HAINAN JINGLIANG
HOLDINGS CO., LTD.
SEMI-ANNUAL
FINANCIAL REPORT
August, 2026
HAINAN JINGLIANG HOLDINGS CO., LTD.
SEMI-ANNUAL FINANCIAL REPORT 2026
This report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
I Financial Report
Independent auditor’s modified opinion:
? Applicable ? Not applicable
The 2026 Semi-Annual Financial Report is not audited by Independent auditor.
II Financial Statement
The unit of financial statements in the financial notes is: Yuan
Editor: Hainan Jingliang Holdings Co., Ltd.
June 30, 2026
Prepared by: Hainan Jingliang Holdings Co., Ltd. Monetary Unit: RMB Yuan
Items 30 June 2026 31 December 2025
Current Assets:
Monetary capital 1,690,131,184.91 1,821,722,517.08
Deposit reservation for balance
Lending funds
Transactional financial assets
Derivative financial assets 27,829,740.00
Notes receivable
Accounts receivable 79,488,640.32 98,216,373.71
Receivables financing
Prepayment 21,065,556.22 574,410,843.60
Premiums receivable
Reinsurance accounts receivable
Provision for cession receivable
Other receivables 245,178,434.01 173,257,419.17
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,561,092,167.01 1,421,929,091.40
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 143,832,330.26 99,250,439.60
Total current assets 3,768,618,052.73 4,188,786,684.56
Non-current assets:
Granting loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 271,539,088.34 267,272,969.32
Other equity instruments investment
Other non-current financial assets
Investment property 15,400,465.70 16,252,551.54
Fixed assets 814,065,422.12 841,479,812.89
Construction in process 130,672,973.43 88,960,509.10
Productive biological assets
Oil-and-gas assets
Right-of-use assets 164,746,700.89 169,826,775.50
Intangible assets 362,822,841.93 370,583,609.88
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 125,632,393.35 125,632,393.35
Long-term deferred expenses 1,165,700.87 3,362,646.84
Deferred income tax assets 36,766,626.43 36,843,176.25
Other non-current assets 8,742,892.22 9,281,092.22
Total non-current assets 1,931,555,105.28 1,929,495,536.89
Total assets 5,700,173,158.01 6,118,282,221.45
Current liabilities:
Short-term borrowings 709,701,803.20 1,136,260,975.85
Borrowings from central bank
Borrowings from banks and other financial institutions
Transactional financial liabilities
Derivative financial liabilities 9,953,208.15 3,815,280.00
Notes payable 56,649,763.00
Accounts payable 74,646,241.83 66,273,857.12
Account collected in advance 1,222,673.11 1,670,875.73
Contract liabilities 359,063,926.94 275,724,804.27
Repayment of financial assets through sale and repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Employee payroll payable 16,919,810.80 29,353,455.84
Taxes payable 7,183,532.89 38,204,738.18
Other payables 76,606,599.09 62,493,915.38
Including: Interest payable 20,000,000.00 20,000,000.00
Dividends payable
Covering handling fees and commissions
Dividend payable for reinsurance
Held-for-sale liabilities
Non-current liabilities due within one year 378,570,042.32 376,319,750.69
Other current liabilities 34,663,083.60 36,800,107.16
Total current liabilities 1,668,530,921.93 2,083,567,523.22
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings 573,500,000.00 576,500,000.00
Bonds payable
Including: Preferred stock
Perpetual capital bonds
Lease liabilities 129,034,211.34 135,451,638.57
Long-term payables
Long-term payable to employees 5,259,134.00 5,321,134.00
Estimated liabilities 22,650,893.15 22,650,893.15
Deferred income 53,022,776.39 53,936,649.47
Deferred income tax liabilities 27,843,166.00 29,132,160.48
Other non-current liabilities
Total non-current liabilities 811,310,180.88 822,992,475.67
Total liabilities 2,479,841,102.81 2,906,559,998.89
Owners' equity (or Shareholders' equity):
Paid-in capital 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 1,683,673,958.02 1,683,673,958.02
Less: treasury stock
Other comprehensive income 137,442.05 1,059,574.92
Special reserves
Surplus reserves 144,701,147.27 144,701,147.27
General risk reserve
Undistributed profit 315,060,528.53 307,028,112.53
Owner's Equity (or shareholder's equity) Attributable to Shareholders of the Parent
Company
Minority equity 349,808,728.33 348,309,178.82
Total owners' equity (or shareholders' equity) 3,220,332,055.20 3,211,722,222.56
Total liabilities and owners' equity (or shareholders' equity) 5,700,173,158.01 6,118,282,221.45
Legal Representative: Wang Chunli Chief Financial Officer: Guan Ying Head of Accounting Department: Cao Ling
Monetary Unit: RMB Yuan
Items 30 June 2026 31 December 2025
Current Assets:
Monetary capital 332,440,458.97 341,590,983.27
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Prepayment 25,050.00
Other receivables 945,263,055.56 930,000,000.00
Including: Interest receivable
Dividends receivable
Inventory
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 674,245.69 588,414.42
Total current assets 1,278,402,810.22 1,272,179,397.69
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 2,442,399,283.19 2,442,399,283.19
Other equity instrument investments
Other non-current financial assets
Investment property 4,350,926.15 4,520,056.97
Fixed assets 4,483,531.03 4,841,558.75
Construction in process
Productive biological assets
Oil-and-gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses 239,274.37 290,547.43
Deferred income tax assets
Other non-current assets 7,326,142.22 7,326,142.22
Total non-current assets 2,458,799,156.96 2,459,377,588.56
Total assets 3,737,201,967.18 3,731,556,986.25
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 236,000.00
Account collected in advance
Contract liabilities
Employee payroll payable 143,761.96 150,534.39
Taxes payable 96,040.38 105,528.51
Other payables 29,274,631.67 21,383,284.41
Including: Interest payable 20,000,000.00 20,000,000.00
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year 307,125,000.00 302,580,000.00
Other current liabilities
Total current liabilities 336,639,434.01 324,455,347.31
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual capital bonds
Lease liabilities
Long-term payables
Long-term payable to employees
Estimated liabilities 22,650,893.15 22,650,893.15
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 22,650,893.15 22,650,893.15
Total liabilities 359,290,327.16 347,106,240.46
Owners' equity (or Shareholders' equity):
Paid-in capital 726,950,251.00 726,950,251.00
Other equity instruments
Including: Preferred stock
Perpetual capital bonds
Capital reserves 2,386,924,900.84 2,386,924,900.84
Less: treasury stock
Other comprehensive income
Special reserves
Surplus reserves 132,065,774.68 132,065,774.68
Undistributed profit 131,970,713.50 138,509,819.27
Total owners' equity (or shareholders' equity) 3,377,911,640.02 3,384,450,745.79
Total liabilities and owners' equity (or shareholders' equity) 3,737,201,967.18 3,731,556,986.25
Monetary Unit: RMB Yuan
Amount for the Amount for the
Items
current period prior period
I. Total operating income 3,114,926,721.51 4,208,146,255.86
Including: Operating income 3,114,926,721.51 4,208,146,255.86
Interest income
Accumulated Premium
Fee and commission income
II. Total operating cost 3,126,051,528.56 4,179,559,981.23
Including: Operating cost 2,939,959,917.36 3,972,762,726.56
Interest expense
Commission and fee expense
Policy surrender benefit
Net payout expense
Net extraction of insurance liability reserve
Policy dividend expense
Reinsurance expense
Tax and surcharges 10,986,581.15 11,641,785.65
Selling expenses 62,285,353.26 65,707,454.27
Administration expenses 86,454,913.13 91,754,104.13
Research and development expenses 7,986,890.91 9,201,480.97
Financial expenses 18,377,872.75 28,492,429.65
Including: interest expenses 23,857,714.79 31,665,713.92
Interest income 5,794,866.63 5,319,761.53
Add: Other income 6,176,238.71 5,867,507.90
Income from investment (Losses shall be filled in with “-”) 4,266,119.02 3,572,053.10
Including: income from investment on joint venture and cooperative
enterprise
income from derecognition of financial assets measured at
amortized cost
Exchange gain (Losses shall be filled in with “-”)
Income from net exposure hedging (Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”) 17,105,743.14 -10,955,589.95
Credit impairment loss (Losses shall be filled in with “-”) 126,000.00 52.30
Income from assets impairment (Losses shall be filled in with “-”) -37,303.33
Income from asset disposal (Losses shall be filled in with “-”) 314,309.51 16,255,830.49
III. Operating profit (Losses shall be filled in with “-”) 16,863,603.33 43,288,825.14
Add: non-operating income 295,082.31 171,433.89
Less: non-operating expenditure 378,632.51 16,645,099.05
IV. Total profit (Total losses shall be filled in with “-”) 16,780,053.13 26,815,159.98
Less: income tax expense 7,248,087.62 9,128,997.37
V. Net profit (Net loss shall be filled in with “-”) 9,531,965.51 17,686,162.61
(I) Classified by operations continuity
(II) Classified by ownership attribution
filled in with “-”)
VI. Net of tax from other comprehensive income -922,132.87 -111,113.23
One. Net of tax from other comprehensive income attributable to shareholders of
-922,132.87 -111,113.23
the parent company
(1) Remeasurement changes in defined benefit plans
(2) Other comprehensive income that cannot be transferred to gains and losses
under the equity method
(3) Changes in fair value of other equity instrument investments
(4) Changes in the fair value of the company's own credit risk
(5) Others
(1) Other comprehensive income that can be transferred to gains and losses under
the equity method
(2) Changes in fair value of other debt investments
(3) Reclassification of financial assets included in other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedge reserve
(6) Balance arising from the translation of foreign currency -922,132.87 -111,113.23
(7) Others
Net of tax from other comprehensive income attributable to minority shareholders
VII. Total comprehensive income 8,609,832.64 17,575,049.38
(I) Total comprehensive income attributable to shareholders of the parent company 7,110,283.13 17,839,060.88
(II) Total comprehensive income attributable to minority shareholders 1,499,549.51 -264,011.50
VIII. Earnings per share:
(I) Basic earnings per share 0.01 0.02
(II) Diluted earnings per share 0.01 0.02
Legal Representative: Wang Chunli Chief Financial Officer: Guan Ying Head of Accounting Department: Cao Ling
Monetary Unit: RMB Yuan
Amount for the Amount for the
Items
current period prior period
I. Total operating income 400,910.09 561,810.67
Less: Operating cost 169,130.82 169,130.82
Tax and surcharges 192,558.06 299,047.92
Selling expenses
Administration expenses 2,818,275.78 3,080,454.42
Research and development expenses
Financial expenses 3,769,269.77 4,022,147.97
Including: interest expenses 4,545,000.00 4,545,000.00
Interest income 777,964.50 511,248.31
Add: Other income 9,218.57 66,345.27
Income from investment (Losses shall be filled in with “-”) 86,434,733.13
Including: income from investment on joint venture and cooperative
enterprise
Income from derecognition of financial assets measured at amortized cost
Income from net exposure hedging (Losses shall be filled in with “-”)
Income from changes in fair value (Losses shall be filled in with “-”)
Credit impairment loss (Losses shall be filled in with “-”)
Income from assets impairment (Losses shall be filled in with “-”)
Income from asset disposal (Losses shall be filled in with “-”)
III. Operating profit (Losses shall be filled in with “-”) -6,539,105.77 79,492,107.94
Add: non-operating income 142,506.46
Less: non-operating expenditure 142,506.46 42,544.80
IV. Total profit (Total losses shall be filled in with “-”) -6,539,105.77 79,449,563.14
Less: income tax expense
V. Net profit (Net loss shall be filled in with “-”) -6,539,105.77 79,449,563.14
V. Net of tax from other comprehensive income
(1) Remeasurement changes in defined benefit plans
(2) Other comprehensive income that cannot be transferred to gains and losses
under the equity method
(3) Changes in fair value of other equity instrument investments
(4) Changes in the fair value of the company's own credit risk
(5) Others
(1) Other comprehensive income that can be transferred to gains and losses under
the equity method
(2) Changes in fair value of other debt investments
(3) Reclassification of financial assets included in other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedge reserve
(6) Balance arising from the translation of foreign currency
(7) Others
VII. Total comprehensive income -6,539,105.77 79,449,563.14
VIII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Monetary Unit: RMB Yuan
Items Amount for the current period Amount for the prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 3,544,345,764.08 5,146,353,207.59
Net increase in customer deposits and interbank placements
Net increase in borrowings from the central bank
Net increase in funds borrowed from other financial institutions
Cash received from premiums of original insurance contracts
Net cash received from reinsurance business
Net increase in policyholder funds and investment funds
Cash received from interest, fees and commissions
Net increase in funds borrowed
Net increase in funds used for repo transactions
Net cash received from securities trading on behalf of clients
Tax Refund Receipts 3,682,482.86 7,708,869.99
Other Cash Receipts Concerning Operating Activities 556,873,686.92 3,546,804,253.47
Subtotal of Cash Inflows from Operating Activities 4,104,901,933.86 8,700,866,331.05
Cash Paid for Purchase of Goods and Accepting Services 2,709,725,947.96 4,697,505,265.22
Net increase in customer loans and advances
Net increase in deposits with central bank and other financial
institutions
Cash paid for claims under original insurance contracts
Net increase in funds lent out
Cash paid for interest, fees and commissions
Cash paid for policy dividends
Cash Paid to and for Employees 154,227,384.75 154,554,722.43
Taxes and Fees Paid 93,495,832.55 63,767,878.30
Other Cash Paid Concerning Operating Activities 757,424,011.72 3,562,602,172.03
Subtotal of Cash Outflows from Operating Activities 3,714,873,176.98 8,478,430,037.98
Net Cash Flows from Operating Activities 390,028,756.88 222,436,293.07
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment
Cash Receipts from Returns on Investments
Net Cash from Disposal of Fixed Assets, Intangible Assets and
Other Long-term Assets
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 46,318.44
Cash Paid for Purchase and Construction of Fixed Assets, Intangible
Assets and Other Long-term Assets
Cash Paid for Investments
Net increase in pledged loan amount
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 76,195,819.29 22,300,701.06
Net Cash Flows from Investment Activities -76,149,500.85 -22,300,701.06
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment 1,500,000.00
Including: Cash Received by Subsidiaries Absorbing the Investment
from Minority Shareholders
Cash Receipts from Borrowings 724,049,105.70 2,404,441,868.75
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities 724,049,105.70 2,405,941,868.75
Cash Paid for Repayment of Debts 1,153,637,924.89 2,227,516,445.20
Cash Paid for Distribution of Dividends, Profits or Repayment of
Interests
Including: Dividends and Profits Paid by Subsidiaries to Minority
Shareholders
Other Cash Paid Concerning Financing Activities 9,474,709.30 679,200.00
Subtotal of Cash Outflows from Financing Activities 1,181,065,775.99 2,266,503,144.45
Net Cash Flows from Financing Activities -457,016,670.29 139,438,724.30
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents -123,043,020.44 334,419,422.42
Add: Opening Balance of Cash and Cash Equivalents 1,788,311,181.44 1,395,519,746.77
VI. Closing Balance of Cash and Cash Equivalents 1,665,268,161.00 1,729,939,169.19
Monetary Unit: RMB Yuan
Items Amount for the current period Amount for the prior period
I. Cash Flows from Operating Activities:
Cash Receipts from Sales of Goods or Rendering of Services 436,992.00
Tax Refund Receipts
Other Cash Receipts Concerning Operating Activities 9,094,234.29 838,662.89
Subtotal of Cash Inflows from Operating Activities 9,531,226.29 838,662.89
Cash Paid for Purchase of Goods and Accepting Services 273,050.00 15,383.17
Cash Paid to and for Employees 550,237.97 606,099.83
Taxes and Fees Paid 192,558.06 309,699.19
Other Cash Paid Concerning Operating Activities 2,665,904.56 2,334,725.33
Subtotal of Cash Outflows from Operating Activities 3,681,750.59 3,265,907.52
Net Cash Flows from Operating Activities 5,849,475.70 -2,427,244.63
II. Cash Flows from Investment Activities:
Cash Receipts from Disinvestment 75,000,000.00
Cash Receipts from Returns on Investments 104,439,339.88
Net Cash from Disposal of Fixed Assets, Intangible Assets and
Other Long-term Assets
Net Cash Received by Disposal of Subsidiaries and Other Business
Units
Other Cash Receipts Concerning Investment Activities
Subtotal of Cash Inflows from Investment Activities 75,000,000.00 104,439,339.88
Cash Paid for Purchase and Construction of Fixed Assets, Intangible
Assets and Other Long-term Assets
Cash Paid for Investments 90,000,000.00 101,600,000.00
Net Cash Paid for obtaining Subsidiaries and Other Business Units
Other Cash Paid Concerning Investment Activities
Subtotal of Cash Outflows from Investment Activities 90,000,000.00 103,475,270.00
Net Cash Flows from Investment Activities -15,000,000.00 964,069.88
III. Cash Flows from Financing Activities:
Cash Receipts from Accepting Investment
Cash Receipts from Borrowings
Other Cash Receipts Concerning Financing Activities
Subtotal of Cash Inflows from Financing Activities
Cash Paid for Repayment of Debts
Cash Paid for Distribution of Dividends, Profits or Repayment of
Interests
Other Cash Paid Concerning Financing Activities
Subtotal of Cash Outflows from Financing Activities 13,071,629.56
Net Cash Flows from Financing Activities -13,071,629.56
IV. Exchange Rate Fluctuation Consequences on Cash and Cash
Equivalents
V. Net Increase in Cash and Cash Equivalents -9,150,524.30 -14,534,804.31
Add: Opening Balance of Cash and Cash Equivalents 319,720,223.25 343,402,502.17
VI. Closing Balance of Cash and Cash Equivalents 310,569,698.95 328,867,697.86
Monetary Unit: RMB Yuan
Current Amount
Shareholder's Equity attributable to the Parent Company
Other equity instruments O
Items t Total
Less: Other General Minority equity shareholders'
Special Undistributed h
Paid-in capital Capital reserve treasur comprehensive Surplus reserve Risk Subtotal equities
reserve profit e
Preferre Perpetual Oth y stock income Reserve
r
d stock bond ers s
I. Year-end balance of last
year
Add: changes in
accounting policies
Correction of prior period
errors
Other
II. Balance at beginning of
current year
III. Increases and
decreases of current
-922,132.87 8,032,416.00 7,110,283.13 1,499,549.51 8,609,832.64
period (Decrease shall be
filled in with “-”)
(I) Total comprehensive
-922,132.87 8,032,416.00 7,110,283.13 1,499,549.51 8,609,832.64
income
(II) Investment of
shareholders and capital
reduction
invested by shareholders
other equity instruments
holders
recorded into the
shareholder's equity
(III) Distribution of profits
reserves
provisions
shareholders
(IV) Inner carrying-over
of shareholders' equities
converted into capital (or
capital stock)
accumulation converted
into capital (or capital
stock)
accumulation loss remedy
benefit plan carried
forward to retained
earnings
income carried forward to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Closing balance of
current period
Amount of Last Period
Amount of Last Period
Shareholder's Equity attributable to the Parent Company
Other equity instruments O
Items t Total
Less: Other General Minority equity shareholders'
Special Undistributed h
Paid-in capital Capital reserve treasury comprehensi Surplus reserve Risk Subtotal equities
reserve profit e
Preferre Perpetual Oth stock ve income Reserve
r
d stock bond ers s
I. Year-end balance of last
year
Add: changes in
accounting policies
Correction of prior period
errors
Other
II. Balance at beginning of
current year
III. Increases and
decreases of current period
-111,113.23 4,865,069.59 4,753,956.36 -569,623.30 4,184,333.06
(Decrease shall be filled in
with “-”)
(I) Total comprehensive
-111,113.23 17,950,174.11 17,839,060.88 -264,011.50 17,575,049.38
income
(II) Investment of
shareholders and capital 1,500,000.00 1,500,000.00
reduction
invested by shareholders
other equity instruments
holders
recorded into the
shareholder's equity
(III) Distribution of profits -13,085,104.52 -13,085,104.52 -1,805,611.80 -14,890,716.32
reserves
provisions
-13,085,104.52 -13,085,104.52 -1,805,611.80 -14,890,716.32
shareholders
(IV) Inner carrying-over of
shareholders' equities
converted into capital (or
capital stock)
accumulation converted
into capital (or capital
stock)
accumulation loss remedy
benefit plan carried
forward to retained
earnings
income carried forward to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Closing balance of
current period
Monetary Unit: RMB Yuan
Current Amount
Other equity instruments
Items Less: Other
Special Undistributed
Paid-in capital Capital reserve treasury comprehensi Surplus reserve Others Subtotal
reserve profit
Preferred Perpetual stock ve income
Others
stock bond
I. Year-end balance of last year 726,950,251.00 2,386,924,900.84 132,065,774.68 138,509,819.27 3,384,450,745.79
Add: changes in accounting policies
Correction of prior period errors
Other
II. Balance at beginning of current
year
III. Increases and decreases of current
period (Decrease shall be filled in -6,539,105.77 -6,539,105.77
with “-”)
(I) Total comprehensive income -6,539,105.77 -6,539,105.77
(II) Investment of shareholders and
capital reduction
shareholders
instruments holders
into the shareholder's equity
(III) Distribution of profits
(IV) Inner carrying-over of
shareholders' equities
capital (or capital stock)
converted into capital (or capital
stock)
remedy
carried forward to retained earnings
carried forward to retained earnings
(V) Special reserve
(VI) Others
IV. Closing balance of current period 726,950,251.00 2,386,924,900.84 132,065,774.68 131,970,713.50 3,377,911,640.02
Amount of Last Period
Amount of Last Period
Other equity instruments
Items Less: Other
Special Undistributed
Paid-in capital Capital reserve treasury comprehensive Surplus reserve Others Subtotal
reserve profit
Preferred Perpetual stock income
Others
stock bond
I. Year-end balance of last
year
Add: changes in
accounting policies
Correction of prior period
errors
Other
II. Balance at beginning of
current year
III. Increases and
decreases of current period
(Decrease shall be filled in
with “-”)
(I) Total comprehensive
income
(II) Investment of
shareholders and capital
reduction
invested by shareholders
other equity instruments
holders
recorded into the
shareholder's equity
(III) Distribution of profits -13,085,104.52 -13,085,104.52
reserves
-13,085,104.52 -13,085,104.52
shareholders
(IV) Inner carrying-over of
shareholders' equities
converted into capital (or
capital stock)
accumulation converted
into capital (or capital
stock)
accumulation loss remedy
benefit plan carried
forward to retained
earnings
income carried forward to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Closing balance of
current period
Hainan Jingliang Holdings Co., Ltd.
Notes to the Semi-Annual of 2026 Financial Statements
(Unless otherwise stated, the amount unit is RMB Yuan)
I Basic Information of the Company
Hainan Jingliang Holdings Co., Ltd. (hereinafter referred to as "the Company" or "Company" or "Jingliang
Holdings") is established in accordance with the Hainan Provincial People's Government General Office QFBH
(1992) No.1, approved by QY (1992) SGZ No. 6 Document of the People's Bank of Hainan Province and
re-registered by Hainan Pearl River Enterprise Company on January 11, 1992. The Company issued 81,880,000
shares in total upon re-registration, of which 60,793,600 shares were converted from the net assets of the original
company and 21,086,400 shares were newly issued. And the name of the Company is Hainan Pearl River
Enterprise Co., Ltd. The business license registration number of the joint-stock company is 20128455-6, and the
holding parent company Guangzhou Pearl River Enterprise Group holds 36,393,600 shares, accounting for
additional 21,086,400 shares were listed on the Shenzhen Stock Exchange for trading. The industry involved is
real estate.
On March 25, 1993, in response to QGBH (1993) No.028 of Hainan Provincial Leading Group Office and
SRYFZ (1993) No.099 of Shenzhen Special Economic Zone Branch of the People's Bank of China, the Company
increased its share capital by converting the original share capital into 139,196,000 shares (according to
distribution of 10, delivery of 5 and transfer of 2), with the controlling shareholder 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. The controlling 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 of the Company was increased by 10:1.5 on the basis of the share capital after the additional B
shares were issued, and the share capital of the Company after the increase was 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 Development Co., Ltd. After the transfer of shares was completed in June 1999, Beijing Wanfa Real Estate
Development Co., Ltd. held 112,628,976 shares of the Company, accounting for 29.82% of the total shares of the
Company, and became the controlling shareholder of the Company.
On January 10, 2000, the name of the Company was changed to Hainan Pearl River Holding Co., Ltd. and
the Business License for Enterprise Legal Person was renewed by Industrial & Commerce Administration Bureau
of Hainan Province.
On August 17, 2006, the reform plan of the split share structure of the Company was implemented. The
Company transferred 49,094,604 shares of capital stock to all shareholders at the ratio of 10 to 1.3. The original
non-tradable shareholders transferred the increased shares to the tradable A-shareholders. Beijing Wanfa Real
Estate Development Co., Ltd. reimbursed the consideration shares of the non-tradable shareholders who have not
expressly expressed their opinions. The converted total share capital was 426,745,404 shares, and the original
controlling shareholder Beijing Wanfa Real Estate Development Co., Ltd. held 107,993,698 shares, accounting for
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 of its 112,479,478 shares to Beijing Grain Group Co., Ltd. (hereinafter referred to as "Beijing Grain
Group"). Upon completion of the share transfer in September 2016, Beijing Grain Group Co., Ltd. held
confidence in the subject matter of the material asset restructuring and the future development of the Company,
Beijing Grain Group Co., Ltd. decided to increase its shareholding through centralized bidding in the secondary
market. After the increase, it held 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 restructuring plan and the delivery agreement. On September 14, 2017, approved pursuant to the
resolution of the Second Extraordinary General Meeting of Shareholders of the Company on November 18, 2016
and the Approval Reply of the China Securities Regulatory Commission dated July 28, 2017 On Approval of
Hainan Pearl River Holding Co., Ltd. to Purchase Assets and Raise Supporting Funds from Beijing Grain Group
Co., Ltd. (ZJXK (2017) No.1391): 1) The Company purchased assets from the original shareholders of Beijing
Jingliang Food Co., Ltd. (hereinafter referred to as Beijing Jingliang Food) by issuing 210,079,552 shares of the
balance between the transaction price of the injected assets and the assets to be purchased (the difference between
the transaction price of the injected assets and the assets to be purchased was RMB 1,699.5436 million yuan). The
par value in the issuance was RMB 1.00 per share and the issuance price was RMB 8.09 per share; 2) The
Company has issued 48,965,408 non-public shares of the Company to Beijing Grain Group for the purpose of
purchasing the supporting funds raised from the assets of the issuance of shares. The par value per share of the
Company was RMB1.00 and the issuance price was RMB8.82 per share. The shareholder Beijing Grain Group
conducted subscription in monetary funds. Upon completion of the issue, the registered capital was RMB
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 by China Securities Regulatory Commission [2020] No.
purchase of assets through the issued shares. The Company and its subsidiary, Beijing Jingliang Food Co., Ltd.,
purchased the 25.1149% equity stake of Zhejiang Little Prince by cash and issuance of shares.
As of June 30, 2026, the company has issued 726,950,251.00 shares, and the company's share capital is
Supervision Administration; Company type: Limited Company (Listed, State-controlled); Registered address: F29,
Dihao Building, Pearl River Square, Binhai Avenue, Haikou City; Legal representative: WangChunli.
