to the customer and the customer has signed for confirmation, or the productownership certificate has been delivered to the customer, the company has received the payment or has obtained theproof of claiming payment.
(2) Revenue recognition of performance obligations performed within a certain period of time
For performance obligations performed within a certain period, such as services provided, the company recognizesrevenue in accordance with the performance progress during that period. On the balance sheet date, the company shall
multiply the total transaction price of the contract by the performance progress after deducting the accumulated revenueand recognize it as current revenue.The company has transferred goods or services to customers and has the right to receive consideration (and theright depends on other factors other than the passage of time) as contract assets, and contract assets are devalued on thebasis of expected credit losses. The company's unconditional (only depending on the passage of time) right to collectconsideration from customers are listed as receivables. The company’s obligation to transfer goods or services tocustomers for consideration received or receivable from customers is listed as contract liabilities.
26. Government grants
Government grant refers to the company's acquisition of monetary and non-monetary assets from the governmentfree of charge, excluding the capital invested by the government as an investor and enjoying the corresponding owner'srights and interests. Government grants include assets-related grants and revenue-related grants. The company definesthe government grant obtained for the purchase and construction of long-term assets or for the formation of long-termassets in other ways as the government grant related to assets; the remaining government grant is defined as thegovernment grant related to income. If the object of grants is not specified in government documents, the grants shall bedivided into income-related government grants and assets-related government grants in the following ways: (1) If thegovernment document 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 budget of thespecific project are divided, and the proportion of grant division needs to be reviewed on each balance sheet day andchanged if necessary. (2) In government documents, if the purpose is expressed only in general terms and no specificproject is specified, the grant shall be regarded as a government grant related to the income. Where a government grantis a monetary asset, it shall be measured according to the amount received or receivable. If the government grants arenon-monetary assets, they shall be measured at the fair value; if the fair value cannot be obtained reliably, they shall bemeasured at the nominal amount. Government grants measured in nominal amounts shall be recognized directly incurrent profits and losses.
The Company usually confirms and measures the government grant according to the amount when it is actuallyreceived. However, if there is conclusive evidence at the end of the period that the relevant conditions stipulated in thefinancial support policy can be met and the financial support funds are expected to be received, it shall be measuredaccording to the amount receivable. Government grants measured in accordance with the amount receivable shall meetthe following conditions at the same time: (1) The amount of the subvention receivable has been confirmed by theauthorized government departments, or can be reasonably calculated according to the relevant provisions of theformally issued financial fund management measures, and there is no significant uncertainty in the amount expected; (2)According to the "Regulations on the Openness of Government Information" that the local financial departmentofficially released and in accordance with the provisions of the "Regulations on the Openness of GovernmentInformation," the financial support project and its financial fund management measures should be inclusive (any
eligible enterprise can apply for them), rather than being specifically tailored to specific companies; (3) The relevantgrant approval has clearly promised the payment period, and the allocation of the payment is guaranteed by thecorresponding budget, so it can be reasonably ensure that it can be received within the prescribed time limit; (4) Otherrelevant conditions (if any) to be met in accordance with the specific circumstances of the Company and the grants.Government grants related to assets are recognized as deferred earnings and are divided into current profits andlosses in a reasonable and systematic way during the service life of the assets concerned. The government grants relatedto revenue, which are used to compensate for the related cost or loss in the subsequent period, shall be recognized asdeferred income, and shall be recognized in profit or loss in the period in which the related costs or losses arerecognized; if it is used to compensate the related costs or losses that has occurred, it shall be directly recognized in thecurrent profit and loss.
It includes government grants related to both assets and income, and different parts are separately classified foraccounting treatment; if it is difficult to distinguish, the whole is classified as government grants related to income.Government grants related to the daily activities of the Company shall be included in other income or costdeductions according to the nature of the economic business; government subsidies unrelated to daily activities shall beincluded in the non-operating revenues and expenses.
When the recognized government grants need to be returned, if there are relevant deferred earnings balances, thebook balance of related deferred earnings shall be deducted, and the excess part shall be included in the current profitsand losses or the book value of assets shall be adjusted, otherwise, the book value of assets shall be directly included inthe current profits and losses.
27. Deferred Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous periodsare measured by the expected amount of income tax payable (or returned) in accordance with the provisions of the TaxLaw. The amount of taxable income on which current income tax expenses are calculated is based on the correspondingadjustment of pre-tax accounting profits in the reporting period in accordance with the relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis, and the temporarydifference between the book value of items that are not recognized as assets and liabilities but which can be determinedas their tax basis according to the tax law, are confirmed by the balance sheet liability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of anasset or liability arising from a transaction that is neither a business combination nor an accounting profit or taxableincome (or deductible 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 Company is able to
control the turnaround time of temporary differences, and the temporary difference is unlikely to be reversed in theforeseeable future, the related deferred income tax liabilities shall not be recognized. Except for the above exceptions,the Company recognizes all other deferred income tax liabilities arising from taxable temporary differences.Taxable temporary differences which related to the initial recognition of an asset or liability arising from atransaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss),relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related toinvestments in subsidiaries, associates and joint ventures, if the temporary difference is unlikely to be reversed in theforeseeable future, or the amount of taxable income used to offset the temporary difference is unlikely to be obtained inthe future, the deferred income tax assets concerned shall not be recognized. Except for the above exceptions, theCompany recognizes other deferred income tax assets that can offset temporary differences, subject to the amount oftaxable income that is likely to be obtained to offset temporary differences.For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferredincome tax assets are recognized to the extent that it is probable that the future taxable income shall be used to offset thedeductible losses and tax credits.On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured atthe applicable tax rates in the period in which the related assets are recovered or the related liabilities are recovered inaccordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value of deferredincome tax assets is written down if it is likely that sufficient taxable income will not be available to offset the benefitsof deferred income tax assets in the future. When it is possible to obtain sufficient taxable income, the amount writtendown shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.
In addition to recognizing that the current income tax and deferred income tax related to other transactions andmatters directly included in shareholder's rights and interests shall be recognized in other comprehensive income orshareholder's rights and interests, and the book value of adjusted goodwill from deferred income tax resulting from themerger of enterprises, the other current income tax and deferred income tax expenses or gains shall be recognized inprofit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire assets andpay off liabilities at the same time, the company's current income tax assets and current income tax liabilities shall bepresented on a net basis after the offset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis, and
deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same taxadministration department on the same tax payer or to different tax payers, but in the future, during each importantperiod of deferred income tax assets and liabilities being reversed, the taxpayer involved intends to settle the currentincome tax assets and liabilities on a net basis, or acquire assets and pay off liabilities simultaneously, the deferred theincome tax assets and deferred income tax liabilities of the Company shall be presented on a net basis after offset.
28. Lease
Finance lease is a lease that essentially transfers all risks and rewards related to the ownership of assets. Itsownership 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 and losses in thestraight-line method during each period of the lease period. The initial direct costs shall be included in the currentprofits and losses. Contingent rentals shall be recognized in profits and losses when incurred.
(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-linemethod during each period of the lease period. The larger initial direct expenses are capitalized when occurring, and theprofits and losses of the current period shall be recorded in stages on the same basis as the recognized rental incomeduring the whole lease period; the smaller initial direct expenses shall be recorded in the profits and losses of the currentperiod when occurring. Contingent rentals shall be included in 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 value of theminimum lease payment on the lease start date is regarded as the entry value of the leased assets, and the lowest leasepayment shall be regarded as the entry value of the long-term payables, and the difference shall be regarded as theunrecognized financing cost. In addition, the initial direct costs attributable to the lease project shall also be included inthe value of the leased assets when they occur during the lease negotiation and the signing of the lease contract. Thebalance of the minimum lease payment after deducting the unrecognized financing costs shall be presented as long-termliabilities and long-term liabilities due within one year, respectively.
The unrecognized financing cost shall be calculated by the real interest rate method during the lease period.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 on the leasestart date is regarded as the entry value of the financial lease receivable, and the unsecured balance shall be recorded.The difference between the sum of the minimum lease receivable, the initial direct cost and the unsecured balance andthe 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 be presented as long-term claims and long-term claimsmaturing within one year, respectively.
The unrealized financing income shall be calculated and confirmed by the real interest rate method during the leaseperiod. Contingent rentals shall be recognized in current profits and losses when actually occurring.
29. Other important accounting policies and accounting estimates
(1) Termination of business
Termination of operation refers to a component that meets one of the following conditions, can be separatelydistinguished and has been disposed of or classified as held for sale by the Company: ①This component represents anindependent major business or a separate major business area. ②This component is part of an associated plan todispose of an independent major business or a separate major business area. ③This component is a subsidiary companyacquired specifically for resale.
For the accounting treatment methods for termination of operations, please refer to the relevant descriptions inNote 4, 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 thehedges meeting the specified conditions, the Company adopts the hedge accounting method for treatment. The hedgingof the Company is fair value hedging.
At the beginning of hedging, the Company formally designates hedging instruments and hedged items, andprepares written documents on hedging relationship and risk management strategy and risk management objectives ofthe Company engaged in hedging. In addition, the Company will continuously evaluate the effectiveness of hedging atthe 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 losses arisingtherefrom shall be included into the current profits and losses. If the hedging instrument hedges the non-trading equityinstrument investment (or its components) that is measured at fair value and whose changes are included in othercomprehensive income, the gains and losses generated by the hedging instrument are included in other comprehensiveincome. The profit or loss of the hedged item due to the hedged risk exposure shall be included into the current profitsand losses, and the book value of the hedged item shall be adjusted at the same time. If the hedged item is measured atfair value, the gain or loss of the hedged item due to the hedged risk does not need to adjust the book value of thehedged item, and the relevant gains and losses are included into the current profits and losses or other comprehensiveincome.
When the Company cancels the designation of the hedging relationship, the hedging instrument has expired orbeen sold, the contract has been terminated or exercised, or no longer meets the conditions for the application of hedge
accounting, the application of hedge accounting shall be terminated.
30. Changes in significant accounting policies and estimates
(1) Changes of accounting policies
On July 5, 2017, the Ministry of Finance issued Accounting Standards for Business Enterprises No.14-Revenue(Revised in 2017) (CK [2017] No. 22), requiring domestic and board listed enterprises or board listed enterprise thatadopt international financial reporting standards or accounting standards for business enterprise to implement the newfinancial instrument criteria from January 1, 2018, others did in January 1, 2020. According to new financial standardsand notices above issued by the Ministry of Finance, the Company implemented the new financial revenue standard,which did not adjust for the comparative financial statements.
(2) Changes in Accounting Estimates
The main accounting estimates have not changed during the reporting period.
31. Significant accounting judgments and estimates
In the process of applying accounting policies, due to the inherent uncertainty of business activities, the Companyneeds to judge, estimate and assume the book value of statement items that cannot be accurately measured. Thesejudgments, estimates and assumptions are based on the Company's management's past historical experience and otherrelevant factors. These judgments, estimates and assumptions will affect the reported amounts of income, expenses,assets and liabilities and the disclosure of contingent liabilities at the balance sheet date. However, the actual resultscaused by the uncertainty of these estimates may be different from the current estimates of the Company's management,resulting in a significant adjustment to the carrying amount of the assets or liabilities affected in the future.
The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on the basis of goingconcern. If the change of accounting estimates only affects the current period of change, the number of impacts shall berecognized in the current period of change. If the change affects both the current and future periods, the number ofimpacts will be confirmed in the current and future periods of the change.
On the balance sheet date, the Company needs to judge, estimate and assume the amount of financial statementitems 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. Theapplication of the expected credit loss model requires significant judgment and estimation, and all reasonable and basisinformation, including forward-looking information, shall be considered. In making these judgments and estimates, theCompany deduces the expected changes in the debtor's credit risk based on historical data and combined with economicpolicies, macroeconomic indicators, industry risks, external market environment, technological environment, changes incustomer conditions and other factors.
(2) Inventory falling price reserves
According to the inventory accounting policy, the Company measures according to the lower of cost and netrealizable value. For the inventory whose cost is higher than net realizable value and which is obsolete and unsalable,the Company makes provision for inventory falling price. Impairment of inventories to net realizable value is based onthe evaluation of the marketability of inventories and their net realizable value. The appraisal of impairment ofinventories requires the management to make judgment and estimation on the basis of obtaining conclusive evidenceand considering factors such as the purpose of holding inventories and the influence of events after the balance sheetdate. The difference between the actual result and the original estimate will affect the book value of inventory and theaccrual or reversal of inventory depreciation reserve during the period when the estimate is changed.
(3) Provision for impairment of long-term assets
On the balance sheet date, the Company judges whether there are signs of possible impairment for non-currentassets other than financial assets. For intangible assets with uncertain service life, in addition to the annual impairmenttest, the impairment test is also carried out when there are signs of impairment. Other non-current assets other thanfinancial assets shall be tested for impairment when there are indications that their book amounts are not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the higher of the netamount of the fair value minus the disposal expenses and the present value of the estimated future cash flow, it indicatesthat an impairment has occurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the sales agreementprice or observable market price of similar assets in fair transactions, and deducting the incremental cost directlyattributable to the disposal of such assets.
When estimating the present value of future cash flow, it is necessary to make a significant judgment on the output,sales price, related operating costs and the discount rate used in the calculation of the present value of the asset (or assetgroup). In estimating the recoverable amount, the Company will use all relevant information available, includingforecasts of production, selling price and related operating costs based on reasonable and supportable assumptions.
The Company shall test whether goodwill is impaired at least every year. This requires an estimate of the presentvalue of the future cash flows of the asset group or portfolio of asset groups to which goodwill has been allocated.When predicting the present value of future cash flow, the Company needs to predict the cash flow generated by thefuture asset group or asset group portfolio, and at the same time, select the appropriate discount rate to determine thepresent value of future cash flow.
(4) Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, the Company willaccrue depreciation and amortization on a straight-line basis during their service lives. The Company reviews theservice life regularly to determine the amount of depreciation and amortization expenses to be included in eachreporting period. The service life is determined by the Company based on the past experience of similar assets and inportfolio with the expected technological updates. If there is a significant change in previous estimates, the depreciation
and amortization charges will be adjusted in the future.
(5) Deferred income tax assets
To the extent that there is likely to be sufficient taxable profits to offset the losses, the Company recognizesdeferred income tax assets for all unused tax losses. This requires the Company's management to use a large number ofjudgments to estimate the time and amount of future taxable profits, combined with tax planning strategies, to determinethe amount of deferred income tax assets to be recognized.
(6) Income tax
In the normal business activities of the Company, there are certain uncertainties in the final tax treatment andcalculation of some transactions. Whether some items can be paid before tax requires the approval of the tax authorities.If there is a difference between the final determination result of these tax matters and the amount initially estimated, thedifference will have an impact on the current income tax and deferred income tax during the final determination period.
(7) Accrued liabilities
According to the terms of the contract, existing knowledge and historical experience, the Company estimates andmakes corresponding provision for product quality assurance, estimated contract losses, liquidated damages for delayeddelivery, etc. In the event that such contingencies have formed a current obligation and the performance of the currentobligations is likely to result in outflow of economic benefits from the Company, the Company recognizes thecontingencies as estimated liabilities based on the best estimate of the expenditure required to perform the relevantcurrent obligations. The recognition and measurement of the estimated liabilities depend to a large extent on thejudgment of the management. In the process of judgment, the Company needs to evaluate the risks, uncertainties, timevalue of money and other factors related to these contingencies.
