HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2021
August 2021
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL REPORT 2021Part I Important NotesThis Summary is based on the full text of the Semi-annual Report of Hainan Jingliang Holdings Co., Ltd. (togetherwith its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a fullunderstanding of the Company’s operating results, financial condition and future development plans, investorsshould carefully read the aforesaid full text, which has been disclosed together with this Summary on the mediadesignated 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 | ||
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
□ Yes √ No
| H1 2021 | H1 2020 | Change (%) | |
| Operating revenue (RMB) | 5,328,246,835.83 | 3,750,773,067.63 | 42.06% |
| Net profit attributable to the listed company’s shareholders (RMB) | 88,328,197.91 | 73,762,895.19 | 19.75% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 83,273,337.40 | 67,995,189.95 | 22.47% |
| Net cash generated from/used in operating activities (RMB) | 277,850,445.45 | 187,095,820.76 | 48.51% |
| Basic earnings per share (RMB/share) | 0.12 | 0.11 | 9.09% |
| Diluted earnings per share (RMB/share) | 0.12 | 0.11 | 9.09% |
| Weighted average return on equity (%) | 3.21% | 3.02% | 0.19% |
| 30 June 2021 | 31 December 2020 | Change (%) | |
| Total assets (RMB) | 6,143,767,415.63 | 5,695,504,493.73 | 7.87% |
| Equity attributable to the listed company’s shareholders (RMB) | 2,798,819,294.02 | 2,710,571,543.53 | 3.26% |
| Number of ordinary shareholders | 64,713 | 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, marked or frozen shares | ||
| Status | Shares | ||||||
| BEIJING GRAIN GROUP CO., LTD. | State-owned legal person | 39.68% | 288,439,561 | 0 | |||
| BEIJING STATE-OWNED CAPITAL OPERATION AND MANAGEMENT CENTER | State-owned legal person | 6.67% | 48,510,460 | 0 | |||
| WANG YUECHENG | Domestic natural person | 5.66% | 41,159,887 | 41,159,887 | |||
| LI SHERYN ZHAN MING | Foreign natural person | 1.23% | 8,932,700 | 0 | |||
| GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND MANAGEMENT CO., LTD.—GOLD BUFFALO RUNYING (TIANJIN) EQUITY INVESTMENT FUND (L.P.) | Other | 0.40% | 2,889,803 | 0 | |||
| MEI JIANYING | Domestic natural person | 0.36% | 2,604,203 | 0 | |||
| ZHANG XIAOXIA | Domestic natural person | 0.27% | 1,949,250 | 0 | |||
| WANG XIAOXING | Domestic natural person | 0.23% | 1,691,200 | 0 | |||
| TAN WENQIONG | Domestic natural person | 0.21% | 1,550,500 | 0 | |||
| ORIENT SECURITIES | Foreign legal | 0.18% | 1,330,400 | 0 | |||
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| (HONG KONG) LIMITED | person | |
| 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 1,691,200 shares in the Company through his account of collateral securities for margin trading in Soochow Securities Co., Ltd. | |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Part IV. Financial statements (Unaudited)）Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Unit: Yuan
| Program | June 30th, 2021 | December 31st, 2020 |
| Current Assets: | ||
| Monetary Capital | 779,954,595.57 | 335,466,169.61 |
| Deposit Reservation for Balance | ||
| Lending Funds | ||
| Transactional Monetary Assets | 363,000,000.00 | 63,478,071.73 |
| Derivative Financial Assets | 75,597,717.39 | |
| Notes Receivable | 456,565.85 | |
| Account Receivable | 96,128,277.06 | 92,245,667.60 |
| Receivables Financing | ||
| Advance Payment | 580,667,503.17 | 282,343,218.05 |
| Receivable Premium | ||
| Reinsurance Accounts Receivable | ||
| Provision of Cession Receivable | ||
| Other Receivables | 88,750,805.46 | 541,905,656.97 |
| Including: The Interest Receivable | ||
| Dividend Receivable | ||
| Redemptory Monetary Capital for Sale | ||
| Inventory | 1,599,520,851.27 | 1,225,083,742.26 |
| Contract Assets | ||
| Holding Assets to be Sold. | ||
| Non-Current Assets Expiring within One Year | ||
| Other Current Assets | 232,671,032.39 | 845,450,678.36 |
| Total Current Assets | 3,816,290,782.31 | 3,386,429,770.43 |
| Non-current Assets: | ||
| offer loans and make advance | ||
| Lending Investments | ||
| Other Investment on Bonds | ||
| Long-term Receivables | ||
| Long-term Equity Investment | 219,058,997.13 | 217,762,487.79 |
| Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Other non-current financial assets | ||
| Investment Property | 21,737,164.27 | 22,560,212.50 |
| Fixed Assets | 1,088,582,627.48 | 1,131,143,854.07 |
| Construction in progress | 35,262,660.08 | 28,458,413.67 |
| Productive Biological Asset | ||
| Oil and Gas Assets | ||
| Right-of-Use Asset | 2,472,838.11 | |
| Intangible Assets | 346,717,866.88 | 354,139,335.32 |
| Development Expenditure | ||
| Goodwill | 191,394,422.51 | 191,394,422.51 |
| Long-term Unamortized Expenses | 20,319,161.45 | 20,529,601.50 |
| Deferred Tax Asset | 15,178,448.67 | 3,346,814.27 |
| Other Non-current Assets | 366,752,446.74 | 319,739,581.67 |
| Non-current Assets in Total | 2,327,476,633.32 | 2,309,074,723.30 |
| Total Assets | 6,143,767,415.63 | 5,695,504,493.73 |
| Current Liability: | ||
| Short-term Borrowing | 1,722,856,775.38 | 1,497,414,079.05 |
| Borrowing from the Central Bank | ||
| Borrowing Funds | ||
| Transactional Monetary Liabilities | ||
| Derivative Financial Liabilities | 371,219,136.84 | |
| Notes Payable | ||
| Accounts Payable | 134,164,851.58 | 75,384,075.39 |
| Account Collected in Advance | 1,462,678.11 | 1,087,874.02 |
| Contract Liabilities | 533,807,058.54 | 346,874,260.90 |
| Financial Assets Sold for Repurchase | ||
| Deposits from Customers and Interbank | ||
| Receivings from Vicariously Traded Securities | ||
| Receivings from Vicariously Sold Securities | ||
| Employee Pay Payable | 13,709,981.41 | 33,345,136.94 |
| Tax Payable | 65,516,363.75 | 50,884,214.64 |
| Other payables | 113,823,953.59 | 72,292,881.24 |
| Including: The Payable Interest | 21,082,795.47 | 21,082,795.47 |
| Dividends Payable | 11,013,302.88 | 11,013,302.88 |
| Handling Charges and Commissions Payable | ||
| Dividend Payable for Reinsurance | ||
| Holding Liabilities to Be Sold |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Non-Current Liabilities Expiring within One Year | ||
| Other current liabilities | 132,051,254.57 | 8,319,696.79 |
| Total Current Liabilities | 2,717,392,916.93 | 2,456,821,355.81 |
| Non-Current Liabilities: | ||
| Provision for Insurance Contracts | ||
| Long-Term Loan | 71,000,000.00 | |
| Bonds payable | ||
| Including: Preference Shares | ||
| Perpetual Capital Securities | ||
| Lease Obligation | 2,425,606.75 | |
| Long-term account payable | ||
| Long-term employee pay payable | 5,677,134.00 | 5,677,134.00 |
| Anticipation liabilities | ||
| Deferred Revenue | 67,770,476.00 | 68,716,699.34 |
| Deferred Income Tax Liabilities | 81,969,420.28 | 65,115,801.22 |
| Other Non-current Liabilities | ||
| Total Non-current Liabilities | 228,842,637.03 | 139,509,634.56 |
| Total Liabilities | 2,946,235,553.96 | 2,596,330,990.37 |
| Owners Equity: | ||
| Capital stock | 726,950,251.00 | 726,950,251.00 |
| Other equity instruments | ||
| Including: Preference Shares | ||
| Perpetual Capital Securities | ||
| Capital reserve | 1,674,828,350.95 | 1,674,828,350.95 |
| Minus: Treasury Stock | ||
| Other Comprehensive Income | -443,706.08 | -363,258.66 |
| Reasonable Reserve | ||
| Surplus reserves | 122,122,436.98 | 122,122,436.98 |
| Generic Risk Reserve | ||
| Undistributed profit | 275,361,961.17 | 187,033,763.26 |
| Total equity attributable to the shareholders of parent Company | 2,798,819,294.02 | 2,710,571,543.53 |
| Minority Equity | 398,712,567.65 | 388,601,959.83 |
| Total owners' equity | 3,197,531,861.67 | 3,099,173,503.36 |
| Total liabilities and owner's equity | 6,143,767,415.63 | 5,695,504,493.73 |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
Legal representative: Li Shaoling Financial Director: Guan Ying Director of Accounting Institutions: Liu Quanli
2. Balance sheet of parent Company
Unit: Yuan
| Program | June 30th, 2021 | December 31st, 2020 |
| Current Assets: | ||
| Monetary Capital | 732,956.01 | 1,523,322.79 |
| Transactional Monetary Assets | ||
| Derivative Financial Assets | ||
| Notes Receivable | ||
| Account Receivable | 11,784.00 | 11,784.00 |
| Receivables Financing | ||
| Advance Payment | 416,276.56 | 423,679.12 |
| Other Receivables | 100,008.26 | 103,341.26 |
| Including: The Interest Receivable | ||
| Dividend Receivable | ||
| Inventory | 3,775,954.85 | 3,775,954.85 |
| Contract Assets | ||
| Holding Assets to be Sold. | ||
| Non-Current Assets Expiring within One Year | ||
| Other Current Assets | 2,458,717.81 | 2,445,772.47 |
| Total Current Assets | 7,495,697.49 | 8,283,854.49 |
| Non-current Assets: | ||
| Lending Investments | ||
| Other Investment on Bonds | ||
| Long-term Receivables | ||
| Long-term Equity Investment | 2,626,437,846.24 | 2,626,437,846.24 |
| Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 |
| Other non-current financial assets | ||
| Investment Property | 6,051,420.47 | 6,222,001.73 |
| Fixed Assets | 2,381,625.62 | 2,809,083.51 |
| Construction in progress | ||
| Productive Biological Asset | ||
| Oil and Gas Assets | ||
| Right-of-Use Asset | ||
| Intangible Assets | 136,855.34 | 209,185.10 |
| Development Expenditure | ||
| Goodwill | ||
| Long-term Unamortized Expenses | ||
| Deferred Tax Asset | ||
| Other Non-current Assets |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Non-current Assets in Total | 2,655,007,747.67 | 2,655,678,116.58 |
| Total Assets | 2,662,503,445.16 | 2,663,961,971.07 |
| Current Liability: | ||
| Short-term Borrowing | ||
| Transactional Monetary Liabilities | ||
| Derivative Financial Liabilities | ||
| Notes Payable | ||
| Accounts Payable | ||
| Account Collected in Advance | 38,896.41 | 38,896.41 |
| Contract Liabilities | ||
| Employee Pay Payable | 188,359.24 | 341,902.14 |
| Tax Payable | 960,020.24 | 1,037,881.62 |
| Other payables | 310,664,277.93 | 309,067,618.99 |
| 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 | 311,851,553.82 | 310,486,299.16 |
| 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 | 311,851,553.82 | 310,486,299.16 |
| Owners Equity: | ||
| Capital stock | 726,950,251.00 | 726,950,251.00 |
| Other equity instruments | ||
| Including: Preference Shares | ||
| Perpetual Capital Securities | ||
| Capital reserve | 2,379,144,900.84 | 2,379,144,900.84 |
| Minus: Treasury Stock | ||
| Other Comprehensive Income | ||
| Reasonable Reserve |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Surplus reserves | 109,487,064.39 | 109,487,064.39 |
| Undistributed profit | -864,930,324.89 | -862,106,544.32 |
| Total owners' equity | 2,350,651,891.34 | 2,353,475,671.91 |
| Total liabilities and owner's equity | 2,662,503,445.16 | 2,663,961,971.07 |
| Program | Half year of 2021 | Half year of 2020 |
| I. Gross Revenue | 5,328,246,835.83 | 3,750,773,067.63 |
| Including: operating income | 5,328,246,835.83 | 3,750,773,067.63 |
| Interest Income | ||
| Earned Premium | ||
| Handling charges and commissions income | ||
| II. Total Operating Cost | 5,293,177,718.70 | 3,575,140,175.66 |
| Operating costs | 5,099,544,988.41 | 3,356,201,258.06 |
| 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 | 11,363,903.89 | 8,651,111.37 |
| Selling Expenses | 76,677,576.52 | 106,641,119.14 |
| Administrative Expenses | 84,799,700.54 | 78,032,286.29 |
| Research and Development Expenditure | 5,170,755.15 | 2,803,717.02 |
| Financial Expenses | 15,620,794.19 | 22,810,683.78 |
| Including: The Interest Expense | 19,854,113.81 | 16,975,042.06 |
| Interest Income | 5,408,203.94 | 5,373,488.21 |
| plus: other income | 6,426,061.54 | 5,046,948.84 |
| Investment income ("-" refers to losses) | 31,246,898.08 | 16,695,925.99 |
| Of which: Income from investment in joint ventures | 25,976,509.34 | 6,947,778.68 |
| The financial assets measured at amortized cost terminates the recognition of income ( "-" refers to losses) | ||
| Exchange Earning ( "-" refers to |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| losses) | ||
| Net Open Hedging Income ( "-" refers to losses) | ||
| Income of Fair Value Changes ( "-" refers to losses) | 61,697,730.47 | -76,876,667.25 |
| Credit Loss ( "-" refers to losses) | ||
| Assets Impairment Loss ( "-" refers to losses) | ||
| Assets Disposal Income ( "-" refers to losses) | -58,685.83 | |
| III. Operating Profit ( "-" refers to losses) | 134,381,121.39 | 120,499,099.55 |
| plus: Non-operating income | 1,279,113.80 | 689,439.82 |
| minus: Non-operating expenses | 262,695.32 | 1,418,671.77 |
| IV. Total Profit ( "-" refers to total losses) | 135,397,539.87 | 119,769,867.60 |
| minus: income tax expense | 36,958,734.14 | 24,461,831.86 |
| V. Net Profit ( "-" refers to net losses) | 98,438,805.73 | 95,308,035.74 |
| i. Classified Based on Business Continuity | ||
| 1. Net income from continuing operation ( "-" refers to net losses) | 98,438,805.73 | 95,308,035.74 |
| 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 | 88,328,197.91 | 73,762,895.19 |
| 2. Minority Interest Income | 10,110,607.82 | 21,545,140.55 |
| VI. Net of Tax of Other Comprehensive Income | -80,447.42 | 106,731.84 |
| Net of tax of other comprehensive income attributed to shareholders of parent Company | -80,447.42 | 106,731.84 |
| 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 | -80,447.42 | 106,731.84 |
| 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. |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| 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 | -80,447.42 | 106,731.84 |
| 7. Others | ||
| Net of tax of other comprehensive income attributed to minority shareholder | ||
| VII. Total Comprehensive Income | 98,358,358.31 | 95,414,767.58 |
| Total comprehensive income attributed to shareholders of parent Company | 88,247,750.49 | 73,869,627.03 |
| Total comprehensive income attributed to minority shareholder | 10,110,607.82 | 21,545,140.55 |
| VIII. Earnings Per Share: | ||
| i. Basic Earnings Per Share | 0.12 | 0.11 |
| ii. Diluted Earnings Per Share | 0.12 | 0.11 |
| Program | Half year of 2021 | Half year of 2020 |
| I. Operating Income | 295,530.28 | 376,609.17 |
| minus: operating costs | 170,581.26 | 0.00 |
| Tax and Surcharges | 98,713.86 | 2,700.00 |
| Selling Expenses | ||
| Administrative Expenses | 2,825,749.10 | 13,524,055.12 |
| Research and Development Expenditure | ||
| Financial Expenses | 1,108.86 | -5,045.16 |
| Of which: The Interest Expense | ||
| Interest Income | 1,190.61 | 8,250.44 |
| plus: other income | 37,431.93 | 50,313.02 |
| Investment income ("-" refers to losses) | -28,691.03 | 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) |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Credit Loss ( "-" refers to losses) | ||
| Assets Impairment Loss ( "-" refers to losses) | ||
| Assets Disposal Income ( "-" refers to losses) | -31,898.67 | |
| II. Operating Profit ( "-" refers to losses) | -2,823,780.57 | -12,696,449.41 |
| plus: Non-operating income | 4,001.44 | |
| minus: Non-operating expenses | 1,000,000.00 | |
| III. Total Profit ( "-" refers to total losses) | -2,823,780.57 | -13,692,447.97 |
| minus: income tax expense | ||
| IV. Net Profit ( "-" refers to net losses) | -2,823,780.57 | -13,692,447.97 |
| i. Net income from continuing operation ( "-" refers to net losses) | -2,823,780.57 | -13,692,447.97 |
| 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 | -2,823,780.57 | -13,692,447.97 |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
5. Consolidated Statement of Cash Flow
Unit: Yuan
| Program | Half year of 2021 | Half year of 2020 |
| I. Cash flow from operating activities: | ||
| Cash received for selling goods and providing services | 5,952,771,752.73 | 3,900,040,688.18 |
| 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 | 12,662,140.42 | 6,282,179.39 |
| Other Cash Received Related to Business Activities | 1,296,559,208.28 | 488,634,210.14 |
| Subtotal of Cash flow of Operating Activities | 7,261,993,101.43 | 4,394,957,077.71 |
| Cash for Purchase of Goods and Labor Services | 5,641,229,247.11 | 3,523,972,309.51 |
| 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 | 160,658,231.05 | 152,383,335.08 |
| Tax Payments | 102,867,757.62 | 96,716,033.84 |
| Cash Payment of Other Related Business Activities | 1,079,387,420.20 | 434,789,578.52 |
| Subtotal of Cash Outflow of Operating Activities | 6,984,142,655.98 | 4,207,861,256.95 |
| Net Cash Flow from Operating Activities | 277,850,445.45 | 187,095,820.76 |
| II. Cash Flow from Investment | ||
| Cash Received in Disinvestment | 948,291,055.30 | 1,316,317,255.34 |
| Cash Received in Return of Investment | 30,129,076.34 | 5,120,558.91 |
| Net Cash Received from Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets | 90,984.78 | 6,618.58 |
| Net Cash Received from Disposal of Subsidiaries and Other Operating Units | 0.00 | 5,000,000.00 |
| Cash Received Related to Other Business Activities |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Subtotal of Cash flow of Operating Activities | 978,511,116.42 | 1,326,444,432.83 |
| Net Cash Payment for the Purchase of Fixed Assets, Intangible Assets and Other Long-term Assets | 65,875,188.69 | 11,385,922.53 |
| Cash Payment for Investment | 1,008,200,000.00 | 1,709,222,428.58 |
| 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 | 1,074,075,188.69 | 1,720,608,351.11 |
| Net Cash Flow from Investment Activities | -95,564,072.27 | -394,163,918.28 |
| 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 | 1,678,422,675.96 | 1,643,287,048.37 |
| Other Cash Received Related to Financial Activities | ||
| Subtotal of Cash flow of Financial Activities | 1,678,422,675.96 | 1,643,287,048.37 |
| Cash Payment for Debt | 1,380,657,882.58 | 1,385,455,023.02 |
| Cash Paid for Distribution of Dividends, Profits or Interests | 35,312,822.03 | 26,157,547.48 |
| 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 | 1,415,970,704.61 | 1,411,612,570.50 |
| Net Cash Flow from Financial Activities | 262,451,971.35 | 231,674,477.87 |
| IV. The Impact of Change in Exchange Rate on Cash and Cash Equivalents | -249,918.57 | -9,686,369.41 |
| V. Net Increase in Cash and Cash Equivalents | 444,488,425.96 | 14,920,010.94 |
| Plus: Initial Cash and cash Equivalents Balance | 334,389,017.41 | 555,097,777.21 |
| VI. Cash and Cash Equivalents Balance at the End of the Period | 778,877,443.37 | 570,017,788.15 |
| Program | Half year of 2021 | Half year of 2020 |
| I. Cash Flow from Operating Activities: | ||
| Cash received for selling goods and providing services | 1,930.25 | |
| Refunds of Taxes Received | 181.72 | 200.00 |
| Other Cash Received Related to Business Activities | 2,459,493.15 | 24,529,151.07 |
| Subtotal of Cash flow of Operating Activities | 2,461,605.12 | 24,529,351.07 |
| Cash for Purchase of Goods and Labor Services | 9,806.64 | 24,592.17 |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| Cash Paid to and for Employees | 1,450,104.47 | 7,904,980.50 |
| Tax Payments | 92,938.64 | 298,780.02 |
| Cash Payment of Other Related Business Activities | 1,664,077.90 | 18,496,617.45 |
| Subtotal of Cash Outflow of Operating Activities | 3,216,927.65 | 26,724,970.14 |
| Net Cash Flow from Operating Activities | -755,322.53 | -2,195,619.07 |
| 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 | 44,424.78 | |
| 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 | 44,424.78 | |
| Cash Payment for the Purchase of Fixed Assets, Intangible Assets and Other Long-term Assets | 79,469.03 | 142,327.44 |
| Cash Payment for Investment | ||
| Net Cash Payment of Subsidiaries and Other Business Units | ||
| Cash Payment of Other Activities Related to Investment | ||
| Subtotal of Cash Outflow of Investment Activities | 79,469.03 | 142,327.44 |
| Net Cash Flow from Investment Activities | -35,044.25 | -142,327.44 |
| III. Cash Flow from Financial Activities: | ||
| Cash Received by Absorbing Investment | ||
| Cash Received from Loans | 4,000,000.00 | |
| Other Cash Received Related to Financial Activities | ||
| Subtotal of Cash flow of Financial Activities | 4,000,000.00 | |
| 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 | |
| IV. The Impact of Change in Exchange Rate on Cash and Cash Equivalents | ||
| V. Net Increase in Cash and Cash Equivalents | -790,366.78 | 1,662,053.49 |
| Plus: Initial Cash and cash Equivalents Balance | 1,523,322.79 | 3,536,102.19 |
| VI. Cash and Cash Equivalents Balance at the End of the Period | 732,956.01 | 5,198,155.68 |
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
7. Consolidated Statement of Change in Equity
Unit: Yuan
| Program | Half year of 2021 | ||||||||||||||
| 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 | 726,950,251.00 | 1,674,828,350.95 | -363,258.66 | 122,122,436.98 | 187,033,763.26 | 2,710,571,543.53 | 388,601,959.83 | 3,099,173,503.36 | |||||||
| Plus: Changes in Accounting Policies | |||||||||||||||
| Early Error Correction | |||||||||||||||
| Enterprise Merger under the Same Control | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning Balance of This Year | 726,950,251.00 | 1,674,828,350.95 | -363,258.66 | 122,122,436.98 | 187,033,763.26 | 2,710,571,543.53 | 388,601,959.83 | 3,099,173,503.36 | |||||||
| III. Changes in This Period ( "-" refers to losses) | -80,447.42 | 88,328,197.91 | 88,247,750.49 | 10,110,607.82 | 98,358,358.31 | ||||||||||
| A. Total Comprehensive Income | -80,447.42 | 88,328,197.91 | 88,247,750.49 | 10,110,607.82 | 98,358,358.31 | ||||||||||
| 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. Withdrawal Generic Risk Reserve | |||||||||||||||
| 3. Distribution of Owners (or Shareholders) | |||||||||||||||
| 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 | |||||||||||||||
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| 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 | 1,674,828,350.95 | -443,706.08 | 122,122,436.98 | 275,361,961.17 | 2,798,819,294.02 | 398,712,567.65 | 3,197,531,861.67 |
| 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 | 0.00 | 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 | |||||||||||||||
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| 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 2021 | |||||||||||
| 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 | 726,950,251.00 | 2,379,144,900.84 | 109,487,064.39 | -862,106,544.32 | 2,353,475,671.91 | |||||||
| Plus: Changes in Accounting Policies | ||||||||||||
| Early Error Correction | ||||||||||||
| Others | ||||||||||||
| II. Beginning Balance of This Year | 726,950,251.00 | 2,379,144,900.84 | 109,487,064.39 | -862,106,544.32 | 2,353,475,671.91 | |||||||
| III. Changes in This Period ( "-" refers to losses) | -2,823,780.57 | -2,823,780.57 | ||||||||||
| A. Total Comprehensive Income | -2,823,780.57 | -2,823,780.57 | ||||||||||
| B. Input and Capital Reduction of Owners | ||||||||||||
| 1. Common Stock Invested by the Owner | ||||||||||||
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| 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 | 726,950,251.00 | 2,379,144,900.84 | 109,487,064.39 | -864,930,324.89 | 2,350,651,891.34 |
| 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 | ||||||||||||
Hainan Jingliang Holdings Co., Ltd. Semi-annual Report 2021
| 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 |
Hainan Jingliang Holdings Co., Ltd.Notes to 2021 Semiannual Financial Statements
(Unless otherwise stated, the amount unit is RMB Yuan)
I. Basic Information of the Company
1. Place of incorporation, form of organization and head office addressHainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang Holdings") isestablished in accordance with the Hainan Provincial People's Government General Office QFBH (1992) No.1, approved by QY (1992)SGZ No. 6 Document of the People's Bank of Hainan Province and re-registered by Hainan Pearl River Enterprise Company on January11, 1992. The Company issued 81,880,000 shares in total upon re-registration, of which 60,793,600 shares were converted from thenet assets of the original Company and 21,086,400 shares were newly issued. And the name of the Company is Hainan Pearl RiverEnterprise Co., Ltd. The business license registration number of the joint-stock Company is 20128455-6, and the holding parentCompany Guangzhou Pearl River Enterprise Group holds 36,393,600 shares, accounting for 44.45%. Approved by ZGB (1992) No.83 Document of the People's Bank of China in December 1992, the additional 21,086,400 shares were listed on the Shenzhen StockExchange for trading. The industry involved is real estate.On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and SRYFZ (1993) No.099of Shenzhen Special Economic Zone Branch of the People's Bank of China, the Company increased its share capital by converting theoriginal share capital into 139,196,000 shares (according to distribution of 10, delivery of 5 and transfer of 2), with the controllingshareholder Guangzhou Pearl River Enterprises Group holding 48,969,120 shares accounting for 35.18% at the end of 1993.In 1994, the share capital was increased by 10 to 10, and the total share capital was 278,392,000 shares after the increase. Thecontrolling shareholder, Guangzhou Pearl River Enterprises Group, holds 97,938,240 shares, accounting for 35.18%.In 1995, the issuance of 50,000,000 B Shares was approved by SZBF (1995) No.45 and SZBF (1995) No.12. The share capital ofthe Company was increased by 10:1.5 on the basis of the share capital after the additional B shares were issued, and the share capitalof the Company after the increase was 377,650,800 shares. The holding parent Company, Guangzhou Pearl River Enterprises Group,held 112,628,976 shares, accounting for 29.82% of the total.In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares to Beijing Wanfa Real Estate DevelopmentCo., Ltd.. After the transfer of shares was completed in June 1999, Beijing Wanfa Real Estate Development Co., Ltd. held 112,628,976shares of the Company, accounting for 29.82% of the total shares of the Company, and became the controlling shareholder of theCompany.
On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd. and the Business Licensefor Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau of Hainan Province.On August 17, 2006, the reform plan of the split share structure of the Company was implemented. The Company transferred
49,094,604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original non-tradable shareholders transferred theincreased shares to the tradable A-share holder. Beijing Wanfa Real Estate Development Co., Ltd. reimbursed the consideration sharesof the non-tradable shareholders who have not expressly expressed their opinions. The converted total share capital was 426,745,404shares, and the original controlling shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698 shares, accountingfor 25.31%. Shareholders of non-tradable shares repaid 3,289,780 shares in consideration of the split share structure in 2007.Shareholders of non-tradable shares repaid 1,196,000 shares in consideration of the split share structure in 2009.On 2 September 2016, Beijing Wanfa Real Estate Development Co., Ltd., the original controlling shareholder, transferred all ofits 112,479,478 shares to Beijing Grain Group Co., Ltd. (hereinafter referred to as "Beijing Grain Group"). Upon completion of theshare transfer in September 2016, Beijing Grain Group Co., Ltd. held 112,479,478 shares, accounting for 26.36% of the total shares ofthe Company. In November 2016, based on the confidence in the subject matter of the material asset restructuring and the futuredevelopment of the Company, Beijing Grain Group Co., Ltd. decided to increase its shareholding through centralized bidding in thesecondary market. After the increase, it held 123,561,963 shares of the Company, accounting for 28.95% of the total number of shares,and became the largest shareholder of the Company.The Company determined July 31, 2017 as the delivery date of material assets in accordance with the material assets restructuringplan and the delivery agreement. On September 14, 2017, approved pursuant to the resolution of the Second Extraordinary GeneralMeeting of Shareholders of the Company on November 18, 2016 and the Approval Reply of the China Securities RegulatoryCommission dated July 28, 2017 On Approval of Hainan Pearl River Holding Co., Ltd. to Purchase Assets and Raise Supporting Fundsfrom Beijing Grain Group Co., Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original shareholders ofBeijing Grain Food Co., Ltd. (hereinafter referred to as Beijing Grain Food) by issuing 210,079,552 shares of the balance between thetransaction price of the injected assets and the assets to be purchased (the difference between the transaction price of the injected assetsand the assets to be purchased was RMB 1,699.5436 million yuan). The par value in the issuance was RMB 1.00 per share and theissuance price was RMB 8.09 per share; 2) The Company has issued 48,965,408 non-public shares of the Company to Beijing GrainGroup for the purpose of purchasing the supporting funds raised from the assets of the issuance of shares. The par value per share ofthe Company was RMB1.00 and the issuance price was RMB8.82 per share. The shareholder Beijing Grain Group conductedsubscription in monetary funds. Upon completion of the issue, the registered capital was RMB 685,790,364.00 and the share capitalwas RMB 685,790,364.00. Beijing Grain Group, which accounted for 42.06% of the total number of shares, became the largestshareholder of the Company.On November 21, 2019, with the approval of Beijing Shounong Food Group Co., Ltd. (Beijing Shounong Food publish [2019]No. 212), Approval on the Plan of Purchasing Assets by Cash and Issuing Shares of Hainan Jingliang Holdings Co., Ltd, On April ,2020, with the approval of Approval of Hainan Jingliang Holding Co., Ltd. Issuance Shares to Wang Yuecheng to Purchase Assets byChina Securities Regulatory Commission [2020] No. 610, the Company shall not issue more than 41,159,887 new shares in privateoffering to raise funds supporting the purchase of assets through the issued shares. The Company and its subsidiary, Beijing JingliangFood Co., Ltd., purchased the 25.1149% equity stake of Zhejiang Little Prince by cash and issuance of shares.As of June 30, 2021, the Company has issued 726,950,251.00 shares, and the Company's share capital is 726,950,251.00 yuan;
Uniform Social Credit Code: 914600002012845568; Registration authority: Hainan Market Supervision Administration; Companytype: Limited Company (Listed, State-controlled); Registered address: F29, Dihao Building, Pearl River Square, Binhai Avenue,Haikou City; Legal representative: Li Shaoling.