The Company belongs to manufacturing-agricultural and sideline food processing industry. Its main business
activities mainly includes: food, beverages, oilseeds and by products, vegetable proteins and their products,
organic fertilizers, microbial fertilizers, production and marketing of agricultural fertilizers; land consolidation,
soil remediation; agricultural comprehensive planting development, animal husbandry and aquaculture,
agricultural equipment production and marketing; computer network technology, investment in communication
projects, research and development and application of high-tech products; investment and consultation of
environmental protection projects; animation, graphic design; import and export trade in goods and technology;
rental of own premises.
The Company and its subsidiaries are principally engaged in the processing and sales of oil and oilseeds, and
processing and sales of foodstuffs.
The parent company of the company is Beijing Grain Group Co., Ltd., and the ultimate parent company is
Beijing Capital Agribusiness Food Group Co., Ltd.
From March 22, 1988 to the present (with no fixed end date).
The financial statements have been approved by the Board of Directors of the Company in its resolution
dated August 25, 2026.
II Preparation Basis for Financial Statements
Based on the assumption of going concern and according to actual transaction events, the financial
statements are prepared in accordance with the relevant provisions of Accounting Standard for Business
Enterprises and the following stated Significant Accounting Policies and Estimates.
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 is reasonable.
III Significant Accounting Policies and Estimates
The Company and its subsidiaries are engaged in the processing and sales of oil and oilseeds, and processing
and sales of foodstuffs. According to the characteristics of actual production and operation and the provisions of
relevant accounting standards for business enterprises, the Company and its subsidiaries have formulated a
number of specific accounting policies and accounting estimates for transactions and events such as revenue
recognition. For details, please refer to the descriptions in Note Ⅲ, 27 “Revenue”.
The financial statements prepared by the company comply with the requirements of the Enterprise
Accounting Standards and fairly and completely reflect the company's and consolidated financial position as of
June 30, 2026, as well as the company's and consolidated operating results, changes in shareholders' equity, and
cash flows for the six-month period then ended.
Additionally, these financial statements are prepared with reference to the disclosure and reporting
requirements outlined in the China Securities Regulatory Commission’s "Regulations on the Preparation of
Information Disclosure Reports for Publicly Issued Securities No. 15 - General Provisions on Financial Reports"
(revised in 2023).
The accounting period of the Company is divided into an annual period and an interim period. The
accounting interim period refers to the reporting period shorter than a full accounting year. The fiscal year of the
Company adopts the Gregorian calendar year, that is, from January 1 to December 31 of each year.
The normal business cycle is the period from the time the Company purchases assets for processing to the
time when cash or cash equivalents are realized. The Company uses 12 months as a business cycle and uses it as a
liquidity classification standard for assets and liabilities.
RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries
operate. The Company and its domestic subsidiaries use RMB as the bookkeeping standard currency. The offshore
subsidiaries of the Company determine USD as their bookkeeping standard currency based on the currencies in
the main economic environment in which they operate. The currency used by the Company in preparing these
financial statements is RMB.
The company follows the materiality principle when preparing and disclosing financial reports. If disclosure
matters involve the judgment of materiality standards. the methods of determining materiality standards and
selection basis are disclosed as follows:
Disclosure matters involve the judgment
Methods of determining materiality standards and selection basis
of materiality standards
Impairment test made on individual Impairment test made on individual accounts receivables accounting
accounts receivable with significant over 10% as total provision for various types of bad debts receivables,
amounts. and amounts exceeding 5 million yuan
Significant bad debt reserve for accounts Individual item recovered or reversed accounting over 10% as total
receivable recovered or reversed amounts for various types of receivables and exceeding 5 million yuan
Individual write-off amount accounting for over 10% as total amounts
Significant receivables actually written
of various types of bad debts reserve for receivables, and amounts
off
exceeding 5 million yuan
Individual contractual liabilities with aging over one year accounting
Significant contractual liabilities with
over 10% of total amount of contractual liabilities, and amounts
aging over one year
exceeding 10 million yuan
Significant project under construction Projects with investments exceeding 5 million yuan
Non-wholly owned subsidiaries with individual entity revenue and net
Significant non-wholly owned
profit accounting 10% for items related to the Company's consolidated
subsidiaries
statements
Associated enterprise and joint-venture with net profit share
Significant associated enterprise and
recognized in the current period accounting 5% for items related to the
joint-venture.
Company’s consolidated statements
Transactions involving the purchase of bonds, funds, wealth
Significant investment activities
management products, etc., with an amount reaching 50 million yuan.
Business Combination refers to the transaction or event in which two or more separate enterprises are merged
to form one reporting entity. Business combination can be divided into business combination under the same
control and business combination under different control.
(1) Business combination under the same control
Enterprises participating in the combination are ultimately controlled by the same party or multiple parties
before and after the combination, and the control is not temporary, so it is the business combination under the
same control. In case of business combination under the same control, the party that obtains control of other
enterprises participating in the combination on the combination date shall be the combination party, and the other
enterprises participating in the combination shall be the merged party. The combination date refers to the date on
which the combination party actually acquires control over the merged party.
The assets and liabilities acquired by the combination party are measured at the book value of the merged
party at the date of consolidation, including goodwill that was formed during acquisition by end controller. If the
difference between the book value of the net assets acquired by the merging party and the book value of the
merged consideration (or the total par value of the issued shares) paid by the merging party, and the capital reserve
(share capital premium) shall be adjusted; If the capital reserve (equity premium) is insufficient to offset, the
retained earnings shall be adjusted.
The direct expenses incurred by the merging party for the purpose of business combination shall be included
in the profits and losses of the current period when they are incurred.
(2) Business combination under different control
If the enterprises participating in the merger are not ultimately controlled by the same party or multiple
parties before and after the merger, the enterprise merger is not under the same control. In case of business
combination under different control, the party that obtains control of other enterprises participating in the
combination on the date of purchase shall be the Purchaser, and the other enterprises participating in the
combination shall be the Purchasee. Purchase date means the date on which the Purchaser actually acquires
control of the Purchasee.
For business combination under different control, the merger cost includes the assets, liabilities and fair value
of equity securities issued by the Purchaser in order to obtain the control over the Purchasee on the date of
purchase, and the intermediary fees such as audit, legal service, appraisal and consultation and other management
fees for the enterprise merger are used to record into the profits and losses of the current period when incurred.
The transaction costs of equity or debt securities issued by the Purchaser as a merger consideration are included in
the initial recognition amount of the equity or debt securities. Contingent consideration involved shall be included
in the consolidation cost at its fair value at the purchase date, and the consolidation goodwill shall be adjusted
accordingly if new or further evidence of the existence of circumstances at the purchase date appears within 12
months after the purchase date and the adjustment or consideration is required. The consolidation cost incurred by
the Purchaser and the identifiable net assets acquired during the consolidation are measured at the fair value at the
date of purchase. The difference between the merger costs and the fair value shares of the identifiable net assets of
the Purchasee at the purchase date obtained in the merger is recognized as goodwill. If the combined cost is less
than the fair value of the identifiable net assets of the Purchasee in the merger, first, the fair value of the
identifiable assets, liabilities and contingent liabilities of the Purchasee and the measurement of the consolidation
cost shall be re-checked. If the consolidation cost is still smaller than the fair value share of the identifiable net
assets of the Purchased obtained in the consolidation after the re-check, the difference shall be recorded into the
profits and losses of the current period.
When the Purchaser acquires the deductible temporary difference of the Purchasee, if it fails to recognize the
deferred income tax assets on the date of purchase because it does not meet the recognition conditions for the
deferred income tax, and within 12 months of the date of purchase, new or further information is obtained
indicating that the relevant circumstances at the purchase date already exist and the economic benefits from the
temporary difference deductible by the purchaser on the purchase date are expected to be realized, the relevant
deferred income tax assets shall be recognized, and the goodwill shall be reduced. If the goodwill is not
sufficiently offset, the difference shall be recognized as the current profit or loss; In addition to the above
circumstances, the deferred income tax assets related to the enterprise merger are recognized and included in the
current profits and losses.
Through multi-transaction and step-by-step business combination under different control, according to the
Circular of the Ministry of Finance on Printing and Issuing the Interpretation of Accounting Standards for
Business Enterprises No.5 (CK (2012) No.19) and Article 51 of the Accounting Standards for Business
Enterprises No.33-Consolidated Financial Statements on the judgment criteria of "package deal" (see 7 (2) of
Note Ⅲ), it is determined whether the multiple transactions belong to the "package deal". In the case of a
"package deal", the accounting treatment shall be performed with reference to the description in the preceding
paragraphs of this section and Note Ⅲ, 15 "Long-term Equity Investments"; If the transaction is not a "package
deal", the accounting treatment shall be distinguished between the individual financial statements and the
consolidated financial statements:
In the individual financial statements, the sum of the book value of the equity investment held by the
Purchaser prior to the purchase date and the cost of the new investment at the purchase date shall be taken as the
initial investment cost of the investment; Where the equity of the Purchased held before the date of purchase
involves other comprehensive income, the other consolidated income associated with the investment is accounted
for on the same basis as the assets or liabilities directly disposed of by the Purchaser (i.e., except for the
corresponding share in the change caused by the acquisition of the net liability or net assets of the defined benefit
plan remeasured in accordance with the equity method, the rest is transferred to the current investment income).
In the consolidated financial statements, the equity of the Purchased held prior to the date of purchase is
remeasured according to the fair value of the equity at the date of purchase, and the difference between the fair
value and the carrying value is included in the investment income of the current period; Where the equity of the
Purchasee held before the date of purchase involves other comprehensive income, other consolidated income
related thereto shall be accounted for on the same basis as the direct disposal of the relevant assets or liabilities by
the Purchaser (i.e., except for the corresponding share in the change caused by the acquisition of the net liability
or net asset of the defined benefit plan remeasured in accordance with the equity method, the rest is converted into
the investment income of the current period to which the acquisition date belongs).
Statements.
(1) Criteria for the Judgment of Control
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control
means that the Company has the authority over the Investee, enjoys a variable return by participating in the
relevant activities of the Investee, and has the ability to use its authority over the Investee to influence the amount
of such return. The scope of the merger includes the Company and all its subsidiaries. Subsidiary refers to the
main body controlled by the Company.
The Company will re-evaluate the above control definitions once the relevant facts and circumstances change,
which results in the change of the relevant elements.
(2) Preparation method of consolidated financial statement
The Company begins to incorporate the net assets of the subsidiary and the actual control of the production
and operation decisions into the scope of the merger from the date when the subsidiary is acquired; Cease to be
included in the scope of the merger as of the date of loss of effective control. For the subsidiaries disposed of, the
operating results and cash flows prior to the date of disposal have been appropriately included in the consolidated
income statement and consolidated cash flow statement; For subsidiaries disposed of in the current period, the
opening amount of the consolidated balance sheet is not adjusted. The operating results and cash flows of
subsidiaries increased by consolidation after purchase have been properly included in the consolidated income
statement and consolidated cash flow statement, and the opening and comparative amounts in the consolidated
financial statements have not been adjusted for subsidiaries that are not under the same control. The operating
results and cash flows of the subsidiaries increased by consolidation under the same control from the beginning of
the consolidation period to the consolidation date have been appropriately included in the consolidated profit
statement and consolidated cash flow statement, and the comparative amount of the consolidated financial
statements has been adjusted at the same time.
In the preparation of the consolidated financial statements, if the accounting policies or accounting periods
adopted by the subsidiaries are inconsistent with those adopted by the Company, necessary adjustments shall be
made to the financial statements of the subsidiaries in accordance with the accounting policies and accounting
periods of the Company. For subsidiaries acquired through business combination under different control, the
financial statements shall be adjusted on the basis of the fair value of identifiable net assets at the date of
purchase.
All significant transaction balances, transactions and unrealized profits within the Company are offset at the
time of preparation of the consolidated financial statements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the
Company for the current period are separately presented as minority shareholders' equity and minority
shareholders' profit or loss in the consolidated financial statements under shareholders' equity and net profit. The
shares of minority shareholders' equity in the net profits and losses of subsidiaries for the current period are shown
as "minority shareholders' profits and losses" under the net profit item in the consolidated income statement.
Losses shared by minority shareholders in a subsidiary exceed the minority shareholders' share in the
shareholders' equity of the subsidiary at the beginning of the period, and still decrease by a number of
shareholders' equity.
When the control of the original subsidiary is lost due to the disposal of part of the equity investment or other
reasons, the residual equity shall be revalued according to its fair value at the date of loss of control. The sum of
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the shares of the net assets of the original subsidiary that shall be continuously calculated from the
purchase date according to the original shareholding proportion shall be included in the investment income of the
current period of loss of control. Other comprehensive income related to the equity investment of the original
subsidiary, in the event of loss of control, the accounting treatment is performed on the same basis as the direct
disposal of the relevant assets or liabilities by the Purchased (i.e. converted to current investment income, except
for changes resulting from the re-measurement of the net liabilities or net assets of the Defined Benefit Plan in the
original subsidiary). Thereafter, the residual equity shall be subsequently measured in accordance with the
relevant provisions of Accounting Standards for Business Enterprises No.2-Long-term Equity Investment or
Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, as
detailed in Note Ⅲ, 15-Long-term Equity Investment or Note Ⅲ, 11-Financial Instruments.
If the Company disposes of the equity investment in subsidiaries step by step until it loses control through
multiple transactions. It is necessary to distinguish whether the transactions that dispose of the equity investment
in subsidiaries until it loses control belong to a package deal or not. The terms, conditions and economic impact of
the transactions for the disposal of equity investments in subsidiaries are in accordance with one or more of the
following circumstances and generally indicate that multiple transactions should be accounted for as a package
deal: ①These transactions were entered into simultaneously or taking into account each other's influence; ②Only
when these transactions are taken together can a complete business result be achieved; ③The occurrence of one
transaction depends on the occurrence of at least one other transaction; ④It is not economical to consider a
transaction alone, but it is economical to consider it in conjunction with other transactions. For transactions that
are not part of the package deal, each transaction shall be accounted for in accordance with the principles
applicable to the "partial disposal of long-term equity investments in subsidiaries without loss of control" (as
detailed in 15 of Note Ⅲ) and the "loss of control over existing subsidiaries as a result of the disposal of part of
the equity investments or other reasons" (as detailed in the preceding paragraph), as appropriate. If the
transactions involving the disposal of equity investments in subsidiaries until the loss of control belong to a
package deal, the transactions shall be accounted for as a transaction involving the disposal of subsidiaries and the
loss of control; However, the difference between each disposal price and the share of the subsidiary's net assets
corresponding to the disposal investment prior to the loss of control is recognized in the consolidated financial
statements as other consolidated gains and transferred to the profit or loss for the current period of loss of control
in the event of loss of control.
A joint venture arrangement is an arrangement under the joint control of two or more participants. The
Company divides the joint venture arrangement into joint operation and joint venture in accordance with the rights
and obligations it enjoys in the joint venture arrangement. A joint operation is a joint arrangement whereby the
parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities,
relating to the arrangement. A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture.
The Company's investment in the joint venture is accounted for using the equity method, and shall be treated
in accordance with the accounting policy described in Note Ⅲ, 15 "Long-term Equity Investment Accounted by
the Equity Method".
The Company, as a joint venture party, recognizes the assets and liabilities held and assumed by the
Company separately, and recognizes the assets and liabilities jointly held and assumed by the Company according
to the shares of the Company; recognizes the revenue generated from the sale of the share of joint operating
output enjoyed by the Company; recognizes revenue generated from the sale of output from joint operations on
the basis of the Company's share; confirms the expenses incurred by the Company individually and the expenses
incurred by the joint operation according to the shares of the Company.
When the Company invests or sells assets as a joint venture (such assets do not constitute business, the same
below), or purchases assets from the joint venture, the Company recognizes only the portion of the profits and
losses attributable to the other participants in the joint venture that arises from the transaction prior to the sale of
such assets to a third party. Where such assets are impaired in accordance with the provisions of Accounting
Standards for Business Enterprises No.8-Impairment of Assets, the Company shall fully recognize such losses in
the case where the assets are cast or sold by the Company to joint operations; For the assets purchased by the
Company from the joint operation, the Company recognizes the losses according to the shares it assumes.
Cash and cash equivalents of the Company include cash on hand, deposits that can be readily withdrawn on
demand. Cash equivalents are investments held by the Company with a short term (usually maturing within three
months from the date of purchase), high liquidity, readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
(1) Translation method for foreign currency transaction
At the time of initial confirmation, the foreign currency transactions occurring in the Company shall be
converted into the bookkeeping functional currency amount at the spot exchange rate on the trading day, but the
foreign currency exchange business or transactions involving foreign currency exchange occurring in the
Company shall be converted into the bookkeeping functional currency amount at the actual exchange rate.
(2) Translation method for foreign currency monetary items and foreign currency non-monetary item
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the
balance sheet date, and the exchange difference arising therefrom shall be: ① The exchange difference arising
from the special foreign currency borrowings related to the acquisition and construction of assets eligible for
capitalization shall be handled in accordance with the principle of capitalization of borrowing costs; ② The
exchange difference of the hedging instruments used for effective hedging of the net investment in overseas
operations (the difference is included in other comprehensive income, and is not recognized as current profit or
loss until the net investment is disposed of); ③ Except for the amortized cost, the exchange differences arising
from the changes in the book balance of the available-for-sale monetary items in foreign currencies shall be
included in the other comprehensive income, and shall be included in the profits and losses of the current period.
Where the preparation of the consolidated financial statements involves overseas operations, if there are
foreign currency monetary items constituting net investment in overseas operations, the exchange differences
arising from exchange rate changes shall be included in other comprehensive income; When disposing of overseas
operations, the profits and losses shall be transferred to the current disposal period.
Non-monetary items in foreign currencies measured at historical cost shall still be measured at the
bookkeeping amount in functional currency translated at the spot exchange rate on the transaction date. For
non-monetary items in foreign currencies measured at fair value, the spot exchange rate at the date of fair value
determination shall be adopted for conversion. The difference between the converted amount in functional
currency and the amount in original functional currency shall be treated as the change in fair value (including the
change in exchange rate), and shall be recorded into the profits and losses of the current period or recognized as
other comprehensive income.
(3) Translation method for financial statements in foreign currencies
Where the preparation of the consolidated financial statements involves overseas operations, if there are
foreign currency monetary items constituting net investment in overseas operations, the exchange differences
arising from exchange rate changes shall be as "foreign currency report conversion difference" and be confirmed
as other comprehensive income; When disposing of overseas operations, the profits and losses shall be transferred
to the current disposal period.
The foreign currency financial statements of overseas operations shall be converted into RMB statements in
the following ways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on
the balance sheet date; Except for "undistributed profits", other items of shareholders' equity shall be converted at
the spot exchange rate at the time of occurrence. The income and expense items in the profit statement shall be
converted at the average exchange rate of the current period on the date of transaction. The undistributed profit at
the beginning of the period shall be the undistributed profit at the end of the period converted from the previous
year; The undistributed profits at the end of the year shall be calculated and listed according to the converted
profits distribution items; The difference between the converted asset items and the total amount of the liability
items and shareholders' equity items shall be recognized as other comprehensive income as the translation
difference in the foreign currency statements. In case of disposal of overseas operations and loss of control, the
balance in translation of the foreign currency statements related to the overseas operations as shown below in the
shareholders' equity items in the balance sheet shall be transferred to the profits and losses of the disposal period
in whole or in proportion to the disposal of the overseas operations.
Cash flows in foreign currencies and cash flows of overseas subsidiaries shall be converted at the average
exchange rate of the current period on the date of occurrence of the cash flows. The effect of exchange rate
changes on cash shall be presented separately in the statement of cash flows as a reconciling item.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the
prior-period financial statements.
When disposing of all the owner's equity of the Company's overseas operations or losing the control over
overseas operations due to the disposal of part of the equity investment or for other reasons, if the following items
of shareholders' equity in the balance sheet are shown below, the balance in translation of the foreign currency
statement attributable to the owner's equity of the parent company related to the overseas operation shall be
transferred to the profits and losses of the current disposal period.
In the event that the proportion of overseas business interests is reduced due to the disposal of part of the
equity investment or for other reasons, but the control over overseas business operations is not lost, the balance in
the translation of the foreign currency statements related to the disposal of part of overseas business operations
shall be attributed to minority shareholders' interests and shall not be transferred to the profits and losses of the
current period. When disposing of part of the equity of an overseas operation as an associated enterprise or a joint
venture, the balance of the translation of the foreign currency statements related to the overseas operation shall be
transferred into the profits and losses of the current disposal period in the proportion of the overseas operation
disposed of.
Financial instruments are the contracts that form the financial assets of one entity, and at the same time form
the financial liabilities or equity instruments of other entities.
(1) Classification, confirmation and measurement of financial assets
According to the business mode of managing financial assets and the contractual cash flow characteristics of
financial assets, the Company divides financial assets into: Financial assets measured at amortized cost. Financial
assets measured at fair value with changes included in other comprehensive income. Financial assets that are
measured at fair value and whose movements are included in the current profits and losses.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value
and whose changes are included in current profits and losses, relevant transaction costs are directly included in
current profits and losses. For other types of financial assets, relevant transaction costs are included in the initial
recognition amount. Accounts receivable or notes receivable arising from the sale of products or the provision of
labor services that do not contain or take into account significant financing components shall be initially
recognized by the Company in accordance with the amount of consideration that the Company is expected to be
entitled to receive.
①Financial assets measured at amortized cost
The Group measures financial assets at fair value through other comprehensive income if both of the
following conditions are met: the financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest
income of such financial assets is recognized based on effective interest method. The Company measures these
financial assets at fair value and their changes are included in other comprehensive income, but impairment loss or
gain, exchange gain or loss and interest income calculated according to the effective interest rate method are
included into the current profit and loss.
②Financial assets measured at fair value with changes included in other comprehensive income
The Group measures financial assets at fair value through other comprehensive income if both of the
following conditions are met: the financial asset is held within a business model with the objective of both holding
to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest
income of such financial assets is recognised based on effective interest method. The Company measures these
financial assets at fair value and their changes are included in other comprehensive income, but impairment loss or
gain, exchange gain or loss and interest income calculated according to the effective interest rate method are
included into the current profit and loss.
In addition, the Company designates some non-tradable equity instrument investments as financial assets
measured at fair value with changes included in other comprehensive income. The Company shall record the
relevant dividend income of such financial assets into the current profits and losses, and the change of fair value
into other comprehensive income. When the financial asset is derecognized, the accumulated gains or losses
previously included in other comprehensive income will be transferred from other comprehensive income to
retained income and will not be included in current profits and losses.
③Fair value through Profit and Loss Financial assets
The Company classifies the above financial assets measured at amortized cost and financial assets measured
at fair value with changes included in other comprehensive income into financial assets measured at fair value
with changes included in current profits and losses. In addition, during initial recognition, in order to eliminate or
significantly reduce accounting mismatch, the Company designated part of financial assets as financial assets
measured at fair value with changes included in current profit and loss. For such financial assets, the Company
adopts fair value for subsequent measurement, and the changes in fair value are included into the current profit
and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities upon initial recognition are classified as financial liabilities which are measured at fair
value and whose changes are included in current profits and losses and other financial liabilities. For the financial
liabilities measured at fair value with the changes included into the current profits and losses, the relevant
transaction costs are directly included into the current profits and losses, and the relevant transaction costs of other
financial liabilities are included in the initial recognition amount.
①Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value with changes included in current profits and losses, which include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated to be measured at fair value with changes included in current profits and losses at initial recognition.
Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to their fair values. Except for those related to hedge accounting, changes in fair values are
included in current profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits and
losses. Changes in the fair value of this liability caused by changes in the Company's own credit risk are included
in other comprehensive income. When the liability is derecognized, the accumulated change in fair value caused
by changes in its own credit risk included in other comprehensive income is transferred to retained earnings.
Changes in fair value are accounted into current profits and losses. If the above-mentioned treatment of the impact
of changes in the credit risk of these financial liabilities will cause or expand accounting mismatch in profits and
losses, the Company will include all profits or losses of the financial liabilities (including the impact amount of
changes in the credit risk of the enterprise itself) into the current profits and losses.
② Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that
do not meet the conditions for termination of recognition or continue to be involved in the transferred financial
assets, other financial liabilities are classified as financial liabilities measured at amortized cost and subsequently
measured at amortized cost. Gains or losses arising from termination of recognition or amortization are included
in current profits and losses.
(3) Basis of Confirmation and Calculation of financial instruments
Financial assets shall be derecognized if they meet one of the following conditions: ① The termination of the
contractual right to receive cash flow from the financial asset. ② The financial asset has been transferred, and
almost all risks and rewards related to the ownership of the financial asset have been transferred to the transferee.
③ The financial asset has been transferred. Although the enterprise has neither transferred nor retained almost all
risks and rewards in the ownership of the financial asset, it has given up its control over the financial asset.
If the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financial
assets, and does not give up the control over the financial assets, the relevant financial assets shall be recognized
according to the extent of continuous involvement in the transferred financial assets, and the relevant liabilities
shall be recognized accordingly. The degree of continuous involvement in the transferred financial assets refers to
the risk level faced by the enterprise due to the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference
between the book value of the transferred financial assets and the sum of the consideration received due to the
transfer and the accumulated amount of changes in fair value originally included in other comprehensive income
shall be included into the current profits and losses.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of
the transferred financial assets shall be apportioned according to its relative fair value between the derecognized
part and the non-derecognized part, and the difference between the sum of the consideration received due to the
transfer and the accumulated change in fair value originally included in other comprehensive income that shall be
apportioned to the derecognized part and the allocated aforesaid book amount shall be included into the current
profits and losses.
For financial assets sold by the Company with recourse, or for endorsement and transfer of held financial
assets, it is necessary to determine whether almost all risks and rewards in the ownership of the financial assets
have been transferred. If almost all risks and rewards in the ownership of the financial asset have been transferred
to the transferee, the recognition of the financial asset shall be terminated. If almost all risks and rewards on the
ownership of a financial asset are retained, the recognition of the financial asset shall not be terminated. If almost
all risks and rewards related to the ownership of financial assets have not been transferred or retained, it shall
continue to judge whether the enterprise retains control over the assets and carry out accounting treatment
according to the principles mentioned in the preceding paragraphs.
(4) Termination of recognition of financial liabilities
If the current obligation of the financial liability (or part thereof) has been relieved, the Company terminates
the recognition of the financial liability (or part thereof). The Company (the borrower) and the lender sign an
agreement to replace the original financial liabilities by assuming new financial liabilities. If the contract terms of
the new financial liabilities and the original financial liabilities are substantially different, the original financial
liabilities shall be derecognized and a new financial liability shall be recognized at the same time. If the Company
makes any substantial modification to the contract terms of the original financial liability (or part thereof), the
original financial liability shall be derecognized and a new financial liability shall be recognized in accordance
with the modified terms.
If financial liabilities (or part thereof) are derecognized, the Company shall include the difference between its
book value and the consideration paid (including transferred non-cash assets or liabilities assumed) into the
current profits and losses.
(5) Offset of financial assets and financial liabilities
When the Company has the legal right to offset the recognized amount of financial assets and financial
liabilities, and such legal right is currently enforceable, and the Company plans to settle the financial assets on a
net basis or realize the financial assets and settle the financial liabilities at the same time, the financial assets and
financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition, financial assets
and financial liabilities shall be listed separately in the balance sheet and shall not be offset against each other.
