HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2018
March 2019
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 HAINAN JINGLIANG HOLDINGS CO., LTD.
ANNUAL REPORT 2018
Part I Important Notes
This Summary is based on the full text of the 2018 Annual Report of Hainan Jingliang Holdings Co., Ltd. (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). InorderforafullunderstandingoftheCompany’soperatingresults,financialpositionandfuturedevelopmentplans, investorsshouldcarefullyreadtheaforesaidfulltext,whichhasbeendisclosedtogetherwiththisSummaryonthe mediadesignatedbytheChinaSecuritiesRegulatoryCommission(the“CSRC”).
AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Independentauditor’smodifiedopinion:
□Applicable√Notapplicable
Board-approvedfinalcashand/orstockdividendplanforordinaryshareholdersfortheReportingPeriod:
□Applicable√Notapplicable
TheCompanyhasnofinaldividendplan,eitherintheformofcashorstock.
Board-approvedfinalcashand/orstockdividendplanforpreferredshareholdersfortheReportingPeriod:□Applicable√Notapplicable
This Summary has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Part II Key Corporate Information
1.StockProfile
||||||
|-|-|-|-|-|
|Stockname|JLKG,JL-B|Stockcode||000505,200505|
|Stockexchangeforstocklisting|ShenzhenStockExchange||||
|Usedstockname(ifany)|PearlRiverA,PearlRiverB||||
|Contactinformation|BoardSecretary||SecuritiesRepresentative||
|Name|ZhaoYinhu||||
|Address|JingLiangBuilding,NO.16EastThirdRingMiddleRoad,ChaoyangDistrict,Beijing||||
|Fax|010-51672010||||
|Tel.|010-51672029||||
|Emailaddress|593374748@qq.com||||

2.PrincipalActivitiesorProductsintheReportingPeriod
The Company is principally engaged in oils and oilseeds processing and trading, as well as food production. It
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 runs its oils and oilseeds processing and trading business primarily in Beijing City, Tianjin City and Hebei Provinceunderthebrandsof“GuChuan”,“LvBao”,“GuBi”,“HuoNiao”and“TianYi”,withthemainproducts being soybean oil, rapeseed oil, sunflower seed oil and sesame oil and paste, among others. As for its food productionbusiness,itprimarilydevelops,producesandmarkets snackfoodandbreadunderthebrandsof“Little Prince”,“MS Dong”, “JianqiangDeTudou”and“Gu Chuan”, amongothers, with themain products beingpotato chips,cakesandpastriesandbread.
In 2018, as the China-U.S. trade war escalated, the Company turned to Brazil for the procurement of the major raw materials for its oils and oilseeds division. This supply source from Brazil, with strong seasonality, a long transportation distance and unstable quality, caused a considerable rise in cost of sales. Therefore, the oils and oilseeds division took the initiative to adjust operating strategies, gave play to its industrial chain advantage, and strengthened every link of the industrial china, so as to offset the hit by the trade war. For 2018, the oils and oilseeds division recorded main operating revenue of RMB6.472 billion and a profit before tax of RMB131 million,approximatelyflatwithlastyear.
2018sawthe rising prices ofraw andauxiliary materials, as wellas afiercer end-marketcompetition inthe snack food industry. The Company primarily competes with Orion, Dali Foods,Lay’s and Oishi in the areas of fried potato chips, non-fried potato chips and puffed potato sticks. On the non-fried potato chips market, subsidiary Xiaowangzi is the second largest brand next to Orion, and the largest brand in the separate package and bulk segments, with great market potentials. The snack food business adhered to the “Differentiated Asymmetric Competition Strategy”, deepened the model of “Professional Production+ Cultural Creativity+ Internet”, as well as implemented quality product and product transition strategies. As a result, for 2018, the snack food business reported operating revenue of RMB817 million, up5.87% year-on-year; and a profit before tax of RMB151 million, representing a13.07% growth as compared to last year. Meanwhile, thanks to greater efforts in other cities and product development, as well as the proactive efforts in expanding retail channels, the breadprocessingbusinesspostedoperatingrevenueofRMB77.26million,up26.86%year-on-year.
3.KeyFinancialInformation
(1)KeyFinancialInformationofthePastThreeYears
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
Unit:RMB
||||||
|-|-|-|-|-|
||2018|2017|2018-over-2017change(%)|2016|
|Operatingrevenue|7,409,124,303.41|7,917,639,044.13|-6.42%|8,723,491,657.31|
|Net profit attributable to the listedcompany’sshareholders|167,956,581.15|129,603,167.36|29.59%|197,319,239.01|
|Net profit attributable to the listedcompany’s shareholders beforeexceptionalitems|127,425,177.20|63,818,849.21|99.67%|-72,109,287.22|
|Net cash generated from/used inoperatingactivities|850,167,551.24|-1,379,507,779.66|161.63%|948,330,160.14|
|Basicearningspershare(RMB/share)|0.24|0.2|20.00%|0.31|
|Dilutedearningspershare(RMB/share)|0.24|0.2|20.00%|0.31|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||||
|-|-|-|-|-|
|Weightedaveragereturnonequity(%)|7.69%|5.01%|2.68%|6.96%|
||31December2018|31December2017|Changeof31December2018over31December2017(%)|31December2016|
|Totalassets|4,917,148,996.28|6,082,383,851.23|-19.16%|5,007,343,324.00|
|Equity attributable to the listedcompany’sshareholders|2,272,469,925.43|2,101,342,683.37|8.19%|1,383,081,876.55|

(2)KeyFinancialInformationbyQuarter
Unit:RMB
||||||
|-|-|-|-|-|
||Q1|Q2|Q3|Q4|
|Operatingrevenue|1,866,527,190.78|1,773,098,788.63|1,899,805,985.97|1,869,692,338.03|
|Net profit attributable to the listedcompany’sshareholders|31,041,912.71|28,877,082.97|42,345,394.93|65,692,190.54|
|Net profit attributable to the listedcompany’s shareholders beforeexceptionalitems|29,930,951.86|27,428,084.65|42,526,321.21|27,539,819.48|
|Net cash generated from/used inoperatingactivities|671,468,699.31|-625,774,156.43|373,889,151.61|430,583,856.75|

Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differsmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
4.ShareCapitalandShareholderInformationatthePeriod-End
(1) Numbers ofOrdinary Shareholders and PreferredShareholders withResumed Voting Rights as wellas HoldingsofTop10Shareholders
Unit:share
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Number ofordinaryshareholders attheperiod-end|38,776|Number ofordinaryshareholders atthe month-endprior to thedisclosure of thisReport||37,224||Number ofpreferredshareholderswith resumedvoting rights attheperiod-end||0||Number of preferredshareholders withresumed votingrights at themonth-end prior tothedisclosure of thisReport||0|
|Top10shareholders|||||||||||||
|Nameofshareholder|||Natureofshareholder||Shareholdingpercentage||Totalsharesheldattheperiod-end||Restrictedsharesheld||Sharesinpledgeorfrozen||
||||||||||||Status|Shares|
|BEIJINGGRAINGROUPCO.,LTD.|||State-ownedlegalperson||42.06%||288,439,561||164,877,598||||
|BEIJINGSTATE-OWNEDCAPITALOPERATIONANDMANAGEMENTCENTER|||State-ownedlegalperson||7.07%||48,510,460||48,510,460||||
|CHINADEVELOPMENTBANKCAPITALCO.,LTD.|||State-ownedlegalperson||3.33%||22,828,451||0||||
|LISHERYNZHANMING|||Foreignnaturalperson||3.21%||22,002,700||0||||
|GOLDBUFFALORUNYING(TIANJIN)EQUITYINVESTMENTFUNDMANAGEMENTCO.,LTD.—GOLDBUFFALORUNYING(TIANJIN)EQUITYINVESTMENTFUND(L.P.)|||Other||3.20%||21,972,451||0||||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||||
|-|-|-|-|-|
|MEIJIANYING|Domesticnaturalperson|0.38%|2,604,203|0|
|HUTIANGAO|Domesticnaturalperson|0.36%|2,436,052|0|
|DONGYANGHENGDIANGUARANTYCO.,LTD.|Domesticnon-state-owned legalperson|0.32%|2,204,976|0|
|WANGDAO|Domesticnaturalperson|0.31%|2,145,100|0|
|ZHANGXIAOXIA|Domesticnaturalperson|0.28%|1,949,250|0|
|Related or acting-in-concert parties among theshareholdersabove||Beijing State-Owned Capital OperationAnd Management Center owns 100% ofBeijingGrainGroupCo.,Ltd.,andBeijingGrainGroupCo.,Ltd.isashareholderoftheCompany(a42.06%holding).Apartfromthat,theCompanydoesnotknowwhether thereare any other related parties oracting-in-concert parties among thetop10shareholders.|||
|Shareholders involved in securities margintrading(ifany)||1.ShareholderWangXiaoxingholds1,776,000sharesintheCompanythroughhisaccountofcollateralsecuritiesformargintradinginSoochowSecuritiesCo.,Ltd.2. Shareholder Hu Tiangao holds 338,000 shares in the Company through hisaccountofcollateralsecuritiesformargintradinginZheshangSecuritiesCo.,Ltd.,and2,098,052sharesintheCompanythroughhisordinarysecuritiesaccount.|||

 (2)NumberofPreferredShareholdersandShareholdingsofTop10ofThem
□Applicable√Notapplicable
NopreferredshareholdersintheReportingPeriod.
(3)OwnershipandControlRelationsbetweentheActualControllerandtheCompany
TheState-OwnedAssetsSupervisionandAdministration
CommissionofthePeople’sGovernmentofBeijingMunicipality
100%
BeijingState-OwnedCapitalOperationandManagementCenter
100%
BeijingCapitalAgribusinessGroupCo.,Ltd.
100%
BeijingGrainGroupCo.,Ltd.
42.06%
HainanJingliangHoldingsCo.,Ltd.
5.CorporateBonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?
No.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Part III Operating Performance DiscussionandAnalysis
1.BusinessOverviewoftheReportingPeriod
IstheCompanysubjecttoanyindustry-specificdisclosurerequirements?
No.
(1)OverallPerformance
In face of the generally weak market and industry in 2018, the Company pursued progress amid stability. For the year under review, the Company recorded operating revenue of RMB7.409 billion, with a profit before tax of RMB277 million and earnings per share of RMB0.24. By operating division, the oils and oilseeds division reported main operating revenue of RMB6.472 billion with a profit before tax of RMB131 million; and the food processing division posted operating revenue of RMB891 million with a profit before tax of RMB155 million. Beijing Jingliang Food Co., Ltd., a swapped-in asset in a major asset restructuring, registered main operating revenue of RMB7.409billion, a profit before tax ofRMB297 million and a net profit attributable to the Company astheparentbeforeexceptionalitemsofRMB164million,fulfillingits2018annualprofitcommitment.
(2)MajorResultsAchieved
A.StableandSmoothOperationofOilsandOilseedsDivision
In 2018, the Sino-US trade frictioncontinuedto escalate,and theCompany began to purchasemost raw materials from Brazil. The costs of the Company in operating increased significantly because of the Braziliansoybeans’ limited supplying season, wide quality range and storage difficulty. Therefore, the oils and oilseeds division took theinitiativetoadjustoperatingstrategies, gave playtoits industrialchainadvantage, andstrengthenedevery link of the industrial china, so as to offset the hit by the trade war. For 2018, the oils and oilseeds division recorded main operating revenue of RMB6.472 billion and a profit before tax of RMB131 million, approximately flat with last year. Firstly, the platform effecthas gradually appeared. In terms of the oils and oilseeds division,five major platforms have been established to effectively integrate various resources and improve the efficiency, including Risk Control andR&D, Operation of Stocks, Import and Export Trade, Production Management and Product Marketing. Under the impact of the Sino-US trade war, the five major platforms can supporteach other and share various information in order to maximally mitigate the tradewar’s impact on various enterprises specialized in oilseed squeezing. For example, Jingliang Tianjin is capable of squeezing soybeans over 1 million tons in a year with a profit before tax of RMB30.61 million. Secondly, the structure of small-packed products has been continuously optimized. As the sales volume of high value-added oils including sunflower oil, linseed oil, olive oil, non-GMO soybean oil increases11%, the sales accounts for over50% for the first time; the sales volume of ordinary soybean oils with relatively low gross profit rate declines15% on the year-on-year basis. However, the adjustment of product structure directly improves the operating benefits, and the profit created by small-packed oils haslargelyincreasedwhencomparedto thatlastyear. Thirdly, the tradebusinesshasmade asteadyprogress. In terms of the oils and oilseeds trade, the future transaction and the stock transaction are combined and the researchonthemarketisstrengthenedbyusinginnovativemanagementmeanstofendoffvariousoperatingrisks. As aresult,theannualsales ofoilsandoilseedsreached470,000tonswith thesalesrevenue ofRMB2billion and aprofitbeforetaxofRMB32.7million.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 B.TheSteady-stateGrowthoftheFoodDivision
In 2018, the food processing division recorded main main operating revenue of RMB891 million with theyear-on-yeargrowthof7.47%andaprofitbeforetaxofRMB155millionwiththeyear-on-yeargrowthof13.60% in the case of continuous influx of strategic competitors and the increased competition in the terminal market, remaining a steady development momentum. The snack foodbusiness adheredto the “Differentiated Asymmetric Competition Strategy”, deepened the model of “Professional Production+ Cultural Creativity+ Internet”, as well as implemented quality product and product transition strategies. As a result, for 2018, the snack food business reported operating revenue of RMB816 million, up5.87% year-on-year; and a profit before tax of RMB151 million, representing a13.07% growth as compared to last year. Meanwhile, thanks to greater efforts in other cities and product development, as well as the proactive efforts in expanding retail channels, the breadprocessingbusinesspostedoperatingrevenueofRMB77.26million,up26.86%year-on-year.
C.SteadyDevelopmentofLandRestorationBusiness
In 2018, No. 1 Document of the Central Committee of the Communist Party of China and the Rural Work Conferenceproposedthe land restoration andruralcomplex construction, andthe ruralrevitalization strategy also mentioned the national strategy, which is an important opportunity for enterprises to enter this field. First, for Xinyi Yaowan Town project, corresponding equity structure adjustment was made and Shanghai Heheng Management Consulting Co., Ltd. was involved as a wholly-owned subsidiary of Golden Concord Holdings Limited (GCL Group). By virtue of obvious advantages in professional operation, it could facilitate theproject’s construction while meeting high standards and achieving high efficiency. Second, for Tangshan Caofeidian Project, the operation is relatively simple as it is the restoration of mud flat land. At present, the project has been approved by the Land and Resources Department of Tangshan, and is undergoing the construction bidding. The project is expected to commence at the end of March in 2019. Subsequently,it’s required to accelerate the construction of the project, thegovernment’s acceptance and the declaration and sales of indicators of cultivated land.Itisexpectedtomakeprofitsin2019.
D.StableandOrderlyBasicManagementWork
Standardized operation is the basis for the sustainable and healthy development of listed companies. The Company insists on effectively combining regulatory requirements with corporate operations to form a standardized and efficient management and control system. First, the Company establishes and improves its institutional system and has established a complementary system in accordance with thecompany’s articles of association, regulations ofshareholders’ meeting, board of directors and board of supervisors, company level and department level. Second, the Company adheres to the economic analysis and the key work supervision mechanism,always sticks to themonthlyandquarterly analysis ofits businessoperation,researchessolutionsand supervisesjobschedule,whichhaseffectivelyguaranteedthefulfillmentofannualoperatingindicators;according to The Supervision Work Procedures, various key works must be supervised by means of weekly supervision, monthly scheduling, quarterly inspection and annual evaluation to effectively guarantee the fulfillment of various works in the year. Third, the effect of assessment and incentives has been revealed. The penetration-type and full coverage-type method have been applied to assess various subsidiaries and cover all team members and senior executives above directors, in which way, the net profit indicators will be strengthened, and the corporate
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 performance will be combined with the individual performance. The strict assessment based on indicators has effectivelystimulatedtheenthusiasmofthemanagementteaminmakinggreaterachievement.
2.SignificantChangetoPrincipalActivitiesintheReportingPeriod
□Yes√No
3.ProductCategoryContributingover10%ofPrincipalBusinessRevenueorProfit
√Applicable□Notapplicable
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Productcategory|Operatingrevenue|Operatingprofit|Grossprofitmargin|YoYchangeinoperatingrevenue(%)|YoYchangeinoperatingprofit(%)|YoYchangeingrossprofitmargin(%)|
|Oilsandoilseeds|6,471,890,047.04|351,838,500.55|5.44%|-1.75%|7.92%|0.49%|
|Foodprocessing|890,987,143.21|278,908,008.83|31.30%|7.47%|12.43%|1.38%|

 4.BusinessSeasonalitythatCallsforSpecialAttention
□Yes√No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable to the ListedCompany’sOrdinaryShareholdersorTheirCompositions
□Applicable√Notapplicable
6.PossibilityofListingSuspensionorTermination
□Applicable√Notapplicable
7.MattersRelatedtoFinancialReporting
(1)YoYChangestoAccountingPolicies,AccountingEstimatesorMeasurementMethods
√Applicable□Notapplicable
As per the Notice of the Ministry of Finance on Revising and Issuing the Format of 2018 Annual Financial Statements of General Enterprises (CK[2018] No. 15), the Company adjusted accordingly the format of its financialstatements,aswellasthecomparativedata.
(2)RetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod□Applicable√Notapplicable
Nosuchcases.
(3)YoYChangestotheScopeofConsolidatedFinancialStatements
√Applicable□Notapplicable
Compared with 2017, there are two new subsidiaries included in the consolidated financial statements of 2018: Jingliang Rural Complex Construction and Operation (Xinyi) Co., Ltd. and Jingliang (Caofeidian) Agricultural DevelopmentCo.,Ltd.
ConsolidatedBalanceSheet
December31,2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|ClosingBalance|OpeningBalance|
|Currentassets:||||
|Monetarycapital|VI.1|924,870,016.78|1,014,438,663.43|
|Financialassetsmeasuredasfairvalueandthevariationincludedintocurrentprofitandloss||||
|Derivativefinancialassets|VI.2|71,260,414.60|176,699,298.60|
|Notesreceivableandaccountsreceivable|VI.3|97,775,710.11|75,165,127.11|
|Prepayment|VI.4|120,181,442.89|912,843,489.70|
|Otherreceivables|VI.5|18,256,513.93|75,722,139.87|
|Inventory|VI.6|1,224,186,963.07|1,393,958,764.07|
|Held-for-saleassets||||
|Non-currentassetsduewithinoneyear|VI.7||51,000,000.00|
|Othercurrentassets|VI.8|288,821,816.63|165,867,238.70|
|Totalcurrentassets||2,745,352,878.01|3,865,694,721.48|
|Non-currentassets:||||
|Available-for-salefinancialassets|VI.9|20,000,000.00|20,000,000.00|
|Held-to-maturityinvestment||||
|Long-termreceivables||||
|Long-termequityinvestment|VI.10|182,827,226.11|174,589,701.74|
|Investmentrealestate|VI.11|33,395,101.68|35,008,852.62|
|Fixedassets|VI.12|1,271,803,080.56|1,333,410,146.38|
|Constructioninprocess|VI.13|37,369,757.78|12,737,673.01|
|Productivebiologicalassets||||
|Oil-and-gasassets||||
|Intangibleassets|VI.14|383,382,527.68|398,844,032.07|
|Developmentexpenditure||||
|Goodwill|VI.15|191,394,422.51|191,394,422.51|
|Long-termdeferredexpenses|VI.16|34,671,018.22|33,247,595.28|
|Deferredincometaxassets|VI.17|15,330,980.14|14,179,072.07|
|Othernon-currentassets|VI.18|1,622,003.59|3,277,634.07|
|Totalnon-currentassets||2,171,796,118.27|2,216,689,129.75|
|Totalassets||4,917,148,996.28|6,082,383,851.23|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
ConsolidatedBalanceSheet (Continued)
December31,2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|ClosingBalance|OpeningBalance|
|Currentliabilities:||||
|Short-termborrowings|VI.19|1,437,715,080.91|2,007,171,362.73|
|Financialliabilitiesmeasuredasfairvalueandthevariationincludedintocurrentprofitandloss||||
|Derivativefinancialliabilities||||
|Notespayableandaccountspayable|VI.20|140,564,713.11|400,693,157.47|
|Advancereceipts|VI.21|145,317,064.18|212,124,147.38|
|Employeepayrollpayable|VI.22|31,494,568.05|30,762,031.53|
|Taxesandduespayable|VI.23|35,783,819.84|36,855,139.18|
|Otherpayables|VI.24|111,288,708.99|541,399,822.67|
|Held-for-saleliabilities||||
|Non-currentliabilitiesduewithinoneyear||||
|Othercurrentliabilities|VI.25|11,100,915.25|90,215,292.43|
|Totalcurrentliabilities||1,913,264,870.33|3,319,220,953.39|
|Non-currentliabilities:||||
|Long-termborrowings||||
|Bondspayable||||
|Including:Preferredstock||||
|Perpetualcapitalbonds||||
|Long-termpayables|VI.26||801,625.20|
|Employeepayrollpayable|VI.27|40,245,406.52|26,791,209.91|
|Estimatedliabilities||||
|Deferredincome|VI.28|74,953,385.51|78,961,972.67|
|Deferredincometaxliabilities|VI.17|49,618,839.47|56,185,676.15|
|Othernon-currentliabilities||||
|Totalnon-currentliabilities||164,817,631.50|162,740,483.93|
|Totalliabilities||2,078,082,501.83|3,481,961,437.32|
|Shareholder'sequity:||||
|Capitalstock|VI.29|685,790,364.00|685,790,364.00|
|Otherequityinstruments||||
|Including:Preferredstock||||
|Perpetualcapitalbonds||||
|Capitalreserves|VI.30|1,595,711,805.31|1,592,541,582.73|
|Less:treasurystock||||
|Othercomprehensiveincome|VI.31|438.33||
|Specialreserve||||
|Surplusreserves|VI.32|122,122,436.98|122,122,436.98|
|Undistributedprofit|VI.33|-131,155,119.19|-299,111,700.34|
|Totalequityattributabletotheparentcompany||2,272,469,925.43|2,101,342,683.37|
|Minorityequity|VI.34|566,596,569.02|499,079,730.54|
|Totalshareholder'sequity||2,839,066,494.45|2,600,422,413.91|
|Totalliabilitiesandshareholder'sequity||4,917,148,996.28|6,082,383,851.23|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
ConsolidatedProfitStatement
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|CurrentAmount|AmountofLastPeriod|
|I.Totaloperatingincome||7,409,124,303.41|7,917,639,044.13|
|Including:Operatingincome|VI.35|7,409,124,303.41|7,917,639,044.13|
|II.Totaloperatingcost||7,205,740,810.86|7,693,317,738.97|
|Including:Operatingcost|VI.35|6,745,315,208.12|7,181,328,452.58|
|Taxandsurcharges|VI.36|23,913,023.48|48,329,859.31|
|Sellingexpenses|VI.37|193,741,132.13|184,694,169.58|
|Administrationexpenses|VI.38|190,162,317.40|232,950,762.23|
|Researchanddevelopmentexpenses|VI.39|2,742,564.22|3,393,588.50|
|Financialexpenses|VI.40|48,487,819.30|32,018,799.28|
|Including:interestexpenses||78,514,993.77|60,010,600.72|
|Interestincome||11,149,346.83|24,528,341.57|
|Assetsimpairmentloss|VI.41|1,378,746.21|10,602,107.49|
|Add:Otherincome|VI.42|16,548,514.37|15,139,922.81|
|Incomefrominvestment(Lossesshallbefilledinwith“-”)|VI.43|30,981,211.92|25,583,710.12|
|Including:incomefrominvestmentonjointventureandcooperativeenterprise|VI.43|8,330,122.46|12,343,020.80|
|Incomefromchangesinfairvalue(Lossesshallbefilledinwith“-”)|VI.44|2,009,952.25|12,934,641.69|
|Incomefromassetdisposal(Lossesshallbefilledinwith“-”)|VI.45|-367,796.13|-6,770.67|
|III.Operatingprofit(Lossesshallbefilledinwith“-”)||252,555,374.96|277,972,809.11|
|Add:non-operatingincome|VI.46|35,905,938.23|25,718,245.18|
|Less:non-operatingexpenditure|VI.47|11,151,483.05|19,040,592.81|
|IV.Totalprofit(Totallossesshallbefilledinwith“-”)||277,309,830.14|284,650,461.48|
|Less:incometaxexpense|VI.48|66,183,707.60|75,954,170.72|
|V.Netprofit(Netlossshallbefilledinwith“-”)||211,126,122.54|208,696,290.76|
|(I)Classifiedbyoperationscontinuity:||||
|1.Netprofitfromcontinuingoperations(Netlossshallbefilledinwith“-”)||211,126,122.54|195,974,221.49|
|2.Netprofitfromdiscontinuingoperations(Netlossshallbefilledinwith“-”)|||12,722,069.27|
|(II)Classifiedbyownershipattribution:||||
|1.Minorityinterestincome(Netlossshallbefilledinwith“-”)||43,169,541.39|79,093,123.40|
|2.Netprofitattributabletoshareholdersoftheparentcompany(Netlossshallbefilledinwith“-”)||167,956,581.15|129,603,167.36|
|VI.Netoftaxfromothercomprehensiveincome||438.33||
|Netoftaxfromothercomprehensiveincomeattributabletoshareholdersoftheparentcompany||438.33||
|(I)Othercomprehensiveincomethatcannotbereclassifiedintotheprofitandloss||||
|1.Remeasurechangesindefinedbenefitplans||||
|2.Othercomprehensiveincomethatcannotbetransferredtogainsandlossesundertheequitymethod||||
|(II)Othercomprehensiveincomethatwillbereclassifiedintotheprofitandloss||438.33||
|1.Othercomprehensiveincomethatcanbetransferredtogainsandlossesundertheequitymethod||||
|2.Profitandlossofchangesinfairvalueofavailable-for-salefinancialassets|VI.49|-421,278.00||
|3.Held-to-maturityinvestmentreclassifiedintoprofitandlossofavailable-forsalefinancialassets||||
|4.Effectivepartofcash-flowhedgeprofitandloss||||
|5.Balancearisingfromthetranslationofforeigncurrency|VI.49|421,716.33||
|6.Other||||
|Netoftaxfromothercomprehensiveincomeattributabletominorityshareholder||||
|VII.Totalcomprehensiveincome||211,126,560.87|208,696,290.76|
|Totalcomprehensiveincomeattributabletoshareholdersoftheparentcompany||167,957,019.48|129,603,167.36|
|Totalcomprehensiveincomeattributabletominorityshareholder||43,169,541.39|79,093,123.40|
|VIII.Earningspershare:||||
|(I)Basicearningspershare||||
|(II)Dilutedearningspershare||||

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
ConsolidatedStatementofCashFlow
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|CurrentAmount|AmountofLastPeriod|
|I.CashFlowsfromOperatingActivities:||||
|CashReceiptsfromSalesofGoodsorRenderingofServices||7,990,459,320.64|8,251,911,188.11|
|TaxRefundReceipts||14,126,030.06|10,710,699.86|
|OtherCashReceiptsConcerningOperatingActivities|VI.50|1,320,871,012.55|1,181,639,304.13|
|SubtotalofCashInflowsfromOperatingActivities||9,325,456,363.25|9,444,261,192.10|
|CashPaidforPurchaseofGoodsandAcceptingServices||6,935,638,967.14|8,790,585,364.38|
|CashPaidtoandforEmployees||287,851,792.25|390,806,974.57|
|TaxesandFeesPaid||197,454,799.03|296,671,364.50|
|OtherCashPaidConcerningOperatingActivities|VI.50|1,054,343,253.59|1,345,705,268.31|
|SubtotalofCashOutflowsfromOperatingActivities||8,475,288,812.01|10,823,768,971.76|
|NetCashFlowsfromOperatingActivities||850,167,551.24|-1,379,507,779.66|
|II.CashFlowsfromInvestmentActivities:||||
|CashReceiptsfromDisinvestment||2,723,610,000.00|933,048,283.00|
|CashReceiptsfromReturnsonInvestments||60,787,738.09|21,904,165.76|
|NetCashfromDisposalofFixedAssets,IntangibleAssetsandOtherLong-termAssets||5,101,872.08|43,733,447.51|
|NetCashReceivedbyDisposalofSubsidiariesandOtherBusinessUnits|||-181,590,429.61|
|OtherCashReceiptsConcerningInvestmentActivities|VI.50||49,136.10|
|SubtotalofCashInflowsfromInvestmentActivities||2,789,499,610.17|817,144,602.76|
|CashPaidforPurchaseandConstructionofFixedAssets,IntangibleAssetsandOtherLong-termAssets||58,607,796.65|42,495,582.86|
|CashPaidforInvestments||2,847,910,000.00|1,298,701,195.80|
|NetCashPaidforobtainingSubsidiariesandOtherBusinessUnits|||204,524,900.00|
|OtherCashPaidConcerningInvestmentActivities||||
|SubtotalofCashOutflowsfromInvestmentActivities||2,906,517,796.65|1,545,721,678.66|
|NetCashFlowsfromInvestmentActivities||-117,018,186.48|-728,577,075.90|
|III.CashFlowsfromFinancingActivities:||||
|CashReceiptsfromAcceptingInvestment||41,000,000.00|805,020,812.32|
|Including:CashReceivedbySubsidiariesAbsorbingtheInvestmentfromMinorityShareholders|||8,748,313.76|
|CashReceiptsfromBorrowings||2,429,218,399.64|2,566,546,770.86|
|CashReceivedbyIssuingBonds||||
|OtherCashReceiptsConcerningFinancingActivities||||
|SubtotalofCashInflowsfromFinancingActivities||2,470,218,399.64|3,371,567,583.18|
|CashPaidforRepaymentofDebts||3,262,582,688.36|690,254,732.20|
|CashPaidforDistributionofDividends,ProfitsorRepaymentofInterests||106,159,134.37|64,780,406.38|
|Including:DividendsandProfitsPaidbySubsidiariestoMinorityShareholders||||
|OtherCashPaidConcerningFinancingActivities|VI.50||1,979,044.96|
|SubtotalofCashOutflowsfromFinancingActivities||3,368,741,822.73|757,014,183.54|
|NetCashFlowsfromFinancingActivities||-898,523,423.09|2,614,553,399.64|
|IV.ExchangeRateFluctuationConsequencesonCashandCashEquivalents||18,805,411.68|2,492,271.54|
|V.NetIncreaseinCashandCashEquivalents||-146,568,646.65|508,960,815.62|
|Add:OpeningBalanceofCashandCashEquivalents||1,014,438,663.43|505,477,847.81|
|VI.ClosingBalanceofCashandCashEquivalents||867,870,016.78|1,014,438,663.43|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
ConsolidatedStatementofCashFlow
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|CurrentAmount|AmountofLastPeriod|
|I.CashFlowsfromOperatingActivities:||||
|CashReceiptsfromSalesofGoodsorRenderingofServices||7,990,459,320.64|8,251,911,188.11|
|TaxRefundReceipts||14,126,030.06|10,710,699.86|
|OtherCashReceiptsConcerningOperatingActivities|VI.50|1,320,871,012.55|1,181,639,304.13|
|SubtotalofCashInflowsfromOperatingActivities||9,325,456,363.25|9,444,261,192.10|
|CashPaidforPurchaseofGoodsandAcceptingServices||6,935,638,967.14|8,790,585,364.38|
|CashPaidtoandforEmployees||287,851,792.25|390,806,974.57|
|TaxesandFeesPaid||197,454,799.03|296,671,364.50|
|OtherCashPaidConcerningOperatingActivities|VI.50|1,054,343,253.59|1,345,705,268.31|
|SubtotalofCashOutflowsfromOperatingActivities||8,475,288,812.01|10,823,768,971.76|
|NetCashFlowsfromOperatingActivities||850,167,551.24|-1,379,507,779.66|
|II.CashFlowsfromInvestmentActivities:||||
|CashReceiptsfromDisinvestment||2,723,610,000.00|933,048,283.00|
|CashReceiptsfromReturnsonInvestments||60,787,738.09|21,904,165.76|
|NetCashfromDisposalofFixedAssets,IntangibleAssetsandOtherLong-termAssets||5,101,872.08|43,733,447.51|
|NetCashReceivedbyDisposalofSubsidiariesandOtherBusinessUnits|||-181,590,429.61|
|OtherCashReceiptsConcerningInvestmentActivities|VI.50||49,136.10|
|SubtotalofCashInflowsfromInvestmentActivities||2,789,499,610.17|817,144,602.76|
|CashPaidforPurchaseandConstructionofFixedAssets,IntangibleAssetsandOtherLong-termAssets||58,607,796.65|42,495,582.86|
|CashPaidforInvestments||2,847,910,000.00|1,298,701,195.80|
|NetCashPaidforobtainingSubsidiariesandOtherBusinessUnits|||204,524,900.00|
|OtherCashPaidConcerningInvestmentActivities||||
|SubtotalofCashOutflowsfromInvestmentActivities||2,906,517,796.65|1,545,721,678.66|
|NetCashFlowsfromInvestmentActivities||-117,018,186.48|-728,577,075.90|
|III.CashFlowsfromFinancingActivities:||||
|CashReceiptsfromAcceptingInvestment||41,000,000.00|805,020,812.32|
|Including:CashReceivedbySubsidiariesAbsorbingtheInvestmentfromMinorityShareholders|||8,748,313.76|
|CashReceiptsfromBorrowings||2,429,218,399.64|2,566,546,770.86|
|CashReceivedbyIssuingBonds||||
|OtherCashReceiptsConcerningFinancingActivities||||
|SubtotalofCashInflowsfromFinancingActivities||2,470,218,399.64|3,371,567,583.18|
|CashPaidforRepaymentofDebts||3,262,582,688.36|690,254,732.20|
|CashPaidforDistributionofDividends,ProfitsorRepaymentofInterests||106,159,134.37|64,780,406.38|
|Including:DividendsandProfitsPaidbySubsidiariestoMinorityShareholders||||
|OtherCashPaidConcerningFinancingActivities|VI.50||1,979,044.96|
|SubtotalofCashOutflowsfromFinancingActivities||3,368,741,822.73|757,014,183.54|
|NetCashFlowsfromFinancingActivities||-898,523,423.09|2,614,553,399.64|
|IV.ExchangeRateFluctuationConsequencesonCashandCashEquivalents||18,805,411.68|2,492,271.54|
|V.NetIncreaseinCashandCashEquivalents||-146,568,646.65|508,960,815.62|
|Add:OpeningBalanceofCashandCashEquivalents||1,014,438,663.43|505,477,847.81|
|VI.ClosingBalanceofCashandCashEquivalents||867,870,016.78|1,014,438,663.43|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
ConsolidatedStatementofChangesinShareholder’sEquity(Continued)
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|AmountofLastPeriod|||||||||||||
||Shareholder'sEquityattributabletotheParentCompany|||||||||||Minorityequity|Totalshareholders'equities|
||Capitalstock|Otherequityinstruments|||Capitalreserve|Less:treasurystock|Othercomprehensiveincome|Specialreserve|Surpluspublicaccumulation|Undistributedprofit|Subtotal|||
|||Preferredstock|Perpetualbond|Others||||||||||
|I.Year-endbalanceoflastyear|426,745,404.00||||1,381,337,052.83||||122,122,436.98|-547,123,017.26|1,383,081,876.55|1,174,529,851.49|2,557,611,728.04|
|Add:changesinaccountingpolicies||||||||||||||
|Correctionofpriorperioderrors||||||||||||||
|Businesscombinationundercommoncontrol|||||-1,312,383,054.76|||||118,408,149.56|-1,193,974,905.20||-1,193,974,905.20|
|Other||||||||||||||
|II.Balanceatbeginningofcurrentyear|426,745,404.00||||68,953,998.07||||122,122,436.98|-428,714,867.70|189,106,971.35|1,174,529,851.49|1,363,636,822.84|
|III.Increasesanddecreasesofcurrentyear(Decreaseshallbefilledinwith“-”)|259,044,960.00||||1,523,587,584.66|||||129,603,167.36|1,912,235,712.02|-675,450,120.95|1,236,785,591.07|
|(I)Totalcomprehensiveincome||||||||||129,603,167.36|129,603,167.36|79,093,123.40|208,696,290.76|
|(II)Investmentofshareholdersandcapitalreduction|259,044,960.00||||1,523,587,584.66||||||1,782,632,544.66|-632,300,428.15|1,150,332,116.51|
|1.Commonequityinvestedbyshareholders|259,044,960.00||||1,496,058,401.52||||||1,755,103,361.52|46,450,000.00|1,801,553,361.52|
|2.Capitalinvestedbyotherequityinstrumentsholders||||||||||||||
|3.Theamountofsharesrecordedintotheshareholder'sequity||||||||||||||
|4.Others|||||27,529,183.14||||||27,529,183.14|-678,750,428.15|-651,221,245.01|
|(III)Distributionofprofits||||||||||||-6,944,385.43|-6,944,385.43|
|1.Withdrawalofsurplusreserves||||||||||||||
|2.Withdrawalofgeneralriskreserve||||||||||||||
|3.Distributiontoshareholders||||||||||||-6,944,385.43|-6,944,385.43|
|4.Others||||||||||||||
|(IV)Innercarrying-overofshareholders'equities||||||||||||-115,298,430.77|-115,298,430.77|
|1.Capitalreserveconvertedintocapital(orcapitalstock)||||||||||||||
|2.Surpluspublicaccumulationconvertedintocapital(orcapitalstock)||||||||||||||
|3.Surpluspublicaccumulationlossremedy||||||||||||||
|4.Carryforwardretainedearningsfromchangesindefinedbenefitplans||||||||||||||
|5.Others||||||||||||-115,298,430.77|-115,298,430.77|
|(V)Specialreserve||||||||||||||
|1.Withdrawalforcurrentperiod||||||||||||||
|2.Useforcurrentperiod||||||||||||||
|(VI)Others||||||||||||||
|IV.Closingbalanceofcurrentyear|685,790,364.00||||1,592,541,582.73||||122,122,436.98|-299,111,700.34|2,101,342,683.37|499,079,730.54|2,600,422,413.91|