2. The nature of the Company's business and its main business activities
The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main business ativites mainlyincludes: food, beverages, agricultural and sideline products, vegetable proteins and their products, organic fertilizers, microbialfertilizers, production and marketing of agricultural fertilizers; land consolidation, soil remediation; agricultural comprehensiveplanting development, animal husbandry and aquaculture, agricultural equipment production and marketing; computer networktechnology, 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 and technology; rentalof own premises.The Company and its subsidiaries are principally engaged in the processing, production and sales of foodstuffs, agricultural andsideline products, grease, oils, and leisure foods.
3. The name of the parent Company and the ultimate parent Company.
The parent Company of the Company is Beijing Grain Group Co., Ltd., and the ultimate parent Company is Beijing shounongFood Group Co., Ltd.
4. The approval institution and the approval date of the financial statements.
These financial statements have been approved and reported by the Board of Directors of the Company in its resolution dated onAugust 23, 2021.
5. Consolidation scope
The consolidated scope of the consolidated financial statements of the Company is determined on the basis of control, includingthe financial statements of the Company and all subsidiaries. Subsidiaries refer to enterprises or entities controlled by the Company.
A total of 17 subsidiaries of the Company were included in the scope of consolidation on June 30, 2021, as detailed in Note 8"Interests in Other Entities". The consolidation scope of the Company for the current period is same as the previous period as detailedin Note 7, "Change in Consolidation Scope".II. Preparation Basis for Financial Statements
1. Preparation Basis
Based on the assumption of going concern and according to actual transaction events, the financial statements are prepared inaccordance with the relevant provisions of Accounting Standard for Business Enterprises and the following stated SignificantAccounting Policies and Estimates.
2. Going concern
The Company has a going concern capability for 12 months from the end of the reporting period and no material matters affecting
the Company's going concern capability were found. Therefore, the financial statements are presented on a going concern basis isreasonable.
III. Significant Accounting Policies and EstimatesThe Company and its subsidiaries are engaged in the processing, production and sales of food, agricultural and sideline products,grease, oil and leisure food. According to the characteristics of actual production and operation and the provisions of relevantaccounting standards for business enterprises, the Company and its subsidiaries have formulated a number of specific accountingpolicies and accounting estimates for transactions and events such as revenue recognition. For details, please refer to the descriptionsin Note Ⅲ, 27 “Revenue". For descriptions of the significant accounting judgments and estimates made by the management, pleaserefer to Note Ⅲ, 33 “Significant Accounting Judgments and Estimates"
1. Statement of Compliance of Accounting Standards for Business Enterprises
The financial statements prepared by the Company based on the above preparation basis conform to the requirements of theAccounting Standards for Business Enterprises and their application guidelines, explanations and other relevant provisions (collectivelyreferred to as "ASBE") and truly and completely reflect the Company's financial status, operating results, cash flow and other relevantinformation.In addition, the preparation of this financial report refers to the Rules for Preparation and Reporting Information Disclosure ofCompanies Offering Securities to the Public No.15-General Provisions on Financial Reports revised by China Securities RegulatoryCommission in 2014 and the presentation and disclosure requirements in Notice on Matters Related to the Implementation of the NewAccounting Standards for Enterprises by Listed Companies (Accounting Department Letter [2018] No. 453)
2. Accounting Period and Business Cycle
The accounting period of the Company is divided into an annual period and an interim period. The accounting interim periodrefers to the reporting period shorter than a full accounting year. The fiscal year of the Company adopts the Gregorian calendar year,that is, from January 1 to December 31 of each year.
The normal business cycle is the period from the time the Company purchases assets for processing to the time when cash or cashequivalents are realized. The Company uses 12 months as an business cycle and uses it as a liquidity classification standard for assetsand liabilities.
3. Bookkeeping Standard Currency
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries operate. TheCompany and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore subsidiaries of the Companydetermine USD as their bookkeeping standard currency based on the currencies in the main economic environment in which theyoperate. 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 to form one reportingentity. Business combination can be divided into business combination under the same control and business combination under different
control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties before and after thecombination, and the control is not temporary, so it is the business combination under the same control. In case of business combinationunder the same control, the party that obtains control of other enterprises participating in the combination on the combination date shallbe the combination party, and the other enterprises participating in the combination shall be the merged party. The combination daterefers to the date on which the combination party actually acquires control over the merged party.The assets and liabilities acquired by the combination party are measured at the book value of the merged party at the date ofconsolidation, including goodwill that was formed during acquisition by end controller . If the difference between the book value ofthe net assets acquired by the merging party and the book value of the merged consideration (or the total par value of the issued shares)paid by the merging party, and the capital reserve (share capital premium) shall be adjusted; If the capital reserve (equity premium) isinsufficient to offset, the retained earnings shall be adjusted.
The direct expenses incurred by the merging party for the purpose of business combination shall be included in the profits andlosses of the current period when they are incurred.
(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple parties before and afterthe merger, the enterprise merger is not under the same control. In case of business combination under different control, the party thatobtains control of other enterprises participating in the combination on the date of purchase shall be the Purchaser, and the otherenterprises participating in the combination shall be the Purchasee. Purchase date means the date on which the Purchaser actuallyacquires control of the Purchasee.
For business combination under different control, the merger cost includes the assets, liabilities and fair value of equity securitiesissued by the Purchaser in order to obtain the control over the Purchasee on the date of purchase, and the intermediary fees such asaudit, legal service, appraisal and consultation and other management fees for the enterprise merger are used to record into the profitsand losses of the current period when incurred. The transaction costs of equity or debt securities issued by the Purchaser as a mergerconsideration are included in the initial recognition amount of the equity or debt securities. Contingent consideration involved shall beincluded in the consolidation cost at its fair value at the purchase date, and the consolidation goodwill shall be adjusted accordingly ifnew or further evidence of the existence of circumstances at the purchase date appears within 12 months after the purchase date andthe adjustment or consideration is required. The consolidation cost incurred by the Purchaser and the identifiable net assets acquiredduring the consolidation are measured at the fair value at the date of purchase. The difference between the merger costs and the fairvalue shares of the identifiable net assets of the Purchasee at the purchase date obtained in the merger is recognized as goodwill. If thecombined cost is less than the fair value of the identifiable net assets of the Purchasee in the merger, first, the fair value of the identifiableassets, liabilities and contingent liabilities of the Purchasee and the measurement of the consolidation cost shall be re-checked. If theconsolidation cost is still smaller than the fair value share of the identifiable net assets of the Purchased obtained in the consolidationafter the re-check, the difference shall be recorded into the profits and losses of the current period.
When the Purchaser acquires the deductible temporary difference of the Purchasee, if it fails to recognize the deferred income taxassets on the date of purchase because it does not meet the recognition conditions for the deferred income tax, and within 12 monthsof the date of purchase, new or further information is obtained indicating that the relevant circumstances at the purchase date alreadyexist and the economic benefits from the temporary difference deductible by the purchaser on the purchase date are expected to berealized, the relevant deferred income tax assets shall be recognized, and the goodwill shall be reduced. If the goodwill is not sufficientlyoffset, the difference shall be recognized as the current profit or loss; In addition to the above circumstances, the deferred income taxassets related to the enterprise merger are recognized and included in the current profits and losses.Through multi-transaction and step-by-step business combination under different control, according to the Circular of the Ministryof Finance on Printing and Issuing the Interpretation of Accounting Standards for Business Enterprises No.5 (CK (2012) No.19) andArticle 51 of the Accounting Standards for Business Enterprises No.33-Consolidated Financial Statements on the judgment criteria of"package deal" (see 5 (2) of Note 3), it is determined whether the multiple transactions belong to the "package deal". In the case of a"package deal", the accounting treatment shall be performed with reference to the description in the preceding paragraphs of this sectionand Note 3, 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 Purchaser prior to thepurchase date and the cost of the new investment at the purchase date shall be taken as the initial investment cost of the investment;Where the equity of the Purchased held before the date of purchase involves other comprehensive income, the other consolidatedincome associated with the investment is accounted for on the same basis as the assets or liabilities directly disposed of by the Purchaser(i.e., except for the corresponding share in the change caused by the acquisition of the net liability or net assets of the defined benefitplan remeasured in accordance with the equity method, the rest is transferred to the current investment income).
In the consolidated financial statements, the equity of the Purchased held prior to the date of purchase is remeasured according tothe fair value of the equity at the date of purchase, and the difference between the fair value and the carrying value is included in theinvestment income of the current period; Where the equity of the Purchasee held before the date of purchase involves othercomprehensive income, other consolidated income related thereto shall be accounted for on the same basis as the direct disposal of therelevant assets or liabilities by the Purchaser (i.e., except for the corresponding share in the change caused by the acquisition of the netliability or net asset of the defined benefit plan remeasured in accordance with the equity method, the rest is converted into theinvestment income of the current period 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 means that theCompany has the authority over the Investee, enjoys a variable return by participating in the relevant activities of the Investee, and hasthe ability to use its authority over the Investee to influence the amount of such return. The scope of the merger includes the Companyand all its subsidiaries. Subsidiary refers to the main body controlled by the Company.
The Company will re-evaluate the above control definitions once the relevant facts and circumstances change, which results in
the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production and operation decisionsinto the scope of the merger from the date when the subsidiary is acquired; Cease to be included in the scope of the merger as of thedate of loss of effective control. For the subsidiaries disposed of, the operating results and cash flows prior to the date of disposal havebeen appropriately included in the consolidated income statement and consolidated cash flow statement; For subsidiaries disposed ofin the current period, the opening amount of the consolidated balance sheet is not adjusted. The operating results and cash flows ofsubsidiaries increased by consolidation after purchase have been properly included in the consolidated income statement andconsolidated cash flow 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 subsidiaries increased byconsolidation under the same control from the beginning of the consolidation period to the consolidation date have been appropriatelyincluded in the consolidated profit statement and consolidated cash flow statement, and the comparative amount of the consolidatedfinancial statements has been adjusted at the same time.In the preparation of the consolidated financial statements, if the accounting policies or accounting periods adopted by thesubsidiaries are inconsistent with those adopted by the Company, necessary adjustments shall be made to the financial statements ofthe subsidiaries in accordance with the accounting policies and accounting periods of the Company. For subsidiaries acquired throughbusiness combination under different control, the financial statements shall be adjusted on the basis of the fair value of identifiable netassets at the date of purchase.All significant transaction balances, transactions and unrealized profits within the Company are offset at the time of preparationof the consolidated financial statements.The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the Company for the currentperiod are separately presented as minority shareholders' equity and minority shareholders' profit or loss in the consolidated financialstatements under shareholders' equity and net profit. The shares of minority shareholders' equity in the net profits and losses ofsubsidiaries for the current period are shown as "minority shareholders' profits and losses" under the net profit item in the consolidatedincome statement. Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the shareholders'equity of the subsidiary at the beginning of the period, and still decrease by a number of shareholders' equity.When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other reasons, the residualequity shall be revalued according to its fair value at the date of loss of control. The sum of consideration obtained from the disposalof equity and the fair value of the remaining equity minus the difference between the shares of the net assets of the original subsidiarythat shall be continuously calculated from the purchase date according to the original shareholding proportion shall be included in theinvestment income of the current period of loss of control. Other comprehensive income related to the equity investment of the originalsubsidiary, in the event of loss of control, the accounting treatment is performed on the same basis as the direct disposal of the relevantassets or liabilities by the Purchased (i.e. converted to current investment income, except for changes resulting from the re-measurementof the net liabilities or net assets of the Defined Benefit Plan in the original subsidiary). Thereafter, the residual equity shall be
subsequently measured in accordance with the relevant provisions of Accounting Standards for Business Enterprises No.2-Long-termEquity Investment or Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments,as detailed in Note Ⅲ, 13-Long-term Equity Investment or Note Ⅲ, 9-Financial Instruments.If the Company disposes of the equity investment in subsidiaries step by step until it loses control through multiple transactions.It is necessary to distinguish whether the transactions that dispose of the equity investment in subsidiaries until it loses control belongto a package deal or not. The terms, conditions and economic impact of the transactions for the disposal of equity investments insubsidiaries are in accordance with one or more of the following circumstances and generally indicate that multiple transactions shouldbe accounted for as a package deal: ① These transactions were entered into simultaneously or taking into account each other'sinfluence; ② Only when these transactions are taken together can a complete business result be achieved; ③ The occurrence of onetransaction depends on the occurrence of at least one other transaction; ④ It is not economical to consider a transaction alone, but itis economical to consider it in conjunction with other transactions. For transactions that are not part of the package deal, each transactionshall be accounted for in accordance with the principles applicable to the "partial disposal of long-term equity investments insubsidiaries without loss of control" (as detailed in 13 of Note Ⅲ) and the "loss of control over existing subsidiaries as a result of thedisposal of part of 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, the transactions shall beaccounted for as a transaction involving the disposal of subsidiaries and the loss of control; However, the difference between eachdisposal price and the share of the subsidiary's net assets corresponding to the disposal investment prior to the loss of control isrecognized in the consolidated financial statements as other consolidated gains and transferred to the profit or loss for the current periodof loss of control in the event of loss of control.
6. Classification of Joint Venture Arrangements and Accounting Treatment of Joint OperationA joint venture arrangement is an arrangement under the joint control of two or more participants. The Company divides the jointventure arrangement into joint ventures and joint ventures in accordance with the rights and obligations it enjoys in the joint venturearrangement. Joint operation refers to the joint venture arrangement in which the Company enjoys the assets related to the arrangementand assumes the liabilities related to the arrangement. A joint venture refers to a joint venture arrangement in which the Company onlyhas 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 in accordance withthe accounting policy described in Note Ⅲ, 13 "Long-term Equity Investment Accounted by the Equity Method".
The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by the Company separately, andrecognizes the assets and liabilities jointly held and assumed by the Company according to the shares of the Company; recognizes therevenue generated from the sale of the share of joint operating output enjoyed by the Company; recognizes revenue generated from thesale of output from joint operations on the basis of the Company's share; confirms the expenses incurred by the Company individuallyand the expenses incurred by the joint operation according to the shares of the Company.When the Company invests or sells assets as a joint venture (such assets do not constitute business, the same below), or purchasesassets from the joint venture, the Company recognizes only the portion of the profits and losses attributable to the other participants in
the joint venture that arises from the transaction prior to the sale of such assets to a third party. Where such assets are impaired inaccordance with the provisions of Accounting Standards for Business Enterprises No.8-Impairment of Assets, the Company shall fullyrecognize such losses in the case where the assets are cast or sold by the Company to joint operations; For the assets purchased by theCompany from the joint operation, the Company 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, andinvestments held by the Company with a short term (usually maturing within three months from the date of purchase), 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 converted into thebookkeeping functional currency amount at the spot exchange rate on the trading day, but the foreign currency exchange business ortransactions involving foreign currency exchange occurring in the Company shall be converted into the bookkeeping functionalcurrency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-monetary item
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the balance sheet date,and the exchange difference arising therefrom shall be: ① The exchange difference arising from the special foreign currencyborrowings related to the acquisition and construction of assets eligible for capitalization shall be handled in accordance with theprinciple of capitalization of borrowing costs; ② The exchange difference of the hedging instruments used for effective hedging ofthe net investment in overseas operations (the difference is included in other comprehensive income, and is not recognized as currentprofit or loss until the net investment is disposed of); ③ Except for the amortized cost, the exchange differences arising from thechanges in the book balance of the available-for-sale monetary items in foreign currencies shall be included in the other comprehensiveincome, and shall be included in the profits and losses of the current period.
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign currency monetaryitems constituting net investment in overseas operations, the exchange differences arising from exchange rate changes shall be includedin other comprehensive income; When disposing of overseas operations, the profits and losses shall be transferred to the current disposalperiod.
Non-monetary items in foreign currencies measured at historical cost shall still be measured at the bookkeeping amount infunctional currency translated at the spot exchange rate on the transaction date. For non-monetary items in foreign currencies measuredat fair value, the spot exchange rate at the date of fair value determination shall be adopted for conversion. The difference between theconverted amount in functional currency and the amount in original functional currency shall be treated as the change in fair value(including the change in exchange rate), and shall be recorded into the profits and losses of the current period or recognized as othercomprehensive income.
(3) Translation method for financial statements in foreign currencies
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign currency monetaryitems constituting net investment in overseas operations, the exchange differences arising from exchange rate changes shall be as"foreign currency report conversion difference" and be confirmed as other comprehensive income; When disposing of overseasoperations, the profits and losses shall be transferred to the current disposal period.The foreign currency financial statements of overseas operations shall be converted into RMB statements in the following ways:
the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; Except for"undistributed profits", other items of shareholders' equity shall be converted at the spot exchange rate at the time of occurrence. Theincome and expense items in the profit statement shall be converted at the average exchange rate of the current period on the date oftransaction. The undistributed profit at the beginning of the period shall be the undistributed profit at the end of the period convertedfrom the previous year; The undistributed profits at the end of the year shall be calculated and listed according to the converted profitsdistribution items; The difference between the converted asset items and the total amount of the liability items and shareholders' equityitems shall be recognized 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 related to the overseasoperations as shown below in the shareholders' equity items in the balance sheet shall be transferred to the profits and losses of thedisposal period in whole or in proportion to the disposal of the overseas operations.
Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average exchange rate of thecurrent period on the date of occurrence of the cash flows. The effect of exchange rate changes on cash shall be presented separatelyin the statement of cash flows as an reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the prior-period financialstatements.
When disposing of all the owner's equity of the Company's overseas operations or losing the control over overseas operations dueto the disposal of part of the equity investment or for other reasons, if the following items of shareholders' equity in the balance sheetare shown below, the balance in translation of the foreign currency statement attributable to the owner's equity of the parent Companyrelated to the overseas operation shall be transferred to the profits and losses of the current disposal period.
In the event that the proportion of overseas business interests is reduced due to the disposal of part of the equity investment or forother reasons, but the control over overseas business operations is not lost, the balance in the translation of the foreign currencystatements related to the disposal of part of overseas business operations shall be attributed to minority shareholders' interests and shallnot be transferred to the profits and losses of the current period. When disposing of part of the equity of an overseas operation as anassociated enterprise or a joint venture, the balance of the translation of the foreign currency statements related to the overseas operationshall be transferred into the profits and 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 instrument contract.
(1) Classification, confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow characteristics of financial assets, theCompany divides financial assets into: Financial assets measured at amortized cost. Financial assets measured at fair value with changesincluded in other comprehensive income. Financial assets that are measured at fair value and whose movements are included in the
current profits and losses.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value and whose changes areincluded in current profits and losses, relevant transaction costs are directly included in current profits and losses. For other types offinancial assets, relevant transaction costs are included in the initial recognition amount. Accounts receivable or notes receivable arisingfrom the sale of products or the provision of labor services that do not contain or take into account significant financing componentsshall be initially recognized by the Company in accordance with the amount of consideration that the Company is expected to beentitled 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 collecting contractual cashflow, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements, that is,the cash flow generated on a specific date is only the payment of principal and interest based on the unpaid principal amount. For suchfinancial assets, the Company adopts the effective interest rate method and carries out subsequent measurement according to amortizedcost. The profits or losses arising from amortization or impairment are included into the current profits and losses.
② Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect and sell contractual cash flow, and the contractualcash flow characteristics of such financial assets are consistent with the basic lending arrangements. The Company measures thesefinancial assets at fair value and their changes are included in other comprehensive income, but impairment loss or gain, exchange gainor loss and interest income calculated according to the effective interest rate method are included into the current profit and loss.
In addition, the Company designates some non tradable equity instrument investments as financial assets measured at fair valuewith changes included in other comprehensive income. The Company shall record the relevant dividend income of such financial assetsinto the current profits and losses, and the change of fair value into other comprehensive income. When the financial asset isderecognized, the accumulated gains or losses previously included in other comprehensive income will be transferred from othercomprehensive income to retained income and will not be included in current profits and losses.
③ Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured at fair value withchanges included in other comprehensive income into financial assets measured at fair value with changes included in current profitsand losses. In addition, during initial recognition, in order to eliminate or significantly reduce accounting mismatch, the Companydesignated part of financial assets as financial assets measured at fair value with changes included in current profit and loss. For suchfinancial assets, the Company adopts fair value for subsequent measurement, and the changes in fair value are included into the currentprofit and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair value and whosechanges are included in current profits and losses and other financial liabilities. For the financial liabilities measured at fair value withthe changes included into the current profits and losses, the relevant transaction costs are directly included into the current profits and
losses, and the relevant transaction costs of other financial liabilities are included in the initial recognition amount.
① Fair value through Profit and Loss Financial liabilities
Financial liabilities measured at fair value with changes included in current profits and losses, which include transactional financialliabilities (including derivatives belonging to financial liabilities) and financial liabilities designated to be measured at fair value withchanges included in current profits and losses at initial recognition.Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently measured according to theirfair values. Except for those related to hedge accounting, changes in fair values are included in current profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits and losses. Changes in thefair value of this liability caused by changes in the Company's own credit risk are included in other comprehensive income. When theliability is derecognized, the accumulated change in fair value caused by changes in its own credit risk included in other comprehensiveincome is transferred to retained earnings. Changes in fair value are accounted into current profits and losses. If the above-mentionedtreatment of the impact of changes in the credit risk of these financial liabilities will cause or expand accounting mismatch in profitsand losses, the Company will include all profits or losses of the financial liabilities (including the impact amount of changes in thecredit risk of the enterprise itself) 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 do not meet theconditions for termination of recognition or continue to be involved in the transferred financial assets, other financial liabilities areclassified as financial liabilities measured at amortized cost and subsequently measured at amortized cost. Gains or losses arising fromtermination of recognition or amortization are included in current profits and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ① The termination of the contractual rightto receive cash flow from the financial asset. ② The financial asset has been transferred, and almost all risks and rewards related tothe ownership of the financial asset have been transferred to the transferee. ③ The financial asset has been transferred. Although theenterprise has neither transferred nor retained almost all risks and rewards in the ownership of the financial asset, it has given up itscontrol over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financial assets, and does notgive up the control over the financial assets, the relevant financial assets shall be recognized according to the extent of continuousinvolvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly. The degree of continuousinvolvement in the transferred financial assets refers to the risk level faced by the enterprise due to the change in the value of thefinancial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between the book valueof the transferred financial assets and the sum of the consideration received due to the transfer and the accumulated amount of changesin fair value originally included in other comprehensive income shall be included into the current profits and losses.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of the transferred
financial assets shall be apportioned according to its relative fair value between the derecognized part and the non derecognized part,and the difference between the sum of the consideration received due to the transfer and the accumulated change in fair value originallyincluded in other comprehensive income that shall be apportioned to the derecognized part and the allocated aforesaid book amountshall 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 todetermine whether almost all risks and rewards in the ownership of the financial assets have been transferred. If almost all risks andrewards in the ownership of the financial asset have been transferred to the transferee, the recognition of the financial asset shall beterminated. If almost all risks and rewards on the ownership of a financial asset are retained, the recognition of the financial asset shallnot be terminated. If almost all risks and rewards related to the ownership of financial assets have not been transferred or retained, itshall continue to judge whether the enterprise retains control over the assets and carry out accounting treatment according to theprinciples mentioned in the preceding paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved, the Company terminates the recognition ofthe financial liability (or part thereof). The Company (the borrower) and the lender sign an agreement to replace the original financialliabilities by assuming new financial liabilities. If the contract terms of the new financial liabilities and the original financial liabilitiesare substantially different, the original financial liabilities shall be derecognized and a new financial liability shall be recognized at thesame time. If the Company makes any substantial modification to the contract terms of the original financial liability (or part thereof),the original financial liability shall be derecognized and a new financial liability shall be recognized in accordance with the modifiedterms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference between its book value and theconsideration paid (including transferred non-cash assets or liabilities assumed) into the current profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial liabilities, and such legalright is currently enforceable, and the Company plans to settle the financial assets on a net basis or realize the financial assets and settlethe financial liabilities at the same time, the financial assets and financial liabilities are listed in the balance sheet at a net amount aftermutual offset. In addition, financial assets and financial liabilities shall be listed separately in the balance sheet and shall not be offsetagainst each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderlytransaction on the measurement date. Where there is an active market for financial instruments, the Company adopts quotations in theactive market to determine their fair values. Quoted price in active market refers to the price easily obtained from exchanges, brokers,industry associations, pricing service agencies, etc. on a regular basis, and represents the price of market transactions actually occurredin fair trading. If there is no active market for financial instruments, the Company uses evaluation techniques to determine their fairvalues. Evaluation techniques include reference to prices used in recent market transactions by parties familiar with the situation and
willing to trade, reference to current fair values of other financial instruments that are substantially the same, discounting cash flowtechnique, option pricing model, etc. In valuation, the Company adopts valuation techniques that are applicable under currentcircumstances and are supported by sufficient available data and other information, selects input values that are consistent with thecharacteristics of assets or liabilities considered by market participants in transactions related to assets or liabilities, and gives priorityto the use of relevant observable input values as much as possible. If the relevant observable input value cannot be obtained or it is notimpracticable to obtain it, the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets after deducting allliabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity instruments by the Company are treated aschanges in equity, and transaction costs related to equity transactions are deducted from equity. The Company does not recognizechanges in the fair value of equity instruments.Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the Company's equityinstruments 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 at amortized cost anddebt instrument investment measured at fair value with changes included in other comprehensive income, mainly including notesreceivable, accounts receivable, other receivables, debt investment, other debt investment, long-term receivables, etc. In addition, forsome financial guarantee contracts, impairment reserves and credit impairment losses are also accrued in accordance with theaccounting policies described in this part.
(1) Recognition method of impairment provision
On the basis of expected credit losses, the Company sets aside impairment reserves and recognizes credit impairment losses forthe above items according to the applicable expected credit loss measurement method (general method or simplified method).
Credit loss refers to the difference between all contractual cash flows receivable according to the contract and all cash flowsexpected to be collected by the Company discounted according to the original actual interest rate, i.e. the present value of all cashshortages. Among them, for the financial assets that have been purchased or incurred credit impairment, the Company discounts themaccording to the actual interest rate adjusted by credit.
The general method of measuring expected credit loss refers to the Company's assessment of whether the credit risk of financialassets has increased significantly since the initial recognition on each balance sheet date. If the credit risk has increased significantlysince the initial recognition, the Company will measure the loss reserve by an amount equivalent to the expected credit loss during theentire period. If the credit risk has not increased significantly since the initial recognition, the Company will measure the loss reserveaccording to the amount equivalent to the expected credit loss in the next 12 months. In assessing the expected credit loss, the Companytakes into account all reasonable and evidence-based information, including forward-looking information.
For financial instruments with low credit risk on the balance sheet date, the Company measures the loss reserve based on the
expected credit loss amount within the next 12 months or the entire duration according to whether the credit risk has increasedsignificantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognitionIf the default probability of a certain financial asset in the expected duration determined at the balance sheet date is significantlyhigher than the default probability in the expected duration determined at the time of initial recognition, it indicates that the credit riskof the financial asset is significantly increased. Except for special circumstances, the Company uses the change of default risk in thenext 12 months as a reasonable estimate of the change of default risk in the entire duration to determine whether the credit risk hasincreased significantly since the initial recognition.Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk of the financial instrumenthas increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not increasedsignificantly since the initial recognition.
The Company will consider the following factors when evaluating whether the credit risk has increased significantly1） Whether there is any significant change in the actual or expected operating results of the debtor;2） Whether there is any significant adverse change in the regulatory, economic or technological environment of the debtor;3） Whether there is any significant change in the value of the collateral or the quality of the guarantee or credit enhancementprovided by the third party, which are expected to reduce the economic motivation of the debtor's repayment according to the time limitstipulated in the contract or affect the probability of default;
4） Whether there is any significant change in the expected performance and repayment behavior of the debtor;5） Whether there is any significant change in the Company's credit management methods for financial instruments, etc.On the balance sheet date, if the Company judges that the financial instrument has only low credit risk, the Company assumes thatthe credit risk of the financial instrument has not increased significantly since the initial recognition. If the default risk of a financialinstrument is low, the borrower's ability to perform its contractual cash flow obligations in a short period of time is strong, and even ifthere are adverse changes in the economic situation and operating environment for a long period of time, it may not necessarily reducethe borrower's ability to perform its contractual cash obligations, then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset, the financial asset becomesa financial asset with credit impairment. The evidence of credit impairment of financial assets includes the following observableinformation:
1）The issuer or debtor has major financial difficulties;
2）The debtor violates the contract, such as default or overdue payment of interest or principal, etc.;
3）The creditor gives concessions that the debtor will not make under any other circumstances due to economic or contractualconsiderations related to the debtor's financial difficulties;
4）The debtor is likely to go bankrupt or undergo other financial restructuring;
5）The active market of the financial assets disappears due to the financial difficulties of the issuer or the debtor;
6）Purchase or generate a financial asset at a substantial discount, which reflects the fact that credit losses have occurred.
Credit impairment of financial assets may be caused by the combined action of multiple events, but may not be caused byseparately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks, such as: Accounts receivable withrelated parties. Receivables in dispute with the other party or involving litigation or arbitration. Receivables with obvious signs thatthe debtor is likely to be unable to perform the repayment obligation.