(6) The fair value determination method of financial assets and financial liabilities
Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a
liability in an orderly transaction on the measurement date. Where there is an active market for financial
instruments, the Company adopts quotations in the active market to determine their fair values. Quoted price in
active market refers to the price easily obtained from exchanges, brokers, industry associations, pricing service
agencies, etc. on a regular basis, and represents the price of market transactions actually occurred in fair trading. If
there is no active market for financial instruments, the Company uses evaluation techniques to determine their fair
values. Evaluation techniques include reference to prices used in recent market transactions by parties familiar
with the situation and willing to trade, reference to current fair values of other financial instruments that are
substantially the same, discounting cash flow technique, option pricing model, etc. In valuation, the Company
adopts valuation techniques that are applicable under current circumstances and are supported by sufficient
available data and other information, selects input values that are consistent with the characteristics of assets or
liabilities considered by market participants in transactions related to assets or liabilities, and gives priority to the
use of relevant observable input values as much as possible. If the relevant observable input value cannot be
obtained or it is not impracticable to obtain it, the non-input value shall be used.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the Company's residual equity in assets
after deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity
instruments by the Company are treated as changes in equity, and transaction costs related to equity transactions
are deducted from equity. The Company does not recognize changes in the fair value of equity instruments.
Dividends (including "interest" generated by instruments classified as equity instruments) distributed by the
Company's equity instruments during their existence shall be treated as profit distribution.
The financial assets of the Company that need to confirm the impairment loss are financial assets measured
at amortized cost and debt instrument investment measured at fair value with changes included in other
comprehensive income, mainly including notes receivable, accounts receivable, other receivables, debt investment,
other debt investment, long-term receivables, etc. In addition, for some financial guarantee contracts, impairment
reserves and credit impairment losses are also accrued in accordance with the accounting policies described in this
part.
(1) Recognition method of impairment provision
On the basis of expected credit losses, the Company sets aside impairment reserves and recognizes credit
impairment losses for the above items according to the applicable expected credit loss measurement method
(general method or simplified method).
Credit loss refers to the difference between all contractual cash flows receivable according to the contract and
all cash flows expected to be collected by the Company discounted according to the original actual interest rate,
i.e. the present value of all cash shortages. Among them, for the financial assets that have been purchased or
incurred credit impairment, the Company discounts them according to the actual interest rate adjusted by credit.
The general method of measuring expected credit loss refers to the Company's assessment of whether the
credit risk of financial assets has increased significantly since the initial recognition on each balance sheet date. If
the credit risk has increased significantly since the initial recognition, the Company will measure the loss reserve
by an amount equivalent to the expected credit loss during the entire period. If the credit risk has not increased
significantly since the initial recognition, the Company will measure the loss reserve according to the amount
equivalent to the expected credit loss in the next 12 months. In assessing the expected credit loss, the Company
takes into account all reasonable and evidence-based information, including forward-looking information.
For financial instruments with low credit risk on the balance sheet date, the Company measures the loss
reserve based on the expected credit loss amount within the next 12 months or the entire duration according to
whether the credit risk has increased significantly since the initial recognition.
(2) Criteria for judging whether credit risk has increased significantly since initial recognition
If the default probability of a certain financial asset in the expected duration determined at the balance sheet
date is significantly higher than the default probability in the expected duration determined at the time of initial
recognition, it indicates that the credit risk of the financial asset is significantly increased. Except for special
circumstances, the Company uses the change of default risk in the next 12 months as a reasonable estimate of the
change of default risk in the entire duration to determine whether the credit risk has increased significantly since
the initial recognition.
Generally, if the overdue period is more than 90 days, the Company will consider that the credit risk of the
financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the
financial instrument has not increased significantly since the initial recognition.
The Company will consider the following factors when evaluating whether the credit risk has increased
significantly
of the debtor;
credit enhancement provided by the third party, which are expected to reduce the economic motivation of the
debtor's repayment according to the time limit stipulated in the contract or affect the probability of default;
debtor;
instruments, etc.
On the balance sheet date, if the Company judges that the financial instrument has only low credit risk, the
Company assumes that the credit risk of the financial instrument has not increased significantly since the initial
recognition. If the default risk of a financial instrument is low, the borrower's ability to perform its contractual
cash flow obligations in a short period of time is strong, and even if there are adverse changes in the economic
situation and operating environment for a long period of time, it may not necessarily reduce the borrower's ability
to perform its contractual cash obligations, then the financial instrument is considered to have low credit risk.
(3) Judgment criteria for financial assets with credit impairment:
When one or more events have an adverse impact on the expected future cash flow of a financial asset, the
financial asset becomes a financial asset with credit impairment. The evidence of credit impairment of financial
assets includes the following observable information:
economic or contractual considerations related to the debtor's financial difficulties;
debtor;
have occurred.
Credit impairment of financial assets may be caused by the combined action of multiple events, but may not
be caused by separately identifiable events.
(4) Portfolio approach to evaluate expected credit risk based on portfolio
The Company evaluates credit risks for financial assets with significantly different credit risks, such as:
Accounts receivable with related parties. Receivables in dispute with the other party or involving litigation or
arbitration. Receivables with obvious signs that the debtor is likely to be unable to perform the repayment
obligation.
In addition to the financial assets with individual credit risk assessment, the Company divides the financial
assets into different groups based on the common risk characteristics. The common credit risk characteristics
adopted by the Company include: Credit risk shall be assessed on the basis of the aging portfolio, the receivables
portfolio between the final controlling party and its subordinate units, the public maintenance fund and house
selling fund portfolio deposited in the housing provident fund management center, the deposit/margin portfolio,
and the petty cash ledger portfolio formed by the employee loan of the unit.
(5) Accounting treatment method for impairment of financial assets
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the
estimated credit losses are greater than the book amount of its current impairment reserve, the difference is
recognized as impairment loss. If it is less than the carrying amount of the current impairment reserve, the
difference is recognized as impairment gain.
(6) Methods for determining the credit loss of various financial assets
① Notes receivable
The Company measures the loss reserve for bills receivable according to the expected credit loss amount
equivalent to the entire duration. Based on the credit risk characteristics of bills receivable, they are divided into
different portfolios:
Item Basis for determining portfolio
Bank acceptance bills The acceptor is a bank with less credit risk
According to the acceptor's credit risk classification, it should be the same as the
Commercial acceptance bill
"receivable" portfolio classification.
As for the notes receivables’ classified as portfolio, the Company referred to the historical credit loss
experience, combined with current situation and forecast for the future economic condition, calculating the
expected credit loss. Through risk exposure at default and lifetime expected credit loss.
② Accounts receivable and other receivables
For receivables that do not contain significant financing components, the Company measures the loss reserve
according to the expected credit loss amount equivalent to the entire duration.
For receivables that contain significant financing components, the Company measures the loss reserve based
on whether the credit risk has increased significantly since the initial recognition, using the amount of expected
credit loss within the next 12 months or the entire duration.
According to whether the credit risk of other receivables has increased significantly since the initial
recognition, the Company measures impairment loss with an amount equivalent to the expected credit loss within
the next 12 months or the entire duration.
In addition to the accounts receivable and other receivables that individually assess credit risk, they are
divided into different portfolios based on their credit risk characteristics:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
As for the receivables classified as portfolio, the Company referred to the historical credit loss experience,
combined with current situation and forecast for the future economic condition, calculating the expected credit
loss. Through cross reference table between the aging of receivables and lifetime expected credit loss. The aging
of receivables is calculated on the date of recognition.
The portfolio of other receivable is recognized as follows:
Item Basis for determining portfolio
Portfolio 1 Credit portfolio
Portfolio 2 Deposit/margin portfolio
Portfolio 3 The portfolio of reserve fund ledger formed by the Company's staff loan
As for the other receivables classified as portfolio, the Company referred to the historical credit loss
experience, combined with current situation and forecast for the future economic condition, calculating the
expected credit loss. Through risk exposure at default and lifetime expected credit loss in the coming 12 months.
For the other receivables classified as aging, is calculated on the date of recognition.
(1) Classification of inventory
Inventories mainly include raw materials, work in progress, finished goods, in transit materials inventory
goods, reserve tanker storage commissioned processing, and manufacturing consignment, etc..
(2) Valuation method for obtaining and issuing inventory
Inventories are initially measured at cost. Inventory costs include purchase costs, processing costs and other
expenditures. The actual cost of inventories upon delivery is calculated using the weighted average method.
(3) Confirmation of net realizable value of inventories and method of accrual of falling price reserve
Net Realizable Value refers to the amount of estimated selling price of inventories minus the estimated cost
till completion, estimated expenses for selling activity and related taxes and fees in daily activities. When
determining the net realizable value of inventories, solid evidence obtained shall be the basis, and the purpose of
holding the inventories and the impact of events after the balance sheet date shall be considered.
On the balance sheet date, inventories shall be measured at lower of cost and net realizable value. When the
net realizable value is lower than the cost, the provision for inventory devaluation shall be accrued. The provision
for inventory devaluation shall be accrued based on the difference between the cost of a single inventory item and
its net realizable value. The provision for inventory devaluation of a large number of inventories with low unit
prices shall be based on the type of inventory; for inventories related to the product range produced and sold in
same region, having the same or similar end use or purpose, and difficult to be separated from other items for
measurement, their provision for inventory devaluation can be combined and accrued.
After the provision for inventory devaluation is accrued, if the factors cause the previous written-down
inventory value have disappeared, and the situation results in the fact that the net realizable value of the
inventories higher than the book value, the amount of the provision for inventory devaluation that has been
accrued shall be reversed and included in the current period profit or loss.
(4) The Company adopts perpetual inventory system as its inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables are amortized by one-off amortization method when they are received; packaging
materials are amortized by one-off amortization method when they are received.
(1) Recognition standards and accounting method treatment for Held-for-sale assets and disposal group
A non-current asset or disposal group is classified as held for sale when its carrying amount will be recovered
principally through a sale transaction rather than through continuous use. The following conditions need to be
simultaneously met to be classified as held for sale: a non-current asset or to-be-disposed portfolio can be sold
immediately under the current conditions based on the practice of selling such asset or to-be-disposed portfolio in
similar transactions; the Company has already decided on the sale plan and obtained confirmed purchase
commitment; the sale is scheduled to be completed within one year. Among them, a Disposal Portfolio refers to a
group of assets that will be disposed of as a whole through sale or other approaches in a transaction, and the
liabilities directly associated with these assets transferred along with the assets in transaction. If the portfolio of
assets or group of portfolios of assets is allocated goodwill acquired in business merger in accordance with
Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the Disposal Portfolio shall include the
goodwill allocated to it.
In the event that the book value of a non-current asset or to-be-disposed portfolio that has been designated as
held-for-sale category is higher than the net amount of fair value less sales expenses when the non-current asset or
to-be-disposed portfolio is initially measured or measured on the balance sheet date, the book value shall be to the
net amount of fair value minus sales expenses, and the written-down amount shall be recognized as asset
impairment loss and included in current period profit or loss. The provision for impairment loss of the
held-for-sale asset shall be accrued. For a Disposal Portfolio, the confirmed impairment loss shall deduct the book
value of the goodwill in the Disposal Portfolio, then deduct the book value of the non-current assets determined
by the measurement on a pro-rata basis in accordance with the applicable Accounting Standards for Business
Enterprises No. 42 held-for-sale non-current assets, Disposal Portfolio and Termination of Operations (hereinafter
referred to as the “Guide for Held-For-Sale”). In the event of an increase of the book value of the held-for-sale
Disposal Portfolio minus sales expenses on the subsequent the balance sheet date, the amount previously written
down shall be recovered and be reversed within the mount of the asset impairment loss recognized in the
non-current assets measured by the measurement “Guide for Held-For-Sale” after being classified as held for sale
asset, the reversal amount shall be included in the current period profit or loss, and the book value of all
non-current assets (except for goodwill) determined by the measurement on a pro-rata basis in accordance with
the applicable “Guide for Held-For-Sale” shall be increased on a pro-rata basis. The book value of the goodwill
that has been deducted and the impairment loss of the assets recognized before the classification of the
held-for-sale non-current assets in accordance with the applicable “Guide for Held-For-Sale” shall not be
reversed.
In terms of the held-for-sale non-current assets or non-current assets in Disposal Portfolio, there is no accrual
or amortization for depreciation, and the interest from and other expenses from the liabilities in held-for-sale
Disposal Portfolio shall still be recognized.
When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category,
non-current asset or Disposal Portfolio will no longer be classified as Held-For-Sale category by the Company or
the non-current asset will be removed from the Held-For-Sale Disposal Portfolio, and be measured based on one
of the following two values, whichever is lower: (1) The book value before being classified as held-for-sale
category adjusted based on the depreciation, amortization or impairment that should have be confirmed if it is not
classified as held-for-sale category; (2) recoverable amount.
(2) Standards for Determining and Methods for the Presentation of Discontinued Operations.
A component of an entity that either has been disposed of or is classified as held for sale and:
a) represents a separate major line of business or geographical area of operations,
b) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of
operations or
c) is a subsidiary acquired exclusively with a view to resale.
Net profit from continuing operation and Net profit from discontinued Operation are added under the Item
Net Profit of the Profit and Loss Statement, a single amount in the statement of comprehensive income comprising
the total of:i) the post-tax profit or loss of continuing operation and discontinued operations. Profit and Loss from
the discontinued operation shall listed as Discontinued Operation Profit and Loss, which comprises of the entire
reporting period, not only recognized as the reporting period after the termination of the operation.
The long-term equity investment refers to in this part refers to the long-term equity investment that the
Company has control, joint control or significant influence on the invested entity. The long-term equity investment
of the Company that does not have control, joint control or significant impact on the investee shall be accounted
as a financial asset measured at fair value with its changes included into the current profits and losses. Among
them, if it is non-transactional, the Company may choose to designate it as a financial asset measured at fair value
and its changes are included in the accounting of other comprehensive income at the time of initial recognition.
For details of its accounting policies, please refer to Note Ⅲ, 11 “Financial Instruments".
Joint control refers to the control that the Company shares with other party/parties for an arrangement in
accordance with relevant agreements, and relevant activities of the arrangement can only be decided based on the
consensus of all parties sharing the control rights before making a decision. Significant Influence refers to power
of the Company to participate in the decision-making of the financial and operating policies of the investee, but
the Company cannot control or jointly control the development of these policies with other parties.
(1) Determination of investment cost
For a long-term equity investment obtained from a combination of businesses under the same control, the
apportioned share of the book value in the final controller's consolidated financial statements on the combination
date in accordance with the shareholders' equity shall be the initial investment cost of the long-term equity
investment. The capital reserve shall be adjusted subject to the difference between the initial investment cost of
the long-term equity investment and the cash paid, the non-cash assets transferred, and the book value of the debts
assumed; if the capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the
equity securities are issued as merger consideration, the apportioned share of the book value in the final
controller's consolidated financial statements on the combination date in accordance with the shareholders' equity
shall be the initial investment cost of the long-term equity investment, and the total par value of the issued shares
is taken as the share capital. The capital reserve shall be adjusted subject to the difference between the initial
investment cost of the long-term equity investment and the total par value of the shares issued; if the capital
reserve is insufficient for offsetting, the retained earnings shall be adjusted. Where the equity of combined parties
under the same control is obtained through multiple transactions and a business combination under the same
control is formed finally, it shall be treated differentially based on whether it is a “package deal”: if it belongs to a
“package deal”, all transactions will be treated as a transaction that obtains control. If it is not a “package deal”,
the apportioned share of the book value in the final controller's consolidated financial statements on the
combination date in accordance with the shareholders' equity shall be the initial investment cost of the long-term
equity investment. The capital reserve shall be adjusted subject to the difference between the initial investment
cost of the long-term equity investment and the sum of the book value of long-term equity investment before
combination date and the book value of the new consideration for the new share on the combination date. If the
capital reserve is insufficient for offsetting, the retained earnings shall be adjusted. The equity investments that are
held prior to the combination date and are recognized with equity recognized or as available-for-sale financial
asset as other comprehensive income will not be given accounting treatment for the moment.
For a long-term equity investment obtained from a combination of businesses not under the same control, the
initial investment cost of the long-term equity investment shall be based on the combination cost on the purchase
date. The combination cost includes the assets paid by purchaser, the liabilities incurred or assumed, and the sum
of the fair value of issued equity securities. Where the equity of combined parties not under the same control is
obtained through multiple transactions and a business combination under the same control is formed finally, it
shall be treated differentially based on whether it is a “package deal”: if it belongs to a “package deal”, all
transactions will be treated as a transaction that obtains control. If it is not a “package deal”, the initial investment
cost of the long-term equity investment calculated by the cost method shall be calculated based on the sum of the
book value of the equity investment in the original holder and the new investment cost. The original shareholding
that measured using equity method, the relevant other comprehensive income does temporarily not conduct
accounting treatment.
Intermediary expenses such as for auditing, legal services, assessment and other related expenses incurred by
a combining party or a purchaser for business combination shall be recognized in current period profit or loss
when incurred.
The equity investments other than formed by business combination shall be initially measured at cost. The
cost will be determined based on the following amount according to different methods of the acquisition of
long-term equity investment: the purchase price in cash actually paid by the Company; the fair value of the equity
securities issued by the Company, the value agreed in relevant investment contract or agreement; the fair value or
original book value of the assets exchanged in non-monetary asset exchange transaction; the fair value of the
long-term equity investment itself. Any expenses, taxes and other necessary expenses directly related to the
acquisition of long-term equity investments shall also be included in the cost of investment. The cost of long-term
equity investment for the additional investment that can exert significant influence on investee or implement joint
control but does not constitute control shall be the sum of the fair value of the originally held equity investment
recognized in accordance with the Accounting Standards for Business Enterprises No.. 22 – Recognition and
Measurement of Financial Instruments and the cost for new investment.
(2) Follow-up measurement and confirmation methods for profit and loss
The Equity Method shall be used to account for long-term equity investments that have joint control over the
invested entity (except for those constituting joint operators) or have significant impact on the invested entity. In
addition, the company's financial statements use the Cost Method to account for long-term equity investments,
which can control the long-term equity investment of the investee.
① Long-term equity investment based on Cost Method
When accounting with Cost Method, long-term equity investment is priced at the initial investment cost, and
the cost of the long-term equity investment is adjusted by adding or recovering the investment. Except for the
actual payment at the time of obtaining investment or the cash dividends or profits included in the consideration
but not yet issued, the current investment income shall be recognized according to the cash dividends or profits
declared by the investee.
② Long-term equity investment accounted for by Equity Method
When accounting with Equity Method, if the initial investment cost of a long-term equity investment is
greater than the fair value share of the identifiable net assets of the investee when investing, and the initial
investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less than
the fair value share of the identifiable net assets of the investee when investing, the difference shall be included in
the current profit and loss, and the cost of the long-term equity investment shall be adjusted
When accounting with Equity Method, the investment income and other comprehensive income are
recognized separately according to the shares of the net profit or loss and other comprehensive income that should
be enjoyed or shared, and the book value of the long-term equity investment should be adjusted at the same time.
The book value of long-term equity investment is reduced accordingly by calculating the share that should be
enjoyed according to the profit or cash dividend declared by the investee. The book value of long-term equity
investment shall be adjusted and included in the capital reserve for other changes in the owner's rights and
interests of the invested entity other than the net profit and loss, other comprehensive income and profit
distribution. When confirming the share of the net profit and loss of the investee, the net profit of the investee
shall be adjusted and confirmed on the basis of the fair value of the identifiable assets of the investee at the time of
investment. If the accounting policies and periods adopted by the invested entity are inconsistent with the
Company, the financial statements of the invested entity shall be adjusted in accordance with the accounting
policies and periods of the Company, and the investment income and other comprehensive income shall be
confirmed accordingly. For the transactions between the Company and the associates and joint ventures, the assets
invested or sold do not constitute a business, and the unrealized gains and losses from internal transactions are
offset against the portion of the Company that is attributable to the proportion of the shares, on this basis.
investment profit and loss should be confirmed. However, the unrealized internal transaction losses incurred by
the Company and the investee are not included in the impairment losses of the transferred assets. Where the assets
invested by the Company into a joint venture or an associates constitute a business, if the investor obtains
long-term equity investment but does not control, the fair value of the invested business shall be deemed as the
initial investment cost of the new long-term equity investment, and the difference between the initial investment
cost and the book value of the invested business is fully recognized in the current profits and losses. If the assets
sold by the Company to a joint venture or an associate that constitute a business, the difference between the
consideration value obtained and the book value of the business shall be fully recognized in the profits and losses
of the current period.
When confirming the net loss that incurred by the investee should be shared, the book value of the long-term
equity investment and other long-term equity that substantially constitutes the net investment of the investee are
reduced to zero. In addition, if the Company has an obligation to bear additional losses to the investee, the
estimated liabilities shall be recognized according to the estimated obligations and included in the current
investment losses. If the investee achieves net profit in the following period, the Company shall 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 the implementation of the new accounting standards, if there is a debit balance of equity investments
related to the investment, the current profits and losses shall be accounted for by the straight-line amortization of
the original remaining period.
(3) Acquisition of Minority Equity
In the preparation of the consolidated financial statements, if the difference between the long-term equity
investment added by purchasing minority shares and the net assets share that should be continuously calculated by
the subsidiary company from the purchase date (or the consolidation date) is calculated according to the
proportion of newly added shares, the retained earnings shall be adjusted; and if the capital reserve is insufficient
to offset, the retained earnings shall be adjusted.
(4) Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially of disposes of the long-term equity
investment of the subsidiary without losing control, the difference of the corresponding net assets in the subsidiary
between the disposal price and the disposal of the long-term equity investment is included in the shareholders'
equity. it shall be treated in accordance with the relevant accounting policies described in “Notes on the
preparation of consolidated financial statements” in Note Ⅲ.7.
For the disposal of long-term equity investment in other cases, the difference between the book value of the
disposed equity and the actual acquisition price shall be included in the current profits and losses.
If the long-term equity investment is accounted for by equity method, the remaining equity after disposal is
still accounted for by equity method, when disposing, the other comprehensive income which were originally
included in shareholder's rights and interests shall be accounted for on the same basis as the assets or liabilities
directly disposed of by the investee. The owner's equity recognized as a result of changes in the owner's equity of
the investee other than net profit or loss, other comprehensive income and profit distribution, it should be carried
forward to the current profit and loss
For the long-term equity investment accounted by Cost Method, the remaining equity is still accounted by
Cost Method after disposal, other comprehensive income that recognized by equity method accounting or
financial instrument recognition and measurement criteria accounting before obtaining control over the investee
shall be accounted for on the same basis as the assets or liabilities directly disposed of by the investee, and shall
be settled to the current profit and loss in proportion. Changes of the net assets of investee in the owner's equity
other than net profit or loss, other comprehensive income and profit distribution 's that recognized by equity
method shall be settled to the current profit and loss in proportion.
Where the Company loses control over the investee due to disposal of part of its equity investment, when
preparing individual financial statements, if the remaining equity after disposal can exercise joint control or exert
significant influence on the investee, it shall be accounted for by equity method instead, and the remaining equity
shall be adjusted by accounting by equity method when it is deemed to be acquired. If the remaining equity after
disposal cannot be jointly controlled or exerts significant influence on the investee, it shall be accounted for
according to the relevant provisions of the financial instrument recognition and measurement criteria, and the
difference between the fair value and the book value on the date of loss of control. It is included in the current
profit and loss. Before the Company obtains control over the investee, other comprehensive income recognized by
equity method accounting or financial instrument recognition and measurement criteria is used to directly dispose
of the relevant assets with the investee, accounting treatment based on the same basis as the investee directly
disposes of related assets or liabilities when the control of the investee is lost, Accounting is treated on the same
basis as the liabilities. Changes in the owner's equity other than net profit or loss, other comprehensive income and
profit distribution of the investee's net assets recognized by the equity method are carried forward to the current
profit or loss when the control of the investee is lost. Among them, the remaining equity after disposal is
accounted for using the equity method. Where the remaining equity after disposal is accounted for by equity
method, other comprehensive income and other owner's equity should be settled by proportion. If the remaining
equity is accounted for using financial instrument recognition and measurement standard, all of other
comprehensive income and other shareholder’s equity should be settled.
If the Company loses its joint control or significant influence on the investee due to the disposal of part of the
equity investment, the remaining equity after disposal shall be accounted for according to the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the date of
loss of joint control or significant influence is recognized in the current profit or loss. The other comprehensive
income recognized in the original equity investment by the equity method is accounted for on the same basis as
the investee's direct disposal of related assets or liabilities when the equity method is terminated, Owner's equity
recognized as a result of changes in other owners' equity other than net profit or loss, other comprehensive income
and profit distribution of the investee should be transferred to current investment income when terminating the
equity method
The Company disposes of the equity investment in the subsidiaries step by step through multiple transactions
until the loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are
treated as a transaction dealing with the equity investment of the subsidiary and losing control. The difference
between the book value of each long-term equity investment corresponding to the disposal price and the disposal
of the equity before loss of control is first recognized as other comprehensive income, and when the control is lost,
it is transferred to the current profit and loss of loss of control.
Investment Property refers to property held for the purpose of earning rent or capital appreciation, or both,
including land use rights that have been leased, land use rights that are held and prepared for transfer after
appreciation, and buildings that have been rented. Investment property is initially measured at cost. The expenses
related to investment property, if the economic benefits related to this asset are highly probable to flow into the
company and the cost can be measured reliably, then the expense will account for as the cost of investment
property. Other expenses are accounted for in profit and loss when incurred.
The Company adopts the cost model to conduct subsequent measurement of investment property and
depreciation or amortization according to the policy consistent with the building or land use rights.
For details of the impairment test method and impairment provision method of property, please refer to Note
Ⅲ. 23 “Long-Term Asset Impairment”.
When the self-use property or inventory is converted into investment property or investment property is
converted into self-use property, the book value before conversion is used as the recorded value after conversion.
When the use of investment property is changed to self-use, the investment property is converted into fixed
assets or intangible assets from the date of change. When the use of self-use property changes to earn rent or
capital appreciation, the fixed assets or intangible assets are converted into investment property from the date of
change. In the case of investment property measured by the cost model when the conversion occurs, the book
value before conversion is used as the entry value after conversion; if it is converted into investment property
measured by the fair value model, the fair value of the conversion date is used as the entry value after conversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected to
obtain economic benefits from its disposal, the confirmation of the investment real estate shall be terminated.
Disposal income from the sale, transfer, retirement or damage of investment properties is charged to the current
profit and loss after deducting its book value and related taxes and fees.
(1) Confirmation conditions for fixed assets
Fixed Assets refer to tangible assets held for the purpose of producing goods, providing labor services,
renting or operating management, and having a service life of more than one fiscal year. Fixed assets are
recognized only when the economic benefits associated with them are likely to flow into the Company and their
costs can be reliably measured. Fixed assets are initially measured at cost and taking into account the impact of
projected abandonment costs.
(2) Depreciation methods for various types of fixed assets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following
the scheduled availability. The depreciation period, estimated net residual value rate and annual depreciation rate
of each category of fixed assets are as follows:
Depreciation period Net salvage rate Annual depreciation rate
Category Depreciation Method
(Year) (%) (%)
Buildings straight-line depreciation 8-50 5 1.90— 11.88
Machinery equipment straight-line depreciation 5-28 4、5 3.39—19.20
Transport facility straight-line depreciation 5-10 4、5 9.50—19.20
Electronic equipment straight-line depreciation 3-10 4、5 9.50—32.00
Office equipment straight-line depreciation 3-10 4、5 9.50—32.00
Other equipment straight-line depreciation 5-28 4、5 3.39—19.20
The estimated net residual value refers to the expected state after the estimated useful life of the fixed assets
has expired and is at the end of its useful life. The amount currently obtained by the Company from the disposal of
the assets after deducting the estimated disposal expenses.
(3) Impairment test method and Impairment provision method for fixed assets
For details of Impairment test method and impairment provision method for fixed assets, please refer to Note
Ⅲ. 23 “Long-Term Asset Impairment”.