LegalRepresentative:ShaolinLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
BalanceSheet
December31,2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|ClosingBalance|OpeningBalance|
|Currentassets:||||
|Monetarycapital||13,597,659.66|15,360,177.32|
|Financialassetsmeasuredasfairvalueandthevariationincludedintocurrentprofitandloss||||
|Derivativefinancialassets||||
|Notesreceivableandaccountsreceivable|XVI.1|79,986.00|109,389.00|
|Prepayment||20,000.00||
|Otherreceivables|XVI.2|227,353.10|60,576,292.62|
|Inventory||4,824,035.45|4,824,035.45|
|Held-for-saleassets||||
|Non-currentassetsduewithinoneyear||||
|Othercurrentassets||1,962,371.32|2,905,667.38|
|Totalcurrentassets||20,711,405.53|83,775,561.77|
|Non-currentassets:||||
|Available-for-salefinancialassets||20,000,000.00|20,000,000.00|
|Held-to-maturityinvestment||||
|Long-termreceivables||||
|Long-termequityinvestment|XVI.3|2,375,639,964.05|2,336,639,964.05|
|Investmentrealestate||5,778,794.33|6,081,230.93|
|Fixedassets||3,260,620.04|3,589,144.87|
|Constructioninprocess||||
|Productivebiologicalassets||||
|Oil-and-gasassets||||
|Intangibleassets||171,069.18||
|Developmentexpenditure||||
|Goodwill||||
|Long-termdeferredexpenses||180,817.60||
|Deferredincometaxassets||||
|Othernon-currentassets||||
|Totalnon-currentassets||2,405,031,265.20|2,366,310,339.85|
|Totalassets||2,425,742,670.73|2,450,085,901.62|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
BalanceSheet(Continued)
December31,2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|ClosingBalance|OpeningBalance|
|Currentliabilities:||||
|Short-termborrowings||||
|Financialliabilitiesmeasuredasfairvalueandthevariationincludedintocurrentprofitandloss||||
|Derivativefinancialliabilities||||
|Notespayableandaccountspayable|||2,482,949.70|
|Advancereceipts||38,896.41|38,896.41|
|Employeepayrollpayable||438,195.96|2,017,684.57|
|Taxesandduespayable||976,458.68|2,557,993.95|
|Otherpayables||449,947,050.56|449,510,029.34|
|Held-for-saleliabilities||||
|Non-currentliabilitiesduewithinoneyear||||
|Othercurrentliabilities||||
|Totalcurrentliabilities||451,400,601.61|456,607,553.97|
|Non-currentliabilities:||||
|Long-termborrowings||||
|Bondspayable||||
|Including:Preferredstock||||
|Perpetualcapitalbonds||||
|Long-termpayables||||
|Employeepayrollpayable||||
|Estimatedliabilities||||
|Deferredincome||||
|Deferredincometaxliabilities||||
|Othernon-currentliabilities||||
|Totalnon-currentliabilities||||
|Totalliabilities||451,400,601.61|456,607,553.97|
|Shareholder'sequity:||||
|Capitalstock||685,790,364.00|685,790,364.00|
|Otherequityinstruments||||
|Including:Preferredstock||||
|Perpetualcapitalbonds||||
|Capitalreserves||2,173,387,468.71|2,173,387,468.71|
|Less:treasurystock||||
|Othercomprehensiveincome||||
|Specialreserve||||
|Surplusreserves||109,487,064.39|109,487,064.39|
|Undistributedprofit||-994,322,827.98|-975,186,549.45|
|Totalshareholder'sequity||1,974,342,069.12|1,993,478,347.65|
|Totalliabilitiesandshareholder'sequity||2,425,742,670.73|2,450,085,901.62|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
ProfitStatement
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|CurrentAmount|AmountofLastPeriod|
|I.Operatingincome|XVI.4||2,857.14|
|Less:Operatingcost|XVI.4||302,436.60|
|Taxandsurcharges||1,196,961.62|1,201,827.31|
|Sellingexpenses||||
|Administrationexpenses||23,607,509.95|29,147,752.63|
|Researchanddevelopmentexpenses||||
|Financialexpenses||14,073,236.91|-6,912,084.36|
|Including:interestexpenses||15,038,228.78|9,264,377.38|
|Interestincome||974,811.35|16,961,563.45|
|Assetsimpairmentloss||-3,094,336.89|834,972.20|
|Add:Otherincome||||
|Incomefrominvestment(Lossesshallbefilledinwith“-”)|XVI.5||74,749,139.55|
|Including:incomefrominvestmentonjointventureandcooperativeenterprise|XVI.5||-1,070,860.45|
|Incomefromchangesinfairvalue(Lossesshallbefilledinwith“-”)||||
|Incomefromassetdisposal(Lossesshallbefilledinwith“-”)|||-3,744.70|
|II.Operatingprofit(Lossesshallbefilledinwith“-”)||-35,783,371.59|50,173,347.61|
|Add:non-operatingincome||16,679,043.74|277,830.06|
|Less:non-operatingexpenditure||31,950.68|841,471.93|
|III.Totalprofit(Totallossesshallbefilledinwith“-”)||-19,136,278.53|49,609,705.74|
|Less:incometaxexpense||||
|IV.Netprofit(Netlossshallbefilledinwith“-”)||-19,136,278.53|49,609,705.74|
|(I)Netprofitfromcontinuingoperations(Netlossshallbefilledinwith“-”)||||
|(II)Netprofitfromdiscontinuingoperations(Netlossshallbefilledinwith“-”)||||
|V.Netoftaxfromothercomprehensiveincome||||
|(I)Othercomprehensiveincomethatcannotbereclassifiedintotheprofitandloss||||
|1.Remeasurechangesindefinedbenefitplans||||
|2.Othercomprehensiveincomethatcannotbetransferredtogainsandlossesundertheequitymethod||||
|(II)Othercomprehensiveincomethatwillbereclassifiedintotheprofitandloss||||
|1.Othercomprehensiveincomethatcanbetransferredtogainsandlossesundertheequitymethod||||
|2.Profitandlossofchangesinfairvalueofavailable-for-salefinancialassets||||
|3.Held-to-maturityinvestmentreclassifiedintoprofitandlossofavailable-forsalefinancialassets||||
|4.Effectivepartofcash-flowhedgeprofitandloss||||
|5.Balancearisingfromthetranslationofforeigncurrency||||
|6.Other||||
|VI.Totalcomprehensiveincome||-19,136,278.53|49,609,705.74|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
StatementofCashFlow
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||
|-|-|-|-|
|Item|Note|CurrentAmount|AmountofLastPeriod|
|I.CashFlowsfromOperatingActivities:||||
|CashReceiptsfromSalesofGoodsorRenderingofServices||||
|TaxRefundReceipts||1,500.00||
|OtherCashReceiptsConcerningOperatingActivities||50,575,445.10|24,572,737.14|
|SubtotalofCashInflowsfromOperatingActivities||50,576,945.10|24,572,737.14|
|CashPaidforPurchaseofGoodsandAcceptingServices||||
|CashPaidtoandforEmployees||20,758,423.44|10,014,435.27|
|TaxesandFeesPaid||5,842,797.23|28,508,145.12|
|OtherCashPaidConcerningOperatingActivities||16,664,927.81|100,011,431.48|
|SubtotalofCashOutflowsfromOperatingActivities||43,266,148.48|138,534,011.87|
|NetCashFlowsfromOperatingActivities||7,310,796.62|-113,961,274.73|
|II.CashFlowsfromInvestmentActivities:||||
|CashReceiptsfromDisinvestment|||10,000,000.00|
|CashReceiptsfromReturnsonInvestments||||
|NetCashfromDisposalofFixedAssets,IntangibleAssetsandOtherLong-termAssets|||35,000,000.00|
|OtherCashReceiptsConcerningInvestmentActivities|||49,136.10|
|SubtotalofCashInflowsfromInvestmentActivities|||45,049,136.10|
|CashPaidforPurchaseandConstructionofFixedAssets,IntangibleAssetsandOtherLong-termAssets||248,977.61||
|CashPaidforInvestments||39,000,000.00|366,447,600.00|
|OtherCashPaidConcerningInvestmentActivities||||
|SubtotalofCashOutflowsfromInvestmentActivities||39,248,977.61|366,447,600.00|
|NetCashFlowsfromInvestmentActivities||-39,248,977.61|-321,398,463.90|
|III.CashFlowsfromFinancingActivities:||||
|CashReceiptsfromAcceptingInvestment|||386,874,898.56|
|CashReceiptsfromBorrowings||243,800,000.00|110,000,000.00|
|CashReceivedbyIssuingBonds||||
|OtherCashReceiptsConcerningFinancingActivities||||
|SubtotalofCashInflowsfromFinancingActivities||243,800,000.00|496,874,898.56|
|CashPaidforRepaymentofDebts||195,000,000.00|76,469,598.52|
|CashPaidforDistributionofDividends,ProfitsorRepaymentofInterests||18,624,336.67|1,659,125.50|
|OtherCashPaidConcerningFinancingActivities|||1,979,044.96|
|SubtotalofCashOutflowsfromFinancingActivities||213,624,336.67|80,107,768.98|
|NetCashFlowsfromFinancingActivities||30,175,663.33|416,767,129.58|
|IV.ExchangeRateFluctuationConsequencesonCashandCashEquivalents||||
|V.NetIncreaseinCashandCashEquivalents||-1,762,517.66|-18,592,609.05|
|Add:OpeningBalanceofCashandCashEquivalents||15,360,177.32|33,952,786.37|
|VI.ClosingBalanceofCashandCashEquivalents||13,597,659.66|15,360,177.32|

LegalRepresentative:ShaolingLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
StatementofChangesinShareholder’sEquity
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|CurrentAmount|||||||||||
||Capitalstock|Otherequityinstruments|||Capitalreserve|Less:treasurystock|Othercomprehensiveincome|Specialreserve|Surpluspublicaccumulation|Undistributedprofit|Totalshareholders'equities|
|||Preferredstock|Perpetualbond|Others||||||||
|I.Year-endbalanceoflastyear|685,790,364.00||||2,173,387,468.71||||109,487,064.39|-975,186,549.45|1,993,478,347.65|
|Add:changesinaccountingpolicies||||||||||||
|Correctionofpriorperioderrors||||||||||||
|Other||||||||||||
|II.Balanceatbeginningofcurrentyear|685,790,364.00||||2,173,387,468.71||||109,487,064.39|-975,186,549.45|1,993,478,347.65|
|III.Increasesanddecreasesofcurrentyear(Decreaseshallbefilledinwith“-”)||||||||||-19,136,278.53|-19,136,278.53|
|(I)Totalcomprehensiveincome||||||||||-19,136,278.53|-19,136,278.53|
|(II)Investmentofshareholdersandcapitalreduction||||||||||||
|1.Commonequityinvestedbyshareholders||||||||||||
|2.Capitalinvestedbyotherequityinstrumentsholders||||||||||||
|3.Theamountofsharesrecordedintotheshareholder'sequity||||||||||||
|4.Others||||||||||||
|(III)Distributionofprofits||||||||||||
|1.Withdrawalofsurplusreserves||||||||||||
|2.Withdrawalofgeneralriskreserve||||||||||||
|3.Distributiontoshareholders||||||||||||
|4.Others||||||||||||
|(IV)Innercarrying-overofshareholders'equities||||||||||||
|1.Capitalreserveconvertedintocapital(orcapitalstock)||||||||||||
|2.Surpluspublicaccumulationconvertedintocapital(orcapitalstock)||||||||||||
|3.Surpluspublicaccumulationlossremedy||||||||||||
|4.Carryforwardretainedearningsfromchangesindefinedbenefitplans||||||||||||
|5.Others||||||||||||
|(V)Specialreserve||||||||||||
|1.Withdrawalforcurrentperiod||||||||||||
|2.Useforcurrentperiod||||||||||||
|(VI)Others||||||||||||
|IV.Closingbalanceofcurrentyear|685,790,364.00||||2,173,387,468.71||||109,487,064.39|-994,322,827.98|1,974,342,069.12|

LegalRepresentative:ShaolinLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
StatementofChangesinShareholder’sEquity(Continued)
Year2018
Preparedby:HainanJingliangHoldingsCo.,Ltd. MonetaryUnit: RMBYuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|AmountofLastPeriod|||||||||||
||Capitalstock|Otherequityinstruments|||Capitalreserve|Less:treasurystock|Othercomprehensiveincome|Specialreserve|Surpluspublicaccumulation|Undistributedprofit|Totalshareholders'equities|
|||Preferredstock|Perpetualbond|Others||||||||
|I.Year-endbalanceoflastyear|426,745,404.00||||546,201,098.01||||109,487,064.39|-1,024,796,255.19|57,637,311.21|
|Add:changesinaccountingpolicies||||||||||||
|Correctionofpriorperioderrors||||||||||||
|Other||||||||||||
|II.Balanceatbeginningofcurrentyear|426,745,404.00||||546,201,098.01||||109,487,064.39|-1,024,796,255.19|57,637,311.21|
|III.Increasesanddecreasesofcurrentyear(Decreaseshallbefilledinwith“-”)|259,044,960.00||||1,627,186,370.70|||||49,609,705.74|1,935,841,036.44|
|(I)Totalcomprehensiveincome||||||||||49,609,705.74|49,609,705.74|
|(II)Investmentofshareholdersandcapitalreduction|259,044,960.00||||1,627,186,370.70||||||1,886,231,330.70|
|1.Commonequityinvestedbyshareholders|259,044,960.00||||1,496,058,401.52||||||1,755,103,361.52|
|2.Capitalinvestedbyotherequityinstrumentsholders||||||||||||
|3.Theamountofsharesrecordedintotheshareholder'sequity||||||||||||
|4.Others|||||131,127,969.18||||||131,127,969.18|
|(III)Distributionofprofits||||||||||||
|1.Withdrawalofsurplusreserves||||||||||||
|2.Withdrawalofgeneralriskreserve||||||||||||
|3.Distributiontoshareholders||||||||||||
|4.Others||||||||||||
|(IV)Innercarrying-overofshareholders'equities||||||||||||
|1.Capitalreserveconvertedintocapital(orcapitalstock)||||||||||||
|2.Surpluspublicaccumulationconvertedintocapital(orcapitalstock)||||||||||||
|3.Surpluspublicaccumulationlossremedy||||||||||||
|4.Carryforwardretainedearningsfromchangesindefinedbenefitplans||||||||||||
|5.Others||||||||||||
|(V)Specialreserve||||||||||||
|1.Withdrawalforcurrentperiod||||||||||||
|2.Useforcurrentperiod||||||||||||
|(VI)Others||||||||||||
|IV.Closingbalanceofcurrentyear|685,790,364.00||||2,173,387,468.71||||109,487,064.39|-975,186,549.45|1,993,478,347.65|