In addition to the financial assets with individual credit risk assessment, the Company divides the financial assets into differentgroups based on the common risk characteristics. The common credit risk characteristics adopted by the Company include: Credit riskshall be assessed on the basis of the aging portfolio, the receivables portfolio between the final controlling party and its subordinateunits, the public maintenance fund and house selling fund portfolio deposited in the housing provident fund management center, thedeposit/margin portfolio, and the petty cash ledger portfolio formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the estimated creditlosses are greater than the book amount of its current impairment reserve, the difference is recognized as impairment loss. If it is lessthan the carrying amount of the current impairment reserve, the difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
①Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount equivalent to the entireduration. Based on the credit risk characteristics of bills receivable, they are divided into different portfolios:
| Item | Basis for determining portfolio |
| Bank acceptance bills | The acceptor is a bank with less credit risk |
| Commercial acceptance bill | According to the acceptor's credit risk classification, it should be the same as the "receivable" portfolio classification. |
Item
| 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 | Referring to the historical credit loss experience, combined with the current situation and the forecast of future economic conditions, the expected credit loss is calculated thr-ough the default risk exposure and the expected credit loss rate within the next 12 months or the entire duration, and the expected credit loss rate of the portfolio is zero. |
| The portfolio of public maintenance funds and house sales funds deposited into the MPF Management Center | |
| Deposit/margin portfolio | |
| The portfolio of reserve fund ledger formed by the Company's staff loan. |
| 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 |
| Aging | Expected loss rate of notes receivable (%) | Expected loss rate of accounts receivable (%) | Expected loss rate of other receivables (%) |
| Accounts receivable between the final controlling party and its subordinate u | 0 | 0 | 0 |
| Public maintenance fund and house sale fund deposited into MPF Management Center | 0 | 0 | 0 |
Aging
| Aging | Expected loss rate of notes receivable (%) | Expected loss rate of accounts receivable (%) | Expected loss rate of other receivables (%) |
| Deposit/margin | 0 | 0 | 0 |
| The reserve fund ledger formed by the Company's staff loan. | 0 | 0 | 0 |
disposed portfolio in similar transactions; the Company has already decided on the sale plan and obtained confirmed purchasecommitment; the sale is scheduled to be completed within one year. Among them, a Disposal Portfolio refers to a group of assets thatwill be disposed of as a whole 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 allocated goodwill acquiredin business merger in accordance with Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the Disposal Portfolioshall include the goodwill allocated to it.
In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated as held-for-sale categoryis higher than the net amount of fair value less sales expenses when the non-current asset or to-be-disposed portfolio is initiallymeasured or measured on the balance sheet date, the book value shall be to the net amount of fair value minus sales expenses, and thewritten-down amount shall be recognized as asset impairment loss and included in current period profit or loss. The provision forimpairment loss of the held-for-sale asset shall be accrued. For a Disposal Portfolio, the confirmed impairment loss shall deduct thebook value of the goodwill in the Disposal Portfolio, then deduct the book value of the non-current assets determined by themeasurement on a pro-rata basis in accordance with the applicable Accounting Standards for Business Enterprises No. 42 held-for-salenon-current assets, Disposal Portfolio and Termination of Operations (hereinafter referred to as the “Guide for Held-For-Sale”). In theevent of an increase of the book value of the held-for-sale Disposal Portfolio minus sales expenses on the subsequent the balance sheetdate, the amount previously written down shall be recovered and be reversed within the mount of the asset impairment loss recognizedin the non-current assets measured by the measurement “Guide for Held-For-Sale” after being classified as held for sale asset, thereversal amount shall be included in the current period profit or loss, and the book value of all non-current assets (except for goodwill)determined by the measurement on a pro-rata basis in accordance with the applicable “Guide for Held-For-Sale” shall be increased ona pro-rata basis. The book value of the goodwill that has been deducted and the impairment loss of the assets recognized before theclassification of the held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall not be reversed.In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio, there is no accrual or amortization fordepreciation, and the interest from and other expenses from the liabilities in held-for-sale Disposal Portfolio shall still be recognized.When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category, non-current asset orDisposal Portfolio will no longer be classified as Held-For-Sale category by the Company or the non-current asset will be removedfrom the Held-For-Sale Disposal Portfolio, and be measured based on one of the following two values, whichever is lower: (1) Thebook value before being classified as held-for-sale category adjusted based on the depreciation, amortization or impairment that shouldhave be confirmed if it is not classified as held-for-sale category; (2) recoverable amount.
13. Long-term equity investment
The long-term equity investment refers to in this part refers to the long-term equity investment that the Company has control, jointcontrol or significant influence on the invested entity. The long-term equity investment of the Company that does not have control,joint control or significant impact on the investee shall be accounted as a financial asset measured at fair value with its changes includedinto the current profits and losses. Among them, if it is non-transactional, the Company may choose to designate it as a financial assetmeasured at fair value and its changes are included in the accounting of other comprehensive income at the time of initial recognition.
For details of its accounting policies, please refer to Note Ⅲ, 9 “Financial Instruments".Joint control refers to the control that the Company shares with other party/parties for an arrangement in accordance with relevantagreements, and relevant activities of the arrangement can only be decided based on the consensus of all parties sharing the controlrights before making a decision. Significant Influence refers to power of the Company to participate in the decision-making of thefinancial and operating policies of the investee, but the Company cannot control or jointly control the development of these policieswith other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control, the apportioned share ofthe book value in the final controller's consolidated financial statements on the combination date in accordance with the shareholders'equity shall be the initial investment cost of the long-term equity investment. The capital reserve shall be adjusted subject to thedifference between the initial investment cost of the long-term equity investment and the cash paid, the non-cash assets transferred,and the book value of the debts assumed; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted.Where the equity securities are issued as merger consideration, the apportioned share of the book value in the final controller'sconsolidated financial statements on the combination date in accordance with the shareholders' equity shall be the initial investmentcost of the long-term equity investment, and the total par value of the issued shares is taken as the share capital. The capital reserveshall be adjusted subject to the difference between the initial investment cost of the long-term equity investment and the total par valueof the shares issued; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity ofcombined parties under the same control is obtained through multiple transactions and a business combination under the same controlis formed finally, it shall be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal”, alltransactions will be treated as a transaction that obtains control. If it is not a “package deal”, the apportioned share of the book valuein the final controller's consolidated financial statements on the combination date in accordance with the shareholders' equity shall bethe initial investment cost of the long-term equity investment. The capital reserve shall be adjusted subject to the difference betweenthe initial investment cost of the long-term equity investment and the sum of the book value of long-term equity investment beforecombination date and the book value of the new consideration for the new share on the combination date. If the capital reserve isinsufficient for offsetting, the retained earnings shall be adjusted. The equity investments that are held prior to the combination dateand are recognized with equity recognized or as available-for-sale financial asset as other comprehensive income will not be givenaccounting treatment for the moment.For a long-term equity investment obtained from a combination of businesses not under the same control, the initial investmentcost of the long-term equity investment shall be based on the combination cost on the purchase date. The combination cost includesthe assets paid by purchaser, the liabilities incurred or assumed, and the sum of the fair value of issued equity securities. Where theequity of combined parties not under the same control is obtained through multiple transactions and a business combination under thesame control is formed finally, it shall be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal”,all transactions will be treated as a transaction that obtains control. If it is not a “package deal”, the initial investment cost of the long-term equity investment calculated by the cost method shall be calculated based on the sum of the book value of the equity investment
in the original holder and the new investment cost. The original share holding that measured using equity method, the relevant othercomprehensive income does temporarily not conduct accounting treatment.Intermediary expenses such as for auditing, legal services, assessment and other related expenses incurred by a combining partyor a purchaser for business combination shall be recognized in current period profit or loss when incurred.The equity investments other than formed by business combination shall be initially measured at cost. The cost will be determinedbased on the following amount according to different methods of the acquisition of long-term equity investment: the purchase price incash actually paid by the Company; the fair value of the equity securities issued by the Company, the value agreed in relevant investmentcontract or agreement; the fair value or original book value of the assets exchanged in non-monetary asset exchange transaction; thefair value of the long-term equity investment itself. Any expenses, taxes and other necessary expenses directly related to the acquisitionof long-term equity investments shall also be included in the cost of investment. The cost of long-term equity investment for theadditional investment that can exert significant influence on investee or implement joint control but does not constitute control shallbe the sum of the fair value of the originally held equity investment recognized in accordance with the Accounting Standards forBusiness Enterprises No.. 22 – Recognition and Measurement of Financial Instruments and the cost for new investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control over the invested entity(except for those constituting joint operators) or have significant impact on the invested entity. In addition, the Company's financialstatements use the Cost Method to account for long-term equity investments, which can control the long-term equity investment of theinvestee.a. Long-term equity investment based on Cost MethodWhen accounting with Cost Method, long-term equity investment is priced at the initial investment cost, and the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the actual payment at the time of obtaininginvestment or the cash dividends or profits included in the consideration but not yet issued, the current investment income shall berecognized according to the cash dividends or profits declared by the investee.b. Long-term equity investment accounted for by Equity MethodWhen accounting with Equity Method, if the initial investment cost of a long-term equity investment is greater than the fair valueshare of the identifiable net assets of the investee when investing, and the initial investment cost of the long-term equity investmentshall not be adjusted; if the initial investment cost is less than the fair value share of the identifiable net assets of the investee wheninvesting, the difference shall be included in the current profit and loss, and the cost of the long-term equity investment shall be adjustedWhen accounting with Equity Method, the investment income and other comprehensive income are recognized separatelyaccording to the shares of the net profit or loss and other comprehensive income that should be enjoyed or shared, and the book valueof the long-term equity investment should be adjusted at the same time. The book value of long-term equity investment is reducedaccordingly by calculating the share that should be enjoyed according to the profit or cash dividend declared by the investee. The bookvalue of long-term equity investment shall be adjusted and included in the capital reserve for other changes in the owner's rights and
interests of the invested entity other than the net profit and loss, other comprehensive income and profit distribution. When confirmingthe share of the net profit and loss of the investee, the net profit of the investee shall be adjusted and confirmed on the basis of the fairvalue of the identifiable assets of the investee at the time of investment. If the accounting policies and periods adopted by the investedentity are inconsistent with the Company, the financial statements of the invested entity shall be adjusted in accordance with theaccounting policies and periods of the Company, and the investment income and other comprehensive income shall be confirmedaccordingly. For the transactions between the Company and the associates and joint ventures, the assets invested or sold do notconstitute a business, and the unrealized gains and losses from internal transactions are offset against the portion of the Company thatis attributable to the proportion of the shares, on this basis. investment profit and loss should be confirmed. However, the unrealizedinternal transaction losses incurred by the Company and the investee are not included in the impairment losses of the transferred assets.Where the assets invested by the Company into a joint venture or an associates constitute a business, if the investor obtains long-termequity investment but does not control, the fair value of the invested business shall be deemed as the initial investment cost of the newlong-term equity investment, and the difference between the initial investment cost and the book value of the invested business is fullyrecognized in the current profits and losses. If the assets sold by the Company to a joint venture or an associate that constitute a business,the difference between the consideration value obtained and the book value of the business shall be fully recognized in the profits andlosses 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 investmentand other long-term equity that substantially constitutes the net investment of the investee are reduced to zero. In addition, if theCompany has an obligation to bear additional losses to the investee, the estimated liabilities shall be recognized according to theestimated obligations and included in the current investment losses. If the investee achieves net profit in the following period, theCompany shall resume recognizing the share of income after making up for the unrecognized share of loss.For the long-term equity investment in the joint ventures and associates held by the Company for the first time before theimplementation of the new accounting standards, if there is a debit balance of equity investments related to the investment, the currentprofits and losses shall be accounted for by the straight-line amortization of the original remaining period.c. Acquisition of Minority EquityIn the preparation of the consolidated financial statements, if the difference between the long-term equity investment added bypurchasing minority shares and the net assets share that should be continuously calculated by the subsidiary Company from the purchasedate (or the consolidation date) is calculated according to the proportion of newly added shares, the retained earnings shall be adjusted;and if the capital reserve is insufficient to offset, the retained earnings shall be adjusted.d. Disposal of long-term equity investmentIn the consolidated financial statements, the parent Company partially of disposes of the long-term equity investment of thesubsidiary without losing control, the difference of the corresponding net assets in the subsidiary between the disposal price and thedisposal of the long-term equity investment is included in the shareholders' equity. it shall be treated in accordance with the relevantaccounting policies described in “Notes on the preparation of consolidated financial statements” in Note Ⅲ.5 .For the disposal of long-term equity investment in other cases, the difference between the book value of the disposed equity and
the actual acquisition price shall be included in the current profits and losses.If the long-term equity investment is accounted for by equity method, the remaining equity after disposal is still accounted for byequity method, when disposing, the other comprehensive income which were originally included in shareholder's rights and interestsshall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee. The owner's equity recognizedas a result of changes in the owner's equity of the investee other than net profit or loss, other comprehensive income and profitdistribution, it should be carried forward to the current profit and lossFor the long-term equity investment accounted by Cost Method, the remaining equity is still accounted by Cost Method afterdisposal, other comprehensive income that recognized by equity method accounting or financial instrument recognition andmeasurement criteria accounting before obtaining control over the investee shall be accounted for on the same basis as the assets orliabilities directly disposed of by the investee, and shall be settled to the current profit and loss in proportion. Changes of the net assetsof investee in the owner's equity other than net profit or loss, other comprehensive income and profit distribution 's that recognized byequity method shall be settled to the current profit and loss in proportion.Where the Company loses control over the investee due to disposal of part of its equity investment, when preparing individualfinancial statements, if the remaining equity after disposal can exercise joint control or exert significant influence on the investee, itshall be accounted for by equity method instead, and the remaining equity shall be adjusted by accounting by equity method when it isdeemed to be acquired. If the remaining equity after disposal cannot be jointly controlled or exerts significant influence on the investee,it shall be accounted for according to the relevant provisions of the financial instrument recognition and measurement criteria, and thedifference between the fair value and the book value on the date of loss of control. It is included in the current profit and loss. Beforethe Company obtains 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 treatmentbased on the same basis as the investee directly disposes of related assets or liabilities when the control of the investee is lost,Accounting is treated on the same basis as the liabilities. Changes in the owner's equity other than net profit or loss, other comprehensiveincome and profit distribution of the investee's net assets recognized by the equity method are carried forward to the current profit orloss when the control of the investee is lost. Among them, the remaining equity after disposal is accounted for using the equity method.Where the remaining equity after disposal is accounted for by equity method, other comprehensive income and other owner's equityshould be settled by proportion. If the remaining equity is accounted for using financial instrument recognition and measurementstandard, all of other comprehensive income and other shareholder’s equity should be settled.If the Company loses its joint control or significant influence on the investee due to the disposal of part of the equity investment,the remaining equity after disposal shall be accounted for according to the financial instrument recognition and measurement criteria,and the difference between the fair value and the book value on the date of loss of joint control or significant influence is recognisedin the current profit or loss. The other comprehensive income recognized in the original equity investment by the equity method isaccounted for on the same basis as the investee's direct disposal of related assets or liabilities when the equity method is terminated,Owner's equity recognized as a result of changes in other owners' equity other than net profit or loss, other comprehensive income andprofit distribution of the investee should be transferred to current investment income when terminating the equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions until the loss ofcontrol. If the above-mentioned transactions are part of a package transaction, the transactions are treated as a transaction dealing withthe equity investment of the subsidiary and losing control. The difference between the book value of each long-term equity investmentcorresponding to the disposal price and the disposal of the equity before loss of control is first recognized as other comprehensiveincome, and when the control is lost, it is transferred to the current profit and loss of loss of control.
14. Investment Property
Investment Property refers to property held for the purpose of earning rent or capital appreciation, or both, including land userights that have been leased, land use rights that are held and prepared for transfer after appreciation, and buildings that have beenrented. Investment property is initially measured at cost. The expenses related to investment property, if the economic benefits relatedto this asset are highly probable to flow into the Company and the cost can be measured reliably, then the expense will account for asthe cost of investment property. Other expenses are accounted for in profit and loss when incurred.
The Company adopts the cost model to conduct subsequent measurement of investment property and depreciation or amortizationaccording to the policy consistent with the building or land use rights.
For details of the impairment test method and impairment provision method of property, please refer to Note Ⅲ. 21 “Long-TermAsset Impairment”.
When the self-use property or inventory is converted into investment property or investment property is converted into self-useproperty, the book value before conversion is used as the recorded value after conversion.
When the use of investment property is changed to self-use, the investment property is converted into fixed assets or intangibleassets from the date of change. When the use of self-use property changes to earn rent or capital appreciation, the fixed assets orintangible assets are converted into investment property from the date of change. In the case of investment property measured by thecost model when the conversion occurs, the book value before conversion is used as the entry value after conversion; if it is convertedinto investment property measured by the fair value model, the fair value of the conversion date is used as the entry value afterconversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected to obtain economic benefitsfrom its disposal, the confirmation of the investment real estate shall be terminated. Disposal income from the sale, transfer, retirementor damage of investment properties is charged to the current profit and loss after deducting its book value and related taxes and fees.
15. Fixed Assets
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services, renting or operatingmanagement, and having a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefitsassociated with them are likely to flow into the Company and their costs can be reliably measured. Fixed assets are initially measuredat cost and taking into account the impact of projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following the scheduledavailability. The service life, estimated net residual value and annual depreciation rate of various fixed assets are as follows:
| Category | Depreciation Method | Depreciation period (Year) | Net esidual rate(%) | Annual depreciation rate (%) |
| Buildings | straight-line depreciation | 8-50 | 5 | 1.90— 11.88 |
| uipElectronic eqment | 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 facility | 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 |
disposal. The difference between the disposal income from the sale, transfer, retirement or damage of the fixed assets less the carryingamount and related taxes is recognized in profit or loss for the current period.The Company reviews the useful life, estimated net residual value and depreciation method of fixed assets at least at the end ofthe year, and changes as an accounting estimate if changes occur.
16. Construction in progress
The cost of construction in progress is determined based on actual project expenditure, including various project expendituresincurred during the construction period, capitalized borrowing costs before the project reaches the expected usable status, and otherrelated expenses. Construction in progress is carried forward to fixed assets when it is ready for its intended use.
For details of the impairment test method and impairment provision method for construction in progress, please refer to Note Ⅲ.21 “Long-Term Asset Impairment”.
17. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses, and exchangedifferences arising from foreign currency borrowings. Borrowing costs directly attributable to the acquisition, construction orproduction of assets eligible for capitalization, capitalization is began when asset expenditures have occurred, borrowing costs haveoccurred, and the acquisition, construction or production activities necessary to bring the assets to the intended usable or saleable statehave begun. And capitalization is stopped when the assets under construction or production that meet the capitalization conditions areready for their intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in which theyare incurred.
The interest expenses actually incurred in the current period of special borrowings shall be capitalized after subtracting the interestincome from the unused borrowing funds deposited into the bank or the investment income obtained from the temporary investment.For the general borrowings, according to the accumulated asset expenditures exceed the special borrowings. The capitalization amountis determined by multiplying the weighted average of which accumulated asset expenditure exceeds the asset expenditure of the specialborrowing portion by the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weightedaverage interest rate of general borrowings.
During the capitalization period, the exchange differences of foreign currency special borrowings are all capitalized; the exchangedifferences of foreign currency general borrowings are included in the current profit and loss.
Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventories that require a substantialperiod of acquisition, construction or production activities to achieve the intended use or sale status.
If the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or production process andthe interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended until the acquisition,construction or production of the assets resumes.
18. Right of use assets
Right of use assets refer to the right of the Company, as a lessee, to use the leased assets during the lease term.
(1) Initial measurement: At the beginning of the lease term, the Company shall make the initial measurement of right of use assetsaccording to the cost. The cost includes the following four items: ①the initial measured amount of the lease liability. ②the amountof the lease payment made at or before the beginning of the lease term, where there is a lease incentive, the relevant lease incentivethat have been enjoyed shall be deducted.③the incurred initial direct expenses is the incremental costs in the conclusion of the lease.
④the expected costs to dismantle and remove the leased assets, restore the site where the leased assets are located, or the restore of theleased assets to the agreed status in the lease terms, excluding from having occurred for the production of inventory.
(2) Subsequent measurement: After the beginning of the lease term, the Company adopts the cost model to make subsequentmeasurement of the right of use assets, that is, to measure the right of use assets by cost reducing accumulated depreciation andaccumulated impairment losses. The Company shall adjust the book value of the right of use assets as the relevant provision of thelease guidelines.
From the beginning of the lease term, the Company shall depreciate the assets of the right of use. The right of use assets usuallydepreciated at the beginning of the month in the lease term. According to the purpose of the right of use, the amount of depreciationcharge to the cost of the relevant assets or the current profit and loss. In determining the method of deprecation of the right of use assets,the Company shall make a decision on the manner of expected consumption of the economic benefits associated with the right of useassets, and shall depreciate the right of use assets in a straight line method. The Company follow the principles on determining thedepreciation life of the right of use assets. If it is reasonable to determine the ownership of the leased assets at the end of the lease term,deprecation shall be accrued for the remaining service life of the leased assets, and if not, deprecation shall be accrued on the shorterterm between the lease term and the remaining service life of the leased assets.
In the event of impairment of the right of use assets, the Company shall make subsequent depreciation in accordance with thebook value of the right of use assets after deducting the impairment losses.
The Company has chosen not to confirm the right of use assets and lease liabilities for short-term lease (leases with a lease termof not exceeding 12 months) and low-value asset leases, and to charge the relevant lease payments to the current profit and loss orrelated asset costs in a straight line method for each period of the lease term.
19. Intangible assets
(1) Intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the Company.
Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost of intangible assetsif the relevant economic benefits are likely to flow to the Company and its costs can be measured reliably. Expenditure on other itemsother 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 building constructioncosts of self-developed and constructed buildings are accounted for as intangible assets and fixed assets, respectively. In the case ofpurchased houses and buildings, the relevant price is distributed between the land use rights and the buildings. If it is difficult to allocatethem 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 net residual valueand the accumulated amount of impairment reserve shall be amortized by the straight-line method during their expected service life.Intangible assets with uncertain service life shall not be amortized.Among them, the useful life and amortization method of intellectual property are as follows:
| Item | Amortization period (year) | Amortization method |
| Trademark | 20 | Straight-line method |
periods with amortization period of more than one year. The Company's long-term deferred expenses mainly include lease of land useright and renovation costs of factory building. Long-term deferred expenses are amortized on a straight-line basis over the estimatedbenefit period.
21. Long-term assets impairment
For fixed assets, construction in progress, intangible assets with limited useful life, investment property measured by cost model,and non-current non-financial assets such as long-term equity investments in subsidiaries, joint ventures and associates, the Companydetermines whether there is any indication of impairment on the balance sheet date. If there is any indication of impairment, therecoverable amount is estimated and the impairment test is carried out. Goodwill, intangible assets with uncertain service life andintangible assets that not yet ready for use are tested for impairment annually, regardless of whether there is any indication ofimpairment.If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value, the impairmentprovision is made based on the difference and is included in the impairment loss. The recoverable amount is the higher of the fair valueof the asset less the disposal expense and the present value of the estimated future cash flow of the asset. The fair value of assets isdetermined according to the sale agreement price in a fair transaction. If there is no sales agreement but there is an active market forthe asset, the fair value is determined according to the buyer's bid for the asset; if there is neither sales agreement nor active market forassets, the fair value of assets shall be estimated based on the best information available. Asset disposal expenses include legal fee,taxes, transportation expenses and direct expenses incurred to make assets saleable. The present value of the estimated future cash flowof an asset is determined by the appropriate discount rate discounting and the estimated future cash flow generated by the asset duringits continuous use and final disposal. The asset impairment provision is calculated and confirmed based on individual assets. If it isdifficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset is determined by the asset groupwhich the asset belongs to. An asset group is the smallest portfolio of assets that can generate cash inflows independently.The book value of the goodwill listed separately in the financial statements is amortized into asset groups or portfolios that areexpected to benefit from the synergies of business combinations when impairment tests are conducted. The test results show that therecoverable amount of the asset group or portfolio containing the assessed goodwill is lower than its book value, the correspondingimpairment losses should be confirmed. The amount of impairment loss is first deducted from the book value of the goodwill amortizedto the asset group or portfolio, and then deducted proportionally from the book value of other assets according to the proportion of thebook value of assets other than goodwill in the asset group or portfolio.Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value is restored in the futureperiod.
22. Employee Compensation
The Company's employee compensation mainly includes short-term employee remuneration, Post-employment Benefits,Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees remuneration mainly includes wages, bonuses, allowances and subsidies, employee welfare fees, medicalinsurance premiums, maternity insurance premiums, work injury insurance premiums, housing fund, labor union funds, employee
education funds, and non-monetary benefits. The Company recognizes the actual short-term employee's remuneration as a liability inthe accounting period in which employees provide services to the Company and recognizes them in profit or loss or related asset costs.Non-monetary benefits are measured at fair value.Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities. The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a Defined Contribution Plan isadopted, the corresponding amount of the deposit shall be included in the relevant asset cost or current profit and loss as incurred. (1)The Defined Contribution Plan is recognized as a liability based on a fixed fee paid to an independent fund and is included in thecurrent profit and loss or related asset costs; (2) The Defined Benefit Plan is accounted for using the expected cumulative benefits unitmethod Specifically, the Company will convert the welfare obligation arising from the Defined Benefit Plan into the final value of thedeparture time according to the formula determined by the expected cumulative benefits unit method; then it is attributed to theemployee's in-service period and is included in the current profit and loss or related asset cost.If the labor relationship with the employee is terminated before the employee's labor contract expires, or if the employee isencouraged to accept the reduction voluntarily, when cannot withdrawing unilaterally the dismissal benefits provided by the terminationof the labor relationship plan or the reduction proposal, and when confirming the costs associated with the restructuring involving thepayment of the dismissal benefits, whichever is earlier, the Company will recognize the employee compensation liabilities arising fromthe dismissal benefits, and included in the current profit and loss. However, if the dismissal benefits are not expected to be fully paidwithin 12 months after the end of annual reporting period, they shall be treated in accordance with other long-term employeecompensations.The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal benefits. TheCompany will pay the internal retired staff the salary and the social insurance premiums from the employee's lay-off to normalretirement, and will include in the current profit and loss (dismissal benefits) when the conditions of the estimated liabilities are met.If the other long-term employee benefits provided by the Company to the employees are in line with the Defined ContributionPlan, they shall be accounted for Defined Contribution Plan, and otherwise accounted for the Defined Benefit Plan.
22. Lease liabilities
At the beginning of the lease term, the Company recognize the present value of the non-payable lease payment as lease liabilities,without the short lease and low-value lease assets. On calculating the present of the lease payment, the Company adopt the lessee’sincremental borrowing rate as the discount rate. The Company calculates the interest expense for each period in the lease term of thelease liabilities as the discount rate and counts it towards the current profit and loss. The variable lease payments that not included inthe lease liability measurement charge to the current profit and loss on occurring. After the start of the lease term, the Companyremeasures the lease liability at the present value of the changed lease payment amount when there is a change in the actual fixedpayment amount, the index or ratio used to determine the lease payment, the evaluation results of the purchase option, the renewaloption or termination option change.
24. Estimated liabilities
When the obligations related to the contingencies meet the following conditions, they are recognized as estimated liabilities: (1)
The obligation is the current obligation assumed by the Company; (2) The performance of this obligation is likely to result in theoutflow of economic benefits; (3) The amount of the obligation can be reliably measured.
On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money related to contingencies,the estimated liabilities are measured in accordance with the best estimate of the expenditure required to perform the relevant currentobligations.
If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by the third party, thecompensation amount will be separately recognized as an asset when it is basically determined to be received, and the confirmedcompensation amount does not exceed the book value of the estimated liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more than the expectedeconomic benefit. If the contract to be executed becomes a loss contract, and the obligation arising from the loss contract satisfies theconditions for the recognition of the above-mentioned estimated liabilities, the portion of the contract's estimated loss that exceedsthe recognized impairment loss (if any) of the contracted asset is recognized as the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed, formal, and have been announced to the public, the amount of the estimated liabilities aredetermined based on the direct expenses related to the reorganization, subject to the recognition conditions of the aforementionedestimated liabilities. For the restructuring obligation to the part of business sold, the obligation related to the reorganization is confirmedonly when the Company promises to sell part of the business (that is, when the binding sale agreement is signed).
25. Share-based Payments
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined based on an equityinstrument in order to obtain services from employees or other parties. Share-based Payments include equity-settled share payment andcash-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 the granting ofemployees' equity instruments at the grant date. If the fair value is vested in the completion of the waiting period of service or thefulfillment of the required performance conditions, during the waiting period, the amount of the fair value is calculated by the straight-line method into the relevant costs or expenses based on the best estimate of the number of vesting equity instruments; Or If the vestingright is granted immediately after the grant, the calculation of the amount of the fair value is included in the relevant cost or expenseon the grant date, and the capital reserve is increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate based on the latest information onthe changes in the number of employees with vesting rights and corrects the number of equity instruments that are expected to bevested. The impact of the above estimates shall be included in the current related costs or expenses, and the capital reserve is adjusted
accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties' servicescan be reliably measured, the fair value of other services shall be measured at the fair value on the date of acquisition; If the fair valueof the other party's services cannot be measured reliably, the fair value shall be measured at the fair value of the equity instrument atthe date the service is acquired, and is included in the relevant cost or expense, which increases the shareholders' equity accordingly.b) Cash-settled Share PaymentThe cash-settled share payment is measured at the fair value of the liabilities determined by the Company based on shares or otherequity instruments. If the vesting right is available immediately after the grant, the relevant costs or expenses shall be included on thedate of grant, and the liabilities shall be increased accordingly; if vesting right is available after the service is completed within thewaiting period or met the required performance conditions, based on the best estimate of the vesting rights on each balance sheet dateof the waiting period, according to the fair value of the liabilities assumed by the Company, the services obtained in the current periodare included in the cost or expense, and the liabilities are increased accordingly.The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the settlement of therelevant liabilities, and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan, if the modification increases the fair value of the equity instrumentsgranted, the increase in the fair value of the equity instruments is recognized accordingly. The increase in the fair value of equityinstruments refers to the difference between the fair value of the equity instruments before and after the modification. If the modificationreduces the total fair value of the share-based payment or adopts other methods that are not conducive to the employee, the serviceobtained shall continue to be accounted for, as if the change has never occurred, unless the Company cancels some or all of equityinstruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the granted equity instrumentas an accelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately included in the currentprofit and loss, and the capital reserve will be recognized. If the employee or other party can choose to meet the non-vesting conditionsbut fails to meet the waiting period, the Company will treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or Actual Controllers
In respect of the share-based payment transaction between the Company and the shareholders or actual controllers of the Company,If one of the settlement enterprise and the service receiving enterprise is in the Company and the other is outside the Company, it shallbe accounted for in the consolidated financial statements of the Company according to the following provisions:
a.) If the settlement enterprise settles with its own equity instrument, the share-based payment transaction shall be treated asequity-settled share-based payment; otherwise, it shall be treated as a cash-settled share-based payment.