(4) Recognition basis and valuation method of fixed assets acquired by finance lease
A finance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an
asset, and its ownership may or may not be transferred. If it is reasonable to determine the ownership of the leased
asset at the expiration of the lease term, the depreciation shall be calculated within the useful life of the leased
asset; If it is not reasonable to determine the ownership of the leased asset at the expiration of the lease term,
depreciation shall be calculated within a relatively short period of the lease term and the service life of the leased
assets.
(5) Others
The subsequent expenses related to fixed assets, if the economic benefits related to the fixed assets are likely
to flow in and their costs can be reliably measured, are included in the cost of fixed assets and the book value of
the replaced part should be terminated. The subsequent expenditures other than mentioned as above are
recognized in profit or loss in the period in which they are incurred.
The fixed asset is derecognized when the fixed asset is in disposal or is not expected to generate economic
benefits by using or disposal. The difference between the disposal income from the sale, transfer, retirement or
damage of the fixed assets less the carrying amount and related taxes is recognized in profit or loss for the current
period.
The Company reviews the useful life, estimated net residual value and depreciation method of fixed assets at
least at the end of the year, and changes as an accounting estimate if changes occur.
The cost of construction in progress is determined based on actual project expenditure, including various
project expenditures incurred during the construction period, capitalized borrowing costs before the project
reaches the expected usable status, and other related expenses. Construction in progress is carried forward to fixed
assets when it is ready for its intended use.
For details of the impairment test method and impairment provision method for construction in progress,
please refer to Note Ⅲ. 23 “Long-Term Asset Impairment”.
Borrowing costs include interest on borrowings, amortization of discounts or premiums, ancillary expenses,
and exchange differences arising from foreign currency borrowings. Borrowing costs directly attributable to the
acquisition, construction or production of assets eligible for capitalization, capitalization is begun when asset
expenditures have occurred, borrowing costs have occurred, and the acquisition, construction or production
activities necessary to bring the assets to the intended usable or saleable state have begun. And capitalization is
stopped when the assets under construction or production that meet the capitalization conditions are ready for their
intended use or saleable status. The remaining borrowing costs are recognized as an expense in the period in
which they are incurred.
The interest expenses actually incurred in the current period of special borrowings shall be capitalized after
subtracting the interest income from the unused borrowing funds deposited into the bank or the investment income
obtained from the temporary investment. For the general borrowings, according to the accumulated asset
expenditures exceed the special borrowings. The capitalization amount is determined by multiplying the weighted
average of which accumulated asset expenditure exceeds the asset expenditure of the special borrowing portion by
the capitalization rate of the general borrowings used. The capitalization rate is determined based on the weighted
average interest rate of general borrowings.
During the capitalization period, the exchange differences of foreign currency special borrowings are all
capitalized; the exchange differences of foreign currency general borrowings are included in the current profit and
loss.
Assets eligible for capitalization refer to assets such as fixed assets, investment property and inventories that
require a substantial period of acquisition, construction or production activities to achieve the intended use or sale
status.
If the assets eligible for capitalization are interrupted abnormally during the acquisition, construction or
production process and the interruption period lasts for more than 3 months, the capitalization of the borrowing
costs shall be suspended until the acquisition, construction or production of the assets resumes.
Right-of-use assets of the Group mainly consist of buildings, power generation and transmission equipment,
plant, machinery and equipment, motor vehicles, furniture and fixtures and others.
(1) Initial accountings
At the commencement date of the lease, the Group recognizes the right to use the leased assets during the
lease term as a right-of-use asset, including: the initial measurement amount of the lease liability; the amount of
lease payment paid on or before the beginning of the lease term, the amount of lease incentive already enjoyed
shall be deducted if there is a lease incentive; initial direct expenses incurred by the lessee; the costs that the lessee
is expected to incur in order to dismantle and remove the leased asset, restore the leased asset to the site or restore
the leased asset to the state agreed upon in the lease terms. The right-of-use assets are depreciated on a
straight-line basis subsequently by the Group. If the Group is reasonably certain that the ownership of the
underlying asset will be transferred to the Group at the end of the lease term, the Group depreciates the asset from
the commencement date to the end of the useful life of the asset. Otherwise, the Group depreciates the assets from
the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term.
The company recognizes and measures the above costs under Item 4 in accordance with the
Accounting Standards for Enterprises No.13–Contingencies.
(2) Subsequent accounting
The Company accursed the right-of-use assets according to the Accounting Standards for Enterprises
NO.4-Fixed Assets. Commencement from the date of lease, the Company shall accrue the right-of-use assets.
Generally, the right-of-use assets are accrued at the start of the lease date, the expenses of depreciation accrued
shall include into relevant asset cost or profit and loss in the current period based on the purpose of right-of-use
assets. While recognizing the method of right-of-use assets, the Company shall make decisions on the economic
benefit of forecast consumption mode related to the right-of-use assets, accrues the deprecation by straight-line
method. When the Company recognize the depreciation period of right-of-use assets, maturity of lease period can
be determined in a reasonable and well-grounded manner on the acquisition of the right-of-use assets, accursed
the deprecation in its remaining service life. If the right-of-use lease assets could not be determined reasonably
while the service life is mature, depreciation is applied with the short period of time between the lease term and
the remaining useful life of the lease asset.
If there are impaired right-of-use assets, the Company shall accrue the subsequent deprecation based on the
book value of right-of-use assets after deducting the loss of impairment.
The Company determined not to recognized the right-of-use assets and lease liabilities on the short-term
lease (lease term not exceeding 12 months), and recognizes the relevant lease payment during the respective lease
term in the current profit and loss or cost of assets relevant in straight line method. Impairment test method and
the provision method for diminution in value of right-of-use assets are detailed in Note III 23 “Long-Term Asset
Impairment”.
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the
Company.
Intangible assets are initially measured at cost. Expenditure related to intangible assets is included in the cost
of intangible assets if the relevant economic benefits are likely to flow to the Company and its costs can be
measured reliably. However, the intangible assets acquired through business combination not involving enterprises
under common control should be measured at fair value separately as intangible assets when their fair values can
be reliably measured.
The acquired land use rights are usually accounted for as intangible assets. The related land use rights and
building construction costs of self-developed and constructed buildings are accounted for as intangible assets and
fixed assets, respectively. In the case of purchased houses and buildings, the relevant price is distributed between
the land use rights and the buildings. If it is difficult to allocate them reasonably, all of them are treated as fixed
assets.
(1) Basis for determining the service life, the estimate thereof, and amortization methods and the procedures
for reviewing their service life
When recognizing the service life of the intangible assets, being sourced from any contractual right or other
statutory rights, its service life shall not exceed the life of contractual rights or other statutory rights. As for the
intangible assets not specified either under the contract or legal regulations, the company combined various
situations, such as employing relevant professional persons to undergo the justification or make comparison with
the situation of the same industry and the historical experience of the Company, determining the future economic
benefit service life which is brought by the intangible assets. If the efforts are made, but could not recognized
reasonably that the intangible asset shall bring the economic benefit service life for the Company, then shall treat
this as uncertain service life of the intangible asset.
Since the intangible assets with limited useful life are available for use, the original value minus the
estimated net residual value and the accumulated amount of impairment reserve shall be amortized by the
straight-line method during their expected service life. Intangible assets with uncertain service life shall not be
amortized.
Among them, the useful life and amortization method of intellectual property are as follows:
Item Amortization period (year) Amortization method
Trademark 20 Straight-line method
Software 3-10 Straight-line method
Land-use rights 50 Straight-line method
At the end of the period, the useful life and amortization methods of intangible assets with limited useful life
are reviewed, and if any change occurs, it is treated as a change of accounting estimate. In addition, the useful life
of intangible assets with uncertain service life is also reviewed. If there is evidence that the period for which the
intangible assets bring economic benefits to the enterprise is foreseeable, the useful life of intangible assets is
estimated and amortized according to the amortization policy of intangible assets with limited useful life
(2) Research and development expenditure
The company's expenditure for internal research and development project is divided into research phase
expenditure and development phase expenditure.
Expenditures for the research phase shall be recognized in profit or loss when incurred.
Expenditures for the development phase that meet the following conditions shall be recognized as intangible
assets, and expenditures in the development stage that fail to meet the following conditions are included in current
profit and loss:
a. It is technically feasible to complete the intangible asset to enable it to be used or sold.
b. The intent to complete the intangible asset and use or sell it;
c. The way in which intangible assets generate economic benefits, including the ability to prove that the
products produced from the intangible assets having a market or the intangible assets having a market, and the
intangible assets will be used internally, which can prove its usefulness;
d. sufficient technical, financial resources and other resources for supporting the development of the
intangible assets and the ability to use or sell the intangible assets.
e. Expenditure attributable to the development phase of the intangible asset can be reliably measured.
If it is impossible to distinguish the expenditures between research phase and development phase, all research
and development expenditures incurred will be included in the current profit and loss.
(3) Impairment test method and Impairment provision method for intangible assets
For details of the impairment test method and impairment provision method, please refer to Note Ⅲ. 23
“Long-Term Asset Impairment”.
For fixed assets, construction in progress, intangible assets with limited useful life, investment property
measured by cost model, and non-current non-financial assets such as long-term equity investments in subsidiaries,
joint ventures and associates, the Company determines whether there is any indication of impairment on the
balance sheet date. If there is any indication of impairment, the recoverable amount is estimated and the
impairment test is carried out. Goodwill, intangible assets with uncertain service life and intangible assets that not
yet ready for use are tested for impairment annually, regardless of whether there is any indication of impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book
value, the impairment provision is made based on the difference and is included in the impairment loss. The
recoverable amount is the higher of the fair value of the asset less the disposal expense and the present value of
the estimated future cash flow of the asset. The fair value of assets is determined according to the sale agreement
price in a fair transaction. If there is no sales agreement but there is an active market for the asset, the fair value is
determined according to the buyer's bid for the asset; if there is neither sales agreement nor active market for
assets, the fair value of assets shall be estimated based on the best information available. Asset disposal expenses
include legal fee, taxes, transportation expenses and direct expenses incurred to make assets saleable. The present
value of the estimated future cash flow of an asset is determined by the appropriate discount rate discounting and
the estimated future cash flow generated by the asset during its continuous use and final disposal. The asset
impairment provision is calculated and confirmed based on individual assets. If it is difficult to estimate the
recoverable amount of an individual asset, the recoverable amount of the asset is determined by the asset group
which the asset belongs to. An asset group is the smallest portfolio of assets that can generate cash inflows
independently.
The book value of the goodwill listed separately in the financial statements is amortized into asset groups or
portfolios that are expected to benefit from the synergies of business combinations when impairment tests are
conducted. The test results show that the recoverable amount of the asset group or portfolio containing the
assessed goodwill is lower than its book value, the corresponding impairment losses should be confirmed. The
amount of impairment loss is first deducted from the book value of the goodwill amortized to the asset group or
portfolio, and then deducted proportionally from the book value of other assets according to the proportion of the
book value of assets other than goodwill in the asset group or portfolio.
Once the above asset impairment loss is confirmed, it will not be reversed to the part where the value is
restored in the future period.
The long-term deferred expenses are all expenses that have occurred but shall be borne by the reporting
period and subsequent periods with amortization period of more than one year. The company's long-term deferred
expenses mainly include lease of land use right and renovation costs of factory building. Long-term deferred
expenses are amortized on a straight-line basis over the estimated benefit period. If the long-term amortized
expense item cannot benefit the company in subsequent accounting periods, the amortized value of the item that
has not yet been amortized will be transferred to the current profit or loss.
The Company's employee compensation mainly includes short-term employee remuneration,
Post-employment Benefits, Termination Benefits and benefits for other long-term employee. Among them:
Short-term employees’ remuneration mainly includes wages, bonuses, allowances and subsidies, employee
welfare fees, medical insurance premiums, maternity insurance premiums, work injury insurance premiums,
housing fund, labor union funds, employee education funds, and non-monetary benefits. The Company recognizes
the actual short-term employee's remuneration as a liability in the accounting period in which employees provide
services to the Company and recognizes them in profit or loss or related asset costs. Non-monetary benefits are
measured at fair value.
Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities.
The Post-employment Benefit Scheme includes a Defined Contribution Plan and a Defined Benefit Plan. If a
Defined Contribution Plan is adopted, the corresponding amount of the deposit shall be included in the relevant
asset cost or current profit and loss as incurred. (1) The Defined Contribution Plan is recognized as a liability
based on a fixed fee paid to an independent fund and is included in the current profit and loss or related asset costs;
(2) The Defined Benefit Plan is accounted for using the expected cumulative benefits unit method Specifically, the
Company will convert the welfare obligation arising from the Defined Benefit Plan into the final value of the
departure time according to the formula determined by the expected cumulative benefits unit method; then it is
attributed to the employee's in-service period and is included in the current profit and loss or related asset cost.
If the labor relationship with the employee is terminated before the employee's labor contract expires, or if
the employee is encouraged to accept the reduction voluntarily, when cannot withdrawing unilaterally the
dismissal benefits provided by the termination of the labor relationship plan or the reduction proposal, and when
confirming the costs associated with the restructuring involving the payment of the dismissal benefits, whichever
is earlier, the Company will recognize the employee compensation liabilities arising from the dismissal benefits,
and included in the current profit and loss. However, if the dismissal benefits are not expected to be fully paid
within 12 months after the end of annual reporting period, they shall be treated in accordance with other long-term
employee compensations.
The internal retirement plan for employees shall be treated in the same way as the above-mentioned dismissal
benefits. The company will pay the internal retired staff the salary and the social insurance premiums from the
employee's lay-off to normal retirement, and will include in the current profit and loss (dismissal benefits) when
the conditions of the estimated liabilities are met.
If the other long-term employee benefits provided by the Company to the employees are in line with the
Defined Contribution Plan, they shall be accounted for Defined Contribution Plan, and otherwise accounted for
the Defined Benefit Plan.
When the obligations related to the contingencies meet the following conditions, they are recognized as
contingent liabilities: (1) The obligation is the present obligation assumed by the Company; (2) The performance
of this obligation is likely to result in the outflow of economic benefits; (3) The amount of the obligation can be
reliably measured.
On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money
related to contingencies, the estimated liabilities are measured in accordance with the best estimate of the
expenditure required to perform the relevant current obligations.
If all or part of the expenses required to discharge the estimated liabilities are expected to be compensated by
the third party, the compensation amount will be separately recognized as an asset when it is basically determined
to be received, and the confirmed compensation amount does not exceed the book value of the estimated
liabilities.
(1) Loss Contract
A loss contract is a contract in which the cost of fulfilling a contractual obligation will inevitably occur more
than the expected economic benefit. If the contract to be executed becomes a loss contract, and the obligation
arising from the loss contract satisfies the conditions for the recognition of the above-mentioned estimated
liabilities, the portion of the contract's estimated loss that exceeds the recognized impairment loss (if any) of the
contracted asset is recognized as the estimated liability.
(2) Restructuring Obligations
For restructuring plans that are detailed, formal, and have been announced to the public, the amount of the
estimated liabilities is determined based on the direct expenses related to the reorganization, subject to the
recognition conditions of the aforementioned estimated liabilities. For the restructuring obligation to the part of
business sold, the obligation related to the reorganization is confirmed only when the company promises to sell
part of the business (that is, when the binding sale agreement is signed).
(1) Accounting Treatment of Share-based Payments
A share-based payment is a transaction that grants an equity instrument or assumes a liability determined
based on an equity instrument in order to obtain services from employees or other parties. Share-based Payments
include equity-settled share payment and cash-settled share payment.
① Equity-settled Share Payment
The equity-settled share payment in exchange for the services from employee is measured at the fair value of
the granting of employees' equity instruments at the grant date. If the fair value is vested in the completion of the
waiting period of service or the fulfillment of the required performance conditions, during the waiting period, the
amount of the fair value is calculated by the straight-line method into the relevant costs or expenses based on the
best estimate of the number of vesting equity instruments; Or If the vesting right is granted immediately after the
grant, the calculation of the amount of the fair value is included in the relevant cost or expense on the grant date,
and the capital reserve is increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate based on the
latest information on the changes in the number of employees with vesting rights and corrects the number of
equity instruments that are expected to be vested. The impact of the above estimates shall be included in the
current related costs or expenses, and the capital reserve is adjusted accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of
other parties' services can be reliably measured, the fair value of other services shall be measured at the fair value
on the date of acquisition; If the fair value of the other party's services cannot be measured reliably, the fair value
shall be measured at the fair value of the equity instrument at the date the service is acquired, and is included in
the relevant cost or expense, which increases the shareholders' equity accordingly.
② Cash-settled Share Payment
The cash-settled share payment is measured at the fair value of the liabilities determined by the Company
based on shares or other equity instruments. If the vesting right is available immediately after the grant, the
relevant costs or expenses shall be included on the date of grant, and the liabilities shall be increased accordingly;
if vesting right is available after the service is completed within the waiting period or met the required
performance conditions, based on the best estimate of the vesting rights on each balance sheet date of the waiting
period, according to the fair value of the liabilities assumed by the company, the services obtained in the current
period are included in the cost or expense, and the liabilities are increased accordingly.
The fair value of the liabilities shall be re-measured on each balance sheet date and settlement date before the
settlement of the relevant liabilities, and the changes shall be recorded in the profit and loss of the current period.
(2) Relevant Accounting Treatment of share-based payment plan’s modification and termination
When the Company modifies the share-based payment plan, if the modification increases the fair value of the
equity instruments granted, the increase in the fair value of the equity instruments is recognized accordingly. The
increase in the fair value of equity instruments refers to the difference between the fair value of the equity
instruments before and after the modification. If the modification reduces the total fair value of the share-based
payment or adopts other methods that are not conducive to the employee, the service obtained shall continue to be
accounted for, as if the change has never occurred, unless the Company cancels some or all of equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will cancel the granted
equity instrument as an accelerated exercise, and the amount to be recognized in the remaining waiting period will
be immediately included in the current profit and loss, and the capital reserve will be recognized. If the employee
or other party can choose to meet the non-vesting conditions but fails to meet the waiting period, the Company
will treat it as a cancellation of the equity instrument.
(3) Accounting Treatment of Share Payment Transactions between the Company and its Shareholders or
Actual Controllers
In respect of the share-based payment transaction between the company and the shareholders or actual
controllers of the company, If one of the settlement enterprise and the service receiving enterprise is in the
company and the other is outside the company, it shall be accounted for in the consolidated financial statements of
the company according to the following provisions:
① If the settlement enterprise settles with its own equity instrument, the share-based payment transaction
shall be treated as equity-settled share-based payment; otherwise, it shall be treated as a cash-settled share-based
payment.
If the settlement enterprise is an investor of a serviced enterprise, it shall be recognized as the long-term
equity investment of the serviced enterprise according to the fair value of the equity instrument at the grant date or
the fair value of the liability to be assumed, and the capital reserve (other capital reserve) or liabilities shall be
recognized.
② If the serviced enterprise has no settlement obligation or grants its own employees the equity instruments,
the share payment transaction shall be treated as equity-settled share payment; if the serviced enterprise has
settlement obligation and grants its employees other than its own equity instruments, the share payment
transaction shall be treated as a cash-settled share payment.
For the share-based payment incurred between companies within the group, if the serviced enterprise and
settlement enterprise are not the same, then the payment should be recognized and measured in their individual
financial statements, they should be accounted for using the above principles.
The term “revenue” refers to the gross inflow of economic benefits arising in the course of the ordinary
activities of an enterprise, which may increase of the shareholder's equities and is irrelevant to the capital of the
shareholder. When the company signs a contract, it evaluates the contract, identifies the individual performance
obligations contained in the contract, and determines whether the individual performance obligations are
performed within a certain period of time or at a certain point of time. When the company has fulfilled all the
performance obligations in the contract, the revenue shall be recognized respectively according to the transaction
price apportioned to the performance obligations. A contract with a customer generally explicitly states the goods
or services that an entity promises to transfer to a customer. The transaction price is the amount of consideration to
which an entity expects to be entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties.
Generally, the company recognizes the revenue from the sales of goods based on the transaction price
apportioned to the single performance obligation when the customer obtains the control right of the relevant goods
on the basis of comprehensively considering the following factors: the company has the right to receive payment
in respect of the goods or services currently, that is, the customer has the obligation to pay for the goods currently;
the company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
ownership of the goods; The Company has transferred the physical goods of the commodity to the Customer or
the Customer has obtained the qualification of physical goods right of the commodity. The consideration obtained
by the Company in respect of the transfer of the commodity is likely to be recovered; Other indications that the
customer has taken control of the commodity.
For the performance obligations performed in a certain period of time, such as the services provided, the
company adopts the input method to determine the appropriate performance progress, and recognizes the revenue
according to the performance progress in that period of time. On the balance sheet date, the company shall
recognize the current income according to the total transaction price of the contract multiplied by the progress of
performance minus the accumulated recognized income. If one of the following conditions is satisfied, it is
regarded as the performance obligation performed during a certain period of time: the Customer obtains and
consumes the economic benefits arising from the performance of the Company at the same time of the
performance of the Company; Customers can control the goods under construction during the performance of the
contract; The products produced by the Company during the performance of the Contract are of irreplaceable use,
and the Company shall be entitled to receive payment for the accumulated part of the completed performance so
far during the whole term of the Contract. Otherwise, the Company recognizes revenue at the point when the
Customer acquires control of the relevant goods or services.
Where the contract contains two or more performance obligations, an entity shall, on the commencement
date of the contract, allocate the transaction price to each performance obligation identified in the contract on a
relative standalone selling price basis. Except when an entity has observable evidence that the entire discount
relates to only one or more, but not all, performance obligations in a contract, the entity shall allocate a discount
proportionately to all performance obligations in the contract. Stand-alone selling price refers to the price of the
goods or services sold by the Company to the customer separately. If the stand-alone selling price cannot be
directly observed, the Company shall take into account all relevant information reasonably available and estimate
the stand-alone selling price by observable input values to the maximum extent.
As for the sales with quality guarantee, except for it guarantees the product on sale of service meets the
designated standards to the customer, providing a single separate service, this quality guaranteed composes the
single performance obligation. Otherwise, the Company shall treat the accounting method on quality guarantee
obligations in accordance with the Enterprise Accounting Standards No,13- Contingencies.
If the contract comprised of significant financing elements, the Company shall recognize the amount of
payables in cash to determine the trading price based on the assumption that the customer obtains the products or
service control rights. The difference between the price stipulated in the contract or agreement and its contract
consideration shall be amortized within the period of the contract or agreement. through the real interest method.
As a practical expedient, an entity need not adjust the promised amount of consideration for the effects of a
significant financing component if the entity expects, at contract inception, that the period between when the
entity transfers a promised good or service to the customer and when the customer pays for that good or service
will be one year or less.
The Company justifies the trading identity is the major responsible person or on behalf based on whether it
has the control right to the product or the service before transferring the products or service to the customer. As
the major responsible person of the Company, shall recognizes the revenue based on the total consideration of the
amount received or receivable. Otherwise, as the agent of the Company, shall recognizes the revenue based on the
expected right of obtaining the commission or service charge, which is calculated as the total consideration on the
amount received or receivable deducting the net amount payable to other related parties or recognizes on the
amount of commission or proportion etc.
The Company received the amount of products sales or service in advance, shall recognizes it as liabilities in
the first, then accounted as revenue upon fulfilling relevant performance obligations.
The Company has transferred the products or service to its clients and has rights to obtain the considerations
(and this rights is obliged to other elements of passing time) listed as the contractual assets. Contractual assets are
accrued the devaluation provision based on the expected credit loss. The Company has the unconditional rights
（only depends on the passing of time） to its customer for obtaining the considerations, listed as item receivables.
The consideration of amount received or receivable, which is obtained to its customer, shall transfer product or
service obligation to them, listed as contractual liabilities.
The detailed accounting policies related to the major activities of obtaining the revenue of the Company
(1) Sales processing
The production and processing sales comprise mainly of sales of oils and oilseeds, food etc. The Company
recognized the sales revenue when the amounts received or identification obtained upon sales, which has been
submitted and signed by the customer.
(2) Trading Revenue
If the Company obtained the product control rights from the third party and transferred to the client, assumed
the significant obligations under the transaction of transferring the products to the client. i.e. inventory risk, and
has rights to determine the price of the products oneself. The identity of the Company under the transaction is the
major responsible person, recognizing the trading revenue based on the expected rights for obtaining the total
consideration stipulated on the contract. The Company made commitment to arrange others to provide specific
products, but has no control rights on this before providing the specific products to clients. The identity of the
Company under the transaction is agent, recognizing the revenue on the commission obtained or service amount
for arranging others to provide the specific products to clients.
Contract cost comprises contract performance cost and contract acquisition cost.
The cost incurred by the company for the performance of the contract, which does not fall within the scope of
other accounting standards for business enterprises other than the income standard and meets the following
conditions at the same time, is recognized as an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs explicitly borne by the customer and other costs incurred
solely as a result of the contract;
(2) The cost increases the company's resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The assets are presented in inventory or other non-current assets according to whether the amortization
period has exceeded one normal operating cycle at the time of its initial recognition.
If the incremental cost incurred by the company to obtain the contract is expected to be recovered, it shall be
recognized as an asset as the contract acquisition cost. Incremental cost refers to the cost that will not occur if the
company does not obtain the contract.
The assets related to the contract cost mentioned above shall be amortized at the time of performance of the
obligation or according to the performance progress on the same basis as the income recognition of the
commodity or service related to the asset and shall be recorded into the current profit and loss.
If the book value of the above assets related to the contract cost is higher than the difference between the
residual consideration expected to be obtained by the company due to the transfer of the goods related to the
assets and the estimated cost to be incurred for the transfer of the relevant goods, the excess part shall be set aside
as an impairment provision and recognized as an impairment loss of the asset.
Government grant refers to the company's acquisition of monetary and non-monetary assets from the
government free of charge, excluding the capital invested by the government as an investor and enjoying the
corresponding owner's rights and interests. Government grants include assets-related grants and revenue-related
grants. The company defines the government grant obtained for the purchase and construction of long-term assets
or for the formation of long-term assets in other ways as the government grant related to assets; the remaining
government grant is defined as the government grant related to income. If the object of grants is not specified in
government documents, the grants shall be divided into income-related government grants and assets-related
government grants in the following ways: (1) If the government document clarifies the specific project for which
the grant is targeted, the proportion of the expenditure amount of the assets to be formed and the amount of the
expenditures included in the expenses in the budget of the specific project are divided, and the proportion of grant
division needs to be reviewed on each balance sheet day and changed if necessary. (2) In government documents,
if the purpose is expressed only in general terms and no specific project is specified, the grant shall be regarded as
a government grant related to the income. Where a government grant is a monetary asset, it shall be 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 the fair value cannot be obtained reliably, they shall be measured at the nominal
amount. Government grants measured in nominal amounts shall be recognized directly in current profits and
losses.
The Company usually confirms and measures the government grant according to the amount when it is
actually received. However, if there is conclusive evidence at the end of the period that the relevant conditions
stipulated in the financial support policy can be met and the financial support funds are expected to be received, it
shall be measured according to the amount receivable. Government grants measured in accordance with the
amount receivable shall meet the following conditions at the same time: (1) The amount of the subvention
receivable has been confirmed by the authorized government departments, or can be reasonably calculated
according to the relevant provisions of the formally issued financial fund management measures, and there is no
significant uncertainty in the amount expected; (2) According to the "Regulations on the Openness of Government
Information" that the local financial department officially released and in accordance with the provisions of the
"Regulations on the Openness of Government Information," the financial support project and its financial fund
management measures should be inclusive (any eligible enterprise can apply for them), rather than being
specifically tailored to specific companies; (3) The relevant grant approval has clearly promised the payment
period, and the allocation of the payment is guaranteed by the corresponding budget, so it can be reasonably
ensure that it can be received within the prescribed time limit; (4) Other relevant conditions (if any) to be met in
accordance with the specific circumstances of the Company and the grants.