LegalRepresentative:ShaolinLi PersoninChargeofFinance:YingGuan PersoninChargeofAccountingAgencies:QuanliLiu
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Hainan Jingliang Holdings Co., Ltd.
Notes to the 2018Annual Report
(Unlessotherwisestated,theamountunitisRMB)
I.BasicInformationoftheCompany
(I)Placeofincorporation,formoforganizationandheadofficeaddress
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)SGZNo.6DocumentofthePeople'sBankofHainanProvinceandre-registeredbyHainanPearlRiverEnterpriseCompany 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 thenet assets oftheoriginal company and21,086,400 shareswerenewly issued.Andthename oftheCompanyis HainanPearlRiverEnterpriseCo.,Ltd.Thebusinesslicenseregistrationnumberofthejoint-stockcompanyis20128455-6,andthe holding parent company Guangzhou Pearl River Enterprise Group holds 36,393,600 shares, accounting for44.45%.Approved by ZGB(1992)No.83DocumentofthePeople'sBankofChinainDecember1992,theadditional21,086,400shareswerelistedonthe ShenzhenStockExchangefortrading.Theindustryinvolvedisrealestate.
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 convertingtheoriginalsharecapitalinto139,196,000shares(accordingtodistributionof10,deliveryof5andtransferof2),withthe controlling shareholder Guangzhou Pearl River Enterprises Group holding 48,969,120 shares accounting for35.18% at the end of 1993.
In1994,thesharecapitalwasincreasedby10to10,andthetotalsharecapitalwas278,392,000sharesafter theincrease.Thecontrollingshareholder,GuangzhouPearlRiverEnterprisesGroup,holds97,938,240shares,accountingfor35.18%.
In1995,theissuanceof50,000,000BShareswasapprovedbySZBF(1995)No.45andSZBF(1995)No.12.Thesharecapital 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 capitaloftheCompanyaftertheincreasewas377,650,800shares.Theholdingparentcompany,GuangzhouPearlRiverEnterprisesGroup,held112,628,976shares,accountingfor29.82%ofthetotal.
In 1999, Guangzhou Pearl River Enterprises Group transferred all 112,628,976 shares to Beijing Wanfa Real Estate DevelopmentCo.,Ltd..Afterthetransfer ofshareswascompletedinJune1999,BeijingWanfaReal EstateDevelopmentCo.,Ltd. held 112,628,976 shares of the Company, accounting for29.82% of the total shares of the Company, and became the controlling shareholderoftheCompany.
OnJanuary10,2000,thenameoftheCompanywaschangedtoHainanPearlRiverHoldingCo.,Ltd.andtheBusinessLicenseforEnterpriseLegalPersonwasrenewedbyIndustrial&CommerceAdministrationBureauofHainanProvince.
OnAugust 17, 2006, thereformplan ofthesplit sharestructureof theCompany was implemented.TheCompany transferred
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 49,094,604sharesofcapitalstocktoallshareholdersattheratioof10to1.3.Theoriginalnon-tradableshareholderstransferredthe increased shares to the tradable A-share holders. 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 for25.31%. Shareholders of non-tradable shares repaid 3,289,780 shares in consideration of the split share structurein2007.Shareholdersofnon-tradablesharesrepaid1,196,000sharesinconsiderationofthesplitsharestructurein2009. On2September2016,BeijingWanfaRealEstateDevelopmentCo.,Ltd.,theoriginalcontrollingshareholder,transferredallof its112,479,478sharestoBeijingGrainGroupCo.,Ltd.(hereinafterreferred toas"BeijingGrainGroup").UponcompletionofthesharetransferinSeptember2016,BeijingGrainGroupCo.,Ltd.held112,479,478shares,accountingfor26.36%ofthetotalshares oftheCompany.InNovember2016,basedontheconfidenceinthesubjectmatterofthematerialassetrestructuringandthefuture developmentoftheCompany,BeijingGrainGroupCo.,Ltd.decidedtoincreaseitsshareholdingthroughcentralizedbiddinginthe secondary market. After the increase, it held 123,561,963 shares of the Company, accounting for28.95% of the total number of shares,andbecamethelargestshareholderoftheCompany.
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 SecuritiesRegulatoryCommissiondatedJuly28,2017OnApprovalofHainanPearlRiverHoldingCo.,Ltd.toPurchaseAssetsand Raise Supporting Funds fromBeijingGrain Group Co., Ltd. (ZJXK (2017) No.1391): 1)The Company purchased assets from the originalshareholdersofBeijingGrainFoodCo.,Ltd.(hereinafterreferredtoasBeijingGrainFood)byissuing210,079,552sharesof thebalancebetweenthetransactionpriceoftheinjectedassetsandtheassetstobepurchased(thedifferencebetweenthetransaction 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 RMB1.00per shareandtheissuancepricewasRMB8.09pershare; 2)TheCompany hasissued48,965,408non-publicsharesof 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 685,790,364.00 and the share capital was RMB 685,790,364.00. Beijing Grain Group, which accounted for42.06% of the total numberofshares,becamethelargestshareholderoftheCompany.
On March 10, 2018, the Company completed the registration formalities for industrial and commercial changes such as company name, legal representative, registered capital and business scope, and obtained the Business License forEnterprise LegalPersonapprovedandrenewedbyIndustrial&CommerceAdministrationBureauofHainanProvince.Therelevantinformationafter thechangeislistedasfollows:
Companyname:HainanJingliangHoldingsCo.,Ltd.
UniformSocialCreditCode:914600002012845568
Type:LimitedCompany(Listed,State-controlled)
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Registeredaddress:F29,DihaoBuilding,PearlRiverSquare,BinhaiAvenue,HaikouCity
Officeaddress:F29,DihaoBuilding,PearlRiverSquare,BinhaiAvenue,HaikouCity
Legalrepresentative:WangGuofeng
Registeredcapital:685,790,364Yuan
Dateofestablishment:March22,1988
Businessterm:fromMarch22,1988toSeptember20,2025
TheparentcompanyisBeijingGrainGroupCo.,Ltd..
(II)ThenatureoftheCompany'sbusinessanditsmainbusinessactivities
1. BusinessscopeoftheCompany
The Companybelongsto manufacturing-agricultural andsideline foodprocessing industry,mainly including:food, beverages, oils,oilsandby-products,vegetableproteinsandtheirproducts,organicfertilizers,microbialfertilizers,productionandmarketingof agriculturalfertilizers;landconsolidation,soilremediation;agriculturalcomprehensiveplantingdevelopment,animalhusbandryand aquaculture,agriculturalequipmentproductionandmarketing;computernetworktechnology,investmentincommunicationprojects, research and development andapplication of high-tech products; investment and consultationof environmental protection projects; animation,graphicdesign;importandexporttradeingoodsandtechnology;rentalofownpremises.(Generalbusinessprojectsshall be operated independently, and the permitted business projects shall be operated on the basis of relevant permits or approval documents) (Projects subject to approval by the relevant departments shall not be allowed to engage in business activities until approvedbytherelevantdepartmentsinaccordancewiththelaw.).
2.ThenatureoftheCompany'sbusinessanditsmainbusinessactivities
TheCompanyanditssubsidiariesareprincipallyengagedintheprocessing,productionandsalesoffoodstuffs,agriculturaland sidelineproducts,oilsandfats,oilsandsnackfoods.
3. BasicframeworkoftheCompany
ThebasicorganizationalstructureoftheCompany: theshareholders' general meetingisthehighestauthorityoftheCompany, theboardofdirectorsistheexecutivebodyoftheshareholders'generalmeeting,theboardofsupervisorsistheinternalsupervision body of the Company, and the general manager is responsible for the daily operation and management of the Company. The CompanyconsistsoftheOfficeoftheBoardofDirectors,theOfficeoftheBoardofSupervisors,theDepartmentofComprehensive Affairs,theDepartmentofSecuritiesAffairs,theDepartmentofStrategicInvestment,theDepartmentofFinance(SettlementCenter), the Department of Internal Control Risk, the Department of Human Resources, the Department of Party and Mass Work, and the DepartmentofDisciplineInspectionandSupervision.
On May 6, 2010, the Beijing Investment Consulting Branch of Hainan JingliangHoldings Co., Ltd. (now renamed as Hainan Pearl River HoldingCo.,Ltd.) wasestablishedwiththeunified social creditcodeof91110107554875351W.Address: Room5078, Building 3, No.3, Xijing Road, Badachu High-tech Park, Shijingshan District, Beijing. Business scope includes investment consulting, hotelinvestmentandmanagement;Purchaseandleaseofconstructionequipment;Salesofbuildingmaterials, hardware
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 and electrical equipment, furniture, plastics, daily necessities, leather products, rubber products, fodder, no longer packaged seeds, cereals, legumes, potato, flowers, grass and ornamental plants, fertilizers, non-metallic ores, metal products, metal ores, metalmaterials,goodsimportandexport;R&Dandapplicationofhigh-techproducts.("1Withouttheapprovaloftherelevantdepartments, the funds shall not be raised in public; 2. Trading activities of securities products and financial derivatives shall not be publicly carriedout;3.Loansshallnotbegranted;4.Guaranteesshallnotbeprovidedtoanyenterpriseotherthantheinvestedenterprise;5. The investment principal shall not be lost or the minimum income shall not be guaranteed to the investor"; The project subject to approval according to law shall be operated in accordance with the approved contents after obtaining the approval of the relevant departments.)
OnOctober22,2012,HainanPearlRiverStockCo.,Ltd.HeilongjiangBranchwasestablishedwithunifiedsocialcreditcode: 91230110598492651P. Address: No.34, Nongxiao Street, Xiangfang District, Harbin City. Business scope: industrial investment, hotel investment and management, construction equipment procurement, and easing, indoor and outdoor decoration, high-tech project investment, computer network investment, communication project investment, high-tech product development and application, and environmental protection project investment. (Projects subject to administrative license examination and approval shall be operated with the license) (Projects subject to approval by the relevant departments shall not be allowed to engage in business activities until approved by the relevant departments in accordance with the law.) On December 9, 2017, to optimize the capital structure, reduce operating and management costs and improve management efficiency, at the 22nd meeting of the eighth session of the Board of Directors of the Company, the Proposal on Cancellation of Heilongjiang Branch of the Company was deliberatedandadopted,andthecancellationofHeilongjiangBranchoftheCompanywasagreed,andthemanagementlayerofthe Company was authorized to go through relevant cancellation formalities. In July 2018, the Company completed the industrial and commercialcancellationformalitiesofHeilongjiangBranch.
(III)Approvaloffinancialstatements
ThesefinancialstatementshavebeenapprovedandreportedbytheBoardofDirectorsoftheCompanyinitsresolutiondated March28,2019.
(IV)Consolidatedreportscope
Atotalof20subsidiariesoftheCompanywereincludedinthescopeofconsolidationin2018,asdetailedinNote8"Interestsin OtherEntities".TheconsolidationscopeoftheCompanyforthecurrentperiodis2morethanthatofthepreviousperiod,asdetailed inNote7,"ChangeinConsolidationScope".
II.PreparationBasisforFinancialStatements
1.PreparationBasis
The Company's financial statements are prepared on the basis of the going concern assumption, according to the actual transactionsandevents,inaccordancewiththeAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceand its application guidelines, interpretation and other relevant provisions (collectively referred to as the "Accounting Standards for Business Enterprises"). In addition, the Company also discloses relevant financial information in accordance with the China Securities RegulatoryCommission's Rulesfor thePreparationof Information Disclosureof Companiesthat Offer Securities to the
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 PublicNo.15-GeneralProvisionsonFinancialReporting(Revisedin2014).
AccordingtotherelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theCompany'sfinancialaccounting shall be based on the accrual basis. These financial statements are based on historical cost, with the exception of certain financial instruments. In case of impairment of assets, the corresponding impairment provision shall be calculated and withdrawn in accordancewithrelevantprovisions.
2.Goingconcern
ThesefinancialstatementsarepresentedonagoingconcernbasisandtheCompanyhasagoingconcerncapabilityforatleast 12monthsfromtheendofthereportingperiod.
III.StatementofCompliancewithAccountingStandardsforBusinessEnterprises
The financial statements prepared by the Company conform to the requirements of the Accounting Standards for Business EnterprisesandreflecttruthfullyandcompletelytheconsolidationoftheCompanyandthefinancialpositionoftheparentcompany asatDecember31,2018,theconsolidationoftheCompanyin2018,theoperatingresultsoftheparentcompany,theconsolidation andthecashflowoftheparentcompanyandotherrelevantinformation.
IV.SignificantAccountingPoliciesandAccountingEstimate
1.AccountingPeriod
The accounting period of theCompany is dividedintoan annual periodandan interim period.The accounting interim period referstothereportingperiodshorterthanafullaccountingyear.ThefiscalyearoftheCompanyadoptstheGregoriancalendaryear, thatis,fromJanuary1toDecember31ofeachyear.
2.BusinessCycle
The normal businesscycle istheperiodfrom thetime theCompany purchases assets for processing tothe time when cash or cashequivalentsarerealized.TheCompanyuses12monthsasanbusinesscycleandusesitasaliquidityclassificationstandardfor assetsandliabilities.
3.BookkeepingStandardCurrency
TheCompanyusesRMBasthebookkeepingstandardcurrency.
RMBisthecurrencyinthemaineconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate.The CompanyanditsdomesticsubsidiariesuseRMBasthebookkeepingstandardcurrency.TheoffshoresubsidiariesoftheCompany determineUSDastheirbookkeepingstandardcurrencybasedonthecurrenciesinthemaineconomicenvironmentinwhichthey operate.ThecurrencyusedbytheCompanyinpreparingthesefinancialstatementsisRMB.
4.TheAccountingTreatmentofBusinessCombinationundertheSameControlandDifferentControl
Business Combination refers to the transaction or event in which two or more separate enterprises are merged to form one reportingentity. Business combinationcan be divided into business combinationunder thesame control and business combination underdifferentcontrol.
(1)Businesscombinationunderthesamecontrol
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Enterprisesparticipatinginthecombinationareultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafterthe 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 combinationdateshallbethecombinationparty,andtheotherenterprisesparticipatinginthecombinationshallbethemergedparty. Thecombinationdatereferstothedateonwhichthecombinationpartyactuallyacquirescontroloverthemergedparty.
The assetsand liabilitiesacquiredbythecombinationpartyare measured at thebookvalueof themergedpartyat thedateof consolidation. 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)shallbeadjusted;Ifthecapitalreserve(equitypremium)isinsufficienttooffset,theretainedearningsshallbeadjusted. Thedirectexpensesincurredbythemergingpartyforthepurposeofbusinesscombinationshallbeincludedintheprofitsand lossesofthecurrentperiodwhentheyareincurred.
(2)Businesscombinationunderdifferentcontrol
Iftheenterprisesparticipatinginthemergerarenotultimatelycontrolledbythesamepartyormultiplepartiesbeforeandafter themerger,theenterprisemergerisnotunderthesamecontrol.Incaseofbusinesscombinationunderdifferentcontrol,thepartythat 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 Purchased. Purchase date means the date on which the Purchaser actually acquirescontrolofthePurchased.
For business combination under different control, the merger cost includes the assets, liabilities and fair value of equity securitiesissuedbythePurchaserinordertoobtainthecontroloverthePurchasedonthedateofpurchase,andtheintermediaryfees such asaudit,legal service, appraisal andconsultationandother management fees for theenterprisemerger areused torecordinto theprofitsandlossesofthecurrentperiodwhenincurred.ThetransactioncostsofequityordebtsecuritiesissuedbythePurchaseras 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 adjustedaccordinglyifneworfurtherevidenceoftheexistenceofcircumstancesatthepurchasedateappearswithin12monthsafter the purchase date and the adjustment or consideration is required. The consolidation cost incurred by the Purchaser and the identifiablenetassetsacquiredduringtheconsolidationaremeasuredatthefairvalueatthedateofpurchase.Thedifferencebetween themergercostsandthefairvaluesharesoftheidentifiablenetassetsofthePurchasedatthepurchasedateobtainedinthemergeris recognizedasgoodwill.IfthecombinedcostislessthanthefairvalueoftheidentifiablenetassetsofthePurchased inthemerger, first, the fair value of the identifiable assets, liabilities and contingent liabilities of the Purchased and the measurement of the consolidationcostshallbere-checked.Iftheconsolidationcostisstillsmallerthanthefairvalueshareoftheidentifiablenetassets of thePurchased obtained in theconsolidation after there-check, thedifference shall be recorded intotheprofits andlosses of the currentperiod.
When thePurchaser acquiresthedeductibletemporarydifference ofthePurchased, ifit failstorecognizethedeferredincome tax assets on the date of purchase because it does not meet the recognition conditions for the deferred income tax, and within 12
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 monthsofthedateofpurchase,neworfurtherinformationisobtainedindicatingthattherelevantcircumstancesatthepurchasedate alreadyexistandtheeconomicbenefitsfromthetemporarydifferencedeductiblebythepurchaseronthepurchasedateareexpected toberealized,therelevantdeferredincometaxassetsshallberecognized,andthegoodwillshallbereduced.Ifthegoodwill isnot sufficientlyoffset,thedifferenceshallberecognizedasthecurrentprofitorloss;Inadditiontotheabovecircumstances,thedeferred incometaxassetsrelatedtotheenterprisemergerarerecognizedandincludedinthecurrentprofitsandlosses.
Through multi-transaction and step-by-step business combination under different control, according to the Circular of the Ministry of Finance on Printingand Issuing theInterpretation ofAccountingStandardsfor BusinessEnterprises 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 5 of Note IV), it is determined whether the multiple transactions belong to the "package deal".Inthecaseofa"packagedeal",theaccountingtreatmentshallbeperformedwithreferencetothedescriptioninthepreceding paragraphsofthissectionandNote4,13"Long-termEquityInvestments";Ifthetransactionisnota"packagedeal",theaccounting treatmentshallbedistinguishedbetweentheindividualfinancialstatementsandtheconsolidatedfinancialstatements:
In the individual financial statements, the sum of the book value of the equity investment held by the Purchaser prior to the purchasedateandthecostofthenewinvestmentatthepurchasedateshallbetakenastheinitialinvestmentcostoftheinvestment; 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 definedbenefitplanremeasuredinaccordancewiththeequitymethod,therestistransferredtothecurrentinvestmentincome). Intheconsolidatedfinancialstatements,theequityofthePurchasedheldpriortothedateofpurchaseisremeasuredaccording tothefairvalueoftheequityatthedateofpurchase,andthedifferencebetweenthefairvalueandthecarryingvalueisincludedin the investment income of the current period; Where the equity of the Purchased held before the date of purchase involves other comprehensiveincome, otherconsolidatedincomerelatedtheretoshallbeaccountedfor onthesamebasisas thedirect disposalof therelevantassetsorliabilitiesbythePurchaser(i.e.,exceptfor thecorrespondingshareinthechangecausedbytheacquisitionof thenetliabilityornetassetofthedefinedbenefitplanremeasuredinaccordancewiththeequitymethod,therestisconvertedintothe investmentincomeofthecurrentperiodtowhichtheacquisitiondatebelongs).
5.PreparationMethodofConsolidatedFinancialStatement
(1)Principlesfordeterminingthescopeoftheconsolidatedfinancialstatement
The scope of consolidation of the consolidated financial statements is determined on a control basis. Control means that the CompanyhastheauthorityovertheInvestee, enjoysavariablereturnbyparticipatingintherelevantactivities oftheInvestee, 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 Companyandallitssubsidiaries.SubsidiaryreferstothemainbodycontrolledbytheCompany.
TheCompanywillre-evaluatetheabovecontroldefinitionsoncetherelevantfactsandcircumstanceschange,whichresultsin thechangeoftherelevantelements.
(2)Preparationmethodofconsolidatedfinancialstatement
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 The Company begins to incorporate the net assets of the subsidiary and the actual control of the production and operation decisionsintothescopeofthemergerfromthedatewhenthesubsidiaryisacquired;Ceasetobeincludedinthescopeofthemerger as ofthedateoflossofeffective control.For thesubsidiariesdisposed of, theoperatingresultsandcash flows prior tothedateof disposal have been appropriately included in the consolidated income statement and consolidated cash flow statement; For subsidiaries disposed of in thecurrent period, the opening amount of theconsolidated 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 thesame control.The operating resultsand cash flows of the subsidiaries increased by consolidation under the same control from thebeginning of theconsolidation period to theconsolidation datehavebeenappropriatelyincludedintheconsolidatedprofitstatementandconsolidatedcashflowstatement,andthecomparative amountoftheconsolidatedfinancialstatementshasbeenadjustedatthesametime.
In the preparation of the consolidated financial statements, if the accounting policies or accounting periods adopted by the subsidiariesareinconsistentwiththoseadoptedbytheCompany,necessaryadjustmentsshallbemadetothefinancialstatementsof thesubsidiariesinaccordancewiththeaccountingpoliciesandaccountingperiodsoftheCompany.Forsubsidiariesacquiredthrough businesscombinationunderdifferentcontrol,thefinancial statementsshallbeadjustedonthebasisofthefair valueofidentifiable netassetsatthedateofpurchase.
Allsignificanttransactionbalances,transactionsandunrealizedprofitswithintheCompanyareoffsetatthetimeofpreparation oftheconsolidatedfinancialstatements.
The shareholders' equity and the portion of the net profit or loss of the subsidiary that is not owned by the Company for the currentperiodareseparatelypresentedasminorityshareholders'equityandminorityshareholders'profitorlossintheconsolidated financialstatementsundershareholders'equityandnetprofit.Thesharesofminorityshareholders'equityinthenetprofitsandlosses of subsidiaries for the current period are shown as "minority shareholders' profits and losses" under the net profit item in the consolidatedincomestatement.Lossessharedbyminorityshareholdersinasubsidiaryexceedtheminorityshareholders'shareinthe shareholders'equityofthesubsidiaryatthebeginningoftheperiod,andstilldecreasebyanumberofshareholders'equity.
Whenthecontroloftheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,the residualequityshallberevaluedaccordingtoitsfairvalueatthedateoflossofcontrol.Thesumofconsiderationobtainedfromthe disposalofequityandthefairvalueoftheremainingequityminusthedifferencebetweenthesharesofthenetassetsoftheoriginal subsidiarythatshallbecontinuouslycalculatedfromthepurchasedateaccordingtotheoriginalshareholdingproportionshallbe includedintheinvestmentincomeofthecurrentperiodoflossofcontrol.Othercomprehensiveincomerelatedtotheequity investmentoftheoriginalsubsidiary,intheeventoflossofcontrol,theaccountingtreatmentisperformedonthesamebasisasthe directdisposaloftherelevantassetsorliabilitiesbythePurchased(i.e.convertedtocurrentinvestmentincome,exceptforchanges resultingfromthere-measurementofthenetliabilitiesornetassetsoftheDefinedBenefitPlanintheoriginalsubsidiary).Thereafter, theresidualequityshallbesubsequentlymeasuredinaccordancewiththerelevantprovisionsofAccountingStandardsforBusiness
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 EnterprisesNo.2-Long-termEquityInvestmentorAccountingStandardsforBusinessEnterprisesNo.22-Recognitionand
MeasurementofFinancialInstruments,asdetailedinNoteIV,13-Long-termEquityInvestmentorNoteIV,9-FinancialInstruments. IftheCompanydisposesoftheequityinvestmentinsubsidiariesstepbystepuntilitlosescontrolthroughmultipletransactions. Itisnecessarytodistinguishwhetherthetransactionsthatdisposeoftheequityinvestmentinsubsidiariesuntilitlosescontrolbelong toapackagedeal ornot.Theterms,conditionsandeconomicimpactofthetransactionsforthedisposalofequityinvestmentsin subsidiariesareinaccordancewithoneormoreofthefollowingcircumstancesandgenerallyindicatethatmultipletransactions shouldbeaccountedforasapackagedeal:① Thesetransactionswereenteredintosimultaneouslyortakingintoaccounteach other'sinfluence;② Onlywhenthesetransactionsaretakentogethercanacompletebusinessresultbeachieved;③ The
occurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;④ Itisnoteconomicaltoconsidera transactionalone,butitiseconomicaltoconsideritinconjunctionwithothertransactions.Fortransactionsthatarenotpartofthe packagedeal,eachtransactionshallbeaccountedforinaccordancewiththeprinciplesapplicabletothe"partialdisposalof long-termequityinvestmentsinsubsidiarieswithoutlossofcontrol"(asdetailedin13ofNoteIV)andthe"lossofcontrolover existingsubsidiariesasaresultofthedisposalofpartoftheequityinvestmentsorotherreasons"(asdetailedinthepreceding paragraph),asappropriate.Ifthetransactionsinvolvingthedisposalofequityinvestmentsinsubsidiariesuntilthelossofcontrol belongtoapackagedeal,thetransactionsshallbeaccountedforasatransactioninvolvingthedisposalofsubsidiariesandthelossof control;However,thedifferencebetweeneachdisposalpriceandtheshareofthesubsidiary'snetassetscorrespondingtothedisposal investmentpriortothelossofcontrolisrecognizedintheconsolidatedfinancialstatementsasotherconsolidatedgainsand transferredtotheprofitorlossforthecurrentperiodoflossofcontrolintheeventoflossofcontrol.
6.ClassificationofJointVentureArrangementsandAccountingTreatmentofJointOperation
Ajointventurearrangementisanarrangementunderthejointcontroloftwoormoreparticipants.TheCompanydividesthe jointventurearrangementintojointventuresandjointventuresinaccordancewiththerightsandobligationsitenjoysinthejoint venturearrangement.JointoperationreferstothejointventurearrangementinwhichtheCompanyenjoystheassetsrelatedtothe arrangementandassumestheliabilitiesrelatedtothearrangement.Ajointventurereferstoajointventurearrangementinwhichthe Companyonlyhasrightsoverthenetassetsofthearrangement.
TheCompany'sinvestmentinthejointventureisaccountedforusingtheequitymethod,andshallbetreatedinaccordancewith theaccountingpolicydescribedinNoteIV,13"Long-termEquityInvestmentAccountedbytheEquityMethod".
TheCompany,asajointventureparty,recognizestheassetsandliabilitiesheldandassumedbytheCompanyseparately,and recognizestheassetsandliabilitiesjointlyheldandassumedbytheCompanyaccordingtothesharesoftheCompany;recognizesthe revenuegeneratedfromthesaleoftheshareofjointoperatingoutputenjoyedbytheCompany;recognizesrevenuegeneratedfrom thesaleofoutputfromjointoperationsonthebasisoftheCompany'sshare;confirmstheexpensesincurredbytheCompany individuallyandtheexpensesincurredbythejointoperationaccordingtothesharesoftheCompany.
WhentheCompanyinvestsorsellsassetsasajointventure(suchassetsdonotconstitutebusiness,thesamebelow),or purchasesassetsfromthejointventure,theCompanyrecognizesonlytheportionoftheprofitsandlossesattributabletotheother participantsinthejointventurethatarisesfromthetransactionpriortothesaleofsuchassetstoathirdparty.Wheresuchassetsare
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 impairedinaccordancewiththeprovisionsofAccountingStandardsforBusinessEnterprisesNo.8-ImpairmentofAssets,the CompanyshallfullyrecognizesuchlossesinthecasewheretheassetsarecastorsoldbytheCompanytojointoperations;Forthe assetspurchasedbytheCompanyfromthejointoperation,theCompanyrecognizesthelossesaccordingtothesharesitassumes. 7.DeterminingStandardsforCashandCashEquivalent
Cash and cash equivalents of the Company include cash on hand, deposits that can be used for payment at any time, and investmentsheldbytheCompanywithashortterm(usuallymaturingwithinthreemonthsfromthedateofpurchase),highliquidity, easyconversionintocashofaknownamount,andlittleriskofvaluechange.
8.ForeignCurrencyBusinessandTranslationofForeignCurrencyStatements
(1)Translationmethodforforeigncurrencytransaction
At the time of initial confirmation, the foreign currency transactions occurring in the Company shall be converted into the bookkeepingfunctionalcurrencyamountatthespotexchangerateonthetradingday,buttheforeigncurrencyexchangebusinessor transactions involving foreign currency exchange occurring in the Company shall be converted into the bookkeeping functional currencyamountattheactualexchangerate.
(2)Translationmethodforforeigncurrencymonetaryitemsandforeigncurrencynon-monetaryitem
Onthebalancesheetdate,theforeigncurrencymonetaryitemsareconvertedatthespotexchangerateonthebalancesheetdate, 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 principleofcapitalizationofborrowingcosts;② Theexchangedifferenceofthehedginginstrumentsusedforeffectivehedgingof thenetinvestmentinoverseasoperations(thedifferenceisincludedinothercomprehensiveincome,andisnotrecognizedascurrent profit orlossuntil thenetinvestment isdisposed of);③ Except for theamortizedcost, theexchangedifferences arisingfrom the changes in the book balance of the available-for-sale monetary items in foreign currencies shall be included in the other comprehensiveincome,andshallbeincludedintheprofitsandlossesofthecurrentperiod.
Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign currency monetaryitemsconstitutingnetinvestmentinoverseasoperations,theexchangedifferencesarisingfromexchangeratechangesshall beincludedinothercomprehensiveincome;Whendisposingofoverseasoperations,theprofitsandlossesshallbetransferredtothe currentdisposalperiod.
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 measuredatfairvalue,thespotexchangerateatthedateoffairvaluedeterminationshallbeadoptedforconversion.Thedifference betweentheconvertedamountinfunctionalcurrencyandtheamountinoriginalfunctionalcurrencyshallbetreatedasthechangein fairvalue(includingthechangeinexchangerate),andshallberecordedintotheprofitsandlossesofthecurrentperiodorrecognized asothercomprehensiveincome.
(3)Translationmethodforfinancialstatementsinforeigncurrencies
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Where the preparation of the consolidated financial statements involves overseas operations, if there are foreign currency monetaryitemsconstitutingnetinvestmentinoverseasoperations,theexchangedifferencesarisingfromexchangeratechangesshall beas"foreigncurrencyreportconversiondifference"andbeconfirmedasothercomprehensiveincome;Whendisposingofoverseas operations,theprofitsandlossesshallbetransferredtothecurrentdisposalperiod.
TheforeigncurrencyfinancialstatementsofoverseasoperationsshallbeconvertedintoRMBstatementsinthefollowingways: the assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; Except for "undistributedprofits",otheritemsofshareholders'equityshallbeconvertedatthespotexchangerateatthetimeofoccurrence.The incomeandexpenseitemsintheprofitstatementshallbeconvertedattheaverageexchangerateofthecurrentperiodonthedateof transaction.Theundistributedprofitatthebeginningoftheperiodshallbetheundistributedprofitattheendoftheperiodconverted 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.Incaseofdisposalofoverseasoperationsandlossofcontrol,thebalanceintranslationoftheforeigncurrencystatements related to the overseas operations as shown below in the shareholders' equity items in the balance sheet shall be transferred to the profitsandlossesofthedisposalperiodinwholeorinproportiontothedisposaloftheoverseasoperations.
Cashflowsinforeigncurrenciesandcashflowsofoverseassubsidiariesshallbeconvertedattheaverageexchangerateofthe currentperiodonthedateofoccurrenceofthecashflows.Theeffectofexchangeratechangesoncashshallbepresentedseparately inthestatementofcashflowsasanreconcilingitem.
Opening amounts and prior-period actual amounts shall be shown on the basis of amounts translated from the prior-period financialstatements.
When disposingof all theowner's equity oftheCompany's overseas operationsor losingthecontrol over overseasoperations duetothedisposalofpartoftheequityinvestmentorforotherreasons,ifthefollowingitemsofshareholders'equityinthebalance sheet are shown below,the balance in translation of the foreign currency statement attributable to the owner's equity of the parent companyrelatedtotheoverseasoperationshallbetransferredtotheprofitsandlossesofthecurrentdisposalperiod.
Intheeventthattheproportionofoverseasbusinessinterestsisreducedduetothedisposalofpartoftheequityinvestmentor forotherreasons,butthecontroloveroverseasbusinessoperationsisnotlost,thebalanceinthetranslationoftheforeigncurrency statements related to the disposal of part of overseas business operations shall be attributed to minority shareholders' interests and shallnotbetransferredtotheprofitsandlossesofthecurrentperiod.Whendisposingofpartoftheequityofanoverseasoperation asanassociatedenterpriseorajointventure,thebalanceofthetranslationoftheforeigncurrencystatementsrelatedtotheoverseas operation shall be transferred into the profits and losses of the current disposal period in the proportion of the overseas operation disposedof.
9.Financialinstruments
Afinancial asset or financial liability is recognized when the Company becomes a contracting party to a financial instrument contract.Financialassetsandfinancialliabilitiesaremeasuredatfairvaluewheninitialrecognitionismadeforthem. Forfinancial
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 assets and financial liabilities measured at fair value and their changes are recognized in current period profit or loss, related transaction cost shall be directly recognized in profit or loss. For other types of financial assets and financial liabilities, related transactioncostshallberecognizedintheirinitialrecognitionamount.
(1)Methodfordeterminingfairvalueoffinancialassetsandfinancialliabilities
“Fairvalue” refers to the price that needing to be paid by a market participant for selling an asset or transfer a liability in an orderlytransactionoccurringonmeasurementdate.ThepricefrommajormarketisusedbytheCompanytomeasurethefairvalueof financial assetsandfinancial liabilities.Intheeventthatthereisnomajormarketfor aspecificfinancialasset orfinancialliability, thepricefrommostfavorablemarketisusedtomeasurethefairvalueofthefinancialassetandfinancialliability,andthevaluation techniquesthatareapplicableatthetimeandsufficientdataareavailableforthemtouseandcanbesupportedbyotherinformation. The input value used in Fair Value Measurement is divided into three levels, specifically, first-level input value is the unadjusted quotationforthesameassetorliabilitythatcanbeobtainedinanactivemarketonthemeasurementdate;second-levelinputvalueis theinputvaluethatcanbedirectlyorindirectlyobservedforrelatedassetorliabilityexceptforthefirst-levelinputvalue;third-level input value is the unobservable input value of related asset or liability.First-level input value is firstly used by the Company, and third-level inputvalueisofthelowest priority.Thelevel oftheresult ofafairvalue measurementisdeterminedbythelowest one amongthelevelsoftheinputvaluesthataresignificanttotheoverallfairvaluemeasurement.
(2)Classification,confirmationandmeasurementoffinancialassets
FinancialassetsshallbetradedinusualmodeandrecognizedandderecognizedbasedonthedatafromTransactionDate.Financial assets areclassified intofinancial assets thataremeasured at fair value andtheirchangesare recognizedincurrent periodprofit or loss,held-to-maturityinvestments,loansandreceivables,andavailable-for-salefinancialassets.
①Financialassetsthataremeasuredatfairvalueandtheirchangesarerecognizedincurrentperiodprofitorloss
Includingtradingfinancialassetsandfinancialassetsdesignatedasbeingmeasuredatfairvalueandtheirchangesbeingrecognized incurrentperiodprofitorloss
Trading FinancialAsset refers to the financial asset that satisfies one of the following conditions:A. The purpose of obtaining the financial asset is mainly for sale in near future; B. It is part of the identifiable financial instrument portfolio for centralized managementandthereisobjectiveevidenceindicatingthattheCompanyhasrecentlyadoptedashort-termprofit-makingmethodto manage theportfolio; C. It is a derivative instrument, except for aderivative that isdesignated as an effective hedginginstrument, underafinancialguaranteecontract,andassociatedwithaequityinstrumentthathasnoquotationinanactivemarket,itsfairvalue cannotbereliablymeasuredandcanonlybesettledthroughthedeliveryoftheequityinstrument.
Afinancialassetthatmeetsoneofthefollowingconditionscanbedesignatedasafinancialassetthatismeasuredatfairvalueandits changesarerecognizedincurrentperiodprofitorloss:A.Thedesignationcaneliminateorsignificantlyreducetheinconsistencyin recognition ormeasurement of related gains or losses caused by thedifference of measurement basis of thefinancial asset; B.The formal written documents in respect to the Company's risk management or investment strategy have expressly stated that the financial asset portfolio ortheportfolio of financial assets andfinancial liabilitiesto which thefinancial asset belongsis managed, evaluatedbasedonfairvalueandisreportedtokeymanagementpersonnel.
Afinancial asset that is measured at fair value and its changes is recognized in current period profit or loss shall be subsequently measured at fair value. The gain or loss arising from the changes in fair value and the dividend and interest associated with the financialassetshallberecognizedinprofitorloss.
②Held-to-maturityinvestments
Held-to-MaturityInvestmentreferstoanon-derivativefinancialassetthathasafixedmaturitydate,afixedordeterminablerecovery amount,andtheCompanyhasaclearintentionandabilitytoholdittomaturitydate.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Aheld-to-maturityinvestmentshallbesubsequentlymeasuredwitheffectiveinterestmethodaccordingtoamortizedcost.Thegains orlossesarisingfromderecognition,impairmentoramortizationshallberecognizedinprofitorloss.
Effective Interest Method refers to the method of calculating amortized cost and interest income or expense for each installment according to effective interest rate of a financial asset or a financial liability (including a group of financial assets or financial liabilities).Theeffectiveinterestrateistheinterestrateusedtodiscountthefuturecashflowofafinancialassetorfinancialliability overexpectedperiodofexistenceorinanapplicableshorterperiodtothecurrentcarryingamountofthefinancialassetorfinancial liability.
Oncalculatingtheeffectiveinterestrate,thefuturecashflows(excludingfuturecreditloss)shallbeestimatedbytheCompanybased onallcontractualtermsoffinancialassetsorfinancialliabilities.Atthesametime,variouscharges,transactionfeesanddiscountsor premiumsthatarepaidorcollectedwillbetweencontractingpartiesoffinancialassetsandfinancialliabilitiescontractsandarepart oftheactualinterest.
③ Loansandreceivables
Loans and receivables refer to non-derivative financial assets that have no quotation in an active market and have a fixed or determinable recovery amount. The financial assets classified as loans or receivables by the Company include notes receivable, accountsreceivable,interestreceivable,dividendsreceivableandotherreceivables.
Aloanorreceivableissubsequentlymeasuredwitheffectiveinterestmethodaccordingtoamortizedcost.Thegainsorlossesarising fromderecognition,impairmentoramortizationarerecognizedinprofitorloss.
④Available-for-salefinancialassets
Includingnon-derivativefinancialassetsthataredesignatedasavailable-for-salefinancialassetsoninitialrecognition,andfinancial assetsotherthanthefinancialassetsthataremeasuredatfairvalueandtheirchangesarerecognizedincurrentperiodprofitorloss, loansandreceivables,held-to-maturityinvestments.
Theendingcostofanavailable-for-saleliabilityinstrumentinvestmentshallbedeterminedwithAmortizedCostMethod,specifically, itistheamountfromdeductingimpairmentlossfromthecumulativevaluegeneratedfromamortizingwithEffectiveInterestMethod theinitialrecognitionamounthavingrepaidprincipaldeductedplusorminusthedifferencebetweentheaforesaidinitialrecognition amount and the amount on maturity date. The ending cost of an available-for-sale equity instrument investment is its initial acquisitioncost.
The available-for-salefinancial assets shallbesubsequentlymeasured atfair value. Except for impairmentlossesandtheexchange difference associated with amortized cost of foreign currency monetary financial assets that shall be recognized in current period profitorloss,thegainsorlossesarisingfromchangesinfairvalueshallberecognizedinothercomprehensiveincome,andshallbe transferred out and recognized in current period profit or loss when the financial assets are derecognised. However, an equity instrument investment that has no quotation in an active market and whose fair value cannot be reliably measured and derivative financial assetsthatareassociated withequityinstrumentandonlybesettledthroughthedeliveryoftheequityinstrumentshallbe subsequentlymeasuredatcost.
Theinterestearnedduringtheperiodinwhichanavailable-for-salefinancialassetisheldandthecashdividendsdeclaredbyinvestee shallbeincludedininvestmentincome.
Aheld-to-maturityinvestmentshallbemeasuredatcostoramortizedcostintheeventthatholdingintentionorcapabilitychanges,or fair value can no longer be reliably measured, or the period upon the held-to-maturityinvestment’s being reclassified as available-for-sale financial asset in accordance with Article 16 of the Accounting Standards for Business Enterprises No. 22– RecognitionandMeasurementofFinancialInstrumentsexceedstwofullfiscalyears,thusthefinancialassetisnolongerapplicable formeasurementatfairvalue.Onthereclassificationdate,thecostoramortizedcostofthefinancialassetshallbethefairvalueor bookvalueoftheday.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 If a financial asset has a fixed maturity date, thegains or losses that are related to the financial asset and have been recognized in other comprehensive income shall be amortized with effective interest method over the remaining term of the financial asset and recognized incurrentperiodprofit orloss;Thedifferencebetween theamortizedcost oftheasset andtheamountonmaturitydate shall be amortized with effective interest method over the remaining term of the financial asset and recognized in current period profitorloss.Ifafinancialassethasnofixedmaturitydate,thegainsorlossesoriginallyrecognizedinothercomprehensiveincome shall be retained in the shareholders' equity, and transferred out and recognized in current period profit or loss when the financial assetisdisposed.
(3)Impairmentoffinancialassets
Except for thefinancial assets that are measured at fair value and their changes are recognized in current period profit or loss, the book value of other financial assets shall be checked by the Company on each the balance sheet date. In the event that there is objectiveevidenceindicatingthatsomefinancialassetisimpaired,provisionforassetimpairmentshallbeaccrued.
ImpairmenttestshallbecarriedbytheCompanyonfinancialassetswithsignificantsingleamount.Impairmenttestcanbeconducted onthefinancialassetshavingnosignificantsingleamountindividuallyorbyhavingthemincludedinaportfoliooffinancialassets withsimilarcreditriskcharacteristics.Intheeventthatnoimpairmentisfoundinthefinancialassets(includingfinancialassetswith or without significant single amount) that are tested individually, impairment test shall be conducted for the financial assets by includingtheminaportfoliooffinancialassetswithsimilarcreditriskcharacteristics.Impairmenttestwillnotbeconductedforthe financialassetsthathavebeenconfirmedhaveimpairmentthroughindividualtestbyincludingtheminaportfoliooffinancialassets withsimilarcreditriskcharacteristics.
① Impairmentofheld-to-maturityinvestmentsandloansandreceivables
Thebookvalueoffinancialassetsmeasuredatcostoramortizedcostshallbewrittendowntothepresentvalueofestimatedfuture cashflow,andthewritten-downamountshallberecognizedasanimpairmentlossandberecognizedincurrentperiodprofitorloss. In the event that there is objective evidence indicating that the value of a financial asset has recovered after recognition of impairmentloss,andisobjectivelyrelatedtotheeventsoccurringaftertherecognitionofimpairmentlossofthefinancialasset,the previouslyrecognizedimpairmentlossshallbereversed.Thebookvalueofthefinancialasset after theimpairmentlossisreversed shall not exceed the amortized cost of the financial asset on the reversal date assuming that no provision for impairment loss is accrued.
② Impairmentofavailable-for-salefinancialassets
In the event that it has been determined based on comprehensive relevant factors that the decline in the fair value of an available-for-sale equity instrument investment is a serious decline or non-temporary decline, it indicates that there is impairment lossfortheavailable-for-saleequityinstrumentinvestment.Theaforesaid “seriousdecline” referstothesituationthatcumulativedeclineinfairvalueexceeds20%; “non-temporarydecline” referstothesituationthatthecontinuousdeclineinfairvalueexceeds 12months.Thebasisfortheperiodofcontinuousdeclineis:
a.Theissuerorthedebtorhasseriousfinancialdifficulties;
b.Thedebtorviolatesthetermsofcontract,suchasdefaultoroverduepaymentofinterestorprincipal;
c.Thecreditormakesconcessionstothedebtorwhohasfinancialdifficultiesduetoeconomicorlegalconsiderations;
d.Thedebtorislikelytoclosedownorcarryoutotherfinancialrestructurings;
e.Thefinancialassetcannotbetradedfurtherinanactivemarketduetomajorfinancialdifficultiesoftheissuer;
f. It isimpossible to identify whether thecash flow of an asset in a portfolio of financial assets has decreased, but after an overall evaluation based on the public data, it is found that the estimated future cash flow of the portfolio of financial assets has indeed decreased since the initial confirmation and measurable, such as the increasingly deterioration ofdebtor’s ability to pay for the portfoliooffinancialassets,ortheriseofunemploymentrateofthecountryorregionwherethedebtoris,significantdeclineofthe
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 priceofcollateralintheregionwherethecollateralis,andthedownturnoftheindustryinwhichthedebtoris;
g. Significant adverse changes occurring in the technical, market, economic or legal environment in which the issuer of theequity instrumentoperatesarelikelytomakeequityinstrumentinvestorunabletorecoverinvestmentcost;
h. The fair value of equity instrument investment has experienced a serious or non-temporary decline; serious decline or non-temporarydecline
i.Otherobjectiveevidenceindicatingthatfinancialassetsareimpaired.
Intheeventofanyimpairmentlosstoanavailable-for-salefinancialasset,theaccumulatedlossesarisingfromthedeclineinthefair value of the available-for-sale financial asset that has been recognized in other comprehensive income shall be transferred out and recognizedincurrentprofitorloss.Thetransferred-outaccumulatedlossesshallbethebalanceoftheinitialacquisitioncostofthe asset minusthe recovered principal and amortized amount, thecurrent fair value and theimpairment losspreviouslyrecognized in profitorloss.
In the event that there is objective evidence indicating that the value of a financial asset has recovered after recognition of impairmentloss,andisobjectivelyrelatedtotheeventsoccurringaftertherecognitionofimpairmentlossofthefinancialasset,the previously recognized impairment loss shall be reversed, and the transferred impairment loss of the available-for-sale equity instrumentinvestmentshallberecognizedasothercomprehensiveincome,andtheimpairmentlossoftheavailable-for-saleliability instrumentshallbereversedtothecurrentprofitandloss.
An equity instrument investment that has no quotation in an active market and its fair value cannot be reliably measured, or a derivativethatisassociatedwiththeequityinstrumentandcanonlybesettledthroughthedeliveryoftheequityinstrumentshallnot bereversed.
(4)Recognitionbasisandmeasurementmethodoffinancialassettransfer
Afinancial asset that satisfies one of the following conditions shall be derecognized:① The termination of contractual right to receivethecashflowofthefinancialasset;② Thefinancialassethasbeentransferred,andalmostalltherisksandrewardsofthe ownership of the financial asset are transferred to the transferee;③The financial asset has been transferred, and although the Companyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipofthefinancialasset,thecontrolof thefinancialassethasbeenwaivedbytheCompany.
Wherealltherisksandrewardsoftheownershipofthefinancialassetneitherhavebeentransfersnorretained,andnocontrolofthe financialassethasbeenwaivedbytheCompany,thefinancialassetshallberecognizedaccordingtotheextentoflaterinvolvement in the transferred financial asset, and relevant liabilities shall be recognized accordingly.The “extent of later involvement in the transferredfinancialasset” referstothelevelofriskscausedtotheCompanybythechangeinvalueofthefinancialasset. Whentheoveralltransferofafinancialassetmeetstheconditionsforderecognition,thedifferencebetweenthecarryingamountof thetransferredfinancialassetandthesumoftheconsiderationreceivedfromthetransferandtheamountofaccumulatedchangesin fairvalueoriginallyrecognizedinothercomprehensiveincomeshallberecognizedincurrentperiodprofitorloss.
Ifthepartialtransferofafinancialassetmeetstheconditionsforderecognition,thebookvalueofthetransferredfinancialassetshall be apportioned between the derecognized and the non-derecognized portions based on their proportion in fair value, and the differencebetweenthesumoftheconsiderationreceivedfromthetransferandtheamountofaccumulatedchangesinfairvaluethat shall be apportioned for derecognition and originally recognized in other comprehensive income and the aforesaid apportioned carryingamountshallberecognizedincurrentperiodprofitorloss.
For a financial asset that is sold with recourse or is transferred by endorsement by the Company, it shall be determined whether almostalltherisksandrewardsoftheownershipofthefinancialassethavebeentransferred.Thefinancial assetthatalmostallthe risksandrewardsofitsownershiphavebeentransferredtotransfereeshallbederecognized;thosealmostalltherisksandrewardsof their ownership are retained, shall not be derecognized. For those almost all the risks and rewards of their ownership are neither
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 transferred nor retained, whether the Company has the control of the financial assets shall be judged, and accounting treatment to themshallbeconductedaccordingtotheprinciplesdescribedintheprecedingparagraphs.
(5)Classificationandmeasurementoffinancialliabilities
Financialliabilitiesareclassifiedintofinancialliabilitiesthataremeasuredatfairvalueandtheirchangesarerecognizedincurrent periodprofit orlossandotherfinancialliabilitiesoninitialrecognition.Theinitialrecognitionoffinancialliabilitiesismeasuredat fair value. For financial liabilities that are measured at fair value and their changes are recognized in current period profit or loss, relatedtransactioncostshallbedirectlyrecognizedincurrentperiodprofit orloss.Forotherfinancial liabilities,relatedtransaction costshallberecognizedininitialrecognitionamount.
①Financialliabilitiesthataremeasuredatfairvalueandtheirchangesarerecognizedincurrentperiodprofitorloss
Theclassificationcriteriafortradingfinancialliabilitiesandfinancialliabilitiesdesignatedasbeingmeasuredatfairvalueandtheir changes being recognized in current period profit or loss are the same with those for trading financial assets and financial assets designatedasbeingmeasuredatfairvalueandtheirchangesbeingrecognizedincurrentperiodprofitorloss.
Afinancialliabilitythatismeasuredatfairvalueanditschangesisrecognizedincurrentperiodprofitorlossshallbesubsequently measured at fair value. The gain or loss arising from the changes in fair value and the dividend and interest associated with the financialliabilitiesshallberecognizedinprofitorloss.
②Otherfinancialliabilities
Thederivativefinancialliabilitiesthatareassociatedwithequityinstrumentthathasnoquotationinanactivemarketandwhosefair valuecannotbereliablymeasuredandareonlysettledthroughthedeliveryoftheequityinstrumentshallbesubsequentlymeasured atcost.Otherfinancialliabilitiesshallbesubsequentlymeasuredwitheffectiveinterestmethodaccordingtoamortizedcost,andthe gainsorlossesarisingfromderecognitionoramortizationshallberecognizedinprofitorloss.
③ Financialguaranteecontract
Financial guarantee contracts that are not designated as financial liabilities that are measured at fair value and their changes are recognizedincurrentperiodprofitorloss,shallbeinitiallyrecognizedatfairvalue,thesubsequentmeasurementshallbemeasured attheamountdeterminedinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.13-Contingenciesafterinitial recognitionorthebalanceoftheinitialrecognitionamountminusaccumulatedamortizationamountdeterminedinaccordancewith theprincipleof “AccountingStandardsforBusinessEnterprisesNo.14–Income”,whicheverislarger.
(6)Derecognitionoffinancialliabilities
Afinancialliabilityorpartofitcanbederecognizedonlyafterallorpartofitsexistingobligationhasbeendischarged.Intheevent thattheCompany(debtor)anditscreditorsignanagreementtoreplacetheexistingfinancialliabilitywithanewfinancialliability, andthecontract termsfor newfinancial liabilityandtheexistingfinancial liabilityare substantiallydifferent, theexistingfinancial liabilityshallbederecognizedandthenewfinancialliabilityshallberecognizedatthesametime.
Ifafinancialliabilityisderecognizedinwholeorinpart,thedifferencebetweenthecarryingamountofthederecognizedportionand theconsiderationpaid(includingtransferrednon-cashassetsornewfinancialliabilities)shallberecognizedincurrentperiodprofit orloss.
(7)Derivativesandembeddedderivatives
Derivatives are initially measured at fair value on the execution date of relevant contracts, and shall be measured at fair value subsequently.Exceptfor thederivativesthataredesignatedashedginginstrumentsandarehighlyeffectiveinhedgingwhosegains orlossesarisingfromthechangesinfairvaluewillbedeterminedbasedonthenatureofthehedgingrelationshipinaccordancewith the requirements of hedge accounting, thechanges in fair value of other derivatives shall be recognized in current period profit or loss.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Ifahybridinstrumentincludingaembeddedderivativeisnotdesignatedasfinancialassetsorfinancialliabilitiesthataremeasuredat fairvalueandtheirchangesarerecognizedincurrentperiodprofitorloss,theembeddedderivativedoesnothaveacloserelationship withthemaincontractintermsofeconomiccharacteristicsandrisks,andifaderivativehavingthesameconditionwithembedded derivative, the tools that exist separately are defined by the derivatives, and the embedded derivative shall be separated from the hybrid instrument and treated as an independent derivative financial instrument. If an embedded derivative cannot be measured separately at the time of acquisition or subsequent the balance sheet date, the hybrid instrument shall be designated as a financial assetorfinancialliabilitythatismeasuredatfairvalueanditschangesarerecognizedincurrentperiodprofitorloss.
(8)Offsetoffinancialassetsandfinancialliabilities
WhentheCompanyhasthestatutoryrighttooffsetarecognizedfinancialassetandarecognizedfinancialliabilityandthestatutory right can be enforced at the time, and the Company plans to settle with net amount or realize the financial asset and pay off the financial liability simultaneously, the financial asset and the financial liability shall be presented in balance sheet with the offset amountandshallnotoffseteachother.
(9)Equityinstruments
AnequityinstrumentisacontractthatcanevidencearesidualequityintheassetsoftheCompanyafterdeductingallliabilities.TheCompany’sissuing(includingrefinancing),repurchasing,sellingandcancellingequityinstrumentsarethetreatmentofchangesin equitybytheCompany.TheCompanydoesnotrecognizethechangesinthefairvalueofequityinstruments.Thetransactioncosts associatedwithequitytransactionsshallbedeductedfromequity.
Various distributionsbytheCompanyto itsequityinstrument holders(excludingstock dividends)reduceshareholders' equity.The Companydoesnotrecognizethechangesinthefairvalueofequityinstruments.
10.Accountsreceivable
Receivablesincludenotesreceivable,accountsreceivable,andotherreceivables.
(1)Recognitioncriteriaforprovisionforbaddebts
The Company checks the book value of receivables on the balance sheet date. If there is any objective evidence indicating that a receivableisimpaired,provisionforimpairmentshallbeaccrued:①Debtorentity’ cancellation,bankruptcy,insolvency,serious shortageofcashflow,suspensionofproductionduetoseriousnaturaldisasters,debtscannotberepaidwithinforeseeabletime;②Debtorviolatestermsofcontract(suchasdefaultoroverduepaymentofinterestorprincipal),andthedebtor’sdelayofperforming obligation ofrepaying debtsexceed 5 years;③Debtor islikely toclose down or carry out other financial restructuring;④ other objectiveevidenceindicatingimpairmentofreceivables.
(2)Accrualmethodforprovisionforbaddebts
Allowancemethodisadoptedforbaddebtsthatmay occur.Attheendoftheyear,impairment testiscarried outindividuallyorin combination.Theprovisionforbaddebtsshallbeaccruedbasedonthedifferencebetweenthepresentvalueandthebookvalueof future cash flow, and recognized in current profit or loss, but provision for bad debts will not be accrued for the receivables (including dividends receivable) between the subsidiaries within group, the public maintenance fund and the house sales funds deposited in the housing fund management center, deposit for capital recognizance and deposits, and the petty cash on accountcausedbyemployees’ borrowings.Forreceivableswithconclusiveevidenceindicatingthattheyindeedcannotbecollected,they willbetreatedasbaddebtsafterapprovedaccordingtotheproceduresoftheCompanyandwriteoffaccruedprovisionforbaddebts.① Confirmationcriteriaandaccrualmethodforprovisionforbaddebtsforaccountsreceivablewithsignificantsingleamountand singleprovisionforbaddebts
Areceivable with an amount of more than RMB 10 million or a single amount reaches5% (and above) of relevant item shall be recognizedbytheCompanyasareceivablewithsignificantsingleamount.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Impairment test is conducted by the Company on the receivables with significant single amount individually receivables with significant single amount. If there is no impairment in a receivable tested individually, impairment test shall be conducted by includingthereceivableinaportfolioofreceivableswithsimilarcreditriskcharacteristics.Impairmenttestwillnotbeconductedfor areceivablethatnoimpairmentlosshasbeendeterminedbyindividualtestbyincludingthereceivableinaportfolioofreceivables withsimilarcreditriskcharacteristics.
② Basisfordeterminingthereceivablesforprovisionforbaddebtsbycreditriskcombination,andaccrualmethodforbaddebts A.Basisfordeterminingthecombinationofcreditriskcharacteristics
Receivableswithoutsignificantsingleamountorwithsignificantsingleamountbuthavingnoimpairmentinindividualtestshallbe groupedaccordingtothesimilarityandcorrelationofcreditriskcharacteristics.Thesecreditriskstypicallyreflectthedebtors'ability torepayallamountduebasedoncontractualtermsofassetsandarerelatedtothefuturecashflowestimatesoftheassetsundertest. Confirmationcriteriafordifferentcombinations:
Item ConfirmationCriteriaforCombination
ClassifycombinationsofaccordingtotheCreditrisk AgingPortfolio
characteristicsbasedonageingofaccountsreceivable Accordingtotheaffiliationbetweenaccountsreceivableand Receivablesbetweenfinalcontrollingpartyanditssubordinateunits
thesubjectofthetransaction
Publicmaintenancefundandthehousesalesfundsdepositedinthe Accordingtothenatureofreceivable
housingfundmanagementcenter.
Deposit/SecuritydepositPortfolio Accordingtothenatureofreceivable
AccordingtotheaffiliationbetweenaccountsreceivableandPettycashonaccountcausedbyemployees’ borrowings
thesubjectofthetransaction
B.Accrualmethodforprovisionforbaddebtsbasedoncombinationofcreditriskcharacteristics
When an impairment test is conducted in combination mode, the amount of provision for bad debts is determined based on thestructureofportfolioofreceivablesandsimilarcreditriskcharacteristics(thedebtor’sabilitytorepayarrearsaccordingtocontract terms)accordingtohistoricallossexperience,currenteconomicconditionsandevaluationofestimatedlossthatalreadyexistsinthe portfolioofreceivables.
Theaccrualmethodfordifferentportfolioofprovisionforbaddebts:
Item AccrualMethod
AgingPortfolio AccrualproportioncorrespondingtoagingPortfolio Receivables between final controlling party and its subordinate
Provisionforbaddebtswillnotbeaccrued.
units
Publicmaintenancefundandthehousesalesfundsdepositedin
Provisionforbaddebtswillnotbeaccrued.
thehousingfundmanagementcenter.
Deposit/SecuritydepositPortfolio Provisionforbaddebtswillnotbeaccrued.
Pettycashonaccountcausedbyemployees’ borrowings Provisionforbaddebtswillnotbeaccrued.
a.Combinationaccrualmethodforaccruingprovisionforbaddebtswithaginganalysismethodinportfolio
|||
|-|-|
|AccrualProportionofNotesReceivable（%）|Accrual Proportion ofAccountsReceivable（%）|
|0|0|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|AccrualProportionofNotesReceivable（%）|Accrual Proportion ofAccountsReceivable（%）|
|2|2|
|5|5|
|20|20|
|50|50|
|80|80|
|100|100|