If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the long-term equity investment of theserviced enterprise according to the fair value of the equity instrument at the grant date or the fair value of the liability to be assumed,
and the capital reserve (other capital reserve) or liabilities shall be recognized.b.) If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments, the share paymenttransaction shall be treated as equity-settled share payment; if the serviced enterprise has settlement obligation and grants its employeesother than its own equity instruments, the share payment transaction shall be treated as a cash-settled share payment.
For the share based payment incurred between companies within the group, if the serviced enterprise and settlememt enterpriseare not the same, then the payment should be recpgnized and measured in their individual financial statements, they should be accountedfor using the above principles
26. 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 the followingconditions, shall be used as equity instruments:
a.) The financial instrument does not include contractual obligations to deliver cash or other financial assets to other parties or toexchange financial assets or financial liabilities with other parties under potentially adverse conditions.
b.) In the case of the financial instrument is to be settled or available with the Company's own equity instruments in the future, ifthe financial instrument is a non-derivative, it does not include the contractual obligation to deliver a variable amount of its own equityinstruments; if it is a derivative, the Company can only settle the financial instrument by exchanging a fixed amount of cash or otherfinancial assets with a fixed amount of its own equity instruments.
Except for financial instruments that can be classified under the above conditions, other financial instruments issued by theCompany should be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they are recognized as a liability basedon the fair value of the liability component, and are recognized as “other equity instruments” based on the amount actually receivedafter deducting the fair value of the liability component. The transaction costs incurred in issuing a compound financial instrument areapportioned in proportion to their respective total issue price between the liability component and the equity component.
(2) Accounting treatment methods such as perpetual capital securities and preferred stocks
Related interest, dividends, gains or losses of financial instruments such as perpetual capital securities and preferred stocksclassified as financial liabilities, and gains or losses arising from redemption or refinancing, are included in the current profits andlosses except for borrowing costs that meet the capitalization conditions (see Note 3, 17 “Borrowing Fees”).
When financial instruments such as perpetual capital securities and preferred stocks classified as equity instruments are issued(including refinancing), repurchased, sold or cancelled, the Company shall treat it as a change in equity, and related transaction costsare also deducted from equity. The Company's allocation of equity instrument holders is treated as profit distribution.
The Company does not recognize changes in the fair value of equity instruments.
27. Revenue
The Company's operating income mainly includes income from selling goods, income from providing services, royalty income,
interest income, etc. When the Company signs a contract, it evaluates the contract, identifies the individual performance obligationscontained in the contract, and determines whether the individual performance obligations are performed within a certain period of timeor at a certain point of time. When the Company has fulfilled all the performance obligations in the contract, the revenue shall berecognized respectively according to the transaction price apportioned to the performance obligations.
(1) Revenue recognition for fulfilling performance obligation at a certain time point
Generally, the Company recognizes the revenue from the sales of goods based on the transaction price apportioned to the singleperformance obligation when the customer obtains the control right of the relevant goods on the basis of comprehensively consideringthe following factors: the Company has the right to receive payment in respect of the goods or services currently, that is, the customerhas the obligation to pay for the goods currently; the Company has transferred the legal ownership of the goods to the customer, thatis, the customer has the legal ownership of the goods; The Company has transferred the physical goods of the commodity to theCustomer or the Customer has obtained the qualification of physical goods right of the commodity. The consideration obtained by theCompany in respect of the transfer of the commodity is likely to be recovered; Other indications that the customer has taken control ofthe commodity.The specific principles of the Company's sales revenue recognition are as follows: when the commodity have been delivered tothe customer and signed by the customer for confirmation, or the ownership certificate of the commodity has been delivered to thecustomer, the sales revenue is recognized when the Company has received the payment or obtained the evidence of payment.
(2) Revenue recognition for fulfilling performance obligation within a certain period of time
For the performance obligations performed in a certain period of time, such as the services provided, the Company adopts theoutput method or input method to determine the appropriate performance progress, and recognizes the revenue according to theperformance progress in that period of time. On the balance sheet date, the Company shall recognize the current income according tothe total transaction price of the contract multiplied by the progress of performance minus the accumulated recognized income. If oneof the following conditions is satisfied, it is regarded as the performance obligation performed during a certain period of time: theCustomer obtains and consumes the economic benefits arising from the performance of the Company at the same time of theperformance of the Company; Customers can control the goods under construction during the performance of the contract; The productsproduced by the Company during the performance of the Contract are of irreplaceable use, and the Company shall be entitled to receivepayment for the accumulated part of the completed performance so far during the whole term of the Contract. Otherwise, the Companyrecognizes revenue at the point when the Customer acquires control of the relevant goods or services.
The Company's rights to receive consideration for goods or services transferred to the Customer (and such rights depend on factorsother than the time passage) are presented as contractual assets, which are subject to impairment on the basis of expected credit losses.The Company's right to collect consideration from customers unconditionally (only depending on the passage of time) is listed asreceivables. The obligation of the Company to transfer goods or services to customers for which consideration has been received orreceivable is presented as a contractual liability.
28. Contract cost
1. Contract performance cost
The cost incurred by the Company for the performance of the contract, which does not fall within the scope of other accountingstandards for business enterprises other than the income standard and meets the following conditions at the same time, is recognizedas an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses(or similar expenses), costs explicitly borne by the customer and other costs incurred solely as a result of the contract;
(2) The cost increases the Company's resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the amortization period has exceeded onenormal operating cycle at the time of its initial recognition.
2. Contract acquisition cost
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall be recognized as anasset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if the Company does not obtain the contract.
3. Amortization of contract costs
The assets related to the contract cost mentioned above shall be amortized at the time of performance of the obligation or accordingto the performance progress on the same basis as the income recognition of the commodity or service related to the asset and shall berecorded into the current profit and loss.
4. Impairment of contract cost
If the book value of the above assets related to the contract cost is higher than the difference between the residual considerationexpected to be obtained by the Company due to the transfer of the goods related to the assets and the estimated cost to be incurred forthe transfer of the relevant goods, the excess part shall be set aside as an impairment provision and recognized as an impairment lossof the asset.
29. Government grants
Government grant refers to the Company's acquisition of monetary and non-monetary assets from the government free of charge,excluding the capital invested by the government as an investor and enjoying the corresponding owner's rights and interests.Government grants include assets-related grants and revenue-related grants. The Company defines the government grant obtained forthe purchase and construction of long-term assets or for the formation of long-term assets in other ways as the government grant relatedto assets; the remaining government grant is defined as the government grant related to income. If the object of grants is not specifiedin government documents, the grants shall be divided into income-related government grants and assets-related government grants inthe following ways: (1) If the government document clarifies the specific project for which the grant is targeted, the proportion of theexpenditure amount of the assets to be formed and the amount of the expenditures included in the expenses in the budget of the specificproject are divided, and the proportion of grant division needs to be reviewed on each balance sheet day and changed if necessary. (2)In government documents, if the purpose is expressed only in general terms and no specific project is specified, the grant shall beregarded as a government grant related to the income. Where a government grant is a monetary asset, it shall be measured according
to the amount received or receivable. If the government grants are non-monetary assets, they shall be measured at the fair value; if thefair value cannot be obtained reliably, they shall be measured at the nominal amount. Government grants measured in nominal amountsshall be recognized directly in current profits and losses.The Company usually confirms and measures the government grant according to the amount when it is actually received. However,if there is conclusive evidence at the end of the period that the relevant conditions stipulated in the financial support policy can be metand the financial support funds are expected to be received, it shall be measured according to the amount receivable. Governmentgrants measured in accordance with the amount receivable shall meet the following conditions at the same time: (1) The amount of thesubvention receivable has been confirmed by the authorized government departments, or can be reasonably calculated according to therelevant provisions of the formally issued financial fund management measures, and there is no significant uncertainty in the amountexpected; (2) According to the "Regulations on the Openness of Government Information" that the local financial department officiallyreleased and in accordance with the provisions of the "Regulations on the Openness of Government Information," the financial supportproject and its financial fund management measures should be inclusive (any eligible enterprise can apply for them), rather than beingspecifically tailored to specific companies; (3) The relevant grant approval has clearly promised the payment period, and theallocation of the payment is guaranteed by the corresponding budget, so it can be reasonably ensure that it can be received within theprescribed time limit; (4) Other relevant conditions (if any) to be met in accordance with the specific circumstances of the Companyand the grants.Government grants related to assets are recognized as deferred earnings and are divided into current profits and losses in areasonable and systematic way during the service life of the assets concerned. The government grants related to revenue, which areused to compensate for the related cost or loss in the subsequent period, shall be recognized as deferred income, and shall be recognizedin profit or loss in the period in which the related costs or losses are recognized; if it is used to compensate the related costs or lossesthat has occurred, it shall be directly recognized in the current profit and loss.It includes government grants related to both assets and income, and different parts are separately classified for accountingtreatment; if it is difficult to distinguish, the whole is classified as government grants related to income.Government grants related to the daily activities of the Company shall be included in other income or cost deductions accordingto the nature of the economic business; government subsidies unrelated to daily activities shall be included in the non-operatingrevenues and expenses.When the recognized government grants need to be returned, if there are relevant deferred earnings balances, the book balance ofrelated deferred earnings shall be deducted, and the excess part shall be included in the current profits and losses or the book value ofassets shall be adjusted, otherwise, the book value of assets shall be directly included in the current profits and losses.
The Company will obtain preferential policy loans discount in accordance with the finance will be allocated to the loan bankdiscount funds and the finance will be directly allocated to the Company discount funds in two cases:
(1) If the finance department allocates the discount interest funds to the lending bank, and the lending bank provides the loan tothe Company at the policy preferential interest rate, the Company chooses to conduct accounting treatment according to the followingmethods: the loan amount actually received shall be taken as the entry value of the loan, and the relevant borrowing costs shall be
calculated in accordance with the loan principal and the policy preferential interest rate.
(2) If the finance allocates the discount funds directly to the Company, the Company will offset the corresponding discount againstthe relevant borrowing costs.
30. Deferred Income Tax Assets / Deferred Income Tax Liabilities
(1) Current Income Tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous periods are measuredby the expected amount of income tax payable (or returned) in accordance with the provisions of the Tax Law. The amount of taxableincome on which current income tax expenses are calculated is based on the corresponding adjustment of pre-tax accounting profits inthe reporting period in accordance with the relevant tax laws.
(2) Deferred Income Tax Assets and Deferred Income Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis, and the temporary difference betweenthe book value of items that are not recognized as assets and liabilities but which can be determined as their tax basis according to thetax law, are confirmed by the balance sheet liability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of an asset or liabilityarising from a transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss), relevantdeferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related to investments insubsidiaries, associates and joint ventures, if the Company is able to control the turnaround time of temporary differences, and thetemporary difference is unlikely to be reversed in the foreseeable future, the related deferred income tax liabilities shall not berecognized. Except for the above exceptions, the Company recognizes all other deferred income tax liabilities arising from taxabletemporary differences.
Taxable temporary differences which related to the initial recognition of an asset or liability arising from a transaction that isneither a business combination nor an accounting profit or taxable income (or deductible loss), relevant deferred income tax liabilitiesshall not be recognized. In addition, for taxable temporary differences related to investments in subsidiaries, associates and jointventures, if the temporary difference is unlikely to be reversed in the foreseeable future, or the amount of taxable income used to offsetthe temporary difference is unlikely to be obtained in the future, the deferred income tax assets concerned shall not be recognized.Except for the above exceptions, the Company recognizes other deferred income tax assets that can offset temporary differences, subjectto the amount of taxable income that is likely to be obtained to offset temporary differences.
For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferred income tax assetsare recognized to the extent that it is probable that the future taxable income shall be used to offset the deductible losses and tax credits.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured at the applicabletax rates in the period in which the related assets are recovered or the related liabilities are recovered in accordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value of deferred income taxassets is written down if it is likely that sufficient taxable income will not be available to offset the benefits of deferred income taxassets in the future. When it is possible to obtain sufficient taxable income, the amount written down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.In addition to recognizing that the current income tax and deferred income tax related to other transactions and matters directlyincluded in shareholder's rights and interests shall be recognized in other comprehensive income or shareholder's rights and interests,and the book value of adjusted goodwill from deferred income tax resulting from the merger of enterprises, the other current incometax and deferred income tax expenses or gains shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the Company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire assets and pay offliabilities at the same time, the Company's current income tax assets and current income tax liabilities shall be presented on a net basisafter 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 incometax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration department on the sametax payer or to different tax payers, but in the future, during each important period of deferred income tax assets and liabilities beingreversed, the taxpayer involved intends to settle the current income tax assets and liabilities on a net basis, or acquire assets and payoff liabilities simultaneously, the deferred the income tax assets and deferred income tax liabilities of the Company shall be presentedon a net basis after offset.
31. Lease
(1) Identification of the lease.
Lease refers to a contract in which the lessor cedes the right to use the right of asset to use to the lessee for a period. At thebeginning date of the contract, the Company evaluates whether it is a lease or include in the contract, which one of the contracts partiescedes the right to control one or more identified assets in a certain period to exchange for a price. To determine whether the contractcedes the right to control the identified assets in a certain period, the Company evaluates whether the customer in the contract is entitledto almost all financial benefits occurred by the identified assets and to dominate the use of identified assets during the period of use. Ifthe contract contains many separate leases, the Company will break up the contract and make each lease accounting treatment separately.If the contract includes both the lease and non-lease portions, the Company shall separate the lease and non-lease parts for accountingtreatment.
(2) The Company as a lessee
1) Lease Confirmation. On the beginning of the lease term, the Company recognizes the right of use assets and lease liabilities forthe lease. Recognition and measurement of use rights assets and lease liabilities Notes III, (18) "Right of use assets" and notes 3 and
(23) "Lease liabilities".
2) Lease modifications. Lease modification refer to modifications in lease scope, lease value, lease term out of the contract,including the addition or termination of the right to use one or more lease assets, the extension or shortening of the lease term stipulatedin the contract. The effective date of the lease modifications refer to the date on which the parties agree on the lease modifications. The
Company treats the lease modification as a separate lease for accounting when lease occurs to modify and meet the followings: ①Thelease modification extends the lease scope or the lease term by adding the right to use one or more lease assets. ②The increased valueis equivalent to the amount adjusted for the separate price of the extended scope and term as the circumstance of the contract.. Leasemodification is accounted as a separate leaseContingent rentals shall be included in current profits and losses when actually occurring. On the effective date of the leasemodification, the Company shall, in accordance with the relevant provisions of the lease guidelines, apportion the value of the changedcontract and re-determine the lease term afterwards. The revised discount rate is used to discount the changed lease payment in orderto re-measure the lease liability.In calculating the present value of the lease payment after the modification, the Company shall use the lease-included interest ratefor the remaining lease period as the discount rate, and if it is unable to determine the lease-included interest rate for the remaininglease period, the Company shall use the incremental loan rate of the lessee as the discount rate on the effective date of the leasemodification. With regard to the impact of the above lease liability adjustment, the Company shall deal with the followings: ①If thelease modification results in a reduction in the lease scope or in the lease term, the lessee shall reduce the book value of the right of useassets and include in the profit or loss related to the partial or complete termination of the lease as a profit or loss in the current period.
②If other lease modifications result in remeasuring of lease liabilities, the lessee adjusts the book value of the right of use assetsaccordingly.
3) Short-term leases and low-value asset leases The Company has chosen not to recognize right of use assets and lease liabilitiesfor short-term leases and low-value asset leases where the lease term is not more than 12 months and single lease assets are brand newassets. The Company shall charge the relevant asset costs or current profits and losses in accordance with the straight-line method orother systematic reasonable methods for each period of the lease term
(3) The Company as a lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Company, as a lessor, divides the lease into a financiallease and an operating lease at the beginning of the lease. If a lease essentially transfers almost all the risks and rewards associated withownership of the leased assets, the lessor classifies the lease as a financial lease and a lease other than a financial lease as an operatinglease. A lease is usually classified as a financial lease if it has one or more of the following circumstances: ① At the end of the leaseterm, the ownership of the leased assets is transferred to the lessee; ② the lessee has the option to purchase the leased assets, and thepurchase price is sufficiently low compared to the fair value of the leased assets at the time of the expected exercise of the option, andthus ③the lease term accounts for the majority of the life of the leased asset (not less than 75 per cent of the lease asset life) ; ④ atthe commencement date of the lease, although the ownership of the asset is not transferred, may reasonably be established at thebeginning of the lease, The present value of the lease receipts is almost equal to the fair value of the leased assets (not less than 90 percent of the fair value of the leased assets); ⑤ The nature of the leased assets is special, and if no major renovation is made, only thelessee can use them. The Company may also classify a lease as a financial lease if there are one or more of the following indications:
① If the lessee cancels the lease, the loss caused by the cancellation of the lease to the lessor shall be borne by the lessee; ② theprofits or losses arising from fluctuations in the fair value of the residual value of the assets shall belong to the lessee; and ③ the
lessee shall be able to continue the lease until the next period at a rent well below the market level.
1) Accounting treatment of financial lease. The initial measurement is made at the beginning of the lease period when the Companyrecognizes the financial lease receivable for the financial lease and terminates the recognition of the financial lease assets. When theCompany makes initial measurement of the receivable financial lease, the net investment in the lease shall be used as the recordedvalue of the receivable financial lease. The net lease investment is the sum of the unsecured residual value and the lease receipts notyet received at the lease term start date at the present value discounted at the interest rate included in the lease. The amount of the leasereceipt refers to the amount that the lessor shall collect from the lessee as a result of the transfer of the right to use the leased assetsduring the lease term, including: (1) the fixed payment amount and the substantial fixed payment amount to be paid by the lessee (2)depends on the amount of the variable lease payment for the index or ratio, which is determined at the time of initial measurement onthe basis of the index or ratio at the beginning of the lease term, and (3) the exercise price of the option to purchase, provided that it isreasonably determined that the lessee will exercise that option ;(4) The amount to be paid by the lessee in the exercise of the option toterminate the lease, provided that the lease period reflects the lessee's option to terminate the lease, and (5) the residual value of thesecurity provided by the lessee, the party associated with the lessee and an independent third party with the financial capacity to performthe security obligation. The Company calculates and recognizes interest income for each period of the lease term at a fixed periodicinterest rate. The cyclical interest rate refers to determining that the net rental investment is subject to an inclusive discount rate (in thecase of subletting, if the lease inclusion interest rate cannot be determined, the discount rate of the original lease (adjusted for the initialdirect costs associated with the subletting), or that the change in the financial lease is not accounted for as a separate lease, and that ifthe change takes effect on the lease date, the lease will be classified as a revised discount rate as determined by the relevant provisionsat the time of the lease.If a financial lease changes and meets the following conditions, the Company shall treat the change as a separate lease (1) thechange expands the lease by adding the right to use one or more leased assets, and (2) the increased value is equivalent to the amountadjusted for the expansion of the lease as the contract. If a change in a financial lease is not accounted for as a separate lease and if thechange is met on the commencement of the lease, the lease will be classified as operating the lease conditions, the Company shall, fromthe effective date of the lease change, treat it as a new lease and take the net lease investment prior to the effective date of the leasechange as the book value of the leased assets.2）Accounting treatment of operating leasesDuring each period of the lease term, the Company uses a straight-line method to recognize the lease receipts for operating leasesas rental income. Where the incentive provided provides a rent-free period, the Company shall allocate the total amount of rentaccording to the straight-line method during the entire lease period without deducting the rent-free period, and the rental income shallbe recognized during the rent-free period. If the Company bears certain expenses of the lessee, the expense shall be deducted from thetotal rental income and distributed according to the balance of the rent income after deduction during the lease period.The initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost of theassets under lease and shall be included in the current profit and loss in instalments during the lease term on the same basis as the rentalincome. For fixed assets in operating leased assets, the Company shall use a depreciation policy of similar assets to charge depreciation,
and for other operating leased assets, amortize them in a systematic and reasonable manner. Variable lease payments obtained by theCompany in connection with the operating lease that are not included in the lease receipts shall be included in the current profit andloss when they actually occur. In the event of a change in an operating lease, the Company shall, as of the effective date of the change,treat it as a new lease for accounting, and the amount of the pre-receivable or receivable lease receivable in connection with the pre-change lease shall be deemed to be the amount receivable for the new lease.32 .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 separately distinguished andhas been disposed of or classified as held for sale by the Company: ①This component represents an independent major business or aseparate major business area. ②This component is part of an associated plan to dispose of an independent major business or a separatemajor business area. ③This component is a subsidiary Company acquired specifically for resale.For the accounting treatment methods for termination of operations, please refer to the relevant descriptions in Note 3, 12 “Assetsheld for sale and disposal group".
(2) Hedge accounting
In order to avoid some risks, the Company hedges some financial instruments as hedging instruments. For the hedges meeting thespecified conditions, the Company adopts the hedge accounting method for treatment. The hedging of the Company is fair valuehedging.
At the beginning of hedging, the Company formally designates hedging instruments and hedged items, and prepares writtendocuments on hedging relationship and risk management strategy and risk management objectives of the Company engaged in hedging.In addition, the Company will continuously evaluate the effectiveness of hedging at the beginning and after the hedging.
Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or losses arising therefrom shallbe included into the current profits and losses. If the hedging instrument hedges the non-trading equity instrument investment (or itscomponents) that is measured at fair value and whose changes are included in other comprehensive income, the gains and lossesgenerated by the hedging instrument are included in other comprehensive income. The profit or loss of the hedged item due to thehedged risk exposure shall be included into the current profits and losses, and the book value of the hedged item shall be adjusted atthe same time. If the hedged item is measured at fair value, the gain or loss of the hedged item due to the hedged risk does not need toadjust the book value of the hedged item, and the relevant gains and losses are included into the current profits and losses or othercomprehensive income.
When the Company cancels the designation of the hedging relationship, the hedging instrument has expired or been sold, thecontract has been terminated or exercised, or no longer has meet the conditions for the application of hedge accounting, the applicationof hedge accounting shall be terminated.
33. Significant accounting judgments and estimates
In the process of applying accounting policies, due to the inherent uncertainty of business activities, the Company needs to judge,estimate and assume the book value of statement items that cannot be accurately measured. These judgments, estimates and assumptionsare based on the Company's management's past historical experience and other relevant factors. These judgments, estimates andassumptions will affect the reported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities atthe balance sheet date. However, the actual results caused by the uncertainty of these estimates may be different from the currentestimates of the Company's management, resulting in a significant adjustment to the carrying amount of the assets or liabilities affectedin the future.The Company reviews the aforesaid judgments, estimates and assumptions on a regular basis on the basis of going concern. If thechange of accounting estimates only affects the current period of change, the number of impacts shall be recognized in the currentperiod of change. If the change affects both the current and future periods, the number of impacts will be confirmed in the current andfuture periods of the change.On the balance sheet date, the Company needs to judge, estimate and assume the amount of financial statement items in thefollowing important areas:
1. Impairment of financial assets
The Company uses the expected credit loss model to evaluate the impairment of financial instruments. The application of theexpected credit loss model requires significant judgment and estimation, and all reasonable and basis information, including forward-looking information, shall be considered. In making these judgments and estimates, the Company deduces the expected changes in thedebtor's credit risk based on historical data and combined with economic policies, macroeconomic indicators, industry risks, externalmarket environment, technological environment, changes in customer conditions and other factors.
2. Inventory falling price reserves
According to the inventory accounting policy, the Company measures according to the lower of cost and net realizable value. Forthe inventory whose cost is higher than net realizable value and which is obsolete and unsalable, the Company makes provision forinventory falling price. Impairment of inventories to net realizable value is based on the evaluation of the marketability of inventoriesand their net realizable value. The appraisal of impairment of inventories requires the management to make judgment and estimationon the basis of obtaining conclusive evidence and considering factors such as the purpose of holding inventories and the influence ofevents after the balance sheet date. The difference between the actual result and the original estimate will affect the book value ofinventory and the accrual 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-current assets other thanfinancial assets. For intangible assets with uncertain service life, in addition to the annual impairment test, the impairment test is alsocarried out when there are signs of impairment. Other non-current assets other than financial assets shall be tested for impairment whenthere 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 net amount of the
fair value minus the disposal expenses and the present value of the estimated future cash flow, it indicates that an impairment hasoccurred
The net amount of the fair value less the disposal expenses shall be determined by referring to the sales agreement price orobservable market price of similar assets in fair transactions, and deducting the incremental cost directly attributable to the disposal ofsuch 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 asset group). In estimating therecoverable amount, the Company will use all relevant information available, including forecasts of production, selling price and relatedoperating 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 present value of thefuture cash flows of the asset group or portfolio of asset groups to which goodwill has been allocated. When predicting the presentvalue of future cash flow, the Company needs to predict the cash flow generated by the future asset group or asset group portfolio, andat the same time, select the appropriate discount rate to determine the present value of future cash flow.
4. Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, the Company will accruedepreciation and amortization on a straight-line basis during their service lives. The Company reviews the service life regularly todetermine the amount of depreciation and amortization expenses to be included in each reporting period. The service life is determinedby the Company based on the past experience of similar assets and in portfolio with the expected technological updates. If there is asignificant change in previous estimates, the depreciation and amortization charges will be adjusted in 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 recognizes deferred income taxassets for all unused tax losses. This requires the Company's management to use a large number of judgments to estimate the time andamount of future taxable profits, combined with tax planning strategies, to determine the amount of deferred income tax assets to berecognized.
6. Income tax
In the normal business activities of the Company, there are certain uncertainties in the final tax treatment and calculation of sometransactions. Whether some items can be paid before tax requires the approval of the tax authorities. If there is a difference betweenthe final determination result of these tax matters and the amount initially estimated, the difference will have an impact on the currentincome 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 and makescorresponding provision for product quality assurance, estimated contract losses, liquidated damages for delayed delivery, etc. In theevent that such contingencies have formed a current obligation and the performance of the current obligations is likely to result in
outflow of economic benefits from the Company, the Company recognizes the contingencies as estimated liabilities based on the bestestimate of the expenditure required to perform the relevant current obligations. The recognition and measurement of the estimatedliabilities depend to a large extent on the judgment of the management. In the process of judgment, the Company needs to evaluate therisks, uncertainties, time value of money and other factors related to these contingencies.Among them, the Company will make an estimated liability for the after-sales quality maintenance commitments provided tocustomers for the sale, maintenance and renovation of the goods sold. The Company's recent maintenance experience data have beentaken into account when estimating liabilities, but the recent maintenance experience may not reflect the future maintenance situation.Any increase or decrease in this provision may affect the profit and loss in the future years.
8. Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements. When estimating the fair valueof an asset or liability, the Company adopts the available observable market data available. If the first level input value cannot beobtained, the Company will employ a qualified third-party appraiser to perform the appraisal. The Company works closely withqualified external appraisers to determine the appropriate valuation techniques and inputs to the relevant modelsIV. Taxes
1. Main Taxes and Tax Rates
| Types | Tax Basis | Tax Rate |
| Value Added Tax | After deducting the allowable amount of input tax deducted in the current period, the difference between the sales of goods, taxable services and taxable services income calculated in accordance with the provisions of the Tax Law is the taxable value-added tax. | 1%，3%、5%、6%、9%、、13% |
| 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 | 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%、12% |
| Tax Payers | Income Tax Rate |
| Jingliang (Singapore) International Trade Co., Ltd. | 17% |
| Beijing Guchuan Bread Food Co., Ltd. | 15% |
2. Important preferential tax policies and basis
Hangzhou Linan Little Angel Food Co., Ltd., a 4th tier subsidiary Company of the Company, is a welfare enterprise. Since May2016, it has enjoyed the preferential VAT policy of immediate refund upon payment in Preferential Value-Added Tax Policies forPromoting the Employment of Disabled Persons (CaiShui [2016] No.52).
In accordance with the relevant provisions of Ministry of Finance and State Administration of Taxation “Notice on PreferentialEnterprise Income Tax Policies for Employment of Persons with Disabilities”(Cai Shui[2009] No.70), Hangzhou Linan Little AngelFood Co., Ltd. , a 4th tier subsidiary Company of the Company: Where an enterprise employs persons with disabilities, on the basis ofdeduction according to the wages paid to the disabled workers, it may deduct the amount of taxable income according to 100% of thewages paid to the disabled workers.
Linqing Little Prince Food Co., Ltd., a fourth-level subsidiary of the Company, shall be subject to 50% of the sales revenue onthe basis of the stamp tax payable in the industrial procurement link and sales link in the purchase and sale contract of industrialenterprises according to the annountment No.10, 2018 issued by Shandong Provincial Tax Bureau. The base of stamp duty payable in2021 shall be calculated according to 50% of the sales revenue.
Company’s level 4 subsidiary-Liaoning Xiaowangzi Food Limited, according to the Supplementary Announcement on Land UseTax issued by Ministry of Finance and State Administration of Taxation (89) GSDZ No.140 Clause 13 states that public land such asmunicipal street, square, public green etc. can be exempted from land use tax, when computing land use tax, the area used in thecomputation is total area less the area for afforest and street.
Jingliang (Singapore) International Trade Co., Ltd., a 3rd tier subsidiary of the Company, levies taxes on the principle ofterritoriality. The Company is taxed on the territoriality principle. According to Singapore's preferential tax policy, the Company enjoystax exemption plan is as follows: for the first SGD10,000 of taxable income amount the taxable income amount shall be reduced by75%; for the portion between SGD$10,001 and SGD$200,000, the taxable income amount shall be reduced by 50%; For the portionexceeding SGD$200,000, the taxable income amount shall not be reduced. The Company shall pay income tax at the rate of 17% onthe taxable income amount after exemption.
Beijing Guchuan Bread&Food Co., Ltd., a 3rd tier subsidiary of the Company, is a high-tech enterprise. On November 30, 2018,it obtained the certificate of high-tech enterprise and the certificate number GR201811007245. It is valid for three years. It enjoys thepreferential tax policy of paying enterprise income tax at the 15% tax rate according to the relevant provisions of both “Law of thePeople's Republic of China on Tax Collection and Administration” and “Rules for the Implementation of the Tax Collection andAdministration Law of the People's Republic of China”.