Among them, the Company will make an estimated liability for the after-sales quality maintenance commitmentsprovided to customers for the sale, maintenance and renovation of the goods sold. The Company's recent maintenanceexperience data have been taken into account when estimating liabilities, but the recent maintenance experience maynot reflect the future maintenance situation. Any increase or decrease in this provision may affect the profit and loss inthe future years.
(8) Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. Whenestimating the fair value of an asset or liability, the Company adopts the available observable market data available. Ifthe first level input value cannot be obtained, the Company will employ a qualified third-party appraiser to perform theappraisal. The Valuation Committee works closely with qualified external valuers to determine the appropriate valuationtechniques and inputs to the relevant models. The CFO shall report the findings of the Valuation Committee to theBoard of Directors of the Company on a quarterly basis to explain the reasons for the fluctuation of the fair value of therelevant assets and liabilities. Relevant information on valuation techniques and input values used in determining the
fair values of various assets and liabilities is disclosed in Note 10, Disclosure.V. 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. | 3%、5%、6%、9%、10%、13%、16% |
Urban Maintenance & Construction Tax | According to the actual value-added tax | 5%、7% |
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 | 1.5%、2% |
Corporate Taxes | According to taxable income | 15%、17%、25% |
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. | 1.2%、8%、12% |
Land Value Increment Tax | According to Real Estates Income;According to the transfer of real estate amount of simple levy | 1.5%、5% |
Tax Payers | Income Tax Rate |
Jingliang (Singapore) International Trade Co., Ltd. | 17% |
Beijing Guchuan Bread Food Co., Ltd. | 15% |
Hangzhou Linan Little Angel Food Co., Ltd. , a 4th tier subsidiary company of the Company: Where an enterpriseemploys persons with disabilities, on the basis of deduction according to the wages paid to the disabled workers, it maydeduct the amount of taxable income according to 100% of the wages paid to the disabled workers.According to the announcement of Zhejiang Provincial Tax Bureau (No. 8, 2014), Hangzhou Linan Little AngelFood Co., Ltd. , a 4th subsidiary company of the Company, can enjoy the preferential policy of reducing the urban landuse tax by an annual quota of 2,000 yuan per person for the average number of actual resettlement, and the maximumamount of reduction is the urban land use tax payable by the unit in the current year.
According to the annountment No.10, 2018 issued by Shandong Provincial Tax Bureau, tax base of the stampduties tax for industrial enterprise’s contract is based on procurement and sales, tax rate is 50% of revenue. LinqingXIaowangzi Food Limited paid stamp duties tax from January to September,2018 based on 130% of revenue, fromOctober, 2018, compute this tax based on 50% of the revenueCompany’s level 4 subsidiary-Liaoning Xiaowangzi Food Limited, according to the Supplementary Announcementon Land Use Tax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ No.140 Clause 13states that public land such as municipal street, square, public green etc. can be exempted from land use tax, whencomputing land use tax, the area used in the computation is total area less the area for afforest and streetJingliang (Singapore) International Trade Co., Ltd., a 3rd tier subsidiary of the Company, levies taxes on theprinciple of territoriality. For the subsidiary newly established in Singaporean, during the first consecutive three audityear, can enjoy the first three-year government tax exemption plan. Singapore's tax exemption plan is as follows: thefirst SGD 100,000 of annual income and the first SGD100,000: tax rate of 0. Parts of SGD100,001 to 300,000: tax rate
8.5%. Over $300,000 at tax rate 17%.
Beijing Guchuan Bread&Food Co., Ltd., a 3rd tier subsidiary of the Company, is a high-tech enterprise. OnNovember 30, 2018, it obtained the certificate of high-tech enterprise and the certificate number GR201811007245. It isvalid for three years. It enjoys the preferential tax policy of paying enterprise income tax at the 15% tax rate accordingto the relevant provisions of both “Law of the People's Republic of China on Tax Collection and Administration” and“Rules for the Implementation of the Tax Collection and Administration Law of the People's Republic of China”.
The company level 4 subsidiary Jingliang (Hebei) Oil Industry Co., Ltd., according to the financial departmentdocuments, local taxation bureau in Hebei province, Hebei province document ji caishui [2019] no. 56 "about partsreserve commodity announcement concerning the tax policy, accounting books shall be exempt from stamp duty forfunds, to undertake business book stand in the process of buying and selling contract commodity reserves shall beexempt from stamp duty, other parties in the contract should pay the stamp duty shall also be subject to duty-paymentaccording to the parties. Property tax and land use tax of cities and towns shall be exempted from the property tax andland use tax of cities and towns that undertake the business of commodity reserve for their own use. The notice will beexecuted on January 1, 2019 and will terminate on 31
st
December., 2021.
Jingliang (Hebei) Oil Industry Co., Ltd., a 4th subsidiary company of the Company, exempts the sale of edible
vegetable oil stored by the government from VAT according to “Notice of the Ministry of Finance and the StateAdministration of Taxation on the Levy and Exemption of Value Added Tax for Food Enterprises”(Cai Shui [1999]No.198)
The company level 3 subsidiary Beijing Tianweikang Grease Diaoxiao Center Co., LTD., according to the nationaltax administration of the ministry of finance, the notice about food enterprises exempted from VAT tax word (1999),article 5, 198, responsible for collection and storage of grain purchase and sale of state-owned grain enterprises andbusiness duty-free items listed in the notice of other food business, and government reserves edible vegetable oil salesenterprises, which should be examined by the competent tax authorities deemed tax-exempt status, not reported to thecompetent tax authorities where the audit determined that no exemption, From June 1, 2017 to December 31, 1999, thecompany will exempt edible vegetable oil stored by the government from VAT.The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited, according to thedocument JTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District, Tangshan, affiliated toState Administration of Taxation, and also followed the rules in Law of the People's Republic of China on theAdministration of Tax Collection, The Implementation Guideline of Law of the People's Republic of China on theAdministration of Tax Collection, the rice under the brand of Tixiang produced by Caofeidian company if exemptedfrom VAT.The level 2 subsidiary of the company-Jingliang Caofeidian Agricultural Development Limited, according to therules under Clause 27 of Corporate Law and its Implementation Guideline Clause 86, the rice under the brand ofTixiang produced by Caofeidian company if exempted from Corporation tax.
VI. Notes on Items in Consolidated Financial Statements
The following annotated items (including annotations of major items in the company's financial statements) referto January 1, 2020 at the beginning of the year, June 30
th, 2020 at the end of the period, December 31, 2019 at thebeginning of previous period, January to June in 2020 at the current period and January to June in 2019 at the lastperiod, unless otherwise specified.
1.Monetary Capital
Items | Ending Balance | Beginning Balance |
Cash in Treasury | 39,372.21 | 27,780.31 |
Bank Deposits | 499,567,205.01 | 555,138,729.05 |
Other Currency Funds | 70,411,210.93 | 2,002,003.03 |
Total | 570,017,788.15 | 557,168,512.39 |
Among them: the total amount of money deposited abroad | 13,012,241.56 | 76,673.88 |
Items | Ending Balance | Beginning Balance |
Designated as fair value through profit and loss | 153,300,000.00 | 161,300,000.00 |
Items | Ending Balance | Beginning Balance |
financial asset | ||
Among them: equity instrument investment | ||
Other | 153,300,000.00 | 161,300,000.00 |
Total | 153,300,000.00 | 161,300,000.00 |
Items | Ending Balance | Beginning Balance |
Futures Contracts | 120,761,236.80 | 88,792,254.00 |
Total | 120,761,236.80 | 88,792,254.00 |
Aging | Ending Balance |
Within 1 Year | 55,429,580.58 |
Among them: Within 3 months | 41,723,732.91 |
4-12 months | 13,705,847.67 |
1 to 2 years | 996,633.00 |
2 to 3 years | 7,621.50 |
3 to 4 years | 33,000.00 |
4 to 5 years | 242,264.00 |
More than 5 years | 177,291.40 |
Sub total | 56,886,390.48 |
minus: provision for bad debts | 1,511,867.96 |
Total | 55,374,522.52 |
Type(s) | Ending Balance | ||||
Book Balance | Bad Debt Provision | Book Value | |||
Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
Receivables with separate provision for bad debts | 1,325,135.40 | 2.33 | 1,325,135.40 | 100.00 | - |
Accounts Receivable for Bad Debt Provision Based on Portfolio | — | — | — | — | — |
Portfolio 1 - Age-based accounts receivable | 44,235,597.13 | 186,732.56 | 44,048,864.57 | ||
Portfolio 2 - Related Party Accounts Receivable | 11,325,657.95 | 11,325,657.95 | |||
Portfolio Total | 55,561,255.08 | 97.67 | 186,732.56 | 0.34 | 55,374,522.52 |
Total | 56,886,390.48 | 100.00 | 1,511,867.96 | ---- | 55,374,522.52 |
(Continued)
Type(s) | Beginning Balance | ||||
Book Balance | Bad Debt Provision | Book Value | |||
Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
Receivables with significant individual amounts and separate provision for bad debts | 1,325,135.40 | 1.61 | 1,325,135.40 | 100.00 | |
Accounts Receivable for Bad Debt Provision Based on Credit Risk Characteristic Portfolio | |||||
Portfolio 1 - Age-based accounts receivable | 71,459,010.77 | 186,732.56 | 71,272,278.21 | ||
Portfolio 2 -Related Party Accounts Receivable | 9,471,708.60 | 9,471,708.60 | |||
Portfolio Total | 80,930,719.37 | 98.39 | 186,732.56 | 0.23 | 80,743,986.81 |
Total | 82,255,854.77 | 100.00 | 1,511,867.96 | ---- | 80,743,986.81 |
Aging | Ending Balance | ||
Accounts Receivable | Bad Debt Provision | Provision Ratio(%) | |
Within 1 Year | 44,103,922.63 | 102,559.83 | |
Among them: Within 3 months | 40,310,878.91 | 0 | |
4-12 months | 3,793,043.72 | 102,559.83 | 2 |
1 to 2 years | 633.00 | 262.73 | 5 |
2 to 3 years | 7,621.50 | 600.00 | 20 |
3 to 4 years | 51,420.00 | 25,710.00 | 50 |
4 to 5 years | 72,000.00 | 57,600.00 | 80 |
More than 5 years | 100 | ||
Total | 44,235,597.13 | 186,732.56 | — |
Aging | Beginning Balance | ||
Accounts Receivable | Bad Debt Provision | Provision Ratio(%) | |
Within 1 Year | 71,034,407.08 | 53,078.50 | |
Among them: Within 3 months | 68,380,481.82 | 0 | |
4-12 months | 2,653,925.26 | 53,078.50 | 2 |
1 to 2 years | 65,951.22 | 3,297.57 | 5 |
2 to 3 years | 235,232.47 | 47,046.49 | 20 |
3 to 4 years | 51,420.00 | 25,710.00 | 50 |
4 to 5 years | 72,000.00 | 57,600.00 | 80 |
More than 5 years | 100 | ||
Total | 71,459,010.77 | 186,732.56 | — |
Items | Beginning Balance | The amount changed for the period | Ending Balance | ||
addition | Write-off | Other deduct | |||
Provision for bad debt | 1,511,867.96 | 1,511,867.96 | |||
Total | 1,511,867.96 | 1,511,867.96 |
Debtors | total ending balance of accounts receivable | Ratio of the total ending balance of accounts receivable (%) | Ending Balance of Bad Debt Provision |
Customer #1 | 5,363,751.27 | 9.43 | |
Customer #2 | 4,165,071.89 | 7.32 | |
Customer #3 | 3,422,950.00 | 6.02 | |
Customer #4 | 2,562,840.26 | 4.51 | 46,302.29 |
Customer #5 | 1,648,646.50 | 2.90 | |
Total | 17,163,259.92 | 30.18 | 46,302.29 |
Aging | Ending Balance | Beginning Balance | ||
Amount | Ratio(%) | Amount | Ratio(%) | |
Within 1 Years | 602,889,731.58 | 99.96 | 138,172,859.10 | 99.85 |
1 to 2 years | 105,769.00 | 0.02 | 183,841.00 | 0.13 |
2 to 3 years | 140,480.00 | 0.02 | 23,100.00 | 0.02 |
More than 3 years | ||||
Total | 603,135,980.58 | 100.00 | 138,379,800.10 | 100.00 |
Company Name | Ending Balance | Ratio of the total ending balance of prepayments (%) |
Supplier #1 | 360,326,725.61 | 59.74 |
Supplier #2 | 56,480,594.65 | 9.36 |
Supplier #3 | 36,750,000.00 | 6.09 |
Supplier #4 | 32,016,000.00 | 5.31 |
Supplier #5 | 22,366,005.08 | 3.71 |
Total | 507,939,325.34 | 84.22 |
Item(s) | Ending Balance | Beginning Balance |
Interest Receivable | 1,854,761.12 | 3,927,438.90 |
Dividend Receivable |
Item(s) | Ending Balance | Beginning Balance |
Other Receivables | 17,177,397.97 | 15,292,658.44 |
Total | 19,032,159.09 | 19,220,097.34 |
Item(s) | Ending Balance | Beginning Balance |
Time deposit interest | 1,854,761.12 | 3,927,438.90 |
Sub total | 1,854,761.12 | 3,927,438.90 |
Minus: provision for bad debts | ||
Total | 1,854,761.12 | 3,927,438.90 |
Aging | Ending Balance |
Within 1 Year | 14,178,535.30 |
Among them: Within 3 months | 11,805,146.16 |
4-12 months | 2,373,389.14 |
1 to 2 years | 2,141,517.73 |
2 to 3 years | 369,447.51 |
3 to 4 years | 473,875.27 |
4 to 5 years | 175,922.00 |
More than 5 years | 75,999.99 |
Sub total | 17,415,297.80 |
minus: provision for bad debts | 237,899.83 |
Total | 17,177,397.97 |
Nature of Funds | Book Balance at End of Period | Book Balance at Beginning of Year |
Petty Cash (Employee and Department) | 223,794.25 | 114,271.85 |
Guaranteed Deposit and Deposit | 6,052,842.88 | 5,772,303.92 |
Intercourse Funds of Units | 6,832,548.81 | 5,736,772.70 |