b.Descriptionofaccrualmethodforaccruingprovisionforbaddebtswithothermethodinportfolio
|||
|-|-|
|AccrualProportionofNotesReceivable（%）|AccrualProportionofAccountsReceivable（%）|
|Provisionforbaddebtswillnotbeaccrued.|Provisionforbaddebtswillnotbeaccrued.|
|Provisionforbaddebtswillnotbeaccrued.|Provisionforbaddebtswillnotbeaccrued.|
|Provisionforbaddebtswillnotbeaccrued.|Provisionforbaddebtswillnotbeaccrued.|
|Provisionforbaddebtswillnotbeaccrued.|Provisionforbaddebtswillnotbeaccrued.|

③ Receivableswithasingleitemamountthatisnotsignificantbutthatareindividuallyprovisionedforbaddebts
TheCompanyconductsimpairmenttestseparatelyforreceivablesthatarenotsignificantinindividualamountbuthavethefollowing characteristics.Ifthereisobjectiveevidencethatithasbeenimpaired,thedifferencebetweenthepresentvalueoffuturecashflows and its book value is Confirm the impairment loss and make provision for bad debts. Such as: receivables from related parties; receivables that are in dispute with the other party or involve litigation or arbitration; there are clear indications that the debtor is likelytobeunabletomeettherepaymentobligationsofthereceivables.
(3)Reversalofbaddebts
If thereisobjectiveevidencethat thevalue ofthereceivablehasbeenrecovered andisrelated totheeventsthat occurredafter the recognition of the loss, the previously recognized impairment loss is reversed and recognized in profit or loss. However, the book value after the reversal does not exceed the amortized cost of the receivable on the reversal date, assuming no provision for impairment.
IftheCompanytransfersthereceivablestothefinancialinstitutionwithoutrecourse,thedifferencebetweenthetransactionamount andthebookvalueoftheresoldreceivablesandrelatedtaxeswillbeincludedinthecurrentprofitandloss.
11.Inventory
(1)Classificationofinventory
Inventories mainly include raw materials, turnover materials, developed products, inventory goods, materials in transit,
commissionedprocessing,andreservetankerstorage.
(2)Valuationmethodforobtainingandissuinginventory
Inventoriesarevaluedatactualcostwhentheyareacquired.Inventorycostsincludepurchasecosts,processingcostsandothercosts.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Theyarevaluedwithweightedaveragemethodwhentheyareusedandissued.
(3)Confirmationofnetrealizablevalueofinventoriesandmethodofaccrualoffallingpricereserve
NetRealizableValuereferstotheamountofestimatedsellingpriceofinventoriesminustheestimatedcosttillcompletion,estimated expensesfor sellingactivityandrelatedtaxes andfees indailyactivities.When determiningthenetrealizablevalueofinventories, solidevidenceobtainedshallbethebasis,andthepurposeofholdingtheinventoriesandtheimpactofeventsafterthebalancesheet dateshallbeconsidered.
On the balance sheet date, inventories shall be measured at cost or net realizable value, whichever is the lower. 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 provisionforinventorydevaluationofalargenumberofinventorieswithlowunitpricesshallbebasedonthetypeofinventory;for inventories related to the product range produced and sold in same region, having the same or similar end use or purpose, and difficulttobeseparatedfromotheritemsformeasurement,theirprovisionforinventorydevaluationcanbecombinedandaccrued. After the provision for inventory devaluation is accrued, if the factors cause the previous written-down inventory value have disappeared,andthesituationresultsinthefactthatthenetrealizablevalueoftheinventorieshigherthanthebookvalue,theamount oftheprovisionforinventorydevaluationthathasbeenaccruedshallbereversedandincludedinthecurrentperiodprofitorloss. (4)TheCompanyadoptsperpetualinventorysystemasitsinventorysystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagingmaterials
Low-valueconsumablesareamortized onaone-offbasis/ partialamortizationmethodwhen theyare used;packagingmaterialsare amortizedonaone-offbasis/partialamortizationmethodwhentheyareused.
12.Held-for-saleassets
If the book value of a non-current asset or to-be-disposed portfolio is recovered by the Company mainly through sale activities (including the exchange of non-monetary assets with commercial nature, the same below), the non-current asset or to-be-disposed portfoliofallsintoheld-for-salecategory.Thespecificcriteria:bothofthefollowingconditionsshallbesatisfied:anon-currentasset or to-be-disposed portfolio can be sold immediately under the current conditions based on the practice of selling such asset or to-be-disposedportfolioinsimilartransactions;theCompanyhasalreadydecidedonthesaleplanandobtainedconfirmedpurchase commitment;thesaleisscheduledtobecompletedwithinoneyear.Amongthem,aDisposalPortfolioreferstoagroupofassetsthat will be disposed of as a whole through sale or other approaches in a transaction, and the liabilities directly associated with these assetstransferredalongwiththeassetsintransaction.Iftheportfolioofassetsorgroupofportfoliosofassetsisallocatedgoodwill acquired in business merger in accordance with Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the DisposalPortfolioshallincludethegoodwillallocatedtoit.
Intheeventthatthebookvalueofanon-currentassetorto-be-disposedportfoliothathasbeendesignatedasheld-for-salecategoryis higher than the net amount of fair value less sales expenses when the non-current asset or to-be-disposed portfolio is initially measuredormeasuredonthebalancesheetdate,thebookvalueshallbetothenetamountoffairvalueminussalesexpenses,andthe written-down amount shall be recognized as asset impairment loss and included in current period profit or loss. The provision for impairmentlossoftheheld-for-saleassetshallbeaccrued.ForaDisposalPortfolio,theconfirmedimpairmentlossshalldeductthe 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”).Intheeventofanincreaseofthebookvalueoftheheld-for-saleDisposalPortfoliominussalesexpensesonthe subsequentthebalancesheet date,theamountpreviouslywritten down shallberecovered andbereversed withinthemount ofthe assetimpairmentlossrecognizedinthenon-currentassetsmeasuredbythemeasurement “GuideforHeld-For-Sale” afterbeing classified asheldfor saleasset, thereversal amountshall beincludedin thecurrentperiodprofit orloss, andthebookvalueofall
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 non-current assets (except for goodwill) determined by the measurement on a pro-rata basis in accordance with the applicable “GuideforHeld-For-Sale” shallbeincreasedonapro-ratabasis.Thebookvalueofthegoodwillthathasbeendeductedandthe impairment loss of the assets recognized before the classification of the held-for-sale non-current assets in accordance with the applicable “GuideforHeld-For-Sale” shallnotbereversed.
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,andtheinterestfromandotherexpensesfromtheliabilitiesinheld-for-saleDisposalPortfolioshallstillberecognized. When a non-current asset or Disposal Portfolio no longer meets the conditions for Held-For-Sale category, non-current asset or DisposalPortfoliowillnolongerbeclassified asHeld-For-SalecategorybytheCompanyorthenon-currentasset willberemoved fromtheHeld-For-SaleDisposalPortfolio,andbemeasuredbasedononeofthefollowingtwovalues,whicheverislower:(1)The book value before being classified as held-for-sale category adjusted based on the depreciation, amortization or impairment that shouldhavebeconfirmedifitisnotclassifiedasheld-for-salecategory;(2)recoverableamount.
13.Long-termequityinvestment
The Long-Term Equity Investment in this section refers to the long-term equity investment that the Company has control, joint controlorsignificantinfluenceoverinvestees.Along-termequityinvestmentthattheCompanydoesnothavecontrol,jointcontrol orsignificantinfluenceoverinvesteeshallbeaccountedasanavailable-for-salefinancialassetorafinancialassetthatismeasuredat fairvalueanditschangesarerecognizedincurrentperiodprofitorloss.SeeSection9oftheNotes"FinancialInstruments." Joint control refers to the control that theCompany shares with other party/parties for an arrangement in accordance with relevant agreements,andrelevantactivitiesofthearrangementcanonlybedecidedbasedontheconsensusofallpartiessharingthecontrol rights before making a decision. Significant Influence refers to power of theCompany to participate in thedecision-making of the financialandoperatingpoliciesoftheinvestee,buttheCompanycannotcontrolorjointlycontrolthedevelopmentofthesepolicies withotherparties.
(1)Determinationofinvestmentcost
For along-term equity investment obtainedfrom a combinationofbusinesses under thesame control,theapportioned shareof 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 differencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthecashpaid,thenon-cashassetstransferred, andthebookvalueof thedebtsassumed; if thecapital reserve isinsufficient for offsetting,theretainedearningsshall beadjusted. Where the equity securities are issued as merger consideration, the apportioned share of the book value in the final controller's consolidatedfinancialstatementsonthecombinationdateinaccordancewiththeshareholders'equityshallbetheinitialinvestment costofthelong-termequityinvestment,andthetotalparvalueoftheissuedsharesistakenasthesharecapital.Thecapitalreserve shall be adjusted subject to the difference between the initial investment cost of the long-term equity investment and the total par valueofthesharesissued;ifthecapitalreserveisinsufficientforoffsetting,theretainedearningsshallbeadjusted.Wheretheequity of combined parties under the same control is obtained through multiple transactions and a business combination under the same controlisformedfinally,itshallbetreateddifferentiallybasedonwhetheritisa“packagedeal”:ifitbelongstoa“packagedeal”, alltransactionswillbetreatedasatransactionthatobtainscontrol.Ifitisnota “packagedeal”,theapportionedshareofthebook value inthefinal controller'sconsolidated financial statementsonthecombinationdateinaccordancewiththeshareholders'equity shallbetheinitialinvestmentcostofthelong-termequityinvestment.Thecapitalreserveshallbeadjustedsubjecttothedifference betweentheinitialinvestmentcostofthelong-termequityinvestmentandthesumofthebookvalueoflong-termequityinvestment beforecombinationdateandthebookvalueofthenewconsiderationforthenewshareonthecombinationdate.Ifthecapitalreserve isinsufficientforoffsetting,theretainedearningsshallbeadjusted.Theequityinvestmentsthatareheldpriortothecombinationdate and are recognized with equity recognized or as available-for-sale financial asset as other comprehensiveincome will not begiven accountingtreatmentforthemoment.
Foralong-termequityinvestmentobtainedfromacombinationofbusinessesnotunderthesamecontrol,theinitialinvestmentcost
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 ofthelong-termequityinvestmentshallbebasedonthecombinationcostonthepurchasedate.Thecombinationcost includesthe assets paid by purchaser, the liabilities incurred or assumed, and the sum of the fair value of issued equity securities. Where the equityofcombinedpartiesnotunderthesamecontrolisobtainedthroughmultipletransactionsandabusinesscombinationunderthe samecontrolisformedfinally,itshallbetreateddifferentiallybasedonwhetheritisa “packagedeal”:ifitbelongstoa “package deal”,alltransactionswillbetreatedasatransactionthatobtainscontrol.Ifitisnota“packagedeal”,theinitialinvestmentcostof thelong-termequityinvestmentcalculatedbythecostmethodshallbecalculatedbasedonthesumofthebookvalueoftheequity investmentintheoriginalholderandthenewinvestmentcost.
The original equity that is accounted with equity method and is related to other comprehensive income will not be accounted temporarily.Wheretheoriginalequityinvestmentisanavailable-for-salefinancialasset,thedifferencebetweenitsfairvalueandthe book value, and the accumulated fair value changes previously recognized in other comprehensive income shall be transferred to currentperiodprofitorloss.
Intermediaryexpensessuchasforauditing,legalservices,assessmentandotherrelatedexpensesincurredbyacombiningpartyora purchaserforbusinesscombinationshallberecognizedincurrentperiodprofitorlosswhenincurred.
The equityinvestments other thanformed bybusinesscombinationshall beinitiallymeasuredat cost.Thecost will bedetermined basedonthefollowingamountaccordingtodifferentmethodsoftheacquisitionoflong-termequityinvestment:thepurchaseprice 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;thefairvalueofthelong-termequityinvestmentitself.Anyexpenses,taxesandothernecessaryexpensesdirectlyrelated 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 AccountingStandardsforBusinessEnterprisesNo..22–RecognitionandMeasurementofFinancialInstrumentsandthecostfor newinvestment.
(2)Follow-upmeasurementandconfirmationmethodsforprofitandloss
The Equity Method shall be used to account for long-term equity investments that have joint control over the invested entity (exceptfor thoseconstitutingjointoperators) orhavesignificantimpact ontheinvestedentity.Inaddition,thecompany'sfinancial statementsusetheCost Methodtoaccountforlong-termequityinvestments,whichcancontrolthelong-termequityinvestmentof theinvestee.
a.Long-termequityinvestmentbasedonCostMethod
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 obtaininginvestmentorthecashdividendsorprofitsincludedintheconsiderationbutnotyetissued,thecurrentinvestmentincome shallberecognizedaccordingtothecashdividendsorprofitsdeclaredbytheinvestee.
b.Long-termequityinvestmentaccountedforbyEquityMethod
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
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 investmentshallbeadjusted
When accounting with Equity Method, the investment income and other comprehensive income are recognized separately accordingtothesharesofthenetprofitorlossandothercomprehensiveincomethatshouldbeenjoyedorshared,andthebookvalue of thelong-term equity investmentshouldbeadjustedat thesame time.Thebookvalueof long-term equityinvestment isreduced accordingly by calculating the share that should be enjoyed according to the profit or cash dividend declared by the investee. The bookvalueoflong-termequityinvestmentshallbeadjustedandincludedinthecapitalreserveforotherchangesintheowner'srights and interests of the invested entity other than the net profit and loss, other comprehensive income and profit distribution. When confirmingtheshareofthenetprofit andlossoftheinvestee, thenetprofit oftheinvestee shall beadjustedandconfirmed onthe basis of the fair value of the identifiable assets of the investee at the time of investment. If the accounting policies and periods adoptedbytheinvestedentityareinconsistentwiththeCompany,thefinancialstatementsoftheinvestedentityshallbeadjustedin accordance with theaccounting policiesand periodsoftheCompany,and theinvestment income andother comprehensiveincome shallbeconfirmedaccordingly.ForthetransactionsbetweentheCompanyandtheassociatesandjointventures,theassetsinvested orsolddonotconstituteabusiness,andtheunrealizedgainsandlossesfrominternaltransactionsareoffsetagainsttheportionofthe Companythatisattributabletotheproportionoftheshares,onthisbasis.investmentprofitandlossshouldbeconfirmed.However, theunrealizedinternaltransactionlossesincurredbytheCompanyandtheinvesteearenotincludedintheimpairmentlossesofthe transferredassets.WheretheassetsinvestedbytheCompanyintoajointventureoranassociatesconstituteabusiness,iftheinvestor obtains long-term equity investment but does not control, the fair value of the invested business shall be deemed as the initial investmentcostofthenewlong-termequityinvestment,andthedifferencebetweentheinitialinvestmentcostandthebookvalueof theinvestedbusinessisfullyrecognizedinthecurrentprofitsandlosses.IftheassetssoldbytheCompanytoajointventureoran associatethatconstituteabusiness,thedifferencebetweentheconsiderationvalueobtainedandthebookvalueofthebusinessshall befullyrecognizedintheprofitsandlossesofthecurrentperiod.
Where the assets purchased by the Company from the joint ventures and associates constitute a business, the accounting treatment shall be carried out in accordance with the provisions of the “Accounting Standards for Business Enterprises No. 20 - MergerofEnterprises”,andtheprofitsorlossesrelatedtothetransactionsshallbefullyrecognized.
Whenconfirmingthenetlossthatincurredbytheinvesteeshouldbeshared,thebookvalueofthelong-termequityinvestment 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 Companyshallresumerecognizingtheshareofincomeaftermakingupfortheunrecognizedshareofloss.
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 currentprofitsandlossesshallbeaccountedforbythestraight-lineamortizationoftheoriginalremainingperiod.
c.AcquisitionofMinorityEquity
Inthepreparationoftheconsolidatedfinancialstatements,ifthedifferencebetweenthelong-termequityinvestment addedby
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 purchasing minority shares and the net assets share that should be continuously calculated by the subsidiary company from the purchasedate(ortheconsolidationdate)iscalculatedaccordingtotheproportionofnewlyaddedshares,theretainedearningsshall beadjusted;andifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
d.Disposaloflong-termequityinvestment
In the consolidated financial statements, the parent company partially of disposes of the long-term equity investment of the subsidiarywithoutlosingcontrol,thedifferenceofthecorrespondingnetassetsinthesubsidiarybetweenthedisposalpriceandthe disposalofthelong-termequityinvestmentisincludedintheshareholders'equity.itshallbetreatedinaccordancewiththerelevant accountingpoliciesdescribedin “Notesonthepreparationofconsolidatedfinancialstatements” inNoteIV.5.
Forthedisposaloflong-termequityinvestmentinothercases,thedifferencebetweenthebookvalueofthedisposedequityand theactualacquisitionpriceshallbeincludedinthecurrentprofitsandlosses.
Ifthelong-termequityinvestmentisaccountedfor byequitymethod,theremainingequityafter disposalisstillaccountedfor by equity method, when disposing, the other comprehensive income which were originally included in shareholder's rights and interestsshallbeaccountedforonthesamebasisastheassetsorliabilitiesdirectlydisposedofbytheinvestee.Theowner'sequity recognizedasaresultofchangesintheowner'sequityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincomeand profitdistribution,itshouldbecarriedforwardtothecurrentprofitandloss
For the long-term equity investment accounted by Cost Method, the remaining equity is still accountedby Cost Method after disposal, other comprehensive income that recognized by equity method accounting or financial instrument recognition and measurementcriteriaaccountingbeforeobtainingcontrolovertheinvesteeshallbeaccountedforonthesamebasisastheassetsor 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 recognizedbyequitymethodshallbesettledtothecurrentprofitandlossinproportion.
WheretheCompanylosescontrolovertheinvesteeduetodisposalofpartofitsequityinvestment,whenpreparingindividual financialstatements,iftheremainingequityafterdisposalcanexercisejointcontrolorexertsignificantinfluenceontheinvestee,it shallbeaccountedforbyequitymethodinstead,andtheremainingequityshallbeadjustedbyaccountingbyequitymethodwhenit 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,andthedifferencebetweenthefairvalueandthebookvalueonthedateoflossofcontrol.Itisincludedinthecurrentprofit 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 controloftheinvesteeislost,Accountingistreatedonthesamebasisastheliabilities.Changesintheowner'sequityotherthannet profit or loss, other comprehensive income and profit distribution of the investee's net assets recognized by the equity method are carriedforwardtothecurrentprofitorlosswhenthecontroloftheinvesteeislost.Amongthem,theremainingequityafterdisposal is accounted for using the equity method. Where the remaining equity after disposal is accounted for by equity method, other
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 comprehensiveincomeandotherowner'sequityshouldbesettledbyproportion.
IftheCompanylosesitsjointcontrolorsignificantinfluenceontheinvesteeduetothedisposalofpartoftheequityinvestment, theremainingequityafterdisposalshallbeaccountedforaccordingtothefinancialinstrumentrecognitionandmeasurementcriteria, andthedifferencebetweenthefairvalueandthebookvalueonthedateoflossofjointcontrolorsignificantinfluenceisrecognised in thecurrent profit or loss.The othercomprehensiveincome recognized intheoriginalequity investment bytheequitymethodis accountedforonthesamebasisastheinvestee'sdirectdisposalofrelatedassetsorliabilitieswhentheequitymethodisterminated, Owner's equity recognized as aresult of changesin other owners' equityother than net profit or loss, other comprehensiveincome andprofitdistributionoftheinvesteeshouldbetransferredtocurrentinvestmentincomewhenterminatingtheequitymethod The Companydisposesoftheequityinvestment inthesubsidiariesstep bystep throughmultipletransactionsuntilthelossof 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 comprehensiveincome,andwhenthecontrolislost,itistransferredtothecurrentprofitandlossoflossofcontrol.
14． InvestmentRealEstate
Investment Real Estatereferstoreal estateheldfor thepurposeofearningrentorcapital appreciation,orboth,includingland userightsthathavebeenleased,landuserightsthatareheldandpreparedfortransferafterappreciation,andbuildingsthathavebeen rented. In addition, if the board of directors (or similar institution) has a written resolution on the vacant buildings held by the companyforthepurposeofoperatingthelease,whichisclearlystatedthatitwillbeusedforoperatingleasesandthattheintention toholdisnolongerchangedintheshortterm,whichisalsoreportedasaninvestmentrealestate.
Investment real estates areinitiallymeasured at cost.Subsequentexpendituresrelated toinvestment real estateareincludedin thecostofinvestmentrealestateiftheeconomicbenefitsassociatedwiththeassetarelikelytoflowinandthecostcanbereliably measured.Otherfollow-upexpensesarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.
The Company adopts the cost model to conduct subsequent measurement of investment real estate and depreciation or amortizationaccordingtothepolicyconsistentwiththebuildingorlanduserights.
For details of the impairment test method and impairment provision method of real estates, please refer to Note IV. 20 “Long-TermAssetImpairment”.
When the self-use real estate or inventory is converted into investment real estate or investment real estate is converted into self-userealestate,thebookvaluebeforeconversionisusedastherecordedvalueafterconversion.
When the use of investment real estate is changed to self-use, the investment real estate is converted into fixed assets or intangibleassetsfromthedateofchange.Whentheuseofself-userealestatechangestoearnrentorcapitalappreciation,thefixed assets or intangible assets are converted into investment real estate from the date of change. In the case of investment real estate 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 real estate measured by thefair value model, the fair value of the conversion date is
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 usedastheentryvalueafterconversion.
When an investment real estate is disposed of, or permanently withdrawn from use and is not expected to obtain economic benefitsfromitsdisposal,theconfirmationoftheinvestmentrealestateshallbeterminated.Disposalincomefromthesale,transfer, retirementordamageofinvestmentpropertiesischargedtothecurrentprofitandlossafterdeductingitsbookvalueandrelatedtaxes andfees.
15.FixedAssets
(1)Confirmationconditionsforfixedassets
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 associatedwiththemarelikelytoflowintotheCompanyandtheircostscanbereliablymeasured.Fixedassetsareinitiallymeasured atcostandtakingintoaccounttheimpactofprojectedabandonmentcosts.
(2)Depreciationmethodsforvarioustypesoffixedassets
Fixed assets are depreciated over their useful lives using the straight-line method from the month following the scheduled availability.Theservicelife,estimatednetresidualvalueandannualdepreciationrateofvariousfixedassetsareasfollows:
||||
|-|-|-|
|DepreciationMethod|Depreciationperiod(Year)|Residualrate(%)|
|straight-linedepreciation|8-50|5|
|straight-linedepreciation|3-10|4、5|
|straight-linedepreciation|5-28|4、5|
|straight-linedepreciation|5-10|4、5|
|straight-linedepreciation|3-10|4、5|
|straight-linedepreciation|5-28|4、5|