The Company level 4 subsidiary Jingliang (Hebei) Oil Industry Co., Ltd., according to the financial department documents, localtaxation bureau in hebei province, hebei province document ji caishui [2019] no. 56 "about parts reserve commodity announcementconcerning the tax policy, accounting books shall be exempt from stamp duty for funds, to undertake business book stand in the processof buying and selling contract commodity reserves shall be exempt from stamp duty, other parties in the contract should pay the stampduty shall also be subject to duty-payment according to the parties. Property tax and land use tax of cities and towns shall be exemptedfrom the property tax and land use tax of cities and towns that undertake the business of commodity reserve for their own use. The
notice will be executed on January 1, 2019 and will terminate on 31
stDecember, 2021.Jingliang (Hebei) Oil Industry Co., Ltd., a 4th subsidiary Company of the Company, exempts the sale of edible vegetable oil storedby the government from VAT according to “Notice of the Ministry of Finance and the State Administration of Taxation on the Levyand Exemption of Value Added Tax for Food Enterprises”（Cai Shui [1999] No.198）The Company level 3 subsidiary Beijing day weikang grease DiaoXiao center co., LTD., according to the national taxadministration 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 and business duty-free items listed inthe notice of other food business, and government reserves edible vegetable oil sales enterprises, which should be examined by thecompetent tax authorities deemed tax-exempt status, not reported to the competent tax authorities where the audit determined that noexemption, From June 1, 2017 to December 31, 1999, the Company will exempt edible vegetable oil stored by the government fromVAT.The level 2 subsidiary of the Company-Jingliang Caofeidian Agricultural Development Limited, according to the documentJTCFDST(2018) No. 1539765025415 issued by tax authority of Caofeidian District, Tangshan, affiliated to State Administration ofTaxation, and also followed the rules in Law of the People's Republic of China on the Administration of Tax Collection, TheImplementation Guideline of Law of the People's Republic of China on the Administration of Tax Collection, the rice under the brandof Tixiang produced by Caofeidian Company if exempted from VAT.The level 2 subsidiary of the Company-Jingliang Caofeidian Agricultural Development Limited, according to the rules underClause 27 of Corporate Law and its Implementation Guideline Clause 86, the rice under the brand of Tixiang produced by CaofeidianCompany if exempted from Corporation tax.
Ⅴ. Changes in accounting policies, accounting estimates, and explanation of corrections to previous errors
1. Changes in accounting policies
On December 7, 2018, the Ministry of Finance issued the "Notice on the Amendment and Printing of the ‘Accounting Standardsfor Business Enterprises No. 21 – lease' " (Finance and Accounting [2018] No. 35). Based on the accounting standard revision and therequirements of the notice of the Ministry of Finance, Jingliang Holdings shall implement the new lease standards as of January 1,2021. For all leases, the Company shall recognize the right of use assets and lease liabilities (except short-term leases and low-valueasset leases) and recognize depreciation and interest expense, respectively. For short-term leases and low-value asset leases, theCompany shall not recognize the right of use assets and lease liabilities. In accordance with the requirements set out in the new leaseguidelines, the Company has chosen not to re-evaluate whether a contract that exists before January 1, 2021 is a lease or includes alease. In the case of the Company as a lessee, it has chosen to simplify the retroactive adjustment method to bridge the process byadjusting only the amounts of the "use rights assets" and "lease liabilities" items in the Financial Statements of January 1, 2021, andnot the comparable period information for other items on the balance sheet.
2. Changes in accounting estimates
There is no change in accounting estimate during the reporting period.
3. Correction of previous accounting errors
There is no previous accounting error correction in this reporting period.
4. The first time to implement the new lease standard adjustment and the first time to implement the financial statements at thebeginning of the year related items
Consolidated Balance Sheet
Monetary Unit: RMB Yuan
| Items | 30 June 2021 | 1 January 2021 | Adjustments |
| Current Assets: | |||
| Monetary capital | 335,466,169.61 | 335,466,169.61 | |
| Transactional financial assets | 63,478,071.73 | 63,478,071.73 | |
| Derivative financial assets | - | - | |
| Notes receivable | 456,565.85 | 456,565.85 | |
| Accounts receivable | 92,245,667.60 | 92,245,667.60 | |
| Receivables financing | - | - | |
| Prepayment | 282,343,218.05 | 282,234,970.05 | -108,248.00 |
| Other receivables | 541,905,656.97 | 541,905,656.97 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventory | 1,225,083,742.26 | 1,225,083,742.26 | |
| Contract assets | |||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 845,450,678.36 | 845,450,678.36 | |
| Total current assets | 3,386,429,770.43 | 3,386,321,522.43 | -108,248.00 |
| Non-current assets: | |||
| Long-term equity investment | 217,762,487.79 | 217,762,487.79 | |
| Other equity instruments investment | 20,000,000.00 | 20,000,000.00 | |
| Other non-current financial assets | |||
| Investment property | 22,560,212.50 | 22,560,212.50 | |
| Fixed assets | 1,131,143,854.07 | 1,131,143,854.07 | |
| Construction in process | 28,458,413.67 | 28,458,413.67 | |
| Right of use assets | 2,722,789.09 | 2,722,789.09 | |
| Intangible assets | 354,139,335.32 | 354,139,335.32 |
Items
| Items | 30 June 2021 | 1 January 2021 | Adjustments |
| Development expenditure | |||
| Goodwill | 191,394,422.51 | 191,394,422.51 | |
| Long-term deferred expenses | 20,529,601.50 | 20,529,601.50 | |
| Deferred income tax assets | 3,346,814.27 | 3,346,814.27 | |
| Other non-current assets | 319,739,581.67 | 319,739,581.67 | |
| Total non-current assets | 2,309,074,723.30 | 2,311,797,512.39 | 2,722,789.09 |
| Total assets | 5,695,504,493.73 | 5,698,119,034.82 | 2,614,541.09 |
| Current liabilities: | |||
| Short-term borrowings | 1,497,414,079.05 | 1,497,414,079.05 | |
| Derivative financial liabilities | 371,219,136.84 | 371,219,136.84 | |
| Accounts payable | 75,384,075.39 | 75,384,075.39 | |
| Account collected in advance | 1,087,874.02 | 1,087,874.02 | |
| Contract liabilities | 346,874,260.90 | 346,874,260.90 | |
| Employee payroll payable | 33,345,136.94 | 33,345,136.94 | |
| Taxes payable | 50,884,214.64 | 50,884,214.64 | |
| Other payables | 72,292,881.24 | 72,292,881.24 | |
| Including: Interest payable | 21,082,795.47 | 21,082,795.47 | |
| Dividends payable | 11,013,302.88 | 11,013,302.88 | |
| Other Liabilities | 8,319,696.79 | 8,319,696.79 | |
| Total current liabilities | 2,456,821,355.81 | 2,456,821,355.81 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Lease liabilities | 2,614,541.09 | 2,614,541.09 | |
| Long-term payable to employees | 5,677,134.00 | 5,677,134.00 | |
| Estimated liabilities | |||
| Deferred income | 68,716,699.34 | 68,716,699.34 | |
| Deferred income tax liabilities | 65,115,801.22 | 65,115,801.22 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 139,509,634.56 | 142,124,175.65 | 2,614,541.09 |
| Total liabilities | 2,596,330,990.37 | 2,598,945,531.46 | 2,614,541.09 |
| Owners' equity (or Shareholders' equity): | |||
| Capital stock | 726,950,251.00 | 726,950,251.00 | |
| Other equity instruments |
Items
| Items | 30 June 2021 | 1 January 2021 | Adjustments |
| Including: Preferred stock | |||
| Perpetual capital bonds | |||
| Capital reserves | 1,674,828,350.95 | 1,674,828,350.95 | |
| Less: treasury stock | |||
| Other comprehensive income | -363,258.66 | -363,258.66 | |
| Special reserves | |||
| Surplus reserves | 122,122,436.98 | 122,122,436.98 | |
| Undistributed profit | 187,033,763.26 | 187,033,763.26 | |
| Total equity attributable to the parent Company | 2,710,571,543.53 | 2,710,571,543.53 | |
| Minority equity | 388,601,959.83 | 388,601,959.83 | |
| Total owners' equity (or shareholders' equity) | 3,099,173,503.36 | 3,099,173,503.36 | |
| Total liabilities and owners' equity (or shareholders' equity) | 5,695,504,493.73 | 5,698,119,034.82 | 2,614,541.09 |
| Items | 30 June 2021 | 1 January 2021 | Adjustments |
| Current Assets: | |||
| Monetary capital | 1,523,322.79 | 1,523,322.79 | |
| Accounts receivable | 11,784.00 | 11,784.00 | |
| Prepayment | 423,679.12 | 423,679.12 | |
| Other receivables | 103,341.26 | 103,341.26 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventory | 3,775,954.85 | 3,775,954.85 | |
| Other current assets | 2,445,772.47 | 2,445,772.47 | |
| Total current assets | 8,283,854.49 | 8,283,854.49 | |
| Non-current assets: | |||
| Long-term equity investment | 2,626,437,846.24 | 2,626,437,846.24 | |
| Other equity instruments investment | 20,000,000.00 | 20,000,000.00 | |
| Investment property | 6,222,001.73 | 6,222,001.73 | |
| Fixed assets | 2,809,083.51 | 2,809,083.51 | |
| Intangible assets | 209,185.10 | 209,185.10 |
Items
| Items | 30 June 2021 | 1 January 2021 | Adjustments |
| Long-term deferred expenses | |||
| Total non-current assets | 2,655,678,116.58 | 2,655,678,116.58 | |
| Total assets | 2,663,961,971.07 | 2,663,961,971.07 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Accounts payable | |||
| Account collected in advance | 38,896.41 | 38,896.41 | |
| Contract liabilities | |||
| Employee payroll payable | 341,902.14 | 341,902.14 | |
| Taxes payable | 1,037,881.62 | 1,037,881.62 | |
| Other payables | 309,067,618.99 | 309,067,618.99 | |
| Including: Interest payable | 21,082,795.47 | 21,082,795.47 | |
| Dividends payable | 3,213,302.88 | 3,213,302.88 | |
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | |||
| Other current liabilities | |||
| Total current liabilities | 310,486,299.16 | 310,486,299.16 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Deferred income | |||
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | |||
| Total liabilities | 310,486,299.16 | 310,486,299.16 | |
| Owners' equity (or Shareholders' equity): | |||
| Capital stock | 726,950,251.00 | 726,950,251.00 | |
| Capital reserves | 2,379,144,900.84 | 2,379,144,900.8 | |
| Less: treasury stock | |||
| Surplus reserves | 109,487,064.39 | 109,487,064.39 | |
| Undistributed profit | -862,106,544.32 | -862,106,544.32 | |
| Total owners' equity (or shareholders' equity) | 2,353,475,671.91 | 2,353,475,671.91 | |
| Total liabilities and owners' equity (or shareholders' equity) | 2,663,961,971.07 | 2,663,961,971.07 |
Note: The ‘beginning’ of the period refers to January 1, 2021 and the ‘end’ of the period refers to June 30, 2021. The previousperiod refers to the half of year 2020 and the current period refers to the half of year 2021.
1. Monetary funds
(1) Classification list
| Items | Ending Balance | Beginning Balance |
| Cash | 90,718.49 | 16,761.72 |
| Bank Deposits | 649,756,766.18 | 299,235,964.61 |
| Other Currency Funds | 130,107,110.90 | 36,213,443.28 |
| Total | 779,954,595.57 | 335,466,169.61 |
| Among them: the total amount of money deposited abroad | 11,807,029.94 | 3,153,447.17 |
| Items | Ending Balance | Beginning Balance |
| Financial assets measured at fair value with changes included in current profits and losses | 363,000,000.00 | 63,478,071.73 |
| Among them: debt instrument investment | 363,000,000.00 | 63,478,071.73 |
| Designated as financial assets measured at fair value with changes included in current profits and losses | ||
| Among them: debt instrument investment | ||
| equity instrument investment | ||
| others | ||
| Total | 363,000,000.00 | 63,478,071.73 |
| Items | Ending Balance | Beginning Balance |
| Changes in fair value of hedging instruments | 75,597,717.39 | |
| Total | 75,597,717.39 |
Items
| Items | Ending Balance | Beginning Balance |
| Bank acceptance bill | 456,565.85 | |
| Commercial acceptance bill | ||
| Total | 456,565.85 |
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | 94,405,127.19 |
| Among them: Within the credit (within 3 months) | 78,698,131.72 |
| Credit period to 1 year | 15,706,995.47 |
| 1 to 2 years (including 2 years) | 2,702,539.46 |
| 2 to 3 years (including 3 years) | 5,254.50 |
| 3 to 4 years (including 4 years) | 45,270.42 |
| 4 to 5 years (including 5 years) | 51,420.00 |
| More than 5 years | 400,259.50 |
| Total | 97,609,871.07 |
| Type(s) | Ending Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | 1,325,135.40 | 1.36 | 1,325,135.40 | 100.00 | |
| Portfolio provision for bad debts | 96,284,735.67 | 98.64 | 156,458.61 | 0.16 | 96,128,277.06 |
| Among them: aging portfolio | 83,138,909.27 | 85.17 | 156,458.61 | 0.19 | 82,982,450.66 |
| related parties portfolio | 13,145,826.40 | 13.47 | 0.00 | 13,145,826.40 | |
| Total | 97,609,871.07 | ---- | 1,481,594.01 | ---- | 96,128,277.06 |
| Type(s) | Beginning Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | 1,325,135.40 | 1.41 | 1,325,135.40 | 100.00 | |
Type(s)
| Type(s) | Beginning Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Portfolio provision for bad debts | 92,402,126.21 | 98.59 | 156,458.61 | 0.17 | 92,245,667.60 |
| Among them: aging portfolio | 69,364,375.49 | 74.01 | 156,458.61 | 0.23 | 69,207,916.88 |
| related parties portfolio | 23,037,750.72 | 24.58 | 23,037,750.72 | ||
| Total | 93,727,261.61 | 一一 | 1,481,594.01 | 一一 | 92,245,667.60 |
| Name | Ending Balance | |||
| Accounts Receivable | Bad Debt Provision | Provision Ratio | Provision Reason | |
| Beijing Xidan spicy town food limited | 996,000.00 | 996,000.00 | 100.00 | Expected unrecoverable on claim |
| Beijing Rongfa Lida Grain and Oil Trade Co., Ltd. | 163,143.00 | 163,143.00 | 100.00 | Expected unrecoverable on claim |
| Fujian Jingxin Industrial Group Co., Ltd | 151,844.00 | 151,844.00 | 100.00 | Expected unrecoverable on claim |
| Beijing Guotai Ping'an Department Store Co., Ltd. | 10,862.90 | 10,862.90 | 100.00 | Expected unrecoverable on claim |
| Beijing Guotai Ping'an Tianzhu Commercial Development Co., Ltd. | 1,809.60 | 1,809.60 | 100.00 | Expected unrecoverable on claim |
| Carrefour (Shanghai) Supply Chain Management Co., Ltd. Tianjin Branch | 875.90 | 875.90 | 100.00 | Expected unrecoverable on claim |
| Beijing Shunyi Longhua Shopping Center | 600.00 | 600.00 | 100.00 | Expected unrecoverable on claim |
| Total | 1,325,135.40 | 1,325,135.40 | －－ | －－ |
| Name | Ending Balance | Beginning Balance | ||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | |
| Within 1 Year (including 1 year) | 81,264,049.89 | 69,026,628.09 | 7,466.13 | |||
| Among them: Within the credit (within 3 months) | 67,340,203.17 | 0 | 68,653,321.59 | 0 | ||
| Credit period to 1 year | 13,923,846.72 | 2 | 373,306.50 | 7,466.13 | 2 | |
| 1 to 2 years (including 2 years) | 1,674,379.46 | 14,329.50 | 5 | 137,267.48 | 6,863.37 | 5 |
| 2 to 3 years (including 3 years) | 31,789.50 | 6,357.90 | 20 | 31,789.50 | 6,357.90 | 20 |
Name
| Name | Ending Balance | Beginning Balance | ||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | |
| 3 to 4 years (including 4 years) | 45,270.42 | 22,635.21 | 50 | 45,270.42 | 22,635.21 | 50 |
| 4 to 5 years (including 5 years) | 51,420.00 | 41,136.00 | 80 | 51,420.00 | 41,136.00 | 80 |
| More than 5 years | 72,000.00 | 72,000.00 | 100 | 72,000.00 | 72,000.00 | 100 |
| Total | 83,138,909.27 | 156,458.61 | 69,364,375.49 | 156,458.61 | ||
| Name | Ending Balance | Beginning Balance | ||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | |
| Related parties portfolio | 13,145,826.40 | 23,037,750.72 | ||||
| Total | 13,145,826.40 | 23,037,750.72 | ||||
| Items | Beginning Balance | The amount changed for the period | Ending Balance | |||
| Addition | Withdrawal or reversal | Write-off | Other changes | |||
| Credit impairment loss | 1,481,594.01 | 1,481,594.01 | ||||
| Total | 1,481,594.01 | 1,481,594.01 | ||||
| Debtors | Accounts receivable | Ratio of totalaccounts receivable (%) | Aging | Whether related | Bad Debt Provision |
| Xilin Gol League hongjingyuan Oil Co., Ltd | 13,098,446.48 | 13.42 | Within 3 months | No | |
| Tangshan Caofeidian District Finance Bureau | 12,329,480.04 | 12.63 | Within 1 year f | No | |
| Shanghai Laiyifen Co., Ltd | 4,930,665.60 | 5.05 | Within 3 months | No | |
| Zhejiang Lvqin Supply Chain Management Co., Ltd | 4,841,919.36 | 4.96 | Within 3 months | No | |
| Beijing Ershang Wangzhihe Food Co., Ltd | 4,439,008.84 | 4.55 | Within 3 months | No | |
| Total | 39,639,520.32 | 40.61 |
| Aging | Ending Balance | Beginning Balance | ||
| Amount | Ratio(%) | Amount | Ratio(%) | |
| Within 1 year (including 1 year) | 580,122,848.03 | 99.91 | 282,123,364.15 | 99.96 |
Aging
| Aging | Ending Balance | Beginning Balance | ||
| Amount | Ratio(%) | Amount | Ratio(%) | |
| 1 to 2 years (including 2 years) | 521,555.14 | 0.09 | 88,505.90 | 0.03 |
| 2 to 3 years (including 3 years) | 0.00 | 0.00 | 0.00 | 0.00 |
| More than 3 years | 23,100.00 | 0.00 | 23,100.00 | 0.01 |
| Total | 580,667,503.17 | 100.00 | 282,234,970.05 | 100.00 |
| Debtor Name | Ending Balance | Ratio of the total ending balance of prepayments (%) |
| Hong Kong Yuheng Industrial Co., Ltd | 217,529,005.27 | 37.46 |
| SINO Grain Oil Co., Ltd | 128,113,768.73 | 22.06 |
| Tianjin Port Customs of the People's Republic of China | 42,576,851.75 | 7.33 |
| APICAL (MALAYSIA) SDN. BHD. | 38,609,493.90 | 6.65 |
| Anhui Anliang International Development Co., Ltd | 22,476,160.00 | 3.87 |
| Total | 449,305,279.65 | 77.38 |
| Item(s) | Ending Balance | Beginning Balance |
| Interest Receivable | ||
| Dividend Receivable | ||
| Other Receivables | 88,750,805.46 | 541,905,656.97 |
| Total | 88,750,805.46 | 541,905,656.97 |
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | 87,538,405.21 |
| Among them: Within the credit (within 3 months) | 27,554,116.61 |
| Credit period to 1 year | 59,984,288.60 |
| 1 to 2 years (including 2 years) | 273,797.85 |
| 2 to 3 years (including 3 years) | 452,400.00 |
| 3 to 4 years (including 4 years) | 162,665.99 |
Aging
| Aging | Ending Balance |
| 4 to 5 years (including 5 years) | 30,000.00 |
| More than 5 years | 350,000.00 |
| Total | 88,807,269.05 |
| Nature of Funds | Book Balance at End of Period | Book Balance at Beginning of Year |
| Guaranteed Deposit and Deposit | 51,999,954.07 | 535,330,041.21 |
| Intercourse Funds of Units | 35,905,866.03 | 5,472,834.58 |
| Tax Refund Receivables | 302,433.21 | |
| Employee Receivables | 535,230.87 | 532,115.87 |
| Personal Intercourse Funds | 50,000.00 | 50,000.00 |
| Others | 316,218.08 | 274,695.69 |
| Total | 88,807,269.05 | 541,962,120.56 |
| 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 2021 | 6,463.59 | 50,000.00 | 56,463.59 | |
| Carrying amount on 1st January 2021 that in this period: | ||||
| ——Get into Stage 2 | ||||
| ——Get into Stage 3 | ||||
| ——Get back to Stage 2 | ||||
| ——Get back to Stage 1 | ||||
| Provision for the period | ||||
| Reverse for the period | ||||
| Transfer for the period | ||||
| Write off for the period | ||||
| Other changes | ||||
| Amount on 31st June 2021 | 6,463.59 | 50,000.00 | 56,463.59 |
| Carrying | Amount changes for the period | Carrying |
Type
| Type | amount at the beginning | Addition | Withdrawal or reversal | Write-off | Other changes | amount at the end |
| Credit impairment loss | 56,463.59 | 56,463.59 | ||||
| Total | 56,463.59 | 56,463.59 |
| 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 |
| Dalian Commodity Exchange | Guaranteed Deposit and storage fees | 26,911,000.00 | Within 1 year | 30.30 | |
| CITIC Securities Co. Ltd | Intercourse Funds of Units | 20,200,000.00 | Within 3 months | 22.75 | |
| China Chemical Engineering Fourth Construction Co., Ltd | Construction fund | 8,280,628.80 | Within 1 year | 9.32 | |
| Zhongtian Futures Co. Ltd | Futures margin | 6,796,618.40 | Within 3 months | 7.65 | |
| ADM International Sarl | Guaranteed Deposit | 6,457,800.00 | Within 3 months | 7.27 | |
| Total | — | 68,646,047.20 | — | 77.29 |
| Items | Ending Balance | Beginning Balance | ||||
| Book Balance | Falling Price Reserves | Book Value | Book Balance | Falling Price Reserves | Book Value | |
| Raw Materials | 292,709,433.37 | 0.00 | 292,709,433.37 | 303,448,302.51 | 303,448,302.51 | |
| Revolving Materials | 5,427,075.29 | 0.00 | 5,427,075.29 | 5,520,559.22 | 5,520,559.22 | |
| Goods and materials in transit | 136,142,338.47 | 0.00 | 136,142,338.47 | 36,413,482.38 | 36,413,482.38 | |
| Inventory goods | 981,446,939.15 | 233,790.56 | 981,213,148.59 | 622,783,856.56 | 233,790.56 | 622,550,066.00 |
| Development costs | 5,671,355.03 | 0.00 | 5,671,355.03 | 2,415,243.42 | 2,415,243.42 | |
| Developing commodities | 5,315,696.54 | 1,539,741.69 | 3,775,954.85 | 5,315,696.54 | 1,539,741.69 | 3,775,954.85 |
| Commission processing | 5,410,589.00 | 0.00 | 5,410,589.00 | 2,762,633.88 | 2,762,633.88 | |
| Replacement of oil reserve | 169,170,956.67 | 0.00 | 169,170,956.67 | 248,197,500.00 | 248,197,500.00 | |
| Total | 1,601,294,383.52 | 1,773,532.25 | 1,599,520,851.27 | 1,226,857,274.51 | 1,773,532.25 | 1,225,083,742.26 |
Items
| 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 | |||
| Inventory goods | 233,790.56 | 233,790.56 | ||||
| Developing commodities | 1,539,741.69 | 1,539,741.69 | ||||
| In total | 1,773,532.25 | 1,773,532.25 | ||||
| Items | Ending Balance | Beginning Balance | ||||
| Book Balance | Falling Price Reserves | Book Value | Book Balance | Falling Price Reserves | Book Value | |
| Grease and oils | 967,544,017.24 | 233,790.56 | 967,310,226.68 | 594,886,731.71 | 233,790.56 | 594,652,941.15 |
| Food | 13,872,860.49 | 13,872,860.49 | 27,880,182.78 | 27,880,182.78 | ||
| Others | 30,061.42 | 30,061.42 | 16,942.07 | 16,942.07 | ||
| Total | 981,446,939.15 | 233,790.56 | 981,213,148.59 | 622,783,856.56 | 233,790.56 | 622,550,066.00 |
| Items | Balance at End of Period | Balance at Beginning of Period |
| Financial Products | 280,000,000.00 | |
| Pre-paid Taxes and Fees | 36,255,131.26 | 16,921,026.50 |
| Pending Deduct VAT Input Tax | 42,987,706.38 | 46,701,271.74 |
| Fair Value Changes of Items Trapped at Hedging | 153,428,194.75 | 501,828,380.12 |
| In total | 232,671,032.39 | 845,450,678.36 |
| 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 | ||
| 1.Cooperative Enterprise | ||||
| CP Group | 90,824,898.49 | 10,149,043.57 | ||
| Sub-total | 90,824,898.49 | 10,149,043.57 | ||
| 2. Joint Venture | ||||
| China Grain Reserves (Tianjin) Warehouse Logistics Co., Ltd. | 119,601,316.43 | 15,827,465.77 | ||
| Jingliang Miss Me Food Management (Tianjin) Limited | 7,336,272.87 | |||
| Sub-total | 126,937,589.30 | 15,827,465.77 | ||
| Total | 217,762,487.79 | 25,976,509.34 | ||
| Increase or Decrease in the Current Period | Balance at End | Ending Balance |
Adjustment of othercomprehensiveincome
| Adjustment of other comprehensive income | Other changes in equity | Announce to Distribute Case Dividends or Profits | Accrual of Impairment Reserves | Others | of Period | of Impairment Reserves |
| 100,973,942.06 | ||||||
| 100,973,942.06 | ||||||
| -24,680,000.00 | 110,748,782.20 | |||||
| 7,336,272.87 | ||||||
| -24,680,000.00 | 118,085,055.07 | |||||
| -24,680,000.00 | 219,058,997.13 |
| Item | Ending Balance | Beginning Balance |
| 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 | Total |
| One. Original Book Value | 53,844,801.60 | 53,844,801.60 | ||
| 1. Balance at Beginning of Year | 53,844,801.60 | 53,844,801.60 | ||
| 2. Increased Amounts in the Current Period | ||||
| (1) Outsourcing | ||||
| (2) Inventory transfer | ||||
| (3) Others | ||||
| 3. Decreased Amounts in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Balance at End of Period | 53,844,801.60 | 53,844,801.60 | ||
| Two. Accumulated Impairment and Accumulated Amortization | ||||
| 1. Balance at Beginning of Year | 20,696,792.40 | 20,696,792.40 | ||
| 2. Increased Amounts in the Current Period | 823,048.23 | 823,048.23 | ||
| (1) Accrual or Amortization | 823,048.23 | 823,048.23 | ||
| 3. Decreased Amounts in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other transfer out | ||||
| 4. Balance at End of Period | 21,519,840.63 | 21,519,840.63 | ||
| Three. Impairment Reserves | ||||
| 1. Balance at Beginning of Year | 10,587,796.70 | 10,587,796.70 | ||
| 2. Increased Amounts in the Current Period | ||||
| (1) Accrual | ||||
| (2) Inventory transfer | ||||
| 3. Decreased Amounts in the Current Period | ||||
| (1) Disposal |
(2) Other transfer out
| (2) Other transfer out | ||||
| 4. Balance at End of Period | 10,587,796.70 | 10,587,796.70 | ||
| Four. Book Value | ||||
| 1. Book Value at End of Period | 21,737,164.27 | 21,737,164.27 | ||
| 2. Book Value at Beginning of Year | 22,560,212.50 | 22,560,212.50 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Fixed Assets | 1,088,582,627.48 | 1,131,143,854.07 |
| Disposal of Fixed Assets | ||
| In total | 1,088,582,627.48 | 1,131,143,854.07 |
| Items | Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | Total |
| One. Original Book Value | |||||||
| 1. Balance at Beginning of Year | 1,077,152,030.43 | 375,930,011.58 | 19,483,651.03 | 18,604,521.98 | 2,162,857.53 | 376,615,641.86 | 1,869,948,714.41 |
| 2. Increased Amounts in the Current Period | 585,466.98 | 4,676,884.95 | 1,960,562.82 | 595,093.67 | 1,368,780.61 | 1,401,446.00 | 10,588,235.03 |
| (1) Purchase | 558,116.55 | 2,398,808.93 | 746,700.89 | 595,093.67 | 164,981.74 | 753,006.08 | 5,216,707.86 |
| (2) Roll-in of Project under Construction | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 554,778.74 | 554,778.74 |