Employee Receivables | 473,907.36 | 600,224.88 |
Tax Refund Receivables | 175,922.00 | 2,366,765.34 |
Other Receivables | 3,607,144.50 | 913,581.58 |
Substitute Advance | 49,138.00 | 26,638.00 |
Sub total | 17,415,297.80 | 15,530,558.27 |
minus: provision for bad debts | 237,899.83 | 237,899.83 |
Total | 17,177,397.97 | 15,292,658.44 |
C. Details about bad debt provision
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 2020 | 187,899.83 | 50,000.00 | 237,899.83 | |
Carrying amount of other receivable on 1st January 2020 that in this period: | ||||
——Get into Stage 2 | ||||
——Get into Stage 3 | ||||
——Get back to Stage 2 | ||||
——Get back to Stage 1 | ||||
Provision for the period | ||||
Reverse for the period | ||||
Transfer for the period | ||||
Write off for the period | ||||
Other deduct | ||||
Carrying amount at the end of the period | 187,899.83 | 50,000.00 | 237,899.83 |
Type | Carrying amount at the beginning | Amount changes for the period | Carrying amount at the end | ||
addition | Write off | Other deduct | |||
Bad debt provision | 237,899.83 | 237,899.83 | |||
Total | 237,899.83 | 237,899.83 |
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 |
Organization #1 | Intercourse Funds of Units | 2,779,847.98 | Within 3 months | 15.96 | |
Organization #2 | Guaranteed Deposit | 1,189,500.00 | Within 1 year | 6.83 | |
Organization #3 | Intercourse Funds of Units | 3,051,279.99 | Within 3 months | 17.52 | |
Organization #4 | Guaranteed Deposit | 1,853,125.71 | Within 1 year | 10.64 | |
Organization #5 | Guaranteed Deposit | 600,000.00 | 1-2 years | 3.45 | |
Total | — | 9,473,753.68 | — | 54.4 |
Items | Balance at End of Period |
Book Balance | Falling Price Reserves | Book Value | |
Raw Materials | 172,445,026.46 | 172,445,026.46 | |
Revolving Materials | 5,953,198.76 | 5,953,198.76 | |
Stock goods | 709,250,189.37 | 170,341.46 | 709,079,847.91 |
Developing Costs | 16,075,372.26 | 16,075,372.26 | |
Develop Products | 16,497,730.12 | 11,673,694.67 | 4,824,035.45 |
In total | 920,221,516.97 | 11,844,036.13 | 908,377,480.84 |
Items | Balance at Beginning of Year | ||
Book Balance | Falling Price Reserves | Book Value | |
Raw Materials | 186,791,440.87 | 186,791,440.87 | |
Revolving Materials | 6,155,422.13 | 6,155,422.13 | |
Stock goods | 1,191,645,994.73 | 170,341.46 | 1,191,475,653.27 |
Developing Costs | 18,909,838.76 | 18,909,838.76 | |
Develop Products | 16,497,730.12 | 11,673,694.67 | 4,824,035.45 |
Processing Commission | 4,599,271.17 | 4,599,271.17 | |
In total | 1,424,599,697.78 | 11,844,036.13 | 1,412,755,661.65 |
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 | |||
Raw Materials | ||||||
Stock Goods | 170,341.46 | 170,341.46 | ||||
Develop Products | 11,673,694.67 | 11,673,694.67 | ||||
In total | 11,844,036.13 | 11,844,036.13 |
Items | Balance at End of Period | Balance at Beginning of Year |
Financial Products | 655,000,000.00 | 393,198,608.68 |
Pre-paid Taxes and Fees | 11,298,127.81 | 1,369,643.50 |
Pending Deduct VAT Input Tax | 22,878,087.98 | 69,764,662.41 |
Fair Value Changes of Items Trapped at Hedging | 10,792,546.20 | 95,964,318.54 |
In total | 699,968,761.99 | 560,297,233.13 |
Item | Carrying amount at the end of the period | Carrying among at the beginning of the period | ||||
Carrying amount | Bad debt provision | Book value | Carrying amount | Bad debt provision | Book value |
Item | Carrying amount at the end of the period | Carrying among at the beginning of the period | ||||
Carrying amount | Bad debt provision | Book value | Carrying amount | Bad debt provision | Book value | |
Investment in Joint Venture | 79,353,334.69 | 79,353,334.69 | 72,816,569.30 | 72,816,569.30 | ||
Investment in associates | 125,895,777.78 | 125,895,777.78 | 125,484,764.49 | 125,484,764.49 | ||
Total | 205,249,112.47 | 205,249,112.47 | 198,301,333.79 | 198,301,333.79 |
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 Law | Adjustment on Other Comprehensive Income | Other Changes in Equity | ||
One Cooperative Enterprise | ||||||
CP Group | 72,816,569.30 | 6,536,765.39 | ||||
Sub-total | 72,816,569.30 | 6,536,765.39 | ||||
Two Joint Venture | ||||||
China Grain Reserves (Tianjin) Warehouse Logistics Co., Ltd. | 117,636,450.78 | 411,013.29 | ||||
Jingliang Miss Me Food Management (Tianjin) Limited | 7,848,313.71 | |||||
Sub-total | 125,484,764.49 | 411,013.29 | ||||
In total | 198,301,333.79 | 6,947,778.68 |
Invested Unit | Increase or Decrease in the Current Period | Balance at End of Period | Ending Balance of Impairment Reserves | ||
Announce to Distribute Case Dividends or Profits | Accrual of Impairment Reserves | Others | |||
One Cooperative Enterprise | |||||
CP Group | 79,353,334.69 | ||||
Sub-total | 79,353,334.69 | ||||
Two Joint Venture | |||||
China Grain Reserves (Tianjin) Warehouse Logistics Co., Ltd. | 118,047,464.07 | ||||
Jingliang Miss Me Food Management (Tianjin) Limited | 7,848,313.71 | ||||
Sub-total | 125,895,777.78 | ||||
In total | 205,249,112.47 |
(1)Other equity instruments investment
The invested organization | Ending Balance | Balance at the beginning of Year |
Chongqing long jinbao network technology co. LTD | 20,000,000.00 | 20,000,000.00 |
Total | 20,000,000.00 | 20,000,000.00 |
Items | Buildings | Land Use Right | Projects under Construction | In total |
One Original Book Value | ||||
1. Balance at Beginning of Year | 42,634,619.63 | 42,634,619.63 | ||
2. Increased Amounts in the Current Period | ||||
3. Decreased Amounts in the Current Period | 7,643,368.25 | 7,643,368.25 | ||
a. Disposal | 7,643,368.25 | 7,643,368.25 | ||
4. Balance at End of Period | 34,991,251.38 | 34,991,251.38 | ||
Two Accumulated Impairment and Accumulated Amortization | ||||
1. Balance at Beginning of Year | 10,399,425.17 | 10,399,425.17 | ||
2. Increased Amounts in the Current Period | 806,875.44 | 806,875.44 | ||
(1) Accrual or Amortization | 806,875.44 | 806,875.44 | ||
3. Decreased Amounts in the Current Period | ||||
4. Balance at End of Period | 11,206,300.61 | 11,206,300.61 | ||
Three Impairment Reserves | ||||
1. Balance at Beginning of Year | 453,843.72 | 453,843.72 | ||
2. Increased Amounts in the Current Period | ||||
3. Decreased Amounts in the Current Period | ||||
4. Balance at End of Period | 453,843.72 | 453,843.72 | ||
Four Book Value | ||||
1. Book Value at End of Period | 23,331,107.05 | 23,331,107.05 | ||
2. Book Value at Beginning of Year | 31,781,350.74 | 31,781,350.74 |
Items | Balance at End of Period | Balance at Beginning of Year |
Fixed Assets | 1,166,435,679.47 | 1,210,450,340.22 |
Disposal of Fixed Assets | ||
In total | 1,166,435,679.47 | 1,210,450,340.22 |
Items | Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | In total |
One Original Book Value | |||||||
1. Balance at Beginning of Year | 1,072,321,981.43 | 378,411,230.58 | 19,545,084.11 | 14,918,304.67 | 2,158,897.13 | 371,548,039.27 | 1,858,903,537.19 |
2. Increased Amounts in the Current Period | - | 2,496,790.32 | 285,065.67 | 753,467.62 | 86,637.17 | 2,691,935.31 | 6,313,896.09 |
(1) Purchase | 1,491,346.45 | 285,065.67 | 649,447.54 | 86,637.17 | 2,645,272.48 | 5,157,769.31 | |
(2) Roll-in of Project under Construction | 444,909.60 | 104,020.08 | 548,929.68 | ||||
(3) Other Roll-ins | 560,534.27 | 46,662.83 | 607,197.10 | ||||
3. Decreased Amounts in the Current Period | - | 1,908,113.23 | 399,657.00 | 63,706.41 | - | 53,262.27 | 2,424,738.91 |
(1) Disposal or Scrap | 948,113.23 | 399,657.00 | 63,706.41 | 53,262.27 | 1,464,738.91 | ||
(2) Other Roll-outs | 960,000.00 | 960,000.00 | |||||
4. Balance at End of Period | 1,072,321,981.43 | 378,999,907.67 | 19,430,492.78 | 15,608,065.88 | 2,245,534.30 | 374,186,712.31 | 1,862,792,694.37 |
Three Accumulated Impairment | |||||||
1. Balance at Beginning of Year | 299,179,918.09 | 153,988,342.69 | 13,256,657.54 | 11,374,349.35 | 1,442,278.04 | 161,541,068.22 | 640,782,613.93 |
2. Increased Amounts in the Current Period | 19,911,695.06 | 15,479,762.99 | 573,648.16 | 727,258.73 | 65,181.90 | 11,970,616.15 | 48,728,162.99 |
(1) Accrual | 19,911,695.06 | 15,479,762.99 | 573,648.16 | 727,258.73 | 65,181.90 | 11,970,616.15 | 48,728,162.99 |
3. Decreased Amounts in the Current Period | - | 336,894.41 | 379,674.15 | 56,858.00 | 50,918.49 | 824,345.05 | |
(1) Disposal or Scrap | 336,894.41 | 379,674.15 | 45,861.63 | 50,918.49 | 813,348.68 | ||
(2) Other Roll-outs | 10,996.37 | 10,996.37 | |||||
4. Balance at End of Period | 319,091,613.15 | 169,131,211.27 | 13,450,631.55 | 12,044,750.08 | 1,507,459.94 | 173,460,765.88 | 688,686,431.87 |
Three Impairment Reserves | |||||||
1. Balance at Beginning of Year | 7,499,295.92 | 171,287.12 | 7,670,583.04 | ||||
2. Increased Amounts in the Current Period | - | ||||||
3. Decreased Amounts in the Current Period | - | ||||||
4. Balance at End of Period | 7,499,295.92 | 171,287.12 | - | - | - | - | 7,670,583.04 |
Four Book Value | |||||||
1. Book Value at | 745,731,072.36 | 209,697,409.29 | 5,979,861.23 | 3,563,315.80 | 738,074.36 | 200,725,946.43 | 1,166,435,679.47 |
Items | Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | In total |
End of Period | |||||||
2. Book Value at Beginning of Year | 765,642,767.42 | 224,251,600.77 | 6,288,426.57 | 3,543,955.32 | 716,619.09 | 210,006,971.05 | 1,210,450,340.22 |
Items | Original Book Value | Accumulated Impairment | Impairment Reserves | Book Value | Notes |
Buildings | 47,708.00 | 36,401.08 | 8,921.52 | 2,385.44 | |
Machinery Equipment | 433,476.03 | 261,171.55 | 150,630.69 | 21,673.79 | |
In total | 481,184.03 | 297,572.63 | 159,552.21 | 24,059.19 |
Items | Balance at End of Period | Balance at Beginning of Year |
Project under Construction | 13,941,962.47 | 17,876,177.78 |
In total | 13,941,962.47 | 17,876,177.78 |
Items | Balance at End of Period | Balance at Beginning of Year | ||||
Book Balance | Impairment Reserves | Book Value | Book Balance | Impairment Reserves | Book Value | |
Equipment Installation Engineering Type | 5,031,740.53 | 5,031,740.53 | 10,314,744.11 | 10,314,744.11 | ||
Technical Transformation Type | 4,068,509.67 | 4,068,509.67 | 3,822,472.00 | 3,822,472.00 | ||
Building Construction Type | 4,841,712.27 | 4,841,712.27 | 3,738,961.67 | 3,738,961.67 | ||
In total | 13,941,962.47 | 13,941,962.47 | 17,876,177.78 | 17,876,177.78 |
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 |
Plant No.2 Walnut Cake Production Line | 4,457,068.09 | 548,929.68 | 3,551,070.32 | 357,068.09 | |
Plant No.2 Chips Production Line | 848,372.58 | 204,243.00 | 695,500.00 | 357,115.58 | |
4D Overlaid Corn Flakes Production Line | 68,000.00 | 34,781.00 | 68,000.00 | 34,781.00 | |
Squeezed and Baked Corn Flakes Production Line Small Fried Potato Chips | 50,000.00 | 50,000.00 | |||
Leisure Plant No.2 Non-fried Potato Chips Production Line(7 lines) | 3,800,000.00 | 3,800,000.00 | |||
Plant No.3 side and slope control | 1,887,688.90 | 1,611,650.51 | 3,499,339.41 |
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 |
program | |||||
New stick product equipment input program | 1,717,083.99 | 49,322.51 | 1,766,406.50 | ||
Wheat packaging automation and stater improvement renovation program | 217,699.11 | 217,699.11 | |||
Daily Walnuts | 731,292.09 | 731,292.09 | |||
Bread workshop fire facilities | 974,577.28 | 1,102,750.60 | 2,077,327.88 | ||
Bread workshop fire blocking steel plates | 2,764,384.39 | 2,764,384.39 | |||
Total | 16,784,874.34 | 3,734,039.71 | 548,929.68 | 8,164,570.32 | 11,805,414.05 |
Items | Software | Land Use Right | Trademark Right | Others | In total |
One Original Book Value | |||||
1. Balance at Beginning of Year | 3,614,817.40 | 316,407,869.54 | 154,841,200.00 | 689,220.00 | 475,553,106.94 |
2. Increased Amounts in the Current Period | 10,619.47 | 10,619.47 | |||
(1) Purchase | 10,619.47 | 10,619.47 | |||
(3) Others | |||||
3. Decreased Amounts in the Current Period | |||||
(1) Disposal | |||||
(2) Others | |||||
4. Balance at End of Period | 3,625,436.87 | 316,407,869.54 | 154,841,200.00 | 689,220.00 | 475,563,726.41 |
Two Accumulated Amortization | |||||
1. Balance at Beginning of Year | 3,376,870.13 | 55,021,509.60 | 48,321,445.83 | 447.00 | 106,720,272.56 |
2. Increased Amounts in the Current Period | 109,720.42 | 3,427,286.20 | 3,856,962.93 | 2,682.00 | 7,396,651.55 |
(1) Accrual | 109,720.42 | 3,427,286.20 | 3,856,962.93 | 2,682.00 | 7,396,651.55 |
(2) Others | |||||
3. Decreased Amounts in the Current Period | |||||
(1) Disposal | |||||
(2) Others | |||||
4. Balance at End of Period | 3,486,590.55 | 58,448,795.80 | 52,178,408.76 | 3,129.00 | 114,116,924.11 |
Three Impairment Reserves | |||||
1. Balance at Beginning of Year | 662,400.00 | 662,400.00 | |||
2. Increased Amounts in the Current Period | |||||
3. Decreased Amounts in the Current Period |
Items | Software | Land Use Right | Trademark Right | Others | In total |
4. Balance at End of Period | 662,400.00 | 662,400.00 | |||
Four Book Value | |||||
1. Book Value at End of Period | 138,846.32 | 257,959,073.75 | 102,662,791.24 | 23,691.00 | 360,784,402.31 |
2. Book Value at Beginning of Year | 237,947.27 | 261,386,359.94 | 106,519,754.17 | 26,373.00 | 368,170,434.38 |
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 |
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 |
Plant Renovation Expense | 15,738,757.99 | 266,031.92 | 15,472,726.07 | ||
Woodland Rental Expense | 5,083,560.00 | 56,484.00 | 5,027,076.00 | ||
Information Disclosure Expense | 86,477.92 | 86,477.92 | |||
Car Rental Fees | 117,833.06 | 59,037.94 | 58,795.12 | ||
In total | 21,026,628.97 | 468,031.78 | 20,558,597.19 |
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 Reserves | 190,997.87 | 47,749.46 | 190,997.87 | 47,749.46 |