 Theestimatednetresidualvaluereferstotheexpectedstateaftertheestimatedusefullifeofthefixedassetshasexpiredandis at the end of its useful life. The amount currently obtained by the Company from the disposal of the assets after deducting the estimateddisposalexpenses.
(3)ImpairmenttestmethodandImpairmentprovisionmethodforfixedassets
For details of Impairment test method and impairment provision method for fixed assets, please refer to Note IV. 20 “Long-TermAssetImpairment”.
(4)Recognitionbasisandvaluationmethodoffixedassetsacquiredbyfinancinglease
Afinance lease is a lease that transfers substantially all the risks and rewards associated with ownership of an asset, and its
ownership may ormay not betransferred. If it isreasonabletodeterminetheownershipof theleased asset at theexpirationofthe
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 lease term, the depreciation shall be calculated within the useful life of the leased asset; If it is not reasonable to determine the ownershipoftheleasedassetattheexpirationoftheleaseterm,depreciationshallbecalculatedwithinarelativelyshortperiodofthe leasetermandtheservicelifeoftheleasedassets.
(5)Others
Thesubsequentexpensesrelatedtofixedassets,iftheeconomicbenefitsrelatedtothefixedassetsarelikelytoflowinandtheir costscanbereliablymeasured,areincludedinthecostoffixedassetsandthebookvalueofthereplacedpartshouldbeterminated. Thesubsequentexpendituresotherthanmentionedasabovearerecognizedinprofitorlossintheperiodinwhichtheyareincurred. Thefixedassetisderecognizedwhenthefixedassetisindisposalorisnotexpectedtogenerateeconomicbenefitsbyusingor disposal. The difference between the disposal income from the sale, transfer, retirement or damage of the fixed assets less the carryingamountandrelatedtaxesisrecognizedinprofitorlossforthecurrentperiod.
TheCompanyreviewstheusefullife,estimatednetresidualvalueanddepreciationmethodoffixedassetsatleastattheendof theyear,andchangesasanaccountingestimateifchangesoccur.
16.Constructioninprogress
The cost of constructionin progress is determined based onactual project expenditure, including variousproject expenditures incurredduringtheconstructionperiod,capitalizedborrowingcostsbeforetheprojectreachestheexpectedusablestatus,andother relatedexpenses.Constructioninprogressiscarriedforwardtofixedassetswhenitisreadyforitsintendeduse.
Fordetailsoftheimpairmenttestmethodandimpairmentprovisionmethodforconstructioninprogress,pleaserefertoNoteIV. 20 “Long-TermAssetImpairment”.
17.BorrowingCosts
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 productionofassets eligiblefor capitalization,capitalizationisbeganwhenasset expenditureshaveoccurred,borrowingcostshave 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 periodinwhichtheyareincurred.
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 capitalizationamountisdeterminedbymultiplyingtheweightedaverage ofwhichaccumulatedasset expenditureexceedstheasset expenditure of the special borrowing portion by the capitalization rate of the general borrowings used. The capitalization rate is determinedbasedontheweightedaverageinterestrateofgeneralborrowings.
During the capitalization period, the exchange differences of foreign currency special borrowings are all capitalized; the
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 exchangedifferencesofforeigncurrencygeneralborrowingsareincludedinthecurrentprofitsandlosses.
Assets eligible for capitalization refer to assets such as fixed assets, investment real estate and inventories that require a substantialperiodofacquisition,constructionorproductionactivitiestoachievetheintendeduseorsalestatus.
Iftheassetseligibleforcapitalizationareinterruptedabnormallyduringtheacquisition,constructionorproductionprocessand theinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspendeduntiltheacquisition, constructionorproductionoftheassetsresumes.
18.Intangibleassets
(1)Intangibleassets
Intangibleassetsrefertoidentifiablenon-monetaryassetswithoutphysicalformownedorcontrolledbytheCompany. Intangibleassetsareinitiallymeasuredatcost.Expenditurerelatedtointangibleassetsisincludedinthecostofintangibleassets iftherelevanteconomicbenefitsarelikelytoflowtotheCompanyanditscostscanbemeasuredreliably.Expenditureonotheritems otherthanthisisrecognisedinprofitorlosswhenincurred.
Theacquiredlanduserightsareusuallyaccountedforasintangibleassets.Therelatedlanduserightsandbuildingconstruction costsofself-developedandconstructedbuildingsareaccountedforasintangibleassetsandfixedassets,respectively.Inthecaseof purchased houses and buildings, the relevant price is distributed between the land use rights and the buildings. If it is difficult to allocatethemreasonably,allofthemaretreatedasfixedassets.
Since the intangible assets with limited service life are available for use, the original value minus the estimated net residual valueandtheaccumulatedamountofimpairmentreserveshallbeamortizedbythestraight-linemethodduringtheirexpectedservice life.Intangibleassetswithuncertainservicelifeshallnotbeamortized.
At theend of theperiod, theservice life and amortization methods of intangible assets with limited service life are reviewed, and if any change occurs, it is treated as a change of accounting estimate. In addition, the service life of intangible assets with uncertainservicelifeisalsoreviewed.Ifthereisevidencethattheperiodforwhichtheintangibleassetsbringeconomicbenefitsto theenterprise isforeseeable, theservicelife of intangibleassets isestimated andamortized accordingto theamortizationpolicyof intangibleassetswithlimitedservicelife.
(2)Researchanddevelopmentexpenditure
The company's expenditure for internal research and development project is divided into research stage expenditure and developmentstageexpenditure.
Expendituresfortheresearchphaseshallberecognizedinprofitorlosswhenincurred.
Expenditures for the development phase that meet the following conditions shall be recognized as intangible assets, and expendituresinthedevelopmentstagethatfailtomeetthefollowingconditionsareincludedincurrentprofitandloss:Itisnecessary to combine the characteristics of the company's internal research and development projects to disclose the specific criteria for the division of the research phase and the development phase, as well as the specific conditions for the capitalization of expenditure duringthedevelopmentphase.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 a.Itistechnicallyfeasibletocompletetheintangibleassettoenableittobeusedorsold;
b.Theintenttocompletetheintangibleassetanduseorsellit;
c.Thewayinwhichintangibleassetsgenerateeconomicbenefits,includingtheabilitytoprovethattheproductsproducedfrom theintangibleassetshavingamarketortheintangibleassetshavingamarket,andtheintangibleassetswillbeusedinternally,which canproveitsusefulness;
d. sufficient technical, financial resources and other resources for supporting the development of the intangible assets and the abilitytouseorselltheintangibleassets;
e.Expenditureattributabletothedevelopmentphaseoftheintangibleassetcanbereliablymeasured.
Ifitisimpossibletodistinguishtheexpendituresbetweenintheresearchphaseandinthedevelopmentphase, alltheresearch anddevelopmentexpendituresincurredwillbeincludedinthecurrentprofitandloss.
(3)ImpairmenttestmethodandImpairmentprovisionmethodforintangibleassets
For details of theimpairment test method and impairment provision method, please refer to Note IV.20 “Long-TermAsset Impairment”.
19．Long-termDeferredExpenses
Thelong-termdeferredexpensesareallexpensesthathaveoccurredbutshallbebornebythereportingperiodandsubsequent periodswithamortizationperiodofmorethanoneyear.Thecompany'slong-termdeferredexpensesmainlyincludeleaseoflanduse rightandrenovationcostsoffactorybuilding.Long-termdeferredexpensesareamortizedonastraight-linebasisovertheestimated benefitperiod.
20.Long-termassetsimpairment
For fixed assets, construction in progress, intangible assets with limited useful life, investment real estate measured by cost model, andnon-current non-financial assets such as long-term equity investmentsin subsidiaries, jointventures and associates, the Companydetermineswhetherthereisanyindicationofimpairmentonthebalancesheetdate.Ifthereisanyindicationofimpairment, therecoverableamountisestimatedandtheimpairmenttestiscarriedout.Goodwill,intangibleassetswithuncertainservicelifeand intangible assets that not yet ready for use are tested for impairment annually, regardless of whether there is any indication of impairment.
Iftheresultoftheimpairmenttestindicatesthattherecoverableamountoftheassetislowerthanitsbookvalue,theimpairment provision is made based onthe difference and is included in theimpairment loss. The recoverable amount is thehigher of thefair 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 isdetermined accordingto thesale agreement priceina fair transaction.If thereis nosales agreement but thereisanactive 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 marketfor assets, thefairvalueofassetsshall beestimatedbasedonthebestinformationavailable.Asset disposalexpenses include legal fee, taxes, transportation expenses and direct expenses incurred to make assets saleable. The present value of the
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 estimatedfuturecashflowofanasset isdeterminedbytheappropriatediscountratediscountingandtheestimatedfuturecashflow generatedbytheassetduringitscontinuoususeandfinaldisposal.Theassetimpairmentprovisioniscalculatedandconfirmedonthe basis of individual assets. If it is difficult to estimate the recoverableamount of an individual asset, the recoverable amount of the assetisdeterminedbytheassetgroupwhichtheassetbelongsto.Anassetgroupisthesmallestportfolioofassetsthatcangenerate cashinflowsindependently.
Thebookvalueofthegoodwilllistedseparatelyinthefinancialstatementsisamortizedintoassetgroupsorportfoliosthatare expectedtobenefitfromthesynergiesofbusinesscombinationswhenimpairmenttestsareconducted.Thetestresultsshowthatthe recoverableamountoftheasset grouporportfoliocontainingtheassessedgoodwillislowerthanitsbookvalue,thecorresponding 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 proportionofthebookvalueofassetsotherthangoodwillintheassetgrouporportfolio.
Oncetheaboveasset impairmentlossisconfirmed,it will notbereversed tothepartwherethevalueisrestoredinthefuture period.
21.EmployeeCompensation
The Company's employee compensation mainly includes short-term employee remuneration, Post-employment Benefits, TerminationBenefitsandbenefitsforotherlong-termemployee.Amongthem:
Short-termemployeesremunerationmainlyincludeswages,bonuses,allowancesandsubsidies,employeewelfarefees,medical insurance premiums, maternity insurance premiums, work injury insurance premiums, housing fund, labor union funds, employee educationfunds,andnon-monetarybenefits.TheCompanyrecognizestheactualshort-termemployee'sremunerationasaliabilityin the accounting period in which employees provide services to the Company and recognizes them in profit or loss or related asset costs.Non-monetarybenefitsaremeasuredatfairvalue.
Post-employment Benefits mainly include basic retirement security, unemployment insurance, and annuities. The Post-employmentBenefitSchemeincludesaDefinedContributionPlanandaDefinedBenefitPlan.IfaDefinedContributionPlanis adopted,thecorrespondingamountofthedepositshallbeincludedintherelevantassetcostorcurrentprofitandlossasincurred.(1) The Defined Contribution Plan is recognized as a liability based ona fixed fee paid to an independent fund and is includedin the current profit and lossor related asset costs; (2)The Defined Benefit Plan is accounted for using the expected cumulative benefits unitmethodSpecifically,theCompanywillconvertthewelfareobligationarisingfromtheDefinedBenefitPlanintothefinalvalue ofthedeparturetimeaccordingtotheformuladeterminedbytheexpectedcumulativebenefitsunitmethod;thenitisattributedtothe employee'sin-serviceperiodandisincludedinthecurrentprofitandlossorrelatedassetcost.
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 terminationofthelaborrelationshipplanorthereductionproposal,andwhenconfirmingthecostsassociatedwiththerestructuring involving the payment of the dismissal benefits, whichever is earlier, the Company will recognize the employee compensation liabilities arisingfrom thedismissal benefits, andincluded inthecurrent profit and loss.However,if thedismissal benefits arenot
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 expected tobe fully paid within 12 monthsafter theend of annual reportingperiod, they shall be treated in accordance with other long-termemployeecompensations.
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,andwillincludeinthecurrentprofitandloss(dismissalbenefits)whentheconditionsoftheestimatedliabilitiesaremet. Iftheotherlong-termemployeebenefitsprovidedbytheCompanytotheemployeesareinlinewiththeDefinedContribution Plan,theyshallbeaccountedforDefinedContributionPlan,andotherwiseaccountedfortheDefinedBenefitPlan.
22.Estimatedliabilities
Whentheobligationsrelatedtothecontingenciesmeetthefollowingconditions,theyarerecognizedasestimatedliabilities:(1) The obligation is the current obligation assumed by the Company; (2)The performance of this obligation is likely to result in the outflowofeconomicbenefits;(3)Theamountoftheobligationcanbereliablymeasured.
On the balance sheet date, taking into account factors such as risks, uncertainties and time value of money related to contingencies,theestimatedliabilitiesaremeasuredinaccordancewiththebestestimateoftheexpenditurerequiredtoperformthe relevantcurrentobligations.
Ifallorpartoftheexpensesrequiredtodischargetheestimatedliabilitiesareexpectedtobecompensatedbythethirdparty,the compensation amount will be separately recognized as an asset when it is basically determined to be received, and the confirmed compensationamountdoesnotexceedthebookvalueoftheestimatedliabilities.
(1)LossContract
Alosscontractisacontractinwhichthecostoffulfillingacontractualobligationwillinevitablyoccurmorethantheexpected economicbenefit.Ifthecontracttobeexecutedbecomesalosscontract,andtheobligationarisingfromthelosscontractsatisfiesthe conditionsfortherecognitionoftheabove-mentionedestimatedliabilities, theportionofthecontract'sestimatedlossthatexceeds therecognizedimpairmentloss(ifany)ofthecontractedassetisrecognizedastheestimatedliability.
(2)RestructuringObligations
Forreorganizationplansthataredetailed,formal,andhavebeenannouncedtothepublic,theamountoftheestimatedliabilities aredeterminedbasedonthedirectexpensesrelatedtothereorganization,subjecttotherecognitionconditionsoftheaforementioned estimated liabilities. For the restructuring obligation to the part of business sold, the obligation related to the reorganization is confirmedonlywhenthecompanypromisestosellpartofthebusiness(thatis,whenthebindingsaleagreementissigned). 23.Share-basedPayments
(1)AccountingTreatmentofShare-basedPayments
Ashare-based payment is a transaction that grants an equity instrument or assumes a liability determined on the basis of an equity instrument in order to obtain services from employees or other parties. Share-based Payments include equity-settled share paymentandcash-settledsharepayment.
a)Equity-settledSharePayment
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 The equity-settled share payment in exchange for the services from employee is measured at the fair value of the granting of employees' equityinstruments at thegrant date. If thefair valueisvested in thecompletionof thewaitingperiodof service orthe fulfillment of the required performance conditions, during the waiting period, the amount of the fair value is calculated by the straight-linemethodintotherelevantcostsorexpensesbasedonthebestestimateofthenumberofvestingequityinstruments;OrIf thevestingrightisgrantedimmediatelyafterthegrant,thecalculationoftheamountofthefairvalueisincludedintherelevantcost orexpenseonthegrantdate,andthecapitalreserveisincreasedaccordingly.
Oneachbalancesheetdateduringthewaitingperiod,theCompanymakesthebestestimatebasedonthelatestinformationon thechanges inthenumber of employees withvesting rights, andcorrects thenumber of equity instrumentsthatare expected to be vested.Theimpactoftheaboveestimatesshallbeincludedinthecurrentrelatedcostsorexpenses,andthecapitalreserveisadjusted accordingly.
In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties' servicescanbereliablymeasured,thefairvalueofotherservicesshallbemeasuredatthefairvalueonthedateofacquisition;Ifthe 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 instrumentatthedatetheserviceisacquired,andisincludedintherelevantcostorexpense,whichincreasestheshareholders'equity accordingly.
When the fair value of the equity instrument is not measured reliably, it is measured at the intrinsic value of the equity instrumentatthedateofserviceacquisition,eachsubsequentbalancesheetdateandthesettlementdate.
b)Cash-settledSharePayment
The cash-settled share payment is measured at thefair value of the liabilities determined by the Company based on shares or otherequityinstruments.Ifthevestingrightisavailableimmediatelyafterthegrant,therelevantcostsorexpensesshallbeincluded onthedateofgrant,andtheliabilitiesshallbeincreasedaccordingly;ifvestingrightisavailableaftertheserviceiscompletedwithin thewaitingperiodormettherequiredperformanceconditions,basedonthebestestimateofthevestingrightsoneachbalancesheet dateofthewaitingperiod,accordingtothefairvalueoftheliabilitiesassumedbythecompany,theservicesobtainedinthecurrent periodareincludedinthecostorexpense,andtheliabilitiesareincreasedaccordingly.
Thefairvalueoftheliabilitiesshallbere-measuredoneachbalancesheetdateandsettlementdatebeforethesettlementofthe relevantliabilities,andthechangesshallberecordedintheprofitsandlossesofthecurrentperiod.
(2)RelevantAccountingTreatmentofshare-basedpaymentplan’smodificationandtermination
WhentheCompanymodifiestheshare-basedpaymentplan,ifthemodificationincreasesthefairvalueoftheequityinstruments 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 modificationreducesthetotalfairvalueoftheshare-basedpaymentoradoptsothermethodsthatarenotconducivetotheemployee, theserviceobtainedshallcontinuetobeaccountedfor,asifthechangehasneveroccurred,unlesstheCompanycancelssomeorall ofequityinstruments.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Duringthewaitingperiod,ifthegrantedequityinstrumentiscancelled,theCompanywillcancelthegrantedequityinstrument as an accelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately included in the currentprofitandloss,andthecapitalreservewillberecognized.Iftheemployeeorotherpartycanchoosetomeetthenon-vesting conditionsbutfailstomeetthewaitingperiod,theCompanywilltreatitasacancellationoftheequityinstrument.
(3)AccountingTreatmentofSharePaymentTransactionsbetweentheCompanyanditsShareholdersorActualControllers 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,itshallbeaccountedforintheconsolidatedfinancialstatementsofthecompanyaccordingtothefollowingprovisions: a.) If the settlement enterprise settles with its own equity instrument, the share-based payment transaction shall be treated as equity-settledshare-basedpayment;otherwise,itshallbetreatedasacash-settledshare-basedpayment.
Ifthesettlemententerpriseisaninvestorofaservicedenterprise,itshallberecognizedasthelong-termequityinvestmentofthe servicedenterpriseaccordingtothefairvalueoftheequityinstrumentatthegrantdateorthefairvalueoftheliabilitytobeassumed, andthecapitalreserve(othercapitalreserve)orliabilitiesshallberecognized..
b.)Iftheservicedenterprisehasnosettlementobligationorgrantsitsownemployeestheequityinstruments,thesharepayment transaction shall be treated as equity-settled share payment; if the serviced enterprise has settlement obligation and grants its employeesotherthanitsownequityinstruments,thesharepaymenttransactionshallbetreatedasacash-settledsharepayment. 24. PreferredStock,PerpetualCapitalSecuritiesandOtherFinancialInstruments
(1)DistinctionbetweenperpetualcapitalsecuritiesandPreferredStock
Financial instruments such as perpetual bonds and preferred stocks issued by the Company, as well as meeting the following conditions,shallbeusedasequityinstruments:
a.)Thefinancialinstrumentdoesnotincludecontractualobligationstodelivercashorotherfinancialassetstootherpartiesorto exchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyadverseconditions;
b.)Inthecaseofthefinancialinstrumentistobesettledoravailablewiththecompany'sownequityinstrumentsinthefuture,if the financial instrument is a non-derivative, it does not include the contractual obligation to deliver a variable amount of its own equityinstruments;ifitisaderivative,theCompanycanonlysettlethefinancialinstrumentbyexchangingafixedamountofcashor otherfinancialassetswithafixedamountofitsownequityinstruments.
Except for financial instruments that can be classified under the above conditions, other financial instruments issued by the Companyshouldbeclassifiedasfinancialliabilities.
IfthefinancialinstrumentsissuedbytheCompanyarecompoundfinancialinstruments,theyarerecognizedasaliabilitybased onthefairvalueoftheliabilitycomponent,andarerecognizedas“otherequityinstruments”basedontheamountactuallyreceived after deductingthefair value oftheliability component.The transactioncostsincurred inissuingacompoundfinancial instrument areapportionedinproportiontotheirrespectivetotalissuepricebetweentheliabilitycomponentandtheequitycomponent. (1)Accountingtreatmentmethodssuchasperpetualcapitalsecuritiesandpreferredstocks
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Related interest, dividends, gains or losses of financial instruments such as perpetual capital securities and preferred stocks classified as financial liabilities, and gains or losses arisingfrom redemption or refinancing, are included in thecurrent profits and lossesexceptforborrowingcoststhatmeetthecapitalizationconditions(seeNote4,17 “BorrowingFees”).
When financial instrumentssuchasperpetual capital securitiesandpreferred stocksclassified as equityinstrumentsare issued (including refinancing), repurchased, sold or cancelled, the Company shall treat it as a change in equity, and related transaction costsarealsodeductedfromequity.TheCompany'sallocationofequityinstrumentholdersistreatedasprofitdistribution.
TheCompanydoesnotrecognizechangesinthefairvalueofequityinstruments.
25.Revenue
(1)CommoditySalesRevenue
When the main risks and rewards of commodity ownership is transferred to the buyer without retaining the continuing managementrightsusuallyassociatedwiththeownershipandwithouteffectivelycontrollingofthesoldcommodity,iftheamountof revenuecanbereliablymeasured,andtherelevanteconomicbenefitsarelikelyflowintoenterpriseandtherelevantcostsincurredor willincurredcanbereliablymeasuredthesalesrevenueofcommoditiesshallbeconfirmed.
ThespecificprinciplesfortheconfirmationoftheCompany'ssalesrevenueareasfollows:a.)WholesaleBusiness:Whenthe commodityhavebeendeliveredtothecustomerandconfirmedbythecustomer,andtheCompanyhasalreadyreceivedthepayment orhasobtainedtheproofofrequestforpayment,thesalesrevenueshallbeconfirmed;b.)RetailBusiness:Whenthepaymenthas beenreceivedandthegoodshavebeendeliveredtothecustomer,thesalesrevenueshallbeconfirmed.
(2)Incomefromlaborservices
Inthecasetheresultsofthelaborservicetransactioncanbereliablyestimated,thelaborincomeprovidedisconfirmedonthe balancesheetdateaccordingtothepercentageofcompletionmethod.Thecompletionprogressofthelabortransactionisdetermined bytheratioofthecompletedworkortheproportionofthelaborserviceprovidedtothetotallaborservice,orbytheratiooflabor costsincurredtotheestimatedtotalcost.
Reliableestimatesofresultsofthelabortransactionsprovidedmeanthatitcanbesimultaneouslymet:
a.)Theamountofincomecanbemeasuredreliably.
b.)Relevanteconomicbenefitsarelikelytoflowintotheenterprise;
c.)Thedegreeofcompletionofthetransactioncanbedeterminedreliably;
d.)Thecoststhathaveoccurredandwilloccurinthetransactioncanbemeasuredreliably.
The specific principles for the company's processing service revenue recognition are as follows: a.) Processing Business with incoming materials (receiving processing fee): The processing fee income is confirmed when therelevant goods are processed and deliveredtothecustomer,andtheprocessingfeeortherelevantprocessingfeeisreceived.
Iftheresultoftheservicetransactioncannotbemeasuredreliably,theserviceincomeprovidedwillbeconfirmedaccordingto the amount of theservice cost that has occurred and is expected to becompensated, and the service cost that has occurred will be recognizedasthecurrentcost.Incomeshallbenotrecognizediftheincurredlaborcostsarenotexpectedtobecompensated.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 WhenthecontractoragreementsignedbytheCompanywithotherenterprisesincludesthesaleofcommodityandtheprovision of labor services, if the sales of commodity and the provision of labor services can be distinguished and separately measured, the salesofcommodityandtheprovisionoflaborservicesshallbehandledseparately; Ifthesalesofcommodityandthelaborservice part cannotbedistinguished,or ifit canbedistinguishedbut cannotbeseparately measured,thecontractshall beall treated asthe salesofcommodity.
(3)Revenuefromchargeforuse
Revenueshallberecognizedonanaccrualbasisinaccordancewiththerelevantcontractoragreement.
(4)Interestincome
Interestincomeshallbecalculatedaccordingtothetimeandactualinterestrateoftheuseofthecompany'smonetaryfundsby others.
26.Governmentsubsidies
Government subsidy refers to the company's acquisition of monetary and non-monetary assets from the government free of charge,excludingthecapitalinvestedbythegovernmentasaninvestorandenjoyingthecorrespondingowner'srightsandinterests. Government subsidiesincludeassets-related subsidiesand revenue-related subsidies.The company definesthegovernment subsidy obtained for the purchase and construction of long-term assets or for the formation of long-term assets in other ways as the government subsidyrelatedtoassets;theremaininggovernmentsubsidyisdefinedasthegovernmentsubsidyrelatedtoincome.If the object of subsidies is not specified in government documents, the subsidies shall be divided into income-related government subsidiesandassets-relatedgovernmentsubsidiesinthefollowingways:(1)Ifthegovernmentdocumentclarifiesthespecificproject for which the subsidy is targeted, the proportion of the expenditure amount of the assets to be formed and the amount of the expendituresincludedintheexpensesinthebudgetofthespecificprojectaredivided,andtheproportionofsubsidydivisionneeds tobereviewedoneachbalancesheetdayandchangedifnecessary.(2)Ingovernmentdocuments,ifthepurposeisexpressedonlyin general terms and no specific project is specified, the subsidy shall be regarded as a government subsidy related to the income. Where a government subsidy is a monetary asset, it shall be measured according to the amount received or receivable. If the governmentsubsidiesarenon-monetaryassets,theyshallbemeasuredatthefairvalue;ifthefairvaluecannotbeobtainedreliably, theyshallbemeasuredatthenominal amount.Governmentsubsidiesmeasuredinnominalamountsshallberecognized directlyin currentprofitsandlosses.
The Company usually confirms and measures the government subsidy according to the amount when it is actually received. However,ifthereisconclusiveevidenceattheendoftheperiodthattherelevantconditionsstipulatedinthefinancialsupportpolicy can be met and the financial support funds are expected to be received, it shall be measured according to the amount receivable. Governmentsubsidiesmeasuredinaccordancewiththeamountreceivableshallmeet thefollowingconditionsatthesametime:(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 significantuncertaintyintheamountexpected;(2)Accordingtothe"RegulationsontheOpennessofGovernmentInformation"that the local financial department officially released and in accordance with the provisions of the "Regulations on the Openness of
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 GovernmentInformation,"thefinancialsupportprojectanditsfinancialfundmanagementmeasuresshouldbeinclusive(anyeligible enterprisecanapplyforthem),ratherthanbeingspecificallytailoredtospecificcompanies; (3)Therelevantsubsidyapprovalhas 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 accordancewiththespecificcircumstancesoftheCompanyandthesubsidies.
Government subsidiesrelated toassets arerecognized as deferred earnings andare dividedintocurrent profits andlosses ina reasonableand systematic way duringtheservice life of theassets concerned.Thegovernment subsidiesrelated torevenue, 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 orlossin theperiodin which therelated costsor lossesare recognized; ifit isused to compensate therelated costsorlossesthathasoccurred,itshallbedirectlyrecognizedinthecurrentprofitandloss.
It includesgovernment subsidiesrelated to bothassets and income, anddifferent partsare separately classified for accounting treatment;ifitisdifficulttodistinguish,thewholeisclassifiedasgovernmentsubsidiesrelatedtoincome.
GovernmentgrantsrelatedtothedailyactivitiesoftheCompanyshallbeincludedinotherincomeorcostdeductionsaccording to the nature of the economic business; government subsidies unrelated to daily activities shall be included in the non-operating revenuesandexpenses.
When the recognized government subsidies need to be returned, if there are relevant deferred earnings balances, the book balanceof relateddeferred earningsshall bededucted,and theexcess partshall beincluded inthecurrentprofits andlossesor the bookvalueofassetsshallbeadjusted(thegovernmentsubsidiesrelatedtoassetswhicharedeductedfromthebookvalueofrelevant assets at the time of initial confirmation); otherwise, the book value of assets shall be directly included in the current profits and losses.
27.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)CurrentIncomeTax
Onthebalancesheetdate,thecurrentincometaxliabilities(orassets)formedinthecurrentandpreviousperiodsaremeasured bytheexpectedamountofincometaxpayable(orreturned)inaccordancewiththeprovisionsoftheTaxLaw.Theamountoftaxable incomeonwhichcurrentincometaxexpensesarecalculatedisbasedonthecorrespondingadjustmentofpre-taxaccountingprofits inthereportingperiodinaccordancewiththerelevanttaxlaws.
(2)DeferredIncomeTaxAssetsandDeferredIncomeTaxLiabilities
Thedifferencebetweenthebookvalueofcertainassetsandliabilitiesandtheirtaxbasis,andthetemporarydifferencebetween thebookvalueofitemsthatarenotrecognizedasassetsandliabilitiesbutwhichcanbedeterminedastheirtaxbasisaccordingtothe taxlaw,areconfirmedbythebalancesheetliabilitymethod.
Taxable temporary differences which related to the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transactionthat is neither a businesscombination nor an accountingprofit or taxable income (or deductible loss), relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporary differences related to
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 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 liabilitiesshallnotberecognized.Exceptfortheaboveexceptions,theCompanyrecognizesallotherdeferredincometaxliabilities arisingfromtaxabletemporarydifferences.
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 liabilitiesshallnotberecognized.Inaddition,fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesand jointventures,ifthetemporarydifferenceisunlikelytobereversedintheforeseeablefuture,ortheamountoftaxableincomeusedto 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,subjecttotheamountoftaxableincomethatislikelytobeobtainedtooffsettemporarydifferences.
For deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferred income tax assetsarerecognizedtotheextentthatitisprobablethatthefuturetaxableincomeshallbeusedtooffsetthedeductiblelossesand taxcredits..
Onthebalancesheetdate,thedeferredincometaxassetsanddeferredincometaxliabilitiesshallbemeasuredattheapplicable taxratesintheperiodinwhichtherelatedassetsarerecoveredortherelatedliabilitiesarerecoveredinaccordancewiththetaxlaws. Onthebalancesheetdate,thebookvalueofdeferredincometaxassetsisreviewed.andthebookvalueofdeferredincometax assetsiswrittendownifitislikelythatsufficienttaxableincomewillnotbeavailabletooffsetthebenefitsofdeferredincometax assetsinthefuture.Whenitispossibletoobtainsufficienttaxableincome,theamountwrittendownshallbereversed.
(3)Incometaxexpenses
Incometaxexpensesincludecurrentincometaxanddeferredincometax.
Inadditiontorecognizingthatthecurrentincometaxanddeferredincometaxrelatedtoothertransactionsandmattersdirectly includedinshareholder'srightsandinterestsshallberecognizedinothercomprehensiveincomeorshareholder'srightsandinterests, andthebookvalueofadjustedgoodwillfromdeferredincometaxresultingfromthemergerofenterprises,theothercurrentincome taxanddeferredincometaxexpensesorgainsshallberecognizedinprofitorlossforthecurrentperiod.
(4)OffsetofIncomeTax
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 liabilitiesatthesametime,thecompany'scurrentincometaxassetsandcurrentincometaxliabilitiesshallbepresentedonanetbasis aftertheoffset.
When it has the legal right to settle current income tax assets and current income tax liabilities on a net basis, and deferred incometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxleviedbythesametaxadministrationdepartment on the same tax payer or to different tax payers, but in thefuture, during each important periodof deferred income tax assets and liabilitiesbeingreversed,thetaxpayerinvolvedintendstosettlethecurrentincometaxassetsandliabilitiesonanetbasis,oracquire
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 assets and pay off liabilities simultaneously,thedeferred theincome tax assets and deferred income tax liabilities of theCompany shallbepresentedonanetbasisafteroffset.
28.Lease
Financialleaseisaleasethatessentiallytransfersallrisksandrewardsrelatedtotheownershipofassets.Itsownershipmayor maynotbetransferredeventually.Leasesotherthanfinancialleasesareoperatingleases.
(1)TheCompanyrecordsandoperatestheleasingbusinessasalessee.
Rentalexpensesforoperatingleasesshallbeincludedintherelatedasset costsorcurrentprofitsandlossesinthestraightline methodduringeachperiodoftheleaseperiod.Theinitialdirectcostsshallbeincludedinthecurrentprofitsandlosses.Contingent rentalsshallberecognizedinprofitsandlosseswhenincurred.
(2)Thecompanyrecordsandoperatestheleasingbusinessasalessor.
Therentalincomeofoperatingleaseshallberecognizedascurrentprofitandlossaccordingtothestraightlinemethodduring 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 shallbeincludedincurrentprofitsandlosseswhenactuallyoccurring.
(3)Thecompanyrecordsfinancialleasingbusinessasalessee
Atthebeginningoftheleaseperiod,thelowerofthefairvalueoftheleasedassetsandthepresentvalueoftheminimumlease paymentontheleasestartdateisregardedastheentryvalueoftheleasedassets,andthelowestleasepaymentshallberegardedas the entry value of the long-term payables, and the difference shall beregarded as the unrecognized financing cost. In addition, the initialdirectcostsattributabletotheleaseprojectshallalsobeincludedinthevalueoftheleasedassetswhentheyoccurduringthe leasenegotiationandthesigningoftheleasecontract.Thebalanceoftheminimumleasepaymentafterdeductingtheunrecognized financingcostsshallbepresentedaslong-termliabilitiesandlong-termliabilitiesduewithinoneyear,respectively.
Theunrecognizedfinancingcostshallbecalculatedbytherealinterestratemethodduringtheleaseperiod.Contingentrentals shallbeincludedincurrentprofitsandlosseswhenactuallyoccurring.
(4)Thecompanyrecordsfinancialleasingbusinessasalessor
At thebeginningofthelease period,thesumoftheminimumlease receipt andtheinitial directcost onthelease start dateis regardedastheentryvalueofthefinancialleasereceivable,andtheunsecuredbalanceshallberecorded.Thedifferencebetweenthe sumoftheminimumleasereceivable,theinitialdirectcostandtheunsecuredbalanceandthesumofitspresentvalueisrecognized astheunrealizedfinancingincome.Thebalanceofthereceivablefinancialleaseafterdeductingtheunrealizedfinancialincomeshall bepresentedaslong-termclaimsandlong-termclaimsmaturingwithinoneyear,respectively.
The unrealized financing income shall be calculated and confirmed by the real interest rate method during the lease period. Contingentrentalsshallberecognizedincurrentprofitsandlosseswhenactuallyoccurring.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 (1)TerminationofBusiness
Termination of business operations refers to those components which have been disposed of or classified by the Company as holding for sale and which can be separately distinguished in the operation and preparation of financial statements if one of the following conditions is satisfied: a.) The component represents an independent major business or a major business area; b.) The componentispartofadisposalplanforanindependentmajorbusinessoramajorbusinessarea;c.)Thecomponentisasubsidiary companyacquiredsolelyforresale.
(2)HedgingAccounting
Inordertoavoidcommoditypriceriskinspotoperation,thecompanydesignatescommodityfuturescontractsashedgingtools tomeettheprescribedconditionsofcommodityfutureshedging.SinceJanuary1,2016,thecompanyadoptsthefollowinghedging accounting methods stipulated in “Interim Provisions on theAccounting Treatment of Commodity Futures Hedging Business”(CaiKuai[2015]No.18)todealwithsuchbusiness,andtheaforementionedhedgeaccountingmethodsarenolongerappliedtosuch businesses.
ThehedgingoftheCompanyisfairvaluehedging.
Atthebeginningofthehedging,theCompanyspecifiesthehedgingrelationshipinwriting,includingrecords:Therelationship between hedging toolsand hedged items, as well as risk management objectives andhedging strategies; thenatureandquantity of hedgeditems;thenatureandquantityofhedginginstruments;thenatureandidentificationofhedgedrisks;Hedgingtype(fairvalue hedgingorcash flowhedging);Theevaluationofhedgingeffectiveness includestheanalysisoftheeconomicrelationshipbetween hedged items and hedging instruments, the hedging ratio and the source of hedging inefficiency. Start specifying the date of the hedgingrelationship,etc..Inaddition,whensignificantchangesoccuronthebalancesheetdateorrelatedcircumstanceswillaffect the requirement of hedging effectiveness, the company will evaluate the existing hedging relationship to determine whether the hedging relationship should be terminated or whether the number of designated hedged items or hedging instruments should be adjustedtomaintainthehedgingratio(i.e.rebalancing)thatmeetstherequirementofhedgingeffectiveness.
Ifduetothechangeofriskmanagementobjectives,thecompanycannolongerspecifytheestablishedhedgingrelationship,or the hedging tool is closed or delivered at maturity, or the risk exposure of the hedging project disappears, or if the hedging relationshipnolongermeetstheapplicationconditionsofhedgingaccountingafterconsideringrebalancing,thehedgingrelationship willbeterminated.
a.)FairValueHedging
For fair value hedging, during the duration of the hedging relationship, the Company takes into account the profits or losses resulting fromthechanges inthefair valueof hedginginstrumentsinthecurrentprofits andlosses. If thehedgeditem isinstock, during the duration of the hedging relationship, the Company will include the changes in the fair value of the hedged item in the currentprofitsandlosses,andadjustthebookvalueofthehedgeditem.Ifthehedgeditemisadefinitecommitment,theaccumulated fairvaluechangeofthehedgeditemafterthehedgingrelationshipisdesignatedshallberecognizedasanassetorliability,andshall beincludedintheprofitsandlossesofeachrelevantperiod.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 When thehedging relationshipterminates, if thehedged item isin stock, the company transfers thebookvalue of thehedged item into the cost of sale when the inventory is sold; if the hedged item is a definite commitment to purchase commodities, the companywilltransfertheassetsorliabilitiesformedbythechangeoftheaccumulatedfairvalueofthehedgeditemintotheinitial cost ofinventorywhenconfirmingtherelevant inventory; Ifthehedgeditemisthedefinitecommitment ofthesellingcommodity, thecompanywilltransfertheassetsorliabilitiesformedbythechangeoftheaccumulatedfairvalueofthehedgeditemintothesales revenuewhenthesaleisrealized.
30.ChangesinImportantAccountingPoliciesandAccountingEstimates
(1)ChangesofAccountingPolicy
||
|-|
|proceduresforexaminationandapproval|
|——|

Notes:
The Company adopts the retrospective adjustment method to the accounting policy change, which has the following main impactonthefinancialstatementpresentationitemsin2017:
|||
|-|-|
|Amount|PresentationItemsin2018FinancialStatement|
||Notes Receivable and AccountsReceivable|
|75,165,127.11||
|2,657,591.11|Notes Receivable and AccountsReceivable|
|73,064,548.76||
|1,333,410,146.38|FixedAssets|
|12,737,673.01|ConstructioninProgress|
|83,154,229.20|Notes Payable and AccountsPayable|
|317,538,928.27||
|86,064,211.31|OtherAccountsPayable|
|3,397,317.01||
|451,938,294.35||
|801,625.20|Long-termAccountsPayable|
|236,344,350.73|ManagementCost|
||R&DExpenses|