| (3) Others | 27,350.43 | 2,278,076.02 | 1,213,861.93 | 0.00 | 1,203,798.87 | 93,661.18 | 4,816,748.43 |
| 3. Decreased Amounts in the Current Period | 0.00 | 1,318,786.00 | 2,083,989.00 | 5,278,360.42 | 50,079 | 501,019.21 | 9,232,233.63 |
| (1) Disposal or Scrap | 0.00 | 1,318,786.00 | 2,083,989.00 | 5,278,360.42 | 50,079 | 501,019.21 | 9,232,233.63 |
| 4. Balance at End of Period | 1,077,737,497.41 | 379,288,110.53 | 19,360,224.85 | 13,921,255.23 | 3,481,559.14 | 377,516,068.65 | 1,871,304,715.81 |
| Two. Accumulated Impairment | |||||||
| 1. Balance at Beginning of Year | 338,617,240.31 | 180,649,435.37 | 13,179,762.44 | 12,411,204.09 | 1,554,574.37 | 184,807,601.28 | 731,219,817.86 |
| 2. Increased Amounts in the Current Period | 19,931,006.66 | 16,894,163.19 | 1,274,573.68 | 809,355.87 | 1,072,538.63 | 11,460,465.81 | 51,442,103.84 |
| (1) Accrual | 19,931,006.66 | 16,894,163.19 | 1,274,573.68 | 809,355.87 | 1,072,538.63 | 11,460,465.81 | 51,442,103.84 |
| 3. Decreased Amounts in the Current Period | 0.00 | 1,089,276.48 | 1,952,600.89 | 4,227,808.92 | 48913.03 | 204,364.09 | 7,522,963.41 |
| (1) Disposal or Scrap | 0.00 | 1,089,276.48 | 1,952,600.89 | 4,227,808.92 | 48913.03 | 204,364.09 | 7,522,963.41 |
| 4. Balance at End of Period | 358,548,246.97 | 196,454,322.08 | 12,501,735.23 | 8,992,751.04 | 2,578,199.97 | 196,063,703.00 | 775,138,958.29 |
| Three. Impairment Reserves | |||||||
| 1. Balance at Beginning of Year | 7,499,295.92 | 85,746.56 | 0.00 | 0.00 | 0.00 | 0.00 | 7,585,042.48 |
| 2. Increased Amounts in the Current Period | 8,921.52 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8,921.52 |
| (1) Accrual | 8,921.52 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8,921.52 |
| 3. Decreased Amounts in the Current Period | 0.00 | 10,833.96 | 0.00 | 0.00 | 0.00 | 0.00 | 10,833.96 |
| (1) Disposal or Scrap | 0.00 | 10,833.96 | 0.00 | 0.00 | 0.00 | 0.00 | 10,833.96 |
| 4. Balance at End of Period | 7,508,217.44 | 74,912.60 | 0.00 | 0.00 | 0.00 | 0.00 | 7,583,130.04 |
| Four. Book Value | |||||||
| 1. Book Value at End of Period | 711,681,033.00 | 182,758,875.85 | 6,858,489.62 | 4,928,504.19 | 903,359.17 | 181,452,365.65 | 1,088,582,627.48 |
| 2. Book Value at Beginning of Year | 731,035,494.20 | 195,194,829.65 | 6,303,888.59 | 6,193,317.89 | 608,283.16 | 191,808,040.58 | 1,131,143,854.07 |
(2) Fixed assets without property right certificate
| Project | Book Value | Reasons for failure to complete certificate of title |
| Buildings | 6,755,694.68 | No title certificate for auxiliary assets |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Project under Construction | 35,262,660.08 | 28,458,413.67 |
| Engineering materials | ||
| Total | 35,262,660.08 | 28,458,413.67 |
| Items | Balance at End of Period | Balance at Beginning of Year | ||||
| Book Balance | Impairment Reserves | Book Value | Book Balance | Impairment Reserves | Book Value | |
| 1. roasted potato supporting automation line project | 7,062,391.71 | 7,062,391.71 | 6,986,820.05 | 6,986,820.05 | ||
| 2. Walnut cake production line of No.2 plant | 1,427,450.33 | 1,427,450.33 | 4,780,643.33 | 4,780,643.33 | ||
| 3. slope treatment project of No.3 plant | 3,565,377.15 | 3,565,377.15 | 3,565,377.15 | 3,565,377.15 | ||
| 4. add two 4D Corn Flake production lines | 830,116.22 | 830,116.22 | 3,207,668.25 | 3,207,668.25 | ||
| 5. 32,400 tons of oil tank and terminal oil pipeline project | 17,697,673.43 | 17,697,673.43 | 2,869,993.38 | 2,869,993.38 | ||
| 6. 2600bph project of packaging oil 10L production line | 2,809,734.52 | 2,809,734.52 | 2,809,734.52 | 2,809,734.52 | ||
| 7. New production line of small fried compound potato chips in leisure No.1 Factory | 408,286.49 | 408,286.49 | 1,784,537.82 | 1,784,537.82 | ||
| 8. Fried potato chips automation transformation project and others | 1,461,630.23 | 1,461,630.23 | 2,453,639.17 | 2,453,639.17 | ||
| In total | 35,262,660.08 | 35,262,660.08 | 28,458,413.67 | 28,458,413.67 | ||
| 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 |
| Walnut cake production line of No.2 factory | 4,780,643.33 | 14,807.00 | 3,368,000.00 | 1,427,450.33 | |
| Slope treatment project of No.3 Factory | 3,565,377.15 | 3,565,377.15 | |||
| Two new 4D Corn Flake production lines | 3,207,668.25 | 532,967.97 | 2,910,520.00 | 830,116.22 | |
| 32400 ton oil tank and wharf oil pipeline project | 2,869,993.38 | 14,827,680.05 | 17,697,673.43 | ||
| 2600bph project of packaging oil 10L production line | 2,809,734.52 | 2,809,734.52 |
Renovation project of Maishaopackaging automation and blastingmachine
| Renovation project of Maishao packaging automation and blasting machine | 226,950.63 | 226,950.63 | |||
| Total | 17,460,367.26 | 15,375,455.02 | 6,278,520.00 | 26,557,302.28 |
| Items | Buildings | Others | Total |
| One. Original Book Value | |||
| 1. Balance at Beginning of Year | 2,614,541.09 | 108,248.00 | 2,722,789.09 |
| 2. Increased Amounts in the Current Period | 232,751.51 | 232,751.51 | |
| (1) Lease | 232,751.51 | 232,751.51 | |
| 3. Decreased Amounts in the Current Period | |||
| (1) Disposal or Scrap | |||
| 4. Balance at End of Period | 2,847,292.60 | 108,248.00 | 2,955,540.60 |
| Two. Accumulated Impairment | |||
| 1. Balance at Beginning of Year | |||
| 2. Increased Amounts in the Current Period | 444,497.31 | 38,205.18 | 482,702.49 |
| (1) Accrual | 444,497.31 | 38,205.18 | 482,702.49 |
| 3. Decreased Amounts in the Current Period | |||
| (1) Disposal or Scrap | |||
| 4. Balance at End of Period | 444,497.31 | 38,205.18 | 482,702.49 |
| Three. Impairment Reserves | |||
| 1. Balance at Beginning of Year | |||
| 2. Increased Amounts in the Current Period | |||
| (1) Accrual | |||
| 3. Decreased Amounts in the Current Period | |||
| (1) Disposal or Scrap | |||
| 4. Balance at End of Period | |||
| Four. Book Value | |||
| 1. Book Value at End of Period | 2,402,795.29 | 70,042.82 | 2,472,838.11 |
| 2. Book Value at Beginning of Year | 2,614,541.09 | 108,248.00 | 2,722,789.09 |
| Items | Software | Land Use Right | Trademark Right | Others | In total |
| One Original Book Value | |||||
| 1. Balance at Beginning of Year | 4,333,374.75 | 316,407,869.54 | 154,841,200.00 | 689,220.00 | 476,271,664.29 |
| 2. Increased Amounts in the Current Period | 36,253.96 | 36,253.96 | |||
| (1) Purchase | 36,253.96 | 36,253.96 | |||
| (2) Internal R&D | |||||
| (3) Business mergers increased | |||||
| 3. Decreased Amounts in the Current Period | |||||
| (1) Disposal | 26,820.00 | 26,820.00 | |||
| 4. Balance at End of Period | 4,369,628.71 | 316,407,869.54 | 154,841,200.00 | 662,400.00 | 476,281,098.25 |
| Two Accumulated Amortization |
Items
| Items | Software | Land Use Right | Trademark Right | Others | In total |
| 1. Balance at Beginning of Year | 3,597,758.64 | 61,830,987.64 | 56,035,371.69 | 5,811.00 | 121,469,928.97 |
| 2. Increased Amounts in the Current Period | 403,006.92 | 3,176,743.55 | 3,856,962.93 | 7,436,713.40 | |
| (1) Accrual | 403,006.92 | 3,176,743.55 | 3,856,962.93 | 7,436,713.40 | |
| 3. Decreased Amounts in the Current Period | 5,811.00 | 5,811.00 | |||
| (1) Disposal | 5,811.00 | 5,811.00 | |||
| 4. Balance at End of Period | 4,000,765.56 | 65,007,731.19 | 59,892,334.62 | 128,900,831.37 | |
| Three Impairment Reserves | |||||
| 1. Balance at Beginning of Year | 662,400.00 | 662,400.00 | |||
| 2. Increased Amounts in the Current Period | |||||
| (1) Accrual | |||||
| 3. Decreased Amounts in the Current Period | |||||
| (1) Disposal | |||||
| 4. Balance at End of Period | 662,400.00 | 662,400.00 | |||
| Four Book Value | |||||
| 1. Book Value at End of Period | 368,863.15 | 251,400,138.35 | 94,948,865.38 | 346,717,866.88 | |
| 2. Book Value at Beginning of Year | 735,616.11 | 254,576,881.90 | 98,805,828.31 | 21,009.00 | 354,139,335.32 |
| 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 |
| Reconstruction of Majuqiao plant | 14,888,320.13 | 337,094.04 | 14,551,226.09 | ||
| Linan spring garden woodland rental fees | 4,970,592.00 | 56,484.00 | 4,914,108.00 | ||
| Aisen green treasure Company housing renovation | 141,020.52 | 8,819.34 | 132,201.18 | ||
| Ancient coin branch car rental fee | 94,028.99 | 11,753.64 | 82,275.35 | ||
| Amortization of laboratory decoration costs | 431,242.20 | 240,594.06 | 32,485.43 | 639,350.83 | |
| Office decoration | 4,397.66 | 4,397.66 | 0.00 | ||
| Total | 20,529,601.50 | 240,594.06 | 451,034.11 | 20,319,161.45 |
(1) Deferred Income Tax Assets Not Being Offset
| Items | Balance at End of Period | Balance at Beginning of Year | ||
| Deductible Temporary Difference | Deferred Income Tax Assets | Deductible Temporary Difference | Deferred Income Tax Assets | |
| Asset Impairment Reserves | 329,661.60 | 82,415.40 | 254,446.99 | 63,611.73 |
| Deductible Loss | 5,789,804.01 | 1,447,451.00 | 30,360,671.96 | 7,590,167.99 |
| Credit impairment Loss | 1,229,052.40 | 307,263.10 | 1,368,158.01 | 341,929.04 |
| Deferred Income | 10,722,337.40 | 2,680,584.35 | 10,722,337.40 | 2,680,584.35 |
| Valuation of Financial Instruments and Derivative Financial Instruments | 5,677,134.00 | 1,419,283.50 | ||
| Credit impairment Loss | 47,389,986.68 | 11,847,496.67 | 5,677,134.00 | 1,419,283.50 |
| In total | 71,137,976.09 | 17,784,494.02 | 48,382,748.36 | 12,095,576.61 |
| Items | Balance at End of Period | Balance at Beginning of Year | ||
| Taxable Temporary Difference | Deferred Income Tax Liabilities | Taxable Temporary Difference | Deferred Income Tax Liabilities | |
| Valuation and appreciation of assets in merger of enterprises not under the same control | 159,693,033.00 | 39,923,258.25 | 164,849,010.97 | 41,212,252.73 |
| Valuation of Financial Instruments and Derivative Financial Instruments | 178,608,829.52 | 44,652,207.38 | 130,600,895.97 | 32,652,310.83 |
| In total | 338,301,862.52 | 84,575,465.63 | 295,449,906.94 | 73,864,563.56 |
| Items | Offseting amount of deferred tax assets and liabilities | Carrying amount after offsetting between deferred tax assets and liabilities | offseting amount of deferred tax assets and liabilities at the end of last period | Carrying amount after offsetting between deferred tax assets and liabilitie at the end of last period |
| Deferred tax asset | 2,606,045.35 | 15,178,448.67 | 8,748,762.34 | 3,346,814.27 |
| Deferred tax liabilities | 2,606,045.35 | 81,969,420.28 | 8,748,762.34 | 65,115,801.22 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Deductible Loss | 33,884.15 | 33,884.15 |
| Deductible temporary differences | 100,604,379.80 | 100,248,841.85 |
| In total | 100,638,263.95 | 100,282,726.00 |
| Year | Balance at End of Period | Balance at Beginning of Year | Notes |
| 2021 | 4,504,020.42 | ||
| 2022 | 4,030,889.63 | 4,030,889.63 | |
| 2023 | 19,123,515.53 | 19,123,515.53 | |
| 2024 | 47,484,926.46 | 47,484,926.46 | |
| 2025 | 25,105,489.81 | 25,105,489.81 | |
| 2026 | 4,859,558.37 |
Year
| Year | Balance at End of Period | Balance at Beginning of Year | Notes |
| Total | 100,604,379.80 | 100,248,841.85 |
| Items | Ending Balance | Beginning Balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Equipment and Project Funds | 2,517,240.00 | 2,517,240.00 | ||||
| Three-year term deposit | 366,752,446.74 | 366,752,446.74 | 317,222,341.67 | 317,222,341.67 | ||
| Total | 366,752,446.74 | 366,752,446.74 | 319,739,581.67 | 319,739,581.67 | ||
| Items | Balance at End of Period | Balance at Beginning of Year |
| Pledge loan | ||
| Mortgage loan | ||
| Guaranteed Loan | 105,088,229.17 | |
| Fiduciary Loan | 1,722,856,775.38 | 1,392,325,849.88 |
| In total | 1,722,856,775.38 | 1,497,414,079.05 |
| Item | Ending balance | Beginning balance |
| Changes in fair value of hedging instruments | 371,219,136.84 | |
| Total | 371,219,136.84 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Material Funds Payable | 125,240,425.73 | 60,908,293.40 |
| Project Funds Payable | 4,432,983.56 | 12,181,233.26 |
| Equipment Funds Payable | 820,054.00 | 1,182,750.00 |
| Short-term rental rent payable | 1,055,100.00 | |
| Storage Fee | 951,999.90 | |
| Others | 1,664,288.39 | 1,111,798.73 |
| In total | 134,164,851.58 | 75,384,075.39 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Advance collection of rent | 1,462,678.11 | 1,087,874.02 |
Items
| Items | Balance at End of Period | Balance at Beginning of Year |
| In total | 1,462,678.11 | 1,087,874.02 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Loans | 528,793,781.94 | 341,860,984.30 |
| Service payment | 5,013,276.60 | 5,013,276.60 |
| In total | 533,807,058.54 | 346,874,260.90 |
| 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 | 32,098,807.71 | 132,482,495.06 | 152,429,453.01 | 12,151,849.76 |
| Two After-service Welfare- Set up ESP liabilities | 1,246,329.23 | 13,954,391.98 | 13,642,589.56 | 1,558,131.65 |
| Three Dismission Welfare | 449,429.50 | 449,429.50 | ||
| Four Other benefits due within one year | ||||
| In total | 33,345,136.94 | 146,886,316.54 | 166,521,472.07 | 13,709,981.41 |
| 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 | 28,101,795.99 | 103,722,699.31 | 123,807,432.05 | 8,017,063.25 |
| 2. Welfare Expense of Employee | 20.00 | 3,763,650.36 | 3,626,269.36 | 137,401.00 |
| 3. Social Insurance Expense | 683,142.38 | 9,208,899.95 | 9,095,940.17 | 796,102.16 |
| Among them: Medical Insurance Premiums | 579,700.06 | 8,415,916.25 | 8,293,916.35 | 701,699.96 |
| Industrial Injury Insurance Premiums | 52,319.34 | 464,299.02 | 458,458.64 | 58,159.72 |
| Birth Insurance Premiums | 50,718.04 | 214,872.75 | 229,753.25 | 35,837.54 |
| Others | 404.94 | 113,811.93 | 113,811.93 | 404.94 |
| 4. Housing Provident Funds | 328,343.85 | 7,254,473.25 | 7,405,536.25 | 177,280.85 |
| 5. Labor Union Expense and Personnel Education Fund | 2,985,505.49 | 2,189,541.97 | 2,365,705.63 | 2,809,341.83 |
| 6. Short-term Compensated Absences | ||||
| 7. Short-term profit sharing plan | ||||
| 8. Other short-term remuneration | 6,343,230.22 | 6,128,569.55 | 214,660.67 | |
| In total | 32,098,807.71 | 132,482,495.06 | 152,429,453.01 | 12,151,849.76 |
| 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 | 1,173,795.55 | 12,475,630.78 | 12,179,730.08 | 1,469,696.25 |
| 2. Unemployment Insurance Expense | 36,450.79 | 476,575.29 | 470,248.04 | 42,778.04 |
| 3. Enterprise Annuity Charges | 36,082.89 | 1,001,685.91 | 992,111.44 | 45,657.36 |
| 4. Other | 500.00 | 500.00 |
Items
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| Total | 1,246,329.23 | 13,954,391.98 | 13,642,589.56 | 1,558,131.65 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Corporate Income Tax | 41,280,422.13 | 21,972,563.71 |
| VAT | 18,335,520.37 | 20,557,653.24 |
| Urban Maintenance and Construction Tax | 1,323,227.73 | 1,662,803.83 |
| House Property Tax | 2,054,119.79 | 2,330,072.39 |
| Land Use Tax | 1,021,504.39 | 1,203,859.39 |
| Individual Income Tax | 180,633.69 | 1,681,176.51 |
| Educational Surtax | 521,545.35 | 663,399.57 |
| Local Educational Surtax | 399,839.96 | 494,409.45 |
| Stamp Tax | 396,419.42 | 314,395.32 |
| Environmental protection tax | 3,130.92 | 3,737.44 |
| Water conservancy construction fee | 143.79 | |
| In total | 65,516,363.75 | 50,884,214.64 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Interest Payable | 21,082,795.47 | 21,082,795.47 |
| Dividends Payable | 11,013,302.88 | 11,013,302.88 |
| Other Accounts Payable | 81,727,855.24 | 40,196,782.89 |
| In total | 113,823,953.59 | 72,292,881.24 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Interest on long-term loans with interest paid by installments and principal paid at maturity | ||
| Interest payable on short term loans | ||
| Loan Interest between Enterprises | 21,082,795.47 | 21,082,795.47 |
| In total | 21,082,795.47 | 21,082,795.47 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Common stock dividends | 7,800,000.00 | 7,800,000.00 |
| Others | 3,213,302.88 | 3,213,302.88 |
| In total | 11,013,302.88 | 11,013,302.88 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Intercourse Funds of Related Parties | 2,708,699.21 | 1,831,079.90 |
| Intercourse Funds between Units | 43,159,282.35 | 13,468,108.09 |
| Personal Intercourse Funds | 3,352,982.86 | 4,025,881.59 |
| Guaranteed Deposit and Deposit | 30,430,944.78 | 16,271,518.35 |
| Various Insurances of Employee | 1,539,145.44 | 2,102,370.03 |
Items
| Items | Balance at End of Period | Balance at Beginning of Year |
| Others | 536,800.60 | 2,497,824.93 |
| In total | 81,727,855.24 | 40,196,782.89 |
| Item | End balance | Beginning balance |
| Value-added tax to be written off | 30,305,027.90 | 8,319,696.79 |
| Changes in the fair value of hedging hedged items | 101,746,226.67 | |
| Total | 132,051,254.57 | 8,319,696.79 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Pledge borrowing | ||
| Mortgage borrowing | ||
| Guaranteed borrowing | ||
| Credit borrowing | 71,000,000.00 | |
| In total | 71,000,000.00 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Accounts Payable of operating lease | 2,425,606.75 | 2,614,541.09 |
| In total | 2,425,606.75 | 2,614,541.09 |
| Items | Balance at End of Period | Balance at Beginning of Year |
| Net liabilities of defined benefit plan in post employment benefits | ||
| Dismission Welfare | ||
| Other Long-term Welfare | 5,677,134.00 | 5,677,134.00 |
| In total | 5,677,134.00 | 5,677,134.00 |
| 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 | 68,716,699.34 | 946,223.34 | 67,770,476.00 | ||
| In total | 68,716,699.34 | 946,223.34 | 67,770,476.00 | -- |
| Items Receiving Subsidy | Balance at Beginning of Year | Increase in the Current Period | Charge to Non-operating Income | Charge to other Profits | Other changes | Balance at End of Period | Asset related / income related |
| Enterprise foundation supporting in the construction stage of "Tianjin Lingang Industrial Zone Management Committee" | 49,929,123.61 | 638,752.08 | 49,290,371.53 | Asset related | |||
| Special subsidy for | 10,296,486.90 | 10,296,486.90 | Asset |
Items Receiving Subsidy
| Items Receiving Subsidy | Balance at Beginning of Year | Increase in the Current Period | Charge to Non-operating Income | Charge to other Profits | Other changes | Balance at End of Period | Asset related / income related |
| infrastructure investment | related | ||||||
| The relocation compensation | 4,232,401.96 | 4,232,401.96 | Asset related | ||||
| Tianjin Binhai New District’s Industrially Technical Renovation and Park Construction Funds as well as Expenditures for Science and Technology | 2,092,592.45 | 111,111.12 | 1,981,481.33 | Asset related | |||
| Special subsidies for technical upgrading of production lines | 450,000.00 | 450,000.00 | Asset related | ||||
| Key technology research and industrialization project of "moderate processing" of grain and oil | 778,388.24 | 38,919.42 | 739,468.82 | Asset related | |||
| Construction of provincial grain reserve information management system to form asset entry project | 633,746.30 | 100,343.16 | 533,403.14 | Asset related | |||
| Research and technology demonstration of green and clean production equipment and process for edible oil | 243,569.92 | 28,000.02 | 215,569.90 | Asset related | |||
| Design of electric heating system for oil tank | 60,389.96 | 29,097.54 | 31,292.42 | Asset related | |||
| In total | 68,716,699.34 | 946,223.34 | 67,770,476.00 | -- |
| Items | Balance at Beginning of Year | Changes in the Current Period（+、-） | Balance at End of Period | ||||
| New Share Issue | Share Donation | Share Transfer of Provident Fund | Others | Sub-total | |||
| 1. Shares with Restricted Conditions | 207,336,985.00 | -164,877,598.00 | -164,877,598.00 | 42,459,387.00 |
| (1) State Shareholding |
| (2) State-owned Legal-person Shareholding | 164,877,598.00 | -164,728,098.00 | -164,728,098.00 | 149,500.00 |
| (3) Other Domestic Capital Shareholding | 42,459,387.00 | -149,500.00 | -149,500.00 | 42,309,887.00 |
| Including: Domestic Legal-person Shareholding | 1,299,500.00 | -149,500.00 | -149,500.00 | 1,150,000.00 |
| Domestic Natural Person Shareholding | 41,159,887.00 | 41,159,887.00 |
| (4) Foreign Shareholding |
| Including: Foreign Legal-person Shareholding |
| Foreign Natural Person Shareholding |
| 2. Tradable Shares without Restricted Conditions | 519,613,266.00 | 164,877,598.00 | 164,877,598.00 | 684,490,864.00 |
Items
| 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) RMB Ordinary Shares | 454,638,266.00 | 164,877,598.00 | 164,877,598.00 | 619,515,864.00 |
| (2) Domestically Listed Foreign Shares | 64,975,000.00 | 64,975,000.00 |
| (3) Listed Foreign Shares Overseas |
| (4) Others |
| In total | 726,950,251.00 | 0.00 | 0.00 | 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 |
| Capital Premium (Stock Premium) | 1,322,887,986.38 | 1,322,887,986.38 | ||
| Other Capital Reserves | 351,940,364.57 | 351,940,364.57 | ||
| In total | 1,674,828,350.95 | 1,674,828,350.95 |
| Items | Amounts Occurred in the Current Period | |||||||
| Balance at Beginning of Year | Amounts Occurred before Income Tax in the Current Period | Less: Other Comprehensive Incomes Charged at Earlier Stage and Current Roll-in Profit and Loss | Less: included in other comprehensive income in the previous period and transferred to retained income in the current period | Less: Income Tax Expense | Attributable to Parent Company After Tax | Attributable to Minority Shareholders After Tax | Balance at End of Period | |
| One Other comprehensive incomes that won’t be classified into profit and loss | ||||||||
| 1. Remeasure and set the change amount of benefit plan | ||||||||
| 2. Other comprehensive income that cannot be transferred to profits and losses under the equity method | ||||||||
| 3. Changes in the fair value of other equity instrument investments | ||||||||
Items
| Items | Amounts Occurred in the Current Period | |||||||
| Balance at Beginning of Year | Amounts Occurred before Income Tax in the Current Period | Less: Other Comprehensive Incomes Charged at Earlier Stage and Current Roll-in Profit and Loss | Less: included in other comprehensive income in the previous period and transferred to retained income in the current period | Less: Income Tax Expense | Attributable to Parent Company After Tax | Attributable to Minority Shareholders After Tax | Balance at End of Period | |
| 4. Changes in fair value of the enterprise's own credit risk | ||||||||
| Two Other comprehensive incomes that will be classified into profit and loss | -363,258.66 | -80,447.42 | -443,706.08 | |||||
| 1. Other comprehensive income transferable to profit and loss under the equity method | -355,212.00 | -355,212.00 | ||||||
| 2. Changes in the fair value of other debt investments | ||||||||
| 3. Amount of financial assets reclassified into other comprehensive income | ||||||||
| 4. Provision for credit impairment of other debt investment | ||||||||
| 5. Effective part of cash flow hedging | ||||||||
| 6. Converted difference between foreign currency financial statements | -8,046.66 | -80,447.42 | -88,494.08 | |||||
| Total | -363,258.66 | -80,447.42 | -443,706.08 | |||||
| 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 |
Items
| Items | Balance at Beginning of Year | Increase in the Current Period | Decrease in the Current Period | Balance at End of Period |
| 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 | 187,033,763.26 | 2,186,806.56 |
| Adjustment on total number of undistributed profit at beginning of period (increase+ and decrease-) | ||
| Adjusted undistributed profit at beginning of period | 187,033,763.26 | 2,186,806.56 |
| Add: net profit attributable to parent Company in the current period | 88,328,197.91 | 73,762,895.19 |
| 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 | 275,361,961.17 | 75,949,701.75 |
| Items | Amounts in the Current Period | Amounts in the Prior Period | ||
| Revenue | Cost | Revenue | Cost | |
| Prime Business | 5,314,299,316.84 | 5,095,458,647.50 | 3,737,897,021.63 | 3,352,581,703.86 |
| Other Business | 13,947,518.99 | 4,086,340.91 | 12,876,046.00 | 3,619,554.20 |
| In total | 5,328,246,835.83 | 5,099,544,988.41 | 3,750,773,067.63 | 3,356,201,258.06 |
| Name of Industry (or Business) | Amounts in the Current Period | Amounts in the Prior Period | ||
| Revenue | Cost | Revenue | Cost | |
| Oil and Oil Seeds | 4,869,341,487.59 | 4,764,017,743.17 | 3,288,905,719.04 | 3,046,368,506.47 |
| Food Processing | 444,957,829.25 | 331,440,904.33 | 448,991,302.59 | 306,213,197.39 |
| In total | 5,314,299,316.84 | 5,095,458,647.50 | 3,737,897,021.63 | 3,352,581,703.86 |
| Name of Region | Amounts in the Current Period | Amounts in the Prior Period | ||
| Revenue | Cost | Revenue | Cost | |
| North China | 4,914,886,135.81 | 4,796,869,662.51 | 3,324,692,828.54 | 3,069,424,264.71 |
| East China | 334,001,372.42 | 245,689,750.46 | 345,482,036.95 | 233,630,691.51 |
| Northeast | 65,411,808.61 | 52,899,234.53 | 67,722,156.14 | 49,526,747.64 |
| In total | 5,314,299,316.84 | 5,095,458,647.50 | 3,737,897,021.63 | 3,352,581,703.86 |
Items
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Urban Maintenance and Construction Tax | 3,913,915.24 | 2,548,143.53 |
| Educational Surtax | 1,707,476.99 | 1,122,628.97 |
| Local Educational Surtax | 1,138,317.97 | 748,419.33 |
| House Property tax | 2,381,706.84 | 2,283,241.92 |
| Land Use Tax | 494,944.34 | 697,236.79 |
| Stamp Tax | 1,688,284.40 | 1,184,227.85 |
| Vehicle and Vessel Use Tax | 13,396.03 | 18,449.10 |
| Resources Tax | 4,790.20 | |
| Other Taxes and Fees | 25,862.08 | 43,973.68 |
| In total | 11,363,903.89 | 8,651,111.37 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Employee Compensation (including social security, etc) | 31,765,392.17 | 30,679,537.79 |
| Sales Promotion Expenses | 14,691,957.83 | 25,997,677.50 |
| Transportation Fees | 0.00 | 15,690,237.64 |
| Warehousing Fees | 6,167,549.59 | 15,404,986.89 |
| Depreciation | 6,696,732.33 | 8,297,585.79 |