Deductible Loss | 24,524,288.08 | 6,131,072.02 | 31,275,069.47 | 7,818,767.37 |
Valuation of Financial Instruments and Derivative | 18,439,257.15 | 4,609,814.29 | 8,344,697.92 | 2,086,174.48 |
Financial Instruments | ||||
Deferred Income | 900,000.00 | 225,000.00 | 1,901,363.76 | 475,340.94 |
Employee Pay Payable | 5,687,080.00 | 1,421,770.00 | 5,687,080.00 | 1,421,770.00 |
Credit impairment Loss | 1,613,752.34 | 400,338.47 | 1,613,752.34 | 400,338.47 |
In total | 51,355,375.44 | 12,835,744.24 | 49,012,961.36 | 12,250,140.72 |
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 of Financial Instruments and Derivative Financial Instruments | 8,347.32 | 2,086.83 | 61,988,283.56 | 15,497,070.89 |
Difference between fair value of identifiable net asset by acquiree confirmed by enterprise merger and its book value of net asset | 182,599,834.36 | 45,649,958.59 | 187,755,812.28 | 46,938,953.07 |
In total | 182,608,181.68 | 45,652,045.42 | 249,744,095.84 | 62,436,023.96 |
Item | Offsetting amount of deferred tax assets and liabilities | Carrying amount after offsetting between deferred tax assets and liabilities | offsetting amount of deferred tax assets and liabilities at the end of last period | Carrying amount after offsetting between deferred tax assets and liabilities at the end of last period |
Deferred tax asset | 12,835,744.24 | 9,647,074.34 | 2,603,066.38 | |
Deferred tax liabilities | 45,652,045.42 | 9,647,074.34 | 52,788,949.62 |
Items | Balance at End of Period | Balance at Beginning of Year |
Deductible Loss | 29,906.20 | |
Deductible temporary differences | 91,714,506.30 | 80,581,354.00 |
In total | 91,714,506.30 | 80,611,260.20 |
Year | Balance at End of Period | Balance at Beginning of Year | Notes |
2020 | 5,769,102.97 | ||
2021 | 4,504,020.42 | 4,504,020.42 | |
2022 | 4,021,787.39 | 4,021,787.39 | |
2023 | 19,123,515.53 | 19,123,515.53 | |
2024 | 47,162,927.69 | 47,162,927.69 | |
2025 | 16,902,255.27 | ||
In Total | 91,714,506.30 | 80,581,354.00 |
Items | Balance at End of Period | Balance at Beginning of Year |
Items | Balance at End of Period | Balance at Beginning of Year |
Equipment and Project Funds | 1,005,300.00 | |
Certificates of Deposit | 190,000,000.00 | 150,000,000.00 |
Less: part due within one year | ||
In total | 190,000,000.00 | 151,005,300.00 |
Items | Balance at End of Period | Balance at Beginning of Year |
Guaranteed Loan | 81,936,744.95 | 310,000,000.00 |
Fiduciary Loan | 1,505,133,982.00 | 1,019,238,701.60 |
In total | 1,587,070,726.95 | 1,329,238,701.60 |
Items | Balance at End of Period | Balance at Beginning of Year |
Material Funds Payable | 128,413,739.58 | 117,367,304.89 |
Project Funds Payable | 298,083.85 | 5,013,460.24 |
Equipment Funds Payable | 336,522.00 | 5,511,888.97 |
Others | 1,529,573.38 | 2,675,759.33 |
In total | 130,577,918.81 | 130,568,413.43 |
Items | Balance at End of Period | Balance at Beginning of Year |
Sales Revenue Collected in Advance | 466,156,950.04 | |
Collect rent in advance | 983,521.42 | |
Land restoration bonus | 13,825,688.07 | |
Others | 153,301.88 | |
In total | 481,119,461.41 |
Items | Balance at End of Period | Balance at Beginning of Year |
Sales Revenue Collected in Advance | 289,719,359.19 | |
Collect rent in advance | ||
Land restoration bonus | 13,825,688.07 | |
Others | 542,105.33 | |
In total | 304,087,152.59 |
23.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 |
One Short-term Compensation | 23,995,435.46 | 128,622,018.93 | 140,758,771.52 | 11,858,682.87 |
Two After-service Welfare-Stated Drawings Plan | 1,164,705.96 | 4,379,478.70 | 3,435,030.79 | 2,109,153.87 |
Three Dismission Welfare | 32,442.16 | 67,891.00 | 100,333.16 | |
In total | 25,192,583.58 | 133,069,388.63 | 144,294,135.47 | 13,967,836.74 |
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 | 20,180,061.36 | 110,670,841.55 | 124,132,690.15 | 6,718,212.76 |
2. Welfare Expense of Employee | 60.00 | 1,730,319.06 | 1,698,394.56 | 31,984.50 |
3. Social Insurance Expense | 846,432.39 | 7,171,701.09 | 6,370,425.01 | 1,647,708.47 |
Among them: Medical Insurance Premiums | 562,434.69 | 5,343,904.74 | 4,672,034.12 | 1,234,305.31 |
Industrial Injury Insurance Premiums | 139,694.48 | 539,311.56 | 351,237.12 | 327,768.92 |
Birth Insurance Premiums | 50,771.05 | 309,213.21 | 308,050.29 | 51,933.97 |
Others | 93,532.17 | 979,271.58 | 1,039,103.48 | 33,700.27 |
4. Housing Provident Funds | 305,120.07 | 6,977,671.38 | 7,057,162.00 | 225,629.45 |
5. Labor Union Expense and Personnel Education Fund | 2,663,761.64 | 2,071,485.85 | 1,500,099.80 | 3,235,147.69 |
In total | 23,995,435.46 | 128,622,018.93 | 140,758,771.52 | 11,858,682.87 |
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 | 1,084,152.50 | 3,459,083.33 | 2,547,121.12 | 1,996,114.71 |
2. Unemployment Insurance Expense | 46,187.77 | 135,573.96 | 103,440.52 | 78,321.21 |
3. Enterprise Annuity Charges | 34,365.69 | 784,821.41 | 784,469.15 | 34,717.95 |
In Total | 1,164,705.96 | 4,379,478.70 | 3,435,030.79 | 2,109,153.87 |
Items | Balance at End of Period | Balance at Beginning of Year |
VAT | 6,398,018.10 | 9,856,580.09 |
Urban Maintenance and Construction Tax | 535,793.26 | 780,497.63 |
Corporate Income Tax | 24,910,296.25 | 25,362,765.03 |
Items | Balance at End of Period | Balance at Beginning of Year |
House Property Tax | 917,019.76 | 2,679,468.56 |
Land Use Tax | 278,609.25 | 466,291.09 |
Individual Income Tax | 137,132.68 | 7,588,240.51 |
Educational Surtax | 187,525.34 | 297,757.24 |
Local Educational Surtax | 177,159.95 | 250,647.90 |
Stamp Tax | 227,747.98 | 552,502.89 |
Resources Tax | 4,240.00 | |
Others | 23,534.64 | 3,630.47 |
In total | 33,792,837.21 | 47,842,621.41 |
Items | Balance at End of Period | Balance at Beginning of Year |
Interest Payable | 22,529,982.62 | 24,604,524.69 |
Dividends Payable | 11,013,302.88 | 11,013,302.88 |
Other Accounts Payable | 106,719,290.69 | 60,553,568.66 |
In total | 140,262,576.19 | 96,171,396.23 |
Items | Balance at End of Period | Balance at Beginning of Year |
Loan Interest between Enterprises | 21,082,795.47 | 21,082,795.47 |
Bank Loan Interest | 1,447,187.15 | 3,521,729.22 |
In total | 22,529,982.62 | 24,604,524.69 |
Items | Balance at End of Period | Balance at Beginning of Year |
Dividend Payable for Corporate Shares | 3,213,302.88 | 3,213,302.88 |
Dividends Payable for Minority Shareholders | 7,800,000.00 | 7,800,000.00 |
In total | 11,013,302.88 | 11,013,302.88 |
Items | Balance at End of Period | Balance at Beginning of Year |
Loan and Interest | 11,258,346.00 | 11,258,346.00 |
Intercourse Funds of Related Parties | 2,992,100.26 | 7,852,823.90 |
Intercourse Funds between Units | 37,574,608.36 | 12,791,535.12 |
Personal Intercourse Funds | 4,336,771.43 | 2,930,547.58 |
Various Insurances of Employee | 2,127,463.59 | 1,605,759.25 |
Employee Loan Payable | 18,687.02 | |
Guaranteed Deposit and Deposit | 40,105,380.44 | 21,235,322.03 |
Warehouse and Storage Charges | 2,068,351.19 | 701,645.19 |
Others | 6,237,582.40 | 2,177,589.59 |
In total | 106,719,290.69 | 60,553,568.66 |
Items | Balance at End of Period | Balance at Beginning of Year |
Items | Balance at End of Period | Balance at Beginning of Year |
Fair Value Changes of Items Trapped at Hedging | 30,459,525.96 | |
In total | 30,459,525.96 |
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 | 71,518,169.27 | 845,880.18 | 70,672,289.09 | ||
Others | 107,558.41 | 107,558.41 | |||
In total | 71,518,169.27 | 107,558.41 | 845,880.18 | 70,779,847.50 | — |
Items Receiving Subsidy | Balance at Beginning of Year | Increase in the Current Period | Charge to Non-operating Income | Charge to other Profits | Other Decreases | Balance at End of Period |
Relocation Compensation | 4,617,165.78 | 4,617,165.78 | ||||
Special Subsidy for Production line’s tech improvements | 900,000.00 | 900,000.00 | ||||
Special Subsidy for Infrastructure Input | 11,205,178.95 | 11,205,178.95 | ||||
Enterprise Supporting Infrastructure at Construction Stage of “Tianjin Harbor Industrial Park Administrative Committee” | 51,206,627.77 | 638,752.08 | 50,567,875.69 | |||
Tianjin Binhai New District’s Industrially Technical Renovation and Park Construction Funds as well as Expenditures for Science and Technology | 2,314,814.69 | 207,048.10 | 2,107,766.59 | |||
Fixed Assets Specially Formed by Science and Technology Commission of Guchuan Edible Oil | 856,227.08 | 856,227.08 | ||||
Appropriation for Oil Tank’s Electric Heating System | 118,585.04 | 118,585.04 | ||||
Cooking Oil Green and Cleaning Production Equipment, Technical Study as well as Science and Technology Demonstration | 299,569.96 | 299,569.96 | ||||
In total | 71,518,169.27 | 845,880.18 | 70,672,289.09 |
Items | Balance at End of Period | Balance at Beginning of Year |
One Dismission Welfare | 43,582.87 | |
Two Other Long-term Welfare | 5,720,716.87 | 5,687,080.00 |
In total | 5,720,716.87 | 5,730,662.87 |
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 Restricted Conditions |
(1) State Shareholding |
(2) State-owned Legal-person Shareholding | 213,388,058.00 | 213,388,058.00 |
(3) Other Domestic Capital Shareholding | 1,299,500.00 | 41,159,887.00 | 41,159,887.00 | 42,459,387.00 |
Including: |
Domestic Legal-person Shareholding | 1,299,500.00 | 1,299,500.00 |
Domestic Natural Person Shareholding | 41,159,887.00 | 41,159,887.00 | 41,159,887.00 |
(4) Foreign Shareholding |
Including: |
Foreign Legal-person Shareholding |
Foreign Natural Person Shareholding |
Total Shares with Restricted Conditions | 214,687,558.00 | 41,159,887.00 | 41,159,887.00 | 255,847,445.00 |
2. Tradable Shares without Restricted Conditions |
(1) RMB Ordinary Shares | 406,127,806.00 | 406,127,806.00 |
(2) Domestically Listed Foreign Shares | 64,975,000.00 | 64,975,000.00 |
(3) Listed Foreign Shares Overseas | - |
(4) Others | - |
Total Tradable Shares without Restricted Conditions | 471,102,806.00 | 471,102,806.00 |
In total | 685,790,364.00 | 41,159,887.00 | 41,159,887.00 | 726,950,251.00 |
Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
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) | 1,243,731,683.62 | 84,161,371.48 | 1,327,893,055.10 | |
Capital Reserves Roll-in Under Original System | 112,316,357.36 | 112,316,357.36 | ||
Other Capital Reserves | 239,624,007.21 | 239,624,007.21 | ||
In total | 1,595,672,048.19 | 84,161,371.48 | 1,679,833,419.67 |
Items | Balance at Beginning of Year | Amounts Occurred in the Current Period | Balance at End of Period | ||||
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: Income Tax Expense | Attributable to Parent Company After Tax | Attributable to Minority Shareholders After Tax | |||
One Other comprehensive incomes that won’t be classified into profit and loss | |||||||
Two Other comprehensive incomes that will be classified into profit and loss | 267,628.14 | 106,731.84 | 106,731.84 | 374,359.98 | |||
Changes in fair value through profit and loss for available-for-sale financial assets | -273,702.00 | -273,702.00 | |||||
Converted difference between foreign currency financial statements | 541,330.14 | 106,731.84 | 106,731.84 | 648,061.98 | |||
In total | 267,628.14 | 106,731.84 | 106,731.84 | 374,359.98 |
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 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Adjustment on undistributed profit at end of last year | 2,186,806.56 | -131,155,119.19 |
Adjustment on total number of undistributed profit at beginning of period (increase+ and decrease-) | ||
Adjusted undistributed profit at beginning of period | 2,186,806.56 | -131,155,119.19 |
Add: net profit attributable to parent company in the current period | 73,762,895.19 | 51,510,904.41 |
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 | 75,949,701.75 | -79,644,214.78 |
Items | Balance at End of Period | Balance at Beginning of Period |
Sinograin Oils Corporation | 256,302,159.58 | 247,200,159.58 |
Wang Yuecheng and other minority shareholders of Zhejiang Xiaowangzi Food Co., Ltd. | 36,847,296.93 | 262,136,908.18 |
Hebei Provincial Oil Pool Co., Ltd. | 35,628,350.84 | 37,432,892.43 |
Tangshan Caofeidian Agricultural Development Group Co., Ltd. | 23,931,556.33 | 24,033,762.48 |
Xinyi Yaowan Tourism Industrial Park Development Co., Ltd. | 8,686,677.78 | 8,726,102.59 |
Beijing Grain Xinniu Runying Equity Investment Fund (Limited Partnership) | 1,447,779.63 | 1,454,350.43 |
Shanghai Heheng Management Consulting Co., Ltd. | 4,053,782.97 | 4,072,181.21 |
In total | 366,897,604.06 | 585,056,356.90 |
Items | Amounts in the Current Period | Amounts in the Prior Period | ||
Revenue | Cost | Revenue | Cost | |
Prime Business | 3,737,897,021.63 | 3,352,581,703.86 | 3,257,865,991.64 | 3,035,952,555.86 |
Other Business | 12,876,046.00 | 3,619,554.20 | 25,411,733.75 | 4,726,185.28 |
In total | 3,750,773,067.63 | 3,356,201,258.06 | 3,283,277,725.39 | 3,040,678,741.14 |
Name of Industry (or Business) | Amounts in the Current Period | Amounts in the Prior Period | ||
Revenue | Cost | Revenue | Cost | |
Oil | 3,288,905,719.04 | 3,046,368,506.47 | 2,806,393,935.07 | 2,729,552,663.26 |
Food Processing | 448,991,302.59 | 306,213,197.39 | 451,472,056.57 | 306,399,892.60 |
In total | 3,737,897,021.63 | 3,352,581,703.86 | 3,257,865,991.64 | 3,035,952,555.86 |
Name of Region | Amounts in the Current Period | Amounts in the Prior Period | ||
Revenue | Cost | Revenue | Cost | |
North China | 3,324,692,828.54 | 3,069,424,264.71 | 2,877,861,106.26 | 2,780,606,295.60 |
East China | 345,482,036.95 | 233,630,691.51 | 317,198,978.31 | 208,643,288.47 |
Northeast China | 67,722,156.14 | 49,526,747.64 | 62,805,907.07 | 46,702,971.79 |