(2)Changesinaccountingestimates
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Thecompanyhasnochangesinaccountingestimatesthisyear.
31.MajorAccountingJudgmentandEstimation
In the process of applying accounting policies, due to the inherent uncertainty of business activities, the Company needs to judge, estimate and assume thebookvalue of statement items that cannotbeaccurately measured.These judgments, estimates and assumptionsarebasedonthepastexperienceofthecompany'smanagementandarebasedonotherrelevantfactors.Thesejudgments, estimates and assumptions affect the reported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilitiesonthebalancesheetdate.However,theuncertaintiesintheseestimatesmayleadtoactualresultsthataredifferentfromthe current estimates of the company's management, which may lead to significant adjustments in the book value of future assets or liabilitiesaffected.
The company periodically reviews the foregoing judgments, estimates and assumptions on the basis of continuous operation, andthechangesinaccountingestimatesonlyaffectthecurrentperiodofchange,andthenumberofimpactswillbeconfirmedinthe current period of change. If the changes affect both the current period and the future periods, the number of impacts will be confirmedinthecurrentandfutureperiodsofchange.
Onthebalancesheetdate,theimportantareasinwhichthecompanyneedstojudge,estimateandassumetheamountsofitems inthefinancialstatementsareasfollows:
(1)ReserveforInventoryDepreciation
In accordance with the inventory accounting policy,the Company calculates according to the lower of cost and net realizable value,andcalculatesthereservefordepreciationofinventorypricefortheoldandunsalableinventorywhosecostishigherthannet realizablevalue. Inventoryimpairment tonet realizablevalueisbasedonassessingthesalabilityofinventoryanditsnetrealizable value.Appraisalofinventoryimpairmentrequiresmanagementtomakejudgmentsandestimatesonthebasisofobtainingconclusive evidence,takingintoaccountthepurposeofholdinginventoryandtheimpactofeventsafterthebalancesheetdate.Thediscrepancy between the actual results and the original estimates will affect the book value of the inventory and the provision for inventory depreciationorreversalduringtheestimatedperiodofchange.
(2)FairValueofFinancialInstruments
For financial instruments that do not have active trading markets, the Company determines their fair value through various valuationmethods.Thesevaluationmethodsincludediscountedcashflowmodelanalysisandsoon.Whenvaluating,theCompany needs to estimate future cash flow, credit risk, market volatility and correlation, and select appropriate discount rate. These assumptionsareuncertain,andtheirchangeswillaffectthefairvalueoffinancialinstruments.
(3)DepreciationandAmortization
After consideringtheresidualvalue ofinvestment real estate, fixed assets andintangibleassets, theCompany shalldepreciate andamortizetheminastraightlinemethodduringtheirservicelife.Thecompanyregularlyreviewstheservicelifetodeterminethe amountofdepreciationandamortizationchargesincludedineachreportingperiod.Theservicelifeofthecompanyisdeterminedon the basis of previous experience of similar assets and combined with anticipated technological updates. If significant changes in
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 previousestimatesoccur,depreciationandamortizationcostswillbeadjustedinthefuture.
(4)DeferredIncomeTaxAssets
Withinthelimit wherethereislikelytobesufficienttaxableprofits tooffsetlosses, theCompanyrecognizesdeferredincome taxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousealargenumberofjudgmentstoestimatethetime andamountoffuturetaxableprofits,combinedwithtaxplanningstrategy,todeterminetheamountofdeferredincometaxassetsthat shouldberecognized.
(5)IncomeTax
In our normal business activities, there are some uncertainties in the final tax treatment and calculation of some transactions. Whethersomeprojectscanbepaidbeforetaxneedstheapprovalofthecompetenttaxauthorities.Ifthereisadifferencebetweenthe finalresultofthesetaxitemsandtheinitialestimatedamount,thedifferencewillaffectthecurrentincometaxanddeferredincome taxinthefinalperiod.
(6)FairValueMeasurement
CertainassetsandliabilitiesoftheCompanyaremeasuredatfairvalueinthefinancialstatements.Theboardofdirectorsofthe Company has established a Valuation Committee (which is headed by the chief financial officer of the Company) to determine appropriatevaluationtechniquesandinputvaluesforfairvaluemeasurement.Whenestimatingthefairvalueofanassetorliability, theCompanyusesavailableobservablemarketdata.Iftheinputvalueofthefirstlevelisnotavailable,theCompanywillemploya third-partyqualifiedevaluatortocarryouttheevaluation.TheValuationCommitteeworkscloselywithqualifiedexternalevaluators to determine appropriate valuation techniques and input values for relevant models. The CFO reports quarterly to the board of directors the findings of the Valuation Committee to explain the reasons for the fluctuations in the fair value of the assets and liabilities involved. Information on valuation techniques and input values used in determining the fair value of various assets andliabilitiesisdisclosedinNoteⅩ.
Section5.Taxes
1.MainTaxesandTaxRates
||
|-|
|TaxBasis|
|After deducting the allowable amount of input tax deducted in the currentperiod,thedifferencebetween thesalesofgoods,taxableservicesandtaxableservicesincomecalculatedinaccordancewiththeprovisionsoftheTaxLawisthetaxablevalue-addedtax.|
|Accordingtotheactualvalue-addedtax|
|According to value added tax and consumption tax on the basis of actualpayment|
|According to value added tax and consumption tax on the basis of actualpayment|
|Accordingtotaxableincome|
|Accordingto70%oforiginalvalueoftherealestate (orrentalincome)asthetax base; according to the original value of the real estate deducted 30% at atime.|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|TaxBasis|
|According to Real Estates Income；According to the transfer of real estateamountofsimplelevylevy|

Notesontaxpayersofdifferententerpriseincometaxrates:
TaxPayers IncomeTaxRate
LinanChunManYuanAgriculturalDevelopmentCo.,Ltd. 10%
Jingliang(Singapore)InternationalTradeCo.,Ltd. 17%
BeijingGuchuanBreadFoodCo.,Ltd. 15%
2.TaxPreferencesandApprovalDocuments
HangzhouLinanLittleAngelFoodCo.,Ltd.,a4thtiersubsidiarycompanyoftheCompany,isawelfareenterprise.Itenjoysthe preferential VAT policy of immediate refund upon payment of 35,000 yuan per person per year for Promoting the Employment of Disabled Persons in 2015 and April 2016. Since May 2016, it has enjoyed the preferential VAT policy of immediate refund upon payment in Preferential Value-Added Tax Policies for Promoting the Employment of DisabledPersons(CaiShui[2016]No.52).
InaccordancewiththerelevantprovisionsofMinistryofFinanceandStateAdministrationofTaxation “NoticeonPreferentialEnterpriseIncomeTaxPoliciesforEmploymentofPersonswithDisabilities”(CaiShui[2009]No.70),HangzhouLinanLittleAngel FoodCo.,Ltd.,a4thtiersubsidiarycompanyoftheCompany:Whereanenterpriseemployspersonswithdisabilities,onthebasisofdeductionaccordingtothewagespaidtothedisabledworkers,itmaydeducttheamountoftaxableincomeaccordingto100%ofthe wagespaidtothedisabledworkers.
AccordingtotheannouncementofZhejiangProvincialTaxBureau(No.8,2014),HangzhouLinanLittleAngelFoodCo.,Ltd., a4thsubsidiarycompanyoftheCompany,canenjoythepreferentialpolicyofreducingtheurbanlandusetaxbyanannualquotaof 2,000yuanperpersonfortheaveragenumberofactualresettlement,andthemaximumamountofreductionistheurbanlandusetax payablebytheunitinthecurrentyear.
Jingliang (Singapore) International Trade Co., Ltd., a 3rd tier subsidiary of the Company, levies taxes on the principle of territoriality. For the subsidiary newly established in Singaporean, during the first consecutive three audit year, can enjoy the first three-yeargovernmenttaxexemptionplan.Singapore'staxexemptionplanisasfollows:thefirstSGD100,000ofannualincomeandthefirstSGD100,000:taxrateof0.PartsofSGD100,001to300,000:taxrate8.5%.Over$300,000attaxrate17%.
BeijingGuchuanBread&FoodCo.,Ltd.,a3rdtiersubsidiaryoftheCompany,isahigh-techenterprise.OnNovember30,2018, itobtainedthecertificateofhigh-techenterpriseandthecertificatenumberGR201811007245.Itisvalidforthreeyears.Itenjoysthepreferentialtaxpolicyofpayingenterpriseincometaxatthe15%taxrateaccordingtotherelevantprovisionsofboth “Lawofthe People'sRepublicofChinaonTaxCollectionandAdministration” and “RulesfortheImplementationoftheTaxCollectionand
AdministrationLawofthePeople'sRepublicofChina”.
Thecompanylevel4subsidiaryJingliang(Hebei)OilIndustryCo.,Ltd.,accordingtothefinancialdepartmentdocuments,local
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018taxationbureauinhebeiprovince,hebeiprovincedocumentjicaishui[2016]no.74"aboutpartsreservecommodityannouncement concerning the tax policy, accounting books shall be exempt from stamp duty for funds, to undertake business book stand in the processofbuyingandsellingcontractcommodityreservesshallbeexemptfromstampduty,otherpartiesinthecontractshouldpay thestampdutyshallalsobesubjecttoduty-paymentaccordingtotheparties.Propertytaxandlandusetaxofcitiesandtownsshall beexempted fromthepropertytaxandland usetaxofcities andtownsthatundertake thebusinessof commodityreserve for their ownuse.ThenoticewillbeexecutedonJanuary1,2016,solstice,andDecember31,2018.
Jingliang (Hebei) Oil Industry Co., Ltd., a 4th subsidiary company of the Company, exempts the sale of edible vegetable oil storedbythegovernmentfromVATaccordingto“NoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheLevyandExemptionofValueAddedTaxforFoodEnterprises”（CaiShui[1999]No.198）
The company level 3 subsidiary Beijing day weikang grease DiaoXiao center co., LTD., according to the national tax administration of the ministry of finance, the notice about food enterprises exempted from VAT tax word (1999), article 5, 198, responsibleforcollectionandstorageofgrainpurchaseandsaleofstate-ownedgrainenterprisesandbusinessduty-freeitemslisted inthenoticeofotherfoodbusiness,andgovernmentreservesediblevegetableoilsalesenterprises,whichshouldbeexaminedbythe competenttaxauthoritiesdeemedtax-exemptstatus,notreportedtothecompetenttaxauthoritieswheretheauditdeterminedthatno exemption,FromJune1,2017toDecember31,1999,thecompanywillexemptediblevegetableoilstoredbythegovernmentfrom VAT.
Section6.NotesonItemsinConsolidatedFinancialStatements
Thefollowingannotateditems(includingannotationsofmajoritemsinthecompany'sfinancialstatements)refertoJanuary1, 2018atthebeginningoftheyear,December31,2018attheendoftheperiod,2018atthecurrentperiodand2017atthelastperiod, unlessotherwisespecified.
1.Monetaryfunds
||
|-|
|EndingBalance|
|46,418.17|
|794,705,225.28|
|130,118,373.33|
|924,870,016.78|

Therestrictedmonetaryfundsareasfollows:
||
|-|
|EndingBalance|
|57,000,000.00|
|57,000,000.00|

Note:Thelimitedmoneyfundattheendoftheperiodis57,000,000.00yuan,seeSection6,52fordetails.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 2.DerivativeFinancialAssets
||
|-|
|EndingBalance|
|71,260,414.60|
|71,260,414.60|

 Note:
(1) In order to avoid commodity price risk in spot operation, the Company designates commodity futures contracts as hedging instruments to meet the prescribed conditions. Since January 1, 2016, the Company has adopted the hedging accounting methodstipulatedintheInterimProvisionsforAccountingProcessingofCommodityFuturesHedgingBusiness(CaiKuai[2015]No.18). (2)Thecompany'sderivative financial assetsaresoybean oil,palmoil,vegetableoilandsoybeanmeal futurescontractspurchased bysubsidiariesofthethirdandfourthtier.
3.NotesReceivableandAccountsReceivable
||
|-|
|EndingBalance|
|97,775,710.11|
|97,775,710.11|

 (1)AccountsReceivable
a.)ClassifiedDisclosureofAccountsReceivable
EndingBalance
|||||
|-|-|-|-|
|BookBalance||BadDebtProvision||
|Amount|Ratio(%)|Amount|ProvisionRatio(%)|
|94,766,012.02||446,302.71||
|3,456,000.80||||
|98,222,012.82|99.57|446,302.71|0.45|
|420,575.29|0.43|420,575.29|100.00|
|98,642,588.11|100.00|866,878.00|—|

 (Continued)
BeginningBalance
|||||
|-|-|-|-|
|BookBalance||BadDebtProvision||
|Amount|Ratio(%)|Amount|ProvisionRatio(%)|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||
|-|-|-|-|
|72,814,580.29||482,408.18||
|2,832,955.00||||
|75,647,535.29|99.45|482,408.18|0.64|
|420,575.29|0.55|420,575.29|100.00|
|76,068,110.58|100.00|902,983.47|—|

 A.Inportfolio,AccountsReceivablewithprovisionforbaddebtsiscalculatedbyageanalysismethod
EndingBalance
Aging
|||
|-|-|
|AccountsReceivable|BadDebtProvision|
|82,537,774.17||
|6,840,738.97|136,814.78|
|5,264,078.88|263,203.93|
|51,420.00|10,284.00|
|72,000.00|36,000.00|
|94,766,012.02|446,302.71|

(Continued)
BeginningBalance
Aging
|||
|-|-|
|AccountsReceivable|BadDebtProvision|
|63,757,518.38||
|8,010,976.05|160,219.52|
|534,198.10|26,709.91|
|167,345.26|33,469.05|
|107,802.00|53,901.00|
|143,159.00|114,527.20|
|93,581.50|93,581.50|
|72,814,580.29|482,408.18|

B.Inportfolio,AccountsReceivablewithprovisionforbaddebtsiscalculatedbyothermethods
EndingBalance
PortfolioName(s)
|||
|-|-|
|AccountsReceivable|BadDebtProvision|
|146,333.80||
|1,394,180.00||
|1,067,408.00||
|436,300.00||
|370,505.00||
|4,074.00||
|37,200.00||
|3,456,000.80||

Note:Theaboveaccountsreceivablefor theprovisionfor baddebtsbyother methodsareall thosethatoccurredbeforetherelated
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 partieswithinthegroup.
C、EndingReceivableswithminoramountsbutseparateprovisionforbaddebts
EndingBalance
||||
|-|-|-|
|AccountsReceivable|BadDebtProvision|ProvisionRatio|
|163,143.00|163,143.00|100.00|
|600.00|600.00|100.00|
|1,809.60|1,809.60|100.00|
|10,862.90|10,862.90|100.00|
|875.90|875.90|100.00|
|243,283.89|243,283.89|100.00|
|420,575.29|420,575.29|—|

 b.)Baddebtsaccrued,recoveredorreversedinthecurrentperiod
Provisionforbaddebtsinthecurrentperiod-33,415.47yuan。
c.)Accountsreceivableactuallywrittenoffinthecurrentperiod
Item(s) Write-offAmount
AccountsReceivableactuallyWrittenOff
2,690.00 d.)AccountsReceivableoftheTop5BalancesCollectedbyDebtorsattheEndofthePeriod
The total amount of the top 5 accounts receivable collected by debtors in the current period is 66,879,860.65 yuan, accounting for67.80% of the total balance of accounts receivable at the end of the period, and the corresponding sum of bad debtsattheendoftheperiodis309,552.10yuan.
|||
|-|-|
|totalendingbalanceofaccountsreceivable|Ratioofthetotalendingbalanceofaccountsreceivable(%)|
|42,673,218.40|43.26|
|10,584,568.96|10.73|
|6,145,386.37|6.23|
|4,040,917.20|4.10|
|3,435,769.72|3.48|
|66,879,860.65|67.80|

 4.AdvancedPayment
(1) Advancesarepresentedbyage
||||
|-|-|-|
|EndingBalance|||
|Amount|Ratio(%)|Amount|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||
|-|-|-|
|119,883,849.19|99.75|912,778,989.71|
|297,593.70|0.25|64,499.99|
|120,181,442.89|100.00|912,843,489.70|

 Note:TheCompanyhasnosignificantadvancepaymentsformorethanoneyearinthisyear.
(2)AdvancepaymentofthetopfiveEndingBalancesbyprepaidobjects
Thesummaryofthetopfiveprepaymentsofthecompany'sfinalbalancesbasedonprepaidobjectsis96,327,652.64yuan,accountingfor80.15%ofthetotalbalanceofprepaymentsattheendoftheperiod.
||
|-|
|EndingBalance|
|37,497,973.88|
|35,871,982.62|
|14,391,240.00|
|5,134,856.14|
|3,431,600.00|
|96,327,652.64|

 (3)Statusofprepaidaccountsreversalinthecurrentperiod
Item(s) ReversalAmount
XiaMiaoJie
80,000.00 5.OtherReceivables
||
|-|
|EndingBalance|
|15,855,636.42|
|2,400,877.51|
|18,256,513.93|

（1）OtherReceivables
a.)ClassifiedDisclosureofOtherReceivables
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 EndingBalance
|||||
|-|-|-|-|
|BookBalance||BadDebtProvision||
|Amount|Ratio(%)|Amount|ProvisionRatio(%)|
|16,152,562.64||296,926.22||
|16,152,562.64|99.88|296,926.22|1.84|
|20,000.00|0.12|20,000.00|100.00|
|16,172,562.64|100.00|316,926.22|—|

 (Continue)
BalanceatBeginningofYear
|||||
|-|-|-|-|
|BookBalance||BadDebtReserves||
|Amount|Percentage(%)|Amount|AccruedProportion(%)|
|75,440,422.35||3,271,112.88||
|200.00||||
|75,440,622.35|98.80|3,271,112.88|4.34|
|919,039.29|1.20|24,000.00|2.61|
|76,359,661.64|100.00|3,295,112.88|—|

 AOtherreceivableswithbaddebtreservescountedanddrawnaccordingtoaginganalysismethod
BalanceatEndofPeriod
Aging
|||
|-|-|
|OtherReceivables|BadDebtReserves|
|9,060,501.22||
|4,385,505.15|87,710.10|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 BalanceatEndofPeriod
Aging
|||
|-|-|
|OtherReceivables|BadDebtReserves|
|2,480,634.27|124,031.72|
|175,922.00|35,184.40|
|50,000.00|50,000.00|
|16,152,562.64|296,926.22|

(Continue)
BalanceatBeginningofYear
Aging
|||
|-|-|
|OtherReceivables|BadDebtReserves|
|7,649,440.63||
|5,371,206.90|107,424.14|
|62,361,774.82|3,118,088.74|
|3,000.00|600.00|
|50,000.00|40,000.00|
|5,000.00|5,000.00|
|75,440,422.35|3,271,112.88|

BOtherreceivableswithsingleamountnotbeingsignificantbutbaddebtreservescountedanddrawnindividually BalanceatEndofPeriod
||||
|-|-|-|
|OtherReceivables|BadDebtReserves|AccruedProportion|
|20,000.00|20,000.00|100.00|
|20,000.00|20,000.00|—|

②Baddebtreservescountedanddrawn,collectedorrecoveredinthecurrentperiod
Baddebtreserveaccountsdrawninthecurrentperiod:-2,978,186.66Yuan
③ Classificationofotherreceivablesbynatureoffunds
||
|-|
|BookBalanceatEndofPeriod|
|233,548.14|
|2,011,122.17|
|12,213,774.63|
|418,634.62|
|1,169,522.00|
|125,961.08|
|16,172,562.64|

④ Otherreceivablesaccordingtotopfiveofbalanceatendofperiodcollectedbydebtors
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||
|-|-|-|-|
|NatureofFunds|BalanceatEndofPeriod|Aging|Proportioninoverallendingbalanceofotherreceivables(%)|
|IntercourseFundsofUnits|5,079,631.73|Within1year|31.41|
|IntercourseFundsofUnits|4,759,731.67|Within3months|29.43|
|Tax RefundReceivables|993,600.00|Within3months|6.14|
|GuaranteedDepositandDeposit|420,401.00|1to2years|2.60|
|IntercourseFundsofUnits|358,128.01|Within3months|2.21|
|—|11,611,492.41|—|71.79|

 (2)InterestReceivable
①ClassificationofInterestReceivable
||
|-|
|BalanceatEndofPeriod|
|2,400,877.51|
|2,400,877.51|

 6.Inventory
(1)InventoryCategory
BalanceatEndofPeriod
Items
|||
|-|-|
|BookBalance|FallingPriceReserves|
|201,025,950.79|67,131.25|
|3,454,520.07||
|711,226,691.70|5,292,085.61|
|16,497,730.12|11,673,694.67|
|53,773,706.64||
|248,197,500.00||
|7,043,775.28||
|1,241,219,874.60|17,032,911.53|

 (Continue)
BalanceatBeginningofYear
Items
|||
|-|-|
|BookBalance|FallingPriceReserves|
|368,354,117.16|173,907.66|
|3,027,491.97||
|632,073,799.20|3,065,580.89|
|16,497,730.12|11,673,694.67|
|140,113,625.93||
|615,202.96|7,520.05|
|248,197,500.00||
|1,408,879,467.34|14,920,703.27|

(2) InventoryFallingPriceReserves
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||||
|-|-|-|-|-|
|BalanceatBeginningofYear|IncreasedAmountsintheCurrentPeriod||DecreasedAmountsintheCurrentPeriod||
||Accrual|Others|RecoverorChargeOff|Others|
|173,907.66|67,131.25||173,907.66||
|3,065,580.89|4,403,217.09||2,176,712.37||
|7,520.05|||7,520.05||
|11,673,694.67|||||
|14,920,703.27|4,470,348.34||2,358,140.08||

 (3)AccrualBasisofInventoryFallingPriceReservesandReasonofRecoveringorChargingOffintheCurrentPeriod
|||
|-|-|
|SpecificAccrualBasisofInventoryFallingPriceReserves|ReasonofRecoveringInventoryFallingPriceReservesintheCurrentPeriod|
|Market Quotes on the Website ofCofeed||
|Market Quotes on the Website ofCofeed||
|MarketQuotesontheWebsiteofCofeed||

(4)AdditionalNotesofInventory
Bookvalueofinventoryusedformortgageatendofperiodis4,824,035.45Yuan,seeingSix52.
7.Non-currentAssetsDuewithinoneyear
||
|-|
|BalanceatEndofPeriod|

 8.OtherCurrentAssets
||
|-|
|BalanceatEndofPeriod|
|223,300,000.00|
|6,207,985.16|
|59,155,031.47|
|158,800.00|
|288,821,816.63|

 9.Available-for-saleFinancialAssets
(1)Available-for-saleAssetsSituation
||||||
|-|-|-|-|-|
|BalanceatEndofPeriod|||||
|BookBalance|ImpairmentReserves|BookValue|BookBalance|ImpairmentReserves|
|30,500,000.00|10,500,000.00|20,000,000.00|30,500,000.00|10,500,000.00|
|30,500,000.00|10,500,000.00|20,000,000.00|30,500,000.00|10,500,000.00|
|30,500,000.00|10,500,000.00|20,000,000.00|30,500,000.00|10,500,000.00|

 (2)Available-for-saleFinancialAssetsCalculatedatCostatEndofPeriod
BookBalance
InvestedUnit
||||
|-|-|-|
|AtBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|500,000.00|||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 BookBalance
InvestedUnit
||||
|-|-|-|
|AtBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|10,000,000.00|||
|20,000,000.00|||
|30,500,000.00|||

 (Continue)
||||||
|-|-|-|-|-|
|ImpairmentReserves||||ShareholdingRatioinInvestedUnit(%)|
|AtBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|AtEndofPeriod||
|500,000.00|||500,000.00|6.67|
|10,000,000.00|||10,000,000.00|10.00|
|||||20.00|
|||||10.96|
|10,500,000.00|||10,500,000.00|—|

Note:①Uptothisfinancialreportingday,HTTSConstructionManagementCo.,Ltd.Beijinghasn’trunbusiness.
10.Long-termEquityInvestment
||||||
|-|-|-|-|-|
|BalanceatBeginningofYear|||||
||AdditionalInvestment|NegativeInvestment|ConfirmedProfitandLossonInvestmentunderEquityLaw|AdjustmentonOtherComprehensiveIncome|
|58,936,076.18|||6,824,826.10|-421,278.00|
|58,936,076.18|||6,824,826.10|-421,278.00|
|115,653,625.56|||1,505,296.36||
|115,653,625.56|||1,505,296.36||
|174,589,701.74|||8,330,122.46|-421,278.00|

 (Continue)
|||||
|-|-|-|-|
|IncreaseorDecreaseintheCurrentPeriod|||BalanceatEndofPeriod|
|AnnouncetoDistributeCaseDividendsorProfits|AccrualofImpairmentReserves|Others||
||||65,339,624.28|
||||65,339,624.28|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||
|-|-|-|-|
|IncreaseorDecreaseintheCurrentPeriod|||BalanceatEndofPeriod|
|AnnouncetoDistributeCaseDividendsorProfits|AccrualofImpairmentReserves|Others||
||||117,487,601.83|
||||117,487,601.83|
||||182,827,226.11|

11.InvestmentRealEstate
(1)InvestmentRealEstateAdoptingCostMeasurementModel
||||
|-|-|-|
|Buildings|LandUseRight|ProjectsunderConstruction|
|42,634,619.63|||
|42,634,619.63|||
|7,171,923.29|||
|1,613,750.94|||
|1,613,750.94|||
|8,785,674.23|||
|453,843.72|||
|453,843.72|||
|33,395,101.68|||
|35,008,852.62|||

 (2)AmountofInvestmentRealEstatewithoutCertificateofTitleandCorrespondingReasons
||
|-|
|BookValue|
|299,056.53|

 (3)InstructionsofInvestmentRealEstate
Bookvalueofinvestmentrealestateusedformortgageatendofperiodis5,778,794.3Yuan,seeingSix52.
12.FixedAssets
||
|-|
|BalanceatEndofPeriod|
|1,271,803,080.56|
|1,271,803,080.56|

(1)FixedAssets
①FixedAssetsSituation
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||||
|-|-|-|-|-|-|
|Buildings|MachineryEquipment|TransportationEquipment|ElectronicEquipment|OfficeEquipment|Others|
|1,071,025,127.22|342,486,447.66|23,979,379.20|12,290,410.35|1,999,003.92|362,817,865.15|
|10,262,771.03|19,676,326.66|1,048,873.50|1,618,684.33|223,661.52|5,044,426.38|
|9,272,221.22|12,676,315.05|1,048,873.50|1,618,684.33|223,661.52|4,526,852.86|
|990,549.81|7,000,011.61||||517,573.52|
|3,898,021.16|10,559,506.71|2,776,967.64|243,205.12|18,803.42|53,526.36|
|865,331.60|9,881,664.25|2,776,967.64|243,205.12|18,803.42|53,526.36|
|3,032,689.56|677,842.46|||||
|1,077,389,877.09|351,603,267.61|22,251,285.06|13,665,889.56|2,203,862.02|367,808,765.17|
|224,812,333.11|107,634,684.03|16,779,833.88|7,674,067.81|976,268.21|114,459,916.24|
|38,439,038.72|27,193,461.06|1,342,177.03|2,084,051.36|346,365.87|24,021,449.97|
|38,439,038.72|27,193,461.06|1,342,177.03|2,084,051.36|346,365.87|24,021,449.97|
|1,282,827.79|6,960,995.01|2,317,600.34|197,470.64|53,663.08|114,647.00|
|519,972.04|6,935,339.45|2,317,600.34|197,470.64|53,663.08|114,647.00|
|762,855.75|25,655.56|||||
|261,968,544.04|127,867,150.08|15,804,410.57|9,560,648.53|1,268,971.00|138,366,719.21|
|7,590,384.72|1,260,599.12|||||
|91,088.80|476,472.52|||||
|7,499,295.92|784,126.60|||||
|807,922,037.13|222,951,990.93|6,446,874.49|4,105,241.03|934,891.02|229,442,045.96|
|838,622,409.39|233,591,164.51|7,199,545.32|4,616,342.54|1,022,735.71|248,357,948.91|

②TemporarilyIdleFixedAssetsSituation
|||||
|-|-|-|-|
|OriginalBookValue|AccumulatedImpairment|ImpairmentReserves|BookValue|
|47,708.00|36,401.08|8,921.52|2,385.40|
|2,124,189.04|1,242,774.50|775,205.08|106,209.46|
|2,171,897.04|1,279,175.58|784,126.60|108,594.86|

③SituationofFixedAssetswithoutTransactingCertificateofTitle
||
|-|
|BookValue|
|11,491,413.86|
|1,585,685.65|
|13,077,099.51|

④ OtherInstructionsofFixedAssets
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 (1)Bookvalueoffixedassetsusedformortgageatendofperiodis3,983,893.20Yuan,seeingSix52.
(2)Originalvalueoffixedassetsthatarefullydepreciatedbutcontinuetouseis22,061,546.94Yuan.
13.ProjectunderConstruction
(1)SituationofProjectunderConstruction
||||||
|-|-|-|-|-|
|BalanceatEndofPeriod|||||
|BookBalance|ImpairmentReserves|BookValue|BookBalance|ImpairmentReserves|
|36,034,188.98||36,034,188.98|12,436,003.53||
|1,335,568.80||1,335,568.80|301,669.48||
|37,369,757.78||37,369,757.78|12,737,673.01||

 (2)ChangeConditionofImportantEngineeringProjectsunderConstructionintheCurrentPeriod
|||||
|-|-|-|-|
|BalanceatBeginningofYear|IncreasedAmountsintheCurrentPeriod|Roll-inFixedAssetsAmountintheCurrentPeriod|OtherDecreasedAmountsintheCurrentPeriod|
|1,484,243.56|8,441,884.48|517,573.52||
|4,300,657.45|3,539,697.07|168,000.00||
|980,000.00||980,000.00||
|2,350,000.00||2,350,000.00||
|881,000.00||881,000.00||
|1,102,715.52|95,255.88|431,235.62||
||9,760,300.00|||
||2,691,598.53|||
||1,830,000.00|||
||1,798,382.97|||
||1,227,344.82|||
|11,098,616.53|29,384,463.75|5,327,809.14||

 14.IntangibleAssets
(1)IntangibleAssetsSituation
|||||
|-|-|-|-|
|Software|LandUseRight|TrademarkRight|Others|
|3,409,534.38|318,161,901.57|154,841,200.00|662,400.00|
|205,283.02|22,177,167.52|||
|205,283.02|2,348,687.22|||
||19,828,480.30|||
||23,271,853.11|||
||2,722,786.97|||
||20,549,066.14|||
|3,614,817.40|317,067,215.98|154,841,200.00|662,400.00|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||
|-|-|-|-|
|Software|LandUseRight|TrademarkRight|Others|
|2,345,889.44|42,329,120.31|32,893,594.13||
|533,126.11|10,431,643.88|7,713,925.84||
|533,126.11|10,431,643.88|7,713,925.84||
||4,106,594.01|||
||494,749.71|||
||3,611,844.30|||
|2,879,015.55|48,654,170.18|40,607,519.97||
||||662,400.00|
||||662,400.00|
|735,801.85|268,413,045.80|114,233,680.03||
|1,063,644.94|275,832,781.26|121,947,605.87||

 (2)UseRightSituationofLandwithoutTransactingCertificateofTitle
||
|-|
|BookValue|
|4,073,145.20|
|17,105,693.33|

15.Goodwill
(1)OriginalBookValueofGoodwill
||||||
|-|-|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod||DecreaseintheCurrentPeriod||
||FormedbyEnterpriseMerger|Others|Disposal|Others|
|191,394,422.51|||||
|191,394,422.51|||||

 Notes:1)GoodwilloftheCompanyismainlyformedbyacquiringstocksharesofZhejiangXiaowangziFoodCo.,Ltd..
2)Impairmenttestingprocedure,parametersandimpairmentlossconfirmationmethodofgoodwill
TheCompanyconfirmsallassetsofZhejiangXiaowangziFoodCo.,Ltd.asanassetgroupofwhichitsrecoverableamountisbased on cash-flow forecast in the near five years and calculated according to present value of expected cash-flow of asset group in the future.Intheprocessofimpairmenttest,coredatasuchasexpectedproductprice,salesvolumecostandotherrelatedexpensesused by cash-flow forecast is confirmed by corporate historical experience and market development forecast. Discount rate used in cash-flowforecast isconfirmed withreference totimevalueofcurrencyincurrentmarket andrelated specificrisksofasset group.TherecoverableamounttestofabovegoodwillmadebytheCompanyshowsthatthesituationofimpairmentlosshasn’toccurredin goodwill.
16.Long-termUnamortizedExpenses
|||||
|-|-|-|-|
|BalanceatBeginningofYear|IncreasedAmountsintheCurrentPeriod|AmortizedAmountsintheCurrentPeriod|OtherDecreasedAmounts|
|16,858,945.99||676,613.16||
|238,787.59||59,039.64||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||
|-|-|-|-|
|BalanceatBeginningofYear|IncreasedAmountsintheCurrentPeriod|AmortizedAmountsintheCurrentPeriod|OtherDecreasedAmounts|
|5,309,496.00||112,968.00||
|8,737,864.10|3,883,495.16|2,559,576.36||
|395,961.97||84,848.99||
|435,232.36|33,361.00|98,268.26||
|1,234,029.63|250,230.39|311,827.96||
|37,277.64|34,498.00|14,355.13||
||868,962.56|169,380.19||
||323,669.90|64,733.98||
||188,679.24|7,861.64||
|33,247,595.28|5,582,896.25|4,159,473.31||

 17.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DetailsofDeferredIncomeTaxAssetsNotBeingOffset
||||
|-|-|-|
|BalanceatEndofPeriod|||
|Deductible TemporaryDifference|DeferredIncomeTaxAssets|Deductible TemporaryDifference|
|5,975,793.94|1,493,058.58|5,601,872.74|
|2,378,893.29|594,723.33|4,693,778.62|
|11,652,792.92|2,913,198.23|18,363,036.93|
|1,350,000.00|337,500.00|1,800,000.00|
|39,970,000.00|9,992,500.00|26,257,600.00|
|61,327,480.15|15,330,980.14|56,716,288.29|

 (2)DetailsofDeferredIncomeTaxLiabilitiesNotBeingOffset
||||
|-|-|-|
|BalanceatEndofPeriod|||
|TaxableTemporaryDifference|DeferredIncomeTaxLiabilities|TaxableTemporaryDifference|
|407,589.76|101,897.44|16,734,404.50|
|198,067,768.12|49,516,942.03|208,008,300.08|
|198,475,357.88|49,618,839.47|224,742,704.58|

 (3)DetailsofDeferredIncomeTaxAssetsNotBeingConfirmed
||
|-|
|BalanceatEndofPeriod|
|35,403,914.26|
|-2,714,794.81|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|BalanceatEndofPeriod|
|32,689,119.45|

 (4)Deductiblelossondeferredincometaxassetsnotbeingconfirmedwillbedueatthefollowingyears
|||
|-|-|
|BalanceatEndofPeriod|BalanceatBeginningofYear|
|6,473,030.05|5,769,102.97|
|4,504,020.42|4,504,020.42|
|4,021,787.39|4,021,787.39|
|20,405,076.40||
|35,403,914.26|14,294,910.78|

18.OtherNon-currentAssets
||
|-|
|BalanceatEndofPeriod|
|1,622,003.59|
|1,622,003.59|

 19.Short-termBorrowings
(1)ClassificationofShort-termBorrowings
||
|-|
|BalanceatEndofPeriod|
|370,000,000.00|
|1,067,715,080.91|
|1,437,715,080.91|

 20.NotesandAccountsPayable
||
|-|
|BalanceatEndofPeriod|
|140,564,713.11|
|140,564,713.11|