| Material consumption, sample and product cost | 2,485,399.23 | 2,607,074.83 |
| Travel Expenses | 3,258,440.43 | 32,550.49 |
| Repair Costs | 306,168.70 | 196,031.21 |
| Loading and Unloading Fees | 715,023.09 | 733,797.56 |
| Water and Electricity Fees | 661,247.68 | 537,197.29 |
| Vehicle Fees | 483,097.45 | 288,457.98 |
| Packing Expenses | 87,852.52 | 377,669.68 |
| Test and Detection Fees | 82,360.64 | 92,866.07 |
| Business Entertainment Expenses | 130,610.36 | 12,124.00 |
| Others | 9,145,744.50 | 5,693,324.42 |
| Total | 76,677,576.52 | 106,641,119.14 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Employee Compensation (including social security, etc) | 43,851,104.43 | 39,515,162.11 |
| Impairment Costs | 11,973,858.13 | 8,780,269.70 |
| Amortization of Assets | 4,901,086.37 | 7,640,013.04 |
| Hiring an intermediary fee | 3,847,980.48 | 6,913,392.38 |
| Company Expenses | 1,404,552.02 | 5,653,026.97 |
Items
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Repair Costs | 817,744.13 | 315,031.15 |
| Lease fee | 1,891,512.26 | 2,300,085.56 |
| Vehicle Fees | 1,204,195.24 | 1,171,579.21 |
| Information Network Fees | 213,966.44 | 546,524.14 |
| Business Entertainment Expenses | 602,406.43 | 530,321.82 |
| Environmental Protection Fees | 452,173.78 | 202,183.63 |
| Commercial Insurance Expenses | 419,856.67 | 249,530.18 |
| Workers Insurance Expenses | 364,967.31 | 191,201.44 |
| Security Protection Fees | 371,966.61 | 362,895.58 |
| Labor Protection Fees | 198,526.82 | 250,202.03 |
| Material Consumption | 183,533.95 | 178,299.87 |
| Travel Expenses | 498,287.95 | 168,024.21 |
| Hire an intermediary fee Other Expenses | 11,601,981.52 | 3,064,543.27 |
| In total | 84,799,700.54 | 78,032,286.29 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Research fees | 5,170,755.15 | 2,803,717.02 |
| In total | 5,170,755.15 | 2,803,717.02 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Interest Expenses | 19,854,113.81 | 16,975,042.06 |
| Less: Interest Income | 5,408,203.94 | 5,373,488.21 |
| Exchange Profit and Loss | 25,480.77 | 10,647,837.51 |
| Service Charges | 1,149,403.55 | 561,292.42 |
| In total | 15,620,794.19 | 22,810,683.78 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Government Subsidy Related to Daily Corporate Activities | 5,839,070.44 | 4,891,100.00 |
| Return of Service Charges of Withholding Individual Income Tax | 586,991.10 | 155,848.84 |
| In total | 6,426,061.54 | 5,046,948.84 |
| The source of the return on investment | Amounts in the Current Period | Amounts in the Prior Period |
| Long-term equity investment income accounted with equity method | 25,976,509.34 | 6,947,778.68 |
| The investment income of a financial asset measured at fair value and whose changes are included in the current profit and loss during the holding period | ||
| Investment income obtained during the holding of transactional financial assets | 607,342.87 | 1,919,322.71 |
The source of the return on investment
| The source of the return on investment | Amounts in the Current Period | Amounts in the Prior Period |
| Investment income from disposal of wealth management products | 4,663,045.87 | 7,828,824.60 |
| Investment income of disposing trading financial assets | ||
| Others | ||
| Total | 31,246,898.08 | 16,695,925.99 |
| Source of generating income with changes in fair value | Amounts in the Current Period | Amounts in the Prior Period |
| Trading financial assets | 61,697,730.47 | -76,876,667.25 |
| Including: income with changes in fair value generated by derivative financial instruments | 61,697,730.47 | -76,876,667.25 |
| Trading financial liabilities | ||
| Investment real estate measured by fair value | ||
| In total | 61,697,730.47 | -76,876,667.25 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Gains or losses on disposal of fixed assets | -58,126.00 | |
| Gains or losses on disposal of intangible assets | -559.83 | |
| In total | -58,685.83 |
| Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
| Total non-current assets scrap gains: | 63,990.38 | 63,990.38 | |
| Including: fixed assets scrap profit | 63,990.38 | 63,990.38 | |
| profit from scrap of intangible assets | |||
| Donation Gains | 10,000.00 | ||
| Government Subsidy | 87,991.62 | ||
| Asset Inventory Surplus Gains | |||
| Relocation Compensation | 49,231.02 | 127,712.82 | 49,231.02 |
| Demand Compensation Income | 1,040,420.14 | 45,892.72 | 1,040,420.14 |
| Other Gains | 125,472.26 | 417,842.66 | 125,472.26 |
| In total | 1,279,113.80 | 689,439.82 | 1,279,113.80 |
| Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
| Total loss on scrap of non current assets | 174,235.08 | 125,166.92 | 174,235.08 |
| Including: loss on scrap of fixed assets | 174,235.08 | 125,166.92 | 174,235.08 |
Items
| Items | Amounts in the Current Period | Amounts in the Prior Period | Amounts Charged to Non-recurring Profit and Loss |
| loss on scrap of intangible assets | |||
| Donation Expenses | 43,940.54 | ||
| Inventory losses | 24,500.00 | 24,500.00 | |
| Relocation Loss | 51,705.77 | 117,085.86 | 51,705.77 |
| Penalty expenditure | 11,410.09 | 500.00 | 11,410.09 |
| Compensation | 1,015,309.53 | ||
| Others | 844.38 | 116,668.92 | 844.38 |
| Total | 262,695.32 | 1,418,671.77 | 262,695.32 |
| Amounts in the Current Period | Amounts in the Prior Period | Amounts in the Current Period |
| Income Tax Expenses of the Current Period | 30,647,755.00 | 40,543,901.19 |
| Deferred Income Tax Expenses | 6,310,979.14 | -16,082,069.33 |
| Total | 36,958,734.14 | 24,461,831.86 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Total Profits | 135,397,539.87 | 119,769,867.60 |
| Income tax expenses calculated by statutory/applicable tax rate | 33,849,384.97 | 21,377,859.59 |
| Effect of subsidiary corporations being applicable to different tax rates | -205,910.89 | -163,343.19 |
| Adjustment on effect of income tax in the prior period | 69,840.82 | |
| Effect of Non-taxable Incomes | -5,206,628.35 | -818,108.22 |
| Effect of Non-deductible cost, expense and loss | 11,964.14 | |
| 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 | 8,487,990.35 | 4,068,635.64 |
| Effect of addition | ||
| Others | -47,906.90 | -3,211.96 |
| Income Tax Expenses | 36,958,734.14 | 24,461,831.86 |
(1) Receiving other cash related to operation activities
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Intercourse Funds of Related Parties | 21,322,392.80 | 21,078,496.81 |
| Intercourse Funds of Other Units | 68,948,398.19 | 126,023,625.30 |
| Non-operating Income and other income | 461,551.34 | 818,480.79 |
| Interest Income | 4,224,691.03 | 4,197,572.37 |
| Future Margins | 1,194,590,311.77 | 333,158,112.00 |
| Others | 7,011,863.15 | 3,357,922.87 |
| Total | 1,296,559,208.28 | 488,634,210.14 |
| Items | Amounts in the Current Period | Amounts in the Prior Period |
| Intercourse Funds of Related Parties | 1,581,282.06 | 1,285,132.00 |
| Intercourse Funds of Other Units | 1,036,471,337.77 | 385,951,971.50 |
| Payment for Administration Expenses | 12,020,073.04 | 11,735,512.89 |
| Payment for Operating Expenses | 17,754,375.04 | 28,815,251.90 |
| Non-operating Expenses | 108,141.65 | 1,089,682.49 |
| Petty Cash Paid | 478,289.75 | 302,932.58 |
| Bank Charges | 1,125,306.40 | 563,721.88 |
| Others | 9,848,614.49 | 5,045,373.28 |
| In total | 1,079,387,420.20 | 434,789,578.52 |
| Supplementary Materials | Amounts in the Current Period | Amounts in the Prior Period |
| 1. Adjusting net accounting profit to operating cash flow | ||
| Net Profit | 98,438,805.73 | 95,308,035.74 |
| Add: Assets Impairment Reserves | ||
| Credit impairment loss | ||
| Fixed Assets Depreciation, Oil-and-gas Assets Depreciation and Productive Biological Assets Depreciation | 52,265,152.07 | 48,728,162.99 |
| Amortization of Intangible Assets | 7,436,713.40 | 7,396,651.55 |
| Amortization of Long-term Deferred Expenses | 451,034.11 | 468,031.78 |
| Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets (Fill in profit with symbol “－”) | 58,685.83 | |
| Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) | -174,235.08 | 125,166.92 |
| Losses on Changes in Fair Value (Fill in profit with symbol “－”) | -61,697,730.47 | 76,876,667.25 |
| Financial Expenses (Fill in profit with symbol “－”) | 19,879,594.58 | 27,622,879.57 |
| Investment Losses (Fill in profit with symbol “－”) | -31,246,898.08 | -16,695,925.99 |
| Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) | -11,734,401.87 | -10,232,677.86 |
| Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) | 16,853,619.06 | -7,136,904.20 |
| Decrease in Inventory (Fill in increase with symbol “－”) | -374,437,109.01 | 504,378,180.81 |
| Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) | 206,404,522.78 | -408,709,949.07 |
| Increase in Items of Operating Receivables (Fill in decrease with symbol “－”) | 355,352,692.40 | -131,032,498.73 |
| Others | ||
| Net Cash Flows from Operating Activities | 277,850,445.45 | 187,095,820.76 |
2. Major investment and financing activities that do not involve cash
payments
| 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 | 778,877,443.37 | 570,017,788.15 |
| Less: cash balance at beginning of period | 334,389,017.41 | 555,097,777.21 |
| 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 | 444,488,425.96 | 14,920,010.94 |
| Items | Balance at End of Period | Balance at Beginning of Period |
| One Cash | 778,877,443.37 | 334,389,017.41 |
| Including: cash in stock | 90,718.49 | 16,761.72 |
| Bank deposit available for payment at any time | 648,679,613.98 | 298,158,812.41 |
| Other currency funds available for payment at any time | 130,107,110.90 | 36,213,443.28 |
| Deposits with central bank available for payment | ||
| Interbank deposit | ||
| Interbank placements | ||
| Two Cash Equivalents | ||
| Including: bond investment maturing within three months | ||
| Three Balance of Cash and Cash Equivalents at End of Period | 778,877,443.37 | 334,389,017.41 |
| Including: restricted cash and cash equivalents used by parent Company or intra-group affiliates |
| Items | Book Value at End of Period | Reasons being Restricted |
| Currency Funds | 1,077,152.20 | Arbitration freezing |
| Inventory | 3,775,954.85 | Loan Mortgage |
| Investment Real Estate | 6,051,420.47 | Loan Mortgage |
| Fixed Assets | 1,926,344.90 | Loan Mortgage |
| In total | 12,830,872.42 |
| Items | Balance of Foreign Currency at End of Period | Exchange Rate Convert | Balance of Converting to RMB at End of Period |
| Monetary fund | 6,072,048.30 | 6.4601 | 39,226,039.22 |
| Including: US Dollars | 6,072,048.30 | 6.4601 | 39,226,039.22 |
| Accounts receivable | 613,962.28 | 6.4601 | 3,966,257.73 |
| Including: US Dollars | 613,962.28 | 6.4601 | 3,966,257.73 |
| Advanced payment | 11,668,087.35 | 6.4601 | 75,377,011.09 |
| Including: US Dollars | 11,668,087.35 | 6.4601 | 75,377,011.09 |
| Other receivalbe | 1,000,000.00 | 6.4601 | 6,460,100.00 |
Items
| Items | Balance of Foreign Currency at End of Period | Exchange Rate Convert | Balance of Converting to RMB at End of Period |
| Including: US Dollars | 1,000,000.00 | 6.4601 | 6,460,100.00 |
| Short-term loan | 4,385,478.81 | 6.4601 | 28,330,631.66 |
| Including: US Dollars | 4,385,478.81 | 6.4601 | 28,330,631.66 |
| Accounts Payable | 83,790.00 | 6.4601 | 541,291.78 |
| Including: US Dollars | 83,790.00 | 6.4601 | 541,291.78 |
| Contract Liabilities | 3,014,448.97 | 6.4601 | 19,473,641.79 |
| Including: US Dollars | 3,014,448.97 | 6.4601 | 19,473,641.79 |
| Other Payables | 273,332.79 | 6.4601 | 1,765,757.16 |
| Including: US Dollars | 273,332.79 | 6.4601 | 1,765,757.16 |
| Type | Amount | Presentation item | Amount recorded in profit and loss |
| VAT return | 4,016,218.89 | Other income | 4,016,218.89 |
| Enterprise infrastructure supporting on construction stage by Tianjin Harbor Industry Zone Management Committee | 638,752.08 | Other income | 638,752.08 |
| Subsidies for training workers | 389,400.00 | Other income | 389,400.00 |
| Subsidies for employment stabilization | 387,281.08 | Other income | 387,281.08 |
| Fund on industury technology improvement & Park construction by Tianjin Binhai New Area and Expenditure on science technology | 111,111.12 | Other income | 111,111.12 |
| Asset account formed by provincial grain reserve management information system | 100,343.16 | Other income | 100,343.16 |
| Job subsidy for the employment center of the Disabled Union | 88,717.13 | Other income | 88,717.13 |
| Industrial project on key-tech research of grain and oil “processing adaptation” | 38,919,42 | Other income | 38,919.42 |
| Allotment on Electric Heating System for Oil Tank System | 29,097.54 | Other income | 29,097.54 |
| Green cleaning producing equipment for edible oil and tech-research and science demonstration | 28,000.02 | Other income | 28,000.02 |
| Subsidies for social insurance | 9,600.00 | Other income | 9,600.00 |
| Subsidies for grain and oil market testing | 1,350.00 | Other income | 1,350.00 |
| Preferential tax control system | 280.00 | Other income | 280.00 |
| Total | 5,839,070.44 | 5,839,070.44 |
The Company has no change in the scope of merger during this reporting period.VIII. Equities in Other Entities
1. Equities in Subsidiaries
(1) Composition of the Company
| Name of Subsidiary | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Voting rights ratio (%) | Mode of Acquisition | |
| Direct | Indirect | ||||||
| Beijing Jingliang Food Co., Ltd. | Beijing | Beijing | Investment management | 100 | 100 | Merger under the same control | |
| Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | Tianjin | Tianjin | Agricultural Product and By Product Processing | 70 | 70 | Merger under the same control | |
| Beijing Jingliang Oil and Fat Co., Ltd. | Beijing | Beijing | Grain and oil trade | 100 | 100 | Merger under the same control | |
| Jingliang (Hebei) Oil Industry Co., Ltd. | Hebei | Hebei | Farm and Sideline Food Processing | 51 | 51 | Merger under the same control | |
| Beijing Guchuan Edible Oil Co., Ltd. | Beijing | Beijing | Grain and oil trade | 100 | 100 | Merger under the same control | |
| Beijing Eisen-Lubao Oil Co., Ltd. | Beijing | Beijing | Farm and Sideline Food Processing | 100 | 100 | Merger under the same control | |
| Beijing Tianweikang Oil Distribution Center Co., Ltd. | Beijing | Beijing | Warehousing | 100 | 100 | Merger under the same control | |
| Beijing Guchuan Bread Food Co., Ltd. | Beijing | Beijing | Food Processing | 100 | 100 | Merger under the same control | |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Hangzhou Lin'an Xiaotianshi Food Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
Liaoning XiaoWang Zi FoodCo., Ltd.
| Liaoning Xiao Wang Zi Food Co., Ltd. | Liaoning | Liaoning | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Linqing Xiao Wang Zi Food Co., Ltd. | Linqing | Linqing | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Lin'an Chunmanyuan Agricultural Development Co., Ltd. | Hangzhou | Hangzhou | Food Processing | 17.6794 | 77.2072 | 94.8866 | Combination not under same control |
| Jingliang (Singapore) International Trade Co., Ltd. | Singapore | Singapore | Grain trade | 100 | 100 | Establishment by investment | |
| Jingliang Rural Complex Construction and Operations (Xinyi) Co., Ltd. | Xinyi | Xinyi | Land remediation | 51 | 51 | Establishment by investment | |
| Jingliang (Caofeidian) Agricultural Development Co., Ltd. | Tangshan | Tangshan | Plantation | 51 | 51 | Establishment by investment | |
| Beijing jingliang gubi oil and grease co. LTD | Beijing | Beijing | Grain and oil trade | 100 | 100 | Establishment by investment |
| Name of Subsidiary | Shareholding Ratio of Minority Shareholders (%) | Voting rights ratio of Minority Shareholders (%) | Profit And Loss Attributable to Minority Shareholders for the Current Period | Dividends Distributed to Minority Shareholders for the Current Period | Balance of Minority Shareholder's Equity at the End of the Period |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | 5.1134 | 5.1134 | 2,525,198.34 | 50,994,568.52 | |
| Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | 30 | 30 | 7,779,000.00 | 273,039,839.72 |
| Items | Ending balance or Amount incurred in the current period | |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | |
| Current Assets | 366,155,906.90 | 1,452,913,188.33 |
| Non-current Assets | 625,771,532.39 | 776,598,031.40 |
| Total Assets | 991,927,439.29 | 2,229,511,219.73 |
| Current Liabilities | 105,125,445.57 | 1,227,294,364.60 |
Items
| Items | Ending balance or Amount incurred in the current period | |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | |
| Non-current Liabilities | 20,656,022.86 | 92,084,211.66 |
| Total Liabilities | 125,781,468.43 | 1,319,378,576.26 |
| Operating Income | 400,535,661.71 | 2,066,464,701.05 |
| Net Profit (Loss) | 42,774,753.04 | 25,929,844.42 |
| Total Comprehensive Income | 42,774,753.04 | 25,929,844.42 |
| Cash Flow from Operating Activities | 21,727,662.43 | 424,430,320.67 |
| Items | Beginning balance or Amount incurred in the current period | |
| Zhejiang Xiao Wang Zi Food Co., Ltd. | Jingliang (Tianjin) Grain and Oil Industry Co., Ltd. | |
| Current Assets | 348,212,958.32 | 1,451,014,894.50 |
| Non-current Assets | 636,041,329.78 | 784,620,786.80 |
| Total Assets | 984,254,288.10 | 2,235,635,681.30 |
| Current Liabilities | 140,227,047.42 | 1,283,603,409.67 |
| Non-current Liabilities | 20,656,022.86 | 67,829,472.58 |
| Total Liabilities | 160,883,070.28 | 1,351,432,882.25 |
| Operating Income | 414,085,161.70 | 1,588,794,595.18 |
| Net Profit (Loss) | 59,576,702.97 | 30,337,553.63 |
| Total Comprehensive Income | 59,576,702.97 | 30,337,553.63 |
| Cash Flow from Operating Activities | 68,355,787.51 | -226,038,764.17 |
| Name of Joint Venture or Affiliate | Principle Place of Business | Registered Place | Nature of Business | Shareholding Ratio (%) | Accounting Treatment Methods for Investment in Joint Ventures or Affiliates | |
| Direct | Indirect | |||||
| One Joint Ventures | ||||||
| 1. Beijing Zhengda Feed Co., Ltd. | Beijing | Beijing | Manufacturer | 50.00 | Equity method | |
| Two Affiliates | ||||||
| 1. SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | Tianjin | Tianjin | Transportation and warehousing | 30.00 | Equity method | |
| Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
| Beijing Zhengda Feed Co., Ltd. | Beijing Zhengda Feed Co., Ltd. | |
| Current assets | 232,509,285.82 | 228,921,574.13 |
| Including: cash and cash equivalents | 21,994,875.27 | 95,186,696.60 |
| Non-current assets | 22,867,202.06 | 25,478,642.09 |
Item
| Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
| Beijing Zhengda Feed Co., Ltd. | Beijing Zhengda Feed Co., Ltd. | |
| Total assets | 255,376,487.88 | 254,400,216.22 |
| Current liabilities | 55,315,530.88 | 73,979,867.51 |
| Non-current liabilities | 3,989,987.44 | 4,076,166.52 |
| Total liabilities | 59,305,518.32 | 78,056,034.03 |
| Minority shareholder's equity | ||
| Shareholders' equity attributable to the parent Company | 196,070,969.56 | 176,344,182.19 |
| Share of net assets based on shareholding ratio | 98,035,484.78 | 88,172,091.10 |
| Adjustments | 2,938,457.28 | 2,652,807.39 |
| -- Goodwill | ||
| -- Unrealized profits from internal transactions | ||
| -- Other | 2,938,457.28 | 2,652,807.39 |
| Book value of equity investment in joint ventures | 100,973,942.06 | 90,824,898.49 |
| Fair value of equity investment in joint ventures with open offers | ||
| Operating income | 185,991,526.96 | 153,872,389.59 |
| Financial costs | -2,549,556.75 | -1,308,088.38 |
| Income tax expense | 6,749,196.01 | 4,456,502.35 |
| Net profit | 20,298,087.13 | 13,073,530.78 |
| Net profit from discontinued operations | ||
| Other comprehensive income | ||
| Total comprehensive income | 20,298,087.13 | 13,073,530.78 |
| Item | Ending Balance/Current Amount | Beginning Balance/Last Term Amount |
| SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | SINOGRAIN (Tianjin) Warehousing Logistics Co., Ltd. | |
| Current assets | 84,470,838.52 | 87,560,108.46 |
| Non-current assets | 427,139,154.95 | 407,888,087.68 |
| Total assets | 511,609,993.47 | 495,448,196.14 |
| Current liabilities | 7,256,263.20 | 24,167,311.59 |
| Non-current liabilities | 135,191,122.94 | 72,609,829.76 |
| Total liabilities | 142,447,386.14 | 96,777,141.35 |
| Minority shareholder's equity | ||
| Shareholders' equity attributable to the parent Company | 369,162,607.33 | 398,671,054.79 |
| Share of net assets based on shareholding ratio | 110,748,782.20 | 119,601,316.43 |
| Adjustments | ||
| -- Goodwill | ||
| -- Unrealized profits from internal transactions | ||
| -- Others | ||
| Book value of equity investment in affiliates | 110,748,782.20 | 119,601,316.43 |
| Fair value of equity investment in affiliates with open offers | ||
| Operating income | 28,434,555.09 | 6,383,017.42 |
| Net profit | 4,116,892.01 | 1,370,044.29 |
| Net profit from discontinued operations |
Other comprehensive income
| Other comprehensive income | ||
| Total comprehensive income | 4,116,892.01 | 1,370,044.29 |
| Dividends received from affiliates in the current period | 24,680,000.00 |
| Financial asset items | Financial assets measured at amortized cost | Financial assets measured at fair value and the changes recorded in current profits and losses | Financial assets measured at fair value and the changes recorded in other comprehensive income | Total |
| Monetary funds | 779,954,595.57 | 779,954,595.57 | ||
| Transactional financial assets | 363,000,000.00 | 363,000,000.00 | ||
| Derivative financial assets | 75,597,717.39 | 75,597,717.39 | ||
| Notes receivables | 0.00 | |||
| Accounts receivables | 96,128,277.06 | 96,128,277.06 | ||
| Other receivables | 88,750,805.46 | 88,750,805.46 | ||
| Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 | ||
| Other non-current assets | 366,752,446.74 | 366,752,446.74 |
| Financial asset items | Financial assets measured at amortized cost | Financial assets measured at fair value and the changes recorded in current profits and losses | Financial assets measured at fair value and the changes recorded in other comprehensive income | Total |
| Monetary funds | 335,466,169.61 | 335,466,169.61 | ||
| Transactional financial assets | 63,478,071.73 | 63,478,071.73 | ||
| Derivative financial assets | 0.00 | |||
| Notes receivables | 456,565.85 | 456,565.85 | ||
| Accounts receivables | 92,245,667.60 | 92,245,667.60 | ||
| Other receivables | 541,905,656.97 | 541,905,656.97 | ||
| Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 | ||
| Other non-current assets | 319,739,581.67 | 319,739,581.67 |
| Financial liability items | Financial liabilities measured at fair value and changes included in current profits and losses | Other financial liability | Total |
| Short term loans | 1,722,856,775.38 | 1,722,856,775.38 | |
| Derivative financial liability | 0.00 | ||
| Accounts payable | 134,164,851.58 | 134,164,851.58 |
Financial liabilityitems
| Financial liability items | Financial liabilities measured at fair value and changes included in current profits and losses | Other financial liability | Total |
| Other Payables | 113,823,953.59 | 113,823,953.59 | |
| Long-term Loan | 71,000,000.00 | 71,000,000.00 |
| Financial liability items | Financial liabilities measured at fair value and changes included in current profits and losses | Other financial liability | Total |
| Short term loans | 1,497,414,079.05 | 1,497,414,079.05 | |
| Derivative financial liability | 371,219,136.84 | 371,219,136.84 | |
| Accounts payable | 75,384,075.39 | 75,384,075.39 | |
| Other Payables | 72,292,881.24 | 72,292,881.24 | |
| Long-term Loan | 0.00 |
| Item | June 30, 2021 | |||
| Within One Year | 1 To 5 Years | Above Five Years | Total | |
| Short term loans | 1,722,856,775.38 | 1,722,856,775.38 | ||
| Accounts payable | 134,164,851.58 | 134,164,851.58 | ||
| Other Payables | 113,823,953.59 | 113,823,953.59 | ||
| Long-term Loan | 71,000,000.00 | 71,000,000.00 | ||
| Item | January 1, 2021 | |||
| Within One Year | 1 To 5 Years | Above Five Years | Total | |
| Short term loans | 1,497,414,079.05 | 1,497,414,079.05 | ||
| Accounts payable | 371,219,136.84 | 371,219,136.84 | ||
| Other Payables | 72,075,894.39 | 3,308,181.00 | 75,384,075.39 | |
| Long-term Loan | 72,292,881.24 | 72,292,881.24 | ||
investment price risk.
(1) Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest rates bring theCompany the interest rate risk on cash flow, while the financial liabilities at fixed interest rates bring the Company the interest rate riskon fair value. The Company decides the relative proportion of fixed interest rate contracts and floating interest rate contracts accordingto the current market environment.
As of June 30, 2021, the Company's interest-bearing liabilities under floating rate contracts denominated in RMB amounted toRMB 70,000,000.00, and those under fixed rate contracts denominated in RMB amounted to RMB 1,694,204,046.67, and USDamounted to USD 4,385,478.81.
(2) Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities (when revenues andexpenditures are settled in foreign currencies other than the Company's accounting standard currency) and its net investments in itsoverseas subsidiaries. The Company's exposure to foreign exchange risks is mainly related to US dollars. Except that some of theCompany's subsidiaries purchase and sell in US dollars, other major business activities of the Company are priced and settled inRMB.As at June 30, 2021, the Company's assets and liabilities are in RMB, except the assets or liabilities described in the table beloware in US dollars. The foreign exchange risks arising from the assets and liabilities of such foreign currency balances may have animpact on the Company's operating results.