In total | 3,737,897,021.63 | 3,352,581,703.86 | 3,257,865,991.64 | 3,035,952,555.86 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Urban Maintenance and Construction Tax | 2,548,143.53 | 2,461,913.37 |
Educational Surtax | 1,122,628.97 | 1,087,154.91 |
Local Educational Surtax | 748,419.33 | 724,769.95 |
House Property tax | 2,283,241.92 | 4,677,651.66 |
Land Use Tax | 697,236.79 | 1,313,154.94 |
Vehicle and Vessel Use Tax | 18,449.10 | 20,390.50 |
Stamp Tax | 1,184,227.85 | 1,223,926.02 |
Resources Tax | 4,790.20 | 24,644.00 |
Other Taxes and Fees | 43,973.68 | 66,958.29 |
In total | 8,651,111.37 | 11,600,563.64 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Employee Compensation | 30,679,537.79 | 26,278,771.73 |
Advertising Expenses | 50,943.40 | 11,032,656.69 |
Repair Costs | 196,031.21 | 268,787.39 |
Packing Expenses | 377,669.68 | 521,273.55 |
Transportation Fees | 15,690,237.64 | 9,731,907.07 |
Terminal Charges | 733,797.56 | 814,392.75 |
Water and Electricity Fees | 537,197.29 | 617,732.44 |
Vehicle Fees | 288,457.98 | 510,991.71 |
Warehousing Fees | 15,404,986.89 | 10,118,318.32 |
Test and Detection Fees | 92,866.07 | 133,936.52 |
Commercial Insurance Expenses | 9,305.33 | 10,435.78 |
Sales Promotion Expenses | 15,146,952.23 | 12,619,447.62 |
Business Entertainment Expenses | 12,124.00 | 90,324.45 |
Labor Protection Fees | 2,041,919.09 | 2,501,255.24 |
Commodity Wastage | 2,607,074.83 | 3,324,432.17 |
Sample and Product Losses | 10,799,781.87 | 6,424,598.55 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Sales and Service Fees | 1,189,380.88 | |
Impairment Costs | 8,297,585.79 | 8,329,518.71 |
Travel Expenses | 32,550.49 | 3,584,743.56 |
Operation Expenses | 19,872.00 | 51,371.72 |
Other Expenses | 3,622,228.00 | 3,076,861.42 |
In total | 106,641,119.14 | 101,231,138.27 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Employee Compensation | 39,515,162.11 | 43,327,621.22 |
Workers Insurance Expenses | 191,201.44 | 401,623.47 |
Company Expenses | 4,048,286.09 | 4,790,871.80 |
Commercial Insurance Expenses | 249,530.18 | 335,106.88 |
Vehicle Fees | 1,171,579.21 | 1,842,062.94 |
Impairment Costs | 8,780,269.70 | 7,123,583.86 |
Repair Costs | 315,031.15 | 922,490.45 |
Taxes in Expenses | 124,708.21 | |
Amortization of Assets | 7,640,013.04 | 10,030,497.46 |
Material Consumption | 178,299.87 | 345,488.89 |
Fees of Employing Agent | 6,913,392.38 | 3,525,514.48 |
Information Network Fees | 546,524.14 | 504,859.82 |
Labor Protection Fees | 250,202.03 | 91,851.64 |
Environmental Protection Fees | 202,183.63 | 275,063.52 |
Security Protection Fees | 362,895.58 | 397,403.41 |
Conference Expenses | 1,150,999.94 | 2,089,180.89 |
Business Entertainment Expenses | 530,321.82 | 831,498.05 |
Travel Expenses | 168,024.21 | 717,873.17 |
Office Expenses | 379,182.90 | 448,964.24 |
Lease Fees | 2,300,085.56 | 1,544,749.18 |
Water and Electricity Fees | 74,558.04 | 97,764.85 |
Other Expenses | 3,064,543.27 | 1,529,449.94 |
In total | 78,032,286.29 | 81,298,228.37 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
R&D Expenses | 2,803,717.02 | 531,066.00 |
In total | 2,803,717.02 | 531,066.00 |
40.Financial Expenses
Items | Amounts in the Current Period | Amounts in the Prior Period |
Interest Expenses | 16,975,042.06 | 22,981,293.07 |
Less: Interest Income | 5,373,488.21 | 4,120,628.58 |
Exchange Profit and Loss | 10,647,837.51 | -707,452.18 |
Service Charges | 561,292.42 | 321,276.88 |
In total | 22,810,683.78 | 18,474,489.19 |
Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss in the Current Period |
Government Subsidy Related to Daily Corporate Activities | 4,891,100.00 | 9,871,098.22 | 452,231.23 |
Return of Service Charges of Withholding Individual Income Tax | 155,848.84 | 155,568.84 | |
In total | 5,046,948.84 | 9,871,098.22 | 607,800.07 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Long-term equity investment income accounted with equity method | 6,947,778.68 | 2,824,933.21 |
Investment income generated from disposing long-term equity investment | ||
Investment income from wealth management products | 7,828,824.60 | 6,512,884.43 |
Investment income of financial assets that are measured as per fair value and for which the changes are included in the current profit and loss during the holding period | —— | -158,515.55 |
Investment income of disposing financial assets that are measured as per fair value and for which the changes are included in the current profit and loss | —— | —— |
Investment income obtained during the holding of transactional financial assets | 1,919,322.71 | |
Investment income of disposing financial products | ||
In total | 16,695,925.99 | 9,179,302.09 |
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 | -76,876,667.25 | 26,158,281.22 |
Including: income with changes in fair value generated by derivative financial instruments | -76,876,667.25 | 26,158,281.22 |
In total | -76,876,667.25 | 26,158,281.22 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Loss on Bad Debts | -197,695.56 | |
Loss on Inventory Price Drop | ||
In total | -197,695.56 |
Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
Gains or losses on disposal of fixed assets | 11,997,518.40 | ||
Gains or losses on disposal of intangible assets | |||
In total | 11,997,518.40 |
Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
Claim Compensation Income | 45,892.72 | 12,256.67 | 45,892.72 |
Relocation Compensation | 127,712.82 | 88,793.40 | 127,712.82 |
Other Gains | 417,842.66 | 1,576,474.10 | 417,842.66 |
Donation Gains | 10,000.00 | 10,000.00 | |
Government Subsidy Irrelevant to Daily Operation Activities | 87,991.62 | 38,919.42 | 87,991.62 |
In total | 689,439.82 | 1,716,443.59 | 689,439.82 |
Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
Assets Damage and Abandonment Loss | 125,166.92 | 9,041.80 | 125,166.92 |
Including: Fix Assests | 125,166.92 | 9,041.80 | 125,166.92 |
External Donation Expenses | 43,940.54 | 4,000.00 | 43,940.54 |
Amercement Outlay | 500.00 | 500.00 | |
Compensation and Default Money | 1,015,309.53 | 1,015,309.53 | |
Relocation Loss | 117,085.86 | 85,950.31 | 117,085.86 |
Others | 116,668.92 | 723,426.51 | 116,668.92 |
In total | 1,418,671.77 | 822,418.62 | 1,418,671.77 |
Amounts in the Current Period | Amounts in the Prior Period | Amounts in the Current Period |
Income Tax Expenses of the Current Period | 40,543,901.19 | 9,220,010.91 |
Deferred Income Tax Expenses | -16,082,069.33 | 12,901,765.21 |
Others | 24,461,831.86 | 22,121,776.12 |
Items | Amounts in the Prior Period |
Total Profits | 119,769,867.60 |
Income tax expenses calculated by statutory/applicable tax rate | 21,377,859.59 |
Effect of subsidiary corporations being applicable to different tax rates | -163,343.19 |
Items | Amounts in the Prior Period |
Adjustment on effect of income tax in the prior period | |
Effect of Non-taxable Incomes | -818,108.22 |
Effect of Non-deductible cost, expense and loss | |
Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior period | |
Effect of deductible temporary difference or deductible loss on unconfirmed deferred income tax in the current period | 4,068,635.64 |
Effect of income tax deductions | |
Effect of R & D deduction | |
Effect of disability wage deductions | |
Effect of business combinations not under common control | |
Tax rate adjustments cause changes in deferred income tax assets / liabilities at the beginning of the year | |
Others | -3,211.96 |
Income Tax Expenses | 24,461,831.86 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Intercourse Funds of Related Parties | 21,078,496.81 | 569,937.02 |
Intercourse Funds of Other Units | 463,379,309.67 | 342,920,924.84 |
Non-operating Income | 818,480.79 | 1,475,758.10 |
Others | 3,357,922.87 | 3,137,920.94 |
In total | 488,634,210.14 | 348,104,540.90 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
Intercourse Funds of Related Parties | 1,285,132.00 | 1,045,623.70 |
Intercourse Funds of Other Units | 385,951,971.50 | 297,279,937.27 |
Payment for Administration Expenses | 11,735,512.89 | 13,042,670.47 |
Payment for Operating Expenses | 28,815,251.90 | 22,095,807.54 |
Non-operating Expenses | 1,089,682.49 | 558,429.32 |
Petty Cash Paid | 302,932.58 | 499,480.07 |
Bank Charges | 563,721.88 | 321,755.60 |
Others | 5,045,373.28 | 4,920,214.42 |
Items | Amounts in the Current Period | Amounts in the Prior Period |
In total | 434,789,578.52 | 339,763,918.39 |
Supplementary Materials | Amounts in the Current Period | Amounts in the Prior Period |
1. Adjusting net accounting profit to operating cash flow | ||
Net Profit | 95,308,035.74 | 65,244,252.00 |
Add: Assets Impairment Reserves | 197,695.56 | |
Credit impairment loss | ||
Fixed Assets Depreciation, Oil-and-gas Assets Depreciation and Productive Biological Assets Depreciation | 48,728,162.99 | 46,664,713.52 |
Amortization of Intangible Assets | 7,396,651.55 | 4,679,361.81 |
Amortization of Long-term Deferred Expenses | 468,031.78 | 11,510,733.39 |
Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets (Fill in profit with symbol “-”) | -11,997,518.40 | |
Losses on Retirement of Fixed Assets (Fill in profit with symbol “-”) | 125,166.92 | 9,041.80 |
Losses on Changes in Fair Value (Fill in profit with symbol “-”) | 76,876,667.25 | -26,158,281.22 |
Financial Expenses (Fill in profit with symbol “-”) | 27,622,879.57 | 22,273,840.89 |
Investment Losses (Fill in profit with symbol “-”) | -16,695,925.99 | -9,179,302.09 |
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “-”) | -10,232,677.86 | -15,242,389.19 |
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “-”) | -7,136,904.20 | 11,314,155.51 |
Decrease in Inventory (Fill in increase with symbol “-”) | 504,378,180.81 | 127,246,418.19 |
Decrease in Items of Operating Receivables (Fill in increase with symbol “-”) | -408,709,949.07 | -39,843,479.45 |
Increase in Items of Operating Receivables (Fill in decrease with symbol “-”) | -131,032,498.73 | 49,764,970.19 |
Others | -15,891,918.30 | |
Net Cash Flows from Operating Activities | 187,095,820.76 | 220,592,294.21 |
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 | 570,017,788.15 | 625,128,759.14 |
Less: cash balance at beginning of period | 555,097,777.21 | 867,870,016.78 |
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 | 14,920,010.94 | -242,741,257.64 |
Items | Balance at End of Period | Balance at Beginning of Period |
One Cash | 570,017,788.15 | 555,097,777.21 |
Items | Balance at End of Period | Balance at Beginning of Period |
Including: cash in stock | 39,372.21 | 27,780.31 |
Bank deposit available for payment at any time | 499,567,205.01 | 553,067,993.87 |
Other currency funds available for payment at any time | 70,411,210.93 | 2,002,003.03 |
Two Cash Equivalents | ||
Including: bond investment maturing within three months | ||
Three Balance of Cash and Cash Equivalents at End of Period | 570,017,788.15 | 555,097,777.21 |
Including: restricted cash and cash equivalents used by parent company or intra-group affiliates |
Items | Book Value at End of Period | Reasons being Restricted |
Inventory | 4,824,035.45 | Loan Mortgage |
Investment Real Estate | 5,429,187.89 | Loan Mortgage |
Fixed Assets | 2,193,847.70 | Loan Mortgage |
In total | 12,447,071.04 | —— |
Items | Balance of Foreign Currency at End of Period | Exchange Rate Convert | Balance of Converting to RMB at End of Period |
Currency Funds | 1,944,653.62 | 7.08 | 13,768,147.63 |
Including: US Dollars | 1,944,653.62 | 7.08 | 13,768,147.63 |
Accounts in advance | 37,424.00 | 7.08 | 264,943.21 |
Including: US Dollars | 37,424.00 | 7.08 | 264,943.21 |
Short-term Borrowings | 1,686,100.00 | 7.08 | 11,936,744.95 |
Including: US Dollars | 1,686,100.00 | 7.08 | 11,936,744.95 |
Other payable | 41,964.06 | 7.08 | 297,084.56 |
Including: US Dollars | 41,964.06 | 7.08 | 297,084.56 |
Type | Amount | Presentation item | Amount recorded in profit and loss |
Enterprise infrastructure from committee of Lingang industrial district in Tianjin during construction stage | 638,752.08 | Other income | 638,752.08 |
Technology improvement, park contracture fund and scientific expense from Binhai district of | 207,048.10 | Other income | 207,048.10 |
Type | Amount | Presentation item | Amount recorded in profit and loss |
Tianjin Steady post refund income | |||
Subsidy from Linan bureau of commerce | 131,200.00 | Other income | 131,200.00 |
Grants for patents | 2,000.00 | Other income | 2,000.00 |
VAT refund income | 3,345,073.38 | Other income | 3,345,073.38 |
Tech service fee of taxation controlling system | 280.00 | Other income | 280.00 |
Subsidy for boiler modification | 200,000.00 | Other income | 200,000.00 |
Grants for commercial harbor construction fee from Tianjin bureau of commerce | 114,147.00 | Other income | 114,147.00 |
Specific grant for smart manufacture from committee of free trade zone in Tianjin harbor | 130,000.00 | Other income | 130,000.00 |
Grants for job stabilization from Tianjin bureau of social security | 121,209.44 | Other income | 121,209.44 |
Information supervising fee of food & oil market in Binhai district in Tianjin | 1,390.00 | Other income | 1,390.00 |
Total | 4,891,100.00 | 4,891,100.00 |
Name of Subsidiary | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Mode of Acquisition | |
Direct | Indirect | |||||
Beijing Jingliang Food Co., Ltd. | Beijing | Beijing | Investment Company | 100 | Merger under the same control | |
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | Tianjin | Tianjin | Agricultural Product and By Product Processing | 70 | Merger under the same control | |
Beijing Jingliang Oil and Fat Co., Ltd. | Beijing | Beijing | Grain and oil trade | 100 | Merger under the same control | |
Jingliang (Hebei) Oil Industry Co., Ltd. | Hebei | Hebei | Farm and Sideline Food Processing | 51 | Merger under the same control | |