 (1)NotesPayable
||
|-|
|BalanceatEndofPeriod|

 (2)AccountsPayable
AccountsPayableListedbyNatureofFunds
||
|-|
|BalanceatEndofPeriod|
|121,681,815.91|
|289,019.48|
|15,527,703.10|
|583,301.20|
|2,482,873.42|
|140,564,713.11|

Note:TherearenoimportantpayableswithoveroneyearofagingintheCompanythiscurrentyear.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 (1)ListofAccountsCollectedinAdvance
||
|-|
|BalanceatEndofPeriod|
|143,857,900.77|
|769,003.41|
|690,160.00|
|145,317,064.18|

 Note:TherearenoimportantaccountscollectedinadvancewithoveroneyearofagingintheCompanythiscurrentyear.
22.WagesPayable
(1)ListofWagesPayable
||||
|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|28,869,807.85|266,883,310.17|265,815,058.87|
|1,645,436.22|27,857,038.48|28,100,077.26|
|246,787.46|2,867,140.01|2,959,816.01|
|30,762,031.53|297,607,488.66|296,874,952.14|

 (2)ListofShort-termCompensation
||||
|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|23,623,803.03|220,412,503.59|218,369,287.64|
||8,533,525.88|8,283,037.78|
|1,173,235.12|15,498,489.85|15,761,705.14|
|487,861.28|11,893,875.45|12,041,294.72|
|243,854.07|1,738,117.90|1,850,704.95|
|48,976.63|1,040,601.95|1,043,810.92|
|392,543.14|825,894.55|825,894.55|
|360,036.42|9,516,068.50|9,686,463.92|
|3,706,067.66|4,481,506.36|5,273,348.40|
|6,665.62|8,441,215.99|8,441,215.99|
|28,869,807.85|266,883,310.17|265,815,058.87|

 (3)ListofStatedDrawingsPlan
||||
|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|1,537,935.17|25,867,530.70|26,074,331.29|
|55,433.85|876,428.79|880,483.42|
|52,067.20|1,112,473.99|1,144,657.55|
|1,645,436.22|27,857,038.48|28,100,077.26|

 Notes:TheCompanyjoinspensioninsuranceandunemploymentinsuranceprogramssetbygovernmentagenciesinaccordancewith regulations.Accordingtothese programs,theCompany depositsexpenses ofpensioninsuranceprogram permonthbasedon14%,20%,19% and18% of basic employee wage while depositing expenses of pension insurance program per month based on0.5%,0.7%,1%and0.8%ofbasicemployeewage.Exceptfromaboveexpensesdepositedmonthly,theCompanywon’tundertakefurther payment obligation. Corresponding expenses are charged to costs of profit and loss in the current period or related assets when occurring.
23.TaxesandFeesPayable
||
|-|
|BalanceatEndofPeriod|
|5,633,418.89|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|BalanceatEndofPeriod|
|495,841.40|
|26,772,270.05|
|1,447,610.40|
|276,169.59|
|482,771.95|
|174,446.12|
|168,441.14|
|317,916.69|
|11,532.00|
|3,401.61|
|35,783,819.84|

 24.OtherAccountsPayable
||
|-|
|BalanceatEndofPeriod|
|73,118,565.08|
|26,972,826.90|
|11,197,317.01|
|111,288,708.99|

 (1)OtherAccountsPayable
ListofOtherAccountsPayablebyNatureofFunds
||
|-|
|BalanceatEndofPeriod|
|30,376,545.69|
|817,333.26|
|20,356,775.13|
|776,050.31|
|797,312.51|
|91,986.85|
|15,199,146.39|
|2,568,894.01|
|2,134,520.93|
|73,118,565.08|

 (2)InterestPayable
||
|-|
|BalanceatEndofPeriod|
|21,082,795.47|
|5,890,031.43|
|26,972,826.90|

 (3)DividendsPayable
||
|-|
|BalanceatEndofPeriod|
|3,397,317.01|
|7,800,000.00|
|11,197,317.01|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|BalanceatEndofPeriod|
|11,100,915.25|
|11,100,915.25|

 26.Long-termAccountsPayable
||
|-|
|BalanceatEndofPeriod|

 27.Long-termWagePayable
(1)ListofLong-termWagePayable
||
|-|
|BalanceatEndofPeriod|
|275,406.52|
|39,970,000.00|
|40,245,406.52|

 28.DeferredIncome
|||||
|-|-|-|-|
|BalanceatBeginningofYear|Increase in theCurrentPeriod|Decrease in theCurrentPeriod|BalanceatEndofPeriod|
|78,961,972.67||4,008,587.16|74,953,385.51|
|78,961,972.67||4,008,587.16|74,953,385.51|

Amongthem， itemsinvolvinggovernmentsubsidy
||||||||
|-|-|-|-|-|-|-|
|Type|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod||||
||||ChargetoNon-operatingIncome|ChargetootherProfits|OffsetCostExpense|OtherDecreases|
|Financial Allocation|5,386,693.42|||384,763.82|||
|FinancialAllocation|1,800,000.00|||450,000.00|||
|FinancialAllocation|13,022,562.99|||908,691.98|||
|FinancialAllocation|53,761,636.09|||1,277,504.16|||
|FinancialAllocation|2,759,259.17|||222,222.24|||
|FinancialAllocation|1,011,904.76|||77,838.84|||
|FinancialAllocation|232,780.16|||58,195.08|||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||||
|-|-|-|-|
|FinancialAllocation|417,136.08||59,371.04|
|FinancialAllocation|570,000.00|570,000.00||
||78,961,972.67|570,000.00|3,438,587.16|

 29.ShareCapital
|||||||
|-|-|-|-|-|-|
|BalanceatBeginningofYear|ChangesintheCurrentPeriod|||||
||NewShareIssue|ShareDonation|ShareTransferofProvidentFund|Others|Sub-total|
|236,216,509.00||||-22,828,451.00|-22,828,451.00|
|24,127,951.00||||-22,828,451.00|-22,828,451.00|
|24,127,951.00||||-22,828,451.00|-22,828,451.00|
|260,344,460.00||||-45,656,902.00|-45,656,902.00|
|360,470,904.00||||45,656,902.00|45,656,902.00|
|64,975,000.00||||||
|425,445,904.00||||45,656,902.00|45,656,902.00|
|685,790,364.00||||||

 30.CapitalReserves
||||
|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|1,243,771,440.74|||
|112,316,357.36|||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||
|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|236,453,784.63|3,170,222.58||
|1,592,541,582.73|3,170,222.58||

 Note: The changes of the company's capital reserve are as follows: (1) The capital reserve formed by the risk mortgage of senior executives exempted from the current debt of the company amounts to 2,841,542.67 yuan; (2)The company's calculation of other changesintheowner'srightsandinterestsofthegrainstorage(Tianjin)LogisticsLimitedcompanyintheinvestedunitsbelongsto thecompany,amountingto328,679.91yuan.
31.OtherComprehensiveIncomes
|||||||
|-|-|-|-|-|-|
|BalanceatBeginningofYear|AmountsOccurredintheCurrentPeriod|||||
||AmountsOccurredbeforeIncomeTaxintheCurrentPeriod|Less:OtherComprehensiveIncomesChargedatEarlierStageandCurrentRoll-inProfitandLoss|Less:IncomeTaxExpense|AttributabletoParentCompanyAfterTax|AttributabletoMinorityShareholdersAfterTax|
||438.33|||||
||-421,278.00|||||
||421,716.33|||||
||438.33|||||

 32.SurplusReserves
||||
|-|-|-|
|BalanceatBeginningofYear|IncreaseintheCurrentPeriod|DecreaseintheCurrentPeriod|
|84,487,609.05|||
|37,634,827.93|||
|122,122,436.98|||

33.UndistributedProfit
Items AmountsintheCurrentPeriod AmountsinthePriorPeriod
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|AmountsintheCurrentPeriod|
|-299,111,700.34|
|-299,111,700.34|
|167,956,581.15|
|-131,155,119.19|

 34.MinorityInterest
||
|-|
|BalanceatEndofPeriod|
|241,504,003.06|
|233,004,494.15|
|8,860,128.93|
|6,236,324.41|
|36,378,427.45|
|24,343,101.44|
|8,874,594.32|
|1,479,099.05|
|5,916,396.21|
|566,596,569.02|

 35.OperationRevenueandOperationCost
||||
|-|-|-|
|AmountsintheCurrentPeriod|||
|Revenue|Cost|Revenue|
|7,362,877,190.25|6,732,130,680.87|7,867,860,792.55|
|46,247,113.16|13,184,527.25|49,778,251.58|
|7,409,124,303.41|6,745,315,208.12|7,917,639,044.13|

 Note: operation revenue and operation cost of the Company are based on information of industry and regional analysis, seeing AppendixFifteen2.
(1)PrimeBusiness(IndustryandBusiness-classified)
NameofIndustry(orBusiness) AmountsintheCurrentPeriod AmountsinthePriorPeriod
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||
|-|-|-|
|Revenue|Cost|Revenue|
|6,261,524,286.20|5,948,914,989.47|6,533,461,558.85|
|890,987,143.21|612,079,134.38|829,093,442.40|
|40,032,627.87|45,729,804.67|11,932,194.08|
|162,393,266.25|124,332,375.00|35,563,203.00|
|7,939,866.72|1,074,377.35|6,487,277.74|
|||267,712,458.14|
|||176,661,210.91|
|||6,949,447.43|
|7,362,877,190.25|6,732,130,680.87|7,867,860,792.55|

 (2)PrimeBusiness(Product-classified)
||||
|-|-|-|
|AmountsintheCurrentPeriod|||
|Revenue|Cost|Revenue|
|6,471,890,047.04|6,120,051,546.49|6,587,444,233.67|
|890,987,143.21|612,079,134.38|829,093,442.40|
|||451,323,116.48|
|7,362,877,190.25|6,732,130,680.87|7,867,860,792.55|

 (3)PrimeBusiness(Region-classified)
||||
|-|-|-|
|AmountsintheCurrentPeriod|||
|Revenue|Cost|Revenue|
|2,225,706,282.90|1,925,744,737.19|2,284,362,571.64|
|4,123,641,322.51|4,154,852,781.92|4,303,392,217.59|
|640,002,204.15|429,029,230.87|601,713,674.15|
|49,311,118.34|41,662,829.01|51,895,234.78|
|124,495,099.54|93,556,390.71|114,647,176.24|
|199,721,162.81|87,284,711.17|60,526,801.67|
|||174,290,871.50|
|||6,949,447.43|
|||268,027,180.78|
|||2,055,616.77|
|7,362,877,190.25|6,732,130,680.87|7,867,860,792.55|

 36.TariffAndAnnex
||
|-|
|AmountsintheCurrentPeriod|
|5,842,393.58|
|2,582,618.40|
|1,721,744.55|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|AmountsintheCurrentPeriod|
|197,624.76|
|7,701,037.94|
|1,617,228.36|
|50,229.02|
|3,873,868.49|
|120,234.70|
|206,043.68|
|23,913,023.48|

 Note:calculationandpaymentstandardofvarioustaxesandsurchargesseesdetailsofAppendixFiveTax.
37.SalesExpenses
||
|-|
|AmountsintheCurrentPeriod|
|61,214,787.72|
|3,789,513.48|
|1,173,945.20|
|935,608.04|
|22,687,770.57|
|1,260,068.80|
|1,980,862.22|
|1,346,716.81|
|13,148,592.18|
|335,007.92|
|94,070.40|
|32,313,861.58|
|529,236.42|
|183,948.99|
|1,942,588.74|
|8,034,152.45|
|256,459.94|
|16,234,000.42|
|7,760,499.91|
|14,979,675.83|
|2,998,804.40|
|540,960.11|
|193,741,132.13|

38.AdministrationExpenses
Items AmountsintheCurrentPeriod AmountsinthePriorPeriod
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|AmountsintheCurrentPeriod|
|112,048,014.99|
|760,974.77|
|4,951,764.79|
|694,285.64|
|3,974,066.28|
|16,928,883.60|
|3,408,236.67|
|474,740.91|
|16,673,765.43|
|750,510.31|
|12,852,608.04|
|2,243,950.07|
|642,947.95|
|784,709.59|
|864,173.31|
|1,440,724.47|
|1,613,099.59|
|1,364,003.13|
|1,837,034.04|
|4,331,135.37|
|151,569.02|
|1,371,119.43|
|190,162,317.40|

 39.ResearchandDevelopmentExpenses
||
|-|
|AmountsintheCurrentPeriod|
|2,742,564.22|
|2,742,564.22|

 40.FinancialExpenses
||
|-|
|AmountsintheCurrentPeriod|
|78,514,993.77|
|11,149,346.83|
|-19,437,870.30|
|560,042.66|
|48,487,819.30|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|AmountsintheCurrentPeriod|
|-3,091,602.13|
|4,470,348.34|
|1,378,746.21|

 42.OtherProfits
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
|16,475,771.21|15,139,922.81|
|72,743.16||
|16,548,514.37|15,139,922.81|

 Including:detailsofgovernmentsubsidyareasfollows:
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
|384,763.82|384,763.82|
|450,000.00|450,000.00|
|908,691.98|908,691.99|
|1,277,504.16|1,277,504.16|
|222,222.24|222,222.24|
|77,838.84|77,838.84|
|58,195.08|58,195.08|
|59,371.04|56,000.04|
||120,000.00|
||483,600.00|
||450,000.00|
|30,000.00|30,000.00|
||570,000.00|
|63,803.00|256,000.00|
||181,600.00|
|66,000.00|29,946.64|
|11,440,800.00|9,583,560.00|
|353,981.05||
|621,600.00||
|90,000.00||
|1,000.00||
|20,000.00||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
|350,000.00||
|16,475,771.21|15,139,922.81|

43.InvestmentIncome
||
|-|
|AmountsintheCurrentPeriod|
|8,330,122.46|
|-592,610.00|
|7,396,982.64|
|15,846,716.82|
|30,981,211.92|

 44.ProfitsonChangesinFairValue
||
|-|
|AmountsintheCurrentPeriod|
|2,009,952.25|
|2,009,952.25|
|2,009,952.25|

 45.AssetsDisposalIncome
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
|-367,796.13|-6,770.67|
|-367,796.13|-6,770.67|
|-367,796.13|-6,770.67|

 46.Non-operatingIncome
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
||69,818.00|
|38,528.20|8.26|
||35,800.00|
|4,382,340.61|230,078.50|
||67,445.03|
|12,233,443.22|22,523,945.85|
|16,679,043.74||
|2,572,582.46|2,791,149.54|
|35,905,938.23|25,718,245.18|

 Including:detailsofgovernmentsubsidyareasfollows:
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
||26,020.00|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
||18,000.00|
||25,798.00|
||69,818.00|

47.Non-operatingExpenses
|||
|-|-|
|AmountsintheCurrentPeriod|AmountsinthePriorPeriod|
|20,000.00|38,500.00|
|1,441,925.72|278,048.34|
|1,187.98|29,126.42|
|5,471,466.18|928,136.64|
|3,198,119.25|15,749,062.93|
|1,018,783.92|2,017,718.48|
|11,151,483.05|19,040,592.81|

 48.IncomeTaxExpenses
(1)ListofIncomeTaxExpenses
||
|-|
|AmountsinthePriorPeriod|
|71,816,277.87|
|-5,632,570.27|

 (2)AccountingProfitandIncomeTaxExpenseAdjustmentProcess
Items AmountsinthePriorPeriod TotalProfits 277,309,830.14 Incometaxexpensescalculatedbystatutory/applicabletaxrate 68,888,490.76 Effectofsubsidiarycorporationsbeingapplicabletodifferenttaxrates -438,966.78 Adjustmentoneffectofincometaxinthepriorperiod 740,785.99 EffectofNon-taxableIncomes -23,965,306.96 EffectofNon-deductiblecost,expenseandloss 18,910,673.63 Effectofdeductiblelossonusageofunconfirmeddeferredincometaxassetsinthepriorperiod -3,053,323.81 Effectofdeductibletemporarydifferenceordeductiblelossonunconfirmeddeferredincometaxinthe
5,101,354.77 currentperiod
Others
IncomeTaxExpenses 66,183,707.60 49.OtherComprehensiveIncomes
SeedetailsofAppendixSix,31.
50.Itemrelatedtocashflowsstatement
(1)Receivingothercashrelatedtooperationactivities
||
|-|
|AmountsintheCurrentPeriod|
|12,321,015.31|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|AmountsintheCurrentPeriod|
|427,638,129.62|
|3,162,922.28|
|12,714,538.74|
|857,189,447.41|
|7,844,959.19|
|1,320,871,012.55|

 (2)OtherCashPaymentRelatedtoOperationActivities
||
|-|
|AmountsintheCurrentPeriod|
|8,419,687.72|
|150,418,240.65|
|42,455,842.36|
|48,583,417.88|
|539,765.49|
|1,559,803.65|
|590,054.94|
|787,350,321.68|
|14,426,119.22|
|1,054,343,253.59|

 (3)Receivingothercashrelatedtoinvestmentactivities
||
|-|
|AmountsintheCurrentPeriod|

 (4)OtherCashPaymentRelatedtoFinancingActivities
||
|-|
|AmountsintheCurrentPeriod|

 51.SupplementaryMaterialsofCashFlowsStatement
(1)SupplementaryMaterialsofCashFlowsStatement
||
|-|
|AmountsintheCurrentPeriod|
|211,126,122.54|
|1,378,746.21|
|95,040,294.95|
|18,678,695.83|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|AmountsintheCurrentPeriod|
|4,159,473.31|
|367,796.13|
|1,416,491.75|
|-2,009,952.25|
|59,077,123.47|
|-30,981,211.92|
|-1,151,908.07|
|-6,566,836.68|
|167,659,592.74|
|217,514,117.22|
|114,459,006.01|
|850,167,551.24|
|867,870,016.78|
|1,014,438,663.43|
|-146,568,646.65|

 (2)Netcashfromsubsidiarycorporationpaidinthecurrentperiod
Items Amounts Mergeofenterprisesoccurredinthecurrentperiodandcashorcashequivalentspaidinthecurrentperiod 39,000,000.00 Including:BeijingGrainGardenComplexConstructionandOperation(Xinyi)Co.,Ltd. 13,500,000.00 BeijingGrain(Caofeidian)AgriculturalDevelopmentCo.,Ltd. 25,500,000.00 Receivingnetcashpaidbysubsidiarycorporation 39,000,000.00 (3)Compositionofcashandcashequivalents
||
|-|
|BalanceatEndofPeriod|
|867,870,016.78|
|46,418.17|
|737,705,225.28|
|130,118,373.33|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|BalanceatEndofPeriod|
|867,870,016.78|

52.Assetswithrestrictedownershiporrighttouse
||
|-|
|BookValueatEndofPeriod|
|57,000,000.00|
|4,824,035.45|
|5,778,794.33|
|3,983,893.20|
|71,586,722.98|

53.MonetaryItemsofForeignCurrency
(1)MonetaryItemsofForeignCurrency
|||
|-|-|
|BalanceofForeignCurrencyatEndofPeriod|ExchangeRateConvert|
|1,098,485.64|6.8632|
|1,098,485.64|6.8632|
|4,227,995.82|6.8632|
|4,227,995.82|6.8632|
|5,163,539.2|6.8632|
|5,163,539.2|6.8632|

 (2)InstructionofOperationalEntityOverseas
TheregistrantandoperatingunitoftheCompanyisBeijingGrain(Singapore)InternationalTradeCo.,Ltd.withmainbusiness placeofSingaporeandrecordingcurrencyofUSDollars.
54.Hedging
Pleasereferto2DerivativeFinancialAssetsunderSectionVIoftheNotes.
55. GovernmentSubsidies
1.Basicinformationofgovernmentsubsidiesinitiallyrecognizedforthecurrentperiod
||||||||
|-|-|-|-|-|-|-|
|Amount|RelatingtoAssets||RelatingtoIncome||||
||DeferredIncome|WriteDowntheBookValueofAssets|DeferredIncome|OtherIncome|Non-operatingIncome|WriteDowntheCostExpenses|
|11,440,800.00||||11,440,800.00|||
|621,600.00||||621,600.00|||
|353,981.05||||353,981.05|||
|350,000.00||||350,000.00|||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|90,000.00|90,000.00|
|66,000.00|66,000.00|
|63,803.00|63,803.00|
|30,000.00|30,000.00|
|20,000.00|20,000.00|
|1,000.00|1,000.00|
|13,037,184.05|13,037,184.05|

 Note:TheVATrefundsincludedinthecurrentotherincomeofLin'anXiaotianshiFoodCo.,Ltd.,alevel4subsidiaryofthe Company,are11,440,800.00yuan.Amongthem,theVATrefundsthathavenotbeenactuallyreceivedamountto993,600.00yuan, whichhavebeenrecordedinotherreceivables.
2.Governmentsubsidiesincludedinthecurrentprofitsandlosses
||||
|-|-|-|
|Category|IncludedintheOtherIncome|IncludedintheNon-OperatingIncome|
|GovernmentSubsidies|384,763.82||
|GovernmentSubsidies|450,000.00||
|GovernmentSubsidies|908,691.98||
|GovernmentSubsidies|1,277,504.16||
|GovernmentSubsidies|222,222.24||
|GovernmentSubsidies|77,838.84||
|GovernmentSubsidies|58,195.08||
|GovernmentSubsidies|59,371.04||
|GovernmentSubsidies|30,000.00||
|GovernmentSubsidies|63,803.00||
|GovernmentSubsidies|66,000.00||
|GovernmentSubsidies|11,440,800.00||
|GovernmentSubsidies|353,981.05||
|GovernmentSubsidies|621,600.00||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||
|-|-|-|
|Category|IncludedintheOtherIncome|IncludedintheNon-OperatingIncome|
|GovernmentSubsidies|90,000.00||
|GovernmentSubsidies|1,000.00||
|GovernmentSubsidies|20,000.00||
|GovernmentSubsidies|350,000.00||
|——|16,475,771.21||

VII.ChangeinConsolidationScope
1.ChangeinConsolidationScopeforOtherReasons
(1) In January 2018, the Company invested 13.5 million yuan in currency to establish Jingliang Rural Complex Construction and Operations(Xinyi) Co., Ltd.The paid-inamount of contribution accounted for45% of thepaid-in capital oftheinvested unit, thusmakingitbecomethefirstmajorityshareholder.
(2) In November 2017, the Company invested to establish Jingliang (Caofeidian) Agricultural Development Co., Ltd. andinvested25.5millionyuanincurrencyinMay2018.Thepaid-inamountofcontributionaccountedfor51%ofthepaid-incapitalof theinvestedunit,makingitbecomethefirstmajorityshareholder.
VIII.EquitiesinOtherEntities
1.EquitiesinSubsidiaries
(1)CompositionoftheGroup
||||||
|-|-|-|-|-|
|PrinciplePlaceofBusiness|RegisteredPlace|NatureofBusiness|ShareholdingRatio(%)||
||||Direct|Indirect|
|Beijing|Beijing|InvestmentCompany|100||
|Tianjin|Tianjin|AgriculturalProductandByProductProcessing||70|
|Beijing|Beijing|Grainandoiltrade||100|
|Tianjin|Tianjin|Businessservices||51|
|Hebei|Hebei|FarmandSidelineFoodProcessing||51|
|Beijing|Beijing|Grainandoiltrade||100|
|Beijing|Beijing|FarmandSidelineFoodProcessing||100|
|Beijing|Beijing|Warehousing||100|
|Beijing|Beijing|FoodProcessing||100|
|Tianjin|Tianjin|FoodProcessing||51|
|Tianjin|Tianjin|FoodSales||100|
|Beijing|Beijing|FoodSales||100|
|Hangzhou|Hangzhou|FoodProcessing||69.7716|
|Hangzhou|Hangzhou|FoodProcessing||69.7716|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||||
|-|-|-|-|-|
|Liaoning|Liaoning|FoodProcessing||69.7716|
|Linqing|Linqing|FoodProcessing||69.7716|
|Hangzhou|Hangzhou|FoodProcessing||69.7716|
|Singapore|Singapore|Graintrade||100|
|Xinyi|Xinyi|Landremediation|45||
|Tangshan|Tangshan|Plantation|51||

 (2)Majornon-wholly-ownedsubsidiaries
||||
|-|-|-|
|ShareholdingRatioofMinorityShareholders(%)|ProfitAndLossAttributabletoMinorityShareholdersfortheCurrentPeriod|DividendsDistributedtoMinorityShareholdersfortheCurrentPeriod|
|30|6,869,054.50|7,800,000.00|
|30.2284|33,098,847.63|7,848,202.91|
|49|-826,892.67||
|49|677,274.86||
|49|3,738,066.05|1,004,500.00|
|55|-229,910.42||
|49|-156,898.56||

(3)Importantfinancialinformationonmajornon-wholly-ownedsubsidiaries
EndingBalance
||||||
|-|-|-|-|-|
|CurrentAssets|Non-currentAssets|TotalAssets|CurrentLiabilities|Non-currentLiabilities|
|643,318,329.95|864,787,149.34|1,508,105,479.29|648,070,966.90|55,021,168.86|
|434,538,712.02|384,616,054.08|819,154,766.10|139,320,269.31|58,435,800.61|
|13,594,754.60|5,617,783.27|19,212,537.87|1,130,642.10||
|13,018,932.12|6,647.74|13,025,579.86|293,084.18||
|389,424,891.03|91,971,278.94|481,396,169.97|407,110,951.30|43,530.00|
|29,196,334.50|386,000.53|29,582,335.05|354.00||
|51,880,588.02|321,598.36|52,202,186.38|2,522,387.52||

(Continued)
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Beginningbalance
||||||
|-|-|-|-|-|
|CurrentAssets|Non-CurrentAssets|TotalAssets|CurrentLiabilities|Non-currentLiabilities|
|1,299,787,374.38|896,524,016.17|2,196,311,390.55|1,327,490,398.97|60,704,496.39|
|309,304,989.70|373,675,587.60|682,980,577.30|106,103,249.25|46,466,856.41|
|16,058,445.83|4,270,567.41|20,329,013.24|559,581.40||
|81,900,543.34|750,679.10|82,651,222.44|71,301,496.27||
|282,694,214.41|95,147,791.73|377,842,006.14|307,807,398.50|1,371,625.20|

(Continued)
LastTermAmount
||||
|-|-|-|
|OperatingIncome|NetProfit|TotalComprehensiveIncome|
|3,919,504,928.54|22,896,848.34|22,896,848.34|
|816,635,284.45|116,951,262.54|116,951,262.54|
|2,832,037.42|-1,687,536.07|-1,687,536.07|
|358,518,101.34|1,382,769.51|1,382,769.51|
|333,656,272.19|7,628,706.23|7,628,706.23|
||-418,018.95|-418,018.95|
||-320,201.14|-320,201.14|

(Continued)
AmountThisYear
||||
|-|-|-|
|Operatingincome|Netprofit|Totalcomprehensiveincome|
|3,688,456,961.35|46,716,146.85|46,716,146.85|
|771,331,947.29|103,851,312.21|103,851,312.21|
|6,576,016.95|-230,568.16|-230,568.16|
|787,720,715.22|1,549,726.17|1,549,726.17|
|64,100,717.77|3,662,982.44|3,662,982.44|

 2.Theshareofowner'sequityinthesubsidiaryhaschangedanditstillcontrolsthetransactionsofthesubsidiary. None.
3.EquityinJointVenturesorAffiliates
(1)ImportantJointVenturesorAffiliates
|||||
|-|-|-|-|
|Principle|RegisteredPlace|Natureof|ShareholdingRatio(%)|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||||
|-|-|-|-|-|
|PrinciplePlaceofBusiness|RegisteredPlace|NatureofBusiness|ShareholdingRatio(%)||
||||Direct|Indirect|
|NiulanMountain,ShunyiDistrict,Beijing|Niulan Mountain, ShunyiDistrict,Beijing|Manufacturer|50.00||
|No. 1,LingangEconomicZone, BinhaiNew Area ofTianjin|No.1,LingangEconomicZone, Binhai New AreaofTianjin|Transportation andwarehousing|30.00||

(2)Importantfinancialinformationonmajorjointventures
||
|-|
|BeijingZhengdaFeedCo.,Ltd.|
|EndingBalance/CurrentAmount|
|53,128,106.97|
|4,164,426.47|
|166,435,292.09|
|219,563,399.06|
|95,250,888.23|
|95,250,888.23|
|124,312,510.83|
|62,156,255.42|
|65,339,624.28|
|412,682,400.89|
|-2,079,697.84|
|5,510,663.98|
|16,057,882.06|
|-489,060.00|
|15,568,822.06|

(3)Importantfinancialinformationonmajoraffiliates
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|EndingBalance/CurrentAmount|
|SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd.|
|120,310,983.11|
|349,183,791.13|
|469,494,774.24|
|19,419,434.80|
|58,450,000.00|
|77,869,434.80|
|391,625,339.44|
|117,487,601.83|
|117,487,601.83|
|20,533,721.00|
|5,017,654.54|
|5,017,654.54|

IX.RisksRelatedtoFinancialInstruments
TheCompany'sprincipalfinancialinstrumentsincludeequityinvestment,creditors'investment,borrowing,accountsreceivable, accountspayable,etc.SeerelevantitemsunderSectionVIoftheNotesfordetailsaboutfinancialinstruments.Therisksassociated withthesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytoreducesuchrisksaredescribedbelow. TheCompany'smanagementmanagesandmonitorstheseriskexposurestoensurethatsuchrisksarecontrolledwithintherestricted range.
TheCompanyadoptsthesensitivityanalysistechnologytoanalyzethepossibleinfluencesofreasonableandpossiblechanges of risk variables on current profits and losses or shareholders' equity. Since a risk variable seldom changes by itself and the correlationbetween variables will have asignificant impact onthefinal amountof changecaused byariskvariable, thefollowing contentisbaseontheassumptionthateachvariablechangesindependently.
(1)RiskManagementObjectivesandPolicies
The Company'sengagement inrisk managementisaimed at strikingaproper balancebetween riskandprofit, minimizing the negative impact of risk on the Company's operating performance and maximizing the interests of shareholders and other equity investors.Inviewoftheaboveobjectivesofriskmanagement,theCompany'sbasicstrategyforriskmanagementistoidentifyand analyzeallrisksfacedbytheCompany,establishtheappropriatebottomlineforrisktoleranceandconductriskmanagement,carry outtimelyandreliablesupervisionofrisksandthuscontroltheriskswithinalimitedrange.
1.MarketRisks
(1)ForeignExchangeRisk
Foreign exchange risk refers to therisk ofloss caused byexchange ratemovements. The Company's foreign exchange risk is
mainlyrelatedtoUSdollar.ApartfromtheCompany'sseveralsubsidiariesthatsettletheirpurchasingandsellingbusinessesinUS
dollar,theCompany's other main businessactivities are settled in RMB.As of December 31, 2018, theassets and liabilitiesof the
Company aresettled inRMB,except that theassets orliabilitiesmentioned inthefollowing tableare settledinUS dollar.Foreign
exchangerisksarisingfromassetsandliabilitiessettledinsuchforeigncurrenciesmayhaveanimpactontheCompany'soperating
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 performance.
||
|-|
|EndingBalance|
|7,539,126.64|
|35,438,402.24|
|29,017,580.91|

 Note:TheCompanypayscloseattentiontotheimpactofexchangeratemovementsontheGroup.
(2)Sensitivityanalysisonforeignexchangerisk:
TheCompanyadoptsthesensitivityanalysistechnologytoanalyzethepossibleinfluencesofreasonableandpossiblechanges of risk variables on current profits and losses or owner's equity. Since a risk variable seldom changes by itself and the correlation between variables will have a significant impact on the final amount of change caused by a risk variable, the following content is baseontheassumptionthateachvariablechangesindependently.
Ontheassumptionthatforeigncurrencyassetsandliabilitiesremainrelativelystableandothervariablesremainunchanged,the possiblereasonablechangesinexchangerateshavethefollowingafter-taxinfluencesoncurrentprofitsandlossesandequities:
|||
|-|-|
|ChangeinExchangeRate||
||InfluenceonProfits|
|Appreciateby5%againstRMB|-2,845,842.82|
|Depreciateby5%againstRMB|2,845,842.82|

 2.CreditRisk
On December 31, 2018, thelargest credit risk exposurethat may cause financial lossto theCompany mainly comes from the lossonfinancialassetsoftheCompanyduetothefailureoftheotherpartytoperformitsobligations,including:
Bookvalueoffinancialassetsrecognizedintheconsolidatedbalancesheet;forafinancialinstrumentmeasuredatfairvalue,its bookvaluereflectsitsriskexposureinsteadoftheirbiggestriskexposure,anditsbiggestriskexposuremayvarywiththechangeof itsfuturefairvalue.
In order toreducethecredit risk, theCompany sets relevant policiestocontrol itsexposure, setscorrespondingcredit periodsbasedoncustomer’sfinancialposition,possibilityofobtainingguaranteesfromthirdparties,creditrecordsandotherfactorssuchas current market conditions and other credit qualifications for customer assessment, and implements other monitoring procedures to ensurethat necessary measures are taken to recover overduecredits. In addition, theCompany reviews thecollectionof individual account receivables on each balance sheet date in order to make sufficient provision for bad debts for uncollectable amounts. Therefore,theCompany'smanagementbelievesthattheCompany'screditriskhasbeengreatlyreduced.
TheliquidityfundsoftheCompanyaredepositedinbankswithhighcreditrating,sothecreditriskofliquidityfundsislow. 3.LiquidityRisk
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 managementmonitorstheuseofbankloansandensurestheperformanceofloanagreements.
TheCompanyusesbankloansasitsmainsourceoffunds.OnDecember31,2018,theamountofbankloansthathavenotbeen usedbytheCompanywasRMB2.88billion.
As of December 31, 2018, the undiscounted cash flow of Company's financial assets and liabilities under contracts is shown belowbyduedate:
EndingBalance
||||||
|-|-|-|-|-|
|NetBookValue|OriginalBookValue|WithinOneYear|1To2Years|2To5Years|
|924,870,016.78|924,870,016.78|924,870,016.78|||
|97,775,710.11|98,642,588.11|98,642,588.11|||
|18,256,513.93|18,573,440.15|18,573,440.15|||
|20,000,000.00|30,500,000.00|30,500,000.00|||
|1,060,902,240.82|1,072,586,045.04|1,072,586,045.04|||
|1,437,715,080.91|1,437,715,080.91|1,437,715,080.91|||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||
|-|-|-|
|140,564,713.11|140,564,713.11|140,564,713.11|
|111,288,708.99|111,288,708.99|111,288,708.99|
|1,689,568,503.01|1,689,568,503.01|1,689,568,503.01|