Government grants related to assets are recognized as deferred earnings and are divided into current profits
and losses in a reasonable and systematic way during the service life of the assets concerned. The government
grants related to revenue, which are used to compensate for the related cost or loss in the subsequent period, shall
be recognized as deferred income, and shall be recognized in profit or loss in the period in which the related costs
or losses are recognized; if it is used to compensate the related costs or losses that has occurred, it shall be directly
recognized in the current profit and loss.
It includes government grants related to both assets and income, and different parts are separately classified
for accounting treatment; if it is difficult to distinguish, the whole is classified as government grants related to
income.
Government grants related to the daily activities of the Company shall be included in other income or cost
deductions according to the nature of the economic business; government subsidies unrelated to daily activities
shall be included in the non-operating revenues and expenses.
When the recognized government grants need to be returned, if there are relevant deferred earnings balances,
the book balance of related deferred earnings shall be deducted, and the excess part shall be included in the
current profits and losses or the book value of assets shall be adjusted, otherwise, the book value of assets shall be
directly included in the current profits and losses.
The company will obtain preferential policy loans discount in accordance with the finance will be allocated
to the loan bank discount funds and the finance will be directly allocated to the company discount funds in two
cases:
(1) If the finance department allocates the discount interest funds to the lending bank, and the lending bank
provides the loan to the Company at the policy preferential interest rate, the Company chooses to conduct
accounting treatment according to the following methods: the loan amount actually received shall be taken as the
entry value of the loan, and the relevant borrowing costs shall be calculated in accordance with the loan principal
and the policy preferential interest rate.
(2) If the finance allocates the discount funds directly to the company, the company will offset the
corresponding discount against the relevant borrowing costs.
(1) Current Income Tax
On the balance sheet date, the current income tax liabilities (or assets) formed in the current and previous
periods are measured by the expected amount of income tax payable (or returned) in accordance with the
provisions of the Tax Law. The amount of taxable income on which current income tax expenses are calculated is
based on the corresponding adjustment of pre-tax accounting profits in the reporting period in accordance with the
relevant tax laws.
(2) Deferred Tax Assets and Deferred Tax Liabilities
The difference between the book value of certain assets and liabilities and their tax basis, and the temporary
difference between the book value of items that are not recognized as assets and liabilities but which can be
determined as their tax basis according to the tax law, are confirmed by the balance sheet liability method.
Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition
of an asset or liability arising from a transaction that is neither a business combination nor an accounting profit or
taxable income (or deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition,
for taxable temporary differences related to investments in subsidiaries, associates and joint ventures, if the
Company is able to control the turnaround time of temporary differences, and the temporary difference is unlikely
to be reversed in the foreseeable future, the related deferred income tax liabilities shall not be recognized. Except
for the above exceptions, the Company recognizes all other deferred income tax liabilities arising from taxable
temporary differences.
Taxable temporary differences which related to the initial recognition of an asset or liability arising from a
transaction that is neither a business combination nor an accounting profit or taxable income (or deductible loss),
relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences
related to investments in subsidiaries, associates and joint ventures, if the temporary difference is unlikely to be
reversed in the foreseeable future, or the amount of taxable income used to offset the temporary difference is
unlikely to be obtained in the future, the deferred income tax assets concerned shall not be recognized. Except for
the above exceptions, the Company recognizes other deferred income tax assets that can offset temporary
differences, subject to the amount of taxable income that is likely to be obtained to offset temporary differences.
For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding
deferred income tax assets are recognized to the extent that it is probable that the future taxable income shall be
used to offset the deductible losses and tax credits.
On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates in the period in which the related assets are recovered or the related liabilities
are recovered in accordance with the tax laws.
On the balance sheet date, the book value of deferred income tax assets is reviewed. and the book value of
deferred income tax assets is written down if it is likely that sufficient taxable income will not be available to
offset the benefits of deferred income tax assets in the future. When it is possible to obtain sufficient taxable
income, the amount written down shall be reversed.
(3) Income tax expenses
Income tax expenses include current income tax and deferred income tax.
In addition to recognizing that the current income tax and deferred income tax related to other transactions
and matters directly included in shareholder's rights and interests shall be recognized in other comprehensive
income or shareholder's rights and interests, and the book value of adjusted goodwill from deferred income tax
resulting from the merger of enterprises, the other current income tax and deferred income tax expenses or gains
shall be recognized in profit or loss for the current period.
(4) Offset of Income Tax
When the company has legal rights to settle on a net basis, and intends to settle on a net basis or acquire
assets and pay off liabilities at the same time, the company's current income tax assets and current income tax
liabilities shall be presented on a net basis after the offset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis,
and deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same
tax administration department on the same tax payer or to different tax payers, but in the future, during each
important period of deferred income tax assets and liabilities being reversed, the taxpayer involved intends to
settle the current income tax assets and liabilities on a net basis, or acquire assets and pay off liabilities
simultaneously, the deferred the income tax assets and deferred income tax liabilities of the Company shall be
presented on a net basis after offset.
On the commencement date of a contract, an enterprise shall assess whether the contract is a lease or includes
a lease. Where a party to a contract transfers the right to control the use of one or more identified assets for a
certain period of time in return for consideration, the contract is a lease or includes a lease. To determine whether
the right to control the use of identified assets within a certain period of time under a contract has been transferred,
an enterprise shall assess whether a client in the contract has the right to use almost all of the economic benefits
arising from the use of the identified assets during the period of use, and has the right to dominate the use of
identified assets during this period of use.
Where a contract concurrently contains multiple separate leases, the lessee and lessor shall split the contract
and conduct accounting treatment respectively for all separate leases.
Where the following conditions are concurrently met, use of the rights of identified assets shall constitute a
separate lease in a contract:
①A lessee may earn profits from separate use of the assets or joint use with other resources readily available.
②There is no high dependence or high correlation between the assets and other assets in the contract.
Where a contract concurrently includes both leased and non-leased parts, the Company, as the lessee and
lessor, shall split the leased and non-leased parts to conduct accounting treatment.
(1) The Company records operating lease business as a lessee.
The main types of leased assets of the company include houses and buildings, transportation equipment and
land use rights etc.
At the beginning of the lease period, the Company recognizes its right to use the leased assets during the
lease period as a right-of-use asset, recognition of the present value of outstanding lease payments as lease
liabilities, except short-term and low-value asset leases. In calculating the present value of the lease payment, the
Company uses the interest rate included in the lease as the discount rate. Where the interest rate included in the
lease cannot be determined, the Company uses the incremental borrowing rate as the discount rate
The lease period is the irrevocable period during which the Company is entitled to use the lease assets.
Where the Company has the option to renew the lease, that is, the right to choose to renew the lease of the asset,
and reasonably determines that the option will be exercised. The lease period also includes the period covered by
the lease renewal option. The Company has the option to terminate the lease, that is, the right to terminate the
lease of the asset, provided that it is reasonably determined that the option will not be exercised, the lease period
includes the period covered by the option to terminate the lease. Where a material event or change within the
control of the Company occurs and affects whether the Company reasonably determines that the appropriate
option will be exercised... The Company will determine to exercise the option of renewing the lease, re-evaluation
of the option to purchase or not to exercise the option to terminate the lease on its reasonability.
The Company adopts the straight-line method to depreciate the right to use assets. Where it is reasonable to
determine that the leased assets are to be owned upon expiry of the lease term, the Company shall calculate the
leased assets within the remaining useful life of the leased assets. If the ownership of the leased assets upon expiry
of the lease term is unable to be reasonably determined, the Company shall accrue depreciation within a short
period of time between the lease term and the remaining useful life of the leased assets. The interest expenses of
the lease liabilities for each period of the lease term at the discount rate is recognized by the Company and shall
be included into the current profit or loss. Variable lease payments that are not included in the leasehold liability
measure are included in the current profit and loss at the time of actual incurrence.
After commencement of the lease period, when there is a change in the amount of substantial fixed payments
and the amount due to which the guarantee balance is expected, changes in indices or ratios used to determine
rental payments, where the assessment of purchase options, the renewal option or termination option or actual
exercise of the option changes, the Company re-measures the lease liabilities according to the present value of the
change in lease payments, and adjust the book value of the right to use assets accordingly. If the book value of the
right to use assets has been reduced to zero, but the lease liability still needs to be further reduced, the Company
will record the remaining amount in the current profit or loss.
Lease modification refers to the modification of the lease scope, lease consideration and lease term beyond
the terms of the original contract, including increasing or terminating the right to use one or more leased assets,
extending or shortening the lease term specified in the contract, etc.
If the lease changes and the following conditions are met, the Company will account for the lease change as a
separate lease:
① The lease change expands the scope of the lease by adding the right to use one or more leased assets;
② The increased consideration is equivalent to the separate price for the extended portion of the lease,
adjusted for the circumstances of the contract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the
Company redetermines the lease term and discounts the changed lease payment at the revised discount rate to
remeasure the lease liability. In calculating the present value of the lease payment after the change, the Company
uses the inherent interest rate of the lease during the remaining lease term as the discount rate; If the inherent
interest rate of the lease for the remaining lease term cannot be determined, the Company's incremental borrowing
rate on the effective date of the lease change shall be used as the discount rate.
The Company accounts for the impact of the above adjustment of lease liabilities in the following cases:
① If the lease change results in the reduction of the lease scope or the shortening of the lease term, the
Company shall reduce the book value of the right of use assets to reflect the partial or complete termination of the
lease. The Company recognises gains or losses related to partial or complete termination of the lease in profit or
loss for the current period.
② For other lease changes, the company shall adjust the book value of the right to use assets accordingly
The Company will consider a lease for a period not exceeding 12 months and excluding a purchase option as
a short-term lease on the commencement date of the lease term; A lease with a lower value when a single leased
asset is a new asset is identified as a low-value asset lease. Where the Company subleases or intends to sublease
leased assets, the original lease is not deemed to be a low-value asset lease. The relevant asset cost or current
profit or loss is recognised on a straight-line basis during each period of the lease term, and the contingent rent is
recognised in current profit or loss when actually incurred
(2) The company records operating lease business as a lessor
The lease commencement date essentially transfers almost all the risks and rewards associated with the
ownership of the leased asset to finance leases, and all other leases are operating leases
The rental income of operating lease shall be recognized as current profit and loss according to the
straight-line method during each period of the lease period. The larger initial direct expenses are capitalized when
occurring, and the profits and losses of the current period shall be recorded in stages on the same basis as the
recognized rental income during the whole lease period; the smaller initial direct expenses shall be recorded in the
profits and losses of the current period when occurring. Contingent rentals shall be included in current profits and
losses when actually occurring.
At the beginning date of the lease term, the Company recognizes the financial lease payment receivable for
the financial lease and terminates the recognition of the financial lease assets. When the Company makes the
initial measurement of the financial lease receivable, the net lease investment is taken as the recorded value of the
financial lease receivable. The net lease investment is the sum of the unsecured balance and the present value of
the lease proceeds not yet received at the commencement date of the lease term, discounted at the intrinsic interest
rate of the lease. The Company calculates and recognizes interest income for each period of the lease term based
on the inherent interest rate of the lease.
The Company presents financial lease receivables as long-term receivables, and financial lease receivables
received within one year (including one year) from the balance sheet date are presented as non-current assets
maturing within one year.
(1) Hedge accounting
In order to avoid some risks, the Company hedges some financial instruments as hedging instruments. For
the hedges meeting the specified conditions, the Company adopts the hedge accounting method for treatment. The
hedging of the Company is fair value hedging.
At the beginning of hedging, the Company formally designates hedging instruments and hedged items, and
prepares written documents on hedging relationship and risk management strategy and risk management
objectives of the Company engaged in hedging. In addition, the Company will continuously evaluate the
effectiveness of hedging at the beginning and after the hedging.
(2) Fair value hedging
If a hedging instrument is designated as a fair value hedge and meets the conditions, the profits or losses
arising therefrom shall be included into the current profits and losses. If the hedging instrument hedges the
non-trading equity instrument investment (or its components) that is measured at fair value and whose changes are
included in other comprehensive income, the gains and losses generated by the hedging instrument are included in
other comprehensive income. The profit or loss of the hedged item due to the hedged risk exposure shall be
included into the current profits and losses, and the book value of the hedged item shall be adjusted at the same
time. If the hedged item is measured at fair value, the gain or loss of the hedged item due to the hedged risk does
not need to adjust the book value of the hedged item, and the relevant gains and losses are included into the
current profits and losses or other comprehensive income.
When the Company cancels the designation of the hedging relationship, the hedging instrument has expired
or been sold, the contract has been terminated or exercised, or no longer meets the conditions for the application
of hedge accounting, the application of hedge accounting shall be terminated.
The Company did not have any significant changes in accounting policies and accounting estimates during
the reporting period.
IV Taxes
Types Tax Basis Tax Rate
Taxable value-added amount (the tax payable is calculated as the balance 1%、3%、5%、
VAT of taxable sales revenue multiplied by the applicable tax rate, less the 6%、9%、10%、
current period's input tax that is allowed to be deducted). 13%
Urban Maintenance
It is calculated and levied according to the actual VAT paid 7%、5%
Construction Tax
Educational fee
It is calculated and levied according to the actual VAT paid 3%
surcharge
Local Education
It is calculated and levied according to the actual VAT paid 2%
Add-on
Types Tax Basis Tax Rate
Corporate income 25%、20%、17%、
According to the taxable income
tax 15%
Property tax deducted according to the original value of the property; Rental income is 12%、1.2%
used as the tax basis
If there are taxpayers with different enterprise income tax rates, the disclosure shall be explained:
Tax Payers Income Tax Rate
Hangzhou Lin'an Chunmanyuan Agricultural Development Co., Ltd. 20%
Jingliang (Singapore) International Trade Co., Ltd. 17%
Beijing Guchuan Bread Food Co., Ltd. 15%
Beijing Guchuan Bread & Food Co., Ltd., a third-level subsidiary of the Company, is a high-tech enterprise,
and the certificate number of the high-tech enterprise is GR202411003833, which is valid until October 29, 2027.
Beijing Guchuan Bread & Food Co., Ltd. enjoys the preferential tax policy of paying enterprise income tax at a
rate of 15% in accordance with the relevant provisions of the Law of the People's Republic of China on the
Administration of Tax Collection and Collection and the Detailed Rules for the Implementation of the Law of the
People's Republic of China on the Administration of Tax Collection. According to Announcement No. 43 of 2023
of the Ministry of Finance and the State Administration of Taxation on the VAT Plus Deduction Policy for
Advanced Manufacturing Enterprises, from January 1, 2023 to December 31, 2027, advanced manufacturing
enterprises are allowed to deduct the VAT payable by adding 5% of the deductible input tax in the current period.
The company's third-level subsidiary, Jingliang (Singapore) International Trade Co., Ltd., is taxed according
to the territorial principle. Based on Singapore's tax exemption policy, the company is eligible for the following
tax exemptions:
between SGD 10,001 and SGD 200,000, a 95% exemption is granted. The portion exceeding SGD 200,000 is not
eligible for exemption. The company will pay income tax at a 17% rate based on the taxable income after
applying the exemptions.
will receive a rebate equivalent to 50% of the corporate tax payable, with a total rebate amount of SGD 40,000.
Zhejiang Little Prince Food Co., Ltd., a third-level subsidiary of the Company, Hangzhou Lin'an Little Angel
Food Co., Ltd., Linqing Little Prince Food Co., Ltd. and Liaoning Little Prince Food Co., Ltd., a third-level
subsidiary of the Company, in accordance with the relevant provisions of the Notice of the Ministry of Finance
and the State Administration of Taxation on Issues Concerning the Preferential Policies of Enterprise Income Tax
Related to the Employment of Disabled Persons (CS (2009) No. 70). An additional deduction of 100% of the
wages paid to the disabled employee can be made in the calculation of taxable income.
Hangzhou Lin'an Little Angel Food Co., Ltd., a fourth-level subsidiary of the Company, is a welfare
enterprise, and has been enjoying the preferential policy of VAT refund in the Notice on Promoting the
Employment of Disabled Persons (CS [2016] No. 52) since May 2016.
The company's fourth-level subsidiary, Liaoning Little Prince Food Co., Ltd., is subject to the regulations in
Article 13 of the State Administration of Taxation's "Notice on the Issuance of Supplementary Provisions on
Several Specific Issues of Land Use Tax" (Guo Shui Di Zi [1989] No. 140). According to this regulation, "public
lands such as municipal streets, squares, and greenbelts" are exempt from land use tax. When calculating the land
use tax, the area used for green space and roads can be subtracted from the total land area to determine the taxable
area.
The company's fourth-level subsidiary, Hangzhou Lin'an Little Angel Food Co., Ltd., benefits from a tax
reduction according to the Zhejiang Provincial Local Taxation Bureau's Announcement (2014 No. 8). For
companies where the average number of disabled employees in a tax year exceeds 25% (including 25%) of the
total number of on-duty employees, and the actual number of disabled employees exceeds 10 (including 10), the
company may, upon approval from the local tax department, enjoy a reduction in urban land use tax. The
reduction is RMB 2,000 per person per year based on the annual average number of disabled employees, with the
maximum reduction limited to the total amount of urban land use tax payable by the company for that year.
The company's fourth-level subsidiaries, Linqing Little Prince Food Co., Ltd. and Hangzhou Lin'an Chun
Manyuan Agricultural Development Co., Ltd., are subject to the policies issued by the Ministry of Finance and the
State Taxation Administration in the Announcement on Further Supporting the Development of Small and Micro
Enterprises and Individual Industrial and Commercial Households (Cai Shui [2023] No. 12). The company meets
the criteria for recognition as a small or micro enterprise and will apply the following preferential policies for the
levied at half the normal rate: resource tax (excluding water resource tax), urban maintenance and construction tax,
property tax, urban land use tax, stamp duty (excluding securities transaction stamp duty), cultivated land
occupation tax, education fee surcharge, and local education surcharge."
The company's third-level subsidiary, Beijing Tianweikang Oil Adjustment Center Co., Ltd., is subject to the
policies outlined in the document "Announcement on Continuing the Implementation of Certain National
Commodity Reserves Tax Preferential Policies" (Announcement No. 48, 2023) issued by the Ministry of Finance
and the State Taxation Administration. According to this document, commodity reserve management companies
and their directly affiliated warehouses are exempt from stamp duty on their business account books. They are
also exempt from stamp duty on purchase and sale contracts signed during the course of their commodity reserve
business. However, the stamp duty owed by other parties to the contract will be collected according to the law.
Additionally, commodity reserve management companies and their directly affiliated warehouses are exempt from
property tax and urban land use tax on real estate and land used for their commodity reserve business.
V Notes on Items in Consolidated Financial Statements
Note: The ‘Opening Balance’ of the period refers to December 31, 2025 and the ‘Closing Balance’ of the
period refers to June 30, 2026. The prior period refers to January 1, 2025 to June 30, 2026, and the current period
refers to January 1, 2026 to June 30, 2026. The currency unit is RMB Yuan.
Items Closing Balance Opening Balance
Cash on hand 8,617.41 10,241.76
Bank Deposits 474,496,252.42 453,246,396.16
Other Currency Funds 189,218,706.94 65,441,208.59
Deposit in the Financial Company 1,026,407,608.14 1,303,024,670.57
Total 1,690,131,184.91 1,821,722,517.08
Among them: the total amount of money deposited abroad 14,563,772.23 17,207,901.63
Items Closing Balance Opening Balance
Fair value changes of hedging instrument 27,829,740.00
Total 27,829,740.00
(1) Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 year 79,402,786.41 97,759,940.74
More than 5 years 328,259.50 328,259.50
Total 80,534,397.54 99,388,130.93
(2) Classification disclosure based on bad debt provision method
Closing Balance
Book Balance Bad Debt Provision
Type(s)
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Provision for bad debts
calculated on an individual 328,259.50 0.40 328,259.50 100.00
basis
Combination based on
credit risk characteristics
Total 80,534,397.54 —— 1,045,757.22 —— 79,488,640.32
(Continued)
Opening Balance
Book Balance Bad Debt Provision
Type(s)
Expected Book Value
Amount Ratio(%) Amount credit loss
rate (%)
Provision for bad debts
calculated on an individual 449,259.50 0.45 449,259.50 100.00
basis
Combination based on
credit risk characteristics
Total 99,388,130.93 —— 1,171,757.22 —— 98,216,373.71
A. Separate provision for bad debts
Opening Balance Closing Balance
Name Book Bad Debt Closing Bad Debt Provision Provision
Aging
Balance Provision Balance Provision Ratio(%) Reason
Fujian Jingxin More Short of funds,
Industrial Group 151,844.00 151,844.00 151,844.00 151,844.00 100.00 than 5 unable to make
Co., Ltd years repayment
Beijing Guotai
Pingan Tianzhu More
expected
Commercial 1,809.60 1,809.60 1,809.60 1,809.60 100.00 than 5
unrecoverable
Development Co., years
Ltd.
Beijing Rongfa
More
Lida Grain and expected
Oil Trade Co., unrecoverable
years
Ltd.
Beijing Guotai
More
Pingan expected
Department Store unrecoverable
years
Co., Ltd
Beijing Shunyi More
expected
Longhua 600.00 600.00 600.00 600.00 100.00 than 5
unrecoverable
Shopping Mall years
Chengde Jinli Within
Food Co., Ltd. 1 year
Total 449,259.50 449,259.50 328,259.50 328,259.50 —— —— ——
B. Portfolio provision for bad debts
Portfolio provision items are as follows:
Closing Balance
Name
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Credit Risk Portfolio 80,206,138.04 717,497.72 0.89
Closing Balance
Name
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Total 80,206,138.04 717,497.72 0.89
(Continued)
Opening Balance
Name
Accounts Receivable Bad Debt Provision Provision Ratio(%)
Credit Risk Portfolio 98,938,871.43 722,497.72 0.73
Total 98,938,871.43 722,497.72 0.73
(3) Details of bad debt provision
The amount changed for the period
Opening
Items Withdrawal or Charge-off or Other Closing Balance
Balance Provision
reversal write-off changes
Bad debt provision on
individual basis
Credit risk profile portfolio 722,497.72 5,000.00 717,497.72
Total 1,171,757.22 126,000.00 1,045,757.22
(4) The top five situations of the ending balance of accounts receivable and contract assets classified by the
debtor party
Closing Proportion of Closing
Closing balance Closing Balance of
balance of Closing Balance of balance of
Name of Entity of Accounts Receivables and
Contract Receivables and Bad Debt
receivable Contract Assets
Assets Contract Assets（%） Provision
Hebei Luanping
Huadu Food Co., 16,264,501.42 16,264,501.42 20.20
Ltd.
Beijing Grain Group
Co., Ltd.
Zhejiang Lvqin
Supply Chain
Management Co.,
Ltd.
Feed Branch of
Beijing Sanyuan
Seed Industry
Technology Co., Ltd.
CP Food (Hengshui)
Co., Ltd.
Total 42,606,374.87 42,606,374.87 52.92
(1) Advanced Payments are presented by age
Closing Balance Opening Balance
Aging
Amount Ratio(%) Amount Ratio(%)
Within 1 year 21,035,346.22 99.86 574,317,912.78 99.98
More than 3 years
Total 21,065,556.22 100.00 574,410,843.60 100.00
(2) Advanced payments of the Top 5 Closing Balances by prepaid objects
Ratio of the total
Closing Bad Debt
Debtor Name Closing Balance of
Balance Provision
prepayments (%)
Jiaxing Wire & Cable Co., Ltd. 3,906,140.42 18.54
Zhuhai Binhe Industrial Co., Ltd. 3,361,310.00 15.96
Beijing Yangu Grain and Oil Purchase and Sales Co., Ltd. 2,542,535.24 12.07
Zhongding Huasheng (Beijing) Construction Engineering Co.,
Ltd.
COFCO EXCELJOY(Tianjin) Co., Ltd. 1,627,534.14 7.73
Total 13,534,386.97 64.25
Item(s) Closing Balance Opening Balance
Other Receivables 245,178,434.01 173,257,419.17
Total 245,178,434.01 173,257,419.17
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year 291,383,059.48 220,208,199.83
More than 5 years 458,999.99 401,499.99
Total 294,172,448.75 222,251,433.91
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Deposit and guaranteed deposit 223,551,367.02 130,596,795.79
Intercourse funds of units 68,491,416.27 58,906,353.63
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Employee receivables 790,688.49 729,283.59
Tax refund receivables 1,268,513.70 1,196,283.46
Insurance claim payments 30,654,986.50
Others 70,463.27 167,730.94
Total 294,172,448.75 222,251,433.91
C. Details of bad debt provision
Opening Balance
Book Balance Bad Debt Provision
Type(s)
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Bad debt provisions are
accrued based on an 48,980,344.30 16.65 48,980,344.30 100.00
individual basis
Bad debt provisions are
accrued based on the
combination of credit risks
characteristics
Total 294,172,448.75 —— 48,994,014.74 —— 245,178,434.01
(Continued)
Opening Balance
Book Balance Bad Debt Provision
Type(s)
Expected Book Value
Amount Ratio(%) Amount credit loss
rate(%)
Bad debt provisions are accrued
based on an individual basis
Bad debt provisions are accrued
based on the combination of credit 173,271,089.61 77.96 13,670.44 0.01 173,257,419.17
risks characteristics
Total 222,251,433.91 —— 48,994,014.74 —— 173,257,419.17
D. Other receivables for which bad debt provisions are accrued based on an individual basis
Opening Balance Closing Balance
Name of Debtors Bad Debt Expected
Bad Debt Reason for
Book Balance Book Balance Provision credit loss Aging
Provision Provision
rate(%)
MARS FARMER Within Expected to be
LIMITED 1 year uncollectible
Ke You Shi
(Shanghai)
Management 10,000.00 10,000.00 10,000.00 10,000.00 100.00
years uncollectible
Consulting Co.,
Ltd.
Opening Balance Closing Balance
Name of Debtors Bad Debt Expected
Bad Debt Reason for
Book Balance Book Balance Provision credit loss Aging
Provision Provision
rate(%)
Total 48,980,344.30 48,980,344.30 48,980,344.30 48,980,344.30 —— —— ——
E. Bad debt provisions based on combinations
Closing Balance
Type(s) Bad Debt Proportion of
Other receivables
Provision accrual (%)
Credit risk portfolio 12,491,958.63 13,670.44 0.07
Deposit and guarantee portfolio 232,565,145.82
Receivables and balances of reserved funds formed
by employee loans of this unit
Total 245,192,104.45 13,670.44 0.01
(Continued)
Opening Balance
Type(s) Bad Debt Proportion of
Other receivables
Provision accrual (%)
Credit risk portfolio 42,637,733.45 13,670.44 0.03
Deposit and guarantee portfolio 130,530,795.79
Receivables and balances of reserved funds formed
by employee loans of this unit
Total 173,271,089.61 13,670.44 0.01
F. Provisions for bad debts in accordance with the general model for expected credit losses
The first stage The second stage The third stage
Expected credit loss
Expected credit loss
throughout the entire
Bad debt provision Expected credit loss throughout the Total
duration
over the next 12 entire duration (no
(incorporating
months credit impairment
already occurred
occurred)
credit impairment)
Opening Balance 48,970,344.30 23,670.44 48,994,014.74
Opening balance in the current period —— —— —— ——
-- Transferred to the second stage
-- Transferred to the third stage
-- Reversed from the second stage
-- Reversed from the first stage
Current period accrual
Current period reversal
Current period charge-off
Bad debt provision The first stage The second stage The third stage Total
Current period write-off
Other changes
Closing Balance 48,970,344.30 23,670.44 48,994,014.74
G. Bad debt provisions
The amount changed for the period
Types Opening Balance Withdrawal Charge-off Other Closing Balance
Provision
or reversal or write-off changes
Bad debt provision
on individual basis
Credit risk profile
portfolio
Total 48,994,014.74 48,994,014.74
H. Other receivables according to Top five of balance at end of period collected by debtors
Proportion in overall Closing
Balance at End
Name of Debtors Nature of Funds Aging Closing Balance of Balance of bad
of Period
other receivables (%) debt reserves
Haitong Futures
Futures Margin 48,990,304.40 Within 1 year 16.65
Co., Ltd
MARS FARMER
Account Current 48,970,344.30 Within 1 year 16.65 48,970,344.30
LIMITED
Hongyuan
Futures Margin 42,062,873.20 Within 1 year 14.30
Futures Co., Ltd.