Beijing Guchuan Edible Oil Co., Ltd. | Beijing | Beijing | Grain and oil trade | 100 | Merger under the same control | |
Beijing Eisen-Lubao Oil Co., Ltd. | Beijing | Beijing | Farm and Sideline Food Processing | 100 | Merger under the same control | |
Beijing Tianweikang Oil Distribution Center Co., Ltd. | Beijing | Beijing | Warehousing | 100 | Merger under the same control | |
Beijing Guchuan Bread Food Co., Ltd. | Beijing | Beijing | Food Processing | 100 | Merger under the same control | |
Zhejiang Xiao Wang Zi Food Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 94.8865 | Combination not under same control | |
Hangzhou Lin'an Xiaotianshi Food Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 94.8865 | Combination not under same control | |
Liaoning Xiao Wang Zi Food Co., Ltd. | Liaoning | Liaoning | Food Processing | 94.8865 | Combination not under same control | |
Linqing Xiao Wang Zi Food Co., Ltd. | Linqing | Linqing | Food Processing | 94.8865 | Combination not under same control | |
Lin'an Chunmanyuan Agricultural | Hangzhou | Hangzhou | Food Processing | 94.8865 | Combination not |
Name of Subsidiary | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Mode of Acquisition | |
Direct | Indirect | |||||
Development Co., Ltd. | under same control | |||||
Jingliang (Singapore) International Trade Co., Ltd. | Singapore | Singapore | Grain trade | 100 | Establishment by investment | |
Jingliang Rural Complex Construction and Operations (Xinyi) Co., Ltd. | Xinyi | Xinyi | Land remediation | 51 | Establishment by investment | |
Jingliang (Caofeidian) Agricultural Development Co., Ltd. | Tangshan | Tangshan | Plantation | 51 | Establishment by investment | |
Beijing jingliang guyuan oil and grease co. LTD | Beijing | Beijing | Business services | 100 | Establishment by investment |
Name of Subsidiary | Shareholding 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 |
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 30 | 9,102,000.00 | 256,302,159.58 | |
Zhejiang Xiao Wang Zi Food Co., Ltd. | 5.1135 | 12,405,282.14 | 36,847,296.93 |
Name of Subsidiary | Ending Balance | |||||
Current Assets | Non-current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total Liabilities | |
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 868,916,266.47 | 802,914,922.70 | 1,671,831,189.17 | 764,721,524.34 | 52,771,579.26 | 817,493,103.60 |
Zhejiang Xiao Wang Zi Food Co., Ltd. | 393,685,059.04 | 525,358,320.39 | 919,043,379.4 3 | 111,560,247.80 | 22,399,478.73 | 133,959,726.53 |
Name of Subsidiary | Beginning balance | |||||
Current Assets | Non-Current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total Liabilities | |
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 649,743,907.75 | 818,631,677.47 | 1,468,375,585.22 | 587,965,574.01 | 56,409,479.27 | 644,375,053.28 |
Zhejiang Xiao Wang Zi Food Co., Ltd. | 361,264,401.11 | 509,389,952.91 | 870,654,354.02 | 122,737,979.36 | 22,409,424.73 | 145,147,404.09 |
Name of Subsidiary | Amount This Year | |||
Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 1,588,794,595.18 | 30,337,553.63 | 30,337,553.63 | -226,038,764.17 |
Zhejiang Xiao Wang Zi Food Co., Ltd. | 414,085,161.70 | 59,576,702.97 | 59,576,702.97 | 68,355,787.51 |
Name of Subsidiary | Last Term Amount |
Operating Income | Net Profit | Total Comprehensive Income | Cash Flow from Operating Activities | |
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 1,463,348,174.86 | -17,419,056.07 | -17,419,056.07 | 47,286,961.09 |
Zhejiang Xiao Wang Zi Food Co., Ltd. | 404,961,227.15 | 65,702,534.89 | 65,702,534.89 | 61,504,068.82 |
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 | |||||
Beijing Zhengda Feed Co., Ltd. | Beijing | Niulan Mountain, Shunyi District, Beijing | Manufacturer | 50.00 | Equity method | |
SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | Tianjin | No. 1, Lingang Economic Zone, Binhai New Area of Tianjin | Transportation and warehousing | 30.00 | Equity method |
Item | Beijing Zhengda Feed Co., Ltd. | Beijing Zhengda Feed Co., Ltd. |
Ending Balance/Current Amount | Beginning Balance/Last Term Amount | |
Current assets | 39,259,263.44 | 38,402,384.29 |
Including: cash and cash equivalents | 2,649,918.78 | 2,851,108.24 |
Non-current assets | 179,516,327.41 | 166,838,127.64 |
Total assets | 218,775,590.85 | 205,240,511.93 |
Current liabilities | 65,905,097.73 | 65,443,549.59 |
Non-current liabilities | ||
Total liabilities | 65,905,097.73 | 65,443,549.59 |
Minority shareholder's equity | ||
Shareholders' equity attributable to the parent company | 152,870,493.12 | 139,796,962.34 |
Share of net assets based on shareholding ratio | 76,435,246.56 | 69,898,481.17 |
Adjustments | 2,918,088.13 | 2,918,088.13 |
-- Goodwill | ||
-- Unrealized profits from internal transactions | ||
-- Other | 2,918,088.13 | 2,918,088.13 |
Book value of equity investment in joint ventures | 79,353,334.69 | 72,816,569.30 |
Fair value of equity investment in joint ventures with open offers | ||
Operating income | 153,872,389.59 | 128,269.508.30 |
Financial costs | -1,308,088.38 | -1,228,641.61 |
Income tax expense | 4,456,502.35 | 1,752,379.24 |
Item | Beijing Zhengda Feed Co., Ltd. | Beijing Zhengda Feed Co., Ltd. |
Ending Balance/Current Amount | Beginning Balance/Last Term Amount | |
Net profit | 13,073,530.78 | 5,292,107.72 |
Net profit from discontinued operations | ||
Other comprehensive income | ||
Total comprehensive income | 13,073,530.78 | 5,292,107.72 |
Dividends received from joint ventures in the current period |
Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | |
Current assets | 81,393,707.22 | 97,971,129.85 |
Non-current assets | 387,789,026.67 | 384,616,624.25 |
Total assets | 469,182,733.89 | 482,587,754.10 |
Current liabilities | 2,920,457.21 | 10,362,807.69 |
Non-current liabilities | 72,770,729.78 | 80,103,443.80 |
Total liabilities | 75,691,186.99 | 90,466,251.49 |
Minority shareholder's equity | ||
Shareholders' equity attributable to the parent company | 393,491,546.90 | 392,121,502.61 |
Share of net assets based on shareholding ratio | 118,047,464.07 | 117,636,450.78 |
Adjustments | ||
-- Goodwill | ||
-- Unrealized profits from internal transactions | ||
-- Other | ||
Book value of equity investment in affiliates | 118,047,464.07 | 117,636,450.78 |
Fair value of equity investment in affiliates with open offers | ||
Operating income | 6,383,017.42 | 2,896,792.95 |
Net profit | 1,370,044.29 | 654,547.84 |
Net profit from discontinued operations | ||
Other comprehensive income | ||
Total comprehensive income | 1,370,044.29 | 654,547.84 |
Dividends received from affiliates in the current period |
of risk variables on current profits and losses or shareholders' equity. Since a risk variable seldom changes by itself and thecorrelation between variables will have a significant impact on the final amount of change caused by a risk variable, the followingcontent is based on the assumption that each variable changes independently.
(1) Risk Management Objectives and Policies
The Company's engagement in risk management is aimed at striking a proper balance between risk and profit, minimizing thenegative impact of risk on the Company's operating performance and maximizing the interests of shareholders and other equityinvestors. In view of the above objectives of risk management, the Company's basic strategy for risk management is to identify andanalyze all risks faced by the Company, establish the appropriate bottom line for risk tolerance and conduct risk management, carryout timely and reliable supervision of risks and thus control the risks within a limited range.
1. Market Risks
(1) Foreign Exchange Risk
Foreign exchange risk refers to the risk of loss caused by exchange rate movements. The Company's foreign exchange risk ismainly related to US dollar. Apart from the Company's several subsidiaries that settle their purchasing and selling businesses in USdollar, the Company's other main business activities are settled in RMB. As of June 30th, 2020, the assets and liabilities of theCompany are settled in RMB, except that the assets or liabilities mentioned in the following table are settled in US dollar. Foreignexchange risks arising from assets and liabilities settled in such foreign currencies may have an impact on the Company's operatingperformance.
Item | Ending Balance | Opening Balance |
Cash and cash equivalents | 13,768,147.63 | 6,768,083.00 |
Accounts receivable | 1,590,894.85 | |
Accounts payable | 134,399.21 | |
Prepaid accounts | 264,943.21 | |
Other receivable | 297,084.56 | |
Short-term loans | 11,936,744.95 |
Item | Change in Exchange Rate | Current period | |
Influence on Profits | Influence on Shareholders' Equity | ||
All foreign currencies | Appreciate by 5% against RMB | 89,963.07 | 89,963.07 |
All foreign currencies | Depreciate by 5% against RMB | -89,963.07 | -89,963.07 |
Item | Ending Balance |
Net Book Value | Original Book Value | Within One Year | 1 To 2 Years | 2 To 5 Years | Above Five Years | |
Monetary funds | 570,017,788.15 | 570,017,788.15 | 570,017,788.15 | |||
Transactional financial assets | 153,300,000.00 | 153,300,000.00 | 153,300,000.00 | |||
Derivative financial assets | 120,761,236.80 | 120,761,236.80 | 120,761,236.80 | |||
Accounts receivables | 55,374,522.52 | 56,886,390.48 | 55,429,580.58 | 996,633.00 | 282,885.50 | 177,291.40 |
Other receivables | 19,032,159.09 | 19,270,058.92 | 16,033,296.42 | 2,141,517.73 | 1,019,244.78 | 75,999.99 |
Investment in other equity instruments | 20,000,000.00 | 30,500,000.00 | 30,500,000.00 | |||
Subtotal | 938,485,706.56 | 950,735,474.35 | 946,041,901.95 | 3,138,150.73 | 1,302,130.28 | 253,291.39 |
Short-term loans | 1,587,070,726.95 | 1,587,070,726.95 | 1,587,070,726.95 | |||
Accounts payable | 130,577,918.81 | 130,577,918.81 | 130,577,918.81 | |||
Other payables | 140,262,576.19 | 140,262,576.19 | 140,262,576.19 | |||
Subtotal | 1,857,911,221.95 | 1,857,911,221.95 | 1,857,911,221.95 |
Item | Beginning balance | ||||||
Net Book Value | Original Book Value | Within One Year | 1 to 2 Years | 2 to 5 Years | Above Five Years | ||
Monetary funds | 557,168,512.39 | 557,168,512.39 | 557,168,512.39 | ||||
Transactional financial assets | 161,300,000.00 | 161,300,000.00 | 161,300,000.00 | ||||
Derivative financial assets | 88,792,254.00 | 88,792,254.00 | 88,792,254.00 | ||||
Accounts receivables | 80,743,986.81 | 82,255,854.77 | 81,502,115.68 | 65,951.22 | 510,496.47 | 177,291.40 | |
Other receivables | 19,220,097.34 | 19,457,997.17 | 12,853,916.80 | 936,934.75 | 1,662,306.72 | 77,400.00 | |
Available-for-sale financial assets | 20,000,000.00 | 30,500,000.00 | 30,500,000.00 | ||||
Subtotal | 927,224,850.54 | 939,474,618.33 | 932,116,798.87 | 1,002,885.97 | 2,172,803.19 | 254,691.40 | |
Short-term loans | 1,329,238,701.60 | 1,329,238,701.60 | 1,329,238,701.60 | ||||
Notes payable and accounts payable | 130,568,413.43 | 130,568,413.43 | 130,568,413.43 | ||||
Other payables | 96,171,396.23 | 96,171,396.23 | 96,171,396.23 | ||||
Subtotal | 1,555,978,511.26 | 1,555,978,511.26 | 1,555,978,511.26 |
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 | |
I. Continuous fair value measurement | ||||
(一)Transactional financial assets | 274,061,236.80 | 274,061,236.80 | ||
(I) Financial assets that are measured at fair value and whose changes are included in the current profits and losses | 120,761,236.80 | 120,761,236.80 | ||
(1) Investment in debt Instruments | ||||
(2) Investment in equity instruments | ||||
(3)Derivative financial assets | 120,761,236.80 | 120,761,236.80 | ||
(II) Financial assets designated as fair value through profit or loss | 153,300,000.00 | 153,300,000.00 | ||
(1) Investment in debt Instruments | ||||
(2) Investment in equity instruments | ||||
(3) Others | 153,300,000.00 | 153,300,000.00 | ||
( 二 ) Other investments in equity instruments | 20,000,000.00 | 20,000,000.00 | ||
Total assets continuously measured at fair value | 294,061,236.80 | 294,061,236.80 |
Name of Parent Company | Registered Place | Nature of Business | Registered Capital (ten thousand Yuan) | Proportion of Shares Held by Parent Company in the Company (%) | Proportion of Voting Power Held by Parent Company in the Company (%) |
Beijing Grain Group Co. Ltd. | Beijing | Investment Management | 90,000.00 | 39.68 | 39.68 |
Name of Joint Venture or Affiliate | Relationship with the Company |
Beijing Zhengda Feed Co., Ltd. | Joint venture |
SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | Affiliate |
Name of Other Related Party | Relationship with the Company |
Beijing Dahongmen Grain Purchasing & Storage Warehouse | Controlled by the ultimate controlling party |
Beijing Daxing National Grain Purchasing & Storage Warehouse | Controlled by the ultimate controlling party |
Beijing Southeast Suburb Grain Warehouse | Controlled by the ultimate controlling party |
Name of Other Related Party | Relationship with the Company |
Beijing Guchuan Fuxing Food Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Guchuan Rice Industry Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Guchuan Food Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Hongyuanli Rations Supply Station | Controlled by the ultimate controlling party |