(Continued)
Beginningbalance
||||||
|-|-|-|-|-|
|NetBookValue|OriginalBookValue|WithinOneYear|1to2Years|2to5Years|
|1,014,438,663.43|1,014,438,663.43|1,014,438,663.43|||
|75,165,127.11|76,068,110.58|76,068,110.58|||
|75,722,139.87|79,017,252.75|79,017,252.75|||
|51,000,000.00|51,000,000.00|51,000,000.00|||
|20,000,000.00|30,500,000.00|30,500,000.00|||
|1,236,325,930.41|1,251,024,026.76|1,251,024,026.76|||
|2,007,171,362.73|2,007,171,362.73|2,007,171,362.73|||
|400,693,157.47|400,693,157.47|400,693,157.47|||
|541,399,822.67|541,399,822.67|541,399,822.67|||
|2,949,264,342.87|2,949,264,342.87|2,949,264,342.87|||

4.InterestRateRisk
The Company's interest rate risk mainly arises from bank loans. The financial liabilities at floating interest rates bring the Companytheinterest rateriskoncashflow,whilethefinancial liabilitiesatfixedinterestratesbringtheCompanytheinterestrate risk on fair value. The Company decides the relative proportion of fixed interest rate contracts and floating interest rate contracts accordingtothecurrentmarketenvironment.
As of December 31, 2018, the Company's interest-bearing liabilities under floating rate contracts denominated in RMB amountedtoRMB78.5million,andthoseunderfixedratecontractsdenominatedinRMBamountedtoRMB1,359,215,080.91. X.DisclosureofFairValues
1.Fairvaluesofassetsandliabilitiesmeasuredatfairvalueattheendoftheperiod
FairValuesattheEndofthePeriod
||||
|-|-|-|
|FirstLevelFairValueMeasurement|SecondLevelFairValueMeasurement|ThirdLevelFairValueMeasurement|
|71,260,414.60|||
|71,260,414.60|||
|71,260,414.60|||
|71,260,414.60|||

2.Basisfordeterminingmarketpricesofcontinuousandnon-continuousfirstlevelfairvaluemeasurementitems
Note:TheCompanymakesoffersforfirstlevelfairvaluemeasurementaccordingtoopencontractsofthefuturesexchange.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 XII.RelatedPartiesandRelated-PartyTransactions
1.ParentCompanyoftheCompany
|||||
|-|-|-|-|
|RegisteredPlace|NatureofBusiness|RegisteredCapital(tenthousandYuan)|ProportionofSharesHeldbyParentCompanyintheCompany(%)|
|Beijing|InvestmentManagement|90,000.00|42.06|

Note:TheultimatecontrollingpartyoftheCompanyisBeijingCapitalAgribusinessGroupCo.,Ltd.
2.SubsidiariesoftheCompany
See1.EquityinSubsidiariesunderSectionVIIIoftheNotesfordetails.
3.JointVenturesandAffiliatesoftheCompany
See3.EquityinJointVenturesorAffiliatesunderSectionVIIIoftheNotesfordetailsonmajorjointventuresoraffiliates. TheinformationonotherjointventuresoraffiliatesthathaverelatedpartytransactionswiththeCompanyinthecurrentperiod orhavebalancesofrelatedpartytransactionswiththeCompanyinthepreviousperiodisasfollows:
NameofJointVentureorAffiliate RelationshipwiththeCompany
BeijingZhengdaFeedCo.,Ltd. Jointventure SINOGRAIN(Tianjin)WarehousingLogisticsCo.,Ltd. Affiliate 4.OtherRelatedParties
NameofOtherRelatedParty RelationshipwiththeCompany
BeijingDahongmenGrainPurchasing&StorageWarehouse ControlledbytheultimatecontrollingpartyBeijingDaxingNationalGrainPurchasing&StorageWarehouse Controlledbytheultimatecontrollingparty BeijingSoutheastSuburbGrainWarehouse Controlledbytheultimatecontrollingparty BeijingGuchuanFuxingFoodCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingGuchuanRiceIndustryCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingGuchuanFoodCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingHongyuanliRationsSupplyStation Controlledbytheultimatecontrollingparty BeijingJingliangDacangGrainandOilTradeCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangDaguGrainandOilTradeCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangE-commerceCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangDongfangGrainandOilTradeCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangGurunTradeCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangBiotechnologyIndustryCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangLogisticsCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangYunheGrainandOilTradeCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingliangRealEstateCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJingmenLiangshiState-ownedAssetManagementCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingJunchengNuoyuanGrainandOilPurchaseandSaleCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingLanfengVegetableDistributionCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingGrainGroupFinanceCo.,Ltd. Controlledbytheultimatecontrollingparty
BeijingLongdeBusinessManagementCo.,Ltd. Controlledbytheultimatecontrollingparty
BeijingNanjiaoAgriculturalProductionManagementCo.,Ltd. Controlledbytheultimatecontrollingparty
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 NameofOtherRelatedParty RelationshipwiththeCompany
BeijingNiannianHaoheRationsSupplyStation Controlledbytheultimatecontrollingparty BeijingSanyuanPetroleumCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingSanyuanSeedTechnologyCo.,Ltd.FeedBranch ControlledbytheultimatecontrollingpartyBeijingDahongmenGrainPurchasing&StorageWarehouseCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingDahongmenOilPlant Controlledbytheultimatecontrollingparty BeijingHaidianWestSuburbGrainandOilSupplyStation Controlledbytheultimatecontrollingparty BeijingJingchengAutoDrivingTechnicalSchool Controlledbytheultimatecontrollingparty BeijingLiangguanGrainandOilSupplyStation Controlledbytheultimatecontrollingparty BeijingInstituteofFoodScience Controlledbytheultimatecontrollingparty BeijingLongqingXiaduRationsSupplyStation Controlledbytheultimatecontrollingparty BeijingMaliandaoGrainandOilSpecialSupplyStation ControlledbytheultimatecontrollingpartyBeijingSouthSuburbGrainPurchasing&StorageWarehouse Controlledbytheultimatecontrollingparty BeijingNanyuanVegetableOilPlant Controlledbytheultimatecontrollingparty BeijingPingguGrainandOilIndustryandTradeCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingFoodSupplyDepartmentNo.34SupplySection Controlledbytheultimatecontrollingparty BeijingShunyiGrainandOilCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingTianguGrainandOilTradeCo.,Ltd. Controlledbytheultimatecontrollingparty SupplyStationofBeijingTongzhouGrainandOilTradingCompany Controlledbytheultimatecontrollingparty BeijingNouthwestSuburbGrainWarehouse ControlledbytheultimatecontrollingpartyBeijingNorthwestSuburbGrainPurchasing&StorageWarehouse Controlledbytheultimatecontrollingparty BeijingSesameOilPlant Controlledbytheultimatecontrollingparty BeijingYongheXinchengGrainandOilSupplyCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingAssistantRationsSupplyStation Controlledbytheultimatecontrollingparty BeijingArmyGrainandOilSupplyStation Controlledbytheultimatecontrollingparty BeijingShounongAnimalHusbandryDevelopmentCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingWuhuanShuntongSupplyChainManagementCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingXingshishangTradeCenter Controlledbytheultimatecontrollingparty BeijingYumaMotorVehicleTrainingGroundCo.,Ltd. Controlledbytheultimatecontrollingparty BeijingYuanjishunRationsSupplyStation Controlledbytheultimatecontrollingparty BeijingZhibohuiArchitecturalDesignInstituteCo.,Ltd. Controlledbytheultimatecontrollingparty HebeiShounongModernAgriculturalTechnologyCo.,Ltd. Controlledbytheultimatecontrollingparty Jingliang(Tianjin)E-commerceCo.,Ltd. Controlledbytheultimatecontrollingparty Jingliang(Tianjin)TradeDevelopmentCo.,Ltd. Controlledbytheultimatecontrollingparty JingliangHuayuan(Beijing)AgriculturalHigh-techCo.,Ltd. Controlledbytheultimatecontrollingparty ShandongFukuanBioengineeringCo.,Ltd. Controlledbytheultimatecontrollingparty ChinaIntegratedResearchCenterforMeatProducts Controlledbytheultimatecontrollingparty
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 5.Related-partyTransactions
(1)Related-partytransactionsforpurchaseandsaleofgoodsandprovisionandacceptanceoflaborservices
① Purchaseofgoodsandacceptanceoflaborservices
|||
|-|-|
|Related-partyTransaction|CurrentAmount|
|Purchaseofgoods|17,173,511.19|
|Purchaseofgoods|2,537,794.80|
|Purchaseofgoods|2,615,077.63|
|Purchaseofgoods|1,287,901.32|
|Purchaseofgoods|221,825.63|
|Purchaseofgoods|32,075.47|

Note:Thepriceofarelated-partytransactionshallbeequaltothepricecharged foraunrelated-partytransactionthatissame asor similartosuchrelated-partytransaction.
② Saleofgoods/provisionoflaborservices
|||
|-|-|
|Related-partyTransaction|CurrentAmount|
|Saleofgoods|20,288.29|
|Saleofgoods|6,486.48|
|Saleofgoods||
|Saleofgoods||
|Saleofgoods|6,365,528.55|
|Saleofgoods|2,568,946.46|
|Saleofgoods|112,739.62|
|Saleofgoods|617,148.71|
|Saleofgoods||
|Saleofgoods||
|Saleofgoods|6,553,286.58|
|Provisionoflaborservices||
|Saleofgoods|1,351.35|
|Saleofgoods|11,131,081.79|
|Saleofgoods|5,968,090.31|
|Saleofgoods|4,051,022.07|
|Saleofgoods|589,538.05|
|Saleofgoods|3,181,286.36|
|Saleofgoods|39,835.13|
|Saleofgoods||
|Saleofgoods|12,793.80|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|Saleofgoods||
|Saleofgoods|2,068.97|
|Saleofgoods||
|Saleofgoods|7,884.24|
|Saleofgoods|6,837.84|
|Saleofgoods|66,666.67|
|Saleofgoods||
|Saleofgoods|254,714.16|
|Saleofgoods|19,819.20|
|Saleofgoods||
|Saleofgoods|900,599.52|
|Saleofgoods|347.27|
|Saleofgoods|88,822.07|
|Saleofgoods|2,276.18|
|Saleofgoods|2,863.64|
|Saleofgoods|2,066,703.52|
|Saleofgoods|48,458.32|
|Saleofgoods|6,954.55|
|Saleofgoods|1,980.35|
|Saleofgoods|6,115,726.92|
|Saleofgoods|5,189.66|
|Saleofgoods||
|Saleofgoods|951,982.83|
|Saleofgoods|35,808.62|
|Saleofgoods|791,985.23|
|Saleofgoods|12,883.33|
|Saleofgoods|909.09|
|Saleofgoods|102,800.01|
|Saleofgoods|4,077.59|
|Saleofgoods|3,531.53|
|Saleofgoods|7,127,624.97|
|Saleofgoods|6,605.64|

Note:Thepriceofarelated-partytransactionshallbeequaltothepricecharged foraunrelated-partytransactionthatissame asor
similartosuchrelated-partytransaction.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 (2)Related-partylease
① IftheCompanyisthelessor,
|||
|-|-|
|TypeofLeasedAsset|LeaseIncomeRecognizedintheCurrentPeriod|
|Housing|13,333,333.33|
|Vehicleleasing|18,839.83|

① IftheCompanyisthelessee,
|||
|-|-|
|TypeofLeasedAsset|Leasefeerecognizedinthecurrentperiod|
|Houseleasing|2,141,034.06|
|Vehicles,housing|1,584,230.78|
|Oiltankandofficeleasing|1,918,363.64|
|Rent|320,754.72|
|Houseleasing|36,942.10|

(3)Related-partyguarantee
① IftheCompanyistheguarantor,
||||
|-|-|-|
|AmountGuaranteed|EffectiveDate|DueDate|
|200,000,000.00|June1,2017|Maturitydateoffinancing:September30,2019|
|||Theperiodofguaranteeshallbe2yearsfromthedateofexpirationoftheperiodinwhichtheprincipalcreditor'srightoccurs|
|100,000,000.00|September6,2017|Noguaranteedloan|
|||Theperiodofguaranteeshallbe2yearsfromthedateofexpirationoftheperiodinwhichtheprincipalcreditor'srightoccurs|
|88,000,000.00|December18,2017|Maturitydate:January31,2019|
|||Theperiodofguaranteeshallbe2yearsfromthedateofexpirationoftheperiodinwhichtheprincipalcreditor'srightoccurs|
|1,655,000,000.00|May29,2018|Maturitydateoffinancing:January18,2019,February1,2019,February11,2019,March17,2019,February19,2019andMarch21,2019|
|80,000,000.00|April2,2018|Theloanhasbeenpaidoff;|
|||Theperiodofguaranteeshallbe2yearsfromthedateofexpirationoftheperiodinwhichtheprincipalcreditor'srightoccurs|

(4)Related-partyloansatcall
TheCompanyhasnorelated-partyloansatcallthisyear.
(5)Related-partyassetstransferanddebtrestructuring
|||
|-|-|
|Related-partyTransaction|CurrentAmount|
|Incomefromcompensationfordemolition|2,963,947.53|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|Incomefromcompensationfordemolition|9,090,908.89|

(6)Remunerationforkeymanagementstaff
Unit:tenthousandyuan
||
|-|
|CurrentAmount|
|473.98|

 (7)Otherrelated-partytransaction
|||
|-|-|
|Related-partyTransaction|CurrentAmount|
|Utilities,informationnetworkfees|31,530.33|
|Incomefromtrademarkroyalties|11,722.64|
|Powercharge,telephonebill,etc.|88,985.50|
|Incomefromtrademarkroyalties|3,331,153.31|
|Incomefromtrademarkroyalties|370,863.21|
|Propertyfee||
|Costoftransportation|18,867.92|
|Servicecharge|66,742.77|
|Interestexpense|6,427,421.40|
|Interestexpense|6,337,413.77|
|Corporatepublicityexpenses|16,037.74|

6.Related-partyReceivablesandPayables
(1)Receivables
||||
|-|-|-|
|EndingBalance|||
|BookBalance|ProvisionforBadDebts|BookBalance|
|98,494,825.91|||
|98,494,825.91|||
|370,505.00||256,270.00|
|146,333.80||265,224.00|
|1,067,408.00||1,025,540.00|
|436,300.00||294,009.00|
|1,394,180.00||991,912.00|
|37,200.00||74,400.00|
|4,074.00|||
|3,456,000.80||2,907,355.00|
|||1,679,284.63|
|||340,000.00|
|||2,019,284.63|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||
|-|
|200.00|
|200.00|

||
|-|
|EndingBalance|
|280,000,000.00|
|280,000,000.00|
|211,309.09|
|127.27|
|56,187.93|
|267,624.29|
|11,988.00|
|0.01|
|11,988.01|
|561,790.30|
|169,728.00|
|47,025.76|
|38,789.20|
|817,333.26|

 (2)Payables
7.Related-partyCommitments
TheCompanyhasnorelated-partycommitmentsthisyear.
XIII.CommitmentsandContingencies
1. Majorcommitments
(1)Capitalcommitment
OnDecember21,2018,theCompanysignedAgreementofIntentforStockAcquisitionwithWangYuecheng.TheCompanyintendstoacquire25.2284%ofthestocksharesofZhejiangXiaoWangZiFoodCo.,Ltd.bycashandissuingsharestopurchase assets.Aftertheacquisition,theCompanyanditswholly-ownedsubsidiaryBeijingJingliangFoodCo.,Ltd.(hereinafterreferredtoas"JingliangFood")ultimatelyhold95%ofthestocksharesofTargetCompany.SinceWangYuecheng,themaincounterpartyof thistransaction,becamethevice-generalmanageroftheCompany,accordingtotherelevantprovisionsofRulesofShenzhenStock ExchangeforFlotationofShares(revisedin2018),itconstitutesarelated-partytransactionoftheCompany.Asofthisfinancial reportdate,theacquisitionisinprogress.
(2)Othercommitments
1) Zhejiang Xiao Wang Zi Food Co., Ltd. (hereinafter referred to as "Zhejiang Xiao Wang Zi"), the holding subsidiary of the Company,signedAnimationProductionEntrustmentContractwithJiangsuKungfuFamilyAnimationCo.,Ltd.(hereinafterreferred toas"KungFuFamilyAnimation")onDecember1,2016.AccordingtotheContract,entrustedbyZhejiangXiaoWangZi,Kungfu Family Animation should produce animation Little Prince and Potato Boy,, apply for project approval to the Radio, Film and Television Bureau, handle the animation publishing license with relevant departments and complete production, publication and commercial operation.Accordingto theContract, Zhejiang XiaoWang Zi should pay a total animationproduction fee of RMB 45 million (including tax) according to theactual completion progress.As of December 31, 2018, it paid animation productionfee of RMB 13 million (includingtax). Thisanimation project was started inJanuary 2017andcompleted on July18, 2018.The first 26 episodes were licensedonJune21, 2018, andthelast 26episodeswere licensed onJuly26, 2018. OnAugust 7,2018, it wasfirst broadcastedonYMKTTVat17:10.AsofDecember31,2018,ithasbeenbroadcastedonthreeplatforms(YMKTTV,BTVKAKU ChildrenChannel,www.jiajiakt.com),localTVstationsandnetworkplatforms.
2)TheSupplementIItotheProfitsCompensationAgreement,whichwasconsideredandapprovedatthe7thmeetingofthe8th Board of Directors of the Company, stipulates that Beijing Jingliang Food Co., Ltd. (hereinafter referred to as "Jingliang Food Company") hascommitteditselftorealizethenetprofit ofnoless thanRMB130.1115millionin2017,RMB150.3937millionin 2018andRMB162.1605millionin2019,respectively.
The actual net profit of Jingliang Food in the period of profit commitment should be calculated according to the following
criteria:
① Thefinancial statementsofJingliangFoodCompany anditssubsidiariesshallbepreparedin accordancewith Accounting
StandardsforBusinessEnterprises,otherlawsandregulationsandtheCompany'saccountingpoliciesandaccountingestimates;
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018② UnlessprovidedbythelawsandregulationsortheCompanychangesitsaccountingpoliciesandaccountingestimates,the accountingpoliciesandaccountingestimatesofJingliangFoodCompanyanditssubsidiariesshallnotbechangedduringtheperiod ofprofitcommitmentwithouttheapprovalofthecompetentauthorityofJingliangFoodCompany;
③ Net profit refers to the net profit attributable to the shareholders of parent company after deduction of the non-recurring gainsandlossesfromtheconsolidatedfinancialstatements.Ifanyshare-basedpaymentsstipulatedintheAccountingStandardsfor BusinessEnterprisesoccurbeforethecompletionofthistransaction,thenetprofitfor thatyearshallbeequaltothenetprofitafter elimination of the influence of the above-mentioned share payments. The accumulated committed net profit and the accumulated actualnetprofitforeachyearduringtheperiodofprofitcommitmentofJingliangFoodCompanyshallalsoberespectivelyequalto theaccumulatedcommittednetprofitandtheaccumulatedactualnetprofitaftereliminationoftheinfluenceoftheabove-mentioned sharepayments.
3)OnAugust11,2015,subsidiaryBeijingJingliangFoodCo.,Ltd.(hereinafterreferredtoasJingliangFoodCompany)signed theFrameworkContract onTradinginSharesofZhejiangXiaoWangZi FoodCo.,Ltd. andRelatedTransactionswithMr.Wang YuechengandZhejiangXiaoWangZi FoodCo.,Ltd. (hereinafter referred toas ZhejiangXiaoWangZi),stipulatingthatbased on theauditednetprofitofRMB60.7498millionin2014,WangYuechengshouldcommitthatZhejiangXiaoWangZiFoodCo.,Ltd. will achieve a compound annual growth rate of not less than10% and strive for20% in the period of performance commitment (includingadditionalperformanceguaranteeperiod),i.e.in2015,2016,2017and2018forfourconsecutiveyears.
ZhejiangXiaoWangZicalculatestheamountofperformancecompensationaccordingtothefollowingcriteria:
① Netprofitcompensation:Mr.WangYuechengshouldensurethatthe averageannualnetprofitofZhejiangXiaoWangZiis notlessthanRMB60.7498millionduringtheperiodofperformanceguarantee.Ifthesumofactualnetprofitsforfouryearsisless than RMB 242.9992 million, Mr. WangYuecheng should compensate Zhejiang Xiao Wang Zi in cash by doubling the difference betweenthesumofactualnetprofitsforfouryearsandRMB242.9992million.
② Compensationforgrowth:Mr.WangYuechengshouldensurethatthesumofactualnetprofitsofZhejiangXiaoWangZi forfouryearsisnotlessthanRMB310.1339millionduringtheperformanceguaranteeperiod,thatis,RMB66.8248millionin2015, 73.5073millionin2016,RMB 80.858millionin2017andRMB88.9438millionin2018.Ifthesumofactualnetprofitsforfour yearsislessthanRMB310.1339million,Mr.WangYuechengshouldcompensateZhejiangXiaoWangZiincashbythedifference betweenthesumofactualnetprofitsforfouryearsandRMB310.1339million.
③ Performanceincentives:JingliangFoodCompanyagreesthatifthesumofauditednetprofitsofZhejiangXiaoWangZifor four years is more than 310.1339 million Yuan during the performance guarantee period, the performance-based award shall be calculatedaccumulativelyaccordingtothedifferentsituationslistedinthefollowingtable:
Unit:tenthousandyuan
|||
|-|-|
|CompoundAverageGrowthRate:A|SumofActualNetProfitsforFourYears:B|
|10%≤A＜15%|31,013.39≤B＜34,884.84|
|15%≤A＜20%|34,884.84≤B＜39,132.64|
|A≥20%|B≥39,132.64|

The above performance-based award shouldbe given by Zhejiang XiaoWang Zi to Mr.WangYuechengand hismanagement team.
AccordingtoFrameworkContractonTradinginSharesofZhejiangXiaoWangZiFoodCo.,Ltd.andRelatedTransactionsand ItsSupplementsignedamongJingliangFoodCompany,Mr.WangYuechengandZhejiangXiaoWangZionJune18,2016,thethree parties have agreed that the excess performance-based award when the performance commitment is fulfilled should be accrued by Zhejiang Xiao Wang Zi and included into the Company's annual expenses. The actual operating performance determined by the board of directors of Jingliang Food Company should be the sum of the net profit recognized by audit (after the excess performance-basedawardisaccrued)andtheamountofexcessperformance-basedawardaccrued(amountofexpensesincluded)by deductionofthedeferredincometaxassetsthatshouldberecognizedontheamountofexcessperformance-basedaward.Inaddition, theactual operatingperformance shouldbeconsidered as theconsiderationbase and gamblingcompletion base for Jingliang Food CompanytocalculateitsacquisitionoftheremainingsharesofZhejiangXiaoWangZiinaccordancewithFrameworkContracton TradinginSharesofZhejiangXiaoWangZiFoodCo.,Ltd.
2.Contingencies
AsofDecember31,2018,theCompanyhasnocontingentliabilitiesthatareContingencies.
XIV.EventsaftertheBalanceSheetDate
1.MajorNon-AdjustingEvents
Asofthefinancialreportdate,thecompanyhasnoimportantnon-adjustmentmattersthatneedtobedisclosed.
2.DistributionofProfits
OnMarch28,2019,the33rdmeetingofthe8thboardofdirectorsoftheCompanyapprovedthatnoprofitdistributionshould bemadein2018.Theresolutionstillneedsapprovalofthestockholders'meeting.
XV.OtherImportantMatters
1.AnnuityPlan
On November 18, 2013, the controlling shareholder of Beijing Grain Group Co., Ltd. (hereinafter referred to as "BGG")
received Reply of the State-owned Assets Supervision and Administration Commission of the People's Government of Beijing
MunicipalitytotheEstablishmentofEnterpriseAnnuityPlanofBeijingGrainGroupCo.,Ltd.(BeijingState-ownedAsset[2013]No.
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 224), providing that BGG's Request for Reporting of Enterprise Annuity (BGG Enterprise[2013] No. 258) complies with the requirementsof ProvisionalMeasuresforTrialImplementationofEnterpriseAnnuity(Decree No. 20of theMinistryofLaborand Social Security) and Guiding Opinions for the Trial Implementation of Enterprise Annuity System by State-owned Enterprises in Beijing (Beijing State-owned Asset Audit[2006] No. 77) and approving that the supplementary old-age insurance and various commercialinsuranceestablishedbytheCompanybeforetheimplementationoftheannuityplanshouldbeterminatedautomatically and all employees who have participated in the annuity plan will no longer enjoy social benefits outside of overall planning after retirement.
OnNovember20,2013,BGGreceivedReplytotheFilingofAnnuityPlanofBeijingGrainGroupCo.,Ltd.(XichengHuman& Social[2013] No. 71) from Beijing Xicheng District Human Resources and Social Security Bureau, requesting that BGG should strictlyimplementpaymentscopeandstandardsandrelevantdemocraticproceduresstipulatedintheplanandactivelycooperatein supervisionandinspectionofrelevantdepartmentsafterfiling.
On March 14, 2014, the Company obtained the Certificate of Enterprise Annuity Participation Plan from Ping An Pension InsuranceCo.,Ltd.ThedetailsontheCertificateislistedasfollows:
The Company's basic information: Name of Enterprise: Beijing Jingliang Food Co., Ltd.; Enterprise Annuity No.: C0156482005;the Timeof ParticipationPlan:November 18, 2013; EffectiveTime ofthePlan:March13, 2014; PlanNo. ofthe SuperiorEnterprise:C0156482000;NameoftheSuperiorEnterprise:BeijingJingliangFoodCo.,Ltd.
Basic information ofAnnuity Plan: Name of the Plan: PingAn-CITIC Splendid Life EnterpriseAnnuity Plan; Trustee and AccountManager: PingAn PensionInsurance Co.,Ltd;Trustee: CHINACITIC BANKCORPORATIONLIMITED;AnnuityPlan RegistrationNo.:99JH20120041;AnnuityPlanNo.:P0807;PlanType:CollectivePlan.
Portfolio: Portfolio Code: 9155; Name of Portfolio: Ping An-CITIC Splendid Life Bond Enhanced Portfolio; InvestmentProportion:100%;InvestmentManager:CITICSecuritiesCo.,Ltd.
2.InformationonDivisions
(1)Basisofdeterminationandaccountingpoliciesforreportingofdivisions
TheCompany'sbusinessesconsistoffoodprocessing,oilandgreaseandsoonaccordingtoitsinternalorganizationalstructure, 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 divisionsshouldbedisclosedaccordingtotheaccountingpoliciesandmeasurementstandardsadoptedbysuchdivisionswhenthey are reporting to the management. These measurement bases should be consistent with the accounting and measurement bases for preparationoffinancialstatements.
(2)Reportingofthefinancialinformationondivisions
|||||
|-|-|-|-|
|FoodProcessing|Oil&Grease|Other|OffsetAmongDvisions|
|890,987,143.21|6,710,036,021.83|54,839,940.19|-246,738,801.82|
|612,079,134.38|6,356,277,626.57|12,564,164.32|-235,605,717.15|
|155,081,646.63|123,199,419.11|71,956,090.71|-97,681,781.49|
|120,963,155.45|92,690,147.06|89,081,020.29|-134,777,741.65|
|914,206,851.82|2,834,354,132.55|5,401,447,974.63|-4,232,859,962.72|
|204,450,269.30|1,599,891,547.43|1,063,824,011.22|-790,083,326.12|

 3.Other
（1）OnDecember13,2017,theCompanyandXinyiyaoTourismIndustrialParkDevelopmentCo.,Ltd.,YujinzhuAgricultural Partnership(generalpartnership)ofShizhuTujiaAutonomousCountyandBeijingJingliangXinniurunyiEquityInvestmentFund (limitedpartnership)jointlysignedaprojectpartnershipagreementtojointlydevelopandconstructtheYaowanTownGarden ComplexProjectinXinyiCityandthelandconsolidationimprovementproject.OnFebruary6,2018,theCompanypaidan investmentofRMB13.5millionandtheprojectisongoing.
(2)The30thmeetingofthe8thboardofdirectorsoftheCompanyheldonNovember27,2018consideredandadopted ProposalforAcquiringPartofStockRightsofSubsidiaryJingliangRuralComplexConstructionandOperations(Xinyi)Co.,Ltd.,stipulatingthatCompanyshouldacquire6%oftheequityofJingliangRuralComplexConstructionandOperations(Xinyi)Co.,Ltd. heldbyShizhuTujiaAutonomousCountyYujinzhuAgriculturalPartnership(GeneralPartnership).Afterthetransferofsharesiscompleted,theCompanyshouldhold51%oftheequityofJingliangRuralComplexConstructionandOperations(Xinyi)Co.,Ltd.（3）Asofthisfinancial reportdate,duetotheproblemofstaff resettlement,theformalitiesfor transfer ofequity inHainan ZhujiangPropertyHotelManagementCo.,Ltd.havenotbeencompleted.AccordingtotheAssetDeliveryAgreement,allrightsand obligationsunderthetransferredassetsshallbeenjoyedandassumedbytheundertakerwithouttheinfluencefromtheformalitiesfor transferofpropertyrights.Therefore,theCompanyjudgesthatthiseventwillnothaveasignificantadverseimpactonitself. XVI.NotestoMainFinancialStatementItemsofParentCompany
1.NotesPayableandReceivables
||
|-|
|EndingBalance|
|79,986.00|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 Total 79,986.00 109,389.00 (1)Receivables
①Classificationanddisclosureofreceivables
EndingBalance
|||||
|-|-|-|-|
|BookBalance||ProvisionforBadDebts||
|Amount|Proportion(%)|Amount|ProportionofProvision(%)|
|126,420.00||46,434.00||
|126,420.00|100.00|46,434.00|36.73|
|126,420.00|100.00|46,434.00|----|

 (Continued)
BeginningBalance
|||||
|-|-|-|-|
|BookBalance||ProvisionforBadDebts||
|Amount|Proportion(%)|Amount|ProportionofProvision(%)|
|126,420.00||17,031.00||
|126,420.00|100.00|17,031.00|13.47|
|126,420.00|100.00|17,031.00|----|

 A.Portfolioofreceivableswithprovisionforbaddebtsaccordingtoaginganalysismethod
EndingBalance
|||
|-|-|
|Receivables|ProvisionforBadDebts|
|3,000.00|150.00|
|51,420.00|10,284.00|
|72,000.00|36,000.00|
|126,420.00|46,434.00|

(Continued)
BeginningBalance
|||
|-|-|
|Receivables|ProvisionforBadDebts|
|3,000.00|60.00|
|51,420.00|2,571.00|

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
|||
|-|-|
|72,000.00|14,400.00|
|126,420.00|17,031.00|

②Provisionforbaddebtsaccrued,recoveredorreversedinthecurrentperiod
ThereleasingprovisionforbaddebtsinthecurrentperiodisRMB29,403.00.
③Topfiveendingbalancesofthereceivablesclassifiedbydebtor
ThesumoftopfivebalancesofthereceivablesclassifiedbydebtorwasRMB126,420.00,accountingfor100%ofthetotal endingbalanceofthereceivables,andthetotalendingbalanceofcorrespondingprovisionforbaddebtswasRMB46,434.00.
|||
|-|-|
|EndingBalanceofReceivables|ProportionoftheTotalEndingBalanceofReceivables(%)|
|126,420.00|100.00|
|126,420.00|100.00|

 2.OtherReceivables
||
|-|
|EndingBalance|
|227,353.10|
|227,353.10|

 (1)Otherreceivables
①Classificationanddisclosureofotherreceivables
EndingBalance
|||||
|-|-|-|-|
|BookBalance||ProvisionforBadDebts||
|Amount|Proportion(%)|Amount|ProportionofProvision(%)|
|281,502.34||54,149.24||
|281,502.34|100.00|54,149.24|19.24|
|281,502.34|100.00|54,149.24|----|

 (Continued)
BeginningBalance
|||||
|-|-|-|-|
|BookBalance||Provisionforbaddebts||
|Amount|Proportion(%)|Amount|ProportionofProvision(%)|
|63,754,181.75||3,177,889.13||
|63,754,181.75|100.00|3,177,889.13|4.98|
|63,754,181.75|100.00|3,177,889.13|----|

A.Portfolioofotherreceivableswithprovisionforbaddebtsaccordingtoaginganalysismethod
HainanJingliangHoldingsCo.,Ltd. AnnualReport2018 EndingBalance
Aging
|||
|-|-|
|Otherreceivables|Provisionforbaddebts|
|24,040.24|0.00|
|207,462.10|4,149.24|
|50,000.00|50,000.00|
|281,502.34|54,149.24|

(Continued)
BeginningBalance
Aging
|||
|-|-|
|Otherreceivables|ProvisionforBadDebts|
|2,122.90||
|1,573,793.63|31,475.87|
|62,128,265.22|3,106,413.26|
|50,000.00|40,000.00|
|63,754,181.75|3,177,889.13|

②Provisionforbaddebtsaccrued,recoveredorreversedinthecurrentperiod
ThereleasingprovisionforbaddebtsinthecurrentperiodisRMB-3,123,739.89.
③Classificationofotherreceivablesbynatureofpayment
||
|-|
|EndingBookBalance|
|207,462.10|
|24,040.24|
|50,000.00|
|281,502.34|

 3.Long-termEquityInvestment
(1)Classificationoflong-termequityinvestment
||||||
|-|-|-|-|-|
|EndingBalance|||||
|BookBalance|ProvisionforImpairment|BookValue|BookBalance|ProvisionforImpairment|
|2,375,639,964.05||2,375,639,964.05|2,336,639,964.05||
|2,375,639,964.05||2,375,639,964.05|2,336,639,964.05||

 (2)Investmentinsubsidiaries
||||||
|-|-|-|-|-|
|BeginningBalance|CurrentIncrease|CurrentDecrease|EndingBalance|CurrentProvisionforImpairment|
|2,336,639,964.05|||2,336,639,964.05||

HainanJingliangHoldingsCo.,Ltd. AnnualReport2018
||||
|-|-|-|
||13,500,000.00|13,500,000.00|
||25,500,000.00|25,500,000.00|
|2,336,639,964.05|39,000,000.00|2,375,639,964.05|

4.Operatingincomeandoperatingcosts
||||
|-|-|-|
|CurrentAmount|||
|Income|Cost|Income|
|||2,857.14|
|||2,857.14|

 5.Investmentincome
||
|-|
|CurrentAmount|

 XVII.AdditionalInformation
1.StatementofCurrentNon-recurringGainsandLosses
||
|-|
|Amount|
|-367,796.13|
|3,607,987.97|
|22,651,089.46|
|24,754,455.18|
|50,645,736.48|
|-6,260,509.66|
|-3,853,822.87|
|40,531,403.95|

Note:Forthefiguresinthenon-recurringprofitandlossitems,“+” indicatesprofitandincome,and “-” indicateslossor expenditure.
2.ReturnonEquityandEarningsperShare
|||
|-|-|
|Weighted Return onAverageEquity(ROAE)||
||BasicEPS|
|7.69|0.24|
|5.83|0.19|

HainanJingliangHoldingsCo.,Ltd.
March30,2019