| Items | Ending Balance | Beginning Balance |
| Monetary funds | 39,226,039.22 | 5,056,624.13 |
| Accounts receivable | 3,966,257.73 | 1,044,832.24 |
| Advanced payment | 75,377,011.09 | |
| Other receivables | 6,460,100.00 | |
| Short-term Loan | 28,330,631.66 | |
| Accounts payables | 541,291.78 | |
| Contract liabilities | 19,473,641.79 | |
| Other payables | 1,765,757.16 | 381,054.16 |
| Item | Current period | ||
| [US dollar] Exchange rate Increase / (decrease) | Gross profit/net profit increase /(decrease) | Increase/(decrease) in shareholders' equity | |
| The yuan depreciated against the US dollar | 5% | 579,852.37 | 579,852.37 |
| The yuan appreciated against the US dollar | -5% | -578,852.37 | -578,852.37 |
| Item | Prior period | ||
| [US dollar] Exchange rate Increase / (decrease) | Gross profit/net profit increase /(decrease) | Increase/(decrease) in shareholders' equity | |
| The yuan depreciated against the US dollar | 5% | 89,963.07 | 89,963.07 |
| The yuan appreciated against the US dollar | -5% | -89,963.07 | -89,963.07 |
Item
| Item | Fair Values at the End of the Period | |||
| First Level Fair Value Measurement | Second Level Fair Value Measurement | Third Level Fair Value Measurement | Total | |
| One. Continuous fair value measurement | ||||
| Ⅰ. Transactional financial assets | 438,597,717.39 | 438,597,717.39 | ||
| 1. Financial assets that are measured at fair value and whose changes are included in the current profits and losses | 363,000,000.00 | 363,000,000.00 | ||
| (1) Investment in debt instruments | 363,000,000.00 | 363,000,000.00 | ||
| (2) Investment in equity instruments | ||||
| (3) Derivative financial assets | 75,597,717.39 | 75,597,717.39 | ||
| 2. Financial assets designated as fair value through profit or loss | ||||
| (1) Investment in debt instruments | ||||
| (2) Investment in equity instruments | ||||
| (3) Others | ||||
| Ⅱ. Other debt investment | ||||
| Ⅲ. Investment in other equity instruments | 20,000,000.00 | 20,000,000.00 | ||
| Total assets continuously measured at fair value | 438,597,717.39 | 20,000,000.00 | 458,597,717.39 | |
| Name of Parent Company | Company type | Registered Place | Legal representative | Nature of Business | Registered Capital (ten thousand Yuan) |
| Beijing Grain Group Co. Ltd. | Wholly state-owned enterprise | Beijing | Zhang Lijun | Investment Management | 90,000.00 |
| Proportion of Shares Held by Parent Company in the Company (%) | Proportion of Voting Power Held by Parent Company in the Company (%) | The ultimate controlling party of the Company | Organization code |
| 39.68 | 39.68 | Beijing State-owned Capital Operation and Management Center | 683551038 |
| Name of Other Related Party | Relationship with the Company |
| Beijing Guchun Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Sanyuan Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Yueshengzhai Halal Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing ershang dahongmen Meat Food Co., Ltd | Controlled by the ultimate controlling party |
Name of Other Related Party
| Name of Other Related Party | Relationship with the Company |
| Shandong Fukuan Bioengineering Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Guchun rice Co., Ltd | Controlled by the ultimate controlling party |
| Beijing ershang Wangzhihe Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing heiliu animal husbandry technology Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Yanqi Yueshengzhai Halal Food Co., Ltd | Controlled by the ultimate controlling party |
| Hebei Luanping Huadu Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Liubiju Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing ershang Moqi Zhonghong Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing ershang Jinghua Tea Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Huayu Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Huadu liquor Marketing Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Beishui Food Industry Co., Ltd | Controlled by the ultimate controlling party |
| Chengde Sanyuan Venus duck industry Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain e-commerce Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Er Shang Longhe Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Changyang farm Co., Ltd | Controlled by the ultimate controlling party |
| Beijing hundred year old Liyuan Ecological Agriculture Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Er Shang palace Yifu Food Co., Ltd | Controlled by the ultimate controlling party |
| Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd | Controlled by the ultimate controlling party |
| Beijing shounong Supply Chain Management Co., Ltd | Controlled by the ultimate controlling party |
| Hebei shounong Modern Agricultural Technology Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Haidian Xijiao grain and oil supply station Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Zhujun grain and oil supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing first agricultural consumption poverty alleviation and Entrepreneurship Center Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Children soldiers grain and oil supply Co., Ltd | Controlled by the ultimate controlling party |
| Liangguan grain and oil supply station of Beijing | Controlled by the ultimate controlling party |
| Beijing maliandou special supply station Co., Ltd | Controlled by the ultimate controlling party |
| Beijing junchengyuan grain and oil purchase and Marketing Co., Ltd | Controlled by the ultimate controlling party |
| Beijing food supply office No.34 supply department Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Longqing Xiadu military grain supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing baijiayi Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Hongyuan Lijun grain and oil supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Desheng Hotel Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain Logistics Co., Ltd | Controlled by the ultimate controlling party |
Name of Other Related Party
| Name of Other Related Party | Relationship with the Company |
| Beijing jinggrain canal grain and Oil Trade Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shuangta Green Valley Agriculture Co., Ltd | Controlled by the ultimate controlling party |
| Beijing southern suburb agricultural production and Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Dongcheng sugar industry tobacco and Wine Co., Ltd | Controlled by the ultimate controlling party |
| Beijing North Beijing sugar wine sales Co., Ltd | Controlled by the ultimate controlling party |
| Beijing shounong commercial chain Co., Ltd. Hebei xiong'an branch | Controlled by the ultimate controlling party |
| Beijing Sanyuan Taxi Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Business School | Controlled by the ultimate controlling party |
| Beijing maisui Hotel Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing shounong Xiangshan Conference Center Co., Ltd | Controlled by the ultimate controlling party |
| Beijing sugar industry tobacco & Wine Group Co., Ltd | Controlled by the ultimate controlling party |
| Beijing grain (Tianjin) e-commerce Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Automobile Service Co., Ltd | Controlled by the ultimate controlling party |
| Beijing shounong Food Group Finance Co., Ltd | Controlled by the ultimate controlling party |
| Beijing dahongmen grain storage Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Dongjiao farm Co., Ltd | Controlled by the ultimate controlling party |
| Beijing aquatic products Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Beijing automobile driving technical school | Controlled by the ultimate controlling party |
| Beijing grain (Tianjin) Trade Development Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Xinda Property Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Beishui Jialun water products market Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Xicheng sugar industry tobacco and Wine Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain Industrial Asset Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Er Shang Fuyue Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Yanqing farm Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Taihe Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing capital agricultural Pinggu agricultural science and technology innovation investment and Development Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Shunyi grain and Oil Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Longsheng Zhongwang breakfast Co., Ltd | Controlled by the ultimate controlling party |
| Beijing shounong Animal Husbandry Development Co., Ltd | Controlled by the ultimate controlling party |
| Tianjin Hongda international freight forwarding Company | Controlled by the ultimate controlling party |
| Beijing Lanfeng Vegetable Distribution Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingliang Taiyu Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing xingfashion Trade Co., Ltd | Controlled by the ultimate controlling party |
| Beijing zhongdairich Property Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Huacheng Trading Co., Ltd | Controlled by the ultimate controlling party |
Name of Other Related Party
| Name of Other Related Party | Relationship with the Company |
| Beijing haipetrochemical (Tianjin) Co., Ltd | Controlled by the ultimate controlling party |
| Beijing daimo flour Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain Taixing Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing milk Co., Ltd | Controlled by the ultimate controlling party |
| Beijing hongbaoyuan Trading Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Grain Group Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Dongfeng International Sports Culture Co., Ltd | Controlled by the ultimate controlling party |
| Beijing grain century cloud Technology Co., Ltd | Controlled by the ultimate controlling party |
| China Ocean Real Estate Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Sanyuan Oil Co., Ltd | Controlled by the ultimate controlling party |
| Beijing sidaokou aquatic products Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Yonghe Xincheng grain and oil supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Longde Business Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain Shengyuan grain and Oil Sales Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Daxing National Food Reserve Co., Ltd | Controlled by the ultimate controlling party |
| China Meat Food Research Center | Controlled by the ultimate controlling party |
| Beijing Pinggu grain and oil industry and Trade Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Academy of Food Science | Controlled by the ultimate controlling party |
| Beijing jinggrain Biotechnology Industry Co., Ltd | Controlled by the ultimate controlling party |
| Beijing zhibohui Architectural Design Institute Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Beishui Yongxing water products Sales Co., Ltd | Controlled by the ultimate controlling party |
| Beijing ershang Group Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Er Shang Yihe Sunshine Property Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Beijiao farm Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Great Wall Danyu animal products Co., Ltd | Controlled by the ultimate controlling party |
| Beijing grain point to net (Beijing) commerce Co., Ltd | Controlled by the ultimate controlling party |
| Beijing jinggrain Dagu grain and Oil Trade Co., Ltd | Controlled by the ultimate controlling party |
| Shanghai shounong Investment Holding Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Daxing national grain storage Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Nanyuan vegetable oil factory Co., Ltd | Controlled by the ultimate controlling party |
| Feed branch of Beijing Sanyuan Seed Industry Technology Co., Ltd | Controlled by the ultimate controlling party |
| Hebei shounong Modern Agricultural Technology Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Ershang Meet Food. Co, Ltd. | Controlled by the ultimate controlling party |
| Beijing Heiliu Pastoral Technology Co., Ltd. Food Center | Controlled by the ultimate controlling party |
| Beijing Longmen Vinegar Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Sanyuan Meiyuan Food Co., Ltd | Controlled by the ultimate controlling party |
Name of Other Related Party
| Name of Other Related Party | Relationship with the Company |
| Beijing Sugar Industry Tobacco and Alcohol Group Co., Ltd. Sugar Management Branch | Controlled by the ultimate controlling party |
| Beijing Ershang Xijie Food Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Ershang Jingshen Seafood Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Jingmen Liangshi State-owned Asset Management Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Liubiju Food Co., Ltd. Huairou Brewing Plant | Controlled by the ultimate controlling party |
| Beijing Longmen Vinegar Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Theron International Cultural Development Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Liangguan Grain and Oil Supply Co., Ltd | Controlled by the ultimate controlling party |
| Beijing Capital & Agricultural Food Group Co., Ltd | Controlled by the ultimate controlling party |
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing hundred year old Liyuan Ecological Agriculture Co., Ltd | Purchase of goods | 8,536.00 | |
| Beijing Beishui Food Industry Co., Ltd | Purchase of goods | 12,976.00 | 2,664.00 |
| Beijing Ershang dahongmen Meat Food Co., Ltd | Purchase of goods | 260,599.00 | |
| Beijing Ershang Jinghua Tea Co., Ltd | Purchase of goods | 20,128.00 | |
| Beijing Ershang Longhe Food Co., Ltd | Purchase of goods | 54.00 | |
| Beijing Ershang Moqizhonghong Food Co., Ltd | Purchase of goods | 345.60 | 13,034.40 |
| Beijing Ershang Meat Food Group Co., Ltd | Purchase of goods | 303,970.00 | |
| Beijing Ershang Wangzhihe Food Co., Ltd | Purchase of goods | 11,760.00 | 177,803.60 |
| Beijing Guchuan Rice Co., Ltd | Purchase of goods | 31,372.00 | 134,268.00 |
| Beijing Guchuan Food Co., Ltd | Purchase of goods | 7,084,342.52 | 7,662,781.80 |
| Beijing Heiliu Pastoral Technology Co., Ltd. | 89,111.30 | ||
| Beijing Heiliu Pastoral Technology Co., Ltd. Food Center | Purchase of goods | 23,951.90 | |
| Beijing Huadu Wine Marketing Co., Ltd | Purchase of goods | 136,320.00 | |
| Beijing Huayu Food Co., Ltd | Purchase of goods | 14,850.00 | |
| Beijing jingliang E-Commerce Co., Ltd | Purchase of goods | 5,000.00 | |
| Beijng Jingliang Dongfang Grain and Oil Trading Co., Ltd | Purchase of goods | 246,304.00 | 266,693.50 |
| Beijing Liubiju Food Co., Ltd | Purchase of goods | 15,320.00 | 26,809.40 |
| Beijing Longmen Vinegar Co., Ltd | Purchase of goods | 290.00 | |
| Beijing Sanyuan Meiyuan Food Co., Ltd | Purchase of goods | 24,883.20 | |
| Beijing Sanyuan Food Co., Ltd | Purchase of goods | 196,816.00 | 1,459,486.60 |
Related Party
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing Changyang Farm Co., Ltd | Purchase of goods | 1,470.00 | |
| Beijing Sugar Industry Tobacco and Alcohol Group Co., Ltd. Sugar Management Branch | Purchase of goods | 430.90 | |
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | Purchase of goods | 11,895.00 | |
| Beijing Yiji Yueshengzhai Halal Food Co., Ltd | Purchase of goods | 280,682.00 | |
| Beijing Yueshengzhai Halal Food Co., Ltd | Purchase of goods | 520,850.50 | |
| Shandong Fuguang Bioengineering Co., Ltd | Purchase of goods | 248,829.00 | |
| Total | 8,483,731.42 | 10,810,896.80 |
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing Baijiayi Food Co., Ltd | Sale of goods | 468,970.00 | 131,284.00 |
| Beijing North Jingtang Wine Sales Co., Ltd | Sale of goods | 21,959.00 | 27,364.00 |
| Beijing Great Mill Flour Co., Ltd | Sale of goods | 2,075.00 | |
| Beijing Dongcheng Sugar Industry Tobacco and Alcohol Co., Ltd | Sale of goods | 15,207.54 | |
| Beijing Dongfeng International Sports Culture Co., Ltd | 1,755.00 | ||
| Beijing Wangzhihe Food Co., Ltd | Sale of goods | 43,848,848.09 | 25,766,349.73 |
| Beijing Ershang Xijie Food Co., Ltd | Sale of goods | 928,990.83 | |
| Beijing Ershang Fuyue Food Co., Ltd | Sale of goods | 7,460.00 | |
| Beijing Ershang Gongyifu Food Co., Ltd | Sale of goods | 17,256.88 | |
| Beijing Jingshen Seafood Co., Ltd | 53,592.00 | ||
| Beijing Ershang Longhe Food Co., Ltd | Sale of goods | 15,270.00 | |
| Beijing Ershang Yihe Sunshine Property Management Co., Ltd | Sale of goods | 23,880.00 | |
| Beijing Guchuan Rice Co., Ltd | Sale of goods | 631,349.72 | 429,869.06 |
| Beijing Guchuan Food Co., Ltd | Sale of goods | 5,727,639.42 | 1,089,789.39 |
| Beijing Hongyuanli Military Grain and Oil Supply Co., Ltd | Sale of goods | 417,500.00 | 377,490.82 |
| Beijing Jingliang Dagu Oil and Grain Trading Food Co., Ltd | Sale of goods | 177,900.00 | |
| Beijing Jingliang E-commerce Co., Ltd | Sale of goods | 723,045.08 | 1,100,466.11 |
| Beijing Jingliang East Oil and Grain Trading Food Co., Ltd | Sale of goods | 4,665,430.59 | 1,855,631.79 |
| Beijing Jiangliang Taihe Property Co., Ltd | Sale of goods | 4,980.00 | |
| Beijing Jiangliang Taixing Property Co., Ltd | Sale of goods | 2,075.00 | |
| Beijing Jiangliang Taiyu Property Co., Ltd | Sale of goods | 3,320.00 | |
| Beijing Jiangliang Logistics Co., Ltd | Sale of goods | 86,554.91 | 226,577.57 |
| Beijing Jingliang Cinda Property Management Co., Ltd | Sale of goods | 11,205.00 | |
| Beijing Jingliang Xingye Asset Management Co., Ltd | Sale of goods | 7,885.00 | |
| Beijing Jingliang Canal Grain and Oil Trading Co., Ltd | Sale of goods | 119,432.07 | 122,729.05 |
| Beijing Jingliang Real Estate Co., Ltd | Sale of goods | 174,056.74 |
Related Party
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing Jingmen Liangshi State-owned Asset Management Co., Ltd | Sale of goods | 363,200.00 | |
| Beijing Junyuan Rain and Oil Purchase and Sales Co., Ltd | Sale of goods | 624,175.00 | 306,990.83 |
| Beijing Lanfeng Vegetable Distribution Co., Ltd | Sale of goods | 3,380.00 | |
| Beijing Liubiju Food Co., Ltd | Sale of goods | 2,750.00 | |
| Beijing Liubiju Food Co., Ltd Huairou Brewing Plant | Sale of goods | 231,300.00 | |
| Beijing Longmen Vinegar Co., Ltd | Sale of goods | 6,600.00 | |
| Beijing Longsheng Zhongwang Breakfast Co., Ltd | Sale of goods | 20,633.00 | |
| Beijing Wheat Hotel Management Co., Ltd | Sale of goods | 31,955.00 | |
| Beijing Southern Suburbs Agricultural Production Management Co., Ltd | Sale of goods | 64,726.61 | |
| Beijing Automotive Services Co., Ltd | Sale of goods | 18,600.00 | |
| Beijing Theron International Cultural Development Co., Ltd | Sale of goods | 275.00 | |
| Beijing Sanyuan Taxi Co., Ltd | Sale of goods | 44,400.00 | |
| Beijing Sanyuan Petroleum Co., Ltd | Sale of goods | 286.24 | |
| Beijing Sanyuan Food Co., Ltd | Sale of goods | 492,000.00 | 527,348.00 |
| Beijing Sanyuan Seed Industry Technology Co., Ltd. feed branch | Sale of goods | 27,347,850.05 | 14,185,704.49 |
| Beijing Northern Suburbs Farm Co., Ltd | Sale of goods | 1,000.00 | |
| Beijing Dahongmen Grain Storage Co., Ltd | Sale of goods | 15,355.00 | |
| Beijing Desheng Hotel Co., Ltd | Sale of goods | 32,557.03 | 102,900.00 |
| Beijing Eastern Suburbs Farm Co., Ltd | Sale of goods | 13,585.00 | |
| Beijing Haidian Western Suburbs Grain and Oil Supply Station Co., Ltd | Sale of goods | 1,799,085.28 | 7,327,448.82 |
| Beijing Hongbaoyuan Trading Co., Ltd | Sale of goods | 1,872.00 | |
| Beijing Huacheng Trading Co., Ltd | Sale of goods | 5,319.00 | 2,502.00 |
| Beijing Jingcheng Automotive Driving Technical School | Sale of goods | 13,200.00 | |
| Beijing Liangguan Grain and Oil Supply Co., Ltd | Sale of goods | 12,500.92 | |
| Beijing Longqing Xiadu Military Food Supply Co., Ltd | Sale of goods | 95,200.00 | 379,651.38 |
| Beijing Ma Liandao Grain and Oil Special-need Supply Station Co., Ltd | Sale of goods | 77,000.00 | 1,311,822.02 |
| Beijing Nanyuan Vegetable Oil Plant Co., Ltd | Sale of goods | 7,055.00 | |
| Beijing Milk Co., Ltd | Sale of goods | 3,546.00 | 1,946.00 |
| Beijing Food Supply Department No. 34 Supply Department Co., Ltd | Sale of goods | 2,497,733.27 | 1,399,738.14 |
| Beijing Shunyi Grain and Oil Co., Ltd | Sale of goods | 4,920.00 | |
| Beijing Sidaokou Spitting Production Co., Ltd | Sale of goods | 176.00 |
Related Party
| Related Party | Related-party Transaction | Current Amount | Last Term Amount |
| Beijing Yanqing Farm Co., Ltd | Sale of goods | 6,000.00 | |
| Beijing Soldiers Grain and Oil Supply Co., Ltd | Sale of goods | 971,200.00 | 1,676,047.71 |
| Beijing Shounong Livestock Development Co., Ltd | Sale of goods | 3,522.95 | |
| Beijing Shounong Supply Chain Management Co., Ltd | Sale of goods | 2,469,496.69 | |
| Hebei Xiong'an Branch of Beijing Shounong Commercial Chain Co., Ltd | Sale of goods | 41,834.86 | |
| Beijing Capital & Agriculture Group Finance Co., Ltd | Sale of goods | 6,160.00 | |
| Beijing Capital & Agriculture Group Co., Ltd | Sale of goods | 637,256.86 | 3,154.10 |
| Beijing Shounong Xiangshan Convention Center Co., Ltd | Sale of goods | 5,328.00 | 13,100.00 |
| Beijing Shounong Consumption Double-creation center of Poverty & Alleviation Co., Ltd | Sale of goods | 5,051,520.00 | |
| Beijing Twin Towers Green Valley Agriculture Co., Ltd | Sale of goods | 15,816.51 | 107,775.70 |
| Beijing Aquatic Co., Ltd | Sale of goods | 6,380.00 | |
| Beijing Sugar Industry Tobacco and Alcohol Group Co., Ltd | Sale of goods | 4,400.00 | 26,280.00 |
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | Sale of goods | 670,442.20 | 1,344,372.42 |
| Beijing West City Sugar Industry Tobacco and Alcohol Co., Ltd | Sale of goods | 8,370.00 | |
| Beijing Aid Army Grain and Oil Supply Co., Ltd | Sale of goods | 960,383.95 | 2,196,158.88 |
| Hebei Luanping Huadu Food Co., Ltd | Sale of goods | 2,399,477.40 | |
| Hebei Shounong Modern Agricultural Technology Co., Ltd | Sale of goods | 10,400,433.52 | 7,867,155.54 |
| Jinghai Petrochemical (Tianjin) Co., Ltd | Sale of goods | 2,112.00 | |
| Jiangliang (Tianjin) E-Commerce Co., Ltd | Sale of goods | 41,993.91 | |
| Jiangliang (Tianjin) Trade Development Co., Ltd | Sale of goods | 10,560.00 | |
| Jingliang Diandao Network (Beijing) Trading Co., Ltd | Sale of goods | 7,884.00 | |
| Jingliang Century Cloud Technology Co., Ltd | Sale of goods | 830.00 | |
| Shanghai Shounong Investment Holdings Co., Ltd | Sale of goods | 139,402.80 | |
| Tianjin HTC International Freight Forwarder | Sale of goods | 3,520.00 | |
| Total | Sale of goods | 112,233,671.50 | 73,528,174.97 |
(2) Related-party lease
A. If the Company is the lessor,
| Name of Lessee | Type of Leased Asset | Pricing basis of rental income | Lease Income Recognized in the Current Period | Lease Income Recognized in the Prior Period |
| Beijing Jingliang E-commerce Co., Ltd. | Warehouse leasing | Market price | 766,509.38 | |
| Beijing Jingliang E-commerce Co., Ltd | Vehicle leasing | Market price | 12,729.60 | |
| Total | -- | -- | 0.00 | 779,238.98 |
| Name of Lessee | Type of Leased Asset | Pricing basis of rleasing fee | Lease Expense Recognized in the Current Period | Lease Expense Recognized in the Prior Period |
| Beijing Grain Group Co. Ltd. | House leasing | Market price | 580,000.00 | 280,000.00 |
| Beijing Daxing National Grain Purchasing & Storage Warehouse | House leasing | Market price | 1,055,100.00 | 1,055,100.00 |
| Beijing Nanyuan Plant Oil Factory | House leasing | Market price | 340,000.00 | |
| Beijing Dahongmen Grain Storage Co., Ltd | House leasing | Market price | 309,577.33 | |
| Beijing Shounong Development Co., Ltd | House leasing | Market price | 255,583.71 | |
| Beijing Jingliang Real Estate Co., Ltd | House leasing | Market price | 578,628.78 | |
| Total | 2,540,261.04 | 1,913,728.78 |
| Item | Current Amount (Unit: ten thousand yuan) | Last Term Amount (Unit: ten thousand yuan) |
| Remuneration for Key Management Staff | 122.27 | 89.05 |
| Item | Related-party content | Current Amoun | Last Term Amount |
| Beijing Guchuan Food. Co., Ltd | Purchase water and electricity | 1,769,382.93 | 1,544,536.20 |
| Item | Related-party | Ending Balance | Beginning Balance | ||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | ||
| Monetary funds | Beijing shounong Food Group Finance Co., Ltd | 167,000,000.00 | 158,585,719.53 | ||
| Total | 167,000,000.00 | 158,585,719.53 | |||
| Receivables | Beijing ershang Wangzhihe Food Co., Ltd | 4,439,008.84 | 8,584,555.70 | ||
| Beijing shounong consumption poverty alleviation and Innovation Center Co., Ltd | 127,558.00 | 3,178,672.00 | |||
| Beijing shounong Supply Chain Management Co., Ltd | 396,373.85 | 1,965,569.85 | |||
| Feed branch of Beijing Sanyuan Seed Technology Co., Ltd | 1,222,661.87 | 1,544,618.10 | |||
| Hebei shounong Modern Agricultural Technology Co., Ltd | 1,531,449.52 | 1,473,919.32 | |||
Item
| Item | Related-party | Ending Balance | Beginning Balance | ||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | ||
| Beijing Haidian Xijiao grain and oil supply station Co., Ltd | 970,468.40 | 1,420,904.00 | |||
| Beijing Zhujun grain and oil supply Co., Ltd | 388,800.00 | 1,598,080.00 | |||
| Beijing Junyuan grain and oil purchasing and Marketing Co., Ltd | 1,009,912.00 | ||||
| Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd | 1,036,571.00 | 914,231.75 | |||
| Beijing Liangguan grain and oil supply Co., Ltd | 1,200.00 | 672,100.00 | |||
| Beijing Guchun Food Co., Ltd | 788,395.00 | 330,872.00 | |||
| Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd | 147,000.00 | ||||
| Beijing food supply department No.34 supply department Co., Ltd | 853,306.80 | 83,260.00 | |||
| Beijing Jingliang e-commerce Co., Ltd | 56,600.00 | ||||
| Beijing Solders Grain and Oil supply Co., Ltd | 368,000.00 | 29,106.00 | |||
| Beijing baijiayi Food Co., Ltd | 23,100.00 | ||||
| Beijing shounong Xiangshan Conference Center Co., Ltd | 5,250.00 | ||||
| Beijing jingliang Logistics Co., Ltd | 2,704.00 | ||||
| Beijing Longsheng Hope Breakfast Co., Ltd | 2,635.00 | ||||
| Beijing Theron International Cultural Development Co., Ltd | 275.00 | ||||
| Shanghai Capital&Agricultural Investment Holdings Co., Ltd | 3,819.12 | ||||
| Beijing Ershang Jiexi Food Co., Ltd | 1,012,600.00 | ||||
| Total | 13,145,826.40 | 23,037,750.72 | |||
| Item | Related-party | Ending Balance | Beginning balance |
| Payables | Beijing Guchuan Food Co., Ltd | 73,467.89 | 293,871.55 |
| Beijing Jingliang Dongfang grain and Oil Trading Co., Ltd | 33,679.50 | 20,674.03 | |
| Beijing Sanyuan Food Co., Ltd | 13,677.70 | ||
| Beijing Yanxi Yueshengzhai Halal Food Co., Ltd | 1,922.50 | ||
| Beijing Changyang farm Co., Ltd | 1,470.00 | ||
| Beijing Sugar Industry Tobacco and Alcohol Group Co., Ltd. Sugar Management Branch | 430.90 | ||
| Beijing Ershang Moqi zhonghong Food Co., Ltd | 345.60 | ||
| Beijing Daxing National Food Reserve | 1,055,100.00 | ||
| Total | 1,163,023.89 | 331,615.78 | |
| Other payables | Beijing Grain Group Co., Ltd | 2,292,270.30 | 1,712,270.30 |
| Beijing Jingliang e-commerce Co., Ltd | 118,809.60 | 118,809.60 |
| Beijing Guchuan Food Co., Ltd | 297,619.31 | ||
| Total | 2,708,699.21 | 1,831,079.90 |
| Item | Food Processing | Oil & Grease | Other | Offset Among Dvisions | Total |
| Operating income | 445,877,330.91 | 4,881,811,652.44 | 557,852.48 | 0.00 | 5,328,246,835.83 |
| Operating costs | 331,265,649.95 | 4,767,883,364.10 | 395,974.36 | 0.00 | 5,099,544,988.41 |
| Operating profit | 59,351,982.88 | 78,634,472.17 | -3,605,333.66 | 0.00 | 34,381,121.39 |
| Net profit attributable to parent Company | 45,422,226.10 | 46,152,837.75 | -3,653,565.94 | 406,700.00 | 88,328,197.91 |
| Total assets | 1,079,115,761.79 | 5,245,743,628.66 | 2,757,304,920.53 | -2,938,396,895.35 | 6,143,767,415.63 |
| Total liabilities | 131,712,508.58 | 2,795,864,191.65 | 330,617,902.84 | -311,959,049.11 | 2,946,235,553.96 |
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | |
| Among them: Within credit period (within 3 months) | |
| Credit period to 1 year | |
| 1 to 2 years (including 2 years) | |
| 2 to 3 years (including 3 years) | |
| 3 to 4 years (including 4 years) | 3,000.00 |
| 4 to 5 years (including 5 years) | 51,420.00 |
| More than 5 years | 72,000.00 |
Aging
| Aging | Ending Balance |
| Total | 126,420.00 |
| Type(s) | Ending Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | |||||
| Portfolio provision for bad debts | 126,420.00 | 100.00 | 114,636.00 | 90.68 | 11,784.00 |
| Among them: aging portfolio | 126,420.00 | 100.00 | 114,636.00 | 90.68 | 11,784.00 |
| Total | 126,420.00 | -- | 114,636.00 | -- | 11,784.00 |
| Type(s) | Beginning Balance | ||||
| Book Balance | Bad Debt Provision | Book Value | |||
| Amount | Ratio(%) | Amount | Provision Ratio(%) | ||
| Separate provision for bad debts | |||||
| Portfolio provision for bad debts | 126,420.00 | 100.00 | 114,636.00 | 90.68 | 11,784.00 |
| Among them: aging portfolio | 126,420.00 | 100.00 | 114,636.00 | 90.68 | 11,784.00 |
| Total | 126,420.00 | -- | 114,636.00 | -- | 11,784.00 |
| Name | Ending Balance | Beginning Balance | ||||
| Accounts receivable | Bad Debt Provision | Provision Ratio | Accounts receivable | Bad Debt Provision | Provision Ratio | |
| Within 1 Year (including 1 year) | ||||||
| Among them: Within the credit period (within 3 months) | ||||||
| Credit period to 1 year | ||||||
| 1 to 2 years (including 2 years) | ||||||
| 2 to 3 years (including 3 years) | ||||||
| 3 to 4 years (including 4 years) | 3,000.00 | 1,500.00 | 50.00 | 3,000.00 | 1,500.00 | 50.00 |
| 4 to 5 years (including 5 years) | 51,420.00 | 41,136.00 | 80.00 | 51,420.00 | 41,136.00 | 80.00 |
| More than 5 years | 72,000.00 | 72,000.00 | 100.00 | 72,000.00 | 72,000.00 | 100.00 |
| Total | 126,420.00 | 114,636.00 | 126,420.00 | 114,636.00 | ||
| Type | Carrying amount at the beginning | Amount changes for the period | Carrying amount at the end | |||
| Addition | Withdrawal or reversal | Write-off | Other changes | |||
Baddebtprovision
| Bad debt provision | 114,636.00 | 114,636.00 | ||||
| Total | 114,636.00 | 114,636.00 |
| Debtors | Book balance | Ratio of the total balance of accounts receivable(%) | Aging | Is it related | Bad debt provision |
| Hainan Pearl River Pipe Pile Co. Ltd | 108,000.00 | 85.43 | 3-4 years, 4-5 years, more than 5 years | No | 99,900.00 |
| Ceibs Agricultural Qinhuangdao Ddevelopment Co. Ltd | 18,420.00 | 14.57 | 4-5years | No | 14,736.00 |
| Total | 126,420.00 | 100.00 |
| Item | Ending Balance | Beginning Balance |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 100,008.26 | 103,341.26 |
| Total | 100,008.26 | 103,341.26 |
| Aging | Ending Balance |
| Within 1 Year (including 1 year) | |
| Among them: Within credit period (within 3 months) | |
| Credit period to 1 year | |
| 1 to 2 years (including 2 years) | 105,271.85 |
| 2 to 3 years (including 3 years) | |
| 3 to 4 years (including 4 years) | |
| 4 to 5 years (including 5 years) | |
| More than 5 years | 50,000.00 |
| Total | 155,271.85 |
| Nature of Funds | Book Balance at End of Period | Book Balance at Beginning of Year |
| Intercourse Funds of Units | 3,333.00 | |
| Employee Receivables | ||
| Personal Intercourse Funds | 50,000.00 | 50,000.00 |
| Petty Cash | 105,271.85 | 105,271.85 |
| Others | ||
| Total | 155,271.85 | 158,604.85 |
Provision for bad debt
| Provision for bad debt | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss for the whole period (no credit impairment) | Expected credit loss for the whole period (with credit impairment) | ||
| Amount on January 1, 2020 | 5,263.59 | 50,000.00 | 55,263.59 | |
| Carrying amount on January 1, 2020 during this period: | ||||
| ——Get into Stage 2 | ||||
| ——Get into Stage 3 | ||||
| ——Get back to Stage 2 | ||||
| ——Get back to Stage 1 | ||||
| Provision for the period | ||||
| Reverse for the period | ||||
| Transfer for the period | ||||
| Write off for the period | ||||
| Other changes | ||||
| Carrying amount at the end of the period | 5,263.59 | 50,000.00 | 55,263.59 |
| Type | Carrying amount at the beginning | Amount changes for the period | Carrying amount at the end | |||
| Addition | Withdrawal or reversal | Write-off | Other changes | |||
| Bad debt provision | 55,263.59 | 55,263.59 | ||||
| Total | 55,263.59 | 55,263.59 | ||||
| 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 |
| Song Wang | Personal payments | 50,000.00 | More than 5 years | 32.20 | 50,000.00 |
| Yan Yan | Reserve fund | 46,000.00 | 1-2 years | 29.63 | 2,300.00 |
| Pai Feng | Reserve fund | 26,671.80 | 1-2 years | 17.18 | 1,333.59 |
| Zhongwei Cui | Reserve fund | 14,007.40 | 1-2 years | 9.02 | 700.37 |
Name of Organization
| 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 |
| Guangjie Huang | Reserve fund | 10,005.00 | 1-2 years | 6.44 | 500.25 |
| Total | —— | 146,684.20 | —— | 94.47 | 54,834.21 |
| 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 | 2,626,437,846.24 | 2,626,437,846.24 | 2,626,437,846.24 | ||
| Total | 2,626,437,846.24 | 2,626,437,846.24 | 2,626,437,846.24 | 2,626,437,846.24 | ||
| Invested Entity | Beginning Balance | Current Increase | Current Decrease | Ending Balance | Current Provision for Impairment | Ending Balance of Provision for Impairment |
| Beijing Jingliang Food Co., Ltd. | 2,336,639,964.05 | 2,336,639,964.05 | ||||
| Zhejiang little prince Food Co., Ltd | 249,017,319.14 | 249,017,319.14 | ||||
| Jingliang rural complex construction and operation (Xinyi) Co., Ltd | 15,280,563.05 | 15,280,563.05 | ||||
| Jingliang (Caofeidian) Agricultural Development Co., Ltd. | 25,500,000.00 | 25,500,000.00 | ||||
| Total | 2,626,437,846.24 | 2,626,437,846.24 |
| Item | Current Amount | Last Term Amount | ||
| Income | Cost | Income | Cost | |
| Core business | ||||
| Other businesses | 295,530.28 | 170,581.26 | 376,609.17 | |
| Total | 295,530.28 | 170,581.26 | 376,609.17 | |
| Sources of investment income | Current Amount | Last Term Amount |
| Long term equity investment income calculated by cost method | ||
| Others | -28,691.03 | 398,338.36 |
| Total | -28,691.03 | 398,338.36 |
1. According to the requirements of the CSRC's "Explanatory Announcement on Information Disclosure of CompaniesPublicly Issuing Securities No. 1 - Non-recurring Gains and Losses", the non-recurring gains and losses during the reportingperiod shall be reported
(1) Details of non-recurring profit and loss in the reporting period
| Details of non-recurring profit and loss | Amouont | Note |
| (1) Gains and losses on disposal of non current assets | -58,685.83 | |
| (2) Government subsidies included in the current profits and losses (closely related to the business of the enterprise, except the government subsidies enjoyed according to the national unified standard quota or quantitative) | 797,061.63 | |
| (3) In addition to the effective hedging business related to the normal business of the Company, the profit and loss from changes in fair value arising from holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, as well as the investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investments | 5,299,079.77 | |
| (4) Other non-operating income and expenses other than the above | 1,016,418.48 | |
| (5) Other profit and loss items that meet the definition of non recurring profit and loss | 37.36 | |
| Total non recurring profit and loss | 7,053,911.41 | |
| Less: amount affected by income tax | 1,763,477.85 | |
| Non recurring profit and loss after deducting the influence of income tax | 5,290,433.56 | |
| Including: non recurring profit and loss attributable to the owner of the parent Company | 5,054,860.51 | |
| Non recurring profit and loss attributable to minority shareholders | 235,573.05 |
| Current Profit | Weighted Return on Average Equity (ROAE) (%) | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to the Company's common shareholders | 3.21 | 0.12 | 0.12 |
| Net profit attributable to common shareholders after deduction of non-recurring gains and losses | 3.03 | 0.11 | 0.11 |