Galaxy Futures
Futures Margin 40,613,184.80 Within 1 year 13.81
Co., Ltd.
CITIC Futures
Futures Margin 25,281,986.20 Within 1 year 8.59
Co., Ltd.
Total —— 205,918,692.90 —— 70.00 48,970,344.30
(1) Inventory Category
Closing Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.
Raw Materials 242,345,646.63 8,040,000.00 234,305,646.63
Self-made Semi-finished Products &
Work in Progress
Finished Goods 551,253,489.25 89,525.77 551,163,963.48
Turnover Materials 3,467,927.05 55,676.29 3,412,250.76
Work in Process-outsourced 43,862,482.16 43,862,482.16
Materials in Transit 721,186,641.57 721,186,641.57
Closing Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.
Goods Sold 6,543,852.31 6,543,852.31
Total 1,569,277,369.07 8,185,202.06 1,561,092,167.01
(Continued)
Opening Balance
Items Inventory Falling Price Reserves/
Book Balance Provision for impairment of Book Value
contract performance cost.
Raw Materials 597,025,582.96 21,350,971.75 575,674,611.21
Self-made
Semi-finished Products & 372,109.32 372,109.32
Work in Progress
Finished Goods 664,865,256.03 1,510,139.93 663,355,116.10
Turnover Materials 2,978,388.97 57,918.90 2,920,470.07
Work in Process-outsourced 83,426,732.77 83,426,732.77
Materials in Transit 94,930,883.69 94,930,883.69
Goods Sold 1,249,168.24 1,249,168.24
Total 1,444,848,121.98 22,919,030.58 1,421,929,091.40
(2) Inventory impairment provision and contract performance cost impairment provision
The amount added this period
Items Opening Balance
Provision Others
Raw Materials 21,350,971.75
Finished Goods 1,510,139.93
Turnover Materials 57,918.90
Total 22,919,030.58
(Continued)
The amount reduced this period
Items Closing Balance
Reversal or write-off Others
Raw Materials 13,310,971.75 8,040,000.00
Finished Goods 1,420,614.16 89,525.77
Turnover Materials 2,242.61 55,676.29
Total 14,733,828.52 8,185,202.06
(3) Inventory Goods listed by major product type
Items Closing Balance
Book Balance Falling Price Reserves Book Value
Grease and oils 539,447,736.79 89,525.77 539,358,211.02
Food 11,805,752.46 11,805,752.46
Total 551,253,489.25 89,525.77 551,163,963.48
(Continued)
Opening Balance
Items
Book Balance Falling Price Reserves Book Value
Grease and oils 648,365,629.66 1,510,139.93 646,855,489.73
Food 16,499,626.37 16,499,626.37
Total 664,865,256.03 1,510,139.93 663,355,116.10
Items Closing Balance Opening Balance
Pending Deduct VAT Input Tax 71,133,822.06 80,350,441.94
Pre-paid Taxes and Fees 10,167,445.26 9,948,529.68
Input Tax to Be Certified 135,896.87 245,525.77
Fair Value Changes of Hedged Items 62,395,166.07 8,705,942.21
In total 143,832,330.26 99,250,439.60
(1) Long-Term Equity Investment Classification
Current Period-End
Item Beginning Balance Current Increase
Decrease Balance
Investment in Joint Ventures 139,458,291.18 3,035,749.09 142,494,040.27
Investment in Associates 127,814,678.14 1,230,369.93 129,045,048.07
Total 267,272,969.32 4,266,119.02 271,539,088.34
(2) Details of Joint Ventures and Associates
Increase or Decrease in the Current Period
Balance at
Cost of Confirmed Profit Adjustment of
Invested Entity Beginning of
Investment Additional Negative and Loss on other
Year
Investment Investment Investment under comprehensive
Equity Method income
Total 119,825,100.64 267,272,969.32 4,266,119.02
Beijing CHIA TAI
Feedmill 26,232,442.61 139,458,291.18 3,035,749.09
Co. ,Limited
China Grain
Reserves (Tianjin)
Warehouse Logistics
Co., Ltd.
Jingliang Missme
Catering
Management
(Beijing) Co., Ltd.
(Continued)
Increase or Decrease in the Current Period
Announce to Closing Balance
Other Accrual of Balance at End
Invested entity Distribute Case of Impairment
changes in Impairment Others of Period
Dividends or Reserves
equity Reserves
Profits
Total 271,539,088.34
Beijing CHIA TAI
Feedmill 142,494,040.27
Co. ,Limited
China Grain
Reserves (Tianjin)
Warehouse Logistics
Co., Ltd.
Jingliang Missme
Catering
Management
(Beijing) Co., Ltd.
(1) Investment Real Estate Adopting Cost Measurement Model
Land Use Construction in
Items Buildings Total
Right Progress
One. Original Book Value
—Other transfers 60,721,876.10 576,510.00 61,298,386.10
Two. Accumulated Impairment and
Accumulated Amortization
—Accrual or Amortization
—Other transfers 35,072,793.75 237,329.95 35,310,123.70
Three. Impairment Reserves 10,587,796.70 10,587,796.70
Period
Period
Four. Book Value
Items Balance at End of Period Balance at Beginning of Period
Fixed Assets 814,065,422.12 841,479,812.89
Disposal of fixed assets
In total 814,065,422.12 841,479,812.89
(1) Details of Fixed Assets
Items Buildings Machinery Equipment Transportation Equipment Electronic Equipment Office Equipment Other Equipment Total
One. Original
Book Value
Beginning of 1,095,593,888.13 844,074,072.11 18,587,760.18 16,418,896.35 7,630,892.16 232,873.76 1,982,538,382.69
Year
Amounts in the 3,412,799.70 15,358,629.47 278,727.60 82,234.93 33,012.68 19,165,404.38
Current Period
(1) Purchase 1,686,768.88 278,727.60 82,234.93 33,012.68 2,080,744.09
(2) Roll-in
of Project
under
Construction
(3) Other
Amounts in the 182,568.80 828,521.27 323,661.54 406,769.93 131,498.82 74,011.40 1,947,031.76
Current Period
(1) Disposal
or Scrap
(2) Other
transferred out
End of Period
Two.
Accumulated
Impairment
Beginning of 519,004,237.94 565,676,848.30 13,133,612.56 10,469,123.05 5,125,203.10 84,876.80 1,113,493,901.75
Year
Amounts in the 19,692,408.85 24,767,219.70 756,008.39 654,507.29 366,736.43 20,813.71 46,257,694.37
Current Period
Items Buildings Machinery Equipment Transportation Equipment Electronic Equipment Office Equipment Other Equipment Total
(1) Accrual 19,692,408.85 24,767,219.70 756,008.39 654,507.29 366,736.43 20,813.71 46,257,694.37
(2) Other
Amounts in the 17,344.08 770,177.03 307,478.46 390,259.50 102,111.86 37,499.15 1,624,870.08
Current Period
(1) Disposal
or Scrap
End of Period
Three.
Impairment
Reserves
Beginning of 9,047,959.13 18,284,210.99 2,780.80 155,337.57 69,089.76 5,289.80 27,564,668.05
Year
(1) Accrual
(2) Decreased
Amounts in the
Current Period
End of Period
Four. Book
Value
at End of 551,096,857.19 250,646,078.35 4,679,175.35 5,402,206.51 2,122,710.84 118,393.88 814,065,422.12
Period
at Beginning 567,541,691.06 260,113,012.82 5,451,366.82 5,794,435.73 2,436,599.30 142,707.16 841,479,812.89
of Year
Items Balance at End of Period Balance at Beginning of Year
Construction in Progress 130,672,973.43 88,960,509.10
Total 130,672,973.43 88,960,509.10
(1) Construction in Progress
A. Details of Construction in Progress
Closing Balance Opening Balance
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
Baking production
line
Jingliang Hainan
Yangpu Oil 13,641,245.93 13,641,245.93 12,048,331.15 12,048,331.15
Processing Project
Slope Stabilization
Project at Factory 8,101,830.83 8,101,830.83 8,101,830.83 8,101,830.83
No. 3
Free Trade Zone
Feed Processing 7,858,573.81 7,858,573.81 7,858,573.81 7,858,573.81
Project
Upgrade Project for
Rice Cake 4,557,039.48 4,557,039.48 4,347,643.14 4,347,643.14
Production Line
Closing Balance Opening Balance
Items Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserves Reserves
The infrastructure
and prefabrication
section project of 4,481,511.03 4,481,511.03 1,341,054.32 1,341,054.32
the rice cake
workshop
Snow Cake
Workshop
Category 1,472,459.91 1,472,459.91
Expansion
Investment Project
The "Haidilao"
baking potato chip
automation
transformation
project of the
Leisure Factory
Rice Product
Workshop 2,854,971.76 2,854,971.76
Relocation Project
The lean
production
transformation
project of the first 1,311,148.16 1,311,148.16
and second
workshops of the
Leisure Factory
Others 4,001,429.61 4,001,429.61 5,683,734.17 5,683,734.17
Total 130,672,973.43 130,672,973.43 88,960,509.10 88,960,509.10
B. Change Condition of Important Engineering Projects under Construction in the Current Period
Transfer to Decrease
Budget Beginning Increase This Period-End
Project Name Fixed This
Amount Balance Period Balance
Assets Period
Baking production
line
Jingliang Hainan
Yangpu Oil 661,324,100.00 12,048,331.15 1,592,914.78 13,641,245.93
Processing Project
Free Trade Zone
Feed Processing 7,184,400.00 7,858,573.81 7,858,573.81
Project
Slope
Stabilization
Project at Factory
No. 3
Total -- 65,511,130.85 52,121,862.46 117,632,993.31
(Continued)
Proportion of
Including: Interest
accumulated Accumulated
Progress Interest Capitalizati
input of the Amount of Sources of
Project Name of the Capitalization on Rate in
project on Interest Capital
Project Amount occurred the Current
Budgeted Capitalization
in Current Period Period（%）
Amount（%）
Baking production Owned by the
line enterprise
Raised
Jingliang Hainan
Capital and
Yangpu Oil 1.82 1.82%
Owned by the
Processing Project
enterprise
Free Trade Zone
Owned by the
Feed Processing 109.38 99.00%
enterprise
Project
Slope Stabilization
Owned by the
Project at Factory 1.82 1.82%
enterprise
No. 3
Total —— —— 263,055.56 263,055.56 —— ——
Details
Transportation Land Use
Items Buildings In total
Equipment Right
One. Original Book Value
Period
(1) Lease
Period
(1) Expiration of contract
(2) Contract termination adjustment 2,416,490.86 2,416,490.86
Two. Accumulated Depreciation
Period
(1) Accrual 4,328,997.40 22,948.41 56,484.00 4,408,429.81
Period
(1) Contract termination adjustment 1,744,846.06 1,744,846.06
(2) Expiration of contract
Three. Impairment Reserves
Transportation Land Use
Items Buildings In total
Equipment Right
Period
Period
Four. Book Value
Details of Intangible Assets
Items Software Land Use Right Trademark Right In total
One. Original Book Value
(1) Purchase
(1) Disposal
Two. Accumulated Amortization
(1) Accrual 79,869.56 4,542,322.72 3,138,575.67 7,760,767.95
(1) Disposal
Three. Impairment Reserves
Four. Book Value
(1) Original Book Value of Goodwill
Increase in the Decrease in the
Name of Invested Entity or Balance at Current Period Current Period Balance at End of
Items Forming Goodwill Beginning of Year Formed by Period
Disposal
Enterprise Merger
Acquire stock shares of
Zhejiang Xiaowangzi Food Co., 191,394,422.51 191,394,422.51
Ltd.
In total 191,394,422.51 191,394,422.51
(2) Relevant information about the group or groups of assets that include goodwill
Whether
Composition and Basis of Group of Assets Operation Segment and
Name consistent with
or Group belongs Basis belongs
Prior Period
Group of Assets comprises of Goodwill
Acquire stock shares of Assets mainly used food
related assets ， the flow-in cash generated
Zhejiang Xiaowangzi processing, belong to the Yes
Food Co., Ltd. shall be independent of those by other Food Processing Segment
group assets.
(3) Goodwill impairment provision
Increase in the Decrease in the
Name of Invested Entity or Balance at Current Period Current Period Balance at End of
Items Forming Goodwill Beginning of Year Period
Accrual Others Disposal Others
Acquire stock shares of
Zhejiang Xiaowangzi Food 65,762,029.16 65,762,029.16
Co., Ltd.
In total 65,762,029.16 65,762,029.16
Balance at Increased Amounts Amortized Other
Balance at End
Items Beginning of in the Current Amounts in the reductions
of Period
Year Period Current Period
Workshop renovation
and maintenance
House renovation and
remodeling
Total 3,362,646.84 557,990.88 1,638,955.09 1,165,700.87
(1) Deferred Income Tax Assets Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Deductible Deductible
Deferred Income Deferred Income
Temporary Temporary
Tax Assets Tax Assets
Difference Difference
Asset Impairment Reserves 50,026,256.49 12,506,564.12 50,152,256.47 12,538,064.11
Balance at End of Period Balance at Beginning of Year
Items Deductible Deductible
Deferred Income Deferred Income
Temporary Temporary
Tax Assets Tax Assets
Difference Difference
Assets depreciation reserves 1,543,615.94 385,903.99 2,669,362.22 667,340.56
Valuation of financial
instruments and derivative 5,722,767.88 1,430,691.97 3,572,045.80 893,011.45
financial instruments
Lease liabilities 159,860,021.92 39,965,005.48 166,205,889.35 41,551,472.34
Deductible losses 105,237,763.29 26,309,440.82 74,064,292.97 18,516,073.24
Deferred Income 14,835,521.81 3,708,880.45 14,835,521.81 3,708,880.45
Wages payable 5,321,134.00 1,330,283.50 5,321,134.00 1,330,283.50
Contract Rebates 1,987,981.50 496,995.38 1,987,981.50 496,995.38
In total 344,535,062.83 86,133,765.71 318,808,484.12 79,702,121.03
(2) Details of Deferred Income Tax Liabilities Not Being Offset
Balance at End of Period Balance at Beginning of Year
Items Taxable Temporary Deferred Income Tax Taxable Temporary Deferred Income Tax
Difference Liabilities Difference Liabilities
Valuation of Financial
Instruments and Derivative 36,548,345.57 9,137,086.39 6,320,422.21 1,580,105.55
Financial Instruments
Use right assets 160,920,211.56 40,230,052.89 165,115,356.93 41,278,839.23
Valuation and appreciation of
assets in merger of enterprises 111,372,664.00 27,843,166.00 116,528,641.92 29,132,160.48
not under the same control
Total 308,841,221.13 77,210,305.28 287,964,421.06 71,991,105.26
(3) Details of Deferred Income Tax Liabilities after Offset
Ending Balance Beginning Balance
Item Net Deferred Tax Net Deferred Tax
Deferred Tax Assets Deferred Tax Assets
Assets (After Assets (After
Offsetting Amount Offsetting Amount
Offsetting) Offsetting)
I. Deferred tax
assets
II. Deferred
tax liabilities
(4) Details of Deferred Income Tax Assets Not Being Confirmed
Items Balance at End of Period Balance at Beginning of Year
Deductible temporary differences 58,415,648.60 58,415,648.60
Deductible loss 369,280,702.05 327,283,562.80
In total 427,696,350.65 385,699,211.40
(5) Deductible loss on deferred income tax assets not being confirmed will be due at the following years
Year Balance at End of Period Balance at Beginning of Year
Total 369,280,702.05 327,283,562.80
Closing Balance Opening Balance
Items Book Provision for Book Provision for
Book value Book value
balance impairment balance impairment
Prepaid Long-Term
Asset Purchases
Total 8,742,892.22 8,742,892.22 9,281,092.22 9,281,092.22
Ending-period
Items
Book balance Book value Type of restriction Restriction Situation
Monetary Funds 24,863,023.91 24,863,023.91 Guarantee Deposit Guarantee Deposit
Fixed Assets 21,719,189.02 4,483,531.03 Legal Freeze Legal Freeze
Investment Real Estates 19,594,735.46 4,350,926.15 Legal Freeze Legal Freeze
In total 66,176,948.39 33,697,481.09 / /
(Continued)
Beginning-period
Item
Book balance Book value Type of restriction Restriction Situation
Monetary Funds 33,411,335.64 33,411,335.64 Guarantee Deposit Guarantee Deposit
Fixed Assets 21,719,189.02 4,167,145.29 Legal Freeze Legal Freeze
Investment Real Estates 19,594,735.46 4,520,056.97 Legal Freeze Legal Freeze
In total 74,725,260.12 42,098,537.90 / /
Classification of Short-term Borrowings
Items Balance at End of Period Balance at Beginning of Year
Credit loans 709,701,803.20 1,136,260,975.85
In total 709,701,803.20 1,136,260,975.85
Among them: Interest
Payable
Item Closing Balance Opening Balance
Changes in fair value of hedging instruments 9,953,208.15 3,815,280.00
Total 9,953,208.15 3,815,280.00
Type Closing Balance Opening Balance
Bank Acceptance 56,649,763.00
Total 56,649,763.00
Breakdown of Accounts Payable
Items Balance at End of Period Balance at Beginning of Year
Payable for Materials 51,435,019.17 47,834,239.89
Payable for Engineering 12,404,701.46 13,248,688.94
Payable for Equipment 3,275,665.83 28,140.00
Consulting Service Fee 920,480.25
Leasing Fee 2,479,733.33
Storage Fee 2,244,117.33 2,073,066.67
Others 2,807,004.71 2,169,241.37
In total 74,646,241.83 66,273,857.12
Breakdown of Advances from Customers
Items Balance at End of Period Balance at Beginning of Year
Advance collection of rent 1,222,673.11 1,670,875.73
In total 1,222,673.11 1,670,875.73
Classification of contract liabilities
Items Balance at End of Period Balance at Beginning of Year
Payment for goods 359,063,926.94 275,724,804.27
In total 359,063,926.94 275,724,804.27
(1) Wages Payable Presented
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Short-term Compensation 25,193,585.29 121,479,478.45 134,409,325.29 12,263,738.45
After-service Welfare- Set
up ESP liabilities
Dismission Welfare 1,254,029.00 814,181.41 814,181.41 1,254,029.00
Others
In total 29,353,455.84 140,957,540.26 153,391,185.30 16,919,810.80
(2) Short-term Compensation Presented
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
and Subsidy
Employee
Among them: Medical
Insurance Premiums
Industrial Injury
Insurance Premiums
Personnel Education Fund
In total 25,193,585.29 121,479,478.45 134,409,325.29 12,263,738.45
(3) Stated Drawings Plan Presented
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Insurance
Insurance Expense
Charges
Total 2,905,841.55 18,663,880.40 18,167,678.60 3,402,043.35
Items Balance at End of Period Balance at Beginning of Year
VAT 2,566,202.27 29,296,775.82
Items Balance at End of Period Balance at Beginning of Year
Corporate Income Tax 2,664,352.62 2,223,946.93
Urban Maintenance and Construction Tax 146,686.13 1,452,582.88
House Property Tax 1,018,604.75 1,769,241.11
Land Use Tax 419,871.83 1,093,470.51
Individual Income Tax 54,454.81 609,990.36
Educational Surtax (Including local educational
surcharge）
Other Taxes 159,123.85 328,288.94
In total 7,183,532.89 38,204,738.18
Items Balance at End of Period Balance at Beginning of Year
Interest Payable 20,000,000.00 20,000,000.00
Other Accounts Payable 56,606,599.09 42,493,915.38
In total 76,606,599.09 62,493,915.38
(1) Interest Payable
Items Balance at End of Period Balance at Beginning of Year
Interest on intercompany loans 20,000,000.00 20,000,000.00
In total 20,000,000.00 20,000,000.00
(2) Other Accounts Payable
Other Accounts Payable by Nature of Funds Presented
Items Balance at End of Period Balance at Beginning of Year
Related party amounts within the group 867,695.89 558,574.25
Accounts Payable of Guaranteed Deposit and Deposit 28,852,038.51 26,526,699.27
Accounts Payable of Intercourse Funds 19,659,919.80 9,082,778.49
Personal Intercourse Funds 504,075.78 769,967.93
Various Insurances of Employee 3,542,507.34 3,902,761.56
Others 3,180,361.77 1,653,133.88
In total 56,606,599.09 42,493,915.38
Item Closing Balance Opening Balance
Long-term borrowings due within one year 67,000,000.00 68,000,000.00
Bonds payable due within one year 299,925,000.00 299,700,000.00
Item Closing Balance Opening Balance
Lease Liability due within one year 4,445,042.32 5,284,537.08
Long-term borrowings interest due within one year 455,213.61
Bond interest payable due within one year 7,200,000.00 2,880,000.00
Total 378,570,042.32 376,319,750.69
Item Closing Balance Opening Balance
Sales Tax Payable to be Written Off 34,663,083.60 34,674,941.36
Fair value changes of hedged items 2,125,165.80
Total 34,663,083.60 36,800,107.16
Amount Due Within One
Item Ending Book Value Ending Balance
Year
Credit Loans 640,500,000.00 67,000,000.00 573,500,000.00
Total 640,500,000.00 67,000,000.00 573,500,000.00
（Continuing Table）
Amount Due Within One
Item Beginning Book Value Beginning Balance
Year
Credit Loans 644,500,000.00 68,000,000.00 576,500,000.00
Total 644,500,000.00 68,000,000.00 576,500,000.00
(1) Bonds payable
Item Closing Balance Opening Balance
Corporate Bond 0.00 0.00
Total 0.00 0.00
Note: The aforementioned bonds payable have been converted into non-current liabilities due within one
year.
(2) Details of Bond payable (not including other financial instruments i.e. the Financial Liabilities preference
shares perpetuities etc)
Coupon Amount Due
rate Bond Opening
Name of Bond Face Value Issue Date Issuing Amount Within One
Term Balance
（%） Year
Aug, 2023
Bond
Total ∕ ∕ ∕ ∕ 300,000,000.00 299,700,000.00 299,700,000.00
(Continued)
Interest Amortization of
Name of Repayment in Amount Due Whether
accrued at Premiums or Ending Balance
Bond the Period Within One Year in default
face value Discounts
Bond
Total 4,320,000.00 -225,000.00 4,320,000.00 299,925,000.00 299,925,000.00 ∕
Item Closing Balance Opening Balance
Lease Payment 191,831,027.62 201,310,577.51
Less: Unrecognized Financing Cost 58,351,773.96 60,574,401.86
Reclassified as non-current liabilities due within One year 4,445,042.32 5,284,537.08
Net Lease Liabilities 129,034,211.34 135,451,638.57
Long-term wage payable presented
Items Balance at End of Period Balance at Beginning of Year
Other Long-term Welfare 5,259,134.00 5,321,134.00
In total 5,259,134.00 5,321,134.00
Item Ending Balance Beginning Balance Reason for Formation
Pending Litigation 22,650,893.15 22,650,893.15
Total 22,650,893.15 22,650,893.15 ——
Balance at Beginning Increase in the Decrease in the Balance at End of Cause of
Items
of Year Current Period Current Period Period Formation
Government
Subsidy
In total 53,936,649.47 913,873.08 53,022,776.39 --
Changes This Period (+, -)
Shareholder Beginning Capital
Issuance of Ending Balance
Name Balance Bonus Reserve
New Other Subtotal
Shares Conversion to
Shares
Shares
Total Shares 726,950,251.00 726,950,251.00
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Capital Premium (Stock Premium) 1,435,204,343.74 1,435,204,343.74
Other Capital Reserves 248,469,614.28 248,469,614.28
In total 1,683,673,958.02 1,683,673,958.02
Current Period Amount
Less: Amount Less: Amount
Beginning Transferred from Transferred from Less:
Item
Balance Tax Before Other Other Income
Period Comprehensive Comprehensive Tax
Income to Profit Income to Expenses
or Loss Retained Earnings
Income Not Reclassifiable to
Profit or Loss
Income Reclassifiable to Profit 1,059,574.92 -922,132.87
or Loss
Foreign Currency Translation
Differences
Total other comprehensive
income
(Continuing Table)
Current Period Amount
Item Income Tax After-Tax Amount After-Tax Amount Ending Balance
Effect for the Attributable to the Attributable to
Period Parent Company Minority Shareholders
I. Other Comprehensive
Income that will not be
reclassified to profit or loss.
II. Other Comprehensive
Income that will be -922,132.87 -922,132.87 137,442.05
reclassified to profit or loss.