Beijing Jingliang Dacang Grain and Oil Trade Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Dagu Grain and Oil Trade Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang E-commerce Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Dongfang Grain and Oil Trade Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Gurun Trade Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Biotechnology Industry Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Logistics Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Yunhe Grain and Oil Trade Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingliang Property Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Jingmen Liangshi State-owned Asset Management Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Juncheng Nuoyuan Grain and Oil Purchase and Sale Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Lanfeng Vegetable Distribution Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Grain Group Finance Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Grain Group Co., LTd | Controlled by the ultimate controlling party |
Beijing Longde Business Management Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Nanjiao Agricultural Production Management Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Niannian Haohe Rations Supply Station | Controlled by the ultimate controlling party |
Beijing Sanyuan Petroleum Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Sanyuan Seed Technology Co., Ltd. Feed Branch | Controlled by the ultimate controlling party |
Beijing Dahongmen Grain Purchasing & Storage Warehouse Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Dahongmen Oil Plant | Controlled by the ultimate controlling party |
Beijing Haidian West Suburb Grain and Oil Supply Station | Controlled by the ultimate controlling party |
Beijing Jingcheng Auto Driving Technical School | Controlled by the ultimate controlling party |
Beijing Liangguan Grain and Oil Supply Station | Controlled by the ultimate controlling party |
Beijing Institute of Food Science | Controlled by the ultimate controlling party |
Beijing Longqing Xiadu Rations Supply Station | Controlled by the ultimate controlling party |
Beijing Maliandao Grain and Oil Special Supply Station | Controlled by the ultimate controlling party |
Beijing South Suburb Grain Purchasing & Storage Warehouse | Controlled by the ultimate controlling party |
Beijing Nanyuan Vegetable Oil Plant | Controlled by the ultimate controlling party |
Beijing Pinggu Grain and Oil Industry and Trade Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Food Supply Department No. 34 Supply Section | Controlled by the ultimate controlling party |
Beijing Shunyi Grain and Oil Co., Ltd. | Controlled by the ultimate controlling party |
Name of Other Related Party | Relationship with the Company |
Beijing Tiangu Grain and Oil Trade Co., Ltd. | Controlled by the ultimate controlling party |
Supply Station of Beijing Tongzhou Grain and Oil Trading Company | Controlled by the ultimate controlling party |
Beijing Nouthwest Suburb Grain Warehouse | Controlled by the ultimate controlling party |
Beijing Northwest Suburb Grain Purchasing & Storage Warehouse | Controlled by the ultimate controlling party |
Beijing Sesame Oil Plant | Controlled by the ultimate controlling party |
Beijing Yonghe Xincheng Grain and Oil Supply Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Assistant Rations Supply Station | Controlled by the ultimate controlling party |
Beijing Army Grain and Oil Supply Station | Controlled by the ultimate controlling party |
Beijing Shounong Animal Husbandry Development Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Xingshishang Trade Center | Controlled by the ultimate controlling party |
Beijing Yuma Motor Vehicle Training Ground Co., Ltd. | Controlled by the ultimate controlling party |
Beijing Yuanjishun Rations Supply Station | Controlled by the ultimate controlling party |
Beijing Zhibohui Architectural Design Institute Co., Ltd. | Controlled by the ultimate controlling party |
Hebei Shounong Modern Agricultural Technology Co., Ltd. | Controlled by the ultimate controlling party |
Jingliang (Tianjin) E-commerce Co., Ltd. | Controlled by the ultimate controlling party |
Jingliang (Tianjin) Trade Development Co., Ltd. | Controlled by the ultimate controlling party |
Jingliang Huayuan (Beijing) Agricultural High-tech Co., Ltd. | Controlled by the ultimate controlling party |
Shandong Fukuan Bioengineering Co., Ltd. | Controlled by the ultimate controlling party |
China Integrated Research Center for Meat Products | Controlled by the ultimate controlling party |
Related Party | Related-party Transaction | Current Amount | Last Term Amount |
Beijing Beishui Food Industry Limited | Purchase of goods | 2,664.00 | |
Beijing Er Shang Dahongmen Meat Food Limited | Purchase of goods | 260,599.00 | 23,465.91 |
Beijing Er Shang Jinghua Tea Limited | Purchase of goods | 20,128.00 | |
Beijing Er Shang Longhe Food Limited | Purchase of goods | 54.00 | |
Beijing Er Shang Moqi Zhonghong Food Linited | Purchase of goods | 13,034.40 | |
Beijing Er Shang Wangzhihe Food Limited | Purchase of goods | 177,803.60 | |
Beijing Guchuan Rice Industry Co., Ltd. | Purchase of goods | 134,268.00 | 1,080,320.62 |
Beijing Guchuan Food Co., Ltd. | Purchase of goods | 7,662,781.80 | 6,712,357.05 |
Beijing Jingliang E-commerce Co., Ltd. | Purchase of goods | 5,000.00 | |
Beijing Jingliang Dongfang Grain and Oil Trade Co., Ltd. | Purchase of goods | 266,693.50 | 62,306.04 |
Beijing Liubiju Food Limited | Purchase of goods | 26,809.40 | |
Beijing Sanyuan Food Co. Ltd | Purchase of goods | 1,459,486.60 | 83,449.82 |
Beijing WuhuanShuntong Supply Chain | Purchase of goods | 11,895.00 |
Related Party | Related-party Transaction | Current Amount | Last Term Amount |
management Limited | |||
Beijing Yueshengzhai Halal Food Limited | Purchase of goods | 520,850.50 | 10,116.37 |
Shandong Fukuan Bioengineering Co., Ltd. | Purchase of goods | 248,829.00 | 564,670.00 |
In total | 10,810,896.80 | 8,536,685.81 |
Related Party | Related-party Transaction | Current Amount | Last Term Amount |
Beijing Baijiayi Food Limited | Sale of goods | 131,284.00 | 233,920.76 |
Beijing Beifang Jingtang Wine Sale Limited | Sale of goods | 27,364.00 | 47,762.71 |
Beijing Damofang Flour Limited | Sale of goods | 2,075.00 | 2,244.51 |
Beijing Daxing State Grain Reserves | Sale of goods | 18,927.28 | |
Beijing Dongcheng Sugar Tobacco and Alcohol Co., Ltd. | Sale of goods | 15,207.54 | |
Beijing Dongfeng International Sports Culture Co., Ltd. | Sale of goods | 1,755.00 | |
Beijing Er Shang Dahongmen Poultry Food Limited | Sale of goods | 2,800.00 | |
Beijing Er Shang Fuyue Food Limited | Sale of goods | 7,460.00 | |
Beijing Er Shang Gongyifu Food Limited | Sale of goods | 17,256.88 | 56,719.07 |
Beijing Er Shang Longhe Food Limited | Sale of goods | 15,270.00 | 9,185.51 |
Beijing Er Shang Wangzhihe Food Limited | Sale of goods | 25,766,349.73 | |
Beijing Guchuan Rice Industry Co., Ltd. | Sale of goods | 429,869.06 | 380,345.69 |
Beijing Guchuan Food Co., Ltd. | Sale of goods | 1,089,789.39 | 1,120,065.36 |
Beijing Hongyuanli Army Grain and Oil Supply Station | Sale of goods | 377,490.82 | 290,155.12 |
Beijing Jingliang E-commerce Co., Ltd. | Sale of goods | 333,956.73 | 556,667.87 |
Beijing Jingliang Dongfang Grain and Oil Trade Co., Ltd. | Sale of goods | 1,855,631.79 | 3,098,779.64 |
Beijing Jingliang Biotechnology Industry Co. , Ltd. | Sale of goods | 8,886.11 | |
Beijing Jingliang Taihe Real Estate Limited | Sale of goods | 4,980.00 | 4,489.04 |
Beijing Jingliang Taixing Real Estate Limited | Sale of goods | 2,075.00 | |
Beijing Jingliang Taiyu Real Estate Limited | Sale of goods | 3,320.00 | 2,244.51 |
Beijing Jingliang Logistics Co., Ltd. | Sale of goods | 226,577.57 | 4,628.78 |
Beijing Jingliang Xinda Property Management Co. , Ltd. | Sale of goods | 11,205.00 | 12,120.37 |
Beijing Jingliang Xingye Asset Management Co. , Ltd. | Sale of goods | 7,885.00 | |
Beijing Jinigliang Yunhe Grain and Oil Trade Co. , Ltd | Sale of goods | 122,729.05 | 98,066.30 |
Beijing Jingliang Property Co., Ltd | Sale of goods | 174,056.74 | 135,032.85 |
Beijing Jingmen Liangshi state-owned Assets Management Co., Ltd. | Sale of goods | 363,200.00 | |
Bejing Juncheng Nuoyuan Grain and Oil Sale Limited | Sale of goods | 306,990.83 | 1,138,782.32 |
Beijing Lanfeng Vegetable Distribution Co., Ltd. | Sale of goods | 3,380.00 | |
Beijing Liubiju Food Co., Ltd. | Sale of goods | 2,750.00 | 2,727.27 |
Related Party | Related-party Transaction | Current Amount | Last Term Amount |
Beijing Longde Business Management Co. , Ltd. | Sale of goods | 77,727.27 | |
Beijing Maisui Hotel Management Co., Ltd. | Sale of goods | 31,955.00 | 31,872.10 |
Beijing Nanjiao Agricultural Production Management Co., Ltd.. | Sale of goods | 64,726.61 | |
Beijing Automobile Service Co., Ltd. | Sale of goods | 18,600.00 | |
Beijing Sanyuan Taxi Co., Ltd. | Sale of goods | 44,400.00 | |
Beijing Sanyuan Petroleum Co., Ltd. | Sale of goods | 286.24 | 569.88 |
Beijing Sanyuan Food Co., Ltd. | Sale of goods | 527,348.00 | 86,318.19 |
Beijing Sanyuan Seed Technology Co., Ltd. Feed Branch | Sale of goods | 14,185,704.49 | 14,515,875.28 |
Beijing Dahongmen Grain Storage Co., Ltd. | Sale of goods | 15,355.00 | |
Beijing Desheng Hotel | Sale of goods | 102,900.00 | |
Beijing Dongjiao Farm Co., Ltd. | Sale of goods | 13,585.00 | |
Beijing Haidian District Xijiao Grain and Oil Supply Station Co., Ltd. | Sale of goods | 7,327,448.82 | 5,797,596.22 |
Beijing Hongbaoyuan Trade Co., Ltd. | Sale of goods | 1,872.00 | |
Beijing Huacheng Trade Co., Ltd. | Sale of goods | 2,502.00 | 5,863.63 |
Beijing Jingcheng Automobile Driving Technical School | Sale of goods | 13,200.00 | |
Beijing Jingliang Shengyuan Grain and Oil Sales Co. , Ltd. | Sale of goods | 72,318.18 | |
Beijing Academy of Grain Science | Sale of goods | 6,771.72 | |
Beijing Longqing Xiadu Military Grains Supply Limited | Sale of goods | 379,651.38 | 363,175.15 |
Beijing Maliandao Grain and Oil Special Supply Station | Sale of goods | 1,311,822.02 | 1,299,552.22 |
Beijing Nanyuan Vegetable Oil Plant | Sale of goods | 7,055.00 | |
Beijing Milk Co., Ltd. | Sale of goods | 1,946.00 | |
Beijing Pinggu District Grain and Oil Industry & Trade Co. , Ltd. | Sale of goods | 2,672.73 | |
Beijing Food Supply No. 34 Supply Department | Sale of goods | 1,399,738.14 | 1,056,193.89 |
Beijing Shunyi Grain & Oils Co., Ltd. | Sale of goods | 4,920.00 | |
Beijing Sidaokou Aquatic Products Co., Ltd. | Sale of goods | 176.00 | |
Beijing Yanqing Farm Co., Ltd. | Sale of goods | 6,000.00 | 3,000.00 |
Beijing Yonghe Xincheng Grain and Oil Supply Co., Ltd. | Sale of goods | 748,622.16 | |
Beijing Zidibing Grain and Oil Supply Co., Ltd. | Sale of goods | 1,676,047.71 | 1,578,420.33 |
Beijing Shounong Animal Husbandry Development Co., Ltd. | Sale of goods | 3,522.95 | 7,013.85 |
Beijing Shounong Supply Chain Management Co., Ltd. | Sale of goods | 2,469,496.69 | 26,877.71 |
Beijing Shounong Commercial Chain Co., Ltd. Hebei Xiong'an Branch | Sale of goods | 41,834.86 | |
Beijing Capital Agribusiness Group Co., Ltd. | Sale of goods | 3,154.10 | 13,027.59 |
Beijing Shounong Xiangshan Convention Center | Sale of goods | 13,100.00 | 21,834.86 |
Beijing Shuangta Lvgu Agriculture Co., Ltd. | Sale of goods | 107,775.70 | |
Beijing Aquatic Products Co., Ltd. | Sale of goods | 6,380.00 | 5,727.27 |
Beijing Sugar Tobacco and Alcohol Group Co., Ltd. | Sale of goods | 26,280.00 |
Related Party | Related-party Transaction | Current Amount | Last Term Amount |
Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd. | Sale of goods | 1,344,372.42 | 1,089,576.75 |
Beijing Xicheng Sugar Tobacco and Alcohol Co., Ltd. | Sale of goods | 8,370.00 | |
Beijing Xingshishang Trade Co., Ltd. | Sale of goods | 8,181.82 | |
Beijing Great Wall Danyu Livestock Co., Ltd. | Sale of goods | 411.01 | |
Beijing Zhibohui Architectural Design Institute Co., Ltd Union | Sale of goods | 9,545.45 | |
Beijing Zhujun Grain and Oil Supply Co., Ltd. | Sale of goods | 2,196,158.88 | 3,014,819.43 |
Hebei Shounong Modern Agricultural Technology Co., Ltd. | Sale of goods | 7,867,155.54 | 10,975,282.69 |
Jinghai Petrochemical (Tianjin) Co., Ltd. | Sale of goods | 2,112.00 | |
Jingliang (Tianjin) E-Commerce Co., Ltd. | Sale of goods | 41,993.91 | 68,685.10 |
Jingliang (Tianjin) Trade Development Co., Ltd. | Sale of goods | 10,560.00 | |
Jingliang Century Cloud Technology Co., Ltd. | Sale of goods | 830.00 | |
Tianjin Hongda International Freight Forwarding Company | Sale of goods | 3,520.00 | |
China Meat Research Center | Sale of goods | 5,437.16 | |
Beijing Jingliang E-Commerce Co., Ltd. | Provision of Service | 766,509.38 | |
Beijing Jingliang Dagu Grain and Oil Trading Co., Ltd. | Provision of Service | 177,900.00 | |
In Total | 73,528,174.97 | 48,117,520.71 |
Name of Lessee | Type of Leased Asset | Lease Income Recognized in the Current Period | Lease Income Recognized in the Prior Period |
Beijing Jingliang E-commerce Co., Ltd. | Housing | 766,509.38 | |
Beijing Guchuan Food Co., Ltd. | Housing | 9,523,809.50 | |
Beijing Jingliang E-commerce Co., Ltd | Vehicle leasing | 12,729.60 | |
In Total | 779,238.98 | 9,523,809.50 |
Name of Lessor | Type of Leased Asset | Lease fee recognized in the current period | Lease fee recognized in the prior period |
Beijing Jingliang Property Co. Ltd. | House leasing | 578,628.78 | |
Beijing Daxing National Grain Purchasing & Storage Warehouse | House leasing | 1,055,100.00 | 1,055,100.00 |
Beijing Grain Group Co., Ltd | House leasing | 280,000.00 | 700,000.00 |
Beijing Dahongmen Grain Purchasing & Storage Warehouse | House leasing | 956,592.00 | |
Beijing Dahongmen Plant Oil Factory | House leasing | 340,000.00 | |
In Total | 1,913,728.78 | 3,051,692.00 |
consolidated financial statements at this period
(4) Related-party assets transfer and debt restructuring
The Company has no related-party assets transfer and debt restructuring at this period.