Foreign Currency
-922,132.87 -922,132.87 137,442.05
Translation Differences
Total Other Comprehensive
-922,132.87 -922,132.87 137,442.05
Income
Balance at Increase in the Decrease in the Balance at End of
Items
Beginning of Year Current Period Current Period Period
Statutory Surplus Reserves 107,066,319.34 107,066,319.34
Free Surplus Reserves 37,634,827.93 37,634,827.93
In total 144,701,147.27 144,701,147.27
Amounts in the Amounts in the
Items
Current Period Prior Period
Adjustment on undistributed profit at end of last year 307,028,112.53 593,483,706.16
Adjusted undistributed profit at beginning of period 307,028,112.53 593,483,706.16
Add: Net profit attributable to parent company in the current period 8,032,416.00 17,950,174.11
Less: Withdrawal statutory surplus reserves
Common stock dividends payable 13,085,104.52
Undistributed profit at end of period 315,060,528.53 598,348,775.75
(1) Operation Revenue and Operation Cost
Amounts in the Current Period Amounts in the Prior Period
Items
Revenue Cost Revenue Cost
Main Business 3,105,747,301.45 2,937,877,316.64 4,199,224,826.21 3,963,118,743.02
Other Business 9,179,420.06 2,082,600.72 8,921,429.65 9,643,983.54
In total 3,114,926,721.51 2,939,959,917.36 4,208,146,255.86 3,972,762,726.56
(2) Breakdown of operation revenue and operation cost
Contract Category Operation Revenue Operation Cost
Industry and Business-classified
Including: Oil 2,779,531,755.63 2,674,595,949.01
Food 326,215,545.82 263,281,367.63
Others 9,179,420.06 2,082,600.72
Region-classified
Including: North China 2,006,839,348.50 1,905,445,799.55
East China 610,958,073.14 544,557,979.05
Northeast China 184,134,193.58 161,273,137.30
Central China 304,079,041.36 320,129,787.60
South China 192,847.96 100,343.03
Others 8,723,216.97 8,452,870.83
Time for the transfer of commodities classified
Including: Revenue recognition at a given time 3,114,926,721.51 2,939,959,917.36
Sales channel-classified
Including: Direct 1,338,798,081.27 1,274,023,682.24
Distribution 1,766,949,220.18 1,663,853,634.40
Others 9,179,420.06 2,082,600.72
In total 3,114,926,721.51 2,939,959,917.36
(3) Performance obligations explanation
Nature of the Expected Quality assurance
Whether
Time of Important commitment to refund to the category provided
main
Item performance payment transfer customer by by the Company
responsible
obligations terms commodities by the and relevant
person
the company Company obligations
Processing and
Mainly Mainly sales of
sales of oil and Upon Statutory
payment oil and oilseeds, Yes No
oilseeds, as well delivery guarantees
first snack food
as foodstuffs
Note: Company and distributors adopt the payment first method, certain credit lines offered by the company
to partial distributors with long-term cooperation and good reputation. For settlement, partial direct sale customers
and supermarkets shall be proceeded on agreed payment terms in accordance with the contract
(4) Amortization on remaining performance obligations explanation
Item Amount
Revenue corresponding to signed contracts that have not yet been fulfilled or
completed by the end of this reporting period
—Expected revenue to be recognized in the second half of 2025 359,063,926.94
Items Amounts in the Current Period Amounts in the Prior Period
Urban Maintenance and Construction Tax 2,365,695.20 2,336,002.81
House Property tax 3,560,411.25 3,201,504.21
Land Use Tax 1,092,386.60 1,095,143.03
Educational Surtax 1,922,118.69 1,680,923.01
Vehicle and Vessel Use Tax 14,481.36 15,630.64
Environmental Protection Fees 14,074.66 24,137.85
Stamp Tax 1,998,681.13 3,135,946.35
Other Taxes and Fees 18,732.26 152,497.75
In total 10,986,581.15 11,641,785.65
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 29,849,487.54 28,326,451.00
Warehousing and Storage Fees 6,307,755.74 11,687,876.61
Depreciation Expense 8,324,479.50 8,459,887.59
Sales Service Expenses 4,884,120.44 4,512,944.89
Material Consumption and Losses 1,564,776.15 2,284,577.01
Travel Expenses 1,278,843.40 1,875,858.90
Items Amounts in the Current Period Amounts in the Prior Period
Lease Expenses 3,340,344.65 2,635,934.24
Repair Expenses 448,748.85 29,374.44
Utilities 19,057.28 17,747.30
Vehicle Expenses 99,958.80 274,057.31
Packaging Expenses 97,759.42 92,638.28
Inspection and Testing Expenses 145,231.37 109,553.15
Loading and Unloading Expenses 22,641.51
Other Expenses 5,924,790.12 5,377,912.04
Total 62,285,353.26 65,707,454.27
Items Amounts in the Current Period Amounts in the Prior Period
Employee Compensation 48,824,044.66 52,072,974.98
Depreciation Expense 15,424,995.91 12,740,675.81
Amortization of Intangible Assets 3,237,825.44 2,184,420.65
Office Expenses 2,971,012.32 4,175,105.34
Lease Expenses 2,568,847.28 4,405,913.08
Fees for Engaging Intermediaries 5,091,208.93 4,957,635.33
Repair Expenses 528,237.13 2,235,016.64
Security and Protection Expenses 254,259.12 609,705.94
Travel Expenses 285,635.24 454,431.95
Information and Network Expenses 1,158,059.77 1,012,558.42
Insurance Expenses 480,616.60 467,997.59
Business Reception Expenses 274,191.49 511,659.59
Environmental Protection Expenses 656,670.88 570,470.69
Amortization of Prepaid Expenses 122,370.01 890,307.28
Vehicle Expenses 867,567.19 765,613.82
Material Consumption 276,283.99 270,245.78
Labor Protection Expenses 28,364.95 39,875.97
Conference Expenses 15,538.47 32,219.30
Other Expenses 3,389,183.75 3,357,275.97
In total 86,454,913.13 91,754,104.13
Items Amounts in the Current Period Amounts in the Prior Period
Salary 4,472,735.18 4,682,957.00
Material fee 2,872,151.32 3,455,845.79
Depreciation and amortization 192,972.02 339,179.02
Fuel and Power Fee 188,050.26 485,965.91
Transportation Expense 25,607.64 21,855.24
Equipment Cost 1,238.94
Others 235,374.49 214,439.07
In total 7,986,890.91 9,201,480.97
Items Amounts in the Current Period Amounts in the Prior Period
Interest Expenses 23,857,714.79 31,665,713.92
Less: Interest Income 5,794,866.63 5,319,761.53
Fees and Charges 105,402.24 2,467,784.21
Exchange Losses 209,622.35 -321,306.95
Less: Exchange Gains
Other
In total 18,377,872.75 28,492,429.65
Items Amounts in the Current Period Amounts in the Prior Period
Government Subsidy 6,058,938.69 5,707,687.74
Return of Service Charges of Withholding
Individual Income Tax
In total 6,176,238.71 5,867,507.90
The sources of generating investment income Amounts in the Current Period Amounts in the Prior Period
Long-term investment income recognized
under equity method
In total 4,266,119.02 3,572,053.10
Source of generating profits on changes in fair
Amounts in the Current Period Amounts in the Prior Period
value
Trading Financial assets 17,105,743.14 -10,955,589.95
Including: income with changes in fair value
generated by derivative financial instruments
Source of generating profits on changes in fair
Amounts in the Current Period Amounts in the Prior Period
value
In total 17,105,743.14 -10,955,589.95
Items Amounts in the Current Period Amounts in the Prior Period
Accounts receivable bad debt loss 126,000.00 52.30
Total 126,000.00 52.30
Amounts in the Current Amounts in the Prior
Items
Period Period
Loss on Inventory Price Loss & Impairment loss on contract
-37,303.33
performance costs
In total -37,303.33
Amounts Charged to
Amounts in the Current Amounts in the
Items Non-recurring Profit and
Period Prior Period
Loss
Gains or losses on disposal of fixed assets 215,035.93 294.25 215,035.93
Gains or losses on disposal of intangible
assets
Gains or losses resulting from the
termination or modification of a 99,273.58 99,273.58
long-term lease contract
In total 314,309.51 16,255,830.49 314,309.51
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit and
Current Period Prior Period
Loss
Gain from the destruction or scrapping of
non-current assets
Gains from inventory 9,911.50 9,911.50
Fines, liquidated damages, late fees,
compensation income
Payable amounts not required to be paid 1,218.79 11,181.77 1,218.79
Others 191,889.66 79,874.76 191,889.66
In total 295,082.31 171,433.89 295,082.31
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit and
Current Period Prior Period
Loss
Loss from damage or scrapping of 42,978.89 6,412.23 42,978.89
Amounts Charged to
Amounts in the Amounts in the
Items Non-recurring Profit and
Current Period Prior Period
Loss
non-current assets
Losses from inventory 132,791.43 132,791.43
Liquidated damages, compensation
Expenses
Others 199,571.11 39,274.54 199,571.11
Total 378,632.51 16,645,099.05 378,632.51
(1) List of Income Tax Expenses
Items Amounts in the Current Period Amounts in the Prior Period
Current Income Tax Expense 8,460,532.28 4,482,306.11
Deferred Income Tax Adjustment -1,212,444.66 4,646,691.26
Total 7,248,087.62 9,128,997.37
(2) Accounting Profit and Income Tax Expense Adjustment Process
Amounts in the Current
Items
Period
Total Profit 16,780,053.13
Income Tax Expense Calculated at Statutory/Applicable Tax Rate 3,537,513.27
Effect of Different Tax Rates for Subsidiaries -478,892.28
Effect of Adjustments to Prior Period Income Tax 757.99
Effect of Non-Taxable Income
Effect of Non-Deductible Costs, Expenses, and Losses
Effect of Using Unrecognized Deferred Tax Assets on Deductible Losses from Previous
-3,151,798.11
Periods
Effect of Unrecognized Deferred Tax Assets on Deductible Losses in the Current Period 5,132,339.87
The impact of the deductible temporary differences that have not yet been recognized as
deferred income tax assets in this period
Effect of Small Enterprise Tax Preferences -11,231.76
Effect of Non-Taxable Investment Income -1,066,529.76
Reversal of the impact of the initial recognition of deferred income tax assets 3,254,648.33
Others 31,280.08
Income Tax Expenses 7,248,087.62
See details of‘Appendix V Notes on Items in Consolidated Financial Statements 38. Other Comprehensive
Incomes’.
(1) Cash related to operating activities
A. Receiving other cash related to operation activities
Items Amounts in the Current Period Amounts in the Prior Period
Intercourse Funds of Related Parties 275,337.14 267,833.80
Security Deposit 281,070,975.05 1,236,244,410.55
Intercourse Funds of Other Units 67,285,615.88 4,408,893.18
Interest Income 5,925,907.04 5,224,074.75
Non-operating Income and other
income
Collections for Others 191,303,195.95 2,288,086,889.51
Others 9,282,534.79 11,976,811.74
Total 556,873,686.92 3,546,804,253.47
B. Cash Paid for Other Operating Activities
Items Amounts in the Current Period Amounts in the Prior Period
Expense Payments 17,308,641.15 35,722,072.77
Other Unit Transactions 10,848,156.10 9,552,731.60
Related Party Transactions 2,861,578.22 3,084,529.27
Petty Cash 159,110.00 61,000.00
Deposits and Guarantees 532,798,376.85 1,148,043,679.45
Collections for Others 191,303,195.95 2,288,086,889.51
Others 2,144,953.45 78,051,269.43
Total 757,424,011.72 3,562,602,172.03
(2) Cash related to financing activities
A. Other cash paid related to financing activities
Items Amounts in the Current Period Amounts in the Prior Period
Lease payment amount 9,474,709.30 679,200.00
In total 9,474,709.30 679,200.00
B. Details of various liability change from Financing Activities
Increase in Current Period Decrease in Current Period
Beginning
Item Cash Non-cash Non-cash Ending Balance
Balance Cash Movement
Movement Movement Movement
Short-term
borrowing
Long-term
borrowing
Bond
Payable
Lease
Liability
Interest
Payable
Dividends
Payable
Total 2,244,532,365.11 724,049,105.70 16,126,205.53 1,173,901,619.48 0.00 1,810,806,056.86
(1) Supplementary Materials of Cash Flows Statement
Amounts in the Amounts in the
Supplementary Materials
Current Period Prior Period
Net Profit 9,531,965.51 17,686,162.61
Add: Assets Impairment Loss 0.00 37,303.33
Credit impairment loss -126,000.00 -52.30
Fixed Assets Depreciation, Oil-and-gas Assets Depreciation and Productive
Biological Assets Depreciation
Right-of-use assets depreciation 4,408,429.81 7,520,983.79
Amortization of Intangible Assets 7,760,767.95 8,408,289.96
Amortization of Long-term Deferred Expenses 559,567.92 890,307.28
Losses on Disposal of Fixed Assets, Intangible Assets and Other Long-term Assets
-314,309.51 -16,255,830.49
(Fill in profit with symbol “－”)
Losses on Retirement of Fixed Assets (Fill in profit with symbol “－”) 20,855.00 6,412.23
Losses on Changes in Fair Value (Fill in profit with symbol “－”) -17,105,743.14 10,955,589.95
Financial Expenses (Fill in profit with symbol “－”) 18,062,848.16 26,345,952.39
Investment Losses (Fill in profit with symbol “－”) -4,266,119.02 -3,572,053.10
Decrease in Deferred Income Tax Assets (Fill in increase with symbol “－”) 76,549.82 4,161,616.67
Increase in Deferred Income Tax Reliabilities (Fill in decrease with symbol “－”) -1,288,994.48 -803,919.89
Decrease in Inventory (Fill in increase with symbol “－”) -139,163,075.61 -244,476,596.39
Decrease in Items of Operating Receivables (Fill in increase with symbol “－”) 456,403,827.61 -307,836,531.87
Increase in Items of Operating Payables (Fill in decrease with symbol “－”) 8,358,406.65 670,957,522.84
Others
Net Cash Flows from Operating Activities 390,028,756.88 222,436,293.07
Cash balance at end of period 1,665,268,161.00 1,729,939,169.19
Less: cash balance at beginning of period 1,788,311,181.44 1,395,519,746.77
Add: The ending balance of cash equivalents
Less: Initial balance of cash equivalents
Cash and cash equivalent net increase -123,043,020.44 334,419,422.42
(2) Composition of cash and cash equivalents
Balance at End of Balance at Beginning of
Items
Period Period
One. Cash 1,665,268,161.00 1,788,311,181.44
Including: Cash on hand 8,617.41 10,241.76
Bank deposit available for payment at any time 1,477,936,692.08 1,725,447,216.11
Other currency funds available for payment at any time 187,322,851.51 62,853,723.57
Two. Cash Equivalents
Three. Balance of Cash and Cash Equivalents at End of Period 1,665,268,161.00 1,788,311,181.44
Monetary Items of Foreign Currency
Balance of Foreign Currency at End Exchange Rate Balance of Converting to
Items
of Period Convert RMB at End of Period
Monetary fund —— —— 26,956,990.16
Including: US Dollars 3,957,918.95 6.8109 26,956,990.16
(1) As Lessee
During the reporting period, the short-term lease expenses that were accounted for and treated as part of the
current period's profit and loss were 5,796,358.31 yuan.
(2) Operating lease as lessor
Including: Income related to variable lease payments not
Item Leasehold income
included in lease income
Leasehold income 1,579,748.12
Total 1,579,748.12
VI Research and Development Expenses
Disclosed by nature of expenses
Item Amount in current period Amount in prior period
Salary 4,472,735.18 4,682,957.00
Material expenses 2,872,151.32 3,455,845.79
Depreciation and Amortization Fee 192,972.02 339,179.02
Fuel & Power expenses 188,050.26 485,965.91
Travel expenses 25,607.64 21,855.24
Equipment expenses 1,238.94
Others 235,374.49 214,439.07
Total 7,986,890.91 9,201,480.97
Including: Expensed expenditure 7,986,890.91 9,201,480.97
Capitalized expenditure
VII Change in Consolidation Scope
There were no changes in the scope of consolidation for the company during the reporting period.
VIII Equities in Other Entities
(1) Composition of the Company
Registered Shareholding Ratio
Principle Capital（In ten (%)
Registered Nature of Mode of
Name of Subsidiary Place of
thousands Place Business Acquisition
Business Direct Indirect
Yuan）
Agricultural
Jingliang (Tianjin)
Product and By Merger under
Grain and Oil Tianjin 56,000.00 Tianjin 70.00
Product the same control
Industry Co., Ltd.
Processing
Beijing Jingliang Oil Grain and oil Merger under
Beijing 5,000.00 Beijing 100.00
and Fat Co., Ltd. trade the same control
Beijing Guchuan Grain and oil Merger under
Beijing 12,558.46 Beijing 100.00
Edible Oil Co., Ltd. trade the same control
Agricultural
Beijing Eisen-Lubao Product and By Merger under
Beijing 5,050.00 Beijing 100.00
Oil Co., Ltd. Product the same control
Processing
Beijing Tianweikang
Merger under
Oil Distribution Beijing 500.00 Beijing Warehousing 100.00
the same control
Center Co., Ltd.
Beijing Guchuan Merger under
Beijing 5,550.00 Beijing Food Processing 100.00
Bread Food Co., Ltd. the same control
Combination
Zhejiang Xiao Wang
Hangzhou 5,156.00 Hangzhou Food Processing 17.6794 77.2072 not under same
Zi Food Co., Ltd.
control
Hangzhou Lin'an Combination
Xiaotianshi Food Co., Hangzhou 4,900.00 Hangzhou Food Processing 17.6794 77.2072 not under same
Ltd. control
Liaoning Xiao Wang Combination
Liaoning 3,000.00 Liaoning Food Processing 17.6794 77.2072
Zi Food Co., Ltd. not under same
Registered Shareholding Ratio
Principle (%)
Capital（In ten Registered Nature of Mode of
Name of Subsidiary Place of
thousands Place Business Acquisition
Business Direct Indirect
Yuan）
control
Combination
Linqing Xiao Wang
Linqing 2,132.50 Linqing Food Processing 17.6794 77.2072 not under same
Zi Food Co., Ltd.
control
Hangzhou Lin'an
Chunmanyuan Combination
Agricultural Hangzhou 600.00 Hangzhou Food Processing 17.6794 77.2072 not under same
Development Co., control
Ltd.
Jingliang (Singapore)
Invest in the
International Trade Singapore 643.35 Singapore Grain trade 100.00
establishment
Co., Ltd.
Beijing Jingliang
Grain and oil Invest in the
Gubi oil and grease Beijing 5,000.00 Beijing 100.00
trade establishment
co. LTD
Beijing Jingliang Investment Merger under
Beijing 105,658.96 Beijing 100.00
Food Co., Ltd. management the same control
Jingliang
(Caofeidian)
Invest in the
Agricultural Tangshan 5,000.00 Tangshan Plantation 51.00
establishment
Development Co.,
Ltd.
Jingliang (Yueyang)
Agricultural Invest in the
Grain and Oil Hunan 68,000.00 Hunan 65.00
products establishment
Industry Co., Ltd.
Jingliang (Beijing)
Commercial Invest in the
Bakery&Foods Co., Beijing 9,010.00 Beijing 100.00
service establishment
Ltd.
Agricultural
Jingliang (Yangpu)
Product and By Invest in the
Grain and Oil Hainan 50,000.00 Hainan 65.00
Product establishment
Industry Co., Ltd.
Processing
(2) Major non-wholly-owned subsidiaries
Profit And Loss Dividends Distributed Balance of Minority
Shareholding
Name of Attributable to Minority to Minority Shareholder's Equity
Ratio of Minority
Subsidiary Shareholders for the Shareholders for the at the End of the
Shareholders (%)
Current Period Current Period Period
Jingliang
(Tianjin) Grain
and Oil Industry
Co., Ltd.
Zhejiang Xiao
Wang Zi Food 5.11 1,410,643.79 187,467,028.21
Co., Ltd.
(3) Important financial information on major non-wholly-owned subsidiaries
Closing Balance
Name of
Subsidiary Non-current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Jingliang 1,458,862,579.50 635,343,255.31 2,094,205,834.81 948,109,808.64 618,920,245.59 1,567,030,054.23
(Tianjin)
Closing Balance
Name of
Subsidiary Non-current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Grain and
Oil
Industry
Co., Ltd.
Zhejiang
Xiao Wang
Zi Food
Co., Ltd.
(Continued)
Opening Balance
Name of
Subsidiary Non-current Current Non-current
Current Assets Total Assets Total Liabilities
Assets Liabilities Liabilities
Jingliang
(Tianjin)
Grain and
Oil
Industry
Co., Ltd.
Zhejiang
Xiao Wang
Zi Food
Co., Ltd.
(Continued)
Amount incurred in the current period
Name of Subsidiary Total Comprehensive Cash Flow from
Operating Income Net Profit
Income Operating Activities
Jingliang (Tianjin) Grain and
Oil Industry Co., Ltd.
Zhejiang Xiao Wang Zi Food
Co., Ltd.
(Continued)
Amount incurred in the prior period
Name of Subsidiary Total Comprehensive Cash Flow from
Operating Income Net Profit
Income Operating Activities
Jingliang (Tianjin) Grain and
Oil Industry Co., Ltd.
Zhejiang Xiao Wang Zi Food
Co., Ltd.
(1) Important Joint Ventures or Associates
Shareholding Accounting Treatment
Principle
Name of Joint Venture Registered Nature of Ratio (%) Methods for
Place of
or Associates Place Business Investment in Joint
Business Direct Indirect Ventures or Associates
Beijing CHIA TAI
Feedmill. Company Beijing Beijing Manufacturer 50.00 Equity method
Limited
China Grain Reserves
Transportation
(Tianjin) Warehousing Tianjin Tianjin 30.00 Equity method
and warehousing
and Logistics Co., Ltd.
(2) Important financial information on major joint ventures
Opening Balance/Last Term
Closing Balance/Current Amount
Amount
Item
Beijing CHIA TAI Feedmill. Beijing CHIA TAI Feedmill.
Company Limited Company Limited
Current assets 349,153,468.39 345,873,214.96
Including: cash and cash equivalents 5,677,169.83 6,457,544.94
Non-current assets 20,063,668.20 21,173,751.15
Total assets 369,217,136.59 367,046,966.11
Current liabilities 79,461,175.83 62,689,232.60
Non-current liabilities 4,767,880.22 25,441,151.16
Total liabilities 84,229,056.05 88,130,383.76
Shareholders' equity attributable to the
parent company
Share of net assets based on shareholding
ratio
Book value of equity investment in joint
ventures
Operating income 116,585,859.27 145,099,050.03
Financial costs -5,384,827.90 -4,902,972.72
Income tax expense 1,873,468.44 1,811,357.87
Net profit 5,519,032.19 5,434,073.60
Total comprehensive income 5,519,032.19 5,434,073.60
(3) Important financial information on major associates
Closing Balance/Current Amount Opening Balance/Last Term Amount
Item China Grain Reserves (Tianjin) China Grain Reserves (Tianjin)
Warehousing and Logistics Co., Ltd. Warehousing and Logistics Co., Ltd.
Current assets 217,950,277.01 172,497,466.92
Non-current assets 1,044,802,778.43 1,026,922,117.36
Total assets 1,262,753,055.44 1,199,419,584.28
Current liabilities 159,436,731.91 158,225,065.61
Non-current liabilities 673,166,163.28 615,145,591.52
Total liabilities 832,602,895.19 773,370,657.13
Shareholders' equity attributable 430,150,160.25 426,048,927.15
Closing Balance/Current Amount Opening Balance/Last Term Amount
Item China Grain Reserves (Tianjin) China Grain Reserves (Tianjin)
Warehousing and Logistics Co., Ltd. Warehousing and Logistics Co., Ltd.
to the parent company
Share of net assets based on
shareholding ratio
Book value of equity investment
in associates
Operating income 15,455,842.17 37,308,983.82
Net profit 4,101,233.10 1,957,673.09
Total comprehensive income 4,101,233.10 1,957,673.09
(4) Non-important aggregated financial information on joint ventures and associates
Closing Balance/Current Opening Balance/Last Term
Item
Amount Amount
Associated enterprises：
Total of Investment Book Value
The total amounts calculated based on the
shareholding ratios of the following items
-- Net profit -17,747.14
-- Total comprehensive income -17,747.14
IX Government Subsidies
New Amount
Transferred Other
Financial Grant Recorded in
Beginning to Other Changes Ending Asset/Income
Statement Amount Non-operating
Balance Income for for the Balance Related
Item for the Income for the
the Period Period
Period Period
Deferred
Revenue
Total 53,936,649.47 913,873.08 53,022,776.39 ——
Accounting Subjects Current Amount Last Term Amount
Other income 6,058,938.69 5,867,507.90
Notes: None.
X Risks Related to Financial Instruments
The Company's principal financial instruments include equity investment, creditors' investment, borrowing,
accounts receivable, accounts payable, etc. The primary purpose of these financial instruments is to finance the
operations of the Company. The Company has a variety of other financial assets and liabilities directly arising
from its operations, such as accounts receivable and accounts payable.
The main risks caused by the Company's financial instruments are credit risk, liquidity risk and market risk.
(1) Classification of financial instruments
① Book value of various financial assets on the balance sheet date
A. June 30, 2026
Financial assets measured Financial assets measured
Financial assets
Financial asset at fair value and the at fair value and the
measured at Total
items changes recorded in changes recorded in other
amortized cost
current profits and losses comprehensive income
Monetary funds 1,690,131,184.91 1,690,131,184.91
Derivative
financial assets
Accounts
receivables
Other receivables 294,172,448.75 294,172,448.75
Non-Current
Assets Due Within
One Year
Other current
assets
B. December 31, 2025
Financial assets Financial assets
measured at fair measured at fair value
Financial asset Financial assets measured value and the and the changes
Total
items at amortized cost changes recorded in recorded in other
current profits and comprehensive
losses income
Monetary funds 1,821,722,517.08 1,821,722,517.08
Derivative
financial assets
Accounts
receivables
Other receivables 173,257,419.17 173,257,419.17
Non-current assets
due within 1 year
Other current
assets
② Book value of various financial liabilities on the balance sheet date
A. June 30, 2026
Financial liabilities
measured at fair
Financial liability items value and changes Other financial liability Total
included in current
profits and losses
Short-term borrowings 709,701,803.20 709,701,803.20
Derivative financial liabilities 9,953,208.15 9,953,208.15
Accounts payable 74,646,241.83 74,646,241.83
Other Payables 76,606,599.09 76,606,599.09
Other current liability
Long-term borrowings 573,500,000.00 573,500,000.00
Non-current liability due within one year 374,125,000.00 374,125,000.00
B. December 31, 2025
Financial liabilities
measured at fair value and Other financial
Financial liability items Total
changes included in current liability
profits and losses
Short-term borrowings 1,136,260,975.85 1,136,260,975.85
Derivative financial liabilities 3,815,280.00 3,815,280.00
Accounts payable 66,273,857.12 66,273,857.12
Other Payables 62,493,915.38 62,493,915.38
Other current liability 2,125,165.80 2,125,165.80
Long-term borrowings 576,500,000.00 576,500,000.00
Non-current liability due within one year 371,035,213.61 371,035,213.61
(2) Credit Risk
On June 30, 2026, the largest credit risk exposure that may cause financial loss to the Company mainly
comes from the loss on financial assets of the Company due to the failure of the other party to perform its
obligations, including:
Book value of financial assets recognized in the consolidated balance sheet; for a financial instrument
measured at fair value, its book value reflects its risk exposure instead of their biggest risk exposure, and its
biggest risk exposure may vary with the change of its future fair value.
In order to reduce the credit risk, the Company sets relevant policies to control its exposure, sets
corresponding credit periods based on customer’s financial position, possibility of obtaining guarantees from third
parties, credit records and other factors such as current market conditions and other credit qualifications for
customer assessment, and implements other monitoring procedures to ensure that necessary measures are taken to
recover overdue credits. In addition, the Company reviews the collection of individual account receivables on
each balance sheet date in order to make sufficient provision for bad debts for collectable amounts. Therefore, the
Company's management believes that the Company's credit risk has been greatly reduced.
The liquidity funds of the Company are deposited in banks and other financial institutions with high credit
rating, so the credit risk of liquidity funds is low.
(3) Liquidity Risk
When managing liquidity risk, the Company keeps and monitors adequate cash and cash equivalents
approved by its management in order to meet the Company's business needs and reduce the influences of cash
flow fluctuations. The Company's management monitors the use of bank loans and ensures the performance of
loan agreements.
Maturity analysis of financial liabilities in terms of undiscounted contractual cash flows:
June 30, 2026
Item Above Five
Within One Year One To Five Years Total
Years
Short-term borrowings 709,701,803.20 709,701,803.20
Derivative financial
liability
Accounts payable 71,437,244.48 3,208,997.35 74,646,241.83
Other Payables 76,606,599.09 76,606,599.09
Long-term borrowings 573,500,000.00 573,500,000.00
Notes-payable
Non-current liability due
within one year
(Continued)
December 31, 2025
Item One To Five Above Five
Within One Year Total
Years Years
Short-term borrowings 1,136,260,975.85 1,136,260,975.85
Derivative financial liability 3,815,280.00 3,815,280.00
Accounts payable 62,935,403.84 3,338,453.28 66,273,857.12
Other Payables 62,493,915.38 62,493,915.38
Long-term borrowings 576,500,000.00 576,500,000.00
Notes payable
Non-current liability due within
one year
(4) Market risk
Market risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due
to the change of market price. Market risk mainly includes interest rate risk, foreign exchange risk and other price
risks, such as equity instrument investment price risk.
A. Interest Rate Risk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest
rates bring the Company the interest rate risk on cash flow, while the financial liabilities at fixed interest rates
bring the Company the interest rate risk on fair value. The Company decides the relative proportion of fixed
interest rate contracts and floating interest rate contracts according to the current market environment.