(5) Remuneration for key management staff
Unit: ten thousand yuan
Item | Current Amount | Last Term Amount |
Remuneration for Key Management Staff | 89.05 | 78.26 |
Related Party | Related-party Transaction | Current Amount | Last Term Amount |
Beijing Guchuan Food Co., Ltd. | Income from utility costs | 1,544,536.20 | 1,380,188.90 |
Item | Ending Balance | Beginning Balance | ||
Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | |
Monetary funds | ||||
Beijing Grain Group Finance Co. Ltd. | 183,314,973.33 | 326,474,443.01 | ||
Total | 183,314,973.33 | - | 326,474,443.01 | |
Receivables: | ||||
Beijing Baijiayi Food Limited | 110,400.00 | |||
Beijing Beishui Yongxing Seafood Sales Limited | 882.00 | |||
Beijing Er Shang Gongyifu Food Co., Ltd. | 13,860.00 | 17,226.00 | ||
Beijing Er Shang Wangzhihe Food Co., Ltd. | 3,422,950.00 | |||
Beijing Guchuan Rice Co., Ltd | 82,674.00 | 11,397.00 | ||
Beijing Guchuan Food Co., Ltd. | 4,900.00 | 139,100.00 | ||
Beijing Jingliang E-commerce Co., Ltd. | 7,848.00 | 238,918.00 | ||
Beijing Jingliang Dongfang Grain and Oil Trade Co., Ltd. | 448,954.00 | 1,122,310.00 | ||
Beijing Jingliang Logistics Co., Ltd. | 5,302.00 | |||
Beijing Jingliang Property Co., Ltd. | 120,765.00 | |||
Beijing Juncheng Nuoyuan Purchase and Sale Co., Ltd. | 334,620.00 | 148,800.00 | ||
Beijing Sanyuan Seed Industry Technology Co., Ltd. Feed Branch | 2,704,158.65 | 1,938,842.06 | ||
Beijing Beishui Jialun Seafood Market Co. Ltd | 2,856.00 | |||
Beijing Haidian West Suburb Grain and Oil Supply Station Co., Ltd. | 2,062,648.00 | 7,800.00 | ||
Beijing Longqing Xiadu Army Food Supply Co., Ltd. | 166,320.00 | |||
Beijing Maliandao Special Grain & Oil Supply Station Co, Ltd | 505,400.00 | |||
Beijing Zhujun Grain & Oil Supply Station | 981,204.00 | |||
Beijing Army Grain & Oil Supply Co, Ltd. | 332,400.00 | |||
Beijing Shounong Supply Chain Management Co. Ltd. | 302,318.30 | 2,880,252.00 | ||
Beijing Seafood Limited | 2,688.00 |
Item | Ending Balance | Beginning Balance | ||
Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | |
Beijing Wuhuan Shuntong Supply Chain Management Co. Ltd. | 45,540.00 | 289,880.00 | ||
Beijing Zhujun Grain & Oil Supply Co, Ltd. | 765,000.00 | |||
Hebei Shounong Modern Agriculture Technology Co. Ltd. | 1,579,153.54 | |||
Total | 11,325,657.95 | - | 9,471,708.60 | |
Advance receipts: | ||||
Beijing Er Shang Wangzhihe Food Limited | 10,718.00 | |||
Total | 10,718.00 |
Item | Ending Balance | Beginning balance |
Short-term Borrowings: | ||
Beijing Capital Agribusiness Group Co., Ltd | 170,000,000.00 | |
Total | 170,000,000.00 | |
Payables: | ||
Beijing Guchuan Food Co. Ltd. | 61,600.00 | |
Beijing Er Shang Moqi Zhonghong Food Co. Ltd.. | 204.00 | |
Beijing Er Shang Da Hong Men Meat Food Co. Ltd. | 11,176.11 | |
Beijing Wuhuan Shuntong Supply Chain Management Co. Ltd. | 10,495.41 | |
Total | 61,804.00 | 21,671.52 |
Advance receipts: | ||
Beijing Jingliang E-Commerce Limited | 153,301.88 | |
Beijing Wuhuan Shuntong Supply Chain Management Co. Ltd. | 7,524.00 | |
Total | 160,825.88 | |
Other payables: | ||
Beijing Grain Group Co. Ltd. | 1,137,030.30 | 1,137,030.30 |
Beijing Jingliang E-commerce Co., Ltd. | 431,539.20 | 444,268.80 |
Beijing Dahongmen Oil Plant | 1,055,100.00 | |
Beijing nanyuan plant oil factory | 107,596.56 | 50,360.92 |
Beijing Guchuan Food Co. Ltd. | 260,834.20 | |
Total | 2,992,100.26 | 1,631,660.02 |
Government of Beijing Municipality to the Establishment of Enterprise Annuity Plan of Beijing Grain Group Co., Ltd.(Beijing State-owned Asset [2013] No. 224), providing that BGG's Request for Reporting of Enterprise Annuity (BGGEnterprise [2013] No. 258) complies with the requirements of Provisional Measures for Trial Implementation ofEnterprise Annuity (Decree No. 20 of the Ministry of Labor and Social Security) and Guiding Opinions for the TrialImplementation of Enterprise Annuity System by State-owned Enterprises in Beijing (Beijing State-owned Asset Audit[2006] No. 77) and approving that the supplementary old-age insurance and various commercial insurance establishedby the Company before the implementation of the annuity plan should be terminated automatically and all employeeswho have participated in the annuity plan will no longer enjoy social benefits outside of overall planning afterretirement.On November 20, 2013,BGG received Reply to the Filing of Annuity Plan of Beijing Grain Group Co., Ltd.(Xicheng Human & Social [2013] No. 71) from Beijing Xicheng District Human Resources and Social Security Bureau,requesting that BGG should strictly implement payment scope and standards and relevant democratic proceduresstipulated in the plan and actively cooperate in supervision and inspection of relevant departments after filing.On March 14, 2014, the Company obtained the Certificate of Enterprise Annuity Participation Plan from Ping AnPension Insurance Co., Ltd. The details on the Certificate is listed as follows:
The Company's basic information: Name of Enterprise: Beijing Jingliang Food Co., Ltd.; Enterprise Annuity No.:
C0156482005; the Time of Participation Plan: November 18, 2013; Effective Time of the Plan: March 13, 2014; PlanNo. of the Superior Enterprise: C0156482000; Name of the Superior Enterprise: Beijing Jingliang Food Co., Ltd.Basic information of Annuity Plan: Name of the Plan: Ping An-CITIC Splendid Life Enterprise Annuity Plan;Trustee and Account Manager: Ping An Pension Insurance Co., Ltd; Trustee: CHINA CITIC BANK CORPORATIONLIMITED; Annuity Plan Registration No.: 99JH20120041; Annuity Plan No.: P0807; Plan Type: Collective Plan.
Portfolio: Portfolio Code: 9155; Name of Portfolio: Ping An-CITIC Splendid Life Bond Enhanced Portfolio;Investment Proportion: 100%; Investment Manager: CITIC Securities Co., Ltd.2 Information on Divisions
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing, oil and grease and so on according to its internalorganizational structure, management requirements and internal reporting system. The Company's managementregularly evaluates the operating results of these divisions to determine the allocation of resources to them and evaluatetheir performance. The information reported by divisions should be disclosed according to the accounting policies andmeasurement standards adopted by such divisions when they are reporting to the management. These measurementbases should be consistent with the accounting and measurement bases for preparation of financial statements.
(2) Reporting of the financial information on divisions
Item | Oil & Grease | Food Processing | Other | Offset Among Divisions | Total |
Operating income | 3,493,823,723.60 | 448,991,302.59 | 12,636,556.69 | -204,678,515.25 | 3,750,773,067.63 |
Operating costs | 3,233,319,539.16 | 306,213,197.39 | 4,937,017.00 | -188,268,495.49 | 3,356,201,258.06 |
Operating profit | 63,302,227.40 | 79,871,192.87 | -15,618,391.87 | -7,055,928.85 | 120,499,099.55 |
Net profit attributable to parent company | 56,519,781.89 | 60,965,120.07 | -16,614,390.26 | -27,107,616.51 | 73,762,895.19 |
Total assets | 3,055,453,601.15 | 1,009,966,756.63 | 6,284,258,452.23 | -5,015,179,852.33 | 5,334,498,957.68 |
Total liabilities | 1,698,388,631.09 | 142,723,285.44 | 1,659,994,917.10 | -1,138,735,649.39 | 2,362,371,184.24 |
Aging | Ending Balance |
Within 1 Year | |
Among them: Within 3 months | |
4-12 months | |
1 to 2 years | |
2 to 3 years | 3,000.00 |
Aging | Ending Balance |
3 to 4 years | 51,420.00 |
4 to 5 years | 72,000.00 |
More than 5 years | |
Sub total | 126,420.00 |
minus: provision for bad debts | 83,910.00 |
Total | 42,510.00 |
Type(s) | Ending Balance | ||||
Book Balance | Bad Debt Provision | Book Value | |||
Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
Receivables with separate provision for bad debts | |||||
Accounts Receivable for Bad Debt Provision Based on Portfolio | |||||
Portfolio 1 - Age-based accounts receivable | 126,420.00 | 83,910.00 | 42,510.00 | ||
Portfolio 2 - Related Party Accounts Receivable | |||||
Portfolio Total | 126,420.00 | 100.00 | 83,910.00 | 66.37 | 42,510.00 |
Total | 126,420.00 | —— | 83,910.00 | —— | 42,510.00 |
Type(s) | Beginning Balanc | ||||
Book Balance | Bad Debt Provision | Book Value | |||
Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
Receivables with significant individual amounts and separate provision for bad debts | |||||
Accounts Receivable for Bad Debt Provision Based on Credit Risk Characteristic Portfolio | |||||
Portfolio 1 - Age-based accounts receivable | 126,420.00 | 83,910.00 | 42,510.00 | ||
Portfolio 2 - Related Party Accounts Receivable | |||||
Portfolio Total | 126,420.00 | 100.00 | 83,910.00 | 66.37 | 42,510.00 |
Receivables with minor amounts but separate provision for bad debts | |||||
Total | 126,420.00 | —— | 83,910.00 | —— | 42,510.00 |
Aging | Ending Balance | ||
Accounts Receivable | Bad Debt Provision | Provision Ratio(%) | |
Within 1 Year |
Aging | Ending Balance | ||
Accounts Receivable | Bad Debt Provision | Provision Ratio(%) | |
Among them: Within 3 months | 0 | ||
4-12 months | 2 | ||
1 to 2 years | 5 | ||
2 to 3 years | 3,000.00 | 600.00 | 20 |
3 to 4 years | 51,420.00 | 25,710.00 | 50 |
4 to 5 years | 72,000.00 | 57,600.00 | 80 |
More than 5 years | 100 | ||
Total | 126,420.00 | 83,910.00 | —— |
Aging | Beginning Balanc | ||
Accounts Receivable | Bad Debt Provision | Provision Ratio(%) | |
Within 1 Year | |||
Among them: Within 3 months | 0 | ||
4-12 months | 2 | ||
1 to 2 years | 5 | ||
2 to 3 years | 3,000.00 | 600.00 | 20 |
3 to 4 years | 51,420.00 | 25,710.00 | 50 |
4 to 5 years | 72,000.00 | 57,600.00 | 80 |
More than 5 years | 100 | ||
Total | 126,420.00 | 83,910.00 | ----- |
Items | Beginning Balance | The amount changed for the period | Ending Balance | ||
addition | Write-off | Other deduct | |||
Provision for bad debt | 83,910.00 | 83,910.00 | |||
Total | 83,910.00 | 83,910.00 |
Debtors | total ending balance of accounts receivable | Ratio of the total ending balance of accounts receivable(%) | Ending Balance of Bad Debt Provision |
Hainan pearl river pipe pile co. LTD | 108,000.00 | 85.43 | 74,700.00 |
Ceibs agricultural Qinhuangdao development co. LTD | 18,420.00 | 14.57 | 9,210.00 |
Total | 126,420.00 | 100.00 | 83,910.00 |
Item | Ending Balance | Beginning Balance |
Item | Ending Balance | Beginning Balance |
Interest receivable | ||
Dividends receivable | ||
Other receivables | 12,307,166.41 | 12,612,756.48 |
Total | 12,307,166.41 | 12,612,756.48 |
Aging | Ending Balance |
Within 1 Year | 109,271.85 |
Among them: Within 3 months | 4,000.00 |
4-12 months | 105,271.85 |
1 to 2 years | 12,200,000.00 |
2 to 3 years | |
3 to 4 years | |
4 to 5 years | |
More than 5 years | 50,000.00 |
Sub total | 12,359,271.85 |
minus: provision for bad debts | 52,105.44 |
Total | 12,307,166.41 |
Nature of Funds | Book Balance at End of Period | Book Balance at Beginning of Year |
Transactions between related parties | 12,200,000.00 | 12,200,000.00 |
Pretty cash (for employees, departments) | 105,271.85 | 105,271.85 |
Receivables for employees | 18,590.07 | |
Other accounts | 54,000.00 | 341,000.00 |
Sub total | 12,359,271.85 | 12,664,861.92 |
minus: provision for bad debts | 52,105.44 | 52,105.44 |
Total | 12,307,166.41 | 12,612,756.48 |
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 2020 | 2,105.44 | 50,000.00 | 52,105.44 | |
Carrying amount of other receivable on 1st January 2020 that in this period: | ||||
——Get into Stage 2 |
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) | ||
——Get into Stage 3 | ||||
——Get back to Stage 2 | ||||
——Get back to Stage 1 | ||||
Provision for the period | ||||
Reverse for the period | ||||
Transfer for the period | ||||
Write off for the period | ||||
Other deduct | ||||
Carrying amount at the end of the period | 2,105.44 | 50,000.00 | 52,105.44 |
Item | Ending Balance | Beginning Balance | ||||
Book Balance | Provision for Impairment | Book Value | Book Balance | Provision for Impairment | Book Value | |
Investment in subsidiaries | 2,626,437,846.24 | 0.00 | 2,626,437,846.24 | 2,377,420,527.10 | 2,377,420,527.10 | |
Total | 2,626,437,846.24 | 0.00 | 2,626,437,846.24 | 2,377,420,527.10 | 2,377,420,527.10 |
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 | 249,017,319.14 | 2,585,657,283.19 | |||
Jingliang Rural Complex Construction and Operations (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 | ||||
Total | 2,377,420,527.10 | 249,017,319.14 | 2,626,437,846.24 |
Item | Current Amount | Last Term Amount | ||
Income | Cost | Income | Cost | |
Other Businesses | 376,609.17 | |||
Total | 376,609.17 |
Item | Amount | Description |
Profit and loss from disposal of non-current assets | ||
Government subsidies included into the current profits and losses (closely related to the Company's businesses, except for those that should be enjoyed in accordance with national unified standard quota or fixed quantity) | 607,800.07 |
Item | Amount | Description |
Funds occupation fees charged to non-financial enterprises which are included in current profits and losses | ||
Profit or loss arising from fair value changes due to trading financial assets and trading financial liabilities, and investment income from disposal of trading financial assets, trading financial liabilities and available-for-sale financial assets, except for the effective hedging business related to the Company's normal business activities. | 7,957,284.73 | |
Other non-operating income and expenditure other than the above items | -729,231.95 | |
Subtotal | 7,835,852.85 | |
Change in income tax | -1,954,161.27 | |
Change in minority shareholder's equity (after tax) | -113,986.34 | |
Total | 5,767,705.24 |
Current Profit | Weighted Return on Average Equity (ROAE) | EPS | |
Basic EPS | Diluted EPS | ||
Net profit attributable to the Company's common shareholders | 3.02 | 0.11 | 0.11 |
Net profit attributable to common shareholders after deduction of non-recurring gains and losses | 2.79 | 0.10 | 0.10 |