As of June 30, 2026, the Company's interest-bearing liabilities under floating rate contracts denominated in
RMB amounted to RMB 80,000,000.00 and those under fixed rate contracts denominated in RMB amounted to
RMB 1,520,500,000.
B. Exchange Rate Risk
The Company's exposure to foreign exchange risks is primarily related to the Company's operating activities
(when revenues and expenditures are settled in foreign currencies other than the Company's accounting standard
currency) and its net investments in its overseas subsidiaries. The Company's exposure to foreign exchange risks
is mainly related to US dollars. Except that some of the Company's subsidiaries purchase and sell in US dollars,
other major business activities of the Company are priced and settled in RMB. As of June 30, 2026, the
Company's assets and liabilities are in RMB, except the assets or liabilities described in the table below are in US
dollars. The foreign exchange risks arising from the assets and liabilities of such foreign currency balances may
have an impact on the Company's operating results.
Items Closing Balance Opening Balance
Monetary funds 26,956,990.16 25,155,525.27
The company adopts sensitivity analysis technology to analyze the possible impact of reasonable and
possible changes of risk variables on current profit and loss or owner's equity. As any risk variable rarely changes
in isolation, and the correlation between variables will have a significant effect on the final impact amount of a
risk variable change, the following content is carried out under the assumption that the change of each variable is
independent.
On the assumption that foreign currency assets and foreign currency liabilities remain relatively stable and
other variables remain unchanged, the after-tax impact of possible reasonable changes in exchange rate on current
profits and losses and rights and interests is as follows:
Ending Foreign
Item Exchange Rate Ending Converted RMB Balance
Currency Balance
Cash and Cash Equivalents —— —— 26,956,990.16
- USD 3,957,918.95 6.8109 26,956,990.16
(Continued)
Current period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
RMB Depreciation vs USD 5% 1,347,849.51 1,347,849.51
Current period
Item [US dollar] Exchange rate Gross profit/net profit Increase/(decrease) in
Increase / (decrease) increase /(decrease) shareholders' equity
RMB Appreciation vs USD -5% -1,347,849.51 -1,347,849.51
(1) The Company undertake risk management through hedging operation
Expected Effects of risk
The economic
Qualitative and effective exposure
Corresponding risk relationship between
quantitative achievement of from the
Item management strategy and the hedged project &
information on risk relevant
target relevant hedged
hedged risk management hedged
instruments
objectives activities
Expected Fair value
Qualitative: or cash flow due to
Using the hedging non-credit risk, the hedged risk of
function of futures including basis risk, hedged project and
instruments to carry out substitute risk, relevant hedging The target of
Oil supply-demand risk instruments move in
hedging business, expected risk Effectively
and etc. opposite direction
effectively avoid the risk management has avoid risk
Oil
of market price Quantitative: By the Changes with been basically exposure
Seeds
fluctuations, in order to market price the same base achieved
achieve stable fluctuation for the variable or similar
management hedged project and base variable that is
instruments economically
relevant
(2) The company conducts eligible hedging business and applies hedging accounting
Hedging Adjustments on
book value of hedged item Effect of hedging
Book value related Hedging validity and
which has been recognized, accounting on the
Item to the hedged Item sources of hedging
in which comprises of company's financial
and instruments invalidity aspect
hedged item accumulated statements
fair value
Hedging Risk Type
Commodity The correlation
price risk - between the hedged
Other current items and hedging
assets instruments
Hedge category
Fair value The correlation
hedge - between the hedged
Derivative items and hedging
financial assets instruments
Fair value -50,074,040.14
hedge -
Derivative 9,953,208.15
financial
liabilities
XI Disclosure of Fair Values
Fair Values at the End of the Period
Item First Level Fair Second Level Third Level
Value Fair Value Fair Value Total
Measurement Measurement Measurement
One. Continuous fair value measurement
Ⅰ. Transactional financial assets 90,224,906.07 90,224,906.07
value and whose changes are included in the
current profits and losses 90,224,906.07 90,224,906.07
(1) Investment in debt instruments
(2) Investment in equity instruments
(3) Derivative financial assets 27,829,740.00 27,829,740.00
(4) Other current assets 62,395,166.07 62,395,166.07
through profit or loss
(1) Investment in debt instruments
(2) Investment in equity instruments
Ⅱ. Other debt investment
Ⅲ. Investment in other equity instruments
IV. Investment Properties
V. Biological Assets
Total assets continuously measured at fair
value
Ⅵ.Transactional financial liabilities 9,953,208.15 9,953,208.15
with changes included in current profits and 9,953,208.15 9,953,208.15
losses
Including: transactional bonds issued
derivative financial liabilities 9,953,208.15 9,953,208.15
other current liabilities
others
value through profit or loss
Total liabilities continuously measured at
fair value
measurement items
The Company's Level 1 fair value measurement is based on the public contract quotations of the futures
exchange.
XII Related Parties and Related Party Transactions
Registered Proportion of Proportion of Voting
Name of Parent Registered Nature of Capital Shares Held by Power Held by
Company Place Business (ten thousand Parent Company in Parent Company in
Yuan) the Company (%) the Company (%)
Beijing Grain Investment
Beijing 90,000.00 39.68 39.68
Group Co. Ltd. Management
Note: The ultimate controlling party is Beijing State-owned Capital Operation Management Co.,Ltd.
See 1. Equity in Subsidiaries under Section VIII of the Notes for details.
See 2. Equity in Joint Ventures or Associates under Section VIII of the Notes for details.
Name of Other Related Party Relationship with the Company
Beijing Grain Science Research Institute Co., Ltd. Controlled by the ultimate controlling party
Shanghai Shounong Investment Holding Co., Ltd. Controlled by the ultimate controlling party
Beijing Baijia Yi Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Ershang Dahongmen Wurou Lian Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Ershang Jinghua Tea Industry Co., Ltd. Controlled by the ultimate controlling party
Beijing Ershang Meat Products Group Co., Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Rice Industry Co., Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Hepingmen Vegetable Market Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Dongfang Grain and Oil Trading Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Gurun Trade, Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Taiyu Real Estate Co., Ltd. Controlled by the ultimate controlling party
Beijing Lanfeng Vegetable Distribution Co., Ltd. Controlled by the ultimate controlling party
Beijing Liubiju Huairou Food Co., Ltd. Controlled by the ultimate controlling party
Name of Other Related Party Relationship with the Company
Beijing Liubiju Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Nanjiao Agricultural Production and Operation Management
Controlled by the ultimate controlling party
Co., Ltd.
Beijing Farm Produce Central Wholesale Market Co., Ltd. Controlled by the ultimate controlling party
Beijing Sanjiadian Grain Storage Co., Ltd. Controlled by the ultimate controlling party
Beijing Sanyuan Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Guchuan Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Shenghua Sihé Asset Management 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 Haijun Xing Aquatic Products Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Longqing Xiadu Military Food Supply Co., Ltd. Controlled by the ultimate controlling party
Beijing Nanjiao Heyi Farm Co., Ltd. Controlled by the ultimate controlling party
Beijing Food Supply Bureau No. 34 Supply Department Co., Ltd. Controlled by the ultimate controlling party
Beijing Zhangxin Grain Storage Co., Ltd. Controlled by the ultimate controlling party
Beijing Shoucheng Shanshui Real Estate Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Animal Husbandry Development Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Development Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Food Group Finance Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Food Group Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Consumption Assistance and Double Innovation
Controlled by the ultimate controlling party
Center Co., Ltd.
Beijing Aquatic Products Group Co., Ltd. Controlled by the ultimate controlling party
Beijing Taiyu Property Management Co., Ltd. Controlled by the ultimate controlling party
Beijing Wuhuan Shuntong Supply Chain Management Co., Ltd. Controlled by the ultimate controlling party
Hebei Anping Dahongmen Food Co., Ltd. Controlled by the ultimate controlling party
Hebei Luanping Huadu Food Co., Ltd. Controlled by the ultimate controlling party
Hebei Shounong Modern Agricultural Technology Co., Ltd. Controlled by the ultimate controlling party
Huai'an Jingliang Lvgu Food Co., Ltd Controlled by the ultimate controlling party
Shanghai Sanyuan Dairy Co., Ltd Controlled by the ultimate controlling party
Tongliao Dacang Grain Trading Co., Ltd Controlled by the ultimate controlling party
China Meat Products Research Center Controlled by the ultimate controlling party
Beijing Changyang Farm Co., Ltd. Controlled by the ultimate controlling party
Beijing Nankou Farm Co., Ltd. Controlled by the ultimate controlling party
Chengde Sanyuan Co., Ltd. Controlled by the ultimate controlling party
Name of Other Related Party Relationship with the Company
Beijing ER SHANG Group Co., Ltd. Controlled by the ultimate controlling party
Beijing Maisui Hotel Management Co., Ltd. Controlled by the ultimate controlling party
Chengde Sanyuan Xiaoya Cow Breeding Co., Ltd. Controlled by the ultimate controlling party
Beijing Ailafa Food Co., Ltd. Controlled by the ultimate controlling party
Wang Zhihé (Fujian) Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Beifang Jingtang Yangjiu Sales Co., Ltd. Controlled by the ultimate controlling party
Beijing Diandao Online Sales Co., Ltd. Controlled by the ultimate controlling party
Kaifeng Dahongmen Meat Products Co., Ltd. Controlled by the ultimate controlling party
Beijing Xing Shishang Trading Co., Ltd. Controlled by the ultimate controlling party
Beijing Xinderun Hotel Management Co., Ltd. Controlled by the ultimate controlling party
Beijing Taoshan Grain Storage Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingshen Seafood Sales Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingtang Dingsheng Trading Co., Ltd. Controlled by the ultimate controlling party
Beijing Shuangtong Huihe Agricultural Technology Development Co.,
Controlled by the ultimate controlling party
Ltd.
Beijing Shounong Commercial Chain Co., Ltd. Controlled by the ultimate controlling party
Beijing Grain Group Co., Ltd. Controlled by the ultimate controlling party
Beijing Huanong Materials Company Controlled by the ultimate controlling party
Beijing Beijiao Farm Co., Ltd. Controlled by the ultimate controlling party
Beijing Changhua Property Service Center Co., Ltd Controlled by the ultimate controlling party
Beijing Sanyuan Meiyuan Food Co., Ltd Controlled by the ultimate controlling party
Beijing Jingliang Logistics Co., Ltd. Controlled by the ultimate controlling party
Beijing Jingliang Green Valley Trading Co., Ltd. Controlled by the ultimate controlling party
Beijing Cailanzi Group Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Xiangshan Conference Center Co., Ltd. Controlled by the ultimate controlling party
Beijing Sidaokou Aquatic Products Trading Market Co., Ltd Controlled by the ultimate controlling party
Beijing Capital Agribusiness Electronic Commerce Technologies Co.,
Controlled by the ultimate controlling party
Ltd.
Beijing Huayu Foodstuff Co., Ltd. Controlled by the ultimate controlling party
Beijing Heiliu Animal Husbandry Technology Co., Ltd. Controlled by the ultimate controlling party
BeiJing HuaDu SunLing Food Co., Ltd. Controlled by the ultimate controlling party
Beijing Shounong Zhongzhou International Supply Chain Management
Controlled by the ultimate controlling party
Co., Ltd.
Beijing Southwest Suburb Food Supply Chain Management Co., Ltd. Controlled by the ultimate controlling party
Shandong Fukuan Bioengineering Co., Ltd. Controlled by the ultimate controlling party
Name of Other Related Party Relationship with the Company
Beijing Dahongmen Jingshen Seafood Wholesale Market Co., Ltd. Controlled by the ultimate controlling party
Beijing Beishui Jialun Aquatic Products Market Co., Ltd. Controlled by the ultimate controlling party
Tianjin Sunlon Dongjiang Animal Husbandry Co., Ltd. Controlled by the ultimate controlling party
(1) Related-party transactions for purchasing and selling goods and provision and acceptance of labor
services
Purchase of goods or acceptance of labor services
Amount of transactions Whether the
Related-party Current Last Term
Related Party approved（in ten transaction limit
Transaction Amount Amount
thousands Yuan） is exceeded
Beijing Guchuan Purchase of
Food Co., Ltd. goods
Other related Purchase of
entities goods
Beijing Grain
Acceptance of
Science Research 405,478.53 1,500.00 No 0.00
labor services
Institute Co., Ltd.
Other related Acceptance of
entities labor services
Sale of goods/ provision of labor services
Related-party Current Last Term
Related Party
Transaction Amount Amount
Beijing Baijia Yi Food Co., Ltd. Sale of goods 513,853.22 741,385.30
Beijing Ershang Meat Food Group Co., Ltd. Sale of goods 79,334.30 321,977.01
Beijing Guchuan Rice Industry Co., Ltd. Sale of goods 88,969.38 3,546,374.75
Beijing Guchuan Food Co., Ltd. Sale of goods 363,067.67 162,957.15
Beijing Hepingmen Vegetable Market Co., Ltd. Sale of goods 242,347.88 0.00
Beijing Jingliang Dongfang Grain and Oil Trading Co.,
Sale of goods 1,336,509.86 720,249.19
Ltd.
Beijing Liubiju Huairou Food Co., Ltd. Sale of goods 0.00 4,474,697.25
Beijing Farm Produce Central Wholesale Market Co.,
Sale of goods 521,871.56 574,128.44
Ltd.
Beijing Sanyuan Seed Industry Technology Co., Ltd. Sale of goods 25,134,412.59 23,025,573.84
Beijing Haidian Xijiao Grain and Oil Supply Station Co.,
Sale of goods 1,222,477.07 662,935.77
Ltd.
Beijing Food Supply Bureau No. 34 Supply Department
Sale of goods 705,729.31 1,067,370.93
Co., Ltd.
Beijing Zhangxin Grain Storage Co., Ltd. Sale of goods 90,825.69 638,444.95
Beijing Shounong Animal Husbandry Development Co.,
Sale of goods 3,186,767.41 3,439,590.99
Ltd.
Related-party Current Last Term
Related Party
Transaction Amount Amount
Beijing Shounong Consumption Assistance and Double
Sale of goods 6,218,405.51 5,644,660.53
Innovation Center Co., Ltd.
Beijing Wuhuan Shuntong Supply Chain Management
Sale of goods 2,654,821.94 1,686,159.79
Co., Ltd.
Hebei Anping Dahongmen Food Co., Ltd. Sale of goods 590,366.96 0.00
Hebei Luanping Huadu Food Co., Ltd. Sale of goods 28,794,487.87 42,834,513.38
Hebei Shounong Modern Agricultural Technology Co.,
Sale of goods 7,815,756.04 7,038,976.91
Ltd.
Shanghai Shounong Investment Holding Co., Ltd. Sale of goods 0.00 10,188,510.75
Other related entities Sale of goods 1,073,526.21 990,067.92
Shanghai Shounong Investment Holding Co., Ltd. Provision of services 458,919.72 1,488,720.68
Other related entities Provision of services 427,462.05 10,511.42
Explanation of the purchase and sale of goods, provision, and receipt of services: The transaction prices are
based on the prices charged for the same or similar business activities between unrelated parties.
(2) Related-party lease
If the Company is the lessee
Rental cost of simplified treatment of Variable lease payment not included in
Type of short-term lease and low-value lease asset the calculation of lease liabilities
Name of Lessor Leased Lease Expense Lease Expense Lease Expense Lease Expense
Asset Recognized in the Recognized in the Recognized in the Recognized in the
Current Period Prior Period Current Period Prior Period
Beijing Municipal
House
Grain Research 2,152,926.76 0.00
leasing
Institute Co.,Ltd
Beijing Grain House
Group Co.,Ltd leasing
Beijing Shounong
Food Emergency
Oil tank 2,153,333.33 1,378,150.02
Security Center
Co.,Ltd
(Continued)
Interest expense
Payment of rent Increase in right-of-use assets
on lease liabilities
Name of
Lease Lease Lease
Lessee Lease Expense Lease Expense Lease Expense
Expense Expense Expense
Recognized in Recognized in Recognized in
Recognized in Recognized in Recognized
the Current the Prior the Prior
the Current the Current in the Prior
Period Period Period
Period Period Period
Interest expense
Payment of rent Increase in right-of-use assets
on lease liabilities
Name of
Lease Lease Lease
Lessee Lease Expense Lease Expense Lease Expense
Expense Expense Expense
Recognized in Recognized in Recognized in
Recognized in Recognized in Recognized
the Current the Prior the Prior
the Current the Current in the Prior
Period Period Period
Period Period Period
Beijing
Municipal
Grain
Research
Institute
Co.,Ltd
Beijing Grain
Group Co.,Ltd
Beijing
Shounong
Food
Emergency
Security
Center
Co.,Ltd
(3) Remuneration for key management staff
Current Amount Last Term Amount
Item
(Unit: Ten thousand yuan, RMB) (Unit: Ten thousand yuan, RMB)
Remuneration for Key Management Staff 146.14 215.22
(4) Other Related-party Transactions
Guaranteed Party Related-party Transaction Current Amount Last Term Amount
Beijing Shounong Food Group Finance Co.,Ltd Interest income 4,849,425.43 3,062,947.99
Beijing Shounong Food Group Finance Co.,Ltd Interest expense 7,528,369.45 1,416,388.89
Beijing Grain Group Co., Ltd. Sale of Trademark 0.00 25,235,377.36
(1) Receivables
Closing Balance Opening Balance
Item Related-party Provision Provision
Book Balance for Bad Book Balance for Bad
Debts Debts
Monetary Beijing Shounong Food Group
funds Finance Co.,Ltd
Receivables Beijing Bai Jiayi Food Co.,Ltd 60,000.00 102,580.00
Closing Balance Opening Balance
Item Related-party Provision Provision
Book Balance for Bad Book Balance for Bad
Debts Debts
Beijing Ershang Meat Food
Receivables 9,750.00 13,830.00
Group Co., Ltd.
Receivables Beijing Gushun Foods Co.,Ltd 8,702.00 13,202.00
Beijing Jingliang Dongfang
Receivables 22,000.00 125,200.00
Grain and Oil Trading Co.,Ltd
Beijing Lanfeng Vegetable
Receivables 18,000.00 0.00
Distribution Co.,Ltd
Receivables Beijing Grain Group Co., Ltd. 12,847,737.37 12,847,737.37
Beijing Nanjiao Agricultural
Receivables Production and Operation 1,800.00 0.00
Management Co., Ltd.
Beijing Sanyuan Seed Industry
Receivables 4,846,865.89 1,887,834.11
Technology Co., Ltd.
Beijing Haidian Xijiao Grain
Receivables 333,700.00 316,800.00
and Oil Supply Station Co., Ltd.
Beijing Shounong Animal
Receivables Husbandry Development Co., 1,174,110.86 426,725.84
Ltd.
Beijing Shounong Food Group
Receivables 1,660.00 0.00
Co., Ltd.
Beijing Taiyu Property
Receivables 12,869.00 0.00
Management Co., Ltd.
Beijing Wuhuan Shuntong
Receivables Supply Chain Management 428,964.00 67,680.00
Co.,Ltd
Hebei Anping Dahongmen Food
Receivables 292,500.00 565,500.00
Co., Ltd.
Hebei Luanping Huadu Food
Receivables 16,264,501.42 22,348,359.23
Co.,Ltd
Hebei Shounong Modern
Receivables 1,396,643.76 0.00
Agriculture Technology Co.,Ltd
Receivables Beijing Sanyuan Foods Co., Ltd. 0.00 19,235.00
Beijing Zhangxin Grain Reserve
Receivables 0.00 367,175.00
Co.,Ltd
Other Beijing Grain Science Research
receivables Institute Co., Ltd.
Beijing Shounong Consumption
Other
and Poverty Alleviation Double 20,000.00 20,000.00
receivables
Creation Center Co.,Ltd
Beijing Ershang Dahongmen
Prepayment 27,540.00 27,540.00
Wuroulian Food Co., Ltd.
(2) Payables
Item Related-party Closing Balance Opening Balance
Item Related-party Closing Balance Opening Balance
Payables Beijing Ershang Meat Products Group Co., Ltd. 20,580.53 0.00
Payables Beijing Guchuan Food Co., Ltd. 879,130.82 746,826.11
Payables Beijing Huayu Foodstuff Co., Ltd. 40.00 0.00
Beijing Capital Agribusiness Electronic Commerce
Payables 38,114.00 0.00
Technologies Co., Ltd.
Contract liability Beijing Diandao Online Sales Co., Ltd. 0.18 0.18
Contract liability Beijing ER SHANG Group Co., Ltd. 1,760.00 0.00
Contract liability Beijing Jingliang Taiyu Real Estate Co., Ltd. 1,720.00 7,740.00
Contract liability Beijing Grain Group Co., Ltd. 326,348.00 356,648.00
Contract liability Beijing Shoucheng Shanshui Real Estate Co., Ltd. 33,620.00 6,750.00
Contract liability Beijing Shounong Development Co., Ltd. 22,040.00 24,190.00
Other payables Beijing ER SHANG Group Co., Ltd. 210.00 210.00
Beijing Jingliang Dongfang Grain and Oil Trading Co.,
Other payables 7,684.48 7,684.48
Ltd.
Other payables Beijing Grain Group Co., Ltd. 851,959.45 543,047.81
Beijing Wuhuan Shuntong Supply Chain Management
Other payables 7,841.96 7,841.96
Co., Ltd.
XIII Share based payment
The company does not have any share-based payments that need to be disclosed.
XIV Commitments and Contingencies
As of the end of this reporting period, the company and its subsidiaries have an approved guarantee quota of
yuan, which accounts for 24.26% of the company's latest audited net assets attributable to the parent company. All
these guarantees are between the company and its subsidiaries. The company and its subsidiaries do not provide
guarantees for entities outside the consolidated financial statements.
XV Events after the Balance Sheet Date
There are no post-balance sheet events that require disclosure during this reporting period.
XVI Other Important Matters
Pension Plan Overview: The companies under the group, including Beijing Jingliang Food Co., Ltd.,
Jingliang (Tianjin) Grain and Oil Industry Co., Ltd., Beijing Guchuan Oil Co., Ltd., Beijing Aisen Greenbao Oil
Co., Ltd., Beijing Jingliang Oils Co., Ltd., Beijing Guchuan Bread and Food Co., Ltd., and Beijing Tianweikang
Oil Adjustment Center Co., Ltd., participate in the pension plan of Beijing Shounong Food Group Co., Ltd. Each
company has established its own implementation rules for the pension plan. The pension plan is named "The
Enterprise Pension Plan of Beijing Shounong Food Group Co., Ltd.". The trustee is Ping An Pension Insurance
Co., Ltd., the account manager is Bank of Communications Co., Ltd., and the custodian is CITIC Bank Co., Ltd.
(1) Basis of determination and accounting policies for reporting of divisions
The Company's businesses consist of food processing, oil and grease and so on according to its internal
organizational structure, management requirements and internal reporting system. The Company's management
regularly evaluates the operating results of these divisions to determine the allocation of resources to them and
evaluate their performance. The information reported by divisions should be disclosed according to the accounting
policies and measurement standards adopted by such divisions when they are reporting to the management. These
measurement bases should be consistent with the accounting and measurement bases for preparation of financial
statements.
(2) Reporting of the financial information of divisions
Item Food Processing Oil & Grease Offset Among Divisions Total
Operating Income 328,195,920.88 2,786,730,800.63 3,114,926,721.51
Operating Costs 264,216,337.63 2,675,743,579.73 2,939,959,917.36
Total Assets 1,267,580,883.10 4,030,541,017.31 402,051,257.60 5,700,173,158.01
Total Liabilities 282,847,915.67 1,794,941,929.54 402,051,257.60 2,479,841,102.81
XVII Notes to Main Financial Statement Items of Parent Company
Item Closing Balance Opening Balance
Interest receivable
Dividends receivable
Other receivables 945,263,055.56 930,000,000.00
Total 945,263,055.56 930,000,000.00
(1) Other Receivables
A. Disclosed according to aging
Aging Closing Balance Opening Balance
Within 1 Year 945,263,055.56
Total 945,263,055.56 930,000,000.00
B. Classification of other receivables by nature of funds
Nature of Funds Book Balance at End of Period Book Balance at Beginning of Year
Intercourse Funds of Entities 945,263,055.56 930,000,000.00
Total 945,263,055.56 930,000,000.00
C. Other receivables according to top five of balance at end of period collected by debtors
Proportion in overall Closing
Balance at End Nature of
Name of Organization Closing Balance of Aging Balance of bad
of Period Funds
other receivables (%） debt reserves
Beijing Jingliang Food Co., Within 1
Ltd. year
Jingliang (Beijing) Within 1
Bakery&Foods Co., Ltd. year
Total 945,263,055.56 100.00 —— ——
Ending Balance Beginning Balance
Item Provision for Provision for
Book Balance diminution in Book Balance Book Balance diminution in Book Balance
value value
Investment in
subsidiaries
Total 2,442,399,283.19 2,442,399,283.19 2,442,399,283.19 2,442,399,283.19
(1) Investment in subsidiaries
Closing
Current
Balance of
Current Current Provision
Invested Entity Opening Balance Closing Balance Provision
Increase Decrease for
for
Impairment
Impairment
Beijing Jingliang Food
Co., Ltd.
Zhejiang little prince
Food Co., Ltd
Jingliang (Caofeidian)
Agricultural 25,500,000.00 25,500,000.00
Development Co., Ltd.
Jingliang (Beijing)
Bakery&Foods Co., 90,100,000.00 90,100,000.00
Ltd.
Jingliang (Yangpu)
Grain and Oil Industry 26,000,000.00 26,000,000.00
Co., Ltd.
Total 2,442,399,283.19 2,442,399,283.19
(1) Details of operating income and operating costs
Current Amount Last Term Amount
Item
Income Cost Income Cost
Other businesses 400,910.09 169,130.82 561,810.67 169,130.82
Total 400,910.09 169,130.82 561,810.67 169,130.82
Item Current Amount Last Term Amount
Long term equity investment income calculated by
cost method
Investment income from disposal of long-term
equity investments
Total 86,434,733.13
XVIII Supplementary Information
Item Amount Note
Non-current asset disposal gains and losses, including the reversal of asset impairment
provisions
Government subsidies recognized in the current period but not closely related to normal
business operations, and those that have a continuous impact on the company's profit and 1,666,463.99
loss
Fair value changes of financial assets and liabilities held by non-financial enterprises, as
well as gains and losses from the disposal of financial assets and liabilities, excluding
effective hedging activities related to the company's normal business operations
Occupation fees for funds collected from non-financial enterprises
Profit or loss on entrusting others to invest or manage assets
Profit or loss from external entrusted loans
Loss of assets due to force majeure, such as natural disasters
Reversal of impairment charges for receivables that are tested separately for impairment
The investment cost of the subsidiary, associate and joint venture is less than the income
generated by the fair value of the investee's identifiable net assets when the investment is
obtained
Net profit or loss for the period from the beginning of the period to the date of
consolidation of subsidiaries arising from a business combination under the same control
Debt restructuring gains and losses
One-time expenses incurred by the enterprise due to the cessation of relevant business
activities, such as expenses for the placement of employees, etc
One-time impact on profit or loss for the current period due to adjustments to laws and
regulations such as taxation and accounting
Profit or loss arising from contingencies unrelated to the normal operation of the
company
Custody fee income obtained from entrusted operations
Item Amount Note
Other non-operating income and expenses other than those listed above -62,695.20
Other profit or loss items that meet the definition of non-recurring profit or loss
Less: Income tax impact 421,808.67
Impact of Minority Interest (After-Tax) 172,664.91
Total 1,302,749.72
Weighted Average Earnings Per Share
Report Period Profit
Return on Equity（%） Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders of the
company
Deducting non-recurring gains and losses, net profit
attributable to ordinary shareholders of the company
Hainan Jingliang Holdings Co., Ltd.
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